On June 3, 2011, in an effort to seek new sources of investment capital and deliver infrastructure improvements, the Illinois General Assembly passed the Public-Private Partnerships for Transportation Act (HB 1091), which is now in the hands of Illinois Governor Pat Quinn to sign into law. Highlights of the PPP Act, which Mayer Brown lawyers were significantly involved in drafting, include:
- The Illinois Department of Transportation and the Illinois State Toll Highway Authority are authorized to enter into PPP transactions.
- The Illinois General Assembly must approve all potential PPP projects prior to issuing RFQs or RFPs.
- All projects considered for public-private partnerships must be consistent with the corresponding region’s plan, provided the region has a Metropolitan Planning Organization.
- The Commission on Government Forecasting and Accountability will conduct an independent review of each project proposal prior to final approval of a PPP to ensure it serves the public’s interest.
- The Illinois Tollway Authority cannot lease existing assets.
- In cases where the project pertains to an existing transportation facility, the contractor will adhere to all existing employee contracts and obligations.
- Property belonging to the State of Illinois is not subject to taxation.