SB 512
Creates the Partnership for Public Facilities and Infrastructure Act
LR Number:
Last Action:
3/10/2015 - Second Read and Referred S Governmental Accountability and Fiscal Oversight Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2015

Current Bill Summary

SB 512 - This act establishes the Partnership for Public Facilities and Infrastructure Act.

Under this act a private entity seeking authorization to develop or operate a qualifying project is required to first obtain approval of the responsible public entity. A private entity may initiate the approval process by making a request to the responsible public entity which is accompanied by specified materials and information. The responsible public entity may also request proposals or invite bids. Prior to requesting or considering a proposal for a qualifying project, the responsible public entity is required to establish and comply with publicly available guidelines. The responsible public entity may grant approval to a qualifying project if it determines the project serves the public purpose designated in this act. The responsible public entity may also reject any proposal initiated by a private entity at any time. If the responsible public entity rejects a proposal initiated by a private entity that purports to develop specific cost savings, the public entity shall specify the basis for the rejection.

Private entities shall notify each jurisdiction affected by a qualifying project. Such jurisdiction shall have 60 days to make comments on the proposed qualifying project.

Any public entity may dedicate any property interest to a private entity that it has for public use in a qualifying project if the public entity determines that doing so will serve the public purpose of this act. The property interest may include licenses, franchises, easements, or any other right or interest the public entity deems appropriate and in conformance with the law.

Prior to developing or operating a qualifying project, a private entity shall enter into a comprehensive agreement with the responsible public entity. The details of the agreement are further specified in the act. The parties may enter into an interim agreement prior to entering into a comprehensive agreement.

If there is a material default by the private entity, the responsible public entity may:

(1) Assume the responsibilities and duties of the private entity;

(2) Acquire the qualifying project through the power of condemnation;

(3) Terminate, with cause, the interim or comprehensive agreement;

(4) Make or cause to be made any appropriate claims under the maintenance, performance, or payment bonds or lines of credit; or

(5) Elect to take over the development or operation of the qualifying project, impose user fees, impose and collect lease payments for the use of the project, and comply with any service contracts as if it were the private entity.

The responsible public entity shall hold a public hearing on proposals during the review process no later than 30 days prior to entering into an interim or comprehensive agreement. The responsible public entity may close meetings, records, and votes relating to memoranda, staff evaluations, or other records prepared by the responsible public entity, its staff, outside advisors, or consultants exclusively for the evaluation and negotiation of proposals.

The Partnership for Public Facilities and Infrastructure Advisory Commission is established to advise any and all responsible public entities that are state agencies, commissions, boards, or institutions supported wholly or partially by public funds on proposals received under these provisions. The 11-member commission consists of specified members of the General Assembly and specified state officials. The commission shall hold meetings quarterly or upon the call of the chairperson. A copy of the proceedings of the commission shall be filed with the Joint Committee on Legislative Research.

The act prohibits the Governor, his or her political action committee, or any department directors, if the directors are responsible for an executive branch agency with jurisdiction over the matters at issue, from knowingly soliciting or accepting a contribution, gift, or other item with a value of more than $50 from specified individuals who have submitted a bid or proposal to an executive branch agency during specified periods with specified exceptions. Any person who knowingly violates this provision shall be subject to a fine of $500 or up to two times the amount of the contribution or gift, whichever is greater.

Each responsible public entity that is partially or fully funded by the state that receives detailed proposals from private entities for a qualifying project shall provide copies of the proposals to the chairperson of the commission and other specified individuals prior to entering into the negotiation of an interim or comprehensive agreement. Specified projects shall not be subject to review by the commission.

This act is similar to HB 206 (2015).