Senate Bill sb2880
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    Florida Senate - 2007                                  SB 2880
    By Senator Margolis
    35-1093B-07
  1                      A bill to be entitled
  2         An act relating to transportation funding;
  3         amending s. 212.055, F.S.; authorizing a
  4         charter county or consolidated local government
  5         to adopt a transportation system surtax by
  6         referendum; redesignating the transit surtax as
  7         the "transportation surtax"; amending s.
  8         320.072, F.S.; requiring a specified portion of
  9         the additional fee imposed on certain motor
10         vehicle transactions to be used to fund the
11         County Incentive Grant Program; amending s.
12         336.025, F.S.; authorizing a local government
13         to issue bonds secured by revenue from local
14         option fuel taxes more than once per year;
15         amending s. 337.11, F.S.; requiring the
16         Department of Transportation to advertise for
17         bids on all construction contracts of less than
18         a specified amount under certain circumstances;
19         amending s. 337.14, F.S.; authorizing the
20         department to waive qualification requirements
21         for contractors under certain circumstances;
22         amending s. 337.18, F.S.; authorizing the
23         department to reduce bond requirements under
24         certain circumstances; providing for the use of
25         incremental surety bonds under certain
26         circumstances; amending s. 338.2275, F.S.;
27         removing a provision setting a minimum amount
28         of bonds that may be issued to fund approved
29         turnpike projects; removing a provision
30         authorizing certain projects to be included in
31         future tentative work programs; amending s.
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    Florida Senate - 2007                                  SB 2880
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 1         339.2819, F.S.; revising the percentage of
 2         matching funds provided under the
 3         Transportation Regional Incentive Program;
 4         providing exceptions to project requirements
 5         for certain local projects; providing an
 6         effective date.
 7  
 8  Be It Enacted by the Legislature of the State of Florida:
 9  
10         Section 1.  Subsection (1) of section 212.055, Florida
11  Statutes, is amended to read:
12         212.055  Discretionary sales surtaxes; legislative
13  intent; authorization and use of proceeds.--It is the
14  legislative intent that any authorization for imposition of a
15  discretionary sales surtax shall be published in the Florida
16  Statutes as a subsection of this section, irrespective of the
17  duration of the levy.  Each enactment shall specify the types
18  of counties authorized to levy; the rate or rates which may be
19  imposed; the maximum length of time the surtax may be imposed,
20  if any; the procedure which must be followed to secure voter
21  approval, if required; the purpose for which the proceeds may
22  be expended; and such other requirements as the Legislature
23  may provide.  Taxable transactions and administrative
24  procedures shall be as provided in s. 212.054.
25         (1)  CHARTER COUNTY TRANSPORTATION TRANSIT SYSTEM
26  SURTAX.--
27         (a)  Each charter county which adopted a charter prior
28  to January 1, 1984, and each county the government of which is
29  consolidated with that of one or more municipalities, may levy
30  a discretionary sales surtax, subject to approval by a
31  majority vote of the electorate of the county or by a charter
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    Florida Senate - 2007                                  SB 2880
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 1  amendment approved by a majority vote of the electorate of the
 2  county.
 3         (b)  The rate shall be up to 1 percent.
 4         (c)  The proposal to adopt a discretionary sales surtax
 5  as provided in this subsection and to create a trust fund
 6  within the county accounts shall be placed on the ballot in
 7  accordance with law at a time to be set at the discretion of
 8  the governing body.
 9         (d)  Proceeds from the surtax shall be applied to as
10  many or as few of the uses enumerated below in whatever
11  combination the county commission deems appropriate:
12         1.  Deposited by the county in the trust fund and shall
13  be used for the purposes of development, construction,
14  equipment, maintenance, operation, supportive services,
15  including a countywide bus system, and related costs of a
16  fixed guideway rapid transit system;
17         2.  Remitted by the governing body of the county to a
18  transit an expressway or transportation authority created by
19  law to be used, at the discretion of such authority, for the
20  development, construction, operation, or maintenance of roads
21  or bridges in the county, for the operation and maintenance of
22  a bus system, for the payment of principal and interest on
23  existing bonds issued for the construction of such roads or
24  bridges, and, upon approval by the county commission, such
25  proceeds may be pledged for bonds issued to refinance existing
26  bonds or new bonds issued for the construction of such roads
27  or bridges;
28         3.  Used by the charter county for the development,
29  construction, operation, and maintenance of roads and bridges
30  in the county; for the expansion, operation, and maintenance
31  of bus and fixed guideway systems; and for the payment of
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    Florida Senate - 2007                                  SB 2880
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 1  principal and interest on bonds issued for the construction of
 2  fixed guideway rapid transit systems, bus systems, roads, or
 3  bridges; and such proceeds may be pledged by the governing
 4  body of the county for bonds issued to refinance existing
 5  bonds or new bonds issued for the construction of such fixed
 6  guideway rapid transit systems, bus systems, roads, or bridges
 7  and no more than 25 percent used for nontransit uses; and
 8         4.  Used by the charter county for the planning,
 9  development, construction, operation, and maintenance of roads
10  and bridges in the county; for the planning, development,
11  expansion, operation, and maintenance of bus and fixed
12  guideway systems; and for the payment of principal and
13  interest on bonds issued for the construction of fixed
14  guideway rapid transit systems, bus systems, roads, or
15  bridges; and such proceeds may be pledged by the governing
16  body of the county for bonds issued to refinance existing
17  bonds or new bonds issued for the construction of such fixed
18  guideway rapid transit systems, bus systems, roads, or
19  bridges. Pursuant to an interlocal agreement entered into
20  pursuant to chapter 163, the governing body of the charter
21  county may distribute proceeds from the tax to a municipality,
22  or an expressway or transportation authority created by law to
23  be expended for the purpose authorized by this paragraph.
24         Section 2.  Subsection (4) of section 320.072, Florida
25  Statutes, is amended to read:
26         320.072  Additional fee imposed on certain motor
27  vehicle registration transactions.--
28         (4)  A tax collector or other duly authorized agent of
29  the department shall promptly remit all moneys collected
30  pursuant to this section, less any refunds granted pursuant to
31  subsection (3), to the department to be deposited. The
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    Florida Senate - 2007                                  SB 2880
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 1  department shall deposit such moneys as they are received into
 2  the State Transportation Trust Fund. Thirty percent of all
 3  such moneys shall be used to fund the County Incentive Grant
 4  Program provided in s. 339.2817.
 5         Section 3.  Paragraph (c) of subsection (1) of section
 6  336.025, Florida Statutes, is amended to read:
 7         336.025  County transportation system; levy of local
 8  option fuel tax on motor fuel and diesel fuel.--
 9         (1)
10         (c)  Local governments may use the services of the
11  Division of Bond Finance of the State Board of Administration
12  pursuant to the State Bond Act to issue any bonds through the
13  provisions of this section and may pledge the revenues from
14  local option fuel taxes to secure the payment of the bonds. In
15  no case may a jurisdiction issue bonds pursuant to this
16  section more frequently than once per year. Counties and
17  municipalities may join together for the issuance of bonds
18  issued pursuant to this section.
19         Section 4.  Paragraph (a) of subsection (3) of section
20  337.11, Florida Statutes, is amended to read:
21         337.11  Contracting authority of department; bids;
22  emergency repairs, supplemental agreements, and change orders;
23  combined design and construction contracts; progress payments;
24  records; requirements of vehicle registration.--
25         (3)(a)  On all construction contracts of $250,000 or
26  less, and any construction contract of less than $500,000 for
27  which the department has waived prequalification under s.
28  337.14, the department shall advertise for bids in a newspaper
29  having general circulation in the county where the proposed
30  work is located.  Publication shall be at least once a week
31  for no less than 2 consecutive weeks, and the first
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 1  publication shall be no less than 14 days prior to the date on
 2  which bids are to be received.
 3         Section 5.  Subsection (1) of section 337.14, Florida
 4  Statutes, is amended to read:
 5         337.14  Application for qualification; certificate of
 6  qualification; restrictions; request for hearing.--
 7         (1)  Any person desiring to bid for the performance of
 8  any construction contract in excess of $250,000 which the
 9  department proposes to let must first be certified by the
10  department as qualified pursuant to this section and rules of
11  the department.  The rules of the department shall address the
12  qualification of persons to bid on construction contracts in
13  excess of $250,000 and shall include requirements with respect
14  to the equipment, past record, experience, financial
15  resources, and organizational personnel of the applicant
16  necessary to perform the specific class of work for which the
17  person seeks certification. The department is authorized to
18  limit the dollar amount of any contract upon which a person is
19  qualified to bid or the aggregate total dollar volume of
20  contracts such person is allowed to have under contract at any
21  one time.  Each applicant seeking qualification to bid on
22  construction contracts in excess of $250,000 shall furnish the
23  department a statement under oath, on such forms as the
24  department may prescribe, setting forth detailed information
25  as required on the application.  Each application for
26  certification shall be accompanied by the latest annual
27  financial statement of the applicant completed within the last
28  12 months. If the annual financial statement shows the
29  financial condition of the applicant more than 4 months prior
30  to the date on which the application is received by the
31  department, then an interim financial statement must also be
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 1  submitted.  The interim financial statement must cover the
 2  period from the end date of the annual statement and must show
 3  the financial condition of the applicant no more than 4 months
 4  prior to the date on which the application is received by the
 5  department.  Each required annual or interim financial
 6  statement must be audited and accompanied by the opinion of a
 7  certified public accountant or a public accountant approved by
 8  the department.  The information required by this subsection
 9  is confidential and exempt from the provisions of s.
10  119.07(1).  The department shall act upon the application for
11  qualification within 30 days after the department determines
12  that the application is complete. The department may waive the
13  requirements of this subsection for projects having a contract
14  price of $500,000 or less if the department determines that
15  the project is of a noncritical nature and the waiver will not
16  endanger public health, safety, or property.
17         Section 6.  Paragraph (a) of subsection (1) of section
18  337.18, Florida Statutes, is amended to read:
19         337.18  Surety bonds for construction or maintenance
20  contracts; requirement with respect to contract award; bond
21  requirements; defaults; damage assessments.--
22         (1)(a)  A surety bond shall be required of the
23  successful bidder in an amount equal to the awarded contract
24  price. However, with regard to a multiyear maintenance
25  contract, the department may choose to allow for incremental
26  annual contract bonds that cumulatively total the full,
27  awarded multiyear contract price. For a project for which the
28  contract price is $250,000 $150,000 or less, the department
29  may waive the requirement for all or a portion of a surety
30  bond if it determines the project is of a noncritical nature
31  and nonperformance will not endanger public health, safety, or
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 1  property. If the secretary or his or her designee determines
 2  that it is in the best interest of the department to reduce
 3  the bonding requirement for a project and that doing so will
 4  not endanger public health, safety, or property, the
 5  department may waive the requirement of a surety bond in an
 6  amount equal to the awarded contract price if the project has
 7  a contract price of $250 million or more. In place of a surety
 8  bond that covers the total amount of the contract, the
 9  department may set a surety bond amount that is a portion of
10  the total contract price and provide an alternate means of
11  security for the balance of the contract amount which is not
12  covered by the surety bond. The department also may provide
13  for incremental surety bonding and provide an alternate means
14  of security for the balance of the contract amount which is
15  not covered by the surety bond. Such alternative means of
16  security may include letters of credit, United States bonds
17  and notes, parent company guaranties, and cash collateral. The
18  department may require alternate means of security if a surety
19  bond is waived. The surety on such bond shall be a surety
20  company authorized to do business in the state. All bonds
21  shall be payable to the department and conditioned for the
22  prompt, faithful, and efficient performance of the contract
23  according to plans and specifications and within the time
24  period specified, and for the prompt payment of all persons
25  defined in s. 713.01 furnishing labor, material, equipment,
26  and supplies for work provided in the contract; however,
27  whenever an improvement, demolition, or removal contract price
28  is $25,000 or less, the security may, in the discretion of the
29  bidder, be in the form of a cashier's check, bank money order
30  of any state or national bank, certified check, or postal
31  money order. The department shall adopt rules to implement
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 1  this subsection. Such rules shall include provisions under
 2  which the department shall refuse to accept bonds on contracts
 3  when a surety wrongfully fails or refuses to settle or provide
 4  a defense for claims or actions arising under a contract for
 5  which the surety previously furnished a bond.
 6         Section 7.  Subsection (1) of section 338.2275, Florida
 7  Statutes, is amended to read:
 8         338.2275  Approved turnpike projects.--
 9         (1)  Legislative approval of the department's tentative
10  work program that contains the turnpike project constitutes
11  approval to issue bonds as required by s. 11(f), Art. VII of
12  the State Constitution. Turnpike projects approved to be
13  included in future tentative work programs include, but are
14  not limited to, projects contained in the 2003-2004 tentative
15  work program. A maximum of $4.5 billion of bonds may be issued
16  to fund approved turnpike projects.
17         Section 8.  Subsection (2) and paragraph (a) of
18  subsection (4) of section 339.2819, Florida Statutes, are
19  amended to read:
20         339.2819  Transportation Regional Incentive Program.--
21         (2)  The percentage of matching funds provided from the
22  Transportation Regional Incentive Program shall be 50 percent
23  of project costs, or up to 50 percent of the nonfederal share
24  of the eligible project cost for a public transportation
25  facility project.
26         (4)(a)  Projects to be funded with Transportation
27  Regional Incentive Program funds shall, at a minimum:
28         1.  Support those transportation facilities that serve
29  national, statewide, or regional functions and function as an
30  integrated regional transportation system.
31  
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 1         2.  Be identified in the capital improvements element
 2  of a comprehensive plan that has been determined to be in
 3  compliance with part II of chapter 163, after July 1, 2005, or
 4  to implement a long-term concurrency management system adopted
 5  by a local government in accordance with s. 163.3180(9).
 6  Further, the project shall be in compliance with local
 7  government comprehensive plan policies relative to corridor
 8  management.
 9         3.  Be consistent with the Strategic Intermodal System
10  Plan developed under s. 339.64.
11         4.  Have a commitment for local, regional, or private
12  financial matching funds as a percentage of the overall
13  project cost.
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15  Notwithstanding the provisions of this paragraph, projects
16  funded with these funds which are not part of the Strategic
17  Intermodal System or interstate highway system, or those
18  projects that are part of these systems and located in a rural
19  area of critical economic concern, need meet only the local
20  level-of-service requirements established by the local
21  government in accordance with chapter 163.
22         Section 9.  This act shall take effect July 1, 2007.
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 1            *****************************************
 2                          SENATE SUMMARY
 3    Authorizes a charter county to adopt a local
      transportation surtax by referendum. Redesignates the
 4    term "transit surtax" as "transportation surcharge".
      Requires that a specified portion of the additional fee
 5    imposed on certain motor vehicle transactions be used to
      fund the County Incentive Grant Program. Authorizes local
 6    governments to issue bonds secured by revenue from local
      option fuel taxes more than once per year. Requires the
 7    Department of Transportation to advertise for bids on all
      construction contracts below a specified amount under
 8    certain circumstances. Authorizes the department to waive
      qualification requirements for contractors under certain
 9    circumstances. Provides the department with discretion to
      reduce bond requirements under certain circumstances.
10    Provides for the use of incremental surety bonds under
      certain circumstances. Requires that a specified percent
11    of matching funds be provided from the Transportation
      Regional Incentive Program. Provides exceptions to
12    project requirements for certain projects.
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