Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property, the official text

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