HB 3289
Bell’s bill narrowing “good faith dispute” in construction payments
Died in committee
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 payment of funds under construction contracts.
Caption from analyzed text · version I.
Summary
A fight over some other contract no longer justifies holding payment.
The bill narrows what counts as a "good faith dispute" that lets someone hold back payment on a construction contract. A dispute over some other, unrelated contract or work order between the same parties no longer counts as a reason to withhold payment on this one. Owners, contractors and subcontractors on contracts signed on or after September 1, 2025, lose the ability to withhold construction payments over unrelated deals.
Labels
Labels: QUICK READ: 135 WORDS. The bill as filed runs 135 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).PENDING FOREVER. Heard by the House Trade, Workforce & Economic Development committee on Apr 15, 2025 and left pending. Never voted out. The bill died.
Receipt
The receipt
89R-HB3289 · 2025-02-25
SOLD BY
+ 2 more authors
ITEM
relating to the payment of funds under construction contracts.
WHAT IT DOES
A fight over some other contract no longer justifies holding payment.
The bill narrows what counts as a "good faith dispute" that lets someone hold back payment on a construction contract. A dispute over some other, unrelated contract or work order between the same parties no longer counts as a reason to withhold payment on this one. Owners, contractors and subcontractors on contracts signed on or after September 1, 2025, lose the ability to withhold construction payments over unrelated deals.
CHARGES
[ ] NONE FOUND
TOTAL
No significant fiscal implication to the State is anticipated.
LBB estimate · fiscal note version I · source
Sources
Fiscal note · version I · April 11, 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
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.
Fiscal
No significant fiscal implication to the State is anticipated.
LBB estimate · fiscal note version I · source
Sources
Fiscal note · version I · April 11, 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
04/15/2025 H Left pending in committee
Texas Legislature Online · Introduced
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 · Final status: Died in committee
Companion
SB 1614 by Johnson (identical)
Subjects
Business & Commerce--General
Property Interests--General
BUILDING CONSTRUCTION
MEDIATION, DISPUTE RESOLUTION, & ARBITRATION
Text
The text as introduced · 135 words
89R7915 PRL-F By: Bell of Kaufman H.B. No. 3289 A BILL TO BE ENTITLED AN ACT relating to the payment of funds under construction contracts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 28.003, Property Code, is amended by adding Subsection (c) to read as follows: (c) For purposes of this section, a good faith dispute does not include a dispute relating to a contract, work order, contractual arrangement, or any other agreement between the parties that is not related to the contract for construction under which payment is requested or required. 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.