HB 3712
AN ACT relating to funds reserved for certain construction materials.
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Prevents owners, contractors, or subcontractors from reserving funds for specially fabricated construction materials that have already been delivered and accepted at a site or are covered by a manufacturer's warranty. The legislation aims to clarify payment practices in construction contracts, ensuring that funds cannot be withheld for materials that have been fully received and verified. The law will apply to original contracts entered into on or after September 1, 2025, providing clarity and protection for construction industry professionals.
Subject Areas
Bill Text
relating to funds reserved for certain construction materials. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 53.101, Property Code, is amended by adding Subsection (a-1) to read as follows: (a-1) An owner, contractor, or subcontractor may not reserve funds under this section for specially fabricated material (1) has been delivered by a subcontractor and accepted by the owner, contractor, or subcontractor at the site or off-site; (2) is covered by a manufacturer's warranty under a contract with the owner, contractor, or subcontractor. SECTION 2. The changes in law made by this Act apply only to an original contract that is entered into on or after the effective date of this Act. An original contract entered into before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to funds reserved for certain construction materials.
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