SB 920 — AN ACT CONCERNING PUBLIC-PRIVATE PARTNERSHIPS.

(NEW) (Effective from passage) There(a) shallAs beused withinin thethis Departmentsection, of"development Transportationand inspection services" has the Officesame meaning as described in subsection (a) of Innovativesection Finance13a-95c andof Projectthe Delivery.general statutes.

The(b) CommissionerFor ofany Transportationpublic-private shallpartnership, assign personnel to the officeCommissioner asof requiredTransportation forshall themake officebest efforts to fulfillperform thedevelopment duties of thissection.Theoffice shall:(1)Evaluateopportunitiestouseinnovative financing and riskinspection managementservices tousing, deliverwhere transportationsuch projects,employees (2)are focusavailable, ondepartment theemployees effective and acceleratedreducing, deliveryand ofwhere transportationpossible projectseliminating, tothedependency assureonconsultants.Any thecontract developmentthedepartment andentersinto maintenancewith of a safeconsultant andto efficientperform transportationdevelopment system, and (3)inspection recommendservices opportunitieswith forPublic public-Act privateNo. partnerships to the commissioner.

This21-99 act5 shallof take14 effectSubstitute asSenate followsBill andNo. shall amend the following sections:

from920 passageregards Sectionto 1a 4-255public-private Sec.partnership shall contain a provision that provides for training department employees in the process for bidding and managing public-private partnerships.

2Employees frommay passagebe 4-256appointed Sec.to durational positions to reduce the need for development andinspectionservicesto beperformedby consultants.Such employees may be appointed as engineers to durational positions without examination provided such employees have met the education, knowledge and training requirements required by the Department of Administrative Services job classification.

3(c) fromNot passagelater Newthan sectionFebruary TRAfirst Jointof Favorableeach Subst.year following the establishment of a public-private partnership, and annually thereafter, the department, in consultation with representatives selected by the exclusive bargaining agents of the department's employees, shall submit a report, inaccordance withthe provisionsofsection11-4aof the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to transportation that analyzes the progress of any public-private partnerships and the performance of development and inspection services by any consultant.

APPIf Jointthe Favorablereport LCOfinds {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00920-that 5a ofconsultant 5is R02-SB.docxunable }to complete such services within the timeframe or amount budgeted as stated in the agreement with the consultant, the department may terminate the agreement and exercise any other rights and remedies that may be available to it at law or in equity.

(d) Not later than six months after the completion of any public- private partnership, the department, in consultation with representatives selected by the exclusive bargaining agents of the department's employees, shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to transportation that evaluates the effectiveness of the public- private partnership and makes recommendations regarding the Public Act No.

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920 continued use of public-private partnerships.

Sec.

4.

Section 4-257 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Notwithstanding the provisions of section 4b-91 and chapter 242, the [agency] department shall, when it determines appropriate, provide for a process of prequalification for private entities seeking to enter a public-private partnership.

Any such process shall include public notice of the prequalification process and the requirements and the criteria the [agency] department will use in determining whether the private entity qualifies for prequalification.

[Any agency that] If the department has determined that such a prequalification process is appropriate for the project, the department shall allow only prequalified private entities to be a proposer.

The [agency] department may charge a reasonable application fee for prequalification.

(b) In addition to any requirements set forth in the request for proposals, request for qualifications or bid solicitation for a [public- private partnership] project, in order to be prequalified, a private entity shall:

(1) Have available such lawful sources of funding, capital, securities or other financial resources that, in the judgment of the [agency] department in consultation with the Department of Economic and Community Development,are necessaryto carryoutthe [public-private partnership] project if such private entity is selected as the contractor;

(2) Possess either through its staff, subcontractors, a consortium or joint venture agreement the managerial, organizational, technical capacity and experience in the type of project for which the proposer is submitting a bid proposal;

(3) Be qualified to lawfully conduct business in this state;

and Public Act No.

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920 (4) Certify that no director,officer, partner,owner or other individual with direct and significant control over the policy of the private entity has been convicted of corruption or fraud in any jurisdiction of the United States.

Sec.

5.

Section 4-258 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [Any agency seeking to enter into a public-private partnership] The department shall conduct a competitive procurement process for the selection of a contractor prior to entering a public-private partnership.

The [agency] department shall use, where appropriate, in accordance with the nature and scope of the project, (1) competitive bidding, as defined in section 4e-1, or (2) competitive negotiation, as defined in section 4a-50.

(b) Prior to beginning a competitive procurement process in accordance with subsection (a) of this section, [an agency] the department may issue a request for information to obtain information regarding potential [public-private partnership] projects.

(c) In conducting the competitive procurement process, the [agency] department shall meet the following requirements in addition to the requirements set forth in subsection (a) of this section:

(1)Contain,withinthe bidspecifications,adetaileddescriptionofthe scope of the proposed [public-private partnership] project;

(2) Contain the material terms and conditions of the terms applicable to the procurement and any contract that results;

(3) Provide public notice of the invitation to bid, request for proposal or request for information not less than thirty days prior to the due date, unless the [agency head] Commissioner of Transportation makes a written determination that a lesser time period is appropriate and will Public Act No.

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920 preserve the competitive nature of the procurement;

and (4) Publish the evaluation and selection criteria and [shall] include a determination of which proposals best serve the public purpose of sections 4-255 to 4-263, inclusive, as amended by this act, and section 3 of this act.

(d) The [agency] department may pay a stipend to an unsuccessful proposer, in an amount and on the terms and conditions determined by the [agency] department as reasonable, if (1) the [agency] department cancels the procurement process less than thirty days prior to the date the bid or proposal is due, or (2) the unsuccessful proposer submits a proposal that is responsive and meets all the requirements established by the [agency] department for the [public-private partnership] project.

The[agency]departmentmayrequiretheproposer tograntthe[agency] department the right to use any work product contained in any unsuccessful proposal, or in the event of a cancelled procurement as set forth in this section, any work product developed prior to cancellation, including designs, processes, technologies and information.

All conditions for a stipend shall be clearly set forth in the request for information, bid solicitation, request for proposal or request for qualifications.

(e) The [agency] department may retain financial, legal and other consultants and experts to assist in the procurement, evaluation and negotiation of public-private partnerships and for the development of eligible facilities in accordance with sections 4-255 to 4-263, inclusive, as amended by this act, and section 3 of this act.

Such services may be procured through a contract with a private entity or with another state agency.

Sec.

6.

Section 4-259 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Public Act No.

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920 (a) Any partnership agreement executed in accordance with the provisions of sections 4-255 to 4-263, inclusive, as amended by this act, andsection3ofthisact,shallinclude,butnotbelimitedto,thefollowing 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) A complete description of the facility to be developed and the functions to be performed;

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

(4)The rightsthestate,thecontractor,orboth,have,ifany,inrevenue from the financing, development, design, improvement, maintenance, operation or administration of the facility;

(5) 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) 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, but in no event shall such fee extendtotheimpositionoftollsonthehighwaysofthisstateunlesssuch tolls are specifically approved by the General Assembly;

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

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

Public Act No.

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920 (9) One or more policies of public liability insurance in such amounts determined by the [agency] department 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) A reverter of the project to the state upon the conclusion or termination of the partnership agreement;

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

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

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

(b) No partnership agreement shall contain any noncompete provisions limiting 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)Nocontractorshallbeliableforthedebtsorobligationsofthestate or the [agency] department, unless the partnership agreement provides that such contractor is liable under such agreement.

Sec.

7.

Section 4-260 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Public Act No.

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920 The [state agency] department or the state may apply for and accept funds from local or federal government and other sources of financial aid to further the purposes of sections 4-255 to 4-263, inclusive, as amended by this act, and section 3 of this act, and to fund public-private partnerships entered into in accordance with said sections.

Sec.

8.

Section 4-261 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(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] department shall provide notice of which requirement applies prior to soliciting bidsor proposalsfor such [public-private partnership]project.

(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 requirementsof 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] The department shall comply with the provisions of section 4e-16, provided, notwithstanding the provisions of subsection (a) of section 4e-16, [any agency that] if the department 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, the department shall be subject to the requirements of section 4e-16 regardless of whether such services are currently privatized.

Sec.

9.

Section 4-262 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

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920 (a) In addition to any other remedy available to the state, in the event of a material default by the contractor, the state may elect to assume the responsibilities and duties of the contractor of the [public-private partnership] project, and in such case, the state shall succeed to all of the rights, title and interest in such [partnership] project, subject to any liens on revenue previously granted by the contractor to any person providing financing thereof.

(b) [Any state agency having the power of condemnation under state law] The department may exercise [such] the power of condemnation to acquire the [public-private partnership]project intheeventofamaterial default by the contractor.

Any person who has provided financing for the [public-private partnership] project, and the contractor, to the extent of its capital investment, may participate in the condemnation proceedings with the standing of a property owner.

(c) The [agency] department may terminate, with cause, the partnership agreement and exercise any other rights and remedies that may be available to it at law or in equity.

(d) The state may make or cause to be made any appropriate claims under the maintenance, performance or payment bonds, or lines of credit, as set forth in the partnership agreement.

(e) In the event the state elects to assume theresponsibility and duties of a [partnership] project pursuant to subsection (a) of this section, the [agency] department may develop or operate the [public-private partnership] project, impose user fees, impose and collect lease payments for the use thereof and comply with any service contracts as if it were the contractor.

Any revenue that is subject to a lien shall be collected for the benefit of and paid to secured parties, as their interests may appear, to the extent necessary to satisfy the contractor's obligations to secured parties, including the maintenance of reserves.

Such liens shall be correspondingly reduced and, when paid off, Public Act No.

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920 released.

Before any payments to, or for the benefit of, secured parties, the [agency] department may use revenue to pay current operation and maintenance costs of the qualifying project, including compensation to the [agency] department for its services in operating and maintaining the [public-private partnership] project.

The right to receive such payment, if any, shall be considered just compensation for the project.

The full faith and credit of the [agency] department shall not be pledged tosecureanyfinancing ofthecontractorbytheelectiontotakeoversuch project.

The assumption of the operation of the [partnership] project shall not obligate the [agency] department to pay any obligation of the contractor from sources other than revenue.

Sec.

10.

Section 4-263 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Any state property developed, operated or held by a private entity pursuant to a partnership agreement shall be exempt from municipal property tax.

Approved June 28, 2021 Public Act No.

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