HB4502

Privatiztion Watch:

Illinois

A Coalition of Organizations to

Protect the Public Commons

PPPs Public-Private Partnerships

To:

From:

Re:

Dear Representative,

We are requesting your support in amending the HB 4502, TRANS: Pub-Private Partnerships Act.

HISTORY of HB 4502: 1-31-2012, First Reading; 1-31-2012, referred to Rules Committee

SPONSOR: Rep. Elaine Nekritz

Amends the Public-Private Partnerships for Transportation Act. Defines "design-build agreement" and "shortlist". Provides that the net proceeds, if any, arising out of a transportation project or public-private agreement undertaken by the Department of Transportation under the Act shall be deposited into the Road

instead of the State Construction Account) Fund. Removes language providing that the Toll Highway Authority shall not enter into a public-private agreement for the purpose of making roadway improvements. Provides hearing requirements to address potential projects submitted to the General Assembly under the Act. Makes other changes in the Section concerning formation of public-private agreements and project planning. Replaces provisions concerning the selection of design work contractors and procurement procedure provisions for public agencies. Replaces prequalification provisions with provisions concerning shortlisting. Re-letters the subsections of a Section concerning procurement process and makes other changes to that Section. Makes changes in a Section concerning design-build procurement. Replaces "construction" with "development" and adds design-build-finance agreements to the list of acceptable forms of agreement. Removes language making a transportation agency taking over a project subject to liens on revenues which had been previously granted by the contractor. Provides that public and private entities shall have an equal opportunity to contract with the Authority. Makes a change in the Section concerning financial arrangements. Provides that a public-private agreement may not exceed 65 (instead of 99) years. Effective immediately.

HB 1091 The Public-Private Partnership for Transportation Act

HISTORY, HB 1091: Sponsored by Rep. Elaine Nekritz in the House and Sen. Heather Steans in the Senate. PASSED BOTH HOUSES: May 28, 2011. SIGNED: August 23, 2011 by Governor Quinn as PA 97-0602

SYNOPSIS OF HB 1091 AS INTRODUCED:

Creates the Public-Private Partnerships for Transportation Act. Contains a statement of public policy and legislative intent. Grants to the Illinois Department of Transportation and the Illinois State Toll Highway Authority the necessary powers for the development, financing, and operation of transportation projects through public-private agreements with one or more private entities. Contains provisions regarding procurement, agreements, development and operations standards for transportation projects, financial arrangements, acquisition of property, labor matters, law enforcement, property, powers, prohibitions, and other matters. Amends the Department of Transportation Law of the Civil Administrative Code of Illinois; Illinois Finance Authority Act; Illinois Procurement Code; Public Construction Bond Act; Employment of Illinois Workers on Public Works Act; Business Enterprise for Minorities, Females, and Persons with Disabilities Act; Retailers' Occupation Tax Act; Property Tax Code; Toll Highway Act; and Prevailing Wage Act to implement and conform to the new Act. Makes other changes. Effective immediately.

SUMMARY OF CONCERNS:

The original bill, which gives enormous power to the Transportation Agencies over projects that could amount to millions or even billions of dollars, is seriously flawed. The Trailer Bill fails to correct many, if not most of these flaws.

The Trailer Bill adds some token additional transparency but still fails to provide for sufficient transparency and public oversight.

The Trailer Bill fails to correct the lack of sufficient legislative and gubernatorial oversight provided by the original bill. The bill fails to correct loopholes in the original bill that open the door for serious abuses.

The Trailer Bill fails to correct the lack of protection for workers rights in the original bill.

The Trailer Bill reduces the maximum term of a contract to 65 years (from 99 years), which is still much too long.

The Trailer Bill fails to provide for an alternative financing that would be less costly to the state than financing through private banking institutions, which can nearly double the costs over the life of a project

The Trailer Bill fails to correct the provision of HB 1091 which allows commingling of public and private funds.

The Trailer Bill removes a significant public and workers protection regarding construction on existing Toll Roads (HB 1091, Section (b) ).

The Trailer Bill fails to offer sufficient protections for citizens facing eminent domain.

ACTION REQUESTED:

- Please advise us when action is being taken on the bill.

- Please support the attached recommendations.

- Please introduce one or more of the recommendations as amendments to HB 4502.

We urge you to protect the citizens of Illinois by correcting the deficiencies of this bill. We would like your support for our recommendations to this bill.

We look forward to working with you on this bill.

Privatization Watch Illinois

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