Connecticut 2021 Regular Session

Connecticut Senate Bill SB00920 Compare Versions

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	7	+	General Assembly Substitute Bill No. 920
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4		-	Substitute Senate Bill No. 920
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6		-	Public Act No. 21-99
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9	14		AN ACT CONCERNING PU BLIC-PRIVATE PARTNERSHIPS.
10	15		Be it enacted by the Senate and House of Representatives in General
11	16		Assembly convened:
12	17
13		-	Section 1. Section 4-255 of the general statutes is repealed and the
14		-	following is substituted in lieu thereof (Effective from passage):
15		-	(a) As used in this section, [and] sections 4-256 to 4-263, inclusive, as
16		-	amended by this act, and section 3 of this act, unless the context indicates
17		-	a different meaning:
18		-	[(1) "State agency" or "agency" means any office, department, board,
19		-	council, commission, institution or other agency in the executive branch
20		-	of state government or a quasi-public agency as defined in section 1-
21		-	120;]
22		-	(1) "Department" means the Department of Transportation;
23		-	(2) "Private entity" means any individual, corporation, general
24		-	partnership, limited partnership, limited liability partnership, joint
25		-	venture, nonprofit organization or other business entity;
26		-	(3) "Public-private partnership" means the relationship established
27		-	between [a state agency] the department and a private entity by
28		-	contracting for the performance of any combination of specified Substitute Senate Bill No. 920
	18	+	Section 1. Section 4-255 of the general statutes is repealed and the 1
	19	+	following is substituted in lieu thereof (Effective from passage): 2
	20	+	(a) As used in this section and sections 4-256 to 4-263, inclusive, as 3
	21	+	amended by this act, unless the context indicates a different meaning: 4
	22	+	(1) "State agency" or "agency" means any office, department, board, 5
	23	+	council, commission, institution or other agency in the executive branch 6
	24	+	of state government or a quasi-public agency as defined in section 1-120; 7
	25	+	(2) "Private entity" means any individual, corporation, general 8
	26	+	partnership, limited partnership, limited liability partnership, joint 9
	27	+	venture, nonprofit organization or other business entity; 10
	28	+	(3) "Public-private partnership" means the relationship established 11
	29	+	between a state agency and a private entity by contracting for the 12
	30	+	performance of any combination of specified functions or 13
	31	+	responsibilities to design, develop, finance, construct, operate or 14
	32	+	maintain one or more state facilities; [where the agency has estimated 15
	33	+	that the revenue generated by such facility or facilities, in combination 16
	34	+	with other previously identified funding sources, including any 17 Substitute Bill No. 920
29	35
30		-	Public Act No. 21-99 2 of 14
31	36
32		-	functions or responsibilities to design, develop, finance, construct,
33		-	operate or maintain one or more state facilities; [where the agency has
34		-	estimated that the revenue generated by such facility or facilities, in
35		-	combination with other previously identified funding sources,
36		-	including any appropriated funds, will be sufficient to fund the cost to
37		-	develop, maintain and operate such facility or facilities, provided state
38		-	support of a partnership agreement shall not exceed twenty-five per
39		-	cent of the cost of the project;]
40		-	(4) "Partnership agreement" means an agreement executed between
41		-	[a state agency] the department and a private entity to establish a public-
42		-	private partnership;
43		-	(5) "Project" means a project that [an agency] the department has
44		-	submitted to the Governor for approval as a public-private partnership;
45		-	(6) "Contractor" means a private entity that has entered into a public-
46		-	private partnership agreement with [a state agency] the department;
47		-	(7) "Facility" means any [public works or] transportation project used
48		-	as public infrastructure; [that generates revenue as a function of its
49		-	operation; and]
50		-	(8) "Proposer" means a private entity submitting a competitive bid in
51		-	response to solicitation or a proposal in response to a request for
52		-	proposals for an approved project for consideration; [.] and
53		-	(9) "Consultant" has the same meaning as provided in section 13b-
54		-	20b.
55		-	(b) Notwithstanding the provisions of section 4b-51, once the project
56		-	is approved by the Governor in accordance with section 4-256, as
57		-	amended by this act, [any state agency] the department may establish
58		-	one or more public-private partnerships and execute a partnership
59		-	agreement for a project in accordance with this section and sections 4- Substitute Senate Bill No. 920
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61		-	Public Act No. 21-99 3 of 14
	41	+	appropriated funds, will be sufficient to fund the cost to develop, 18
	42	+	maintain and operate such facility or facilities, provided state support 19
	43	+	of a partnership agreement shall not exceed twenty-five per cent of the 20
	44	+	cost of the project;] 21
	45	+	(4) "Partnership agreement" means an agreement executed between a 22
	46	+	state agency and a private entity to establish a public-private 23
	47	+	partnership; 24
	48	+	(5) "Project" means a project that an agency has submitted to the 25
	49	+	Governor for approval as a public-private partnership; 26
	50	+	(6) "Contractor" means a private entity that has entered into a public-27
	51	+	private partnership agreement with a state agency; 28
	52	+	(7) "Facility" means any public works or transportation project used 29
	53	+	as public infrastructure; [that generates revenue as a function of its 30
	54	+	operation;] and 31
	55	+	(8) "Proposer" means a private entity submitting a competitive bid in 32
	56	+	response to solicitation or a proposal in response to a request for 33
	57	+	proposals for an approved project for consideration. 34
	58	+	(b) Notwithstanding the provisions of section 4b-51, once the project 35
	59	+	is approved by the Governor in accordance with section 4-256, as 36
	60	+	amended by this act, any state agency may establish one or more public-37
	61	+	private partnerships and execute a partnership agreement for a project 38
	62	+	in accordance with this section and sections 4-256 to 4-263, inclusive, as 39
	63	+	amended by this act. A partnership agreement may not be established 40
	64	+	for the operation or maintenance of a facility unless such agreement also 41
	65	+	provides for the financing and development of such facility. 42
	66	+	(c) The design, development, operation or maintenance of the 43
	67	+	following new or existing project types are eligible for consideration as 44
	68	+	a public-private partnership if approved as a project in accordance with 45
	69	+	section 4-256, as amended by this act: 46 Substitute Bill No. 920
62	70
63		-	256 to 4-263, inclusive, as amended by this act, and section 3 of this act.
64		-	A partnership agreement may not be established for the operation or
65		-	maintenance of a facility unless such agreement also provides for the
66		-	financing and development of such facility.
67		-	(c) The design, development, operation or maintenance of [the
68		-	following] new or existing project types involving transportation
69		-	systems, including transit-oriented development and related
70		-	infrastructure, are eligible for consideration as a public-private
71		-	partnership if approved as a project in accordance with section 4-256, as
72		-	amended by this act. [:
73		-	(1) Early childcare, educational, health or housing facilities;
74		-	(2) Transportation systems, including ports, transit-oriented
75		-	development and related infrastructure; and
76		-	(3) Any other kind of facility that may from time to time be
77		-	designated as such by an act of the General Assembly.]
78		-	Sec. 2. Section 4-256 of the general statutes is repealed and the
79		-	following is substituted in lieu thereof (Effective from passage):
80		-	(a) On and after [October 27, 2011] the effective date of this section,
81		-	and prior to January 1, [2020] 2027, the Governor [shall] may approve
82		-	not more than five projects to be implemented as public-private
83		-	[partnership projects] partnerships. The Governor shall not approve any
84		-	such project unless the Governor finds that the project will result in job
85		-	creation and economic growth. [Any agency seeking to establish a
86		-	public-private partnership shall, after] After consultation with the
87		-	Commissioners of Economic and Community Development [,] and
88		-	Administrative Services, [and Transportation,] the State Treasurer and
89		-	the Secretary of the Office of Policy and Management, the department
90		-	may submit one or more projects to the Governor for approval. Substitute Senate Bill No. 920
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92		-	Public Act No. 21-99 4 of 14
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94		-	(b) In determining whether a project is suitable for a public-private
95		-	partnership agreement, the [agency] department shall conduct an
96		-	analysis of the feasibility, desirability and the convenience to the public
97		-	of the project and whether the project furthers the public policy goals of
98		-	section 4-255, as amended by this act, this section and sections 4-257 to
99		-	4-263, inclusive, as amended by this act, and section 3 of this act, taking
100		-	into consideration the following, when applicable:
101		-	(1) The essential characteristics of the proposed facility;
102		-	(2) The [projected] anticipated demand for use of the facility and its
103		-	economic and social impact on the community and the state;
104		-	(3) The technical function and feasibility of the project and its
105		-	conformity with the state plan of conservation and development
106		-	adopted under chapter 297;
107		-	(4) The benefit to [clients of the agency and the public as a whole] the
108		-	state and its citizens;
109		-	(5) An analysis of the value provided for the cost of the project, that
110		-	at a minimum includes a cost-benefit analysis, an assessment of
111		-	opportunity costs and any nonfinancial benefits of the project;
112		-	(6) Any operational or technological risk associated with the
113		-	proposed project;
114		-	(7) The cost of the investment to be made and the economic and
115		-	financial feasibility of the project;
116		-	(8) An analysis of public versus private financing on a present value
117		-	basis, and the eligibility of the project for other public funds from local
118		-	or federal government sources;
119		-	(9) The impact to the state's finances of undertaking the project by the
120		-	[agency] department; and Substitute Senate Bill No. 920
	76	+	(1) Early childcare, educational, health or housing facilities; 47
	77	+	(2) Transportation systems, including ports, transit-oriented 48
	78	+	development and related infrastructure; and 49
	79	+	(3) Any other kind of facility that may from time to time be 50
	80	+	designated as such by an act of the General Assembly. 51
	81	+	Sec. 2. Section 4-256 of the general statutes is repealed and the 52
	82	+	following is substituted in lieu thereof (Effective from passage): 53
	83	+	(a) On and after October 27, 2011, [and prior to January 1, 2020,] the 54
	84	+	Governor shall approve not more than five projects to be implemented 55
	85	+	as public-private partnership projects. The Governor shall not approve 56
	86	+	any such project unless the Governor finds that the project will result in 57
	87	+	job creation and economic growth. Any agency seeking to establish a 58
	88	+	public-private partnership shall, after consultation with the 59
	89	+	Commissioners of Economic and Community Development, 60
	90	+	Administrative Services and Transportation, the State Treasurer and the 61
	91	+	Secretary of the Office of Policy and Management, submit one or more 62
	92	+	projects to the Governor for approval. 63
	93	+	(b) In determining whether a project is suitable for a public-private 64
	94	+	partnership agreement, the agency shall conduct an analysis of the 65
	95	+	feasibility, desirability and the convenience to the public of the project 66
	96	+	and whether the project furthers the public policy goals of section 4-255, 67
	97	+	as amended by this act, this section and sections 4-257 to 4-263, 68
	98	+	inclusive, taking into consideration the following, when applicable: 69
	99	+	(1) The essential characteristics of the proposed facility; 70
	100	+	(2) The projected demand for use of the facility and its economic and 71
	101	+	social impact on the community and the state; 72
	102	+	(3) The technical function and feasibility of the project and its 73
	103	+	conformity with the state plan of conservation and development 74
	104	+	adopted under chapter 297; 75 Substitute Bill No. 920
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122		-	Public Act No. 21-99 5 of 14
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124		-	(10) The advantages and disadvantages of using a public-private
125		-	partnership rather than having the [state agency] department perform
126		-	the function.
127		-	(c) [An agency] The department shall not [include] submit a project
128		-	to the Governor for approval for a public-private partnership solely
129		-	based upon the amount of potential revenue generated by such project.
130		-	(d) [Any agency submitting] If the department submits a project in
131		-	accordance with subsection (a) of this section, the department shall at
132		-	the same time transmit, in accordance with the provisions of section 11-
133		-	4a, a copy of its submission to the joint standing committees of the
134		-	General Assembly having cognizance of matters relating to finance,
135		-	revenue and bonding and appropriations and the budgets of state
136		-	agencies and transportation. Said committees shall hold public hearings
137		-	on any such submission.
138		-	(e) The Governor shall notify the [agency] department when a project
139		-	has been approved [as] for a public-private partnership. [project.]
140		-	(f) On or before January 15, [2013] 2022, and annually thereafter, the
141		-	[Governor] department shall report, in accordance with the provisions
142		-	of section 11-4a, to the General Assembly concerning the status of the
143		-	public-private partnerships established under this section.
144		-	Sec. 3. (NEW) (Effective from passage) (a) As used in this section,
145		-	"development and inspection services" has the same meaning as
146		-	described in subsection (a) of section 13a-95c of the general statutes.
147		-	(b) For any public-private partnership, the Commissioner of
148		-	Transportation shall make best efforts to perform development and
149		-	inspection services using, where such employees are available,
150		-	department employees and reducing, and where possible eliminating,
151		-	the dependency on consultants. Any contract the department enters into
152		-	with a consultant to perform development and inspection services with Substitute Senate Bill No. 920
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154		-	Public Act No. 21-99 6 of 14
	111	+	(4) The benefit to clients of the agency and the public as a whole; 76
	112	+	(5) An analysis of the value provided for the cost of the project, that 77
	113	+	at a minimum includes a cost-benefit analysis, an assessment of 78
	114	+	opportunity costs and any nonfinancial benefits of the project; 79
	115	+	(6) Any operational or technological risk associated with the 80
	116	+	proposed project; 81
	117	+	(7) The cost of the investment to be made and the economic and 82
	118	+	financial feasibility of the project; 83
	119	+	(8) An analysis of public versus private financing on a present value 84
	120	+	basis, and the eligibility of the project for other public funds from local 85
	121	+	or federal government sources; 86
	122	+	(9) The impact to the state's finances of undertaking the project by the 87
	123	+	agency; and 88
	124	+	(10) The advantages and disadvantages of using a public-private 89
	125	+	partnership rather than having the state agency perform the function. 90
	126	+	(c) An agency shall not include a project solely based upon the 91
	127	+	amount of potential revenue generated by such project. 92
	128	+	(d) Any agency submitting a project in accordance with subsection 93
	129	+	(a) of this section shall at the same time transmit, in accordance with the 94
	130	+	provisions of section 11-4a, a copy of its submission to the joint standing 95
	131	+	committees of the General Assembly having cognizance of matters 96
	132	+	relating to finance, revenue and bonding and appropriations and the 97
	133	+	budgets of state agencies. Said committees shall hold public hearings on 98
	134	+	any such submission. 99
	135	+	(e) The Governor shall notify the agency when a project has been 100
	136	+	approved as a public-private partnership project. 101
	137	+	(f) On or before January 15, 2013, and annually thereafter, the 102
	138	+	Governor shall report, in accordance with the provisions of section 11-103 Substitute Bill No. 920
155	139
156		-	regards to a public-private partnership shall contain a provision that
157		-	provides for training department employees in the process for bidding
158		-	and managing public-private partnerships. Employees may be
159		-	appointed to durational positions to reduce the need for development
160		-	and inspection services to be performed by consultants. Such employees
161		-	may be appointed as engineers to durational positions without
162		-	examination provided such employees have met the education,
163		-	knowledge and training requirements required by the Department of
164		-	Administrative Services job classification.
165		-	(c) Not later than February first of each year following the
166		-	establishment of a public-private partnership, and annually thereafter,
167		-	the department, in consultation with representatives selected by the
168		-	exclusive bargaining agents of the department's employees, shall
169		-	submit a report, in accordance with the provisions of section 11-4a of the
170		-	general statutes, to the joint standing committee of the General
171		-	Assembly having cognizance of matters relating to transportation that
172		-	analyzes the progress of any public-private partnerships and the
173		-	performance of development and inspection services by any consultant.
174		-	If the report finds that a consultant is unable to complete such services
175		-	within the timeframe or amount budgeted as stated in the agreement
176		-	with the consultant, the department may terminate the agreement and
177		-	exercise any other rights and remedies that may be available to it at law
178		-	or in equity.
179		-	(d) Not later than six months after the completion of any public-
180		-	private partnership, the department, in consultation with
181		-	representatives selected by the exclusive bargaining agents of the
182		-	department's employees, shall submit a report, in accordance with the
183		-	provisions of section 11-4a of the general statutes, to the joint standing
184		-	committee of the General Assembly having cognizance of matters
185		-	relating to transportation that evaluates the effectiveness of the public-
186		-	private partnership and makes recommendations regarding the Substitute Senate Bill No. 920
187	140
188		-	Public Act No. 21-99 7 of 14
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190		-	continued use of public-private partnerships.
191		-	Sec. 4. Section 4-257 of the general statutes is repealed and the
192		-	following is substituted in lieu thereof (Effective from passage):
193		-	(a) Notwithstanding the provisions of section 4b-91 and chapter 242,
194		-	the [agency] department shall, when it determines appropriate, provide
195		-	for a process of prequalification for private entities seeking to enter a
196		-	public-private partnership. Any such process shall include public notice
197		-	of the prequalification process and the requirements and the criteria the
198		-	[agency] department will use in determining whether the private entity
199		-	qualifies for prequalification. [Any agency that] If the department has
200		-	determined that such a prequalification process is appropriate for the
201		-	project, the department shall allow only prequalified private entities to
202		-	be a proposer. The [agency] department may charge a reasonable
203		-	application fee for prequalification.
204		-	(b) In addition to any requirements set forth in the request for
205		-	proposals, request for qualifications or bid solicitation for a [public-
206		-	private partnership] project, in order to be prequalified, a private entity
207		-	shall:
208		-	(1) Have available such lawful sources of funding, capital, securities
209		-	or other financial resources that, in the judgment of the [agency]
210		-	department in consultation with the Department of Economic and
211		-	Community Development, are necessary to carry out the [public-private
212		-	partnership] project if such private entity is selected as the contractor;
213		-	(2) Possess either through its staff, subcontractors, a consortium or
214		-	joint venture agreement the managerial, organizational, technical
215		-	capacity and experience in the type of project for which the proposer is
216		-	submitting a bid proposal;
217		-	(3) Be qualified to lawfully conduct business in this state; and Substitute Senate Bill No. 920
	145	+	4a, to the General Assembly concerning the status of the public-private 104
	146	+	partnerships established under this section. 105
	147	+	Sec. 3. (NEW) (Effective from passage) There shall be within the 106
	148	+	Department of Transportation the Office of Innovative Finance and 107
	149	+	Project Delivery. The Commissioner of Transportation shall assign 108
	150	+	personnel to the office as required for the office to fulfill the duties of 109
	151	+	this section. The office shall: (1) Evaluate opportunities to use innovative 110
	152	+	financing and risk management to deliver transportation projects, (2) 111
	153	+	focus on the effective and accelerated delivery of transportation projects 112
	154	+	to assure the development and maintenance of a safe and efficient 113
	155	+	transportation system, and (3) recommend opportunities for public-114
	156	+	private partnerships to the commissioner. 115
	157	+	This act shall take effect as follows and shall amend the following
	158	+	sections:
218	159
219		-	Public Act No. 21-99 8 of 14
	160	+	Section 1 from passage 4-255
	161	+	Sec. 2 from passage 4-256
	162	+	Sec. 3 from passage New section
220	163
221		-	(4) Certify that no director, officer, partner, owner or other individual
222		-	with direct and significant control over the policy of the private entity
223		-	has been convicted of corruption or fraud in any jurisdiction of the
224		-	United States.
225		-	Sec. 5. Section 4-258 of the general statutes is repealed and the
226		-	following is substituted in lieu thereof (Effective from passage):
227		-	(a) [Any agency seeking to enter into a public-private partnership]
228		-	The department shall conduct a competitive procurement process for
229		-	the selection of a contractor prior to entering a public-private
230		-	partnership. The [agency] department shall use, where appropriate, in
231		-	accordance with the nature and scope of the project, (1) competitive
232		-	bidding, as defined in section 4e-1, or (2) competitive negotiation, as
233		-	defined in section 4a-50.
234		-	(b) Prior to beginning a competitive procurement process in
235		-	accordance with subsection (a) of this section, [an agency] the
236		-	department may issue a request for information to obtain information
237		-	regarding potential [public-private partnership] projects.
238		-	(c) In conducting the competitive procurement process, the [agency]
239		-	department shall meet the following requirements in addition to the
240		-	requirements set forth in subsection (a) of this section:
241		-	(1) Contain, within the bid specifications, a detailed description of the
242		-	scope of the proposed [public-private partnership] project;
243		-	(2) Contain the material terms and conditions of the terms applicable
244		-	to the procurement and any contract that results;
245		-	(3) Provide public notice of the invitation to bid, request for proposal
246		-	or request for information not less than thirty days prior to the due date,
247		-	unless the [agency head] Commissioner of Transportation makes a
248		-	written determination that a lesser time period is appropriate and will Substitute Senate Bill No. 920
249	164
250		-	Public Act No. 21-99 9 of 14
251		-
252		-	preserve the competitive nature of the procurement; and
253		-	(4) Publish the evaluation and selection criteria and [shall] include a
254		-	determination of which proposals best serve the public purpose of
255		-	sections 4-255 to 4-263, inclusive, as amended by this act, and section 3
256		-	of this act.
257		-	(d) The [agency] department may pay a stipend to an unsuccessful
258		-	proposer, in an amount and on the terms and conditions determined by
259		-	the [agency] department as reasonable, if (1) the [agency] department
260		-	cancels the procurement process less than thirty days prior to the date
261		-	the bid or proposal is due, or (2) the unsuccessful proposer submits a
262		-	proposal that is responsive and meets all the requirements established
263		-	by the [agency] department for the [public-private partnership] project.
264		-	The [agency] department may require the proposer to grant the [agency]
265		-	department the right to use any work product contained in any
266		-	unsuccessful proposal, or in the event of a cancelled procurement as set
267		-	forth in this section, any work product developed prior to cancellation,
268		-	including designs, processes, technologies and information. All
269		-	conditions for a stipend shall be clearly set forth in the request for
270		-	information, bid solicitation, request for proposal or request for
271		-	qualifications.
272		-	(e) The [agency] department may retain financial, legal and other
273		-	consultants and experts to assist in the procurement, evaluation and
274		-	negotiation of public-private partnerships and for the development of
275		-	eligible facilities in accordance with sections 4-255 to 4-263, inclusive, as
276		-	amended by this act, and section 3 of this act. Such services may be
277		-	procured through a contract with a private entity or with another state
278		-	agency.
279		-	Sec. 6. Section 4-259 of the general statutes is repealed and the
280		-	following is substituted in lieu thereof (Effective from passage): Substitute Senate Bill No. 920
281		-
282		-	Public Act No. 21-99 10 of 14
283		-
284		-	(a) Any partnership agreement executed in accordance with the
285		-	provisions of sections 4-255 to 4-263, inclusive, as amended by this act,
286		-	and section 3 of this act, shall include, but not be limited to, the following
287		-	terms and conditions:
288		-	(1) The term of the agreement, which shall be for a period not to
289		-	exceed fifty years from the date of the full execution of the partnership
290		-	agreement;
291		-	(2) A complete description of the facility to be developed and the
292		-	functions to be performed;
293		-	(3) The terms of the financing, development, design, improvement,
294		-	maintenance, operation and administration of the facility;
295		-	(4) The rights the state, the contractor, or both, have, if any, in revenue
296		-	from the financing, development, design, improvement, maintenance,
297		-	operation or administration of the facility;
298		-	(5) The minimum quality standards applicable to the project for
299		-	development, design, improvement, maintenance, operation or
300		-	administration of the facility, including performance criteria, incentives
301		-	and disincentives;
302		-	(6) The compensation of the contractor, including the extent to which
303		-	and the terms upon which a contractor may charge fees to individuals
304		-	and entities for the use of the facility, but in no event shall such fee
305		-	extend to the imposition of tolls on the highways of this state unless such
306		-	tolls are specifically approved by the General Assembly;
307		-	(7) The furnishing of an annual independent audit report to the
308		-	[agency] department covering all aspects of the partnership agreement;
309		-	(8) Performance and payment bonds or other security deemed
310		-	suitable by the [agency] department; Substitute Senate Bill No. 920
311		-
312		-	Public Act No. 21-99 11 of 14
313		-
314		-	(9) One or more policies of public liability insurance in such amounts
315		-	determined by the [agency] department to ensure coverage of tort
316		-	liability for the public and employees of the contractor and to provide
317		-	for the continued operation of the [partnership] project;
318		-	(10) A reverter of the project to the state upon the conclusion or
319		-	termination of the partnership agreement;
320		-	(11) The rights and remedies available to the [agency] department for
321		-	a material breach of the partnership agreement by the contractor or
322		-	private entity or if there is a material default;
323		-	(12) Identification of funding sources to be used to fully fund the
324		-	capital, operation, maintenance or other expenses under the agreement;
325		-	and
326		-	(13) Any other provision determined to be appropriate by the
327		-	[agency] department.
328		-	(b) No partnership agreement shall contain any noncompete
329		-	provisions limiting the ability of the state to perform its functions.
330		-	(c) No user fees may be imposed by the contractor except as set forth
331		-	in a partnership agreement.
332		-	(d) The partnership agreement shall not be construed as waiving the
333		-	sovereign immunity of the state or as a grant of sovereign immunity to
334		-	the contractor or any private entity.
335		-	(e) No contractor shall be liable for the debts or obligations of the state
336		-	or the [agency] department, unless the partnership agreement provides
337		-	that such contractor is liable under such agreement.
338		-	Sec. 7. Section 4-260 of the general statutes is repealed and the
339		-	following is substituted in lieu thereof (Effective from passage): Substitute Senate Bill No. 920
340		-
341		-	Public Act No. 21-99 12 of 14
342		-
343		-	The [state agency] department or the state may apply for and accept
344		-	funds from local or federal government and other sources of financial
345		-	aid to further the purposes of sections 4-255 to 4-263, inclusive, as
346		-	amended by this act, and section 3 of this act, and to fund public-private
347		-	partnerships entered into in accordance with said sections.
348		-	Sec. 8. Section 4-261 of the general statutes is repealed and the
349		-	following is substituted in lieu thereof (Effective from passage):
350		-	(a) Each [public-private partnership] project shall either be subject to
351		-	the prevailing wage requirements pursuant to section 31-53 or the rate
352		-	established by the use of a project labor agreement. The [agency]
353		-	department shall provide notice of which requirement applies prior to
354		-	soliciting bids or proposals for such [public-private partnership] project.
355		-	(b) Each [public-private partnership] project shall comply with: (1)
356		-	The state's environmental policy requirements as set forth in sections
357		-	22a-1 and 22a-1a, (2) the requirements of the set-aside program for small
358		-	contractors as set forth in section 4a-60g, and (3) any applicable
359		-	permitting or inspection requirements for projects of a similar type,
360		-	scope and size as set forth in the general statutes or the local ordinances
361		-	of the municipality where the project is to be located.
362		-	(c) [Any agency that is subject to section 4e-16] The department shall
363		-	comply with the provisions of section 4e-16, provided, notwithstanding
364		-	the provisions of subsection (a) of section 4e-16, [any agency that] if the
365		-	department enters into a partnership agreement concerning the
366		-	operations or maintenance of a state facility that meets the definition of
367		-	a privatization contract, as defined in section 4e-1, the department shall
368		-	be subject to the requirements of section 4e-16 regardless of whether
369		-	such services are currently privatized.
370		-	Sec. 9. Section 4-262 of the general statutes is repealed and the
371		-	following is substituted in lieu thereof (Effective from passage): Substitute Senate Bill No. 920
372		-
373		-	Public Act No. 21-99 13 of 14
374		-
375		-	(a) In addition to any other remedy available to the state, in the event
376		-	of a material default by the contractor, the state may elect to assume the
377		-	responsibilities and duties of the contractor of the [public-private
378		-	partnership] project, and in such case, the state shall succeed to all of the
379		-	rights, title and interest in such [partnership] project, subject to any liens
380		-	on revenue previously granted by the contractor to any person
381		-	providing financing thereof.
382		-	(b) [Any state agency having the power of condemnation under state
383		-	law] The department may exercise [such] the power of condemnation to
384		-	acquire the [public-private partnership] project in the event of a material
385		-	default by the contractor. Any person who has provided financing for
386		-	the [public-private partnership] project, and the contractor, to the extent
387		-	of its capital investment, may participate in the condemnation
388		-	proceedings with the standing of a property owner.
389		-	(c) The [agency] department may terminate, with cause, the
390		-	partnership agreement and exercise any other rights and remedies that
391		-	may be available to it at law or in equity.
392		-	(d) The state may make or cause to be made any appropriate claims
393		-	under the maintenance, performance or payment bonds, or lines of
394		-	credit, as set forth in the partnership agreement.
395		-	(e) In the event the state elects to assume the responsibility and duties
396		-	of a [partnership] project pursuant to subsection (a) of this section, the
397		-	[agency] department may develop or operate the [public-private
398		-	partnership] project, impose user fees, impose and collect lease
399		-	payments for the use thereof and comply with any service contracts as
400		-	if it were the contractor. Any revenue that is subject to a lien shall be
401		-	collected for the benefit of and paid to secured parties, as their interests
402		-	may appear, to the extent necessary to satisfy the contractor's
403		-	obligations to secured parties, including the maintenance of reserves.
404		-	Such liens shall be correspondingly reduced and, when paid off, Substitute Senate Bill No. 920
405		-
406		-	Public Act No. 21-99 14 of 14
407		-
408		-	released. Before any payments to, or for the benefit of, secured parties,
409		-	the [agency] department may use revenue to pay current operation and
410		-	maintenance costs of the qualifying project, including compensation to
411		-	the [agency] department for its services in operating and maintaining
412		-	the [public-private partnership] project. The right to receive such
413		-	payment, if any, shall be considered just compensation for the project.
414		-	The full faith and credit of the [agency] department shall not be pledged
415		-	to secure any financing of the contractor by the election to take over such
416		-	project. The assumption of the operation of the [partnership] project
417		-	shall not obligate the [agency] department to pay any obligation of the
418		-	contractor from sources other than revenue.
419		-	Sec. 10. Section 4-263 of the general statutes is repealed and the
420		-	following is substituted in lieu thereof (Effective from passage):
421		-	Any state property developed, operated or held by a private entity
422		-	pursuant to a partnership agreement shall be exempt from municipal
423		-	property tax.
	165	+	TRA Joint Favorable Subst.
	166	+	APP Joint Favorable
424	167