News / Indiana's new law could allow P3s for non-transport projects

Indiana's new law could allow P3s for non-transport projects

🕔 January 20, 2014
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A new piece of law has been proposed in Indiana. Under Senate Bill 225, authored by Sen. Luke Kenley, public private partnerships could be applied to non-transportation projects. Firms could construct correctional, mental health, regional health and some communications facilities using this model.

Current law  in Indiana allows private firms to partner with the state to build or operate highways, rail lines, or bridges.

The new law would also authorize the state to do projects without asking the legislature. Kenley said existing law requires a public-private partnership to get State Budget Committee approval to move forward.

Kenley worked with the Indiana Finance Authority to create the bill to expand the use of public-private partnerships, which are called P3s.

But the new bill has adversaries. Sen. Karen Tallian, said:

"It's unfortunate this bill has a whole lot of good things I could support, but it's got this big red flag (and) I can't support the way it is here. I would be very happy to support everything else in here except the P3 stuff because I think it needs some major explanation.""I'm still a little bit - well I'm still a lot - concerned about not having to come back to the legislature if you've got some big project plans. If you've got some big project to build a new prison with a third party - I have a problem with not having to come back to the legislature."

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