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| Alabama |
The state of Alabama does not have a construction trust fund statute. |
| Alaska |
The state of Alaska does not have a trust fund statute. |
| Arizona |
Arizona has a construction trust fund statute that applies to owner-occupied residential construction. |
| Arkansas |
Ark. Code Ann. §18-44-132 (Penalty for failure to discharge lien after payment.) Arkansas does not have a construction trust fund statute. Instead, Arkansas has a statute which imposes criminal liability on contractors who receive funds from an owner but fail to pay the amounts over to their subcontractors and suppliers. |
| California |
The state of California does not have a construction trust fund statute; The 9th Circuit Court of Appeals Bankruptcy Appellate Panel has found that a construction subcontract which contains a trust provision establishes a duty on the part of the contractor receiving contract proceeds. |
| Colorado |
Colo. Rev. Stat. Ann. §38-22-127 (Moneys for lien claims made trust funds - disbursements - penalty.)The statute provides that all funds disbursed to a contractor or subcontractor on a project subject to Colorado's mechanics' lien law are held in trust for downstream subcontractors who may have a lien against the subject property. However, where the contractor or subcontractor to whom the disbursement was made has a good faith belief that the lien claim is invalid or is subject to setoff, no trust is created. Colo. Rev. Stat. Ann. §38-22-127(2). |
| Connecticut |
The state of Connecticut does not have a construction trust fund statute. |
| Delaware |
Del Code Ann. tit. 6, § 3502. (Payments to contractor impressed with trust). The statute applies to any contractor, subcontractor, or any other person who enters into contract to supply labor or materials. The statute doesn't apply to owners. The statute applies to funds received. Violation of the statute can result in interest penalties, Del. Code Ann. tit. 6, § 3506 (Interest penalties on late payments), and a violator may also be subject to criminal fines and imprisonment, Del Code Ann. tit. 6, § 3505 (Penalties). If a payment is not withheld "in good faith for reasonable cause," then a court may also award reasonable attorneys' fees. There are no restrictions or limitations on commingling under the statute. |
| District of Columbia |
The District of Columbia does not have a construction trust fund statute. |
| Florida |
Fla. Stat.Section 713.32 states that any insurance proceeds payable to the owner or a lienor because of fire or other insured casualty are liable to liens or demands for payment for labor, services, or materials furnished. The named insured who receives any such insurance proceeds is considered a trustee of those proceeds and such proceeds are deemed trust funds for the purposes of this section for one year from the date of receipt of the proceeds. |
| Georgia |
Georgia 16-8-15. (Conversion of payments for real property improvements) has a criminal statute that makes it a crime for a contractor that has been paid by the owner to fail to pay for labor, services, or material while any amount for which the contractor is liable for such labor, services, or materials remains unpaid. |
| Hawaii |
The state of Hawaii does not have a construction trust fund statute. |
| Idaho |
The state of Idaho does not have a construction trust fund statute |
| Illinois |
770 ILCS 60/21.02 (Construction Trust Funds) is only applicable on projects where lien waivers are required. The statute provides that where an owner, contractor, subcontractor, or supplier of any tier that requests or requires the execution and delivery of a waiver from any person supplying labor or materials to a project governed by the mechanics' lien law, any earned but unpaid funds for work for which the lien was waived are held in trust for the party executing the waiver. |
| Indiana |
The state of Indiana does not have a construction trust fund statute. |
| Iowa |
The state of Iowa does not have a construction trust fund statute. |
| Kansas |
The state of Kansas does not have a construction trust fund statute. |
| Kentucky |
The state of Kentucky does not have a construction trust fund statute. |
| Louisiana |
The state of Louisiana does not have a construction trust fund statute. |
| Maine |
The state of Maine does not have a construction trust fund statute. |
| Maryland |
Section 9-201 - (Moneys to be held in trust; commingling). The statute requires that any funds paid under a contract by an owner to a contractor or by an owner or contractor to a subcontractor shall be held in trust for those subcontractors who did the work or furnished the materials for purposes of paying those subcontractors.The trust nature of the funds extends to the benefit of lower tiers of subcontractors. The law applies to private projects and public projects however if a contractor or subcontractor commingles moneys held in trust under this section with other moneys, the mere commingling of the moneys does not constitute a violation of the statute. |
| Massachusetts |
The state of Massachusettes does not have a construction trust fund statute. |
| Michigan |
570.151 Building contract fund; status as a trust fund. The Michigan Building Contract Fund Act (MBCFA) does not apply to public construction projects.In the building construction industry, the building contract fund paid by any person to a contractor, or by such person or contractor to a subcontractor, shall be considered by this act to be a trust fund, for the benefit of the person making the payment, contractors, laborers, subcontractors or materialmen, and the contractor or subcontractor shall be considered the trustee of all funds so paid to him for building construction purposes. |
| Minnesota |
514.02 NONPAYMENT FOR IMPROVEMENT; PENALTIES AND REMEDIES. Proceeds of payments received by a person contributing to an improvement to real estate within the meaning of section 514.01 shall be held in trust by that person for the benefit of those persons who furnished the labor, skill, material, or machinery contributing to the improvement. |
| Mississippi |
The state of Mississippi does not have a construction trust fund statute. |
| Missouri |
The state of Missouri does not have a construction trust fund statute. |
| Montana |
The state of Montana does not have a construction trust fund statute. |
| Nebraska |
The state of Nebraska does not have a construction trust fund statute. |
| Nevada |
The state of Nevada does not have a construction trust fund statute. |
| New Hampshire |
The state of New Hampshire does not have a construction trust fund statute. |
| New Jersey |
The state of New Jersey does not have a construction trust fund statute |
| New Mexico |
The state of New Mexico does not have a construction trust fund statute. |
| New York |
The state of New York does not have a construction trust fund statute. |
| North Carolina |
The state of North Carolina does not have a construction trust fund statute. |
| North Dakota |
The state of North Dakota does not have a construction trust fund statute. |
| Ohio |
The state of Ohio does not have a construction trust fund statute. |
| Oklahoma |
42-152 (Amounts Paid Under Building Contracts are Trust Funds) The amount payable under any building or remodeling contract shall, upon receipt by any contractor or subcontractor, be held as trust funds for the payment of all lienable claims due and owing or to become due and owing by such contractors or subcontractors by reason of such building or remodeling contract.Any person willfully and knowingly appropriating such trust funds to a use not permitted by subsection upon conviction, shall be guilty of embezzlement and shall be punished by imprisonment in the State Penitentiary for a period not to exceed five (5) years or by a fine not to exceed Ten Thousand Dollars ($10,000.00), or by both such imprisonment and fine. |
| Oregon |
The state of Oregon does not have a construction trust fund statute. |
| Pennsylvania |
The state of Pennsylvania does not have a construction trust fund statute. |
| Rhode Island |
The state of Rhode Island does not have a construction trust fund statute. |
| South Carolina |
The state of South Carolina does not have a construction trust fund statute. |
| South Dakota |
44-9-13. Misappropriation of funds by contractor, subcontractor, or supplier. Any contractor, subcontractor, or supplier on any improvement of real estate, mines, or public utilities within the purview of this chapter who knowingly uses more than five hundred dollars of the proceeds of any payment made to him on account of such improvement by the owner of such real estate or person having the improvement made, for any other purpose than the payment for labor, skill, materials, and machinery contributed to such improvement while any account for such labor, skill, material, or machinery furnished for such improvement up to the time of such payment remains unpaid and due and owing under the credit terms arranged, is guilty of theft of the proceeds of such payment. It is not a violation of this section to withhold funds from a contractor, subcontractor, or supplier pending the completion and final approval of his work or product. |
| Tennessee |
The state of Tennessee does not have a construction trust fund statute. |
| Texas |
Sec.162.001.CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS. The Texas Construction Trust Fund Act benefits those furnishing labor or materials for the construction or repair of a house, building, or improvement by providing that any funds to a contractor, subcontractor or supplier made in payment of labor and materials are held in trust for all parties in the construction chain. |
| Utah |
The state of Utah does not have a construction trust fund statute. |
| Vermont |
The state of Vermont does not have a construction trust fund statute. |
| Virginia |
The state of Virginia does not have a construction trust fund statute. |
| Washington |
60.28.010 Retained percentage — Labor and material lien created — Bond in lieu of retained funds — Termination before completion — Chapter deemed exclusive — Release of ferry contract payments — Projects of farmers home administration. The statute only applies to "contracts for public improvements or work, other than for professional services, by the state, or any county, city, town, district, board, or other public body." The statute requires retention of up to 5% of moneys earned "as a trust fund for the protection and payment of any person or persons, mechanic, subcontractor or materialman who shall perform any labor upon such contract or the doing of said work, and all persons who shall supply such person or persons or subcontractors with provisions and supplies." |
| West Virginia |
The state of West Virginia does not have a construction trust fund statute. |
| Wisconsin |
Wis. Stat. § 779.02(5) (Theft by contractors), and public projects, Wis. Stat. § 779.16 (Theft by contractors). The proceeds of any mortgage on land paid to any prime contractor or any subcontractor for improvements upon the mortgaged premises, and all moneys paid to any prime contractor or subcontractor by any owner for improvements, constitute a trust fund only in the hands of the prime contractor or subcontractor to the amount of all claims due or to become due or owing from the prime contractor or subcontractor for labor, services, materials, plans, and specifications used for the improvements, until all the claims have been paid, and shall not be a trust fund in the hands of any other person. See Wis. Stat. §§ 779.02(5), 779.16 (civil penalties); Wis. Stat. § 943.20 (criminal penalties). |
| Wyoming |
The state of Wyoming does not have a construction trust fund statute. |
