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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)