Amend CSHB 740 on page 30, by striking lines 2-17 and
substituting the following:
      Sec. 53.258.  DISBURSEMENTS OF FUNDS.  (a)  For the
construction of improvements under a residential construction
contract, the original contractor shall provide to the owner a
signed periodic statement that lists the bills or expenses that the
original contractor represents will be paid or that have been paid
and for which the original contractor is requesting payment.  The
original contractor is not required to include in the statement the
bills or expenses for which the original contractor has obtained a
valid lien release or waiver from the subcontractor or supplier to
whom the bills or expenses are owed if the statement includes a
written representation that the balance of any funds that are not
itemized in the statement will be paid to:
            (1)  the subcontractor or supplier who provided the
lien release or waiver; or
            (2)  the original contractor as reimbursement for
expenses incurred, profit, or overhead.
      (b)  If the owner finances the construction of improvements
through a third party that advances loan proceeds directly to the
original contractor, the lender shall:
            (1)  obtain from the original contractor the signed
periodic statement required by Subsection (a) that covers the funds
for which the original contractor is requesting payment; and
            (2)  provide to the owner a statement of funds
disbursed by the lender since the last statement was provided to
the owner.