HB5435 - Relating to required lease terms for public property leased to a nongovernmental entity.

      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