Report Title:

Public Private Partnership; Toll Facilities Revolving Trust Fund

 

Description:

Allows State to enter into agreements with private entities to build, operate, own, or finance transportation facilities including toll highways.  Appropriates $      and $      for FY 2007-2008 and FY 2008-2009, respectively.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

70

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to transportation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

PUBLIC-PRIVATE TRANSPORTATION FACILITIES

     §   -1  Findings.  The legislature finds and declares that there is a public need for rapid construction of safe and efficient transportation facilities for the purpose of travel within the State and that it is in the public's interest to provide for the construction of additional safe, convenient, and economical transportation facilities.

     §   -2  Public-private partnerships; proposals; rules; evaluation; criteria.  (a)  The department of transportation may receive or solicit proposals and, with legislative approval as evidenced by approval of the project in the department's work program, enter into agreements with private entities, or consortia thereof, for the building, operation, ownership, or financing of transportation facilities.  The department may advance projects already scheduled and appropriated for, using funds provided by public-private partnerships or private entities to be reimbursed from department funds for the project.

     (b)  The department shall by rule adopted pursuant to chapter 91, establish an application fee for the submission of proposals under this section.  The fee shall be sufficient to pay the costs of evaluating the proposals.  The department may engage the services of private consultants to assist in the evaluation.  Before approval, the department shall determine that the proposed project:

     (1)  Is in the public's best interest;

     (2)  Would not require state funds to be used unless the project is on the state highway system; and

     (3)  Would have adequate safeguards in place to ensure that no additional costs or service disruptions would be realized by the traveling public and residents of the State in the event of default or cancellation of the agreement by the department.

     (c)  The department shall ensure that all reasonable costs to the State, related to transportation facilities that are not part of the state highway system, are borne by the private entity.  The department shall also ensure that all reasonable costs to the State and substantially affected county governments and utilities, related to the private transportation facility, are borne by the private entity for transportation facilities that are owned by private entities.  For projects on the state highway system, the department may use state resources to participate in funding and financing the project as provided for under the department's authority.

     §   -3  Toll highways.  Agreements entered into pursuant to this chapter may authorize the private entity to impose tolls or fares for the use of the facility.  However, the amount and use of toll or fare revenues shall be regulated by the department to avoid unreasonable costs to users of the facility.

     §   -4  Compliance.  Each private transportation facility constructed pursuant to this chapter shall comply with all requirements of:

     (1)  Federal, state, and county laws, rules, and regulations;

     (2)  State, regional, and county comprehensive plans;

     (3)  Department rules, policies, procedures, and standards for transportation facilities; and

     (4)  Any other conditions that the department determines to be in the public's best interest.

     §   -5  Eminent domain.  The department may exercise any power possessed by it, including the power of eminent domain, with respect to the development and construction of state transportation projects to facilitate the development and construction of transportation projects pursuant to this chapter.  The department may provide services to the private entity.  Agreements for maintenance, law enforcement, and other services entered into pursuant to this chapter shall provide for full reimbursement for services rendered for projects not on the state highway system.

     §   -6  Noninterference.  Except as provided in this chapter, this chapter is not intended to amend existing laws by granting additional powers to, or further restricting, county governmental entities from regulating and entering into cooperative arrangements with the private sector for the planning, construction, and operation of transportation facilities.

     §   -7  Request for proposals; notice.  (a)  The department may request proposals from private entities for public-private transportation projects or, if the department receives an unsolicited proposal, the department shall publish a notice in a newspaper of general circulation at least once a week for two weeks stating that the department has received the proposal and will accept, for sixty days after the initial date of publication, other proposals for the same project purpose.  A copy of the notice shall be mailed to each county government in the affected area.

     (b)  After the public notification period has expired, the department shall rank the proposals in order of preference.  In ranking the proposals, the department may consider factors, including, but not limited to:

     (1)  Professional qualifications;

     (2)  General business terms;

     (3)  Innovative engineering or cost-reduction terms;

     (4)  Finance plans; and

     (5)  The need for state funds to deliver the project.

     (c)  If the department is not satisfied with the results of the negotiations, the department, at its sole discretion, may terminate negotiations with the proposer.  If these negotiations are unsuccessful, the department may proceed to the second-ranked and lower-ranked firms, in order, using this same procedure.  If only one proposal is received, the department may negotiate in good faith and, if the department is not satisfied with the results of the negotiations, the department, at its sole discretion, may terminate negotiations with the proposer.  Notwithstanding this subsection, the department, at its discretion, may reject all proposals at any point in the process up to completion of a contract with the proposer.

     §   -8  Toll facilities revolving trust fund; advances to counties.  (a)  The toll facilities revolving trust fund is established within the state treasury for the purpose of encouraging the development and enhancing the financial feasibility of revenue-producing road projects undertaken by county governmental entities in a county.

     (b)  The department of transportation is authorized to advance funds for preliminary engineering, traffic and revenue studies, environmental impact studies, financial advisory services, engineering design, right-of-way map preparation, other appropriate project-related professional services, and advance right-of-way acquisition to counties or other governmental entities that desire to undertake revenue-producing road projects.

     (c)  No funds shall be advanced pursuant to this section unless the following is documented to the department:

     (1)  The proposed facility is consistent with the adopted transportation plan of the appropriate metropolitan planning organization; and

     (2)  A proposed two-year budget detailing the use of the cash advance and a project schedule consistent with the budget.

     (d)  Prior to receiving any moneys for advance right-of-way acquisition, it shall be shown that the right-of-way will substantially appreciate prior to construction and that savings will result from its advance purchase.  Any request for moneys for advance right-of-way acquisition shall be accompanied by a preliminary engineering study, environmental impact study, traffic and revenue study, and right-of-way maps along with a negotiated contract for purchase of the right-of-way, which shall include a clause stating that it is subject to funding by the department or the legislature, or an appraisal of the subject property for purpose of condemnation proceedings.

     (e)  Each advance pursuant to this section shall require repayment out of the initial bond issue revenue or, at the discretion of the department, repayment shall begin no later than seven years after the date of the advance; provided repayment shall be completed no later than twelve years after the date of the advance.  However, the election for later repayment shall be made at the time of the initial bond issue, and, if repayment is to be made during the time period referred to above, a schedule of the repayment shall be submitted to the department.

     (f)  No amount in excess of $1,500,000 annually shall be advanced pursuant to this section without specific appropriation by the legislature.

     (g)  Funds may not be advanced for funding final design costs beyond sixty per cent completion until an acceptable plan to finance all project costs, including the reimbursement of outstanding trust fund advances, is approved by the department.

     (h)  The department may advance funds sufficient to defray shortages in toll revenues of facilities receiving funds pursuant to this section for the first five years of operation, up to a maximum of $5,000,000 per year, to be reimbursed to the toll facilities revolving trust fund within five years of the last advance hereunder.  Any advance under this subsection shall require specific appropriation by the legislature.

     (i)  No county or other local governmental entity shall be eligible to receive any advance under this section if the county or other local governmental entity has failed to repay any previous advances as required by law or by agreement with the department.

     (j)  Repayment of funds advanced shall not include interest.  However, interest accruing to county governmental entities from the investment of advances shall be paid to the department.

     (k)  Any repayment of prior or future advances made from the state highway fund that are used to fund any project phase of a toll facility shall be deposited in the toll facilities revolving trust fund.

     (l)  The department shall adopt rules pursuant to chapter 91, necessary for the implementation of this section, including rules for project selection and funding.

     §   -9  Toll facilities revolving trust fund; loans to private entities; eligibility.  The department may lend funds from the toll facilities revolving trust fund to private entities that construct projects on the state highway system containing toll facilities that are approved under this chapter.  To be eligible, a private entity shall comply with section    -8 and shall provide an indication from a nationally recognized rating agency that the senior bonds for the project will be investment grade, or shall provide credit support such as a letter of credit or other means acceptable to the department, to ensure that the loans will be fully repaid.

     §   -10  Fines; toll evaders.  The department shall adopt rules in accordance with chapter 91 to establish fines for any motorist who violates this chapter by evading the payment of an appropriate levied toll on any toll highway built, operated, owned, or financed under this chapter."

     SECTION 2.  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 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for deposit into the toll facilities revolving trust fund.

     The appropriated amounts shall be expended by the department of transportation.

     SECTION 3.  This Act shall take effect on July 1, 2007.

 

INTRODUCED BY:

_____________________________