By Kelley Rosenbaum Schenck and Kenneth R. Sagan
Note: This editorial was originally published as
Sponsored Content in Insider Louisville on June 6, 2016. GLI successfully
lobbied for the passage of Public-Private Partnerships during the 2016 General
Assembly. Stoll Keenon Ogden PLLC is a Top Investor of GLI.
Nearly 75 percent of states have enacted public-private
partnership (P3) legislation. On April 8, 2016, Kentucky joined these states
when Gov. Matt Bevin signed House Bill 309 into law. This legislation is
provides a clear statutory framework for public-private partnerships in
Kentucky, authorizing state and local governments to use P3 as an alternative
method of procurement, construction and financing of capital projects, services
and certain major transportation projects.
Previously, P3 agreements in Kentucky had to
be structured using procurement laws that were difficult to navigate and were
not specifically designed for P3.
What you need to know about Kentucky’s P3 law...
or before December 31, 2016, the Finance and Administration Cabinet Secretary
is required to promulgate administrative regulations setting forth criteria to
be used in determining when a public-private partnership may be used for a
state P3 project with a value of $25 million or more requires legislative
of Requests for Proposals for state P3 projects must be submitted to the
Capital Projects and Bond Oversight Committee.
one limited exception, all state P3 agreements must be submitted to the
Government Contract Review Committee.
may submit unsolicited proposals for a P3 project to a state or local
governmental body. If the governmental body determines it will consider further
action on the proposal, the public will be given notice of the proposal as well
as proposal details; the notice will provide a 90-day period for the submission
of competing proposals.
P3 deals with local governments must be approved by the legislative body of the
local government at a public meeting.
agreements with local governments must contain certain provisions, including
review and approval of the project’s plans and specification by the local
government, and the delivery of periodic financial statements by the private
law establishes the Kentucky Local Government Public-Private Partnership Board
within the Finance and Administration Cabinet. This 11-member Board will
evaluate and approve all P3 agreements with local governments that have a
contractual value of 30% or more of the local government’s general fund
revenues during the preceding fiscal year.
Auditor of Public Accounts may review P3 agreements executed by local
governments and any actions undertaken by their private partners pursuant to
deals with colleges or universities involving a lease must be approved by that
institution’s governing board.
law prohibits the imposition of tolls on any transportation project that would
link Kentucky and Ohio.
Kentucky’s P3 law provides a legal framework
for innovative new partnerships and alternative financing arrangements between
government and the private sector.
Stoll Keenon Ogden’s public-private
partnership lawyers have experience assisting both governmental entities and
private businesses with structuring and completing P3 deals. A team of SKO
lawyers recently assisted Eastern Kentucky University with a $75 million P3
project to construct two new residence halls that will help revitalize EKU’s