Senate Bill sb1752c2
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    Florida Senate - 2003                    CS for CS for SB 1752
    By the Committees on Finance and Taxation; Transportation; and
    Senator Sebesta
    314-2434-03
  1                      A bill to be entitled
  2         An act relating to the Department of
  3         Transportation; creating s. 215.617, F.S.;
  4         authorizing the department to issue revenue
  5         bonds financed by the repayment of loans from
  6         the state-funded infrastructure bank; amending
  7         s. 334.30, F.S.; providing for public-private
  8         partnership agreements for transportation
  9         facilities without prior legislative approval;
10         authorizing the department to adopt rules;
11         providing requirements for projects advanced by
12         a public-private partnership or private entity;
13         authorizing the department to request
14         proposals; requiring notice; providing
15         requirements for ranking proposals; amending s.
16         338.165, F.S.; authorizing the department to
17         request the Division of Bond Finance to issue
18         bonds secured by toll revenues collected on the
19         Beeline-East Expressway, the Sunshine Skyway
20         Bridge, and the Pinellas Bayway toll facilities
21         to provide funding for transportation projects
22         on the State Highway System in the counties in
23         which the projects are located; amending s.
24         338.2275, F.S.; increasing the cap on the
25         amount of bonds that may be issued to fund
26         approved turnpike projects; amending s.
27         338.235, F.S.; authorizing the turnpike
28         enterprise to secure products, business
29         opportunities, and services by competitive
30         solicitation; amending s. 335.02, F.S.;
31         defining the term "jurisdiction and control";
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 1         providing that local governmental ordinances
 2         and regulations are not applicable to state
 3         projects to build designated transportation
 4         facilities to the extent of any conflict with a
 5         rule of the Department of Transportation;
 6         providing an effective date.
 7  
 8  Be It Enacted by the Legislature of the State of Florida:
 9  
10         Section 1.  Section 215.617, Florida Statutes, is
11  created to read:
12         215.617  Bonds for state-funded infrastructure bank.--
13         (1)  Upon the request of the Department of
14  Transportation, the Division of Bond Finance is authorized
15  pursuant to s. 11, Art. VII of the State Constitution and the
16  State Bond Act to issue revenue bonds, for and on behalf of
17  the Department of Transportation, for the purpose of financing
18  or refinancing the construction, reconstruction, and
19  improvement of projects that are eligible to receive
20  assistance from the state-funded infrastructure bank as
21  provided in s. 339.55. The facilities to be financed with the
22  proceeds of such bonds are designated as state fixed capital
23  outlay projects for the purposes of s. 11(d), Art. VII of the
24  State Constitution, and the specific facilities to be financed
25  shall be determined by the Department of Transportation in
26  accordance with s. 339.55. Legislative approval of the
27  department's tentative work program that contains the
28  state-funded infrastructure bank projects constitutes approval
29  as required by s. 11(f), Art. VII of the State Constitution.
30  The Division of Bond Finance is authorized to consider
31  innovative financing techniques, which may include, but are
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 1  not limited to, innovative bidding and structures of potential
 2  financings that may result in negotiated transactions.
 3         (2)  Bonds issued pursuant to this section shall be
 4  payable primarily from a prior and superior claim on all
 5  state-funded infrastructure bank repayments received each year
 6  with respect to state-funded infrastructure bank projects
 7  undertaken in accordance with s. 339.55.
 8         (3)  The duration of each series of bonds may not
 9  exceed 30 annual maturities.
10         (4)  The bonds issued under this section shall not
11  constitute a general obligation or debt of the state or a
12  pledge of the full faith and credit or taxing power of the
13  state. The bonds shall be secured by and are payable from the
14  revenues pledged in accordance with this section and the
15  resolution authorizing their issuance.
16         (5)  The state does covenant with the holders of bonds
17  issued under this section that it will not take any action
18  that will materially and adversely affect the rights of such
19  bondholders as long as the bonds authorized by this section
20  are outstanding.
21         (6)  Any complaint for validation of bonds issued
22  pursuant to this section shall be filed in the circuit court
23  of the county where the seat of state government is situated,
24  the notice required to be published by s. 75.06 shall be
25  published only in the county where the complaint is filed, and
26  the complaint and order of the circuit court shall be served
27  only on the state attorney of the circuit in which the action
28  is pending.
29         Section 2.  Section 334.30, Florida Statutes, is
30  amended to read:
31  
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 1         334.30  Private transportation facilities.--The
 2  Legislature hereby finds and declares that there is a public
 3  need for rapid construction of safe and efficient
 4  transportation facilities for the purpose of travel within the
 5  state, and that it is in the public's interest to provide for
 6  public-private partnership agreements to effectuate the
 7  construction of additional safe, convenient, and economical
 8  transportation facilities.
 9         (1)  The department may receive or solicit proposals
10  and, with legislative approval by a separate bill for each
11  facility, enter into agreements with private entities, or
12  consortia thereof, for the building, operation, ownership, or
13  financing of transportation facilities as provided in
14  subsection (2).  The department may adopt rules to administer
15  this section and shall by rule establish an application fee
16  for the submission of proposals under this section.  The fee
17  must be sufficient to pay the costs of evaluating the
18  proposals.  The department may engage the services of private
19  consultants to assist in the evaluation. Before seeking
20  legislative approval, The department must determine that the
21  proposed project:
22         (a)  Is in the public's best interest;
23         (b)  Complies with the provisions of subsection (2)
24  Would not require state funds to be used unless there is an
25  overriding state interest; and
26         (c)  Would have adequate safeguards in place to ensure
27  that no additional costs or service disruptions would be
28  realized by the traveling public and citizens of the state in
29  the event of default or cancellation of the agreement by the
30  department.
31  
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 1  The department shall ensure that all reasonable costs to the
 2  state related to transportation facilities that are not part
 3  of the State Highway System are borne by the public-private
 4  entity. The department shall also ensure that all reasonable
 5  costs to the state and substantially affected local
 6  governments and utilities, related to the private
 7  transportation facility, are borne by the public-private
 8  private entity for transportation facilities which are owned
 9  by private entities.
10         (2)(a)  Public-private partnerships or private entities
11  may advance projects programmed in the first 3 years of the
12  adopted work program to be reimbursed from department funds
13  for the project as programmed in the adopted work program.
14         (b)  Public-private partnerships or private entities
15  may advance projects programmed in the 4th and 5th years of
16  the adopted work program to be reimbursed from department
17  funds for the project as programmed in the adopted work
18  program. The total capital costs to the department for all
19  projects advanced under this paragraph may not exceed $50
20  million without specific project approval by the Legislature.
21         (c)  Public-private partnerships or private entities
22  may advance projects on the Florida Intrastate Highway System
23  programmed in the adopted 5-year work program to be reimbursed
24  from department funds for the project as programmed in the
25  adopted work program.
26         (d)  Public-private partnerships or private entities
27  may advance projects that are not programmed in the adopted
28  5-year work program but are on the State Highway System and
29  included in the local metropolitan planning organization's or
30  the department's long-range transportation plans, to be
31  reimbursed from department funds beyond the adopted 5-year
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 1  work program. The total capital costs to the department for
 2  all projects advanced under this paragraph may not exceed $50
 3  million without specific project approval by the Legislature.
 4         (3)  The department may request proposals from
 5  public-private transportation projects or, if the department
 6  receives an unsolicited proposal, the department shall publish
 7  a notice in the Florida Administrative Weekly and a newspaper
 8  of general circulation at least once a week for 2 weeks
 9  stating that the department has received the proposal and will
10  accept, for 60 days after the initial date of publication,
11  other proposals for the same project purpose. A copy of the
12  notice must be mailed to each local government in the affected
13  area. After the public notification period has expired, the
14  department shall rank the proposals in order of preference. In
15  ranking the proposals the department may consider the
16  following factors, including, but not limited to, professional
17  qualification, general business terms, innovative engineering
18  or cost-reduction terms, finance plans, and the need for state
19  funds to deliver the proposal. The department shall negotiate
20  with the top-ranked proposer in good faith, and if the
21  department is not satisfied with the results of the
22  negotiations, the department may, at its sole discretion,
23  terminate negotiations with the proposer. If these
24  negotiations are unsuccessful, the department may go to the
25  second and lower-ranked firms, in order, using this same
26  procedure. If only one proposal is received, the department
27  may negotiate in good faith, and, if the department is not
28  satisfied with the results of the negotiations, the department
29  may, at its sole discretion, terminate negotiations with the
30  proposers. Notwithstanding this subsection, the department
31  
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 1  may, at its discretion, reject all proposals at any point in
 2  the process up to completion of a contract with the proposer.
 3         (4)(2)  Agreements entered into pursuant to this
 4  section may authorize the private entity to impose tolls or
 5  fares for the use of the facility.  However, the amount and
 6  use of toll or fare revenues may be regulated by the
 7  department to avoid unreasonable costs to users of the
 8  facility.
 9         (5)(3)  Each private transportation facility
10  constructed pursuant to this section shall comply with all
11  requirements of federal, state, and local laws; state,
12  regional, and local comprehensive plans; department rules,
13  policies, procedures, and standards for transportation
14  facilities; and any other conditions which the department
15  determines to be in the public's best interest.
16         (6)(4)  The department may exercise any power possessed
17  by it, including eminent domain, with respect to the
18  development and construction of state transportation projects
19  to facilitate the development and construction of
20  transportation projects pursuant to this section.  The
21  department may provide services to the private entity.
22  Agreements for maintenance, law enforcement, and other
23  services entered into pursuant to this section shall provide
24  for full reimbursement for services rendered.
25         (7)(5)  Except as herein provided, the provisions of
26  this section are not intended to amend existing laws by
27  granting additional powers to, or further restricting, local
28  governmental entities from regulating and entering into
29  cooperative arrangements with the private sector for the
30  planning, construction, and operation of transportation
31  facilities.
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 1         (8)(6)  A fixed-guideway transportation system
 2  authorized by the department to be wholly or partially within
 3  the department's right-of-way pursuant to a lease granted
 4  under s. 337.251 may operate at any safe speed.
 5         Section 3.  Subsection (3) of section 338.165, Florida
 6  Statutes, is amended to read:
 7         338.165  Continuation of tolls.--
 8         (3)  Notwithstanding any other law to the contrary,
 9  pursuant to s. 11, Art. VII of the State Constitution, and
10  subject to the requirements of subsection (2), the Department
11  of Transportation may request the Division of Bond Finance to
12  issue bonds secured by toll revenues collected on the
13  Alligator Alley, the Sunshine Skyway Bridge, the Beeline-East
14  Expressway, and the Pinellas Bayway to fund transportation
15  projects located within the county or counties in which the
16  project is located and contained in the 1993-1994 Adopted Work
17  Program or in any subsequent adopted work program of the
18  department.
19         Section 4.  Subsection (1) of section 338.2275, Florida
20  Statutes, is amended to read:
21         338.2275  Approved turnpike projects.--
22         (1)  Legislative approval of the department's tentative
23  work program that contains the turnpike project constitutes
24  approval to issue bonds as required by s. 11(f), Art. VII of
25  the State Constitution. Turnpike projects approved to be
26  included in future tentative work programs include, but are
27  not limited to, projects contained in the 2003-2004 1997-1998
28  tentative work program and potential expansion projects listed
29  in the January 25, 1997, report submitted to the Florida
30  Transportation Commission titled "Florida's Turnpike Building
31  on the Past - Preparing for the Future." A maximum of $4.5 $3
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 1  billion of bonds may be issued to fund approved turnpike
 2  projects.
 3         Section 5.  Subsection (2) of section 338.235, Florida
 4  Statutes, is amended to read:
 5         338.235  Contracts with department for provision of
 6  services on the turnpike system.--
 7         (2)  In order to secure high-quality products, business
 8  opportunities, and services on the turnpike system, products,
 9  business opportunities, and services authorized by s. 338.234
10  may be secured by competitive solicitation for turnpike
11  patrons, products and services authorized by s. 338.234(1) may
12  be secured through the request-for-proposal process. If the
13  department receives an unsolicited proposal for products,
14  services, or business opportunities which it wishes to
15  consider, it shall publish a notice in a newspaper of general
16  circulation at least once a week for 2 weeks, or may broadcast
17  such notice by electronic media for 2 weeks, stating that it
18  has received a proposal and will accept other proposals on the
19  same subject for 30 days after the date of publication. The
20  department may select offers that the proposal and fee which
21  best satisfy the conditions of a quality service, business
22  opportunity, or and product operation for the turnpike system.
23  The factors to be used in evaluating proposals include, but
24  are not limited to:
25         (a)  The financial capacity of the provider;
26         (b)  The willingness to contribute toward the cost of
27  facility construction;
28         (c)  The type and quality of the service or product
29  offered;
30         (d)  The price structure of the service or product
31  offered;
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 1         (e)  Management experience and capabilities;
 2         (f)  The national brand names offered;
 3         (g)  The originality of the concept and its
 4  relationship to the turnpike system;
 5         (h)  The lease rate; and
 6         (i)  Other factors that the department may deem
 7  pertinent.
 8         Section 6.  Subsection (1) of section 335.02, Florida
 9  Statutes, is amended to read:
10         335.02  Authority to designate transportation
11  facilities and rights-of-way and establish lanes; procedure
12  for redesignation and relocation.--
13         (1)  The department shall have the authority to locate
14  and designate certain transportation facilities as part of the
15  State Highway System and to construct and maintain them with
16  funds available to the department.  Any transportation
17  facility when so located and designated shall become the
18  property of the state and shall be under the jurisdiction and
19  control of the department. For purposes of Title XXVI, the
20  phrase "jurisdiction and control" means that any local
21  governmental ordinance or regulation is inapplicable to a
22  state project to build a designated transportation facility to
23  the extent that the ordinance or regulation conflicts with a
24  rule adopted by the department or to the extent that the
25  ordinance or regulation imposes any additional burden on the
26  department with respect to the designated transportation
27  facility, financial or otherwise, concerning the design,
28  construction, or maintenance of the facility. Such a
29  transportation facility may not be redesignated or relocated
30  until after a public hearing is conducted by the department in
31  each county affected. Reasonable notice of the hearing shall
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 1  be published in a newspaper of general circulation in such
 2  county 14 days prior to the hearing in addition to any other
 3  notice required by law.  Any interested party shall have the
 4  opportunity to be heard either in person or by counsel and to
 5  introduce testimony in such person's behalf at the hearing.
 6         Section 7.  This act shall take effect upon becoming a
 7  law.
 8  
 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                            CS/SB 1752
11                                 
12  The committee substitute provides that Legislative approval of
    the department's tentative work program that contains the
13  state-funded infrastructure bank projects constitutes approval
    as required by s. 11(f), Art. VII of the State Constitution.
14  
    The committee substitute defines the phrase "jurisdiction and
15  control" to mean that local governmental ordinances and
    regulations are inapplicable to state projects to build
16  designated transportation facilities to the extent that they
    conflict with any rules or regulations promulgated by the
17  Department of Transportation or impose with regards to any
    designated transportation facility, any additional burden,
18  financial or otherwise, on the department.
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