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Bill

HB 3287

Relating to construction contract trust funds.

89th Legislature (2025) Introduced by Keith Bell and 4 co-sponsors

HB 3287 requires Texas construction contractors to establish and maintain separate trust accounts for client funds, protecting subcontractors and suppliers from payment misappropriation.

Committee report sent to Calendars
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Bill Summary · HB 3287

Legislative bill overview

HB 3287 establishes requirements for construction contract trust funds in Texas, likely creating standards for how contractors must handle payments and deposits from construction projects. The bill appears to mandate separate accounting or protection mechanisms for funds received from clients to ensure money is properly segregated and available for subcontractors and material suppliers.

Why is this important

Construction trust fund protections directly affect the financial security of subcontractors, material suppliers, and workers who depend on timely payment for their services. Without proper trust fund requirements, these parties face significant risk of non-payment when general contractors misuse or comingle project funds with business operating accounts.

Potential points of contention

  • Compliance burden on contractors: Small construction firms may argue that detailed trust accounting requirements increase administrative costs and complexity
  • Scope of applicability: Disagreement over which construction projects or contract sizes trigger trust fund requirements could favor larger firms over small operators
  • Enforcement mechanisms: Disputes may arise over who investigates violations and what penalties apply, potentially affecting contractor licensing and liability

Compiled from official sources — confirm details with the bill’s official record.

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