Public-Private Partnership Bill Passes Georgia Senate to Pave Way for Widespread P3 in Georgia

by Eversheds Sutherland (US) LLP
Contact

Georgia may soon join the growing ranks of states with broad enabling legislation for all forms of public-private partnerships (or P3). Senate Bill 255 (2013) passed the Georgia State Senate on Monday, February 24, 2014, by a vote of 43 to 8. The Bill now goes to the Georgia House of Representatives, where 11 days of session remain for the House to enact the legislation into law.

P3 allows a public entity (such as the State of Georgia, one of its 159 counties, a city or town, or a municipal body such as a school district or water authority) to “partner” with private entities where the private side of the partnership is responsible for some aspect of a development that would typically be the public entity's responsibility, such as financing, design, operation or maintenance. Georgia currently has P3-enabling legislation permitting the Georgia Department of Transportation (GDOT) to procure transportation projects promoting congestion mitigation or economic development (see O.C.G.A. § 32-2-78 to -80) and for water resources projects (see O.C.G.A. § 36-91-100, et seq.). SB 255 is broader and encompasses all public bodies and types of construction projects.

SB 255 authorizes public entities to accept solicited and unsolicited proposals for the development or operation of a qualifying project that meets a public purpose and public need. The legislation requires an appropriate public entity to enter into an agreement with private entities either through competitive sealed proposals or through a process of competitive negotiation. A P3 agreement under the statute will address requirements for scope of work, performance and payment bonds, letters of credit, or other forms of security, as well as public liability insurance. SB 255 also addresses the effect of significant or material breaches of any contract and powers that are reserved to the public entity. Before accepting an unsolicited proposal, the public authority would be required first to solicit and fairly consider competing proposals.

SB 255, if passed, will create an administrative Guidelines Committee as well as a Joint Legislative Oversight Committee to help regulate the way P3 contracts are awarded and managed. The Guidelines Committee, composed of 12 people, would be responsible for establishing model guidelines for P3 contracting that are mandatory for all state agencies and optional for local governments (so long as the local guidelines are not inconsistent with the legislation). These guidelines will be issued by July 1, 2015, and updated every two years thereafter. The Joint Legislative Oversight Committee will periodically inquire into and review the operations of the Guidelines Committee, as well as how successfully the Guidelines Committee is accomplishing its statutory duties and functions, and will report to the Legislature.

SB 255’s passage Monday means that the bill, introduced by Hunter Hill of the 6th District in March 2013, survives Crossover Day. SB 255 went to the House First Readers Tuesday, February 25, 2014, and will be assigned to the House Transportation Committee. To be enacted, the House must pass the legislation on or before the last day of the 2014 session, March 20, 2014.

Sutherland’s Construction Industry Practice Group continues to closely monitor the state of P3s in Georgia and elsewhere. Should SB 255 pass the House, receive the Governor’s signature, and become law, the construction industry in Georgia can expect significant opportunities for P3 development with state, county, city, and other municipal authorities across Georgia. The types of projects well-suited for P3 run the gambit of the construction industry, including roads and highways, bridges, mass transit and rail, ports and aviation facilities, water distribution and treatment, energy production, and social infrastructure such as schools, prisons, courthouses, convention centers, and public housing.
 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:

Eversheds Sutherland (US) LLP
Contact
more
less

Eversheds Sutherland (US) LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.