APPENDIX C.  PUBLIC-PRIVATE PARTNERSHIP ENABLING STATUTES

State/Jurisdiction

Statute

Provision

Alabama

Ala. Code §23-1-81

Gives counties and the state DOT authority to enter into agreements with private entities to establish or operate toll roads, toll bridges, ferries or causeways and authorizes the licensee to establish and fix the rates of toll.

Arizona

Ariz. Rev. Stat. Ann. §28-7701 et seq.

Authorizes agreements with private entities for the construction or lease of transportation facilities. Includes specific requirements for such agreements. Establishes a pilot program for public-private partnerships.

Arkansas

Ark. Stat. Ann. §27-86-201 et seq.

Allows counties to grant franchises to private entities to build toll bridges, turnpikes or causeways over or along swamps, watercourses, lakes or bays whenever it is in the public interest. Requires consent from the federal government for construction of the bridge. Gives counties superintending authority on rates.

Colorado

Colo. Rev. Stat. §43-3-202 (c.5); §43-3-202.5; §43-3-301 et seq.

Authorizes the DOT to make or enter into contracts or agreements with one or more public or private entities to design, finance, construct, operate, maintain, reconstruct, or improve a turnpike project by means of a public-private initiative.

The enabling statute specifically finds that public-private agreements can result in time and cost savings, risk reduction and new tax revenues. It also requires that the public or private entity secure and maintain liability insurance coverage.

Delaware

Del. Code Ann. Tit. 2, §2001 et seq.

Comprehensive statute that authorizes public-private partnerships.

Florida

Fla. Stat. §334.30

Authorizes the DOT, with legislative approval, to enter into agreements with private entities for the building, operation, ownership or financing of transportation facilities. Public-private partnership projects must be in the public's best interests, must not require state funds to be used unless the project is on the State Highway System, and must have adequate safeguards to ensure that no additional costs or service disruptions will be realized in the event of default by the private entity or cancellation of the agreement by the department.

Agreements under the statute may allow the private entity to impose tolls or fares, but rates and use of funds must be regulated by the DOT to avoid unreasonable costs to the users of the facility.

Georgia

Ga. Code §32-2-78 et seq.

Authorizes the DOT to solicit and accept proposals for public-private initiatives that comply with certain requirements in the statute. Proposals must be unique or innovative, independently developed by the proposer, and accompanied by detailed information about the project and costs. Includes public notice and comment requirements for proposals submitted to the DOT and criteria for the DOT to use to make decisions about proposals. Prohibits the delegation of eminent domain authority to private entities under these provisions.

Illinois

Ill. Rev. Stat. ch. 20, §2705-450

Authorizes the DOT to enter into agreements with any public or private entity for the purpose of promoting and developing high-speed rail and magnetic levitation transportation within the state.

Indiana

Ind. Code §8-10-1-1

Authorizes the Indiana Port Commission to construct, maintain and operate certain transportation projects and to issue revenue bonds to pay the cost of such projects. The commission's powers are not limited to ports and may be exercised throughout Indiana for projects that enhance, foster, aid, provide or promote economic development, public-private partner-ships and other industrial, commercial, business and transportation purposes.

Encourages parishes and municipalities to use public-private partnerships to assist the state in financing improvements to the state highway system and meeting local transportation needs.

Louisiana

La. Rev. Stat. Ann. §48:2020; §48:2072

Creates the Louisiana Transportation Authority to pursue alternative and innovative funding sources, including but not limited to, public-private partnerships, tolls and unclaimed property bonds to supplement public revenue sources and to improve Louisiana's transportation system.

Maryland

Md. Ann. Code Transportation Code §8-204.

Authorizes the DOT to consult, confer, and contract with any person in furtherance of the duties of the Administration and the purposes of the transportation code.

A 1996 State Attorney General Opinion states that this provision authorized the Maryland Transportation Authority to enter into public-private partnerships.

Minnesota

Minn. Stat. Ann.  §160.84 et seq.

Authorizes agreements with private entities to finance, build and operate toll facilities. Authorizes development agreements and defines the terms that must be included in such agreements.

Missouri

Mo. Rev. Stat. §238.305; 68.305

General authorizing statute for the state DOT gives authority to enter into agreements with private entities. Specific provision provides for the creation of transportation corporations with private entities.

Nevada

Nev. Rev. Stat. §338.161 et seq.

Allows private entities to submit a request to a public body to develop, construct, improve, maintain or operate, or any combination thereof, a transportation facility. Specifically excludes toll roads and toll bridges.

North Carolina

N.C. Gen. Stat. §136-89.171 et seq.; §136-89.180 et seq.

Section 136-89.171 et seq. establishes a private pilot toll project that allows the construction and operation of two private toll roads. Section 136-89.180 et seq. governs public toll roads and bridges.

Oregon

Or. Rev. Stat. §367.800 et seq.

Establishes the Oregon Innovative Partnerships Program. The statute expresses the legislature's findings that entrepreneurial approaches can save money and bring substantial benefits to the public. The statute lists specific goals, including the legislature's goal to speed project delivery, maximize innovation and develop partnerships with private entities.

The statute authorizes the state Department of Transportation to solicit concepts and proposals for transportation projects from private entities or accept unsolicited concepts and proposals from private entities. Section 367.806 authorizes the DOT to enter into agreements with private entities relating to transportation projects. Such agreements can relate to planning, acquisition, financing, development, design, construction, improvements, maintenance, management and other aspects of transportation projects. The statute lists specific requirements for such agreements, including financing, risk management, penalties for nonperformance and incentives for performance.

South Carolina

S.C. Code Ann. §57-3-200

Authorizes the state Department of Transportation to expend such funds as it deems necessary to enter into partnership agreements with private entities to finance, by tolls and other financing methods, the cost of acquiring, constructing, equipping, maintaining and operating highways, roads, streets and bridges in South Carolina.

Texas

Transportation Code Chapter 227

Enacted as part of the 2003 Trans-Texas Corridor legislation.  Section 227.023 requires the state transportation department, to the maximum extent possible, to encourage the participation of private entities in the planning, design, construction and operation of transportation facilities.  The statute also authorizes the transportation department to enter into comprehensive development agreements for the financing, development, design, construction or operation of transportation facilities.

The statute includes specific contract requirements for agreements with private entities for fee collection by the private entity for the use of a facility or a combination of facilities that are part of the Trans-Texas Corridor.

Utah

Utah Code Ann. §72-6-118; §72-2-120.

Section 72-6-118 authorizes toll roads, including those operated by private entities.  The statute requires that revenue generated from toll projects be deposited into the Tollway Restricted Account created in Section 72-2-120 and to be used for acquisition of right-of-way and the design, construction, reconstruction, operation, maintenance and enforcement of transportation facilities within the corridor served by the tollway.

Virginia

Va. Code §56-556 et seq.

The Public-Private Transportation Act of 1995 is intended to encourage private investment in transportation facilities.  The statute authorizes private entities to develop and/or operate transportation facilities in the state.  It requires approval from the responsible public entity of public-private agreements and includes specific requirements for all public-private agreements.  The statute also stipulates the powers and duties of a private entity in a public-private agreement and provides financing mechanisms.

Washington

Wash. Rev. Code §47.46.010 et seq.; §47.10.834.

Authorizes public-private transportation initiatives.  The statute includes provisions for public involvement and approval of public-private initiatives.  Section 47-10-834 authorizes bonds to fund public-private partnerships.

Wisconsin

Wis. Stat. §84.01(30)

Authorizes the transportation department to enter into build-operate-lease or transfer agreements with private entities for the construction of transportation projects.  The statute lists specific provisions that must be included in every agreement.

Puerto Rico

9 Leyes P.R. An. §2001 et seq.

Gives a toll transportation facility authority the power to authorize private participation in public highway projects.

Source: NCSL complication, 2006.