On August 14, 2018 Governor Murphy signed P.L. 2018, c.90 (S-865) into law. The program allows a school district, college or university, municipality, county or other state entity to enter into an agreement with a private organization that would assume the financial and administrative responsibility for the development, construction, reconstruction, repair, alteration, improvement, extension, operation, and maintenance of a government-related project. The P3 project is financed in whole, or in part, by the private organization.
The law requires local public input and finance controls, as well as land use and financial approvals, should a municipality, county, or school district pursue a P3 project. If the agreement includes the lease of a public building, road, infrastructure, or facility in exchange for up-front or structured financing by the private entity, the term of the lease may not be for a period greater than 30 years.
The law also requires that workers employed in the construction, rehabilitation, or building maintenance services of a project be subject to the applicable provisions of the "New Jersey Prevailing Wage Act;" that building construction projects contain a project labor agreement; and that the general contractor, construction manager, design-build team, or subcontractor for a project be registered and classified by the State to perform work on a project.
Project Review Process
The law tasks the Department of the Treasury with coordinating the review and approval of proposed P3 projects. The review includes an analysis by a P3 advisor selected from a pool of qualified P3 specialists that have been vetted by the Office of Public Finance. Projects are reviewed in coordination with several sister agencies and entities. The review committee for each project category is listed below:
Treasury must provide information on the status of each P3 agreement on its website. Each project will be designated as ‘proposed,’ ‘under review,’ or ‘active public-private partnership project.’
Treasury is in the process of developing regulations to support the implementation of the new law. Support materials will soon be made available to individuals and stakeholders considering a P3 project.
Entities should prepare the following items before applying:
*Formal application materials will be made available in the coming days.