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89(R) HB 5435 - Enrolled version - Bill Text
H.B. No. 5435
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. Section 2252.909, Government Code, as added by
Chapter 1008 (H.B. 2518), Acts of the 88th Legislature, Regular
Session, 2023, is amended by amending Subsection (b) and adding
Subsection (b-1) to read as follows:
(b)
Except as provided by Subsection (b-1), a
[
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) execute a payment bond that conforms to
Subchapter I, Chapter 53, Property Code; and
(B) 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 at least 90 days before
the date the construction, alteration, or repair of any improvement
to the leased property begins.
(b-1)
The requirement that a lease must contain a term
requiring notice of commencement to a governmental entity under
Subsection (b)(2) does not apply to a lease between an institution
of higher education, as defined by Section 61.003, Education Code,
and another person regarding public property.
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.
______________________________
______________________________
President of the Senate
Speaker of the House
I certify that H.B. No. 5435 was passed by the House on May 8,
2025, by the following vote: Yeas 145, Nays 1, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 5435 was passed by the Senate on May
28, 2025, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor