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AN ACT
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relating to required lease terms for public property leased to a |
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nongovernmental entity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 2. The change in law made by this Act applies only |
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to a lease between a governmental entity and another person |
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regarding public property that is entered into on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 5435 was passed by the House on May 8, |
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2025, by the following vote: Yeas 145, Nays 1, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 5435 was passed by the Senate on May |
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28, 2025, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |