SB 1612 Texas Senate · 89th Legislature (2025)

Relating to construction contract trust funds.

SB 1612 exempts certain construction funds from trust account requirements. It specifically removes the trust fund status for money reserved under Section 53.101 when used for building or repairing single-family homes, duplexes, triplexes, or quadruplexes (up to four units) for residential use. This change directly affects residential contractors and homeowners by simplifying financial handling for smaller housing projects. The bill applies only to contracts signed on or after September 1, 2025, and adds provisions for attorney fees if beneficiaries win trust fund disputes.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2025

Committee Review

May 2025

Senate Passage

Apr 2025

House Passage

Governor

Introduced Feb 25, 2025 Last action May 26, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 4 edits · Apr 24, 2025

MODERATE

This bill amends the Texas Property Code to clarify that funds reserved for construction contracts are trust funds, except for single-family residential properties. It also adds a new section allowing courts to award attorney's fees to beneficiaries who win legal actions against trustees. The changes affect how construction contract funds are classified and provide additional legal protections for workers and material suppliers.

Scope change

The bill expands the definition of trust funds to include funds reserved for construction contracts on single-family homes, duplexes, triplexes, and quadruplexes, while explicitly excluding these from being considered trust funds. It also introduces new provisions for attorney's fees in legal disputes involving these funds.

DEFINITION

Added explicit language clarifying that funds reserved under Section 53.101 for residential construction are not trust funds, except as otherwise provided.

ENFORCEMENT

Created new Section 162.034 allowing courts to award attorney's fees and costs to beneficiaries who prevail in actions against trustees.

ELIGIBILITY

Modified eligibility criteria by specifying which types of residential properties are excluded from trust fund protections.

TIMELINE

Established that the new attorney's fees provision applies only to actions commenced on or after the effective date of the Act.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 9, 2025

Lower · Passed

Committee report sent to Calendars

lower

May 8, 2025

Lower · Passed

Committee report distributed

lower

Apr 30, 2025

Lower · Passed

Reported favorably as substituted

lower

Apr 28, 2025

Committee

Referred to Trade, Workforce & Economic Development

lower

Apr 28, 2025

Introduced

Read first time

lower

Apr 25, 2025

Introduced

Received from the Senate

lower

Apr 24, 2025

Upper · Passed

Passed

upper

Apr 14, 2025

Upper · Passed

Committee report printed and distributed

upper

Apr 14, 2025

Upper · Passed

Reported favorably w/o amendments

upper

Apr 10, 2025

Upper · Passed

Vote taken in committee

upper

Apr 8, 2025

Upper · Passed

Left pending in committee

upper

Apr 8, 2025

Upper · Passed

Testimony taken in committee

upper

Mar 10, 2025

Committee

Referred to Business & Commerce

upper

Mar 10, 2025

Introduced

Read first time

upper

5 primary · 0 co-sponsors