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Signed Into Law
Signed May 27, 2025Effective 2025-09-01
SB1012

Regular Session

Relating to authorizing the sale or lease by the State of Texas of certain real property located in Austin, Texas.

Government Affairs & Regulatory Compliance Analysis

SB1012: Government Affairs Overview

SB1012 authorizes the disposition of two high-value state properties in Austin (Shoal Creek Blvd and 45th St), creating significant commercial real estate and construction opportunities rather than general compliance mandates. This legislation affects developers and government contractors, but strictly conditions the Shoal Creek transaction on the prior construction and occupation of a replacement state records facility, creating a multi-year delay for that specific parcel.

Sen. Lois Kolkhorst·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Business Impact

Who SB1012 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 145th Street Leases: Agreements must legally grant easements to HHSC for adjacent properties. This is a statutory requirement, not a negotiation point.
  • 2Use Restrictions: Leases will contain restrictive covenants dictated by HHSC operational compatibility; legal counsel must review these for impact on intended commercial density.
  • 3Procurement Monitoring: Direct bid teams to set alerts for GLO and HHSC solicitations on the Electronic State Business Daily (ESBD) starting September 1, 2025.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1012
Low
Relating to authorizing the sale or lease by the State of Texas of certain real property located in Austin, Texas.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
GLOHHSC
Primary Author: Sen. Lois Kolkhorst
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: Transaction Dependent.
  • *45th Street:* Solicitations expected Q4 2025 or Q1 2026 ("as soon as practicable" after effective date).
  • *Shoal Creek:* Delayed Indefinitely. Closing cannot occur until the Texas State Library and Archives Commission (TSLAC) occupies a newly constructed replacement facility (likely 2027-2028).
  • Agency Rulemaking: The General Land Office (GLO) and Health and Human Services Commission (HHSC) will not issue administrative rules but will release Requests for Proposals (RFPs) that define specific transactional constraints.

Immediate Action Plan

  • Pull Title Immediately: Direct legal teams to identify the specific deed restrictions on the 45th Street parcel referenced in the Fiscal Note to determine project viability.
  • Track Appropriations: Monitor the legislative budget process for funding of the "Alternative State Records Facility." Without this funding, the Shoal Creek deal cannot close.
  • Update Financial Models: Adjust pro formas for the Shoal Creek site to account for a 2-3 year holding period/delay while the replacement facility is constructed.
  • Map Easements: Pre-plan site layouts for the 45th Street location to accommodate mandatory HHSC easements before the RFP is released.

Operational Changes Required

Contracts

  • Shoal Creek Acquisitions: Purchase agreements must include a Condition Precedent clause. The transaction cannot legally close until the TSLAC replacement facility is operational. Contracts must include force majeure clauses covering state construction delays.
  • 45th Street Leases: Agreements must legally grant easements to HHSC for adjacent properties. This is a statutory requirement, not a negotiation point.
  • Use Restrictions: Leases will contain restrictive covenants dictated by HHSC operational compatibility; legal counsel must review these for impact on intended commercial density.

Hiring/Training

  • Procurement Monitoring: Direct bid teams to set alerts for GLO and HHSC solicitations on the Electronic State Business Daily (ESBD) starting September 1, 2025.
  • No New Certifications: No new staff certifications are required.

Reporting & Record-Keeping

  • Proposal Documentation: Bids for the 45th Street property must include a detailed Proposed Use Plan (Section 3(d)(1)) to demonstrate compatibility with HHSC operations.
  • Surveying: Site plans must explicitly map mandatory easements for adjacent commission properties; failure to document these will render a bid non-compliant.

Fees & Costs

  • Due Diligence: Budget immediately for Phase I and Phase II Environmental Site Assessments, as state property is generally transferred "as is."
  • Title Work: Budget for immediate title research regarding deed restrictions referenced in the Fiscal Note.

Strategic Ambiguities & Considerations

  • The Replacement Facility Funding: The bill authorizes the sale of Shoal Creek but does not appropriate funds to build the required replacement facility. If the Legislature fails to appropriate construction funds in the next session, the Shoal Creek transaction is legally paralyzed.
  • Deed Restrictions: The Fiscal Note explicitly warns that HHSC may be unable to sell/lease parts of the property due to existing deed restrictions. The bill does not override private property rights.
  • "As Soon As Practicable": This statutory language grants the GLO and HHSC broad discretion to delay offerings if they deem market conditions unfavorable.

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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
Jan 30, 2025
Passed Senate
May 6, 2025
Passed House
May 13, 2025
Signed
May 27, 2025
Effective
Sep 1, 2025
TopicsAustin, City ofProperty InterestsProperty Interests--real PropertyPublic Lands, Buildings & ResourcesGeneral Land OfficeLibraries & Librarians
03

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author
Coauthors (1)

House Sponsor

Rep. Donna HowardDemocrat · 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. Lois Kolkhorst

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB1012

Q

What does Texas SB1012 do?

SB1012 authorizes the disposition of two high-value state properties in Austin (Shoal Creek Blvd and 45th St), creating significant commercial real estate and construction opportunities rather than general compliance mandates. This legislation affects developers and government contractors, but strictly conditions the Shoal Creek transaction on the prior construction and occupation of a replacement state records facility, creating a multi-year delay for that specific parcel.

Q

Who authored SB1012?

SB1012 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

Q

When was SB1012 signed into law?

SB1012 was signed into law by Governor Greg Abbott on May 27, 2025.

Q

Which agencies enforce SB1012?

SB1012 is enforced by General Land Office (GLO) and Health and Human Services Commission (HHSC).

Q

How significant are the changes in SB1012?

The regulatory priority for SB1012 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1012?

The cost impact of SB1012 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1012 address?

SB1012 addresses topics including austin, city of, property interests, property interests--real property, public lands, buildings & resources and general land office.

Q

What are the key dates for SB1012?

Key dates for SB1012: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB1012?

SB1012 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

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.

Legislative data provided by LegiScanLast updated: January 11, 2026