Bill Text: HI SB1228 | 2016 | Regular Session | Introduced
Bill Title: State Procurement Office; Special Innovative Procurement; Public-private Partnerships; Procurement Policy Board; Rules; Appropriation ($)
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2016-04-13 - Received notice of all Senate conferees being discharged (Sen. Com. No. 647). [SB1228 Detail]
Download: Hawaii-2016-SB1228-Introduced.html
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THE SENATE |
S.B. NO. |
1228 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that creative problem solving is necessary to address the growing concerns of the State's deficit. Hawaii is responsible for unfunded liabilities totaling billions of dollars. Like many states, Hawaii must balance its budget while managing the demands of infrastructure maintenance and public service needs. Budget shortfalls result in postponed maintenance and reduced social services despite a growing population driving the demand for services and adding stress to public infrastructure.
The legislature finds that public-private partnerships can help government maintain infrastructure, provide services, and operate more efficiently. A public-private partnership is a contractual agreement between a public agency and a private sector entity where skills and assets of each sector are combined to deliver services to the public. Both entities share in the risks and rewards of the venture. A public-private partnership is not privatization of a government function. The partnership provides for a level of public control and oversight of operations not typical of privatization.
While public-private partnerships are widely employed around the world, only five states have adopted comprehensive legislation authorizing governmental entities to contract with private partners to design, build, finance, operate, and maintain public facilities. Public-private partnerships have been created to address social infrastructure, transportation, water treatment, energy, and financial management concerns. The private sector contributes management efficiency, technology, cash flow management, and personnel development to complement the government's legal authority, capital resources, procurement policies, and broad perspective.
The purpose of this Act is to establish a framework for public-private partnerships in Hawaii.
SECTION 2. (a) The state procurement office shall draft rules for public-private partnership contracts.
(b) The rules shall include but not be limited to the following:
(1) A requirement that a public-private partnership contract include a long-term maintenance and operations scope;
(2) Provisions that require a suitability test wherein a centralized governmental entity with expertise in public-private partnership delivery and financial modeling compares the value of long-term leases to existing project delivery models before issuing any requests for qualifications or proposals, which would be triggered after satisfaction of basic threshold requirements for public-private partnerships;
(3) Provisions that require the government to have an independent consultant or in-house expert in facilities planning, design, and construction assess the long-term projected needs of the government before considering the use of a public-private partnership; advise the government prior to solicitation; and continue serving as advisor to the government throughout the planning, design, and construction phases;
(4) Comprehensive statutory guidelines that apply to all state entities to provide a uniform, fair process that enables private developers to properly assess the risks and rewards of engagement;
(5) Provisions that encourage communication between design professionals and the end user during the request for proposals phase so the government end user is empowered to provide direct, meaningful input to the competitor design teams developing the proposed designs; and
(6) Provisions that enable small businesses to compete by either restricting the use of design competitions or by limiting the number of competitors required to provide designs during the request for proposal phase, and awarding reasonable stipends to unsuccessful bidders.
(c) The state procurement office shall report the draft rules for public-private partnerships and any proposed legislation to the legislature no later than twenty days prior to the convening of the regular session of 2016.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
State Procurement Office; Public-private Partnerships; Rules
Description:
Requires the state procurement office to develop draft rules regarding public-private partnerships in Hawaii, and to report the draft rules and any proposed legislation to the legislature.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
