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  89R25857 PRL-F     By: Bell of Kaufman, Button, Kitzman, Barry, H.B. No. 3288       Anchía     Substitute the following for H.B. No. 3288:     By:  Button C.S.H.B. No. 3288       A BILL TO BE ENTITLED   AN ACT   relating to the application of funds under certain construction   contracts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 162.031, Property Code, is amended by   adding Subsection (a-1) to read as follows:           (a-1)     This subsection applies only to a trustee who receives   trust funds or who has control or direction of trust funds in   connection with a nonresidential construction contract.   A trustee,   other than an owner, who retains or otherwise diverts trust funds   due to a dispute, including an alleged default, arising under a   construction contract other than the contract in connection with   which the trust funds were received by or placed under the control   or direction of the trustee has misapplied the trust funds.   For   purposes of this subsection, "owner"   means the person or entity   that:                 (1)     owns or controls the premises at which   construction of improvements is to be performed; and                 (2)     is responsible for payment to the contractor for   the construction of improvements.          SECTION 2.  The changes in law made by this Act apply only to   a contract that is entered into on or after the effective date of   this Act.          SECTION 3.  This Act takes effect September 1, 2025.