Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, HB5092 transforms the Lubbock Reese Redevelopment Authority into a specialized zone for national security and critical infrastructure research. For tenants and contractors, this law creates a statutory property tax exemption for inventory destined for federal defense use, provided the work is performed in documented collaboration with Texas Tech University (TTU).
Rep. Carl Tepper·House Bill·Regular Session
Lubbock Central Appraisal District (Chief Appraiser) • Lubbock Reese Redevelopment Authority • Texas Tech University System
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-05-28). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
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
Collaboration Agreements are Mandatory:
To access the new tax exemptions and development incentives, your commercial operations must be legally tied to Texas Tech University.
Board Interaction:
The Authority’s Board of Directors now requires members with expertise in national security and critical infrastructure.
Tax Exemption Documentation (Burden of Proof):
The law grants a presumption that certain property is in "interstate commerce" (tax-exempt) only if you can prove it is held for a "temporary period" before incorporation into a final product.
Tax Savings:
1. Definition of "Collaboration":
The statute requires research or development "in collaboration with Texas Tech University" but does not define the scope.
2. "Temporary Period":
The law relies on the "interstate commerce" clause. While Texas law often defaults to 175 days (Freeport Exemption standards), this specific statute leaves the timeframe open to interpretation.
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
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Common questions about HB5092
Effective immediately, HB5092 transforms the Lubbock Reese Redevelopment Authority into a specialized zone for national security and critical infrastructure research. For tenants and contractors, this law creates a statutory property tax exemption for inventory destined for federal defense use, provided the work is performed in documented collaboration with Texas Tech University (TTU).
HB5092 was authored by Texas Representative Carl Tepper during the Regular Session.
HB5092 was signed into law by Governor Greg Abbott on May 28, 2025.
HB5092 is enforced by Lubbock Central Appraisal District (Chief Appraiser), Lubbock Reese Redevelopment Authority and Texas Tech University System.
The regulatory priority for HB5092 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB5092 is estimated as "low". This may vary based on industry and implementation requirements.
HB5092 addresses topics including special districts & authorities, special districts & authorities--miscellaneous, lubbock reese redevelopment authority, property interests and property interests--personal property.
Key dates for HB5092: Effective date is 2025-05-28. Consult with legal counsel regarding applicability.
HB5092 primarily affects property owners and real estate professionals, technology companies and data processors. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
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.
