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A BILL TO BE ENTITLED
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AN ACT
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relating to the beneficiaries of trust funds paid or received in |
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connection with an improvement on specific real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 162.003(a), Property Code, is amended to |
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read as follows: |
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(a) A person who is an [An] artisan, laborer, mechanic, |
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contractor, subcontractor, or materialman who labors or who |
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furnishes labor or material for the construction or repair of an |
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improvement on specific real property in this state, or the |
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assignee of that person, is a beneficiary of any trust funds paid or |
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received in connection with the improvement. |
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SECTION 2. Subchapter A, Chapter 162, Property Code, is |
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amended by adding Section 162.0031 to read as follows: |
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Sec. 162.0031. BENEFICIARY'S ASSIGNMENT OF INTEREST IN |
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UNPAID TRUST FUNDS. An assignment by a beneficiary of the |
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beneficiary's interest in unpaid trust funds under this chapter may |
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not be enforced unless: |
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(1) the assignment is: |
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(A) made in writing not earlier than the date the |
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assignee has paid the beneficiary in good and sufficient funds for |
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the assignment; and |
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(B) not made as part of the beneficiary's |
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construction contract; and |
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(2) the assignee is a beneficiary, trustee, or |
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property owner under the contract for the construction or repair of |
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an improvement on real property in connection with which the |
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payment of trust funds is made. |
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SECTION 3. This Act takes effect September 1, 2023. |