Senate Bill sb2880

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007                                  SB 2880

    By Senator Margolis





    35-1093B-07

  1                      A bill to be entitled

  2         An act relating to transportation funding;

  3         amending s. 212.055, F.S.; authorizing a

  4         charter county or consolidated local government

  5         to adopt a transportation system surtax by

  6         referendum; redesignating the transit surtax as

  7         the "transportation surtax"; amending s.

  8         320.072, F.S.; requiring a specified portion of

  9         the additional fee imposed on certain motor

10         vehicle transactions to be used to fund the

11         County Incentive Grant Program; amending s.

12         336.025, F.S.; authorizing a local government

13         to issue bonds secured by revenue from local

14         option fuel taxes more than once per year;

15         amending s. 337.11, F.S.; requiring the

16         Department of Transportation to advertise for

17         bids on all construction contracts of less than

18         a specified amount under certain circumstances;

19         amending s. 337.14, F.S.; authorizing the

20         department to waive qualification requirements

21         for contractors under certain circumstances;

22         amending s. 337.18, F.S.; authorizing the

23         department to reduce bond requirements under

24         certain circumstances; providing for the use of

25         incremental surety bonds under certain

26         circumstances; amending s. 338.2275, F.S.;

27         removing a provision setting a minimum amount

28         of bonds that may be issued to fund approved

29         turnpike projects; removing a provision

30         authorizing certain projects to be included in

31         future tentative work programs; amending s.

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1         339.2819, F.S.; revising the percentage of

 2         matching funds provided under the

 3         Transportation Regional Incentive Program;

 4         providing exceptions to project requirements

 5         for certain local projects; providing an

 6         effective date.

 7  

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

 9  

10         Section 1.  Subsection (1) of section 212.055, Florida

11  Statutes, is amended to read:

12         212.055  Discretionary sales surtaxes; legislative

13  intent; authorization and use of proceeds.--It is the

14  legislative intent that any authorization for imposition of a

15  discretionary sales surtax shall be published in the Florida

16  Statutes as a subsection of this section, irrespective of the

17  duration of the levy.  Each enactment shall specify the types

18  of counties authorized to levy; the rate or rates which may be

19  imposed; the maximum length of time the surtax may be imposed,

20  if any; the procedure which must be followed to secure voter

21  approval, if required; the purpose for which the proceeds may

22  be expended; and such other requirements as the Legislature

23  may provide.  Taxable transactions and administrative

24  procedures shall be as provided in s. 212.054.

25         (1)  CHARTER COUNTY TRANSPORTATION TRANSIT SYSTEM

26  SURTAX.--

27         (a)  Each charter county which adopted a charter prior

28  to January 1, 1984, and each county the government of which is

29  consolidated with that of one or more municipalities, may levy

30  a discretionary sales surtax, subject to approval by a

31  majority vote of the electorate of the county or by a charter

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1  amendment approved by a majority vote of the electorate of the

 2  county.

 3         (b)  The rate shall be up to 1 percent.

 4         (c)  The proposal to adopt a discretionary sales surtax

 5  as provided in this subsection and to create a trust fund

 6  within the county accounts shall be placed on the ballot in

 7  accordance with law at a time to be set at the discretion of

 8  the governing body.

 9         (d)  Proceeds from the surtax shall be applied to as

10  many or as few of the uses enumerated below in whatever

11  combination the county commission deems appropriate:

12         1.  Deposited by the county in the trust fund and shall

13  be used for the purposes of development, construction,

14  equipment, maintenance, operation, supportive services,

15  including a countywide bus system, and related costs of a

16  fixed guideway rapid transit system;

17         2.  Remitted by the governing body of the county to a

18  transit an expressway or transportation authority created by

19  law to be used, at the discretion of such authority, for the

20  development, construction, operation, or maintenance of roads

21  or bridges in the county, for the operation and maintenance of

22  a bus system, for the payment of principal and interest on

23  existing bonds issued for the construction of such roads or

24  bridges, and, upon approval by the county commission, such

25  proceeds may be pledged for bonds issued to refinance existing

26  bonds or new bonds issued for the construction of such roads

27  or bridges;

28         3.  Used by the charter county for the development,

29  construction, operation, and maintenance of roads and bridges

30  in the county; for the expansion, operation, and maintenance

31  of bus and fixed guideway systems; and for the payment of

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1  principal and interest on bonds issued for the construction of

 2  fixed guideway rapid transit systems, bus systems, roads, or

 3  bridges; and such proceeds may be pledged by the governing

 4  body of the county for bonds issued to refinance existing

 5  bonds or new bonds issued for the construction of such fixed

 6  guideway rapid transit systems, bus systems, roads, or bridges

 7  and no more than 25 percent used for nontransit uses; and

 8         4.  Used by the charter county for the planning,

 9  development, construction, operation, and maintenance of roads

10  and bridges in the county; for the planning, development,

11  expansion, operation, and maintenance of bus and fixed

12  guideway systems; and for the payment of principal and

13  interest on bonds issued for the construction of fixed

14  guideway rapid transit systems, bus systems, roads, or

15  bridges; and such proceeds may be pledged by the governing

16  body of the county for bonds issued to refinance existing

17  bonds or new bonds issued for the construction of such fixed

18  guideway rapid transit systems, bus systems, roads, or

19  bridges. Pursuant to an interlocal agreement entered into

20  pursuant to chapter 163, the governing body of the charter

21  county may distribute proceeds from the tax to a municipality,

22  or an expressway or transportation authority created by law to

23  be expended for the purpose authorized by this paragraph.

24         Section 2.  Subsection (4) of section 320.072, Florida

25  Statutes, is amended to read:

26         320.072  Additional fee imposed on certain motor

27  vehicle registration transactions.--

28         (4)  A tax collector or other duly authorized agent of

29  the department shall promptly remit all moneys collected

30  pursuant to this section, less any refunds granted pursuant to

31  subsection (3), to the department to be deposited. The

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1  department shall deposit such moneys as they are received into

 2  the State Transportation Trust Fund. Thirty percent of all

 3  such moneys shall be used to fund the County Incentive Grant

 4  Program provided in s. 339.2817.

 5         Section 3.  Paragraph (c) of subsection (1) of section

 6  336.025, Florida Statutes, is amended to read:

 7         336.025  County transportation system; levy of local

 8  option fuel tax on motor fuel and diesel fuel.--

 9         (1)

10         (c)  Local governments may use the services of the

11  Division of Bond Finance of the State Board of Administration

12  pursuant to the State Bond Act to issue any bonds through the

13  provisions of this section and may pledge the revenues from

14  local option fuel taxes to secure the payment of the bonds. In

15  no case may a jurisdiction issue bonds pursuant to this

16  section more frequently than once per year. Counties and

17  municipalities may join together for the issuance of bonds

18  issued pursuant to this section.

19         Section 4.  Paragraph (a) of subsection (3) of section

20  337.11, Florida Statutes, is amended to read:

21         337.11  Contracting authority of department; bids;

22  emergency repairs, supplemental agreements, and change orders;

23  combined design and construction contracts; progress payments;

24  records; requirements of vehicle registration.--

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

26  less, and any construction contract of less than $500,000 for

27  which the department has waived prequalification under s.

28  337.14, the department shall advertise for bids in a newspaper

29  having general circulation in the county where the proposed

30  work is located.  Publication shall be at least once a week

31  for no less than 2 consecutive weeks, and the first

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




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

 2  which bids are to be received.

 3         Section 5.  Subsection (1) of section 337.14, Florida

 4  Statutes, is amended to read:

 5         337.14  Application for qualification; certificate of

 6  qualification; restrictions; request for hearing.--

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

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

 9  department proposes to let must first be certified by the

10  department as qualified pursuant to this section and rules of

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

12  qualification of persons to bid on construction contracts in

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

14  to the equipment, past record, experience, financial

15  resources, and organizational personnel of the applicant

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

17  person seeks certification. The department is authorized to

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

19  qualified to bid or the aggregate total dollar volume of

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

21  one time.  Each applicant seeking qualification to bid on

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

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

24  department may prescribe, setting forth detailed information

25  as required on the application.  Each application for

26  certification shall be accompanied by the latest annual

27  financial statement of the applicant completed within the last

28  12 months. If the annual financial statement shows the

29  financial condition of the applicant more than 4 months prior

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

31  department, then an interim financial statement must also be

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1  submitted.  The interim financial statement must cover the

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

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

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

 5  department.  Each required annual or interim financial

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

 7  certified public accountant or a public accountant approved by

 8  the department.  The information required by this subsection

 9  is confidential and exempt from the provisions of s.

10  119.07(1).  The department shall act upon the application for

11  qualification within 30 days after the department determines

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

13  requirements of this subsection for projects having a contract

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

15  the project is of a noncritical nature and the waiver will not

16  endanger public health, safety, or property.

17         Section 6.  Paragraph (a) of subsection (1) of section

18  337.18, Florida Statutes, is amended to read:

19         337.18  Surety bonds for construction or maintenance

20  contracts; requirement with respect to contract award; bond

21  requirements; defaults; damage assessments.--

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

23  successful bidder in an amount equal to the awarded contract

24  price. However, with regard to a multiyear maintenance

25  contract, the department may choose to allow for incremental

26  annual contract bonds that cumulatively total the full,

27  awarded multiyear contract price. For a project for which the

28  contract price is $250,000 $150,000 or less, the department

29  may waive the requirement for all or a portion of a surety

30  bond if it determines the project is of a noncritical nature

31  and nonperformance will not endanger public health, safety, or

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1  property. If the secretary or his or her designee determines

 2  that it is in the best interest of the department to reduce

 3  the bonding requirement for a project and that doing so will

 4  not endanger public health, safety, or property, the

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

 6  amount equal to the awarded contract price if the project has

 7  a contract price of $250 million or more. In place of a surety

 8  bond that covers the total amount of the contract, the

 9  department may set a surety bond amount that is a portion of

10  the total contract price and provide an alternate means of

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

12  covered by the surety bond. The department also may provide

13  for incremental surety bonding and provide an alternate means

14  of security for the balance of the contract amount which is

15  not covered by the surety bond. Such alternative means of

16  security may include letters of credit, United States bonds

17  and notes, parent company guaranties, and cash collateral. The

18  department may require alternate means of security if a surety

19  bond is waived. The surety on such bond shall be a surety

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

21  shall be payable to the department and conditioned for the

22  prompt, faithful, and efficient performance of the contract

23  according to plans and specifications and within the time

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

25  defined in s. 713.01 furnishing labor, material, equipment,

26  and supplies for work provided in the contract; however,

27  whenever an improvement, demolition, or removal contract price

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

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

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

31  money order. The department shall adopt rules to implement

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1  this subsection. Such rules shall include provisions under

 2  which the department shall refuse to accept bonds on contracts

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

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

 5  which the surety previously furnished a bond.

 6         Section 7.  Subsection (1) of section 338.2275, Florida

 7  Statutes, is amended to read:

 8         338.2275  Approved turnpike projects.--

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

10  work program that contains the turnpike project constitutes

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

12  the State Constitution. Turnpike projects approved to be

13  included in future tentative work programs include, but are

14  not limited to, projects contained in the 2003-2004 tentative

15  work program. A maximum of $4.5 billion of bonds may be issued

16  to fund approved turnpike projects.

17         Section 8.  Subsection (2) and paragraph (a) of

18  subsection (4) of section 339.2819, Florida Statutes, are

19  amended to read:

20         339.2819  Transportation Regional Incentive Program.--

21         (2)  The percentage of matching funds provided from the

22  Transportation Regional Incentive Program shall be 50 percent

23  of project costs, or up to 50 percent of the nonfederal share

24  of the eligible project cost for a public transportation

25  facility project.

26         (4)(a)  Projects to be funded with Transportation

27  Regional Incentive Program funds shall, at a minimum:

28         1.  Support those transportation facilities that serve

29  national, statewide, or regional functions and function as an

30  integrated regional transportation system.

31  

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




 1         2.  Be identified in the capital improvements element

 2  of a comprehensive plan that has been determined to be in

 3  compliance with part II of chapter 163, after July 1, 2005, or

 4  to implement a long-term concurrency management system adopted

 5  by a local government in accordance with s. 163.3180(9).

 6  Further, the project shall be in compliance with local

 7  government comprehensive plan policies relative to corridor

 8  management.

 9         3.  Be consistent with the Strategic Intermodal System

10  Plan developed under s. 339.64.

11         4.  Have a commitment for local, regional, or private

12  financial matching funds as a percentage of the overall

13  project cost.

14  

15  Notwithstanding the provisions of this paragraph, projects

16  funded with these funds which are not part of the Strategic

17  Intermodal System or interstate highway system, or those

18  projects that are part of these systems and located in a rural

19  area of critical economic concern, need meet only the local

20  level-of-service requirements established by the local

21  government in accordance with chapter 163.

22         Section 9.  This act shall take effect July 1, 2007.

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2880
    35-1093B-07




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

 2                          SENATE SUMMARY

 3    Authorizes a charter county to adopt a local
      transportation surtax by referendum. Redesignates the
 4    term "transit surtax" as "transportation surcharge".
      Requires that a specified portion of the additional fee
 5    imposed on certain motor vehicle transactions be used to
      fund the County Incentive Grant Program. Authorizes local
 6    governments to issue bonds secured by revenue from local
      option fuel taxes more than once per year. Requires the
 7    Department of Transportation to advertise for bids on all
      construction contracts below a specified amount under
 8    certain circumstances. Authorizes the department to waive
      qualification requirements for contractors under certain
 9    circumstances. Provides the department with discretion to
      reduce bond requirements under certain circumstances.
10    Provides for the use of incremental surety bonds under
      certain circumstances. Requires that a specified percent
11    of matching funds be provided from the Transportation
      Regional Incentive Program. Provides exceptions to
12    project requirements for certain projects.

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  11

CODING: Words stricken are deletions; words underlined are additions.