| 5 | 3 | | |
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| 6 | 4 | | |
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| 7 | 5 | | A BILL TO BE ENTITLED |
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| 8 | 6 | | AN ACT |
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| 9 | 7 | | relating to financing arrangements between political subdivisions |
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| 10 | 8 | | and private entities for the implementation of pay for success |
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| 11 | 9 | | initiatives. |
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| 12 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 11 | | SECTION 1. Chapter 140, Local Government Code, is amended |
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| 14 | 12 | | by adding Section 140.011 to read as follows: |
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| 15 | 13 | | Sec. 140.011. PRIVATE FINANCING ARRANGEMENTS FOR PAY FOR |
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| 16 | 14 | | SUCCESS INITIATIVES. (a) The governing body of a political |
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| 17 | 15 | | subdivision with the authority to issue general obligation or |
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| 18 | 16 | | revenue bonds may by order, ordinance, or similar measure enter |
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| 19 | 17 | | into a private financing arrangement for a program designed and |
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| 20 | 18 | | intended to address a problem facing the political subdivision. |
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| 21 | 19 | | (b) Under the financing arrangement: |
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| 22 | 20 | | (1) private investors provide capital for the program; |
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| 23 | 21 | | (2) a private entity enacts the program; |
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| 24 | 22 | | (3) an independent reviewer determines the success of |
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| 25 | 23 | | the program; and |
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| 26 | 24 | | (4) the political subdivision pays the initial capital |
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| 27 | 25 | | with interest to the private investors only if the independent |
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| 28 | 26 | | reviewer determines that the program is successful. |
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| 29 | 27 | | SECTION 2. This Act takes effect September 1, 2015. |
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