HF 1204

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2013 02:23pm

A bill for an act
relating to transportation; contracts; establishing a public-private partnership
pilot program and related regulations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
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new text begin (a) The commissioner of transportation and Metropolitan Council are authorized to
consider and utilize public-private partnership procurement methods for up to three pilot
projects if objective analysis demonstrates that it provides better long-term value for the
state than traditional procurement methods.
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new text begin (b) Notwithstanding Minnesota Statutes, section 160.845, 160.98, or any other law to
the contrary, the commissioner or Metropolitan Council may consider for use in the pilot
program any existing public-private partnership mechanism or any proposed mechanism
that proves the best available option for the state. Mechanisms the commissioner or
Metropolitan Council may consider include, but are not limited to, toll facilities, BOT
facilities, BTO facilities, user fees, construction payments, joint development agreements,
negotiated exactions, air rights development, street improvement districts, or tax increment
financing districts for transit. For the purposes of sections 1 to 6, toll facilities, BOT
facilities, and BTO facilities have the meanings given under section 160.84.
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new text begin (c) As part of the pilot program, the commissioner and Metropolitan Council are
directed to form an independent advisory and oversight office, the Joint Program Office
for Economic Development and Alternative Finance. The office shall consist of the
commissioner of management and budget, the commissioner of employment and economic
development, the commissioner of administration, the commissioner of transportation,
the Metropolitan Council, the legislative auditor, and one representative each from the
American Council of Engineering Companies - Minnesota chapter, the Central Minnesota
Transportation Alliance, the Counties Transit Improvement Board, and the Minnesota
County Engineers Association. In addition, the commissioner and Metropolitan Council
shall invite the Federal Highway Administration and the Federal Transit Administration to
participate in the office's activities. The office's duties shall include, but are not limited to,
reviewing and approving projects proposed under this section, reviewing any contractual
or financial agreements to ensure program requirements are met, and ensuring that any
proposed or executed agreement serves the public interest.
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new text begin (d) Among the projects the commissioner and Metropolitan Council may consider
are the construction of an Interstate 94/US Highway 10 River Crossing near marked
Minnesota Trunk Highway 24, the Fish Lake interchange, the marked Interstate 94
expansion from the Fish Lake interchange to marked Trunk Highway 24, and high-speed,
commuter, and light rail projects.
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Sec. 2. new text begin PILOT PROGRAM RESTRICTIONS.
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new text begin (a) The commissioner or Metropolitan Council shall select a private entity or entities
for all public-private partnerships on a competitive basis.
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new text begin (b) When entering into a public-private partnership, the commissioner or
Metropolitan Council may not enter into any noncompete agreement that inhibits the
state's ability to address ongoing or future infrastructure needs.
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new text begin (c) If the commissioner or Metropolitan Council enters into a public-private
partnership agreement that includes a temporary transfer of ownership or control of a road,
bridge, or other infrastructure investment to the private entity, the agreement must include
a provision requiring the return of the road, bridge, or other infrastructure investment to
the state after a specified period of time.
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new text begin (d) The commissioner and Metropolitan Council may only consider new projects for
a public-private partnership. The commissioner and Metropolitan Council are prohibited
from considering projects involving existing infrastructure for a public-private partnership,
unless the proposed project adds capacity to the existing infrastructure.
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Sec. 3. new text begin CONSIDERATIONS.
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new text begin (a) When soliciting, evaluating, and selecting a private entity with which to enter into
a public-private partnership, the commissioner or Metropolitan Council must consider:
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new text begin (1) the ability of the proposed project to improve safety, reduce congestion, increase
capacity, and promote economic growth;
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new text begin (2) the proposed cost of and financial plan for the project;
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new text begin (3) the general reputation, qualifications, industry experience, and financial capacity
of the private entity;
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new text begin (4) the project's proposed design, operation, and feasibility;
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new text begin (5) comments from local citizens and affected jurisdictions;
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new text begin (6) benefits to the public;
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new text begin (7) the safety record of the private entity; and
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new text begin (8) any other criteria the commissioner or Metropolitan Council deems appropriate.
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new text begin (b) The independent advisory and oversight office established under section 1,
paragraph (c), shall review proposals evaluated by the commissioner or Metropolitan
Council to ensure the requirements of this section are being met.
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Sec. 4. new text begin PUBLIC-PRIVATE AGREEMENT.
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new text begin (a) A public-private agreement between the commissioner or the Metropolitan
Council and a private entity shall, at a minimum, specify:
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new text begin (1) the planning, acquisition, financing, development, design, construction,
reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
operation of the project;
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new text begin (2) the term of the public-private agreement;
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new text begin (3) the type of property interest, if any, that the private entity will have in the project;
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new text begin (4) a description of the actions the commissioner or Metropolitan Council may take
to ensure proper maintenance of the project;
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new text begin (5) whether user fees will be collected on the project and the basis by which the
user fees shall be determined and modified;
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new text begin (6) compliance with applicable federal, state, and local laws;
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new text begin (7) grounds for termination of the public-private agreement by the commissioner or
Metropolitan Council; and
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new text begin (8) procedures for amendment of the agreement.
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new text begin (b) A public-private agreement between the commissioner or Metropolitan Council
and a private entity may provide for:
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new text begin (1) review and approval by the commissioner or Metropolitan Council of the private
entity's plans for the development and operation of the project;
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new text begin (2) inspection by the commissioner or Metropolitan Council of construction and
improvements to the project;
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new text begin (3) maintenance by the private entity of a liability insurance policy;
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new text begin (4) filing of appropriate financial statements by the private entity on a periodic basis;
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new text begin (5) filing of traffic reports by the private entity on a periodic basis;
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new text begin (6) financing obligations of the commissioner or Metropolitan Council and the
private entity;
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new text begin (7) apportionment of expenses between the commissioner or Metropolitan Council
and the private entity;
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new text begin (8) the rights and remedies available in the event of a default or delay;
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new text begin (9) the rights and duties of the private entity, the commissioner or Metropolitan
Council, and other state or local governmental entities with respect to the use of the project;
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new text begin (10) the terms and conditions of indemnification of the private entity by the
commissioner or Metropolitan Council;
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new text begin (11) assignment, subcontracting, or other delegations of responsibilities of (i) the
private entity, or (ii) the commissioner or Metropolitan Council under agreement to third
parties, including other private entities or state agencies;
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new text begin (12) if applicable, sale or lease to the private entity of private new text end new text begin property related to
the project;
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new text begin (13) traffic enforcement and other policing issues; and
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new text begin (14) any other terms and conditions the commissioner or Metropolitan Council
deems appropriate.
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new text begin (c) The independent advisory and oversight office established under section 1,
paragraph (c), shall review any proposed contractual agreement prior to execution in order
to ensure the requirements of this section are being met.
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Sec. 5. new text begin FUNDING FROM FEDERAL GOVERNMENT.
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new text begin (a) The commissioner or Metropolitan Council may accept from the United States or
any of its agencies funds that are available to the state for carrying out the pilot program,
whether the funds are available by grant, loan, or other financial assistance.
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new text begin (b) The commissioner or Metropolitan Council may enter into agreements or other
arrangements with the United States or any of its agencies as necessary for carrying out
the pilot program.
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new text begin (c) The commissioner or Metropolitan Council may combine federal, state, local,
and private funds to finance a public-private partnership pilot project.
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Sec. 6. new text begin REPORTING.
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new text begin By August 1, 2015, and annually by August 1 thereafter, the commissioner and
Metropolitan Council shall submit to the chairs and ranking minority members of the
house of representatives and senate committees having jurisdiction over transportation
policy and finance a listing of all agreements executed under the pilot program authority.
The listing must identify each agreement, the contracting entities, contract amount and
duration, any repayment requirements, and provide an update on the project's progress.
The listing may be submitted electronically and is subject to Minnesota Statutes, section
3.195, subdivision 1.
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