Source: https://www.gtlaw.com/he/insights/2016/4/florida-passes-legislation-that-will-facilitate-publicprivate-partnership-p
Timestamp: 2019-04-20 17:23:35+00:00

Document:
The State of Florida, a longtime leader among states in facilitating Public Private Partnership projects (P3s), has recently passed legislation that will expand available options for the tax-exempt financing of P3 projects. On April 4, 2016, the Governor of Florida signed into law House Bill 7027 (the Act)1, which, among other things, created the Florida Department of Transportation Financing Corporation (the Corporation), a nonprofit corporation which has the power to serve as a financing mechanism for P3s of the Florida Department of Transportation (the FDOT) across the state.
Unlike traditional design-build projects, a P3 is a contractual arrangement between a public agency (federal, state or local) and a private party, in which the private party provides a public service or project and assumes substantial risk and management responsibility.
Until now, projects the FDOT could finance with bonds were limited to purchasing rights of way, building bridges and constructing certain tolled projects.13 The creation of the Corporation will not replace these traditional funding mechanisms, but will provide another tool for the FDOT to maximize the use of existing revenue for the purposes of financing much needed transportation projects. FDOT also will retain the ability to undertake P3s using more traditional methods, including private party financing.
The Act will also have an impact on the procurement process for P3s of the FDOT by requiring the FDOT to take additional steps prior to pursuing projects through public-private partnerships. Until now, the DBF has not played a formal role in the financing for P3 projects of the FDOT. The new legislation requires the FDOT to consult with and provide information to the DBF in connection with any proposal to finance or refinance a transportation facility P3 project.14 In addition, the DBF is authorized (though not required) to make an independent recommendation to the Governor in advance of a proposed bond issuance.15 These requirements are being added to the FDOT’s existing obligation to provide a summary to the Governor, the chair of each legislative appropriations committee, the President of the Senate and the Speaker of the House of Representatives about any effects a proposed P3 project may have on the FDOT’s and the State’s debt load limit.16 The DBF will oversee the structuring and sale of all bonds issued on behalf of the Corporation.
The law will take effect on July 1, 2016.
1 Codified as Chapter No. 2016-181, Laws of Florida, and § 339.0809, Fla. Stat. (2015) up.
2 § 339.0809(2), Fla. Stat. (2015) up.
3 See the Bill Analysis and Fiscal Impact Statement, December 4, 2015, prepared for the Florida Senate, https://www.flsenate.gov/Session/Bill/2016/0756/Analyses/2016s0756.tr.PDF up.
4 § 339.0809(7), Fla. Stat. (2015) up.
5 Shelly Sigo, Florida Launches Bond Program to Finance P3s, The Bond Buyer, April 6 2016, http://www.bondbuyer.com/news/regionalnews/florida-launches-bond-program-to-finance-p3s-1100703-1.html up.
6 § 339.0809(5), Fla. Stat. (2015) up.
7 § 339.0809(4), Fla. Stat. (2015) up.
10 § 334.30(12), Fla. Stat. (2015) up.
11 § 339.139(3), Fla. Stat. (2015) up.
12 § 339.0809(8), Fla. Stat. (2015) up.
13 Sigo, supra note 5; Florida Launches Bond Program to Finance P3s, The Bond Buyer, April 6 2016 up.
14 § 334.30(13), Fla. Stat. (2015) up.
16 § 339.2825(1), Fla. Stat. (2015) up.

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