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 1250
INTRODUCER: Fiscal Policy Committee; Appropriations Committee on Transportation, Tourism, and
Economic Development Committee; Transportation Committee; and Senator DiCeglie
SUBJECT: Department of Transportation
DATE: April 26, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Price Vickers TR Fav/CS
2. Nortelus Jerrett ATD Fav/CS
3. Price Yeatman FP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/CS/SB 1250 contains the Florida Department of Transportation’s (FDOT’s) 2023
legislative proposals. The bill:
 Increases the maximum amount of debt service coverage that may be transferred from the
State Transportation Trust Fund to the Right-of-Way Acquisition and Bridge Construction
Trust Fund.
 Increases the maximum term of state bonds for federal aid highway construction.
 Provides that the prohibition against use of bond proceeds for acquisition of any building or
facility that will be, during the pendency of financing, used by, occupied by, leased to, or
paid for by any state, county or municipal agency or entity does not prohibit the use of
proceeds from Florida Development Finance Corporation private activity bonds to finance
acquisition or construction of a transportation facility under a public-private partnership.
 Authorizes the Florida Development Finance Corporation to issue revenue bonds to finance
the costs of acquisition or construction of a transportation facility by a private entity or a
consortium of private entities under a specified public-private partnership.
 Authorizes the FDOT to fund up to 100 percent of project costs for eligible intermodal
logistics center projects in rural areas of opportunity.
 Authorizes installation, as specified, of automated license plate recognition systems within
the rights-of-way of the State Highway System at the discretion of the FDOT when installed
at the request of a law enforcement agency for the purpose of collecting active criminal
intelligence or investigative information.
BILL: CS/CS/CS/SB 1250 Page 2
 Prohibits the FDOT from requiring an applicant for airport site approval to provide a copy of
a written memorandum of understanding or letter of agreement with other airport sites
regarding air traffic pattern separation procedures unless such memorandum or letter is
required by the Federal Aviation Administration or is deemed necessary by FDOT
 Authorizes the FDOT, subject to availability of appropriated funds, and unless otherwise
provided in the General Appropriations Act or the Implementing bill, to fund certain projects
at a publicly owned, publicly operated airport located in a rural community which does not
have any scheduled commercial service.
 Authorizes the FDOT to purchase promotional items for the promotion of electric vehicle use
and charging stations, autonomous vehicles, and context design for electric vehicles and
autonomous vehicles.
 Authorizes the FDOT to expend funds, within its discretion, for training, testing, and
licensing for full-time employees of the FDOT who are required to have a valid Class A or
Class B commercial driver license as a condition of employment with the FDOT.
 Increases from $250,000 to $500,000 the cap on entering into contracts for construction and
maintenance without advertising and receiving competitive bids for reasons of public
concern, economy, improved operations, or safety, and only when circumstances dictate
rapid completion of the work.
 Increases from $120 million to $200 million the annual cap on the award of contracts using
innovative techniques of highway and bridge design, construction, maintenance, and finance.
 Revises requirements for design-build contracts, allowing the FDOT to combine the design
and construction phases of any transportation project.
 Authorizes the FDOT to enter into phased design-build contracts under specified conditions,
provides requirements for such contracts, and requires the FDOT to adopt rules for
administering such contracts.

 Abolishes the Chairs Coordinating Committee and requires the metropolitan planning
organizations (MPOs) serving specified counties to submit a feasibility report by December
31, 2023, exploring the benefits, costs, and process of consolidation into a single MPO
serving the contiguous urbanized area, with specified goals.
 Requires that public transit development plans of eligible providers of public transit block
grants be consistent, to the maximum extent feasible, with the long-range transportation plans
of the metropolitan planning organization in which the provider is located.
 Requires the FDOT to adopt by rule minimum safety standards for certain fixed-guideway
transportation systems operating in this state and to conduct structural safety inspections of
such systems as specified.
 Removes from annual public transit provider reports a requirement to specifically address
potential enhancements to productivity and performance that would have the effect of
increasing farebox recovery ratio; and requires each public transit provider to publish on its
website, rather than in the local newspaper, the productivity and performance measures
established for the year and a report on attainment of such measures.
 Repeals part IV of Chapter 348, F.S., relating to the creation and operation of the Santa Rosa
Bay Bridge Authority; transfers governance and control of the Authority and its bridge
system and any remaining assets and rights to the FDOT; authorizes the FDOT to assume
legal liability for contractual obligations determined to be necessary and authorizes transfer
of the bridge system to the Turnpike.
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The bill’s fiscal impact is indeterminate. See the “Fiscal Impact Statement” heading for
additional information.
Except as otherwise provided, the bill takes effect July 1, 2023
II. Present Situation:
For ease of organization and readability, the present situation is discussed below in conjunction
with the effect of the proposed changes.
III. Effect of Proposed Changes:
Right-of-Way Acquisition and Bridge Construction Trust Fund – Debt Service Coverage
(Section 1)
Present Situation
The FDOT is currently authorized to issue Right-of-Way Acquisition and Bridge Construction
bonds to finance or refinance the cost of acquiring real property for state roads or the cost of state
bridge construction. Except for bonds issued to refinance previously issued bonds, bonds must be
authorized by the Legislature and must be issued pursuant to the State Bond Act.1
To meet the requirements of outstanding or proposed bond obligations, the FDOT is authorized
to transfer up to seven percent of the revenues deposited into the State Transportation Trust Fund
(STTF) in each fiscal year to the Right-of-Way Acquisition and Bridge Construction Trust Fund.
However, the annual amount transferred may not exceed an amount necessary to provide the
required debt service coverage levels for a maximum debt service of $350 million.2 This amount
was most recently increased from $275 million to $350 million in 2021.3
To further the state’s policy of managing the financing of transportation infrastructure in a
manner that ensures the fiscal integrity of the STTF, the FDOT is required to manage all levels
of debt to ensure that not more than 20 percent of total projected available state and federal
revenues from the STTF, together with any local funds committed to FDOT projects, are
committed to various identified payments, funding, reimbursements, and loan repayments. Debt
service payments on Right-of-Way Acquisition and Bridge Construction bonds are included in
the FDOT’s annual transportation debt assessment.4
Effect of Proposed Changes
The bill amends s. 206.46(2), F.S., to increase from $350 million to $425 million the fiscal-year
cap on the annual amount that may be transferred from the STTF to the Right-of-Way
1
Section 216.605, F.S. The State Bond Act is codified in ss. 215.57-215.83, F.S.
2
Section 206.46(2), F.S.
3
Ch. 2021-186, Laws of Fla.
4
See s. 339.139, F.S. This section requires the FDOT to annually provide a debt and debt-like contractual obligations load
report.
BILL: CS/CS/CS/SB 1250 Page 4
Acquisition and Bridge Construction Trust Fund for debt service coverage. The increased cap
provides the FDOT with additional bonding capacity.
Grant Anticipation Revenue Vehicles and State Bonds for Federal Aid Highway
Construction (Section 2)
Present Situation
According to the Federal Highway Administration (FHWA), a Grant Anticipation Revenue
Vehicle, a GARVEE, “is a type of anticipation vehicle, which are securities (debt instruments)
issued when moneys are anticipated from a specific source to advance the upfront funding of a
particular need. In the case of transportation finance the anticipation vehicles' revenue source is
expected Federal-aid grants.”5 As to highways, a GARVEE is a debt instrument that has a pledge
of future federal-aid funding, which is authorized for Federal reimbursement of debt service and
related financing costs. States can receive reimbursements for a wide array of debt-related costs
incurred in connection with an eligible debt financing instrument, such as a bond, note,
certificate, mortgage, or lease. The proceeds are used to fund a project eligible for federal aid.
Most often, a bond, which may be issued by a state, political subdivision, or a public authority, is
the debt instrument used. 6
The FHWA notes that “GARVEEs enable a state to accelerate construction timelines and spread
the cost of a transportation facility over its useful life rather than just the construction period.
The use of GARVEEs expands access to capital markets as an alternative or in addition to
potential general obligation or revenue bonding capabilities. The upfront monetization benefit of
these techniques needs to be weighed against consuming a portion of future years' receivables to
pay debt service. This approach is appropriate for large, long-lived, non-revenue generating
assets.”7
Under current state law,8 upon the request of the FDOT, the State Board of Administration’s
Division of Bond Finance (DBF) is authorized pursuant to s. 11, Art. VII of the State
Constitution9 and the State Bond Act to issue revenue bonds, for and on behalf of the FDOT, for
the purpose of financing or refinancing the construction, reconstruction, and improvement of
projects that are eligible to receive federal-aid highway funds. The DBF is authorized to consider
innovative financing technologies which may include, but are not limited to, innovative bidding
and structures of potential financings that may result in negotiated transactions.10
Any bonds issued are payable primarily from a prior and superior claim on all federal highway
aid reimbursements received each year with respect to federal-aid projects undertaken in
accordance with federal law.11 Prior to the issuance of bonds, the FDOT must determine that
5
fhwa.dot.gov, FHWA - Center for Innovative Finance Support - Project Finance - Federal Debt Financing Tools (dot.gov)
(last visited April 22, 2023).
6
Id.
7
Id.
8
Section 215.616, F.S.
9
Section 11, Art. VII of the State Constitution relates to state bonds and revenue bonds. Subsection (f) requires each project,
building, or facility to be financed or refinanced with revenue bonds to be first approved by the Legislature by and act
relating to appropriations or by general law.
10
Section 215.616(1), F.S.
11
Section 215.616(2), F.S.
BILL: CS/CS/CS/SB 1250 Page 5
annual debt service on all bonds issued pursuant to the authorizing statute does not exceed ten
percent of annual apportionments to the FDOT for federal highway aid in accordance with
federal law. Currently, the term of the bonds may not exceed 12 years.12
Effect of Proposed Changes
The bill amends s. 215.616(2), F.S., to increase from 12 to 18 years the maximum term for
GARVEE bonds issued by the DBF for or on behalf of the FDOT. This revision may provide the
FDOT with additional flexibility in financing transportation projects.
Infrastructure Financing/Private Activity Bonds (Section 3)
Present Situation
Generally, a private activity bond (PAB) is a tax-exempt security issued by or on behalf of a
local or state government for the purpose of extending special financing benefits for qualified
projects. PABs finance projects for a private user, and the governmental issuer’s credit usually
isn’t pledged, but PABs provide a public benefit as well. They are used to attract private
investments for projects “that have public or common utility,” and result in increased spending
on infrastructure.”13
The federal government controls the amount of private activity bonds that are permitted to be
issued in each state. Part VI of ch. 159, F. S., establishes statewide procedures for allocating
Florida’s share of private activity bonds. Such allocation is statutorily referred to as the
allocation of state volume limitation (s. 159.804, F.S.). The Division of Bond Finance of the
State Board of Administration is responsible for annually determining the amount of the private
activity bonds permitted for statewide allocation under the 1986 Internal Revenue Code, as
amended. Generally, “traditional” road and bridge projects are not qualified under state private
activity volume caps, but there is a private activity volume cap available at the federal level for
such transportation projects, which was recently increased from $15 to $30 billion:
According to the United State Department of Transportation:
Section 11143 of Title XI of SAFETEA-LU amended Section 142 of the Internal
Revenue Code to add highway and freight transfer facilities to the types of
privately developed and operated projects for which private activity bonds (PABs)
may be issued. This change allowed private activity on these types of projects,
while maintaining the tax-exempt status of the bonds. The law limited the total
amount of the bonds to $15 billion and directed the Secretary of Transportation to
allocate this amount among qualified facilities. The Infrastructure Investment and
Jobs Act signed into law on November 15, 2021 increased the available PAB
authority from $15 billion to $30 billion. Passage of the private activity bond
legislation reflects the Federal Government's desire to increase private sector
investment in U.S. transportation infrastructure. Providing private developers and
operators with access to tax-exempt interest rates lowers the cost of capital
12
Section 215.616(3), F.S.
13
See MunicipalBonds.com, Understanding Private Activity Bonds (municipalbonds.com) (last visited March 7, 2023).
BILL: CS/CS/CS/SB 1250 Page 6
significantly, enhancing investment prospects. Increasing the involvement of
private investors in highway and freight projects generates new sources of money,
ideas, and efficiency. The $30 billion in exempt facility bonds is not subject to the
state volume caps.14
In Florida, access to PABs is provided by the Florida Development Finance Corporation
(FDFC),15 the “conduit issuer” of PABs, with the power to function within the corporate limits of
any public agency with which it has entered into an interlocal agreement. The FDFC issues the
bonds, which are purchased by a bank or investor(s). The proceeds from the sale are then loaned
to finance capital projects. The interest re