Connecticut 2021 2021 Regular Session

Connecticut Senate Bill SB00920 Comm Sub / Analysis

Filed 05/21/2021

                     
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OLR Bill Analysis 
sSB 920 (File 423, as amended by Senate "A")*  
 
AN ACT CONCERNING PUBLIC -PRIVATE PARTNERSHIPS.  
 
SUMMARY 
This bill reestablishes, through January 1, 2027, the governor’s 
authority to approve up to five public-private partnership (P3) project 
agreements. This authority previously expired on January 1, 2020. It 
also applies the P3 law to the Department of Transportation (DOT) and 
transportation projects only, thus reducing the types of state entities 
and projects covered by the law. 
Additionally, the bill makes the following changes to the law: 
1. eliminates provisions in current law restricting P3 projects to 
revenue-generating facilities and limiting the state’s share of 
project costs; 
2. requires DOT, for each P3, to make best efforts to use DOT 
employees to perform development and inspection work and 
reduce, or eliminate where possible, the department’s reliance 
on outside consultants; and 
3. requires DOT to submit additional reports on the use of 
consultants and on P3s’ status and  effectiveness. 
The bill also makes numerous minor, technical, and conforming 
changes, primarily to account for limiting the law’s scope to DOT and 
transportation projects. Among other things, these changes require 
DOT, rather than the governor, to report to the legislature annually by 
January 15 concerning the status of P3 projects.  
*Senate Amendment “A” (1) eliminates a provision in the 
underlying bill establishing the Office of Innovative Finance and 
Project Delivery in DOT, (2) adds a sunset date for the governor’s  2021SB-00920-R01-BA.DOCX 
 
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authority to approve P3s, (3) limits the P3 law’s scope to DOT and 
transportation projects, (4) requires DOT to make best efforts to use 
DOT employees to perform certain work related to P3s, (5) establishes 
new reporting requirements, and (6) makes numerous minor, 
technical, and conforming changes. 
EFFECTIVE DATE:  Upon passage 
RESTRICTION TO TRANS PORTATION PROJECTS 
Under current law, a P3 is an agreement between a state or quasi-
public agency and a private entity to finance, design, construct, 
develop, operate, or maintain certain “facilities.” Eligible facilities 
under current law generally include revenue-generating projects in the 
following categories: 
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. 
The bill instead limits the P3 law to DOT projects only. Under the 
bill, eligible projects are those involving transportation systems, 
including transit-oriented development and related infrastructure. 
The bill retains existing law’s requirement that a P3 obtain the 
governor’s approval. As under existing law, the governor cannot 
approve the agreement unless he finds it will create jobs and economic 
growth. 
Revenue Generation and State Costs 
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  2021SB-00920-R01-BA.DOCX 
 
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facility’s development, maintenance, and operating costs and (2) limit 
state support of the P3 to 25% of the project’s cost. 
Other Changes 
The bill makes numerous changes to conform its limitation of the P3 
law to DOT projects only. It makes a minor change specifying that the 
analysis DOT must do before a P3 project can be approved must 
consider the facility’s anticipated demand, rather than projected 
demand.  
The bill also specifies that the property tax exemption for property 
developed, operated, or held by a private entity under a P3 applies 
only to state property.  
DEVELOPMENT AND INSP ECTION WORK 
For any P3, the bill requires the DOT commissioner to make best 
efforts to (1) use DOT employees, if available, for development and 
inspection services and (2) reduce, and eliminate where possible, the 
department’s reliance on consultants. It also requires that any contract 
with a consultant to perform development or inspection services for a 
P3 include a provision providing for the training of DOT employees in 
the process for bidding and managing P3s. 
In addition, the bill allows DOT to appoint employees to durational 
positions to reduce the need for consultants to perform inspection or 
development services. These employees may be appointed as 
engineers to fill durational positions without an examination if they 
meet the education, knowledge, and training requirements in the 
Department of Administrative Services’ job classification. 
 Under the bill, a “consultant” is any (1) registered or licensed 
architect, professional engineer, landscape architect, land surveyor or 
accountant; (2) planner; or (3) environmental, management or financial 
specialist. Development services may include the project’s size, type, 
and desired design character; performance specifications; quality of 
material; equipment; workmanship; preliminary plans; or any other 
information needed for DOT to issue a request for proposals.  2021SB-00920-R01-BA.DOCX 
 
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Inspection services include construction inspections, surveying, 
testing, environmental compliance monitoring, quality control 
inspection, and quality assurance audits. 
  Similar requirements apply under existing law to DOT projects 
using alternative delivery methods (i.e., design-build or construction 
manager at risk) (CGS § 13a-95c). 
REPORTING REQUIREMEN TS 
The bill establishes additional DOT reporting requirements related 
to P3s. The reports must be completed in consultation with 
representatives selected by department employees’ exclusive 
bargaining agents and submitted to the Transportation Committee. 
Specifically, once a P3 is established, DOT must annually submit a 
report analyzing the P3’s progress and consultants’ performance of 
development and inspection work. The report is due each February 1 
after a P3 is established. If the report finds that a consultant is unable 
to complete the services within the timeframe or budget stated in the 
P3 agreement, DOT may terminate the agreement and exercise any 
other rights and remedies available to it by law or in equity.  
The bill also requires DOT to submit a report six months after a P3’s 
completion evaluating the P3’s effectiveness and making 
recommendations regarding the continued use of P3s. 
COMMITTEE ACTION 
Transportation Committee 
Joint Favorable Substitute 
Yea 34 Nay 1 (03/24/2021) 
 
Appropriations Committee 
Joint Favorable 
Yea 31 Nay 17 (05/10/2021)