Texas 2023 - 88th Regular

Texas Senate Bill SB1984 Compare Versions

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1	1	88R11360 YDB-F
2	2	By: Alvarado, Blanco S.B. No. 1984
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to public-private partnerships for public and private
8	8	facilities and infrastructure.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. This Act shall be known as the Public-Private
11	11	Partnership Act.
12	12	SECTION 2. Subtitle F, Title 10, Government Code, is
13	13	amended by adding Chapter 2267A to read as follows:
14	14	CHAPTER 2267A. PUBLIC-PRIVATE PARTNERSHIPS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 2267A.001. DEFINITIONS. In this chapter:
17	17	(1) "Definitive agreement" means a public-private
18	18	partnership agreement between a private entity and a governmental
19	19	entity that is executed in accordance with this chapter. The term
20	20	includes a development agreement, master lease, ground lease,
21	21	concession agreement, performance-based contract, and master
22	22	services agreement.
23	23	(2) "Governmental entity" means a governmental entity
24	24	to which this chapter applies under Section 2267A.002(a).
25	25	(3) "Interim agreement" means a provisional
26	26	public-private partnership agreement between a private entity and a
27	27	governmental entity that is executed in accordance with this
28	28	chapter.
29	29	(4) "Private entity" means an individual,
30	30	corporation, general partnership, limited liability company,
31	31	limited partnership, joint venture, business trust, public benefit
32	32	corporation, nonprofit entity, or other nongovernmental entity
33	33	that is authorized to conduct business in this state.
34	34	(5) "Public-private partnership" means a
35	35	collaboration between a private entity and a governmental entity to
36	36	plan, design, finance, acquire, construct, operate, or maintain a
37	37	qualifying project authorized under this chapter.
38	38	(6) "Qualifying project" means a project described by
39	39	Section 2267A.003.
40	40	Sec. 2267A.002. APPLICABILITY OF CHAPTER; EXEMPTIONS. (a)
41	41	Except as provided by Subsection (b), this chapter applies to:
42	42	(1) a state agency as defined by Section 2151.002;
43	43	(2) a local government or political subdivision of
44	44	this state, including:
45	45	(A) a county;
46	46	(B) a municipality;
47	47	(C) a public school district;
48	48	(D) a local government corporation;
49	49	(E) a public facilities corporation; and
50	50	(F) a special district or authority, including:
51	51	(i) a hospital district;
52	52	(ii) a defense base development authority
53	53	established under Chapter 379B, Local Government Code;
54	54	(iii) a conservation and reclamation
55	55	district; and
56	56	(iv) a river authority or another type of
57	57	water district;
58	58	(3) a public junior college as defined by Section
59	59	61.003, Education Code;
60	60	(4) a board of trustees for a port improvement or
61	61	facility that is governed by Chapter 54, Transportation Code; or
62	62	(5) another state or local governmental entity
63	63	authorized by state law to undertake a qualifying project.
64	64	(b) This chapter does not apply to:
65	65	(1) the Texas Department of Transportation regarding
66	66	a contract executed by the department or a project funded with money
67	67	from the state highway fund; or
68	68	(2) a regional tollway authority organized under
69	69	Chapter 366, Transportation Code.
70	70	Sec. 2267A.003. QUALIFYING PROJECTS. A governmental entity
71	71	may enter into a public-private partnership under this chapter to
72	72	accomplish:
73	73	(1) a public work, public improvement, or other
74	74	project or facility, with its related equipment and appurtenances,
75	75	that serves a public purpose of the governmental entity, regardless
76	76	of its public ownership, including:
77	77	(A) a public utility and related infrastructure,
78	78	including a road, bridge, multimodal transportation project,
79	79	right-of-way improvement, water and wastewater utility, stormwater
80	80	and flood management infrastructure, street lighting, and electric
81	81	and autonomous vehicle infrastructure;
82	82	(B) smart technology infrastructure and a
83	83	broadband or telecommunications facility;
84	84	(C) an electric transmission and generation
85	85	utility;
86	86	(D) a facility for commerce or other critical
87	87	infrastructure, including a ferry or mass transit facility and
88	88	related equipment, vehicle parking facility, airport or seaport
89	89	facility, rail facility and related equipment, fuel supply
90	90	facility, and oil or gas pipeline;
91	91	(E) civic infrastructure and related public
92	92	facilities, including a courthouse, justice facility,
93	93	administrative facility, workforce or affordable housing, first or
94	94	emergency response facility and related equipment, hospital,
95	95	nursing facility, civic center, park, public venue, recreational
96	96	facility, cultural facility, educational facility, public health
97	97	facility, laboratory, and research facility; and
98	98	(F) social infrastructure and a public facility
99	99	for entertainment, economic development, or promotion of the
100	100	hospitality and tourism industry, including an auditorium,
101	101	coliseum, stadium, theater, amphitheater, museum, conference and
102	102	convention facility, and convention center hotel; or
103	103	(2) a project or improvement, regardless of its public
104	104	ownership, that the governmental entity determines:
105	105	(A) promotes state or local economic development
106	106	or stimulates business and commercial activity within the
107	107	governmental entity's jurisdiction; or
108	108	(B) benefits the public through the use of public
109	109	property and other resources to generate income for the
110	110	governmental entity.
111	111	Sec. 2267A.004. DELIVERY METHODS FOR QUALIFYING PROJECTS.
112	112	A governmental entity may use any of the following methods for
113	113	delivery of a qualifying project through a public-private
114	114	partnership under this chapter:
115	115	(1) the design-build-finance-maintain method to
116	116	design, construct, finance, and maintain a qualifying project over
117	117	a contractually defined period;
118	118	(2) the design-build-operate method to design,
119	119	construct, and operate a qualifying project over a contractually
120	120	defined period;
121	121	(3) the design-build-finance-operate-maintain method
122	122	to design, construct, finance, operate, and maintain a qualifying
123	123	project over a contractually defined period; or
124	124	(4) the design-build-finance-transfer method to
125	125	design, construct, finance, and deliver a qualifying project.
126	126	Sec. 2267A.005. LOCATION OF QUALIFYING PROJECT. (a) A
127	127	political subdivision may not undertake a qualifying project at a
128	128	location outside of its boundaries or the limits of its
129	129	jurisdiction, except as provided by an interlocal agreement with
130	130	another governmental entity where the qualifying project will be
131	131	located.
132	132	(b) A local government corporation, public facilities
133	133	corporation, or other specially created corporation or district may
134	134	not undertake a qualifying project at a location outside of the
135	135	boundaries or the limits of the jurisdiction of its sponsoring
136	136	political subdivision, except as provided by an interlocal
137	137	agreement with another governmental entity where the qualifying
138	138	project will be located.
139	139	Sec. 2267A.006. CONFLICTS OF INTEREST. An employee of a
140	140	governmental entity or a person related to the employee within the
141	141	second degree by consanguinity or affinity, as determined under
142	142	Chapter 573, may not accept money, a financial benefit, or other
143	143	consideration from a private entity that has executed an interim
144	144	agreement or definitive agreement with the governmental entity
145	145	under this chapter.
146	146	Sec. 2267A.007. PARKLAND. This chapter may not be
147	147	construed as superseding any requirement or limitation relating to
148	148	the conversion or repurposing of public parkland as provided by the
149	149	Natural Resources Code.
150	150	Sec. 2267A.008. APPLICABILITY OF EMINENT DOMAIN LAW. This
151	151	chapter may not be construed to alter the eminent domain laws of
152	152	this state or grant the power of eminent domain to a person who is
153	153	not expressly granted that power under other state law.
154	154	SUBCHAPTER B. PUBLIC-PRIVATE PARTNERSHIPS
155	155	Sec. 2267A.051. PUBLIC-PRIVATE PARTNERSHIPS. (a) A
156	156	governmental entity may enter into a public-private partnership
157	157	under this chapter to plan, develop, redevelop, design, construct,
158	158	equip, finance, use, operate, or maintain a qualifying project
159	159	using a delivery method authorized under Section 2267A.004.
160	160	(b) A public-private partnership entered into under this
161	161	chapter must be evidenced by a definitive agreement.
162	162	(c) A governmental entity does not violate this chapter by
163	163	soliciting, procuring, or contracting for a project by another
164	164	means authorized under state law.
165	165	Sec. 2267A.052. COOPERATION BETWEEN GOVERNMENTAL ENTITIES.
166	166	Two or more governmental entities may enter into an interlocal
167	167	cooperation agreement to pursue a public-private partnership under
168	168	this chapter to plan, develop, redevelop, design, construct, equip,
169	169	finance, use, operate, or maintain a qualifying project using a
170	170	delivery method authorized under Section 2267A.004.
171	171	Sec. 2267A.053. RULES, POLICIES, GUIDELINES, AND
172	172	ASSISTANCE. (a) A governmental entity may adopt rules, policies,
173	173	and guidelines the entity considers necessary or desirable
174	174	governing the consideration, solicitation, evaluation, and
175	175	implementation of a public-private partnership under this chapter.
176	176	(b) A governmental entity may seek the assistance of the
177	177	center for alternative finance and procurement established under
178	178	Section 2152.110 regarding best practices, model guidelines,
179	179	procurement resources, and professional and advisory services for
180	180	public-private partnerships.
181	181	Sec. 2267A.054. PUBLIC-PRIVATE PARTNERSHIP ADVISORY
182	182	SERVICES. (a) A governmental entity may use professional
183	183	advisory, legal, financial, consulting, pre-design,
184	184	pre-development, brokerage, or other professional services in
185	185	considering, soliciting, evaluating, negotiating, or implementing
186	186	a public-private partnership under this chapter.
187	187	(b) A professional services contract for an amount
188	188	exceeding $150,000 must be procured in the manner established by
189	189	Section 2254.004 to the extent Chapter 2254 otherwise applies to
190	190	those services.
191	191	SUBCHAPTER C. SOLICITATION AND SELECTION OF PUBLIC-PRIVATE
192	192	PARTNERSHIP
193	193	Sec. 2267A.101. INDUCEMENT RESOLUTION OR ORDER. Before
194	194	issuing a request for qualifications or proposals for a
195	195	public-private partnership under this chapter, the governing body
196	196	of a governmental entity must adopt an inducement resolution or
197	197	similar order granting preliminary authorization to solicit
198	198	proposals for the public-private partnership.
199	199	Sec. 2267A.102. AUTHORITY TO SOLICIT PUBLIC-PRIVATE
200	200	PARTNERSHIP. A governmental entity may solicit proposals to enter
201	201	into a public-private partnership for a qualifying project by:
202	202	(1) issuing a single request for proposals and
203	203	concurrently evaluating with the submitted proposals the
204	204	qualifications of the private entities that submit the proposals;
205	205	or
206	206	(2) issuing an initial request for qualifications,
207	207	evaluating the qualifications of the private entities that submit
208	208	qualifications, and inviting the most qualified private entities to
209	209	submit proposals if the governmental entity proceeds with a request
210	210	for proposals.
211	211	Sec. 2267A.103. SOLICITATION REQUIREMENTS. A request for
212	212	qualifications or proposals for a public-private partnership under
213	213	this chapter must:
214	214	(1) state the request is for a public-private
215	215	partnership under this chapter;
216	216	(2) generally describe the qualifying project, the
217	217	public purpose or public benefit to be achieved through the
218	218	qualifying project, and the objectives and priorities of the
219	219	governmental entity in using a public-private partnership;
220	220	(3) identify the delivery method the governmental
221	221	entity prefers and whether the governmental entity will consider
222	222	alternate delivery methods;
223	223	(4) clearly describe the evaluation criteria for
224	224	submitted qualifications or proposals and the weighted value for
225	225	each criterion; and
226	226	(5) identify the process and schedule for the request
227	227	for qualifications or proposals and the place and delivery method
228	228	for submitting qualifications or proposals.
229	229	Sec. 2267A.104. EVALUATION CRITERIA. When establishing the
230	230	evaluation criteria and corresponding weighted values for a request
231	231	for qualifications or proposals, a governmental entity may consider
232	232	any factor not otherwise prohibited by law that the governmental
233	233	entity determines is relevant to achieving the public purposes,
234	234	objectives, and priorities of the governmental entity, including:
235	235	(1) the professional qualifications, experience, and
236	236	reputation of the private entity and the private entity's
237	237	employees;
238	238	(2) the plan of finance, including the total cost of
239	239	capital that accounts for both public and private sources of
240	240	funding;
241	241	(3) innovative design techniques, construction
242	242	methods, or cost-saving methods;
243	243	(4) quality of design and construction and project
244	244	delivery schedule;
245	245	(5) a private entity's ability to access federal money
246	246	and grants available for the qualifying project;
247	247	(6) lease revenue generation, revenue participation,
248	248	and total rate of return to the governmental entity;
249	249	(7) the operational capabilities, qualifications, and
250	250	experience of the private entity;
251	251	(8) operating and maintenance costs, useful life, and
252	252	the total life-cycle cost of the project;
253	253	(9) general business terms, risk allocation, and risk
254	254	mitigation methodologies;
255	255	(10) the project's environmental, social, cultural,
256	256	equitable, and community impacts, including impacts on properties
257	257	and residents surrounding the project location;
258	258	(11) job creation and the private entity's commitment
259	259	to employment of local residents and workforce training;
260	260	(12) the private entity's commitment to prevailing or
261	261	living wages, workplace safety standards, and workers' rights;
262	262	(13) the private entity's plans and commitments to
263	263	subcontract with historically small businesses, local businesses,
264	264	underutilized businesses, or otherwise disadvantaged businesses;
265	265	(14) financing or investment commitments from local
266	266	residents; and
267	267	(15) the private entity's community engagement plan
268	268	and strategy.
269	269	Sec. 2267A.105. NOTICE OF REQUEST FOR QUALIFICATIONS OR
270	270	PROPOSALS. (a) A governmental entity at a minimum shall provide
271	271	notice of a request for qualifications or proposals on the entity's
272	272	Internet website and in the procurement directory on the
273	273	comptroller's Internet website not later than the 30th day before
274	274	the last date for submission.
275	275	(b) The notice at a minimum must include:
276	276	(1) a brief description of the qualifying project and
277	277	services desired;
278	278	(2) the last date for submission; and
279	279	(3) the name and contact information of the individual
280	280	an interested private entity may contact to inquire about the
281	281	solicitation.
282	282	Sec. 2267A.106. EVALUATION AND SELECTION OF PROPOSALS. (a)
283	283	A governmental entity shall select the proposal the governmental
284	284	entity determines will provide the best overall value to the
285	285	governmental entity, considering the public purposes, public
286	286	benefits, objectives, and priorities of the governmental entity as
287	287	stated in the request for proposals.
288	288	(b) A governmental entity may reject all proposals if the
289	289	governmental entity determines none of the submitted proposals
290	290	demonstrate sufficient value to justify a public-private
291	291	partnership.
292	292	Sec. 2267A.107. NOTICE OF SELECTION OR NON-SELECTION. A
293	293	governmental entity shall notify each private entity that submits
294	294	qualifications or a proposal under this chapter of the private
295	295	entity's selection or non-selection.
296	296	Sec. 2267A.108. REQUEST FOR EVALUATION AND RANKING
297	297	DOCUMENTS. (a) A private entity that submits to a governmental
298	298	entity qualifications or a proposal for a public-private
299	299	partnership under this chapter may, after receiving notice required
300	300	under Section 2267A.107, submit a written request to the
301	301	governmental entity for the documents evaluating the private
302	302	entity's submission.
303	303	(b) Not later than the 30th day after the date a private
304	304	entity submits a request under Subsection (a), the governmental
305	305	entity shall deliver to the private entity the documents evaluating
306	306	the private entity's qualifications or proposal, including any
307	307	applicable ranking of the entity's qualifications or proposal.
308	308	SUBCHAPTER D. NEGOTIATIONS AND AGREEMENTS
309	309	Sec. 2267A.151. NEGOTIATIONS WITH PRIVATE ENTITY. (a) A
310	310	governmental entity may negotiate the terms of an interim agreement
311	311	or definitive agreement with the selected private entity following
312	312	the notice required under Section 2267A.107.
313	313	(b) If a governmental entity is unable to negotiate a
314	314	satisfactory agreement with the selected private entity, the
315	315	governmental entity may end negotiations with that private entity
316	316	and begin negotiations with the next highest ranking private entity
317	317	as listed in the ranking of proposals for the qualifying project.
318	318	Sec. 2267A.152. INTERIM AGREEMENT. (a) Before entering
319	319	into a definitive agreement with a selected private entity, the
320	320	governing body of a governmental entity may execute an interim
321	321	agreement with the private entity.
322	322	(b) An interim agreement may:
323	323	(1) authorize the selected private entity to begin
324	324	activities or provide services relating to the qualifying project,
325	325	including project planning and development, site due diligence,
326	326	design, engineering, environmental analysis and mitigation,
327	327	surveying, and economic and financial feasibility analysis;
328	328	(2) provide for compensation to be paid to the
329	329	selected private entity for goods or services provided to the
330	330	governmental entity before the definitive agreement is executed;
331	331	(3) establish for the definitive agreement the
332	332	preliminary terms, significant development points, processes, and
333	333	timing for negotiation; or
334	334	(4) include other terms or provisions governing any
335	335	aspect of qualifying project development that the governmental
336	336	entity and private entity consider appropriate.
337	337	(c) An interim agreement must:
338	338	(1) have a defined term, which may be subject to
339	339	renewal or extension; and
340	340	(2) expressly provide that the interim agreement will
341	341	be superseded by a definitive agreement.
342	342	Sec. 2267A.153. DEFINITIVE AGREEMENT. (a) If a
343	343	governmental entity proceeds with a public-private partnership
344	344	after selecting a proposal and completing negotiations with a
345	345	private entity, the governing body of a governmental entity shall
346	346	authorize the execution of a definitive agreement with the private
347	347	entity and any necessary ancillary agreements relating to the
348	348	qualifying project.
349	349	(b) A definitive agreement must include all the material
350	350	terms relating to the public-private partnership, including a
351	351	definitive scope of work and pricing methodology for the services
352	352	to be provided under the agreement.
353	353	(c) A definitive agreement must have a defined term, which
354	354	may be subject to renewal or extension.
355	355	Sec. 2267A.154. AFFILIATE OR SUBSIDIARY OF SELECTED PRIVATE
356	356	ENTITY. Notwithstanding any other provision of this chapter, a
357	357	governmental entity may enter into an interim agreement or a
358	358	definitive agreement with a private entity that is an affiliate or
359	359	subsidiary of the selected private entity if:
360	360	(1) the selected private entity retains a majority of
361	361	the voting interests of the affiliate or subsidiary;
362	362	(2) the selected private entity retains managerial
363	363	control over the business affairs of the affiliate or subsidiary;
364	364	and
365	365	(3) the governmental entity determines the
366	366	governmental entity will continue to benefit from the material
367	367	terms, conditions, and considerations presented in the selected
368	368	private entity's proposal.
369	369	SUBCHAPTER E. FINANCING FOR PUBLIC-PRIVATE PARTNERSHIPS;
370	370	PREVAILING WAGE
371	371	Sec. 2267A.201. GRANT OR COMMITMENT OF PUBLIC MONEY. (a)
372	372	Subject to Subsection (b), a governmental entity may grant public
373	373	money for a qualifying project or commit to payment of public money
374	374	in an interim agreement or definitive agreement.
375	375	(b) Before granting or committing public money for a period
376	376	that extends beyond a governmental entity's current budget year,
377	377	the governing body of the governmental entity must determine that:
378	378	(1) the grant or commitment of public money,
379	379	considering the collective benefits and other consideration
380	380	provided for in the interim agreement or definitive agreement,
381	381	serves a legitimate public purpose of the governmental entity and
382	382	will result in adequate consideration and benefits to the
383	383	governmental entity;
384	384	(2) the interim agreement or definitive agreement
385	385	contains or will contain sufficient safeguards to ensure the public
386	386	purposes of the governing body will continue to be satisfied
387	387	throughout the term of the agreement; and
388	388	(3) the interim agreement or definitive agreement
389	389	expressly provides that the payment of commitments for the project
390	390	beyond the current budget year is expressly conditioned on
391	391	continued:
392	392	(A) funding by the governing body; or
393	393	(B) for a state agency, appropriations by the
394	394	legislature.
395	395	Sec. 2267A.202. PRIVATE FINANCING. (a) A definitive
396	396	agreement may provide for private financing of part or all of a
397	397	qualifying project through one or more debt or equity financing
398	398	arrangements.
399	399	(b) Any private financing payable from or secured by a
400	400	private entity's right to receive public money or any other
401	401	contractual obligations of the governmental entity must expressly
402	402	provide that financing is not a debt or obligation of the
403	403	governmental entity or of this state.
404	404	(c) Private financing used in connection with a qualifying
405	405	project may not be guaranteed by the governmental entity or secured
406	406	by a pledge or lien on any public property or money of the
407	407	governmental entity or of this state.
408	408	(d) Private financing may be secured by a pledge or lien on a
409	409	borrower's leasehold or other possessory interest in public
410	410	property or a private entity's contractual right to receive public
411	411	money.
412	412	Sec. 2267A.203. PERFORMANCE AND PAYMENT BONDS. (a)
413	413	Section 2253.021 applies to the components of a qualifying project
414	414	that are financed wholly or partly by public money.
415	415	(b) Except as provided by Subsection (c), the amount of the
416	416	performance and payment bonds delivered to the governmental entity
417	417	must be based on the full value of the construction elements of the
418	418	components of the qualifying project described by Subsection (a)
419	419	and not on the total value of the definitive agreement.
420	420	(c) Except as otherwise provided by Subsection (d), a
421	421	governmental entity may accept a performance and payment bond for
422	422	less than full value if the governmental entity reasonably
423	423	determines the full value is not commercially available or
424	424	practical.
425	425	(d) A governmental entity may not accept a performance and
426	426	payment bond in an amount less than 50 percent of full value.
427	427	Sec. 2267A.204. PREVAILING WAGE. Chapter 2258 applies to a
428	428	prime contract for the construction of a qualifying project for a
429	429	governmental entity, but only for those components of a qualifying
430	430	project that are financed wholly or partly by public money.
431	431	SUBCHAPTER F. PUBLIC PROPERTY; STATE TAXES
432	432	Sec. 2267A.251. SALE OR CONVEYANCE OF PUBLIC PROPERTY. (a)
433	433	After obtaining a certified independent appraisal, a governmental
434	434	entity may sell, transfer, or otherwise convey its interests in
435	435	public land or real property for use in a qualifying project or as
436	436	consideration for a qualifying project.
437	437	(b) A governmental entity's interest in land or real
438	438	property may be sold or conveyed for less than fair market value if
439	439	the governing body of the governmental entity determines that the
440	440	conveyance will result in adequate consideration and benefits to
441	441	the governmental entity that are reasonably expected to be
442	442	commensurate with the property's current appraised value, after
443	443	considering retained repurchase options, possessory interests,
444	444	uses, or other property interests received in return, and all other
445	445	public benefits realized from the qualifying project.
446	446	Sec. 2267A.252. LEASE OF PUBLIC PROPERTY. (a) A
447	447	governmental entity may grant to a private entity for use in a
448	448	qualifying project a leasehold or other possessory interest in
449	449	public land or real property, including a ground lease, facility
450	450	lease, master lease, or a lease-leaseback transaction, and any
451	451	furnishings, fixtures, and equipment relating to the land or
452	452	property.
453	453	(b) A qualifying project improvement constructed on public
454	454	property and leased to a private entity as part of a qualifying
455	455	project reverts to the governmental entity on termination of the
456	456	lease, including any improvement installed during the term of the
457	457	lease.
458	458	Sec. 2267A.253. CONDOMINIUM OWNERSHIP. (a) A governmental
459	459	entity may submit its interests in public land to a condominium
460	460	declaration under Chapter 82, Property Code, in connection with a
461	461	qualifying project.
462	462	(b) A condominium unit conveyed by a governmental entity for
463	463	use in a qualifying project is subject to the conditions
464	464	established by Section 2267A.251.
465	465	Sec. 2267A.254. PRIVATE USE OF QUALIFYING PROJECT. A
466	466	qualifying project may include private commercial, residential,
467	467	retail, and other private uses on public land or real property that
468	468	the governmental entity determines:
469	469	(1) are necessary, desirable, or appurtenant to a
470	470	qualifying project's public purpose; or
471	471	(2) otherwise serve, promote, or advance the
472	472	legitimate public purposes of the governmental entity, including,
473	473	as applicable, the promotion of state or local economic
474	474	development.
475	475	Sec. 2267A.255. USE OF STATE PROPERTY. A qualifying
476	476	project located on real property belonging to this state for
477	477	purposes of Section 31.161, Natural Resources Code, is considered
478	478	to be for governmental purposes and a development plan is not
479	479	required for any part of the qualifying project.
480	480	Sec. 2267A.256. PROPERTY TAX. (a) A portion of a
481	481	qualifying project is property used for public purposes within the
482	482	meaning of Section 11.11, Tax Code, and exempt from taxation if the
483	483	portion is for:
484	484	(1) the primary use of the governmental entity or a
485	485	combination of governmental entities under an interlocal
486	486	agreement;
487	487	(2) general public use; or
488	488	(3) the support, maintenance, and benefit of the
489	489	governmental entity, a combination of governmental entities under
490	490	an interlocal agreement, or the general public.
491	491	(b) An appraisal district shall value the interest in a
492	492	portion of a qualifying project that is a possessory interest in
493	493	public property and that is required to be listed under Section
494	494	25.07, Tax Code, after considering the legal restrictions,
495	495	reservations, and limitations on use of that interest.
496	496	(c) A qualifying project undertaken by a local government
497	497	corporation, public facilities corporation, or other specially
498	498	created corporation or partnership is not exempt from property tax
499	499	unless the exemption is approved by the governing body of its
500	500	sponsoring political subdivision.
501	501	Sec. 2267A.257. STATE SALES AND USE TAX. An improvement to
502	502	real property or a component of a qualifying project, including
503	503	fixtures, furniture, equipment, and supplies used in maintenance or
504	504	operations encompassed in the scope of a definitive agreement, that
505	505	a private entity purchases is exempt from state sales and use tax
506	506	under Section 151.311, Tax Code, if the improvement or component is
507	507	purchased for the primary use and benefit of a governmental entity.
508	508	SECTION 3. Section 552.153, Government Code, is amended to
509	509	read as follows:
510	510	Sec. 552.153. PROPRIETARY RECORDS AND TRADE SECRETS
511	511	INVOLVED IN CERTAIN PARTNERSHIPS. (a) In this section,
512	512	"definitive ["affected jurisdiction," "comprehensive] agreement,"
513	513	"governmental entity," ["contracting person,"] "interim
514	514	agreement," "private entity," and "qualifying project" [project,"
515	515	and "responsible governmental entity"] have the meanings assigned
516	516	those terms by Section 2267A.001 [2267.001].
517	517	(b) Information in the custody of a [responsible]
518	518	governmental entity that relates to a proposal for a qualifying
519	519	project authorized under Chapter 2267A [2267] is excepted from the
520	520	requirements of Section 552.021 if:
521	521	(1) the information consists of memoranda, staff
522	522	evaluations, or other records prepared by the [responsible]
523	523	governmental entity, its staff, outside advisors, or consultants
524	524	exclusively for the evaluation and negotiation of proposals filed
525	525	under Chapter 2267A [2267] for which:
526	526	(A) disclosure to the public before or after the
527	527	execution of an interim or definitive [comprehensive] agreement
528	528	would adversely affect the financial interest or bargaining
529	529	position of the [responsible] governmental entity; and
530	530	(B) the basis for the determination under
531	531	Paragraph (A) is documented in writing by the [responsible]
532	532	governmental entity; or
533	533	(2) the records are provided by a private entity
534	534	[proposer] to a [responsible] governmental entity [or affected
535	535	jurisdiction] under Chapter 2267A [2267] and contain:
536	536	(A) trade secrets of the private entity
537	537	[proposer];
538	538	(B) financial records of the private entity
539	539	[proposer], including balance sheets and financial statements,
540	540	that are not generally available to the public through regulatory
541	541	disclosure or other means; or
542	542	(C) work product related to a competitive bid or
543	543	proposal submitted by the private entity [proposer] that, if made
544	544	public before the execution of an interim or definitive
545	545	[comprehensive] agreement, would provide a competing private
546	546	entity [proposer] an unjust advantage or adversely affect the
547	547	financial interest or bargaining position of the [responsible]
548	548	governmental entity or the private entity [proposer].
549	549	(c) Except as specifically provided by Subsection (b), this
550	550	section does not authorize the withholding of information
551	551	concerning:
552	552	(1) the terms of any interim or definitive
553	553	[comprehensive] agreement, service contract, lease, partnership,
554	554	or agreement of any kind entered into by the [responsible]
555	555	governmental entity and the contracting private entity [person] or
556	556	the terms of any financing arrangement that involves the use of any
557	557	public money; or
558	558	(2) the performance of any person developing or
559	559	operating a qualifying project under Chapter 2267A [2267].
560	560	[(d) In this section, "proposer" has the meaning assigned by
561	561	Section 2267.001.]
562	562	SECTION 4. Section 2152.104(e), Government Code, is amended
563	563	to read as follows:
564	564	(e) The commission shall provide professional service staff
565	565	and the expertise of financial, technical, and other necessary
566	566	advisors and consultants, authorized under Section 2152.111
567	567	[2267.053(d)], to support the center for alternative finance and
568	568	procurement [Partnership Advisory Commission] in its review and
569	569	evaluation of qualifying project proposals.
570	570	SECTION 5. Section 2152.110, Government Code, is amended to
571	571	read as follows:
572	572	Sec. 2152.110. CENTER FOR ALTERNATIVE FINANCE AND
573	573	PROCUREMENT. The commission shall establish the center for
574	574	alternative finance and procurement to consult with governmental
575	575	entities regarding best practices for procurement and the financing
576	576	of qualifying projects and to assist governmental entities in the
577	577	receipt of proposals, negotiation of interim and definitive
578	578	[comprehensive] agreements, and management of qualifying projects
579	579	under Chapter 2267A [Chapters 2267 and 2268].
580	580	SECTION 6. Subchapter C, Chapter 2152, Government Code, is
581	581	amended by adding Section 2152.111 to read as follows:
582	582	Sec. 2152.111. PROFESSIONAL AND CONSULTING SERVICES. (a)
583	583	The center for alternative finance and procurement established
584	584	under Section 2152.110 may retain one or more providers of
585	585	professional or non-professional services, or a group or
586	586	association of providers, in accordance with Chapter 2254 to
587	587	provide the services for qualifying projects under Chapter 2267A.
588	588	(b) A governmental entity to which Chapter 2267A applies may
589	589	use the professional or non-professional services of a provider of
590	590	services retained by the center for alternative finance and
591	591	procurement for purposes of considering, soliciting, evaluating,
592	592	negotiating, and administering a public-private partnership under
593	593	Chapter 2267A, and those services must be provided on the same terms
594	594	as agreed on by the provider and the center.
595	595	(c) The center for alternative finance and procurement may
596	596	charge a reasonable fee to the governmental entity for the services
597	597	available to the governmental entity related to a qualifying
598	598	project. The fee may not exceed an amount of $5,000 or 10 percent of
599	599	the contract value of the professional services provided to the
600	600	governmental entity.
601	601	SECTION 7. Section 2165.259(d), Government Code, is amended
602	602	to read as follows:
603	603	(d) The commission may enter into a public-private
604	604	partnership in accordance with Chapter 2267A to develop or operate
605	605	a qualifying project, as that term is defined by Section 2267A.001
606	606	[2267.001], in the Capitol Complex if:
607	607	(1) the legislature by general law specifically
608	608	authorizes the project; and
609	609	(2) before the commission enters into a definitive
610	610	[comprehensive] agreement for the project, the legislature
611	611	individually approves the project [under Section 2268.058].
612	612	SECTION 8. Section 379B.0012(b), Local Government Code, is
613	613	amended to read as follows:
614	614	(b) Chapters 2267A [2267] and 2269, Government Code, do not
615	615	apply to a qualifying project of an authority.
616	616	SECTION 9. Section 3501.005(b), Special District Local Laws
617	617	Code, is amended to read as follows:
618	618	(b) Chapters 2267A [2267] and 2269, Government Code, do not
619	619	apply to a qualifying project of the authority.
620	620	SECTION 10. Section 172.211(b), Transportation Code, is
621	621	amended to read as follows:
622	622	(b) A county acting through the commissioners court or a
623	623	local government corporation may adopt an order that authorizes the
624	624	county and a navigation district located wholly or partly in the
625	625	county to:
626	626	(1) develop rail facilities as a qualifying project
627	627	under Chapter 2267A [2267], Government Code; and
628	628	(2) issue bonds for rail facilities secured by a
629	629	pledge of the revenues of the facilities, including contract
630	630	revenue, grant revenue, or other revenue collected in connection
631	631	with the facilities.
632	632	SECTION 11. The following laws are repealed:
633	633	(1) Subchapter H, Chapter 2165, Government Code;
634	634	(2) Section 2166.106, Government Code; and
635	635	(3) Chapters 2267 and 2268, Government Code.
636	636	SECTION 12. Chapter 2267A, Government Code, as added by
637	637	this Act, applies only to a contract for a public-private
638	638	partnership entered into on or after the effective date of this Act.
639	639	A contract for a public-private partnership entered into under
640	640	Chapters 2267 and 2268, Government Code, before the effective date
641	641	of this Act, is governed by the law in effect on the date the
642	642	contract was entered into, and the former law is continued in effect
643	643	for that purpose.
644	644	SECTION 13. This Act takes effect September 1, 2023.