HB 1773 2003
1	A bill to be entitled
2	An act relating to transportation facilities; creating s.
3	215.617, F.S.; providing for issuance of state bonds to
4	fund state infrastructure bank projects; authorizing the
5	Division of Bond Finance to issue such bonds; providing
6	for debt service; providing for terms of such bonds;
7	providing that such bonds shall not constitute a debt or
8	general obligation of the state; providing covenant with
9	bondholders; providing for jurisdiction of complaints for
10	validation of such bonds; amending s. 334.30, F.S.;
11	revising provisions for construction of additional
12	described facilities; providing for public-private
13	agreements to effectuate construction; revising
14	requirements for approval of projects; authorizing the
15	Department of Transportation to adopt rules; providing
16	requirements for the use of funds from the State
17	Transportation Trust Fund; providing procedures with
18	respect to proposals; providing for a selection process;
19	providing for specific project approval by the Legislature
20	for certain projects; authorizing the department to create
21	or assist creation of certain tax-exempt corporations for
22	the construction of facilities; authorizing such
23	corporations to issue bonds; limiting state liability;
24	authorizing the department to lend certain funds to such
25	corporations; amending s. 338.165, F.S.; authorizing the
26	department to request the Division of Bond Finance to
27	issue bonds secured by toll revenues from Alligator Alley,
28	Sunshine Skyway Bridge, Beeline-East Expressway, and the
29	Pinellas Bayway for certain projects; amending s.
30	338.2275, F.S.; revising provisions for projects approved
31	to be included in tentative work programs; revising
32	limitation of turnpike enterprise bonds; amending s.
33	348.0004, F.S.; revising powers and duties of expressway
34	authorities formed under the Florida Expressway Authority
35	Act; providing legislative findings of public necessity;
36	providing for described public-private partnership
37	agreements to facilitate construction or improvement of
38	certain transportation facilities; authorizing the
39	expressway authority to adopt rules; providing for
40	described fees; requiring certain determinations prior to
41	entering into such agreements; providing for project
42	proposals; providing procedures; authorizing the private
43	entity to impose certain tolls or fares; requiring
44	compliance with certain rules, regulations, policies, and
45	procedures; authorizing the expressway authority to
46	exercise certain authority and pay certain costs;
47	authorizing the expressway authority to create certain
48	corporations; authorizing such corporations to issue
49	bonds; authorizing the expressway authority to enter into
50	public-private partnership agreements with such
51	corporations; authorizing such corporations to apply for
52	described grants and loans from the department; providing
53	an effective date.
54
55	Be It Enacted by the Legislature of the State of Florida:
56
57	Section 1. Section 215.617, Florida Statutes, is created
58	to read:
59	215.617 State bonds for state infrastructure bank.--
60	(1) Upon the request of the Department of Transportation,
61	the Division of Bond Finance is authorized pursuant to s. 11,
62	Art. VII of the State Constitution and the State Bond Act to
63	issue revenue bonds, for and on behalf of the Department of
64	Transportation, for the purpose of financing or refinancing the
65	construction, reconstruction, and improvement of projects that
66	are eligible to receive state infrastructure bank assistance as
67	provided in s. 339.55. The facilities to be financed with the
68	proceeds of such bonds are designated as state fixed capital
69	outlay projects for the purposes of s. 11(d), Art. VII of the
70	State Constitution, and the specific facilities to be financed
71	shall be determined by the Department of Transportation in
72	accordance with s. 339.55. Each project to be financed with the
73	proceeds of the bonds issued pursuant to this section is hereby
74	approved as required by s. 11(f), Art. VII of the State
75	Constitution. The Division of Bond Finance is authorized to
76	consider innovative financing techniques, which may include, but
77	are not limited to, innovative bidding and structures of
78	potential financings that may result in negotiated transactions.
79	(2) Any bonds issued pursuant to this section shall be
80	payable primarily from a prior and superior claim on all state
81	infrastructure bank repayments received each year with respect
82	to state infrastructure bank projects undertaken in accordance
83	with the provisions of s. 339.55.
84	(3) The term of the bonds shall not exceed 30 years.
85	(4) The bonds issued under this section shall not
86	constitute a debt or general obligation of the state or a pledge
87	of the full faith and credit or taxing power of the state. The
88	bonds shall be secured by and are payable from the revenues
89	pledged in accordance with this section and the resolution
90	authorizing their issuance.
91	(5) The state does covenant with the holders of bonds
92	issued under this section that it will not take any action which
93	will materially and adversely affect the rights of such
94	bondholders as long as the bonds authorized by this section are
95	outstanding.
96	(6) Any complaint for such validation of bonds issued
97	pursuant to this section shall be filed only in the circuit
98	court of the county where the seat of state government is
99	situated, the notice required to be published by s. 75.06 shall
100	be published only in the county where the complaint is filed,
101	and the complaint and order of the circuit court shall be served
102	only on the state attorney of the circuit in which the action is
103	pending.
104	Section 2. Section 334.30, Florida Statutes, is amended to
105	read:
106	334.30 Public-privatePrivatetransportation
107	facilities.--The Legislature hereby finds and declares that
108	there is a public need for rapid construction of safe and
109	efficient transportation facilities for the purpose of travel
110	within the state, and that it is in the public's interest to
111	provide for public-private partnership agreements to effectuate
112	the construction of additional safe, convenient, and economical
113	transportation facilities.
114	(1) The department may receive or solicit proposals and,
115	with legislative approval by a separate bill for each facility,
116	enter into agreements with private entities, or consortia
117	thereof, for the building, operation, ownership, or financing of
118	transportation facilities. The department is authorized to adopt
119	rules to implement this section andshall by rule establish an
120	application fee for the submission of proposals under this
121	section. The fee must be sufficient to pay the costs of
122	evaluating the proposals. The department may engage the services
123	of private consultants to assist in the evaluation. Before
124	seeking legislativeapproval, the department must determine that
125	the proposed project:
126	(a) Is in the public's best interest.;
127	(b) Would not require state funds to be used unless there
128	is an overriding state interest; however, the department may use
129	or advance state resources for an intelligent transportation
130	system on the State Highway System that is part of a joint
131	public-private development project on department property leased
132	for such purpose pursuant to s. 337.251, or for a project that
133	provides for increased mobility on the state's transportation
134	system.and
135	(c) Would have adequate safeguards in place to ensure that
136	no additional costs or service disruptions would be realized by
137	the traveling public and citizens of the state in the event of
138	default or cancellation of the agreement by the department.
139
140	The department shall ensure that all reasonable costs to the
141	state related to transportation facilities that are not part of
142	the State Highway System are borne by the public-private entity.
143	The department shall also ensure that all reasonable costs to
144	the state,and substantially affected local governments,and
145	utilities, related to the private transportation facility,are
146	borne by the public-privateprivate entity for transportation
147	facilities that are owned by private entities.
148	(2) The use of funds from the State Transportation Trust
149	Fund is limited to advancing projects already programmed in the
150	adopted 5-year work program or to no more than a statewide total
151	of $50 million in capital costs for all projects not programmed
152	in the adopted 5-year work program.
153	(3) The department may request proposals for public-private
154	transportation projects or, if the department receives an
155	unsolicited proposal, shall publish a notice in the Florida
156	Administrative Weekly and a newspaper of general circulation at
157	least once a week for 2 weeks stating that the department has
158	received the proposal and will accept, for 60 days after the
159	initial date of publication, other proposals for the same project
160	purpose. A copy of the notice must be mailed to each local
161	government in the affected area. After the public notification
162	period has expired, the department shall then rank the proposals
163	in order of preference. In ranking the proposals the department
164	may consider, but is not limited to considering, professional
165	qualifications, general business terms, innovative engineering or
166	cost-reduction terms, finance plans, and the need for state funds
167	to deliver the proposal. The department shall negotiate with the
168	top-ranked proposer in good faith and, if the department is not
169	satisfied with the results of the negotiations, the department
170	may, at its sole discretion, terminate negotiations with the
171	proposer. If these negotiations are unsuccessful, the department
172	may go to the second and lower-ranked firms in order using this
173	same procedure. If only one proposal is received, the department
174	may negotiate in good faith and, if the department is not
175	satisfied with the results of the negotiations, the department
176	may, at its sole discretion, terminate negotiations with the
177	proposer. Notwithstanding any other provision of this subsection,
178	the department may, at its sole discretion, reject all proposals
179	at any point in the process up to completion of a contract with
180	the proposer.
181	(4) The department shall not commit funds in excess of the
182	limitation in subsection (2) without specific project approval by
183	the Legislature.
184	(5)(2)Agreements entered into pursuant to this section
185	may authorize the private entity to impose tolls or fares for
186	the use of the facility. However, the amount and use of toll or
187	fare revenues may be regulated by the department to avoid
188	unreasonable costs to users of the facility.
189	(6)(3) Each privatetransportation facility constructed
190	pursuant to this section shall comply with all requirements of
191	federal, state, and local laws; state, regional, and local
192	comprehensive plans; department rules, policies, procedures, and
193	standards for transportation facilities; and any other
194	conditions which the department determines to be in the public's
195	best interest.
196	(7)(4)The department may exercise any power possessed by
197	it, including eminent domain, with respect to the development
198	and construction of state transportation projects to facilitate
199	the development and construction of transportation projects
200	pursuant to this section. For public-private facilities located
201	on the State Highway System, the department may pay all or part
202	of the cost of operating and maintaining the State Highway
203	System. For public-private facilities not located on the State
204	Highway System, the department may provide, by agreement,
205	services to the private entity, including, but not limited to,
206	maintenance and law enforcement. Such agreements shall provide
207	for full reimbursement to the department for services rendered
208	The department may provide services to the private entity.
209	Agreements for maintenance, law enforcement, and other services
210	entered into pursuant to this section shall provide for full
211	reimbursement for services rendered.
212	(8)(5)Except as herein provided, the provisions of this
213	section are not intended to amend existing laws by granting
214	additional powers to, or further restricting, local governmental
215	entities from regulating and entering into cooperative
216	arrangements with the private sector for the planning,
217	construction, and operation of transportation facilities.
218	(9) The department is authorized to create or assist in
219	the creation of tax-exempt, public-purpose Internal Revenue
220	Service Ruling 63-20 corporations as provided for under the
221	Internal Revenue Code. Any bonds issued by the Internal Revenue
222	Service Ruling 63-20 corporation shall be payable solely from
223	and secured by a lien upon and pledge of the revenues received
224	by the Internal Revenue Service Ruling 63-20 corporation. Any
225	bonds issued by the Internal Revenue Service Ruling 63-20
226	corporation shall not be or constitute a general indebtedness of
227	the state, any department or agency thereof, or any political
228	subdivision thereof within the meaning of any constitutional or
229	statutory provision or limitation. The full faith and credit of
230	the state shall not be pledged to the payment of the principal
231	of or interest on the bonds issued by the Internal Revenue
232	Service Ruling 63-20 corporation. No owner of any of the bonds
233	shall ever have the right to require or compel the exercise of
234	the taxing power of the state or any department or agency of the
235	state for payment thereof, and the bonds shall not constitute a
236	lien upon any property owned by the state or any department or
237	agency of the state. Bonds issued by the Internal Revenue
238	Service Ruling 63-20 corporation shall be rated investment grade
239	by a nationally recognized credit rating agency. Nothing in this
240	subsection is intended to prohibit credit enhancement of such
241	bonds, whether provided by private or governmental sources other
242	than sources backed by the taxing power of the state. Nothing in
243	this subsection is intended to prohibit the pledging of
244	additional funds or revenues from private sources to secure such
245	bonds. Internal Revenue Service Ruling 63-20 corporations may
246	receive State Transportation Trust Fund grants and loans from
247	the department. The department shall be empowered to enter into
248	public-private partnership agreements with Internal Revenue
249	Service Ruling 63-20 corporations for projects under this
250	section but shall not agree to expend any funds not appropriated
251	for this purpose. The provisions of s. 339.135(6) shall apply to
252	such agreements.
253	(10) The department may lend funds from the Toll
254	Facilities Revolving Trust Fund, as outlined in s. 338.251, to
255	Internal Revenue Service Ruling 63-20 corporations that
256	construct projects containing toll facilities approved under
257	this section. To be eligible, the Internal Revenue Service
258	Ruling 63-20 corporation must meet the provisions of s. 338.251
259	and must either provide an indication from a nationally
260	recognized credit rating agency that the senior bonds of the
261	Internal Revenue Service Ruling 63-20 corporation will be
262	investment grade or must provide credit support, such as a
263	letter of credit or other means acceptable to the department, to
264	ensure that the loans will be fully repaid as required by law.
265	The state's liability for debt of a facility shall be limited to
266	the amount approved for that specific facility in the
267	department's 5-year work program adopted pursuant to s. 339.135.
268	(11)(6)A fixed-guideway transportation system authorized
269	by the department to be wholly or partially within the
270	department's right-of-way pursuant to a lease granted under s.
271	337.251 may operate at any safe speed.
272	Section 3. Subsection (3) of section 338.165, Florida
273	Statutes, is amended to read:
274	338.165 Continuation of tolls.--
275	(3) Notwithstanding any other law to the contrary,
276	pursuant to s. 11, Art. VII of the State Constitution, and
277	subject to the requirements of subsection (2), the Department of
278	Transportation may request the Division of Bond Finance to issue
279	bonds secured by toll revenues collected on the Alligator Alley,
280	Sunshine Skyway Bridge, Beeline-East Expressway, and Pinellas
281	Bayway to fund transportation projects located within the county
282	or counties in which the facility is located andcontained in
283	the 1993-1994 Adopted Work Program or in any subsequentadopted
284	work program of the department.
285	Section 4. Subsection (1) of section 338.2275, Florida
286	Statutes, is amended to read:
287	338.2275 Approved turnpike projects.--
288	(1) Legislative approval of the department's tentative
289	work program that contains the turnpike project constitutes
290	approval to issue bonds as required by s. 11(f), Art. VII of the
291	State Constitution. Turnpike projects approved to be included in
292	future tentative work programs include, but are not limited to,
293	projects contained in the 2003-20041997-1998tentative work
294	program.and potential expansion projects listed in the January
295	25, 1997, report submitted to the Florida Transportation
296	Commission titled "Florida's Turnpike Building on the Past -
297	Preparing for the Future." A maximum of $4.5$3billion of bonds
298	may be issued to fund approved turnpike projects.
299	Section 5. Paragraph (m) of subsection (2) of section
300	348.0004, Florida Statutes, is amended, and subsection (9) is
301	added to said section, to read:
302	348.0004 Purposes and powers.--
303	(2) Each authority may exercise all powers necessary,
304	appurtenant, convenient, or incidental to the carrying out of
305	its purposes, including, but not limited to, the following
306	rights and powers:
307	(m) An expressway authority in any county as defined in s.
308	125.011(1) may consider any unsolicited proposals from private
309	entities and all factors it deems important in evaluating such
310	proposals. Such an expressway authority shall adopt rules or
311	policies in compliance with s. 334.30 for the receipt,
312	evaluation, and consideration of such proposals in order to
313	enter into agreements for the planning design, engineering,
314	construction, operation, ownership, or financing of additional
315	expressways in that county. Such rules must require
316	substantially similar technical information as is required by
317	rule 14-107.0011(3)(a)-(e), Florida Administrative Code. In
318	accepting a proposal and entering into such an agreement, the
319	expressway authority and the private entity shall for all
320	purposes be deemed to have complied with chapters 255 and 287.
321	Similar proposals shall be reviewed and acted on by the
322	authority in the order in which they were received. An
323	additional expressway may not be constructed under this section
324	without the prior express written consent of the board of county
325	commissioners of each county located within the geographical
326	boundaries of the authority. The powers granted by this section
327	are in addition to all other powers of the authority granted by
328	this chapter.
329	(9) The Legislature finds and declares that there is a
330	public need for rapid construction of safe and efficient
331	transportation facilities for the purpose of travel within the
332	state and that it is in the public's best interest to provide
333	for public-private partnership agreements to effectuate the
334	construction of additional safe, convenient, and economical
335	transportation facilities.
336	(a) An expressway authority in any county may receive or
337	solicit proposals and enter into agreements with private
338	entities, or consortia thereof, for the building, operation,
339	ownership, or financing of extensions or other improvements to
340	existing expressway authority transportation facilities or new
341	transportation facilities that are within the jurisdiction of
342	the expressway authority. The expressway authority is authorized
343	to adopt rules to implement this subsection and shall by rule
344	establish an application fee for the submission of unsolicited
345	proposals under this subsection. The fee must be sufficient to
346	pay the costs of evaluating the proposals. The expressway
347	authority may engage the services of private consultants to
348	assist in the evaluation. Before approval, the expressway
349	authority must determine that the proposed project:
350	1. Is in the public's best interest.
351	2. Would have adequate safeguards in place to ensure that
352	no additional costs or service disruptions would be realized by
353	the traveling public and citizens of the state in the event of
354	default by the private entity or consortium or cancellation of
355	the agreement by the expressway authority.
356	(b) The expressway authority may request proposals for
357	public-private transportation projects or, if the expressway
358	authority receives an unsolicited proposal that it has an
359	interest in evaluating, it shall publish a notice in the Florida
360	Administrative Weekly and a newspaper of general circulation in
361	the county in which the expressway authority is located at least
362	once a week for 2 weeks stating that the expressway authority
363	has received the proposal and will accept, for 60 days after the
364	initial date of publication, other proposals for the same
365	project purpose. A copy of the notice must be mailed to each
366	local government in the affected areas. After the public
367	notification period has expired, the expressway authority shall
368	then rank the proposals in order of preference. In ranking the
369	proposals, the expressway authority may consider, but is not
370	limited to considering, professional qualifications, general
371	business terms, innovative engineering or cost-reduction terms,
372	finance plans, and the need for state funds to deliver the
373	proposal. The expressway authority shall negotiate with the top-
374	ranked proposer in good faith, and, if the expressway authority
375	is not satisfied with the results of said negotiations, the
376	expressway authority may, at its sole discretion, terminate
377	negotiations with said proposer. If these negotiations are
378	unsuccessful, the expressway authority may go to the second and
379	lower-ranked firms in order using this same procedure. If only
380	one proposal is received, the expressway authority may negotiate
381	in good faith, and, if the expressway authority is not satisfied
382	with the results of said negotiations, the expressway authority
383	may, at its sole discretion, terminate negotiations with the
384	proposer. Notwithstanding any other provision of this paragraph,
385	the expressway authority may, at its sole discretion, reject all
386	proposals at any point in the process prior to execution of a
387	contract with the proposer.
388	(c) Agreements entered into pursuant to this subsection
389	may authorize the private entity to impose tolls or fares for
390	the use of the facility. However, the amount and use of toll or
391	fare revenues may be regulated by the expressway authority to
392	avoid unreasonable costs to users of the facility.
393	(d) Each transportation facility constructed pursuant to
394	this subsection shall comply with all requirements of federal,
395	state, and local laws; state, regional, and local comprehensive
396	plans; the expressway authority's rules, policies, procedures,
397	and standards for transportation facilities; and any other
398	conditions that the expressway authority determines to be in the
399	public's best interest.
400	(e) The expressway authority may exercise any power
401	possessed by it, including eminent domain, with respect to the
402	development and construction of transportation projects to
403	facilitate the development and construction of transportation
404	projects pursuant to this subsection. The expressway authority
405	may pay all or part of the cost of operating and maintaining the
406	facility or may provide services to the private entity for which
407	it shall be entitled to receive full or partial reimbursement
408	for services rendered.
409	(f) Except as herein provided, the provisions of this
410	subsection are not intended to amend existing laws by further
411	expanding or further restricting the authority of local
412	governmental entities to regulate and enter into cooperative
413	arrangements with the private sector for the planning,
414	construction, and operation of transportation facilities.
415	(g) The expressway authority shall have the authority to
416	create or assist in the creation of tax-exempt, public-purpose
417	Internal Revenue Service Ruling 63-20 corporations as provided
418	for under the Internal Revenue Code. Any bonds issued by the
419	Internal Revenue Service Ruling 63-20 corporation shall be
420	payable solely from and secured by a lien upon and pledge of the
421	revenues received by the Internal Revenue Service Ruling 63-20
422	corporation. Any bonds issued by the Internal Revenue Service
423	Ruling 63-20 corporation shall not be or constitute a general
424	indebtedness of the state, any department or agency thereof, or
425	any political subdivision thereof within the meaning of any
426	constitutional or statutory provision or limitation. The full
427	faith and credit of the state shall not be pledged to the
428	payment of the principal of or interest on the bonds issued by
429	the Internal Revenue Service Ruling 63-20 corporation. No owner
430	of any of the bonds shall have the right to require or compel
431	the exercise of the taxing power of the state or any department
432	or agency of the state for payment thereof, and the bonds shall
433	not constitute a lien upon any property owned by the state or
434	any department or agency of the state. Bonds issued by the
435	Internal Revenue Service Ruling 63-20 corporation shall be rated
436	investment grade by a nationally recognized credit rating
437	agency. Nothing in this paragraph is intended to prohibit credit
438	enhancement of such bonds, whether provided by private or
439	governmental sources other than sources backed by the taxing
440	power of the state. Nothing in this paragraph is intended to
441	prohibit the pledging of additional funds or revenues from
442	private sources to secure such bonds. The expressway authority
443	shall be empowered to enter into public-private partnership
444	agreements with Internal Revenue Service Ruling 63-20
445	corporations for projects under this subsection.
446	(h) The expressway authority or Internal Revenue Service
447	Ruling 63-20 corporation created under this subsection shall be
448	entitled to apply for grants and loans from the department for
449	projects under this subsection, subject to the same eligibility
450	criteria and other terms and conditions as would apply to
451	projects of the expressway authority undertaken without private
452	participation.
453	Section 6. This act shall take effect upon becoming a law.