Senate Bill sb1614c1

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    Florida Senate - 2001                           CS for SB 1614

    By the Committee on Comprehensive Planning, Local and Military
    Affairs; and Senator Latvala




    316-1799-01

  1                      A bill to be entitled

  2         An act relating to local government utilities

  3         assistance; providing a short title; providing

  4         legislative findings; providing definitions;

  5         establishing a pilot Local Government Utilities

  6         Assistance Program; providing for

  7         administration by the Department of

  8         Environmental Protection; providing for

  9         criteria for acquiring certain private

10         water-wastewater utilities; providing for

11         transfer of certain moneys from the Solid Waste

12         Management Trust Fund to the program; providing

13         for distribution of such moneys for certain

14         purposes; providing for financial assistance

15         for certain purposes under certain

16         circumstances; requiring the Department of

17         Environmental Protection to submit a report on

18         the pilot program to the Governor and

19         Legislature; providing an effective date.

20

21  Be It Enacted by the Legislature of the State of Florida:

22

23         Section 1.  Short title.--This act may be cited as the

24  "Local Government Utilities Assistance Act."

25         Section 2.  Legislative findings; intent.--The

26  Legislature finds that in many areas of the state the

27  condition or operation of privately owned water-wastewater

28  utility systems and facilities create a present or potential

29  threat to the environment or to the health of the utility

30  customers. It is therefore the intent of the Legislature to

31  establish a pilot program to assist local governments in

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    Florida Senate - 2001                           CS for SB 1614
    316-1799-01




  1  acquiring privately owned water-wastewater utilities.  It is

  2  the further intent of the Legislature that the Department of

  3  Environmental Protection evaluate and report to the President

  4  of the Senate and the Speaker of the House of Representatives

  5  on this pilot program and on the need to expand the program to

  6  address the acquisition or consolidation of publicly owned

  7  water-wastewater utilities that threaten the environment or

  8  public health.

  9         Section 3.  Definitions.--As used in this act:

10         (1)  "Community standards" means, with respect to water

11  and sewer utility rates, rates that are on a par with other

12  rates in the county, or similar utility jurisdictions in

13  surrounding counties, after accounting for relative household

14  incomes or other measures of affordability and size of

15  customer base, all as may be further defined by department

16  rule.

17         (2)  "Department" means the Department of Environmental

18  Protection.

19         (3)  "Privately owned water-wastewater utility" means a

20  water or wastewater utility whose utility assets are privately

21  owned.

22         Section 4.  Local Government Utilities Assistance

23  Program; state assistance.--The Local Government Utilities

24  Assistance Program is established in the department.  The

25  department may award financial assistance to a local

26  government in the form of a grant for the purpose of acquiring

27  privately owned water-wastewater utilities. A local government

28  may qualify for financial assistance if the local government

29  documents to the department that the privately owned

30  water-wastewater utility the local government intends to

31  acquire meets the following criteria:

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    Florida Senate - 2001                           CS for SB 1614
    316-1799-01




  1         (1)  The quality of water or wastewater service

  2  provided by the privately owned water-wastewater utility is

  3  consistently inadequate to meet public health or water quality

  4  standards.

  5         (2)(a)  The privately owned water-wastewater utility

  6  cannot make the improvements necessary to alleviate the public

  7  health or water quality threats through its own resources

  8  without increasing its rates for services to an amount beyond

  9  that which is commensurate with community standards;

10         (b)  Operation of the privately owned water-wastewater

11  utility represents a public health or water quality threat

12  that would be more effectively addressed through public

13  management or ownership, as demonstrated through a feasibility

14  determination provided by the applicant for financial

15  assistance to the department, that takes into account

16  economic, managerial, and administrative considerations; or

17         (c)  The private utility desires to sell.

18         Section 5.  Acquisition of privately owned

19  water-wastewater utility.--If the applicant for financial

20  assistance demonstrates, based on documentation acceptable to

21  the department, that acquisition of a privately owned

22  water-wastewater utility qualifies under section 4, the

23  department may authorize financial assistance for such

24  acquisition.

25         Section 6.  Allocation of moneys to the program;

26  disposition.--Notwithstanding s. 212.20(6)(e)2., Florida

27  Statutes, for fiscal years 2001-2002 and 2002-2003, one-half

28  of the moneys that would otherwise be distributed to the Solid

29  Waste Management Trust Fund pursuant to s. 212.20, Florida

30  Statutes, not to exceed $2.5 million, shall be distributed to

31  the program to be used as provided in this act to implement

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    Florida Senate - 2001                           CS for SB 1614
    316-1799-01




  1  the program as a pilot program in Pasco County.  Upon approval

  2  by the department, awarded funds may be used in accordance

  3  with sections 4 and 5.  The department may use up to 2 percent

  4  of the funds appropriated for the program to pay the costs of

  5  administering the pilot program.

  6         Section 7.  By January 1, 2004, the department shall

  7  provide to the Governor, the President of the Senate, and the

  8  Speaker of the House of Representatives a report on the Pasco

  9  County pilot program.  The report also shall evaluate the need

10  to expand the Local Government Utilities Assistance Program to

11  address the acquisition or consolidation of publicly owned

12  water-wastewater utilities that threaten water quality or

13  public health.  The report shall recommend any statutory

14  changes necessary to implement the Local Government Utilities

15  Assistance Program and identify any rules that would be useful

16  in implementing the program.

17         Section 8.  This act shall take effect July 1, 2001.

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19          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
20                             SB 1614

21

22  Reduces the maximum amount of moneys diverted from the Solid
    Waste Trust Fund to the Local Government Utilities Assistance
23  Act from $5 million to $2.5 million dollars.

24  Allows the money to be diverted in fiscal year 2002-2003, in
    addition to 2001-2002.
25
    Removes language authorizing the used of the financial
26  assistance to be be pledged for payment of debt service on
    bonds.
27
    Adds a definition of "community standards."
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