89R14671 GP-D
By: Bell of Kaufman H.B. No. 5435
A BILL TO BE ENTITLED
AN ACT
relating to required lease terms for public property leased to a
nongovernmental entity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2252.909(a) and (b), Government Code,
as added by Chapter 1008 (H.B. 2518), Acts of the 88th Legislature,
Regular Session, 2023, are amended to read as follows:
(a) In this section:
(1) "Emergency" means a sudden, urgent occurrence that
requires immediate action.
(2) "Governmental [,"governmental] entity" has the
meaning assigned by Section 2253.001.
(b) A lease between a governmental entity and another person
regarding public property must contain lease terms requiring the
person to:
(1) include in each contract for the construction,
alteration, or repair of an improvement to the leased property a
condition that the contractor:
(A) if the contract meets the description in
Section 2253.021(a)(2)(A) or (B), execute a payment bond that
conforms to Subchapter I, Chapter 53, Property Code; and
(B) if the contract meets the description in
Section 2253.021(a)(1), execute a performance bond in an amount
equal to the amount of the contract for the protection of the
governmental entity and conditioned on the faithful performance of
the contractor's work in accordance with the plans, specifications,
and contract documents; and
(2) provide to the governmental entity a notice of
commencement consistent with this section:
(A) at least 90 days before the date the
construction, alteration, or repair of any improvement to the
leased property begins; or
(B) in the event of an emergency, at least 30 days
before the date the construction, alteration, or repair of any
improvement to the leased property begins.
SECTION 2. The change in law made by this Act applies only
to a lease between a governmental entity and another person
regarding public property that is entered into on or after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.