7. Principles for state legislators

These principles are intended to help guide state legislators in the process of making important policy decisions about PPPs. Rather than providing specific recommendations about PPP legislation and specific statutory provisions, these are general good governance principles that can support legislative decision making about whether and how to involve the private sector in the traditionally public-sector enterprise of providing transportation infrastructure. The principles are drawn from the literature and the combined wisdom of the NCSL Partners Project.

The principles relate mainly to the stages of the process in which legislatures are most directly involved: deciding whether a state will engage in PPPs and creating a policy framework. Some also are relevant to stages for which legislative involvement is usually less direct, including development of a PPP program; project selection; procurement processes such as negotiation and bidding; contracting; and contract management and oversight. The role of executive agencies in these areas also is described.