| |
| |
|
|
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. |