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A BILL TO BE ENTITLED
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AN ACT
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relating to the content of certain contracts entered into by |
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governmental entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2054.603, Government Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) Contract language in a cybersecurity insurance contract |
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or other contract for goods or services prohibiting or restricting |
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a state agency's or local government's compliance with this section |
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or otherwise circumventing the requirements of this section is void |
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and unenforceable. |
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SECTION 2. Section 2252.909, Government Code, as added by |
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Chapter 1008 (H.B. 2518), Acts of the 88th Legislature, Regular |
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Session, 2023, is amended by amending Subsection (b) and adding |
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Subsection (b-1) to read as follows: |
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(b) Except as provided by Subsection (b-1), a [A] lease |
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between a governmental entity and another person regarding public |
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property must contain lease terms requiring the person to: |
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(1) include in each contract for the construction, |
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alteration, or repair of an improvement to the leased property a |
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condition that the contractor: |
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(A) execute a payment bond that conforms to |
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Subchapter I, Chapter 53, Property Code; and |
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(B) execute a performance bond in an amount equal |
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to the amount of the contract for the protection of the governmental |
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entity and conditioned on the faithful performance of the |
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contractor's work in accordance with the plans, specifications, and |
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contract documents; and |
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(2) provide to the governmental entity a notice of |
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commencement consistent with this section at least 90 days before |
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the date the construction, alteration, or repair of any improvement |
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to the leased property begins. |
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(b-1) The requirement that a lease must contain a term |
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requiring notice of commencement to a governmental entity under |
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Subsection (b)(2) does not apply to a lease between an institution |
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of higher education, as defined by Section 61.003, Education Code, |
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and another person regarding public property. |
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SECTION 3. Section 2054.603(e), Government Code, as added |
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by this Act, is intended to clarify rather than change existing law. |
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SECTION 4. Section 2252.909, Government Code, as amended by |
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this Act, applies only to a lease between a governmental entity and |
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another person regarding public property that is entered into on or |
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after September 1, 2025. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |