HB 497

1
A bill to be entitled
2An act relating to transportation facilities; amending s.
3334.30, F.S.; revising criteria for evaluation by the
4Department of Transportation of certain public-private
5project proposals; providing that a determination that a
6project is in the public's best interest be evidenced by a
7business case prepared under specified provisions and
8submitted to the Council on Efficient Government; deleting
9a provision authorizing the department to lease existing
10toll facilities through public-private partnerships;
11providing an effective date.
12
13Be It Enacted by the Legislature of the State of Florida:
14
15     Section 1.  Paragraph (a) of subsection (1) and subsection
16(2) of section 334.30, Florida Statutes, are amended to read:
17     334.30  Public-private transportation facilities.-The
18Legislature finds and declares that there is a public need for
19the rapid construction of safe and efficient transportation
20facilities for the purpose of traveling within the state, and
21that it is in the public's interest to provide for the
22construction of additional safe, convenient, and economical
23transportation facilities.
24     (1)  The department may receive or solicit proposals and,
25with legislative approval as evidenced by approval of the
26project in the department's work program, enter into agreements
27with private entities, or consortia thereof, for the building,
28operation, ownership, or financing of transportation facilities.
29The department may advance projects programmed in the adopted 5-
30year work program or projects increasing transportation capacity
31and greater than $500 million in the 10-year Strategic
32Intermodal Plan using funds provided by public-private
33partnerships or private entities to be reimbursed from
34department funds for the project as programmed in the adopted
35work program. The department shall by rule establish an
36application fee for the submission of unsolicited proposals
37under this section. The fee must be sufficient to pay the costs
38of evaluating the proposals. The department may engage the
39services of private consultants to assist in the evaluation.
40Before approval, the department must determine that the proposed
41project:
42     (a)  Is in the public's best interest as evidenced by a
43business case prepared under s. 287.0574 and submitted to the
44Council on Efficient Government;
45
46The department shall ensure that all reasonable costs to the
47state, related to transportation facilities that are not part of
48the State Highway System, are borne by the private entity. The
49department shall also ensure that all reasonable costs to the
50state and substantially affected local governments and
51utilities, related to the private transportation facility, are
52borne by the private entity for transportation facilities that
53are owned by private entities. For projects on the State Highway
54System, the department may use state resources to participate in
55funding and financing the project as provided for under the
56department's enabling legislation. Because the Legislature
57recognizes that private entities or consortia thereof would
58perform a governmental or public purpose or function when they
59enter into agreements with the department to design, build,
60operate, own, or finance transportation facilities, the
61transportation facilities, including leasehold interests
62thereof, are exempt from ad valorem taxes as provided in chapter
63196 to the extent property is owned by the state or other
64government entity, and from intangible taxes as provided in
65chapter 199 and special assessments of the state, any city,
66town, county, special district, political subdivision of the
67state, or any other governmental entity. The private entities or
68consortia thereof are exempt from tax imposed by chapter 201 on
69all documents or obligations to pay money which arise out of the
70agreements to design, build, operate, own, lease, or finance
71transportation facilities. Any private entities or consortia
72thereof must pay any applicable corporate taxes as provided in
73chapters 220 and 221, and unemployment compensation taxes as
74provided in chapter 443, and sales and use tax as provided in
75chapter 212 shall be applicable. The private entities or
76consortia thereof must also register and collect the tax imposed
77by chapter 212 on all their direct sales and leases that are
78subject to tax under chapter 212. The agreement between the
79private entity or consortia thereof and the department
80establishing a transportation facility under this chapter
81constitutes documentation sufficient to claim any exemption
82under this section.
83     (2)  Agreements entered into pursuant to this section may
84authorize the private entity to impose tolls or fares for the
85use of the facility. The following provisions shall apply to
86such agreements:
87     (a)  With the exception of the Florida Turnpike System, the
88department may lease existing toll facilities through public-
89private partnerships. The public-private partnership agreement
90must ensure that the transportation facility is properly
91operated, maintained, and renewed in accordance with department
92standards.
93     (a)(b)  The department may develop new toll facilities or
94increase capacity on existing toll facilities through public-
95private partnerships. The public-private partnership agreement
96must ensure that the toll facility is properly operated,
97maintained, and renewed in accordance with department standards.
98     (b)(c)  Any toll revenues shall be regulated by the
99department pursuant to s. 338.165(3). The regulations governing
100the future increase of toll or fare revenues shall be included
101in the public-private partnership agreement.
102     (c)(d)  The department shall provide the analysis required
103in subparagraph (6)(e)2. to the Legislative Budget Commission
104created pursuant to s. 11.90 for review and approval prior to
105awarding a contract on a lease of an existing toll facility.
106     (d)(e)  The department shall include provisions in the
107public-private partnership agreement that ensure a negotiated
108portion of revenues from tolled or fare generating projects are
109returned to the department over the life of the public-private
110partnership agreement. In the case of a lease of an existing
111toll facility, the department shall receive a portion of funds
112upon closing on the agreements and shall also include provisions
113in the agreement to receive payment of a portion of excess
114revenues over the life of the public-private partnership.
115     (e)(f)  The private entity shall provide an investment
116grade traffic and revenue study prepared by an internationally
117recognized traffic and revenue expert that is accepted by the
118national bond rating agencies. The private entity shall also
119provide a finance plan that identifies the project cost,
120revenues by source, financing, major assumptions, internal rate
121of return on private investments, and whether any government
122funds are assumed to deliver a cost-feasible project, and a
123total cash flow analysis beginning with implementation of the
124project and extending for the term of the agreement.
125     Section 2.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.