| 1 | 1 | | 89R14671 GP-D |
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| 2 | 2 | | By: Bell of Kaufman H.B. No. 5435 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to required lease terms for public property leased to a |
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| 10 | 10 | | nongovernmental entity. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Sections 2252.909(a) and (b), Government Code, |
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| 13 | 13 | | as added by Chapter 1008 (H.B. 2518), Acts of the 88th Legislature, |
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| 14 | 14 | | Regular Session, 2023, are amended to read as follows: |
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| 15 | 15 | | (a) In this section: |
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| 16 | 16 | | (1) "Emergency" means a sudden, urgent occurrence that |
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| 17 | 17 | | requires immediate action. |
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| 18 | 18 | | (2) "Governmental [,"governmental] entity" has the |
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| 19 | 19 | | meaning assigned by Section 2253.001. |
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| 20 | 20 | | (b) A lease between a governmental entity and another person |
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| 21 | 21 | | regarding public property must contain lease terms requiring the |
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| 22 | 22 | | person to: |
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| 23 | 23 | | (1) include in each contract for the construction, |
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| 24 | 24 | | alteration, or repair of an improvement to the leased property a |
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| 25 | 25 | | condition that the contractor: |
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| 26 | 26 | | (A) if the contract meets the description in |
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| 27 | 27 | | Section 2253.021(a)(2)(A) or (B), execute a payment bond that |
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| 28 | 28 | | conforms to Subchapter I, Chapter 53, Property Code; and |
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| 29 | 29 | | (B) if the contract meets the description in |
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| 30 | 30 | | Section 2253.021(a)(1), execute a performance bond in an amount |
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| 31 | 31 | | equal to the amount of the contract for the protection of the |
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| 32 | 32 | | governmental entity and conditioned on the faithful performance of |
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| 33 | 33 | | the contractor's work in accordance with the plans, specifications, |
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| 34 | 34 | | and contract documents; and |
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| 35 | 35 | | (2) provide to the governmental entity a notice of |
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| 36 | 36 | | commencement consistent with this section: |
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| 37 | 37 | | (A) at least 90 days before the date the |
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| 38 | 38 | | construction, alteration, or repair of any improvement to the |
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| 39 | 39 | | leased property begins; or |
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| 40 | 40 | | (B) in the event of an emergency, at least 30 days |
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| 41 | 41 | | before the date the construction, alteration, or repair of any |
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| 42 | 42 | | improvement to the leased property begins. |
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| 43 | 43 | | SECTION 2. The change in law made by this Act applies only |
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| 44 | 44 | | to a lease between a governmental entity and another person |
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| 45 | 45 | | regarding public property that is entered into on or after the |
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| 46 | 46 | | effective date of this Act. |
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| 47 | 47 | | SECTION 3. This Act takes effect September 1, 2025. |
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