H.B. No. 3289 amends Section 28.003 of the Property Code to clarify the definition of a "good faith dispute" in the context of construction contracts. The new language specifies that a good faith dispute does not include disagreements related to contracts, work orders, or any agreements between the parties that are not directly tied to the construction contract under which payment is being requested or required. This amendment aims to streamline the payment process under construction contracts by narrowing the scope of what constitutes a dispute.

The bill stipulates that the changes will only apply to contracts entered into on or after the effective date of the Act, which is set for September 1, 2025. This ensures that the new definitions and provisions will not retroactively affect existing contracts, providing clarity and predictability for future construction agreements.

Statutes affected:
Introduced: Property Code 28.003 (Property Code 28)