Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0803 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0803
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7	7	LC002571
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO STATE AFFAIRS AND GOVERNMENT -- PUBLIC-PRIVATE
16	16	PARTNERSHIP INFRASTRUCTURE PROGRAM
17	17	Introduced By: Senators Ruggerio, Gallo, Pearson, DiPalma, DiMario, Euer, and F.
18	18	Lombardi
19	19	Date Introduced: March 23, 2023
20	20	Referred To: Senate Housing & Municipal Government
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND 1
25	25	GOVERNMENT" is hereby amended by adding thereto the following chapter: 2
26	26	CHAPTER 13.2 3
27	27	PUBLIC-PRIVATE PARTNERSHIP INFRASTRUCTURE PROGRAM 4
28	28	42-13.2-1. Short title. 5
29	29	This chapter shall be known and may be cited as the "Public-Private Partnership 6
30	30	Infrastructure Program". 7
31	31	42-13.2-2. Definitions. 8
32	32	As used in this chapter, the following words shall have the following meanings, unless the 9
33	33	context clearly requires otherwise: 10
34	34	(1) "Affected jurisdiction" means any city or town, or other unit of government within the 11
35	35	state in which all or part of a qualified facility is located or any other public entity directly affected 12
36	36	by the qualified facility. 13
37	37	(2) "Architectural and engineering services" means: 14
38	38	(i) Professional services of an architectural or engineering nature, as defined by applicable 15
39	39	state law, which are required to be performed or approved by a person licensed, registered or 16
40	40	certified to provide such services as described in this definition; 17
41	41	(ii) Professional services of an architectural or engineering nature performed by contract 18
42	42
43	43
44	44	LC002571 - Page 2 of 14
45	45	that are associated with research, planning, development, design, construction, alteration or repair 1
46	46	of real property; and 2
47	47	(iii) Such other professional services of an architectural or engineering nature or incidental 3
48	48	services, which members of the architectural and engineering professions and employees thereof 4
49	49	may logically or justifiably perform, including: studies, investigations, surveying, mapping, tests, 5
50	50	evaluations, consultations, comprehensive planning, program management, conceptual designs, 6
51	51	plans and specifications, value engineering, construction phase services, soils engineering, drawing 7
52	52	reviews, preparation of operating and maintenance manuals and other related services. 8
53	53	(3) "Construction" means the process of building, altering, repairing, improving or 9
54	54	demolishing any qualified facility, including any structure, building or other improvements of any 10
55	55	kind to real property. "Construction" shall not include the routine operation, routine repair or 11
56	56	routine maintenance of any existing qualified facility, including structures, buildings or real 12
57	57	property. 13
58	58	(4) "Contract" means any agreement, including a public-private agreement for the 14
59	59	procurement, operation or disposal under this chapter of a qualified facility by the department. 15
60	60	(5) "Contract modification" means any written alteration in specifications, delivery point, 16
61	61	rate of delivery, period of performance, price, quantity or other provisions of any contract 17
62	62	accomplished by mutual action of the parties to the contract. 18
63	63	(6) "Contractor" means any person having a contract with the department pursuant to the 19
64	64	provisions of this chapter. 20
65	65	(7) "Cooperative purchasing" means procurement conducted by, or on behalf of, an 21
66	66	affected jurisdiction. 22
67	67	(8) "Department" means any department of state government in accordance with § 42-6-1. 23
68	68	(9) "Design-build-finance-operate-maintain" means a project delivery method in which the 24
69	69	department enters into a single contract for design, construction, finance, maintenance and 25
70	70	operation of a qualified facility over a contractually defined period. Any potential available 26
71	71	payments to be appropriated by the state while services are being provided by the contractor during 27
72	72	the contract period shall be identified in the request for proposals and contract. The financial 28
73	73	amount and duration of such potential available payments and the terms and conditions upon which 29
74	74	they may be appropriated shall be identified in the request for proposals and contract. 30
75	75	(10) "Design-build-operate-maintain" means a project delivery method in which the 31
76	76	department enters into a single contract for design, construction, maintenance and operation of a 32
77	77	qualified facility over a contractually defined period and all or a portion of the funds required to 33
78	78	pay for the services provided by the contractor during the contract period shall either be 34
79	79
80	80
81	81	LC002571 - Page 3 of 14
82	82	appropriated by the state or by the department prior to award of the contract or secured by the state 1
83	83	or by the department through fare or user charges. 2
84	84	(11) "Design requirements" means the written description of the qualified facility or service 3
85	85	to be procured under this chapter including: 4
86	86	(i) Required features, functions, characteristics, qualities and properties required by the 5
87	87	department; 6
88	88	(ii) The anticipated schedule, including start, duration and completion; and 7
89	89	(iii) Estimated budgets as applicable to the specific procurement for design, construction, 8
90	90	operation and maintenance; provided, however, that design requirements may include drawings 9
91	91	and other documents illustrating the scale and relationship of the features, functions and 10
92	92	characteristics of the project. 11
93	93	(12) "Force majeure" means an uncontrollable force or natural disaster not within the power 12
94	94	of the operator or the state. 13
95	95	(13) "Independent peer reviewer services" means additional architectural and engineering 14
96	96	services provided to the department in design-build-operatemaintain or design-build-finance-15
97	97	operate-maintain procurements to confirm that the key elements of the professional engineering 16
98	98	and architectural design provided by the contractor are in conformance with the applicable standard 17
99	99	of care. 18
100	100	(14) "Maintenance" means and includes routine operation, routine maintenance, routine 19
101	101	repair, rehabilitation, capital maintenance, maintenance replacement and any other categories of 20
102	102	maintenance that may be designated by the department. 21
103	103	(15) "Material default" means failure of a contractor to perform any duties under a public-22
104	104	private agreement which jeopardizes delivery of adequate service to the public and remains 23
105	105	unsatisfied after a reasonable period of time and after the operator has received written notice from 24
106	106	the department of the failure. 25
107	107	(16) "Operate" means any action to operate, maintain, repair, rehabilitate, improve, equip 26
108	108	or modify a qualified facility, including the design and construction of repairs, improvements or 27
109	109	modifications to a qualified facility. 28
110	110	(17) "Operator" means a private entity that has entered into a public-private agreement to 29
111	111	provide design-build-finance-operate-maintain or designbuild-operate-maintain services under 30
112	112	this chapter. 31
113	113	(18) "Private entity" means a natural person, corporation, general partnership, limited 32
114	114	liability company, limited partnership, joint venture, business trust, public benefit corporation, 33
115	115	nonprofit entity or other business entity. 34
116	116
117	117
118	118	LC002571 - Page 4 of 14
119	119	(19) "Proposal development documents" means drawings and other design-related 1
120	120	documents that are sufficient to fix and describe the size and character of a qualified facility as to 2
121	121	architectural, structural, mechanical and electrical systems, materials and such other elements as 3
122	122	may be appropriate to the applicable project delivery method. 4
123	123	(20) "Public-private agreement" means the contract between a private entity/operator and 5
124	124	the department that relates to the development, financing, maintenance or operation of a qualified 6
125	125	facility subject to this chapter. 7
126	126	(21) "Qualified facility" or "facility", means a new or existing ferry, airport, public 8
127	127	transportation facility, terminal facility, vehicle parking facility, seaport facility, rail facility, 9
128	128	intermodal facility or similar facility open to the public and used for the transportation of persons 10
129	129	or goods, any building, structure or networks of buildings, structures, pipes, controls and 11
130	130	equipment, including rolling stock and equipment that provide transportation services, water supply 12
131	131	facility, water treatment intake and distribution facility, waste water treatment and collection 13
132	132	facility, waste treatment facility, hospital, library, school, educational facility, medical or nursing 14
133	133	care facility, recreational facility, state agency facility, public safety facility and any building, 15
134	134	structure, parking area, appurtenances or other property needed to operate such facility that is 16
135	135	subject to a public-private agreement. 17
136	136	(22) "Request for proposals" means all documents, whether attached to or incorporated by 18
137	137	reference, utilized for soliciting proposals for a qualified facility under this chapter. 19
138	138	(23) "Responsible bidder" means a person who has the capability in all respects to fully 20
139	139	perform the contract requirements, and the integrity and reliability to assure good faith 21
140	140	performance. 22
141	141	(24) "Responsive bidder" means a person who has submitted a bid which conforms in all 23
142	142	material respects to the invitation for bids. 24
143	143	(25) "User fees" means the rate, fee or other charges imposed by an operator or by the 25
144	144	department for use of all or part of a qualified facility. 26
145	145	(26) "Utility" means a privately, publicly or cooperatively owned line, facility or system 27
146	146	for producing, transmitting or distributing communications, cable television, power, electricity, 28
147	147	light, heat, gas, oil, crude products, water, steam, waste, storm water not connected with highway 29
148	148	drainage, or any other similar commodity, including any fire or police signal system or street 30
149	149	lighting system, which directly or indirectly serves the public. 31
150	150	42-13.2-3. Establishment of special public-private partnership infrastructure 32
151	151	oversight commission. 33
152	152	(a) There is hereby established a special public-private partnership infrastructure oversight 34
153	153
154	154
155	155	LC002571 - Page 5 of 14
156	156	commission to comment on and approve all requests for proposals for design-build-finance-1
157	157	operate-maintain or design-build-operate-maintain services. 2
158	158	(b) The commission shall have seven (7) members to be appointed by the governor for a 3
159	159	term of two (2) years. One of whom shall be a representative from the Rhode Island Society of 4
160	160	Professional Engineers and three (3) of whom shall reside in different geographic regions of the 5
161	161	state. One of whom shall be an expert in the field of transportation and one of whom shall be an 6
162	162	expert in the field of public finance. Each member of the commission shall be an expert with 7
163	163	experience in either the fields of transportation, law, construction, labor, engineering, real estate, 8
164	164	public policy, public finance or management consulting. One of the members shall be appointed 9
165	165	by the governor to serve as chairperson of the commission. The members appointed by the governor 10
166	166	may be eligible for reappointment; provided, however, that no such member shall serve for more 11
167	167	than three (3) terms. 12
168	168	(c)(1) No member shall have been a registered lobbyist, as defined in chapter 139.1 of title 13
169	169	42, for a period of at least five (5) years prior to his or her appointment, nor shall any commission 14
170	170	member have been a member or employee of the general assembly or an employee of the executive 15
171	171	branch for a period of two (2) years prior to his or her appointment. 16
172	172	(2) In the event that the department director was employed by an organization that has 17
173	173	business before the department, or any predecessor agency or authority, for a period of at least two 18
174	174	(2) years prior to his or her appointment, the governor shall appoint an appropriate replacement 19
175	175	from within the department to fulfill the duties of the department required by this chapter. 20
176	176	(d) Whenever the department notifies the commission of its intent to issue a request for 21
177	177	proposal for design-build-finance-operate-maintain or design-build-operate-maintain services, the 22
178	178	department shall submit a draft of the request for proposal to the commission for its review and 23
179	179	approval. Pursuant to § 42-13.2-4, no request for proposal shall be issued by the department for a 24
180	180	public-private agreement for design-build-finance-operate-maintain or design-build-operate-25
181	181	maintain services without the commission's written approval. The commission shall provide an 26
182	182	initial written response to the request for proposal within fifteen (15) days, and shall request any 27
183	183	information necessary to comply with subsection (e) of this section. 28
184	184	(e) For each request for proposal for design-build-finance-operate-maintain or design-29
185	185	build-operate-maintain services, the commission shall report on issues surrounding the request for 30
186	186	proposal including, but not limited to: 31
187	187	(1) The status of current employees; 32
188	188	(2) The policy and regulatory structure for overseeing a privately-operated facility and on-33
189	189	going legislative oversight; 34
190	190
191	191
192	192	LC002571 - Page 6 of 14
193	193	(3) Issues of taxation, profit-sharing and resolution of new revenue producing ideas; 1
194	194	(4) Advertising and marketing; 2
195	195	(5) Use of new technologies; 3
196	196	(6) Lease terms and termination clauses; 4
197	197	(7) Additional responsibilities by both the private infrastructure operator and the state 5
198	198	during the lease period; 6
199	199	(8) The financial valuation of the state facility; 7
200	200	(9) Issues of public concern; and 8
201	201	(10) The anticipated advantages of entering into the anticipated public-private agreement 9
202	202	for design-build-finance-operate-maintain or design-build-operate-maintain services. 10
203	203	(f) The report shall be delivered within thirty (30) days of the commission's approval of a 11
204	204	request for proposal for design-build-finance-operate-maintain or design-build-operate-maintain 12
205	205	services to the director of administration, the house and senate committees on finance, the speaker 13
206	206	of the house and the senate president. 14
207	207	(g) Any research, analysis or other staff support that the commission reasonably requires 15
208	208	shall be provided by the department. 16
209	209	42-13.2-4. Issuance of contracts. 17
210	210	(a) Notwithstanding any general or special law to the contrary, the director of the 18
211	211	department, in conjunction with the special public-private partnership infrastructure oversight 19
212	212	commission established in § 42-13.2-3, may solicit proposals and enter into contracts for design-20
213	213	build-finance-operate-maintain or design-build-operate-maintain services with that responsible and 21
214	214	responsive bidder submitting the proposal that is most advantageous to the department through the 22
215	215	sale, lease, operation and maintenance of a facility within the state; provided, however, that the 23
216	216	proposal shall be in full compliance with all applicable requirements of federal, state and local law, 24
217	217	including chapters 13, 14.1 and 14.3 of title 37; provided further, that any such contract shall not 25
218	218	be subject to the competitive bid requirements set forth in chapter 2 of title 37; and provided further, 26
219	219	that each such contract shall be awarded pursuant to chapter 13 of title 37. 27
220	220	(b) In soliciting and selecting a private entity/operator with which to enter into a public-28
221	221	private agreement for design-build-finance-operate-maintain or design-build-operate-maintain 29
222	222	services, the department shall utilize the following competitive sealed proposals procurement 30
223	223	approach: 31
224	224	(1) Each request for proposals for design-build-operate-maintain and design-build-finance-32
225	225	operate-maintain services; 33
226	226	(i) Shall include design requirements, and shall provide notice that the contractor is 34
227	227
228	228
229	229	LC002571 - Page 7 of 14
230	230	required to comply with § 37-13-6, and that all contractors and subcontractors performing or 1
231	231	assisting in work on the project worksite shall pay their laborers, mechanics, teamsters, other craft 2
232	232	members and employees employed under the contract no less than the locally prevailing wage and 3
233	233	benefits for corresponding work on similar projects in the state; 4
234	234	(ii) Shall solicit proposal development documents; and 5
235	235	(iii) May, if the department determines that the cost of preparing proposals is high, 6
236	236	considering the size, estimated price and complexity of the procurement: 7
237	237	(A) Prequalify responsible bidders by issuing a request for qualifications in advance of the 8
238	238	request for proposals; and 9
239	239	(B) Select a short list of responsible bidders prior to discussions and evaluations, if the 10
240	240	number of proposals that will be short-listed is stated in the request for proposals and prompt public 11
241	241	notice is provided to all bidders as to which proposals have been short-listed; or 12
242	242	(C) Pay stipends to unsuccessful bidders; provided, however, that the amount of such 13
243	243	stipends and the terms under which such stipends shall be paid shall be included in the request for 14
244	244	proposals; 15
245	245	(2) Adequate public notice of the request for proposals, posted and published on the 16
246	246	department's website at least three (3) weeks prior to the deadline for submission of proposals, with 17
247	247	an opportunity for public comment, shall be provided; 18
248	248	(3) Proposals shall be opened so as to avoid disclosure of contents to competing bidders 19
249	249	during the process of negotiation and a register of proposals shall be prepared by the department 20
250	250	and shall be open for public inspection after contract award; and 21
251	251	(4)(i) The request for proposals shall state the relative importance of price and other factors 22
252	252	and sub factors, if any. 23
253	253	(ii) Each request for proposals for design-build-operate-maintain and design-build-finance-24
254	254	operate-maintain: 25
255	255	(A) Shall state the relative importance of: 26
256	256	(I) Demonstrated compliance with the design requirements; 27
257	257	(II) Bidder qualifications; 28
258	258	(III) Financial capacity; 29
259	259	(IV) Project schedule; 30
260	260	(V) Elimination of existing public debt with respect to the facility; 31
261	261	(VI) Lowest user charges or price over the term of the design-build-operate-maintain and 32
262	262	design-build-financeoperate-maintain contract; and 33
263	263	(VII) Other factors, if any; 34
264	264
265	265
266	266	LC002571 - Page 8 of 14
267	267	(B) Shall, if the contract price is estimated to exceed ten million dollars ($10,000,000) or 1
268	268	if the contract period of operations and maintenance is five (5) years or longer, or if circumstances 2
269	269	established by the department require each bidder to identify an independent peer reviewer whose 3
270	270	competence and qualification to provide such services shall be an additional evaluation factor in 4
271	271	the award of the contract; and 5
272	272	(C) Shall not include, as an evaluation factor in the award of the contract, the amount, if 6
273	273	any, paid by a contractor to the department for procurement using design-build-operate-maintain 7
274	274	and design-build-finance-operate-maintain. 8
275	275	(5) As provided in the request for proposals and under regulations issued by the department, 9
276	276	discussions may be conducted with responsible bidders who submit proposals determined to be 10
277	277	reasonably susceptible of being selected for award for the purpose of clarification to assure full 11
278	278	understanding of, and responsiveness to, the solicitation requirements. Bidders shall be accorded 12
279	279	fair and equal treatment with respect to any opportunity for discussion and revision of proposals, 13
280	280	and such revisions may be permitted after submissions and prior to award for the purpose of 14
281	281	obtaining best and final offers. In conducting discussions, there shall be no disclosure of any 15
282	282	information derived from proposals submitted by competing bidders. 16
283	283	(6) Award shall be made to the responsible bidder whose proposal conforms to the 17
284	284	solicitation and is determined in writing to be the most advantageous to the acquiring agency, taking 18
285	285	into consideration the price and the evaluation factors set forth in the request for proposals. No 19
286	286	other factors or criteria shall be used in the evaluation. The contract file shall contain the basis upon 20
287	287	which the award is made. Written notice of the award of a contract to the successful bidder shall be 21
288	288	promptly provided to all bidders. 22
289	289	(7) The department may provide debriefings that furnish the basis for the source selection 23
290	290	decision and contract award. 24
291	291	(c)(1) A private entity/operator may request a review, prior to submission of a solicited 25
292	292	proposal, by the department of administration that the private entity/operator has identified as 26
293	293	confidential or proprietary to determine whether such administration is subject to disclosure 27
294	294	pursuant to chapter 2 of title 38. 28
295	295	(2) The department shall take appropriate action to protect confidential or proprietary 29
296	296	information that a private entity/operator provides as part of a solicited proposal and that is exempt 30
297	297	from disclosure pursuant to chapter 2 of title 38. 31
298	298	42-13.2-5. Request for proposals - Content of public-private agreement. 32
299	299	(a) The request for proposals shall contain the proposed form of contract or public-private 33
300	300	agreement to be executed between the successful bidder and the department upon award, and shall 34
301	301
302	302
303	303	LC002571 - Page 9 of 14
304	304	have been approved as to content and form by the special public-private infrastructure oversight 1
305	305	commission and by the department before the request for proposals is issued, pursuant to § 42-13.2-2
306	306	4. The director of the department of administration or his or her designee shall have thirty (30) days 3
307	307	from the receipt of a draft of the proposed form of contract to notify the special public-private 4
308	308	infrastructure oversight commission in writing of any material objections to the draft form of 5
309	309	contract. Before issuing any request for proposal, the department shall prepare a written response 6
310	310	to reports submitted to it by the special public-private infrastructure oversight commission which 7
311	311	response shall state the basis for any substantial divergence between the actions of the department 8
312	312	and the recommendations contained in such reports of said commission. The department and the 9
313	313	successful bidder shall only make non-material changes in the content and form of the public-10
314	314	private agreement contained in the request for proposals. 11
315	315	(b)(1) After selecting a solicited or unsolicited proposal for a public-private initiative, the 12
316	316	department shall enter into the public-private agreement for the subject facility with the selected 13
317	317	private entity/operator. 14
318	318	(2) An affected jurisdiction may be a party to a public-private agreement entered into by 15
319	319	the department and a selected private entity/operator or combination of private entities. 16
320	320	(c) A public-private agreement under this chapter shall provide for the following: 17
321	321	(1) The planning, acquisition, engineering, financing, development, design, construction, 18
322	322	reconstruction, replacement, improvement, maintenance, management, repair, leasing or operation 19
323	323	of a facility including provisions for the replacement and relocation of utility facilities; 20
324	324	(2) The term of the public-private agreement, which shall not exceed fifty (50) years 21
325	325	without written approval of the governor; 22
326	326	(3) The type of property interest, if any, the private entity/operator shall have in the facility; 23
327	327	(4) A description of the actions the department may take to ensure proper maintenance of 24
328	328	the facility; 25
329	329	(5) Whether user fees will be collected on the facility and the basis by which such user fees 26
330	330	shall be determined and modified; 27
331	331	(6) Compliance with applicable federal, state and local laws; 28
332	332	(7) Grounds for termination of the public-private agreement by the department or private 29
333	333	entity/operator; 30
334	334	(8) Procedures for amendment of the agreement by mutual agreement and for changes in 31
335	335	the agreement by written order from the department; 32
336	336	(9) Review and approval by the department of the private entity/operator's plans for the 33
337	337	development and operation of the facility; 34
338	338
339	339
340	340	LC002571 - Page 10 of 14
341	341	(10) Inspection by the department and the independent peer reviewer of the design and 1
342	342	construction of, or improvements to, the facility; 2
343	343	(11) Maintenance by the private entity/operator of a policy of liability insurance or self-3
344	344	insurance reasonably acceptable to the department; 4
345	345	(12) Filing by the private entity/operator, on a periodic basis, of appropriate financial 5
346	346	statements in a form acceptable to the department; 6
347	347	(13) Filing by the private entity/operator, on a periodic basis, of traffic reports, service 7
348	348	quality standards, ridership reports, on time performance reports, or other reports identified by the 8
349	349	department, in a form acceptable to the department; 9
350	350	(14) Financing obligations of the private entity/operator and the department; 10
351	351	(15) Apportionment of expenses between the private entity/operator and the department; 11
352	352	(16) The rights and duties of the private entity/operator, the department, and other state and 12
353	353	local governmental entities with respect to use of the facility; 13
354	354	(17) The rights and remedies available in the event of default or delay; 14
355	355	(18) The terms and conditions of indemnification of the private entity/operator by the 15
356	356	department, as required by applicable law; 16
357	357	(19) Assignment, subcontracting or other delegation of responsibilities of the private entity/ 17
358	358	operator or the department under the agreement to third parties, including other private entities and 18
359	359	other state agencies; 19
360	360	(20) Sale or lease to the private entity/operator of private property related to the facility; 20
361	361	(21) If, and how, the parties shall share costs of development of the project; 21
362	362	(22) If, and how, the parties shall allocate financial responsibility for cost overruns; 22
363	363	(23) Liability for nonperformance; 23
364	364	(24) Any incentives for performance; 24
365	365	(25) Any accounting and auditing standards to be used to evaluate progress on the project; 25
366	366	(26) The private entity/operator's plans to obtain a labor and material payment bond, in 26
367	367	accordance with chapter 2 of title 37, covering all construction, reconstruction or maintenance, 27
368	368	including capital maintenance, work of the project and require the payment of prevailing wages for 28
369	369	labor performed on the project in accordance with chapters 13, 14.1 and 14.3 of title 37; 29
370	370	(27) The private entity/operator's plans for labor harmony for the entire term of the 30
371	371	agreement, including construction, reconstruction and capital and routine maintenance and 31
372	372	adequate remedies to address the private entity/operator's failure to maintain labor harmony which 32
373	373	shall include, but not be limited to, assessment of liquidated damages and contract termination; 33
374	374	(28) Traffic enforcement and other policing issues, subject to § 42-13.2-11, including any 34
375	375
376	376
377	377	LC002571 - Page 11 of 14
378	378	reimbursement by the private entity/operator for such services; and 1
379	379	(29) Other terms and conditions. 2
380	380	42-13.2-6. End of term or termination of public-private agreement. 3
381	381	Upon the end of the term of the public-private agreement or in the event of termination of 4
382	382	the public-private agreement, the department and duties of the private entity/operator shall cease, 5
383	383	except for any duties and obligations that extend beyond the termination as provided in the public-6
384	384	private agreement, and all the rights, title and interest in such qualified facility shall revert to the 7
385	385	department and shall be dedicated to the department for public use. 8
386	386	42-13.2-7. Rights of department upon material default by a private entity/operator. 9
387	387	(a) Upon the occurrence and during the continuation of a material default by a private 10
388	388	entity/operator, not caused by an event of force majeure, and upon the failure by the private 11
389	389	entity/operator acting in the capacity as a contractor or its financing institution on the contractor's 12
390	390	behalf, to cure such material default within thirty (30) days of written notice of such default by the 13
391	391	department, the department of administration may: 14
392	392	(1) Elect to take over the facility, including the succession of all right, title and interest in 15
393	393	the facility; and 16
394	394	(2) Terminate the public-private agreement and exercise any other rights and remedies 17
395	395	available. 18
396	396	(b) In the event that the department elects to take over a facility under subsection (a) of this 19
397	397	section, the department: 20
398	398	(1) Shall make interim payments, on behalf of the contractor and for the contractor's 21
399	399	account, of any amounts subject to a mechanics lien law of the state; 22
400	400	(2) May develop and operate the facility, impose user fees for the use of the facility and 23
401	401	comply with any service contracts; and 24
402	402	(3) May solicit proposals for the maintenance and operation of the facility under § 42-13.2-25
403	403	4. 26
404	404	42-13.2-8. Issue and sale of bonds or notes of the department. 27
405	405	(a)(1) The department may request authorization from the state to issue and sell bonds or 28
406	406	notes of the department for the purpose of providing funds to carry out the provisions of this 29
407	407	chapter, with respect to the development, financing or operation of a facility or the refunding of 30
408	408	any bonds or notes, together with any costs associated with the transaction. 31
409	409	(2) Any bond or note issued under this section: 32
410	410	(i) Constitutes the corporate obligation of the department; 33
411	411	(ii) Shall not constitute a debt of the state within the meaning or application of the 34
412	412
413	413
414	414	LC002571 - Page 12 of 14
415	415	constitution of the state; and 1
416	416	(iii) Shall be payable solely as to both principal and interest from: 2
417	417	(A) The revenues from a lease to the department, if any; 3
418	418	(B) Proceeds of bonds or notes, if any; 4
419	419	(C) Investment earnings on the proceeds of bonds or notes; or 5
420	420	(D) Other funds available to the department for such purpose. 6
421	421	(b)(1) For the purpose of financing a facility, the department and operator may apply for, 7
422	422	obtain, issue and use private activity bonds available under any federal law or program. 8
423	423	(2) Any bonds, debt, other securities or other financing issued for the purposes of this 9
424	424	chapter, shall not be considered a debt of the state or any political subdivision thereof or a pledge 10
425	425	of the full faith and credit of the state or any political subdivision of the state. 11
426	426	(c) Nothing in this section shall be construed as a prohibition on a local government or any 12
427	427	authority of the state to issue authorized bonds for infrastructure projects. 13
428	428	42-13.2-9. Acceptance of funds from the federal government and other sources. 14
429	429	(a)(l) The department may accept from the federal government or any of its agencies funds 15
430	430	that are available to the state for carrying out the provisions of this chapter, whether the funds are 16
431	431	made available by grant, or other financial assistance. 17
432	432	(2) The department may enter into agreements or other arrangements with the federal 18
433	433	government or any of its agencies as may be necessary for carrying out the purposes of this chapter. 19
434	434	(b) The department may accept from any source any grant, donation, gift or other form of 20
435	435	conveyance of land, money, other real or personal property or other item of value made to the state 21
436	436	or the department for carrying out the purpose of this chapter. 22
437	437	(c) Any facility may be financed in whole or in part by contribution of any funds or property 23
438	438	made by any private entity/operator or affected jurisdiction that is party to a public-private 24
439	439	agreement under this chapter. 25
440	440	(d) The department may combine federal, state, local and private funds to finance a facility 26
441	441	under this chapter. 27
442	442	42-13.2-10. Exercise of power of eminent domain. 28
443	443	The state of Rhode Island may exercise the power of eminent domain to acquire property, 29
444	444	rights of way or other rights in property for projects that are part of a public-private agreement for 30
445	445	design-build-finance-operate-maintain or design-build-operate-maintain services. 31
446	446	42-13.2-11. Sovereign immunity. 32
447	447	Nothing in this chapter shall limit any waiver of the sovereign immunity of the state or any 33
448	448	officer or employee of the state or any officer or employee of the state with respect to the 34
449	449
450	450
451	451	LC002571 - Page 13 of 14
452	452	participation in or approval of all or any part of the facility or its operation. 1
453	453	SECTION 2. This act shall take effect upon passage. 2
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455	455	LC002571
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457	457
458	458
459	459	LC002571 - Page 14 of 14
460	460	EXPLANATION
461	461	BY THE LEGISLATIVE COUNCIL
462	462	OF
463	463	A N A C T
464	464	RELATING TO STATE AFFAIRS AND GOVERNMENT -- PUBLIC-PRIVATE
465	465	PARTNERSHIP INFRASTRUCTURE PROGRAM
466	466	***
467	467	This act would establish a seven (7) member public-private partnership infrastructure 1
468	468	oversight commission to approve all requests for proposals submitted for public-private partnership 2
469	469	construction of qualified facilities. This act would establish a new chapter outlining the request for 3
470	470	proposal process for the construction of public-private qualified facilities. Further, this act would 4
471	471	provide for the state to exercise the power of eminent domain relating to the construction of such 5
472	472	qualified facilities. 6
473	473	This act would take effect upon passage. 7
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475	475	LC002571
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477	477