88R4726 SHH-F
 
  By: Leach H.B. No. 1963
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to construction contract trust funds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.001, Property Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Funds reserved or required to be reserved under
  Section 53.101 are trust funds.
         SECTION 2.  Section 162.003(a), Property Code, is amended to
  read as follows:
         (a)  An artisan, laborer, mechanic, contractor,
  subcontractor, or materialman who labors or who furnishes labor or
  material for the construction or repair of an improvement on
  specific real property in this state is a beneficiary of any trust
  funds:
               (1)  paid or received in connection with the
  improvement; or
               (2)  reserved or required to be reserved under Section
  53.101 in connection with the improvement.
         SECTION 3.  Subchapter B, Chapter 162, Property Code, is
  amended by adding Section 162.034 to read as follows:
         Sec. 162.034.  ATTORNEY'S FEES AND COSTS.  The court shall
  award costs and reasonable attorney's fees to a beneficiary who
  prevails in an action brought against a trustee under this chapter.
         SECTION 4.  (a)  Except as provided by Subsection (b) of this
  section, the changes in law made by this Act apply only to a
  construction contract that is entered into on or after the
  effective date of this Act.
         (b)  Section 162.034, Property Code, as added by this Act,
  applies only to an action commenced on or after the effective date
  of this Act.
         SECTION 5.  This Act takes effect September 1, 2023.