Regular Session
Government Affairs & Regulatory Compliance Analysis
HB2853 authorizes a tiered fee increase at UTEP to fund the demolition, construction, and financing of a new Student Union Building, creating a $5. 5M annual revenue stream for debt service by 2028. This legislation triggers immediate procurement planning for construction vendors and lease renegotiations for current facility tenants facing displacement.
Rep. Vincent Perez·House Bill·Regular Session
Board of Regents of The University of Texas System
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
highSignificant operational investment may be required.
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JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Current Student Union tenants (retail, food service, banking) must review Master Service Agreements (MSAs) immediately for "termination for convenience," force majeure, or relocation clauses triggered by the authorized demolition. Construction firms should prepare for CMAR or Design-Build contract structures typical of UT System capital projects.
University administrators must operationalize protocols for "general student elections," which are now legally required if fee increases exceed 10% year-over-year. No specific private sector hiring mandates exist, though contractors must prepare for hazardous material abatement (demolition) requirements.
UTEP must establish a segregated account for these fees. Revenue generated under Section 54.535(a) is legally restricted to the Student Union; commingling these funds with general operating accounts creates significant bond covenant liability.
Billing systems must reflect the following statutory caps per semester (10+ weeks):
The statute restricts funds to the "sole purpose" of the student union. If the new facility includes mixed-use spaces (e.g., academic classrooms or administrative offices), the cost-allocation methodology between student fees and general tuition remains undefined and carries audit risk. Additionally, the specific quorum and ballot language requirements for the "general student election" are currently undefined, leaving future fee hikes vulnerable to procedural challenges.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about HB2853
HB2853 authorizes a tiered fee increase at UTEP to fund the demolition, construction, and financing of a new Student Union Building, creating a $5. 5M annual revenue stream for debt service by 2028. This legislation triggers immediate procurement planning for construction vendors and lease renegotiations for current facility tenants facing displacement.
HB2853 was authored by Texas Representative Vincent Perez during the Regular Session.
HB2853 was signed into law by Governor Greg Abbott on June 22, 2025.
HB2853 is enforced by Board of Regents of The University of Texas System.
The regulatory priority for HB2853 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB2853 is estimated as "high". This may vary based on industry and implementation requirements.
HB2853 addresses topics including education, education--higher, education--higher--institutions & programs, education--higher--student fees and university of texas at el paso.
Key dates for HB2853: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
