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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. |
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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 (a-1) to read as follows: |
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(a-1) Funds reserved or required to be reserved under |
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Section 53.101 are trust funds. |
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SECTION 2. Section 162.003(a), Property Code, is amended to |
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read as follows: |
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(a) An artisan, laborer, mechanic, contractor, |
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subcontractor, or materialman who labors or who furnishes labor or |
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material for the construction or repair of an improvement on |
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specific real property in this state is a beneficiary of any trust |
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funds: |
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(1) paid or received in connection with the |
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improvement; or |
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(2) reserved or required to be reserved under Section |
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53.101 in connection with the improvement. |
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SECTION 3. Subchapter B, Chapter 162, Property Code, is |
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amended by adding Section 162.034 to read as follows: |
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Sec. 162.034. ATTORNEY'S FEES AND COSTS. The court shall |
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award costs and reasonable attorney's fees to a beneficiary who |
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prevails in an action brought against a trustee under this chapter. |
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SECTION 4. (a) Except as provided by Subsection (b) of this |
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section, the changes in law made by this Act apply only to a |
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construction contract that is entered into on or after the |
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effective date of this Act. |
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(b) Section 162.034, Property Code, as added by this Act, |
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applies only to an action commenced on or after the effective date |
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of this Act. |
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SECTION 5. This Act takes effect September 1, 2023. |