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.