TX SB1612

Designates funds reserved under Section 53.101 (retainage) as trust funds under Chapter 162 of the Property Code, providing additional protections for contractors, subcontractors, and materialmen

Exempts residential construction projects from the trust fund designation, specifically single-family houses, duplexes, triplexes, and quadruplexes used for residential purposes, including appurtenant improvements

Expands the definition of trust fund beneficiaries to include artisans, laborers, mechanics, contractors, subcontractors, and materialmen for funds both paid/received and reserved under retainage requirements

Requires courts to award costs and reasonable attorney's fees to beneficiaries who prevail in legal actions brought against trustees under this chapter

Applies to construction contracts entered into on or after September 1, 2025, with the attorney's fees provision applying to actions commenced on or after that date