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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