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AN ACT
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relating to prohibiting a public institution of higher education |
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from partnering with certain private entities for the construction |
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of a student housing facility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 51, Education Code, is |
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amended by adding Section 51.9273 to read as follows: |
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Sec. 51.9273. CERTAIN PARTNERSHIPS TO CONSTRUCT STUDENT |
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HOUSING FACILITIES PROHIBITED. (a) In this section, "institution |
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of higher education" has the meaning assigned by Section 61.003. |
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(b) An institution of higher education may not enter into a |
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contract to partner with a private entity to construct a student |
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housing facility if the entity has a pending action or lien against |
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the entity or entity's property relating to a claim for nonpayment |
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of a contractor, subcontractor, or vendor. This section does not |
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apply to a claim for nonpayment if the entity: |
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(1) has provided a payment bond to cover the claim; or |
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(2) contests in good faith the validity or accuracy of |
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the claim. |
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SECTION 2. Section 51.9273, Education Code, as added by |
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this Act, applies only to a contract entered into on or after the |
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effective date of this Act. A contract entered into before the |
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effective date of this Act is governed by the law in effect on the |
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date the contract was entered into, and the former law is continued |
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in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 718 was passed by the House on April |
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30, 2025, by the following vote: Yeas 131, Nays 6, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 718 on May 30, 2025, by the following vote: Yeas 136, Nays 0, 2 |
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present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 718 was passed by the Senate, with |
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amendments, on May 28, 2025, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |