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

Contracts

• New Leases: Drafting teams must update lease templates for public university projects. Remove clauses requiring the "90-day Notice of Commencement" under Government Code Section 2252.909.
• Existing Leases: The law is not retroactive. If you are currently under a lease containing the 90-day notice requirement, you remain contractually bound to it. You must negotiate a lease amendment to utilize this new exemption for future construction phases.
• Construction Contracts: No change. You must continue to mandate that General Contractors provide payment and performance bonds as required by the underlying statute.

Hiring/Training

• Project Management: Update development schedules. Project Managers can now schedule ground-breaking immediately upon permit issuance and bond execution, eliminating the previous three-month statutory buffer.

Reporting & Record-Keeping

• Filing Elimination: You are no longer required to file the Notice of Commencement with the university administration.
• Retention: You must strictly maintain proof of Payment and Performance Bonds. In the absence of the 90-day notice, the university’s primary compliance check will be an audit of these bonds.

Fees & Costs

• Savings: Reduces project carrying costs by eliminating the mandatory 90-day idle period between lease execution/design finalization and construction start.