HB2172 HD2

SECTION 1. Public-private partnerships are a contractual or cooperative arrangement between one or more public agencies--federal, state, or local--and private-sector entities, typically of a long-term nature, in which public and private entities collaboratively partner on the components of projects and services, sharing responsibilities to design, construct, finance, manage, operate, and maintain a project, facility, or program. Government agencies throughout the world, including in Hawaii and across the nation, have incorporated business structures that combine public and private endeavors to deliver public services and facilities. The goal of public-private partnerships is to capitalize on the strengths and assets of each sector, public and private, to help deliver a project or service more efficiently and effectively for the benefit of the general public.

Public-private partnerships have been used across the country for various public works projects. In the United States, public-private partnerships are increasingly found in higher education for university projects. Public-private partnership university projects include student housing, physical plant infrastructure, and facility maintenance, in which public-private partnership ventures provide a combination of financing, construction, or on-going maintenance.

"Public-private partnership" is a generic term for a complex business structure. Each public-private partnership can be arranged and structured in a manner specific to a project goal or business objective. Allowing the university of Hawaii to enter into public-private partnerships would benefit the university and its students as well as the State as a whole. The legislature finds that this issue is a matter of statewide concern that falls under its purview pursuant to article X, section 6, of the Hawaii State Constitution.

The purpose of this Act is to allow the university of Hawaii to enter into public-private partnerships and create an office of strategic partnerships and development to specifically coordinate and manage public-private partnerships that would benefit the university of Hawaii. The office of strategic partnerships and development would be placed within the purview of the vice president for budget and finance of the university of Hawaii and would be responsible for coordinating and managing all contracts, proposals, and negotiations associated with the university's public-private partnerships.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . office of strategic partnerships and development

§304A- Office of strategic partnerships and development; established. There is established within the university an office of strategic partnerships and development to:

(1) Advance the mission of and benefit the university; and

(2) Increase economic development in the State through collaboration between the university, government agencies, and non-government entities.

§304A- Duties. (a) The office of strategic partnerships and development shall:

(1) Create a strategic and tactical plan that includes:

(A) Establishment of objectives and goals for the office and criteria to measure achievement of the goals;

(B) Identification of potential public-private partnership projects that meet the office's objectives and goals;

(D) Identification of the necessary financial resources to develop, implement, and maintain the potential public-private partnership projects;

(2) Coordinate collaboration within the university and with other state and county agencies to analyze and develop public-private partnership projects based on the needs and goals of the university and the State, including proposed economic benefits; financial outcomes; social benefits; and contract terms, conditions, obligations, and responsibilities;

(3) Create and maintain a report for each public-private partnership project that analyzes the process and the results, including the following:

(A) Proposed economic benefits;

(B) Financial outcomes;

(D) Contract terms, conditions, obligations, and responsibilities;

(4) Develop, analyze, and evaluate plans for public-private partnership projects, including objectives and criteria to measure the accomplishment of objectives, develop and implement programs through which the objectives are to be attained, and determine financial requirements for public resources based on the needs and goals of the university and the State;

(5) Assist the university in evaluating public-private partnerships and facilitate the timely and effective implementation and completion of project milestones and objectives;

(6) Develop programs to continuously encourage public-private partnership projects that will result in the development of improved infrastructure, services, and programs at the university;

(7) Formulate and assist the university in formulating specific program and project proposals to solicit public-private partnerships; and

(8) Oversee and implement each public-private partnership project.

(b) To enter into a public-private partnership, the office of strategic partnerships and development shall ensure the following conditions are met:

(1) The board of regents has approved any agreement prior to obligating the university or any of its assets as a contribution toward a declared public-private partnership; and

(2) The board of regents has approved any lease of university land to a private entity in accordance with applicable policies of the board of regents."

SECTION 3. Section 304A-105, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board of regents shall have management and control of the general affairs, and exclusive jurisdiction over the internal structure, management, and operation of the university. The board may:

(1) Appoint a treasurer and other officers as it deems necessary;

(2) Authorize any officer, elected or appointed by it, to approve and sign on its behalf any voucher or other document that the board may approve and sign;

(3) Delegate to the president or the president's designee the authority to render the final decision in contested case proceedings subject to chapter 91, as it deems appropriate;

(4) Purchase or otherwise acquire lands, buildings, appliances, and other property for the purposes of the university; [~~and~~]

(5) Delegate to the president and vice president of budget and finance the authority to conduct activities and enter into business relationships as the board deems necessary or appropriate and which the board has determined benefit the university's interests, based on recommendations from the office of strategic partnerships and development, including but not limited to:

(A) Creating nonprofit corporations that benefit the university's interest;

(B) Establishing, subscribing to, and owning stock in business corporations individually or jointly with others; and

(C) Entering into partnerships and other joint venture arrangements, or participating in alliances, purchasing contracts, or other cooperative arrangements, with any public or private entity; provided that any corporation, venture, or relationship entered into under this paragraph benefits the university's interest and does not involve development of land, or activities, within a conservation district; and

[~~(5)~~] (6) Expend any sums of money as, from time to time, may be placed at the disposal of the university from whatever source; provided that notwithstanding any other law to the contrary, all documents regarding expenditures and changes thereto, made by the board shall be disclosed in open meetings for the purpose of public comment; provided further that all expenditure requests, proposals, and any other budgetary documents used by the board at an open meeting shall be made available to the public at least six calendar days before the meeting.

All lands, buildings, appliances, and other property so purchased or acquired shall be and remain the property of the university to be used in perpetuity for the benefit of the university. The board, in accordance with this section and other law, shall manage the inventory, equipment, surplus property, and expenditures of the university and, subject to chapter 91, may adopt rules, further controlling and regulating the same."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 for the hiring of full-time equivalent ( FTE) permanent positions in the university of Hawaii to maintain the staff necessary to develop and manage the office of strategic partnerships and development.

The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on January 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	2172
TWENTY-NINTH LEGISLATURE, 2018		H.D. 2
STATE OF HAWAII