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