Bill Text: TX HB3920 | 2015-2016 | 84th Legislature | Engrossed
Bill Title: Relating to financing arrangements between political subdivisions and private entities for the implementation of pay for success initiatives.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2015-05-25 - Left pending in committee [HB3920 Detail]
Download: Texas-2015-HB3920-Engrossed.html
84R23562 SCL-D | ||
By: Guerra, Parker | H.B. No. 3920 |
|
||
|
||
relating to financing arrangements between political subdivisions | ||
and private entities for the implementation of pay for success | ||
initiatives. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 140, Local Government Code, is amended | ||
by adding Section 140.011 to read as follows: | ||
Sec. 140.011. PRIVATE FINANCING ARRANGEMENTS FOR PAY FOR | ||
SUCCESS INITIATIVES. (a) The governing body of a political | ||
subdivision with the authority to issue general obligation or | ||
revenue bonds may by order, ordinance, or similar measure enter | ||
into a private financing arrangement for a program designed and | ||
intended to address a problem facing the political subdivision. | ||
(b) Under the financing arrangement: | ||
(1) private investors provide capital for the program; | ||
(2) a private entity enacts the program; | ||
(3) an independent reviewer determines the success of | ||
the program; and | ||
(4) the political subdivision pays the initial capital | ||
with interest to the private investors only if the independent | ||
reviewer determines that the program is successful. | ||
SECTION 2. This Act takes effect September 1, 2015. |