CS/HB 541 - Public-Private Partnerships Summary

• Creates Section 1013.505, Florida Statutes to establish a framework allowing state university boards of trustees to enter into public-private partnerships for developing, financing, and operating qualifying educational, research, housing, parking, infrastructure, recreational, or cultural projects.

• Requires boards to receive and evaluate unsolicited or solicited proposals from private entities, publish notice for competing proposals (21-120 days), and rank proposals based on qualifications, business terms, design innovation, and financing plans.

• Mandates comprehensive agreements include performance/payment bonds, design review, insurance requirements, maintenance standards, financial reporting, user fee provisions, and procedures for material default or termination.

• Allows private entities to finance projects through various mechanisms including private capital, federal loans, commercial bank loans, and hedging arrangements, with all liens and financing paid in full upon transfer of ownership to the board.

• Preserves board sovereign immunity and prohibits pledging board full faith and credit to secure private entity financing; allows boards to terminate agreements with cause and use project revenues for operation and maintenance costs.

• Effective date: July 1, 2014.