Senate Bill sb1350e1

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    CS for SB 1350                           First Engrossed (ntc)



  1                      A bill to be entitled

  2         An act relating to the Department of

  3         Transportation; amending s. 215.615, F.S.;

  4         revising matching requirements for revenue

  5         bonds issued for fixed-guideway transportation

  6         systems; amending s. 337.11, F.S.; amending

  7         notification requirements for construction

  8         contracts; amending s. 337.14, F.S.; providing

  9         exemptions from prequalification requirements

10         for certain projects; amending s. 337.18, F.S.;

11         revising requirements for surety bonds for

12         certain construction projects; amending s.

13         338.161, F.S.; providing that toll agencies may

14         enter into agreements to promote additional

15         uses of the electronic toll collection system;

16         amending s. 338.2275, F.S.; deleting obsolete

17         provisions; revising the maximum amount of

18         bonds that are available for turnpike projects;

19         providing an effective date.

20  

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

22  

23         Section 1.  Subsection (1) of section 215.615, Florida

24  Statutes, is amended to read:

25         215.615  Fixed-guideway transportation systems

26  funding.--

27         (1)  The issuance of revenue bonds by the Division of

28  Bond Finance, on behalf of the Department of Transportation,

29  pursuant to s. 11, Art. VII of the State Constitution, is

30  authorized, pursuant to the State Bond Act, to finance or

31  refinance fixed capital expenditures for fixed-guideway


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    CS for SB 1350                           First Engrossed (ntc)



 1  transportation systems, as defined in s. 341.031, including

 2  facilities appurtenant thereto, costs of issuance, and other

 3  amounts relating to such financing or refinancing. Such

 4  revenue bonds shall be matched on a 50-50 basis with funds

 5  from sources other than revenues of the Department of

 6  Transportation, in a manner acceptable to the Department of

 7  Transportation. The Division of Bond Finance is authorized to

 8  consider innovative financing techniques, technologies which

 9  may include, but are not limited to, innovative bidding and

10  structures of potential financings findings that may result in

11  negotiated transactions.

12         (a)  The department and any participating commuter rail

13  authority or regional transportation authority established

14  under chapter 343, local governments, or local governments

15  collectively by interlocal agreement having jurisdiction of a

16  fixed-guideway transportation system may enter into an

17  interlocal agreement to promote the efficient and

18  cost-effective financing or refinancing of fixed-guideway

19  transportation system projects by revenue bonds issued

20  pursuant to this subsection. The terms of such interlocal

21  agreements shall include provisions for the Department of

22  Transportation to request the issuance of the bonds on behalf

23  of the parties; shall provide that the department's share may

24  be up to 50 percent of the eligible project cost, which may

25  include a share of annual each party to the agreement is

26  contractually liable for an equal share of funding an amount

27  equal to the debt service requirements of such bonds; and

28  shall include any other terms, provisions, or covenants

29  necessary to the making of and full performance under such

30  interlocal agreement. Repayments made to the department under

31  any interlocal agreement are not pledged to the repayment of


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    CS for SB 1350                           First Engrossed (ntc)



 1  bonds issued hereunder, and failure of the local governmental

 2  authority to make such payment shall not affect the obligation

 3  of the department to pay debt service on the bonds.

 4         (b)  Revenue bonds issued pursuant to this subsection

 5  shall not constitute a general obligation of, or a pledge of

 6  the full faith and credit of, the State of Florida. Bonds

 7  issued pursuant to this section shall be payable from funds

 8  available pursuant to s. 206.46(3), subject to annual

 9  appropriation.  The amount of revenues available for debt

10  service shall never exceed a maximum of 2 percent of all state

11  revenues deposited into the State Transportation Trust Fund.

12         (c)  The projects to be financed or refinanced with the

13  proceeds of the revenue bonds issued hereunder are designated

14  as state fixed capital outlay projects for purposes of s.

15  11(d), Art. VII of the State Constitution, and the specific

16  projects to be financed or refinanced shall be determined by

17  the Department of Transportation in accordance with state law

18  and appropriations from the State Transportation Trust Fund.

19  Each project to be financed with the proceeds of the bonds

20  issued pursuant to this subsection must first be approved by

21  the Legislature by an act of general law.

22         (d)  Any complaint for validation of bonds issued

23  pursuant to this section shall be filed in the circuit court

24  of the county where the seat of state government is situated,

25  the notice required to be published by s. 75.06 shall be

26  published only in the county where the complaint is filed, and

27  the complaint and order of the circuit court shall be served

28  only on the state attorney of the circuit in which the action

29  is pending.

30         (e)  The state does hereby covenant with holders of

31  such revenue bonds or other instruments of indebtedness issued


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    CS for SB 1350                           First Engrossed (ntc)



 1  hereunder, that it will not repeal or impair or amend these

 2  provisions in any manner that will materially and adversely

 3  affect the rights of such holders as long as bonds authorized

 4  by this subsection are outstanding.

 5         (f)  This subsection supersedes any inconsistent

 6  provisions in existing law.

 7  

 8  Notwithstanding this subsection, the lien of revenue bonds

 9  issued pursuant to this subsection on moneys deposited into

10  the State Transportation Trust Fund shall be subordinate to

11  the lien on such moneys of bonds issued under ss. 215.605,

12  320.20, and 215.616, and any pledge of such moneys to pay

13  operating and maintenance expenses under s. 206.46(5) and

14  chapter 348, as may be amended.

15         Section 2.  Paragraph (a) of subsection (3) of section

16  337.11, Florida Statutes, is amended to read:

17         337.11  Contracting authority of department; bids;

18  emergency repairs, supplemental agreements, and change orders;

19  combined design and construction contracts; progress payments;

20  records; requirements of vehicle registration.--

21         (3)(a)  On all construction contracts of $250,000 or

22  less, as well as any construction contract of less than

23  $500,000 which the department has pursuant to s. 337.14 waived

24  prequalification, the department shall advertise for bids in a

25  newspaper having general circulation in the county where the

26  proposed work is located.  Publication shall be at least once

27  a week for no less than 2 consecutive weeks, and the first

28  publication shall be no less than 14 days prior to the date on

29  which bids are to be received.

30         Section 3.  Subsection (1) of section 337.14, Florida

31  Statutes, is amended to read:


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    CS for SB 1350                           First Engrossed (ntc)



 1         337.14  Application for qualification; certificate of

 2  qualification; restrictions; request for hearing.--

 3         (1)  Any person desiring to bid for the performance of

 4  any construction contract in excess of $250,000 which the

 5  department proposes to let must first be certified by the

 6  department as qualified pursuant to this section and rules of

 7  the department.  The rules of the department shall address the

 8  qualification of persons to bid on construction contracts in

 9  excess of $250,000 and shall include requirements with respect

10  to the equipment, past record, experience, financial

11  resources, and organizational personnel of the applicant

12  necessary to perform the specific class of work for which the

13  person seeks certification. The department is authorized to

14  limit the dollar amount of any contract upon which a person is

15  qualified to bid or the aggregate total dollar volume of

16  contracts such person is allowed to have under contract at any

17  one time.  Each applicant seeking qualification to bid on

18  construction contracts in excess of $250,000 shall furnish the

19  department a statement under oath, on such forms as the

20  department may prescribe, setting forth detailed information

21  as required on the application.  Each application for

22  certification shall be accompanied by the latest annual

23  financial statement of the applicant completed within the last

24  12 months. If the annual financial statement shows the

25  financial condition of the applicant more than 4 months prior

26  to the date on which the application is received by the

27  department, then an interim financial statement must also be

28  submitted.  The interim financial statement must cover the

29  period from the end date of the annual statement and must show

30  the financial condition of the applicant no more than 4 months

31  prior to the date on which the application is received by the


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    CS for SB 1350                           First Engrossed (ntc)



 1  department.  Each required annual or interim financial

 2  statement must be audited and accompanied by the opinion of a

 3  certified public accountant or a public accountant approved by

 4  the department.  The information required by this subsection

 5  is confidential and exempt from the provisions of s.

 6  119.07(1).  The department shall act upon the application for

 7  qualification within 30 days after the department determines

 8  that the application is complete. The department may waive the

 9  requirements of this subsection for projects having a contract

10  price of $500,000 or less if the department determines that

11  the project is of a noncritical nature and noncompliance with

12  the subsection will not endanger public health, safety, or

13  property.

14         Section 4.  Paragraph (a) of subsection (1) of section

15  337.18, Florida Statutes, is amended to read:

16         337.18  Surety bonds for construction or maintenance

17  contracts; requirement with respect to contract award; bond

18  requirements; defaults; damage assessments.--

19         (1)(a)  A surety bond shall be required of the

20  successful bidder in an amount equal to the awarded contract

21  price. However, the department may choose, in its discretion

22  and applicable only to multiyear maintenance contracts, to

23  allow for incremental annual contract bonds that cumulatively

24  total the full, awarded multiyear contract price. For a

25  project for which the contract price is $250,000 $150,000 or

26  less, the department may waive the requirement for all or a

27  portion of a surety bond if it determines the project is of a

28  noncritical nature and nonperformance will not endanger public

29  health, safety, or property. If the secretary or his designee

30  determines that it is in the best interests of the department

31  to do so and that a reduced bonding requirement for a project


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    CS for SB 1350                           First Engrossed (ntc)



 1  will not endanger public health, safety, or property, the

 2  department may waive the requirement of a surety bond in an

 3  amount equal to the awarded contract price for a project

 4  having a contract price of $250 million or more, and, in its

 5  place, may set a surety bond amount that is a portion of the

 6  total contract price and provide an alternate means of

 7  security for the balance of the contract amount which is not

 8  covered by the surety bond or provide for incremental surety

 9  bonding and provide an alternate means of security for the

10  balance of the contract amount which is not covered by the

11  surety bond. Such alternative means of security may include

12  letters of credit, United States bonds and notes, parent

13  company guaranties, and cash collateral. The department may

14  require alternate means of security if a surety bond is

15  waived. The surety on such bond shall be a surety company

16  authorized to do business in the state. All bonds shall be

17  payable to the department and conditioned for the prompt,

18  faithful, and efficient performance of the contract according

19  to plans and specifications and within the time period

20  specified, and for the prompt payment of all persons defined

21  in s. 713.01 furnishing labor, material, equipment, and

22  supplies for work provided in the contract; however, whenever

23  an improvement, demolition, or removal contract price is

24  $25,000 or less, the security may, in the discretion of the

25  bidder, be in the form of a cashier's check, bank money order

26  of any state or national bank, certified check, or postal

27  money order. The department shall adopt rules to implement

28  this subsection. Such rules shall include provisions under

29  which the department shall refuse to accept bonds on contracts

30  when a surety wrongfully fails or refuses to settle or provide

31  


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    CS for SB 1350                           First Engrossed (ntc)



 1  a defense for claims or actions arising under a contract for

 2  which the surety previously furnished a bond.

 3         Section 5.  Subsection (3) is added to section 338.161,

 4  Florida Statutes, to read:

 5         338.161  Authority of department to advertise and

 6  promote electronic toll collection.--

 7         (3)  If the department or any toll agency created by

 8  statute finds that it can increase non-toll revenues or add

 9  convenience or other value for its customers, the department

10  or toll agency may enter into agreements with private or

11  public entities in order to provide additional uses for its

12  electronic toll collection system. The department or toll

13  agency may incur expenses to advertise or promote its

14  electronic toll collection system to consumers for products or

15  services whether on or off the turnpike or toll system.

16         Section 6.  Subsection (1) of section 338.2275, Florida

17  Statutes, is amended to read:

18         338.2275  Approved turnpike projects.--

19         (1)  Legislative approval of the department's tentative

20  work program that contains the turnpike project constitutes

21  approval to issue bonds as required by s. 11(f), Art. VII of

22  the State Constitution. No more than $6 billion of bonds may

23  be outstanding to fund approved turnpike projects. Turnpike

24  projects approved to be included in future tentative work

25  programs include, but are not limited to, projects contained

26  in the 2003-2004 tentative work program. A maximum of $4.5

27  billion of bonds may be issued to fund approved turnpike

28  projects.

29         Section 7.  This act shall take effect July 1, 2006.

30  

31  


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