Monitoring the Session

HB 5435

bill changes lease terms for public property rented privately

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Rep. Keith BellRHouse 4

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to required lease terms for public property leased to a nongovernmental entity.

Caption from analyzed text · version I.

Summary

New required terms when government rents out public property.

The bill changes what must go into leases when a Texas government body rents out public property to a private party. The private tenant must give the government body notice at least 90 days before any construction, alteration, or repair on the leased property starts, or at least 30 days before in an emergency, which the bill defines as a sudden, urgent event that needs immediate action. The existing bond requirements for contractors stay in place, and the new notice timing applies only to leases signed on or after September 1, 2025.

Receipt

The receipt

89R-HB5435 · 2025-03-14

SOLD BY

Rep. Keith BellRHouse 4

ITEM

relating to required lease terms for public property leased to a nongovernmental entity.

WHAT IT DOES

New required terms when government rents out public property.

The bill changes what must go into leases when a Texas government body rents out public property to a private party. The private tenant must give the government body notice at least 90 days before any construction, alteration, or repair on the leased property starts, or at least 30 days before in an emergency, which the bill defines as a sudden, urgent event that needs immediate action. The existing bond requirements for contractors stay in place, and the new notice timing applies only to leases signed on or after September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to State Affairs
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in formal meeting
  9. Committee substitute considered in committee
  10. Reported favorably as substituted
  11. Comte report filed with Committee Coordinator
  12. Committee report distributed
  13. Committee report sent to Calendars
  14. Considered in Calendars
  15. Placed on General State Calendar
  16. Read 2nd time
  17. Passed to engrossment
  18. Record vote RV#1689
  19. Statement(s) of vote recorded in Journal
  20. Read 3rd time
  21. Passed
  22. Record vote RV#1800
  23. Statement(s) of vote recorded in Journal
  24. Reported engrossed
  25. Received from the House
  26. Read first time
  27. Referred to Business & Commerce
  28. Posting rule suspended
  29. Scheduled for public hearing on . . .
  30. Considered in public hearing
  31. Left pending in committee
  32. Reported favorably w/o amendments
  33. Considered in public hearing
  34. Vote taken in committee
  35. Recommended for local & uncontested calendar
  36. Committee report printed and distributed
  37. Placed on intent calendar
  38. Rules suspended-Regular order of business
  39. Read 2nd time & passed to 3rd reading
  40. Vote recorded in Journal
  41. Three day rule suspended
  42. Record vote
  43. Read 3rd time
  44. Passed
  45. Record vote
  46. Senate passage reported
  47. Reported enrolled
  48. Signed in the House
  49. Signed in the Senate
  50. Sent to the Governor
  51. Signed by the Governor
  52. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 145 yea · 1 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · May 8, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 28, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Keith Bell

Donors

Josh Stevens$50,000Carla Enna$50,000Texans for Lawsuit Reform PAC$35K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 31, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Josh Stevens$50,000.00
Carla Enna$50,000.00
Texans for Lawsuit Reform PAC$35,000.00

Texans for Lawsuit Reform PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 30, 2025 to Sep 4, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007782, 101027129, 101068150.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 30, 2025 to Sep 4, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007782, 101027129, 101068150.

Votes5

Senate May 28, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Nichols moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 5435 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0. The bill was read third time and was passed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 28, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Nichols moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 5435 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 28, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

The bill was read second time and was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 8, 2025

Yea
145
Nay
1
Present, not voting
2
Absent
2
Excused
0
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1800

HB 5435 was passed by (Record 1800): 145 Yeas, 1 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 145 (published)
  • Nay: 1 (published)
  • Present, not voting: 2 (published)
  • Absent: 2 (derived from named list)
  • Excused: 0 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 7, 2025

Yea
136
Nay
4
Present, not voting
2
Absent
5
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1689

CSHB 5435 was passed to engrossment by (Record 1689): 136 Yeas, 4 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 136 (published)
  • Nay: 4 (published)
  • Present, not voting: 2 (published)
  • Absent: 5 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses2
For
1
Against
0
On
1
Names

For

  • City of San Antonio1 registration

On

  • The Texas A&M University System1 registration
Sources

2 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 22, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 14, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Sponsors
Robert NicholsRSenate 3

House committee · State Affairs · Committee vote 14 aye, 0 nay, 1 absent · Out of committee

Senate committee · Business & Commerce · Committee vote 11 aye, 0 nay · Out of committee

Subjects

Property Interests--Landlord & Tenant

Public Lands, Buildings & Resources

State Agencies, Boards & Commissions

Text

The text as introduced · 332 words

89R14671 GP-D

By: Bell of Kaufman
H.B. No. 5435

A BILL TO BE ENTITLED

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. 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:

(a) In this section :

(1) "Emergency" means a sudden, urgent occurrence that

requires immediate action.

(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

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) 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,

and contract documents; and

(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

leased property begins ; or

(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

effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.