Texas HB5435 amends lease terms for public property leased to a nongovernmental entity.

Texas HB5435 amends the Government Code to require that leases for public property to a nongovernmental entity include specific terms. These terms mandate that contractors for construction, alteration, or repair of improvements to the leased property must execute a payment bond and, if applicable, a performance bond. Additionally, the lessee must provide a notice of commencement to the governmental entity. These requirements apply to leases entered into after the effective date of the Act, which is September 1, 2025.

Texas HB5435 amends lease terms for public property leased to a nongovernmental entity.

Texas HB5435 amends the Government Code to require that leases for public property to a nongovernmental entity include specific terms. These terms mandate that contractors for construction, alteration, or repair of improvements to the leased property must execute a payment bond and, if applicable, a performance bond. Additionally, the lessee must provide a notice of commencement to the governmental entity. These requirements apply to leases entered into after the effective date of the Act, which is September 1, 2025.