CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 2                                 .
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 3                                 .
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  The Committee on Community Affairs offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

17         Section 1.  Chapter 59-556, Laws of Florida, 1959, is

18  codified, reenacted, amended, and repealed as herein provided.

19         Section 2.  The Lake Apopka Natural Gas District is

20  re-created and reenacted to read:

21         Section 1.  The legislative findings contained in

22  section 1 of chapter 59-556, Laws of Florida, 1959, are

23  reaffirmed.  It is hereby determined, found, and ascertained

24  that:

25         (1)  The municipalities of Apopka, Winter Garden, and

26  Clermont, Florida, made such application, or applications, as

27  were necessary and proper to obtain an allocation of natural

28  gas for the use of the inhabitants of such cities and

29  surrounding environs.

30         (2)  Other nearby municipalities may likewise seek

31  allotments of natural gas and it is deemed that the most

                                  1

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  economical method by which such municipalities can avail

 2  themselves of such gas, if allotments therefor be granted, is

 3  through the construction of a transmission line system

 4  designed to serve all of the above named municipalities and

 5  such others whose corporate authorities shall elect to

 6  participate in the project as hereinafter authorized.

 7         (3)  The most advantageous and economical method of

 8  affecting the construction of such project and financing the

 9  same is through the establishment of a district which shall be

10  empowered to:

11         (a)  Cause the construction of the project;

12         (b)  Finance the same through the issuance of revenue

13  obligations payable from the earnings of such system; and

14         (c)  Operate and maintain the same for the benefit of

15  the municipalities which it serves.

16         Section 2.  Definitions.--Whenever used in this act,

17  unless a different meaning clearly appears from the context:

18         (1)  The term "gas transmission system" shall mean and

19  include a supply of natural gas, whether acquired from wells

20  or deposits or from a pipe line or other source of supply and

21  a pipe line or lines, plant and system for the acquisition and

22  the transportation, transmission, and delivery of natural gas

23  or a plant for the manufacture or storage of gas and the

24  transportation, transmission, and delivery thereof, together

25  with all property and all appurtenances thereto, real,

26  personal, or mixed, used or useful in connection therewith,

27  including franchises, rights-of-way, and easements.  A gas

28  transmission system may include facilities for making

29  deliveries of gas to industrial and commercial users as well

30  as to gas distribution systems.

31         (2)  The term "gas distribution system" shall mean and

                                  2

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  include a plant and system for the distribution and sale of

 2  gas and gas services in a municipality and the surrounding

 3  territory, including the sale and distribution of gas to

 4  residential, commercial, industrial, institutional, and other

 5  users, together with all appurtenances thereto and all

 6  property, real, personal, or mixed used or useful in

 7  connection therewith, including franchises, rights-of-way, and

 8  easements.

 9         (3)  The term "system" shall mean and include a gas

10  transmission system or systems and a gas distribution system

11  or systems, or any one or more thereof.

12         (4)  The term "district" shall mean the territory,

13  hereinafter particularly described, located in portions of

14  Orange and Lake Counties, as re-created and reestablished by

15  this act.

16         (5)  The terms "board of commissioners" and "board"

17  shall mean the board of commissioners hereinafter provided for

18  and constituting the governing body of the district.

19         (6)  The term "municipality" shall mean and include

20  incorporated cities, towns, and villages and other municipal

21  corporations within the district.

22         (7)  The term "member municipalities" shall mean the

23  municipalities of Apopka, Winter Garden, and Clermont.

24         (8)  The term "bonds" shall mean and include the bonds,

25  notes, certificates, refunding bonds, or other financial

26  obligations in either temporary or definitive form which the

27  district is authorized to issue pursuant to this act.

28         (9)  Words importing singular number shall include the

29  plural number in each case and vice versa, and words importing

30  persons shall include firms and corporations.

31         Section 3.  Creation and establishment.--The creation

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  and establishment of a body corporate and an independent

 2  special district, whose existence shall be perpetual, to be

 3  known as "The Lake Apopka Natural Gas District," by chapter

 4  59-556, Laws of Florida, 1959, is hereby reaffirmed and

 5  reenacted.  The objects and purposes of the district shall be:

 6         (1)  To acquire by purchase, lease, or construction,

 7  and to own, finance, operate, maintain, extend, and improve,

 8  one or more gas systems described as follows:

 9         (a)  A gas transmission system or systems to serve gas

10  to customers within or without municipalities and/or to such

11  of the member municipalities and such other municipalities in

12  its area of service as the district may determine to serve,

13  with an adequate supply of natural and/or manufactured gas, at

14  such point or points as the district may determine, provided

15  that before the district may serve any municipality within the

16  district but not a member thereof, it shall first be granted a

17  franchise by said municipality.

18         (b)  A gas transmission line or lines for the purpose

19  of supplying gas to customers within the district.

20         (c)  A gas manufacturing plant or plants and system or

21  systems.

22         (d)  Such gas distribution system or systems serving

23  such member municipalities, as well as the surrounding

24  unincorporated area or areas and other such municipalities as

25  the district or its board of commissioners may determine;

26  provided that such service shall be confined to areas or

27  municipalities within the district.

28         (e)  Such other facilities and lines as may be

29  necessary or desirable to serve such other customers along its

30  supply lines as the district may determine to serve or be

31  obligated to furnish service under the laws of Florida or the

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  United States, provided such service is confined to customers

 2  located within the district.

 3         (f)  The district may itself own and operate gas

 4  distribution systems in its area of service, whether in a

 5  municipality which is a member of the district or in some

 6  other municipality or in unincorporated territory.

 7         (2)  To acquire by manufacture, purchase, or otherwise,

 8  natural or manufactured gas from any source whatsoever, public

 9  or private, now or hereafter available and to transport and

10  transmit such gas so as to make the same available for sale

11  and to sell and deliver gas to or within each of the member

12  municipalities and to industrial and institutional users and

13  to line tap commercial and residential users and to gas

14  distribution systems within the area of service of the

15  district, whether such gas distribution system is publicly or

16  privately owned.

17         Section 4.  Area of service.--The territorial limits

18  and area of service of the district shall embrace and include

19  the following described property lying and being in portions

20  of Orange and Lake Counties, Florida:

21

22         Beginning at the Southwest corner of Section

23         31, Township 23 South, Range 24 East, in Lake

24         County; thence east along the south boundary of

25         Township 23 south to the southeast corner of

26         Section 35, Township 23 South, Range 28 east;

27         thence north along said Section line to the

28         northwest corner of Section 1, Township 22

29         south, Range 28 east; thence east along the

30         Township line between Townships 21 and 22 south

31         to the southeast corner of Section 33, Township

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         21 south, Range 29 east; thence north along

 2         said Section line to the northeast corner of

 3         Section 28, Township 21 south, Range 29 east;

 4         thence west to the northwest corner of Section

 5         30, Township 21 south, Range 29 east; thence

 6         north to the northeast corner of Section 36;

 7         Township 20 south, Range 28 east; thence

 8         northeasterly along the meandering of the

 9         Wekiva River to its intersection with the

10         Township line between Townships 19 and 20

11         south; thence west along said Township line to

12         the northwest corner of Section 6, Township 20

13         south, Range 27 east, thence south along said

14         Range 27 east; thence south along said Range

15         line to the northeast corner of Section 1,

16         Township 21 south, Range 26 east; thence west

17         along said Township line to the northwest

18         corner of Section 6, Township 21 south, Range

19         24 east; thence south along said Range line to

20         the point of beginning.

21

22  The district, however, may acquire a supply of gas either

23  within or without its territorial boundaries and either within

24  or without the state and may transport and transmit from the

25  point of such acquisition to the system or systems of the

26  district.

27         Section 5.  Declaration of policy.--It is hereby found

28  and declared that in the construction, acquisition,

29  improvements, maintenance, operation, and extension in any or

30  all of said gas system the district will be exercising a

31  proper governmental function.

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         Section 6.  Members of the district.--Members of the

 2  district shall be the municipalities of Apopka, Winter Garden,

 3  and Clermont.

 4         Section 7.  Powers of the district.--The district shall

 5  have each and all of the following powers, together with all

 6  power incidental thereto or necessary to the discharge

 7  thereof:

 8         (1)  To sue and be sued and to defend suits against it;

 9         (2)  To have and use an official seal for attesting

10  bonds and other official acts and deeds and to alter same at

11  pleasure;

12         (3)  To receive, acquire, take, and hold, whether by

13  purchase, gift, or lease, devise or otherwise, real, personal,

14  or mixed property of any nature whatsoever that the board of

15  commissioners may deem a necessary or convenient part of, or

16  useful in connection with, any system or systems herein

17  authorized;

18         (4)  To make contracts extending over a period not

19  exceeding 40 years for a supply or supplies of natural gas and

20  for the sale and delivery of natural or manufactured gas;

21         (5)  To contract for the design, construction,

22  extension, and repairs of any natural gas transmission and/or

23  distribution system or for facilities and services connected

24  therewith which the board shall in its discretion determine

25  are necessary or desirable for the district;

26         (6)  To contract with any person, firm, or corporation

27  for the entire supervision, operation, and management of any

28  one or more of the systems of the district, including the

29  collection and distribution of the revenue therefrom for such

30  period of time as the board may deem advisable not exceeding

31  10 years and at such compensation and upon such terms as may

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  be agreed upon and approved by the board of commissioners;

 2         (7)  To borrow money for any authorized purpose and to

 3  issue in evidence of the borrowing interest bearing bonds

 4  payable solely from the revenues derived from the revenues

 5  derived from the operation of any one or more of its systems;

 6         (8)  To pledge to the payment of its bonds any revenues

 7  from which said bonds are made payable;

 8         (9)  To make such covenants in connection with the

 9  issuance of bonds or in order to secure the payment of bonds,

10  as are needful to secure and protect the rights of the holders

11  of such bonds, notwithstanding that such covenants may operate

12  as limitations on the exercise of other powers granted by this

13  act;

14         (10)  To establish, by resolution, rates and charges

15  which shall be uniform throughout the district as to each

16  class of consumer;

17         (11)  To collect and enforce collection of such

18  charges, by all legal means including, but not limited to,

19  requiring customers, as a condition of receiving goods and

20  services from the district, to make a cash deposit to assure

21  payment of the charges made by the district for such goods and

22  services and to accept surety bonds, letters of credit, and

23  other forms of financial guaranty in lieu of cash deposits;

24         (12)  To lease, exchange, sell, convey, and otherwise

25  dispose of its real, personal, or mixed property by any form

26  of conveyance or transfer;

27         (13)  To appoint and employ officers, agents, and

28  employees, including attorneys, as its business may require,

29  to prescribe their duties, to fix their compensation, and to

30  determine to what extent they shall be bonded for the faithful

31  performance of their duties;

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         (14)  To provide for such insurance as its board of

 2  commissioners may deem advisable;

 3         (15)  To retain and confer upon a corporate trustee the

 4  power to make disposition of the proceeds from all borrowing

 5  and all revenues derived from the operation of the system, in

 6  accordance with the resolution adopted by the board as an

 7  incident to the issuance of any notes, bonds, or other types

 8  of securities; and

 9         (16)  To exercise all powers of eminent domain now or

10  hereafter conferred on counties in this state provided,

11  however, that such power of eminent domain may not be

12  exercised outside the territorial limits of the district.  The

13  powers hereinabove granted to the district shall be so

14  construed to enable the district to fulfill the objects and

15  purposes of the district as set forth in section 3 of this

16  act.

17         Section 8.  Franchises.--Any municipality, county, gas

18  district, or agency of such municipality, county, or gas

19  district, which is located wholly within the territorial

20  limits of the district, or any agency of the state, is hereby

21  empowered and authorized to enter into agreements, contracts,

22  and franchises with said district upon such terms and

23  conditions and for such periods of time as may be agreed upon,

24  provided no agreement, contract, or franchise shall extend

25  over a period exceeding 40 years.

26         Section 9.  Eminent domain.--The powers of eminent

27  domain herein granted and conferred upon the district

28  incorporated under this act shall be exercised in the same

29  manner and subject to the same limitations as in the case of

30  counties in this state; provided the district shall have no

31  powers of eminent domain beyond its territorial boundaries.

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         Section 10.  Board of commissioners.--The district

 2  shall have a board of commissioners, consisting of five

 3  members.  There shall be two members who shall live in the

 4  corporate limits of the City of Apopka; there shall be two

 5  members who shall live in the corporate limits of the City of

 6  Winter Garden; and there shall be one member who shall live in

 7  the corporate limits of the City of Clermont.  Each

 8  commissioner shall be appointed by the governing body of the

 9  municipality in which he or she resides and shall serve for a

10  term of 2 years or until his or her successor is appointed in

11  like manner and qualified.  The commissioners shall serve

12  without compensation; except that they shall be reimbursed for

13  actual expenses incurred in and about the performance of their

14  duties thereunder and at the direction of the board they may

15  be paid a fee of not exceeding $100 for each board meeting

16  attended by them.  Appointment to fill a vacancy shall be for

17  the unexpired term.  The appointing authority may remove any

18  member of the board within the term within which he or she

19  shall have been appointed, after giving to such member a copy

20  of the charges against him or her and an opportunity to be

21  heard in his or her defense and the action of the appointing

22  authority shall be final and nonreviewable.

23         Section 11.  Organization of the board;

24  officers.--After their appointment, the members of the board

25  of commissioners shall meet and organize.  At such meeting,

26  the members of the board shall elect from their number a

27  chair.  They shall also choose a secretary, who may, but need

28  not be, a member of the board, and such other officers,

29  agents, and employees as may appear to be desirable.  One

30  person may serve both as secretary and treasurer.

31         Section 12.  Authority of the board.--The board shall

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  constitute the governing body of the district.  The board

 2  shall exercise all the powers of the district and shall do all

 3  things necessary or convenient in acquiring, owning,

 4  operating, developing, extending, improving, financing, and

 5  refinancing the gas system or systems owned or to be owned by

 6  the district, including, but not limited to, the adoption and

 7  amendment of rules and regulations for the management and

 8  conduct of its affairs and the enterprises in which it is

 9  engaged; to use with the consent of any of its member

10  municipalities the agent, employees, or facilities or property

11  of such municipalities and to provide for the payment of the

12  agreed proportion of the costs therefor; to appoint officers,

13  agents, and employees, including attorneys, and to fix their

14  compensation, to provide for the execution of deeds,

15  indentures of trust, bonds, gas supply contracts, gas service

16  contracts, supervision contracts, and other instruments and

17  contracts of the district.  Action of the board shall be taken

18  by resolution.  Such resolution shall be effective immediately

19  upon adoption without posting or publication.

20         Section 13.  Bonds of the district.--

21         (1)  The bonds of the district shall be authorized by

22  resolution of the board and may be either term or serial

23  bonds, shall bear such date or dates, mature at such time or

24  times, not exceeding 40 years from their respective dates,

25  bear interest at such rate or rates not exceeding 6 percent

26  per annum, payable semiannually, be in such denomination, be

27  in such form, either coupon or fully registered, shall carry

28  such registration, exchangeability and interchangeability

29  privileges, be paid in such medium of payment and at such

30  place or places, be subject to such terms of redemption and be

31  entitled to such priority on the revenues, rates, fees,

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  rentals, or other charges or receipts of the district as such

 2  resolution or any resolution subsequent thereto may provide.

 3  The bonds shall be executed either by manual or facsimile

 4  signature, by such officer as the board may determine,

 5  provided that such bonds shall bear at least one signature

 6  which is manually executed thereon and the coupons attached to

 7  such bonds shall bear the facsimile signature or signatures of

 8  such officer or officers as shall be designated by the board

 9  and shall have the seal of the board affixed, imprinted,

10  reproduced, or lithographed thereon, all as may be prescribed

11  in such resolution or resolutions.

12         (2)  Such bonds may be sold either at public or private

13  sale at such price or prices as the board shall determine to

14  be in the best interest of the district, provided that the

15  interest cost to the district on such bonds shall not exceed 6

16  percent per annum. Pending the preparation of definitive

17  bonds, interim certificates may be issued to the purchaser or

18  purchasers of such bonds and may contain such terms and

19  conditions as the board may determine.

20         (3)  Any such resolution or resolutions authorizing any

21  bonds hereunder may contain provisions which shall be part of

22  the contract with the holders of such bonds, as to:

23         (a)  The pledging of all or any part of the revenues,

24  rates, fees, rentals, or other charges or receipts of the

25  district, derived by the district from the operation of its

26  gas system or systems;

27         (b)  The completion, improvement, operation, extension,

28  maintenance, and repair of its system, and the duties of the

29  board, the district, and others with reference thereto;

30         (c)  Limitations on the purposes to which the proceeds

31  of bonds then or thereafter to be issued, or of any loan or

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  grant by the United States or the state may be applied,

 2         (d)  The fixing, charging, establishing, collecting of

 3  rates, fees, rentals, or other charges for the use of the

 4  services and facilities of the gas system of the district or

 5  any part thereof;

 6         (e)  The setting aside of reserves, sinking funds, or

 7  repair and replacement funds and the reservation and

 8  disposition thereof;

 9         (f)  Limitations on the issuances of additional bonds,

10  the terms and provisions of any deed of trust or indenture

11  securing the bonds under which the same may be issued; and

12         (g)  Any other or additional agreements with the

13  holders of the bonds which the board may deem desirable and

14  proper.

15         (4)  The board may enter into any deeds or trusts,

16  indentures, or other agreements with any bank or trust company

17  within or without the state, as security for such bonds and

18  may, under such agreements, assign and pledge all or any of

19  the revenues, rates, rentals, fees, or other charges or

20  receipts of the district.  Such deeds of trust, indentures, or

21  other agreements, may contain such provisions as is customary

22  in such instruments as the board may authorize, including, but

23  without limitation, provisions as to:

24         (a)  The acquisition, construction, completion,

25  improvements, operation, extension, maintenance, repair, and

26  lease of the gas system or systems and the duties of the board

27  and others with reference thereto;

28         (b)  The application of funds and the safeguarding of

29  funds on hand or on deposit;

30         (c)  The rights and remedies of the trustees and the

31  holders of bonds; and

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         (d)  The terms and provisions of the bonds or

 2  resolutions authorizing the issuance of the same.

 3         (5)  Any of the bonds issued pursuant to this act are

 4  hereby declared to be negotiable instruments and shall have

 5  all the qualities and incidents of laws of the state relating

 6  to negotiable instruments.

 7         (6)  The bonds of the district and all matters

 8  connected therewith may be validated pursuant to the

 9  provisions of chapter 75, Florida Statutes, 1957, as in the

10  case of a district located in more than one county.

11         (7)  The bonds or any other obligations of the district

12  shall not be a debt or obligation of the State of Florida, or

13  a debt or obligation of any county, or a debt or obligation of

14  any municipality which is a member of the district.  The State

15  of Florida, any county, or any such municipality shall not be

16  liable in any way whatsoever thereon, and the holder of any

17  such bonds or obligations may not compel the levy of any taxes

18  for the payment thereof.  The board shall have no power or

19  authority to levy or collect any ad valorem tax on any

20  property within the district and any such tax or assessment

21  levy is hereby specifically prohibited.

22         (8)  No referendum or election shall be required for

23  the issuance of bonds of the district, except in such cases as

24  such referendum or election may be required by the

25  Constitution of the State of Florida.

26         Section 14.  Remedies of the bondholders.--

27         (1)  The rights and the remedies herein conferred upon

28  or granted to the bondholders shall be in addition to and not

29  in limitation of any rights and remedies lawfully granted to

30  such bondholders by the resolution or resolutions providing

31  for the issuance of bonds or by any deed or trust, indenture,

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  or other agreement under which the bonds may be issued or

 2  secured.  In the event that the district defaults in the

 3  payment of the principal of or interest on any of the bonds

 4  issued pursuant to the provisions of this act after such

 5  principal of or interest on said bonds shall have become due

 6  whether at maturity or upon call for redemption, and such

 7  default continues for a period of 30 days, or in the event

 8  that the district shall fail or refuse to comply with the

 9  provisions of this act or any agreement made with or for the

10  benefit of, the holders of the bonds, the holders of 25

11  percent in the aggregate principal amount of the bonds then

12  outstanding shall be entitled as of right, to the appointment

13  of the trustee to represent such bondholders for the purposes

14  hereof; however, such holders of 25 percent in the aggregate

15  principal amount of the bonds then outstanding shall have

16  first given notice of their intention to appoint a trustee to

17  the district.  Such notice shall be deemed to have been given

18  if given in writing, and deposited in a securely sealed

19  postpaid envelope, mailed at a regularly maintained United

20  States Post Office box or station and addressed respectively

21  to the chair of the district at the principal office of the

22  district.

23         (2)  Such trustee, and any trustee under any deed of

24  trust, indenture, or other agreement may, and upon written

25  request of the holders of 25 percent (or such other

26  percentages as may be specified in any deed of trust,

27  indenture, or other agreement aforesaid) in the principal

28  amount of the bonds then outstanding, shall, in any court of

29  competent jurisdiction, in his or her or its own name:

30         (a)  By mandamus or other suit, action, or proceeding

31  at law or in equity, enforce all rights of the bondholders,

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  including the right to require the district to fix, establish,

 2  maintain, collect, and charge rates, fees, rentals, and other

 3  charges, adequate to carry out any agreement as to, or pledge

 4  of, the revenues or receipts of the district and to require

 5  the district to carry out any other covenants and agreements

 6  with or for the benefit of the bondholders, and to perform its

 7  and their duties under this chapter.

 8         (b)  Bring suit upon the bonds.

 9         (c)  By action or suit in equity require the district

10  to account as if it were the trustee of any express trust for

11  the bondholders.

12         (d)  By action or suit in equity enjoin any acts or

13  things which may be unlawful or in violation of the rights of

14  the bondholders.

15         (3)  Any trustee when appointed as aforesaid, or acting

16  under a deed of trust, indenture, or other agreement, and

17  whether or not all bonds have been declared due and payable,

18  shall be entitled as of right to the appointment of a

19  receiver, who may enter upon and take possession of the system

20  or the facilities or any part or parts thereof, the rates,

21  fees, rentals, or other revenues, charges, or receipts from

22  which are, or may be applicable to the payment of the bonds so

23  in default, and operate and maintain the same, for and on

24  behalf of and in the name of, the district, and the

25  bondholders, and collect and receive all rates, fees, rentals,

26  and other charges or receipts or revenues arising therefrom in

27  the same manner as the district might do, and shall deposit

28  all such moneys in a separate account and apply the same in

29  such manner as the court shall direct.  In any suit, action,

30  or proceeding by the trustee, the fees, counsel fees, and

31  expenses of the trustee, and said receiver, if any, and all

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  costs and disbursements allowed by the court shall be a first

 2  charge on any rates, fees, rentals, or other charges,

 3  revenues, or receipts, derived from the system, or the

 4  facilities or services or any part or parts thereof, which

 5  said rates, fees, rentals, or other charges, revenues, or

 6  receipts shall or may be applicable to the payment of the

 7  bonds so in default.  Such trustee shall, in addition to the

 8  foregoing, have and possess all of the powers necessary or

 9  appropriate for the exercise of any functions specifically set

10  forth herein or incident to the representation of the

11  bondholders in the enforcement and protection of their rights.

12         (4)  Nothing in this section or any other section of

13  this chapter shall authorize any receiver appointed pursuant

14  hereto to sell, assign, mortgage, or otherwise dispose of any

15  of the assets of whatever kind and character belonging to the

16  district.  It is the intention of this chapter to limit the

17  powers of such receiver to the operation and maintenance of

18  the system, or any facility, or part or parts thereof, as the

19  court may direct, in the name and for and on behalf of the

20  district, and the bondholders, and no holder of bonds of the

21  district nor any trustee, shall ever have the right in any

22  suit, action, or proceeding at law, or in equity, to compel a

23  receiver, nor shall any receiver be authorized or any court be

24  empowered to direct the receiver to sell, assign, mortgage, or

25  otherwise dispose of any assets of whatever kind or character

26  belonging to the district.

27         Section 15.  Proceeds from the sale of bonds.--All

28  moneys derived from the sale of any bonds issued by the

29  district shall be used solely for the purpose or purposes for

30  which the same are authorized including any engineering,

31  legal, or other expenses incident thereto, and in the case of

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  bonds issued in whole or in part for the construction of a gas

 2  system or systems or any part thereof, interest on such bonds

 3  (or, if a part only of the bonds are issued for the purpose of

 4  such construction, on the part of such bonds issued for that

 5  purpose) prior to and during such construction and for not

 6  exceeding 3 years after completion of such construction and in

 7  the case of bonds issued by the district for the purpose of

 8  refunding outstanding bonds of such district, any premium

 9  which it may deem necessary to pay in order to redeem or

10  retire the bonds to be refunded.  The treasurer or other

11  officer designated by the board shall give a receipt for the

12  purchase price to the purchaser of any such bonds, which

13  receipt shall be full acquittal to such purchaser and he or

14  she shall not be under any duty to inquire as to the

15  application of the proceeds of such bonds.

16         Section 16.  Disposition of net revenues.--All net

17  revenues derived from the system, the disposition of which the

18  district shall not have covenanted or contracted to otherwise

19  dispose of, shall be paid over to the municipalities which

20  shall be members of the district in such proportions as the

21  board from time to time shall fix and determine.

22         Section 17.  Refunding bonds.--The board is hereby

23  authorized to provide by resolution for the issuance of

24  refunding bonds of the district for the purpose of refunding

25  any bonds then outstanding and issued under the provisions of

26  this chapter or any other law for the purpose of applying all

27  or a part of the cost of the system or extensions and

28  additions thereto.  The board is further authorized to provide

29  by resolution for the issuance of a single issue of bonds of

30  the district for the combined purposes of:

31         (1)  Paying the cost of any improvements, extensions,

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  and additions to the existing system or of acquiring by

 2  purchase or of constructing an additional system or systems;

 3  and

 4         (2)  Refunding bonds of the district which shall

 5  theretofore have been issued for such system and shall then be

 6  outstanding and which shall then have matured or be subject to

 7  redemption or can be acquired for retirement.  The issuance of

 8  such refunding bonds, the maturities and other details

 9  thereof, the rights of the holders, and the duties of the

10  board and of the district in respect to the same, shall be

11  governed by the foregoing provisions of this chapter insofar

12  as the same may be applicable.

13         Section 18.  Cooperation with other political

14  subdivisions, agencies, and individuals.--Express authority

15  and powers are hereby given and granted any county,

16  municipality, drainage district, road and bridge district,

17  school district, or any other political subdivision, board,

18  commission, or individual in, or of the state to make and

19  enter into with the district, contracts, leases, conveyances,

20  or other agreements within the provisions and purposes of this

21  chapter.  The district is hereby expressly authorized to make

22  and enter into contracts, leases, conveyances, and other

23  agreements with any political subdivision, agency, or

24  instrumentality of the state, any and all federal agencies,

25  corporations, and individuals for the purpose of carrying out

26  the provisions of this chapter.

27         Section 19.  Eligibility for investments and

28  security.--Any bonds or other obligations issued pursuant to

29  this chapter shall be and constitute legal investments for

30  banks, savings banks, trustees, executors, administrators, and

31  all other fiduciaries, and for all state, municipal, and other

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  public funds.

 2         Section 20.  Consent of state agencies.--It shall not

 3  be necessary for the district, in proceeding under this act,

 4  to obtain any certificates of convenience or necessity,

 5  franchise, license, permit, or other authorization from any

 6  bureau, board, commission, or other like instrumentality of

 7  the state or of Lake and Orange Counties, in order to

 8  construct, acquire, or improve such system or systems, or to

 9  exercise any of the powers granted in this act.

10         Section 21.  The body corporate hereby created shall be

11  deemed to be owned and operated by the member municipalities.

12         Section 22.  Covenants of the state.--The state hereby

13  covenants with the holders of any bonds or other obligations

14  issued pursuant to this act, and the coupons appertaining

15  thereto, that it will not in any manner limit or alter the

16  power and obligation vested by this act in the district to

17  fix, establish, and collect, in the manner provided in this

18  act, such fees, rentals, or other charges for the facilities

19  and services of such system or systems, and to revise the same

20  from time to time whenever necessary, as will always be

21  sufficient, together with any other pledged funds, to pay the

22  expenses of operation, maintenance, and repair of such system

23  or systems, and to comply fully with and fulfill the terms of

24  all agreements and covenants made by the district with holders

25  of such bonds or other obligations, until all such bonds or

26  other obligations, together with all interest accrued or to

27  accrue thereon, and all costs or expenses in connection with

28  any action or proceedings by or on behalf of the holders of

29  such bonds or other obligations are fully paid and discharged,

30  or adequate provisions made for the payment or discharge

31  thereof.

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         Section 23.  Use of public roads.--The district shall

 2  not be authorized to use the right-of-way of any public roads,

 3  whether state, county, or municipal, without first securing

 4  the prior approval of the governmental agency having

 5  jurisdiction thereof.

 6         Section 24.  If any rates, fees, or charges for the

 7  services and facilities furnished by any gas system or systems

 8  constructed or reconstructed by the district under the

 9  provisions of this act shall not be paid when due, the

10  district may discontinue and shut off the supply of the

11  services and facilities of the system to the customer so

12  supplied with such services or facilities until such fees,

13  rentals, or other charges, including the interest, penalties,

14  and charges for the shutting off and discontinuance or the

15  restoration of such services or facilities are fully paid, and

16  for such purposes may enter on any lands, waters, and premises

17  of such delinquent customers, within or without the boundaries

18  of the district.  Such delinquent fees, rentals, or other

19  charges, together with interest, penalties, and charges for

20  the shutting off and discontinuance or the restoration of such

21  services or facilities, and reasonable attorney's fees and

22  other expense may be recovered by the district by suit in a

23  court of competent jurisdiction.  The district may also

24  enforce payment of such delinquent fees, rentals, or other

25  charges by any other lawful means of enforcement.

26         Section 3.  Except as specifically reenacted herein,

27  chapter 59-556, Laws of Florida, 1959, and chapter 74-553,

28  Laws of Florida, 1974, are repealed.

29         Section 4.  The contracts and obligations heretofore

30  made and incurred and other actions heretofore taken by the

31  Lake Apopka Natural Gas District shall not be impaired or

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1  otherwise affected by enactment of this codification of the

 2  special acts referred to in Section 2, hereof, or by the

 3  repeal of those special acts provided for therein.

 4         Section 5.  In the event any section or provision of

 5  this act is determined to be invalid or unenforceable, such

 6  determination shall not affect the validity of or

 7  enforceability of each other section and provision of this

 8  act.

 9         Section 6.  In the event of a conflict of the

10  provisions of this act with the provisions of any other act

11  the provisions of this act shall control to the extent of such

12  conflict.

13         Section 7.  This act shall take effect immediately upon

14  becoming a law.

15

16

17  ================ T I T L E   A M E N D M E N T ===============

18  And the title is amended as follows:

19         On page 1, lines 2 through page 3, line 18,

20  remove from the title of the bill:  all of said lines

21

22  and insert in lieu thereof:

23         An act relating to the Lake Apopka Natural Gas

24         District as created in portions of Orange and

25         Lake Counties; codifying the district's

26         charter, chapter 59-556, Laws of Florida, 1959,

27         as amended; providing that chapter 59-556, Laws

28         of Florida, 1959, and chapter 74-553, Laws of

29         Florida, 1974, be codified, reenacted, amended,

30         and repealed by this act; providing for a

31         codified charter consolidating all special acts

                                  22

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         pertaining to Lake Apopka Natural Gas District

 2         into a single act and the re-creation of Lake

 3         Apopka Natural Gas District, an independent

 4         special district, for the purposes of

 5         acquiring, constructing, owning, operating,

 6         managing, maintaining, extending, improving,

 7         and financing one or more gas distribution

 8         systems, or one or more gas transmission

 9         systems, or gas transmission and distribution

10         systems, for the use and benefit of its member

11         municipalities of Apopka, Winter Garden, and

12         Clermont, and for the benefit of the public and

13         other users of gas in the district including

14         such other municipalities to which the district

15         may sell gas; authorizing counties,

16         municipalities, and districts to enter into

17         franchise agreements with the district;

18         providing for a board of commissioners, and the

19         governing body of the district to exercise the

20         powers of the district and direct its affairs;

21         providing officers for the district,

22         authorizing the district to issue and sell

23         revenue bonds payable solely from the revenues

24         of its gas system or systems; authorizing and

25         providing for the judicial validation of such

26         bonds; providing for the adoption of

27         resolutions or the execution and delivery by

28         the district of other instruments of security

29         for the benefit of the holders of such bonds;

30         providing for the remedies and rights available

31         to the holders of the bonds or certificates;

                                  23

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         prohibiting the district from any exercise of

 2         the power of taxation; providing that the bonds

 3         of the district and the interest thereon shall

 4         be tax exempt; providing that the resolutions,

 5         deeds, trust indentures and other instruments

 6         of, by, or to the district shall be tax exempt;

 7         providing for the use and utilization and

 8         distribution of the revenues of the gas systems

 9         of the district, regulating the use of the

10         proceeds from the sale of any such bonds or

11         proceeds from the sale of any such bonds or

12         certificates, making such bonds or certificates

13         legal investments for banks, trust companies,

14         fiduciaries and public agencies and bodies;

15         providing for the use of the public roads by

16         the district; providing a covenant by the State

17         of Florida not to alter the provisions of the

18         act to the detriment of the holders of bonds or

19         certificates of the district and making

20         provisions with respect to the acquisition,

21         construction, maintenance, operation, financing

22         and refinancing of the gas system or systems by

23         the district; authorizing the district to issue

24         and sell refunding bonds, and providing for the

25         collection of the fees, rentals or other

26         charges for the services of the gas system;

27         authorizing the district to require customers,

28         as a condition of receiving goods and services

29         from the district, to make a cash deposit to

30         assure payment for charges made by the district

31         for such goods and services and to accept

                                  24

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1423

    Amendment No. 01 (for drafter's use only)





 1         surety bonds, letters of credit, and other

 2         forms of financial guaranty in lieu of such

 3         cash deposits; to provide that the contracts

 4         and obligations heretofore entered into or

 5         incurred and the actions heretofore taken by

 6         Lake Apopka Natural Gas District shall not be

 7         impaired or otherwise affected by this

 8         re-enactment and codification of its enabling

 9         legislation; providing an effective date.

10

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