Bill Text: FL S0824 | 2015 | Regular Session | Comm Sub
Bill Title: Public Procurement Practices
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Introduced - Dead) 2015-05-01 - Died on Calendar [S0824 Detail]
Download: Florida-2015-S0824-Comm_Sub.html
Florida Senate - 2015 CS for CS for CS for SB 824 By the Committees on Fiscal Policy; Governmental Oversight and Accountability; and Community Affairs; and Senator Evers 594-04433-15 2015824c3 1 A bill to be entitled 2 An act relating to public procurement practices; 3 transferring, renumbering, and amending s. 287.05712, 4 F.S.; revising definitions; deleting provisions 5 creating the Public-Private Partnership Guidelines 6 Task Force; requiring a private entity that submits an 7 unsolicited proposal to pay an initial application fee 8 and additional amounts if the fee does not cover 9 certain costs; specifying payment methods; authorizing 10 a responsible public entity to alter the statutory 11 timeframe for accepting proposals for a qualifying 12 project under certain circumstances; requiring a 13 responsible public entity to include a design criteria 14 package in a solicitation; specifying requirements for 15 the design criteria package; deleting a provision that 16 requires approval of the local governing body before a 17 school board enters into a comprehensive agreement; 18 revising the conditions necessary for a responsible 19 public entity to approve a comprehensive agreement; 20 deleting provisions relating to notice to affected 21 local jurisdictions; providing that fees imposed by a 22 private entity must be applied as set forth in the 23 comprehensive agreement; restricting provisions in 24 financing agreements that could result in a 25 responsible public entity’s losing ownership of real 26 or tangible personal property; deleting a provision 27 that requires a responsible public entity to comply 28 with specific financial obligations; providing duties 29 of the Department of Management Services; revising 30 provisions relating to construction of the act; 31 amending s. 287.0935, F.S.; increasing the dollar 32 threshold for a contract amount of a project for which 33 a person, the state, or a political subdivision is 34 prohibited from refusing a surety bond issued by a 35 surety company that meets certain criteria; revising 36 requirements for surety companies with respect to 37 bonds issued for certain publicly funded contracts; 38 providing an effective date. 39 40 Be It Enacted by the Legislature of the State of Florida: 41 42 Section 1. Section 287.05712, Florida Statutes, is 43 transferred, renumbered as section 255.065, Florida Statutes, 44 and amended to read: 45 255.065287.05712Public-private partnerships.— 46 (1) DEFINITIONS.—As used in this section, the term: 47 (a) “Affected local jurisdiction” means a county, 48 municipality, or special district in which all or a portion of a 49 qualifying project is located. 50 (b) “Develop” means to plan, design, finance, lease, 51 acquire, install, construct, or expand. 52 (c) “Fees” means charges imposed by the private entity of a 53 qualifying project for use of all or a portion of such 54 qualifying project pursuant to a comprehensive agreement. 55 (d) “Lease payment” means any form of payment, including a 56 land lease, by a public entity to the private entity of a 57 qualifying project for the use of the project. 58 (e) “Material default” means a nonperformance of its duties 59 by the private entity of a qualifying project which jeopardizes 60 adequate service to the public from the project. 61 (f) “Operate” means to finance, maintain, improve, equip, 62 modify, or repair. 63 (g) “Private entity” means any natural person, corporation, 64 general partnership, limited liability company, limited 65 partnership, joint venture, business trust, public benefit 66 corporation, nonprofit entity, or other private business entity. 67 (h) “Proposal” means a plan for a qualifying project with 68 detail beyond a conceptual level for which terms such as fixing 69 costs, payment schedules, financing, deliverables, and project 70 schedule are defined. 71 (i) “Qualifying project” means: 72 1. A facility or project that serves a public purpose, 73 including, but not limited to, any ferry or mass transit 74 facility, vehicle parking facility, airport or seaport facility, 75 rail facility or project, fuel supply facility, oil or gas 76 pipeline, medical or nursing care facility, recreational 77 facility, sporting or cultural facility, or educational facility 78 or other building or facility that is used or will be used by a 79 public educational institution, or any other public facility or 80 infrastructure that is used or will be used by the public at 81 large or in support of an accepted public purpose or activity; 82 2. An improvement, including equipment, of a building that 83 will be principally used by a public entity or the public at 84 large or that supports a service delivery system in the public 85 sector; 86 3. A water, wastewater, or surface water management 87 facility or other related infrastructure; or 88 4. Notwithstanding any provision of this section, for 89 projects that involve a facility owned or operated by the 90 governing board of a county, district, or municipal hospital or 91 health care system, or projects that involve a facility owned or 92 operated by a municipal electric utility, only those projects 93 that the governing board designates as qualifying projects 94 pursuant to this section. 95 (j) “Responsible public entity” means a county, 96 municipality, school district, special district, or Florida 97 College System institutionboard, or any other political 98 subdivision of the state; a public body corporate and politic; 99 or a regional entity that serves a public purpose and is 100 authorized to develop or operate a qualifying project. 101 (k) “Revenues” means the income, earnings, user fees, lease 102 payments, or other service payments relating to the development 103 or operation of a qualifying project, including, but not limited 104 to, money received as grants or otherwise from the Federal 105 Government, a public entity, or an agency or instrumentality 106 thereof in aid of the qualifying project. 107 (l) “Service contract” means a contract between a 108 responsible public entity and the private entity which defines 109 the terms of the services to be provided with respect to a 110 qualifying project. 111 (2) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds 112 that there is a public need for the construction or upgrade of 113 facilities that are used predominantly for public purposes and 114 that it is in the public’s interest to provide for the 115 construction or upgrade of such facilities. 116 (a) The Legislature also finds that: 117 1. There is a public need for timely and cost-effective 118 acquisition, design, construction, improvement, renovation, 119 expansion, equipping, maintenance, operation, implementation, or 120 installation of projects serving a public purpose, including 121 educational facilities, transportation facilities, water or 122 wastewater management facilities and infrastructure, technology 123 infrastructure, roads, highways, bridges, and other public 124 infrastructure and government facilities within the state which 125 serve a public need and purpose, and that such public need may 126 not be wholly satisfied by existing procurement methods. 127 2. There are inadequate resources to develop new 128 educational facilities, transportation facilities, water or 129 wastewater management facilities and infrastructure, technology 130 infrastructure, roads, highways, bridges, and other public 131 infrastructure and government facilities for the benefit of 132 residents of this state, and that a public-private partnership 133 has demonstrated that it can meet the needs by improving the 134 schedule for delivery, lowering the cost, and providing other 135 benefits to the public. 136 3. There may be state and federal tax incentives that 137 promote partnerships between public and private entities to 138 develop and operate qualifying projects. 139 4. A procurement under this section serves the public 140 purpose of this section if such procurement facilitates the 141 timely development or operation of a qualifying project. 142 (b) It is the intent of the Legislature to encourage 143 investment in the state by private entities; to facilitate 144 various bond financing mechanisms, private capital, and other 145 funding sources for the development and operation of qualifying 146 projects, including expansion and acceleration of such financing 147 to meet the public need; and to provide the greatest possible 148 flexibility to public and private entities contracting for the 149 provision of public services. 150(3) PUBLIC-PRIVATE PARTNERSHIP GUIDELINES TASK FORCE.—151(a) There is created the Partnership for Public Facilities152and Infrastructure Act Guidelines Task Force for the purpose of153recommending guidelines for the Legislature to consider for154purposes of creating a uniform process for establishing public155private partnerships, including the types of factors responsible156public entities should review and consider when processing157requests for public-private partnership projects pursuant to158this section.159(b) The task force shall be composed of seven members, as160follows:1611. The Secretary of Management Services or his or her162designee, who shall serve as chair of the task force.1632. Six members appointed by the Governor, as follows:164a. One county government official.165b. One municipal government official.166c. One district school board member.167d. Three representatives of the business community.168(c) Task force members must be appointed by July 31, 2013.169By August 31, 2013, the task force shall meet to establish170procedures for the conduct of its business and to elect a vice171chair. The task force shall meet at the call of the chair. A172majority of the members of the task force constitutes a quorum,173and a quorum is necessary for the purpose of voting on any174action or recommendation of the task force. All meetings shall175be held in Tallahassee, unless otherwise decided by the task176force, and then no more than two such meetings may be held in177other locations for the purpose of taking public testimony.178Administrative and technical support shall be provided by the179department. Task force members shall serve without compensation180and are not entitled to reimbursement for per diem or travel181expenses.182(d) In reviewing public-private partnerships and developing183recommendations, the task force must consider:1841. Opportunities for competition through public notice and185the availability of representatives of the responsible public186entity to meet with private entities considering a proposal.1872. Reasonable criteria for choosing among competing188proposals.1893. Suggested timelines for selecting proposals and190negotiating an interim or comprehensive agreement.1914. If an accelerated selection and review and documentation192timelines should be considered for proposals involving a193qualifying project that the responsible public entity deems a194priority.1955. Procedures for financial review and analysis which, at a196minimum, include a cost-benefit analysis, an assessment of197opportunity cost, and consideration of the results of all198studies and analyses related to the proposed qualifying project.1996. The adequacy of the information released when seeking200competing proposals and providing for the enhancement of that201information, if deemed necessary, to encourage competition.2027. Current exemptions from public records and public203meetings requirements, if any changes to those exemptions are204necessary, or if any new exemptions should be created in order205to maintain the confidentiality of financial and proprietary206information received as part of an unsolicited proposal.2078. Recommendations regarding the authority of the208responsible public entity to engage the services of qualified209professionals, which may include a Florida-registered210professional or a certified public accountant, not otherwise211employed by the responsible public entity, to provide an212independent analysis regarding the specifics, advantages,213disadvantages, and long-term and short-term costs of a request214by a private entity for approval of a qualifying project, unless215the governing body of the public entity determines that such216analysis should be performed by employees of the public entity.217(e) The task force must submit a final report of its218recommendations to the Governor, the President of the Senate,219and the Speaker of the House of Representatives by July 1, 2014.220(f) The task force is terminated December 31, 2014. The221establishment of guidelines pursuant to this section or the222adoption of such guidelines by a responsible public entity is223not required for such entity to request or receive proposals for224a qualifying project or to enter into a comprehensive agreement225for a qualifying project. A responsible public entity may adopt226guidelines so long as such guidelines are not inconsistent with227this section.228 (3)(4)PROCUREMENT PROCEDURES.—A responsible public entity 229 may receive unsolicited proposals or may solicit proposals for 230 qualifying projects and may thereafter enter into a 231 comprehensiveanagreement with a private entity, or a 232 consortium of private entities, for the building, upgrading, 233 operating, ownership, or financing of facilities. 234 (a)1. The responsible public entity may establish a 235 reasonable application fee for the submission of an unsolicited 236 proposal under this section. 237 2. A private entity that submits an unsolicited proposal to 238 a responsible public entity must concurrently pay an initial 239 application fee, as determined by the responsible public entity. 240 Payment must be made by cash, cashier’s check, or other 241 noncancelable instrument. Personal checks may not be accepted. 242 3. If the initial application fee does not cover the 243 responsible public entity’s costs to evaluate the unsolicited 244 proposal, the responsible public entity must request in writing 245 the additional amounts required. The private entity must pay the 246 requested additional amounts within 30 days after receipt of the 247 notice. The responsible public entity may stop its review of the 248 unsolicited proposal if the private entity fails to pay the 249 additional fee. 250 4. If the responsible public entity does not evaluate the 251 unsolicited proposal, the responsible public entity must return 252 the application feeThe fee must be sufficient to pay the costs253of evaluating the proposal. The responsible public entity may254engage the services of a private consultant to assist in the255evaluation. 256 (b) The responsible public entity may request a proposal 257 from private entities for a qualifyingpublic-privateproject 258 or, if the responsible public entity receives an unsolicited 259 proposal for a qualifyingpublic-privateproject and the 260 responsible public entity intends to enter into a comprehensive 261 agreement for the project described in thesuchunsolicited 262 proposal, the responsible public entity shall publish notice in 263 the Florida Administrative Register and a newspaper of general 264 circulation at least once a week for 2 weeks stating that the 265 responsible public entity has received a proposal and will 266 accept other proposals for the same project. The timeframe 267 within which the responsible public entity may accept other 268 proposals shall be determined by the responsible public entity 269 on a project-by-project basis based upon the complexity of the 270 qualifying project and the public benefit to be gained by 271 allowing a longer or shorter period of time within which other 272 proposals may be received; however, the timeframe for allowing 273 other proposals must be at least 21 days, but no more than 120 274 days, after the initial date of publication. If approved by a 275 majority vote of the responsible public entity’s governing body, 276 the responsible public entity may alter the timeframe for 277 accepting proposals to more adequately suit the needs of the 278 qualifying project. A copy of the notice must be mailed to each 279 local government in the affected area. 280 (c) If the responsible public entity solicits proposals 281 under this section, the solicitation must include a design 282 criteria package prepared by an architect, engineer, or 283 landscape architect licensed in this state which is sufficient 284 to allow private entities to prepare a bid or a response. The 285 design criteria package must specify performance-based criteria 286 for the project, including the legal description of the site, 287 with survey information; interior space requirements; material 288 quality standards; schematic layouts and conceptual design 289 criteria for the project; cost or budget estimates; design and 290 construction schedules; and site development and utility 291 requirementsA responsible public entity that is a school board292may enter into a comprehensive agreement only with the approval293of the local governing body. 294 (d) Before approving a comprehensive agreementapproval, 295 the responsible public entity must determine that the proposed 296 project: 297 1. Is in the public’s best interest. 298 2. Is for a facility that is owned by the responsible 299 public entity or for a facility for which ownership will be 300 conveyed to the responsible public entity. 301 3. Has adequate safeguards in place to ensure that 302 additional costs or service disruptions are not imposed on the 303 public in the event of material default or cancellation of the 304 comprehensive agreement by the responsible public entity. 305 4. Has adequate safeguards in place to ensure that the 306 responsible public entity or private entity has the opportunity 307 to add capacity to the proposed project or other facilities 308 serving similar predominantly public purposes. 309 5. Will be owned by the responsible public entity upon 310 completion, expiration, or termination of the comprehensive 311 agreement and upon payment of the amounts financed. 312 (e) Before signing a comprehensive agreement, the 313 responsible public entity must consider a reasonable finance 314 plan that is consistent with subsection (9)(11); the qualifying 315 project cost; revenues by source; available financing; major 316 assumptions; internal rate of return on private investments, if 317 governmental funds are assumed in order to deliver a cost 318 feasible project; and a total cash-flow analysis beginning with 319 the implementation of the project and extending for the term of 320 the comprehensive agreement. 321 (f) In considering an unsolicited proposal, the responsible 322 public entity may require from the private entity a technical 323 study prepared by a nationally recognized expert with experience 324 in preparing analysis for bond rating agencies. In evaluating 325 the technical study, the responsible public entity may rely upon 326 internal staff reports prepared by personnel familiar with the 327 operation of similar facilities or the advice of external 328 advisors or consultants who have relevant experience. 329 (4)(5)PROJECT APPROVAL REQUIREMENTS.—An unsolicited 330 proposal from a private entity for approval of a qualifying 331 project must be accompanied by the following material and 332 information, unless waived by the responsible public entity: 333 (a) A description of the qualifying project, including the 334 conceptual design of the facilities or a conceptual plan for the 335 provision of services, and a schedule for the initiation and 336 completion of the qualifying project. 337 (b) A description of the method by which the private entity 338 proposes to secure the necessary property interests that are 339 required for the qualifying project. 340 (c) A description of the private entity’s general plans for 341 financing the qualifying project, including the sources of the 342 private entity’s funds and the identity of any dedicated revenue 343 source or proposed debt or equity investment on behalf of the 344 private entity. 345 (d) The name and address of a person who may be contacted 346 for additional information concerning the proposal. 347 (e) The proposed user fees, lease payments, or other 348 service payments over the term of a comprehensive agreement, and 349 the methodology for and circumstances that would allow changes 350 to the user fees, lease payments, and other service payments 351 over time. 352 (f) Additional material or information that the responsible 353 public entity reasonably requests. 354 355 Any pricing or financial terms included in an unsolicited 356 proposal must be specific as to when the pricing or terms 357 expire. 358 (5)(6)PROJECT QUALIFICATION AND PROCESS.— 359 (a) The private entity, or the applicable party or parties 360 of the private entity’s team, must meet the minimum standards 361 contained in the responsible public entity’s guidelines for 362 qualifying professional services and contracts for traditional 363 procurement projects. 364 (b) The responsible public entity must: 365 1. Ensure that provision is made for the private entity’s 366 performance and payment of subcontractors, including, but not 367 limited to, surety bonds, letters of credit, parent company 368 guarantees, and lender and equity partner guarantees. For the 369 components of the qualifying project which involve construction 370 performance and payment, bonds are required and are subject to 371 the recordation, notice, suit limitation, and other requirements 372 of s. 255.05. 373 2. Ensure the most efficient pricing of the security 374 package that provides for the performance and payment of 375 subcontractors. 376 3. Ensure thatprovision is made for the transfer of the377private entity’s obligations ifthe comprehensive agreement 378 addresses termination uponis terminated ora material default 379 of the comprehensive agreementoccurs. 380 (c) After the public notification period has expired in the 381 case of an unsolicited proposal, the responsible public entity 382 shall rank the proposals received in order of preference. In 383 ranking the proposals, the responsible public entity may 384 consider factors that include, but are not limited to, 385 professional qualifications, general business terms, innovative 386 design techniques or cost-reduction terms, and finance plans. 387 The responsible public entity may then begin negotiations for a 388 comprehensive agreement with the highest-ranked firm. If the 389 responsible public entity is not satisfied with the results of 390 the negotiations, the responsible public entity may terminate 391 negotiations with the proposer and negotiate with the second 392 ranked or subsequent-ranked firms, in the order consistent with 393 this procedure. If only one proposal is received, the 394 responsible public entity may negotiate in good faith, and if 395 the responsible public entity is not satisfied with the results 396 of the negotiations, the responsible public entity may terminate 397 negotiations with the proposer. Notwithstanding this paragraph, 398 the responsible public entity may reject all proposals at any 399 point in the process until a contract with the proposer is 400 executed. 401 (d) The responsible public entity shall perform an 402 independent analysis of the proposed public-private partnership 403 which demonstrates the cost-effectiveness and overall public 404 benefit before the procurement process is initiated or before 405 the contract is awarded. 406 (e) The responsible public entity may approve the 407 development or operation of an educational facility, a 408 transportation facility, a water or wastewater management 409 facility or related infrastructure, a technology infrastructure 410 or other public infrastructure, or a government facility needed 411 by the responsible public entity as a qualifying project, or the 412 design or equipping of a qualifying project that is developed or 413 operated, if: 414 1. There is a public need for or benefit derived from a 415 project of the type that the private entity proposes as the 416 qualifying project. 417 2. The estimated cost of the qualifying project is 418 reasonable in relation to similar facilities. 419 3. The private entity’s plans will result in the timely 420 acquisition, design, construction, improvement, renovation, 421 expansion, equipping, maintenance, or operation of the 422 qualifying project. 423 (f) The responsible public entity may charge a reasonable 424 fee to cover the costs of processing, reviewing, and evaluating 425 the request, including, but not limited to, reasonable attorney 426 fees and fees for financial and technical advisors or 427 consultants and for other necessary advisors or consultants. 428 (g) Upon approval of a qualifying project, the responsible 429 public entity shall establish a date for the commencement of 430 activities related to the qualifying project. The responsible 431 public entity may extend the commencement date. 432 (h) Approval of a qualifying project by the responsible 433 public entity is subject to entering into a comprehensive 434 agreement with the private entity. 435(7) NOTICE TO AFFECTED LOCAL JURISDICTIONS.—436(a) The responsible public entity must notify each affected437local jurisdiction by furnishing a copy of the proposal to each438affected local jurisdiction when considering a proposal for a439qualifying project.440(b) Each affected local jurisdiction that is not a441responsible public entity for the respective qualifying project442may, within 60 days after receiving the notice, submit in443writing any comments to the responsible public entity and444indicate whether the facility is incompatible with the local445comprehensive plan, the local infrastructure development plan,446the capital improvements budget, any development of regional447impact processes or timelines, or other governmental spending448plan. The responsible public entity shall consider the comments449of the affected local jurisdiction before entering into a450comprehensive agreement with a private entity. If an affected451local jurisdiction fails to respond to the responsible public452entity within the time provided in this paragraph, the453nonresponse is deemed an acknowledgment by the affected local454jurisdiction that the qualifying project is compatible with the455local comprehensive plan, the local infrastructure development456plan, the capital improvements budget, or other governmental457spending plan.458 (6)(8)INTERIM AGREEMENT.—Before or in connection with the 459 negotiation of a comprehensive agreement, the responsible public 460 entity may enter into an interim agreement with the private 461 entity proposing the development or operation of the qualifying 462 project. An interim agreement does not obligate the responsible 463 public entity to enter into a comprehensive agreement. The 464 interim agreement is discretionary with the parties and is not 465 required on a qualifying project for which the parties may 466 proceed directly to a comprehensive agreement without the need 467 for an interim agreement. An interim agreement must be limited 468 to provisions that: 469 (a) Authorize the private entity to commence activities for 470 which it may be compensated related to the proposed qualifying 471 project, including, but not limited to, project planning and 472 development, design, environmental analysis and mitigation, 473 survey, other activities concerning any part of the proposed 474 qualifying project, and ascertaining the availability of 475 financing for the proposed facility or facilities. 476 (b) Establish the process and timing of the negotiation of 477 the comprehensive agreement. 478 (c) Contain such other provisions related to an aspect of 479 the development or operation of a qualifying project that the 480 responsible public entity and the private entity deem 481 appropriate. 482 (7)(9)COMPREHENSIVE AGREEMENT.— 483 (a) Before developing or operating the qualifying project, 484 the private entity must enter into a comprehensive agreement 485 with the responsible public entity. The comprehensive agreement 486 must provide for: 487 1. Delivery of performance and payment bonds, letters of 488 credit, or other security acceptable to the responsible public 489 entity in connection with the development or operation of the 490 qualifying project in the form and amount satisfactory to the 491 responsible public entity. For the components of the qualifying 492 project which involve construction, the form and amount of the 493 bonds must comply with s. 255.05. 494 2. Review of the design for the qualifying project by the 495 responsible public entity and, if the design conforms to 496 standards acceptable to the responsible public entity, the 497 approval of the responsible public entity. This subparagraph 498 does not require the private entity to complete the design of 499 the qualifying project before the execution of the comprehensive 500 agreement. 501 3. Inspection of the qualifying project by the responsible 502 public entity to ensure that the private entity’s activities are 503 acceptable to the responsible public entity in accordance with 504 the comprehensive agreement. 505 4. Maintenance of a policy of public liability insurance, a 506 copy of which must be filed with the responsible public entity 507 and accompanied by proofs of coverage, or self-insurance, each 508 in the form and amount satisfactory to the responsible public 509 entity and reasonably sufficient to ensure coverage of tort 510 liability to the public and employees and to enable the 511 continued operation of the qualifying project. 512 5. Monitoring by the responsible public entity of the 513 maintenance practices to be performed by the private entity to 514 ensure that the qualifying project is properly maintained. 515 6. Periodic filing by the private entity of the appropriate 516 financial statements that pertain to the qualifying project. 517 7. Procedures that govern the rights and responsibilities 518 of the responsible public entity and the private entity in the 519 course of the construction and operation of the qualifying 520 project and in the event of the termination of the comprehensive 521 agreement or a material default by the private entity. The 522 procedures must include conditions that govern the assumption of 523 the duties and responsibilities of the private entity by an 524 entity that funded, in whole or part, the qualifying project or 525 by the responsible public entity, and must provide for the 526 transfer or purchase of property or other interests of the 527 private entity by the responsible public entity. 528 8. Fees, lease payments, or service payments. In 529 negotiating user fees, the fees must be the same for persons 530 using the facility under like conditions and must not materially 531 discourage use of the qualifying project. The execution of the 532 comprehensive agreement or a subsequent amendment is conclusive 533 evidence that the fees, lease payments, or service payments 534 provided for in the comprehensive agreement comply with this 535 section. Fees or lease payments established in the comprehensive 536 agreement as a source of revenue may be in addition to, or in 537 lieu of, service payments. 538 9. Duties of the private entity, including the terms and 539 conditions that the responsible public entity determines serve 540 the public purpose of this section. 541 (b) The comprehensive agreement may include: 542 1. An agreement by the responsible public entity to make 543 grants or loans to the private entity from amounts received from 544 the federal, state, or local government or an agency or 545 instrumentality thereof. 546 2. A provision under which each entity agrees to provide 547 notice of default and cure rights for the benefit of the other 548 entity, including, but not limited to, a provision regarding 549 unavoidable delays. 550 3. A provision that terminates the authority and duties of 551 the private entity under this section and dedicates the 552 qualifying project to the responsible public entity or, if the 553 qualifying project was initially dedicated by an affected local 554 jurisdiction, to the affected local jurisdiction for public use. 555 (8)(10)FEES.—A comprehensiveAnagreement entered into 556 pursuant to this section may authorize the private entity to 557 impose fees to members of the public for the use of the 558 facility. The following provisions apply to the comprehensive 559 agreement: 560 (a) The responsible public entity may develop new 561 facilities or increase capacity in existing facilities through a 562 comprehensive agreement with a private entityagreements with563public-private partnerships. 564 (b) The comprehensivepublic-private partnershipagreement 565 must ensure that the facility is properly operated, maintained, 566 or improved in accordance with standards set forth in the 567 comprehensive agreement. 568 (c) The responsible public entity may lease existing fee 569 for-use facilities through a comprehensivepublic-private570partnershipagreement. 571 (d) Any revenues must be authorized by and applied in the 572 manner set forth inregulated by the responsible public entity573pursuant tothe comprehensive agreement. 574 (e) A negotiated portion of revenues from fee-generating 575 uses maymustbe returned to the responsible public entity over 576 the life of the comprehensive agreement. 577 (9)(11)FINANCING.— 578 (a) A private entity may enter into a private-source 579 financing agreement between financing sources and the private 580 entity. A financing agreement and any liens on the property or 581 facility must be paid in full at the applicable closing that 582 transfers ownership or operation of the facility to the 583 responsible public entity at the conclusion of the term of the 584 comprehensive agreement. 585 (b) The responsible public entity may lend funds to private 586 entities that construct projects containing facilities that are 587 approved under this section. 588 (c) The responsible public entity may use innovative 589 finance techniques associated with a public-private partnership 590 under this section, including, but not limited to, federal loans 591 as provided in Titles 23 and 49 C.F.R., commercial bank loans, 592 and hedges against inflation from commercial banks or other 593 private sources. In addition, the responsible public entity may 594 provide its own capital or operating budget to support a 595 qualifying project. The budget may be from any legally 596 permissible funding sources of the responsible public entity, 597 including the proceeds of debt issuances. A responsible public 598 entity may use the model financing agreement provided in s. 599 489.145(6) for its financing of a facility owned by a 600 responsible public entity. A financing agreement may not require 601 the responsible public entity to indemnify the financing source, 602 subject the responsible public entity’s facility to liens in 603 violation of s. 11.066(5), or secure financing ofbythe 604 responsible public entity by a mortgage on, or security interest 605 in, the real or tangible personal property of the responsible 606 public entity in a manner that could result in the loss of the 607 fee ownership of the property by the responsible public entity 608with a pledge of security interest, and any such provision is 609 void. 610(d) A responsible public entity shall appropriate on a611priority basis as required by the comprehensive agreement a612contractual payment obligation, annual or otherwise, from the613enterprise or other government fund from which the qualifying614projects will be funded. This required payment obligation must615be appropriated before other noncontractual obligations payable616from the same enterprise or other government fund.617 (10)(12)POWERS AND DUTIES OF THE PRIVATE ENTITY.— 618 (a) The private entity shall: 619 1. Develop or operate the qualifying project in a manner 620 that is acceptable to the responsible public entity in 621 accordance with the provisions of the comprehensive agreement. 622 2. Maintain, or provide by contract for the maintenance or 623 improvement of, the qualifying project if required by the 624 comprehensive agreement. 625 3. Cooperate with the responsible public entity in making 626 best efforts to establish interconnection between the qualifying 627 project and any other facility or infrastructure as requested by 628 the responsible public entity in accordance with the provisions 629 of the comprehensive agreement. 630 4. Comply with the comprehensive agreement and any lease or 631 service contract. 632 (b) Each private facility that is constructed pursuant to 633 this section must comply with the requirements of federal, 634 state, and local laws; state, regional, and local comprehensive 635 plans; the responsible public entity’s rules, procedures, and 636 standards for facilities; and such other conditions that the 637 responsible public entity determines to be in the public’s best 638 interest and that are included in the comprehensive agreement. 639 (c) The responsible public entity may provide services to 640 the private entity. An agreement for maintenance and other 641 services entered into pursuant to this section must provide for 642 full reimbursement for services rendered for qualifying 643 projects. 644 (d) A private entity of a qualifying project may provide 645 additional services for the qualifying project to the public or 646 to other private entities if the provision of additional 647 services does not impair the private entity’s ability to meet 648 its commitments to the responsible public entity pursuant to the 649 comprehensive agreement. 650 (11)(13)EXPIRATION OR TERMINATION OF AGREEMENTS.—Upon the 651 expiration or termination of a comprehensive agreement, the 652 responsible public entity may use revenues from the qualifying 653 project to pay current operation and maintenance costs of the 654 qualifying project. If the private entity materially defaults 655 under the comprehensive agreement, the compensation that is 656 otherwise due to the private entity is payable to satisfy all 657 financial obligations to investors and lenders on the qualifying 658 project in the same way that is provided in the comprehensive 659 agreement or any other agreement involving the qualifying 660 project, if the costs of operating and maintaining the 661 qualifying project are paid in the normal course. Revenues in 662 excess of the costs for operation and maintenance costs may be 663 paid to the investors and lenders to satisfy payment obligations 664 under their respective agreements. A responsible public entity 665 may terminate with cause and without prejudice a comprehensive 666 agreement and may exercise any other rights or remedies that may 667 be available to it in accordance with the provisions of the 668 comprehensive agreement. The full faith and credit of the 669 responsible public entity may not be pledged to secure the 670 financing of the private entity. The assumption of the 671 development or operation of the qualifying project does not 672 obligate the responsible public entity to pay any obligation of 673 the private entity from sources other than revenues from the 674 qualifying project unless stated otherwise in the comprehensive 675 agreement. 676 (12)(14)SOVEREIGN IMMUNITY.—This section does not waive 677 the sovereign immunity of a responsible public entity, an 678 affected local jurisdiction, or an officer or employee thereof 679 with respect to participation in, or approval of, any part of a 680 qualifying project or its operation, including, but not limited 681 to, interconnection of the qualifying project with any other 682 infrastructure or project. A county or municipality in which a 683 qualifying project is located possesses sovereign immunity with 684 respect to the project, including, but not limited to, its 685 design, construction, and operation. 686 (13) DEPARTMENT OF MANAGEMENT SERVICES.— 687 (a) A responsible public entity may provide a copy of its 688 comprehensive agreement to the Department of Management 689 Services. A responsible public entity must redact any 690 confidential or exempt information from the copy of the 691 comprehensive agreement before providing it to the Department of 692 Management Services. 693 (b) The Department of Management Services may accept and 694 maintain copies of comprehensive agreements received from 695 responsible public entities for the purpose of sharing 696 comprehensive agreements with other responsible public entities. 697 (c) This subsection does not require a responsible public 698 entity to provide a copy of its comprehensive agreement to the 699 Department of Management Services. 700 (14)(15)CONSTRUCTION.— 701 (a) This section shall be liberally construed to effectuate 702 the purposes of this section. 703 (b) This section shall be construed as cumulative and 704 supplemental to any other authority or power vested in or 705 exercised by the governing bodyboardof a county, municipality, 706 special district, or municipal hospital or health care system 707 including those contained in acts of the Legislature 708establishing such public hospital boards or s. 155.40. 709 (c) This section does not affect any agreement or existing 710 relationship with a supporting organization involving such 711 governing bodyboardor system in effect as of January 1, 2013. 712 (d)(a)This section provides an alternative method and does 713 not limit a county, municipality, special district, or other 714 political subdivision of the state in the procurement or 715 operation of a qualifying projectacquisition, design, or716construction of a public projectpursuant to other statutory or 717 constitutional authority. 718 (e)(b)Except as otherwise provided in this section, this 719 section does not amend existing laws by granting additional 720 powers to, or further restricting, a local governmental entity 721 from regulating and entering into cooperative arrangements with 722 the private sector for the planning, construction, or operation 723 of a facility. 724 (f)(c)This section does not waive any requirement of s. 725 287.055. 726 Section 2. Section 287.0935, Florida Statutes, is amended 727 to read: 728 287.0935 Surety bond insurers.—When the contract amount of 729 a project that uses public funds does not exceed $5 million 730$500,000 and when public funds are utilized for the project, a 731 person, the state, or a political subdivision mayshallnot 732 refuse, as surety for the project,bid bonds, performance bonds, 733 labor and materials payment bonds, or any other surety bonds as 734 surety for the project if such bondswhichare issued by a 735 surety company that meets allwhich fulfills eachof the 736 following requirementsprovisions: 737 (1) The surety company is licensed to do business in this 738 state.the State of Florida;739 (2) The surety company holds a certificate of authority 740 authorizing it to write surety bonds in this state.;741 (3) The surety company has twice the minimum surplus and 742 capital required by the Florida Insurance Code at the time the 743 invitation to bid is issued, or has an “A-” minimum rating of 744 performance in the latest publication of Best’s Key Rating Guide 745 by A.M. Best Company.;746 (4) The surety company is otherwise in compliance with the 747 provisions of the Florida Insurance Code.; and748 (5) The surety company holds a currently valid certificate 749 of authority issued by the United States Department of the 750 Treasury under 31 U.S.C. ss. 9304-9308. 751 Section 3. This act shall take effect July 1, 2015.