Texas 2023 - 88th Regular

Texas House Bill HB2518 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 2518
2	2
3	3
4	4	AN ACT
5	5	relating to required lease terms for public property leased to a
6	6	nongovernmental entity; creating a criminal offense.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter Z, Chapter 2252, Government Code, is
9	9	amended by adding Section 2252.909 to read as follows:
10	10	Sec. 2252.909. REQUIRED LEASE TERMS FOR LEASE OF PUBLIC
11	11	PROPERTY. (a) In this section, "governmental entity" has the
12	12	meaning assigned by Section 2253.001.
13	13	(b) A lease between a governmental entity and another person
14	14	regarding public property must contain lease terms requiring the
15	15	person to:
16	16	(1) include in each contract for the construction,
17	17	alteration, or repair of an improvement to the leased property a
18	18	condition that the contractor:
19	19	(A) execute a payment bond that conforms to
20	20	Subchapter I, Chapter 53, Property Code; and
21	21	(B) execute a performance bond in an amount equal
22	22	to the amount of the contract for the protection of the governmental
23	23	entity and conditioned on the faithful performance of the
24	24	contractor's work in accordance with the plans, specifications, and
25	25	contract documents; and
26	26	(2) provide to the governmental entity a notice of
27	27	commencement consistent with this section at least 90 days before
28	28	the date the construction, alteration, or repair of any improvement
29	29	to the leased property begins.
30	30	(c) A notice of commencement under Subsection (b) must:
31	31	(1) identify the public property where the work will
32	32	be performed;
33	33	(2) describe the work to be performed;
34	34	(3) state the total cost of the work to be performed;
35	35	(4) include copies of the performance and payment
36	36	bonds required under Subsection (b); and
37	37	(5) include a written acknowledgment signed by the
38	38	contractor stating that copies of the required performance and
39	39	payment bonds will be provided to all subcontractors not later than
40	40	the fifth day after the date a subcontract is executed.
41	41	(d) On or before the 10th day after the date a governmental
42	42	entity receives a notice of commencement for the construction,
43	43	alteration, or repair of an improvement to leased property required
44	44	under Subsection (b)(2), the governmental entity may notify the
45	45	leaseholder that the construction, alteration, or repair may not
46	46	proceed.
47	47	(e) A person commits an offense if the person materially
48	48	misrepresents information in a notice of commencement. An offense
49	49	under this subsection is a Class A misdemeanor.
50	50	SECTION 2. Section 2253.027, Government Code, is amended by
51	51	amending Subsection (a) and adding Subsection (c) to read as
52	52	follows:
53	53	(a) If a governmental entity fails to obtain from a prime
54	54	contractor a payment bond as required by Section 2253.021 or fails
55	55	to include in a lease the lease terms required by Section 2252.909:
56	56	(1) the entity is subject to the same liability that a
57	57	surety would have if the surety had issued a payment bond and if the
58	58	entity had obtained the bond; and
59	59	(2) a payment bond beneficiary is entitled to a lien on
60	60	money due to the prime contractor in the same manner and to the same
61	61	extent as if the public work contract were subject to Subchapter J,
62	62	Chapter 53, Property Code.
63	63	(c) A governmental entity is not liable as a surety under
64	64	Subsection (a)(1) if a person leasing property from the entity
65	65	fails to submit to the entity the notice of commencement required by
66	66	Section 2252.909.
67	67	SECTION 3. The changes in law made by this Act apply only to
68	68	a lease for public property entered into or renewed by a
69	69	governmental entity on or after the effective date of this Act.
70	70	SECTION 4. This Act takes effect September 1, 2023.
71	71	______________________________ ______________________________
72	72	President of the Senate Speaker of the House
73	73	I certify that H.B. No. 2518 was passed by the House on April
74	74	27, 2023, by the following vote: Yeas 147, Nays 0, 1 present, not
75	75	voting.
76	76	______________________________
77	77	Chief Clerk of the House
78	78	I certify that H.B. No. 2518 was passed by the Senate on May
79	79	16, 2023, by the following vote: Yeas 31, Nays 0.
80	80	______________________________
81	81	Secretary of the Senate
82	82	APPROVED: _____________________
83	83	Date
84	84	_____________________
85	85	Governor