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An Act Relating To Transportation; Enacting The Transportation Public-private Partnerships Act; Allowing The State And Certain Local Governments To Enter Into Long-term Partnerships With Private Sector Partners To Provide Revenue-producing Transportation Facilities; Providing Powers And Duties; Allowing For The Issuance Of Revenue Bonds; Exempting Public-private Partnerships From The Procurement Code; Prescribing Penalties; Making Appropriations.

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MOD SB 273

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SB 273 on
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Related Documents

SCORC Committee Report
Fiscal Impact Report

Senate Bill 405 enacts the Transportation Public-Private Partnerships Act that allows the Transportation Department and certain local governments to enter into long-term partnerships with private sector partners for the development, financing, maintenance or operation of transportation facilities. The Attorney General and State Board of Finance must approve any proposed public-private partnership for it to become effective. The bill sets forth extensive detail regarding the partnerships.


The legislation defines a public-private partnership as an agreement among at least one public partner and at least one private partner “for the development, financing, maintenance or operation of a transportation facility,” (for example, a lease, franchise, easement, or permit) “that transfers rights for the use or control, in whole or in part, of a transportation facility by the public partner to the private partner.”


“Transportation facility” includes facilities that are used or useful to transport people or goods via one or more modes of transport or are related, “used or useful to provide, operate, maintain or generate revenue for a transportation facility.”


Other salient features of the bill include:

  • The State will have the power of eminent domain “even if the property will be leased to the private partner to use, lease or operate for its business purposes in connection with the public-private partnership.”
  • The public partner is authorized to issue revenue bonds and refunding revenue bonds.
  • The project will revert to the public partner and will be dedicated for public use if the partnership terminates.


It appears that the bill may be a positive step towards completing transportation facilities that could not be done by the State alone due to a lack of funding. On the other hand, the bill may raise concerns about the extent of a private partner’s control of a project and what that control might mean. Another concern might be over the power of eminent domain that is authorized for the public partner and that the power might be used even when the private partner may use the project for its own business purposes.


Date of Summary:  2/13/2013