81R7057 PMO-F
 
  By: Smith of Harris H.B. No. 1513
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to construction contract trust funds and the
  misapplication of those funds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.001, Property Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Trust funds paid to a creditor under this chapter are
  not property or an interest in property of a debtor who is a trustee
  described by Section 162.002.
         SECTION 2.  Section 162.004, Property Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  Regardless of whether a construction contract is
  covered by a statutory or common law payment bond, this chapter
  applies to a public or private construction contract for the
  improvement of specific real property in this state.
         SECTION 3.  Section 162.031, Property Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  A trustee who commingles trust funds with other funds in
  the trustee's possession does not defeat a trust created by this
  chapter.
         SECTION 4.  This Act takes effect September 1, 2009.