HomeMy WebLinkAboutBack-Up from Law Dept1
2
3
4
5
6
'7
-- 8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
ENROLLED
2016 Legislature CS for SB 124
2016124er
An act relating to public -private partnerships;
transferring, renumbering, and amending s. 287.05712,
F.S.; revising definitions; deleting provisions
creating the Public -Private Partnership Guidelines
Task Force; requiring a private entity that submits an
unsolicited proposal to pay an initial application fee
and additional amOunt-S-_If —the fee does not cover
certain costs; specifying payment methods; requiring a
professional review and evaluation of design and
construction to be completed for certain unsolicited
proposals; specifying requirements; authorizing a
responsible public entity to alter the statutory
timeframe for accepting proposals for a qualifying
project under certain circumstances; requiring a
design criteria package to be submitted to a
responsible public entity if such entity solicits
specific proposals; deleting a provision that requires
approval of the local governing body before a school
board enters into a comprehensive agreement; revising
the conditions necessary for a responsible public
entity to approve a comprehensive agreement; deleting
provisions relating to notice to affected local
jurisdictions; providing that fees imposed by a
private entity must be applied as set forth in the
comprehensive agreement; authorizing a negotiated
portion of revenues from fee -generating uses to be
returned to the responsible public entity; restricting
provisions in financing agreements that could result
Page 1 of 26
CODING: Words strickcn are deletions; words underlined are additions.
30
31
32
33
34
35
36
ENROLLED
2016 Legislature CS for SB 124
2016124er
in a responsible public entity's losing ownership of
real or tangible personal property; deleting a
provision that required a responsible public entity to
comply with specific financial obligations; providing
duties of the Department of Management Services
relating to comprehensive agreements; revising
provisions relating to construction of the act;
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
providing ari effective date:
Be It Enacted by the Legislature of the State of Florida:
Section 1. Section 287.05712, Florida Statutes, is
transferred, renumbered as section 255.065, Florida Statutes,
and amended to read:
255.065 287.05712 Public -private partnerships.—
(1) DEFINITIONS. —As used in this section, the term:
(a) "Affected local jurisdiction" means a county,
municipality, or special district in which all or a portion of a
qualifying project is located.
(b) "Develop" means to plan, design, finance, lease,
acquire, install, construct, or expand.
(c) "Fees" means charges imposed by the private entity of a
qualifying project for use of all or a portion of such
qualifying project pursuant to a comprehensive agreement.
(d) "Lease payment" means any form of payment, including a
land lease, by a public entity to the private entity of a
qualifying project for the use of the project.
(e) "Material default" means a nonperformance of its duties
by the private entity of a qualifying project which jeopardizes
Page 2 of 26
CODING: Words -stricken are deletions; words underlined are additions.
59
60
61
62
63
64
65
ENROLLED
2016 Legislature CS for SB 124
2016124er
adequate service to the public from the project.
(f) "Operate" means to finance, maintain, improve, equip,
modify, or repair.
(g) "Private entity" means any natural person, corporation,
general partnership, limited liability company, limited
partnership, joint venture, business trust, public benefit
corporation, nonprofit entity, or other private business entity.
-66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
(h)-: "P7roposal'-ine-an a-plf-or a qual-Lfying project with
detail beyond a conceptual level for which terms such as fixing
costs, payment schedules,
schedule are defined.
(i) "Qualifying project" means:
1. A facility or project that serves a
including, but not limited to, any ferry or
facility, vehicle parking facility, airport
financing, deliverables,
and project
public purpose,
mass transit
or seaport facility,
rail facility or project, fuel supply facility, oil or gas
pipeline, medical or nursing care facility, recreational
facility, sporting or cultural facility, or educational facility
or other building or facility that is used or will be used by a
public educational institution, or any other public facility or
infrastructure that is used or will be used by the public at
large or in support of an accepted public purpose or activity;
2. An improvement, including equipment, of a building that
will be principally used by a public entity or the public at
large or that supports a service delivery system in the public
sector;
3. A water, wastewater, or surface water management
facility or other related infrastructure; or
4. Notwithstanding any provision of this section, for
Page 3 of 26
CODING: Words ctrickcn are deletions; words underlined are additions.
88
89
90
91
92
93
94
ENROLLED
2016 Legislature CS for SB 124
2016124er
projects that involve a facility owned or operated by the
governing board of a county, district, or municipal hospital or
health care system, or projects that involve a facility owned or
operated by a municipal electric utility, only those projects
that the governing board designates as qualifying projects
pursuant to this section.
(j) "Responsible public entity" means a county,
9 5-
96
97
98
99
100
101
102
103
104
105
1.06
107
108
109
110
111
112
113
114
115
116
municipality, school district, special -district, board, or -any
other political subdivision of the state; a public body
corporate and politic; or a regional entity that serves a public
purpose and is authorized to develop or operate a qualifying
project.
(k) "Revenues" means the income, earnings, user fees, lease
payments, or other service payments relating to the development
or operation of a qualifying project, including, but not limited
to, money received as grants or otherwise from the Federal
Government, a public entity, or an agency or instrumentality
thereof in aid of the qualifying project.
(1) "Service contract" means a contract between a
responsible public entity and the private entity which defines
the terms of the services to be provided with respect to a
qualifying project.
(2) LEGISLATIVE FINDINGS AND INTENT. —The Legislature finds
that there is a public -need for the construction or upgrade of
facilities that are used predominantly for public purposes and
that it is in the public's interest to provide for the
construction or upgrade of such facilities.
(a) The Legislature also finds that:
1. There is a public need for timely and cost-effective
Page 4 of 26
CODING: Words stricken are deletions; words underlined are additions.
117
118
119
12.0
121
122
123
ENROLLED
2016 Legislature CS for SB 124
2016124er
acquisition, design, construction, improvement, renovation,
expansion, equipping, maintenance, operation, implementation, or
installation of projects serving a public purpose, including
educational facilities, transportation facilities, water or
wastewater management facilities and infrastructure, technology
infrastructure, roads, highways, bridges, and other public
infrastructure and government facilities within the state which
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
serve a public need and purpose, and that -such public need may
not be wholly satisfied by existing procurement methods.
2. There are inadequate resources to develop new
educational facilities, transportation facilities, water or
wastewater management facilities and infrastructure, technology
infrastructure, roads, highways, bridges, and other public
infrastructure and government facilities for the benefit of
residents of this state, and that a public -private partnership
has demonstrated that it can meet the needs by improving the
schedule for delivery, lowering the cost, and providing other
benefits to the public.
3. There may be state and federal tax incentives that
promote partnerships between public and private entities to
develop and operate qualifying projects.
4. A procurement under this section serves the public
purpose of this section if such procurement facilitates the
timely development or operation of a qualifying project.
(b) It is the intent of the Legislature to encourage
investment in the state by private entities; to facilitate
various bond financing mechanisms, private capital, and other
funding sources for the development and operation of qualifying
projects, including expansion and acceleration of such financing
Page 5 of 26
CODING: Words strickcn are deletions; words underlined are additions.
146
147
148
149
150
151
152
ENROLLED
2016 Legislature CS for SB 124
2016124er
to meet the public need; and to provide the greatest possible
flexibility to public and private entities contracting for the
provision of public services.
(3) PUBLIC PRIVATE PARTNERSHIP CUIDELINES TASK FORCE.
(a) There is created thc Partnership f r Public Facilitico
and Infrastructure Act Cuidclincs Task F rcc f r t-he purp oc f
rccommonding guidelines for thc Legislature to consider for
1-53
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
private partnerships, including thc types f fact rc rccp nsiblc
public cntitico oh uld review and c nsidcr when pr ccooing
rcqucsto for public private partnership projects pursuant to
this sccti n.
(b) Thc task f rcc shall bc composed of sown mcrbcro, as
follows
1. Thc Secretary f Managcmcn.t Scrvicco r his r her
designee, wh shall servo as chair f thc task f roc.
2. Six members app intcd by thc C vcrn r, as f 11 wo:
a. Onc c unty g vcrnmcnt fficia-1—
c. nc district och 1 b and mcmbcr.
d. Thrcc rcproocntatives of thc business community.
(c) Task f rcc members muo-t bc app intcd by July-31, 2013.
By August 31, 2013, thc task force shall mcct to establish
pr ccdurco f r the conduct f its business and t elect a vice
chair. Thc task forcc shall mcct at thc call f thc chair. A
stytco a qu rum,
and a qu rum is necessary f r the purp oc f v ting n any
action or recommendation of thc task forcc. All mcctingo shall
bc held in Tallahaoocc, unlcoo thcrwioc decided by the tack
Page 6 of 26
CODING: Words otrickcn are deletions; words underlined are additions.
175
176
177
178
179
180
181
ENROLLED
2016 Legislature CS for SB 124
2016124er
force, and then no more than -e c ^t;-nga ma beheld in
other locations for thc purpose of taking public testimony.
2ldminictrativc and technical support shall be provided by thc
T deiet. Tack f rcc members shall scrvc with ut c mpcnsation
and arc not cntiticd to re ,mb s-emcnt €e-==pew-diem or travel
expenses.
(d) In rcvicwing public private partnerships and dcvcl p-
--18-2
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
-rccommc-ndatrona, thc task force must consider.
1. Opportunities for competition through public notice and
-t-ire--ava ab�i of rep- tativcs of thc responsible public
cntity to mcct with private entities considering a proposal-
2. Rcas nablc criteria f r ch sing among c mpcting
pr p sals .
3. Suggested timelines for selecting proposals and
neg tiating an intcrim r comprehensive agrccmcnt.
timeln-ea—fihould be consid-erem€or propesa . i vo, i -
qualifying pr jcct that thc resp nsiblc public cntity deems a
pri r_ity.
5. Pr ccdurcs f r financial revicw and analysis which, at a
minimum, include a c st benefit analysis, an assessment f
pp rtunity c st, and c nsidcrati n f thc rcoults f all
studies and analyses related t thc pr p scd qualifying pr jcct.
6. The adequacy of thc information released when seeking
c-err1tg pr p sals and pr viding f r thc enhancement f that
information, if dccmcd necessary, to encourage competition.
7. C m public rcc rdc and public
meeting- requirements, if any changes to those exemptions arc
mica-�-ar , e-r---f--a-n - e��cxcm-pyre c aho l be created in order
Page 7 of 26
CODING: Words stricken are deletions; words underlined are additions.
204
205
206
207
208
209
210
ENROLLED
201E Legislature CS for SB 124
2016124er
to maintain the confidentiality of financial and proprictar.y
inf rmati n received as part f an uno licitcd pr p oal•
8. Rccommcndationc regarding the authority of thc
a Pena e icee enter* t ng the scrvicco of qualified
pr fcoci nalo,�t io a i ludo a Flo da- re istorc
pr_ofcooional or a r_cTtificd public accountant, not otherwise
employed by thc rastaensible public cntity, to provide an
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
independent analysis regarding the spccifico, advantagco,
dio a 1 -age � and to - tc Fla a o r+ _+ �t of o. rcqucot
by a private entity f r appr val f a qualifying project, unless
thc g vcrning b dy f thc ,ublic cntity determines that sreh
analysis should be performed by employees of the public cntity.
(c) Thc task f rcc must submit a final rep rt f its
rcc mmcndati no t the C vcrn r, the Preoidcnt f thc Scnatc,
thc Spcakcr f thc II uoc f Representatives by July 1, 2014.
(f) Thc task f rcc is tcrminatcd December 31, 2011.. Thc
cstabliohmcnt f guidclinco pursuant to this ocction or thc
ad pti n f such guidclinco by a rcop noiblc public cntity is
not required for ouch entity to rcqucot or receive proposals for
qualifying pr j cct or to enter intoi nr^nt
f r a qualifying pr j-ect. A rcop nsiblc public entity may adept
guidclinco so long as such guidelines arc not inconsistent with
this ocction.
(3)44-)- PROCUREMENT PROCEDURES. —A responsible public entity
may receive unsolicited proposals or may solicit proposals for a
qualifying project pr jccto and may thereafter enter into a
comprehensive an- agreement with a private entity, or a
consortium of private entities, for the building, upgrading,
operating, ownership, or financing of facilities.
Page 8 of 26
CODING: Words stricken are deletions; words underlined are additions.
233
234
235
236
237
238
239
ENROLLED
2016 Legislature CS for SB 124
2016124er
(a)1. The responsible public entity may establish a
reasonable application fee for the submission of an unsolicited
proposal under this section.
2. A private entity that submits an unsolicited proposal to
a responsible public entity must concurrently pay an initial
application fee, as determined by the responsible public entity.
Payment must be made by cash, cashier's check, or other
2 40-
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
noncance1abie instrument. Personal checks may not -be -accepted.
3. If the initial application fee does not cover the
responsible public entity's costs to evaluate the unsolicited
proposal, the responsible public entity must request in writing
the additional amounts required. The private entity must pay the
requested additional amounts within 30 days after receipt of the
notice. The responsible public entity may stop its review of the
unsolicited proposal if the private entity fails to pay the
additional amounts.
4. If the responsible public entity does not evaluate the
unsolicited proposal, the responsible public entity must return
the application fee Thc fcc must be sufficient to pay thc costs
f evaluating thc pr p sal. Thc resp nsiblc public entity may
engage thc services of a private consultant to a.sist in thc
evaluation.
5. If the responsible public entity chooses to evaluate an
unsolicited proposal involving architecture, engineering or
landscape architecture, it must ensure a professional review and
evaluation of the design and construction proposed by the
initial or subsequent proposers to assure material quality
standards, interior space utilization, budget estimates, design
and construction schedules and sustainable design and
Page 9 of 26
CODING: Words strickcn are deletions; words underlined are additions.
262
263
264
265
266
267
268
ENROLLED
2016 Legislature CS for SE 124
2016124er
construction standards consistent with public projects. Such
review shall be performed by an architect, a landscape architect
or an engineer licensed in this state qualified to perform the
review and such professional shall advise the responsible public
entity through completion of the design and construction of the
project.
(b) The responsible public entity may request a proposal
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
from private entities for a qualifying public priv-otc project
or, if the responsible public entity receives an unsolicited
proposal for a qualifying public privatc project and the
responsible public entity intends to enter into a comprehensive
agreement for the project described in the such unsolicited
proposal, the responsible public entity shall publish notice in.
the Florida Administrative Register and a newspaper of general
circulation at least once a week for 2 weeks stating that the
responsible public entity has received a proposal and will
accept other proposals for the same project. The timeframe
within which the responsible public entity may accept other
proposals shall be determined by the responsible public entity
on a project -by -project basis based upon the complexity of the
qualifying project and the public benefit to be gained by
allowing a longer or shorter period of time within which other
proposals may be received; however, the timeframe for allowing
other proposals must be at least 21 days, but no more than 120
days, after the initial date of publication. If approved by a
majority vote of the responsible public entity's governing body,
the responsible public entity may alter the timeframe for
accepting proposals to more adequately suit the needs of the
qualifying project. A copy of the notice must be mailed to each
Page 10 of 26
CODING: Words stricken are deletions; words underlined are additions.
291
292
293
294
295
296
297
ENROLLED
2016 Legislature CS for SB 124
2016124er
local government in the affected area.
(c) If the solicited qualifying project provided in
paragraph (b) includes design work, the solicitation must
include a design criteria package prepared by an architect, a
landscape architect, or an engineer licensed in this state which
is sufficient to allow private entities to prepare a bid or a
response. The design criteria package must specify reasonably
2-9-8
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
specific criteria for the qualifying project such -as -the legal--- --
description of the site, with survey information; interior space
requirements; material quality standards; schematic layouts and
conceptual design criteria for the qualifying project; cost or
budget estimates; design and construction schedules; and site
development and utility requirements. The licensed design
professional who prepares the design criteria package shall be
retained to serve the responsible public entity through
completion of the design and construction of the project A
responsible public entity that is a school board may enter into
a comprehensive agreement only with thc approval of thc local
governing body.
(d) Before approving a comprehensive agreement approval,
the responsible public entity must determine that the proposed
project:
1. Is in the public's best interest.
2. Is for a facility that is owned by the responsible
public entity or for a facility for which ownership will be
conveyed to the responsible public entity.
3. Has adequate safeguards in place to ensure that
additional costs or service disruptions are not imposed on the
public in the event of material default or cancellation of the
Page 11 of 26
CODING: Words stricken are deletions; words underlined are additions.
320
321
322
323
324
325
326
ENROLLED
2016 Legislature CS for SB 124
2016124er
comprehensive agreement by the responsible public entity.
4. Has adequate safeguards in place to ensure that the
responsible public entity or private entity has the opportunity
to add capacity to the proposed project or other facilities
serving similar predominantly public purposes.
5. Will be owned by the responsible public entity upon
completion, expiration, or termination of the comprehensive
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
agreement -and upon -payment -of the amounts financed.
(e) Before signing a comprehensive agreement, the
responsible public entity must consider a reasonable finance
plan that is consistent with subsection (9) (11); the qualifying
project cost; revenues by source; available financing; major
assumptions; internal rate of return on private investments, if
governmental funds are assumed in order to deliver a cost -
feasible project; and a total cash -flow analysis beginning with
the implementation of the project and extending for the term of
the comprehensive agreement.
(f) In considering an unsolicited proposal, the responsible
public entity may require from the private entity a technical
study prepared by a nationally recognized expert with experience
in preparing analysis for bond rating agencies. In evaluating
the technical study, the responsible public entity may rely upon
internal staff reports prepared by personnel familiar with the
operation of similar facilities or the advice of external
advisors or consultants who have relevant experience.
(4)(5) PROJECT APPROVAL REQUIREMENTS. —An unsolicited
proposal from a private entity for approval of a qualifying
project must be accompanied by the following material and
information, unless waived by the responsible public entity:
Page 12 of 26
CODING: Words stricken are deletions; words underlined are additions.
349
350
351
352
353
354
355
ENROLLED
2016 Legislature CS for SE 124
2016124er
(a) A description of the qualifying project, including the
conceptual design of the facilities or a conceptual plan for the
provision of services, and a schedule for the initiation and
completion of the qualifying project.
(b) A description of the method by which the private entity
proposes to secure the necessary property interests that are
required for the qualifying project.
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
(c-) A descraptaon of the private entaty's general plans tor
financing the qualifying project, including the sources of the
private entity's funds and the identity of any dedicated revenue
source or proposed debt or equity investment on behalf of the
private entity.
(d) The name and address of a person who may be contacted
for additional information concerning the proposal.
(e) The proposed user fees, lease payments, or other
service payments over the term of a comprehensive agreement, and
the methodology for and circumstances that would allow changes
to the user fees, lease payments, and other service payments
over time.
(f) Additional material or information that the responsible
public entity reasonably requests.
Any pricing or financial terms included in an unsolicited
proposal must be specific as to when the pricing or terms
expire.
(5)-(-6-)- PROJECT QUALIFICATION AND PROCESS. —
(a) The private entity, or the applicable party or parties
of the private entity's team, must meet the minimum standards
contained in the responsible public entity's guidelines for
Page 13 of 26
CODING: Words otricke-ft are deletions; words underlined are additions.
378
379
380
381
382
383
384
ENROLLED
2016 Legislature CS for SB 124
2016124er
qualifying professional services and contracts for traditional
procurement projects.
(b) The responsible public entity must:
1. Ensure that provision is made for the private entity's
performance and payment of subcontractors, including, but not
limited to, surety bonds, letters of credit, parent company
guarantees, and lender and equity partner guarantees. For the
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
components -ot- the qualifying -pr-oj ect= which--nvo-l-ve con-str-uction
performance and payment, bonds are required and are subject to
the recordation, notice, suit limitation, and other requirements
of s. 255.05.
2. Ensure the most efficient pricing of the security
package that provides for the performance and payment of
subcontractors.
3. Ensure that p--e-vioi n is made f r thc transfer f thc
private entity's bligati no if the comprehensive agreement
addresses termination upon is terminated or a material default
of the comprehensive agreement ccurs.
(c) After the public notification period has expired in the
case of an unsolicited proposal, the responsible public entity
shall rank the proposals received in order of preference. In
ranking the proposals, the responsible public entity may
consider factors that include, but are not limited to,
professional qualifications, general business terms, innovative
design techniques or cost -reduction terms, and finance plans.
The responsible public entity may then begin negotiations for a
comprehensive agreement with the highest -ranked firm. If the
responsible public entity is not satisfied with the results of
the negotiations, the responsible public entity may terminate
Page 14 of 26
CODING: Words stricken are deletions; words underlined are additions.
407
408
409
410
411
412
413
ENROLLED
2016 Legislature CS for SE 124
2016124er
negotiations with the proposer and negotiate with the second -
ranked cr subsequent -ranked firms, in the order consistent with
this procedure. If only one proposal is received, the
responsible public entity may negotiate in good faith, and if
the responsible public entity is not satisfied with the results
of the negotiations, the responsible public entity may terminate
negotiations with the proposer. Notwithstanding this paragraph,
_414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
_the responsible publia entQ=ty- may reject--alL pToposals-at any
point in the process until a contract with the proposer is
executed.
(d) The responsible public entity shall perform an
independent analysis of the proposed public -private partnership
which demonstrates the cost-effectiveness and overall public
benefit before the procurement process is initiated or before
the contract is awarded.
(e) The responsible public entity may approve the
development or operation of an educational facility, a
transportation facility, a water or wastewater management
facility or related infrastructure, a technology infrastructure
or other public infrastructure, or a government facility needed
by the responsible public entity as a qualifying project, or the
design or equipping of a qualifying project that is developed or
operated, if:
1. There is a public need for or benefit derived from a
project of the type that the private entity proposes as the
qualifying project.
2. The estimated cost of the qualifying project is
reasonable in relation to similar facilities.
3. The private entity's plans will result in the timely
Page 15 of 26
CODING: Words stricken are deletions; words underlined are additions.
436
437
438
439
440
441
442
ENROLLED
2016 Legislature CS for SB 124
2016124er
acquisition, design, construction, improvement, renovation,
expansion, equipping, maintenance, or operation of the
qualifying project.
(f) The responsible public entity may charge a reasonable
fee to cover the costs of processing, reviewing, and evaluating
the request, including, but not limited to, reasonable attorney
fees and fees for financial and technical advisors or
44-3
444
445
446
447
448
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
consultants and for other hedessary adViaorS o-r-c-onsultants-.-
(g) Upon approval of a qualifying project, the responsible
public entity shall establish a date for the commencement of
activities related to the qualifying project. The responsible
public entity may extend the commencement date.
(h) Approval of a qualifying project by the responsible
public entity is subject to entering into a comprehensive
agreement with the private entity.
(7) NOTICE T AFFECTED LOCAL JURISDICTIONS.
(a) Thc rcsp nsiblc public cntity must n tify cach affcctcd
1 cal jurisdicti n by furnishing a c py f thc pr p sal t caoh
affcctcd 1eea-1----el-i-eti-e-n—wg---a--proposal for a
qualifying pr jcct.
(b) Each affcctcd loca4—jurisdiction that is not a
resp nsiblc public entity f r thc respective qualifying pr jcct
writing any comments to thc responsible public cntity and
indicate whether thc facility in inc mpatiblc with thc 1 cal
thc capital improvements budget, any development of regional
impact pr cossc's r timelines, r thcr
plan. Thc responsible public entity shall consider thc comments
Page 16 of 26
CODING: Words stricken are deletions; words underlined are additions.
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
ENROLLED
2016 Legislature CS for SB 124
2016124er
f thc affected local juricdicti n bcf rc entering int a
comprehensive agreement with a private entity. If an affected
local jurisdiction fails to respond to thc responsible public
entity within the time pr vidcd in this paragraph, thc
nonresponcc is deemed an acknowledgment by the affected local
jurisdicti n that thc qualifying pr jcet is c mpatiblc with thc
local comprehensive plan, thc local infrastructure development
spending plan.
(6)-4-8-)- INTERIM AGREEMENT. -Before or in connection with the
negotiation of a comprehensive agreement, the responsible public
entity may enter into an interim agreement with the private
entity proposing the development or operation of the qualifying
project. An interim agreement does not obligate the responsible
public entity to enter into a comprehensive agreement. The
interim agreement is discretionary with the parties and is not
required on a qualifying project for which the parties may
proceed directly to a comprehensive agreement without the need
for an interim agreement. An interim agreement must be limited
to provisions that:
(a) Authorize the private entity to commence activities for
which it may be compensated related to the proposed qualifying
project, including, but not limited to, project planning and
development, design, environmental analysis and mitigation,
survey, other activities concerning any part of the proposed
qualifying project, and ascertaining the availability of
financing for the proposed facility or facilities.
(b) Establish the process and timing of the negotiation of
the comprehensive agreement.
Page 17 of 26
CODING: Words stricken are deletions; words underlined are additions.
494
495
496
497
498
499
500
-501
502
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
ENROLLED
2016 Legislature CS for SB 124
2016124er
(c) Contain such other provisions related to an aspect of
the development or operation of a qualifying project that the
responsible public entity and the private entity deem
appropriate.
(7)44-)- COMPREHENSIVE AGREEMENT. —
(a) developing or operating the qualifying project,
the private entity must enter into a comprehensive agreement
with -_the -responaible==pubLic enti-ty—The-comprehen-saive—agreement
must provide for:
1. Delivery of performance and payment bonds, letters of
credit, or other security acceptable to the responsible public
entity in connection with the development or operation of the
qualifying project in the form and amount satisfactory to the
responsible public entity. For the components of the qualifying
project which involve construction, the form and amount of the
bonds must comply with s. 255.05.
2. Review of the design for the qualifying project by the
responsible public entity and, if the design conforms to
standards acceptable to the responsible public entity, the
approval of the responsible public entity. This subparagraph
does not require the private entity to complete the design of
the qualifying project before the execution of the comprehensive
agreement.
3. Inspection of the qualifying project by the responsible
public entity to ensure that the private entity's activities are
acceptable to the responsible public entity in accordance with
the comprehensive agreement.
4. Maintenance of a policy of public liability insurance, a
copy of which must be filed with the responsible public entity
Page 18 of 26
CODING: Words strickcn are deletions; words underlined are additions.
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
ENROLLED
2016 Legislature CS for SB 124
2016124er
and accompanied by proofs of coverage, or self-insurance, each
in the form and amount satisfactory to the responsible public
entity and reasonably sufficient to ensure coverage of tort
liability to the public and employees and to enable the
continued operation of the qualifying project.
5. Monitoring by the responsible public entity of the
maintenance practices to be performed by the private entity to
- ensure —that the -qualifying -project -isTproperIy maintaine
6. Periodic filing by the private entity of the appropriate
financial statements that pertain to the qualifying project.
7. Procedures that govern the rights and responsibilities
of the responsible public entity and the private entity in the
course of the construction and operation of the qualifying
project and in the event of the termination of the comprehensive
agreement or a material default by the private entity. The
procedures must include conditions that govern the assumption of
the duties and responsibilities of the private entity by an
entity that funded, in whole or part, the qualifying project or
by the responsible public entity, and must provide for the
transfer or purchase of property or other interests of the
private entity by the responsible public entity.
8. Fees, lease payments, or service payments. In
negotiating user fees, the fees must be the same for persons
using the facility under like conditions and must not materially
discourage use of the qualifying project. The execution of the
comprehensive agreement or a subsequent amendment is conclusive
evidence that the fees, lease payments, or service payments
provided for in the comprehensive agreement comply with this
section. Fees or lease payments established in the comprehensive
Page 19 of 26
CODING: Words stricken are deletions; words underlined are additions.
552
553
554
555
556
557
558
-55-9
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
ENROLLED
2016 Legislature CS for SB 124
2016124er
agreement as a source of revenue may be in addition to, or in
lieu of, service payments.
9. Duties of the private entity, including the terms and
conditions that the responsible public entity determines serve
the public purpose of this section,
(b) The comprehensive agreement may include:
1. An agreement by the responsible public entity to make
579
580
grants or loans- to the —private- -entity- from —amounts- received from --
the federal, state, or local government or an agency or
instrumentality thereof.
2. A provision under which each entity agrees to provide
notice of default and cure rights for the benefit of the other
entity, including, but not limited to, a provision regarding
unavoidable delays.
3. A provision that terminates the authority and duties of
the private entity under this section and dedicates the
qualifying project to the responsible public entity or, if the
qualifying project was initially dedicated by an affected local
jurisdiction, to the affected local jurisdiction for public use.
(8)4441* FEES. —A comprehensive A agreement entered into
pursuant to this section may authorize the private entity to
impose fees to members of the public for the useof the
facility. The following provisions apply to the comprehensive
agreement:
(a) The responsible public entity may develop new
facilities or increase capacity in existing facilities through a
comprehensive agreement with a private entity agreements with
public private partnerships.
(b) The comprehensive public private partnership agreement
Page 20 of 26
CODING: Words -stricken are deletions; words underlined are additions.
581
582
583
584
585
586
587
-588
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
ENROLLED
2016 Legislature CS for SE 124
2016124er
must ensure that the facility is properly operated, maintained,
or improved in accordancewith standards set forth in the
comprehensive agreement.
(c) The responsible public entity may lease existing fee -
for -use facilities through. a comprehensive public private
p-artnership agreement.
(d) Any revenues must be authorized by and applied in the
manner:SetforthTinurated-by-the
pursuant t the comprehensive agreement.
(e) A negotiated portion of revenues from fee -generating
uses may must be returned to the responsible public entity over
the life of the comprehensive agreement.
(9) (11) FINANCING. -
(a) A private entity may enter into a private -source
financing agreement between financing sources and the private
entity. A financing agreement and any liens on the property or
facility must be paid in full at the applicable closing that
transfers ownership or operation of the facility to the
responsible public entity at the conclusion of the term of the
comprehensive agreement.
(b) The responsible public entity may lend funds to private
entities that construct projects containing facilities that are
approved under this section.
(c) The responsible public entity may use innovative
finance techniques associated with a public -private partnership
under this section, including, but not limited to, federal loans
as provided in Titles 23 and 49 C.F.R., commercial bank loans,
and hedges against inflation from commercial banks or other
private sources. In addition, the responsible public entity may
Page 21 of 26
CODING: Words stricken are deletions; words underlined are additions.
610
611
612
613
614
615
616
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
ENROLLED
2016 Legislature CS for SB 124
2016124er
provide its own capital or operating budget to support a
qualifying project. The budget may be from any legally
permissible funding sources of the responsible public entity,
including the proceeds of debt issuances. A responsible public
entity may use the model financing agreement provided in s.
489.145(6) for its financing of a facility owned by a
responsible public entity. A financing agreement may not require
the responsiEle-prublic-entfty-to-Indemftify-t-he
subject the responsible public entity's facility to liens in
violation of s. 11.066(5), or secure financing of by the
responsible public entity by a mortgage on, or security interest
in, the real or tangible personal property of the responsible
public entity in a manner that could result in the loss of the
fee ownership of the property by the responsible public entity
with a pledge f security interest, and any such, provision is
void.
(d) A responsible public entity shall appropriate on a
priority basis as required by comprchcncivc a
-contractual paymcnt obligation,--ann.bial or otherwise, from thc
projects will be funded. This required payment obligation must
be -appropriated before othcr noncontractual obliga-t4es payable
fr m thc same enterprise r thcr g vcrnmcnt fund.
(10) (12) POWERS AND DUTIES OF THE PRIVATE ENTITY. -
(a) The private entity shall:
1. Develop or operate the qualifying project in a manner
that is acceptable to the responsible public entity in
accordance with the provisions of the comprehensive agreement.
2. Maintain, or provide by contract for the maintenance or
Page 22 of 26
CODING: Words stricken are deletions; words underlined are additions.
639
640
641
642
643
644
645
646
647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
665
666
667
ENROLLED
2016 Legislature CS for SB 124
2016124er
improvement of, the qualifying project if required by the
comprehensive agreement.
3. Cooperate with the responsible public entity in making
best efforts to establish interconnection between the qualifying
project and any other facility or infrastructure as requested by
the responsible public entity in accordance with the provisions
of the comprehensive agreement.
4 Com1y with th=8-compeh-effs-iviTerft-arld-riy-i-or
service contract.
(b) Each private facility that is constructed pursuant to
this section must comply with the requirements of federal,
state, and local laws; state, regional, and local comprehensive
plans; the responsible public entity's rules, procedures, and
standards for facilities; and such other conditions that the
responsible public entity determines to be in the public's best
interest and that are included in the comprehensive agreement.
(c) The responsible public entity may provide services to
the private entity. An agreement for maintenance and other
services entered into pursuant to this section must provide for
full reimbursement for services rendered for qualifying
projects.
(d) A private entity of a qualifying project may provide
additional services for the qualifying project to the public or
to other private entities if the provision of additional
services does not impair the private entity's ability to meet
its commitments to the responsible public entity pursuant to the
comprehensive agreement.
(11) (13) EXPIRATION OR TERMINATION OF AGREEMENTS. -Upon the
expiration or termination of a comprehensive agreement, the
Page 23 of 26
CODING: Words -stIeReioir are deletions; words underlined are additions.
668
669
670
671
672
673
674
-675-
676
677
678
679
680
681
682
683
684
685
686
687
688
689
690
691
692
693
694
695
696
ENROLLED
2016 Legislature CS for SE 124
2016124er
responsible public entity may use revenues from the qualifying
project to pay current operation and maintenance costs of the
qualifying project. If the private entity materially defaults
under the comprehensive agreement, the compensation that is
otherwise due to the private entity is payable to satisfy all
financial obligations to investors and lenders on the qualifying
project in the same way that is provided in the comprehensive
--agreement or any other agreement involving the qualifying
project, if the costs of operating and. maintaining the
qualifying project are paid in the normal course. Revenues in
excess of the costs for operation and maintenance costs may be
paid to the investors and lenders to satisfy payment obligations
under their respective agreements. A responsible public entity
may terminate with. cause and without prejudice a comprehensive
agreement and may exercise any other rights or remedies that may
be available to it in accordance with the provisions of the
comprehensive agreement. The full faith and credit of the
responsible public entity may not be pledged to secure the
financing of the private entity. The assumption of the
development or operation of the qualifying project does not
obligate the responsible public entity to pay any obligation of
the private entity from sources other than revenues from the
qualifying project unless stated otherwise in the comprehensive
agreement.
(12) (14) SOVEREIGN IMMUNITY. —This section does not waive
the sovereign immunity of a responsible public entity, an
affected local jurisdiction, or an officer or employee thereof
with respect to participation in, or approval of, any part of a
qualifying project or its operation, including, but not limited
Page 24 of 26
CODING: Words stricken are deletions; words underlined are additions.
697
698
699
700
701
702
703
-704-
705
706
707
708
709
710
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
ENROLLED
2016 Legislature CS for SB 124
2016124er
to, interconnection of the qualifying project with any other
infrastructure or project. A county or municipality in which a
qualifying project is located possesses sovereign immunity with
respect to the project, including, but not limited to, its
design, construction, and operation.
(13) DEPARTMENT OF MANAGEMENT SERVICES. —
(a) A responsible public entity may provide a copy of its
comprehensive agreement to the Department of Management
Services. A responsible public entity must redact any
confidential or exempt information from the copy of the
comprehensive agreement before providing it to the Department of
Management Services.
(b) The Department of Management Services may accept and
maintain copies of comprehensive agreements received from
responsible public entities for the purpose of sharing
comprehensive agreements with other responsible public entities.
(c) This subsection does not require a responsible public
entity to provide a copy of its comprehensive agreement to the
Department of Management Services.
(14) (15)- CONSTRUCTION. —
(a) This section shall be liberally construed to effectuate
the purposes of this section.
(b) This section shall be construed as cumulative and
supplemental to any other authority or power vested in or
exercised by the governing body board of a county, municipality,
special district, or municipal hospital or health care system
including those contained in acts of the Legislature
establishing such public h spital b ards or c. 155.10.
(c) This section does not affect any agreement or existing
Page 25 of 26
CODING: Words stricken are deletions; words underlined are additions.
726
727
728
729
730
731
732
ENROLLED
2016 Legislature CS for SB 124
2016124er
relationship with a supporting organization involving such
governing body board or system in effect as of January 1, 2013.
(d)-(-a-)- This section provides an alternative method and does
not limit a county, municipality, special district, or other
political subdivision of the state in the procurement or
operation of a qualifying project acquisition, dcsign, or
constructi n f a public pr jcct pursuant to other statutory or
733
734
735
736
737
738
739
740
741
742
constitutional authority.
(e)41e* Except as otherwise provided in this section, this
section does not amend existing laws by granting additional
powers to, or further restricting, a local governmental entity
from regulating and entering into cooperative arrangements with
the private sector for the planning, construction, or operation
of a facility.
(f) (c) This section does not waive any requirement of s.
287.055.
Section 2. This act shall take effect July 1, 2016.
Page 26 of 26
CODING: Words °trick= are deletions; words underlined are additions.