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  89R4717 PRL-D     By: Curry H.B. No. 2484       A BILL TO BE ENTITLED   AN ACT   relating to an account for construction retainage.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 4, Business & Commerce Code, is amended by   adding Chapter 60 to read as follows:   CHAPTER 60. ACCOUNT FOR CONSTRUCTION RETAINAGE           Sec. 60.001.  DEFINITIONS. In this chapter:                 (1)     "Construction contract" has the meaning assigned   by Section 272.0001.                 (2)     "Retainage" is an amount or agreed percentage of   money in a construction contract between a contractor and a   subcontractor that is withheld from a payment and not due to be paid   until completion of the contract or on an agreed date.           Sec.   60.002.     ESCROW ACCOUNT FOR RETAINAGE. If a   construction contract or an agreement collateral to or affecting   the construction contract contains a provision providing for   retainage, the contractor shall deposit and hold any retainage in   an escrow account.   Money in the escrow account is available to   satisfy the contractor's obligation to a subcontractor.           Sec.   60.003.     LATE PAYMENT. If a contractor does not satisfy   the contractor's obligation to the subcontractor within three   months after the date the subcontractor completes performance due   under the construction contract, the contractor is liable to the   subcontractor in an amount equal to the sum of:                 (1)  the original obligation; and                 (2)  three percent of the original obligation.          SECTION 2.  The changes in law made by this Act apply only to   a contract that is entered into or renewed on or after the effective   date of this Act.  A contract entered into before the effective date   of this Act is governed by the law in effect on the date the contract   was entered into, and the former law is continued in effect for that   purpose.          SECTION 3.  This Act takes effect September 1, 2025.