Revision: June 3, 2016, midnight
\t \t\tSB 549-FN - VERSION ADOPTED BY BOTH BODIES
03/10/2016 0904s
03/10/2016 0933s
11May2016... 1606h
06/01/2016 2120EBA
2016 SESSION
\t16-2983
\t06/10
SENATE BILL\t549-FN
AN ACT\trelative to public-private partnerships for transportation infrastructure projects and establishing the public-private infrastructure oversight commission.
SPONSORS:\tSen. Lasky, Dist 13; Sen. D'Allesandro, Dist 20; Sen. Daniels, Dist 11; Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Hosmer, Dist 7; Sen. Kelly, Dist 10; Sen. Pierce, Dist 5; Sen. Reagan, Dist 17; Sen. Soucy, Dist 18; Sen. Watters, Dist 4; Sen. Woodburn, Dist 1; Rep. Cloutier, Sull. 10; Rep. M. O'Brien, Hills. 36
COMMITTEE:\tTransportation
-----------------------------------------------------------------
ANALYSIS
\tThis bill authorizes the commissioner of the department of transportation to enter into certain contracts with private entities.
\tThis bill also establishes the public-private partnership infrastructure oversight commission.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/10/2016 0904s
03/10/2016 0933s
11May2016... 1606h
06/01/2016 2120EBA
\t16-2983\t06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to public-private partnerships for transportation infrastructure projects and establishing the public-private infrastructure oversight commission.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Purpose Statement. Public-private partnerships allow for the sharing of resources to finance, design, build, operate, and maintain transportation infrastructure projects and are especially effective when limited financial resources are available. Such partnerships provide for shared financial responsibilities between the private sector and a public agency. To accomplish that, a clear and succinct law needs to be implemented that considers our infrastructure requirements, delineates responsibilities and commitments, and identifies risks and rewards of both parties. Public-private partnership legislation is designed to address these issues in order to attract the needed investment to sustain and promote growth while maintaining our transportation infrastructure.
\t2 New Paragraph; Transportation Administration; Powers of Commissioner. Amend RSA 228:21 by inserting after paragraph II the following new paragraph:
\t\tIII. The commissioner, upon the approval of the governor and council and the capital budget overview committee, may enter into agreements with private entities for design-build-finance-operate-maintain or design-build-operate-maintain services for transportation infrastructure projects under RSA 228:107 through RSA 228:115, provided that such projects shall be approved as part of the state 10-year transportation improvement program in accordance with RSA 240.
\t3 New Subdivision; Public-Private Partnership Projects. Amend RSA 228 by inserting after section 106 the following new subdivision:
Public-Private Partnership Projects
\t228:107 Public-Private Partnership Infrastructure Oversight Commission Established. There is established a public-private partnership transportation infrastructure oversight commission to consider and recommend to the commissioner of transportation projects that may be suitable for delivery using design-build-finance-operate-maintain or design-build-operate-maintain services. The commission shall act as an advisory board during the execution of a public-private partnership project, supporting the department in the development of a request for proposals and in the preparation of agreements for public-private partnership projects.
\t228:108 Membership.
\t\tI. The commission established in RSA 228:107 shall have the following members: 2 members who shall reside in different geographic regions of the state, to be appointed by the governor for terms of 2 years; 2 members to be appointed by the president of the senate for terms of 2 years; 2 members to be appointed by the speaker of the house of representatives for terms of 2 years; and one member to be appointed by the state treasurer, who shall not be an employee of the state treasurer, for a term of 2 years. The commissioner, or designee, shall serve as a non voting member of the commission.
\t\tII. Each member of the commission shall be an expert with experience in the fields of transportation law, public policy, public finance, management consulting, transportation, or organizational change; provided that one of the members appointed by the governor shall be an expert in the field of public finance, and one member appointed by the governor shall be an expert in the field of transportation. The governor shall appoint a chairperson from among the members. The members may be eligible for reappointment; however, no member shall serve for more than 3 terms.
\t\tIII. No person shall be appointed a voting member of the commission who is registered or was registered within the prior one-year period with the secretary of state as a lobbyist under RSA 15; no voting member shall have been a member or employee of the general court or an employee of the executive branch for a period of 6 months prior to his or her appointment; and no member shall have been employed by an organization that has business before the commission, for a period of at least one year prior to his or her appointment.
\t\tIV. The commissioner shall call the first meeting within 90 days of the effective date of this section.
\t\tV. Members of the commission shall receive mileage at the state employee rate when attending to the duties of the commission.
\t228:109 Duties.
\t\tI. The commission shall:
\t\t\t(a) Establish a general framework for public-private partnership contracts that establishes a process for the submission and evaluation of all such projects and provides a format and forms to enable the bidder to comply with the requirements including terms and conditions.
\t\t\t(b) Provide for the submission of unsolicited proposals, including setting qualification criteria for unsolicited proposals and establishing a process for evaluating unsolicited proposals.
\t\t\t(c) Provide a method and structure for using public advisors for strategic planning, proposal evaluations, and project monitoring and utilize public professionals on a case-by-case basis.
\t\t\t(d) Perform an analysis to determine whether a project is suitable for a public-private partnership whenever the department notifies the commission of its intent to pursue a public-private partnership contract.
\t\t\t(e) Hold a minimum of 2 publicly noticed hearings per project to establish whether public-private partnership is the appropriate procurement method. Such notice shall be provided at least 14 days prior to the hearing date. The commission shall allow for a 30-day public comment period following the publicly noticed hearing.
\t\t\t(f) Make recommendations to the commissioner, subject to the approval of the governor and council and the capital budget overview committee, concerning the use of public-private partnerships for certain projects.
\t\t\t(g) Upon approval of the governor and council and the capital budget overview committee, the commission shall support the department in the development of a request for proposals.
\t\t\t(h) Provide criteria for qualifications to bid per project, including but not limited to, adequate equipment to perform, financial stability, and proven record on projects of this type.
\t\t\t(i) Assure that any public-private partnership agreement is advanced in accordance with the department's design, permitting, and right of way acquisition process and complies with all federal and state design criteria.
\t\t\t(j) Estimate the costs associated with hiring qualified private and public support personnel to advance and oversee any public-private partnership contract.
\t\t\t(k) Hold a minimum of one publicly noticed hearing per project to solicit public feedback concerning the draft request for proposals. Such notice shall be provided at least 14 days prior to the hearing date. The commission shall allow for a 30-day public comment period following the publicly noticed hearing.
\t\tII. Once the commission is satisfied that the request for proposals is complete, governor and council approval shall be obtained before it is released by the department.
\t228:110 Procedure. Whenever the department notifies the commission that it is contemplating the use of a public-private partnership contract for design-build-finance-operate-maintain or design-build-operate-maintain services, the department shall submit a written request to the commission for its consideration. The commission shall provide an initial written response to the request to consider a public-private partnership contract within 15 days. No request for proposals shall be issued by the department for a public-private agreement for design-build-finance-operate-maintain or design-build-operate-maintain services without the commission's written recommendation and concurrence by governor and council of both the procurement method and content of the request for proposals.
\t228:111 Commission Report. The commission shall issue the following reports:
\t\tI. Within 6 months of the first meeting of the commission a copy of the framework establishing the process for the submission and evaluation of public-private partnership projects shall be provided to the chairpersons of the public works and highways committee and the senate transportation committee and the governor and council. The framework shall include the process for the submission of both solicited and unsolicited proposals and a process for evaluating such proposals. It shall also include how public advisors may be utilized for planning, evaluating, and monitoring of projects.
\t\tII. Annually thereafter, a report on the work of the commission shall be provided to the individuals listed in paragraph I, including but not limited to, the number of projects reviewed, the recommendations for such projects, and the number of requests for proposals being developed.
\t228:112 Project Reports.
\t\tI. For each request to establish a public-private partnership contract for design-build-finance-operate-maintain or design-build-operate-maintain services, the commission shall report on issues surrounding the project including, but not limited to:
\t\t\t(a) The impact on current state employees.
\t\t\t(b) The policy and regulatory structure for overseeing a privately operated transportation facility and ongoing legislative oversight.
\t\t\t(c) Issues of taxation, profit-sharing, and resolution of new revenue producing ideas.
\t\t\t(d) Advertising and marketing.
\t\t\t(e) Use of new technologies.
\t\t\t(f) Lease terms and termination clauses.
\t\t\t(g) Additional responsibilities by both the private infrastructure operator and the state during the lease period.
\t\t\t(h) The financial valuation of the state transportation facility.
\t\t\t(i) Issues of public concern.
\t\t\t(j) The anticipated advantages of entering into the anticipated public-private agreement for design-build-finance-operate-maintain or design-build-operate-maintain services.
\t\tII. The report shall be delivered within 30 days of the commission's recommendation concerning the use of design-build-finance-operate-maintain or design-build-operate-maintain services to the chairpersons of the public works and highways committee and the senate transportation committee and the governor and council.
\t228:113 Contributions from Other States. When a project involves one or more other states, the commissioner may receive and accept capital contributions and funding from such other states and may approve the transfer of support personnel and experts.
\t228:114 State and Federal Funding. Any public-private partnership projects shall be approved as part of the state 10-year transportation improvement program in accordance with RSA 240.
\t228:115 Liability Insurance. Any contract for public-private design-build-finance-operate-maintain or design-build-operate-maintain services shall provide for securing and maintaining a liability insurance policy for contractors and engineers in the design phase of a project which shall be limited to 10 percent of the cost of such project. A certificate of liability compliance shall be included in the bid. Any such contract shall require a bond under RSA 447:16 for the design-build and bonds, letters of credit, or other forms of security for the operations and maintenance phases of the project.
\t4 Effective Date. This act shall take effect 60 days after its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2983
\t\t\t\t\t\t\t\t\t\t\tAmended 5/17/16
SB 549-FN - FISCAL NOTE
AN ACT\trelative to public-private partnerships for transportation infrastructure projects and establishing the public-private infrastructure oversight commission.
FISCAL IMPACT:
The Department of Transportation states this bill, as amended by the House (Amendment #2016-1606h), may have an indeterminable impact on state revenue and expenditures in FY 2017 and each year thereafter. There will be no impact on county and local revenue or expenditures.
METHODOLOGY:
This bill authorizes the Department of Transportation to enter into agreements with private entities for design-build-finance-operate-maintain or design-build-operate-maintain services for intermodal infrastructure and transportation projects. The Department is unable to predict what projects may be part of such agreements and therefore is unable to estimate this bill’s impact on state revenue or expenditures.