Texas House Bill HB2724

Texas 2023 - 88th Regular

• Filed: 2/23/23

Caption

Relating to prohibiting a public institution of higher education from partnering with certain private entities for the construction of a student housing facility.

Impact

The introduction of HB 2724 reflects a significant change in how public institutions can engage with private developers. By prohibiting partnerships based on financial disputes or bad debts, the bill aims to safeguard educational institutions against potential financial liabilities that can arise when dealing with unreliable contractors. This may lead to enhanced due diligence in selecting partners for construction projects and could potentially result in higher standards for transparency and accountability in project financing.

Summary

House Bill 2724 aims to regulate the partnerships between public institutions of higher education and private entities for the construction of student housing facilities. Specifically, it prohibits these institutions from entering into contracts with private entities that have any pending actions or liens related to claims of nonpayment by contractors, subcontractors, or vendors. This legislation seeks to ensure that public funds are not allocated to entities with questionable financial practices, thus protecting the integrity of state-funded projects.

Sentiment

The sentiment surrounding HB 2724 appears to be generally supportive from legislative members who prioritize fiscal responsibility and integrity in public spending. Proponents argue that this bill is essential for maintaining quality standards in higher education infrastructure. However, there may be some contention from certain private developers who could view this as a barrier to entering contracts with public institutions, impacting their business prospects especially if they are currently involved in disputes.

Contention

A notable point of contention regarding HB 2724 is the potential impact it may have on the timeliness and availability of student housing projects. Objectors may argue that the stringent requirements for entering into partnerships could delay important construction projects, thereby exacerbating existing housing shortages for students. Critics may also suggest that this measure could discourage innovative partnerships that could benefit the student community by limiting potential collaboration opportunities with private entities eager to invest in higher education infrastructure.

Texas Constitutional Statutes Affected

Education Code

• Chapter 51. Provisions Generally Applicable To Higher Education
  • Section: New Section