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Bill

HB 2226

Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

89th Legislature (2025) Introduced by Sam Harless

HB 2226 modifies Texas trust fund beneficiary rules for construction improvements, potentially altering payment distribution to contractors, subcontractors, and suppliers on specific real property projects.

Left pending in committee
#business&commerce--general(i0050) #propertyinterests--realproperty(i0595) #propertyinterests--trusts(i0008)
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Bill Summary · HB 2226

Legislative bill overview

HB 2226 modifies Texas law regarding how trust funds held for property improvements must be handled and who can benefit from them. The bill appears to address the legal framework governing contractor trust accounts and payment flows related to construction work on specific real property.

Why is this important

Construction trust fund laws protect laborers, suppliers, and subcontractors by ensuring they receive payment for work and materials. Changes to beneficiary rules directly affect whether these parties can access funds owed to them, impacting payment security in the construction industry and potentially affecting project financing and contractor relationships.

Potential points of contention

  • Scope of beneficiaries: Disputes over who qualifies as a trust beneficiary (general contractors, subcontractors, material suppliers, laborers) and whether the bill expands or restricts access
  • Payment prioritization: Whether changes alter the order in which different parties receive payment from trust accounts, potentially disadvantaging certain groups
  • Compliance complexity: Concerns that new definitions or requirements for "improvement on specific real property" could create ambiguity in contractor compliance and audit procedures

Compiled from official sources — confirm details with the bill’s official record.

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