Florida Senate - 2012 COMMITTEE AMENDMENT Bill No. SB 576 Barcode 123866 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/13/2012 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Community Affairs (Bennett) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 287.05712, Florida Statutes, is created 6 to read: 7 287.05712 Public-private partnerships.— 8 (1) DEFINITIONS.—As used in this section, the term: 9 (a) “Affected local jurisdiction” means any county or 10 municipality in which all or a portion of a qualifying project 11 is located. 12 (b) “Appropriating body” means the body responsible for 13 appropriating or authorizing funding to pay for a qualifying 14 project. 15 (c) “Develop” or “development” means to plan, design, 16 develop, finance, lease, acquire, install, construct, or expand. 17 (d) “Fees” means fees or other charges imposed by the 18 private entity of a qualifying project for use of all or a 19 portion of such qualifying project pursuant to a comprehensive 20 agreement. 21 (e) “Lease payment” means any form of payment, including a 22 land lease, by a public entity to the private entity for the use 23 of a qualifying project. 24 (f) “Material default” means any default by the private 25 entity in the performance of its duties which jeopardizes 26 adequate service to the public from a qualifying project. 27 (g) “Operate” means to finance, maintain, improve, equip, 28 modify, repair, or operate. 29 (h) “Private entity” means any natural person, corporation, 30 general partnership, limited liability company, limited 31 partnership, joint venture, business trust, public benefit 32 corporation, nonprofit entity, or other private business entity. 33 (i) “Proposal” means a detailed proposal accepted by a 34 responsible public entity beyond a conceptual level of review at 35 which issues such as fixing costs, payment schedules, financing, 36 deliverables, and project schedule are defined. 37 (j) “Qualifying project” means any: 38 1. Public-purpose facility or project, including, but not 39 limited to, a public school building and any functionally 40 related and subordinate facility, including any stadium or other 41 facility primarily used for school events. 42 2. Building or facility that meets a public purpose and is 43 developed or operated by or for any public entity. 44 3. Improvements, including equipment, of buildings to be 45 principally used by a public entity. 46 4. Water, wastewater, or surface water management facility 47 and other related infrastructure. 48 (k) “Responsible public entity” means any county, 49 municipality, or other political subdivision of the state; any 50 public body politic and corporate; or any regional entity that 51 serves a public purpose and has authority to develop or operate 52 a qualifying project. 53 (l) “Revenues” means all revenues, income, earnings, user 54 fees, lease payments, or other service payments relating to the 55 development or operation of a qualifying project, including, but 56 not limited to, money received as grants or otherwise from the 57 Federal Government, from any public entity, or from any agency 58 or instrumentality of the foregoing in aid of a qualifying 59 project. 60 (m) “Service contract” means a contract entered into 61 between a public entity and the private entity. 62 (n) “Service payments” means payments to the private entity 63 of a qualifying project pursuant to a service contract. 64 (o) “Water or wastewater management facility” means a 65 project for the treatment, storage, disposal, or distribution of 66 water or wastewater. 67 (2) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds 68 that there is a public need for the construction or upgrade of 69 facilities that are used predominantly for public purposes and 70 that it is in the public’s interest to provide for the 71 construction or upgrade of such facilities. 72 (a) The Legislature also finds that: 73 1. There is a public need for timely and cost-effective 74 acquisition, design, construction, improvement, renovation, 75 expansion, equipping, maintenance, operation, implementation, or 76 installation of public projects, including educational 77 facilities, water or wastewater management facilities and 78 infrastructure, technology infrastructure, and any other public 79 infrastructure and government facilities within the state which 80 serve a public need and purpose, and that such public need may 81 not be wholly satisfied by existing procurement methods. 82 2. There are inadequate resources to develop new 83 educational facilities, water or wastewater management 84 facilities and infrastructure, technology infrastructure, and 85 other public infrastructure and government facilities for the 86 benefit of residents of this state, and that it has been 87 demonstrated that public-private partnerships can meet these 88 needs by improving the schedule for delivery, lowering the cost, 89 and providing other benefits to the public. 90 3. There are state and federal tax incentives that promote 91 partnerships between public and private entities to develop and 92 operate qualifying projects. 93 4. A procurement under this section serves the public 94 purpose of this section if such action facilitates the timely 95 development or operation of qualifying projects. 96 (b) The Legislature declares that it is the intent of this 97 section to encourage investment in the state by private 98 entities, to facilitate various bond financing mechanisms, 99 private capital, and other funding sources for the development 100 and operation of qualifying projects, including expansion and 101 acceleration of such financing to meet the public need, and to 102 provide the greatest possible flexibility to public and private 103 entities contracting for the provision of public services. 104 (3) ADOPTION OF GUIDELINES.— 105 (a) Before requesting or considering a proposal for a 106 qualifying project, a responsible public entity shall adopt and 107 make publicly available guidelines that enable the public entity 108 to comply with this section. Such guidelines must be reasonable, 109 encourage competition, and guide the selection of projects under 110 the purview of the public entity. 111 (b) The guidelines must include: 112 1. Opportunities for competition through public notice and 113 the availability of representatives of the responsible public 114 entity to meet with private entities considering a proposal. 115 2. Reasonable criteria for choosing among competing 116 proposals. 117 3. Suggested timelines for selecting proposals and 118 negotiating an interim or comprehensive agreement. 119 4. Authorization for accelerated selection and review and 120 documentation timelines for proposals involving a qualifying 121 project that the responsible public entity deems a priority. 122 5. Procedures for financial review and analysis which, at a 123 minimum, include a cost-benefit analysis, an assessment of 124 opportunity cost, and consideration of the results of all 125 studies and analyses related to the proposed qualifying project. 126 The procedures must also include requirements for disclosing 127 such analysis to the appropriating body for review before the 128 execution of an interim or comprehensive agreement. 129 6. Consideration of the nonfinancial benefits of a proposed 130 qualifying project. 131 7. A mechanism for the appropriating body to review a 132 proposed interim or comprehensive agreement before execution. 133 8. Establishment of criteria for the creation and 134 responsibilities of a public-private partnership oversight 135 committee that includes members representing the responsible 136 public entity and the appropriating body. Such criteria must 137 include the scope, costs, and duration of the qualifying 138 project, as well as whether the project involves or affects 139 multiple public entities. If formed, the oversight committee 140 shall be an advisory committee that reviews the terms of a 141 proposed interim or comprehensive agreement. 142 9. Analysis of the adequacy of the information released 143 when seeking competing proposals and providing for the 144 enhancement of that information, if deemed necessary, to 145 encourage competition. 146 10. Establishment of criteria, key decision points, and 147 approvals required to ensure that the responsible public entity 148 considers the extent of competition before selecting proposals 149 and negotiating an interim or comprehensive agreement. 150 11. The publishing and posting of public notice of a 151 private entity’s request for approval of a qualifying project, 152 including: 153 a. Specific information and documentation to be released 154 regarding the nature, timing, and scope of the project. 155 b. A reasonable time period, as determined by the 156 responsible public entity, of at least 45 days, which encourages 157 competition and public-private partnerships in accordance with 158 the goals of this section, during which time the responsible 159 public entity is to receive competing proposals. 160 c. A requirement for advertising the public notice and 161 posting the notice on the Internet. 162 12. A requirement that the responsible public entity engage 163 the services of qualified professionals, which may include an 164 architect, professional engineer, or certified public 165 accountant, not otherwise employed by the responsible public 166 entity, to provide an independent analysis regarding the 167 specifics, advantages, disadvantages, and long-term and short 168 term costs of a request by a private entity for approval of a 169 qualifying project, unless the governing body of the public 170 entity determines that such analysis should be performed by 171 employees of the public entity. 172 (4) PROCUREMENT PROCEDURES.—The responsible public entity 173 may receive or solicit proposals and, with the approval of the 174 Legislature, or other appropriate local government appropriation 175 process as evidenced by approval of the project in the public 176 entity’s work program, enter into agreements with private 177 entities, or consortia thereof, for the building, upgrade, 178 operation, ownership, or financing of facilities. 179 (a) A responsible public entity may not consider any 180 request by a private entity for approval of a qualifying project 181 until the responsible public entity has adopted, or incorporated 182 and made publicly available, in accordance with subsection (3), 183 guidelines that enable the responsible public entity to comply 184 with this section. 185 (b) By rule, ordinance, or guideline as applicable, the 186 responsible public entity shall establish an application fee for 187 the submission of unsolicited proposals under this section. The 188 fee must be sufficient to pay the costs of evaluating the 189 proposal. The responsible public entity may engage the services 190 of private consultants to assist in the evaluation. 191 (c) The responsible public entity may request proposals 192 from private entities for public-private projects or, if the 193 public entity receives an unsolicited proposal, the public 194 entity shall publish a notice in the Florida Administrative 195 Weekly and a newspaper of general circulation at least once a 196 week for 2 weeks stating that the public entity has received the 197 proposal and will accept other proposals for the same project 198 for 60 days after the initial date of publication. A copy of the 199 notice must be mailed to each local government in the affected 200 area. 201 (d) A responsible public entity that is a school board or a 202 county or municipality may enter into an interim or 203 comprehensive agreement only with the approval of the local 204 governing body. 205 (e) Before approval, the responsible public entity must 206 determine that the proposed project: 207 1. Is in the public’s best interest; 208 2. Does not require the use of state funds unless the 209 project is for a facility that is owned by the responsible 210 public entity or for a facility for which ownership will be 211 conveyed to the responsible public entity; 212 3. Has adequate safeguards in place to ensure that 213 additional costs or service disruptions would not be imposed on 214 the public and residents of the state in the event of default or 215 cancellation of the agreement by the public entity; 216 4. Has adequate safeguards in place to ensure that the 217 responsible public entity or the private entity has the 218 opportunity to add capacity to the proposed project and other 219 facilities serving similar predominantly public purposes; and 220 5. Would be owned by the responsible public entity upon 221 completion or termination of the agreement and upon payment of 222 all amounts financed. 223 (f) Technical studies and independent analyses must comply 224 with the following: 225 1. A private entity must provide an investment-grade 226 technical study prepared by a nationally recognized expert who 227 is accepted by the national bond rating agencies. The private 228 entity must also provide a finance plan, consistent with 229 subsection (11), which identifies the project cost, revenues by 230 source, financing, major assumptions, internal rate of return on 231 private investments, and whether any government funds are 232 assumed to deliver a cost-feasible project, and a total cash 233 flow analysis beginning with implementation of the project and 234 extending for the term of the agreement. 235 2. In evaluating a request, including, but not limited to, 236 the private entity’s technical study, the responsible public 237 entity may rely upon internal staff reports prepared by 238 personnel familiar with the operation of similar facilities or 239 the advice of external advisors or consultants having relevant 240 experience. 241 (g) The responsible public entity must ensure that all 242 reasonable costs to the state related to facilities which are 243 not to be transferred to the responsible public entity are borne 244 by the private entity. The responsible public entity must also 245 ensure that all reasonable costs to the state and to 246 substantially affected local governments and utilities which are 247 related to the private facility are borne by the private entity 248 for facilities that are owned by the private entity. For 249 projects owned by the responsible public entity, the public 250 entity may use state resources to assist with funding and 251 financing the project as provided under the public entity’s 252 enabling legislation. 253 (5) PROJECT APPROVAL REQUIREMENTS.—A request by a private 254 entity for approval of a qualifying project must be accompanied 255 by the following material and information, unless waived by the 256 responsible public entity: 257 (a) A topographic map with a scale of 1:2,000 or other 258 appropriate scale indicating the location of the qualifying 259 project. 260 (b) A description of the qualifying project, including the 261 conceptual design of such facilities or a conceptual plan for 262 the provision of services, and a schedule for the initiation of 263 and completion of the qualifying project which includes the 264 proposed major responsibilities and a timeline for activities to 265 be performed by both the public and private entity. 266 (c) A statement setting forth the method by which the 267 private entity proposes to secure any necessary property 268 interests required for the qualifying project. 269 (d) Information relating to current plans for the 270 development of facilities or technology infrastructure to be 271 used by a public entity which is similar to the qualifying 272 project being proposed by the private entity, if any, of each 273 affected local jurisdiction. 274 (e) A list of all permits and approvals required for the 275 qualifying project from local, state, or federal agencies and a 276 projected schedule for obtaining such permits and approvals. 277 (f) A list of public water or wastewater management 278 facilities, if any, which will be crossed by the qualifying 279 project and a statement of the plans of the private entity to 280 accommodate such crossings. 281 (g) A statement setting forth the private entity’s general 282 plans for financing the qualifying project, including the 283 sources of the private entity’s funds and identification of any 284 dedicated revenue source or proposed debt or equity investment 285 on the behalf of the private entity. 286 (h) The names and addresses of persons who may be contacted 287 for further information concerning the request. 288 (i) User fees, lease payments, and other service payments 289 over the term of an interim or comprehensive agreement, and the 290 methodology and circumstances for changes to such user fees, 291 lease payments, and other service payments over time. 292 (j) Any additional material and information that the 293 responsible public entity may reasonably request. 294 (6) PROJECT QUALIFICATION AND PROCESS.— 295 (a) Public-private partnerships shall be qualified by the 296 responsible public entity as part of the procurement process 297 outlined in the procurement documents if such process ensures 298 that the private entity meets at least the minimum standards 299 contained in the responsible public entity’s guidelines for 300 qualifying professional architectural, engineering, and 301 contracting services before submitting a proposal under the 302 procurement. 303 (b) The responsible public entity must ensure that 304 procurement documents include provisions for the private 305 entity’s performance and payment of subcontractors, including, 306 but not limited to, surety bonds, letters of credit, parent 307 company guarantees, and lender and equity partner guarantees. 308 For those components of the qualifying project which involve 309 construction, performance and payment bonds are required and are 310 subject to the recordation, notice, suit limitation, and other 311 requirements of s. 255.05. The responsible public entity shall 312 balance the structure of the security package for the public 313 private partnership which ensures performance and payment of 314 subcontractors with the cost of the security to ensure the most 315 efficient pricing. The procurement documents must contain 316 contract provisions addressing termination, default, and exit 317 transition obligations of the private entity. 318 (c) After the public notification period has expired, the 319 responsible public entity shall rank the proposals in order of 320 preference. In ranking the proposals, the responsible public 321 entity may consider factors that include, but need not be 322 limited to, professional qualifications, general business terms, 323 innovative engineering or cost-reduction terms, finance plans, 324 and the need for state funds in order to deliver the project. If 325 the public entity is not satisfied with the results of the 326 negotiations, the public entity may terminate negotiations with 327 the proposer. If these negotiations are unsuccessful, the 328 responsible public entity may go to the second-ranked and lower 329 ranked firms, in order, using this same procedure. If only one 330 proposal is received, the responsible public entity may 331 negotiate in good faith and, if the public entity is not 332 satisfied with the results of the negotiations, the public 333 entity may terminate negotiations with the proposer. 334 Notwithstanding this subsection, the responsible public entity 335 may reject all proposals at any point in the process up to 336 execution of a contract with the proposer. 337 (d) The responsible public entity shall perform an 338 independent analysis, or other analysis in accordance with 339 paragraph (4)(f), of the proposed public-private partnership 340 which demonstrates the cost-effectiveness and overall public 341 benefit at the following times: 342 1. Before the procurement process; and 343 2. Before awarding the contract. 344 (e) The responsible public entity may approve the 345 development or operation of an educational facility, a water or 346 wastewater management facility and related infrastructure, 347 technology infrastructure or other public infrastructure, or a 348 governmental facility needed by the public entity as a 349 qualifying project, or the design or equipping of a qualifying 350 project so developed or operated, if: 351 1. There is a public need for or benefit derived from a 352 project of the type the private entity proposes as a qualifying 353 project. 354 2. The estimated cost of the qualifying project is 355 reasonable in relation to similar facilities. 356 3. The private entity’s plans will result in the timely 357 acquisition, design, construction, improvement, renovation, 358 expansion, equipping, maintenance, or operation of the 359 qualifying project. 360 (f) The responsible public entity may charge a reasonable 361 fee to cover the costs of processing, reviewing, and evaluating 362 the request, including, but not limited to, reasonable attorney 363 fees and fees for financial, technical, and other necessary 364 advisors or consultants. 365 (g) Upon approval of a qualifying project, the responsible 366 public entity shall establish a date for the commencement of 367 activities related to the qualifying project. The responsible 368 public entity may extend such date. 369 (h) Approval of a qualifying project by the responsible 370 public entity is subject to entering into a comprehensive 371 agreement with the private entity. 372 (7) NOTICE TO AFFECTED LOCAL JURISDICTIONS.— 373 (a) Any private entity requesting approval from, or 374 submitting a proposal to, a responsible public entity must 375 notify each affected local jurisdiction by furnishing a copy of 376 its request or proposal to each affected local jurisdiction. 377 (b) Each affected local jurisdiction that is not a 378 responsible public entity for the respective qualifying project 379 shall, within 60 days after receiving such notice, submit any 380 comments it may have in writing to the responsible public entity 381 and indicate whether the facility is compatible with the local 382 comprehensive plan, the local infrastructure development plans, 383 the capital improvements budget, or other governmental spending 384 plan. Such comments shall be given consideration by the 385 responsible public entity before entering a comprehensive 386 agreement with a private entity. 387 (8) INTERIM AGREEMENT.—Before, or in connection with, the 388 negotiation of a comprehensive agreement, the responsible public 389 entity may enter into an interim agreement with the private 390 entity proposing the development or operation of the qualifying 391 project. An interim agreement does not obligate the responsible 392 public entity to enter into a comprehensive agreement. An 393 interim agreement must be limited to provisions that: 394 (a) Authorize the private entity to commence activities for 395 which it may be compensated related to the proposed qualifying 396 project, including, but not limited to, project planning and 397 development, design and engineering, environmental analysis and 398 mitigation, surveys, or other activities concerning any part of 399 the proposed qualifying project, and ascertaining the 400 availability of financing for the proposed facility or 401 facilities. 402 (b) Establish the process and timing of the negotiation of 403 the comprehensive agreement. 404 (c) Contain any other provisions related to any aspect of 405 the development or operation of a qualifying project which the 406 responsible public entity and the private entity deem 407 appropriate. 408 (9) COMPREHENSIVE AGREEMENT.— 409 (a) Before developing or operating the qualifying project, 410 the private entity shall enter into a comprehensive agreement 411 with the responsible public entity. The comprehensive agreement 412 shall provide for: 413 1. Delivery of maintenance, performance, and payment bonds 414 and letters of credit in connection with the development or 415 operation of the qualifying project in the forms and amounts 416 satisfactory to the responsible public entity. For those 417 components of the qualifying project which involve construction, 418 the form and amount of the bonds must comply with s. 255.05. 419 2. Review of plans and specifications for the qualifying 420 project by the responsible public entity and approval by the 421 responsible public entity if the plans and specifications 422 conform to standards acceptable to the responsible public 423 entity. This subparagraph does not require the private entity to 424 complete the design of a qualifying project before the execution 425 of a comprehensive agreement. 426 3. Inspection of the qualifying project by the responsible 427 public entity to ensure that the operator’s activities are 428 acceptable to the public entity in accordance with the 429 comprehensive agreement. 430 4. Maintenance of a policy or policies of public liability 431 insurance, copies of which shall be filed with the responsible 432 public entity accompanied by proofs of coverage, or self 433 insurance, each in the form and amount satisfactory to the 434 responsible public entity and reasonably sufficient to ensure 435 coverage of tort liability to the public and employees and to 436 enable the continued operation of the qualifying project. 437 5. Monitoring the practices of the private entity by the 438 responsible public entity to ensure that the qualifying project 439 is properly maintained. 440 6. Reimbursement to be paid to the responsible public 441 entity for services provided by the responsible public entity. 442 7. Filing of appropriate financial statements on a periodic 443 basis. 444 8. Procedures governing the rights and responsibilities of 445 the responsible public entity and the private entity in the 446 event the comprehensive agreement is terminated or there is a 447 material default by the private entity. Such procedures must 448 include conditions governing assumption of the duties and 449 responsibilities of the private entity by the responsible public 450 entity and the transfer or purchase of property or other 451 interests of the private entity by the responsible public 452 entity. 453 9. Fees, lease payments, or service payments as may be 454 established by agreement of the parties. A copy of any service 455 contract shall be filed with the responsible public entity. In 456 negotiating user fees, the parties shall establish fees that are 457 the same for persons using the facility under like conditions 458 and that will not materially discourage use of the qualifying 459 project. The execution of the comprehensive agreement or any 460 amendment thereto constitutes conclusive evidence that the fees, 461 lease payments, or service payments provided for comply with 462 this section. Fees or lease payments established in the 463 comprehensive agreement as a source of revenues may be in 464 addition to, or in lieu of, service payments. 465 10. Duties of the private entity, including terms and 466 conditions that the responsible public entity determine serve 467 the public purpose of this section. 468 (b) The comprehensive agreement may include: 469 1. An agreement by the responsible public entity to make 470 grants or loans to the private entity from amounts received from 471 the federal, state, or local government or any agency or 472 instrumentality thereof. 473 2. Provisions under which each entity agrees to provide 474 notice of default and cure rights for the benefit of the other 475 entity, including, but not limited to, provisions regarding 476 unavoidable delays. 477 3. Provisions whereby the authority and duties of the 478 private entity under this section will cease and the qualifying 479 project be dedicated to the responsible public entity or, if the 480 qualifying project was initially dedicated by an affected local 481 jurisdiction, to such affected local jurisdiction for public 482 use. 483 (10) FEES.— 484 (a) Agreements entered into pursuant to this section may 485 authorize the private entity to impose fees for the use of the 486 facility. The following provisions apply to such agreements: 487 1. The public-private partnership agreement must ensure 488 that the facility is properly operated, maintained, and renewed 489 in accordance with the responsible public entity’s standards. 490 2. The responsible public entity may develop new facilities 491 or increase capacity in existing facilities through public 492 private partnerships. 493 3. The responsible public entity may lease existing fee 494 for-use facilities through public-private partnerships. 495 4. Any revenues must be regulated by the responsible public 496 entity pursuant to guidelines or rules established pursuant to 497 subsection (3). The regulations governing the future increase of 498 fees must be included in the public-private partnership 499 agreement. 500 (b) The responsible public entity shall include provisions 501 in the public-private partnership agreement which ensure that a 502 negotiated portion of revenues from fee-generating projects are 503 returned to the public entity over the life of the agreement. In 504 the case of a lease of an existing facility, the responsible 505 public entity shall receive a portion of funds upon closing on 506 the agreements and also a portion of excess revenues over the 507 life of the public-private partnership. 508 (11) FINANCING.— 509 (a) A private entity may enter into private-source 510 financing agreements between financing sources and the private 511 entity. All financing agreements and any liens on the property 512 or facility must be paid in full at the applicable closing that 513 transfers ownership of a facility to a responsible public 514 entity. 515 (b) The responsible public entity may lend funds from its 516 trust fund to private entities that construct projects 517 containing facilities that are approved under this section. To 518 be eligible, a private entity must comply with s. 215.97 and 519 must provide an indication from a nationally recognized rating 520 agency that the senior bonds for the project will be investment 521 grade, or must provide credit support, such as a letter of 522 credit or other means acceptable to the responsible public 523 entity, to ensure that the loans will be fully repaid. The 524 state’s liability for the funding of a facility is limited to 525 the amount approved for that specific facility in the 526 responsible public entity’s 5-year work program adopted pursuant 527 to the responsible public entity’s rules, or otherwise limited 528 to 15 percent of the responsible public entity’s total funding 529 for similar projects in a given fiscal year. 530 (c) The responsible public entity may use innovative 531 finance techniques associated with a public-private partnership 532 under this section, including, but not limited to, federal loans 533 as provided in Titles 23 and 49 C.F.R., commercial bank loans, 534 and hedges against inflation from commercial banks or other 535 private sources. A responsible public entity may use the model 536 financing agreement provided pursuant to s. 489.145(6) for its 537 financing of a facility owned by a responsible public entity. A 538 financing agreement may not require the responsible public 539 entity to indemnify the financing source, subject the 540 responsible public entity’s facility to liens in violation of s. 541 11.066(5), or secure financing by a responsible public entity 542 with a pledge of security interest, and any such provisions are 543 void. 544 (12) POWERS AND DUTIES OF THE PRIVATE ENTITY.— 545 (a) The private entity shall: 546 1. Develop or operate the qualifying project in a manner 547 that is acceptable to the responsible public entity in 548 accordance with the provisions of an interim or comprehensive 549 agreement. 550 2. Maintain, or provide by contract for the maintenance or 551 upgrade of, the qualifying project if required by an interim or 552 comprehensive agreement. 553 3. Cooperate with the responsible public entity in making 554 best efforts to establish any interconnection with the 555 qualifying project requested by the responsible public entity. 556 4. Comply with an interim or comprehensive agreement and 557 any lease or service contract. 558 (b) Each private facility constructed pursuant to this 559 section must comply with all requirements of federal, state, and 560 local laws; state, regional, and local comprehensive plans; 561 responsible public entity rules, procedures, and standards for 562 facilities; and any other conditions that the responsible public 563 entity determine to be in the public’s best interest. 564 (c) The responsible public entity may exercise any power 565 possessed by it, including eminent domain, to facilitate the 566 development and construction of projects pursuant to this 567 section. The responsible public entity may provide services to 568 the private entity. Agreements for maintenance and other 569 services entered into pursuant to this section must provide for 570 full reimbursement for services rendered for projects. 571 (d) A private entity of a qualifying project may provide 572 additional services for the qualifying project to public or 573 private entities other than the responsible public entity if the 574 provision of additional service does not impair the private 575 entity’s ability to meet its commitments to the public entity 576 pursuant to an interim or comprehensive agreement. 577 (13) EXPIRATION OR TERMINATION OF AGREEMENTS.—Upon 578 expiration or termination of an interim or comprehensive 579 agreement, the responsible public entity may use revenues to pay 580 current operation and maintenance costs of the qualifying 581 project, as well as compensation to the responsible public 582 entity for its services in developing and operating the 583 qualifying project. Except as provided otherwise in the interim 584 or comprehensive agreement, the right to receive such payment, 585 if any, is considered just compensation for the qualifying 586 project in the event termination is due to the default of the 587 private entity; however, this right does not affect the right of 588 the responsible public entity to terminate, with cause, an 589 interim or comprehensive agreement and to exercise any other 590 rights and remedies that may be available to it at law or in 591 equity. The full faith and credit of the responsible public 592 entity may not be pledged to secure any financing of the private 593 entity by the election to take over the qualifying project. 594 Assumption of the development or operation of the qualifying 595 project does not obligate the responsible public entity to pay 596 any obligation of the private entity from sources other than 597 revenues. 598 (14) SOVEREIGN IMMUNITY.—This section does not waive the 599 sovereign immunity of the state, any responsible public entity, 600 any affected local jurisdiction, or any officer or employee 601 thereof with respect to participation in, or approval of, all or 602 any part of the qualifying project or its operation, including, 603 but not limited to, interconnection of the qualifying project 604 with any other infrastructure or project. Counties and 605 municipalities in which a qualifying project is located possess 606 sovereign immunity with respect to the project’s design, 607 construction, and operation. 608 (15) CONSTRUCTION.—This section shall be liberally 609 construed to effectuate the purposes thereof. 610 (a) This section does not affect the authority of the 611 responsible public entity to take action that would impact the 612 debt capacity of the state. 613 (b) This section does not limit the state or its agencies 614 in the acquisition, design, or construction of public projects 615 pursuant to other statutory authority. 616 (c) Except as otherwise provided in this section, this 617 section does not amend existing laws by granting additional 618 powers to, or further restricting, local governmental entities 619 from regulating and entering into cooperative arrangements with 620 the private sector for the planning, construction, and operation 621 of facilities. 622 Section 2. This act shall take effect July 1, 2012. 623 624 ================= T I T L E A M E N D M E N T ================ 625 And the title is amended as follows: 626 Delete everything before the enacting clause 627 and insert: 628 A bill to be entitled 629 An act relating to public-private partnerships; 630 creating s. 287.05712, F.S.; providing definitions; 631 providing legislative findings and intent relating to 632 the construction or upgrade of facilities by private 633 entities which are used predominately for a public 634 purpose; requiring public entities to develop and 635 adopt guidelines governing procedures and criteria for 636 the selection of projects and public-private 637 agreements; providing procurement procedures; 638 providing project-approval requirements; providing 639 project qualifications and process; providing for 640 notice to affected local jurisdictions; providing for 641 interim and comprehensive agreements between the 642 public and private entities; providing for use fees; 643 providing for private financing requirements; 644 providing powers and duties for private entities; 645 providing for expiration or termination of agreements; 646 providing for the applicability of sovereign immunity 647 for public entities with respect to qualified 648 projects; providing for construction of the act; 649 providing an effective date.