Illinois General Assembly - Full Text of SB3620
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Full Text of SB3620  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 2/9/2024, by Sen. Ram Villivalam


630 ILCS 5/10
630 ILCS 5/15
630 ILCS 5/19

    Amends the Public-Private Partnerships for Transportation Act. Deletes the definition of "transportation agency". Modifies the definition of "proposer". Provides that a responsible public entity may not receive unsolicited proposals for a project. Deletes provisions that allowed unsolicited proposals for projects if specified guidelines were met. Effective immediately.

LRB103 36329 MXP 66427 b





SB3620LRB103 36329 MXP 66427 b

1    AN ACT concerning transportation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Public-Private Partnerships for
5Transportation Act is amended by changing Sections 10, 15, and
619 as follows:
7    (630 ILCS 5/10)
8    Sec. 10. Definitions. As used in this Act:
9    "Approved proposal" means the proposal that is approved by
10the responsible public entity pursuant to subsection (j) of
11Section 20 of this Act.
12    "Approved proposer" means the private entity whose
13proposal is the approved proposal.
14    "Authority" means the Illinois State Toll Highway
16    "Contractor" means a private entity that has entered into
17a public-private agreement with the responsible public entity
18to provide services to or on behalf of the responsible public
20    "Department" means the Illinois Department of
22    "Design-build agreement" means the agreement between the
23selected private entity and the responsible public entity



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1under which the selected private entity agrees to furnish
2design, construction, and related services for a
3transportation facility under this Act.
4    "Develop" or "development" means to do one or more of the
5following: plan, design, develop, lease, acquire, install,
6construct, reconstruct, rehabilitate, extend, or expand.
7    "Maintain" or "maintenance" includes ordinary maintenance,
8repair, rehabilitation, capital maintenance, maintenance
9replacement, and any other categories of maintenance that may
10be designated by the responsible public entity.
11    "Operate" or "operation" means to do one or more of the
12following: maintain, improve, equip, modify, or otherwise
14    "Private entity" means any combination of one or more
15individuals, corporations, general partnerships, limited
16liability companies, limited partnerships, joint ventures,
17business trusts, nonprofit entities, or other business
18entities that are parties to a proposal for a transportation
19project or an agreement related to a transportation project. A
20public agency may provide services to a contractor as a
21subcontractor or subconsultant without affecting the private
22status of the private entity and the ability to enter into a
23public-private agreement. A transportation agency is not a
24private entity.
25    "Proposal" means all materials and documents prepared by
26or on behalf of a private entity relating to the proposed



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1development, financing, or operation of a transportation
2facility as a transportation project.
3    "Proposer" means a private entity that has submitted an
4unsolicited proposal for a public-private agreement to a
5responsible public entity under this Act or a proposal or
6statement of qualifications for a public-private agreement in
7response to a request for proposals or a request for
8qualifications issued by a responsible public entity under
9this Act.
10    "Public-private agreement" means the public-private
11agreement between the contractor and the responsible public
12entity relating to one or more of the development, financing,
13or operation of a transportation project that is entered into
14under this Act.
15    "Request for information" means all materials and
16documents prepared by or on behalf of the responsible public
17entity to solicit information from private entities with
18respect to transportation projects.
19    "Request for proposals" means all materials and documents
20prepared by or on behalf of the responsible public entity to
21solicit proposals from private entities to enter into a
22public-private agreement.
23    "Request for qualifications" means all materials and
24documents prepared by or on behalf of the responsible public
25entity to solicit statements of qualification from private
26entities to enter into a public-private agreement.



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1    "Responsible public entity" means the Department of
2Transportation or , the Illinois State Toll Highway Authority.
3    "Revenues" means all revenues, including any combination
4of: income; earnings and interest; user fees; lease payments;
5allocations; federal, State, and local appropriations, grants,
6loans, lines of credit, and credit guarantees; bond proceeds;
7equity investments; service payments; or other receipts;
8arising out of or in connection with a transportation project,
9including the development, financing, and operation of a
10transportation project. The term includes money received as
11grants, loans, lines of credit, credit guarantees, or
12otherwise in aid of a transportation project from the federal
13government, the State, a unit of local government, or any
14agency or instrumentality of the federal government, the
15State, or a unit of local government.
16    "Shortlist" means the process by which a responsible
17public entity will review, evaluate, and rank statements of
18qualifications submitted in response to a request for
19qualifications and then identify the proposers who are
20eligible to submit a detailed proposal in response to a
21request for proposals. The identified proposers constitute the
22shortlist for the transportation project to which the request
23for proposals relates.
24    "Transportation agency" means (i) the Department or (ii)
25the Authority.
26    "Transportation facility" means any new or existing road,



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1highway, toll highway, bridge, tunnel, intermodal facility,
2intercity or high-speed passenger rail, or other
3transportation facility or infrastructure, excluding airports,
4under the jurisdiction of a responsible public entity, except
5those facilities for the Illiana Expressway. The term
6"transportation facility" may refer to one or more
7transportation facilities that are proposed to be developed or
8operated as part of a single transportation project.
9    "Transportation project" or "project" means any or the
10combination of the design, development, construction,
11financing, or operation with respect to all or a portion of any
12transportation facility under the jurisdiction of the
13responsible public entity, except those facilities for the
14Illiana Expressway, undertaken pursuant to this Act.
15    "Unit of local government" has the meaning ascribed to
16that term in Article VII, Section 1 of the Constitution of the
17State of Illinois and also means any unit designated as a
18municipal corporation.
19    "Unsolicited proposal" means a written proposal that is
20submitted to a responsible public entity on the initiative of
21the private sector entity or entities for the purpose of
22developing a partnership, and that is not in response to a
23formal or informal request issued by a responsible public
25    "User fees" or "tolls" means the rates, tolls, fees, or
26other charges imposed by the contractor for use of all or a



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1portion of a transportation project under a public-private
3(Source: P.A. 103-570, eff. 1-1-24.)
4    (630 ILCS 5/15)
5    Sec. 15. Formation of public-private agreements; project
7    (a) Each responsible public entity may exercise the powers
8granted by this Act to do some or all to design, develop,
9construct, finance, and operate any part of one or more
10transportation projects through public-private agreements with
11one or more private entities, except for transportation
12projects for the Illiana Expressway as defined in the Public
13Private Agreements for the Illiana Expressway Act. The net
14proceeds, if any, arising out of a transportation project or
15public-private agreement undertaken by the Department pursuant
16to this Act shall be deposited into the Public-Private
17Partnerships for Transportation Fund. The net proceeds arising
18out of a transportation project or public-private agreement
19undertaken by the Authority pursuant to this Act shall be
20deposited into the Illinois State Toll Highway Authority Fund
21and shall be used only as authorized by Section 23 of the Toll
22Highway Act.
23    (b) The Authority may enter into a public-private
24partnership to design, develop, construct, finance, and
25operate new toll highways authorized by the Governor and the



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1General Assembly pursuant to Section 14.1 of the Toll Highway
2Act, non-highway transportation projects on the toll highway
3system such as commuter rail or high-speed rail lines, and
4intelligent transportation infrastructure that will enhance
5the safety, efficiency, and environmental quality of the toll
6highway system. The Authority may operate or provide
7operational services such as toll collection on highways which
8are developed or financed, or both, through a public-private
9agreement entered into by another public entity, under an
10agreement with the public entity or contractor responsible for
11the transportation project.
12    (c) A contractor has:
13        (1) all powers allowed by law generally to a private
14    entity having the same form of organization as the
15    contractor; and
16        (2) the power to develop, finance, and operate the
17    transportation facility and to impose user fees in
18    connection with the use of the transportation facility,
19    subject to the terms of the public-private agreement.
20    No tolls or user fees may be imposed by the contractor
21except as set forth in a public-private agreement.
22    (d) Prior to commencing the procurement process under an
23unsolicited proposal or the issuance of any request for
24qualifications or request for proposals with respect to any
25potential project undertaken by a responsible public entity
26pursuant to Section 19 or 20 of this Act, the commencement of a



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1procurement process for that particular potential project
2shall be authorized by joint resolution of the General
4    (e) (Blank).
5    (f) Any project undertaken under this Act shall be subject
6to all applicable planning requirements otherwise required by
7law, including land use planning, regional planning,
8transportation planning, and environmental compliance
10    (g) (Blank).
11    (h) The responsible public entity shall hold one or more
12public hearings following its submittals to the General
13Assembly under subsection (d) of this Section. These public
14hearings shall address any potential project that the
15responsible public entity submitted to the General Assembly
16for review under subsection (d). The responsible public entity
17shall publish a notice of the hearing or hearings at least 7
18days before a hearing takes place, and shall include the
19following in the notice: (i) the date, time, and place of the
20hearing and the address of the responsible public entity; (ii)
21a brief description of the potential projects that the
22responsible public entity is considering undertaking; and
23(iii) a statement that the public may comment on the potential
25(Source: P.A. 103-570, eff. 1-1-24.)



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1    (630 ILCS 5/19)
2    Sec. 19. Unsolicited proposals.
3    (a) A responsible public entity may not receive
4unsolicited proposals for a project . and may thereafter enter
5into a public-private agreement with a private entity, or a
6consortium of private entities, for the design, construction,
7upgrading, operating, ownership, or financing of facilities.
8    (b) A responsible public entity may consider, evaluate,
9and accept an unsolicited proposal for a public-private
10partnership project from a private entity if the proposal:
11        (1) is independently developed and drafted by the
12    proposer without responsible public entity supervision;
13        (2) shows that the proposed project could benefit the
14    transportation system;
15        (3) includes a financing plan to allow the project to
16    move forward pursuant to the applicable responsible public
17    entity's budget and finance requirements; and
18        (4) includes sufficient detail and information for the
19    responsible public entity to evaluate the proposal in an
20    objective and timely manner and permit a determination
21    that the project would be worthwhile.
22    (c) The unsolicited proposal shall include the following:
23        (1) an executive summary covering the major elements
24    of the proposal;
25        (2) qualifications concerning the experience,
26    expertise, technical competence, and qualifications of the



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1    private entity and of each member of its management team
2    and of other key employees, consultants, and
3    subcontractors, including the name, address, and
4    professional designation;
5        (3) a project description, including, when applicable:
6            (A) the limits, scope, and location of the
7        proposed project;
8            (B) right-of-way requirements;
9            (C) connections with other facilities and
10        improvements to those facilities necessary if the
11        project is developed;
12            (D) a conceptual project design; and
13            (E) a statement of the project's relationship to
14        and impact upon relevant existing plans of the
15        responsible public entity;
16        (4) a facilities project schedule, including when
17    applicable, estimates of:
18            (A) dates of contract award;
19            (B) start of construction;
20            (C) completion of construction;
21            (D) start of operations; and
22            (E) major maintenance or reconstruction activities
23        during the life of the proposed project agreement;
24        (5) an operating plan describing the operation of the
25    completed facility if operation of a facility is part of
26    the proposal, describing the management structure and



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1    approach, the proposed period of operations, enforcement,
2    emergency response, and other relevant information;
3        (6) a finance plan describing the proposed financing
4    of the project, identifying the source of funds to, where
5    applicable, design, construct, maintain, and manage the
6    project during the term of the proposed contract; and
7        (7) the legal basis for the project and licenses and
8    certifications; the private entity must demonstrate that
9    it has all licenses and certificates necessary to complete
10    the project.
11    (d) Within 120 days after receiving an unsolicited
12proposal, the responsible public entity shall complete a
13preliminary evaluation of the unsolicited proposal and shall
15        (1) if the preliminary evaluation is unfavorable,
16    return the proposal without further action;
17        (2) if the preliminary evaluation is favorable, notify
18    the proposer that the responsible public entity will
19    further evaluate the proposal; or
20        (3) request amendments, clarification, or modification
21    of the unsolicited proposal.
22    (e) The procurement process for unsolicited proposals
23shall be as follows:
24        (1) If the responsible public entity chooses to
25    further evaluate an unsolicited proposal with the intent
26    to enter into a public-private agreement for the proposed



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1    project, then the responsible public entity shall publish
2    notice in the Illinois Procurement Bulletin or in a
3    newspaper of general circulation covering the location of
4    the project at least once a week for 2 weeks stating that
5    the responsible public entity has received a proposal and
6    will accept other proposals for the same project. The time
7    frame within which the responsible public entity may
8    accept other proposals shall be determined by the
9    responsible public entity on a project-by-project basis
10    based upon the complexity of the transportation project
11    and the public benefit to be gained by allowing a longer or
12    shorter period of time within which other proposals may be
13    received; however, the time frame for allowing other
14    proposals must be at least 21 days, but no more than 120
15    days, after the initial date of publication.
16        (2) A copy of the notice must be mailed to each local
17    government directly affected by the transportation
18    project.
19        (3) The responsible public entity shall provide
20    reasonably sufficient information, including the identity
21    of its contact person, to enable other private entities to
22    make proposals.
23        (4) If, after no less than 120 days, no
24    counterproposal is received, or if the counterproposals
25    are evaluated and found to be equal to or inferior to the
26    original unsolicited proposal, the responsible public



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1    entity may proceed to negotiate a contract with the
2    original proposer.
3        (5) If, after no less than 120 days, one or more
4    counterproposals meeting unsolicited proposal standards
5    are received, and if, in the opinion of the responsible
6    public entity, the counterproposals are evaluated and
7    found to be superior to the original unsolicited proposal,
8    the responsible public entity shall proceed to determine
9    the successful participant through a final procurement
10    phase known as "Best and Final Offer" (BAFO). The BAFO is a
11    process whereby a responsible public entity shall invite
12    the original private sector party and the proponent
13    submitting the superior counterproposal to engage in a
14    BAFO phase. The invitation to participate in the BAFO
15    phase will provide to each participating proposer:
16            (A) the general concepts that were considered
17        superior to the original proposal, while keeping
18        proprietary information contained in the proposals
19        confidential to the extent possible; and
20            (B) the preestablished evaluation criteria or the
21        "basis of award" to be used to determine the
22        successful proponent.
23        (6) Offers received in response to the BAFO invitation
24    will be reviewed by the responsible public entity and
25    scored in accordance with a preestablished criteria, or
26    alternatively, in accordance with the basis of award



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1    provision identified through the BAFO process. The
2    successful proponent will be the proponent offering "best
3    value" to the responsible public entity.
4        (7) In all cases, the basis of award will be the best
5    value to the responsible public entity, as determined by
6    the responsible public entity.
7    (f) After a comprehensive evaluation and acceptance of an
8unsolicited proposal and any alternatives, the responsible
9public entity may commence negotiations with a proposer,
11        (1) the proposal has received a favorable
12    comprehensive evaluation;
13        (2) the proposal is not duplicative of existing
14    infrastructure project;
15        (3) the alternative proposal does not closely resemble
16    a pending competitive proposal for a public-private
17    private partnership or other procurement;
18        (4) the proposal demonstrates a unique method,
19    approach, or concept;
20        (5) facts and circumstances that preclude or warrant
21    additional competition;
22        (6) the availability of any funds, debts, or assets
23    that the State will contribute to the project;
24        (7) facts and circumstances demonstrating that the
25    project will likely have a significant adverse impact on
26    on State bond ratings; and



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1        (8) indemnifications included in the proposal.
2(Source: P.A. 103-570, eff. 1-1-24; revised 1-3-24.)
3    Section 99. Effective date. This Act takes effect upon
4becoming law.