Texas 2023 88th Regular

Texas Senate Bill SB1984 Introduced / Bill

Filed 03/09/2023

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                    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.