H.B. No. 3005 amends Section 2251.002 of the Government Code to clarify the definition of a bona fide dispute in relation to construction contracts for public works. The new language specifies that such a dispute does not include an audit of the public work project that extends beyond 60 days after the project's substantial completion. This change aims to streamline the payment process under construction contracts by establishing a clear timeframe for audits.
The provisions of this bill apply only to contracts entered into on or after its effective date, which is set for September 1, 2025. The bill received significant support in both the House and Senate, passing with a vote of 130 to 13 in the House and unanimously in the Senate.
Statutes affected: Introduced: Government Code 2251.002, Property Code 28.003 (Government Code 2251, Property Code 28)
House Committee Report: Government Code 2251.002, Property Code 28.003 (Government Code 2251, Property Code 28)
Engrossed: Government Code 2251.002 (Government Code 2251, Property Code 28)
Senate Committee Report: Government Code 2251.002 (Government Code 2251, Property Code 28)
Enrolled: Government Code 2251.002 (Government Code 2251, Property Code 28)