SB841 - Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

      S.B. No. 841         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 that   person's qualified assignee under Section 162.0031, 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;                 (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; and                 (3)     written notice of the assignment is provided to   the property owner and the contractor on the project not later than   the seventh day after the date the assignment is made.          SECTION 3.  This Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 841 passed the Senate on   April 24, 2025, by the following vote: Yeas 31, Nays 0; and that   the Senate concurred in House amendment on May 22, 2025, by the   following vote: Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 841 passed the House, with   amendment, on May 20, 2025, by the following vote: Yeas 146,   Nays 0, two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor