Governmental entities, lacking the funds needed to meet public needs, are reaching out to private sector contractors to form partnerships for large projects. Public-private partnerships (P3s) are becoming the rule instead of the exception.
So far, more than 30 states have authorizes P3s through legislation. While states are setting their own rules and parameters, the federal government has turned over responsibility for public-private partnerships to the individual agencies. Thus the existing P3 programs have a variety of different provisions in them.
A few examples of state P3 statutes follow.
California
The State of California has legislation that allows solicited and unsolicited proposals for P3s. Their statutes:
- Authorize agencies to solicit proposals from and enter into agreements with private sector contractors for the design, construction, reconstruction or lease of fee-producing infrastructure, including commuter and light rail systems;
- Preclude use of state funding and limits lease terms to 35 years; and
- Give priority to water supply infrastructure projects that include cost-sharing arrangements that maximize public benefits.
Colorado
The State of Colorado has P3 statues that allow solicited and unsolicited P3 proposals and includes authorization for:
- Creating a statewide tolling enterprise to finance, build, operate and maintain toll highways;
- Giving P3 authority to the Colorado Department of Transportation (DOT) for specific projects, including turnpikes and High Occupancy Toll (HOT) lanes; and
- Operating as a government-owned business within Colorado DOT.
Connecticut
The State of Connecticut has statutes that allow for solicited and unsolicited P3 proposals and also includes authorization for:
Local governments to enter into a P3 to design, build, finance, develop and maintain a public project; and
State agencies to execute partnership agreements for P3 projects.
Delaware
The State of Delaware enacted legislation that encourages solicited and unsolicited proposals for P3 projects for transportation systems. Provisions within the statute include:
- Verbiage stipulating that transportation systems are not limited to horizontal construction of highways, roads and bridges, but will also include airports, transportation facilities, management systems and other transportation-related investments;
- Requirements that legislative approval must occur on a per-project basis; and
- The establishment of a Clean Water Advisory Council that has the authority to consider P3s for water infrastructure.
Texas
Legislators in Texas passed statutes that provide structure and authority regarding P3 projects. The law allows for solicited and unsolicited proposals and designates:
- A process for P3 projects to become qualified as P3 initiatives.
West Virginia
West Virginia legislators passed a law that enables the use of P3s in the development of transportation infrastructure and has provisions that:
- Define transportation P3 projects as any public inland waterway port facility, road, bridge, tunnel, overpass or existing airport; and
- Makes the Division of Highway the coordinating body to solicit and receive proposals.
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