TX HB3288

Amends Section 162.031 of the Property Code to add new rules for trustees handling trust funds in nonresidential construction contracts

Prohibits trustees (other than property owners) from retaining or diverting trust funds due to disputes or alleged defaults arising from a different construction contract than the one for which the funds were received

Classifies such retention or diversion of trust funds as misapplication of trust funds, which carries legal consequences

Defines "owner" as the person or entity that owns or controls the premises where construction improvements will be performed and is responsible for paying the contractor

Takes effect September 1, 2025, and applies only to contracts entered into on or after that date