HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
CHAMBER ACTION
Senate House
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5 ORIGINAL STAMP BELOW
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11 Representative(s) Kyle offered the following:
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13 Amendment (with title amendment)
14 On page 12, line 23, of the bill
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16 insert:
17 Section 1. Section 334.30, Florida Statutes, is
18 amended to read:
19 334.30 Public-private Private transportation
20 facilities.--The Legislature hereby finds and declares that
21 there is a public need for rapid construction of safe and
22 efficient transportation facilities for the purpose of travel
23 within the state, and that it is in the public's interest to
24 provide for public-private partnership agreements to
25 effectuate the construction of additional safe, convenient,
26 and economical transportation facilities.
27 (1) The department may receive or solicit proposals
28 and, with legislative approval by a separate bill for each
29 facility, enter into agreements with private entities, or
30 consortia thereof, for the building, operation, ownership, or
31 financing of transportation facilities. The department is
1
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 authorized to adopt rules to implement this section and shall
2 by rule establish an application fee for the submission of
3 proposals under this section. The fee must be sufficient to
4 pay the costs of evaluating the proposals. The department may
5 engage the services of private consultants to assist in the
6 evaluation. Before seeking legislative approval, the
7 department must determine that the proposed project:
8 (a) Is in the public's best interest.;
9 (b) Would not require state funds to be used unless
10 there is an overriding state interest; however, the department
11 may use state resources for a transportation facility project
12 that is on the State Highway System or that provides for
13 increased mobility on the state's transportation system. and
14 (c) Would have adequate safeguards in place to ensure
15 that no additional costs or service disruptions would be
16 realized by the traveling public and citizens of the state in
17 the event of default or cancellation of the agreement by the
18 department.
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20 The department shall ensure that all reasonable costs to the
21 state related to transportation facilities that are not part
22 of the State Highway System are borne by the public-private
23 entity. The department shall also ensure that all reasonable
24 costs to the state, and substantially affected local
25 governments, and utilities, related to the private
26 transportation facility, are borne by the public-private
27 private entity for transportation facilities that are owned by
28 private entities.
29 (2) The use of funds from the State Transportation
30 Trust Fund is limited to advancing projects already programmed
31 in the adopted 5-year work program or to no more than a
2
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 statewide total of $25 million in capital costs for all
2 projects not programmed in the adopted 5-year work program.
3 (3) The department may request proposals for
4 public-private transportation projects or, if the department
5 receives an unsolicited proposal, shall publish a notice
6 within 30 days in the Florida Administrative Weekly and a
7 newspaper of general circulation at least once a week for 2
8 weeks, stating that the department has received the proposal
9 and will accept, for 60 days after the initial date of
10 publication, other proposals for the same project purpose. A
11 copy of the notice must be mailed to each local government in
12 the affected area. After the public notification period has
13 expired, the department shall then rank the proposals in order
14 of preference. In ranking the proposals, the department may
15 consider, but is not limited to considering, professional
16 qualifications, general business terms, innovative engineering
17 or cost-reduction terms, finance plans, and the need for state
18 funds to deliver the proposal. The department shall negotiate
19 with the top-ranked proposer in good faith, and if the
20 department is not satisfied with the results of said
21 negotiations, the department may, at its sole discretion,
22 terminate negotiations with said proposer. If these
23 negotiations are unsuccessful, the department may go to the
24 second and lower-ranked firms in order using this same
25 procedure. If only one proposal is received, the department
26 may negotiate in good faith, and if the department is not
27 satisfied with the results of said negotiations, the
28 department may, at its sole discretion, terminate negotiations
29 with the said proposers. Notwithstanding any other provision
30 of this subsection, the department may, at its sole
31 discretion, reject all proposals at any point in the process
3
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 up to completion of a contract with the proposer.
2 (4) The department shall not commit funds in excess of
3 the limitation in subsection (2) without specific project
4 approval by the Legislature.
5 (5)(2) Agreements entered into pursuant to this
6 section may authorize the private entity to impose tolls or
7 fares for the use of the facility. However, the amount and
8 use of toll or fare revenues may be regulated by the
9 department to avoid unreasonable costs to users of the
10 facility.
11 (6)(3) Each private transportation facility
12 constructed pursuant to this section shall comply with all
13 requirements of federal, state, and local laws; state,
14 regional, and local comprehensive plans; department rules,
15 policies, procedures, and standards for transportation
16 facilities; and any other conditions which the department
17 determines to be in the public's best interest.
18 (7)(4) The department may exercise any power possessed
19 by it, including eminent domain, with respect to the
20 development and construction of state transportation projects
21 to facilitate the development and construction of
22 transportation projects pursuant to this section. For
23 public-private facilities located on the State Highway System,
24 the department may pay all or part of the cost of operating
25 and maintaining the facility. For facilities not located on
26 the State Highway System, the department may provide services
27 to the private entity and. agreements for maintenance, law
28 enforcement, and other services entered into pursuant to this
29 section shall provide for full reimbursement for services
30 rendered.
31 (8)(5) Except as herein provided, the provisions of
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 this section are not intended to amend existing laws by
2 granting additional powers to, or further restricting, local
3 governmental entities from regulating and entering into
4 cooperative arrangements with the private sector for the
5 planning, construction, and operation of transportation
6 facilities.
7 (9) The department shall have the authority to create
8 or assist in the creation of tax-exempt, public-purpose
9 Internal Revenue Service Ruling 63-20 corporations as provided
10 for under the Internal Revenue Code. Any bonds issued by the
11 63-20 corporation shall be payable solely from and secured by
12 a lien upon and pledge of the revenues received by the 63-20
13 corporation. Any bonds issued by the 63-20 corporation shall
14 not be or constitute a general indebtedness of the State of
15 Florida, any department or agency thereof, or any political
16 subdivision thereof within the meaning of any constitutional
17 or statutory provision or limitation. The full faith and
18 credit of the State of Florida shall not be pledged to the
19 payment of the principal of or interest on the bonds issued by
20 the 63-20 corporation. No owner of any of the bonds shall ever
21 have the right to require or compel the exercise of the taxing
22 power of the State of Florida or any department or agency of
23 the state for payment thereof, and the bonds shall not
24 constitute a lien upon any property owned by the State of
25 Florida or any department or agency of the state. Bonds issued
26 by the 63-20 corporation shall be rated investment grade by a
27 nationally recognized credit rating agency. Any bonds issued
28 by a 63-20 corporation to finance a project requiring the use
29 of state money, either directly or directly, shall be reviewed
30 and approved by the secretary of the Department of
31 Transportation. Nothing in this subsection is intended to
5
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 prohibit credit enhancement of such bonds, whether provided by
2 private or governmental sources other than sources backed by
3 the taxing power of the State of Florida. Nothing in this
4 subsection is intended to prohibit the pledging of additional
5 funds or revenues from private sources to secure such bonds.
6 Internal Revenue Service Ruling 63-20 corporations may receive
7 State Transportation Trust Fund grants and loans from the
8 department. The department shall be empowered to enter into
9 public-private partnership agreements with Internal Revenue
10 Service Ruling 63-20 corporations for projects under this
11 section but shall not agree to expend any funds not
12 appropriated for this purpose. The provisions of s. 339.135(6)
13 shall apply to such agreements.
14 (10) The department may lend funds from the Toll
15 Facilities Revolving Trust Fund, as outlined in s. 338.251, to
16 Internal Revenue Service Ruling 63-20 corporations that
17 construct projects containing toll facilities approved under
18 this section. To be eligible, the Internal Revenue Service
19 Ruling 63-20 corporation must meet the provisions of s.
20 338.251 and must either provide an indication from a
21 nationally recognized rating agency that the senior bonds of
22 the 63-20 corporation will be investment grade or must provide
23 credit support, such as a letter of credit or other means
24 acceptable to the department, to ensure that the loans will be
25 fully repaid as required by law. The state's liability for
26 debt of a facility shall be limited to the amount approved for
27 that specific facility in the department's 5-year work program
28 adopted pursuant to s. 339.135.
29 (11)(6) Notwithstanding s. 341.327, a fixed-guideway
30 transportation system authorized by the department to be
31 wholly or partially within the department's right-of-way
6
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 pursuant to a lease granted under s. 337.251 may operate at
2 any safe speed.
3 Section 2. Paragraph (m) of subsection (2) of section
4 348.0004, Florida Statutes, is repealed.
5 Section 3. Subsection (9) is added to section
6 348.0004, Florida Statutes, to read:
7 348.0004 Purposes and powers.--
8 (9) The Legislature hereby finds and declares that
9 there is a public need for rapid construction of safe and
10 efficient transportation facilities for the purpose of travel
11 within the state and that it is in the public's interest to
12 provide for public-private partnership agreements to
13 effectuate the construction of additional safe, convenient,
14 and economical transportation facilities.
15 (a) An expressway authority in any county as defined
16 in s. 125.011(1) may receive or solicit proposals and enter
17 into agreements with private entities, or consortia thereof,
18 for the building, operation, ownership, or financing or
19 extensions or other improvements to existing expressway
20 authority transportation facilities or new transportation
21 facilities that are within the jurisdiction of such an
22 expressway authority. Such an expressway authority is
23 authorized to adopt rules to implement this subsection and
24 shall by rule establish an application fee for the submission
25 of unsolicited proposals under this subsection. The fee must
26 be sufficient to pay the costs of evaluating the proposals.
27 Such an expressway authority may engage the services of
28 private consultants to assist in the evaluation. Before
29 approval, such an expressway authority must determine that the
30 proposed project:
31 1. Is in the public's best interest.
7
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HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 2. Would have adequate safeguards in place to ensure
2 that no additional costs or service disruptions would be
3 realized by the traveling public and citizens of the state in
4 the event of default by the private entity or consortium or
5 cancellation of the agreement by such expressway authority.
6 (b) Such an expressway authority may request proposals
7 for public-private transportation projects or, if such an
8 expressway authority receives an unsolicited proposal that it
9 has an interest in evaluating, it shall publish a notice in
10 the Florida Administrative Weekly and a newspaper of general
11 circulation in the county in which such expressway authority
12 is located at least once a week for 2 weeks stating that such
13 expressway authority has received the proposal and will
14 accept, for 60 days after the initial date of publication,
15 other proposals for the same project purpose. A copy of the
16 notice must be mailed to each local government in the affected
17 areas. After the public notification period has expired, the
18 expressway authority shall then rank the proposals in order of
19 preference. In ranking the proposals, the expressway authority
20 may consider, but is not limited to considering, professional
21 qualifications, general business terms, innovative engineering
22 or cost-reduction terms, finance plans, and the need for state
23 funds to deliver the proposal. The expressway authority shall
24 negotiate with the top-ranked proposer in good faith, and if
25 the expressway authority is not satisfied with the results of
26 said negotiations, the expressway authority may, at its sole
27 discretion, terminate negotiations with said proposer. If
28 these negotiations are unsuccessful, the expressway authority
29 may go to the second and lower-ranked firms in order using
30 this same procedure. If only one proposal is received, the
31 expressway authority may negotiate in good faith, and if the
8
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hbd0001 11:11 am 00261-0073-810515
HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 expressway authority is not satisfied with the results of said
2 negotiations, the expressway authority may, at its sole
3 discretion, terminate negotiations with the said proposers.
4 Notwithstanding any other provision of this paragraph, the
5 expressway authority may, at its sole discretion, reject all
6 proposals at any point in the process up to completion of a
7 contract with the proposer.
8 (c) Agreements entered into pursuant to this
9 subsection may authorize the private entity to impose tolls or
10 fares for the use of the facility. However, the amount and
11 use of toll or fare revenues may be regulated by such an
12 expressway authority to avoid unreasonable costs to users of
13 the facility.
14 (d) Each transportation facility constructed pursuant
15 to this subsection shall comply with all requirements of
16 federal, state, and local laws; state, regional, and local
17 comprehensive plans; such expressway authority's rules,
18 policies, procedures, and standards for transportation
19 facilities; and any other conditions such expressway authority
20 determines to be in the public's best interest.
21 (e) Such an expressway authority may exercise any
22 power possessed by it, including eminent domain, with respect
23 to the development and construction of transportation projects
24 to facilitate the development and construction of
25 transportation projects pursuant to this subsection. Such an
26 expressway authority may pay all or part of the cost of
27 operating and maintaining the facility or may provide services
28 to the private entity for which it shall be entitled to
29 receive full or partial reimbursement for services rendered.
30 (f) Except as herein provided, the provisions of this
31 subsection are not intended to amend existing laws by further
9
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hbd0001 11:11 am 00261-0073-810515
HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 expanding or further restricting the authority of local
2 governmental entities to regulate and enter into cooperative
3 arrangements with the private sector for the planning,
4 construction, and operation of transportation facilities.
5 (g) Such an expressway authority shall have the
6 authority to create or assist in the creation of tax-exempt,
7 public-purpose Internal Revenue Service Ruling 63-20
8 corporations as provided for under the Internal Revenue Code.
9 Any bonds issued by the 63-20 corporation shall be payable
10 solely from and secured by a lien upon and pledge of the
11 revenues received by the 63-20 corporation. Any bonds issued
12 by the 63-20 corporation shall not be or constitute a general
13 indebtedness of the State of Florida, any department or agency
14 thereof, or any political subdivision thereof within the
15 meaning of any constitutional or statutory provision or
16 limitation. The full faith and credit of the State of Florida
17 shall not be pledged to the payment of the principal of or
18 interest on the bonds issued by the 63-20 corporation. No
19 owner of any of the bonds shall ever have the right to require
20 or compel the exercise of the taxing power of the State of
21 Florida or any department or agency of the state for payment
22 thereof, and the bonds shall not constitute a lien upon any
23 property owned by the State of Florida or any department or
24 agency of the state. Bonds issued by the 63-20 corporation
25 shall be rated investment grade by a nationally recognized
26 credit rating agency. Nothing in this paragraph is intended to
27 prohibit credit enhancement of such bonds, whether provided by
28 private or governmental sources other than sources backed by
29 the taxing power of the State of Florida. Nothing in this
30 paragraph is intended to prohibit the pledging of additional
31 funds or revenues from private sources to secure such bonds.
10
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hbd0001 11:11 am 00261-0073-810515
HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 Such an expressway authority shall be empowered to enter into
2 public-private partnership agreements with Internal Revenue
3 Service Ruling 63-20 corporations for projects under this
4 subsection.
5 (h) Such an expressway authority or Internal Revenue
6 Service Ruling 63-20 corporation created under this subsection
7 shall be entitled to apply for grants and loans from the
8 department for projects under this subsection, subject to the
9 same eligibility criteria and other terms and conditions as
10 would apply to projects of such an expressway authority
11 undertaken without private participation.
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14 ================ T I T L E A M E N D M E N T ===============
15 And the title is amended as follows:
16 On page 1, line 3, after Transportation;
17
18 insert:
19 amending s. 334.30, F.S.; providing for
20 public-private transportation facilities;
21 eliminating the requirement that the
22 Legislature approve such facilities; providing
23 requirements for the use of funds from the
24 State Transportation Trust Fund; providing
25 requirements with respect to proposals;
26 providing for a selection process; providing
27 for specific project approval by the
28 Legislature for certain projects; authorizing
29 the Department of Transportation to create
30 certain corporations; authorizing such
31 corporations to issue bonds; authorizing the
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hbd0001 11:11 am 00261-0073-810515
HOUSE AMENDMENT
Bill No. CS/HB 261, 2nd Eng.
Amendment No. ___ (for drafter's use only)
1 department to lend certain funds to such
2 corporations; authorizing the department to
3 adopt rules; repealing s. 348.0004(2)(m), F.S.,
4 relating to private entity proposals for
5 transportation projects; amending s. 348.0004,
6 F.S.; establishing a process enabling certain
7 expressway authorities to participate in
8 public-private partnerships to build, operate,
9 own, or finance certain transportation
10 facilities; specifying the expressway
11 authority's role in such projects and providing
12 rulemaking authority; providing for a selection
13 process; providing for the assessment of tolls;
14 providing for creation of certain tax-exempt,
15 public-purpose corporations; authorizing such
16 corporations to issue bonds;
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