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S.F. No. 742 - Transportation Public-Private Partnership Pilot Program (Delete-Everything Amendment SCS0742A-3)
 
Author: Senator John C. Pederson
 
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
 
Date: March 11, 2013



 

Section 1 creates the public-private partnership pilot program. 

Paragraph (a) authorizes the Commissioner of Transportation and Metropolitan Council to consider and use public-private partnership procurement methods for up to three pilot projects.  The paragraph expresses the objectives of utilizing public-private partnership procurement.

Paragraph (b) authorizes the commissioner and council to use any existing or proposed mechanism, including toll facilities, user fees, construction payments, joint development agreements, negotiated exactions, air rights development, street improvement districts, or tax increment financing.

Paragraph (c) directs the commissioner and council to form an independent advisory and oversight office and specifies inclusion of various commissioners and stakeholder entities.  The Federal Highway Administration and Federal Transit Administration must be invited to participate.  The office must review and approve projects, contractual and financial agreements, to ensure program requirements are met and the public interest is served.

Section 2 identifies program restrictions and project selection.

Paragraph (a) allows the commissioner or council to receive or solicit and evaluate proposals to build, operate, and finance projects.  Projects must be consistent with MnDOT and Metropolitan Council plans.  An unsolicited proposal may be considered after publication in the State Register.  A private proposer must be selected on a competitive basis.

Paragraph (b) prohibits noncompete agreements in connection with a public-private partnership.

Paragraph (c) requires an agreement that includes a temporary transfer of ownership or control of a public asset to a private contractor, to provide for return of the public asset after a specified period of time.

Paragraph (d) restricts public-private partnership projects to new projects unless a proposed project adds capacity to existing infrastructure.

Paragraph (e) identifies projects the commissioner and council may consider.

Section 3 provides for the evaluation and selection of a private entity and project.

Paragraph (a) requires the commissioner and council to contract with a consultant with specified expertise to evaluate proposals.

Paragraph (b) lists elements for consideration in evaluating a private entity before a project is selected.

Paragraph (c) directs the independent advisory and oversight office to review proposals to ensure the project serves the public interest and meets the requirements of this law.

Section 4 specifies provisions that are required and that are permitted to be contained in a public-private agreement.  The independent advisory and oversight office must review contracts before execution to ensure the contract serves the public interest and meets the requirements of this law.

Section 5 authorizes the commissioner or council to accept federal funds and enter into agreements to carry out the pilot program.  The commissioner or council must maximize project funding from nonstate sources and may combine federal, state, local, and private funds to finance the pilot project.

Section 6 requires, by August 1, 2015, and annually thereafter, MnDOT and the Metropolitan Council to submit a list of public-private agreements entered into under this pilot program, with various categories of information.

Section 7 makes this act effective the day after an appropriation is effective that covers the costs of this act.

 

 
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