Senate Bill 0776c1

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    Florida Senate - 2000                            CS for SB 776

    By the Committee on Transportation and Senator Sebesta





    306-1976-00

  1                      A bill to be entitled

  2         An act relating to seaports; creating s.

  3         215.617, F.S.; providing for the issuance of

  4         bonds by the Division of Bond Finance; amending

  5         s. 311.07, F.S.; providing for a final audit of

  6         funds; amending s. 311.09, F.S.; providing

  7         overrule authority to certain state agencies;

  8         providing voting membership to certain state

  9         agencies; providing requirements for the

10         procurement of professional services; amending

11         s. 320.20, F.S.; providing certain projects are

12         fixed capital outlay projects; providing

13         bonding authority; providing a timeframe for

14         bond maturity; providing an effective date.

15

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

17

18         Section 1.  Section 215.617, Florida Statutes, is

19  created to read:

20         215.617  Bonds for the Florida Seaport Transportation

21  and Economic Development Program.--

22         (1)  The Division of Bond Finance, on behalf of the

23  Florida Seaport Transportation and Economic Development

24  Council, is authorized to issue revenue bonds pursuant to s.

25  11, Art. VII of the State Constitution and the State Bond Act

26  for the purposes of financing or refinancing fixed capital

27  requirements of the Florida Seaport Transportation and

28  Economic Development Program as provided in chapter 311 and s.

29  320.20(3) and (4) and funding seaport access projects of

30  statewide significance as provided in s. 341.053.

31

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    Florida Senate - 2000                            CS for SB 776
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  1         (2)  The revenue bonds issued pursuant to this section

  2  shall not constitute a general obligation of or a pledge of

  3  the full faith and credit of the state or any of its agencies.

  4         (3)  Bonds issued pursuant to this section shall be

  5  payable solely from funds pledged pursuant to s. 320.20(3) and

  6  (4). Such funds shall be assigned and pledged as security and

  7  deposited in trust with the State Board of Administration

  8  pursuant to the terms of an agreement entered into among the

  9  ports and the State Board of Administration.

10         Section 2.  Subsection (6) of section 311.07, Florida

11  Statutes, is amended to read:

12         311.07  Florida seaport transportation and economic

13  development funding.--

14         (6)  The Department of Transportation shall subject any

15  project that receives funds pursuant to this section and s.

16  320.20 to a final audit.  The department may adopt rules and

17  perform such other acts as are necessary or convenient to

18  ensure that the final audits are conducted and that any

19  deficiency or questioned costs noted by the audit are

20  resolved.

21         Section 3.  Subsection (1), (4), (6), (7), (8), (11)

22  and (12) of section 311.09, Florida Statutes, are amended to

23  read:

24         311.09  Florida Seaport Transportation and Economic

25  Development Council.--

26         (1)  The Florida Seaport Transportation and Economic

27  Development Council is created within the Department of

28  Transportation.  The council consists of the following 17

29  members: the port director, or the port director's designee,

30  of each of the ports of Jacksonville, Port Canaveral, Fort

31  Pierce, Palm Beach, Port Everglades, Miami, Port Manatee, St.

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  Petersburg, Tampa, Port St. Joe, Panama City, Pensacola, Key

  2  West, and Fernandina; the secretary of the Department of

  3  Transportation or his or her designee as an ex officio

  4  nonvoting member; the director of the Office of Tourism,

  5  Trade, and Economic Development or his or her designee as an

  6  ex officio nonvoting member; and the secretary of the

  7  Department of Community Affairs or his or her designee as an

  8  ex officio nonvoting member.

  9         (4)  The council shall adopt rules for evaluating

10  projects which may be funded under ss. s. 311.07 and 320.20.

11  The rules shall provide criteria for evaluating the economic

12  benefit of the project, measured by the potential for the

13  proposed project to increase cargo flow, cruise passenger

14  movement, international commerce, port revenues, and the

15  number of jobs for the port's local community.

16         (6)  The Department of Community Affairs shall review

17  the list of projects approved by the council to determine

18  consistency with approved local government comprehensive plans

19  of the units of local government in which the port is located

20  and consistency with the port master plan.  The Department of

21  Community Affairs shall identify and notify the council of

22  those projects which are not consistent, to the maximum extent

23  feasible, with such comprehensive plans and port master plans.

24  The Department of Community Affairs may overrule any action of

25  the council approving a project.

26         (7)  The Department of Transportation shall review the

27  list of projects approved by the council for consistency with

28  the Florida Transportation Plan and the department's adopted

29  work program.  In evaluating the consistency of a project, the

30  department shall determine whether the transportation impact

31  of the proposed project is adequately handled by existing

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  state-owned transportation facilities or by the construction

  2  of additional state-owned transportation facilities as

  3  identified in the Florida Transportation Plan and the

  4  department's adopted work program.  In reviewing for

  5  consistency a transportation facility project as defined in s.

  6  334.03(31) which is not otherwise part of the department's

  7  work program, the department shall evaluate whether the

  8  project is needed to provide for projected movement of cargo

  9  or passengers from the port to a state transportation facility

10  or local road.  If the project is needed to provide for

11  projected movement of cargo or passengers, the project shall

12  be approved for consistency as a consideration to facilitate

13  the economic development and growth of the state in a timely

14  manner. The Department of Transportation shall identify those

15  projects which are inconsistent with the Florida

16  Transportation Plan and the adopted work program and shall

17  notify the council of projects found to be inconsistent. The

18  Department of Transportation may overrule any action of the

19  council approving a project.

20         (8)  The Office of Tourism, Trade, and Economic

21  Development, in consultation with Enterprise Florida, Inc.,

22  shall review the list of projects approved by the council to

23  evaluate the economic benefit of the project and to determine

24  whether the project is consistent with the Florida Seaport

25  Mission Plan.  The Office of Tourism, Trade, and Economic

26  Development shall review the economic benefits of each project

27  based upon the rules adopted pursuant to subsection (4).  The

28  Office of Tourism, Trade, and Economic Development shall

29  identify those projects which it has determined do not offer

30  an economic benefit to the state or are not consistent with

31  the Florida Seaport Mission Plan and shall notify the council

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  of its findings. The Office of Tourism, Trade, and Economic

  2  Development may overrule any action of the council approving a

  3  project.

  4         (11)  The council shall meet at the call of its

  5  chairperson, at the request of a majority of its membership,

  6  or at such times as may be prescribed in its bylaws.  However,

  7  the council must meet at least semiannually.  A majority of

  8  voting members of the council constitutes a quorum for the

  9  purpose of transacting the business of the council.  All

10  members of the council are voting members except for members

11  representing the Department of Transportation; the Department

12  of Community Affairs; and the Office of Tourism, Trade, and

13  Economic Development.  A vote of the majority of the voting

14  members present is sufficient for any action of the council,

15  except that a member representing the Department of

16  Transportation, the Department of Community Affairs, or the

17  Office of Tourism, Trade, and Economic Development may

18  overrule any action of the council approving a project. The

19  unless the bylaws of the council may require a greater vote

20  for a particular action. However, such bylaws may not affect

21  the overrule authority of the Department of Transportation,

22  the Department of Community Affairs, and the Office of

23  Tourism, Trade, and Economic Development.

24         (12)  Members of the council shall serve without

25  compensation but are entitled to receive reimbursement for per

26  diem and travel expenses as provided in s. 112.061.  The

27  council may elect to provide an administrative staff to

28  provide services to the council on matters relating to the

29  Florida Seaport Transportation and Economic Development

30  Program and the council.  The cost for such administrative

31  services shall be paid by all ports that receive funding from

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  the Florida Seaport Transportation and Economic Development

  2  Program, based upon a pro rata formula measured by each

  3  recipient's share of the funds as compared to the total funds

  4  disbursed to all recipients during the year.  The share of

  5  costs for administrative services shall be paid in its total

  6  amount by the recipient port upon execution by the port and

  7  the Department of Transportation of a joint participation

  8  agreement for each council-approved project, and such payment

  9  is in addition to the matching funds required to be paid by

10  the recipient port. The procurement of outside professional

11  services by the council is subject to s. 287.057 and any

12  written agreements and documentation supporting payments for

13  professional services must be retained by the council.

14         Section 4.  Subsections (3) and (4) of section 320.20,

15  Florida Statutes, are amended to read:

16         320.20  Disposition of license tax moneys.--The revenue

17  derived from the registration of motor vehicles, including any

18  delinquent fees and excluding those revenues collected and

19  distributed under the provisions of s. 320.081, must be

20  distributed monthly, as collected, as follows:

21         (3)  Notwithstanding any other provision of law except

22  subsections (1) and (2), on July 1, 1996, and annually

23  thereafter, $15 million shall be deposited in the State

24  Transportation Trust Fund solely for the purposes of funding

25  the Florida Seaport Transportation and Economic Development

26  Program as provided for in chapter 311.  Such revenues shall

27  be distributed on a 50-50 matching basis to any port listed in

28  s. 311.09(1) to be used for funding projects as described in

29  s. 311.07(3)(b). Projects that are funded under this

30  subsection shall be considered state fixed capital outlay

31  projects for bonding purposes. Such revenues may be assigned,

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  pledged, or set aside as a trust for the payment of principal

  2  or interest on bonds, tax anticipation certificates, or any

  3  other form of indebtedness issued by the State Board of

  4  Administration, Division of Bond Finance, on behalf of any

  5  ports that form a collective interlocal agreement an

  6  individual port or appropriate local government having

  7  jurisdiction thereof, or collectively by interlocal agreement

  8  among any of the ports, or used to purchase credit support to

  9  permit such borrowings. However, such debt shall not

10  constitute a general obligation of the State of Florida. Such

11  bonds in issue and series must mature 30 years from their date

12  of issuance. The state does hereby covenant with holders of

13  such revenue bonds or other instruments of indebtedness issued

14  hereunder that it will not repeal or impair or amend in any

15  manner which will materially and adversely affect the rights

16  of such holders so long as bonds authorized by this section

17  are outstanding.  Any revenues which are not pledged to the

18  repayment of bonds as authorized by this section may be

19  utilized for purposes authorized under the Florida Seaport

20  Transportation and Economic Development Program.  This revenue

21  source is in addition to any amounts provided for and

22  appropriated in accordance with s. 311.07.  The Florida

23  Seaport Transportation and Economic Development Council shall

24  approve distribution of funds to ports for projects which have

25  been approved pursuant to s. 311.09(5)-(9).  The council and

26  the Department of Transportation are authorized to perform

27  such acts as are required to facilitate and implement the

28  provisions of this subsection.  To better enable the ports to

29  cooperate to their mutual advantage, the governing body of

30  each port may exercise powers provided to municipalities or

31  counties in s. 163.01(7)(d) subject to the provisions of

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  chapter 311 and special acts, if any, pertaining to a port.

  2  The use of funds provided pursuant to this subsection are

  3  limited to eligible projects listed in this subsection.

  4  Income derived from a project completed with the use of

  5  program funds, beyond operating costs and debt service, shall

  6  be restricted to further port capital improvements consistent

  7  with maritime purposes and for no other purpose.  Use of such

  8  income for nonmaritime purposes is prohibited. The provisions

  9  of s. 311.07(4) do not apply to any funds received pursuant to

10  this subsection.

11         (4)  Notwithstanding any other provision of law except

12  subsections (1), (2), and (3), on July 1, 1999, and annually

13  thereafter, $10 million shall be deposited in the State

14  Transportation Trust Fund solely for the purposes of funding

15  the Florida Seaport Transportation and Economic Development

16  Program as provided in chapter 311 and for funding seaport

17  intermodal access projects of statewide significance as

18  provided in s. 341.053. Projects that are funded under this

19  subsection shall be considered state fixed capital outlay

20  projects for bonding purposes. Such revenues shall be

21  distributed to any port listed in s. 311.09(1), to be used for

22  funding projects as follows:

23         (a)  For any seaport intermodal access projects that

24  are identified in the 1997-1998 Tentative Work Program of the

25  Department of Transportation, up to the amounts needed to

26  offset the funding requirements of this section; and

27         (b)  For seaport intermodal access projects as

28  described in s. 341.053(5) that are identified in the 5-year

29  Florida Seaport Mission Plan as provided in s. 311.09(3).

30  Funding for such projects shall be on a matching basis as

31  mutually determined by the Florida Seaport Transportation and

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    Florida Senate - 2000                            CS for SB 776
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  1  Economic Development Council and the Department of

  2  Transportation, provided a minimum of 25 percent of total

  3  project funds shall come from any port funds, local funds,

  4  private funds, or specifically earmarked federal funds; or

  5         (c)  On a 50-50 matching basis for projects as

  6  described in s. 311.07(3)(b).

  7         (d)  For seaport intermodal access projects that

  8  involve the dredging or deepening of channels, turning basins,

  9  or harbors; or the rehabilitation of wharves, docks, or

10  similar structures. Funding for such projects shall require a

11  25 percent match of the funds received pursuant to this

12  subsection. Matching funds shall come from any port funds,

13  federal funds, local funds, or private funds.

14

15  Such revenues may be assigned, pledged, or set aside as a

16  trust for the payment of principal or interest on bonds, tax

17  anticipation certificates, or any other form of indebtedness

18  issued by the State Board of Administration, Division of Bond

19  Finance, on behalf of any ports that form a collective

20  interlocal agreement an individual port or appropriate local

21  government having jurisdiction thereof, or collectively by

22  interlocal agreement among any of the ports, or used to

23  purchase credit support to permit such borrowings. However,

24  such debt shall not constitute a general obligation of the

25  state. Such bonds in issue and series must mature at such time

26  not exceeding 30 years from their date of issuance. This state

27  does hereby covenant with holders of such revenue bonds or

28  other instruments of indebtedness issued hereunder that it

29  will not repeal or impair or amend this subsection in any

30  manner which will materially and adversely affect the rights

31  of holders so long as bonds authorized by this subsection are

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    Florida Senate - 2000                            CS for SB 776
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  1  outstanding. Any revenues that are not pledged to the

  2  repayment of bonds as authorized by this section may be

  3  utilized for purposes authorized under the Florida Seaport

  4  Transportation and Economic Development Program. This revenue

  5  source is in addition to any amounts provided for and

  6  appropriated in accordance with s. 311.07 and subsection (3).

  7  The Florida Seaport Transportation and Economic Development

  8  Council shall approve distribution of funds to ports for

  9  projects that have been approved pursuant to s. 311.09(5)-(9),

10  or for seaport intermodal access projects identified in the

11  5-year Florida Seaport Mission Plan as provided in s.

12  311.09(3) and mutually agreed upon by the FSTED Council and

13  the Department of Transportation.  All contracts for actual

14  construction of projects authorized by this subsection must

15  include a provision encouraging employment of WAGES

16  participants.  The goal for employment of WAGES participants

17  is 25 percent of all new employees employed specifically for

18  the project, unless the Department of Transportation and the

19  Florida Seaport Transportation and Economic Development

20  Council can demonstrate to the satisfaction of the Secretary

21  of Labor and Employment Security that such a requirement would

22  severely hamper the successful completion of the project. In

23  such an instance, the Secretary of Labor and Employment

24  Security shall establish an appropriate percentage of

25  employees that must be WAGES participants. The council and the

26  Department of Transportation are authorized to perform such

27  acts as are required to facilitate and implement the

28  provisions of this subsection. To better enable the ports to

29  cooperate to their mutual advantage, the governing body of

30  each port may exercise powers provided to municipalities or

31  counties in s. 163.01(7)(d) subject to the provisions of

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    Florida Senate - 2000                            CS for SB 776
    306-1976-00




  1  chapter 311 and special acts, if any, pertaining to a port.

  2  The use of funds provided pursuant to this subsection is

  3  limited to eligible projects listed in this subsection. The

  4  provisions of s. 311.07(4) do not apply to any funds received

  5  pursuant to this subsection.

  6         Section 5.  This act shall take effect upon becoming a

  7  law.

  8

  9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                              SB 776

11

12  The CS authorizes the Division of Bond Finance to issue
    revenue bonds on behalf of the Florida Seaport Transportation
13  and Economic Development (FSTED) Program, and clarifies
    projects which receive funds through s. 320.20, F.S., are
14  subject to a Florida Department of Transportation (FDOT) final
    audit.
15
    The CS requires the FSTED Council to adopt rules for
16  evaluating projects which may be funded under s. 320.20, F.S.,
    and authorizes the FDOT, the Department of Community Affairs,
17  and the Office of Tourism, Transportation, and Economic
    Development, to overrule any action of the FSTED Council
18  approving a project, and gives those agencies a vote on the
    council.  The CS requires the FSTED Council be subject to s.
19  287.057 (competitive bidding) when procuring outside
    professional services and must document all written agreements
20  and supporting payments for such professional services.

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