Texas Senate Bill SB1776

Texas 2009 - 81st Regular

Caption

Relating to assessment of certain charges by a commercial landlord that is a governmental entity.

Impact

The implications of SB 1776 are likely to affect the cost of leasing property from governmental entities. By permitting these entities to vary charges based on the need to recoup operating costs, the bill ensures that governmental landlords can sustainably manage their financial obligations. This could also lead to increased transparency in how charges are determined and adjusted over time, ultimately benefiting both the landlords and the tenants through clearer expectations and financial arrangements.

Summary

Senate Bill 1776 introduces amendments to the Texas Property Code concerning the assessment of charges by commercial landlords that are classified as governmental entities. The bill explicitly stipulates that these landlords have the right to adjust charges under a lease agreement to ensure full compensation for their operating costs. This clarification aims to protect governmental landlords from potential conflicts arising from lease agreements that may not adequately cover operational expenses.

Contention

While the bill addresses a significant aspect of lease agreements involving governmental entities, it may raise questions regarding the fairness of varying charges. Stakeholders may contend whether such adjustments could lead to unpredictable costs for tenants and whether they limit the competitiveness of leasing from governmental entities. As governmental practices enhance flexibility in charge assessments, there may be concerns about maintaining consistency and fairness in lease agreements across different governmental entities.