2016 -- H 7340

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LC004016

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC-PRIVATE

TRANSPORTATION PARTNERSHIP ACT

     Introduced By: Representatives Nunes, Hearn, Marcello, Morgan, and Reilly

     Date Introduced: January 27, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 13.1

THE PUBLIC-PRIVATE TRANSPORTATION PARTNERSHIP ACT

     42-13.1-1. Short title. -- This chapter shall be known as "The Public-Private

Transportation Partnership Act".

     42-13.1-2. Definitions. -- The following words and phrases when used in this chapter

shall have the meanings given to them in this section:

     (1) "Account" means the public-private transportation account;

     (2) "Board" means the public-private transportation partnership board;

     (3) "Department" means the Rhode Island department of transportation;

     (4) "Development entity" means an entity which is a party to a public-private

transportation partnership agreement and which is any of the following:

     (i) A private entity; or

     (ii) A public entity, other than the public entity providing or improving its own

transportation facilities.

     (5) "Offeror" means a person that submits a proposal or a response in answer to a request

for proposals or transportation projects;

     (6) "Private entity" means a person, entity, group or organization that is not the federal

government, the state or a municipal authority;

     (7) "Proprietary public entity" means a public entity which owns a public-private

transportation project and which is a party to a public-private transportation partnership

agreement;

     (8) "Public entity" means an agency, a municipal authority or an authority created by

statute which owns a transportation facility;

     (9) "Public-private transportation partnership agreement" means a contract for a

transportation project which transfers the rights for the use or control, in whole or in part, of a

transportation facility by a public entity to a development entity for a definite term during which

the development entity will provide the transportation project to the public entity in return for the

right to receive all or a portion of the revenue generated from the use of the transportation facility,

or other payment, such as the following transportation-related services:

     (i) Operations and maintenance;

     (ii) Revenue collection;

     (iii) User fee collection or enforcement;

     (iv) Design;

     (v) Construction;

     (vi) Development and other activities with respect to existing or new transportation

facilities that enhance traffic throughput, reduce congestion, improve safety or otherwise manage

or improve a transportation facility; and

     (vii) Financing.

     (10) "Public-private transportation project" means a transportation project undertaken by

a development entity pursuant to a public-private transportation partnership agreement;

     (11) "Request for transportation projects" means a solicited or unsolicited plan for a

transportation project submitted to the board by a public entity;

     (12) "Responsible offeror" means an offeror that has submitted a responsive proposal and

that possesses the capability to fully perform the public-private transportation partnership

agreement requirements in all respects and the integrity and reliability to assure good faith

performance;

     (13) "Responsive proposal" means a proposal that conforms in all material aspects to the

requirements and criteria in the request for proposals;

     (14) "Transportation facility" means a proposed or existing road, bridge, tunnel, overpass,

ferry, busway, guideway, public transportation facility, vehicle parking facility, port facility,

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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;

     (15) "Transportation project" means an undertaking by a private entity or a public entity,

other than the public entity providing or improving its own transportation facilities, to provide or

improve a transportation facility or transportation-related service which is totally or partially

located within this state.

     42-13.1-3. Public-private transportation partnership board. -- (a) There is established

a board to be known as the public-private transportation partnership board.

     (b) The board shall be composed of the following members:

     (1) The director of the department of transportation;

     (2) The state budget officer or a designee who shall be an employee of the state budget

office;

     (3) Five (5) members appointed by the general assembly under subsection (c) of this

section;

     (4) One member appointed by the governor under subsection (d) of this section.

     (c) Legislative appointments.

     (1) Appointments of members by the general assembly shall be made as follows:

     (i) One individual appointed by the president of the senate;

     (ii) One individual appointed by the minority leader of the senate;

     (iii) Two (2) individual appointed by the speaker of the house of representatives; and

     (iv) One individual appointed by the minority leader of the house of representatives.

     (2) Legislative appointees shall be residents of this state and serve at the pleasure of the

appointing authority.

     (3) Legislative appointees shall have expertise or substantial experience in one or more of

the following areas:

     (i) Transportation;

     (ii) Finance;

     (iii) Law; and

     (iv) Land use and public planning.

     (d) Gubernatorial appointment. A member appointed under subsection (b)(4) of this

section:

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     (1) May not hold any other position as an elected official or employee of the state;

     (2) Shall be a resident of this state and have expertise or substantial experience in one or

more of the following areas:

     (i) Transportation;

     (ii) Finance;

     (iii) Law;

     (iv) Land use and public planning.

     (3) Shall serve at the pleasure of the governor.

     (e) Four (4) members of the board shall constitute a quorum. The adoption of a resolution

or other action of the board shall require a majority vote of the members of the board.

     (f) The members of the board shall be entitled to no compensation for their services as

members of the board but shall be entitled to reimbursement by the department for all necessary

and reasonable expenses incurred in connection with the performance of their duties as members

of the board.

     (g) Appointing authorities shall appoint initial board members within thirty (30) days of

the effective date of this section. Whenever a vacancy occurs on the board, the appointing

authority shall appoint a successor member within thirty (30) days of the vacancy.

     (h) No member of the board, during their term of office, shall directly or indirectly own,

have any significant financial interest in, be associated with or receive any fee, commission,

compensation or anything of value from any public entity or private entity seeking to engage in a

public-private transportation partnership agreement. The provisions of this subsection shall not

apply to the salary of a state employee.

     42-13.1-4. Duties of board. -- (a) The board shall:

     (1) Meet as often as necessary, but at least annually;

     (2) Adopt guidelines establishing the procedure by which a public entity may submit a

request for a transportation project or a private entity may submit an unsolicited plan for a

transportation project to the board;

     (3) Consult with persons affected by proposed transportation projects;

     (4) Evaluate and, where the board finds that the requests or plans for transportation

projects are in the best interests of the state and a public entity, approve the requests or plans for

transportation projects;

     (5) Submit an annual report to the general assembly detailing all transportation projects

evaluated and resolutions adopted.

     (b) Actions by the board are a determination of public policy and public interest and shall

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not be considered orders under chapter 35 of title 42 (the administrative procedures act) and shall

not be appealable to any court of law.

     (c) The following shall apply:

     (1) The general assembly may, within twenty (20) calendar days or nine (9) legislative

days, whichever is longer, of the adoption of the resolution under subsection (a)(4) of this section,

pass a concurrent resolution rescinding the approval of a transportation project if the

transportation facility which is the subject of the transportation project is owned by the state.

     (2) If the general assembly adopts the concurrent resolution within the time period under

subsection (c)(1) of this section, by a majority vote in both the senate and the house of

representatives, the transportation project shall be deemed disapproved.

     (3) If the general assembly fails to adopt the concurrent rescinding resolution by a

majority vote in both the senate and the house of representatives within the time period under

subsection (c)(1) of this section, the transportation project shall be deemed approved.

     42-13.1-5. Operation of board. -- (a) The department shall supply all necessary

assistance to assist the board in carrying out its duties and responsibilities, including retention of

legal, financial and technical consultants to assist with this role.

     (b) The department shall develop a detailed analysis of a request or recommendation

prior to approval by the board.

     (c) If a transportation project becomes a public-private transportation project, the

department shall retain oversight and monitor the public-private transportation project, including

periodic reports to the board, as necessary.

     42-13.1-6. Solicitations for transportation projects. -- A public entity may solicit

transportation projects through a request for transportation projects. The public entity shall give

public notice of a request for transportation projects consistent with §42-13.1-9(c) relating to

selection of development entities. Offerors shall submit their responses to the public entity in the

form and manner required by the request for transportation projects. A public entity shall evaluate

each response to determine if the response is in the best interest of the public entity. Upon being

satisfied, the public entity may prepare and submit a request to the board to review the

transportation project in accordance with this chapter.

     42-13.1-7. Transportation projects. -- (a) Except as provided under subsection (b) of

this section, a public entity which seeks to undertake a transportation project which has not been

previously approved by the board shall submit a request for the transportation project to the

board.

     (b) This chapter shall not apply to a transportation project which a public entity is

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authorized under law to undertake on the effective date of this chapter.

     42-13.1-8. Requests. -- (a) A request may be solicited or unsolicited and may provide for

the development or operation of transportation facilities using a variety of project delivery

methods and forms of agreement. The methods may include:

     (1) Predevelopment agreements leading to other implementing agreements;

     (2) A design-build agreement;

     (3) A design-build-operate agreement;

     (4) A design-build-maintain agreement;

     (5) A design-build-finance-operate agreement;

     (6) A design-build-operate-maintain agreement;

     (7) A design-build-finance-operate-maintain agreement;

     (8) An operate-maintain agreement;

     (9) A concession providing for the development entity to design, build, operate, maintain,

manage or lease a transportation facility;

     (10) Any other innovative or nontraditional project delivery method or agreement or

combination of methods or agreements that the public entity determines will address the

transportation needs of the state and the public entity and serve the public interest.

     42-13.1-9. Selection of development entities. -- (a) If a transportation project is

approved under §42-13.1-4, relating to duties of board, the public entity may enter into a contract

for the transportation project by competitive sealed proposals.

     (b) After receiving the determination required by subsection (a) of this section, a public

entity shall solicit proposals through a request for proposals.

     (c) A public entity shall give public notice of a request for proposals consistent with

regulations adopted by the department. The notice shall be given a reasonable time prior to the

date set for the close of receipt of the proposals. The method of public notice may include any of

the following:

     (1) Electronic publication which is accessible to the general public;

     (2) Advertisement in relevant trade publications;

     (3) Issuance of request for proposals to offerors on the mailing list of the public entity;

     (4) Publication in a newspaper of general circulation;

     (5) Where prequalification is a requirement of submitting a proposal, notification to all

private entities who have been prequalified by the public entity.

     (d) Copies of a request for proposals shall be made available to any interested person

upon request to the public entity. A public entity may establish procedures for the distribution of

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a request for proposals, including the imposition of a fee to reimburse the public entity for the

costs of photocopying and mailing.

     (e) Offerors shall submit their proposals to ensure that their proposals are received prior

to the time and date established for receipt of the proposals. Proposals shall be submitted in the

format required by the request for proposals. Proposals shall be opened so as to avoid disclosure

of their contents to competing offerors.

     (f) A public entity shall evaluate each proposal to determine which proposal has the best

value for and is in the best interest of the public entity. In making this determination, a public

entity may consider any of the following:

     (1) Cost;

     (2) Price;

     (3) Financial commitment;

     (4) Innovative financing;

     (5) Bonding;

     (6) Technical, scientific, technological or socioeconomic merit;

     (7) Financial strength and viability;

     (8) Design, operation and feasibility of the transportation project;

     (9) Public reputation, qualifications, industry experience and financial capacity of the

private entity;

     (10) The ability of the transportation project to improve economic growth, to improve

public safety, to reduce congestion, to increase capacity or to rehabilitate, reconstruct or expand

an existing transportation facility;

     (11) The compatibility of the proposal with existing local and regional land use plans;

     (12) The commitment of local communities to approve land use plans in preparation for

the transportation project;

     (13) Other factors deemed appropriate by the public entity.

     (g) The relative importance of each evaluation factor shall be fixed prior to opening the

proposals.

     (h) If the public entity is a state agency, the department is required to invite its

comptroller to participate in the evaluation as a nonvoting member of any evaluation committee.

No individual who has been employed by an offeror within the last two (2) years may participate

in the evaluation of proposals.

     (i) As provided in the request for proposals, discussions and negotiations may be

conducted with responsible offerors for the purpose of clarification and of obtaining best and final

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offers. Responsible offers shall be accorded fair and equal treatment with respect to any

opportunity for discussion and revision of proposals. In conducting discussions, there shall be no

disclosure of any information derived from proposals submitted by competing offerors.

     (j) The responsible offeror whose proposal is determined in writing to be the best value

for and in the best interests of the public entity, taking into consideration all evaluation factors,

shall be selected for contract negotiation.

     (k) A request for proposals may be canceled at any time prior to the time a public-private

transportation partnership agreement is executed by all parties when it is in the best interests of

the public entity.

     (l) Upon reaching an agreement with a responsible offeror, a public entity shall enter into

a public-private transportation partnership agreement with the responsible offeror. The public-

private transportation partnership agreement shall be consistent with the requirements of this

chapter. If agreement cannot be reached with the best qualified responsible offeror, then

negotiations will be formally terminated with the offeror. If proposals were submitted by one or

more other responsible offerors, negotiations may be conducted with the other responsible offeror

or responsible offerors in the order of their respective qualification ranking. The contract may be

awarded to the responsible offeror then ranked as best qualified.

     (m) If a prospective offeror, offeror or development entity is aggrieved by a selection

under this section and the public entity or proprietary public entity in the invitation or contract is

a state agency, the prospective offeror, offeror or development entity may file a claim.

     (n) If a development entity is aggrieved by a selection under this section and the

proprietary public entity in the contract is an entity other than the state, a development entity may

file a claim in superior court where the proprietary public entity is located.

     42-13.1-10. Public-private transportation partnership agreement. -- (a) A public-

private transportation partnership agreement shall include the following provisions:

     (1) A description of any planning, development, design, leasing, acquisition or interest in,

financing, installation, construction, reconstruction, replacement, expansion, operation,

maintenance, improvement, equipping, modification, expansion, enlargement, management,

running, control and operation of the public-private transportation project;

     (2) The term of the public-private transportation partnership agreement;

     (3) The type of property interest or other relationship the development entity will have in

or with respect to the public-private transportation partnership project, including acquisition of

rights-of-way and other property interests that may be required;

     (4) Authorization for the proprietary public entity or its authorized representatives to

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inspect all assets and properties of the public-private transportation project and all books and

records of the development entity relating to the public-private transportation project to review

the development entity's performance under the public-private transportation partnership

agreement;

     (5) Grounds for termination of the public-private transportation partnership agreement by

the parties;

     (6) Procedures for amendment of the public-private transportation partnership agreement;

     (7) The rights and remedies available in the event of breach, default or delay;

     (8) Requirements for a private development entity to provide performance and payment

bonds, parent company guarantees, letters of credit or other acceptable forms of security in an

amount acceptable to the proprietary public entity;

     (9) A requirement that ownership of a transportation facility acquired or constructed go to

or remain with the proprietary public entity;

     (10) Standards for construction, maintenance and operation of the public-private

transportation project if the activities are to be performed by the development entity;

     (11) Standards for capital improvement or modification of the public-private

transportation project if they are to be made by the development entity;

     (12) Standards relating to how payments, if any, are to be made by the proprietary public

entity to the development entity, including availability payments, performance-based payment

and payments of money and revenue-sharing with the development entity;

     (13) Standards relating to how the parties will allocate and share management of the risks

of the public-private transportation project;

     (14) Standards relating to how the parties will allocate costs of development of the

public-private transportation project, including any cost overruns;

     (15) Standards relating to damages to be assessed for nonperformance, specifying

remedies available to the parties and dispute resolution procedures;

     (16) Standards relating to performance criteria and incentives;

     (17) A requirement that upon termination of the public-private transportation partnership

agreement, a transportation facility that was the subject of the public-private transportation

partnership agreement must be in a state of proper maintenance and repair and shall be returned to

the proprietary public entity in satisfactory condition at no further cost to the proprietary public

entity;

     (18) Provisions for law enforcement related to the public-private transportation project;

     (19) Other terms and provisions as required under this chapter or agreed to by the

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development entity and the proprietary public entity.

     (b) The proprietary public entity may enter into a public-private transportation

partnership agreement with any development entity that includes the provisions under subsection

(a) of this section for a term not to exceed ninety-nine (99) years.

     (c) Nothing in this chapter shall prohibit the department from entering into a public-

private transportation partnership agreement with another state agency in accordance with this

chapter.

     (d) Nothing in this chapter shall prohibit a public entity from entering into a public-

private transportation partnership agreement with one or more public entities in accordance with

this chapter.

     (e) Environmental costs.

     (1) A proprietary public entity may provide in a public-private transportation partnership

agreement that it will pay or reimburse, on terms that it deems appropriate, the development

entity for actual costs associated with necessary remediation for existing environmental

contaminants located on, under, or emanating from the real property associated with a public-

private transportation project as of the date the development entity assumes responsibility for the

public-private transportation project. If the public-private transportation partnership agreement

provides for environmental remediation, the public-private transportation partnership agreement

shall require that the proprietary public entity be given:

     (i) Prompt notice of any claim against the proprietary public entity or a third party

pertaining to the contaminants;

     (ii) The right to elect to undertake the necessary remediation;

     (iii) The right to participate in the defense of or response to any claim; and

     (iv) The right of prior approval before the development entity may settle any claim.

     (2) No payment by a proprietary public entity under this section may be for anything

other than actual costs incurred by a development entity to remediate the environmental

contamination on, under, or emanating from the real property associated with the public-private

transportation project as of the date the development entity assumes responsibility for the public-

private transportation project.

     42-13.1-11. Records of requests. -- (a) Upon the selection of a development entity to be

a party to a public-private transportation partnership agreement, the identity of the development

entity selected, the contents of the response of the development entity to the request for proposals,

the final proposal submitted by the development entity and the form of the public-private

transportation partnership agreement shall be made public. Any financial information of a

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development entity that was requested in the request for proposals or during discussions and

negotiations to demonstrate the economic capability of a development entity to fully perform the

requirements of the public-private transportation partnership agreement shall not be subject to

public inspection.

     (b) A proprietary public and a private development entity may agree, in their discretion,

to make public any information described under subsection (d)(1) of this section that would not

otherwise be subject to public inspection.

     (c) If a proprietary public entity terminates a public-private transportation partnership

agreement for default, rejects a private entity on the grounds that the private entity is not

responsible or suspends or debars a development entity, the private entity or development entity,

as appropriate, shall, upon written request, be provided with a copy of the information contained

in the file of the private entity or development entity maintained by the proprietary public entity

under a contractor responsibility program.

     (d) The following information shall not be public:

     (1) Information relating to proprietary information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and information relating to competitive marketing

materials and strategies;

     (2) Security information, including risk prevention plans, detection and countermeasures,

emergency management plans, security and surveillance plans, equipment and usage protocols

and countermeasures;

     (3) Records considered nonpublic matters or information by the Securities and Exchange

Commission under 17 CFR 200.80 (relating to commission records and information);

     (4) Any financial information deemed confidential by the proprietary public entity upon a

showing of good cause by the offeror or development entity; and

     (5) Records prepared or utilized to evaluate a proposal.

     42-13.1-12. Use of intellectual property. -- Unless otherwise agreed to and except to the

extent not transferable by law, the department or a proprietary public entity shall have the right to

use all or a portion of a submitted proposal, including the technologies, techniques, methods,

processes and information contained in the proposal. Notice of nontransferability by law shall be

given to the department and the proprietary public entity in response to the request for proposals.

     42-13.1-13. Police powers and violations of law. -- (a) To the extent the public-private

transportation project is a highway, bridge, tunnel overpass or similar transportation facility for

motor vehicles, all state and local traffic laws shall apply.

     (b) Arrest powers. All officers authorized by law to make arrests for violations of law in

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this state shall have the same powers, duties and jurisdiction within the limits of a public-private

transportation project as they have in their respective areas of jurisdiction. The grant of authority

under this section shall not extend to the private offices, buildings, garages and other

improvements of a development entity to any greater degree than the police power extends to any

other private offices, buildings, garages and other improvements.

     42-13.1-14. Environmental and other authorizations. -- (a) A public-private

transportation partnership agreement may require that prior to commencing any construction in

connection with the development, operation or financing of any public-private transportation

project if the agreement requires environmental authorizations to be obtained, the development

entity shall do any of the following:

     (1) Secure all necessary environmental permits and authorizations;

     (2) Complete environmental remediation of the site on which the public-private

transportation project is to be located, including acts required under any agreement entered into

with the state department of environmental management for remediation of the site.

     42-13.1-15. Taxation of development entity. -- (a) To the extent that revenues or user

fees received by a development entity pursuant to a public-private transportation partnership

agreement are subject to a tax imposed by a political subdivision prior to the effective date of this

section, the revenues or user fees shall continue to be subject to the tax and to future increases in

the rate of the tax.

     (b) After the effective date of this section, no new tax shall be imposed by a political

subdivision or the state on the revenues or user fees received by a development entity pursuant to

a public-private transportation partnership agreement.

     (c) No public-private transportation partnership agreement, lease, concession, franchise

or other contract involving real property of a public-private transportation project shall be subject

to a state or local realty transfer tax.

     (d) Property used in connection with a public-private transportation project shall be

considered public property and shall be exempt from ad valorem property taxes and special

assessments levied against property by the state or any political subdivision.

     42-13.1-16. Power of eminent domain. -- The exercise of the power of eminent domain

by any condemnor to acquire property for a public-private transportation project purposes under a

public-private transportation partnership agreement shall be considered a taking for a public

purpose and not for a private purpose or for private enterprise.

     42-13.1-17. Sovereign immunity. -- It is declared to be the intent of the general

assembly that the state, and its officials and employees, and a municipal authority, and its

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officials and employees, acting within the scope of their duties pursuant to this chapter, shall

enjoy sovereign immunity and official immunity afforded by chapter 31 of title 9 entitled

governmental tort liability and remain immune from suit except as provided in §42-13.1-18

relating to specific performance. A claim against the state and its officials and employees or

municipal authority and its officials and employees shall be brought only in such manner and in

such courts and in such cases as directed by the provisions of §42-13.1-10(e) relating to public-

private transportation partnership agreement or any procurement or contractual law applicable to

a municipal authority.

     42-13.1-18. Specific performance. -- A proprietary public entity is authorized to agree

that specific performance shall be available to a development entity as a remedy for a breach by

the proprietary public entity of its representations, covenants, warranties or other obligations

under the public-private transportation partnership agreement to the extent set forth in the public-

private transportation partnership agreement.

     42-13.1-19. Applicability of other laws. -- All provisions of laws related to the

development, construction, operation or financing of a transportation project in effect on the date

the public-private transportation partnership agreement is fully executed shall apply to a public-

private transportation partnership agreement entered into between a proprietary public entity and

a development entity.

     42-13.1-20. Adverse interests. -- (a)(1) Except as provided under subsection (a)(2) of

this section, a private entity which submits a response to a request for proposals under §42-13.1-9

relating to selection of development entities, a request for transportation projects under §42-13.1-

6 relating to solicitations for transportation projects or an unsolicited proposal, and which is also a

state advisor or a state consultant for the department or the Rhode Island turnpike and bridge

authority, shall not be deemed to be in violation of the state code of ethics in chapter 14 of title

36, while engaging in any of the following activities:

     (i) Preparing or submitting a response to a request for proposals or transportation

projects;

     (ii) Participating in any activity with the department related to a request for proposals or

transportation projects;

     (iii) Negotiating and entering into any contract lease or public-private transportation

partnership agreement which results from a request for proposals or transportation projects;

     (iv) Engaging in any other action taken in furtherance of the purposes of this chapter.

     (2) A private entity which submits a response to a request for proposals or transportation

projects or acts as a consultant or an advisor to a private entity which submits a response to a

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request for proposals or transportation projects to the department shall be prohibited from

consulting or providing advice to the department on the review or approval of the response to the

request for proposals or transportation projects as submitted.

     (3) A private entity which submits a response to a request for proposals or transportation

projects or acts as a consultant or an advisor to a private entity which submits a response to a

request for proposals or transportation projects to the board shall be prohibited from consulting or

providing advice to the department on the review or approval of the response to the request for

proposals or transportation projects so submitted.

     42-13.1-21. Federal, state, local, and private assistance. -- (a) The department or a

proprietary public entity may accept from the United States or any of its agencies, funds that are

available to the state for carrying out this chapter, whether the funds are made available by grant,

loan, loan guarantee or otherwise.

     (b) The department or a proprietary public entity is authorized to assent to any federal

requirements, conditions or terms of any federal funding accepted by the department or a

proprietary public entity under this section.

     (c) The department or a proprietary public entity may enter into agreements or other

arrangements with the United States or any of its agencies as may be necessary for carrying out

the purposes of this chapter.

     (d) The department or a proprietary public entity may accept from any source any grant,

donation, gift or other form of conveyance of land, money or other real, personal or mixed

property or other item of value for carrying out the purposes of this chapter.

     (e) Subject to acceptance and agreement between the development entity and a

proprietary public entity, any public-private transportation project may be financed, in whole or

in part, by contribution of any funds or property made by a proprietary public entity, a

development entity or an affected jurisdiction.

     (f) The department or proprietary public entity may combine federal, state, local and

private funds to finance a public-private transportation project under this chapter.

     (g) A public-private transportation project funded, in whole or in part, through the

issuance of debt where the credit of the state is pledged shall be itemized in a capital budget

itemization act.

     42-13.1-22. Public-private transportation account. -- (a)(1) There is established a

separate account to be known as the public-private transportation account.

     (2) Money in the account shall be used only for the purposes enumerated under

subsection (c) of this section.

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     (b) The following shall apply:

     (1) The department shall deposit in the account the following:

     (i) All money received by the department pursuant to the terms of a public-private

transportation partnership agreement under which the department is the proprietary public entity;

     (ii) Repayment of any loans from the account made under this chapter;

     (iii) Subject to the provisions of any public-private transportation partnership agreement

under which the department is the proprietary public entity, monetary damages and other amounts

for failure by a development entity to comply with the terms of the public-private transportation

partnership agreement;

     (iv) Subject to the provisions of any public-private transportation partnership agreement

under which the department is the proprietary public entity, payments made from any insurance

proceeds or reserve funds or performance or payment bonds in connection with a public-private

transportation project;

     (v) Earnings from the investment of the money in the account.

     (2) The state budget officer shall establish any restricted accounts within the account as

they deem necessary for the proper administration of the account.

     (3) All money related to any public-private transportation partnership agreement in which

the department is not the proprietary public entity shall not be held in the account, but shall be

held by the proprietary public entity or its agent.

     (c) The funds in the account are continuously appropriated to the department for the

following purposes:

     (1) Paying the amounts as the department may be required to repay the federal funding

agencies;

     (2) Paying all amounts designated by the department as required for repayment or

defeasance of outstanding bonds;

     (3) Paying costs of maintenance, operating and financing of transportation facilities in

this state which are available for use by the public, including the costs of insurance or reserves

against risks of contingencies;

     (4) Paying expenses incurred under or in connection with any public-private

transportation partnership agreement by the department, including professional fees and

expenses;

     (5) Paying the costs of the department relating to performing and administering duties

under this chapter;

     (6) Paying all expenses approved by the board for its costs incurred to perform its duties,

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including paying professional fees and expenses;

     (7) Paying costs of any purpose authorized under this chapter.

     (d) The net proceeds received under a public-private transportation partnership agreement

shall be available exclusively to provide funding for transportation needs in this state. The use of

the proceeds or other revenues from the public-private transportation project shall be in accord

with federal or state law restricting or limiting the use of revenue from the public-private

transportation project based on its public funding.

     42-13.1-23. Regulations. -- (a) In order to facilitate the implementation of this chapter,

the department is authorized to promulgate regulations that include the following:

     (1) The process for review of a request for proposals or transportation projects or

responses to requests for proposals or transportation projects issued by a public entity;

     (2) The process for receipt and review of and response to competing responses to requests

for proposals or transportation projects;

     (3) The type and amount of information that is necessary for adequate review of and

response to each stage of review of a proposal or transportation project;

     (4) Any other provisions which are required under this chapter or which the department

determines are appropriate for implementation of this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - PUBLIC-PRIVATE

TRANSPORTATION PARTNERSHIP ACT

***

     This act would authorize the creation of a public-private transportation partnership board

to promote transportation improvement programs for the users of our roads. The board would

evaluate proposed plans for transportation projects.

     This act would take effect upon passage.

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