AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES (Defines public-private partnerships and provides the framework to encourage the use of public-private partnerships for proposals for state purchases.)

S2822

2026 -- S 2822
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LC004964
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

Introduced By:
Senators Burke, Felag, Tikoian, and Patalano

Date Introduced:
March 04, 2026

Referred To:
Senate Finance
(Dept. of Administration)
It is enacted by the General Assembly as follows:
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SECTION 1. Section 37-2-31 of the General Laws in Chapter 37-2 entitled "State
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Purchases" is hereby amended to read as follows:
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37-2-31. Use of other types of contracts.
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(a) Definitions:
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(1) “Private partner” means any non-governmental entity that is a party in a public-private
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partnership with a state agency.
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(2) “Project labor agreement” means a prehire collective bargaining agreement between an
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owner and labor unions involving a specific construction project.
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(3) “Public-private partnership agreement” means a long-term contract between the state
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and a private partner that develops, finances, constructs, operates, or maintains a state-owned
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physical asset or property in which the private party bears significant risk over the long term.
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(4) “Risk” means financial, operational, or legal uncertainty associated with the private
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partner’s participation.
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(5) "State" means and refers to the definition in § 37-2-7.
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(6) “Value for money” means the analysis used to compare the financial impacts to the
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agency of use of a public-private partnership delivery method against other delivery methods. This
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process looks to determine the ideal delivery method when considering cost, quality, time, and
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performance.
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(b)
Subject to the limitations of §§ 37-2-29 and 37-2-30, any type of contract which will

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promote the best interests of the state may be used
, including public-private partnership agreements
.
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(c) On or before July 1, 2027, the chief purchasing officer within the department of
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administration shall promulgate rules for a state agency to evaluate, solicit, or enter into a public-
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private partnership agreement. The rules shall reflect the intent to promote and encourage the use
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of public-private partnerships in the state. The chief purchasing officer shall consult with design-
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builders, progressive design-builders, construction managers, other contractors and design
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professionals, including engineers and architects, labor organizations, and other appropriate
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professionals during the development of the rules.
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(d) A state agency utilizing a public-private partnership shall continue to be responsible for
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oversight of any function that is delegated to or otherwise performed by a private partner. State
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contracts using this method shall be awarded by a competitive procurement following the
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provisions of chapter 2 of title 37 ("state purchases").
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(e) Any request for proposals for a contract utilizing a public-private partnership shall
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include at a minimum:
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(1) The parameters of the proposed public-private partnership agreement;
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(2) The duties and responsibilities to be performed by the private partner or private
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partners;
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(3) The methods of oversight to be employed by the contracting agency;
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(4) The duties and responsibilities that are to be performed by the contracting agency and
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any other parties to the contract;
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(5) The evaluation factors and the relative weight of each factor to be used in the scoring
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of awards;
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(6) An evaluation for the value for money conducted by a subject matter expert engaged
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by the contracting agency that opines on whether the public-private partnership constitutes fair
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value for the state;
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(7) Plans for financing and operating the project and the revenues, service payments, bond
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financings, and appropriations of public funds needed for the qualifying project and the value for
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money analysis;
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(8) Comprehensive documentation of the experience, capabilities, capitalization and
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financial condition, and other relevant qualifications of the private entity submitting the proposal;
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(9) All contracts for public-private partnerships must adhere to chapter 13 of title 37 (“labor
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and payment of debts by contractors”), which requires all relevant contractors and subcontractors
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performing work on the public-private partnership to pay their employees, as defined in § 37-13-
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7(c), prevailing wages;

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(10) All contracts for public-private partnership must also adhere to § 37-2-59 and other
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requirements of contracting for construction projects when state funds are being deployed;
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(11) For all public-private partnership agreements over twenty-five million dollars
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($25,000,000), the awarding authority under this chapter shall conduct an objective, reasoned study,
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using established reviewable criteria, to determine whether to utilize a project labor agreement;
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(12) The private partner's plans for labor harmony pursuant to § 37-13-2 for the entire term
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of the agreement, including construction, reconstruction and capital and routine maintenance; and
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remedies for any failure to maintain labor harmony; and
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(13) Other information required by the contracting agency to evaluate the proposals
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submitted and the overall proposed public-private partnership.
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(f) A private entity desiring to be a private partner shall demonstrate to the satisfaction of
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the contracting agency that it is capable of performing any duty, responsibility, or function it may
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be authorized or directed to perform as a term or condition of the public-private partnership
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agreement.
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(g) Notwithstanding any general or special law to the contrary, prior to the award of any
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pending/all public private partnership agreement(s), whereby any/all state or quasi-public
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employees, represented by a bargaining unit may be displaced, the provisions of chapter 148 of
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title 42 (“privatization of state services”), and chapter 149 of title 42 (“state expenditures for non-
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state employee services”), in addition to any/all provisions contained in an applicable collective
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bargaining agreement shall apply.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES
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This act would define public-private partnerships and provide the framework to encourage
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the use of public-private partnerships for proposals for state purchases.
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This act would take effect upon passage.
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LC004964
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