Bill > HB2483

This bill introduces a new chapter to the Texas Business & Commerce Code that establishes requirements for handling construction retainage funds. Specifically, the bill defines "retainage" as a portion of money withheld from payments in a construction contract until the contract is completed or reaches an agreed-upon date. When a construction contract includes a retainage provision, the contractor must deposit and hold the retainage funds in a dedicated escrow account, which will be available to satisfy the contractor's obligations to subcontractors. The bill clarifies that these new rules will only apply to contracts entered into or renewed on or after September 1, 2025, meaning existing contracts will continue to be governed by the previous legal framework. This legislation aims to provide more transparency and protection for subcontractors by ensuring that retainage funds are properly managed and segregated in a specific escrow account.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2483