House Bill 1965

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    Florida House of Representatives - 2000                HB 1965

        By the Committee on Transportation and Representatives K.
    Smith, Murman, Bense, Chestnut, Harrington, Healey, Posey and
    Trovillion




  1                      A bill to be entitled

  2         An act relating to innovative transportation

  3         financing; creating s. 339.55, F.S.; providing

  4         for the creation of a state-funded

  5         infrastructure bank within the Department of

  6         Transportation; providing for project

  7         eligibility; providing project evaluation

  8         criteria; requiring loans to be included in the

  9         department's work program; creating s. 339.137,

10         F.S.; providing for the creation of an enhanced

11         transportation program dedicated to funding

12         transportation projects that improve the

13         state's economic growth and competitiveness;

14         providing definitions; providing for eligible

15         projects; creating the Transportation and

16         Economic Development Advisory Council;

17         providing limitations and funding; providing

18         appropriations; directing the Department of

19         Transportation to allocate certain funds to

20         implement the Mobility 2000 initiative;

21         eliminating certain service charges; reducing

22         certain service charges; amending s. 320.072,

23         F.S.; revising language with respect to an

24         additional fee imposed on motor vehicles;

25         repealing s. 288.063, F.S., relating to certain

26         contracts for transportation projects; amending

27         ss. 14.2015, 288.0656, and 339.08, F.S.;

28         correcting a cross reference, to conform;

29         directing the Department of Transportation to

30         prepare a tentative work program for the period

31         of 2000-2001 through 2004-2005 that implements

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  1         the provisions of the act; providing an

  2         effective date.

  3

  4  Be It Enacted by the Legislature of the State of Florida:

  5

  6         Section 1.  Section 339.55, Florida Statutes, is

  7  created to read:

  8         339.55  State-funded infrastructure bank.--

  9         (1)  There is created within the Department of

10  Transportation a state-funded infrastructure bank for the

11  purpose of providing loans and credit enhancements to

12  government units and private entities for use in constructing

13  and improving highway and transportation facilities necessary

14  for public purposes.

15         (2)  The bank may lend capital costs or provide credit

16  enhancements for a transportation project that is in the State

17  Highway System or that is demonstrated to relieve traffic

18  congestion on the State Highway System. Loans from the bank

19  may be subordinated to senior project debt that has an

20  investment grade rating of "BBB" or higher.

21         (3)  Loans from the bank may bear interest at or below

22  market interest rates, as determined by the department.

23  Repayment of any loan from the bank shall commence not later

24  than 5 years after the project has been completed or, in the

25  case of a highway project, the facility has opened to traffic,

26  whichever is later, and shall be repaid in no more than 30

27  years.

28         (4)  To be eligible for consideration, projects must be

29  consistent, to the maximum extent feasible, with local

30  metropolitan planning organization plans and local government

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  1  comprehensive plans and must provide a dedicated repayment

  2  source to ensure the loan is repaid to the bank.

  3         (5)  The department may consider, but is not limited

  4  to, the following criteria for evaluation of projects for

  5  assistance from the bank:

  6         (a)  The credit worthiness of the project.

  7         (b)  A demonstration that the project will encourage,

  8  enhance, or create economic benefits.

  9         (c)  The likelihood that assistance would enable the

10  project to proceed at an earlier date than would otherwise be

11  possible.

12         (d)  The extent to which assistance would foster

13  innovative public-private partnerships and attract private

14  debt or equity investment.

15         (e)  The extent to which the project would use new

16  technologies, including intelligent transportation systems,

17  that would enhance the efficient operation of the project.

18         (f)  The extent to which the project would maintain or

19  protect the environment.

20         (g)  A demonstration that the project includes

21  transportation benefits for improving intermodalism and

22  safety.

23         (h)  The amount of the proposed assistance as a

24  percentage of the overall project costs with emphasis on local

25  and private participation.

26         (6)  Loan assistance provided by the bank shall be

27  included in the department's work program developed in

28  accordance with s. 339.135.

29         (7)  The department is authorized to adopt rules to

30  implement the state-funded infrastructure bank.

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  1         Section 2.  Section 339.137, Florida Statutes, is

  2  created to read:

  3         339.137  Enhanced transportation program supporting

  4  economic development; administration; definitions; eligible

  5  projects; Transportation and Economic Development Advisory

  6  Council created; limitations; funding.--

  7         (1)  There is created within the Department of

  8  Transportation an enhanced transportation program dedicated to

  9  funding transportation projects that improve the state's

10  economic growth and competitiveness. The department shall

11  administer the program.

12         (2)  For purposes of this section, the following words

13  and phrases shall have the following meanings:

14         (a)  The term "economic development" means economic

15  activities which result in development or retention of income

16  generative industries which raise the per capita earned income

17  of the state.

18         (b)  The term "regionally significant transportation

19  project of critical concern" means a roadway improvement

20  located in one county which provides significant enhancement

21  of economic development opportunities in an adjoining county

22  or counties and which provides improvements to a hurricane

23  evacuation route.

24         (3)  Eligible projects include those for planning,

25  designing, acquiring rights-of-way for, or constructing the

26  following:

27         (a)  Major highway improvements:

28         1.  Florida Intrastate Highway System.

29         2.  Feeder roads which provide linkages to major

30  highways.

31         3.  Bridges of regional significance.

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  1         4.  Trade and economic development corridors.

  2         5.  Access projects for freight and passengers.

  3         6.  Hurricane evacuation routes.

  4         (b)  Major public transportation projects:

  5         1.  Seaport projects which improve international cargo

  6  and passenger movements.

  7         2.  Aviation projects for airports with the largest

  8  number of passenger enplanements and the most cargo activity.

  9         3.  Transit projects which improve mobility on

10  interstate highways and regional travel.

11         4.  Rail projects that facilitate the movement of

12  passengers and cargo.

13         (4)  Economic growth projects may be proposed by any

14  local government, regional organization, economic development

15  board, public or private partnership, metropolitan planning

16  organization, state agency, or other statewide group engaged

17  in economic development activities.

18         (5)  Transportation funding under this section shall

19  target proposed projects using the following mechanisms:

20         (a)  Economic development-related transportation

21  projects can compete for funding under the program. Projects

22  funded under this program should have a significant congestion

23  relief benefit. Projects which have local or private financial

24  partners or which enhance hurricane evacuation may be given

25  relative priority over other projects.

26         (b)  Establishment of a funding allocation under this

27  program reserved to quickly respond to transportation needs of

28  emergent economic development projects that may be outside of

29  the routine project selection process. This funding may be

30  used to match local or private contributions for

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  1  transportation projects which meet the definition of economic

  2  development contained in this section.

  3         (c)  Establish innovative financing methods to enable

  4  the state to respond in a timely manner to major or emergent

  5  economic development-related transportation needs that require

  6  timely commitments. These innovative financing methods

  7  include, but are not limited to, the state infrastructure

  8  bank, state bonds for right-of-way acquisition and bridge

  9  construction, state bonds for fixed guideway transportation

10  systems, state bonds for federal aid highway construction,

11  funds previously programmed by the department for high-speed

12  rail development, and any other local, state, or federal funds

13  made available to the department.

14         (6)  To be eligible for funding under the program,

15  projects must meet the following minimum criteria:

16         (a)  The project or project phase selected can be made

17  production-ready within a 5-year period following the end of

18  the current fiscal year.

19         (b)  The project is listed in an outer year of the

20  5-year work program and can be made production-ready and

21  advanced to an earlier year of the 5-year work program.

22         (c)  The project is consistent with a current

23  transportation system plan including, but not limited to, the

24  Florida Intrastate Highway System, aviation, intermodal/rail,

25  seaport, or transit system plans.

26         (d)  The project is not inconsistent with an approved

27  local comprehensive plan of any local government within whose

28  boundaries the project is located in whole or in part or, if

29  inconsistent, is accompanied by an explanation of why the

30  project should be undertaken.

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  1         (e)  One or more of the minimum criteria listed in

  2  paragraphs (a) through (d) may be waived for a regionally

  3  significant transportation project of critical concern.

  4         (7)  The Transportation and Economic Development

  5  Advisory Council is created to annually make recommendations

  6  to the Legislature on prioritization and selection of economic

  7  growth projects as provided in this section.

  8         (a)  The council shall consist of:

  9         1.  Two representatives chosen by the Speaker of the

10  House of Representatives.

11         2.  Two representatives chosen by the President of the

12  Senate.

13         3.  Two representatives chosen by the Governor.

14         (b)  Terms for council members shall be 2 years, and

15  each member shall be allowed one vote.

16         (c)  Initial appointments must be made no later than 60

17  days after this act takes effect. Vacancies in the council

18  shall be filled in the same manner as the original

19  appointment.

20         (d)  The council shall hold its initial meeting no

21  later than 30 days after the members have been appointed in

22  order to organize and select a chair and vice chair from the

23  council membership. Meetings shall be held upon the call of

24  the chair, but not less frequently than quarterly.

25         (e)  The members of the council shall serve without

26  compensation but shall be reimbursed for per diem and travel

27  expenses as provided in s. 112.061. The department shall

28  provide administrative staff support and travel and per diem

29  expenses for the council.

30         (8)  Because transportation investment plays a key role

31  in economic development, the council and the department shall

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  1  actively participate in state and local economic development

  2  programs, including:

  3         (a)  Working in partnership with other state and local

  4  agencies in business recruitment, expansion, and retention

  5  activities to ensure early transportation input into the

  6  process.

  7         (b)  Providing expertise and rapid response in

  8  analyzing the transportation needs of emergent economic

  9  development projects.

10         (c)  Investing in state transportation projects that

11  truly support economic development as measured through

12  increasing state personal earned income.

13         (9)  The council shall review and prioritize projects

14  submitted for funding under the program and shall recommend to

15  the Legislature an enhanced transportation program. The

16  department shall provide technical expertise and support as

17  requested by the council, and shall develop financial plans,

18  cash forecast plans, and program and resource plans necessary

19  to implement the enhanced program. These supporting documents

20  shall be submitted with the enhanced transportation program.

21         (10)  Projects recommended for funding under the

22  enhanced transportation program shall be submitted to the

23  Governor and the Legislature with the department's tentative

24  work program.  Final approval of the enhanced transportation

25  program shall be made by the Legislature through the General

26  Appropriations Act. Program projects approved by the

27  Legislature must be included in the department's adopted work

28  program.

29         (11)  For purposes of funding projects under the

30  program, the department shall allocate in its program and

31  resource plan a minimum of $150 million each year for an

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  1  enhanced transportation program.  This funding is to be

  2  reserved for projects to be funded under the enhanced

  3  transportation program and may not be used to fund projects

  4  identified in the tentative work program.

  5         (12)  The department is authorized to adopt rules to

  6  implement the enhanced transportation program supporting

  7  economic development.

  8         Section 3.  In fiscal year 2000-2001 and fiscal year

  9  2001-2002, $150 million shall be transferred each year from

10  nonrecurring General Revenue to the State Transportation Trust

11  Fund for the enhanced transportation program created in s.

12  339.137, Florida Statutes. This amount is in addition to the

13  $150 million minimum funding required to be allocated annually

14  to the enhanced transportation program pursuant to s.

15  339.137(11), Florida Statutes.

16         Section 4.  During fiscal year 2000-2001 through fiscal

17  year 2009-2010 the Department of Transportation shall allocate

18  sufficient funds to implement the Mobility 2000 (Building

19  Roads for the 21st Century) initiative. The department shall

20  develop a plan to expend these revenues and submit a work

21  program amendment and budget amendment pursuant to s.

22  339.135(7), Florida Statutes, reflecting the budget authority

23  needed to implement the Mobility 2000 initiative. Funds will

24  be used for corridors that link Florida's economic regions to

25  seaports, international airports, and markets to provide

26  connections through major gateways, improved mobility in major

27  urbanized areas, and access routes for emergency evacuation to

28  coastal communities based on analysis of current and projected

29  traffic conditions.

30         Section 5.  Notwithstanding the provisions of s.

31  215.20(1), Florida Statutes, the service charge provided in

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  1  said section which is deducted from the proceeds of the taxes

  2  distributed under ss. 206.606, 206.608, 206.9845, 207.026,

  3  212.0501, 319.32(5), and 320.072(4), Florida Statutes, shall

  4  be eliminated beginning July 1, 2000.

  5         Section 6.  (1)  Notwithstanding the provisions of s.

  6  215.20(1), Florida Statutes, the service charge provided in

  7  said section which is deducted from the proceeds of the local

  8  option fuel tax distributed under s. 336.025, Florida

  9  Statutes, shall be reduced as follows:

10         (a)  For the period of July 1, 2000, through June 30,

11  2001, the rate of the service charge shall be 5.5 percent.

12         (b)  For the period of July 1, 2001, through June 30,

13  2002, the rate of the service charge shall be 4 percent.

14         (c)  For the period of July 1, 2002, through June 30,

15  2003, the rate of the service charge shall be 2.5 percent.

16         (d)  For the period of July 1, 2003, through June 30,

17  2004, the rate of the service charge shall be 1 percent.

18         (2)  Beginning July 1, 2004, and thereafter, no service

19  charge shall be deducted from the proceeds of the local option

20  fuel tax distributed under s. 336.025, Florida Statutes.

21         Section 7.  Subsection (4) of section 320.072, Florida

22  Statutes, is amended to read:

23         320.072  Additional fee imposed on certain motor

24  vehicle registration transactions.--

25         (4)  A tax collector or other duly authorized agent of

26  the department shall promptly remit all moneys collected

27  pursuant to this section, less any refunds granted pursuant to

28  subsection (3), to the department to. The department shall

29  deposit 30 percent of such moneys as they are received into

30  the General Revenue Fund. The remainder of the proceeds, after

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  1  deducting the service charge imposed by s. 215.20, shall be

  2  deposited into the State Transportation Trust Fund.

  3         Section 8.  Section 288.063, Florida Statutes, is

  4  repealed.

  5         Section 9.  Paragraph (f) of subsection (2) of section

  6  14.2015, Florida Statutes, is amended to read:

  7         14.2015  Office of Tourism, Trade, and Economic

  8  Development; creation; powers and duties.--

  9         (2)  The purpose of the Office of Tourism, Trade, and

10  Economic Development is to assist the Governor in working with

11  the Legislature, state agencies, business leaders, and

12  economic development professionals to formulate and implement

13  coherent and consistent policies and strategies designed to

14  provide economic opportunities for all Floridians.  To

15  accomplish such purposes, the Office of Tourism, Trade, and

16  Economic Development shall:

17         (f)1.  Administer the Florida Enterprise Zone Act under

18  ss. 290.001-290.016, the community contribution tax credit

19  program under ss. 220.183 and 624.5105, the tax refund program

20  for qualified target industry businesses under s. 288.106, the

21  tax-refund program for qualified defense contractors under s.

22  288.1045, contracts for transportation projects under s.

23  288.063, the sports franchise facility program under s.

24  288.1162, the professional golf hall of fame facility program

25  under s. 288.1168, the expedited permitting process under s.

26  403.973, the Rural Community Development Revolving Loan Fund

27  under s. 288.065, the Regional Rural Development Grants

28  Program under s. 288.018, the Certified Capital Company Act

29  under s. 288.99, the Florida State Rural Development Council,

30  the Rural Economic Development Initiative, and other programs

31  that are specifically assigned to the office by law, by the

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  1  appropriations process, or by the Governor. Notwithstanding

  2  any other provisions of law, the office may expend interest

  3  earned from the investment of program funds deposited in the

  4  Economic Development Trust Fund, the Grants and Donations

  5  Trust Fund, the Brownfield Property Ownership Clearance

  6  Assistance Revolving Loan Trust Fund, and the Economic

  7  Development Transportation Trust Fund to contract for the

  8  administration of the programs, or portions of the programs,

  9  enumerated in this paragraph or assigned to the office by law,

10  by the appropriations process, or by the Governor. Such

11  expenditures shall be subject to review under chapter 216.

12         2.  The office may enter into contracts in connection

13  with the fulfillment of its duties concerning the Florida

14  First Business Bond Pool under chapter 159, tax incentives

15  under chapters 212 and 220, tax incentives under the Certified

16  Capital Company Act in chapter 288, foreign offices under

17  chapter 288, the Enterprise Zone program under chapter 290,

18  the Seaport Employment Training program under chapter 311, the

19  Florida Professional Sports Team License Plates under chapter

20  320, Spaceport Florida under chapter 331, Expedited Permitting

21  under chapter 403, and in carrying out other functions that

22  are specifically assigned to the office by law, by the

23  appropriations process, or by the Governor.

24         Section 10.  Subsection (7) of section 288.0656,

25  Florida Statutes, is amended to read:

26         288.0656  Rural Economic Development Initiative.--

27         (7)  REDI may recommend to the Governor up to three

28  rural areas of critical economic concern. A rural area of

29  critical economic concern must be a rural community, or a

30  region composed of such, that has been adversely affected by

31  an extraordinary economic event or a natural disaster or that

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  1  presents a unique economic development opportunity of regional

  2  impact that will create more than 1,000 jobs over a 5-year

  3  period. The Governor may by executive order designate up to

  4  three rural areas of critical economic concern which will

  5  establish these areas as priority assignments for REDI as well

  6  as to allow the Governor, acting through REDI, to waive

  7  criteria, requirements, or similar provisions of any economic

  8  development incentive. Such incentives shall include, but not

  9  be limited to: the Qualified Target Industry Tax Refund

10  Program under s. 288.106, the Quick Response Training Program

11  under s. 288.047, the WAGES Quick Response Training Program

12  under s. 288.047(10), transportation projects under s.

13  288.063, the brownfield redevelopment bonus refund under s.

14  288.107, and the rural job tax credit program under ss.

15  212.098 and 220.1895. Designation as a rural area of critical

16  economic concern under this subsection shall be contingent

17  upon the execution of a memorandum of agreement among the

18  Office of Tourism, Trade, and Economic Development; the

19  governing body of the county; and the governing bodies of any

20  municipalities to be included within a rural area of critical

21  economic concern. Such agreement shall specify the terms and

22  conditions of the designation, including, but not limited to,

23  the duties and responsibilities of the county and any

24  participating municipalities to take actions designed to

25  facilitate the retention and expansion of existing businesses

26  in the area, as well as the recruitment of new businesses to

27  the area.

28         Section 11.  Paragraph (f) of subsection (2) of section

29  339.08, Florida Statutes, is amended to read:

30         339.08  Use of moneys in State Transportation Trust

31  Fund.--

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  1         (2)  These rules must restrict the use of such moneys

  2  to the following purposes:

  3         (f)  To pay the cost of economic development

  4  transportation projects in accordance with s. 339.137 s.

  5  288.063.

  6         Section 12.  (1)  Notwithstanding the requirements of

  7  ss. 206.46(3), 206.606(2), 339.135, 339.155, and 339.175,

  8  Florida Statutes, the Department of Transportation shall

  9  prepare a tentative work program for the 5-year period

10  2000-2001 through 2004-2005 that implements the provisions of

11  this act, including the implementation of the enhanced

12  transportation program process created in s. 339.137, Florida

13  Statutes. The tentative work program shall be styled as the

14  Transportation Improvement Program for the 21st Century

15  (TIP-21).  To the maximum extent feasible, the TIP-21

16  tentative work program shall be developed with public hearings

17  and review by metropolitan planning organizations, the

18  Department of Community Affairs, and the Florida

19  Transportation Commission. The Secretary of Transportation

20  shall establish timeframes for this expedited work program

21  development process.

22         (2)  Upon completion of the TIP-21 work program

23  development process, the Department of Transportation shall

24  proceed to amend the adopted work program pursuant to s.

25  339.135(7), Florida Statutes, to incorporate the projects

26  identified in the TIP-21 work program.

27         Section 13.  This act shall take effect upon becoming a

28  law.

29

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Creates a state-funded infrastructure bank within the
  4    Department of Transportation to provide loans and credit
      enhancements to governmental units and private entities
  5    for use in constructing and improving highway and
      transportation facilities necessary for public purposes.
  6    Creates, within the department, an enhanced
      transportation program dedicated to funding
  7    transportation projects that improve the state's economic
      growth and competitiveness. See bill for details.
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