(June 1, 2011) A California Chamber of Commerce-supported job creator bill that expands options for local governments to build and invest in infrastructure projects, as well as other alternative project delivery methods, is moving in the Legislature.
SB 475 (Wright; D-Inglewood/Emmerson; R-Hemet) creates private sector construction-related jobs and investment in infrastructure by providing local governments more flexibility and authority to use public-private partnerships.
Speeding Projects, Saving Costs
The CalChamber supports the expanded use of public-private partnerships in building and investing in infrastructure projects. Use of public-private partnerships can potentially get projects completed more quickly and at a lower cost, while buttressing the public’s cost with private investment.
In addition, public-private partnerships can make more construction and engineering jobs available faster, which is integral to stimulating the state’s economy, job creation and rehabilitating California’s infrastructure network.
SB 475 clarifies existing statute and facilitates its use by local governments. This includes loosening some of the overbearing requirements that local governments must consider in a public-private partnership contractor before awarding the contract; clarifying that public funds can be used in conjunction with private funds to construct publicly owned, fee-producing infrastructure; and adding sanitary sewer systems to the types of fee-producing infrastructure that may be constructed under these provisions.
These improvements in public-private partnership laws would make the use of public-private partnership contracting more viable for public entities and provide greater incentives for private entities to invest in such projects.
SB 475 is in the Assembly Local Government Committee; no hearing date has been set.
Key Vote
SB 475 passed the Senate on May 9, 26-4.
Ayes: Anderson (R-El Cajon), Berryhill (R-Modesto), Blakeslee (R-San Luis Obispo), Calderon (D-Montebello), Cannella (R-Ceres), Correa (D-Santa Ana), Dutton (R-Rancho Cucamonga), Emmerson (R-Hemet), Fuller (R-Bakersfield), Gaines (R-Roseville), Harman (R-Huntington Beach), Huff (R-Diamond Bar), Kehoe (D-San Diego), LaMalfa (R-Richvale), Lieu (D-Torrance), Liu (D-La Cañada Flintridge), Padilla (D-Pacoima), Rubio (D-E. Bakersfield), Runner (R-Antelope Valley), Steinberg (D-Sacramento), Strickland (R-Thousand Oaks), Vargas (D-Golden Hill), Walters (R-Laguna Niguel), Wolk (D-Davis), Wright (D-Inglewood), Wyland (R-Escondido).
Noes: DeSaulnier (D-Concord), Hancock (D-Berkeley), Leno (D-San Francisco), Yee (D-San Francisco).
No vote recorded: Alquist (D-Santa Clara), Corbett (D-San Leandro), De León (D-Los Angeles), Evans (D-Santa Rosa), Hernandez (D-West Covina), Lowenthal (D-Long Beach), Negrete McLeod (D-Chino), Pavley (D-Agoura Hills), Price (D-Los Angeles), Simitian (D-Palo Alto).