H 5403

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1
2An act relating to correctional facilities financing
3and capital improvements; creating s. 944.751, F.S.;
4providing legislative intent; providing an
5appropriation to the Department of Corrections;
6requiring appropriated funds to be used in a certain
7manner; requiring the department to begin the planning
8and design phase for the construction of certain
9facilities; requiring the department to make certain
10recommendations to the Legislature; requiring the
11department to contract with a construction management
12entity in certain circumstances; authorizing the
13Division of Bond Finance of the State Board of
14Administration to issue bonds for certain purposes;
15creating a financing oversight committee; providing
16membership and duties of the committee; requiring the
17Chief Financial Officer to transfer specified funds to
18the State Board of Administration for the Debt
19Reduction Program; providing an effective date.
20
21WHEREAS, the State of Florida is facing a looming crisis
22related to its correctional facility infrastructure, and
23WHEREAS, many correctional facilities are more than 40
24years old, lack air conditioning, and have become too costly to
25maintain or modernize, and
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26WHEREAS, the age and design of the correctional facilities
27    have become a safety concern for correctional officers and staff
28    who work at such facilities, and
29WHEREAS, the State of Florida lacks state-of-the-art
30    medical and mental health facilities to adequately care for
31    inmates, causing the Department of Corrections to serve inmates
32    in more costly private facilities, and
33WHEREAS, the Legislature appropriated $850 million in the
34    2022-2023 fiscal year for the planning, design, and construction
35    of a new correctional institution and a new prison hospital unit
36    which was subsequently vetoed by the Governor, and
37WHEREAS, the failure to construct new correctional
38    facilities could create systemwide capacity concerns which may
39    result in the premature release of dangerous criminals and put
40    the people of Florida at risk, and
41WHEREAS, the Legislature has allocated $1.7 billion for the
42    Debt Reduction Program over the past 3 fiscal years and driven a
43    50 percent reduction in Florida's tax-supported debt, and
44WHEREAS, it is incumbent upon the State of Florida to
45    prioritize limited resources to maintain the safe operation and
46    security of the state's correctional facilities to ensure public
47    safety and the safety of correctional officers, staff, and
48    inmates, and
49WHEREAS, the immediate needs of the correctional facilities
50    demand the reprioritization of funding previously used to retire
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51    debt that was financed at historically low rates to instead be
52    invested in Florida's correctional employees and system, NOW,
53    THEREFORE,
54
55    Be It Enacted by the Legislature of the State of Florida:
56
57Section 1.  Section 944.751, Florida Statutes, is created
58    to read:
59944.751       Correctional facilities capital improvement.—
60(1)     LEGISLATIVE INTENT.—The Legislature recognizes the
61    critical fixed capital outlay needs of the department.
62    Therefore, it is the intent of the Legislature to provide
63    funding through cash payments or proceeds of bonds distributed
64    under this section to address these needs.
65(2)     CAPITAL IMPROVEMENT FUNDING.—Beginning in the 2026-
66    2027 fiscal year and each fiscal year through 2066-2067, the
67    Legislature shall appropriate $50 million in recurring funds
68    from the General Revenue Fund to the department to develop and
69    implement a capital improvement plan for new and existing
70    correctional facilities.
71(3)     USE OF FUNDS.—From the specific amount appropriated
72    for capital improvement projects each fiscal year, the
73    department must use the funds in the following order of
74    priority:
75(a)     First, for the payment of debt service or funding of
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76     debt service reserve funds, rebate obligations, or other amounts
77     payable with respect to bonds issued pursuant to this section.
78(b)     Second, to address the department's critical facility
79     needs, including, but not limited to, the construction of new
80     facilities or the maintenance and repair of existing facilities
81     of the department as appropriated in the General Appropriations
82     Act.
83(4)     NEW CORRECTIONAL HOSPITAL UNIT.—Beginning on July 1,
84     2026, the department shall begin the planning and design phase
85     for the construction of one new 600-bed correctional hospital
86     unit that will include mental health services. The department
87     shall provide preference to the use or purchase of existing
88     state or locally owned land prior to the consideration of
89     privately owned land for site acquisition. The site must be
90     capable of colocation with any prospective major correctional
91     institution construction. The site must be located where the
92     labor market, potential labor pool, and other factors such as
93     commute distance and cost of living are favorable to provide a
94     sufficient workforce for staffing the facility. If state or
95     locally owned land is not available, funds may be used for
96     purchase of land.
97(5)     CAPITAL IMPROVEMENTS.—
98(a)     The department shall include recommendations for the
99     use of funds in its annual legislative budget request.
100(b)     For any project costing more than $5 million, the
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101    department shall contract with a construction management entity
102    that will be responsible for scheduling and coordinating both
103    the design and construction phases of the project.
104(c)     Upon the completion of construction of any new
105    correctional institutions, the department shall submit a
106    recommendation to the Legislature to provide options for the
107    closure of existing facilities that are perpetually understaffed
108    or continue to present excessive repair and renovation costs.
109(6)     BONDING AUTHORITY.—
110(a)     The Division of Bond Finance of the State Board of
111    Administration is authorized to issue bonds to finance the cost
112    of constructing a new correctional facility. Bonds shall not be
113    issued for maintenance or repair of existing facilities.
114(b)     Bonds issued pursuant to this subsection are payable
115    from the funds appropriated and transferred pursuant to this
116    section.
117(c)     The department shall request that the Division of Bond
118    Finance issue bonds authorized by this section in accordance
119    with the General Appropriations Act. The Division of Bond
120    Finance shall issue such bonds pursuant to the State Bond Act.
121(d)     Except for bonds issued to refund previously issued
122    bonds, a series of bonds may not be issued pursuant to this
123    section unless such bonds are approved and the debt service for
124    the remainder of the fiscal year in which the bonds are issued
125    is specifically appropriated in the General Appropriations Act.
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126(7)     FINANCING OVERSIGHT COMMITTEE.—To ensure that the
127    funds, including any bond proceeds, are spent in an efficient
128    and responsible manner, a financing oversight committee is
129    created.
130(a)     The committee must include a representative from the
131    Senate, the House of Representatives, the Office of Policy and
132    Budget in the Executive Office of the Governor, the department,
133    and the Division of Bond Finance.
134(b)     The committee shall recommend the most cost-beneficial
135    and effective financing methods to meet the needs of the
136    department for any new capital facility construction.
137Section 2.  Notwithstanding s. 2, chapter 2025-207, Laws of
138    Florida, beginning in the 2026-2027 fiscal year, the Chief
139    Financial Officer shall transfer $150 million from the General
140    Revenue Fund on July 1 each fiscal year to the State Board of
141    Administration for the Debt Reduction Program pursuant to s.
142    215.98, Florida Statutes. Any unexpended funds shall revert on
143    June 30 of each fiscal year to the General Revenue Fund.
144Section 3.  This act shall take effect July 1, 2026.
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