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SB1242

Regular Session

Relating to the acquisition of land and facilities by the Texas State Technical College System.

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

Texas State Technical College System Board of Regents

SB1242
Low
Relating to the acquisition of land and facilities by the Texas State Technical College System.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas State Technical College Sy...
Primary Author: Sen. Brian Birdwell
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025 (Applies to all closings occurring on or after this date).
  • Agency Rulemaking: No external agency rulemaking is required. However, the TSTC Board of Regents must update internal bylaws to reflect this independent authority; monitor TSTC Regents' Rules for these conforming changes.

Immediate Action Plan

  • Audit Pipeline: Identify any pending real estate dispositions to TSTC scheduled to close after September 1, 2025.
  • Update Templates: Redraft standard Letters of Intent (LOI) and PSA templates to remove THECB approval as a Condition Precedent for TSTC deals.
  • Verify Authority: For active deals, request the specific TSTC Board of Regents resolution authorizing the purchase to ensure it does not self-impose the old THECB requirement.

Operational Changes Required

Contracts

Purchase and Sale Agreements (PSAs): For any transaction with TSTC scheduled to close after September 1, 2025, you must strip out standard "Subject to THECB Approval" contingencies. Retaining this clause gives the state a contractual "out" that the law no longer requires. Amend closing conditions to require only TSTC Board of Regents approval.

Hiring/Training

Deal Teams: Instruct acquisition and disposition teams to shorten projected closing timelines. The "regulatory pause" previously factored in for Coordinating Board review is no longer necessary.

Reporting & Record-Keeping

Due Diligence: Cease preparation of THECB justification packets for TSTC transactions. For title and authority purposes, the TSTC Board of Regents meeting minutes authorizing the purchase are now the sole necessary proof of valid authority.

Fees & Costs

Budget Impact: Neutral to Positive. No new fees are introduced. Legal and administrative costs associated with shepherding the transaction through the THECB process are eliminated.

Strategic Ambiguities & Considerations

While the statute removes the *legal* requirement for THECB approval, TSTC’s internal operating procedures (Regents' Rules) may still reference the old process until formally updated. There is a risk that TSTC internal legal counsel or administrative staff may continue to pause transactions for a "courtesy review" by the THECB due to institutional inertia. You must clarify with TSTC counsel early in the deal that they intend to utilize their new statutory autonomy.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 12, 2025
Passed Senate
May 5, 2025
Passed House
May 27, 2025
Signed
Jun 20, 2025
TopicsEducationEducation--higherEducation--higher--institutions & ProgramsEducation--higher--state CoordinationProperty InterestsProperty Interests--real PropertyTexas State Technical College SystemPublic Lands, Buildings & Resources
03

Senate Authors

Sen. Brian BirdwellRepublican · Primary Author

House Sponsor

Rep. Terry WilsonRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Brian Birdwell

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Quick Reference

Frequently Asked Questions

Common questions about SB1242

Q

What does Texas SB1242 do?

SB 1242 eliminates the statutory requirement for the Texas Higher Education Coordinating Board (THECB) to approve Texas State Technical College (TSTC) land and facility acquisitions valued over $300,000. This deregulation streamlines the transaction lifecycle for commercial real estate developers and property owners selling to the System by removing a mandatory, time-consuming state-level regulatory review. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies to all closings occurring on or after this date).

Q

Who authored SB1242?

SB1242 was authored by Texas Senator Brian Birdwell during the Regular Session.

Q

When was SB1242 signed into law?

SB1242 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1242?

SB1242 is enforced by Texas State Technical College System Board of Regents.

Q

How urgent is compliance with SB1242?

The compliance urgency for SB1242 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB1242?

The cost impact of SB1242 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1242 address?

SB1242 addresses topics including education, education--higher, education--higher--institutions & programs, education--higher--state coordination and property interests.

Legislative data provided by LegiScanLast updated: November 25, 2025

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