SB3277 99TH GENERAL ASSEMBLY

LRB099 18605 AXK 42987 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3277

Introduced 2/19/2016, by Sen. Heather A. Steans

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.875 new

Creates the Public-Private Partnerships Act. Defines terms. Establishes the Office of Public-Private Partnerships within the Executive Branch. Provides that the Office shall provide public agencies, units of local government, and private entities assistance and expertise on public-private partnership agreements. Allows any public agency, with approval from the Office, to enter into a public-private partnership agreement with any private entity for improving transportation assets, public buildings, public services, or other public assets. Provides that within 90 days after the effective date of the Act, the Office shall establish procedures and guidelines for the submission, evaluation, and approval of projects. Creates the Local Alternative Procurement Fund as a special fund in the State treasury. Provides that money in the Local Alternative Procurement Fund shall be appropriated to public agencies and shall be used for the development, financing, and operation of transportation assets, public buildings, public services, and other public assets. Makes a corresponding change in the State Finance Act. Effective July 1, 2016.

A BILL FOR

AN ACT concerning public private partnership agreements.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Public Private Partnerships Act.

Section 5. Definitions. As used in this Act:

"Office" means the Office of Public-Private Partnerships.

"P3 project" means a contractual agreement between a public entity and a private entity that:

(1) transfers the responsibility of a facility's engineering, construction, operation, or maintenance to the private sector for a defined period of time;

(2) allows the private sector to perform by contract a service previously provided by the public sector; and

(3) ensures the private entity receives payments from either existing revenue sources or through the collection of new tolls or user fees.

"Private entity" means a person, entity, group, or organization that is not the federal government, the State, or other public agency.

"Project" means an undertaking by a private entity or a public agency to provide or improve a public asset, public building, public service, or transportation asset which is totally or partially located within the State.

"Public agency" means any municipality or unit of local government, any public school district, any public college or university, any public building commission, the State, an instrumentality or administrative agency, or any other agency of the State or of the United states, or of any other state, any political subdivision of another state, and any combination of the above under an intergovernmental agreement which includes provisions for a governing body of the agency created by the agreement.

"Public asset" means any proposed existing park, clean water system, waste water system, energy asset, telecommunications asset, transportation asset, or any other asset owned by a public agency.

"Public building" means any proposed or existing school, community center, fire station, police station, community college, university, hospital, library, or other building owned by a public agency.

"Public-private partnership agreement" means a contract for a project which transfers rights for the use or control, in whole or in part, of a public building, public service, public asset, or transportation asset, by a public agency to a development entity for a definite term during which the development entity will provide the project to the public agency in return for the right to receive all or a portion of the revenue generated from the use of the facility, or other payment, such as the following services: operations and maintenance; revenue collection; user fee collection or enforcement; design; construction; development; and other activities that expand or enhance existing or new public buildings, public assets, public services, or transportation assets.

"Public service" means any proposed or existing service performed or provided by a public agency or private entity.

"Transportation asset" means a proposed or existing road, toll highway, bridge, tunnel, overpass, ferry, bus way, guideway, public transportation facility, vehicle parking facility, port facility, commercial and public navigation lock and dam, commercial waterway, multimodal transportation facility, airport, station, hub, terminal or similar facility used or to be used for the transportation of persons, animals, or goods, together with any buildings, structures, parking areas, appurtenances, intelligent transportation systems, and other property needed to operate or related to the operation of the transportation facility. The term includes any improvements or substantial enhancements or modifications to an existing transportation facility.

Section 10. The Office of Public-Private Partnerships.

(a) The Office of Public-Private Partnerships is hereby created within the Executive branch.

(b)The Office shall have the following duties:

(1) Create an open platform to promote the development, financing, and operation of public-private partnership agreements.

(2) Provide assistance and expertise on public-private partnership agreements to other public agencies, units of local government, and private entities, in areas including, but not limited to:

(A) analyzing the benefits and costs, including various finance options, of potential P3 projects;

(B) providing sample and template public-private partnership agreement contracts;

(C) discussing developing trends in other states and countries; and

(D) providing other financial and legal assistance.

(3) Develop and maintain a database of potential P3 projects in this State as well as all proposed, ongoing, and completed P3 projects.

(4) Promote standardized methodologies and other uniform practices, transparency, and information sharing in public-private partnership agreements.

(5) At least once a year, conduct workshops or other outreach events with appropriate federal, State, or local government entities to attract private entities into the field of public-private partnership agreements and to measure the private sector's interest in the agreements, gauge possible future risks of entering into the agreements, discuss possible allocations of those risks, and other topics that may affect the ability of public-private partnerships to succeed in this State.

(6) Adopt rules as necessary to carry out the duties and purposes of this Act.

Section 15. Public-private partnership agreements.

(a) Any public agency may enter into a public-private partnership agreement with any private entity for improving transportation assets, public buildings, public services, or other public assets as provided in this Act.

(b) The Office shall review and approve public-private partnership projects in this State, except those entered into under the Public-Private Partnerships for Transportation Act.

(c) Within 90 days after the effective date of this Act, the Office shall establish:

(1) Procedures by which a public agency can submit a project for potential financing through a public-private partnership agreement, which shall require submission of a project statement that describes the rationale behind the project, contains a site analysis and an initial project design, identifies funding sources and cost estimates, provides scheduled times for major events, and identifies other public agencies potentially impacted by the project.

(2) Clearly defined requirements for submitting projects for approval, including, but not limited to, a requirement that a proposal demonstrates that:

(A) the project is part of a long-term plan of the public agency;

(B) the project is not currently in a bid process under traditional procurement methods; and

(C) local, State, or federal officials have had an opportunity to weigh in on the project, or the local jurisdiction of the public agency has voted to submit the project.

(3) Guidelines for allowing more than one public agency to enter into a single public-private partnership.

(4) Clear standards for project approval, including, but is not limited to:

(A) Criteria for the project assessment, consideration, and final decision. The Office shall label the project as either not eligible for a public-private agreement, eligible to be joined with another P3 project, or eligible as an individual P3 project. If the project is approved, the public agency has 60 days to acquire title to the site, or rights of use to the site, to carry out the project. The Office may grant an extension for a situation beyond the public agency's control, as determined by the Office. If the project is deemed not eligible for a public-private agreement, the public agency may re-submit the same project the following fiscal year.

(B) A requirement that the Office shall evaluate and render a final decision within 6 months of submission of the project to the Office.

(C) A requirement that the Office shall make public all findings of the assessment, including the final score and category of the project, rationale behind the decision, sources of funding, comparisons to similar projects, and any areas of concern.

(D) A requirement that the Office shall submit an annual report to the Governor and the General Assembly detailing all projects evaluated, adopted, and completed.

(d) All P3 projects under this Section shall be subject to any applicable planning requirements, including, but not limited to, land use planning, regional planning, transportation planning, and environmental compliance requirements.

(e) The net proceeds, if any, arising out of a P3 project shall be deposited into the Local Alternative Procurement Fund, a fund created as a special fund in the State treasury. All moneys in the Local Alternative Procurement Fund shall be appropriated to public agencies and shall be used for the development, financing, and operation of transportation assets, public buildings, public services, or other public assets under this Act.

Section 900. The State Finance Act is amended by adding Section 5.875 as follows:

(30 ILCS 105/5.875 new)

Sec. 5.875. The Local Alternative Procurement Fund.

Section 999. Effective date. This Act takes effect July 1, 2016.