Florida Senate - 2013 SENATOR AMENDMENT Bill No. CS for CS for CS for SB 1632 Barcode 492710 LEGISLATIVE ACTION Senate . House . . . Floor: 1/AD/2R . 04/16/2013 12:08 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Latvala moved the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 127 - 141 4 and insert: 5 Section 1. Paragraph (b) of subsection (3) and paragraph 6 (g) of subsection (7) of section 163.01, Florida Statutes, are 7 amended to read: 8 163.01 Florida Interlocal Cooperation Act of 1969.— 9 (3) As used in this section: 10 (b) “Public agency” means a political subdivision, agency, 11 or officer of this state or of any state of the United States, 12 including, but not limited to, state government, county, city, 13 school district, single and multipurpose special district, 14 single and multipurpose public authority, metropolitan or 15 consolidated government, a separate legal entity or 16 administrative entity created under subsection (7), a public 17 transit provider as defined in s. 341.031, an independently 18 elected county officer, any agency of the United States 19 Government, a federally recognized Native American tribe, and 20 any similar entity of any other state of the United States. 21 (7) 22 (g)1. Notwithstanding any other provisions of this section, 23 any separate legal entity created under this section, the 24 membership of which is limited to municipalities and counties of 25 the state, and which may include a special district or a public 26 agency of this state in addition to a municipality or county or 27 both, may acquire, own, construct, improve, operate, and manage 28 public facilities, or finance facilities on behalf of any 29 person, relating to a governmental function or purpose, 30 including, but not limited to, wastewater facilities, water or 31 alternative water supply facilities, and water reuse facilities, 32 which may serve populations within or outside of the members of 33 the entity. Notwithstanding s. 367.171(7), any separate legal 34 entity created under this paragraph is not subject to Public 35 Service Commission jurisdiction. The separate legal entity may 36 not provide utility services within the service area of an 37 existing utility system unless it has received the consent of 38 the utility. 39 2. For purposes of this paragraph, the term: 40 a. “Host government” means the governing body of the 41 county, if the largest number of equivalent residential 42 connections currently served by a system of the utility is 43 located in the unincorporated area, or the governing body of a 44 municipality, if the largest number of equivalent residential 45 connections currently served by a system of the utility is 46 located within that municipality’s boundaries. 47 b. “Separate legal entity” means any entity created by 48 interlocal agreement the membership of which is limited to two 49 or more special districts, municipalities,orcounties, or 50 public agencies of the state, but which entity is legally 51 separate and apart from any of its member governments. 52 c. “System” means a water or wastewater facility or group 53 of such facilities owned by one entity or affiliate entities. 54 d. “Utility” means a water or wastewater utility and 55 includes every person, separate legal entity, lessee, trustee, 56 or receiver owning, operating, managing, or controlling a 57 system, or proposing construction of a system, who is providing, 58 or proposes to provide, water or wastewater service to the 59 public for compensation. 60 3. A separate legal entity that seeks to acquire any 61 utility shall notify the host government in writing by certified 62 mail about the contemplated acquisition not less than 30 days 63 before any proposed transfer of ownership, use, or possession of 64 any utility assets by such separate legal entity. The potential 65 acquisition notice shall be provided to the legislative head of 66 the governing body of the host government and to its chief 67 administrative officer and shall provide the name and address of 68 a contact person for the separate legal entity and information 69 identified in s. 367.071(4)(a) concerning the contemplated 70 acquisition. 71 4.a. Within 30 days following receipt of the notice, the 72 host government may adopt a resolution to become a member of the 73 separate legal entity, adopt a resolution to approve the utility 74 acquisition, or adopt a resolution to prohibit the utility 75 acquisition by the separate legal entity if the host government 76 determines that the proposed acquisition is not in the public 77 interest. A resolution adopted by the host government which 78 prohibits the acquisition may include conditions that would make 79 the proposal acceptable to the host government. 80 b. If a host government adopts a membership resolution, the 81 separate legal entity shall accept the host government as a 82 member on the same basis as its existing members before any 83 transfer of ownership, use, or possession of the utility or the 84 utility facilities. If a host government adopts a resolution to 85 approve the utility acquisition, the separate legal entity may 86 complete the acquisition. If a host government adopts a 87 prohibition resolution, the separate legal entity may not 88 acquire the utility within that host government’s territory 89 without the specific consent of the host government by future 90 resolution. If a host government does not adopt a prohibition 91 resolution or an approval resolution, the separate legal entity 92 may proceed to acquire the utility after the 30-day notice 93 period without further notice. 94 5. After the acquisition or construction of any utility 95 systems by a separate legal entity created under this paragraph, 96 revenues or any other income may not be transferred or paid to a 97 member of a separate legal entity, or to any other special 98 district, county,ormunicipality, or public agency of this 99 state, from user fees or other charges or revenues generated 100 from customers that are not physically located within the 101 jurisdictional or service delivery boundaries of the member, 102 special district, county,ormunicipality, or public agency 103 receiving the transfer or payment. Any transfer or payment to a 104 member, special district,or otherlocal government, or public 105 agency of this state must be solely from user fees or other 106 charges or revenues generated from customers that are physically 107 located within the jurisdictional or service delivery boundaries 108 of the member, special district,orlocal government, or public 109 agency receiving the transfer of payment. 110 6. This section is an alternative provision otherwise 111 provided by law as authorized in s. 4, Art. VIII of the State 112 Constitution for any transfer of power as a result of an 113 acquisition of a utility by a separate legal entity from a 114 municipality, county,orspecial district, or public agency of 115 this state. 116 7. The entity may finance or refinance the acquisition, 117 construction, expansion, and improvement of such facilities 118 relating to a governmental function or purpose through the 119 issuance of its bonds, notes, or other obligations under this 120 section or as otherwise authorized by law. The entity has all 121 the powers provided by the interlocal agreement under which it 122 is created or which are necessary to finance, own, operate, or 123 manage the public facility, including, without limitation, the 124 power to establish rates, charges, and fees for products or 125 services provided by it, the power to levy special assessments, 126 the power to sell or finance all or a portion of such facility, 127 and the power to contract with a public or private entity to 128 manage and operate such facilities or to provide or receive 129 facilities, services, or products. Except as may be limited by 130 the interlocal agreement under which the entity is created, all 131 of the privileges, benefits, powers, and terms of s. 125.01, 132 relating to counties, and s. 166.021, relating to 133 municipalities, are fully applicable to the entity. However, 134 neither the entity nor any of its members on behalf of the 135 entity may exercise the power of eminent domain over the 136 facilities or property of any existing water or wastewater plant 137 utility system, nor may the entity acquire title to any water or 138 wastewater plant utility facilities, other facilities, or 139 property which was acquired by the use of eminent domain after 140 the effective date of this act. Bonds, notes, and other 141 obligations issued by the entity are issued on behalf of the 142 public agencies that are members of the entity. 143 8. Any entity created under this section may also issue 144 bond anticipation notes in connection with the authorization, 145 issuance, and sale of bonds. The bonds may be issued as serial 146 bonds or as term bonds or both. Any entity may issue capital 147 appreciation bonds or variable rate bonds. Any bonds, notes, or 148 other obligations must be authorized by resolution of the 149 governing body of the entity and bear the date or dates; mature 150 at the time or times, not exceeding 40 years from their 151 respective dates; bear interest at the rate or rates; be payable 152 at the time or times; be in the denomination; be in the form; 153 carry the registration privileges; be executed in the manner; be 154 payable from the sources and in the medium or payment and at the 155 place; and be subject to the terms of redemption, including 156 redemption prior to maturity, as the resolution may provide. If 157 any officer whose signature, or a facsimile of whose signature, 158 appears on any bonds, notes, or other obligations ceases to be 159 an officer before the delivery of the bonds, notes, or other 160 obligations, the signature or facsimile is valid and sufficient 161 for all purposes as if he or she had remained in office until 162 the delivery. The bonds, notes, or other obligations may be sold 163 at public or private sale for such price as the governing body 164 of the entity shall determine. Pending preparation of the 165 definitive bonds, the entity may issue interim certificates, 166 which shall be exchanged for the definitive bonds. The bonds may 167 be secured by a form of credit enhancement, if any, as the 168 entity deems appropriate. The bonds may be secured by an 169 indenture of trust or trust agreement. In addition, the 170 governing body of the legal entity may delegate, to an officer, 171 official, or agent of the legal entity as the governing body of 172 the legal entity may select, the power to determine the time; 173 manner of sale, public or private; maturities; rate of interest, 174 which may be fixed or may vary at the time and in accordance 175 with a specified formula or method of determination; and other 176 terms and conditions as may be deemed appropriate by the 177 officer, official, or agent so designated by the governing body 178 of the legal entity. However, the amount and maturity of the 179 bonds, notes, or other obligations and the interest rate of the 180 bonds, notes, or other obligations must be within the limits 181 prescribed by the governing body of the legal entity and its 182 resolution delegating to an officer, official, or agent the 183 power to authorize the issuance and sale of the bonds, notes, or 184 other obligations. 185 9. Bonds, notes, or other obligations issued under this 186 paragraph may be validated as provided in chapter 75. The 187 complaint in any action to validate the bonds, notes, or other 188 obligations must be filed only in the Circuit Court for Leon 189 County. The notice required to be published by s. 75.06 must be 190 published in Leon County and in each county that is a member of 191 the entity issuing the bonds, notes, or other obligations, or in 192 which a member of the entity is located, and the complaint and 193 order of the circuit court must be served only on the State 194 Attorney of the Second Judicial Circuit and on the state 195 attorney of each circuit in each county that is a member of the 196 entity issuing the bonds, notes, or other obligations or in 197 which a member of the entity is located. Section 75.04(2) does 198 not apply to a complaint for validation brought by the legal 199 entity. 200 10. The accomplishment of the authorized purposes of a 201 legal entity created under this paragraph is in all respects for 202 the benefit of the people of the state, for the increase of 203 their commerce and prosperity, and for the improvement of their 204 health and living conditions. Since the legal entity will 205 perform essential governmental functions in accomplishing its 206 purposes, the legal entity is not required to pay any taxes or 207 assessments of any kind whatsoever upon any property acquired or 208 used by it for such purposes or upon any revenues at any time 209 received by it. The bonds, notes, and other obligations of an 210 entity, their transfer, and the income therefrom, including any 211 profits made on the sale thereof, are at all times free from 212 taxation of any kind by the state or by any political 213 subdivision or other agency or instrumentality thereof. The 214 exemption granted in this subparagraph is not applicable to any 215 tax imposed by chapter 220 on interest, income, or profits on 216 debt obligations owned by corporations. 217 218 219 ================= T I T L E A M E N D M E N T ================ 220 And the title is amended as follows: 221 Delete line 4 222 and insert: 223 agency” to include a public transit provider; 224 providing that a public agency of this state may have 225 membership in a separate legal entity created under 226 the Florida Interlocal Cooperation Act of 1969; 227 amending