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A BILL TO BE ENTITLED
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AN ACT
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relating to construction contract trust funds and the |
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misapplication of those funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 162.001, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Trust funds paid to a creditor under this chapter are |
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not property or an interest in property of a debtor who is a trustee |
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described by Section 162.002. |
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SECTION 2. Section 162.004, Property Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) Regardless of whether a construction contract is |
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covered by a statutory or common law payment bond, this chapter |
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applies to a public or private construction contract for the |
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improvement of specific real property in this state. |
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SECTION 3. Section 162.031, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A trustee who commingles trust funds with other funds in |
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the trustee's possession does not defeat a trust created by this |
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chapter. |
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SECTION 4. This Act takes effect September 1, 2009. |