PPP Legislation - Public Private Partnerships

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PPP Legislation

ANALYSIS FOR STATE OF MISSOURI

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Statute:

MO. REV. STAT. §§227.600 through .669

MO. REV. STAT. §§238.300 through .367

Summary:

Mo. Rev. Stat. §§227.600 through .669, also known as the Missouri Public-Private Partnership Transportation Act, authorizes the Highways and Transportation Commission to form a public-private partnership to use private sector innovation and investment to build a new Missouri River bridge in St. Louis, connecting to Illinois. The authority is limited to the bridge only. The statute does allow private partners to submit unsolicited proposals. The Commission is authorized to enter into interim and comprehensive agreements with a private partner.

Mo. Rev. Stat. §§238.300 through .367 creates a special purpose non-profit corporation known as a Transportation Corporation as a vehicle for PPPs. No express provision regarding the solicitation or acceptance of unsolicited proposals.

Key Elements of Missouri's PPP Enabling Legislation	Last Updated: August 2006
Not applicable

No.	Issue:	Short Answer:	Sample Provision:
1.	Does the relevant law allow solicited and unsolicited proposals for PPP projects?	Yes.	§227.606.1 allows a potential private proposer to submit a proposal to the commission.
2.	Does the relevant law permit local/state/federal funds to be combined with private sector funds on a PPP project?	No express provision.	§227.645.1 allows the commission and private partner to use any and all revenues available.
3.	Who has rate-setting authority to impose user fees and under what circumstances may they be changed or otherwise reviewed?	Agreement.	§227.639. The rate of user fees may be established in the agreement.
4.	Does the relevant law permit TIFIA loans to be used on PPP projects?
5.	Is the number of PPP projects limited to only a few "pilot" or "demonstration" projects?	Yes.	§227.600.2(10) limits the definition of “project” to a bridge connecting Missouri and Illinois.
6.	Are there restrictions concerning the geographic location of PPP projects?	Yes.	§227.600.2(10) limits the definition of “project” to a bridge connecting Missouri and Illinois.
7.	Are there restrictions concerning the particular mode of transportation eligible to be developed as a PPP project (e.g., truck, passenger auto, freight rail, passenger rail)?	Yes.	Limited to a bridge only.
8.	Is there a legal requirement to remove tolls after the repayment of project debt?	No.
9.	Does the relevant law permit the conversion of existing or partially constructed highways into toll roads?	No.	The statute is limited to the construction of a new bridge.
10.	Is there a restriction that prevents the revenues from PPP projects from being diverted to the state's general fund or for other unrelated uses?	No.
11.	Is prior legislative approval required when an individual PPP proposal is received?	No.
12.	Are there any similar requirements that subject the PPP proposal or the negotiated PPP agreement to a local veto?	No.
13.	Does the relevant law permit all kinds of procurements for PPP project delivery? These might include, for example, calls for projects, competitive RFQ and RFPs, qualifications review followed by an evaluation of proposer concepts, use of design build, procurements based on financial terms such as return on equity rather than on price, long-term asset leases for some period of up to 60 years or longer from the time operations commence?	Yes.	§227.609.1 requires the commission to use a competitive procurement process. See also §227.648.
14.	Are there explicit exemptions/supplemental procurement authority from the application of the state's general procurement laws?	Yes.	The commission may exempt the project from the State’s procurement laws under §227.648(3).
15.	Does the relevant law authorize the public sector to grant long-term leases/franchises for the construction, operation and maintenance of toll facilities?	Yes.	§227.618 and .621 allows the commission to enter into an interim and comprehensive agreement for the finance, develop, and/or operate the project.
16.	Does the public sector have the authority to issue toll revenue bonds or notes?	Yes.	§227.630(4) gives a private partner the authority to borrow money for project purposes. §227.645.2 allows the private sector to issue bonds. Under that section, the Commission may contract with the private partner to issue bonds.
17.	Does the public sector have the authority to form nonprofits and let them issue debt on behalf of a public agency?	No.
18.	Does the relevant public agency have the authority to hire its own technical and legal consultants?	No express provision.
19.	Does the relevant law permit the public sector to make payments to unsuccessful bidders for work product contained in their proposals?	No express provision.
20.	Can the agency charge application fees to offset its proposal review costs?	Yes.	§227.606.2 allows the commission to charge a reasonable fee to cover the costs of processing, reviewing, and evaluating an unsolicited proposal. But, §227.609.3 prohibits the commission from charging a processing and review fee for a proposal received in response to a request for proposal.
21.	Does the relevant law allow adequate time for the preparation, submission and evaluation of competitive proposals? Note that the agency should have the authority to establish these deadlines on a case-by-case basis depending on the complexity and scope of the initial proposal or other factors that might promote competition (e.g., more review time during holiday periods).	Yes.	§227.612.1. The commission must establish a process for reviewing a request approval or proposal. §227.618.1 requires the commission to establish criteria for determining whether a request for approval or proposal provides the best value to a State.
22.	Is the public sector required to maintain comparable non-toll routes when it establishes new toll roads?	No.
23.	Are there any non-compete clause prohibitions?	No.
24.	Is the authority to enter into PPPs restricted to the state DOT or state turnpike authority or may regional or local entities also do so?	Restricted.	Commission only.
25.	Does the relevant law specify evaluation criteria for PPP proposals received under a given procurement approach?	No.	§227.612.1 requires the commission to establish a process to review a request. §227.618.1 provides the commission with the authority to accept a proposal that provides the best value to the state.
26.	Does the relevant law specify the structure and participants for the review process involving PPP proposals?	No.
27.	Does the relevant law protect the confidentiality of PPP proposals and any related negotiations in the period prior to execution of the PPP agreement?	Yes.	§227.627 provides that information submitted as part of a proposal will be a “closed record”. However, interim agreements and comprehensive agreements will be “open records”.
28.	Does the relevant law provide for the ability of the public sector to outsource long-term operations and maintenance and other asset management duties to the private sector?	Yes.	§227.618 and .621 allows the commission to enter into an interim and comprehensive agreement to operate the project.

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