Public-Private Partnership Legislation Set to Become Law

July 2, 2012
The following article is provided by the Associated Pennsylvania Constructors:

As the General Assembly scrambled to complete the state budget before the June 30 constitutional deadline, a flurry of late night actions were taken before they adjourned for a summer recess. One of those measures affecting the industry was the final passage of House Bill 3, which will pave the way for a Public-Private Partnership (PPP) law in Pennsylvania for transportation projects. The measure unanimously passed the Senate (49-0) but was more contentious in the House (117-79). The measure is now awaiting signature of Governor Corbett who indicated that he planned to sign it, possibly as early as today.

The bill represents a compromise between Rep. Rick Geist (R-Altoona), the prime sponsor of the bill, and Senate Transportation Committee Chairman John Rafferty (R-Collegeville). Brief highlights of the bill include:

  • A Public-Private Transportation Partnership Board is created to evaluate and approve or deny requests to advance any PPP project;
  • Solicited and unsolicited proposals are permitted to be reviewed by the Board;
  • All modes of transportation are allowed to be considered for PPP projects;
  • The PA Turnpike may NOT enter into an agreement with respect to substantial control or oversight of the Turnpike mainline without specific authority granted through and act of the General Assembly;
  • The General Assembly may rescind any action by the Board by passing a resolution if the project involves a state-owned facility;
  • Any net proceeds derived from PPP projects will be placed into a special fund for exclusive use for transportation needs;
  • PennDOT retains oversight of PPP projects and may retain outside assistance for legal, financial and technical consultants.

APC will monitor the developments of the creation of the Board, which is expected to occur within 60 days of the Governor signing the bill into law. For more information, contact Jason Wagner at the APC Office.

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