Bill Text: TX SB1984 | 2023-2024 | 88th Legislature | Introduced

---

Bill Title: Relating to public-private partnerships for public and private facilities and infrastructure.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2023-04-13 - Left pending in committee [SB1984 Detail]

Download: Texas-2023-SB1984-Introduced.html

---

88R11360 YDB-F
By: Alvarado, Blanco S.B. No. 1984

A BILL TO BE ENTITLED
AN ACT
relating to public-private partnerships for public and private
facilities and infrastructure.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known as the Public-Private
Partnership Act.
SECTION 2. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2267A to read as follows:
CHAPTER 2267A. PUBLIC-PRIVATE PARTNERSHIPS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2267A.001. DEFINITIONS. In this chapter:
(1) "Definitive agreement" means a public-private
partnership agreement between a private entity and a governmental
entity that is executed in accordance with this chapter. The term
includes a development agreement, master lease, ground lease,
concession agreement, performance-based contract, and master
services agreement.
(2) "Governmental entity" means a governmental entity
to which this chapter applies under Section 2267A.002(a).
(3) "Interim agreement" means a provisional
public-private partnership agreement between a private entity and a
governmental entity that is executed in accordance with this
chapter.
(4) "Private entity" means an individual,
corporation, general partnership, limited liability company,
limited partnership, joint venture, business trust, public benefit
corporation, nonprofit entity, or other nongovernmental entity
that is authorized to conduct business in this state.
(5) "Public-private partnership" means a
collaboration between a private entity and a governmental entity to
plan, design, finance, acquire, construct, operate, or maintain a
qualifying project authorized under this chapter.
(6) "Qualifying project" means a project described by
Section 2267A.003.
Sec. 2267A.002. APPLICABILITY OF CHAPTER; EXEMPTIONS. (a)
Except as provided by Subsection (b), this chapter applies to:
(1) a state agency as defined by Section 2151.002;
(2) a local government or political subdivision of
this state, including:
(A) a county;
(B) a municipality;
(C) a public school district;
(D) a local government corporation;
(E) a public facilities corporation; and
(F) a special district or authority, including:
(i) a hospital district;
(ii) a defense base development authority
established under Chapter 379B, Local Government Code;
(iii) a conservation and reclamation
district; and
(iv) a river authority or another type of
water district;
(3) a public junior college as defined by Section
61.003, Education Code;
(4) a board of trustees for a port improvement or
facility that is governed by Chapter 54, Transportation Code; or
(5) another state or local governmental entity
authorized by state law to undertake a qualifying project.
(b) This chapter does not apply to:
(1) the Texas Department of Transportation regarding
a contract executed by the department or a project funded with money
from the state highway fund; or
(2) a regional tollway authority organized under
Chapter 366, Transportation Code.
Sec. 2267A.003. QUALIFYING PROJECTS. A governmental entity
may enter into a public-private partnership under this chapter to
accomplish:
(1) a public work, public improvement, or other
project or facility, with its related equipment and appurtenances,
that serves a public purpose of the governmental entity, regardless
of its public ownership, including:
(A) a public utility and related infrastructure,
including a road, bridge, multimodal transportation project,
right-of-way improvement, water and wastewater utility, stormwater
and flood management infrastructure, street lighting, and electric
and autonomous vehicle infrastructure;
(B) smart technology infrastructure and a
broadband or telecommunications facility;
(C) an electric transmission and generation
utility;
(D) a facility for commerce or other critical
infrastructure, including a ferry or mass transit facility and
related equipment, vehicle parking facility, airport or seaport
facility, rail facility and related equipment, fuel supply
facility, and oil or gas pipeline;
(E) civic infrastructure and related public
facilities, including a courthouse, justice facility,
administrative facility, workforce or affordable housing, first or
emergency response facility and related equipment, hospital,
nursing facility, civic center, park, public venue, recreational
facility, cultural facility, educational facility, public health
facility, laboratory, and research facility; and
(F) social infrastructure and a public facility
for entertainment, economic development, or promotion of the
hospitality and tourism industry, including an auditorium,
coliseum, stadium, theater, amphitheater, museum, conference and
convention facility, and convention center hotel; or
(2) a project or improvement, regardless of its public
ownership, that the governmental entity determines:
(A) promotes state or local economic development
or stimulates business and commercial activity within the
governmental entity's jurisdiction; or
(B) benefits the public through the use of public
property and other resources to generate income for the
governmental entity.
Sec. 2267A.004. DELIVERY METHODS FOR QUALIFYING PROJECTS.
A governmental entity may use any of the following methods for
delivery of a qualifying project through a public-private
partnership under this chapter:
(1) the design-build-finance-maintain method to
design, construct, finance, and maintain a qualifying project over
a contractually defined period;
(2) the design-build-operate method to design,
construct, and operate a qualifying project over a contractually
defined period;
(3) the design-build-finance-operate-maintain method
to design, construct, finance, operate, and maintain a qualifying
project over a contractually defined period; or
(4) the design-build-finance-transfer method to
design, construct, finance, and deliver a qualifying project.
Sec. 2267A.005. LOCATION OF QUALIFYING PROJECT. (a) A
political subdivision may not undertake a qualifying project at a
location outside of its boundaries or the limits of its
jurisdiction, except as provided by an interlocal agreement with
another governmental entity where the qualifying project will be
located.
(b) A local government corporation, public facilities
corporation, or other specially created corporation or district may
not undertake a qualifying project at a location outside of the
boundaries or the limits of the jurisdiction of its sponsoring
political subdivision, except as provided by an interlocal
agreement with another governmental entity where the qualifying
project will be located.
Sec. 2267A.006. CONFLICTS OF INTEREST. An employee of a
governmental entity or a person related to the employee within the
second degree by consanguinity or affinity, as determined under
Chapter 573, may not accept money, a financial benefit, or other
consideration from a private entity that has executed an interim
agreement or definitive agreement with the governmental entity
under this chapter.
Sec. 2267A.007. PARKLAND. This chapter may not be
construed as superseding any requirement or limitation relating to
the conversion or repurposing of public parkland as provided by the
Natural Resources Code.
Sec. 2267A.008. APPLICABILITY OF EMINENT DOMAIN LAW. This
chapter may not be construed to alter the eminent domain laws of
this state or grant the power of eminent domain to a person who is
not expressly granted that power under other state law.
SUBCHAPTER B. PUBLIC-PRIVATE PARTNERSHIPS
Sec. 2267A.051. PUBLIC-PRIVATE PARTNERSHIPS. (a) A
governmental entity may enter into a public-private partnership
under this chapter to plan, develop, redevelop, design, construct,
equip, finance, use, operate, or maintain a qualifying project
using a delivery method authorized under Section 2267A.004.
(b) A public-private partnership entered into under this
chapter must be evidenced by a definitive agreement.
(c) A governmental entity does not violate this chapter by
soliciting, procuring, or contracting for a project by another
means authorized under state law.
Sec. 2267A.052. COOPERATION BETWEEN GOVERNMENTAL ENTITIES.
Two or more governmental entities may enter into an interlocal
cooperation agreement to pursue a public-private partnership under
this chapter to plan, develop, redevelop, design, construct, equip,
finance, use, operate, or maintain a qualifying project using a
delivery method authorized under Section 2267A.004.
Sec. 2267A.053. RULES, POLICIES, GUIDELINES, AND
ASSISTANCE. (a) A governmental entity may adopt rules, policies,
and guidelines the entity considers necessary or desirable
governing the consideration, solicitation, evaluation, and
implementation of a public-private partnership under this chapter.
(b) A governmental entity may seek the assistance of the
center for alternative finance and procurement established under
Section 2152.110 regarding best practices, model guidelines,
procurement resources, and professional and advisory services for
public-private partnerships.
Sec. 2267A.054. PUBLIC-PRIVATE PARTNERSHIP ADVISORY
SERVICES. (a) A governmental entity may use professional
advisory, legal, financial, consulting, pre-design,
pre-development, brokerage, or other professional services in
considering, soliciting, evaluating, negotiating, or implementing
a public-private partnership under this chapter.
(b) A professional services contract for an amount
exceeding $150,000 must be procured in the manner established by
Section 2254.004 to the extent Chapter 2254 otherwise applies to
those services.
SUBCHAPTER C. SOLICITATION AND SELECTION OF PUBLIC-PRIVATE
PARTNERSHIP
Sec. 2267A.101. INDUCEMENT RESOLUTION OR ORDER. Before
issuing a request for qualifications or proposals for a
public-private partnership under this chapter, the governing body
of a governmental entity must adopt an inducement resolution or
similar order granting preliminary authorization to solicit
proposals for the public-private partnership.
Sec. 2267A.102. AUTHORITY TO SOLICIT PUBLIC-PRIVATE
PARTNERSHIP. A governmental entity may solicit proposals to enter
into a public-private partnership for a qualifying project by:
(1) issuing a single request for proposals and
concurrently evaluating with the submitted proposals the
qualifications of the private entities that submit the proposals;
or
(2) issuing an initial request for qualifications,
evaluating the qualifications of the private entities that submit
qualifications, and inviting the most qualified private entities to
submit proposals if the governmental entity proceeds with a request
for proposals.
Sec. 2267A.103. SOLICITATION REQUIREMENTS. A request for
qualifications or proposals for a public-private partnership under
this chapter must:
(1) state the request is for a public-private
partnership under this chapter;
(2) generally describe the qualifying project, the
public purpose or public benefit to be achieved through the
qualifying project, and the objectives and priorities of the
governmental entity in using a public-private partnership;
(3) identify the delivery method the governmental
entity prefers and whether the governmental entity will consider
alternate delivery methods;
(4) clearly describe the evaluation criteria for
submitted qualifications or proposals and the weighted value for
each criterion; and
(5) identify the process and schedule for the request
for qualifications or proposals and the place and delivery method
for submitting qualifications or proposals.
Sec. 2267A.104. EVALUATION CRITERIA. When establishing the
evaluation criteria and corresponding weighted values for a request
for qualifications or proposals, a governmental entity may consider
any factor not otherwise prohibited by law that the governmental
entity determines is relevant to achieving the public purposes,
objectives, and priorities of the governmental entity, including:
(1) the professional qualifications, experience, and
reputation of the private entity and the private entity's
employees;
(2) the plan of finance, including the total cost of
capital that accounts for both public and private sources of
funding;
(3) innovative design techniques, construction
methods, or cost-saving methods;
(4) quality of design and construction and project
delivery schedule;
(5) a private entity's ability to access federal money
and grants available for the qualifying project;
(6) lease revenue generation, revenue participation,
and total rate of return to the governmental entity;
(7) the operational capabilities, qualifications, and
experience of the private entity;
(8) operating and maintenance costs, useful life, and
the total life-cycle cost of the project;
(9) general business terms, risk allocation, and risk
mitigation methodologies;
(10) the project's environmental, social, cultural,
equitable, and community impacts, including impacts on properties
and residents surrounding the project location;
(11) job creation and the private entity's commitment
to employment of local residents and workforce training;
(12) the private entity's commitment to prevailing or
living wages, workplace safety standards, and workers' rights;
(13) the private entity's plans and commitments to
subcontract with historically small businesses, local businesses,
underutilized businesses, or otherwise disadvantaged businesses;
(14) financing or investment commitments from local
residents; and
(15) the private entity's community engagement plan
and strategy.
Sec. 2267A.105. NOTICE OF REQUEST FOR QUALIFICATIONS OR
PROPOSALS. (a) A governmental entity at a minimum shall provide
notice of a request for qualifications or proposals on the entity's
Internet website and in the procurement directory on the
comptroller's Internet website not later than the 30th day before
the last date for submission.
(b) The notice at a minimum must include:
(1) a brief description of the qualifying project and
services desired;
(2) the last date for submission; and
(3) the name and contact information of the individual
an interested private entity may contact to inquire about the
solicitation.
Sec. 2267A.106. EVALUATION AND SELECTION OF PROPOSALS. (a)
A governmental entity shall select the proposal the governmental
entity determines will provide the best overall value to the
governmental entity, considering the public purposes, public
benefits, objectives, and priorities of the governmental entity as
stated in the request for proposals.
(b) A governmental entity may reject all proposals if the
governmental entity determines none of the submitted proposals
demonstrate sufficient value to justify a public-private
partnership.
Sec. 2267A.107. NOTICE OF SELECTION OR NON-SELECTION. A
governmental entity shall notify each private entity that submits
qualifications or a proposal under this chapter of the private
entity's selection or non-selection.
Sec. 2267A.108. REQUEST FOR EVALUATION AND RANKING
DOCUMENTS. (a) A private entity that submits to a governmental
entity qualifications or a proposal for a public-private
partnership under this chapter may, after receiving notice required
under Section 2267A.107, submit a written request to the
governmental entity for the documents evaluating the private
entity's submission.
(b) Not later than the 30th day after the date a private
entity submits a request under Subsection (a), the governmental
entity shall deliver to the private entity the documents evaluating
the private entity's qualifications or proposal, including any
applicable ranking of the entity's qualifications or proposal.
SUBCHAPTER D. NEGOTIATIONS AND AGREEMENTS
Sec. 2267A.151. NEGOTIATIONS WITH PRIVATE ENTITY. (a) A
governmental entity may negotiate the terms of an interim agreement
or definitive agreement with the selected private entity following
the notice required under Section 2267A.107.
(b) If a governmental entity is unable to negotiate a
satisfactory agreement with the selected private entity, the
governmental entity may end negotiations with that private entity
and begin negotiations with the next highest ranking private entity
as listed in the ranking of proposals for the qualifying project.
Sec. 2267A.152. INTERIM AGREEMENT. (a) Before entering
into a definitive agreement with a selected private entity, the
governing body of a governmental entity may execute an interim
agreement with the private entity.
(b) An interim agreement may:
(1) authorize the selected private entity to begin
activities or provide services relating to the qualifying project,
including project planning and development, site due diligence,
design, engineering, environmental analysis and mitigation,
surveying, and economic and financial feasibility analysis;
(2) provide for compensation to be paid to the
selected private entity for goods or services provided to the
governmental entity before the definitive agreement is executed;
(3) establish for the definitive agreement the
preliminary terms, significant development points, processes, and
timing for negotiation; or
(4) include other terms or provisions governing any
aspect of qualifying project development that the governmental
entity and private entity consider appropriate.
(c) An interim agreement must:
(1) have a defined term, which may be subject to
renewal or extension; and
(2) expressly provide that the interim agreement will
be superseded by a definitive agreement.
Sec. 2267A.153. DEFINITIVE AGREEMENT. (a) If a
governmental entity proceeds with a public-private partnership
after selecting a proposal and completing negotiations with a
private entity, the governing body of a governmental entity shall
authorize the execution of a definitive agreement with the private
entity and any necessary ancillary agreements relating to the
qualifying project.
(b) A definitive agreement must include all the material
terms relating to the public-private partnership, including a
definitive scope of work and pricing methodology for the services
to be provided under the agreement.
(c) A definitive agreement must have a defined term, which
may be subject to renewal or extension.
Sec. 2267A.154. AFFILIATE OR SUBSIDIARY OF SELECTED PRIVATE
ENTITY. Notwithstanding any other provision of this chapter, a
governmental entity may enter into an interim agreement or a
definitive agreement with a private entity that is an affiliate or
subsidiary of the selected private entity if:
(1) the selected private entity retains a majority of
the voting interests of the affiliate or subsidiary;
(2) the selected private entity retains managerial
control over the business affairs of the affiliate or subsidiary;
and
(3) the governmental entity determines the
governmental entity will continue to benefit from the material
terms, conditions, and considerations presented in the selected
private entity's proposal.
SUBCHAPTER E. FINANCING FOR PUBLIC-PRIVATE PARTNERSHIPS;
PREVAILING WAGE
Sec. 2267A.201. GRANT OR COMMITMENT OF PUBLIC MONEY. (a)
Subject to Subsection (b), a governmental entity may grant public
money for a qualifying project or commit to payment of public money
in an interim agreement or definitive agreement.
(b) Before granting or committing public money for a period
that extends beyond a governmental entity's current budget year,
the governing body of the governmental entity must determine that:
(1) the grant or commitment of public money,
considering the collective benefits and other consideration
provided for in the interim agreement or definitive agreement,
serves a legitimate public purpose of the governmental entity and
will result in adequate consideration and benefits to the
governmental entity;
(2) the interim agreement or definitive agreement
contains or will contain sufficient safeguards to ensure the public
purposes of the governing body will continue to be satisfied
throughout the term of the agreement; and
(3) the interim agreement or definitive agreement
expressly provides that the payment of commitments for the project
beyond the current budget year is expressly conditioned on
continued:
(A) funding by the governing body; or
(B) for a state agency, appropriations by the
legislature.
Sec. 2267A.202. PRIVATE FINANCING. (a) A definitive
agreement may provide for private financing of part or all of a
qualifying project through one or more debt or equity financing
arrangements.
(b) Any private financing payable from or secured by a
private entity's right to receive public money or any other
contractual obligations of the governmental entity must expressly
provide that financing is not a debt or obligation of the
governmental entity or of this state.
(c) Private financing used in connection with a qualifying
project may not be guaranteed by the governmental entity or secured
by a pledge or lien on any public property or money of the
governmental entity or of this state.
(d) Private financing may be secured by a pledge or lien on a
borrower's leasehold or other possessory interest in public
property or a private entity's contractual right to receive public
money.
Sec. 2267A.203. PERFORMANCE AND PAYMENT BONDS. (a)
Section 2253.021 applies to the components of a qualifying project
that are financed wholly or partly by public money.
(b) Except as provided by Subsection (c), the amount of the
performance and payment bonds delivered to the governmental entity
must be based on the full value of the construction elements of the
components of the qualifying project described by Subsection (a)
and not on the total value of the definitive agreement.
(c) Except as otherwise provided by Subsection (d), a
governmental entity may accept a performance and payment bond for
less than full value if the governmental entity reasonably
determines the full value is not commercially available or
practical.
(d) A governmental entity may not accept a performance and
payment bond in an amount less than 50 percent of full value.
Sec. 2267A.204. PREVAILING WAGE. Chapter 2258 applies to a
prime contract for the construction of a qualifying project for a
governmental entity, but only for those components of a qualifying
project that are financed wholly or partly by public money.
SUBCHAPTER F. PUBLIC PROPERTY; STATE TAXES
Sec. 2267A.251. SALE OR CONVEYANCE OF PUBLIC PROPERTY. (a)
After obtaining a certified independent appraisal, a governmental
entity may sell, transfer, or otherwise convey its interests in
public land or real property for use in a qualifying project or as
consideration for a qualifying project.
(b) A governmental entity's interest in land or real
property may be sold or conveyed for less than fair market value if
the governing body of the governmental entity determines that the
conveyance will result in adequate consideration and benefits to
the governmental entity that are reasonably expected to be
commensurate with the property's current appraised value, after
considering retained repurchase options, possessory interests,
uses, or other property interests received in return, and all other
public benefits realized from the qualifying project.
Sec. 2267A.252. LEASE OF PUBLIC PROPERTY. (a) A
governmental entity may grant to a private entity for use in a
qualifying project a leasehold or other possessory interest in
public land or real property, including a ground lease, facility
lease, master lease, or a lease-leaseback transaction, and any
furnishings, fixtures, and equipment relating to the land or
property.
(b) A qualifying project improvement constructed on public
property and leased to a private entity as part of a qualifying
project reverts to the governmental entity on termination of the
lease, including any improvement installed during the term of the
lease.
Sec. 2267A.253. CONDOMINIUM OWNERSHIP. (a) A governmental
entity may submit its interests in public land to a condominium
declaration under Chapter 82, Property Code, in connection with a
qualifying project.
(b) A condominium unit conveyed by a governmental entity for
use in a qualifying project is subject to the conditions
established by Section 2267A.251.
Sec. 2267A.254. PRIVATE USE OF QUALIFYING PROJECT. A
qualifying project may include private commercial, residential,
retail, and other private uses on public land or real property that
the governmental entity determines:
(1) are necessary, desirable, or appurtenant to a
qualifying project's public purpose; or
(2) otherwise serve, promote, or advance the
legitimate public purposes of the governmental entity, including,
as applicable, the promotion of state or local economic
development.
Sec. 2267A.255. USE OF STATE PROPERTY. A qualifying
project located on real property belonging to this state for
purposes of Section 31.161, Natural Resources Code, is considered
to be for governmental purposes and a development plan is not
required for any part of the qualifying project.
Sec. 2267A.256. PROPERTY TAX. (a) A portion of a
qualifying project is property used for public purposes within the
meaning of Section 11.11, Tax Code, and exempt from taxation if the
portion is for:
(1) the primary use of the governmental entity or a
combination of governmental entities under an interlocal
agreement;
(2) general public use; or
(3) the support, maintenance, and benefit of the
governmental entity, a combination of governmental entities under
an interlocal agreement, or the general public.
(b) An appraisal district shall value the interest in a
portion of a qualifying project that is a possessory interest in
public property and that is required to be listed under Section
25.07, Tax Code, after considering the legal restrictions,
reservations, and limitations on use of that interest.
(c) A qualifying project undertaken by a local government
corporation, public facilities corporation, or other specially
created corporation or partnership is not exempt from property tax
unless the exemption is approved by the governing body of its
sponsoring political subdivision.
Sec. 2267A.257. STATE SALES AND USE TAX. An improvement to
real property or a component of a qualifying project, including
fixtures, furniture, equipment, and supplies used in maintenance or
operations encompassed in the scope of a definitive agreement, that
a private entity purchases is exempt from state sales and use tax
under Section 151.311, Tax Code, if the improvement or component is
purchased for the primary use and benefit of a governmental entity.
SECTION 3. Section 552.153, Government Code, is amended to
read as follows:
Sec. 552.153. PROPRIETARY RECORDS AND TRADE SECRETS
INVOLVED IN CERTAIN PARTNERSHIPS. (a) In this section,
"definitive ["affected jurisdiction," "comprehensive] agreement,"
"governmental entity," ["contracting person,"] "interim
agreement," "private entity," and "qualifying project" [project,"
and "responsible governmental entity"] have the meanings assigned
those terms by Section 2267A.001 [2267.001].
(b) Information in the custody of a [responsible]
governmental entity that relates to a proposal for a qualifying
project authorized under Chapter 2267A [2267] is excepted from the
requirements of Section 552.021 if:
(1) the information consists of memoranda, staff
evaluations, or other records prepared by the [responsible]
governmental entity, its staff, outside advisors, or consultants
exclusively for the evaluation and negotiation of proposals filed
under Chapter 2267A [2267] for which:
(A) disclosure to the public before or after the
execution of an interim or definitive [comprehensive] agreement
would adversely affect the financial interest or bargaining
position of the [responsible] governmental entity; and
(B) the basis for the determination under
Paragraph (A) is documented in writing by the [responsible]
governmental entity; or
(2) the records are provided by a private entity
[proposer] to a [responsible] governmental entity [or affected
jurisdiction] under Chapter 2267A [2267] and contain:
(A) trade secrets of the private entity
[proposer];
(B) financial records of the private entity
[proposer], including balance sheets and financial statements,
that are not generally available to the public through regulatory
disclosure or other means; or
(C) work product related to a competitive bid or
proposal submitted by the private entity [proposer] that, if made
public before the execution of an interim or definitive
[comprehensive] agreement, would provide a competing private
entity [proposer] an unjust advantage or adversely affect the
financial interest or bargaining position of the [responsible]
governmental entity or the private entity [proposer].
(c) Except as specifically provided by Subsection (b), this
section does not authorize the withholding of information
concerning:
(1) the terms of any interim or definitive
[comprehensive] agreement, service contract, lease, partnership,
or agreement of any kind entered into by the [responsible]
governmental entity and the contracting private entity [person] or
the terms of any financing arrangement that involves the use of any
public money; or
(2) the performance of any person developing or
operating a qualifying project under Chapter 2267A [2267].
[(d) In this section, "proposer" has the meaning assigned by
Section 2267.001.]
SECTION 4. Section 2152.104(e), Government Code, is amended
to read as follows:
(e) The commission shall provide professional service staff
and the expertise of financial, technical, and other necessary
advisors and consultants, authorized under Section 2152.111
[2267.053(d)], to support the center for alternative finance and
procurement [Partnership Advisory Commission] in its review and
evaluation of qualifying project proposals.
SECTION 5. Section 2152.110, Government Code, is amended to
read as follows:
Sec. 2152.110. CENTER FOR ALTERNATIVE FINANCE AND
PROCUREMENT. The commission shall establish the center for
alternative finance and procurement to consult with governmental
entities regarding best practices for procurement and the financing
of qualifying projects and to assist governmental entities in the
receipt of proposals, negotiation of interim and definitive
[comprehensive] agreements, and management of qualifying projects
under Chapter 2267A [Chapters 2267 and 2268].
SECTION 6. Subchapter C, Chapter 2152, Government Code, is
amended by adding Section 2152.111 to read as follows:
Sec. 2152.111. PROFESSIONAL AND CONSULTING SERVICES. (a)
The center for alternative finance and procurement established
under Section 2152.110 may retain one or more providers of
professional or non-professional services, or a group or
association of providers, in accordance with Chapter 2254 to
provide the services for qualifying projects under Chapter 2267A.
(b) A governmental entity to which Chapter 2267A applies may
use the professional or non-professional services of a provider of
services retained by the center for alternative finance and
procurement for purposes of considering, soliciting, evaluating,
negotiating, and administering a public-private partnership under
Chapter 2267A, and those services must be provided on the same terms
as agreed on by the provider and the center.
(c) The center for alternative finance and procurement may
charge a reasonable fee to the governmental entity for the services
available to the governmental entity related to a qualifying
project. The fee may not exceed an amount of $5,000 or 10 percent of
the contract value of the professional services provided to the
governmental entity.
SECTION 7. Section 2165.259(d), Government Code, is amended
to read as follows:
(d) The commission may enter into a public-private
partnership in accordance with Chapter 2267A to develop or operate
a qualifying project, as that term is defined by Section 2267A.001
[2267.001], in the Capitol Complex if:
(1) the legislature by general law specifically
authorizes the project; and
(2) before the commission enters into a definitive
[comprehensive] agreement for the project, the legislature
individually approves the project [under Section 2268.058].
SECTION 8. Section 379B.0012(b), Local Government Code, is
amended to read as follows:
(b) Chapters 2267A [2267] and 2269, Government Code, do not
apply to a qualifying project of an authority.
SECTION 9. Section 3501.005(b), Special District Local Laws
Code, is amended to read as follows:
(b) Chapters 2267A [2267] and 2269, Government Code, do not
apply to a qualifying project of the authority.
SECTION 10. Section 172.211(b), Transportation Code, is
amended to read as follows:
(b) A county acting through the commissioners court or a
local government corporation may adopt an order that authorizes the
county and a navigation district located wholly or partly in the
county to:
(1) develop rail facilities as a qualifying project
under Chapter 2267A [2267], Government Code; and
(2) issue bonds for rail facilities secured by a
pledge of the revenues of the facilities, including contract
revenue, grant revenue, or other revenue collected in connection
with the facilities.
SECTION 11. The following laws are repealed:
(1) Subchapter H, Chapter 2165, Government Code;
(2) Section 2166.106, Government Code; and
(3) Chapters 2267 and 2268, Government Code.
SECTION 12. Chapter 2267A, Government Code, as added by
this Act, applies only to a contract for a public-private
partnership entered into on or after the effective date of this Act.
A contract for a public-private partnership entered into under
Chapters 2267 and 2268, Government Code, before the effective date
of this Act, is governed by the law in effect on the date the
contract was entered into, and the former law is continued in effect
for that purpose.
SECTION 13. This Act takes effect September 1, 2023.