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A BILL TO BE ENTITLED
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AN ACT
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relating to funds reserved for certain construction materials. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 53.101, Property Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) An owner, contractor, or subcontractor may not |
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reserve funds under this section for specially fabricated material |
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that: |
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(1) has been delivered by a subcontractor and accepted |
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by the owner, contractor, or subcontractor at the site or off-site; |
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and |
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(2) is covered by a manufacturer's warranty under a |
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contract with the owner, contractor, or subcontractor. |
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SECTION 2. The changes in law made by this Act apply only to |
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an original contract that is entered into on or after the effective |
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date of this Act. An original contract entered into before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |