1. (a) In this section, "institution of higher education" has the meaning assigned by Section 61.003.

2. (b) An institution of higher education may not enter into a contract to partner with a private entity to construct a student housing facility if the entity has a pending action or lien against the entity or entity's property relating to a claim for nonpayment of a contractor, subcontractor, or vendor. This section does not apply to a claim for nonpayment if the entity:

   1. (1) has provided a payment bond to cover the claim; or
   2. (2) contests in good faith the validity or accuracy of the claim.

Added by Acts 2025, 89th Leg., R.S., Ch. 926 (H.B. 718), Sec. 1, eff. September 1, 2025.