| 1 | A bill to be entitled |
| 2 | An act relating to transportation facilities; amending s. |
| 3 | 334.30, F.S.; revising criteria for evaluation by the |
| 4 | Department of Transportation of certain public-private |
| 5 | project proposals; providing that a determination that a |
| 6 | project is in the public's best interest be evidenced by a |
| 7 | business case prepared under specified provisions and |
| 8 | submitted to the Council on Efficient Government; deleting |
| 9 | a provision authorizing the department to lease existing |
| 10 | toll facilities through public-private partnerships; |
| 11 | providing an effective date. |
| 12 |
|
| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
|
| 15 | Section 1. Paragraph (a) of subsection (1) and subsection |
| 16 | (2) of section 334.30, Florida Statutes, are amended to read: |
| 17 | 334.30 Public-private transportation facilities.-The |
| 18 | Legislature finds and declares that there is a public need for |
| 19 | the rapid construction of safe and efficient transportation |
| 20 | facilities for the purpose of traveling within the state, and |
| 21 | that it is in the public's interest to provide for the |
| 22 | construction of additional safe, convenient, and economical |
| 23 | transportation facilities. |
| 24 | (1) The department may receive or solicit proposals and, |
| 25 | with legislative approval as evidenced by approval of the |
| 26 | project in the department's work program, enter into agreements |
| 27 | with private entities, or consortia thereof, for the building, |
| 28 | operation, ownership, or financing of transportation facilities. |
| 29 | The department may advance projects programmed in the adopted 5- |
| 30 | year work program or projects increasing transportation capacity |
| 31 | and greater than $500 million in the 10-year Strategic |
| 32 | Intermodal Plan using funds provided by public-private |
| 33 | partnerships or private entities to be reimbursed from |
| 34 | department funds for the project as programmed in the adopted |
| 35 | work program. The department shall by rule establish an |
| 36 | application fee for the submission of unsolicited proposals |
| 37 | under this section. The fee must be sufficient to pay the costs |
| 38 | of evaluating the proposals. The department may engage the |
| 39 | services of private consultants to assist in the evaluation. |
| 40 | Before approval, the department must determine that the proposed |
| 41 | project: |
| 42 | (a) Is in the public's best interest as evidenced by a |
| 43 | business case prepared under s. 287.0574 and submitted to the |
| 44 | Council on Efficient Government; |
| 45 |
|
| 46 | The department shall ensure that all reasonable costs to the |
| 47 | state, related to transportation facilities that are not part of |
| 48 | the State Highway System, are borne by the private entity. The |
| 49 | department shall also ensure that all reasonable costs to the |
| 50 | state and substantially affected local governments and |
| 51 | utilities, related to the private transportation facility, are |
| 52 | borne by the private entity for transportation facilities that |
| 53 | are owned by private entities. For projects on the State Highway |
| 54 | System, the department may use state resources to participate in |
| 55 | funding and financing the project as provided for under the |
| 56 | department's enabling legislation. Because the Legislature |
| 57 | recognizes that private entities or consortia thereof would |
| 58 | perform a governmental or public purpose or function when they |
| 59 | enter into agreements with the department to design, build, |
| 60 | operate, own, or finance transportation facilities, the |
| 61 | transportation facilities, including leasehold interests |
| 62 | thereof, are exempt from ad valorem taxes as provided in chapter |
| 63 | 196 to the extent property is owned by the state or other |
| 64 | government entity, and from intangible taxes as provided in |
| 65 | chapter 199 and special assessments of the state, any city, |
| 66 | town, county, special district, political subdivision of the |
| 67 | state, or any other governmental entity. The private entities or |
| 68 | consortia thereof are exempt from tax imposed by chapter 201 on |
| 69 | all documents or obligations to pay money which arise out of the |
| 70 | agreements to design, build, operate, own, lease, or finance |
| 71 | transportation facilities. Any private entities or consortia |
| 72 | thereof must pay any applicable corporate taxes as provided in |
| 73 | chapters 220 and 221, and unemployment compensation taxes as |
| 74 | provided in chapter 443, and sales and use tax as provided in |
| 75 | chapter 212 shall be applicable. The private entities or |
| 76 | consortia thereof must also register and collect the tax imposed |
| 77 | by chapter 212 on all their direct sales and leases that are |
| 78 | subject to tax under chapter 212. The agreement between the |
| 79 | private entity or consortia thereof and the department |
| 80 | establishing a transportation facility under this chapter |
| 81 | constitutes documentation sufficient to claim any exemption |
| 82 | under this section. |
| 83 | (2) Agreements entered into pursuant to this section may |
| 84 | authorize the private entity to impose tolls or fares for the |
| 85 | use of the facility. The following provisions shall apply to |
| 86 | such agreements: |
| 87 | (a) With the exception of the Florida Turnpike System, the |
| 88 | department may lease existing toll facilities through public- |
| 89 | private partnerships. The public-private partnership agreement |
| 90 | must ensure that the transportation facility is properly |
| 91 | operated, maintained, and renewed in accordance with department |
| 92 | standards. |
| 93 | (a)(b) The department may develop new toll facilities or |
| 94 | increase capacity on existing toll facilities through public- |
| 95 | private partnerships. The public-private partnership agreement |
| 96 | must ensure that the toll facility is properly operated, |
| 97 | maintained, and renewed in accordance with department standards. |
| 98 | (b)(c) Any toll revenues shall be regulated by the |
| 99 | department pursuant to s. 338.165(3). The regulations governing |
| 100 | the future increase of toll or fare revenues shall be included |
| 101 | in the public-private partnership agreement. |
| 102 | (c)(d) The department shall provide the analysis required |
| 103 | in subparagraph (6)(e)2. to the Legislative Budget Commission |
| 104 | created pursuant to s. 11.90 for review and approval prior to |
| 105 | awarding a contract on a lease of an existing toll facility. |
| 106 | (d)(e) The department shall include provisions in the |
| 107 | public-private partnership agreement that ensure a negotiated |
| 108 | portion of revenues from tolled or fare generating projects are |
| 109 | returned to the department over the life of the public-private |
| 110 | partnership agreement. In the case of a lease of an existing |
| 111 | toll facility, the department shall receive a portion of funds |
| 112 | upon closing on the agreements and shall also include provisions |
| 113 | in the agreement to receive payment of a portion of excess |
| 114 | revenues over the life of the public-private partnership. |
| 115 | (e)(f) The private entity shall provide an investment |
| 116 | grade traffic and revenue study prepared by an internationally |
| 117 | recognized traffic and revenue expert that is accepted by the |
| 118 | national bond rating agencies. The private entity shall also |
| 119 | provide a finance plan that identifies the project cost, |
| 120 | revenues by source, financing, major assumptions, internal rate |
| 121 | of return on private investments, and whether any government |
| 122 | funds are assumed to deliver a cost-feasible project, and a |
| 123 | total cash flow analysis beginning with implementation of the |
| 124 | project and extending for the term of the agreement. |
| 125 | Section 2. This act shall take effect July 1, 2010. |