The Senate of Kentucky, USA, has recently passed by a 29-9 vote the House Bill 309, a bill that will provide a framework and a new legislation for the development and financing of new projects through public-private partnership (PPP) models. 

The PPP legislation seeks to provide an alternative method of procurement, construction, or financing of capital projects and services by state and local governments through the establishment of a regulatory framework that the state and local governments will follow when contracting with a private entity.

Local governments wll also be able to use P3s and there would be added oversight with the creation of the 11-member Kentucky Local Government Public-Private Partnership Board, which would evaluate and approve P3 agreements that have a value worth 30 percent or more of the local government’s general revenues. The state Auditor’s office would also have authority to periodically review local P3 agreements.

According to sources, Leslie A. Combs, the member of the Kentucky House of Representatives who sponsored the measure, said:

“My bill is to make sure these governments have added flexibility in how they carry these contracts out and to make sure that the public has much more input in the process. By streamlining it, every agency will be operating off the same set of rules, ensuring all of them are following proper protocol. Given my work chairing the House Budget Review Subcommittee on Transportation, I know very well what P3 could mean for our highway system. We can no longer rely on the federal government for major projects, and there are limits on what we can do at the state level without putting pressure on other projects. By partnering with the private sector, we will have another opportunity to move forward like other states are already doing. It’s a win for everyone involved.”

Max Wise, a member of the Kentucky State Senate, said:

“The bill creates a transparent process which state and local governments will follow. The primary benefit will be to position Kentucky as ‘open for business,’ especially as it relates to big-ticket infrastructure projects that state and local governments cannot afford without some private money during tight budget years.”

Dave Adkisson, Kentucky Chamber President and CEO, commented:

“This is a bill that will move the Commonwealth forward on important investments, complete necessary infrastructure projects and efficiently serve the public. Rep. Combs and Sen. Max Wise have worked to ensure this legislation offers the greatest level of taxpayer protections and transparency by requiring decisions on P3 projects to be made in the daylight with legislative oversight. House Bill 309 creates a clear process in statute for both government and businesses to follow which levels the playing field for those pursing a P3.”

PPP legislation already was passed in the 2014 General Assembly, but the governor at that time Steve Beshear refused the bill approval.