HB 3712
bill barring retainage on delivered custom-built materials
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 funds reserved for certain construction materials.
Caption from analyzed text · version I.
Summary
Once delivered, accepted and under warranty, the money can’t be held back.
The bill bars an owner, contractor, or subcontractor from holding back retainage funds under the state's construction lien law for specially fabricated material once a subcontractor has delivered it, it has been accepted, and it carries a manufacturer's warranty. It touches construction owners, general contractors, and the subcontractors who supply custom-built materials. Subcontractors on new contracts signed on or after September 1, 2025 get paid for that delivered, warrantied material instead of waiting on the usual reserved funds.
Labels
Labels: STALLED AFTER COMMITTEE. Voted out of the House Trade, Workforce & Economic Development committee 8-0 on Apr 30, 2025. Placed on the General State Calendar on May 15, 2025. The bill died.
Receipt
The receipt
89R-HB3712 · 2025-03-04
SOLD BY
ITEM
relating to funds reserved for certain construction materials.
WHAT IT DOES
Once delivered, accepted and under warranty, the money can’t be held back.
The bill bars an owner, contractor, or subcontractor from holding back retainage funds under the state's construction lien law for specially fabricated material once a subcontractor has delivered it, it has been accepted, and it carries a manufacturer's warranty. It touches construction owners, general contractors, and the subcontractors who supply custom-built materials. Subcontractors on new contracts signed on or after September 1, 2025 get paid for that delivered, warrantied material instead of waiting on the usual reserved funds.
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 · May 2, 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
- Committee substitute considered in committee
- Testimony taken/registration(s) recorded in committee
- Left pending in committee
- Considered in public hearing
- Committee substitute considered in committee
- Reported favorably as substituted
- Comte report filed with Committee Coordinator
- Committee report distributed
- Committee report sent to Calendars
- Considered in Calendars
- Placed on General State Calendar
ALSO NOTED · NOT CHARGED (1)
CARVE-OUT · analysis confidence 30%
THE TEXT
…“reserve funds under this section for specially fabricated material”…
Bill text, introduced version (I)
The relief from retainage goes only to suppliers of specially fabricated material, one kind of product. The caption does say the bill covers certain construction materials, so the favor is disclosed.
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 · Jul 1, 2024 to Oct 24, 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.
Frontera Texas PAC$160,007.97
Frontera Texas PAC
$160,007.97
- Cash
- $0.00
- Paid by others
- $160,007.97
- Total
- $160,007.97
Also funds 3 other sitting lawmakers.
Derived recipient stock · Nov 5, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.
TEC account match.
Sources
Derived itemized flow · Dec 30, 2025 to Oct 24, 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: 101033369, 101062168, 101070155, 101073001.
Texas Sands PAC$120,875.00
Texas Sands PAC
$120,875.00
- Cash
- $113,500.00
- Paid by others
- $7,375.00
- Total
- $120,875.00
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.
TeamSources
Derived itemized flow · Dec 14, 2024 to Sep 25, 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: 100989191, 101033369, 101062168, 101073001.
Associated Republicans of Texas Campaign Fund$22,795.90
Associated Republicans of Texas Campaign Fund
$22,795.90
- Cash
- $0.00
- Paid by others
- $22,795.90
- Total
- $22,795.90
Also funds 20 other sitting lawmakers.
Derived recipient stock · Nov 4, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamSources
Derived itemized flow · Dec 15, 2025 to Sep 10, 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: 101033369, 101070155.
Missing data does not establish zero giving. Display amounts are rounded.
Frontera Texas PAC
$160,007.97
- Cash
- $0.00
- Paid by others
- $160,007.97
- Total
- $160,007.97
Also funds 3 other sitting lawmakers.
Derived recipient stock · Nov 5, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.
TEC account match.
Sources
Derived itemized flow · Dec 30, 2025 to Oct 24, 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: 101033369, 101062168, 101070155, 101073001.
Texas Sands PAC
$120,875.00
- Cash
- $113,500.00
- Paid by others
- $7,375.00
- Total
- $120,875.00
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.
TeamSources
Derived itemized flow · Dec 14, 2024 to Sep 25, 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: 100989191, 101033369, 101062168, 101073001.
Associated Republicans of Texas Campaign Fund
$22,795.90
- Cash
- $0.00
- Paid by others
- $22,795.90
- Total
- $22,795.90
Also funds 20 other sitting lawmakers.
Derived recipient stock · Nov 4, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamSources
Derived itemized flow · Dec 15, 2025 to Sep 10, 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: 101033369, 101070155.
Votes
No floor vote loaded for this bill.
Witnesses9
- For
- 6
- Against
- 3
- On
- 0
Names
For
- Indepemdent Electrical Contractors of Texas1 registration
- Self; Precast Concrete Manufacturers Association (PCMA)2 registrations
- Self; Precast Concrete Manufacturers’ Association1 registration
- Texas Construction Association1 registration
- Texas Water Infrastructure Network (TXWIN)1 registration
Against
- Texas Association of Manufacturers1 registration
- Texas Chemistry Council1 registration
- TXOGA1 registration
Sources
9 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 · May 2, 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 Mar 4, 2025
05/15/2025 H Placed on General State Calendar
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 8 aye, 0 nay, 3 absent · Out of committee
Companion
SB 2131 by Hinojosa, Juan "Chuy" (identical)
Subjects
Property Interests--General
Property Interests--Mortgages & Liens
CONSTRUCTION & BUILDING MATERIALS
CONTRACTORS & SUBCONTRACTORS
CONTRACTORS' LIENS
Text
The text as introduced · 179 words
By: Guillen H.B. No. 3712 A BILL TO BE ENTITLED AN ACT relating to funds reserved for certain construction materials. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 53.101, Property Code, is amended by adding Subsection (a-1) to read as follows: (a-1) An owner, contractor, or subcontractor may not reserve funds under this section for specially fabricated material that: (1) has been delivered by a subcontractor and accepted by the owner, contractor, or subcontractor at the site or off-site; and (2) is covered by a manufacturer's warranty under a contract with the owner, contractor, or subcontractor. SECTION 2. The changes in law made by this Act apply only to an original contract that is entered into on or after the effective date of this Act. An original contract entered into before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.