| 1 | A bill to be entitled |
| 2 | An act relating to transportation financing; creating s. |
| 3 | 215.606, F.S.; providing legislative findings; authorizing |
| 4 | issuance of state bonds to finance or refinance the costs |
| 5 | of acquiring real property or the rights to real property |
| 6 | for state transportation infrastructure or to finance or |
| 7 | refinance repair and replacement of bridges; requiring |
| 8 | legislative authorization; providing that the bonds are |
| 9 | secured by the full faith and credit of the state; |
| 10 | providing for transfer of funds for debt service; |
| 11 | providing for issuance of the bonds by the Division of |
| 12 | Bond Finance under the State Bond Act; providing for |
| 13 | certification of the projects by the Department of |
| 14 | Transportation; limiting the amount of the bonds issued |
| 15 | and debt service requirements; providing for the terms of |
| 16 | the bonds to be set by the division in consultation with |
| 17 | the department based on certain factors; providing for use |
| 18 | of the bond proceeds; providing a contingent effective |
| 19 | date. |
| 20 |
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| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 |
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| 23 | Section 1. Section 215.606, Florida Statutes, is created |
| 24 | to read: |
| 25 | 215.606 State bonds for financing transportation |
| 26 | infrastructure.-- |
| 27 | (1) The Legislature finds that Florida's transportation |
| 28 | infrastructure is not keeping pace with the state's growth in |
| 29 | population and visitors or with increased material and labor |
| 30 | costs. More than 65 percent of the state's major highways are |
| 31 | considered congested, and motorists are spending more hours |
| 32 | driving and are driving more miles per day than the state's |
| 33 | capacity to add new lane miles. The Legislature also finds that |
| 34 | recent increases in transportation funding will not |
| 35 | significantly reduce the $38 billion to $48 billion backlog in |
| 36 | unfunded state transportation needs. Exacerbating the problem |
| 37 | are double-digit increases in the materials used in |
| 38 | transportation construction and increased competition, |
| 39 | nationwide, for transportation builders. Finally, the |
| 40 | Legislature finds that a safe and efficient transportation |
| 41 | system is one of the state's key economic engines. Therefore, |
| 42 | the Legislature concludes that an additional, flexible funding |
| 43 | source for certain transportation activities and projects is |
| 44 | necessary to continue the state's commitment to preserve, |
| 45 | maintain, and expand its transportation system in order to keep |
| 46 | residents and visitors mobile, effectively move freight and |
| 47 | consumer goods, and enhance the state's economy. |
| 48 | (2) The issuance of state bonds to finance or refinance |
| 49 | the costs of acquiring real property or the rights to real |
| 50 | property for state transportation infrastructure or to finance |
| 51 | or refinance repair and replacement of bridges, and purposes |
| 52 | incidental to such property acquisition or bridge projects, is |
| 53 | hereby authorized pursuant to s. 11(g), Art. VII of the State |
| 54 | Constitution and ss. 215.57-215.83. |
| 55 | (a) Right-of-way acquisition or transportation |
| 56 | infrastructure financed by state bonds issued under this section |
| 57 | shall first be authorized by the Legislature by an act relating |
| 58 | to appropriations or by general law and shall be issued pursuant |
| 59 | to the State Bond Act. |
| 60 | (b) Bonds issued pursuant to this section shall be secured |
| 61 | by the full faith and credit of the state. An amount sufficient |
| 62 | to pay debt service on the bonds shall be transferred from the |
| 63 | General Revenue Fund to the State Transportation Trust Fund. |
| 64 | (c) The Department of Transportation shall request the |
| 65 | Division of Bond Finance to issue the state bonds authorized by |
| 66 | this section pursuant to the State Bond Act. The Department of |
| 67 | Transportation shall certify that the projects to be financed |
| 68 | will comply with the requirements of s. 339.135(4)(b) and (c) |
| 69 | and (5). |
| 70 | (d) The total amount of bonds to be issued under this |
| 71 | section shall be limited by the debt service requirements of the |
| 72 | bonds issued and outstanding. The debt service requirements of |
| 73 | the bonds issued and outstanding under this section shall not |
| 74 | exceed $500 million in any fiscal year. |
| 75 | (e) The term of the bonds shall not exceed 30 years. The |
| 76 | Division of Bond Finance, in consultation with the Department of |
| 77 | Transportation, shall determine the term of each bond series, |
| 78 | and the timing of each issuance, based on factors including |
| 79 | interest rates, market conditions, and sufficiency of debt |
| 80 | service. |
| 81 | (3) Bond proceeds available pursuant to this section shall |
| 82 | be transferred to the State Transportation Trust Fund and may be |
| 83 | used to finance the following Department of Transportation |
| 84 | infrastructure activities or projects: |
| 85 | (a) Acquisition of right-of-way and other real property |
| 86 | for highway, rail, public transportation, airport, and seaport |
| 87 | projects; or |
| 88 | (b) Bridge Repair and Replacement Program projects. |
| 89 | Section 2. This act shall take effect on the effective |
| 90 | date of the amendment to the State Constitution proposed by |
| 91 | House Joint Resolution 7093 or a similar joint resolution having |
| 92 | substantially the same specific intent and purpose, if that |
| 93 | amendment is approved by the electors at the general election to |
| 94 | be held in November 2006. If the amendment to the State |
| 95 | Constitution proposed by such joint resolution is rejected by |
| 96 | the voters, this act shall be null and void. |