Senate Bill 2346c1

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    Florida Senate - 2000                           CS for SB 2346

    By the Committee on Governmental Oversight and Productivity;
    and Senator Silver




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  1                      A bill to be entitled

  2         An act relating to port area improvement;

  3         creating the "Community Improvement Authority

  4         Act"; providing legislative findings and

  5         intent; defining terms; providing for the

  6         creation of community improvement authorities

  7         in eligible counties; providing for the

  8         management of authorities; providing for the

  9         powers of an authority; authorizing the use of

10         bonds to fund projects; providing for a tax

11         exemption on bonds; providing for limitations

12         on damages; providing for awarding contracts

13         for the construction of projects; providing for

14         dissolution of an authority; providing

15         severability; providing for liberal

16         construction; providing an effective date.

17

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

19

20         Section 1.  Short title.--This act may be cited as the

21  "Community Improvement Authority Act."

22         Section 2.  Legislative findings; intent.--

23         (1)  The Legislature finds that certain counties in the

24  state have the need for enhancement of areas surrounding major

25  downtown areas through the improvement of existing facilities

26  and the development of facilities and other attractions,

27  including professional sports facilities, and other related

28  amenities and infrastructure. The Legislature also finds that

29  these projects serve a paramount public purpose and that there

30  is a need to provide a comprehensive method and funding

31  sources for providing for the development and operation of

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  1  facilities and other attractions, including professional

  2  sports facilities, and other related amenities and

  3  infrastructure.

  4         (2)  It is declared to be the intent of the Legislature

  5  to prescribe a uniform procedure for establishing independent

  6  authorities for the purpose of planning, financing,

  7  constructing, renovating, developing, operating and

  8  maintaining facilities and other attractions, including

  9  professional sports facilities and other related amenities and

10  infrastructure within highly populated counties of the state

11  and within counties contiguous therewith.

12         (3)  It is the intent of the Legislature that each

13  authority shall take all steps reasonable, necessary, or

14  advisable to generate local support for the development of

15  projects, including professional sports facilities and related

16  amenities and infrastructure, to serve as an intermediary and

17  facilitate negotiations with and among private interests,

18  community organizations, and governmental authorities in

19  connection with the construction or development of such

20  projects, to explore, research, and analyze financing and

21  related alternatives for the construction or development of

22  such projects, and to present findings and recommendations to

23  the appropriate governmental entities with respect to the

24  construction or development of such projects.

25         (4)  Because the independent authorities so created

26  shall be empowered to exercise certain substantial powers and

27  authority in more than one county, it is declared to be the

28  intent of the Legislature that the Community Improvement

29  Authority Act be construed for all purposes as a general law

30  that relates to more than one county and that the independent

31  authorities so created not be deemed to have jurisdiction

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  1  lying wholly within any one county within the meaning of any

  2  constitutional, statutory, or charter provision.

  3         Section 3.  Definitions.--As used in this act, the

  4  term:

  5         (1)  "Authority" means an authority created under this

  6  act.

  7         (2)  "Board" or "board of supervisors" means the

  8  governing body of an authority.

  9         (3)  "Bond" means any general obligation bond, revenue

10  bond, refunding bond, note, or other debt obligation

11  authorized under this act.

12         (4)  "Department" means the Department of Revenue.

13         (5)  "Eligible county" means any county within the

14  state which simultaneously satisfies the following criteria:

15         (a)  At least two professional sports facilities exist

16  in the county, and

17         (b)  The county has a population of not less than 1.5

18  million according to the most recent annual publication of

19  County Population Estimates of the U.S. Bureau of the Census.

20  Once a governing body has been appointed for an authority in

21  an eligible county, that county is considered an eligible

22  county for all purposes of this act, notwithstanding

23  subsequent reductions in population.

24         (6)  "Professional sports facility" means a ballpark,

25  stadium, arena, coliseum, or similar facility intended for use

26  by a professional sports franchise that exists within the

27  National League or the American League of Major League

28  Baseball, the National Basketball Association, the National

29  Football League, or the National Hockey League.

30         (7)  "Project" means facilities, attractions, and other

31  improvements authorized by this act, including professional

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  1  sports facilities, related amenities and infrastructure, and

  2  systems, facilities, and services determined by an authority

  3  to be beneficial to the development, ownership, and operation

  4  of any of the foregoing, including the acquisition of land and

  5  any interest therein.

  6         (8)  "Refunding bonds" means bonds issued to retire or

  7  refinance outstanding bonds of an authority and the interest

  8  and redemption premium thereon.

  9         (9)  "Revenue bonds" means obligations of an authority

10  or other governmental body which are payable from revenues or

11  other funds derived from sources other than ad valorem taxes

12  on real or tangible personal property.

13         Section 4.  Creation of a community improvement

14  authority; charter.--

15         (1)  A community improvement authority is established

16  within each eligible county with all of the powers, authority,

17  duties, and limitations set forth in this act, including the

18  powers set forth in this act to undertake certain activities

19  in counties contiguous with such eligible county. This act

20  constitutes the charter of each such authority. Each authority

21  shall be designated "     County Community Improvement Trust,"

22  with the blank space being completed by inserting the name of

23  the eligible county in which the authority is located.

24  Notwithstanding the foregoing, in any eligible county in which

25  an independent port district was abolished with support of the

26  majority of electors of that county voting in a referendum

27  held within 10 years immediately preceding the effective date

28  of this act, an authority shall not be established and no

29  authority shall have jurisdiction or exercise any powers

30  within such county without an approving ordinance adopted by

31  such county's governing body.

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  1         (2)  Each authority is a body politic and corporate, a

  2  public instrumentality, and an independent special district

  3  within the meaning of chapter 189, Florida Statutes, the

  4  jurisdiction of which encompasses the applicable eligible

  5  county and each county contiguous therewith, except as

  6  expressly provided herein.

  7         Section 5.  Board of supervisors.--

  8         (1)  A board of supervisors shall govern each

  9  authority.

10         (2)  The board shall be composed of nine members. Not

11  sooner than 60 days after the authority is established, the

12  Governor shall appoint two members to the board; the county

13  commission of the eligible county shall appoint three members

14  to the board; the mayor of the eligible county shall appoint

15  one member to the board; the city commission within which the

16  projects are proposed to be constructed shall appoint two

17  members to the board; and the mayor of such city shall appoint

18  one member to the board. Each appointing authority shall

19  appoint members of the board to succeed those whose terms are

20  expiring not less than 60 days before the expiration of such

21  term. All members of the board must have expertise in one or

22  more of the following areas: public finance, private finance,

23  public accounting, commercial law, commercial real estate,

24  real estate development, general contracting, architecture,

25  and administration of professional sports team operations. A

26  member of the board may not, at the time of appointment, hold

27  an elected public office in the state.

28         (3)  The organizational meeting of the board shall be

29  held within 15 days after the appointment of the board.

30  Appointed members of the board shall hold office for a term of

31  4 years or until their successors take office, except that two

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  1  of the initial members appointed by the Governor and one of

  2  the initial members appointed by the commission of the

  3  eligible county shall be appointed to terms of 3 years.  If

  4  during a member's term of office a vacancy occurs, the

  5  Governor shall fill the vacancy by appointment for the

  6  remainder of the term.

  7         (4)  The members of the board must be residents of the

  8  eligible county in which the authority is located.

  9         (5)  Five members of the board shall constitute a

10  quorum, and the affirmative vote of a majority of the members

11  present and voting is necessary to take any official action.

12         (6)  The members of the board shall serve without

13  compensation but are entitled to reimbursement for travel and

14  per diem expenses in accordance with section 112.061, Florida

15  Statutes.

16         (7)  The board shall at the time of organizing, and

17  annually thereafter, elect a chair for a term of 1 year or

18  until a successor is elected or the chair is removed, with or

19  without cause, by the board. The chair shall preside at all

20  meetings of the board. If the chair is absent or disqualified

21  at any meeting, any member of the board may be designated

22  chair pro-tempore for that meeting.

23         Section 6.  Executive director.--The board may appoint

24  and fix the salary of an executive director to carry out the

25  day-to-day activities of the authority and to administer the

26  policies of the board.

27         Section 7.  Chief financial officer and other officers;

28  financial records; fiscal year.--

29         (1)  The board may appoint and fix the salary of a

30  chief financial officer of the authority, who is responsible

31  for the funds and finances of the authority. Funds may be

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  1  disbursed only at the direction of the board signed by the

  2  persons designated by the board. The board may give the chief

  3  financial officer additional powers and duties.

  4         (2)  The board or the executive director upon authority

  5  delegated by the board may appoint or employ other officers or

  6  employees of the authority and give them appropriate powers

  7  and duties.

  8         (3)  The financial records of the authority shall be

  9  audited by an independent certified public accountant at least

10  once each year.

11         (4)  The fiscal year of the authority begins October 1

12  of each year and ends September 30 of the following year.

13         Section 8.  Budgets.--On or before June 30 of each

14  year, the executive director of the authority shall prepare a

15  proposed budget, including an estimate of all revenues and

16  anticipated expenditures, for the following fiscal year to be

17  submitted to the board for approval or modification. The

18  budget must be adopted before October 1 of each year.

19         Section 9.  Powers and duties.--

20         (1)  Each authority has, and the board may exercise the

21  power to take all steps reasonable, necessary, or advisable to

22  generate local support for the development of projects,

23  including professional sports facilities and related amenities

24  and infrastructure, to serve as an intermediary and facilitate

25  negotiations with and among private interests, community

26  organizations, and governmental authorities in connection with

27  the construction or development of such projects, and to

28  explore, research, and analyze financing and related

29  alternatives for the construction or development of such

30  projects.

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  1         (2)  As appropriate, the authority shall present

  2  findings and make recommendations to the applicable

  3  governmental entity necessary to secure support or action with

  4  respect to such recommendations and to secure sources of

  5  financing and other funding alternatives for the construction

  6  or development of such projects.

  7         (3)  In the event an appropriate governmental

  8  authority, acting upon the recommendations of the authority,

  9  has approved a source or sources of funding to finance the

10  construction or development of a project the board may

11  exercise the power to:

12         (a)  Either alone or in cooperation with the eligible

13  county or other governmental body, finance, refinance,

14  acquire, plan, design, develop, construct, own, lease,

15  operate, maintain, manage, renovate, improve, and promote any

16  project located in the eligible county or any county

17  contiguous therewith consisting of one or more facilities and

18  other attractions and related amenities and infrastructure,

19  including:  professional sports facilities and recreational,

20  commercial, cultural and educational facilities; civic,

21  multi-purpose meeting facilities; and all forms of media

22  communication, transmission, and production systems and

23  facilities.

24         1.  During the 24-month period following establishment

25  of an authority, the only project an authority may initiate is

26  a professional sports facility and related amenities and

27  infrastructure, which initiation must be evidenced by adoption

28  of a resolution setting forth the authority's commitment to

29  initiate and promptly implement a professional sports facility

30  project;

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  1         2.  A professional sports facility may not be

  2  constructed outside the eligible county that is intended to

  3  accommodate regular season games of a professional sports

  4  franchise that exists within the National League or the

  5  American League of Major League Baseball, the National

  6  Basketball Association, the National Football League, or the

  7  National Hockey League; and

  8         3.  No other project may be constructed outside the

  9  eligible county unless the authority and the county in which

10  such facility will be located have entered into an interlocal

11  agreement with respect to such project.

12         (b)  Finance, refinance, acquire, plan, design,

13  develop, construct, own, lease, operate, maintain, manage,

14  renovate, improve, and promote any facilities and

15  infrastructure within the authority's jurisdictional

16  boundaries that are reasonably ancillary, incidental, or

17  supporting of projects, including, but not limited to, roads,

18  bridges, parking, and other transportation facilities.

19         (4)  In addition, the board may exercise the power to:

20         (a)  Provide for the protection of persons using the

21  facilities of the authority by contracting to provide police

22  protection, emergency medical services, and fire protection

23  related to the facilities only with the prior consent of the

24  county or municipality that provides these services at the

25  time of the establishment of the authority.

26         (b)  Sue and be sued in the name of the authority.

27         (c)  Adopt and use a seal and authorize the use of a

28  facsimile thereof.

29         (d)  Make and execute contracts and other instruments

30  necessary or convenient to the exercise of its powers.

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  1         (e)  Employ staff and contract for the services of such

  2  independent consultants, professionals, managers, and

  3  operators as the board finds necessary and convenient.

  4         (f)  Maintain offices as the board finds necessary.

  5         (g)  Adopt procedures for the conduct of the

  6  authority's affairs, the conduct of its business, and the

  7  administration of this act.

  8         (h)  Accept gifts; apply for and use grants or loans of

  9  money or other property from the United States or any

10  department, agency, or unit of local government thereof, the

11  state or any of its subdivisions or agencies, any other state

12  or any subdivision or agency thereof, or any person for

13  authority purposes and enter into any agreements required in

14  connection therewith; and hold, use, and dispose of money or

15  property for any authority purposes in accordance with the

16  terms of the gift, grant, loan, or agreement relating thereto.

17         (i)  Hold, control, and acquire by donation or

18  purchase, and dispose of, any real or personal property, or

19  any estate therein, within or outside the authority's

20  boundaries, for any authority purpose.

21         (j)  Lease as lessor or lessee to or from any person,

22  public or private, any projects of the type that the authority

23  is authorized to undertake and facilities or property of any

24  nature for the use of the authority to carry out any of the

25  purposes authorized by this act.

26         (k)  Borrow money and issue bonds or other evidence of

27  indebtedness as otherwise provided in this act.

28         (l)  Fix, collect, and enforce fees, rates, or other

29  user charges for any service, program, or facility provided by

30  the authority.

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  1         (m)  Cooperate and contract with other governmental

  2  entities and, under an interlocal agreement with such an

  3  entity, undertake any project authorized in this act or that

  4  the contracting governmental entity is authorized to undertake

  5  and that furthers an authority purpose.

  6         (n)  Invest moneys received by the authority as is

  7  permitted by law or as provided in any resolution adopted by

  8  the board.

  9         (o)  Procure necessary insurance or self-insure.

10         (p)  Establish such independent entities or affiliated

11  entities, whether in the form of a not-for-profit corporation

12  or other legal entity, for such purposes as the board

13  considers necessary or appropriate to carry out its projects

14  or to administer projects or funds for the benefit of all or

15  any portion of the eligible county or any county contiguous

16  therewith.

17         (q)  Make grants of authority funds to the eligible

18  county or any county contiguous therewith or to any

19  municipality, or any other governmental unit in any such

20  county if the grant furthers any purpose of the authority.

21         (r)  Exercise all powers necessary, convenient,

22  incidental, or proper in connection with any of the powers,

23  duties, or purposes authorized by this act.

24         Section 10.  Bonds.--

25         (1)  AUTHORIZATION AND FORM OF BONDS.--

26         (a)  The authority may issue and sell bonds for any

27  purpose for which the authority has the power to expend money,

28  including, without limitation, the power to obtain working

29  capital loans to finance the costs of any project and to

30  refund any bonds or other indebtedness at the time outstanding

31  at or before maturity. Bonds may be sold by public or

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  1  negotiated sale after advertisement, if any, as the board

  2  considers advisable.  Bonds may be authorized by resolution of

  3  the board.

  4         (b)  Bonds of the authority may reflect and evidence

  5  any form of financing structure that may become marketable

  6  from time to time, including, but not limited to, taxable or

  7  tax-exempt bonds; bonds that bear current interest, whether

  8  fixed or variable; bonds issued at an original issue discount

  9  or premium; capital appreciation bonds; bonds that are

10  convertible, whether or not at the option of the holder, into

11  a form of bonds differing from that in which they were

12  originally issued; bonds that allow the holder to tender the

13  bonds to the authority or its agent; bonds that are issued

14  with separate call-option rights that may be sold by the

15  authority at the time of issuance of the bonds or thereafter;

16  and bonds of any type issued in connection with interest-rate

17  swaps or other derivative products.  Bonds may be sold in

18  blocks or installments at different times, or an entire issue

19  or series may be sold at the same time.

20         (c)  The board may, by resolution, fix the aggregate

21  maximum amount of bonds to be issued; the purpose or purposes

22  for which the moneys derived therefrom may be expended,

23  including, but not limited to, payment of costs of one or more

24  projects; the rates of interest; the denominations of the

25  bonds; whether or not the bonds are to be issued in one or

26  more series; the dates of maturity, which may not exceed 40

27  years from the respective date of issuance; the medium of

28  payment; the places within or outside the state where payment

29  must be made; registration privileges; redemption terms and

30  privileges, whether with or without premium; the manner of

31  execution; the form of the bonds, including any interest

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  1  coupons to be attached thereto; the manner of execution of

  2  bonds and coupons; and any other terms, covenants, and

  3  conditions thereof and the establishment of revenue or other

  4  funds. The authorizing resolution may further provide for the

  5  contracts authorized by section 159.825(1)(f) and (g), Florida

  6  Statutes, regardless of the tax treatment of the bonds being

  7  authorized. The authorizing resolution may further provide for

  8  an electronic-book-entry system of registration, or for

  9  certificated bonds. The seal of the authority may be affixed,

10  lithographed, engraved, or otherwise reproduced in facsimile

11  on the bonds.

12         (d)  Any issue of bonds may be secured by a trust

13  agreement by and between the authority and corporate trustees,

14  which may be any trust company or bank having the powers of a

15  trust company within or outside the state.  Any provisions

16  regarding the details or terms of any bonds that are required

17  or permitted to be set forth in a resolution of the board may

18  be set forth in a trust agreement with the same effect as if

19  the provisions were set forth in a resolution of the board.

20  The resolution authorizing the issuance of the bonds or the

21  trust agreement may pledge any legally available revenues of

22  the authority, including, without limitation, the proceeds of

23  rental payments received by the authority, and may contain

24  such provisions for protecting and enforcing the rights and

25  remedies of the bondholders as the board approves, including,

26  without limitation, covenants authorized under subsection (4)

27  and covenants setting forth the duties of the authority in

28  relation to the acquisition, construction, reconstruction,

29  improvement, maintenance, repair, operation, and insurance of

30  any projects; the fixing and revising of the rates, fees, and

31  charges; and the custody, safeguarding, and application of all

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  1  moneys, and may contain provisions for the employment of

  2  engineers, accountants and other consultants in connection

  3  with such acquisition, construction, reconstruction,

  4  improvement, maintenance, repair, or operation.  It is lawful

  5  for any bank or trust company within or outside the state to

  6  act as a depository of the proceeds of bonds or of revenues

  7  and to furnish such indemnifying bonds or to pledge such

  8  securities as are required by the authority.  The resolution

  9  or trust agreement may set forth the rights and remedies of

10  the bondholders and of the trustee, if any, and may restrict

11  the individual rights of action by bondholders. The board may

12  provide for the payment of proceeds of the sale of the bonds

13  and the revenues of any project to any officer, board, or

14  depository that it designates for the custody thereof and may

15  provide for the method of disbursement thereof with such

16  safeguards and restrictions as it establishes.  All expenses

17  incurred in carrying out the provisions of the resolution or

18  trust agreement may be treated as part of the cost of a

19  project to which the trust agreement pertains or as part of

20  the cost of the operation of the project.

21         (e)  Bonds may be delivered by the authority as payment

22  of the purchase price of any project or part thereof, or a

23  combination of projects or parts thereof, or as the purchase

24  price or exchange for any property, real, personal, or mixed,

25  including franchises or services rendered by any contractor,

26  engineer, or other person, all at one time or in blocks from

27  time to time, in such manner and upon such terms as the board

28  determines.

29         (f)  Pending the preparation of definitive bonds, the

30  board may issue interim certificates or receipts or temporary

31  notes or bonds, in a form and with such provisions as the

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  1  board establishes, exchangeable for definitive bonds when the

  2  bonds have been executed and are available for delivery.  The

  3  board may also provide for the replacement of any bonds that

  4  become mutilated, lost, or destroyed.

  5         (g)  All bonds issued on behalf of the authority must

  6  state on the face thereof that they are payable, both as to

  7  principal and interest, solely from assets of the authority

  8  pledged therefor and do not constitute an obligation, either

  9  general or special, of the state or of any local government.

10         (2)  NEGOTIABILITY OF BONDS.--Any bond issued under

11  this act or any temporary bond, in the absence of an express

12  recital on the face thereof that it is nonnegotiable, is fully

13  negotiable and constitutes a negotiable instrument within the

14  meaning and for all proposes of the law merchant and the laws

15  of the state.

16         (3)  BONDS AS LEGAL INVESTMENT OR SECURITY.--

17         (a)  Notwithstanding any other law to the contrary, all

18  bonds issued under this act constitute legal investments for

19  savings banks, banks, trust companies, insurance companies,

20  executors, administrators, trustees, guardians, and other

21  fiduciaries and for any board, body, agency, instrumentality,

22  county, municipality, or other political subdivision of the

23  state.

24         (b)  Any bonds issued by the authority are

25  incontestable in the hands of bona fide purchasers or holders

26  for value and are not invalid because of any irregularity or

27  defect in the proceedings for the issue and sale thereof or

28  because of any initiative or referendum taking place after the

29  bonds are issued.

30         (4)  COVENANTS.--Any resolution authorizing the

31  issuance of bonds may contain any covenants the board finds

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  1  advisable.  All the covenants constitute valid and legally

  2  binding and enforceable contracts between the authority and

  3  the bondholders, regardless of the time of issuance thereof.

  4         (5)  ACT FURNISHES FULL AUTHORITY FOR ISSUANCE OF

  5  BONDS.--This act constitutes full authority for the issuance

  6  of bonds and the exercise of the powers of the authority.  No

  7  procedures or proceedings, publications, notices, consents,

  8  approvals, orders, acts, or things by the board, or any board,

  9  officers, commission, department, agency, or instrumentality

10  of the authority, other than those required by this act, are

11  required to perform anything under this act, except that the

12  issuance or sale of bonds under this act must comply with the

13  general-law requirements applicable to the issuance or sale of

14  bonds by the authority, including, but not limited to, section

15  189.4085, Florida Statutes.

16         (6)  PLEDGE BY THE STATE TO THE BONDHOLDERS OF THE

17  AUTHORITY.--The state pledges to the holders of any bonds

18  issued under this act that it will not limit or alter the

19  rights of the authority to own, acquire, construct, or

20  reconstruct, improve, maintain, operate, or furnish the

21  projects provided for in this act or hereafter and to fulfill

22  the terms of any agreement made with the holders of the bonds

23  or other obligations and that it will not in any way impair

24  the rights or remedies of the holders.

25         Section 11.  Tax exemption.--The bonds and other

26  obligations issued under this act, their transfer, and the

27  income therefrom, including any profit made on the sale

28  thereof, and all notes, mortgages, security agreements,

29  letters of credit, or other instruments that arise from or are

30  given to secure the repayment of bonds or other obligations

31  issued under this act, are at all times free from taxation by

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  1  the state or any unit of local government, political

  2  subdivision, or other instrumentality of the state.  For

  3  purposes of excise taxes on documents, the provisions of

  4  section 201.24, Florida Statutes, apply.  The exemption

  5  granted by this section does not apply to any tax imposed by

  6  chapter 220, Florida Statutes, on interest, income, or profits

  7  on debt obligations owned by corporations.

  8         Section 12.  Contracts.--Contracts for the construction

  9  of projects and for any other purpose of the authority may be

10  awarded by the authority in a manner that will best promote

11  free and open competition, including advertisement for

12  competitive bids; however, if the authority determines that

13  the purposes of this act will be more effectively served

14  thereby, the authority may award or cause to be awarded

15  contracts for the construction of any project, including

16  design-build contracts, or any part thereof, or for any other

17  purpose of the authority upon a negotiated basis as determined

18  by the authority.  Each contractor doing business with the

19  authority and required to be licensed by the state or local

20  general-purpose governments must maintain the license during

21  the term of the contract with the authority.  The authority

22  may prescribe bid security requirements and other procedures

23  in connection with the award of contracts which protect the

24  public interest. Section 287.055, Florida Statutes, does not

25  apply to the selection of professional architectural,

26  engineering, landscape architectural, or land surveying

27  services by the authority or to the procurement of

28  design-build contracts.  The authority may, and in the case of

29  a new professional sports franchise must, by written contract

30  engage the services of the operator, lessee, sublessee, or

31  purchaser, or prospective operator, lessee, sublessee or

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  1  purchaser, of any project in the construction of the project

  2  and may, and in the case of a new professional sports

  3  franchise must, provide in the contract that the lessee,

  4  sublessee, purchaser, or prospective lessee, sublessee or

  5  purchaser, may act as an agent of, or an independent

  6  contractor for, the authority for the performance of the

  7  functions described therein, subject to the conditions and

  8  requirements prescribed in the contract, including functions

  9  such as the acquisition of the site and other real property

10  for the project; the preparation of plans, specifications,

11  financing and contract documents; the award of construction

12  and other contracts upon a competitive or negotiated basis;

13  the construction of the project, or any part thereof, directly

14  by the lessee, purchaser, or prospective lessee or purchaser;

15  the inspection and supervision of construction; the employment

16  of engineers, architects, builders, and other contractors; and

17  the provision of money to pay the cost thereof pending

18  reimbursement by the authority.  Any such contract may, and in

19  the case of a new professional sports franchise must, allow

20  the authority to make advances to or reimburse the lessee,

21  sublessee, or purchaser, or prospective lessee, sublessee, or

22  purchaser for its costs incurred in the performance of those

23  functions, and must set forth the supporting documents

24  required to be submitted to the authority and the reviews,

25  examinations, and audits that are required in connection

26  therewith to assure compliance with the contract.

27         Section 13.  Sale or lease of property.--The authority

28  may sell or lease property of the authority or grant operating

29  agreements for any project of the authority in a manner that

30  will best promote free and open competition, including

31  advertisement for competitive bids; however, if the authority

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  1  determines that the purposes of this act will be more

  2  effectively served, the authority may sell or lease property

  3  of the authority upon a negotiated basis or for no or nominal

  4  consideration.  Notwithstanding any other law, the authority

  5  may sell or lease property of the authority in a transaction

  6  in which the authority leases the property back from its

  7  purchaser or lessee. To facilitate the development of a

  8  project by an authority, any governmental entity or other unit

  9  of local government may sell or lease its property to an

10  authority upon a negotiated basis, without competitive bid,

11  and for no or nominal consideration, and an authority may

12  resell or sublease or grant an operating agreement for the

13  property to a professional sports franchise in the same

14  manner.

15         Section 14.  Damages arising out of tort.--Any suit or

16  action brought or maintained against the authority for damages

17  arising out of tort are subject to the limitations provided in

18  section 768.28, Florida Statutes, and any claim must be

19  presented in writing to the board.

20         Section 15.  Dissolution.--

21         (1)  Once an authority has been established its

22  existence is not affected by any subsequent reduction in

23  population in the eligible county. Subject to subsection (2),

24  an authority may be dissolved only by unanimous resolution of

25  the board and approval of the resolution by the Governor or in

26  the manner provided in chapter 189, Florida Statutes;

27  provided, however, that an authority shall be dissolved

28  automatically upon the fifth anniversary of the date it was

29  established in the event that construction has not commenced

30  on any project, including a professional sports facility or

31  other related amenities and infrastructure.

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  1         (2)  A dissolution may not become effective unless

  2  arrangements have been made for the full assumption of all

  3  governmental services then being provided by the authority,

  4  and for the transfer and allocation of revenue, property, and

  5  indebtedness of the authority. If any bonds or other

  6  obligations of the authority are outstanding, any act of the

  7  Legislature dissolving the authority shall set forth the

  8  proposed arrangements under which holders of the outstanding

  9  obligations will be immediately paid or will continue to be

10  paid, which arrangements must be consistent with the terms of

11  the outstanding obligations. Any resolution of the board or

12  legislative act dissolving the authority must specify the

13  effective date of the dissolution. Neither the consent of the

14  eligible county nor the consent of any county contiguous

15  therewith is required to dissolve an authority.

16         Section 16.  Severability.--If any provision of this

17  act or the application thereof to any person or circumstance

18  is held invalid, the invalidity does not affect other

19  provisions or applications of the act which can be given

20  effect without the invalid provision or application, and to

21  this end the provisions of this act are declared severable.

22         Section 17.  Liberal construction.--This act shall be

23  liberally construed to effectively carry out its purposes.

24         Section 18.  This act shall take effect upon becoming a

25  law.

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 2346

  3

  4  Establishes community improvement authorities in each eligible
    county. Provides for appointment of board members by Governor,
  5  county commission, mayor of county, city commission and mayor
    of city.
  6
    Defines "eligible county" to mean a county that simultaneously
  7  has at least two professional sports facilities in the county
    and has a population of not less than 1.5 million.
  8
    Eliminates cruise passenger surcharge of up to $4 per day.
  9
    Permits authority to issue bonds.
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