Bill
SB 2322
Creates a formal Rhode Island PPP Infrastructure Program with oversight, flexible DBFOM/DBOM contracts, funding options, labor controls, and eminent domain for public facilities.
Purpose and intent
- Establish a formal framework for pursuing public-private partnerships (PPPs) to develop, finance, construct, operate, and maintain state facilities that are open to the public.
- Create a dedicated oversight mechanism to review and approve PPP proposals, set procurement rules, and guide the use of private partners in infrastructure projects.
- Provide authority for the state to issue bonds/notes and to utilize a mix of federal, state, local, and private funds for PPP projects, including eminent domain where needed.
Key provisions and changes
1) New chapter: Public-Private Partnership Infrastructure Program (Chapter 42-13.2)
- Defines scope and terminology for PPPs, including what counts as a “qualified facility” (e.g., transportation facilities, water/waste facilities, higher education, medical/nursing facilities, recreational facilities, and related appurtenances) subject to PPP arrangements.
- Establishes project delivery methods:
- Design-Build-Finance-Operate-Maintain (DBFOM)
- Design-Build-Operate-Maintain (DBOM)
- Sets baseline concepts (e.g., term length up to 50 years, user fees, maintenance responsibilities, and requirements for labor standards and project labor agreements where applicable).
2) Special Public-Private Partnership Infrastructure Oversight Commission (Section 42-13.2-3)
- A seven-member commission appointed by the Governor for two-year terms.
- Composition includes regional representation and experts in transportation and public finance; at least one member to serve as chair.
- Prohibits certain post-employment conflicts with General Assembly or executive branch staff for a cooling-off period (2 years).
- Requires department to submit draft RFPs to the Commission for review and approval; Commission must respond within 15 days.
- Commission must produce a report within 30 days of approval of an RFP, addressing operational, regulatory, financial, public-interest, and technological considerations, among others.
- Commission support can be provided by the Department.
3) Issuance of contracts (Section 42-13.2-4)
- The Department, with the Commission, may solicit and enter into DBFOM or DBOM contracts outside standard competitive bidding, but in compliance with applicable state and federal laws.
- Procurement uses competitive sealed proposals with detailed evaluation criteria, including design requirements, bidder qualifications, financial capacity, schedule, and potential cost-saving measures.
- Proposals may include prequalification, shortlisting, or stipends for unsuccessful bidders; public notice requirements and bid transparency are specified.
- For large projects, a project labor feasibility analysis may be required prior to RFP issuance.
- Requires bidders to commit to honoring existing and future collective bargaining agreements where applicable.
- Allows discussions and best-and-final-offer processes under fair and confidential conditions.
- Award must be to the most advantageous bid, with comprehensive documentation of the basis for award.
4) Content of public-private agreements (Section 42-13.2-5)
- Agreements encompass planning, design, financing, development, construction, operation, maintenance, and related responsibilities.
- Term limits: up to 50 years without Governor’s written approval.
- Includes terms on property interests, maintenance, user fees, compliance, termination, amendments, audit, financial reporting, labor provisions, and risk allocation.
- Requires a labor and material payment bond and adherence to prevailing wage laws; requires labor harmony provisions and remedies for noncompliance.
- Includes mandatory project labor feasibility studies for large projects and compliance with labor and policing provisions, potentially including reimbursement for certain services.
5) End of term, material default, and remedies (Sections 42-13.2-6 to -7)
- At term end or upon termination, facility control returns to the Department, with ongoing obligations limited to post-termination duties.
- If a private partner experiences material default (non-cure within 30 days after notice, excluding force majeure), the Department may take over or terminate the agreement.
- Department can make interim payments for liens, continue operation under a replacement plan, solicit new proposals for maintenance/operation, etc.
6) Financing and funding (Sections 42-13.2-8 to -9)
- Department may seek authorization to issue bonds/notes; bonds are department obligations, not state debts, and are payable from specified revenues or funds.
- Private activity bonds and mixed-funding approaches are allowed; money and property from private, federal, or other sources may be contributed or combined to finance facilities.
- Department may accept federal funds and other grants; facilities may be financed with combined funds from multiple sources.
7) Eminent domain and sovereign immunity (Sections 42-13.2-10 to -11)
- Rhode Island may exercise eminent domain for projects within PPPs.
- Maintains state sovereign immunity (with limited waivers where applicable).
Effective date
- The act takes effect upon passage.
Potential impacts and considerations
Note: This summary focuses on the substantive elements and procedural framework laid out in the bill text and explanatory material.
Compiled from official sources — confirm details with the bill’s official record.
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