O F F I C E O F L E G I S L A T I V E R E S E A R C H
P U B L I C A C T S U M M A R Y
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PA 21-99—sSB 920
Transportation Committee
Appropriations Committee
AN ACT CONCERNING PU BLIC-PRIVATE PARTNERSHIPS
SUMMARY: This act 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 act makes the following changes to the law:
1. eliminates provisions in prior 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 act 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 about the status of P3
projects.
EFFECTIVE DATE: Upon passage
RESTRICTION TO TRANSPORTATION PROJECTS
Under prior law, a P3 agreement could be executed by any agency for
revenue-generating projects in one of 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 act instead limits the P3 law to DOT projects only. Under the act, eligible
projects are those involving transportation systems, including transit-oriented
development and related infrastructure.
The act 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
O L R P U B L I C A C T S U M M A R Y
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The act eliminates provisions in prior law restricting P3 projects to revenue-
generating facilities and limiting the state’s share of project costs. These
provisions (1) required that facilities, in order to be eligible for a P3 project,
generate estimated revenue that, together with other identified funding sources,
would sufficiently fund the facility’s development, maintenance, and operating
costs and (2) limited state support of the P3 to 25% of the project’s cost.
Other Changes
The act makes numerous changes to conform its limitation of the P3 law to
DOT projects only. It makes a minor change specifying that DOT must consider
the facility’s anticipated demand, rather than projected demand, before approving
a P3 project.
The act 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 act 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 act 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 act, 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. 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 act establishes additional DOT reporting requirements related to P3s. The O L R P U B L I C A C T S U M M A R Y
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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 act also requires DOT to submit a report six months after a P3’s
completion evaluating the P3’s effectiveness and making recommendations about
the continued use of P3s.