A BILL TO BE ENTITLED
AN ACT to allow governmental entities to enter into agreements with private developers for the operation and development of facilities and infrastructure for public purposes.
The General Assembly of North Carolina enacts:
SECTION 1. Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read as follows:
"§143‑128.1A.  Public‑private partnerships.
(a)	Definitions. – The following definitions apply in this section:
(1)	Development contract. – Any contract entered into by a governmental entity and private developer under the provisions of this section.
(2)	Governmental entity. – The State or any political subdivision of the State, or any governing body, board, or employee thereof who is authorized by law to award contracts.
(3)	Private developer. – Any person who has entered into a development contract with a governmental entity under the provisions of this section.
(4)	Public‑private project. – A capital improvement project undertaken by governmental entity and a private developer under the provisions of this section, and which is comprised of one or more buildings or other improvements, including, but not limited to, paving, grading, utilities, infrastructure, reconstruction, or repair and includes both public and private facilities.
(b)	If a governmental entity determines that it will benefit from participation in the development of a public‑private project, the governmental entity may acquire, construct, own, lease as lessor or lessee, and operate or participate in the acquisition, construction, ownership, leasing, and operation of a public‑private project, or of specific facilities within such a project, including the making of loans and grants from moneys lawfully available therefor. The governmental entity may enter into binding contracts with one or more private developers with respect to acquiring, constructing, owning, leasing, or operating such a project. The contract shall, among other provisions, specify the following: (i) the property interest of the governmental entity and all other participants in the development of the project; (ii) the responsibilities of the governmental entity and all other participants in the development of the project; and (iii) the responsibilities of the governmental entity and all other participants with respect to financing of the project. The contract may be entered into before or after the acquisition of any real property necessary to the public‑private project and may apply to a public‑private project developed on real property owned by the governmental entity prior to the determination by the governing body of the governmental entity that the governmental entity will benefit from participation in the public‑private project.
(c)	The contract between the governmental entity and the private developer or private developers may provide that the private developer or private developers shall be responsible for (i) construction of the entire public‑private project; (ii) reconstruction or repair of the public‑private project or any part thereof subsequent to construction of the project; (iii) construction of any addition to the public‑private project; (iv) renovation of the public‑private project or any part thereof; or (v) purchase of apparatus, supplies, materials, or equipment for the public‑private project, whether during the initial equipping of the project or subsequent thereto. Additionally, the contract between the governmental entity and the private developer or private developers may provide that the governmental entity and the private developer or private developers shall use the same contractor or contractors in constructing a portion of or the entire public‑private project. If so, the contract shall include any provisions the governmental entity deems sufficient to assure that the public facility or facilities included in the public‑private project or added thereto are constructed, reconstructed, repaired, or renovated, and the apparatus, supplies, materials, and equipment purchased for the public facility or facilities included in the public‑private project are purchased at a reasonable price. The governmental entity shall require a private‑developer to provide a payment bond for construction work.
(d)	The governmental entity may contract for the operation of any facility or facilities included in a public‑private project by any person, firm, or corporation, public or private.
(e)	To assist in the financing of its share of a public‑private project, the governmental entity may apply for, accept, and expend funds from the federal or State government or any other lawful source.
(f)	The governmental entity shall determine its programming needs for the capital improvement project to be constructed under this section. The governmental entity shall advertise a notice for interested parties to submit qualifications in such form as the governmental entity may require for possible selection as the private developer or private developers in the public‑private project in a newspaper having general circulation within the county in which the governmental entity is located. Prior to submittal of qualifications, the governmental entity shall make available, in such form as it deems appropriate, the programming requirements for the public‑private project. Qualifications submitted by interested parties shall include, but not be limited to:
(1)	Evidence of financial stability. Information identified in accordance with G.S. 66‑152(3) and G.S. 132‑1.2 shall be exempt from disclosure under Chapter 132 of the General Statutes.
(2)	Experience with construction of similar projects.
(3)	Licensure to undertake the actions necessary to accomplish the goals of the public‑private project.
(4)	Listing of licensed contractors, licensed subcontractors, and licensed design professionals whom the private developer proposes to use for the project's design and construction team.
(5)	Statement of availability to undertake the public‑private project and projected time line for project completion.
(6)	Other information as the governmental entity, in its sole discretion, may require.
(g)	Based upon the qualifications package submitted by the private developers, along with any other information as the governmental entity may require, the governmental entity may select a private developer or private developers with whom to negotiate the terms and conditions of a contract to perform the public‑private project. The governmental entity shall advertise the terms of the proposed contract to be entered into by the governmental entity in a newspaper having general circulation within the county in which the governmental entity is located at least 10 days prior to a regularly scheduled meeting at which the contract is to be considered. The contract for the public‑private partnership may only be considered at a regular meeting of the governmental entity."
SECTION 6.  This act is effective when it becomes law.