Witnesses tell committee Chapter 2267 has stalled and needs overhaul

Industry and local government witnesses argued the state’s public‑private partnership statute has failed to produce projects and should be reworked.

John Conant, director of real estate acquisition and development for public‑private partnerships at the Texas Facilities Commission, outlined the advisory role of the Center for Alternative Finance and Procurement and described hybrid financing used for the Permian Basin Behavioral Health Center. Conant said the CAP program provides technical assistance and early feasibility analysis so governments can better evaluate complex delivery options.

Rodney Moss, who identified himself as chair of the law and legislative committee of the Association for the Improvement of American Infrastructure, said he helped draft the original statute and pushed for revisions. "I was the original primary drafter of 2267," he said, explaining the statute’s complexity and the need for guardrails and qualified advisers.

Industry witness Jeff Neidegger told members the current framework has not delivered projects. "In the 15 years since it was adopted, it has not been used a single time to deliver a project under that framework," he said, arguing the statute is overly prescriptive and deters jurisdictions from using it. Former Waco city manager Bradley Ford and other local officials said mandatory processes, opt‑in requirements and hearing mandates create uncertainty that drives municipalities to alternative procurement pathways.

Witnesses urged the committee to consider a repeal‑and‑replace approach modeled on more flexible statutes in other states, paired with clearer guidance and early advisory resources for local governments. The panel recommended preserving transparency and fiscal accountability while removing procedural friction that prevents smaller jurisdictions from using P3 tools.