Relating to the application of funds under construction contracts.

SB 1615 amends Texas Property Code to clarify that trustees who retain or divert trust funds due to disputes (like alleged defaults) under construction contracts - other than the contract that generated the funds - are considered to have misapplied those funds. This directly affects trustees managing construction project finances, particularly in disputes between contractors or clients. The key provision defines such fund retention as misapplication, strengthening accountability for trust funds. The law applies only to construction contracts entered into on or after September 1, 2025.