HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 1 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to transportation; amending s. 206.46, 2 F.S.; limiting the amount of State Transportation 3 Trust Fund revenues committed annually for public 4 transit projects; amending s. 334.179, F.S.; limiting 5 certification of aggregate shipments to those i n 6 compliance with rules of the Department of 7 Transportation; creating s. 334.181, F.S.; prohibiting 8 a local government from accepting a department -9 approved electronic ticket as an official record for a 10 material delivery on a local government transportation 11 project; amending s. 337.025, F.S.; including 12 progressive design-build contracts in projects 13 considered to be innovative transportation projects; 14 providing requirements for designation of and 15 selection and award processes for a progressive 16 design-build contract; exempting certain progressive 17 design-build contracts from an annual cap on 18 contracts; amending s. 337.11, F.S.; authorizing the 19 department to combine the design and construction 20 phases of a project into a single contract; requiring 21 the department to adopt rules for administering 22 progressive design-build contracts; requiring certain 23 bridge construction or maintenance contracts to 24 require certain marine general liability insurance; 25 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 2 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S requiring the department to implement strategies to 26 reduce certain costs and to record such strategies and 27 projected savings related thereto; authorizing the 28 department to share a certain portion of construction 29 cost savings with certain consultants; amending s. 30 337.1101, F.S.; revising procedures for resolving 31 certain protests through settlements requiring the 32 payment of certain amounts; amending s. 337.14, F.S.; 33 revising a limitation on the amount of a construction 34 contract for which a bidder may submit annual or 35 interim financial statements prepared by a certified 36 public accountant; revising the effect of submission 37 and approval of an application for a certificate of 38 qualification; authorizing submission of a written 39 request to maintain an existing certificate; exempting 40 a progressive design -build prequalification from a 41 limitation on services a contractor may qualify to 42 provide; amending s. 337.168, F.S.; deleting an 43 exemption from public records requirements for 44 identities of potential transportation project 45 bidders; amending s. 338.223, F.S.; deleting 46 provisions prohibiti ng the department from requesting 47 legislative approval of a proposed turnpike project 48 until the design phase is partially completed; 49 providing an effective date. 50 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 3 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 51 Be It Enacted by the Legislature of the State of Florida: 52 53 Section 1. Subsection (6) is added to section 206.46, 54 Florida Statutes, to read: 55 206.46 State Transportation Trust Fund. — 56 (6) Of revenues deposited into the State Transportation 57 Trust Fund which are derived from state fuel taxes and motor 58 vehicle license-related fees, no more t han 20 percent shall be 59 committed annually by the department for public transit projects 60 in accordance with chapter 341. 61 Section 2. Section 334.179, Florida Statutes, is amended 62 to read: 63 334.179 Department standards or specifications for 64 permissible use of aggregates; limitation on certification .— 65 (1) Notwithstanding any law, rule, or ordinance to the 66 contrary, a local government may not adopt standards or 67 specifications that are contrary to the department standards or 68 specifications for permissible use of aggregates that have been 69 certified for use. For purposes of this section, the term 70 "certified for use" means that the aggregates have been 71 certified by the producer in compliance accordance with 72 department rules. This section does not apply to a m ulticounty 73 independent special district created by a special act of the 74 Legislature. 75 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 4 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (2) A producer may not certify a shipment of aggregate to 76 a customer other than the department unless that shipment is in 77 compliance with department rules. Notwithstandi ng this section, 78 certification of aggregates to the department shall be in 79 compliance with chapter 14 -103, Florida Administrative Code. 80 Section 3. Section 334.181, Florida Statutes, is created 81 to read: 82 334.181 Department-approved electronic tickets .—83 Notwithstanding any law, rule, or ordinance to the contrary, a 84 local government may not refuse to accept an electronic ticket 85 approved by the department for use on a department project as an 86 official record for a material delivery on a local government 87 project. 88 Section 4. Section 337.025, Florida Statutes, is amended 89 to read: 90 337.025 Innovative transportation projects; department to 91 establish program.— 92 (1) The department may establish a program for 93 transportation projects demonstrating innovative te chniques of 94 highway and bridge design, construction, maintenance, and 95 finance which have the intended effect of measuring resiliency 96 and structural integrity and controlling time and cost increases 97 on construction projects. Such techniques may include, but are 98 not limited to, state -of-the-art technology for pavement, 99 safety, and other aspects of highway and bridge design, 100 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 5 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S construction, and maintenance; progressive design-build 101 contracts as specified in subsection (2); innovative bidding and 102 financing techniques; accelerated construction procedures; and 103 those techniques that have the potential to reduce project life 104 cycle costs. To the maximum extent practical, the department 105 must use the existing process to award and administer 106 construction and maintenance c ontracts. When specific innovative 107 techniques are to be used, the department is not required to 108 adhere to those provisions of law that would prevent, preclude, 109 or in any way prohibit the department from using the innovative 110 technique. However, before using an innovative technique that is 111 inconsistent with another provision of law, the department must 112 document in writing the need for the exception and identify what 113 benefits the traveling public and the affected community are 114 anticipated to receive. The depar tment may enter into no more 115 than $120 million in contracts awarded annually for the purposes 116 authorized by this section. 117 (2) If the department determines that it is in the best 118 interest of the public, the department may combine the design 119 and construction phases of a project into a single contract and 120 select the design-build firm in the early stages of a project to 121 ensure that the design -build firm is part of the collaboration 122 and development of the design as part of a step -by-step 123 progression through co nstruction. Such contract is referred to 124 as a progressive design -build contract. For progressive design -125 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 6 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S build contracts, the selection and award processes must include 126 a two-phase process. For phase one, the department shall 127 competitively award the contrac t to a design-build firm based 128 upon qualifications. For phase two, the design -build firm shall 129 solicit and receive competitive bids on all construction trade 130 subcontractor packages and, based upon such bids, negotiate with 131 the department a fixed firm price or guaranteed maximum price 132 that meets the project budget and scope as advertised in the 133 request for qualifications. 134 (3)(2) The annual cap on contracts provided in subsection 135 (1) does not apply to: 136 (a) Turnpike enterprise projects. 137 (b) Progressive Low-bid design-build milling and 138 resurfacing contracts for complex, high-risk projects with a 139 minimum contract value of $400 million . 140 Section 5. Subsections (15) and (16) of section 337.11, 141 Florida Statutes, are renumbered as subsections (18) and (19), 142 respectively, paragraphs (a) and (b) of subsection (7) are 143 amended, and new subsections (15), (16), and (17) are added to 144 that section, to read: 145 337.11 Contracting authority of department; bids; 146 emergency repairs, supplemental agreements, and change ord ers; 147 combined design and construction contracts; progress payments; 148 records; requirements of vehicle registration. — 149 (7)(a) If the department determines that it is in the best 150 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 7 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S interests of the public, the department may combine the design 151 and construction phases of a building, a major bridge, a limited 152 access facility, or a rail corridor project into a single 153 contract. Such contract is referred to as a design -build 154 contract. Design-build contracts may be advertised and awarded 155 notwithstanding the requireme nts of paragraph (3)(c). However, 156 construction activities may not begin on any portion of such 157 projects for which the department has not yet obtained title to 158 the necessary rights -of-way and easements for the construction 159 of that portion of the project has vested in the state or a 160 local governmental entity and all railroad crossing and utility 161 agreements have been executed. Title to rights -of-way shall be 162 deemed to have vested in the state when the title has been 163 dedicated to the public or acquired by presc ription. 164 (b) The department shall adopt by rule procedures for 165 administering design -build contracts, including progressive 166 design-build contracts. Such procedures shall include, but not 167 be limited to: 168 1. Prequalification requirements. 169 2. Public announcement procedures. 170 3. Scope of service requirements. 171 4. Letters of interest requirements. 172 5. Short-listing criteria and procedures. 173 6. Bid proposal requirements. 174 7. Technical review committee. 175 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 8 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 8. Selection and award processes. 176 9. Stipend requirements. 177 (15) Each contract let by the department for performance 178 of bridge construction or maintenance over navigable waters must 179 contain a provision requiring marine general liability 180 insurance, in an amount to be determined by the department, 181 which covers third-party personal injury and property damage 182 caused by vessels used by the contractor in the performance of 183 the work. 184 (16) The department shall implement strategies to reduce 185 the cost of all project phases, including design, construction, 186 and inspection, while ensuring that the design and construction 187 of projects meet applicable federal and state standards. The 188 department shall record such strategies and the projected 189 savings related thereto. 190 (17) The department may share a portion of the 191 construction cost savings realized due to a change in the 192 construction contract design and scope, initiated after 193 execution of the contract, with a design services consultant or 194 a construction engineering and inspection services consultant to 195 the extent that the consultant's input and involvement 196 contributed to such savings. The amount paid to a consultant 197 pursuant to this subsection may not exceed 10 percent of the 198 construction cost savings realized. 199 Section 6. Subsection (1) of section 337.1101, Florida 200 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 9 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Statutes, is amended to read: 201 337.1101 Contracting and procurement authority of the 202 department; settlements; notification required. — 203 (1) When the department, or any entity or enterprise 204 within the department, determines that it is in the best 205 interest of the public to resolve a protest filed in accordance 206 with s. 120.57(3) of the award of a contract being procured 207 pursuant to s. 337.11 or related to the purchase of personal 208 property or contractual services being procured pursuant to s. 209 287.057, through a settlement that requires the department to 210 pay a nonselected responsive bidder a total sum of $1 million or 211 more, including any amount paid pursuant to s. 334.049, any 212 amount paid pursuant to s. 337.11(8) which is not included in 213 the department's work pro gram approved by the Legislature as 214 part of the General Appropriations Act , or any amount paid 215 pursuant to any other law, the department must: 216 (a) Document in a written memorandum by the secretary the 217 specific reasons that such settlement and payment to a 218 nonselected responsive bidder is in the best interest of the 219 state. The written memorandum must be included and maintained in 220 the department's permanent files concerning the procurement and 221 must include: 222 1. A description of the property rights, patent rights, 223 copyrights, trademarks, or the engineering design or other 224 design work that the department will acquire or retain as a 225 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 10 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S result of such settlement; and 226 2. The specific appropriation in the existing General 227 Appropriations Act which the department in tends to use to 228 provide such payment. 229 (b) Provide prior written notification to the President of 230 the Senate, the Speaker of the House of Representatives, the 231 Senate and House of Representatives minority leaders, the chair 232 and vice chair of the Legislativ e Budget Commission, and the 233 Attorney General at least 5 business days, or as soon thereafter 234 as practicable, before the department makes the settlement 235 agreement final. Such written notification must include the 236 written memorandum required pursuant to par agraph (a). 237 (c) Provide, at the time settlement discussions regarding 238 any such payment have begun in earnest, written notification of 239 such discussions to the President of the Senate, the Speaker of 240 the House of Representatives, the Senate and House of 241 Representatives minority leaders, the chair and vice chair of 242 the Legislative Budget Commission, and the Attorney General. 243 Section 7. Subsections (1), (4), and (7) of section 244 337.14, Florida Statutes, are amended to read: 245 337.14 Application for qualifi cation; certificate of 246 qualification; restrictions; request for hearing. — 247 (1) Any contractor desiring to bid for the performance of 248 any construction contract in excess of $250,000 which the 249 department proposes to let must first be certified by the 250 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 11 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S department as qualified pursuant to this section and rules of 251 the department. The rules of the department must address the 252 qualification of contractors to bid on construction contracts in 253 excess of $250,000 and must include requirements with respect to 254 the equipment, past record, experience, financial resources, and 255 organizational personnel of the applying contractor which are 256 necessary to perform the specific class of work for which the 257 contractor seeks certification. Any contractor who desires to 258 bid on contracts in excess of $50 million and who is not 259 qualified and in good standing with the department as of January 260 1, 2019, must first be certified by the department as qualified 261 and must have satisfactorily completed two projects, each in 262 excess of $15 million, for the department or for any other state 263 department of transportation. The department may limit the 264 dollar amount of any contract upon which a contractor is 265 qualified to bid or the aggregate total dollar volume of 266 contracts such contractor is allowe d to have under contract at 267 any one time. Each applying contractor seeking qualification to 268 bid on construction contracts in excess of $250,000 shall 269 furnish the department a statement under oath, on such forms as 270 the department may prescribe, setting fort h detailed information 271 as required on the application. Each application for 272 certification must be accompanied by audited, certified 273 financial statements prepared in accordance with generally 274 accepted accounting principles and auditing standards by a 275 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 12 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S certified public accountant licensed in this state or another 276 state. The audited, certified financial statements must be for 277 the applying contractor and must have been prepared within the 278 immediately preceding 12 months. The department may not consider 279 any financial information of the parent entity of the applying 280 contractor, if any. The department may not certify as qualified 281 any applying contractor who fails to submit the audited, 282 certified financial statements required by this subsection. If 283 the application or the annual financial statement shows the 284 financial condition of the applying contractor more than 4 285 months before the date on which the application is received by 286 the department, the applicant must also submit interim audited, 287 certified financial statemen ts prepared in accordance with 288 generally accepted accounting principles and auditing standards 289 by a certified public accountant licensed in this state or 290 another state. The interim financial statements must cover the 291 period from the end date of the annual statement and must show 292 the financial condition of the applying contractor no more than 293 4 months before the date that the interim financial statements 294 are received by the department. However, upon the request of the 295 applying contractor, an application and accompanying annual or 296 interim financial statement received by the department within 15 297 days after either 4-month period under this subsection shall be 298 considered timely. An applying contractor desiring to bid 299 exclusively for the performance of constructio n contracts with 300 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 13 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S proposed budget estimates of less than $2 $1 million may submit 301 reviewed annual or reviewed interim financial statements 302 prepared by a certified public accountant. The information 303 required by this subsection is confidential and exempt from s. 304 119.07(1). The department shall act upon the application for 305 qualification within 30 days after the department determines 306 that the application is complete. The department may waive the 307 requirements of this subsection for projects having a contract 308 price of $500,000 or less if the department determines that the 309 project is of a noncritical nature and the waiver will not 310 endanger public health, safety, or property. 311 (4) If the applicant is found to possess the prescribed 312 qualifications, the department sha ll issue to him or her a 313 certificate of qualification that, unless thereafter revoked by 314 the department for good cause, will be valid for a period of 18 315 months after the date of the applicant's financial statement or 316 such shorter period as the department p rescribes. Submission of 317 an application does and subsequent approval do not affect 318 expiration of the certificate of qualification , the ability 319 factor of the applicant, or the maximum capacity rating of the 320 applicant. An applicant may submit a written reque st with a 321 timely submitted application to keep an existing certificate of 322 qualification in place until the expiration date. If the request 323 is approved by the department, the current maximum capacity 324 rating of the applicant must remain in place until expira tion of 325 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 14 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S the current certificate of qualification. If the department 326 finds that an application is incomplete or contains inadequate 327 information or information that cannot be verified, the 328 department may request in writing that the applicant provide the 329 necessary information to complete the application or provide the 330 source from which any information in the application may be 331 verified. If the applicant fails to comply with the initial 332 written request within a reasonable period of time as specified 333 therein, the department shall request the information a second 334 time. If the applicant fails to comply with the second request 335 within a reasonable period of time as specified therein, the 336 application shall be denied. 337 (7) A "contractor" as defined in s. 337.165(1)(d) or his 338 or her "affiliate" as defined in s. 337.165(1)(a) qualified with 339 the department under this section may not also qualify under s. 340 287.055 or s. 337.105 to provide testing services, construction, 341 engineering, and inspection services to the department . This 342 limitation does not apply to any design -build prequalification , 343 including any progressive design -build prequalification, under 344 s. 337.11(7) and does not apply when the department otherwise 345 determines by written order entered at least 30 days before 346 advertisement that the limitation is not in the best interests 347 of the public with respect to a particular contract for testing 348 services, construction, engineering, and inspection services. 349 This subsection does not authorize a contractor to provide 350 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 15 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S testing services, or provide construction, engineering, and 351 inspection services, to the department in connection with a 352 construction contract under which the contractor is performing 353 any work. Notwithstanding any other provision of law to the 354 contrary, for a project that is wholly or partially funded by 355 the department and administered by a local governmental entity, 356 except for a seaport l isted in s. 311.09 or an airport as 357 defined in s. 332.004, the entity performing design and 358 construction engineering and inspection services may not be the 359 same entity. 360 Section 8. Subsection (2) of section 337.168, Florida 361 Statutes, is amended to read: 362 337.168 Confidentiality of official estimates , identities 363 of potential bidders, and bid analysis and monitoring system. — 364 (2) A document that reveals the identity of a person who 365 has requested or obtained a bid package, plan, or specifications 366 pertaining to any project to be let by the department is 367 confidential and exempt from the provisions of s. 119.07(1) for 368 the period that begins 2 working days before the deadline for 369 obtaining bid packages, plans, or specifications and ends with 370 the letting of the bid. A document that reveals the identity of 371 a person who has requested or obtained a bid package, plan, or 372 specifications pertaining to any project to be let by the 373 department before the 2 working days before the deadline for 374 obtaining bid packages, plan s, or specifications remains a 375 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 16 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S public record subject to s. 119.07(1). 376 Section 9. Paragraph (a) of subsection (1) of section 377 338.223, Florida Statutes, is amended to read: 378 338.223 Proposed turnpike projects. — 379 (1)(a) Any proposed project to be constr ucted or acquired 380 as part of the turnpike system and any turnpike improvement 381 shall be included in the tentative work program. A proposed 382 project or group of proposed projects may not be added to the 383 turnpike system unless such project or projects are dete rmined 384 to be economically feasible and a statement of environmental 385 feasibility has been completed for such project or projects and 386 such projects are determined to be consistent, to the maximum 387 extent feasible, with approved local government comprehensive 388 plans of the local governments in which such projects are 389 located. The department may authorize engineering studies, 390 traffic studies, environmental studies, and other expert studies 391 of the location, costs, economic feasibility, and practicality 392 of proposed turnpike projects throughout the state and may 393 proceed with the design phase of such projects. The department 394 may not request legislative approval of a proposed turnpike 395 project until the design phase of that project is at least 30 396 percent complete. If a proposed project or group of proposed 397 projects is found to be economically feasible, consistent, to 398 the maximum extent feasible, with approved local government 399 comprehensive plans of the local governments in which such 400 HB 425 2023 CODING: Words stricken are deletions; words underlined are additions. hb0425-00 Page 17 of 17 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S projects are located, and a favorable statement of environmental 401 feasibility has been completed, the department, with the 402 approval of the Legislature, shall, after the receipt of all 403 necessary permits, construct, maintain, and operate such 404 turnpike projects. 405 Section 10. This act shall tak e effect July 1, 2023. 406