The Florida Senate
                  BILL ANALYSIS AND FISCAL IMPACT STATEMENT
              (This document is based on the provisions contained in the legislation as of the latest date listed below.)
                         Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL:           CS/CS/CS/SB 1226
INTRODUCER:     Fiscal Policy Committee; Appropriations Committee on Transportation, Tourism, and
                Economic Development; Transportation Committee; and Senator DiCeglie
SUBJECT:        Department of Transportation
DATE:           February 28, 2024               REVISED:
           ANALYST                    STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Johnson                          Vickers                               TR              Fav/CS
2. Nortelus                         Jerrett                              ATD              Fav/CS
3. Johnson                          Yeatman                               FP              Fav/CS
                     Please see Section IX. for Additional Information:
                                   COMMITTEE SUBSTITUTE - Substantial Changes
  I.    Summary:
        CS/CS/CS/SB 1226 revises various provisions relating to the Florida Department of
        Transportation (FDOT). The bill:
         Updates FDOT’s statutory program areas to reflect its current organizational structure.
         Repeals obsolete language regarding the appointment of FDOT’s inspector general.
         Provides $15 million in recurring revenue be made available for the Intermodal Logistics
           Center Infrastructure Support Program.
         Amends FDOT’s statutory mission, goals, and objectives.
         Requires public notice and input prior to a governmental entity repurposing one or more
           existing traffic lanes.
         Increases from three years to ten years the length of time before an inactive prepaid toll
           account becomes unclaimed property.
         Revises provisions regarding an interlocal agreement and FDOT’s funding of a fire station on
           Alligator Alley.
         Prohibits FDOT from spending state funds on transportation entities violating certain
           statutory requirements.
         Provides that specified revenues deposited into the State Transportation Trust Fund must first
           be available for appropriation for payments under a service contract entered into with the
           Florida Department of Transportation Financing Corporation to fund arterial highway
           projects.
BILL:     CS/CS/CS/SB 1226                                                                              Page 2
               Authorizes FDOT to enter into service contracts with the Florida Department of
                Transportation Financing Corporation for specified projects.
               Authorizes local governments in specified areas to, subject to specific appropriation, compete
                for additional funding using the criteria for the Small County Outreach Program to fund
                projects on roads primarily used for agricultural purposes.
               Provides that lane repurposing for public transit must be approved by a supermajority vote of
                the transit authority’s board.
               Requires any action of eminent domain for public transit facilities must be discussed at a
                public meeting of the transit provider’s board.
               Provides that certain unallocated New Starts Transit funds must be reallocated to the
                Strategic Intermodal System for a two year period.
               Prohibits public transit providers from spending FDOT funds on certain marketing or
                advertising activities.
               Prohibits window tinting on public transit buses from being any darker than what is legally
                allowed for motor vehicles.
               Requires each public transit provider to annually certify that its budgeted and actual general
                administrative costs are no greater than 20 percent above the state average administrative
                costs.
               Requires public transit providers to disclose employee compensation and benefits, ridership
                and performance metrics, and any gifts accepted in exchange for a contract.
               Requires specified increases in administrative costs by a public transit provider must be
                reviewed and approved by FDOT.
               Grants the Florida Rail Enterprise the power and duty to preserve future rail corridors and
                rights of way.
           The bill may have both negative and positive fiscal impacts on private and governmental sectors.
           See Section V., Fiscal Impact Statement.
           The bill takes effect July 1, 2024.
    II.    Present Situation:
           For ease of readability and organization, the present situation is discussed below with the effect
           of proposed changes.
III.       Effect of Proposed Changes:
           FDOT Organizational Structure (Section 1)
           Present Situation
           The Florida Department of Transportation (FDOT) is a decentralized agency headed by the
           Secretary of Transportation (secretary).1 The secretary may appoint up to three assistant
           secretaries who are directly responsible to the secretary and who perform such duties as are
           assigned by the secretary.2
1
    Section 20.23(1)(a), F.S.
2
    Section 20.23(1)(d), F.S.
BILL:    CS/CS/CS/SB 1226                                                                                Page 3
           FDOT’s secretary may appoint deputy assistant secretaries or directors which the secretary
           deems necessary to accomplish FDOT’s mission and goals, including, but not limited to, the
           areas of program responsibility listed below, each of whom is appointed by and serves at the
           pleasure of the secretary. The secretary may combine, separate, or delete offices as needed in
           consultation with the Executive Office of the Governor. FDOT's areas of program responsibility
           include, but are not limited to:
            Administration;
            Planning;
            Public transportation;
            Design;
            Highway operations;
            Right-of-way;
            Toll operations;
            Information systems;
            Motor carrier weight inspection;
            Management and budget;
            Comptroller;
            Construction;
            Maintenance; and
            Materials.3
           Effect of Proposed Changes
           The bill revises FDOT’s areas of program responsibility by replacing:
            Public transportation with modal development; and
            Management and budget with work program development and budget.
           The bill adds the following areas of program responsibility:
            Transportation technology;
            Statewide corridors;
            Forecasting and performance;
            Emergency management; and
            Safety.
           Appointment of the Florida Department of Transportation’s Inspector General (Section 1)
           Present Situation
           Florida law establishes an office of inspector general in each state agency, providing a central
           point of coordination of and responsibility for activities that promote accountability, integrity,
           and efficiency in government. Florida law provides various duties and responsibility regarding
           each state agency’s inspector general.4
3
    Section 20.23(3)(b), F.S.
4
    Section 20.055. FS.
BILL:   CS/CS/CS/SB 1226                                                                                                  Page 4
         In 2014, the Legislature transferred the appointment and removal of a Governor’s agency
         inspector general from the agency head to the Governor’s Chief Inspector General.5 For state
         agencies under the jurisdiction of the Cabinet or the Governor and Cabinet, the agency head
         appoints the agency’s inspector general. For state agencies under the jurisdiction of the
         Governor, the Chief Inspector General appoints the agency’s inspector general. 6 FDOT is under
         the Governor’s jurisdiction.7
         Conflicting with the generally applicable requirements regarding the appointment of an inspector
         general, Florida law also requires the Secretary of Transportation to appoint FDOT’s inspector
         general.8
         Effect of Proposed Changes
         The bill repeals obsolete language regarding the Secretary of Transportation’s authority to
         appoint FDOT’s inspector general.
         Intermodal Logistics Center Infrastructure Support Program (Section 2)
         Present Situation
         An intermodal logistics center is a facility or group of facilities serving as a point of intermodal
         transfer of freight in a specific area physically separated from a seaport where activities relating
         to transport, logistics, goods distribution, consolidation, or value-added activities are carried out
         and whose activities and services are designed to support or be supported by conveyance or
         shipping through one or more seaports listed in s. 311.09, F.S.9
         FDOT’s Intermodal Logistics Center Infrastructure Support Program’s (program) purpose is to
         provide funds for roads, rail facilities, or other means for the conveyance or shipment of goods
         through a seaport, enabling the state to respond to private sector market demands and meet the
         state’s economic development goal of becoming a hub for trade, logistics, and export-oriented
         activities. FDOT may provide funds to assist with local government projects or projects
         performed by private entities that meet the public purpose of enhancing transportation facilities
         for the conveyance or shipment of goods through a seaport to or from an intermodal logistics
         center.10
         FDOT must consider, but is not limited to, the following criteria when evaluating projects for
         program assistance:
          The ability of the project to serve a strategic state interest.
          The ability of the project to facilitate the cost-effective and efficient movement of goods.
5
  Chapter 2014-144, Laws of Fla.
6
  Section 20.055(3)(a)1., F.S.
7
  See s. 20.23(1)(a), F.S.
8
  Section 20.23(3)(c), F.S.
9
  Section 311.101(2), F.S. The ports listed in s. 311.09(1), F.S., are Jacksonville, Port Canaveral, Port Citrus, Fort Pierce,
Palm Beach, Port Everglades, Miami, Port Manatee, St. Petersburg, Putnam County, Tampa, Port St. Joe, Panama City,
Pensacola, Key West, and Fernandina.
10
   Section 311.101(1), F.S.
BILL:   CS/CS/CS/SB 1226                                                                             Page 5
            The extent to which the project contributes to economic activity, including job creation,
             increased wages, and revenues.
            The extent to which the project efficiently interacts with and supports the transportation
             network.
            A commitment of a funding match.
            The amount of investment or commitments made by the owner or developer of the existing
             or proposed facility.
            The extent to which the owner has commitments with private sector businesses planning to
             locate operations at the intermodal logistics center.
            Demonstrated local financial support and commitment to the project.11
         FDOT must provide up to 50 percent of project costs for eligible projects, except that for eligible
         projects in rural areas of opportunity,12 where the FDOT may provide up to 100 percent of
         project costs.13
         When the program was created in 2012,14 up to $5 million per year was made available from the
         State Transportation Trust Fund (STTF) for the program.15 This funding expired on July 1,
         2020.16
         Effect of Proposed Changes
         The bill provides that, beginning in 2024-2025 fiscal year through the 2029-2030 fiscal year, $15
         million in recurring revenue must be made available from the STTF for the program. FDOT must
         include projects proposed to be funded in its tentative work program.
         FDOT Mission, Goals, and Objectives (Section 3)
         Present Situation
         Section 334.046, F.S., contains FDOT’s mission, goals, and objectives. Under Florida law, the
         prevailing principles to be considered in planning and developing an integrated, balanced
         statewide transportation system are: preserving the existing transportation infrastructure;
         enhancing Florida's economic competitiveness; and improving travel choices to ensure
         mobility.17
         FDOT’s mission is to provide a safe statewide transportation system that ensures the mobility of
         people and goods, enhances economic prosperity, and preserves the quality of our environment
         and communities.18
11
   Section 311.101(3), F.S.
12
   Rural Areas of Opportunity are designated in accordance with s. 288.0656(7)(a), F.S.
13
   Section 311.101(6), F.S.
14
   Chapters 2012-128 and 2012-174, Laws of Fla.
15
   FDOT’s tentative work program is developed pursuant to s. 339.135(4), F.S.
16
   See Chapter 2014-216, Laws of Fla.
17
   Section 334.046(1), F.S.
18
   Section 334.046(2), F.S.
BILL:   CS/CS/CS/SB 1226                                                                             Page 6
         FDOT must document in the Florida Transportation Plan,19 and based upon the prevailing
         principles of preserving the existing transportation infrastructure, enhancing Florida's economic
         competitiveness, and improving travel choices to ensure mobility, the goals and objectives that
         provide statewide policy guidance for accomplishing the department's mission.20
         At a minimum, FDOT's goals must address the following prevailing principles:
          Preservation.—Protecting the state's transportation infrastructure investment. Preservation
             includes:
             o Ensuring that 80 percent of the pavement on the State Highway System meets FDOT
                 standards;
             o Ensuring that 90 percent of FDOT-maintained bridges meet FDOT standards; and
             o Ensuring that FDOT achieves 100 percent of the acceptable maintenance standard on the
                 State Highway System.
          Economic competitiveness.—Ensuring that the state has a clear understanding of the
             economic consequences of transportation investments, and how such investments affect the
             state's economic competitiveness. FDOT must develop a macroeconomic analysis of the
             linkages between transportation investment and economic performance, as well as a method
             to quantifiably measure the economic benefits of the district-work-program investments.
             Such an analysis must analyze:
             o The state's and district's economic performance relative to the competition.
             o The business environment as viewed from the perspective of companies evaluating the
                 state as a place in which to do business.
             o The state's capacity to sustain long-term growth.
          Mobility.—Ensuring a cost-effective, statewide, interconnected transportation system.21
         Effect of Proposed Changes
         The bill amends FDOT’s mission, goals and objectives. The bill requires FDOT to consider the
         following prevailing principles when planning and developing the state’s multimodal
         transportation system: preserving Florida’s transportation infrastructure; supporting its economic
         competitiveness; and preserving Florida’s quality of life.
         FDOT’s mission is to provide a safe statewide transportation system that promotes the efficient
         movement of people and goods, supports the state’s economic competitiveness, prioritizes
         Florida’s environment and natural resources, and preserves the quality of life and connectedness
         of the state’s communities.
         The prevailing principles outlined below must be incorporated into all goals and objectives that
         provide statewide policy and guidance for accomplishing FDOT’s mission, including the Florida
         Transportation Plan.
         At a minimum, FDOT’s goals must address the following prevailing principles:
          Maintaining investments. – Protecting the state’s infrastructure investment, which includes:
19
   The Florida Transportation Plan is provided for in s. 339.155, F.S.
20
   Section 334.046(3)
21
   Section 334.046(4), F.S.
BILL:   CS/CS/CS/SB 1226                                                                                               Page 7
             o Ensuring that 80 percent of the pavement on the State Highway System meets FDOT
                 standards;
             o Ensuring that 90 percent of FDOT-maintained bridges meet FDOT standards; and
             o Ensuring that FDOT achieves 100 percent of the acceptable maintenance standard on the
                 State Highway System.
            Economic competitiveness. - Ensuring that the state has a clear understanding of the return on
             investment and economic impacts of transportation infrastructure investments and how such
             investments affect the state's economic competitiveness. FDOT must develop a
             macroeconomic analysis of the linkages between transportation investment and economic
             performance, as well as a method to quantifiably measure the economic benefits of the
             district-work-program investments. Such an analysis must analyze:
             o The state's and district's economic performance relative to the competition.
             o The business environment as viewed from the perspective of companies evaluating the
                 state as a place in which to do business.