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



                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

  6

  7

  8

  9

10  ______________________________________________________________

11  Representative(s) Kyle offered the following:

12

13         Amendment (with title amendment) 

14  Remove everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 334.30, Florida Statutes, is

18  amended to read:

19         334.30  Public-private Private transportation

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

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

22  efficient transportation facilities for the purpose of travel

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

24  provide for public-private partnership agreements to

25  effectuate the construction of additional safe, convenient,

26  and economical transportation facilities.

27         (1)  The department may receive or solicit proposals

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

29  facility, enter into agreements with private entities, or

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

31  financing of transportation facilities.  The department is

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1  authorized to adopt rules to implement this section and shall

  2  by rule establish an application fee for the submission of

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

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

  5  engage the services of private consultants to assist in the

  6  evaluation. Before seeking legislative approval, the

  7  department must determine that the proposed project:

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

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

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

11  may use state resources for a transportation facility project

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

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

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

15  that no additional costs or service disruptions would be

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

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

18  department.

19

20  The department shall ensure that all reasonable costs to the

21  state related to transportation facilities that are not part

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

23  entity. The department shall also ensure that all reasonable

24  costs to the state, and substantially affected local

25  governments, and utilities, related to the private

26  transportation facility, are borne by the public-private

27  private entity for transportation facilities that are owned by

28  private entities.

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

30  Trust Fund is limited to advancing projects already programmed

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

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





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

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

  3         (3)  The department may request proposals for

  4  public-private transportation projects or, if the department

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

  6  Administrative Weekly and a newspaper of general circulation

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

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

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

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

11  local government in the affected area. After the public

12  notification period has expired, the department shall then

13  rank the proposals in order of preference. In ranking the

14  proposals, the department may consider, but is not limited to

15  considering, professional qualifications, general business

16  terms, innovative engineering or cost-reduction terms, finance

17  plans, and the need for state funds to deliver the proposal.

18  The department shall negotiate with the top-ranked proposer in

19  good faith, and if the department is not satisfied with the

20  results of said negotiations, the department may, at its sole

21  discretion, terminate negotiations with said proposer. If

22  these negotiations are unsuccessful, the department may go to

23  the second and lower-ranked firms in order using this same

24  procedure. If only one proposal is received, the department

25  may negotiate in good faith, and if the department is not

26  satisfied with the results of said negotiations, the

27  department may, at its sole discretion, terminate negotiations

28  with the said proposers. Notwithstanding any other provision

29  of this subsection, the department may, at its sole

30  discretion, reject all proposals at any point in the process

31  up to completion of a contract with the proposer.

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  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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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  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. Any bonds issued by the

10  63-20 corporation shall be payable solely from and secured by

11  a lien upon and pledge of the revenues received by the 63-20

12  corporation. Any bonds issued by the 63-20 corporation shall

13  not be or constitute a general indebtedness of the State of

14  Florida, any department or agency thereof, or any political

15  subdivision thereof within the meaning of any constitutional

16  or statutory provision or limitation. The full faith and

17  credit of the State of Florida shall not be pledged to the

18  payment of the principal of or interest on the bonds issued by

19  the 63-20 corporation. No owner of any of the bonds shall ever

20  have the right to require or compel the exercise of the taxing

21  power of the State of Florida or any department or agency of

22  the state for payment thereof, and the bonds shall not

23  constitute a lien upon any property owned by the State of

24  Florida or any department or agency of the state. Bonds issued

25  by the 63-20 corporation shall be rated investment grade by a

26  nationally recognized credit rating agency. Nothing in this

27  subsection is intended to prohibit credit enhancement of such

28  bonds, whether provided by private or governmental sources

29  other than sources backed by the taxing power of the State of

30  Florida. Nothing in this subsection is intended to prohibit

31  the pledging of additional funds or revenues from private

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1  sources to secure such bonds. Internal Revenue Service Ruling

  2  63-20 corporations may receive State Transportation Trust Fund

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

  4  empowered to enter into public-private partnership agreements

  5  with Internal Revenue Service Ruling 63-20 corporations for

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

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

  8  339.135(6) shall apply to such agreements.

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

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

11  Internal Revenue Service Ruling 63-20 corporations that

12  construct projects containing toll facilities approved under

13  this section. To be eligible, the Internal Revenue Service

14  Ruling 63-20 corporation must meet the provisions of s.

15  338.251 and must either provide an indication from a

16  nationally recognized rating agency that the senior bonds of

17  the 63-20 corporation will be investment grade or must provide

18  credit support, such as a letter of credit or other means

19  acceptable to the department, to ensure that the loans will be

20  fully repaid as required by law. The state's liability for

21  debt of a facility shall be limited to the amount approved for

22  that specific facility in the department's 5-year work program

23  adopted pursuant to s. 339.135.

24         (11)(6)  Notwithstanding s. 341.327, a fixed-guideway

25  transportation system authorized by the department to be

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

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

28  any safe speed.

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

30  348.0004, Florida Statutes, is repealed.

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

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1  348.0004, Florida Statutes, to read:

  2         348.0004  Purposes and powers.--

  3         (9)  The Legislature hereby finds and declares that

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

  5  efficient transportation facilities for the purpose of travel

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

  7  provide for public-private partnership agreements to

  8  effectuate the construction of additional safe, convenient,

  9  and economical transportation facilities.

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

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

12  into agreements with private entities, or consortia thereof,

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

14  extensions or other improvements to existing expressway

15  authority transportation facilities or new transportation

16  facilities that are within the jurisdiction of such an

17  expressway authority. Such an expressway authority is

18  authorized to adopt rules to implement this subsection and

19  shall by rule establish an application fee for the submission

20  of unsolicited proposals under this subsection. The fee must

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

22  Such an expressway authority may engage the services of

23  private consultants to assist in the evaluation. Before

24  approval, such an expressway authority must determine that the

25  proposed project:

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

27         2.  Would have adequate safeguards in place to ensure

28  that no additional costs or service disruptions would be

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

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

31  cancellation of the agreement by such expressway authority.

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1         (b)  Such an expressway authority may request proposals

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

  3  expressway authority receives an unsolicited proposal that it

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

  5  the Florida Administrative Weekly and a newspaper of general

  6  circulation in the county in which such expressway authority

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

  8  expressway authority has received the proposal and will

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

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

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

12  areas. After the public notification period has expired, the

13  expressway authority shall then rank the proposals in order of

14  preference. In ranking the proposals, the expressway authority

15  may consider, but is not limited to considering, professional

16  qualifications, general business terms, innovative engineering

17  or cost-reduction terms, finance plans, and the need for state

18  funds to deliver the proposal. The expressway authority shall

19  negotiate with the top-ranked proposer in good faith, and if

20  the expressway authority is not satisfied with the results of

21  said negotiations, the expressway authority may, at its sole

22  discretion, terminate negotiations with said proposer. If

23  these negotiations are unsuccessful, the expressway authority

24  may go to the second and lower-ranked firms in order using

25  this same procedure. If only one proposal is received, the

26  expressway authority may negotiate in good faith, and if the

27  expressway authority is not satisfied with the results of said

28  negotiations, the expressway authority may, at its sole

29  discretion, terminate negotiations with the said proposers.

30  Notwithstanding any other provision of this paragraph, the

31  expressway authority may, at its sole discretion, reject all

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1  proposals at any point in the process up to completion of a

  2  contract with the proposer.

  3         (c)  Agreements entered into pursuant to this

  4  subsection may authorize the private entity to impose tolls or

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

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

  7  expressway authority to avoid unreasonable costs to users of

  8  the facility.

  9         (d)  Each transportation facility constructed pursuant

10  to this subsection shall comply with all requirements of

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

12  comprehensive plans; such expressway authority's rules,

13  policies, procedures, and standards for transportation

14  facilities; and any other conditions such expressway authority

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

16         (e)  Such an expressway authority may exercise any

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

18  to the development and construction of transportation projects

19  to facilitate the development and construction of

20  transportation projects pursuant to this subsection.  Such an

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

22  operating and maintaining the facility or may provide services

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

24  receive full or partial reimbursement for services rendered.

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

26  subsection are not intended to amend existing laws by further

27  expanding or further restricting the authority of local

28  governmental entities to regulate and enter into cooperative

29  arrangements with the private sector for the planning,

30  construction, and operation of transportation facilities.

31         (g)  Such an expressway authority shall have the

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





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

  2  public-purpose Internal Revenue Service Ruling 63-20

  3  corporations as provided for under the Internal Revenue Code.

  4  Any bonds issued by the 63-20 corporation shall be payable

  5  solely from and secured by a lien upon and pledge of the

  6  revenues received by the 63-20 corporation. Any bonds issued

  7  by the 63-20 corporation shall not be or constitute a general

  8  indebtedness of the State of Florida, any department or agency

  9  thereof, or any political subdivision thereof within the

10  meaning of any constitutional or statutory provision or

11  limitation. The full faith and credit of the State of Florida

12  shall not be pledged to the payment of the principal of or

13  interest on the bonds issued by the 63-20 corporation. No

14  owner of any of the bonds shall ever have the right to require

15  or compel the exercise of the taxing power of the State of

16  Florida or any department or agency of the state for payment

17  thereof, and the bonds shall not constitute a lien upon any

18  property owned by the State of Florida or any department or

19  agency of the state. Bonds issued by the 63-20 corporation

20  shall be rated investment grade by a nationally recognized

21  credit rating agency. Nothing in this paragraph is intended to

22  prohibit credit enhancement of such bonds, whether provided by

23  private or governmental sources other than sources backed by

24  the taxing power of the State of Florida. Nothing in this

25  paragraph is intended to prohibit the pledging of additional

26  funds or revenues from private sources to secure such bonds.

27  Such an expressway authority shall be empowered to enter into

28  public-private partnership agreements with Internal Revenue

29  Service Ruling 63-20 corporations for projects under this

30  subsection.

31         (h)  Such an expressway authority or Internal Revenue

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1  Service Ruling 63-20 corporation created under this subsection

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

  3  department for projects under this subsection, subject to the

  4  same eligibility criteria and other terms and conditions as

  5  would apply to projects of such an expressway authority

  6  undertaken without private participation.

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

  8  law.

  9

10

11  ================ T I T L E   A M E N D M E N T ===============

12  And the title is amended as follows:

13  remove:  the entire title

14

15  and insert:

16                  A bill to be entitled

17         An act relating to transportation; amending s.

18         334.30, F.S.; providing for public-private

19         transportation facilities; eliminating the

20         requirement that the Legislature approve such

21         facilities; providing requirements for the use

22         of funds from the State Transportation Trust

23         Fund; providing requirements with respect to

24         proposals; providing for a selection process;

25         providing for specific project approval by the

26         Legislature for certain projects; authorizing

27         the Department of Transportation to create

28         certain corporations; authorizing such

29         corporations to issue bonds; authorizing the

30         department to lend certain funds to such

31         corporations; authorizing the department to

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                                                   HOUSE AMENDMENT

    720-134AXA-02                               Bill No. CS/HB 435

    Amendment No. ___ (for drafter's use only)





  1         adopt rules; repealing s. 348.0004(2)(m), F.S.,

  2         relating to private entity proposals for

  3         transportation projects; amending s. 348.0004,

  4         F.S.; establishing a process enabling certain

  5         expressway authorities to participate in

  6         public-private partnerships to build, operate,

  7         own, or finance certain transportation

  8         facilities; specifying the expressway

  9         authority's role in such projects and providing

10         rulemaking authority; providing for a selection

11         process; providing for the assessment of tolls;

12         providing for creation of certain tax-exempt,

13         public-purpose corporations; authorizing such

14         corporations to issue bonds; providing an

15         effective date.

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

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