By: Geren (Senate Sponsor - Eltife)	H.B. No. 2475
	(In the Senate - Received from the House May 18, 2015;
	May 18, 2015, read first time and referred to Committee on Business
	and Commerce; May 22, 2015, reported adversely, with favorable
	Committee Substitute by the following vote:  Yeas 6, Nays 0;
	May 22, 2015, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR H.B. No. 2475	By:  Eltife

	A BILL TO BE ENTITLED
	AN ACT
	relating to the establishment of the center for alternative finance
	and procurement within the Texas Facilities Commission and to
	public and private partnerships; authorizing a fee.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter C, Chapter 2152, Government Code, is
	amended by adding Section 2152.110 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 comprehensive
	agreements, and management of qualifying projects under Chapters
	2267 and 2268.
	SECTION 2.  Section 2267.001, Government Code, is amended by
	amending Subdivision (1-a) and adding Subdivision (1-b) to read as
	follows:
	(1-a)  "Center" means the center for alternative
	finance and procurement established under Section 2152.110 by the
	Texas Facilities Commission.
	(1-b)  "Commission" means the Partnership Advisory
	Commission established under Chapter 2268.
	SECTION 3.  Section 2267.051, Government Code, is amended to
	read as follows:
	Sec. 2267.051.  APPROVAL REQUIRED[; SUBMISSION OF PROPOSAL
	FOR QUALIFYING PROJECT]. [(a)]  A person may not develop or operate
	a qualifying project unless the person obtains the approval of and
	contracts with the responsible governmental entity under this
	chapter. [The person may initiate the approval process by
	submitting a proposal requesting approval under Section
	2267.053(a), or the responsible governmental entity may request
	proposals or invite bids under Section 2267.053(b).
	[(b)     A person submitting a proposal requesting approval of a
	qualifying project shall specifically and conceptually identify
	any facility, building, infrastructure, or improvement included in
	the proposal as a part of the qualifying project.
	[(c)     On receipt of a proposal submitted by a person
	initiating the approval process under Section 2267.053(a), the
	responsible governmental entity shall determine whether to accept
	the proposal for consideration in accordance with Sections 2267.052
	and 2267.065 and the guidelines adopted under those sections. A
	responsible governmental entity that determines not to accept the
	proposal for consideration shall return the proposal, all fees, and
	the accompanying documentation to the person submitting the
	proposal.
	[(d)     The responsible governmental entity may at any time
	reject a proposal initiated by a person under Section 2267.053(a).]
	SECTION 4.  Sections 2267.052(b), (c), and (c-1), Government
	Code, are amended to read as follows:
	(b)  The guidelines for a responsible governmental entity
	described by Section 2267.001(5)(A) must:
	(1)  require the responsible governmental entity to:
	(A)  make a representative of the entity available
	to meet with persons who are considering submitting a proposal; and
	(B)  provide notice of the representative's
	availability;
	(2)  provide reasonable criteria for choosing among
	competing proposals;
	(3)  contain suggested timelines for selecting
	proposals and negotiating an interim or comprehensive agreement;
	(4)  allow the responsible governmental entity to
	accelerate the selection, review, and documentation timelines for
	proposals involving a qualifying project considered a priority by
	the entity;
	(5)  include financial review and analysis procedures
	that at a minimum consist of:
	(A)  a cost-benefit analysis;
	(B)  an assessment of opportunity cost;
	(C)  consideration of the degree to which
	functionality and services similar to the functionality and
	services to be provided by the proposed project are already
	available in the private market; and
	(D)  consideration of the results of all studies
	and analyses related to the proposed qualifying project;
	(6)  allow the responsible governmental entity to
	consider the nonfinancial benefits of a proposed qualifying
	project;
	(7)  ensure that the governmental entity, for a
	proposed project to improve real property, evaluates design
	quality, life-cycle costs, and the proposed project's relationship
	to any relevant comprehensive planning or zoning requirements;
	(8)  include criteria for:
	(A)  the qualifying project, including the scope,
	costs, and duration of the project and the involvement or impact of
	the project on multiple public entities;
	(B)  the creation of and the responsibilities of
	an oversight committee, with members representing the responsible
	governmental entity, that acts as an advisory committee to review
	the terms of any proposed interim or comprehensive agreement; and
	(C)  the center's role in the review, analysis, or
	evaluation of the qualifying project [compliance with the
	requirements of Chapter 2268];
	(9)  require the responsible governmental entity to
	analyze the adequacy of the information to be released by the entity
	when seeking competing proposals and require that the entity
	provide more detailed information, if the entity determines
	necessary, to encourage competition, subject to Section
	2267.053(g); and
	(10)  establish criteria, key decision points, and
	approvals required to ensure that the responsible governmental
	entity considers the extent of competition before selecting
	proposals and negotiating an interim or comprehensive agreement[;
	and
	[(11)     require the posting and publishing of public
	notice of a proposal requesting approval of a qualifying project,
	including:
	[(A)     specific information and documentation
	regarding the nature, timing, and scope of the qualifying project,
	as required under Section 2267.053(a);
	[(B)     a reasonable period, as determined by the
	responsible governmental entity, of not less than 45 days or more
	than 180 days, or a longer period specified by the governing body of
	the responsible governmental entity to accommodate a large-scale
	project, to encourage competition and partnerships with private
	entities and other persons in accordance with the goals of this
	chapter, during which the responsible governmental entity must
	accept submission of competing proposals for the qualifying
	project; and
	[(C)     a requirement for advertising the notice on
	the governmental entity's Internet website and on TexasOnline or
	the state's official Internet website].
	(c)  The guidelines of a responsible governmental entity
	described by Section 2267.001(5)(B) must include:
	(1)  the provisions required under Subsection (b); and
	(2)  a requirement that the governmental entity engage
	the services of qualified professionals, including an architect,
	professional engineer, or registered municipal advisor [certified
	public accountant], not otherwise employed by the governmental
	entity, or the center to provide independent analyses regarding the
	specifics, advantages, disadvantages, and long-term and short-term
	costs of [any proposal requesting approval of] a qualifying project
	unless the governing body of the governmental entity determines
	that the analysis [of the proposal] is to be performed by similarly
	qualified employees of the governmental entity.
	(c-1)  For a proposal with an estimated cost of $5 million or
	more for [the] construction or renovation of a qualifying
	[structure or] project, the analysis conducted under Subsection
	(c)(2) must include review [of the proposal] by an architect, a
	professional engineer, and a registered municipal advisor
	[certified public accountant] not otherwise employed by the
	governmental entity.
	SECTION 5.  Section 2267.053(d), Government Code, is amended
	to read as follows:
	(d)  The responsible governmental entity may charge a
	reasonable fee to cover the costs of processing, reviewing, and
	evaluating the proposal, including reasonable legal fees, [and]
	fees for financial and[,] technical[, and other necessary] advisors
	or consultants, and fees for the center's review or consultation.
	SECTION 6.  Section 2267.058(g), Government Code, is amended
	to read as follows:
	(g)  The comprehensive agreement must provide that a
	security document or other instrument purporting to mortgage,
	pledge, encumber, or create a lien, charge, or security interest on
	or against the contracting party's interest may not extend to or
	affect the fee simple interest of the state in the qualifying
	project or the state's rights or interests under the comprehensive
	agreement. Any holder of debt shall acknowledge that the mortgage,
	pledge, or encumbrance or a lien, charge, or security interest on or
	against the contracting party's interest is subordinate to the fee
	simple interest of the state in the qualifying project [and the
	state's rights or interests under the comprehensive agreement].
	SECTION 7.  Section 2267.065(b), Government Code, is amended
	to read as follows:
	(b)  A responsible governmental entity may enter into a
	comprehensive agreement only in accordance with guidelines that
	require the contracting person to design and construct the
	qualifying project in accordance with procedures that do not
	materially conflict with those specified in:
	(1)  Subchapter G, Chapter 2269, for facilities
	projects described by Section 2269.302 [2166.2531]; or
	(2)  Subchapter H, Chapter 2269 [Section 44.036,
	Education Code;
	[(3)  Section 51.780, Education Code;
	[(4)  Section 271.119, Local Government Code; or
	[(5)     Subchapter J, Chapter 271, Local Government
	Code], for civil works projects as defined by Section 2269.351
	[271.181(2), Local Government Code].
	SECTION 8.  Section 2267.066(a), Government Code, is amended
	to read as follows:
	(a)  Not later than the 10th day after the date a responsible
	governmental entity accepts a proposal submitted in accordance with
	Section 2267.053(b) [2267.053(a) or (b)], the responsible
	governmental entity shall provide notice of the proposal as
	follows:
	(1)  for a responsible governmental entity described by
	Section 2267.001(5)(A), by posting the proposal on the entity's
	Internet website; and
	(2)  for a responsible governmental entity described by
	Section 2267.001(5)(B), by:
	(A)  posting a copy of the proposal on the
	entity's Internet website; or
	(B)  publishing in a newspaper of general
	circulation in the area in which the qualifying project is to be
	performed a summary of the proposal and the location where copies of
	the proposal are available for public inspection.
	SECTION 9.  Section 2268.001, Government Code, is amended by
	amending Subdivision (1) and adding Subdivision (1-a) to read as
	follows:
	(1)  "Center" means the center for alternative finance
	and procurement established under Section 2152.110 by the Texas
	Facilities Commission.
	(1-a)  "Commission" means the Partnership Advisory
	Commission.
	SECTION 10.  Section 2268.056(d), Government Code, is
	amended to read as follows:
	(d)  The center [Texas Facilities Commission], using the
	qualifying project fees authorized under Section 2165.353, shall
	provide, on a cost recovery basis, professional services [of its
	architectural, engineering, and real estate staff and the
	expertise] of financial, technical, and other necessary advisors
	and consultants, authorized under Section 2267.053(d), as
	necessary to support the Partnership Advisory Commission in its
	review and evaluation of proposals, including financial and risk
	allocation analysis and ongoing contract performance monitoring of
	qualifying projects.  The center [Texas Facilities Commission]
	shall assign staff and contracted advisors and consultants
	necessary to perform the duties required by this subsection.
	SECTION 11.  Section 2268.059, Government Code, is amended
	to read as follows:
	Sec. 2268.059.  CONFIDENTIALITY OF CERTAIN RECORDS
	SUBMITTED TO COMMISSION.  Records and information afforded
	protection under Section 552.153 that are provided by a responsible
	governmental entity to the commission and the presiding officer of
	the House Appropriations Committee and of the Senate Finance
	Committee, or their designees, shall continue to be protected from
	disclosure when in the possession of the commission and the
	presiding officers or their designees.
	SECTION 12.  The following provisions of the Government Code
	are repealed:
	(1)  Section 2267.002(e); and
	(2)  Sections 2267.053(a) and (a-1).
	SECTION 13.  As soon as practicable after the effective date
	of this Act, the Texas Facilities Commission shall adopt the rules
	necessary to establish the center for alternative finance and
	procurement in accordance with Section 2152.110, Government Code,
	as added by this Act.
	SECTION 14.  This Act takes effect September 1, 2015.
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