HB2226 - Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

  89R2055 CS-F     By: Harless H.B. No. 2226       A BILL TO BE ENTITLED   AN ACT   relating to the beneficiaries of trust funds paid or received in   connection with an improvement on specific real property.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 162.003(a), Property Code, is amended to   read as follows:          (a)   A person who is an [ 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 , or the   assignee of that person, is a beneficiary of any trust funds paid or   received in connection with the improvement.          SECTION 2.  Subchapter A, Chapter 162, Property Code, is   amended by adding Section 162.0031 to read as follows:           Sec.   162.0031.     BENEFICIARY'S ASSIGNMENT OF INTEREST IN   UNPAID TRUST FUNDS. An assignment by a beneficiary of the   beneficiary's interest in unpaid trust funds under this chapter may   not be enforced unless:                 (1)  the assignment is:                       (A)     made in writing not earlier than the date the   assignee has paid the beneficiary in good and sufficient funds for   the assignment; and                       (B)     not made as part of the beneficiary's   construction contract; and                 (2)     the assignee is a beneficiary, trustee, or   property owner under the contract for the construction or repair of   an improvement on real property in connection with which the   payment of trust funds is made.          SECTION 3.  This Act takes effect September 1, 2025.