Monitoring the Session

HB 3287

Bell Construction Bill Lets Trustees Off Unless They Meant It

Did not pass

Verdict: Smells

SmellsInitial review
Rep. Keith BellRHouse 4
Both charges, and why
The hole

THE TEXT

“A trustee is not liable for any damages to a beneficiary for misapplication of trust funds unless the trustee misapplied trust funds with intent to defraud.”

Bill text, House committee report version (H)

The stated purpose is to extend trust-fund protection to unpaid contractors and suppliers. This clause limits damages for misusing any construction trust money to cases of intent to defraud, which weakens the remedy across the whole chapter. A second exception lets failure to hold back money on houses up to four units escape entirely.

The hole
Carve-out

THE TEXT

…“is not misapplication of trust funds under this section”

Bill text, House committee report version (H)

Section 3 says that failing to hold back required money on new or existing houses, duplexes, triplexes and quadruplexes is not misuse of trust funds. That exempts one class of residential projects from the duty.

Carve-out

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to construction contract trust funds.

Caption from analyzed text · version H.

Summary

Damages only with intent. Skipping the 10 percent holdback on houses up to four units isn’t misuse.

The bill treats the 10 percent of a construction contract that owners must hold back as trust money for unpaid contractors and suppliers, but only in narrow cases. It covers property owners, lenders, contractors, subcontractors and suppliers on private construction jobs. On the ground, a trustee owes damages for misusing any construction trust money only if they meant to defraud, failing to hold back money on houses up to four units no longer counts as misuse, and the winner of any lawsuit under the chapter gets attorney's fees.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 1963 by Rep. Leach (Did not pass) and this bill (Did not pass). Checked against 88R only.DO-OVER. Reworked text of a bill filed before that died: 88R HB 1963 by Rep. Leach (Did not pass). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.ACROSS THE AISLE. Joint authors: 4 Republicans, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.STALLED AFTER COMMITTEE. Voted out of the House Trade, Workforce & Economic Development committee 9-0 on Apr 25, 2025. Never placed on a calendar. The bill died.

Receipt

The receipt

89R-HB3287 · 2025-02-25

SOLD BY

Rep. Keith BellRHouse 4 Rep. Angie Chen ButtonRHouse 112 Rep. Cole HefnerRHouse 5

+ 2 more authors

ITEM

relating to construction contract trust funds.

WHAT IT DOES

Damages only with intent. Skipping the 10 percent holdback on houses up to four units isn’t misuse.

The bill treats the 10 percent of a construction contract that owners must hold back as trust money for unpaid contractors and suppliers, but only in narrow cases. It covers property owners, lenders, contractors, subcontractors and suppliers on private construction jobs. On the ground, a trustee owes damages for misusing any construction trust money only if they meant to defraud, failing to hold back money on houses up to four units no longer counts as misuse, and the winner of any lawsuit under the chapter gets attorney's fees.

CHARGES

[x] THE HOLEanalysis confidence 65%

THE TEXT

“A trustee is not liable for any damages to a beneficiary for misapplication of trust funds unless the trustee misapplied trust funds with intent to defraud.”

Bill text, House committee report version (H)

The stated purpose is to extend trust-fund protection to unpaid contractors and suppliers. This clause limits damages for misusing any construction trust money to cases of intent to defraud, which weakens the remedy across the whole chapter. A second exception lets failure to hold back money on houses up to four units escape entirely.

[x] CARVE-OUTanalysis confidence 50%

THE TEXT

…“is not misapplication of trust funds under this section”

Bill text, House committee report version (H)

Section 3 says that failing to hold back required money on new or existing houses, duplexes, triplexes and quadruplexes is not misuse of trust funds. That exempts one class of residential projects from the duty.

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 26, 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. Committee substitute considered in committee
  10. Reported favorably as substituted
  11. Comte report filed with Committee Coordinator
  12. Committee report distributed
  13. Committee report sent to Calendars
FILED UNDER

SPEECH AND LAWFARE

THE TEXT

“A trustee is not liable for any damages to a beneficiary for misapplication of trust funds unless the trustee misapplied trust funds with intent to defraud.”

Bill text, House committee report version (H)

The bill shields trustees from damage suits over misused construction trust money unless intent to defraud is shown, and it adds mandatory fee-shifting to the winning party.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Keith Bell

Donors

Josh Stevens$50,000Carla Enna$50,000Texans for Lawsuit Reform PAC$35K

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 · Oct 31, 2024 to Oct 23, 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.

Josh Stevens$50,000.00
Carla Enna$50,000.00
Texans for Lawsuit Reform PAC$35,000.00

Texans for Lawsuit Reform PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 30, 2025 to Sep 4, 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: 101007782, 101027129, 101068150.

Money

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

×

Texans for Lawsuit Reform PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 30, 2025 to Sep 4, 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: 101007782, 101027129, 101068150.

Votes

No floor vote loaded for this bill.

Witnesses14
For
9
Against
3
On
2
Names

For

  • Associated Builders and Contractors of Texas1 registration
  • Indepemdent Electrical Contractors of Texas1 registration
  • PHCC1 registration
  • Self; Central Texas Subcontractors Association1 registration
  • Self; Prism Electric, Inc1 registration
  • Self; Texas Construction Association1 registration
  • Texas Construction Association1 registration
  • Texas Crane Owners Association; Precast Concrete Manufacturers Association of Texas1 registration
  • Texas Water Infrastructure Network (TXWIN)1 registration

Against

  • Houston real estate council1 registration
  • Self; Houston Real Estate Council1 registration
  • Texas BOMA1 registration

On

  • Texas Association of Manufacturers1 registration
  • TXOGA1 registration
Sources

14 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.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 26, 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 H by claude-opus-5-5, Oct 22, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 1963

by Rep. Leach, different lead author · Did not pass · reworked

Introduced text

Last action, May 9, 2023: Committee report sent to Calendars

Relating to construction contract trust funds.

Caption, 88R bill history

Sources

Texas House · Filed Feb 25, 2025

05/05/2025 H Committee report sent to Calendars

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

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

Companion

SB 1612 by Johnson (identical)

Subjects

Business & Commerce--General

Civil Remedies & Liabilities

Housing--General

Property Interests--Real Property

Property Interests--Trusts

ATTORNEY'S FEES

BUILDING CONSTRUCTION

MATERIALMEN'S LIENS

MECHANICS' LIENS

Text

The text as introduced · 317 words

89R4650 SCR-F

By: Bell of Kaufman
H.B. No. 3287

A BILL TO BE ENTITLED

AN ACT

relating to construction contract trust funds.

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

SECTION 1. Section 162.001, Property Code, is amended by

adding Subsection (a-1) to read as follows:

(a-1) Except as provided by this subsection, funds reserved

or required to be reserved under Section 53.101 are trust funds

under this chapter. Funds reserved or required to be reserved under

Section 53.101 for the construction or repair of a new or existing

single-family house, duplex, triplex, or quadruplex, to be used for

residential purposes, including improvements appurtenant to the

residence, are not trust funds under this chapter.

SECTION 2. Section 162.003(a), Property Code, is amended to

read as follows:

(a) An artisan, laborer, mechanic, contractor,

subcontractor, or materialman who labors or who furnishes labor or

material for the construction or repair of an improvement on

specific real property in this state is a beneficiary of any trust

funds :

(1) paid or received in connection with the

improvement ; or

(2) reserved or required to be reserved under Section

53.101 in connection with the improvement .

SECTION 3. Subchapter B, Chapter 162, Property Code, is

amended by adding Section 162.034 to read as follows:

Sec. 162.034. ATTORNEY'S FEES AND COSTS. The court shall

award costs and reasonable attorney's fees to a beneficiary who

prevails in an action brought against a trustee under this chapter.

SECTION 4. (a) Except as provided by Subsection (b) of this

section, the changes in law made by this Act apply only to a

construction contract that is entered into on or after the

effective date of this Act.

(b) Section 162.034, Property Code, as added by this Act,

applies only to an action commenced on or after the effective date

of this Act.

SECTION 5. This Act takes effect September 1, 2025.