Monitoring the Session

HB 3005

bill limiting payment holds over long audits

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Rep. Barbara Gervin-HawkinsDHouse 120

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the payment of funds under certain construction contracts.

Caption from analyzed text · version I.

Summary

An audit past 60 days after substantial completion stops justifying the hold.

The bill says a public or private project owner cannot keep holding back payment to a contractor by pointing to an audit that drags on more than 60 days after the project is substantially complete. It touches state and local governments that pay for public works, private owners under construction contracts, and the contractors and subcontractors waiting to be paid. On the ground, a long-running audit no longer counts as a legitimate dispute that excuses late payment, so prompt-pay deadlines and interest can kick in for contracts signed on or after September 1, 2025.

Labels

Labels: CROSS-PARTY HANDOFF. Lead author Barbara Gervin-Hawkins (D) in the House. Lead sponsor Donna Campbell (R) in the Senate. Party as the Legislative Reference Library lists it for the 89th Legislature.ACROSS THE AISLE. Joint authors: 1 Republican, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.

Receipt

The receipt

89R-HB3005 · 2025-02-19

SOLD BY

Rep. Barbara Gervin-HawkinsDHouse 120 Rep. John LujanRHouse 118

ITEM

relating to the payment of funds under certain construction contracts.

WHAT IT DOES

An audit past 60 days after substantial completion stops justifying the hold.

The bill says a public or private project owner cannot keep holding back payment to a contractor by pointing to an audit that drags on more than 60 days after the project is substantially complete. It touches state and local governments that pay for public works, private owners under construction contracts, and the contractors and subcontractors waiting to be paid. On the ground, a long-running audit no longer counts as a legitimate dispute that excuses late payment, so prompt-pay deadlines and interest can kick in for contracts signed on or after September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Trade, Workforce & Economic Development
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in formal meeting
  9. Reported favorably w/o amendment(s)
  10. Comte report filed with Committee Coordinator
  11. Committee report distributed
  12. Committee report sent to Calendars
  13. Considered in Calendars
  14. Placed on General State Calendar
  15. Read 2nd time
  16. Amended 1-Gervin-Hawkins
  17. Passed to engrossment as amended
  18. Record vote RV#1565
  19. Statement(s) of vote recorded in Journal
  20. Read 3rd time
  21. Passed
  22. Record vote RV#1636
  23. Statement(s) of vote recorded in Journal
  24. Reported engrossed
  25. Received from the House
  26. Read first time
  27. Referred to Business & Commerce
  28. Scheduled for public hearing on . . .
  29. Considered in public hearing
  30. Testimony taken in committee
  31. Left pending in committee
  32. Considered in public hearing
  33. Vote taken in committee
  34. Reported favorably w/o amendments
  35. Recommended for local & uncontested calendar
  36. Committee report printed and distributed
  37. Placed on intent calendar
  38. Placed on local & uncontested calendar
  39. Laid before the Senate
  40. Read 2nd time & passed to 3rd reading
  41. Vote recorded in Journal
  42. Three day rule suspended
  43. Record vote
  44. Read 3rd time
  45. Passed
  46. Record vote
  47. Senate passage reported
  48. Reported enrolled
  49. Signed in the House
  50. Signed in the Senate
  51. Sent to the Governor
  52. Signed by the Governor
  53. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 130 yea · 13 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · May 7, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 28, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Barbara Gervin-Hawkins

Donors

Texas Trial Lawyers Association PAC$36KTexas Sands PAC$34KLegacy 44$17K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Aug 6, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$36,000.00

Texas Trial Lawyers Association PAC

$36,000.00

Cash
$36,000.00
Paid by others
$0.00
Total
$36,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 20, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101026167, 101035798, 101038806.

Texas Sands PAC$34,000.00

Texas Sands PAC

$34,000.00

Cash
$34,000.00
Paid by others
$0.00
Total
$34,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 1, 2024 to Feb 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

Legacy 44$17,000.00

Legacy 44

$17,000.00

Cash
$1,000.00
Paid by others
$16,000.00
Total
$17,000.00
digital $16,000.00

Also funds 33 other sitting lawmakers.

Derived recipient stock · Oct 21, 2024 to Oct 20, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 18, 2024 to Feb 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$36,000.00

Cash
$36,000.00
Paid by others
$0.00
Total
$36,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 20, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101026167, 101035798, 101038806.

×

Texas Sands PAC

$34,000.00

Cash
$34,000.00
Paid by others
$0.00
Total
$34,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 1, 2024 to Feb 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

×

Legacy 44

$17,000.00

Cash
$1,000.00
Paid by others
$16,000.00
Total
$17,000.00
digital $16,000.00

Also funds 33 other sitting lawmakers.

Derived recipient stock · Oct 21, 2024 to Oct 20, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 18, 2024 to Feb 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

Votes5

Senate May 28, 2025

Final passage

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to third reading, suspension of the three-day rule, and final passage. This entry records final passage. Repeated tallies belong to separate votes.

Sources

HB 3005 (Campbell) Relating to the payment of funds under certain construction contracts. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 28, 2025

Suspension of the three-day rule

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to third reading, suspension of the three-day rule, and final passage. This entry records suspension of the three-day rule. Repeated tallies belong to separate votes.

Sources

HB 3005 (Campbell) Relating to the payment of funds under certain construction contracts. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 28, 2025

Passage to third reading

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to third reading, suspension of the three-day rule, and final passage. This entry records passage to third reading. Repeated tallies belong to separate votes.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

HB 3005 (Campbell) Relating to the payment of funds under certain construction contracts. (viva voce vote) (31-0) (31-0)

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 7, 2025

Yea
130
Nay
13
Present, not voting
2
Absent
3
Excused
2
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1636

HB 3005 was passed by (Record 1636): 130 Yeas, 13 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 130 (published)
  • Nay: 13 (published)
  • Present, not voting: 2 (published)
  • Absent: 3 (derived from named list)
  • Excused: 2 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 6, 2025

Yea
135
Nay
1
Present, not voting
1
Absent
11
Excused
2
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1565

HB 3005, as amended, was passed to engrossment by (Record 1565): 135 Yeas, 1 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 135 (published)
  • Nay: 1 (published)
  • Present, not voting: 1 (published)
  • Absent: 11 (derived from named list)
  • Excused: 2 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses12
For
9
Against
3
On
0
Names

For

  • AGC Austin1 registration
  • AGC- Texas Building Branch1 registration
  • AGC-Texas Building Branch1 registration
  • Associated Builders and Contractors of Texas1 registration
  • San Antonio AGC1 registration
  • Texas Construction Association1 registration
  • Texas Crane Owners Association; Precast Concrete Manufacturers Association of Texas1 registration
  • Texas Water Infrastructure Network (TXWIN)1 registration
  • Zachry Corporation1 registration

Against

  • Texas Association of Manufacturers1 registration
  • Texas Chemistry Council1 registration
  • TXOGA1 registration
Sources

12 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Feb 19, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Sponsors
Donna CampbellRSenate 25

House committee · Trade, Workforce & Economic Development · Committee vote 9 aye, 0 nay, 2 absent · Out of committee

Senate committee · Business & Commerce · Committee vote 11 aye, 0 nay · Out of committee

Subjects

Business & Commerce--General

Property Interests--Real Property

Purchasing--Local

Purchasing--State

AUDITS & AUDITORS

Text

The text as introduced · 195 words

89R6305 SCR-F

By: Gervin-Hawkins
H.B. No. 3005

A BILL TO BE ENTITLED

AN ACT

relating to the payment of funds under certain construction

contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2251.002, Government Code, is amended by

adding Subsection (c) to read as follows:

(c) For purposes of this chapter, a bona fide dispute with

respect to a contract for the construction of a public work does not

include an audit of the public work project that continues for more

than 60 days after the date of the substantial completion of the

project.

SECTION 2. Section 28.003, Property Code, is amended by

adding Subsection (c) to read as follows:

(c) For purposes of Subsection (a) or (b), a good faith

dispute does not include an audit of the construction or

improvement project under contract that continues for more than 60

days after the date of the substantial completion of the project.

SECTION 3. 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 4. This Act takes effect September 1, 2025.