2025 -- H 5870

========

LC002111

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

____________

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

     Introduced By: Representatives Edwards, Shanley, Bennett, Phillips, Potter, Lima,
Costantino, Casey, McEntee, and Kislak

     Date Introduced: February 28, 2025

     Referred To: House State Government & Elections

     (Dept. of Administration)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 37-2-31 of the General Laws in Chapter 37-2 entitled "State

Purchases" is hereby amended to read as follows:

     37-2-31. Use of other types of contracts.

     (a) Definitions:

     (1) "State" means and refers to the definition in § 37-2-7.

     (2) “Private partner” means any non-governmental entity that is a party in a public-private

partnership with a state agency.

     (3) “Public-private partnership agreement” means a long-term contract between the state

and a private partner that develops, finances, constructs, operates, or maintains a state-owned

physical asset or property in which the private party bears significant risk over the long term.

     (4) “Risk” means financial, operational, or legal uncertainty associated with the private

partner’s participation.

     (5) “Value for money” means the analysis used to compare the financial impacts to the

agency of use of a public-private partnership delivery method against other delivery methods. This

process looks to determine the ideal delivery method when considering cost, quality, time, and

performance.

     (6) “Project labor agreement” means a prehire collective bargaining agreement between an

owner and labor unions involving a specific construction project.

     (b) Subject to the limitations of §§ 37-2-29 and 37-2-30, any type of contract which will

promote the best interests of the state may be used, including public-private partnership agreements.

     (c) On or before July 1, 2026, the chief purchasing officer within the department of

administration shall promulgate rules for a state agency to evaluate, solicit, or enter into a public-

private partnership agreement. The rules shall reflect the intent to promote and encourage the use

of public-private partnerships in the state. The chief purchasing officer shall consult with design-

builders, progressive design-builders, construction managers, other contractors and design

professionals, including engineers and architects, labor organizations, and other appropriate

professionals during the development of the rules.

     (d) A state agency utilizing a public-private partnership shall continue to be responsible for

oversight of any function that is delegated to or otherwise performed by a private partner. State

contracts using this method shall be awarded by a competitive procurement following the

provisions of chapter 2 of title 37 ("state purchases").

     (e) Any request for proposals for a contract utilizing a public-private partnership shall

include at a minimum:

     (1) The parameters of the proposed public-private partnership agreement;

     (2) The duties and responsibilities to be performed by the private partner or private

partners;

     (3) The methods of oversight to be employed by the contracting agency;

     (4) The duties and responsibilities that are to be performed by the contracting agency and

any other parties to the contract;

     (5) The evaluation factors and the relative weight of each factor to be used in the scoring

of awards;

     (6) An evaluation for the value for money conducted by a subject matter expert engaged

by the contracting agency that opines on whether the public-private partnership constitutes fair

value for the state;

     (7) Plans for financing and operating the project and the revenues, service payments, bond

financings, and appropriations of public funds needed for the qualifying project and the value for

money analysis;

     (8) Comprehensive documentation of the experience, capabilities, capitalization and

financial condition, and other relevant qualifications of the private entity submitting the proposal;

     (9) All contracts must adhere to §§ 37-13-11 and 37-2-59, and other requirements of

contracting for construction projects when state funds are being deployed;

     (10) Construction project contracts may include a project labor agreement as appropriate;

and

LC002111 - Page 2 of 4

     (11) Other information required by the contracting agency to evaluate the proposals

submitted and the overall proposed public-private partnership.

     (f) A private entity desiring to be a private partner shall demonstrate to the satisfaction of

the contracting agency that it is capable of performing any duty, responsibility, or function it may

be authorized or directed to perform as a term or condition of the public-private partnership

agreement.

     (g) Any public-private partnership agreement is subject to the provisions of the

privatization of state services act as stated in chapter 148 of title 42 as appropriate.

     SECTION 2. This act shall take effect upon passage.

========

LC002111

========

LC002111 - Page 3 of 4

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

***

     This act would define public-private partnerships and provide the framework to encourage

the use of public-private partnerships for proposals for state purchases.

     This act would take effect upon passage.

========

LC002111

========

LC002111 - Page 4 of 4