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Patton's Legislation Advancing Public-Private Partnership Agreements Passes Committee

The bill will streamline the process and help with cost-savings on construction of public facilities
November 17, 2020
Thomas F. Patton News

State Rep. Tom Patton (R-Strongsville) announces earlier today that House Bill 218 passed out of the House State and Local Government Committee. The legislation grants public entities the opportunity to enter into public-private partnerships agreements (P3s) for the construction or renovation of public facilities. Patton delivered testimony on the bill.

“A public-private partnership is an alternative procurement model for public infrastructure, in this case, buildings,” said Patton. “The goal of the P3 model is to transfer the risks best managed by the private sector to the private sector, allowing the public sector to focus on its core mission and strengths.”

Patton noted the legislation ensures public ownership of the asset is retained throughout the project. Additionally, the private sector is responsible for designing, building, financing and maintaining the public asset for up to a forty-year terms. The bill also guarantees the private sector will face financial penalties for lackluster work. Once the contract is finished, the facilities will be given back to the public owner in a good or better condition.

Those entities allowed to enter into the public-private partnerships includes counties, cities, townships, state agencies, state colleges and universities, public schools and libraries, and port authorities.

There is a mirroring process between this bill and for P3s currently used at the Ohio Department of Transportation, which Patton established under his previous legislation that was signed into law. The similarities include allowing an alternative procurement process and requiring notice and solicitation of additional bids. Essentially, this allows for a competitive bidding process.

Patton also acknowledged House Bill 218 will create a single source of responsibility for all the entities involved and will provide significant cost savings. According to an independent study, every dollar in P3 investment generates $2.8 in economic activity and can produce up to a 25 percent cost savings over the life of the project compared to traditional building methods.

“I firmly believe the expanded role of P3s in Ohio will have a resounding positive economic and social impact on the state, and we should catch up with the other 15 states already reaping these benefits,” added Patton.