99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3277

 

Introduced 2/19/2016, by Sen. Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.875 new

    Creates the Public-Private Partnerships Act. Defines terms. Establishes the Office of Public-Private Partnerships within the Executive Branch. Provides that the Office shall provide public agencies, units of local government, and private entities assistance and expertise on public-private partnership agreements. Allows any public agency, with approval from the Office, to enter into a public-private partnership agreement with any private entity for improving transportation assets, public buildings, public services, or other public assets. Provides that within 90 days after the effective date of the Act, the Office shall establish procedures and guidelines for the submission, evaluation, and approval of projects. Creates the Local Alternative Procurement Fund as a special fund in the State treasury. Provides that money in the Local Alternative Procurement Fund shall be appropriated to public agencies and shall be used for the development, financing, and operation of transportation assets, public buildings, public services, and other public assets. Makes a corresponding change in the State Finance Act. Effective July 1, 2016.


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A BILL FOR

 

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1    AN ACT concerning public private partnership agreements.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Public
5Private Partnerships Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Office" means the Office of Public-Private Partnerships.
8    "P3 project" means a contractual agreement between a public
9entity and a private entity that:
10        (1) transfers the responsibility of a facility's
11    engineering, construction, operation, or maintenance to
12    the private sector for a defined period of time;
13        (2) allows the private sector to perform by contract a
14    service previously provided by the public sector; and
15        (3) ensures the private entity receives payments from
16    either existing revenue sources or through the collection
17    of new tolls or user fees.
18    "Private entity" means a person, entity, group, or
19organization that is not the federal government, the State, or
20other public agency.
21    "Project" means an undertaking by a private entity or a
22public agency to provide or improve a public asset, public
23building, public service, or transportation asset which is

 

 

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1totally or partially located within the State.
2    "Public agency" means any municipality or unit of local
3government, any public school district, any public college or
4university, any public building commission, the State, an
5instrumentality or administrative agency, or any other agency
6of the State or of the United states, or of any other state,
7any political subdivision of another state, and any combination
8of the above under an intergovernmental agreement which
9includes provisions for a governing body of the agency created
10by the agreement.
11    "Public asset" means any proposed existing park, clean
12water system, waste water system, energy asset,
13telecommunications asset, transportation asset, or any other
14asset owned by a public agency.
15    "Public building" means any proposed or existing school,
16community center, fire station, police station, community
17college, university, hospital, library, or other building
18owned by a public agency.
19    "Public-private partnership agreement" means a contract
20for a project which transfers rights for the use or control, in
21whole or in part, of a public building, public service, public
22asset, or transportation asset, by a public agency to a
23development entity for a definite term during which the
24development entity will provide the project to the public
25agency in return for the right to receive all or a portion of
26the revenue generated from the use of the facility, or other

 

 

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1payment, such as the following services: operations and
2maintenance; revenue collection; user fee collection or
3enforcement; design; construction; development; and other
4activities that expand or enhance existing or new public
5buildings, public assets, public services, or transportation
6assets.
7    "Public service" means any proposed or existing service
8performed or provided by a public agency or private entity.
9    "Transportation asset" means a proposed or existing road,
10toll highway, bridge, tunnel, overpass, ferry, bus way,
11guideway, public transportation facility, vehicle parking
12facility, port facility, commercial and public navigation lock
13and dam, commercial waterway, multimodal transportation
14facility, airport, station, hub, terminal or similar facility
15used or to be used for the transportation of persons, animals,
16or goods, together with any buildings, structures, parking
17areas, appurtenances, intelligent transportation systems, and
18other property needed to operate or related to the operation of
19the transportation facility. The term includes any
20improvements or substantial enhancements or modifications to
21an existing transportation facility.
 
22    Section 10. The Office of Public-Private Partnerships.
23    (a) The Office of Public-Private Partnerships is hereby
24created within the Executive branch.
25    (b)The Office shall have the following duties:

 

 

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1        (1) Create an open platform to promote the development,
2    financing, and operation of public-private partnership
3    agreements.
4        (2) Provide assistance and expertise on public-private
5    partnership agreements to other public agencies, units of
6    local government, and private entities, in areas
7    including, but not limited to:
8            (A) analyzing the benefits and costs, including
9        various finance options, of potential P3 projects;
10            (B) providing sample and template public-private
11        partnership agreement contracts;
12            (C) discussing developing trends in other states
13        and countries; and
14            (D) providing other financial and legal
15        assistance.
16        (3) Develop and maintain a database of potential P3
17    projects in this State as well as all proposed, ongoing,
18    and completed P3 projects.
19        (4) Promote standardized methodologies and other
20    uniform practices, transparency, and information sharing
21    in public-private partnership agreements.
22        (5) At least once a year, conduct workshops or other
23    outreach events with appropriate federal, State, or local
24    government entities to attract private entities into the
25    field of public-private partnership agreements and to
26    measure the private sector's interest in the agreements,

 

 

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1    gauge possible future risks of entering into the
2    agreements, discuss possible allocations of those risks,
3    and other topics that may affect the ability of
4    public-private partnerships to succeed in this State.
5        (6) Adopt rules as necessary to carry out the duties
6    and purposes of this Act.
 
7    Section 15. Public-private partnership agreements.
8    (a) Any public agency may enter into a public-private
9partnership agreement with any private entity for improving
10transportation assets, public buildings, public services, or
11other public assets as provided in this Act.
12    (b) The Office shall review and approve public-private
13partnership projects in this State, except those entered into
14under the Public-Private Partnerships for Transportation Act.
15    (c) Within 90 days after the effective date of this Act,
16the Office shall establish:
17        (1) Procedures by which a public agency can submit a
18    project for potential financing through a public-private
19    partnership agreement, which shall require submission of a
20    project statement that describes the rationale behind the
21    project, contains a site analysis and an initial project
22    design, identifies funding sources and cost estimates,
23    provides scheduled times for major events, and identifies
24    other public agencies potentially impacted by the project.
25        (2) Clearly defined requirements for submitting

 

 

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1    projects for approval, including, but not limited to, a
2    requirement that a proposal demonstrates that:
3            (A) the project is part of a long-term plan of the
4        public agency;
5            (B) the project is not currently in a bid process
6        under traditional procurement methods; and
7            (C) local, State, or federal officials have had an
8        opportunity to weigh in on the project, or the local
9        jurisdiction of the public agency has voted to submit
10        the project.
11        (3) Guidelines for allowing more than one public agency
12    to enter into a single public-private partnership.
13        (4) Clear standards for project approval, including,
14    but is not limited to:
15            (A) Criteria for the project assessment,
16        consideration, and final decision. The Office shall
17        label the project as either not eligible for a
18        public-private agreement, eligible to be joined with
19        another P3 project, or eligible as an individual P3
20        project. If the project is approved, the public agency
21        has 60 days to acquire title to the site, or rights of
22        use to the site, to carry out the project. The Office
23        may grant an extension for a situation beyond the
24        public agency's control, as determined by the Office.
25        If the project is deemed not eligible for a
26        public-private agreement, the public agency may

 

 

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1        re-submit the same project the following fiscal year.
2            (B) A requirement that the Office shall evaluate
3        and render a final decision within 6 months of
4        submission of the project to the Office.
5            (C) A requirement that the Office shall make public
6        all findings of the assessment, including the final
7        score and category of the project, rationale behind the
8        decision, sources of funding, comparisons to similar
9        projects, and any areas of concern.
10            (D) A requirement that the Office shall submit an
11        annual report to the Governor and the General Assembly
12        detailing all projects evaluated, adopted, and
13        completed.
14    (d) All P3 projects under this Section shall be subject to
15any applicable planning requirements, including, but not
16limited to, land use planning, regional planning,
17transportation planning, and environmental compliance
18requirements.
19    (e) The net proceeds, if any, arising out of a P3 project
20shall be deposited into the Local Alternative Procurement Fund,
21a fund created as a special fund in the State treasury. All
22moneys in the Local Alternative Procurement Fund shall be
23appropriated to public agencies and shall be used for the
24development, financing, and operation of transportation
25assets, public buildings, public services, or other public
26assets under this Act.
 

 

 

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1    Section 900. The State Finance Act is amended by adding
2Section 5.875 as follows:
 
3    (30 ILCS 105/5.875 new)
4    Sec. 5.875. The Local Alternative Procurement Fund.
 
5    Section 999. Effective date. This Act takes effect July 1,
62016.