SB 878 — AN ACT ENHANCING PUBLIC-PRIVATE PARTNERSHIPS.

(5) An analysis of the value provided for the cost of the project, that at a minimum includes a cost-benefit analysis, an assessment of opportunity costs and any nonfinancial benefits of the project;

(6) Any operational or technological risk associated with the proposed project;

(7) The cost of the investment to be made and the economic and financial feasibility of the project;

(8) An analysis of public versus private financing on a present value basis, and the eligibility of the project for other public funds from local or federal government sources;

(9) The impact to the state's finances of undertaking the project by the agency;

and (10) The advantages and disadvantages of using a public-private partnership rather than having the state agency perform the function.

(c) An agency shall not include a project solely based upon the amount of potential revenue generated by such project.

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4442 4 of 8 Governor's Bill No.878 (d) Any agency submitting a project in accordance with subsection (a) of this section shall at the same time transmit, in accordance with the provisions of section 11-4a, a copy of its submission to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and appropriations and the budgets of state agencies.

Said committees shall hold public hearings on any such submission.

(e) The Governor shall notify the agency when a project has been approved as a public-private partnership project.

(f) On or before January [15, 2013] 1, 2020, and annually thereafter, the Governor shall report, in accordance with the provisions of section 11-4a, to the General Assembly concerning the status of the public- private partnerships established under this section.

Sec.

3.

Section 4-259 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):

(a) Any partnership agreement executed in accordance with the provisions of sections 4-255 to 4-263, inclusive, as amended by this act, shall include, but not be limited to, the following terms and conditions:

[(1) The term of the agreement, which shall be for a period not to exceed fifty years from the date of the full execution of the partnership agreement;] [(2)] (1) A complete description of the [facility] project to be developed and the functions to be performed;

[(3)] (2) The terms of the financing, development, design, improvement, maintenance, operation and administration of the [facility] project;

[(4)] (3) The rights the state, the contractor, or both, have, if any, in revenue from the financing, development, design, improvement, maintenance, operation or administration of the [facility] project;

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4442 5 of 8 Governor's Bill No.878 [(5)] (4) The minimum quality standards applicable to the project for development, design, improvement, maintenance, operation or administration, [of the facility,] including performance criteria, incentives and disincentives;

[(6)] (5) The compensation of the contractor, including the extent to which and the terms upon which a contractor may charge fees to individuals and entities for the use of the [facility] project, but in no event shall such fee extend to the imposition of tolls on the highways of this state unless such tolls are specifically approved by the General Assembly;

[(7)] (6) The furnishing of an annual independent audit report to the agency covering all aspects of the partnership agreement;

[(8)] (7) Performance and payment bonds or other security deemed suitable by the agency;

[(9)] (8) One or more policies of public liability insurance in such amounts determined by the agency to ensure coverage of tort liability for the public and employees of the contractor and to provide for the continued operation of the partnership project;

[(10)] (9) A reverter of the project to the state upon the conclusion or termination of the partnership agreement;

[(11)] (10) The rights and remedies available to the agency for a material breach of the partnership agreement by the contractor or private entity or if there is a material default;

[(12)] (11) Identification of funding sources to be used to fully fund the capital, operation, maintenance or other expenses under the agreement;

and [(13)] (12) Any other provision determined to be appropriate by the agency.

(b) [No partnership agreement shall contain any] Any proposed LCO No.

4442 6 of 8 Governor's Bill No.878 noncompete provisions [limiting] shall not limit the ability of the state to perform its functions.

(c) No user fees may be imposed by the contractor except as set forth in a partnership agreement.

(d) The partnership agreement shall not be construed as waiving the sovereign immunity of the state or as a grant of sovereign immunity to the contractor or any private entity.

(e) No contractor shall be liable for the debts or obligations of the state or the agency, unless the partnership agreement provides that such contractor is liable under such agreement.

Sec.

4.

Section 4-261 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):

(a) Each public-private partnership project shall either be subject to the prevailing wage requirements pursuant to section 31-53 or the rate established by the use of a project labor agreement.

The agency shall provide notice of which requirement applies prior to soliciting bids or proposals for such public-private partnership.

(b) Each public-private partnership project shall comply with:

(1) The state's environmental policy requirements as set forth in sections 22a-1 and 22a-1a, (2) the requirements of the set-aside program for small contractors as set forth in section 4a-60g, and (3) any applicable permitting or inspection requirements for projects of a similar type, scope and size as set forth in the general statutes or the local ordinances of the municipality where the project is to be located.

[(c) Any agency that is subject to section 4e-16 shall comply with the provisions of section 4e-16, provided, notwithstanding the provisions of subsection (a) of section 4e-16, any agency that enters into a partnership agreement concerning the operations or maintenance of a state facility that meets the definition of a privatization contract, as defined in section 4e-1, shall be subject to the requirements of section LCO No.

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878 4e-16 regardless of whether such services are currently privatized.] This act shall take effect as follows and shall amend the following sections:

Section 1 July 1, 2019 4-255 Sec.

2 July 1, 2019 4-256 Sec.

3 July 1, 2019 4-259 Sec.

4 July 1, 2019 4-261 Statement of Purpose:

To implement the Governor's budget recommendations.

except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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