State Survey of P3 Authorizing Statutes: Illinois

20 ILCS §§ 2705/2705‐450

Summary

Authorizes IDOT to use P3s for high‐speed rail projects.

No surety bond language.

605 ILCS § 5/10‐802; 605 ILCS § 5/10‐602

Summary

The law authorizes municipalities to make contracts “of every kind and nature” to acquire, construct, reconstruct, improve, enlarge, better, operate, maintain, and/or repair any bridge within five miles of the corporate limits of the municipality, and to fix and apply tolls and fees for the use of such a bridge.

No surety bond language.

605 ILCS §§ 130/1‐130/999

Summary

The law authorizes the Illinois Department of Transportation (DOT) to enter into a public‐private partnership (P3) agreement for the construction of the Illiana Expressway between Interstate Highway 55 in Illinois and Interstate Highway 65 in Indiana. The project is a collaborative effort between the two states.

The state’s little Miller Act applies to the Illiana Expressway.

Excerpt:

30 ILCS 550/1.5

“Sec. 1.5. Public private agreements. This Act applies to any public private agreement entered into under the Public Private Agreements for the Illiana Expressway Act or the Public‐Private Agreements for the South Suburban Airport Act.”

620 ILCS 75/2‐35

Summary

This law provides for a public‐private partnership (PPP) for the development of the South Suburban Airport.

The new law provides that the public‐private partnership agreement may provide for the delivery of performance and payment bonds or other performance security in a form and amount that is satisfactory to the Department of Transportation. The new law also provides that the existing law under the Public Construction Bond Act—the State’s little Miller Act—applies to the public‐private agreements for the South Suburban Airport Act.

630 ILCS §§ 5/1‐5/90

Summary

The law authorizes the Department of Transportation and the Illinois State Toll Highway Authority to enter into P3s.

The law provides that the bonding requirements of the State’s little Miller Act apply to any P3 entered into under this law. The little Miller Act in Illinois also permits the public contracting entity to set the amount of the payment and performance bonds. The law provides in the requirements for all other P3 procurements, that the P3 agreement must provide for the delivery of performance and payment bonds or other security deemed suitable by the transportation agency, including letters of credit, United States bonds and notes, parent guaranties, and cash collateral in connection with the development, financing, and operation of the transportation project, in the forms and amounts set forth in the P3 agreement that are satisfactory to the transportation agency to protect the agency and payment bond beneficiaries who have a direct contractual relationship with the contractor or a subcontractor of the contractor. A payment or performance bond, or alternative to it, is not required for the portion of a PPP that includes only design, planning, or financing services.

Excerpt:

“Sec. 35 (b) The Public‐private agreement may, as determined by the transportation agency for the particular transportation project, provide for some or all of the following:

(2) Delivery of performance and payment bonds or other performance security determined suitable by the transportation agency, including letters of credit, United States bonds and notes, parent guaranties, and cash collateral, in connection with the development, financing, or operation of the transportation project, in the forms and amounts set forth in the public‐private agreement or otherwise determined as satisfactory by the transportation agency to protect the transportation agency and payment bond beneficiaries who have a direct contractual relationship with the contractor or a subcontractor of the contractor to supply labor or material.”

30 ILCS § 105/5.897

Summary

The law authorizes the State to enter into a P3 for civic and transit infrastructure projects located in Chicago.

No surety bond language.

605 ILCS § 4-106(b)(1)(B)

Summary

The law amends the IL Highway Code (605 ILCS 4-106(b)(1)(B)) “eligible bridge” to allow for funding directly by, or provided other assistance through, a municipality, a public-private partnership, the State, the federal government, or some combination thereof (instead of “100% funded by the State”) for the construction, alteration, maintenance, or repair work on a bridge or overpass.

The IL Highway Code requires any contracts that may be entered into for the construction of highways shall be let after due public advertisement to the lowest responsible bidder or bidders, upon terms and conditions to be fixed by the Department, and the Department shall also require the successful bidder or bidders to furnish good and sufficient bonds to ensure proper and prompt completion of such work in accordance with the provisions of such contracts.