Senate Bill sb1582

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    Florida Senate - 2002                                  SB 1582

    By Senator Villalobos





    37-864A-02                                       See CS/HB 435

  1                      A bill to be entitled

  2         An act relating to transportation; amending s.

  3         334.30, F.S.; providing for public-private

  4         transportation facilities; eliminating the

  5         requirement that the Legislature approve such

  6         facilities; providing requirements for the use

  7         of funds from the State Transportation Trust

  8         Fund; providing requirements with respect to

  9         proposals; providing for specific project

10         approval by the Legislature for certain

11         projects; authorizing the Department of

12         Transportation to create certain corporations

13         to shield the state from possible financial

14         risks for projects; authorizing the department

15         to lend certain funds to such corporations;

16         authorizing the department to adopt rules;

17         repealing s. 348.0004(2)(m), F.S., relating to

18         private entity proposals for transportation

19         projects; amending s. 348.0004, F.S.;

20         establishing a process for certain expressway

21         authorities to participate in public-private

22         partnerships to build, operate, own, or finance

23         certain transportation facilities; specifying

24         the expressway authority's role in such

25         projects and providing rulemaking authority;

26         providing for the assessment of tolls;

27         providing for creation of certain tax-exempt,

28         public-purpose corporations; providing an

29         effective date.

30

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

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1         Section 1.  Section 334.30, Florida Statutes, is

  2  amended to read:

  3         334.30  Public-private Private transportation

  4  facilities.--The Legislature hereby finds and declares that

  5  there is a public need for rapid construction of safe and

  6  efficient transportation facilities for the purpose of travel

  7  within the state, and that it is in the public's interest to

  8  provide for public-private partnership agreements to

  9  effectuate the construction of additional safe, convenient,

10  and economical transportation facilities.

11         (1)  The department may receive or solicit proposals

12  and, with legislative approval by a separate bill for each

13  facility, enter into agreements with private entities, or

14  consortia thereof, for the building, operation, ownership, or

15  financing of transportation facilities.  The department is

16  authorized to adopt rules to implement this section and shall

17  by rule establish an application fee for the submission of

18  proposals under this section.  The fee must be sufficient to

19  pay the costs of evaluating the proposals.  The department may

20  engage the services of private consultants to assist in the

21  evaluation. Before seeking legislative approval, the

22  department must determine that the proposed project:

23         (a)  Is in the public's best interest.;

24         (b)  Would not require state funds to be used unless

25  there is an overriding state interest; however, the department

26  may use state resources for a transportation facility project

27  that is on the State Highway System or that provides for

28  increased mobility on the state's transportation system. and

29         (c)  Would have adequate safeguards in place to ensure

30  that no additional costs or service disruptions would be

31  realized by the traveling public and citizens of the state in

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1  the event of default or cancellation of the agreement by the

  2  department.

  3

  4  The department shall ensure that all reasonable costs to the

  5  state related to transportation facilities that are not part

  6  of the State Highway System are borne by the public-private

  7  entity. The department shall also ensure that all reasonable

  8  costs to the state, and substantially affected local

  9  governments, and utilities, related to the private

10  transportation facility, are borne by the public-private

11  private entity for transportation facilities that are owned by

12  private entities.

13         (2)  The use of funds from the State Transportation

14  Trust Fund is limited to advancing projects already programmed

15  in the adopted 5-year work program or to no more than a

16  statewide total of $50 million in capital costs for all

17  projects not programmed in the adopted 5-year work program.

18         (3)  The department may request proposals for

19  public-private transportation projects or, if the department

20  receives a proposal, shall publish a notice in the Florida

21  Administrative Weekly and a newspaper of general circulation

22  at least once a week for 2 weeks, stating that the department

23  has received the proposal and will accept, for 60 days after

24  the initial date of publication, other proposals for the same

25  project purpose. A copy of the notice must be mailed to each

26  local government in the affected area. Notwithstanding any

27  other provision of law, entities selected by the department in

28  this manner shall be deemed to have complied with all open

29  competition provisions of law.

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1         (4)  The department shall not commit funds in excess of

  2  the limitation in subsection (2) without specific project

  3  approval by the Legislature.

  4         (5)(2)  Agreements entered into pursuant to this

  5  section may authorize the private entity to impose tolls or

  6  fares for the use of the facility.  However, the amount and

  7  use of toll or fare revenues may be regulated by the

  8  department to avoid unreasonable costs to users of the

  9  facility.

10         (6)(3)  Each private transportation facility

11  constructed pursuant to this section shall comply with all

12  requirements of federal, state, and local laws; state,

13  regional, and local comprehensive plans; department rules,

14  policies, procedures, and standards for transportation

15  facilities; and any other conditions which the department

16  determines to be in the public's best interest.

17         (7)(4)  The department may exercise any power possessed

18  by it, including eminent domain, with respect to the

19  development and construction of state transportation projects

20  to facilitate the development and construction of

21  transportation projects pursuant to this section. For

22  public-private facilities located on the State Highway System,

23  the department may pay all or part of the cost of operating

24  and maintaining the facility. For facilities not located on

25  the State Highway System, the department may provide services

26  to the private entity and. agreements for maintenance, law

27  enforcement, and other services entered into pursuant to this

28  section shall provide for full reimbursement for services

29  rendered.

30         (8)(5)  Except as herein provided, the provisions of

31  this section are not intended to amend existing laws by

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1  granting additional powers to, or further restricting, local

  2  governmental entities from regulating and entering into

  3  cooperative arrangements with the private sector for the

  4  planning, construction, and operation of transportation

  5  facilities.

  6         (9)  The department shall have the authority to create

  7  or assist in the creation of tax-exempt, public-purpose

  8  Internal Revenue Service Ruling 63-20 corporations as provided

  9  for under the Internal Revenue Code for the purpose of

10  shielding the state from possible financing risks for projects

11  under this section. Internal Revenue Service Ruling 63-20

12  corporations may receive State Transportation Trust Fund

13  grants and loans from the department. The department shall be

14  empowered to enter into public-private partnership agreements

15  with Internal Revenue Service Ruling 63-20 corporations for

16  projects under this section but shall not agree to expend any

17  funds not appropriated for this purpose. The provisions of s.

18  339.135(6) shall apply to such agreements.

19         (10)  The department may lend funds from the Toll

20  Facilities Revolving Trust Fund, as outlined in s. 338.251, to

21  Internal Revenue Service Ruling 63-20 corporations that

22  propose projects containing toll facilities. To be eligible,

23  the Internal Revenue Service Ruling 63-20 corporation must

24  meet the provisions of s. 338.251 and must also provide credit

25  support, such as a letter of credit or other means acceptable

26  to the department, to ensure the loans will be repaid as

27  required by law. The state's liability for debt of a facility

28  shall be limited to the amount approved for that specific

29  facility in the department's 5-year work program adopted

30  pursuant to s. 339.135.

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1         (11)(6)  Notwithstanding s. 341.327, a fixed-guideway

  2  transportation system authorized by the department to be

  3  wholly or partially within the department's right-of-way

  4  pursuant to a lease granted under s. 337.251 may operate at

  5  any safe speed.

  6         Section 2.  Paragraph (m) of subsection (2) of section

  7  348.0004, Florida Statutes, is repealed.

  8         Section 3.  Subsection (9) is added to section

  9  348.0004, Florida Statutes, to read:

10         348.0004  Purposes and powers.--

11         (9)  The Legislature hereby finds and declares that

12  there is a public need for rapid construction of safe and

13  efficient transportation facilities for the purpose of travel

14  within the state and that it is in the public's interest to

15  provide for public-private partnership agreements to

16  effectuate the construction of additional safe, convenient,

17  and economical transportation facilities.

18         (a)  An expressway authority in any county as defined

19  in s. 125.011(1) may receive or solicit proposals and enter

20  into agreements with private entities, or consortia thereof,

21  for the building, operation, ownership, or financing or

22  extensions or other improvements to existing expressway

23  authority transportation facilities or new transportation

24  facilities that are within the jurisdiction of such an

25  expressway authority. Such an expressway authority is

26  authorized to adopt rules to implement this subsection and

27  shall by rule establish an application fee for the submission

28  of unsolicited proposals under this subsection. The fee must

29  be sufficient to pay the costs of evaluating the proposals.

30  Such an expressway authority may engage the services of

31  private consultants to assist in the evaluation. Before

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1  approval, such an expressway authority must determine that the

  2  proposed project:

  3         1.  Is in the public's best interest.

  4         2.  Would have adequate safeguards in place to ensure

  5  that no additional costs or service disruptions would be

  6  realized by the traveling public and citizens of the state in

  7  the event of default by the private entity or consortium or

  8  cancellation of the agreement by such expressway authority.

  9         (b)  Such an expressway authority may request proposals

10  for public-private transportation projects or, if such an

11  expressway authority receives an unsolicited proposal that it

12  has an interest in evaluating, it shall publish a notice in

13  the Florida Administrative Weekly and a newspaper of general

14  circulation in the county in which such expressway authority

15  is located at least once a week for 2 weeks stating that such

16  expressway authority has received the proposal and will

17  accept, for 60 days after the initial date of publication,

18  other proposals for the same project purpose.  A copy of the

19  notice must be mailed to each local government in the affected

20  areas.  Notwithstanding any other provision of law, entities

21  selected by such an expressway authority in this manner shall

22  for all purposes be deemed to have complied with all open

23  competition provisions of law, including, without limitation,

24  chapters 255 and 287.

25         (c)  Agreements entered into pursuant to this

26  subsection may authorize the private entity to impose tolls or

27  fares for the use of the facility.  However, the amount and

28  use of toll or fare revenues may be regulated by such an

29  expressway authority to avoid unreasonable costs to users of

30  the facility.

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1         (d)  Each transportation facility constructed pursuant

  2  to this subsection shall comply with all requirements of

  3  federal, state, and local laws; state, regional, and local

  4  comprehensive plans; such expressway authority's rules,

  5  policies, procedures, and standards for transportation

  6  facilities; and any other conditions such expressway authority

  7  determines to be in the public's best interest.

  8         (e)  Such an expressway authority may exercise any

  9  power possessed by it, including eminent domain, with respect

10  to the development and construction of transportation projects

11  to facilitate the development and construction of

12  transportation projects pursuant to this subsection.  Such an

13  expressway authority may pay all or part of the cost of

14  operating and maintaining the facility or may provide services

15  to the private entity for which it shall be entitled to

16  receive full or partial reimbursement for services rendered.

17         (f)  Except as herein provided, the provisions of this

18  subsection are not intended to amend existing laws by further

19  expanding or further restricting the authority of local

20  governmental entities to regulate and enter into cooperative

21  arrangements with the private sector for the planning,

22  construction, and operation of transportation facilities.

23         (g)  Such an expressway authority shall have the

24  authority to create, or assist in the creation of, tax-exempt,

25  public-purpose Internal Revenue Service Ruling 63-20

26  corporations as provided for under the Internal Revenue Code

27  for the purpose of shielding such an expressway authority from

28  possible financing risks for projects under this

29  subsection.  Such an expressway authority shall be empowered

30  to enter into public-private partnership agreements with

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    Florida Senate - 2002                                  SB 1582
    37-864A-02                                       See CS/HB 435




  1  Internal Revenue Service Ruling 63-20 corporations for

  2  projects under this subsection.

  3         (h)  Such an expressway authority or Internal Revenue

  4  Service Ruling 63-20 corporation created under this subsection

  5  shall be entitled to apply for grants and loans from the

  6  department for projects under this subsection, subject to the

  7  same eligibility criteria and other terms and conditions as

  8  would apply to projects of such an expressway authority

  9  undertaken without private participation.

10         Section 4.  This act shall take effect upon becoming a

11  law.

12

13            *****************************************

14                       LEGISLATIVE SUMMARY

15    Provides for public-private transportation facilities.
      Deletes the requirement for legislative approval of such
16    facilities. Provides requirements for the use of funds
      from the State Transportation Trust Fund and for
17    proposals. Provides for the Legislature to approve
      specific projects. Authorizes an expressway authority to
18    adopt rules governing proposals for transportation
      facilities by a private entity. Requires publication of
19    notice. Authorizes an expressway authority to exercise
      the power of eminent domain with respect to such
20    transportation facilities. (See bill for details.)

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