2025 · Regular session · House bill
HB718
HB718 bars a Texas public institution of higher education from signing a partnership contract to build student housing with a private entity that has a pending action or lien against it or its property relating to an unpaid contr…
Official caption: Relating to prohibiting a public institution of higher education from partnering with certain private entities for the construction of a student housing facility.
Official report lists House author(s): Bell, Cecil. This does not identify sponsors or amendment drafters.
Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.
Bill highlights
Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.
- HB718 bars a Texas public institution of higher education from signing a partnership contract to build student housing with a private entity that has a pending action or lien against it or its property relating to an unpaid contractor, subcontractor or vendor claim.
- The incorporated definition covers public higher-education institutions, including community colleges and public technical institutes—not only four-year universities.
- The law applies only to contracts entered into on or after September 1, 2025, its effective date.
What does it do?
HB718 bars a Texas public institution of higher education from signing a partnership contract to build student housing with a private entity that has a pending action or lien against it or its property relating to an unpaid contractor, subcontractor or vendor claim. But the restriction does not apply to a claim if the entity has provided a payment bond covering it or contests its validity or accuracy in good faith. A pending claim is therefore not automatically disqualifying. Final law
The incorporated definition covers public higher-education institutions, including community colleges and public technical institutes—not only four-year universities. The restriction concerns partnerships to construct student housing, not every college procurement or every private housing project. Institution definition
The law applies only to contracts entered into on or after September 1, 2025, its effective date. Earlier contracts remain governed by the prior law. It does not itself order payment of the claim, decide whether a disputed bill is valid, or cancel existing housing contracts. Official history
What changed along the way?
The introduced bill and House committee text contained the restriction without either exception. The House adopted Cecil Bell’s amendment on April 29 to protect claims covered by a payment bond.
The Senate committee substitute added the separate good-faith-dispute exception. Its operative text became the final law unchanged. The House concurred in the Senate changes May 30, and the governor signed June 20. The amendment index lists the one adopted House floor amendment; the Senate change occurred through its committee substitute, not a separately indexed floor amendment.
For the full amendment record, open the official amendment index.
Official bill versions
Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.
Who could benefit—and who could bear the costs?
Public colleges, students and construction suppliers may benefit from screening potential housing partners for unresolved payment problems. Contractors and vendors could gain leverage when seeking payment, but the law is not a payment guarantee. The bond and good-faith-dispute exceptions help prevent an unsupported or genuinely disputed claim from automatically blocking a partnership.
Colleges must account for these conditions when selecting partners, and affected private entities may need to resolve claims, obtain bonds or document good-faith disputes. The law does not quantify effects on housing availability, construction prices or student rents.
The latest fiscal note anticipated no significant fiscal impact to state or local government, assuming implementation costs could be absorbed using existing resources. It is not an appropriation for new housing.
Official sources
- Bill history and latest recorded action
- Bill versions, analyses and fiscal notes
- Action history and votes
- Amendment index
Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.