HB 5435

relating to required lease terms for public property leased to a
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 2252.909(a) and (b), Government Code,
as added by Chapter 1008 (H.B. 2518), Acts of the 88th Legislature,
Regular Session, 2023, are amended to read as follows:
(1)  "Emergency" means a sudden, urgent occurrence that
(2)  "Governmental [,"governmental] entity" has the
meaning assigned by Section 2253.001.
(b)  A lease between a governmental entity and another person
regarding public property must contain lease terms requiring the
(1)  include in each contract for the construction,
alteration, or repair of an improvement to the leased property a
(A)  if the contract meets the description in
Section 2253.021(a)(2)(A) or (B), execute a payment bond that
conforms to Subchapter I, Chapter 53, Property Code; and
(B)  if the contract meets the description in
Section 2253.021(a)(1), 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,
(2)  provide to the governmental entity a notice of
commencement consistent with this section:
(A)  at least 90 days before the date the
construction, alteration, or repair of any improvement to the
(B)  in the event of an emergency, at least 30 days
before the date the construction, alteration, or repair of any
improvement to the leased property begins.
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
SECTION 3.  This Act takes effect September 1, 2025.