Many federal, state and local government agencies are looking for innovative and cost effective methods to deliver essential social infrastructure such as educational facilities, hospitals and criminal justice facilities and related infrastructure. As a result, these agencies are increasingly interested in assessing and pursuing the P3 delivery model. However, these agencies often lack clear statutory authority to use a P3 delivery model for social infrastructure. Recognizing this gap, Nossaman has developed a model social infrastructure P3 bill, based on its extensive experience in advising US public agencies on the use of innovative delivery methods for other classes of infrastructure. A copy of the model bill can be viewed here.
A draft version of the model bill was released for industry comment on April 28, 2014, and was favorably received and generated interest and input from various sectors. A few minor revisions were made to the bill following the comment period, which closed on June 11, 2014.
The model bill seeks to provide the authorizations that a public sponsor would need to engage in the P3 delivery of social infrastructure projects. At the same time, the model bill is designed to provide flexibility to a public sponsor to fashion its project and procurement to suit its unique needs and goals. As such, it avoids setting out detailed, rigid rules that a public sponsor must follow in the execution of a P3 project.
The model bill is not designed to address the specific requirements of every jurisdiction. Rather, the model bill presents options and issues for consideration by legislators and addresses hurdles to P3 delivery that are common across many jurisdictions. Every jurisdiction will have its own unique legal and policy restrictions and requirements that would need to be taken into account in the development of its authorizing legislation.