Senate Bill sb2140

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    Florida Senate - 2003                                  SB 2140

    By Senator Dockery





    15-1057-03

  1                      A bill to be entitled

  2         An act relating to the Florida High-Speed Rail

  3         Authority; amending s. 341.840, F.S.; providing

  4         that the tax exemption for the authority does

  5         not apply with respect to associated

  6         development; amending s. 288.281, F.S.;

  7         authorizing bonds to be issued for road and

  8         bridge construction necessary to implement the

  9         high-speed rail system; creating s. 341.843,

10         F.S.; requiring performance and payment bonds

11         of contractors contracting with the authority;

12         providing requirements for such bonds; creating

13         s. 341.844, F.S.; authorizing issuance of

14         revenue bonds to finance the high-speed rail

15         system; amending s. 341.830, F.S.; requiring

16         procurement of professional services to comply

17         with state procurement standards; providing

18         appropriations for the high-speed rail system;

19         creating s. 341.826, F.S.; requiring the

20         Department of Transportation to include an

21         amount for the high-speed rail system in its

22         annual budget request; creating s. 341.827,

23         F.S.; providing for pledge of funds for the

24         system; providing that such pledge does not

25         constitute an obligation of the state;

26         providing a covenant with bondholders;

27         authorizing positions for the authority;

28         providing an effective date.

29  

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

31  

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    Florida Senate - 2003                                  SB 2140
    15-1057-03




 1         Section 1.  Section 341.840, Florida Statutes, is

 2  amended to read:

 3         341.840  Tax exemption.--The exercise of the powers

 4  granted by this act will be in all respects for the benefit of

 5  the people of this state, for the increase of their commerce,

 6  welfare, and prosperity, and for the improvement of their

 7  health and living conditions, and as the design, building,

 8  operation, maintenance, and financing of a system by the

 9  authority or its agent or the owner or lessee thereof, as

10  herein authorized, constitutes the performance of an essential

11  public function, neither the authority, its agent, nor the

12  owner of such system shall be required to pay any taxes or

13  assessments upon or in respect to the system or any property

14  acquired or used by the authority, its agent, or such owner

15  under the provisions of this act or upon the income therefrom,

16  any security therefor, their transfer, and the income

17  therefrom, including any profit made on the sale thereof,

18  shall at all times be free from taxation of every kind by the

19  state, the counties, and the municipalities and other

20  political subdivisions in the state; however, the tax

21  exemption shall not apply to any associated development or

22  upon the income, sales, or other taxable transactions related

23  to any associated development.

24         Section 2.  Subsection (5) is added to section 288.281,

25  Florida Statutes, to read:

26         288.281  Financing construction or acquisition of roads

27  and bridges; additional method.--

28         (5)  The Division of Bond Finance may, at the request

29  of the Florida High-Speed Rail Authority, issue bonds under

30  this section for road and bridge construction necessary to

31  implement a high-speed rail system as defined in s. 341.8203,

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    Florida Senate - 2003                                  SB 2140
    15-1057-03




 1  with such bonds to be repaid from pledged revenues of the

 2  authority.

 3         Section 3.  Section 341.843, Florida Statutes, is

 4  created to read:

 5         341.843  Surety bond; requirement with respect to

 6  high-speed rail system.--

 7         (1)  The authority shall require, upon entering into a

 8  DBOM contract or DBOM & F contract, that the contractor

 9  provide a performance and payment bond in an amount determined

10  by the authority.

11         (2)  Before the DBOM or DBOM & F contractor commences

12  any construction work, the authority shall require that the

13  contractor provide to the authority a payment and performance

14  bond that covers 100 percent of the costs of the construction,

15  however, if such level of surety is not commercially

16  available, the authority, notwithstanding ss. 255.05 and

17  337.18, may require a monetary surety amount of less than 100

18  percent of such costs or may authorize that surety bonds be

19  provided on a phased basis.

20         (3)  The surety on such bonds shall be from a surety

21  company authorized to do business in the state. All bonds

22  shall be payable to the authority and conditioned for the

23  prompt, faithful, and efficient performance of the contract

24  according to plans and specifications and within the time

25  period specified, and for the prompt payment of all persons

26  furnishing labor, material, equipment, and supplies therefor.

27         (4)  The bond requirement by subsection (2) may be

28  substantially in the form provided in s. 255.05(3).

29         Section 4.  Section 341.844, Florida Statutes, is

30  created to read:

31  

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    Florida Senate - 2003                                  SB 2140
    15-1057-03




 1         341.844  Revenue bonds; project financing.--Upon the

 2  request of the Florida High-Speed Rail Authority, the Division

 3  of Bond Finance may, pursuant to s. 11, Art. VII of the State

 4  Constitution and the State Bond Act, issue revenue bonds for

 5  and on behalf of the Florida High-Speed Rail Authority for the

 6  purpose of financing or refinancing the construction,

 7  reconstruction, and improvement of a high-speed rail system.

 8  Bonds issued under this section shall be payable from the

 9  revenues of the high-speed rail system or other revenues of

10  the authority, including funds appropriated for the authority.

11         Section 5.  Subsection (3) is added to section 341.830,

12  Florida Statutes, to read:

13         341.830  Procurement.--

14         (3)  Notwithstanding anything in this act to the

15  contrary, procurement of any person or entity to provide any

16  professional services as defined in s. 287.055(2)(a) shall be

17  in accordance with the provisions of s. 287.055.

18         Section 6.  There is appropriated from funds within the

19  State Transportation Trust Fund designated for the

20  Transportation Outreach Program (TOP) by section 339.137,

21  Florida Statutes, to the Florida High-Speed Rail Authority the

22  sum of $75 million for fiscal year 2003-2004 to assist in the

23  implementation of the construction of the high-speed rail

24  system as defined in section 341.8203(6), Florida Statutes. In

25  the event funds designated for TOP are insufficient to meet

26  this total appropriation, such funds as are available are

27  appropriated from TOP and additional funds equal to the amount

28  of the insufficiency are appropriated from funds within the

29  State Transportation Trust Fund for public transportation

30  projects in accordance with chapter 341, Florida Statutes, as

31  provided in section 206.46(3), Florida Statutes, to the

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    Florida Senate - 2003                                  SB 2140
    15-1057-03




 1  Florida High-Speed Rail Authority for the purposes set forth

 2  in this section. In the event that section 339.137, Florida

 3  Statutes, is repealed, the funds described in this section are

 4  appropriated from funds within the State Transportation Trust

 5  Fund committed by the Department of Transportation for public

 6  transportation projects in accordance with chapter 341,

 7  Florida Statutes, as provided in section 206.46(3), Florida

 8  Statutes, to the Florida High-Speed Rail Authority for the

 9  purposes set forth in this section.

10         Section 7.  Section 341.826, Florida Statutes, is

11  created to read:

12         341.826  Legislative budget request.--Commencing with

13  fiscal year 2004-2005 and annually thereafter, the Department

14  of Transportation shall include in its annual legislative

15  budget request an expenditure of not less than $75 million to

16  be provided by the Department of Transportation to the Florida

17  High-Speed Rail Authority, as defined in s. 341.821. Such

18  budget shall include funding for projects approved by the

19  authority which are determined by the authority to be in

20  furtherance of the construction of the high-speed rail system

21  as defined in s. 341.8203(6). The funds described in this

22  section shall be appropriated from funds within the State

23  Transportation Fund designated for the Transportation Outreach

24  Program (TOP) by s. 339.137, to the Florida High-Speed Rail

25  Authority. In the event funds designated for TOP are

26  insufficient to meet this total appropriation, such funds as

27  are available are appropriated from TOP and additional funds

28  equal to the amount of the insufficiency are appropriated from

29  funds within the State Transportation Trust Fund for public

30  transportation projects in accordance with chapter 341, as

31  provided in s. 206.46(3), to the Florida High-Speed Rail

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    Florida Senate - 2003                                  SB 2140
    15-1057-03




 1  Authority for the purposes set forth in this section. If s.

 2  339.137 is repealed, the funds described in this section are

 3  appropriated from funds within the State Transportation Trust

 4  Fund committed by the Department of Transportation for public

 5  transportation projects in accordance with chapter 341, as

 6  provided in s. 206.46(3), to the Florida High-Speed Rail

 7  Authority for the purposes set forth in this section.

 8         Section 8.  Section 341.827, Florida Statutes, is

 9  created to read:

10         341.827  Pledging of funds.--Funds appropriated for the

11  High-Speed Rail Authority or for the construction of the

12  high-speed rail system may be assigned, pledged, or set aside

13  as a trust for the payment of principal or interest on revenue

14  bonds, notes, or other forms of indebtedness issued by the

15  Florida High-Speed Rail Authority or on its behalf by the

16  Division of Bond Finance; however, such debt shall not

17  constitute a general obligation of the State of Florida. The

18  state does hereby covenant with holders of such revenue bonds

19  or such other instruments of indebtedness issued hereunder

20  that it will not repeal, impair, or amend in any manner the

21  appropriation of such funds which would materially or

22  adversely affect the rights of such holders, so long as bonds

23  authorized by this act are outstanding.

24         Section 9.  Two full-time equivalent positions for an

25  executive director and an assistant to the executive director

26  are created and authorized for the Florida High-Speed Rail

27  Authority.

28         Section 10.  This act shall take effect July 1, 2003.

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    Florida Senate - 2003                                  SB 2140
    15-1057-03




 1            *****************************************

 2                          SENATE SUMMARY

 3    Provides that the tax exemption of the Florida High-Speed
      Rail Authority does not apply with respect to associated
 4    development. Authorizes the issuance of bonds for road
      and bridge construction necessary for the high-speed rail
 5    project and for other purposes of implementing the
      project. Requires contractors to furnish bonds. Requires
 6    procurement of professional services to comport with
      state standards for the acquisition of such services.
 7    Appropriates $75 million to the authority for the next
      fiscal year and requires the Department of
 8    Transportation's annual budget request to contain at
      least that much for future years.
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