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A BILL TO BE ENTITLED
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AN ACT
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relating to financing arrangements between political subdivisions |
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and private entities for the implementation of pay for success |
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initiatives. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.011 to read as follows: |
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Sec. 140.011. PRIVATE FINANCING ARRANGEMENTS FOR PAY FOR |
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SUCCESS INITIATIVES. (a) The governing body of a political |
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subdivision with the authority to issue general obligation or |
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revenue bonds may by order, ordinance, or similar measure enter |
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into a private financing arrangement for a program designed and |
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intended to address a problem facing the political subdivision. |
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(b) Under the financing arrangement: |
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(1) private investors provide capital for the program; |
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(2) a private entity enacts the program; |
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(3) an independent reviewer determines the success of |
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the program; and |
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(4) the political subdivision pays the initial capital |
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with interest to the private investors only if the independent |
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reviewer determines that the program is successful. |
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(c) The Bond Review Board shall by rule establish procedures |
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for entering into the private financing arrangements, including |
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procedures for the manner in which: |
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(1) the financing arrangement is approved; |
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(2) the financing arrangement is implemented; and |
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(3) a payment under the financing arrangement is |
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received. |
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SECTION 2. This Act takes effect September 1, 2015. |