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OVERVIEW OF STATES WITH SIGNIFICANT TRANSPORTATION PUBLIC PRIVATE PARTNERSHIP ("PPP") AUTHORITY
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(Reflects legislative developments through August 2006)1

 
State: Statute: Comments:
AL

ALA. CODE §§ 23-1-80 to 23-1-95

Authorizes the Alabama DOT and county commissions to establish toll roads, toll bridges, ferries or causeways or allow for their operation by private parties.  No express provision regarding the solicitation or acceptance of unsolicited proposals.

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AK

ALASKA STAT. §§ 19.75.111, .113, .211, .221, .330, .332, .334, .336, .338, .340, .241, .915, .920, and .980

Authorizes the Knik Arm Bridge and Toll Authority to utilize a PPP to finance, design, construct, operate and maintain the Knik Arm bridge.

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AZ

ARIZ. REV. STAT. §§ 28-7701 to 28-7758

Two pilot programs each allow up to two solicited and unsolicited proposals. 

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CA

CAL STS & HY CODE §143
CAL STS & HY CODE §§149-149.6
CAL STS & HY CODE § 149.7
CAL GOV CODE §§5956-5956.10

AB 1467, enacted in by the Governor and Chaptered by the Secretary of State in May 2006, added §§143 and 149.7 to the California Streets and Highways Code.  The bill authorizes the department and regional transportation agencies to enter into lease agreements with public and private entities.  The pilot program limited to 2 projects in northern California and 2 in southern California until January 1, 2012.  This statute also authorizes high-occupancy toll lanes.  Solicited and unsolicited proposals are permitted under the statute.  AB 521, enacted by the Governor and Chaptered by the Secretary of State in September 2006, amended §143 California Streets and Highways Code to limit the time and scope of the Legislature’s review of a lease agreement.

Cal. Sts. & Hy Code §§ 149.1-149.6 authorizes the San Diego Association of Governments to undertake specified tolling and public-private partnership projects.

Cal Gov Code §§ 5956-5956.10  (AB 2660 (1996)) authorizes local governments to pursue PPPs for a range of “fee-producing infrastructure projects,” but explicitly excludes the use of toll roads on state highways (§ 5956.10).

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CO

COLO. REV. STAT. §§43-1-1201 through 1209

COLO. REV. STAT. §§43-4-801 through 812

COLO. REV. STAT. §§ 43-3-201 through 43-3-416

Allows solicited and unsolicited proposals for PPPs.
Created a statewide tolling enterprise to finance, build, operate and maintain toll highways.  Operated as a government-owned business within the Colorado DOT.
Provides PPP authority to Colorado DOT for specific projects including turnpikes and HOT lanes.

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DE

DEL. CODE ANN. tit. 2, part II, ch. 20, §§ 2001 through 2012

Authorizes solicited and unsolicited proposals for PPP projects, including highways and bridges.

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FL

FLA. STAT. ANN. § 334.30 ; § 337.251 ;     
§ 338.165 ; §§ 338.22 through 338.251 ;
§ 339.55

Allows Florida DOT to receive or solicit proposals for PPPs.
A 1953 statute established the Florida Turnpike Enterprise, which operates like a private-sector business within the Florida DOT.  Projects must have the concurrence of FL DOT and be consistent with the Florida Transportation Plan.  Non-compete clauses are prohibited.

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GA

GA. CODE. ANN. §§ 32-2-78 through 32-2-80

In May 2005, several significant amendments to this statute were enacted as S.B. 270.  The statute now allows Georgia DOT to both receive and solicit proposals for PPPs.  Potential competitors also have 135 days (instead of 90 days) to respond to an unsolicited proposal.

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IN

IND. CODE §§8-15 ; 8-15.5 ; 8-15.7 ; and 8-23-7-22 through 25

HB 1008, passed as Public Law 47, authorizes the Indiana Toll Road lease transaction.  The legislation also establishes the process for entering into a public-private agreement on I-69 from Indianapolis to Evansville, and specifically prohibits the State from entering into such an agreement for any other road or project without further legislative approval. 

While similar in scope to the authorization for the Indiana Toll Road lease, there are a number of significant differences in the process for procuring an I-69 agreement.  As an example, the I-69 PPA will be administered by INDOT, instead of the Indiana Finance Authority. 

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LA

LA. REV. STAT. ANN. §§48:2072(C) and (D); 48:2084 through 2084.15

Louisiana Act 304 authorizes “the Louisiana Transportation Authority to pursue public-private partnerships for the construction for certain transportation facilities."  Authority may approve unsolicited and solicited proposals.

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MD

MD CODE REGS. 11.07.06
MD. TRANSP. CODE ANN. § 8-204
MD PPP Guidance

Maryland does not have a statute expressly authorizing highway PPPs.  However, Maryland established a public-private partnership program by regulation.  Additionally, according to a 1996 Attorney General opinion referenced in the annotations to this statute, the Maryland Transportation Authority has authority to construct toll roads using certain forms of PPPs. 2

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MN

MINN. STAT. ANN. §§ 160.84 through 160.93

Authorizes solicited and unsolicited PPPs for toll facilities.  Authorizes HOT lanes.

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MI

MISS. CODE ANN. §§ 65-43-1 through 65-43-13

Allows a governmental entity to accept unsolicited proposals for a new toll road or to solicit proposals. This authority is restricted to construction of new toll roads and bridges for motor vehicle traffic, and toll roads may be constructed only where an alternative untolled route exists.  No-compete clauses are prohibited.

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MO

MO. REV. STAT. §§227.600 through .669
MO. REV. STAT. §§238.300 through .367

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.  The corporation is authorized to issue bonds and establish and charge user fees for projects.  No express provision regarding the solicitation or acceptance of unsolicited proposals. 

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NV

NEV. REV. STAT. §§ 338.161 through 168

Authorizes public bodies to accept unsolicited proposals to develop, construct, improve, maintain or operate transportation facilities, so long as it serves a public purpose.  Toll bridge and toll road projects, however, are prohibited under this statute.

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NC

N.C. GEN. STATE. §§ 136-89.180 through 136-89.198

North Carolina Turnpike Authority now authorized to develop, construct, operate and maintain up to nine toll facilities, including a toll bridge. Solicited process only.

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OR

OR. REV. STAT. §§ 367.800 through 367.826
OR. REV. STAT. §§ 383.001 through 383.019

Establishes the Oregon Innovative Partnerships Program with detailed guidelines at
OAR 731-070-0005 to 731-070-0360.

Allows Oregon DOT to solicit and accept unsolicited PPPs for tollway projects.

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PR

9 Leyes P.R. An. §§ 2001 through 2021

This statute establishes a toll transportation facility authority with broad powers to authorize private participation in public highway projects.

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SC

S.C. CODE § 57-3-200
S.C. CODE § 57-5-1310 through 1495

Allows South Carolina DOT to enter into PPPs.

Allows DOT to construct and operate turnpike facilities; § 57-5-1330.4 appears to permit SC DOT to use PPPs to develop these facilities.  No express provision regarding the solicitation or acceptance of unsolicited proposals.

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TN

TENN. CODE ANN. §§ 54-3-101 through 54-3-113 (Tennessee Tollway Act)

The Tennessee Tollway Act of 2007 gives the state government authority to enter into contracts with a private party for the purposes of developing or operating a tollway or toll facility.  No express provision regarding the solicitation or acceptance of unsolicited proposals.  The initial number of tollway projects is limited to two.  While existing or partially constructed highways cannot be converted into tollroads, additional lane capacity constructed on or along an existing highway or bridge may be developed and operated like a tollway.  Prior legislative approval is required when an individual PPP proposal is received.

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TX

TX. TRANSP. CODE ANN. Ch. 91 , 222 , 223 , 227, 228 , 366 , and 370

Allows TxDOT, the Texas Turnpike Authority, Regional Mobility Authorities, and Regional Tollway Authorities to accept solicited and unsolicited proposals for Comprehensive Development Agreements (CDAs).  CDAs are defined and require a popular vote for any conversion from free lanes to tolled.  It also limits toll franchises to 50 years in most circumstances, and non-compete clauses are prohibited.

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UT

UT. CODE ANN. §§63-56-502.5 ; 72-6-118 ; and 72-6-201 through 206

SB 80 authorizes the Utah DOT, with approval from the Transportation Commission, to accept solicited and unsolicited proposals for PPPs involving tollway facilities through the use of “tollway development agreements.” 

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VA

VA. CODE ANN. §§ 56-556 through 56-575

Virginia’s Public-Private Transportation Act of 1995 authorizes PPPs and was modified during the 2005 legislative session.  Allows solicited and unsolicited proposals.  Contains detailed guidelines to assist VDOT and other public entities in implementing this program.

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WA

WASH. REV. CODE Ch. 47.29
WASH. REV. CODE Ch. 47.46

New PPP enabling legislation was enacted in May 2005 (as H.B. 1541). In the findings of that legislation, the legislature noted that the public-private transportation initiatives created under Wash. Rev. Code Ch. 47.46 has not met the needs and expectations of the public or private sectors for the development of transportation projects. Under the new statute, the exclusive source of financing for WashDOT projects is state treasurer-issued indebtedness; and no such indebtedness, or expenditures from it, may occur without prior legislative approval.  Currently, solicited proposals only, but unsolicited proposals may be accepted after 6/30/07.

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1 This survey should not be construed as legal advice regarding any particular project in any state. Please contact bchase@nossaman.com with any additions or corrections.

2 See MD 81 Op. Att’y Gen. (issued 2/2/96).

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