H.B. No. 3288 amends the Property Code by adding a new subsection (a-1) to Section 162.031, which specifically addresses the handling of trust funds in nonresidential construction contracts. The new language clarifies that a trustee, who is not the owner, misapplies trust funds if they retain or divert those funds due to disputes related to a construction contract that is not the one associated with the trust funds. The bill defines "owner" as the individual or entity that owns or controls the premises where construction occurs and is responsible for payment to the contractor.

The provisions of this bill will only apply to contracts entered into on or after its effective date of September 1, 2025. This means that any existing contracts prior to this date will not be subject to the new regulations regarding the application of trust funds in construction disputes.

Statutes affected:
Introduced: Property Code 162.031 (Property Code 162)
House Committee Report: Property Code 162.031 (Property Code 162)