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General Assembly Governor's Bill No. 878
January Session, 2019
LCO No. 4442
Referred to Committee on GOVERNMENT ADMINISTRATION
AND ELECTIONS
Introduced by:
SEN. LOONEY, 11
th
Dist.
SEN. DUFF, 25
th
Dist.
REP. ARESIMOWICZ, 30
th
Dist.
REP. RITTER M., 1
st
Dist.
AN ACT ENHANCING PUB LIC-PRIVATE PARTNERSHIPS .
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4-255 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2019): 2
(a) As used in this section and sections 4-256 to 4-263, inclusive, as 3
amended by this act, unless the context indicates a different meaning: 4
(1) "State agency" or "agency" means any office, department, board, 5
council, commission, institution or other agency in the executive 6
branch of state government or a quasi-public agency as defined in 7
section 1-120; 8
(2) "Private entity" means any individual, corporation, general 9
partnership, limited partnership, limited liability partnership, joint 10 Governor's Bill No. 878
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venture, nonprofit organization or other business entity; 11
(3) "Public-private partnership" means the relationship established 12
between a state agency and a private entity by contracting for the 13
performance of any combination of specified functions or 14
responsibilities to design, develop, finance, construct, operate or 15
maintain [one or more state facilities where the agency has estimated 16
that the revenue generated by such facility or facilities, in combination 17
with other previously identified funding sources, including any 18
appropriated funds, will be sufficient to fund the cost to develop, 19
maintain and operate such facility or facilities, provided state support 20
of a partnership agreement shall not exceed twenty-five per cent of the 21
cost of the] a project; 22
(4) "Partnership agreement" means an agreement executed between 23
a state agency and a private entity to establish a public-private 24
partnership; 25
(5) "Project" means a project that an agency has submitted to the 26
Governor for approval as a public-private partnership; 27
(6) "Contractor" means a private entity that has entered into a 28
public-private partnership agreement with a state agency; and 29
[(7) "Facility" means any public works or transportation project used 30
as public infrastructure that generates revenue as a function of its 31
operation; and] 32
[(8)] (7) "Proposer" means a private entity submitting a competitive 33
bid in response to solicitation or a proposal in response to a request for 34
proposals for an approved project for consideration. 35
(b) Notwithstanding the provisions of section 4b-51, once the project 36
is approved by the Governor in accordance with section 4-256, as 37
amended by this act, any state agency may establish one or more 38
public-private partnerships and execute a partnership agreement for a 39
project in accordance with this section and sections 4-256 to 4-263, 40 Governor's Bill No. 878
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inclusive, as amended by this act. A partnership agreement may not be 41
established for the operation or maintenance of a [facility] project 42
unless such agreement also provides for the financing and 43
development of such [facility] project. 44
[(c) The design, development, operation or maintenance of the 45
following new or existing project types are eligible for consideration as 46
a public-private partnership if approved as a project in accordance 47
with section 4-256: 48
(1) Early childcare, educational, health or housing facilities; 49
(2) Transportation systems, including ports, transit-oriented 50
development and related infrastructure; and 51
(3) Any other kind of facility that may from time to time be 52
designated as such by an act of the General Assembly.] 53
Sec. 2. Section 4-256 of the general statutes is repealed and the 54
following is substituted in lieu thereof (Effective July 1, 2019): 55
(a) [On and after October 27, 2011, and prior to January 1, 2020, the 56
Governor shall approve not more than five projects to be implemented 57
as public-private partnership projects. The Governor shall not approve 58
any such project unless the Governor finds that the project will result 59
in job creation and economic growth.] Any agency seeking to establish 60
a public-private partnership shall, after consultation with the 61
Commissioners of Economic and Community Development, 62
Administrative Services and Transportation, the State Treasurer and 63
the Secretary of the Office of Policy and Management, submit one or 64
more projects to the Governor for approval. The Governor shall not 65
approve any such project unless the Governor finds that the project 66
will result in job creation and economic growth. 67
(b) In determining whether a project is suitable for a public-private 68
partnership agreement, the agency shall conduct an analysis of the 69
feasibility, desirability and the convenience to the public of the project 70 Governor's Bill No. 878
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and whether the project furthers the public policy goals of section 4-71
255, as amended by this act, and this section, [and sections 4-257 to 4-72
263, inclusive,] taking into consideration the following, when 73
applicable: 74
(1) The essential characteristics of the proposed [facility] project; 75
(2) The [projected] anticipated demand for use of the [facility] 76
project and its economic and social impact on the community and the 77
state; 78
(3) The technical function and feasibility of the project and its 79
conformity with the state plan of conservation and development 80
adopted under chapter 297; 81
(4) The benefit to clients of the agency and the public as a whole; 82
(5) An analysis of the value provided for the cost of the project, that 83
at a minimum includes a cost-benefit analysis, an assessment of 84
opportunity costs and any nonfinancial benefits of the project; 85
(6) Any operational or technological risk associated with the 86
proposed project; 87
(7) The cost of the investment to be made and the economic and 88
financial feasibility of the project; 89
(8) An analysis of public versus private financing on a present value 90
basis, and the eligibility of the project for other public funds from local 91
or federal government sources; 92
(9) The impact to the state's finances of undertaking the project by 93
the agency; and 94
(10) The advantages and disadvantages of using a public-private 95
partnership rather than having the state agency perform the function. 96
(c) An agency shall not include a project solely based upon the 97
amount of potential revenue generated by such project. 98 Governor's Bill No. 878
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(d) Any agency submitting a project in accordance with subsection 99
(a) of this section shall at the same time transmit, in accordance with 100
the provisions of section 11-4a, a copy of its submission to the joint 101
standing committees of the General Assembly having cognizance of 102
matters relating to finance, revenue and bonding and appropriations 103
and the budgets of state agencies. Said committees shall hold public 104
hearings on any such submission. 105
(e) The Governor shall notify the agency when a project has been 106
approved as a public-private partnership project. 107
(f) On or before January [15, 2013] 1, 2020, and annually thereafter, 108
the Governor shall report, in accordance with the provisions of section 109
11-4a, to the General Assembly concerning the status of the public-110
private partnerships established under this section. 111
Sec. 3. Section 4-259 of the general statutes is repealed and the 112
following is substituted in lieu thereof (Effective July 1, 2019): 113
(a) Any partnership agreement executed in accordance with the 114
provisions of sections 4-255 to 4-263, inclusive, as amended by this act, 115
shall include, but not be limited to, the following terms and conditions: 116
[(1) The term of the agreement, which shall be for a period not to 117
exceed fifty years from the date of the full execution of the partnership 118
agreement;] 119
[(2)] (1) A complete description of the [facility] project to be 120
developed and the functions to be performed; 121
[(3)] (2) The terms of the financing, development, design, 122
improvement, maintenance, operation and administration of the 123
[facility] project; 124
[(4)] (3) The rights the state, the contractor, or both, have, if any, in 125
revenue from the financing, development, design, improvement, 126
maintenance, operation or administration of the [facility] project; 127 Governor's Bill No. 878
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[(5)] (4) The minimum quality standards applicable to the project for 128
development, design, improvement, maintenance, operation or 129
administration, [of the facility,] including performance criteria, 130
incentives and disincentives; 131
[(6)] (5) The compensation of the contractor, including the extent to 132
which and the terms upon which a contractor may charge fees to 133
individuals and entities for the use of the [facility] project, but in no 134
event shall such fee extend to the imposition of tolls on the highways 135
of this state unless such tolls are specifically approved by the General 136
Assembly; 137
[(7)] (6) The furnishing of an annual independent audit report to the 138
agency covering all aspects of the partnership agreement; 139
[(8)] (7) Performance and payment bonds or other security deemed 140
suitable by the agency; 141
[(9)] (8) One or more policies of public liability insurance in such 142
amounts determined by the agency to ensure coverage of tort liability 143
for the public and employees of the contractor and to provide for the 144
continued operation of the partnership project; 145
[(10)] (9) A reverter of the project to the state upon the conclusion or 146
termination of the partnership agreement; 147
[(11)] (10) The rights and remedies available to the agency for a 148
material breach of the partnership agreement by the contractor or 149
private entity or if there is a material default; 150
[(12)] (11) Identification of funding sources to be used to fully fund 151
the capital, operation, maintenance or other expenses under the 152
agreement; and 153
[(13)] (12) Any other provision determined to be appropriate by the 154
agency. 155
(b) [No partnership agreement shall contain any] Any proposed 156 Governor's Bill No. 878
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noncompete provisions [limiting] shall not limit the ability of the state 157
to perform its functions. 158
(c) No user fees may be imposed by the contractor except as set 159
forth in a partnership agreement. 160
(d) The partnership agreement shall not be construed as waiving the 161
sovereign immunity of the state or as a grant of sovereign immunity to 162
the contractor or any private entity. 163
(e) No contractor shall be liable for the debts or obligations of the 164
state or the agency, unless the partnership agreement provides that 165
such contractor is liable under such agreement. 166
Sec. 4. Section 4-261 of the general statutes is repealed and the 167
following is substituted in lieu thereof (Effective July 1, 2019): 168
(a) Each public-private partnership project shall either be subject to 169
the prevailing wage requirements pursuant to section 31-53 or the rate 170
established by the use of a project labor agreement. The agency shall 171
provide notice of which requirement applies prior to soliciting bids or 172
proposals for such public-private partnership. 173
(b) Each public-private partnership project shall comply with: (1) 174
The state's environmental policy requirements as set forth in sections 175
22a-1 and 22a-1a, (2) the requirements of the set-aside program for 176
small contractors as set forth in section 4a-60g, and (3) any applicable 177
permitting or inspection requirements for projects of a similar type, 178
scope and size as set forth in the general statutes or the local 179
ordinances of the municipality where the project is to be located. 180
[(c) Any agency that is subject to section 4e-16 shall comply with the 181
provisions of section 4e-16, provided, notwithstanding the provisions 182
of subsection (a) of section 4e-16, any agency that enters into a 183
partnership agreement concerning the operations or maintenance of a 184
state facility that meets the definition of a privatization contract, as 185
defined in section 4e-1, shall be subject to the requirements of section 186 Governor's Bill No. 878
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4e-16 regardless of whether such services are currently privatized.] 187
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 4-255
Sec. 2 July 1, 2019 4-256
Sec. 3 July 1, 2019 4-259
Sec. 4 July 1, 2019 4-261
Statement of Purpose:
To implement the Governor's budget recommendations.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]