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



                                                   HOUSE AMENDMENT

    720-134AX-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

                                  1

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                                                   HOUSE AMENDMENT

    720-134AX-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

    720-134AX-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 solicit design-build proposals

  4  for projects proposed under this section as provided for in s.

  5  287.055. Alternatively, the department may receive unsolicited

  6  proposals for projects under this section. For unsolicited

  7  proposals, the rules of procurement as provided in s. 287.055

  8  shall accommodate the following modifications to account for

  9  an unsolicited proposal process for projects under this

10  section:

11         (a)  Upon receipt of an unsolicited proposal for

12  projects under this section, the department shall promptly

13  announce the project location and limits of the project

14  contained in the unsolicited proposal by placing an

15  advertisement in the Florida Administrative Weekly and a major

16  newspaper of general circulation in the vicinity of the

17  proposed project at least once per week for 2 weeks. This

18  notification must include an invitation to submit competing

19  proposals for the same project purpose within 60 days after

20  the initial publication of the notice. A copy of the notice

21  must be mailed to each local government in the affected area.

22         (b)  In the instance of an unsolicited proposal and

23  after the public notification period has expired, the

24  requirement for a minimum of three proposals as provided in s.

25  287.055(4) is overridden. If fewer than three firms or private

26  entities submit proposals, the department shall determine if

27  the one or two private entities submitting proposals are

28  qualified and shall rank the private entities in the order of

29  preference as provided for in s. 287.055(4)(b). In addition to

30  qualifications, the department may also consider general

31  business terms, creative cost-reduction tactics, preliminary

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                                                   HOUSE AMENDMENT

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

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





  1  financing plans, and other factors provided for in F.A.C.

  2  14-107. The department shall use a qualifications-based

  3  selection process for entering into a contract whereby the

  4  selected firm or consortium shall subsequently establish a

  5  guaranteed maximum price and guaranteed completion date. Since

  6  the private entity may be a project developer, the private

  7  entity is not required to be prequalified by the department

  8  under s. 287.055(3)(c) if all appropriate and necessary

  9  prequalification requirements are adequately met by

10  subconsultant and subcontractor members of the private

11  entity's consortium. If, after the public notification period

12  has expired, only one firm has submitted a proposal, the

13  department is not under any obligation to enter into a

14  contract with the sole proposer. If a sole proposer is

15  qualified, the department shall negotiate with that proposer

16  in good faith and, if the department is not satisfied with the

17  results of the negotiations, the department may, at its sole

18  discretion, terminate negotiations with the proposer. Upon

19  termination of all negotiations with all proposers, the

20  department may, at its discretion, prepare a design criteria

21  package and proceed with a design-build procurement for the

22  project as provided for under s. 287.055(10).

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

24  the limitation in subsection (2) without specific project

25  approval by the Legislature.

26         (5)(2)  Agreements entered into pursuant to this

27  section may authorize the private entity to impose tolls or

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

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

30  department to avoid unreasonable costs to users of the

31  facility.

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                                                   HOUSE AMENDMENT

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

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





  1         (6)(3)  Each private transportation facility

  2  constructed pursuant to this section shall comply with all

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

  4  regional, and local comprehensive plans; department rules,

  5  policies, procedures, and standards for transportation

  6  facilities; and any other conditions which the department

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

  8         (7)(4)  The department may exercise any power possessed

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

10  development and construction of state transportation projects

11  to facilitate the development and construction of

12  transportation projects pursuant to this section. For

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

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

15  and maintaining the facility. For facilities not located on

16  the State Highway System, the department may provide services

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

18  enforcement, and other services entered into pursuant to this

19  section shall provide for full reimbursement for services

20  rendered.

21         (8)(5)  Except as herein provided, the provisions of

22  this section are not intended to amend existing laws by

23  granting additional powers to, or further restricting, local

24  governmental entities from regulating and entering into

25  cooperative arrangements with the private sector for the

26  planning, construction, and operation of transportation

27  facilities.

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

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

30  Internal Revenue Service Ruling 63-20 corporations as provided

31  for under the Internal Revenue Code. Any bonds issued by the

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                                                   HOUSE AMENDMENT

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

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





  1  63-20 corporation shall be payable solely from and secured by

  2  a lien upon and pledge of the proceeds of the revenues

  3  received by the 63-20 corporation. The payment of the

  4  principal of and interest on the bonds may be additionally

  5  secured by a lien upon and pledge of the bond trust funds and

  6  income received by the 63-20 corporation from the investment

  7  of balances in the bond trust funds. The pledged revenues,

  8  bond trust funds, investment income, and available funds on

  9  deposit in the proposed project's bond construction fund, if

10  any, shall constitute the trust estate for purposes of

11  securing any bonds issued by the 63-20 corporation. Any bonds

12  issued by the 63-20 corporation shall not be or constitute a

13  general indebtedness of the State of Florida, any department

14  or agency thereof, or any political subdivision thereof within

15  the meaning of any constitutional or statutory provision or

16  limitation, but are payable solely from and secured by a lien

17  upon and pledge of the pledged revenues and the trust estate.

18  The full faith and credit of the State of Florida may not be

19  pledged to the payment of the principal of or interest on the

20  bonds issued by the 63-20 corporation. No owner of any of the

21  bonds shall ever have the right to require or compel the

22  exercise of the taxing power of the State of Florida or any

23  department or agency of the state for payment thereof, and the

24  bonds do not constitute a lien upon any property owned by the

25  State of Florida or any department or agency of the state.

26  Bonds issued by the 63-20 corporation must be rated investment

27  grade by a nationally recognized credit rating agency.

28  Internal Revenue Service Ruling 63-20 corporations may receive

29  State Transportation Trust Fund grants and loans from the

30  department. The department shall be empowered to enter into

31  public-private partnership agreements with Internal Revenue

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                                                   HOUSE AMENDMENT

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

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





  1  Service Ruling 63-20 corporations for projects under this

  2  section but shall not agree to expend any funds not

  3  appropriated for this purpose. The provisions of s. 339.135(6)

  4  shall apply to such agreements.

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

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

  7  Internal Revenue Service Ruling 63-20 corporations that

  8  construct projects containing toll facilities approved under

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

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

11  338.251 and must either provide an indication from a

12  nationally recognized rating agency that the senior bonds of

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

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

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

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

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

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

19  adopted pursuant to s. 339.135.

20         (11)(6)  Notwithstanding s. 341.327, a fixed-guideway

21  transportation system authorized by the department to be

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

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

24  any safe speed.

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

26  348.0004, Florida Statutes, is repealed.

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

28  348.0004, Florida Statutes, to read:

29         348.0004  Purposes and powers.--

30         (9)  The Legislature hereby finds and declares that

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

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                                                   HOUSE AMENDMENT

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

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





  1  efficient transportation facilities for the purpose of travel

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

  3  provide for public-private partnership agreements to

  4  effectuate the construction of additional safe, convenient,

  5  and economical transportation facilities.

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

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

  8  into agreements with private entities, or consortia thereof,

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

10  extensions or other improvements to existing expressway

11  authority transportation facilities or new transportation

12  facilities that are within the jurisdiction of such an

13  expressway authority. Such an expressway authority is

14  authorized to adopt rules to implement this subsection and

15  shall by rule establish an application fee for the submission

16  of unsolicited proposals under this subsection. The fee must

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

18  Such an expressway authority may engage the services of

19  private consultants to assist in the evaluation. Before

20  approval, such an expressway authority must determine that the

21  proposed project:

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

23         2.  Would have adequate safeguards in place to ensure

24  that no additional costs or service disruptions would be

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

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

27  cancellation of the agreement by such expressway authority.

28         (b)  Such an expressway authority may request proposals

29  for public-private transportation projects as provided for in

30  s. 287.055. Alternatively, such an expressway authority may

31  receive unsolicited proposals for public-private projects. For

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                                                   HOUSE AMENDMENT

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

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





  1  unsolicited proposals that the expressway authority has an

  2  interest in evaluating, the rules of procurement as provided

  3  in s. 287.055 shall accommodate the following modifications to

  4  account for an unsolicited proposal process for projects under

  5  this section:

  6         1.  Such expressway authority shall publish a notice in

  7  the Florida Administrative Weekly and a newspaper of general

  8  circulation in the county in which such expressway authority

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

10  expressway authority has received the proposal and will

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

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

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

14  areas.

15         2.  In the instance of an unsolicited proposal and

16  after the public notification period has expired, if fewer

17  than three firms or private entities submit proposals, the

18  authority shall determine if the one or two private entities

19  submitting proposals are qualified and rank the private

20  entities in the order of preference as provided for in s.

21  287.055(4)(b). In addition to qualifications, the authority

22  may also consider general business terms, creative

23  cost-reduction tactics, preliminary financing plans, and other

24  factors provided for in the authority's rules. The authority

25  shall use a qualifications-based selection process for

26  entering into a contract whereby the selected firm or

27  consortium shall subsequently establish a guaranteed maximum

28  price and guaranteed completion date. Since the private entity

29  may be a project developer, the private entity is not required

30  to be prequalified by the department under s. 287.055(3)(c) if

31  all appropriate and necessary prequalification requirements

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                                                   HOUSE AMENDMENT

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

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





  1  are adequately met by subconsultant and subcontractor members

  2  of the private entity's consortium. If, after the public

  3  notification period has expired, only one firm has submitted a

  4  proposal, the authority is not under any obligation to enter

  5  into a contract with the sole proposer. If the sole proposer

  6  is qualified, the authority shall negotiate with that proposer

  7  in good faith and, if the authority is not satisfied with the

  8  results of the negotiations, the authority may, at its sole

  9  discretion, terminate negotiations with the proposer. Upon

10  termination of all negotiations with all proposers, the

11  authority may, at its discretion, prepare a design criteria

12  package and proceed with a design-build procurement for the

13  project as provided for under s. 287.055(10).

14         (c)  Agreements entered into pursuant to this

15  subsection may authorize the private entity to impose tolls or

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

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

18  expressway authority to avoid unreasonable costs to users of

19  the facility.

20         (d)  Each transportation facility constructed pursuant

21  to this subsection shall comply with all requirements of

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

23  comprehensive plans; such expressway authority's rules,

24  policies, procedures, and standards for transportation

25  facilities; and any other conditions such expressway authority

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

27         (e)  Such an expressway authority may exercise any

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

29  to the development and construction of transportation projects

30  to facilitate the development and construction of

31  transportation projects pursuant to this subsection.  Such an

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                                                   HOUSE AMENDMENT

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

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





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

  2  operating and maintaining the facility or may provide services

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

  4  receive full or partial reimbursement for services rendered.

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

  6  subsection are not intended to amend existing laws by further

  7  expanding or further restricting the authority of local

  8  governmental entities to regulate and enter into cooperative

  9  arrangements with the private sector for the planning,

10  construction, and operation of transportation facilities.

11         (g)  Such an expressway authority shall have the

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

13  public-purpose Internal Revenue Service Ruling 63-20

14  corporations as provided for under the Internal Revenue Code.

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

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

17  proceeds of the revenues received by the 63-20 corporation.

18  The payment of the principal of and interest on the bonds may

19  be additionally secured by a lien upon and pledge of the bond

20  trust funds and income received by the 63-20 corporation from

21  the investment of balances in the bond trust funds. The

22  pledged revenues, bond trust funds, investment income, and

23  available funds on deposit in the proposed project's bond

24  construction fund, if any, shall constitute the trust estate

25  for purposes of securing any bonds issued by the 63-20

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

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

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

29  subdivision thereof within the meaning of any constitutional

30  or statutory provision or limitation, but are payable solely

31  from and secured by a lien upon and pledge of the pledged

                                  11

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                                                   HOUSE AMENDMENT

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

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





  1  revenues and the trust estate. The full faith and credit of

  2  the State of Florida may not be pledged to the payment of the

  3  principal of or interest on the bonds issued by the 63-20

  4  corporation. No owner of any of the bonds shall ever have the

  5  right to require or compel the exercise of the taxing power of

  6  the State of Florida, or any department or agency of the state

  7  for payment thereof, and the bonds do not constitute a lien

  8  upon any property owned by the State of Florida or any

  9  department or agency of the state. Bonds issued by the 63-20

10  corporation must be rated investment grade by a nationally

11  recognized credit rating agency. Such an expressway authority

12  may enter into public-private partnership agreements with

13  Internal Revenue Service Ruling 63-20 corporations for

14  projects under this subsection.

15         (h)  Such an expressway authority or Internal Revenue

16  Service Ruling 63-20 corporation created under this subsection

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

18  department for projects under this subsection, subject to the

19  same eligibility criteria and other terms and conditions as

20  would apply to projects of such an expressway authority

21  undertaken without private participation.

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

23  law.

24

25

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

27  And the title is amended as follows:

28  remove:  the entire title

29

30  and insert:

31                  A bill to be entitled

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                                                   HOUSE AMENDMENT

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

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





  1         An act relating to transportation; amending s.

  2         334.30, F.S.; providing for public-private

  3         transportation facilities; eliminating the

  4         requirement that the Legislature approve such

  5         facilities; providing requirements for the use

  6         of funds from the State Transportation Trust

  7         Fund; providing requirements with respect to

  8         proposals; requiring that the Department of

  9         Transportation use a qualifications-based

10         selection process for certain contracts;

11         providing for specific project approval by the

12         Legislature for certain projects; authorizing

13         the Department of Transportation to create

14         certain corporations; authorizing such

15         corporations to issue bonds; authorizing the

16         department to lend certain funds to such

17         corporations; authorizing the department to

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

19         relating to private entity proposals for

20         transportation projects; amending s. 348.0004,

21         F.S.; establishing a process enabling certain

22         expressway authorities to participate in

23         public-private partnerships to build, operate,

24         own, or finance certain transportation

25         facilities; specifying the expressway

26         authority's role in such projects and providing

27         rulemaking authority; requiring that an

28         expressway authority use a qualifications-based

29         selection process for certain contracts;

30         providing for the assessment of tolls;

31         providing for creation of certain tax-exempt,

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                                                   HOUSE AMENDMENT

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

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





  1         public-purpose corporations; authorizing such

  2         corporations to issue bonds; providing an

  3         effective date.

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