Sec. 20013. PRIVATE SECTOR PARTICIPATION
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## SEC. 20013 PRIVATE SECTOR PARTICIPATION ###
(a)In General Section 5315 of title 49, United States Code, is amended to read as follows: > > ## “SEC. 5315 Private sector participation > > > ### “(a) General Purposes > > In the interest of fulfilling the general purposes of this chapter under section 5301(b), the Secretary shall— > > > #### “(1) > > better coordinate public and private sector-provided public transportation services; > > > #### “(2) > > promote more effective utilization of private sector expertise, financing, and operational capacity to deliver costly and complex new fixed guideway capital projects; and > > > #### “(3) > > promote transparency and public understanding of public-private partnerships affecting public transportation. > > > ### “(b) Actions to Promote Better Coordination Between Public and Private Sector Providers of Public Transportation > > The Secretary shall— > > > #### “(1) > > provide technical assistance to recipients of Federal transit grant assistance, at the request of a recipient, on practices and methods to best utilize private providers of public transportation; and > > > #### “(2) > > educate recipients of Federal transit grant assistance on laws and regulations under this chapter that impact private providers of public transportation. > > > ### “(c) Actions to Provide Technical Assistance for Alternative Project Delivery Methods > > Upon request by a sponsor of a new fixed guideway capital project, the Secretary shall— > > > #### “(1) > > identify best practices for public-private partnerships models in the United States and in other countries; > > > #### “(2) > > develop standard public-private partnership transaction model contracts; and > > > #### “(3) > > perform financial assessments that include the calculation of public and private benefits of a proposed public-private partnership transaction.” > . ###
(b)Public-private Partnership Procedures and Approaches **[**[49 U.S.C. 5315 note](/us/usc/t49/s5315)**]** ####
(1)Identify impediments The Secretary shall— #####
(A)except as provided in paragraph (6), identify any provisions of chapter 53 of title 49, United States Code, and any regulations or practices thereunder, that impede greater use of public-private partnerships and private investment in public transportation capital projects; and #####
(B)develop and implement on a project basis procedures and approaches that— ######
(i)address such impediments in a manner similar to the Special Experimental Project Number 15 of the Federal Highway Administration (commonly referred to as “SEP-15”); and ######
(ii)protect the public interest and any public investment in public transportation capital projects that involve public-private partnerships or private investment in public transportation capital projects. ####
(2)Transparency The Secretary shall develop guidance to promote greater transparency and public access to public-private partnership agreements involving recipients of Federal assistance under chapter 53 of title 49, United States Code, including— #####
(A)any conflict of interest involving any party involved in the public-private partnership; #####
(B)tax and financing aspects related to a public-private partnership agreement; #####
(C)changes in the workforce and wages, benefits, or rules as a result of a public-private partnership; #####
(D)estimates of the revenue or savings the public-private partnership will produce for the private entity and public entity; #####
(E)any impacts on other developments and transportation modes as a result of non-compete clauses contained in public-private partnership agreements; and #####
(F)any other issues the Secretary believes will increase transparency of public-private partnership agreements and protect the public interest. ####
(3)Assessment In developing and implementing the guidance under paragraph (2), the Secretary shall encourage project sponsors to conduct assessments to determine whether use of a public-private partnership represents a better public and financial benefit than a similar transaction using public funding or public project delivery. ####
(4)Report Not later than 4 years after the date of enactment of this Act, the Secretary shall submit to Congress a report on the status of the procedures, approaches, and guidance developed and implemented under paragraphs
(1)and (2). ####
(5)Rulemaking Not later than 1 year after the date of enactment of this Act, the Secretary shall issue rules to carry out the procedures and approaches developed under paragraph (1). ####
(6)Rule of construction Nothing in this subsection may be construed to allow the Secretary to waive any requirement under— #####
(A)section 5333 of title 49, United States Code; #####
(B)the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or #####
(C)any other provision of Federal law. ###
(c)Contracting Out Study ####
(1)In general Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a comprehensive report on the effect of contracting out public transportation operations and administrative functions on cost, availability and level of service, efficiency, and quality of service. ####
(2)Considerations In developing the report, the Comptroller General shall consider— #####
(A)the number of grant recipients that have contracted out services and the types of public transportation services that are performed under contract, including paratransit service, fixed route bus service, commuter rail operations, and administrative functions; #####
(B)the size of the populations served by such grant recipients; #####
(C)the basis for decisions regarding contracting out such services; #####
(D)comparative costs of providing service under contract to providing the same service through public transit agency employees, using to the greatest extent possible a standard cost allocation model; #####
(E)the extent of unionization among privately contracted employees; #####
(F)the impact to wages and benefits of employees when publicly provided public transportation services are contracted out to a private for-profit entity; #####
(G)the level of transparency and public access to agreements and contracts related to contracted out public transportation services; #####
(H)the extent of Federal law, regulations and guidance prohibiting any conflicts of interest for contractor employees and businesses; #####
(I)the extent to which grant recipients evaluate contracted out services before selecting them and the extent to which grant recipients conduct oversight of those services; and #####
(J)barriers to contracting out public transportation operations and administrative functions. ###
(d)Guidance on Documenting Compliance **[**[49 U.S.C. 5303 note](/us/usc/t49/s5303)**]** Not later than 1 year after the date of enactment of this Act, the Secretary shall publish in the Federal Register policy guidance regarding how to best document compliance by recipients of Federal assistance under chapter 53 of title 49, United States Code, with the requirements regarding private enterprise participation in public transportation planning and transportation improvement programs under sections 5303(i)(6), 5306(a), and 5307(b) of such title 49.
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