Bill Text: IL SB3277 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2016-04-22 - Rule 3-9(a) / Re-referred to Assignments [SB3277 Detail]

Download: Illinois-2015-SB3277-Introduced.html

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

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totally or partially located within the State.
"Public agency" means any municipality or unit of local
government, any public school district, any public college or
university, any public building commission, the State, an
instrumentality or administrative agency, or any other agency
of the State or of the United states, or of any other state,
any political subdivision of another state, and any combination
of the above under an intergovernmental agreement which
includes provisions for a governing body of the agency created
by the agreement.
"Public asset" means any proposed existing park, clean
water system, waste water system, energy asset,
telecommunications asset, transportation asset, or any other
asset owned by a public agency.
"Public building" means any proposed or existing school,
community center, fire station, police station, community
college, university, hospital, library, or other building
owned by a public agency.
"Public-private partnership agreement" means a contract
for a project which transfers rights for the use or control, in
whole or in part, of a public building, public service, public
asset, or transportation asset, by a public agency to a
development entity for a definite term during which the
development entity will provide the project to the public
agency in return for the right to receive all or a portion of
the revenue generated from the use of the facility, or other

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

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

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

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

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re-submit the same project the following fiscal year.
(B) A requirement that the Office shall evaluate
and render a final decision within 6 months of
submission of the project to the Office.
(C) A requirement that the Office shall make public
all findings of the assessment, including the final
score and category of the project, rationale behind the
decision, sources of funding, comparisons to similar
projects, and any areas of concern.
(D) A requirement that the Office shall submit an
annual report to the Governor and the General Assembly
detailing all projects evaluated, adopted, and
completed.
(d) All P3 projects under this Section shall be subject to
any applicable planning requirements, including, but not
limited to, land use planning, regional planning,
transportation planning, and environmental compliance
requirements.
(e) The net proceeds, if any, arising out of a P3 project
shall be deposited into the Local Alternative Procurement Fund,
a fund created as a special fund in the State treasury. All
moneys 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, or other public
assets under this Act.

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Section 900. The State Finance Act is amended by adding
Section 5.875 as follows:
(30 ILCS 105/5.875 new)
Sec. 5.875. The Local Alternative Procurement Fund.
Section 999. Effective date. This Act takes effect July 1,
2016.