Florida Senate - 2013                 CS for CS for CS for SB 84
       By the Committees on Appropriations; Governmental Oversight and
       Accountability; and Community Affairs; and Senators Diaz de la
       Portilla and Bean
       576-04938-13                                            201384c3
    1                        A bill to be entitled                      
    2         An act relating to public-private partnerships;
    3         amending s. 154.11, F.S.; revising the powers of a
    4         public health trust; amending s. 255.60, F.S.;
    5         authorizing certain public entities to contract for
    6         public service works with not-for-profit
    7         organizations; revising eligibility and contract
    8         requirements for not-for-profit organizations
    9         contracting with certain public entities; creating s.
   10         287.05712, F.S.; providing definitions; providing
   11         legislative findings and intent relating to the
   12         construction or improvement by private entities of
   13         facilities used predominantly for a public purpose;
   14         creating a task force to establish specified
   15         guidelines; providing procurement procedures;
   16         providing requirements for project approval; providing
   17         project qualifications and process; providing for
   18         notice to affected local jurisdictions; providing for
   19         interim and comprehensive agreements between a public
   20         and a private entity; providing for use fees;
   21         providing for financing sources for certain projects
   22         by a private entity; providing powers and duties of
   23         private entities; providing for expiration or
   24         termination of agreements; providing for the
   25         applicability of sovereign immunity for public
   26         entities with respect to qualified projects; providing
   27         for construction of the act; creating s. 336.71, F.S.;
   28         authorizing counties to enter into public-private
   29         partnership agreements for construction of roads under
   30         certain circumstances; providing bid exemption for
   31         such projects under certain circumstances; providing
   32         for a public notice and meeting; providing
   33         applicability; providing an effective date.
   35  Be It Enacted by the Legislature of the State of Florida:
   37         Section 1. Paragraph (f) of subsection (1) of section
   38  154.11, Florida Statutes, is amended to read:
   39         154.11 Powers of board of trustees.—
   40         (1) The board of trustees of each public health trust shall
   41  be deemed to exercise a public and essential governmental
   42  function of both the state and the county and in furtherance
   43  thereof it shall, subject to limitation by the governing body of
   44  the county in which such board is located, have all of the
   45  powers necessary or convenient to carry out the operation and
   46  governance of designated health care facilities, including, but
   47  without limiting the generality of, the foregoing:
   48         (f) To lease, either as lessee or lessor, or rent for any
   49  number of years and upon any terms and conditions real property,
   50  except that the board shall not lease or rent, as lessor, any
   51  real property other than office space controlled by the Public
   52  Health Trust, except in accordance with the requirements of s.
   53  125.35 [F. S. 1973].
   54         Section 2. Section 255.60, Florida Statutes, is amended to
   55  read:
   56         255.60 Special contracts with charitable not-for-profit
   57  youth organizations.—The state, or the governing body of any
   58  political subdivision of the state, or a public-private
   59  partnership is authorized, but not required, to contract for
   60  public service work with a not-for-profit organization such as
   61  highway and park maintenance, notwithstanding competitive sealed
   62  bid procedures required under this chapter, or chapter 287, or
   63  any municipal or county charter, upon compliance with this
   64  section.
   65         (1) The contractor or supplier must meet the following
   66  conditions:
   67         (a) The contractor or supplier must be a not-for-profit
   68  corporation incorporated under chapter 617 and in good standing.
   69         (b) The contractor or supplier must hold exempt status
   70  under s. 501(a) of the Internal Revenue Code, as an organization
   71  described in s. 501(c)(3) of the Internal Revenue Code.
   72         (c) For youth organizations, the corporate charter of the
   73  contractor or supplier must state that the corporation is
   74  organized as a charitable youth organization exclusively for at
   75  risk youths enrolled in a work-study program.
   76         (d) Administrative salaries and benefits for any such
   77  corporation shall not exceed 15 percent of gross revenues. Field
   78  supervisors shall not be considered administrative overhead.
   79         (2) The contract, if approved by authorized agency
   80  personnel of the state, or the governing body of a political
   81  subdivision, or the public-private partnership, as appropriate,
   82  must provide at a minimum that:
   83         (a) For youth organizations, labor shall be performed
   84  exclusively by at-risk youth and their direct supervisors; and
   85  shall not be subject to subcontracting.
   86         (b) For the preservation, maintenance, and improvement of
   87  park land, the property must be at least 20 acres with
   88  contiguous permanent public facilities that are capable of
   89  seating at least 5,000 persons.
   90         (c) For public education buildings, the building must be at
   91  least 90,000 square feet.
   92         (d)(b) Payment must be production-based.
   93         (e)(c) The contract will terminate should the contractor or
   94  supplier no longer qualify under subsection (1).
   95         (f)(d) The supplier or contractor has instituted a drug
   96  free workplace program substantially in compliance with the
   97  provisions of s. 287.087.
   98         (g)(e) The contractor or supplier agrees to be subject to
   99  review and audit at the discretion of the Auditor General in
  100  order to ensure that the contractor or supplier has complied
  101  with this section.
  102         (3) A No contract under this section may not exceed the
  103  annual sum of $250,000.
  104         (4) Should a court find that a contract purporting to have
  105  been entered into pursuant to this section does not so qualify,
  106  the court may order that the contract be terminated on
  107  reasonable notice to the parties. The court shall not require
  108  disgorgement of any moneys earned for goods or services actually
  109  delivered or supplied.
  110         (5) Nothing in this section shall excuse any person from
  111  compliance with ss. 287.132-287.134.
  112         Section 3. Section 287.05712, Florida Statutes, is created
  113  to read:
  114         287.05712Public-private partnerships.—
  115         (1) DEFINITIONS.—As used in this section, the term:
  116         (a) “Affected local jurisdiction” means a county,
  117  municipality, or special district in which all or a portion of a
  118  qualifying project is located.
  119         (b) “Develop” means to plan, design, finance, lease,
  120  acquire, install, construct, or expand.
  121         (c) “Fees” means charges imposed by the private entity of a
  122  qualifying project for use of all or a portion of such
  123  qualifying project pursuant to a comprehensive agreement.
  124         (d) “Lease payment” means any form of payment, including a
  125  land lease, by a public entity to the private entity of a
  126  qualifying project for the use of the project.
  127         (e) “Material default” means nonperformance of duties by
  128  the private entity of a qualifying project which jeopardizes
  129  adequate service to the public from the project.
  130         (f) “Operate” means to finance, maintain, improve, equip,
  131  modify, or repair.
  132         (g) “Private entity” means any natural person, corporation,
  133  general partnership, limited liability company, limited
  134  partnership, joint venture, business trust, public benefit
  135  corporation, nonprofit entity, or other private business entity.
  136         (h) “Proposal” means a plan for a qualifying project with
  137  detail beyond a conceptual level for which terms such as fixing
  138  costs, payment schedules, financing, deliverables, and the
  139  project schedule are defined.
  140         (i) “Qualifying project” means:
  141         1. A facility or project that serves a public purpose,
  142  including, but not limited to, any ferry or mass transit
  143  facility, vehicle parking facility, airport or seaport facility,
  144  rail facility or project, fuel supply facility, oil or gas
  145  pipeline, medical or nursing care facility, recreational
  146  facility, sporting or cultural facility, or educational facility
  147  or other building or facility that is used or will be used by a
  148  public educational institution, or any other public facility or
  149  infrastructure that is used or will be used by the public at
  150  large or in support of an accepted public purpose or activity;
  151         2. An improvement, including equipment, of a building that
  152  will be principally used by a public entity, the public at
  153  large, or that supports a service delivery system in the public
  154  sector;
  155         3. A water, wastewater, or surface water management
  156  facility or other related infrastructure; or
  157         4. Notwithstanding any provision of this section, for
  158  projects that involve a facility owned or operated by the
  159  governing board of a county, district, or municipal hospital or
  160  health care system, only those projects that the governing board
  161  designates as qualifying projects pursuant to this section.
  162         (j) “Responsible public entity” means a county,
  163  municipality, school board, or any other political subdivision
  164  of the state; a public body corporate and politic; or a regional
  165  entity that serves a public purpose and is authorized to develop
  166  or operate a qualifying project.
  167         (k) “Revenues” means the income, earnings, user fees, lease
  168  payments, or other service payments relating to the development
  169  or operation of a qualifying project, including, but not limited
  170  to, money received as grants or otherwise from the Federal
  171  Government, a public entity, or an agency or instrumentality
  172  thereof in aid of the qualifying project.
  173         (l) “Service contract” means a contract between a public
  174  entity and the private entity which defines the terms of the
  175  services to be provided with respect to a qualifying project.
  176         (2) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds
  177  that there is a public need for the construction or upgrade of
  178  facilities that are used predominantly for public purposes and
  179  that it is in the public’s interest to provide for the
  180  construction or upgrade of such facilities.
  181         (a) The Legislature also finds that:
  182         1. There is a public need for timely and cost-effective
  183  acquisition, design, construction, improvement, renovation,
  184  expansion, equipping, maintenance, operation, implementation, or
  185  installation of projects serving a public purpose, including
  186  educational facilities, transportation facilities, water or
  187  wastewater management facilities and infrastructure, technology
  188  infrastructure, roads, highways, bridges, and other public
  189  infrastructure and government facilities within the state which
  190  serve a public need and purpose, and that such public need may
  191  not be wholly satisfied by existing procurement methods.
  192         2. There are inadequate resources to develop new
  193  educational facilities, transportation facilities, water or
  194  wastewater management facilities and infrastructure, technology
  195  infrastructure, roads, highways, bridges, and other public
  196  infrastructure and government facilities for the benefit of
  197  residents of this state, and that a public-private partnership
  198  has demonstrated that it can meet the needs by improving the
  199  schedule for delivery, lowering the cost, and providing other
  200  benefits to the public.
  201         3. There may be state and federal tax incentives that
  202  promote partnerships between public and private entities to
  203  develop and operate qualifying projects.
  204         4. A procurement under this section serves the public
  205  purpose of this section if such procurement facilitates the
  206  timely development or operation of a qualifying project.
  207         (b) It is the intent of the Legislature to encourage
  208  investment in the state by private entities; to facilitate
  209  various bond financing mechanisms, private capital, and other
  210  funding sources for the development and operation of qualifying
  211  projects, including expansion and acceleration of such financing
  212  to meet the public need; and to provide the greatest possible
  213  flexibility to public and private entities contracting for the
  214  provision of public services.
  216         (a) There is created the Partnership for Public Facilities
  217  and Infrastructure Act Guidelines Task Force for the purpose of
  218  recommending guidelines for the Legislature to consider for
  219  purposes of creating a uniform process for establishing public
  220  private partnerships, including the types of factors responsible
  221  public entities should review and consider when processing
  222  requests for public-private partnership projects pursuant to
  223  this section.
  224         (b) The task force shall be composed of seven members as
  225  follows:
  226         1. The secretary of the Department of Management Services
  227  or his or her designee, who shall serve as chair of the task
  228  force.
  229         2. Six members appointed by the Governor, as follows:
  230         a. One county government official.
  231         b. One municipal government official.
  232         c. One district school board member.
  233         d. Three representatives of the business community.
  234         (c) Task force members must be appointed by July 31, 2013.
  235  By August 31, 2013, the task force shall meet to establish
  236  procedures for the conduct of its business and to elect a vice
  237  chair. The task force shall meet at the call of the chair. A
  238  majority of the members of the task force constitutes a quorum,
  239  and a quorum is necessary for the purpose of voting on any
  240  action or recommendation of the task force. All meetings shall
  241  be held in Tallahassee unless otherwise decided by the task
  242  force. No more than two meetings may be held in a location other
  243  than Tallahassee for the purpose of taking public testimony.
  244  Administrative and technical support shall be provided by the
  245  department. Task force members shall serve without compensation
  246  and are not entitled to reimbursement for per diem or travel
  247  expenses.
  248         (d) In reviewing public-private partnerships and developing
  249  recommendations, the task force must consider:
  250         1. Opportunities for competition through public notice and
  251  the availability of representatives of the responsible public
  252  entity to meet with private entities considering a proposal.
  253         2. Reasonable criteria for choosing among competing
  254  proposals.
  255         3. Suggested timelines for selecting proposals and
  256  negotiating an interim or comprehensive agreement.
  257         4. Whether an accelerated selection, review, and
  258  documentation timeline should be considered for proposals
  259  involving a qualifying project that the responsible public
  260  entity deems a priority.
  261         5. Procedures for financial review and analysis which, at a
  262  minimum, include a cost-benefit analysis, an assessment of
  263  opportunity cost, and consideration of the results of all
  264  studies and analyses related to the proposed qualifying project.
  265         6. The adequacy of the information released when seeking
  266  competing proposals and providing for the enhancement of that
  267  information, if necessary, to encourage competition.
  268         7. Current exemptions from public records and public
  269  meetings requirements, and if any changes to those exemptions
  270  are necessary or if any new exemptions should be created in
  271  order to maintain the confidentiality of financial and
  272  proprietary information received as part of an unsolicited
  273  proposal.
  274         8. Recommendations regarding the authority of the
  275  responsible public entity to engage the services of qualified
  276  professionals, which may include a Florida-registered
  277  professional or a certified public accountant, not otherwise
  278  employed by the responsible public entity, to provide an
  279  independent analysis regarding the specifics, advantages,
  280  disadvantages, and long-term and short-term costs of a request
  281  by a private entity for approval of a qualifying project, unless
  282  the governing body of the public entity determines that such
  283  analysis should be performed by employees of the public entity.
  284         (e) The task force must submit a final report of its
  285  recommendations to the Governor, the President of the Senate,
  286  and the Speaker of the House of Representatives by July 1, 2014.
  287         (f) The task force is terminated December 31, 2014. The
  288  establishment of guidelines pursuant to this section by the task
  289  force or the adoption of such guidelines by a public entity is
  290  not required for the public entity to request or receive
  291  proposals for a qualifying project or to enter into a
  292  comprehensive agreement for a qualifying project. A public
  293  entity may adopt guidelines before or after the establishment of
  294  guidelines by the task force, which may remain in effect if such
  295  guidelines are not inconsistent with the guidelines established
  296  by the task force. A guideline that is inconsistent with the
  297  guidelines of the task force must be amended as necessary to
  298  maintain consistency with the task force guidelines.
  299         (4) PROCUREMENT PROCEDURES.—A responsible public entity may
  300  receive unsolicited proposals or may solicit proposals for
  301  qualifying projects and may thereafter enter into an agreement
  302  with a private entity, or a consortium of private entities, for
  303  the building, upgrading, operating, ownership, or financing of
  304  facilities.
  305         (a) The responsible public entity may establish a
  306  reasonable application fee for the submission of an unsolicited
  307  proposal under this section. The fee must be sufficient to pay
  308  the costs of evaluating the proposal. The responsible public
  309  entity may engage the services of a private consultant to assist
  310  in the evaluation of the proposal.
  311         (b) The responsible public entity may request a proposal
  312  from private entities for a public-private project; or, if the
  313  public entity receives an unsolicited proposal for a public
  314  private project and the public entity intends to enter into a
  315  comprehensive agreement for the project described in such
  316  unsolicited proposal, the public entity shall publish notice in
  317  the Florida Administrative Register and a newspaper of general
  318  circulation at least once a week for 2 weeks stating that the
  319  public entity has received a proposal and will accept other
  320  proposals for the same project. The timeframe within which the
  321  public entity may accept other proposals shall be determined by
  322  the public entity on a project-by-project basis based upon the
  323  complexity of the project and the public benefit to be gained by
  324  allowing a longer or shorter period of time within which other
  325  proposals may be received; however, the timeframe for allowing
  326  other proposals must be at least 21 days, but no more than 120
  327  days, after publication of the notice. A copy of the notice must
  328  be mailed to each local government in the affected area.
  329         (c) A responsible public entity that is a school board may
  330  enter into a comprehensive agreement only with the approval of
  331  the local governing body.
  332         (d) Before approval, the responsible public entity must
  333  determine that the proposed project:
  334         1. Is in the public’s best interest.
  335         2. Is for a facility that is owned by the responsible
  336  public entity or for a facility for which ownership will be
  337  conveyed to the responsible public entity.
  338         3. Has adequate safeguards in place to ensure that
  339  additional costs or service disruptions are not imposed on the
  340  public in the event of material default or cancellation of the
  341  agreement by the responsible public entity.
  342         4. Has adequate safeguards in place to ensure that the
  343  responsible public entity or private entity has the opportunity
  344  to add capacity to the proposed project or to add capacity to
  345  other facilities serving similar predominantly public purposes.
  346         5. Will be owned by the responsible public entity upon
  347  completion or termination of the agreement and upon payment of
  348  the amounts financed.
  349         (e) Before signing a comprehensive agreement, the
  350  responsible public entity must consider a reasonable finance
  351  plan that is consistent with subsection (11), the project cost,
  352  revenues by source, available financing, major assumptions,
  353  internal rate of return on private investments if governmental
  354  funds are assumed in order to deliver a cost-feasible project,
  355  and the total cash-flow analysis beginning with the
  356  implementation of the project and extending for the term of the
  357  agreement.
  358         (f) In considering an unsolicited proposal, the responsible
  359  public entity may require from the private entity a technical
  360  study prepared by a nationally recognized expert with experience
  361  preparing analysis for bond rating agencies. In evaluating the
  362  technical study, the responsible public entity may rely upon
  363  internal staff reports prepared by personnel familiar with the
  364  operation of similar facilities or the advice of external
  365  advisors or consultants who have relevant experience.
  366         (5) PROJECT APPROVAL REQUIREMENTS.—An unsolicited proposal
  367  from a private entity for approval of a qualifying project must
  368  be accompanied by the following material and information unless
  369  waived by the responsible public entity:
  370         (a) A description of the qualifying project, including the
  371  conceptual design of the facilities or a conceptual plan for the
  372  provision of services, and a schedule for the initiation and
  373  completion of the qualifying project.
  374         (b) A description of the method by which the private entity
  375  proposes to secure the necessary property interests that are
  376  required for the qualifying project.
  377         (c) A description of the private entity’s general plans for
  378  financing the qualifying project, including the sources of the
  379  private entity’s funds and the identity of any dedicated revenue
  380  source or proposed debt or equity investment on behalf of the
  381  private entity.
  382         (d) The name and address of a person who may be contacted
  383  for additional information concerning the proposal.
  384         (e) The proposed user fees, lease payments, or other
  385  service payments over the term of a comprehensive agreement, and
  386  the methodology and circumstances that would allow changes to
  387  such user fees, lease payments, and service payments in the
  388  future.
  389         (f) Reasonable additional material or information requested
  390  by the responsible public entity.
  392         (a) The private entity must meet the minimum standards
  393  contained in the responsible public entity’s guidelines for
  394  qualifying professional services and contracts for traditional
  395  procurement projects.
  396         (b) The responsible public entity must ensure:
  397         1. That provision is made for the private entity’s
  398  performance and payment of subcontractors, including, but not
  399  limited to, surety bonds, letters of credit, parent company
  400  guarantees, and lender and equity partner guarantees. For the
  401  components of the qualifying project which involve construction
  402  performance and payment, bonds are required and are subject to
  403  the recordation, notice, suit limitation, and other requirements
  404  of s. 255.05.
  405         2. The most efficient pricing of the security package that
  406  provides for the performance and payment of subcontractors.
  407         3. That provision is made for the transfer of the private
  408  entity’s obligations if the comprehensive agreement is
  409  terminated or a material default occurs.
  410         (c) After the public notification period has expired in the
  411  case of an unsolicited proposal, the responsible public entity
  412  shall rank the proposals received in order of preference. In
  413  ranking the proposals, the responsible public entity may
  414  consider factors that include, but are not limited to,
  415  professional qualifications, general business terms, innovative
  416  design techniques or cost-reduction terms, and finance plans.
  417  The responsible public entity may then begin negotiations for a
  418  comprehensive agreement with the highest-ranked proposer. If the
  419  responsible public entity is not satisfied with the results of
  420  the negotiations, the responsible public entity may terminate
  421  negotiations with the highest-ranked proposer and negotiate with
  422  the second- or subsequent-ranked proposers in the order
  423  consistent with this procedure. If only one proposal is
  424  received, the responsible public entity may negotiate in good
  425  faith, and if the public entity is not satisfied with the
  426  results of the negotiations, the public entity may terminate
  427  negotiations with the proposer. Notwithstanding this paragraph,
  428  the responsible public entity may reject all proposals at any
  429  point in the process until a contract with the proposer is
  430  executed.
  431         (d) The responsible public entity shall perform an
  432  independent analysis of the proposed public-private partnership
  433  which demonstrates the cost-effectiveness and overall public
  434  benefit before the procurement process is initiated or before
  435  the contract is awarded.
  436         (e) The responsible public entity may approve the
  437  development or operation of an educational facility, a
  438  transportation facility, a water or wastewater management
  439  facility or related infrastructure, a technology infrastructure
  440  or other public infrastructure, or a government facility needed
  441  by the responsible public entity as a qualifying project, or the
  442  design or equipping of a qualifying project that is developed or
  443  operated, if:
  444         1. There is a public need for or benefit derived from a
  445  project of the type that the private entity proposes as the
  446  qualifying project.
  447         2. The estimated cost of the qualifying project is
  448  reasonable in relation to similar facilities.
  449         3. The private entity’s plans will result in the timely
  450  acquisition, design, construction, improvement, renovation,
  451  expansion, equipping, maintenance, or operation of the
  452  qualifying project.
  453         (f) The responsible public entity may charge a reasonable
  454  fee to cover the costs of processing, reviewing, and evaluating
  455  the request, including, but not limited to, reasonable attorney
  456  fees and fees for financial and technical advisors or
  457  consultants and for other necessary advisors or consultants.
  458         (g) Upon approval of a qualifying project, the responsible
  459  public entity shall establish a date for the commencement of
  460  activities related to the qualifying project. The responsible
  461  public entity may extend the commencement date.
  462         (h) Approval of a qualifying project by the responsible
  463  public entity is subject to entering into a comprehensive
  464  agreement with the private entity.
  466         (a) The responsible public entity must notify each affected
  467  local jurisdiction by furnishing a copy of the proposal to each
  468  affected local jurisdiction when considering a proposal for a
  469  qualifying project.
  470         (b) Each affected local jurisdiction that is not a
  471  responsible public entity for the respective qualifying project
  472  may, within 60 days after receiving the notice, submit written
  473  comments to the responsible public entity to indicate whether
  474  the facility is incompatible with the local comprehensive plan,
  475  the local infrastructure development plan, the capital
  476  improvements budget, any development of regional impact
  477  processes or timelines, or other governmental spending plan. The
  478  responsible public entity shall consider the comments of the
  479  affected local jurisdiction before entering into a comprehensive
  480  agreement with a private entity. If an affected local
  481  jurisdiction fails to respond to the responsible public entity
  482  within the time provided in this paragraph, such nonresponse is
  483  deemed an acknowledgement by the affected local jurisdiction
  484  that the qualifying project is compatible with the local
  485  comprehensive plan, the local infrastructure development plan,
  486  the capital improvements budget, or other governmental spending
  487  plan.
  488         (8) INTERIM AGREEMENT.—Before or in connection with the
  489  negotiation of a comprehensive agreement, the public entity may
  490  enter into an interim agreement with the private entity
  491  proposing the development or operation of the qualifying
  492  project. An interim agreement does not obligate the responsible
  493  public entity to enter into a comprehensive agreement. The
  494  interim agreement is discretionary with the parties and is not
  495  required on a qualifying project for which the parties may
  496  proceed directly to a comprehensive agreement without the need
  497  for an interim agreement. An interim agreement must be limited
  498  to provisions that:
  499         (a) Authorize the private entity to commence activities for
  500  which it may be compensated related to the proposed qualifying
  501  project, including, but not limited to, project planning and
  502  development, design, environmental analysis and mitigation,
  503  survey, other activities concerning any part of the proposed
  504  qualifying project, and ascertaining the availability of
  505  financing for the proposed facility or facilities.
  506         (b) Establish the process and timing of the negotiation of
  507  the comprehensive agreement.
  508         (c) Relate to an aspect of the development or operation of
  509  a qualifying project that the responsible public entity and the
  510  private entity deem appropriate.
  512         (a) Before developing or operating the qualifying project,
  513  the private entity must enter into a comprehensive agreement
  514  with the responsible public entity. The comprehensive agreement
  515  must provide for:
  516         1. The delivery of performance and payment bonds, letters
  517  of credit, or other security acceptable to the responsible
  518  public entity in connection with the development or operation of
  519  the qualifying project in a form and amount satisfactory to the
  520  responsible public entity. For the components of the qualifying
  521  project which involve construction, the form and amount of the
  522  bonds must comply with s. 255.05.
  523         2. The review of the design for the qualifying project by
  524  the responsible public entity and, if the design conforms to
  525  standards acceptable to the responsible public entity, the
  526  approval of the responsible public entity. This subparagraph
  527  does not require the private entity to complete the design of
  528  the qualifying project before the execution of the comprehensive
  529  agreement.
  530         3. The inspection of the qualifying project by the
  531  responsible public entity to ensure that the private entity’s
  532  activities are acceptable to the public entity in accordance
  533  with the comprehensive agreement.
  534         4. The maintenance by the private entity of a policy of
  535  public liability insurance, a copy of which must be filed with
  536  the responsible public entity and accompanied by proofs of
  537  coverage, or self-insurance, each in a form and amount
  538  satisfactory to the responsible public entity and reasonably
  539  sufficient to ensure coverage of tort liability to the public
  540  and employees and to enable the continued operation of the
  541  qualifying project.
  542         5. The monitoring by the responsible public entity of the
  543  maintenance practices to be performed by the private entity to
  544  ensure that the qualifying project is properly maintained.
  545         6. The periodic filing by the private entity of the
  546  appropriate financial statements that pertain to the qualifying
  547  project.
  548         7. The procedures that govern the rights and
  549  responsibilities of the responsible public entity and the
  550  private entity in the course of the construction and operation
  551  of the qualifying project and in the event of the termination of
  552  the comprehensive agreement or a material default by the private
  553  entity. The procedures must include conditions that govern the
  554  assumption of the duties and responsibilities of the private
  555  entity by an entity that funded, in whole or part, the
  556  qualifying project or by the responsible public entity, and must
  557  provide for the transfer or purchase of property or other
  558  interests of the private entity by the responsible public
  559  entity.
  560         8. In negotiating user fees, the fees must be the same for
  561  persons using the facility under like conditions and must not
  562  materially discourage use of the qualifying project. The
  563  execution of the comprehensive agreement or a subsequent
  564  amendment is conclusive evidence that the fees, lease payments,
  565  or service payments provided for in the comprehensive agreement
  566  comply with this section. Fees or lease payments established in
  567  the comprehensive agreement as a source of revenue may be in
  568  addition to, or in lieu of, service payments.
  569         9. The duties of the private entity, including the terms
  570  and conditions that the responsible public entity determines
  571  serve the public purpose of this section.
  572         (b) The comprehensive agreement may include:
  573         1. An agreement by the responsible public entity to make
  574  grants or loans to the private entity from amounts received from
  575  the federal, state, or local government or an agency or
  576  instrumentality thereof.
  577         2. A provision under which each entity agrees to provide
  578  notice of default and cure rights for the benefit of the other
  579  entity, including, but not limited to, a provision regarding
  580  unavoidable delays.
  581         3. A provision that terminates the authority and duties of
  582  the private entity under this section and dedicates the
  583  qualifying project to the responsible public entity or, if the
  584  qualifying project was initially dedicated by an affected local
  585  jurisdiction, to the affected local jurisdiction for public use.
  586         (10) FEES.—An agreement entered into pursuant to this
  587  section may authorize the private entity to impose fees to
  588  members of the public for the use of the facility. The following
  589  provisions apply to the agreement:
  590         (a) The responsible public entity may develop new
  591  facilities or increase capacity in existing facilities through
  592  agreements with public-private partnerships.
  593         (b) The public-private partnership agreement must ensure
  594  that the facility is properly operated, maintained, or improved
  595  in accordance with standards set forth in the comprehensive
  596  agreement.
  597         (c) The responsible public entity may lease existing fee
  598  for-use facilities through a public-private partnership
  599  agreement.
  600         (d) Any revenues must be regulated by the responsible
  601  public entity pursuant to the comprehensive agreement.
  602         (e) A negotiated portion of revenues from fee-generating
  603  uses must be returned to the public entity over the life of the
  604  agreement.
  605         (11) FINANCING.—
  606         (a) A private entity may enter into a private-source
  607  financing agreement between financing sources and the private
  608  entity. A financing agreement and any liens on the property or
  609  facility must be paid in full at the applicable closing that
  610  transfers ownership or operation of the facility to the
  611  responsible public entity at the conclusion of the term of the
  612  comprehensive agreement.
  613         (b) The responsible public entity may lend funds to private
  614  entities that construct projects containing facilities that are
  615  approved under this section.
  616         (c) The responsible public entity may use innovative
  617  finance techniques associated with a public-private partnership
  618  under this section, including, but not limited to, federal loans
  619  as provided in Titles 23 and 49 of the Code of Federal
  620  Regulations, commercial bank loans, and hedges against inflation
  621  from commercial banks or other private sources. In addition, the
  622  responsible public entity may provide its own capital or
  623  operating budget to support a qualifying project. The budget may
  624  be from any legally permissible funding sources of the
  625  responsible public entity, including the proceeds of debt
  626  issuances. A responsible public entity may use the model
  627  financing agreement provided for in s. 489.145(6) for its
  628  financing of a facility owned by a responsible public entity. A
  629  financing agreement may not require the responsible public
  630  entity to indemnify the financing source, subject the
  631  responsible public entity’s facility to liens in violation of s.
  632  11.066(5), or secure financing by the responsible public entity
  633  with a pledge of security interest, and any such provision is
  634  void.
  635         (d) A responsible public entity shall appropriate on a
  636  priority basis as required by the comprehensive agreement a
  637  contractual payment obligation, annual or otherwise, from the
  638  enterprise or other government fund from which the qualifying
  639  projects will be funded. This required payment obligation must
  640  be appropriated before other noncontractual obligations payable
  641  from the same enterprise or other government fund.
  643         (a) The private entity shall:
  644         1. Develop or operate the qualifying project in a manner
  645  that is acceptable to the responsible public entity in
  646  accordance with the provisions of the comprehensive agreement.
  647         2. Maintain, or provide by contract for the maintenance or
  648  improvement of, the qualifying project if required by the
  649  comprehensive agreement.
  650         3. Cooperate with the responsible public entity in making
  651  best efforts to establish interconnection between the qualifying
  652  project and any other facility or infrastructure as requested by
  653  the responsible public entity in accordance with the provisions
  654  of the comprehensive agreement.
  655         4. Comply with the comprehensive agreement and any lease or
  656  service contract.
  657         (b) Each private facility that is constructed pursuant to
  658  this section must comply with the requirements of federal,
  659  state, and local laws; state, regional, and local comprehensive
  660  plans; the responsible public entity’s rules, procedures, and
  661  standards for facilities; and such other conditions that the
  662  responsible public entity determines to be in the public’s best
  663  interest and that are included in the comprehensive agreement.
  664         (c) The responsible public entity may provide services to
  665  the private entity. An agreement for maintenance and other
  666  services entered into pursuant to this section must provide for
  667  full reimbursement for services rendered for qualifying
  668  projects.
  669         (d) A private entity of a qualifying project may provide
  670  additional services for the qualifying project to the public or
  671  to other private entities if the provision of additional
  672  services does not impair the private entity’s ability to meet
  673  its commitments to the responsible public entity pursuant to the
  674  comprehensive agreement.
  676  expiration or termination of a comprehensive agreement, the
  677  responsible public entity may use revenues from the qualifying
  678  project to pay current operation and maintenance costs of the
  679  qualifying project. If the private entity materially defaults
  680  under the comprehensive agreement, the compensation that is
  681  otherwise due to the private entity is payable to satisfy all
  682  financial obligations to investors and lenders on the qualifying
  683  project in the same way that is provided in the comprehensive
  684  agreement or any other agreement involving the qualifying
  685  project, if the costs of operating and maintaining the
  686  qualifying project are paid in the normal course. Revenues in
  687  excess of the costs for operation and maintenance costs may be
  688  paid to the investors and lenders to satisfy payment obligations
  689  under their respective agreements. A responsible public entity
  690  may terminate with cause and without prejudice a comprehensive
  691  agreement and may exercise any other rights or remedies that may
  692  be available to it in accordance with the provisions of the
  693  comprehensive agreement. The full faith and credit of the
  694  responsible public entity may not be pledged to secure the
  695  financing of the private entity. The assumption of the
  696  development or operation of the qualifying project does not
  697  obligate the responsible public entity to pay any obligation of
  698  the private entity from sources other than revenues from the
  699  qualifying project unless stated otherwise in the comprehensive
  700  agreement.
  701         (14) SOVEREIGN IMMUNITY.—This section does not waive the
  702  sovereign immunity of a responsible public entity, an affected
  703  local jurisdiction, or an officer or employee thereof with
  704  respect to participation in, or approval of, any part of a
  705  qualifying project or its operation, including, but not limited
  706  to, interconnection of the qualifying project with any other
  707  infrastructure or project. A county or municipality in which a
  708  qualifying project is located possesses sovereign immunity with
  709  respect to the project, including, but not limited to, its
  710  design, construction, and operation.
  711         (15) CONSTRUCTION.—This section shall be liberally
  712  construed to effectuate the purposes of this section. This
  713  section shall be construed as cumulative and supplemental to any
  714  other authority or power vested in or exercised by the governing
  715  board of a county, district, or municipal hospital or health
  716  care system including those contained in acts of the Legislature
  717  establishing such public hospital boards or s. 155.40. This
  718  section does not affect any agreement or existing relationship
  719  with a supporting organization involving such governing board or
  720  system in effect as of January 1, 2013.
  721         (a) This section does not limit a political subdivision of
  722  the state in the acquisition, design, or construction of a
  723  public project pursuant to other statutory authority.
  724         (b) Except as otherwise provided in this section, this
  725  section does not amend existing laws by granting additional
  726  powers to, or further restricting, a local governmental entity
  727  from regulating and entering into cooperative arrangements with
  728  the private sector for the planning, construction, or operation
  729  of a facility.
  730         (c) This section does not waive any requirement of s.
  731  287.055.
  732         Section 4. Section 336.71, Florida Statutes, is created to
  733  read:
  734         336.71 Public-private cooperation in construction of county
  735  roads.-
  736         (1) If a county receives a proposal, solicited or
  737  unsolicited, from a private entity seeking to construct, extend,
  738  or improve a county road or portion thereof, the county may
  739  enter into an agreement with the private entity for completion
  740  of the road construction project, which agreement may provide
  741  for payment to the private entity, from public funds, if the
  742  county conducts a noticed public hearing and finds that the
  743  proposed county road construction project:
  744         (a) Is in the best interest of the public.
  745         (b) Uses county funds only for portions of the project that
  746  will be part of the county road system.
  747         (c) Has adequate safeguards to ensure that additional costs
  748  or unreasonable service disruptions are not realized by the
  749  public.
  750         (d) Will, upon completion, be a part of the county road
  751  system owned by the county.
  752         (e) Results in a financial benefit to the public by
  753  completing the project at a cost to the public significantly
  754  lower than if the project were completed by the county using the
  755  normal procurement process.
  756         (2) The notice for the public hearing provided for in
  757  subsection (1) must be published at least 14 days before the
  758  date of the public meeting at which the governing board takes
  759  final action. The notice must identify the project, the
  760  estimated cost of the project, and specify that the purpose for
  761  the public meeting is to consider whether it is in the public’s
  762  best interest to accept the proposal and enter into an agreement
  763  pursuant thereto. The determination of cost savings pursuant to
  764  paragraph (1)(e) must be supported by a professional engineer’s
  765  cost estimate made available to the public at least 14 days
  766  before the public meeting and placed in the record for that
  767  meeting.
  768         (3) Upon compliance with subsection (1), the project and
  769  agreement are exempt from s. 255.20 pursuant to s.
  770  255.20(1)(c)11.
  771         (4) Except as otherwise expressly provided in this section,
  772  this section does not affect existing law by granting additional
  773  powers to or imposing further restrictions on local government
  774  entities.
  775         Section 5. This act shall take effect July 1, 2013.