Researcher: HP Page 1 4/13/21
OLR Bill Analysis
sSB 920
AN ACT CONCERNING PUBLIC -PRIVATE PARTNERSHIPS.
SUMMARY
This bill reestablishes the governor’s authority to approve up to five
public-private partnership (P3) project agreements and makes the
authority permanent (see BACKGROUND). This authority previously
expired on January 1, 2020.
The bill eliminates provisions restricting P3 projects to revenue-
generating facilities and limiting the state’s share of project costs.
Under current law, these provisions (1) require that facilities, in order
to be eligible for a P3 project, generate estimated revenue that, together
with other identified funding sources, will sufficiently fund the
facility’s development, maintenance, and operating costs and (2) limit
state support of the P3 to 25% of the project’s cost.
The bill also establishes the Office of Innovative Finance and Project
Delivery within the Department of Transportation (DOT) and requires
the DOT commissioner to assign personnel to the office as needed to
fulfill the bill’s requirements. It charges the office with the following:
1. evaluating opportunities to use innovative financing and risk
management to deliver transportation projects,
2. focusing on effective and accelerated delivery of transportation
projects to assure the development and maintenance of a safe
and efficient transportation system, and
3. recommending P3 opportunities to the commissioner.
EFFECTIVE DATE: Upon passage
BACKGROUND 2021SB-00920-R000423-BA.DOCX
Researcher: HP Page 2 4/13/21
Public Private Partnerships
Generally, a P3 is an agreement between a state executive branch or
quasi-public agency and a private entity to finance, design, construct,
develop, operate, or maintain certain “facilities.” The agreement may
authorize any combination of these functions for one or more facilities
and must be approved by the governor. The governor cannot approve
the agreement unless he finds it will create jobs and economic growth.
By law, the following are eligible facilities:
1. educational, health, early childcare, or housing facilities;
2. transportation systems, including ports, transit-oriented
development, and related infrastructure; and
3. any other type of facility designated as a P3 by an act of the
legislature (CGS § 4-255).
COMMITTEE ACTION
Transportation Committee
Joint Favorable Substitute
Yea 34 Nay 1 (03/24/2021)