House Bill hb0435e1
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CS/HB 435, First Engrossed
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 a selection process;
10 providing for specific project approval by the
11 Legislature for certain projects; authorizing
12 the Department of Transportation to create
13 certain corporations; authorizing such
14 corporations to issue bonds; authorizing the
15 department to lend certain funds to such
16 corporations; authorizing the department to
17 adopt rules; repealing s. 348.0004(2)(m), F.S.,
18 relating to private entity proposals for
19 transportation projects; amending s. 348.0004,
20 F.S.; establishing a process enabling certain
21 expressway authorities to participate in
22 public-private partnerships to build, operate,
23 own, or finance certain transportation
24 facilities; specifying the expressway
25 authority's role in such projects and providing
26 rulemaking authority; providing for a selection
27 process; providing for the assessment of tolls;
28 providing for creation of certain tax-exempt,
29 public-purpose corporations; authorizing such
30 corporations to issue bonds; providing an
31 effective date.
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CS/HB 435, First Engrossed
1 Be It Enacted by the Legislature of the State of Florida:
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3 Section 1. Section 334.30, Florida Statutes, is
4 amended to read:
5 334.30 Public-private Private transportation
6 facilities.--The Legislature hereby finds and declares that
7 there is a public need for rapid construction of safe and
8 efficient transportation facilities for the purpose of travel
9 within the state, and that it is in the public's interest to
10 provide for public-private partnership agreements to
11 effectuate the construction of additional safe, convenient,
12 and economical transportation facilities.
13 (1) The department may receive or solicit proposals
14 and, with legislative approval by a separate bill for each
15 facility, enter into agreements with private entities, or
16 consortia thereof, for the building, operation, ownership, or
17 financing of transportation facilities. The department is
18 authorized to adopt rules to implement this section and shall
19 by rule establish an application fee for the submission of
20 proposals under this section. The fee must be sufficient to
21 pay the costs of evaluating the proposals. The department may
22 engage the services of private consultants to assist in the
23 evaluation. Before seeking legislative approval, the
24 department must determine that the proposed project:
25 (a) Is in the public's best interest.;
26 (b) Would not require state funds to be used unless
27 there is an overriding state interest; however, the department
28 may use state resources for a transportation facility project
29 that is on the State Highway System or that provides for
30 increased mobility on the state's transportation system. and
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CS/HB 435, First Engrossed
1 (c) Would have adequate safeguards in place to ensure
2 that no additional costs or service disruptions would be
3 realized by the traveling public and citizens of the state in
4 the event of default or cancellation of the agreement by the
5 department.
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7 The department shall ensure that all reasonable costs to the
8 state related to transportation facilities that are not part
9 of the State Highway System are borne by the public-private
10 entity. The department shall also ensure that all reasonable
11 costs to the state, and substantially affected local
12 governments, and utilities, related to the private
13 transportation facility, are borne by the public-private
14 private entity for transportation facilities that are owned by
15 private entities.
16 (2) The use of funds from the State Transportation
17 Trust Fund is limited to advancing projects already programmed
18 in the adopted 5-year work program or to no more than a
19 statewide total of $50 million in capital costs for all
20 projects not programmed in the adopted 5-year work program.
21 (3) The department may request proposals for
22 public-private transportation projects or, if the department
23 receives an unsolicited proposal, shall publish a notice in
24 the Florida Administrative Weekly and a newspaper of general
25 circulation at least once a week for 2 weeks, stating that the
26 department has received the proposal and will accept, for 60
27 days after the initial date of publication, other proposals
28 for the same project purpose. A copy of the notice must be
29 mailed to each local government in the affected area. After
30 the public notification period has expired, the department
31 shall then rank the proposals in order of preference. In
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CS/HB 435, First Engrossed
1 ranking the proposals, the department may consider, but is not
2 limited to considering, professional qualifications, general
3 business terms, innovative engineering or cost-reduction
4 terms, finance plans, and the need for state funds to deliver
5 the proposal. The department shall negotiate with the
6 top-ranked proposer in good faith, and if the department is
7 not satisfied with the results of said negotiations, the
8 department may, at its sole discretion, terminate negotiations
9 with said proposer. If these negotiations are unsuccessful,
10 the department may go to the second and lower-ranked firms in
11 order using this same procedure. If only one proposal is
12 received, the department may negotiate in good faith, and if
13 the department is not satisfied with the results of said
14 negotiations, the department may, at its sole discretion,
15 terminate negotiations with the said proposers.
16 Notwithstanding any other provision of this subsection, the
17 department may, at its sole discretion, reject all proposals
18 at any point in the process up to completion of a contract
19 with the proposer.
20 (4) The department shall not commit funds in excess of
21 the limitation in subsection (2) without specific project
22 approval by the Legislature.
23 (5)(2) Agreements entered into pursuant to this
24 section may authorize the private entity to impose tolls or
25 fares for the use of the facility. However, the amount and
26 use of toll or fare revenues may be regulated by the
27 department to avoid unreasonable costs to users of the
28 facility.
29 (6)(3) Each private transportation facility
30 constructed pursuant to this section shall comply with all
31 requirements of federal, state, and local laws; state,
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CS/HB 435, First Engrossed
1 regional, and local comprehensive plans; department rules,
2 policies, procedures, and standards for transportation
3 facilities; and any other conditions which the department
4 determines to be in the public's best interest.
5 (7)(4) The department may exercise any power possessed
6 by it, including eminent domain, with respect to the
7 development and construction of state transportation projects
8 to facilitate the development and construction of
9 transportation projects pursuant to this section. For
10 public-private facilities located on the State Highway System,
11 the department may pay all or part of the cost of operating
12 and maintaining the facility. For facilities not located on
13 the State Highway System, the department may provide services
14 to the private entity and. agreements for maintenance, law
15 enforcement, and other services entered into pursuant to this
16 section shall provide for full reimbursement for services
17 rendered.
18 (8)(5) Except as herein provided, the provisions of
19 this section are not intended to amend existing laws by
20 granting additional powers to, or further restricting, local
21 governmental entities from regulating and entering into
22 cooperative arrangements with the private sector for the
23 planning, construction, and operation of transportation
24 facilities.
25 (9) The department shall have the authority to create
26 or assist in the creation of tax-exempt, public-purpose
27 Internal Revenue Service Ruling 63-20 corporations as provided
28 for under the Internal Revenue Code. Any bonds issued by the
29 63-20 corporation shall be payable solely from and secured by
30 a lien upon and pledge of the revenues received by the 63-20
31 corporation. Any bonds issued by the 63-20 corporation shall
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CS/HB 435, First Engrossed
1 not be or constitute a general indebtedness of the State of
2 Florida, any department or agency thereof, or any political
3 subdivision thereof within the meaning of any constitutional
4 or statutory provision or limitation. The full faith and
5 credit of the State of Florida shall not be pledged to the
6 payment of the principal of or interest on the bonds issued by
7 the 63-20 corporation. No owner of any of the bonds shall ever
8 have the right to require or compel the exercise of the taxing
9 power of the State of Florida or any department or agency of
10 the state for payment thereof, and the bonds shall not
11 constitute a lien upon any property owned by the State of
12 Florida or any department or agency of the state. Bonds issued
13 by the 63-20 corporation shall be rated investment grade by a
14 nationally recognized credit rating agency. Nothing in this
15 subsection is intended to prohibit credit enhancement of such
16 bonds, whether provided by private or governmental sources
17 other than sources backed by the taxing power of the State of
18 Florida. Nothing in this subsection is intended to prohibit
19 the pledging of additional funds or revenues from private
20 sources to secure such bonds. Internal Revenue Service Ruling
21 63-20 corporations may receive State Transportation Trust Fund
22 grants and loans from the department. The department shall be
23 empowered to enter into public-private partnership agreements
24 with Internal Revenue Service Ruling 63-20 corporations for
25 projects under this section but shall not agree to expend any
26 funds not appropriated for this purpose. The provisions of s.
27 339.135(6) shall apply to such agreements.
28 (10) The department may lend funds from the Toll
29 Facilities Revolving Trust Fund, as outlined in s. 338.251, to
30 Internal Revenue Service Ruling 63-20 corporations that
31 construct projects containing toll facilities approved under
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CS/HB 435, First Engrossed
1 this section. To be eligible, the Internal Revenue Service
2 Ruling 63-20 corporation must meet the provisions of s.
3 338.251 and must either provide an indication from a
4 nationally recognized rating agency that the senior bonds of
5 the 63-20 corporation will be investment grade or must provide
6 credit support, such as a letter of credit or other means
7 acceptable to the department, to ensure that the loans will be
8 fully repaid as required by law. The state's liability for
9 debt of a facility shall be limited to the amount approved for
10 that specific facility in the department's 5-year work program
11 adopted pursuant to s. 339.135.
12 (11)(6) Notwithstanding s. 341.327, a fixed-guideway
13 transportation system authorized by the department to be
14 wholly or partially within the department's right-of-way
15 pursuant to a lease granted under s. 337.251 may operate at
16 any safe speed.
17 Section 2. Paragraph (m) of subsection (2) of section
18 348.0004, Florida Statutes, is repealed.
19 Section 3. Subsection (9) is added to section
20 348.0004, Florida Statutes, to read:
21 348.0004 Purposes and powers.--
22 (9) The Legislature hereby finds and declares that
23 there is a public need for rapid construction of safe and
24 efficient transportation facilities for the purpose of travel
25 within the state and that it is in the public's interest to
26 provide for public-private partnership agreements to
27 effectuate the construction of additional safe, convenient,
28 and economical transportation facilities.
29 (a) An expressway authority in any county as defined
30 in s. 125.011(1) may receive or solicit proposals and enter
31 into agreements with private entities, or consortia thereof,
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CS/HB 435, First Engrossed
1 for the building, operation, ownership, or financing or
2 extensions or other improvements to existing expressway
3 authority transportation facilities or new transportation
4 facilities that are within the jurisdiction of such an
5 expressway authority. Such an expressway authority is
6 authorized to adopt rules to implement this subsection and
7 shall by rule establish an application fee for the submission
8 of unsolicited proposals under this subsection. The fee must
9 be sufficient to pay the costs of evaluating the proposals.
10 Such an expressway authority may engage the services of
11 private consultants to assist in the evaluation. Before
12 approval, such an expressway authority must determine that the
13 proposed project:
14 1. Is in the public's best interest.
15 2. Would have adequate safeguards in place to ensure
16 that no additional costs or service disruptions would be
17 realized by the traveling public and citizens of the state in
18 the event of default by the private entity or consortium or
19 cancellation of the agreement by such expressway authority.
20 (b) Such an expressway authority may request proposals
21 for public-private transportation projects or, if such an
22 expressway authority receives an unsolicited proposal that it
23 has an interest in evaluating, it shall publish a notice in
24 the Florida Administrative Weekly and a newspaper of general
25 circulation in the county in which such expressway authority
26 is located at least once a week for 2 weeks stating that such
27 expressway authority has received the proposal and will
28 accept, for 60 days after the initial date of publication,
29 other proposals for the same project purpose. A copy of the
30 notice must be mailed to each local government in the affected
31 areas. After the public notification period has expired, the
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CS/HB 435, First Engrossed
1 expressway authority shall then rank the proposals in order of
2 preference. In ranking the proposals, the expressway authority
3 may consider, but is not limited to considering, professional
4 qualifications, general business terms, innovative engineering
5 or cost-reduction terms, finance plans, and the need for state
6 funds to deliver the proposal. The expressway authority shall
7 negotiate with the top-ranked proposer in good faith, and if
8 the expressway authority is not satisfied with the results of
9 said negotiations, the expressway authority may, at its sole
10 discretion, terminate negotiations with said proposer. If
11 these negotiations are unsuccessful, the expressway authority
12 may go to the second and lower-ranked firms in order using
13 this same procedure. If only one proposal is received, the
14 expressway authority may negotiate in good faith, and if the
15 expressway authority is not satisfied with the results of said
16 negotiations, the expressway authority may, at its sole
17 discretion, terminate negotiations with the said proposers.
18 Notwithstanding any other provision of this paragraph, the
19 expressway authority may, at its sole discretion, reject all
20 proposals at any point in the process up to completion of a
21 contract with the proposer.
22 (c) Agreements entered into pursuant to this
23 subsection may authorize the private entity to impose tolls or
24 fares for the use of the facility. However, the amount and
25 use of toll or fare revenues may be regulated by such an
26 expressway authority to avoid unreasonable costs to users of
27 the facility.
28 (d) Each transportation facility constructed pursuant
29 to this subsection shall comply with all requirements of
30 federal, state, and local laws; state, regional, and local
31 comprehensive plans; such expressway authority's rules,
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CS/HB 435, First Engrossed
1 policies, procedures, and standards for transportation
2 facilities; and any other conditions such expressway authority
3 determines to be in the public's best interest.
4 (e) Such an expressway authority may exercise any
5 power possessed by it, including eminent domain, with respect
6 to the development and construction of transportation projects
7 to facilitate the development and construction of
8 transportation projects pursuant to this subsection. Such an
9 expressway authority may pay all or part of the cost of
10 operating and maintaining the facility or may provide services
11 to the private entity for which it shall be entitled to
12 receive full or partial reimbursement for services rendered.
13 (f) Except as herein provided, the provisions of this
14 subsection are not intended to amend existing laws by further
15 expanding or further restricting the authority of local
16 governmental entities to regulate and enter into cooperative
17 arrangements with the private sector for the planning,
18 construction, and operation of transportation facilities.
19 (g) Such an expressway authority shall have the
20 authority to create or assist in the creation of tax-exempt,
21 public-purpose Internal Revenue Service Ruling 63-20
22 corporations as provided for under the Internal Revenue Code.
23 Any bonds issued by the 63-20 corporation shall be payable
24 solely from and secured by a lien upon and pledge of the
25 revenues received by the 63-20 corporation. Any bonds issued
26 by the 63-20 corporation shall not be or constitute a general
27 indebtedness of the State of Florida, any department or agency
28 thereof, or any political subdivision thereof within the
29 meaning of any constitutional or statutory provision or
30 limitation. The full faith and credit of the State of Florida
31 shall not be pledged to the payment of the principal of or
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CS/HB 435, First Engrossed
1 interest on the bonds issued by the 63-20 corporation. No
2 owner of any of the bonds shall ever have the right to require
3 or compel the exercise of the taxing power of the State of
4 Florida or any department or agency of the state for payment
5 thereof, and the bonds shall not constitute a lien upon any
6 property owned by the State of Florida or any department or
7 agency of the state. Bonds issued by the 63-20 corporation
8 shall be rated investment grade by a nationally recognized
9 credit rating agency. Nothing in this paragraph is intended to
10 prohibit credit enhancement of such bonds, whether provided by
11 private or governmental sources other than sources backed by
12 the taxing power of the State of Florida. Nothing in this
13 paragraph is intended to prohibit the pledging of additional
14 funds or revenues from private sources to secure such bonds.
15 Such an expressway authority shall be empowered to enter into
16 public-private partnership agreements with Internal Revenue
17 Service Ruling 63-20 corporations for projects under this
18 subsection.
19 (h) Such an expressway authority or Internal Revenue
20 Service Ruling 63-20 corporation created under this subsection
21 shall be entitled to apply for grants and loans from the
22 department for projects under this subsection, subject to the
23 same eligibility criteria and other terms and conditions as
24 would apply to projects of such an expressway authority
25 undertaken without private participation.
26 Section 4. This act shall take effect upon becoming a
27 law.
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