Bill > HB2127

This bill establishes the Public-Private Finance Initiative (PPFI), a new agency designed to leverage private sector expertise and funding to address Hawaii's infrastructure and service needs during challenging economic times. The PPFI will identify suitable projects, conduct analyses, and enter into "public-private partnership agreements," which are binding contracts between government entities and private companies to finance, design, and construct or maintain public facilities. The initiative will be overseen by a board with representatives from key state departments and legislative appointees, and it will have the power to enter into various contracts and agreements to manage projects. A key aspect of these partnerships is a long-term lease where a private developer finances and builds a facility, recouping costs through lease payments from the government, with the incentive for the developer to ensure quality and long-term maintenance to benefit the government, which will eventually own the property. The bill mandates that the PPFI initiate a pilot project on specific state lands in Wahiawa, city and county of Honolulu, and requires detailed reporting on its progress and evaluation upon completion. Importantly, the PPFI is restricted to planning and implementing only this pilot project and any related agreements until further legislative action. The bill also appropriates an unspecified amount of funds for the establishment and operation of the PPFI, including funding for three staff positions, for the fiscal year 2014-2015. The bill is set to take effect on January 20, 2050, but will be repealed on July 1, 2018, creating a temporal paradox.