TX SB1615

Amends Section 162.031 of the Property Code to address misapplication of trust funds in construction contracts

Establishes that a trustee who retains or diverts trust funds due to a dispute (including alleged default) from a different construction contract than the one associated with those trust funds has misapplied the funds

Prevents contractors from withholding payments owed on one project to offset disputes or claims arising from unrelated construction contracts

Applies only to contracts entered into on or after the effective date

Takes effect September 1, 2025