HB 3288
Bell’s bill on withholding construction trust funds
Did not pass
Verdict: No flags
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 application of funds under construction contracts.
Caption from analyzed text · version I.
Summary
Holding funds over a different contract’s dispute counts as misapplying them.
The bill says a contractor or other trustee who holds or redirects construction trust funds because of a dispute on a different construction contract has misapplied those funds. It touches contractors, subcontractors and suppliers who receive money for construction work and the people downstream who are owed from that money. On the ground, a contractor can no longer hold back payment on one job to offset a fight over another job without being treated as misapplying trust funds, starting with contracts signed on or after September 1, 2025.
Labels
Labels: QUICK READ: 141 WORDS. The bill as filed runs 141 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).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-HB3288 · 2025-02-25
SOLD BY
+ 2 more authors
ITEM
relating to the application of funds under construction contracts.
WHAT IT DOES
Holding funds over a different contract’s dispute counts as misapplying them.
The bill says a contractor or other trustee who holds or redirects construction trust funds because of a dispute on a different construction contract has misapplied those funds. It touches contractors, subcontractors and suppliers who receive money for construction work and the people downstream who are owed from that money. On the ground, a contractor can no longer hold back payment on one job to offset a fight over another job without being treated as misapplying trust funds, starting with 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 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
- Filed
- Read first time
- Referred to Trade, Workforce & Economic Development
- Scheduled for public hearing on . . .
- Considered in public hearing
- Testimony taken/registration(s) recorded in committee
- Left pending in committee
- Considered in formal meeting
- Committee substitute considered in committee
- Reported favorably as substituted
- Comte report filed with Committee Coordinator
- Committee report distributed
- Committee report sent to Calendars
FILED UNDER
No verified beat found.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
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.
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.
TeamSources
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.
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.
TeamSources
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.
Witnesses17
- For
- 9
- Against
- 5
- On
- 3
Names
For
- Indepemdent Electrical Contractors of Texas1 registration
- PHCC1 registration
- Self; Central Texas Subcontractors Association1 registration
- Self; Prism Electric, Inc1 registration
- Self; Texas Construction Association1 registration
- Self; Texas State Association of Electrical Workers1 registration
- Texas Construction Association1 registration
- Texas Crane Owners Association; Precast Concrete Manufacturers Association of Texas1 registration
- Texas Water Infrastructure Network (TXWIN)1 registration
Against
- AGC-Texas Building Branch1 registration
- Associated Builders and Contractors of Texas1 registration
- Houston real estate council1 registration
- Self; Houston Real Estate Council1 registration
- Texas BOMA1 registration
On
- Texas Association of Manufacturers1 registration
- Texas Chemistry Council1 registration
- TXOGA1 registration
Sources
17 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 I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas House · Filed Feb 25, 2025
05/02/2025 H Committee report sent to Calendars
Texas Legislature Online · Introduced · House Committee Report
Data snapshot Oct 26, 2026 at 4:20 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 1615 by Johnson (identical)
Subjects
Business & Commerce--General
Property Interests--General
Property Interests--Trusts
BUILDING CONSTRUCTION
Text
The text as introduced · 141 words
89R7916 PRL-F By: Bell of Kaufman H.B. No. 3288 A BILL TO BE ENTITLED AN ACT relating to the application of funds under construction contracts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 162.031, Property Code, is amended by adding Subsection (a-1) to read as follows: (a-1) A trustee who retains or otherwise diverts trust funds due to a dispute, including an alleged default, arising under a construction contract other than the contract in connection with which the trust funds were received by or placed under the control or direction of the trustee has misapplied the trust funds. SECTION 2. 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 3. This Act takes effect September 1, 2025.