Connecticut 2019 Regular Session

Connecticut Senate Bill SB00878 Compare Versions

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3		-	LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00878-R01-
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7		-	General Assembly Substitute Bill No. 878
	4	+	LCO No. 4442 1 of 8
	5	+
	6	+	General Assembly Governor's Bill No. 878
8	7		January Session, 2019
	8	+	LCO No. 4442
	9	+
	10	+
	11	+	Referred to Committee on GOVERNMENT ADMINISTRATION
	12	+	AND ELECTIONS
	13	+
	14	+
	15	+	Introduced by:
	16	+	SEN. LOONEY, 11
	17	+	th
	18	+	Dist.
	19	+	SEN. DUFF, 25
	20	+	th
	21	+	Dist.
	22	+	REP. ARESIMOWICZ, 30
	23	+	th
	24	+	Dist.
	25	+	REP. RITTER M., 1
	26	+	st
	27	+	Dist.
	28	+
	29	+
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13	34		AN ACT ENHANCING PUB LIC-PRIVATE PARTNERSHIPS .
14	35		Be it enacted by the Senate and House of Representatives in General
15	36		Assembly convened:
16	37
17		-	Section 1. Subsection (a) of section 4-256 of the general statutes is 1
18		-	repealed and the following is substituted in lieu thereof (Effective July 2
19		-	1, 2019): 3
20		-	(a) On and after October 27, 2011, and prior to [January 1, 2020] 4
21		-	December 1, 2022, the Governor shall approve not more than [five] 5
22		-	seven projects to be implemented as public-private partnership 6
23		-	projects. The Governor shall not approve any such project unless the 7
24		-	Governor finds that the project will result in job creation and economic 8
25		-	growth. Any agency seeking to establish a public-private partnership 9
26		-	shall, after consultation with the Commissioners of Economic and 10
27		-	Community Development, Administrative Services and 11
28		-	Transportation, the State Treasurer and the Secretary of the Office of 12
29		-	Policy and Management, submit one or more projects to the Governor 13
30		-	for approval. 14
	38	+	Section 1. Section 4-255 of the general statutes is repealed and the 1
	39	+	following is substituted in lieu thereof (Effective July 1, 2019): 2
	40	+	(a) As used in this section and sections 4-256 to 4-263, inclusive, as 3
	41	+	amended by this act, unless the context indicates a different meaning: 4
	42	+	(1) "State agency" or "agency" means any office, department, board, 5
	43	+	council, commission, institution or other agency in the executive 6
	44	+	branch of state government or a quasi-public agency as defined in 7
	45	+	section 1-120; 8
	46	+	(2) "Private entity" means any individual, corporation, general 9
	47	+	partnership, limited partnership, limited liability partnership, joint 10 Governor's Bill No. 878
	48	+
	49	+
	50	+
	51	+	LCO No. 4442 2 of 8
	52	+
	53	+	venture, nonprofit organization or other business entity; 11
	54	+	(3) "Public-private partnership" means the relationship established 12
	55	+	between a state agency and a private entity by contracting for the 13
	56	+	performance of any combination of specified functions or 14
	57	+	responsibilities to design, develop, finance, construct, operate or 15
	58	+	maintain [one or more state facilities where the agency has estimated 16
	59	+	that the revenue generated by such facility or facilities, in combination 17
	60	+	with other previously identified funding sources, including any 18
	61	+	appropriated funds, will be sufficient to fund the cost to develop, 19
	62	+	maintain and operate such facility or facilities, provided state support 20
	63	+	of a partnership agreement shall not exceed twenty-five per cent of the 21
	64	+	cost of the] a project; 22
	65	+	(4) "Partnership agreement" means an agreement executed between 23
	66	+	a state agency and a private entity to establish a public-private 24
	67	+	partnership; 25
	68	+	(5) "Project" means a project that an agency has submitted to the 26
	69	+	Governor for approval as a public-private partnership; 27
	70	+	(6) "Contractor" means a private entity that has entered into a 28
	71	+	public-private partnership agreement with a state agency; and 29
	72	+	[(7) "Facility" means any public works or transportation project used 30
	73	+	as public infrastructure that generates revenue as a function of its 31
	74	+	operation; and] 32
	75	+	[(8)] (7) "Proposer" means a private entity submitting a competitive 33
	76	+	bid in response to solicitation or a proposal in response to a request for 34
	77	+	proposals for an approved project for consideration. 35
	78	+	(b) Notwithstanding the provisions of section 4b-51, once the project 36
	79	+	is approved by the Governor in accordance with section 4-256, as 37
	80	+	amended by this act, any state agency may establish one or more 38
	81	+	public-private partnerships and execute a partnership agreement for a 39
	82	+	project in accordance with this section and sections 4-256 to 4-263, 40 Governor's Bill No. 878
	83	+
	84	+
	85	+
	86	+	LCO No. 4442 3 of 8
	87	+
	88	+	inclusive, as amended by this act. A partnership agreement may not be 41
	89	+	established for the operation or maintenance of a [facility] project 42
	90	+	unless such agreement also provides for the financing and 43
	91	+	development of such [facility] project. 44
	92	+	[(c) The design, development, operation or maintenance of the 45
	93	+	following new or existing project types are eligible for consideration as 46
	94	+	a public-private partnership if approved as a project in accordance 47
	95	+	with section 4-256: 48
	96	+	(1) Early childcare, educational, health or housing facilities; 49
	97	+	(2) Transportation systems, including ports, transit-oriented 50
	98	+	development and related infrastructure; and 51
	99	+	(3) Any other kind of facility that may from time to time be 52
	100	+	designated as such by an act of the General Assembly.] 53
	101	+	Sec. 2. Section 4-256 of the general statutes is repealed and the 54
	102	+	following is substituted in lieu thereof (Effective July 1, 2019): 55
	103	+	(a) [On and after October 27, 2011, and prior to January 1, 2020, the 56
	104	+	Governor shall approve not more than five projects to be implemented 57
	105	+	as public-private partnership projects. The Governor shall not approve 58
	106	+	any such project unless the Governor finds that the project will result 59
	107	+	in job creation and economic growth.] Any agency seeking to establish 60
	108	+	a public-private partnership shall, after consultation with the 61
	109	+	Commissioners of Economic and Community Development, 62
	110	+	Administrative Services and Transportation, the State Treasurer and 63
	111	+	the Secretary of the Office of Policy and Management, submit one or 64
	112	+	more projects to the Governor for approval. The Governor shall not 65
	113	+	approve any such project unless the Governor finds that the project 66
	114	+	will result in job creation and economic growth. 67
	115	+	(b) In determining whether a project is suitable for a public-private 68
	116	+	partnership agreement, the agency shall conduct an analysis of the 69
	117	+	feasibility, desirability and the convenience to the public of the project 70 Governor's Bill No. 878
	118	+
	119	+
	120	+
	121	+	LCO No. 4442 4 of 8
	122	+
	123	+	and whether the project furthers the public policy goals of section 4-71
	124	+	255, as amended by this act, and this section, [and sections 4-257 to 4-72
	125	+	263, inclusive,] taking into consideration the following, when 73
	126	+	applicable: 74
	127	+	(1) The essential characteristics of the proposed [facility] project; 75
	128	+	(2) The [projected] anticipated demand for use of the [facility] 76
	129	+	project and its economic and social impact on the community and the 77
	130	+	state; 78
	131	+	(3) The technical function and feasibility of the project and its 79
	132	+	conformity with the state plan of conservation and development 80
	133	+	adopted under chapter 297; 81
	134	+	(4) The benefit to clients of the agency and the public as a whole; 82
	135	+	(5) An analysis of the value provided for the cost of the project, that 83
	136	+	at a minimum includes a cost-benefit analysis, an assessment of 84
	137	+	opportunity costs and any nonfinancial benefits of the project; 85
	138	+	(6) Any operational or technological risk associated with the 86
	139	+	proposed project; 87
	140	+	(7) The cost of the investment to be made and the economic and 88
	141	+	financial feasibility of the project; 89
	142	+	(8) An analysis of public versus private financing on a present value 90
	143	+	basis, and the eligibility of the project for other public funds from local 91
	144	+	or federal government sources; 92
	145	+	(9) The impact to the state's finances of undertaking the project by 93
	146	+	the agency; and 94
	147	+	(10) The advantages and disadvantages of using a public-private 95
	148	+	partnership rather than having the state agency perform the function. 96
	149	+	(c) An agency shall not include a project solely based upon the 97
	150	+	amount of potential revenue generated by such project. 98 Governor's Bill No. 878
	151	+
	152	+
	153	+
	154	+	LCO No. 4442 5 of 8
	155	+
	156	+	(d) Any agency submitting a project in accordance with subsection 99
	157	+	(a) of this section shall at the same time transmit, in accordance with 100
	158	+	the provisions of section 11-4a, a copy of its submission to the joint 101
	159	+	standing committees of the General Assembly having cognizance of 102
	160	+	matters relating to finance, revenue and bonding and appropriations 103
	161	+	and the budgets of state agencies. Said committees shall hold public 104
	162	+	hearings on any such submission. 105
	163	+	(e) The Governor shall notify the agency when a project has been 106
	164	+	approved as a public-private partnership project. 107
	165	+	(f) On or before January [15, 2013] 1, 2020, and annually thereafter, 108
	166	+	the Governor shall report, in accordance with the provisions of section 109
	167	+	11-4a, to the General Assembly concerning the status of the public-110
	168	+	private partnerships established under this section. 111
	169	+	Sec. 3. Section 4-259 of the general statutes is repealed and the 112
	170	+	following is substituted in lieu thereof (Effective July 1, 2019): 113
	171	+	(a) Any partnership agreement executed in accordance with the 114
	172	+	provisions of sections 4-255 to 4-263, inclusive, as amended by this act, 115
	173	+	shall include, but not be limited to, the following terms and conditions: 116
	174	+	[(1) The term of the agreement, which shall be for a period not to 117
	175	+	exceed fifty years from the date of the full execution of the partnership 118
	176	+	agreement;] 119
	177	+	[(2)] (1) A complete description of the [facility] project to be 120
	178	+	developed and the functions to be performed; 121
	179	+	[(3)] (2) The terms of the financing, development, design, 122
	180	+	improvement, maintenance, operation and administration of the 123
	181	+	[facility] project; 124
	182	+	[(4)] (3) The rights the state, the contractor, or both, have, if any, in 125
	183	+	revenue from the financing, development, design, improvement, 126
	184	+	maintenance, operation or administration of the [facility] project; 127 Governor's Bill No. 878
	185	+
	186	+
	187	+
	188	+	LCO No. 4442 6 of 8
	189	+
	190	+	[(5)] (4) The minimum quality standards applicable to the project for 128
	191	+	development, design, improvement, maintenance, operation or 129
	192	+	administration, [of the facility,] including performance criteria, 130
	193	+	incentives and disincentives; 131
	194	+	[(6)] (5) The compensation of the contractor, including the extent to 132
	195	+	which and the terms upon which a contractor may charge fees to 133
	196	+	individuals and entities for the use of the [facility] project, but in no 134
	197	+	event shall such fee extend to the imposition of tolls on the highways 135
	198	+	of this state unless such tolls are specifically approved by the General 136
	199	+	Assembly; 137
	200	+	[(7)] (6) The furnishing of an annual independent audit report to the 138
	201	+	agency covering all aspects of the partnership agreement; 139
	202	+	[(8)] (7) Performance and payment bonds or other security deemed 140
	203	+	suitable by the agency; 141
	204	+	[(9)] (8) One or more policies of public liability insurance in such 142
	205	+	amounts determined by the agency to ensure coverage of tort liability 143
	206	+	for the public and employees of the contractor and to provide for the 144
	207	+	continued operation of the partnership project; 145
	208	+	[(10)] (9) A reverter of the project to the state upon the conclusion or 146
	209	+	termination of the partnership agreement; 147
	210	+	[(11)] (10) The rights and remedies available to the agency for a 148
	211	+	material breach of the partnership agreement by the contractor or 149
	212	+	private entity or if there is a material default; 150
	213	+	[(12)] (11) Identification of funding sources to be used to fully fund 151
	214	+	the capital, operation, maintenance or other expenses under the 152
	215	+	agreement; and 153
	216	+	[(13)] (12) Any other provision determined to be appropriate by the 154
	217	+	agency. 155
	218	+	(b) [No partnership agreement shall contain any] Any proposed 156 Governor's Bill No. 878
	219	+
	220	+
	221	+
	222	+	LCO No. 4442 7 of 8
	223	+
	224	+	noncompete provisions [limiting] shall not limit the ability of the state 157
	225	+	to perform its functions. 158
	226	+	(c) No user fees may be imposed by the contractor except as set 159
	227	+	forth in a partnership agreement. 160
	228	+	(d) The partnership agreement shall not be construed as waiving the 161
	229	+	sovereign immunity of the state or as a grant of sovereign immunity to 162
	230	+	the contractor or any private entity. 163
	231	+	(e) No contractor shall be liable for the debts or obligations of the 164
	232	+	state or the agency, unless the partnership agreement provides that 165
	233	+	such contractor is liable under such agreement. 166
	234	+	Sec. 4. Section 4-261 of the general statutes is repealed and the 167
	235	+	following is substituted in lieu thereof (Effective July 1, 2019): 168
	236	+	(a) Each public-private partnership project shall either be subject to 169
	237	+	the prevailing wage requirements pursuant to section 31-53 or the rate 170
	238	+	established by the use of a project labor agreement. The agency shall 171
	239	+	provide notice of which requirement applies prior to soliciting bids or 172
	240	+	proposals for such public-private partnership. 173
	241	+	(b) Each public-private partnership project shall comply with: (1) 174
	242	+	The state's environmental policy requirements as set forth in sections 175
	243	+	22a-1 and 22a-1a, (2) the requirements of the set-aside program for 176
	244	+	small contractors as set forth in section 4a-60g, and (3) any applicable 177
	245	+	permitting or inspection requirements for projects of a similar type, 178
	246	+	scope and size as set forth in the general statutes or the local 179
	247	+	ordinances of the municipality where the project is to be located. 180
	248	+	[(c) Any agency that is subject to section 4e-16 shall comply with the 181
	249	+	provisions of section 4e-16, provided, notwithstanding the provisions 182
	250	+	of subsection (a) of section 4e-16, any agency that enters into a 183
	251	+	partnership agreement concerning the operations or maintenance of a 184
	252	+	state facility that meets the definition of a privatization contract, as 185
	253	+	defined in section 4e-1, shall be subject to the requirements of section 186 Governor's Bill No. 878
	254	+
	255	+
	256	+
	257	+	LCO No. 4442 8 of 8
	258	+
	259	+	4e-16 regardless of whether such services are currently privatized.] 187
31	260		This act shall take effect as follows and shall amend the following
32	261		sections:
33	262
34		-	Section 1 July 1, 2019 4-256(a)
	263	+	Section 1 July 1, 2019 4-255
	264	+	Sec. 2 July 1, 2019 4-256
	265	+	Sec. 3 July 1, 2019 4-259
	266	+	Sec. 4 July 1, 2019 4-261
35	267
36		-	GAE Joint Favorable Subst.
37		-
	268	+	Statement of Purpose:
	269	+	To implement the Governor's budget recommendations.
	270	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	271	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	272	+	not underlined.]