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A BILL TO BE ENTITLED
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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. Sections 2252.909(a) and (b), Government Code, |
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as added by Chapter 1008 (H.B. 2518), Acts of the 88th Legislature, |
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Regular Session, 2023, are amended to read as follows: |
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(a) In this section: |
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(1) "Emergency" means a sudden, urgent occurrence that |
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requires immediate action. |
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(2) "Governmental [,"governmental] entity" has the |
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meaning assigned by Section 2253.001. |
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(b) A lease between a governmental entity and another person |
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regarding public property must contain lease terms requiring the |
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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) if the contract meets the description in |
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Section 2253.021(a)(2)(A) or (B), execute a payment bond that |
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conforms to Subchapter I, Chapter 53, Property Code; and |
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(B) if the contract meets the description in |
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Section 2253.021(a)(1), execute a performance bond in an amount |
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equal to the amount of the contract for the protection of the |
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governmental entity and conditioned on the faithful performance of |
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the contractor's work in accordance with the plans, specifications, |
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and 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: |
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(A) at least 90 days before the date the |
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construction, alteration, or repair of any improvement to the |
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leased property begins; or |
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(B) in the event of an emergency, at least 30 days |
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before the date the construction, alteration, or repair of any |
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improvement to the leased property begins. |
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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. |