Authorizes the establishment and operation of public-private partnerships for the construction and operation of public infrastructure

1 Co-sponsor

• John L. Sampson

BILL NUMBER:S5501B REVISED MEMO 04/22/2014

Title of bill

An act to amend the executive law, in relation to authorizing the establishment and operation of public-private partnerships for the construction and operation of public infrastructure; to amend the public authorities law, in relation to authorizing the dormitory authority to provide financing for public infrastructure; and to amend the local finance law, in relation to authorizing municipalities and school districts to contract indebtedness for purposes of financing public-private partnerships

Purpose

To allow private entities to develop and/or operate public infrastructure that will provide more timely, efficient and cost-saving benefits to the State of New York.

Summary of provisions

Section 1. Intent of legislation

Section 2. Amends the executive law by adding a new article 14-A Public-Private Partnership In Public Infrastructure and provides the following new sections:

Section 275. Definitions.

275-a. Public-private Partnership Board.

276. Powers, rights, duties and limitations of parties.

277. Procurement.

278. Multiple public entities and special purpose vehicles.

278-a Comprehensive agreements.

279. Material default; remedies.

279-a. Public work.

280. Construction.

281. Severability.

Section 3. Establishes the effective date.

Justification

Public Private Partnership (P3) projects have fostered economic growth and job creation throughout the country. This legislation will authorize the use the P3 model in New York State, creating synergy between public authorities and private sector companies, ensuring that we have access to the knowledge, skills and expertise of the best and brightest from the private and public sector.

In New York State we have an immediate need to infrastructure development and replacement. This legislation will afford New York State and the public sector the ability to successfully keep pace investing in our infrastructure and building new bridges, roads and public works projects.

With the introduction of P3 projects, New York State can help transfer the risks associated with a building project from a government entity to a private partner. One of the benefits is that the private partner would be responsible for project cost overruns which would eliminate the government's risk of having to find additional public funds to complete a project. In addition, by using a private developer's access to capital it can free up government funds to advance the construction of other infrastructure projects and provide the public improved infrastructure sooner than would otherwise be possible.

Legislative history

New legislation.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.