Advocacy Update: Construction Trust Fund Legislation
Date postedApril 28, 2025
Houston BOMA has been actively engaged at the Texas Capitol in response to four significant construction trust fund bills (HB 3287, HB 3288, HB 3289, and HB 3290) that could impact retainage practices, owner liability, and contract flexibility in commercial real estate.
Timeline and Actions:
- March–April 2025: Houston BOMA reviewed and analyzed the originally filed legislation and identified serious concerns regarding criminal liability risks and loss of owner leverage.
- April 15, 2025: CEO Bradley Elliott testified at the Texas House Committee on Trade, Workforce, and Economic Development hearing in opposition to all four bills on behalf of Texas BOMA. See video of the testimony here. (Testimony at: 3:11:44 - 3:13:28 | 3:22:09 - 3:23:17 | 3:33:18 - 3:34:14 | 3:42:29 - 3:43:20)
- Late April 2025: Following stakeholder negotiations, substitute bills were released with partial improvements. Houston BOMA completed a detailed analysis of the new drafts and provided recommended amendments to further protect commercial owners and managers.
- Ongoing: Houston BOMA continues to work closely with Texas BOMA and other stakeholders to advocate for meaningful changes to the bills. Meetings with legislative offices are ongoing as the bills move closer to a House vote.
Current Status:
While progress has been made on some bills (notably HB 3287 and HB 3288), significant concerns remain, particularly with HB 3290. Houston BOMA remains actively engaged with policymakers to address outstanding issues and protect the commercial real estate industry.
We will continue to monitor developments closely and advocate for outcomes that safeguard the interests of our members.