HB 7075

1
A bill to be entitled
2An act relating to transportation funding; amending s.
3201.15, F.S.; revising amount of funds from certain taxes
4distributed to the State Transportation Trust Fund;
5directing the Department of Transportation to ensure that
6certain projects are not impacted; amending s. 215.615,
7F.S.; revising the Department of Transportation's
8requirement to share certain costs of fixed-guideway
9system projects; revising criteria for an interlocal
10agreement to establish bond financing for fixed-guideway
11system projects; revising provisions for sources of funds
12for the payment of bonds; amending s. 337.11, F.S.;
13providing that certain construction projects be advertised
14for bids in local newspapers; amending s. 337.14, F.S.;
15authorizing the department to waive specified
16prequalification requirements for certain transportation
17projects under certain conditions; amending s. 337.18,
18F.S.; revising surety bond requirements for construction
19or maintenance contracts; providing for incremental annual
20surety bonds for multiyear maintenance contracts under
21certain conditions; revising the threshold for
22transportation projects eligible for a waiver of surety
23bond requirements; authorizing the department to provide
24for phased surety bond coverage or an alternate means of
25security for a portion of the contract amount in lieu of
26the surety bond; amending s. 338.2275, F.S.; raising the
27limit on outstanding bonds to fund turnpike projects;
28providing an effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  Paragraph (d) of subsection (1) of section
33201.15, Florida Statutes, is amended to read:
34     201.15  Distribution of taxes collected.--All taxes
35collected under this chapter shall be distributed as follows and
36shall be subject to the service charge imposed in s. 215.20(1),
37except that such service charge shall not be levied against any
38portion of taxes pledged to debt service on bonds to the extent
39that the amount of the service charge is required to pay any
40amounts relating to the bonds:
41     (1)  Sixty-two and sixty-three hundredths percent of the
42remaining taxes collected under this chapter shall be used for
43the following purposes:
44     (d)  The remainder of the moneys distributed under this
45subsection, after the required payments under paragraphs (a),
46(b), and (c), shall be paid into the State Treasury to the
47credit of:
48     1.  The State Transportation Trust Fund in the Department
49of Transportation in the amount of $441.75 $541.75 million in
50each fiscal year, to be paid in quarterly installments and used
51for the following specified purposes, notwithstanding any other
52law to the contrary:
53     a.  For the purposes of capital funding for the New Starts
54Transit Program, authorized by Title 49, U.S.C. s. 5309 and
55specified in s. 341.051, 10 percent of these funds;
56     b.  For the purposes of the Small County Outreach Program
57specified in s. 339.2818, 5 percent of these funds;
58     c.  For the purposes of the Strategic Intermodal System
59specified in ss. 339.61, 339.62, 339.63, and 339.64, 75 percent
60of these funds after allocating for the New Starts Transit
61Program described in sub-subparagraph a. and the Small County
62Outreach Program described in sub-subparagraph b.; and
63     d.  For the purposes of the Transportation Regional
64Incentive Program specified in s. 339.2819, 25 percent of these
65funds after allocating for the New Starts Transit Program
66described in sub-subparagraph a. and the Small County Outreach
67Program described in sub-subparagraph b.
68     e.  Notwithstanding sub-subparagraphs a.-d. and s.
69339.135(4)(a)1., in fiscal year 2007-2008 only, the Department
70of Transportation shall ensure, to the maximum extent
71practicable, that projects that have been advertised for
72contract lettings for the fiscal year beginning July 1, 2007,
73are not impacted by revised funding levels provided in this
74subsection.
75     2.  The Water Protection and Sustainability Program Trust
76Fund in the Department of Environmental Protection in the amount
77of $100 million in each fiscal year, to be paid in quarterly
78installments and used as required by s. 403.890.
79     3.  The Public Education Capital Outlay and Debt Service
80Trust Fund in the Department of Education in the amount of $105
81million in each fiscal year, to be paid in monthly installments
82with $75 million used to fund the Classrooms for Kids Program
83created in s. 1013.735, and $30 million to be used to fund the
84High Growth County District Capital Outlay Assistance Grant
85Program created in s. 1013.738. If required, new facilities
86constructed under the Classrooms for Kids Program must meet the
87requirements of s. 1013.372.
88     4.  The Grants and Donations Trust Fund in the Department
89of Community Affairs in the amount of $3.25 million in each
90fiscal year to be paid in monthly installments, with $3 million
91to be used to fund technical assistance to local governments and
92school boards on the requirements and implementation of this act
93and $250,000 to be used to fund the Century Commission
94established in s. 163.3247.
95
96Moneys distributed pursuant to this paragraph may not be pledged
97for debt service unless such pledge is approved by referendum of
98the voters.
99     Section 2.  Subsection (1) of section 215.615, Florida
100Statutes, is amended to read:
101     215.615  Fixed-guideway transportation systems funding.--
102     (1)  The issuance of revenue bonds by the Division of Bond
103Finance, on behalf of the Department of Transportation, pursuant
104to s. 11, Art. VII of the State Constitution, is authorized,
105pursuant to the State Bond Act, to finance or refinance fixed
106capital expenditures for fixed-guideway transportation systems,
107as defined in s. 341.031, including facilities appurtenant
108thereto, costs of issuance, and other amounts relating to such
109financing or refinancing. Such revenue bonds shall be matched on
110a 50-50 basis with funds from sources other than revenues of the
111Department of Transportation, in a manner acceptable to the
112Department of Transportation. The Division of Bond Finance is
113authorized to consider innovative financing techniques that
114technologies which may include, but are not limited to,
115innovative bidding and structures of potential financings
116findings that may result in negotiated transactions.
117     (a)  The department and any participating commuter rail
118authority or regional transportation authority established under
119chapter 343, local governments, or local governments
120collectively by interlocal agreement having jurisdiction of a
121fixed-guideway transportation system may enter into an
122interlocal agreement to promote the efficient and cost-effective
123financing or refinancing of fixed-guideway transportation system
124projects by revenue bonds issued pursuant to this subsection.
125The terms of such interlocal agreements shall include provisions
126for the Department of Transportation to request the issuance of
127the bonds on behalf of the parties; shall provide that the
128department's share may be up to 50 percent of the eligible
129project cost, which may include a share of the annual each party
130to the agreement is contractually liable for an equal share of
131funding an amount equal to the debt service requirements of such
132bonds; and shall include any other terms, provisions, or
133covenants necessary to the making of and full performance under
134such interlocal agreement. Repayments made to the department
135under any interlocal agreement are not pledged to the repayment
136of bonds issued hereunder, and failure of the local governmental
137authority to make such payment shall not affect the obligation
138of the department to pay debt service on the bonds.
139     (b)  Revenue bonds issued pursuant to this subsection shall
140not constitute a general obligation of, or a pledge of the full
141faith and credit of, the State of Florida. Bonds issued pursuant
142to this section shall be payable from funds available pursuant
143to s. 206.46(3), or other funds available to the project,
144subject to annual appropriation. The amount of revenues
145available for debt service shall never exceed a maximum of 2
146percent of all state revenues deposited into the State
147Transportation Trust Fund.
148     (c)  The projects to be financed or refinanced with the
149proceeds of the revenue bonds issued hereunder are designated as
150state fixed capital outlay projects for purposes of s. 11(d),
151Art. VII of the State Constitution, and the specific projects to
152be financed or refinanced shall be determined by the Department
153of Transportation in accordance with state law and
154appropriations from the State Transportation Trust Fund. Each
155project to be financed with the proceeds of the bonds issued
156pursuant to this subsection must first be approved by the
157Legislature by an act of general law.
158     (d)  Any complaint for validation of bonds issued pursuant
159to this section shall be filed in the circuit court of the
160county where the seat of state government is situated, the
161notice required to be published by s. 75.06 shall be published
162only in the county where the complaint is filed, and the
163complaint and order of the circuit court shall be served only on
164the state attorney of the circuit in which the action is
165pending.
166     (e)  The state does hereby covenant with holders of such
167revenue bonds or other instruments of indebtedness issued
168hereunder, that it will not repeal or impair or amend these
169provisions in any manner that will materially and adversely
170affect the rights of such holders as long as bonds authorized by
171this subsection are outstanding.
172     (f)  This subsection supersedes any inconsistent provisions
173in existing law.
174
175Notwithstanding this subsection, the lien of revenue bonds
176issued pursuant to this subsection on moneys deposited into the
177State Transportation Trust Fund shall be subordinate to the lien
178on such moneys of bonds issued under ss. 215.605, 320.20, and
179215.616, and any pledge of such moneys to pay operating and
180maintenance expenses under s. 206.46(5) and chapter 348, as may
181be amended.
182     Section 3.  Paragraph (a) of subsection (3) of section
183337.11, Florida Statutes, is amended to read:
184     337.11  Contracting authority of department; bids;
185emergency repairs, supplemental agreements, and change orders;
186combined design and construction contracts; progress payments;
187records; requirements of vehicle registration.--
188     (3)(a)  On all construction contracts of $250,000 or less,
189as well as any construction contract of less than $500,000 for
190which the department has waived prequalification pursuant to s.
191337.14, the department shall advertise for bids in a newspaper
192having general circulation in the county where the proposed work
193is located. Publication shall be at least once a week for no
194less than 2 consecutive weeks, and the first publication shall
195be no less than 14 days prior to the date on which bids are to
196be received.
197     Section 4.  Subsection (1) of section 337.14, Florida
198Statutes, is amended to read:
199     337.14  Application for qualification; certificate of
200qualification; restrictions; request for hearing.--
201     (1)  Any person desiring to bid for the performance of any
202construction contract in excess of $250,000 which the department
203proposes to let must first be certified by the department as
204qualified pursuant to this section and rules of the department.
205The rules of the department shall address the qualification of
206persons to bid on construction contracts in excess of $250,000
207and shall include requirements with respect to the equipment,
208past record, experience, financial resources, and organizational
209personnel of the applicant necessary to perform the specific
210class of work for which the person seeks certification. The
211department is authorized to limit the dollar amount of any
212contract upon which a person is qualified to bid or the
213aggregate total dollar volume of contracts such person is
214allowed to have under contract at any one time. Each applicant
215seeking qualification to bid on construction contracts in excess
216of $250,000 shall furnish the department a statement under oath,
217on such forms as the department may prescribe, setting forth
218detailed information as required on the application. Each
219application for certification shall be accompanied by the latest
220annual financial statement of the applicant completed within the
221last 12 months. If the annual financial statement shows the
222financial condition of the applicant more than 4 months prior to
223the date on which the application is received by the department,
224then an interim financial statement must also be submitted. The
225interim financial statement must cover the period from the end
226date of the annual statement and must show the financial
227condition of the applicant no more than 4 months prior to the
228date on which the application is received by the department.
229Each required annual or interim financial statement must be
230audited and accompanied by the opinion of a certified public
231accountant or a public accountant approved by the department.
232The information required by this subsection is confidential and
233exempt from the provisions of s. 119.07(1). The department shall
234act upon the application for qualification within 30 days after
235the department determines that the application is complete. The
236department may waive the requirements of this subsection for
237projects having a contract price of $500,000 or less if the
238department determines that the project is of a noncritical
239nature and noncompliance with the subsection will not endanger
240public health, safety, or property.
241     Section 5.  Paragraph (a) of subsection (1) of section
242337.18, Florida Statutes, is amended to read:
243     337.18  Surety bonds for construction or maintenance
244contracts; requirement with respect to contract award; bond
245requirements; defaults; damage assessments.--
246     (1)(a)  A surety bond shall be required of the successful
247bidder in an amount equal to the awarded contract price.
248However, the department may choose, in its discretion and
249applicable only to multiyear maintenance contracts, to allow for
250incremental annual contract bonds that cumulatively total the
251full, awarded multiyear contract price. For a project for which
252the contract price is $250,000 $150,000 or less, the department
253may waive the requirement for all or a portion of a surety bond
254if it determines the project is of a noncritical nature and
255nonperformance will not endanger public health, safety, or
256property. If the Secretary of Transportation or the secretary's
257designee determines that it is in the best interests of the
258department to do so and that a reduced bonding requirement for a
259project will not endanger public health, safety, or property,
260the department may waive the requirement of a surety bond in an
261amount equal to the awarded contract price for a project having
262a contract price of $250 million or more, and, in its place, may
263set a surety bond amount that is a portion of the total contract
264price and provide an alternate means of security for the balance
265of the contract amount which is not covered by the surety bond
266or provide for incremental surety bonding and provide an
267alternate means of security for the balance of the contract
268amount which is not covered by the surety bond. Such alternate
269means of security may include letters of credit, United States
270bonds and notes, parent company guarantees, and cash collateral.
271The department may require alternate means of security if a
272surety bond is waived. The surety on such bond shall be a surety
273company authorized to do business in the state. All bonds shall
274be payable to the department and conditioned for the prompt,
275faithful, and efficient performance of the contract according to
276plans and specifications and within the time period specified,
277and for the prompt payment of all persons defined in s. 713.01
278furnishing labor, material, equipment, and supplies for work
279provided in the contract; however, whenever an improvement,
280demolition, or removal contract price is $25,000 or less, the
281security may, in the discretion of the bidder, be in the form of
282a cashier's check, bank money order of any state or national
283bank, certified check, or postal money order. The department
284shall adopt rules to implement this subsection. Such rules shall
285include provisions under which the department shall refuse to
286accept bonds on contracts when a surety wrongfully fails or
287refuses to settle or provide a defense for claims or actions
288arising under a contract for which the surety previously
289furnished a bond.
290     Section 6.  Subsection (1) of section 338.2275, Florida
291Statutes, is amended to read:
292     338.2275  Approved turnpike projects.--
293     (1)  Legislative approval of the department's tentative
294work program that contains the turnpike project constitutes
295approval to issue bonds as required by s. 11(f), Art. VII of the
296State Constitution. No more than $10 Turnpike projects approved
297to be included in future tentative work programs include, but
298are not limited to, projects contained in the 2003-2004
299tentative work program. A maximum of $4.5 billion of bonds may
300be outstanding issued to fund approved turnpike projects.
301     Section 7.  This act shall take effect July 1, 2007.


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