Public-private Partnerships for State Public Entities

C.R.S. tit. 24, art. 94

in effect

C.R.S. § 24-94-101 Legislative declaration

24-94-101. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) Public-private partnerships are an effective tool to leverage the expertise and resources of both the public and private sectors to accommodate multifaceted social infrastructure and operational needs; (b) Public-private partnerships have a proven track record of enabling public projects to be completed on time and at a lower cost than either the public or private sectors are able to achieve alone; (c) Delivering public projects through public-private partnerships is an effective model to accommodate some of our state's most pressing and foundational needs, such as increased behavioral health capacity, broadband deployment, affordable housing development, and child care services; (d) The COVID-19 pandemic forced the closure of many child care facilities and classrooms, exacerbating a child care shortage that forced many parents to compromise between work and family life; and (e) Colorado families have long struggled with the cost of child care and it remains one of the primary barriers to full participation in the workforce. (2) The general assembly further finds and declares that it is the intent of this article 94 to permit state public entities to enter into public-private partnerships to: (a) Develop, build, finance, operate, and maintain quality, cost-effective public projects that provide economic and social value; (b) Provide a well-defined and transparent process to facilitate collaboration between state public entities and private partners while enabling access to private capital; (c) Bring innovative thinking and approaches to public projects; (d) Reduce total life-cycle costs of public projects; and (e) Allow for cost, risk, and benefit sharing between public and private partners.

C.R.S. § 24-94-102 Definitions

24-94-102. Definitions. As used in this article 94, unless the context otherwise requires: (1) "Department" means the department of personnel. (2) "Develop" means to plan, design, develop, build, establish, finance, lease, acquire, install, construct, reconstruct, or expand a public project. (3) "Executive director" means the executive director of the department of personnel or the executive director's designee. (4) "Finance" means the supply by a private partner of resources to accomplish all or any part of the work or services for a public project, including funds, financing, income, revenue, cost sharing, technology, personnel, equipment, expertise, data, or engineering, construction, or maintenance services. (5) "Operate" means to finance, operate, maintain, improve, equip, modify, repair, or administer a public project. (6) "Private partner" means any natural person, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, nonprofit entity, local government, other private business entity, or any combination thereof. (7) "Public-private agreement" means any agreement between one or more private partners and one or more state public entities that contractually provides for the responsibilities of all parties in negotiating, developing, or operating any aspect of a proposed or approved public project or financed purchased of an asset. "Public-private agreement" does not mean a grant or incentive program established in another provision of law or an agreement approved by the economic development commission pursuant to parts 1 and 3 of article 46 of this title 24. (8) "Public-private partnership" means an agreement between one or more state public entities and one or more private partners by which a state public entity may allocate responsibility or risk to a private partner to develop or operate a public project and, in return, the private partner may receive the right to all or a portion of fees generated by the public project, availability payments made by the state public entity, other public money, or any other legally available consideration. A public-private partnership does not confer onto the relationship formed any of the attributes or incidents of a partnership pursuant to section 7-60-106 or the common law. "Public-private partnership" does not mean any grant or incentive program established by another provision of law or agreements that are approved by the economic development commission, including but not limited to grant or incentive programs described in parts 1 and 3 of article 46 of this title 24. (9) "Public project" means any construction, alteration, repair, demolition, or improvement of any state-owned land, building, structure, facility, asset, or other public improvement suitable for and intended for use in the promotion of the public health, welfare, or safety, and any maintenance programs for the upkeep of such projects subject to part 2 of article 92 of this title 24. "Public project" includes but is not limited to a project for civic, child care, medical, utility, telecommunication, cultural, recreational, or educational facilities or services. (10) "State public entity" means any department, agency, or subdivision of the executive branch of state government; except that "state public entity" does not include state entities that have specific statutory authority to enter into public-private partnerships, including but not limited to the authority specified in sections 23-3.1-301 (1), 23-3.1-306.5, 24-33.5-510, 26-6.9-102, 32-22-105 (1)(a)(VIII), 40-2-123, and 43-4-806. (11) "Subcommittee" means the public-private partnership subcommittee of the Colorado economic development commission created in section 24-46-102 (4). (12) "Unit" means the public-private collaboration unit created in section 24-94-103 (2).

C.R.S. § 24-94-103 Public-private partnerships - oversight of state public entities in the executive branch of state government - definition - repeal

24-94-103. Public-private partnerships - oversight of state public entities in the executive branch of state government - definition - repeal. (1) Within one year of May 26, 2022, the executive director shall: (a) Create requirements regarding the authority for state public entities to initiate requests for proposals or bids or to review any private partner-initiated proposals for public projects to be completed through public-private partnerships subject to the executive director's approval pursuant to section 24-94-104(1). The processes may include, but need not be limited to: (I) Completion of analyses regarding perceived advantages, disadvantages, risks, benefits, costs, and value-for-money of a proposed public-private partnership; (II) Documented considerations of potential funding alternatives, impacts on affected communities, and the suitability and scope of a proposed public-private partnership; (III) Documented considerations of the entire life cycle of a proposed public-private partnership, including planning, design, engineering, construction, repair, maintenance, operations, financing, and handover; (IV) Due diligence requirements; and (V) Development of any other materials, analyses, considerations, requirements, or reports necessary for the executive director to make a determination that the proposal for a public-private partnership serves an important social or economic value, including but not limited to increased behavioral health capacity, broadband deployment, affordable housing development, child care services, or any other public benefit. (b) Create requirements regarding the authority for state public entities to execute public-private partnership agreements for public projects subject to the executive director's approval pursuant to section 24-94-104 (1). The processes may include, but need not be limited to: (I) Acceptable project delivery methods, including alternative delivery methods, for an approved public-private partnership proposal; (II) Acceptable financing methods for an approved public-private partnership, including but not limited to a pledge of, security of, interest in, or lien on property or interest in property, and any amounts, terms, and conditions to be included in public-private agreements; (III) Reporting requirements for state public entities and private partners throughout the life cycle of an executive director-approved public-private partnership; (IV) Policies concerning transparency and timely reporting; and (V) Developing a fair, unbiased method of choosing proposals based on the best interests of the state and considering financial costs and benefits to the state and public project users. (c) Further define any relevant terms in this article 94, including but not limited to public-private partnership and public-private agreement; and (d) Develop cost thresholds for public projects that qualify as a public-private partnership or public-private agreement, which may depend on the type of project and the responsible state public entity. (2) There is hereby established the public-private collaboration unit in the department. The unit shall: (a) In coordination with relevant state public entities, identify, prioritize, and advance potential public projects that may be best delivered through a public-private partnership; (b) Facilitate collaboration between state public entities and private partners in connection with public projects; (c) Provide technical assistance and expertise to state public entities in connection with any aspect of proposed or approved public-private partnerships, which may include assistance with: (I) Satisfying the requirements established by the executive director in subsections (1)(a) and (1)(b) of this section; (II) Project screening, planning, development, procurement, operations, and management; and (III) Serving as a liaison with federal and local government officials; onnection with any aspect of proposed or approved public-private partnerships, which may include assistance with: (I) Satisfying the requirements established by the executive director in subsections (1)(a) and (1)(b) of this section; (II) Project screening, planning, development, procurement, operations, and management; and (III) Serving as a liaison with federal and local government officials; (d) Create best practices that incorporate lessons learned from other public-private partnerships for every stage of the life cycle of a public-private partnership, which may include: (I) Standardizing methodologies and processes; (II) Creating templates for interagency agreements that identify project resources and responsibilities; and (III) Creating templates for partnership agreements that address risk allocations, key terms, and conditions; (e) Conduct public and stakeholder engagement to encourage transparency, accountability, and information sharing regarding public-private partnerships; (f) Track proposed, ongoing, and completed public-private partnerships; (g) Attract private investments for public projects; (h) In coordination with the department of early childhood, created in section 24-1-120.5 (1), distribute funding to help increase the supply of child care facilities using public buildings or other appropriate public assets; and (i) Give preference to proposed or executed public-private partnership agreements that will use state-owned real property for the purposes of mixed-income development and affordable housing that is proportional to the community's demonstrated affordable housing needs. (2.2) (a) The unit may: (I) Accept monetary and nonmonetary gifts, grants, and donations. Monetary gifts, grants, and donations shall be transferred by the unit to the state treasurer and credited by the state treasurer to the unused state-owned real property fund created in section 24-82-102.5 (5). (II) Accept, appropriate, hold in trust, and leverage, on behalf of private partners, proceeds from real estate transactions conducted in accordance with this section and other applicable state law, as well as revenues from public-private partnership agreements for public projects that provide affordable housing; (III) Use real property that, upon approval by the governor, has been deeded to the department by a state public entity for the purpose of carrying out the provisions of an executed or proposed public-private agreement or real estate state contract for a public project that provides affordable housing. In furtherance of this subsection (2.2)(a)(III), the unit may act as the department's agent in real estate transactions to: (A) Purchase state-owned real property; (B) Transfer state-owned real property; (C) Exchange state-owned real property; (D) Sell or otherwise dispose of state-owned real property subject to any procedures and limitations applicable to the state public entity to sell or otherwise dispose of property; (E) Enter into an agreement for easements or deed restrictions concerning state-owned real property; and (F) Enter into a lease agreement concerning state-owned real property. (IV) Use requests for information to solicit public projects that provide affordable housing and establish policies concerning a request for information process. ate public entity to sell or otherwise dispose of property; (E) Enter into an agreement for easements or deed restrictions concerning state-owned real property; and (F) Enter into a lease agreement concerning state-owned real property. (IV) Use requests for information to solicit public projects that provide affordable housing and establish policies concerning a request for information process. (b) As used in this subsection (2.2), unless the context otherwise requires: (I) "Public project that provides affordable housing" means a public project that includes housing proportional to a community's demonstrated affordable housing needs and may include mixed-use development. The percentage of income-restricted units and affordability levels in such a public project must comply with any local laws promoting the development of new affordable housing units pursuant to section 29-20-104 (1)(e.5). (II) "State-owned real property" has the same meaning as "real property" as set forth in section 24-30-1301 (15). (3) Repealed. (4) Any issuance or incurrence of financial obligations under this article 94 must comply with section 24-36-121.

C.R.S. § 24-94-104 State public entity agreements - public-private partnership

24-94-104. State public entity agreements - public-private partnership. (1) A state public entity is authorized, either separately or in combination with any other state public entity, to initiate solicitations, review any private partner-initiated proposals, execute public-private partnership agreements, or execute public-private agreements to develop or operate a public project subject to the requirements of this article 94. (2) Subject to subsection (5) of this section, any state public entity must obtain approvals from the executive director in the time and manner determined by the executive director pursuant to sections 24-94-103 (1)(a) and (1)(b). (3) Any public-private agreement entered into pursuant to subsection (1) of this section must comply with applicable state laws and processes developed by the executive director pursuant to section 24-94-103 (1)(a) and 24-94-103 (1)(b). (4) Subject to subsection (2) of this section, state public entities may review any private partner-initiated proposals but need not respond to such proposals. (5) Nothing in this article 94 shall be construed to prohibit, limit, or otherwise modify the specific statutory authority of state public entities, including but not limited to the authority specified in sections 23-3.1-301 (1), 23-3.1-306.5, 23-5-101.7, 24-33.5-510, 24-36-121, 26-6.9-102, 32-22-105 (1)(a)(VIII), 33-1-105(1), 33-10-107(1), 36-1-118(1), 40-2-123, and 43-4-806, and the authority specified in parts 1 and 3 of article 46 of this title 24 and parts 8 and 13 of article 82 of this title 24, to enter into a public-private partnership, a public-private agreement, or other agreement, or to utilize a statutory mechanism as authorized by any other provision of law.

C.R.S. § 24-94-105 Public-private partnership subcommittee - contract review - lease - sale of state property

24-94-105. Public-private partnership subcommittee - contract review - lease - sale of state property. (1) Except as otherwise provided in subsection (2) of this section, a state public entity that intends to enter into a contract, sale, or lease of state property pursuant to section 24-82-102.5 or 24-94-104 on or after May 26, 2022, shall submit the proposed contract, sale, or lease of state property to the public-private partnership subcommittee created in section 24-46-102 (4) for the subcommittee's review before entering into the contract, sale, or lease of state property. The state public entity, in coordination with the Colorado economic development commission staff, shall submit a report to the subcommittee regarding the anticipated use of the state property in a time and manner established by the subcommittee. The subcommittee shall review the report and make any recommendations it deems necessary to the state public entity. The state public entity must consider the subcommittee's recommendations, but need not incorporate or adopt any of the recommendations. (2) Subsection (1) of this section does not apply to a state public entity that intends to enter into a new contract, sale, or lease of state property pursuant to section 24-82-102.5 or 24-92-104 with existing private partners.

C.R.S. § 24-94-106 Report

24-94-106. Report. (1) The executive director or the executive director's designee shall annually report on the implementation and use of this article 94 at its presentation to its committee of reference at a hearing held pursuant to section 2-7-203 (2)(a) of the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act". (2) The report presented pursuant to subsection (1) of this section shall include: (a) The number of public-private partnerships that were executed to develop or operate a public project pursuant to this article 94 during the year in which the report is presented; (b) The project delivery method and financing method of each public-private partnership specified in subsection (2)(a) of this section; and (c) An overview of the important social or economic value of each public-private partnership specified in subsection (2)(a) of this section. (3) The executive director or the executive director's designee shall annually provide the information specified in subsection (1) of this section to the joint budget committee.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026