| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
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. |