House Bill 1637

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    Florida House of Representatives - 2000                HB 1637

        By Representatives Melvin, Peaden and J. Miller






  1                      A bill to be entitled

  2         An act relating to the Okaloosa Gas District;

  3         codifying the District's charter, chapter

  4         29334, Laws of Florida, 1953, as amended;

  5         reestablishing and recreating the Okaloosa Gas

  6         District for purposes of acquiring,

  7         constructing, owning, operating, managing,

  8         maintaining, extending, improving, and

  9         financing one or more gas distribution systems

10         or one or more gas transmission systems or gas

11         transmission and gas distribution systems for

12         its member municipalities of Crestview,

13         Niceville, Valparaiso, and Fort Walton Beach

14         and such other municipalities as may become

15         members of said District; providing such

16         services for the benefit of the public and

17         other users of gas in Okaloosa County and areas

18         in Santa Rosa County and areas in Walton County

19         and other areas of service; providing and

20         prescribing the territorial limits and areas of

21         service of the District; granting powers to the

22         District, including the power of eminent

23         domain; providing the means of exercising such

24         powers; declaring the purposes of the District

25         to constitute a public purpose; defining the

26         powers of the District; providing for a Board

27         of Directors as the governing body of the

28         District to exercise the powers of the District

29         and direct District affairs; providing officers

30         for the District; authorizing the District to

31         issue and sell bonds or revenue certificates

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  1         payable solely from the revenues of a gas

  2         system or systems; authorizing judicial

  3         validation of such bonds or certificates;

  4         providing for execution and delivery by the

  5         District of mortgages, deeds of trust, and

  6         other instruments of security for the benefit

  7         of the holders of such bonds or revenue

  8         certificates; providing for remedies and rights

  9         available to the holders of the bonds or

10         revenue certificates; prohibiting distribution

11         of net profits to member municipalities;

12         prohibiting the District from exercising any

13         power of taxation; exempting property and

14         income of the District from taxation; exempting

15         District bonds or revenue certificates and

16         interest thereon from taxation; exempting

17         deeds, mortgages, trust indentures,  and other

18         instruments of, by, or to the District from

19         taxation; providing for the use and

20         distribution of the revenues of the gas systems

21         of the District; exempting the District, its

22         activities and functions, and the exercise of

23         its powers from the jurisdiction and control of

24         all state regulatory bodies and agencies;

25         regulating the use of the proceeds from the

26         sale of any such bonds or revenue certificates;

27         providing such bonds or revenue certificates as

28         legal investments for banks, trust companies,

29         fiduciaries, and public agencies and bodies;

30         providing for use of public roads by the

31         District; providing for a covenant by the state

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  1         not to alter the provisions of the act to the

  2         detriment of the holders of bonds or revenue

  3         certificates of the District; providing for

  4         acquisition, construction, maintenance,

  5         operation, financing, and refinancing of a gas

  6         system or systems by the District; providing

  7         for discontinuance of customer service for

  8         nonpayment; repealing all prior special acts of

  9         the Legislature relating to the Okaloosa County

10         Gas District; providing for protection against

11         impairment of contracts and obligations of the

12         District; providing that the act takes

13         precedence over any conflicting law to the

14         extent of the conflict; providing severability;

15         providing an effective date.

16

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

18

19         Section 1.  Chapters 29334, 1953, 31051, 1955, 63-1697,

20  and 86-468, Laws of Florida, are codified, reenacted, amended,

21  and repealed as provided in this act.

22         Section 2.  The Okaloosa Gas District is reestablished

23  and re-created as an independent special district and the

24  charter for such District is re-created and reenacted to read:

25         Section 1.  Definitions.--Whenever used in this

26  charter, unless a different meaning clearly appears from the

27  context:

28         (1)  "Gas transmission system" means a supply of

29  natural gas, whether acquired from wells or deposits or from a

30  pipeline or other source of supply and a pipeline or lines,

31  plant and system for the acquisition and the transportation,

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  1  transmission, and delivery of natural gas, or a plant for the

  2  manufacture of gas and the transportation, transmission, and

  3  delivery thereof, together with all appurtenances thereto and

  4  all property, real, personal, or mixed, used or useful in

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

  6  easements.  A gas transmission system may include facilities

  7  for making deliveries of gas to industrial and institutional

  8  users and to line tap residential and commercial users as well

  9  as to gas distribution systems.

10         (2)  "Gas distribution system" means a plant and system

11  for the distribution and sale of gas and gas services in a

12  municipality and the surrounding territory, including the sale

13  and distribution of gas to residential, commercial,

14  industrial, institutional, and other users, together with all

15  appurtenances thereto and all property, real, personal, or

16  mixed, used, or useful in connection therewith, including

17  franchises, rights-of-way, and easements.

18         (3)  "System" means a gas transmission system or

19  systems and a gas distribution system or systems, or any one

20  or more of such systems.

21         (4)  "District" means the Okaloosa Gas District,

22  created and established by this charter.

23         (5)  "Board of Directors" and "board" means the Board

24  of Directors hereinafter provided for and constituting the

25  governing body of the District.

26         (6)  "Municipality" means incorporated cities, towns,

27  and villages and other municipal corporations of this state.

28         (7)  "Member municipalities" means the municipalities

29  of Crestview, Valparaiso, Niceville, and Fort Walton Beach and

30  such other municipalities as may become members of the

31  District in the manner provided in this charter.

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  1         (8)  "Bonds" means bonds or revenue certificates or

  2  other financial obligations of the District maturing over 3

  3  years from date of issue, issued pursuant to this charter.

  4         Section 2.  Creation and establishment of the Okaloosa

  5  Gas District.--The Okaloosa Gas District is hereby created and

  6  established as an independent special district.  The public

  7  and governmental purposes of the District are to acquire by

  8  purchase or construction, one or both, and to own, finance,

  9  operate, maintain, extend, and improve one or more gas systems

10  described as follows:

11         (1)  A gas transmission system or systems to connect

12  each of the member municipalities and such other

13  municipalities in the District's area of service as the

14  District may determine to serve, with an adequate supply of

15  natural gas, at such point or points, as the District may

16  determine.

17         (2)  A gas transmission line or lines for the purpose

18  of supplying gas to any gas system even though located outside

19  of the area of service of the District.

20         (3)  A gas manufacturing plant and system.

21         (4)  Such gas distribution system or systems serving

22  such member municipalities and other municipalities as the

23  District may determine.

24         (5)  Such other facilities and lines as may be

25  necessary or desirable to serve such other customers along the

26  District's supply lines as the District may determine to serve

27  or as the District as a public agency deriving income from a

28  public utility, may be obligated to furnish service under the

29  laws of this state or the United States.

30         (6)  Such gas transmission lines, laterals, gas

31  distribution systems, and facilities to serve such customers

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  1  in the District's area of service as the District or the

  2  District's Board of Directors may determine.

  3         (7)  The District may itself own and operate gas

  4  distribution systems in the District's area of service,

  5  whether in the municipality which is a member of the District

  6  or in some other municipality or in unincorporated territory.

  7         Section 3.  Area of service.--The territorial limits

  8  and area of service of the District shall be Okaloosa County,

  9  Florida, and the following described areas in Santa Rosa

10  County, Florida, and Walton County, Florida, to-wit:

11         (1)  In Santa Rosa County, an area 20 miles wide,

12  extending from the eastern boundary of Santa Rosa County, to

13  the western boundary of said county, the center line of which

14  shall be the presently existing transmission line of the

15  District, excepting, however, from the above described area of

16  Santa Rosa County:

17         (a)  The area within the corporate limits of the Town

18  of Milton and the surrounding territory presently served by

19  the gas distribution system of said town;

20         (b)  The area adjacent to State Highway 87 (Brewton

21  Highway) from the intersection of said highway and the

22  transmission line of the District northerly along said highway

23  for a distance of 2 miles;

24         (c)  The area adjacent to the New Chumuckla Highway

25  from the intersection of said highway and State Highway 87

26  (Brewton Highway) westerly along said New Chumuckla Highway

27  for a distance of 2 miles; and

28         (d)  The area adjacent to said Highway and the

29  transmission line of the District east of Milton, in a

30  westerly direction along said Highway 90 to the corporate

31  limits of the Town of Milton.

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  1         (2)  In Walton County, the area shall be all of that

  2  portion of Walton County lying south of Highway 20 and 10

  3  miles north of Highway 20.

  4

  5  The District may acquire a supply of gas either within or

  6  without the District's territorial limits and area of service

  7  and may transport and transmit gas from the point of such

  8  acquisition to the system or systems of the District. The

  9  District may also sell and transport gas for delivery beyond

10  the territorial limits and area of service of the District and

11  acquire, finance, operate, maintain, extend, and improve gas

12  transmission lines, laterals, and facilities beyond the

13  territorial limits and area of service of the District for

14  such purposes and also for the purpose of making direct sales

15  to industrial and institutional users and to line tap

16  commercial and residential users, but the District shall not

17  acquire, construct, own, or operate any gas distribution

18  system in any area other than within the territorial limits

19  and area of service of the District as provided in this

20  section, unless authorized by special act of the Legislature

21  to do so.

22         Section 4.  Declaration of policy.--That the

23  undertakings enumerated in section 2 constitute a proper

24  public purpose for the benefit and welfare of the inhabitants

25  of the District and it is hereby found and declared that in

26  the construction, acquisition, improvement, maintenance,

27  operation, extension, and improvement of any or all of said

28  gas systems, the District will be exercising a proper

29  governmental function.

30         Section 5.  Members of the District.--The members of

31  the District shall be the municipalities of Crestview,

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  1  Niceville, Valparaiso, and Fort Walton Beach.  Other

  2  municipalities in Okaloosa County may become members of the

  3  District by filing with the Secretary of State a resolution,

  4  duly adopted by such municipality's governing body, declaring

  5  the desire and intention of such municipality to become a

  6  member of the District and the municipality's willingness to

  7  be bound in all respects by the obligations of the District

  8  and the by-laws, resolutions, and acts of the Board of

  9  Directors relating to the business and affairs of the

10  District; provided, that the filing of such resolution with

11  the Secretary of State shall not be effectual to make such

12  municipality a member of the District unless and until the

13  Board of Directors of the District shall first have adopted

14  and filed with the Secretary of State a resolution signifying

15  their willingness and desire to accept said municipality as a

16  member of the District.  Other municipalities in other

17  counties adjoining Okaloosa County may, if authorized by

18  special act of the Legislature, become members of the District

19  in the same manner.

20         Section 6.  Powers of the District.--The District shall

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

22  powers incidental to such powers or necessary to the discharge

23  of such powers:

24         (1)  To sue and be sued and to defend suits against the

25  District.

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

27  bonds and other official acts and deeds and to alter the same

28  at the District's pleasure.

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

30  purchase, gift, or lease, devise, or otherwise, real,

31  personal, and mixed property of any nature whatsoever that the

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  1  Board of Directors may deem a necessary or convenient part of,

  2  or useful in connection with, any system or systems authorized

  3  in this charter.

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

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

  6  for the sale and delivery of natural or manufactured gas.

  7         (5)  To contract with any person, firm, or corporation

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

  9  one or more of the systems of the District, including the

10  collection and distribution of the revenues from such system

11  or systems, for such period of time as the board may deem

12  advisable not exceeding 10 years and at such compensation and

13  upon such terms as may be agreed upon and approved by the

14  Board of Directors.

15         (6)  To borrow money for any authorized purpose and to

16  issue in evidence of the borrowing interest bearing bonds

17  payable solely from the revenues derived from the operation of

18  any one or more of the District's systems.

19         (7)  To pledge to the payment of the District's bonds

20  any revenues from which said bonds are made payable and to

21  mortgage, pledge, or otherwise convey as security for such

22  bonds the system or systems the revenues from which are so

23  pledged.

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

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

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

27  of such bonds, notwithstanding that such covenants may operate

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

29  charter.

30

31

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  1         (9)  To establish, by resolution, rates and charges for

  2  the District's gas and gas services and to alter such rates

  3  and charges.

  4         (10)  To collect and enforce collection of such

  5  charges.

  6         (11)  To lease, exchange, sell, convey, and otherwise

  7  dispose of the District's real, personal, or mixed property by

  8  any form of conveyance or transfer, provided that the District

  9  does not sell and convey a gas system or systems to private

10  ownership.

11         (12)  To appoint and employ officers, agents, and

12  employees, including attorneys, as the District's business may

13  require, and to fix the compensation of such persons.

14         (13)  To provide for such insurance as the District's

15  Board of Directors may deem advisable.

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

17  hereafter conferred on counties in this state.

18         Section 7.  Eminent domain.--The powers of eminent

19  domain granted in this charter and conferred upon Districts

20  incorporated under this charter shall be exercised in the same

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

22  counties in this state.

23         Section 8.  The Board of Directors.--The District shall

24  have a Board of Directors, consisting of one member of each

25  member municipality and one member appointed by the Board of

26  County Commissioners of Okaloosa County, to represent the

27  interest of the unincorporated areas and the interest of the

28  nonmember cities.  The member for each member municipality

29  shall be appointed by the governing body of such member

30  municipality and the Board of County Commissioners of Okaloosa

31  County shall appoint one member.  The member shall serve for a

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  1  term of 4 years and until his or her successor is appointed in

  2  like manner and qualified.  Appointments to fill a vacancy

  3  shall be for the unexpired term.  The representative of each

  4  municipality may, but need not be, the mayor or chief

  5  executive officer of such municipality and the member

  6  appointed by the Board of County Commissioners of Okaloosa

  7  County may, but need not be, an elected official, except and

  8  provided that no member of the Board of County Commissioners

  9  of Okaloosa County shall serve in such capacity.  The members

10  of the Board of Directors shall serve without compensation,

11  except that they shall be reimbursed for actual expenses

12  incurred in and about the performance of their duties

13  thereunder and, at the discretion of the Board of Directors,

14  they may be paid a director's fee of not exceeding $25 for

15  each directors' meeting attended by them, not exceeding one

16  meeting during each calendar month.  The appointing authority

17  may remove any member of the Board of Directors within the

18  term for which such member shall have been appointed for

19  malfeasance or misfeasance in office or other just cause after

20  giving to such member a copy of the charges against him or her

21  and an opportunity to be heard in his or her defense.

22         Section 9.  Organization of the board; officers.--After

23  appointment of the members, the members of the Board of

24  Directors of the District shall meet and organize.  At such

25  meeting, the members of the board shall choose from their

26  number a president.  They shall also choose a secretary and a

27  treasurer, who may but need not be members of the board, and

28  such other officers, agents, and employees as may appear to be

29  desirable.  One person may serve as both secretary and

30  treasurer.

31

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  1         Section 10.  Authority of the board.--The Board of

  2  Directors shall constitute the governing body of the District.

  3  The board shall exercise all the powers of the District and

  4  the board shall do all things necessary or convenient in

  5  acquiring, owning, operating, developing, extending,

  6  improving, financing, and refinancing the gas system or

  7  systems owned or to be owned by the District, including, but

  8  not limited to: the adoption and amendment of by-laws for the

  9  management and regulation of the District's affairs and the

10  enterprises in which the District is engaged; to use, with the

11  consent of any of the District's member municipalities, the

12  agent, employees, or facilities or property of such

13  municipalities and to provide for the payment of the agreed

14  proportion of the costs therefor; and to appoint officers,

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

16  compensation to provide for the execution of deeds, mortgages,

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

18  contracts, supervision contracts, and other instruments and

19  contracts of the District.  Action of the directors shall be

20  taken by resolution.  Such resolution shall be effective

21  without posting or publication.

22         Section 11.  Bonds of the District.--The bonds of the

23  District shall be authorized by resolution of the Board of

24  Directors of the District and may be issued in one or more

25  series, may bear such date or dates, mature at such time or

26  times, bear interest at such rate or rates, be in such

27  denominations, be in such form, either coupon or registered,

28  or both, be executed in such manner, be payable in such medium

29  of payment, at such place or places, either within or without

30  this state, be nonredeemable or subject to such terms of

31  redemption, with or without premium, be subject to being

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  1  declared or becoming due before the maturity date of such

  2  bonds, as such resolution or resolutions may provide.  Said

  3  bonds may be issued for money, property, labor, or services,

  4  either at public or private sale, for such price or prices,

  5  including interest costs, as determined by the Board of

  6  Directors, the determination of which shall be conclusive.

  7  Such authorizing resolution shall provide for the execution

  8  and delivery of bonds of the District by officers of the

  9  District designated in such resolution.  Coupons may be

10  executed with the facsimile signature of any officer

11  designated by the Board of Directors.  Any bonds issued by the

12  District may thereafter at any time, whether before, at, or

13  after the maturity of such bonds, and from time to time be

14  refunded by the issuance of refunding bonds, which may be sold

15  by the District at public or private sale, at such price or

16  prices as may be determined by its Board of Directors, or

17  which may be exchanged for the bonds to be refunded.  The

18  District may pay all expenses, premiums, and commissions which

19  the District's Board of Directors may deem necessary or

20  desirable in connection with any financing done by the

21  District.  All bonds issued by the District shall be construed

22  to be negotiable instruments, although payable solely from a

23  specified source, and bona fide holders of such bonds for

24  value shall be entitled to all benefits provided by the

25  negotiable instruments law of this state.  Pending the

26  preparation or execution of definitive bonds, interim

27  receipts, or certificates or temporary bonds may be delivered

28  to the purchaser or purchasers of said bonds.  Any bonds

29  issued by the District may be purchased by the District out of

30  any funds available for such purposes but such right of

31  purchase may be limited in the authorizing resolution.  All

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  1  bonds so purchased shall be canceled.  Bonds of the District

  2  and all matters connected with such bonds may be validated

  3  pursuant to the provisions of chapter 75, Florida Statutes,

  4  and any other applicable provisions of the Florida Statutes.

  5         Section 12.  Liability on bonds and other

  6  obligations.--Neither the bonds nor any other obligations of

  7  the District shall be a debt or obligation of the State of

  8  Florida, or a debt or obligation of Okaloosa County, or a debt

  9  or obligation of any municipality which is a member of the

10  District.  Neither the state nor Okaloosa County nor any such

11  municipality shall be liable in any way whatsoever on such

12  bonds or obligations, nor may the holder of any such bonds or

13  obligations compel the levy of any taxes for the payment of

14  such bonds or obligations.  Such bonds shall not be payable

15  out of any funds other than the revenues of the gas system or

16  systems of the District.  Such bonds are not subject to any

17  statutory or other limitations upon indebtedness.  Neither the

18  members of the Board of Directors nor any person executing

19  such bonds shall be liable personally on such bonds by reason

20  of the issuance of such bonds.  No referendum or election

21  shall be required for the issuance of bonds of the District,

22  except in such cases as such referendum or election may be

23  required by the Constitution of the State of Florida.

24         Section 13.  No power to tax or assess.--The District

25  shall have no power or authority to levy or collect any tax,

26  assessment, or charge other than the rates, fees, and charges

27  for selling gas and furnishing gas services as provided in

28  this charter, and any such tax or assessment levy is hereby

29  specifically prohibited.

30         Section 14.  Mortgage; deed of trust; security

31  agreements.--Any mortgage, deed of trust, or pledge agreement

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  1  made by the District for the security of any of the District's

  2  bonds or to define the rights, remedies, and privileges of the

  3  holders of such bonds and the duties of the District to such

  4  holders, may contain such agreements, obligations, covenants,

  5  and provisions as the Board of Directors may deem advisable

  6  respecting the operation and maintenance of the gas system or

  7  systems and the collection and application of the revenues

  8  subject to such mortgage, deed of trust, or pledge agreement,

  9  and respecting the rights and duties of the parties to such

10  instrument or the parties for the benefit of whom such

11  instrument is made; provided, that no such mortgage or deed of

12  trust shall be subject to the sale of the system or systems at

13  foreclosure to private ownership.  To further secure the

14  repayment of any money borrowed by the District, the District

15  may enter into a contract or contracts binding the District

16  for the proper application of the money borrowed, for the

17  continued operation and maintenance of any gas system or

18  systems owned or to be acquired or constructed by the

19  District, or any part of parts of such system or systems, for

20  the imposition and collection of reasonable rates for, and the

21  promulgation of reasonable regulations respecting any service

22  furnished from the District's gas system or systems, for the

23  disposition and application of the District's gross revenues

24  or any part of such revenues, and for any other act or series

25  of acts not inconsistent with the provisions of this charter

26  for the protection of the loan and the assurance that the

27  revenues from the District's gas system or systems will be

28  sufficient to operate such system or systems, maintain the

29  same in good repair and in good operating condition, pay all

30  reasonable insurance on such system or systems, pay the

31  principal of and interest on any bonds payable from such

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  1  revenues, and maintain such reserves and funds as may be

  2  deemed appropriate for the protection of the loan and the

  3  efficient operation of such system or systems.

  4         Section 15.  Mortgage or pledge of property or revenue

  5  not in existence; recording notice of mortgage and pledge

  6  liens.--Any mortgage or conveyance of property and any pledge

  7  of revenues to secure the bonds of the District shall be valid

  8  and binding from the time when such mortgage or conveyance is

  9  delivered or such pledge made, and the system, properties,

10  revenue, income, and moneys so mortgaged, conveyed, or pledged

11  and thereafter received by such District shall immediately be

12  subject to the lien of such mortgage, conveyance, or pledge

13  without any physical delivery of such mortgage, conveyance, or

14  pledge or further act, and the lien of any such mortgage,

15  conveyance, or pledge shall be valid and binding as against

16  all parties having claims of any kind in tort, contract, or

17  otherwise against the District, irrespective of whether such

18  parties have notice of such claims, from the time when a

19  statement thereof is filed in the county court of Okaloosa

20  County or other office where deeds and mortgages of real

21  property are recorded and in the proper public office in any

22  other county or counties where any part of the system or

23  systems or properties of the District are located.  Such

24  notice shall be sufficient if the notice states the date of

25  the resolution authorizing the issuance of the bonds, the date

26  of the bonds, the principal amount of such bonds, the maturity

27  dates of such bonds, and whether the system is one or more gas

28  transmission systems or one or more gas distribution systems

29  or both.  The county judge or other officer in charge of the

30  recording office shall file and index such notice in the

31  record of mortgages in their offices.

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  1         Section 16.  Rights and remedies of bondholders.--In

  2  addition to all other rights and all other remedies, any

  3  holder or holders of any bond or bonds of the District,

  4  including a trustee for a bondholder, shall have the right,

  5  subject to any contractual limitation binding upon such

  6  bondholder or bondholders or trustee, and subject to the prior

  7  or superior rights of others:

  8         (1)  To sue on the bonds.

  9         (2)  By mandamus or other suit, action or proceeding,

10  at law or in equity, to enforce the bondholder's rights

11  against the District and the Board of Directors, including the

12  right to require the District and such board to fix and

13  collect rates and charges adequate to carry out any agreement

14  as to, or pledge of, the revenues produced by such rates or

15  charges, and to require such District and such board to carry

16  out the other covenants and agreements with such bondholder

17  and to perform the District's and the board's duties under

18  this charter and under any mortgage, indenture of trust, or

19  contract.

20         (3)  By action or suit in equity, to require such

21  District to account as if the District were the trustee of an

22  express trust for such bondholder.

23         (4)  By action or suit in equity, to enjoin any act or

24  things which may be unlawful or a violation of the rights of

25  such bondholder.

26         (5)  By suit, action, or proceeding in any court of

27  competent jurisdiction, to obtain in the event of the default

28  by the District in the payment when due of the bondholder's

29  bond or bonds or interest thereon, which default shall have

30  continued for a period in excess of 60 days, or default in the

31  performance of any other covenants or obligations of the

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  1  District, which default shall have continued for a period of

  2  60 days after notice to cure such default, the appointment of

  3  a receiver for the gas system or systems of the District,

  4  which receiver may enter and take possession of such system or

  5  systems or any part or parts thereof, including all property,

  6  land, property rights, easements, franchises, books, records,

  7  papers, accounts, and other adjuncts of the gas system or

  8  systems of the District, and such receiver may operate and

  9  maintain such gas system or systems, fix and collect all rates

10  and charges, and receive all revenues thereafter arising

11  therefrom in the same manner as the District itself might do,

12  and shall deposit all moneys in a separate account or accounts

13  and apply the same in accordance with the obligations of such

14  District and as the court shall direct.

15         Section 17.  Proceeds from the sale of bonds.--All

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

17  District shall be used solely for the purpose or purposes for

18  which such bonds are authorized, including any engineering,

19  legal, or other expenses incident to such purposes, and, in

20  the case of bonds issued in whole or in part for the

21  construction of a gas system or systems or any part of such

22  system or systems, interest on such bonds, or, if only a part

23  of the bonds are issued for the purpose of such construction,

24  on the part of such bonds issued for that purpose, prior to

25  and during such construction and for not exceeding 2 years

26  after completion of such construction and, in the case of

27  bonds issued by the District for the purpose of refunding

28  outstanding bonds of such District, any premium which the

29  District may deem necessary to pay in order to redeem or

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

31  officer designated by the Board of Directors shall give a

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  1  receipt for the purchase price to the purchaser of any such

  2  bonds, which receipt shall be full acquittal to such purchaser

  3  and the purchaser shall not be under any duty to inquire as to

  4  the application of the proceeds of such bonds.

  5         Section 18.  Disposition of net profits of

  6  District.--No distribution of net profits shall be made to the

  7  member municipalities.

  8         Section 19.  Bonds; legal investments.--Notwithstanding

  9  any provision of any other law or laws to the contrary, all

10  bonds, including refunding bonds, issued pursuant to this

11  charter, shall constitute legal investments for savings banks,

12  banks, trust companies, executors, administrators, trustees,

13  guardians, and other fiduciaries, and for any board, body,

14  agency, or instrumentality of the State of Florida, or of any

15  county, municipality, or other political subdivision of the

16  state, and shall be and constitute securities which may be

17  deposited by banks of trust companies as security for deposits

18  of state, county, municipal, and other public funds.

19         Section 20.  Tax exemption.--All property and all

20  income of the District shall be exempt from all state, county,

21  municipal and other taxation in the State of Florida.  All

22  bonds of such District and the interest on such bonds shall be

23  exempt from all state, county, municipal, and other taxation

24  in the State of Florida.  All deeds, mortgages, indentures of

25  trust and other documents executed by or delivered to any such

26  District shall be exempt from all state, county, and municipal

27  and other taxation in the State of Florida.

28         Section 21.  Consent of state agencies.--It shall not

29  be necessary for the District, in proceeding under this

30  charter, to obtain any certificates of convenience or

31  necessity, franchise, license, permit, or other authorization

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  1  from any bureau, board, commission, or other like

  2  instrumentality of the State of Florida or Okaloosa County, in

  3  order to construct, acquire, or improve such system or systems

  4  or to exercise any of the powers granted in this charter.

  5         Section 22.  Regulation by state agencies.--Neither the

  6  rates, fees, rentals, or other charges to be established and

  7  collected for gas and services of such system or systems, when

  8  constructed, acquired, or improved as provided in this

  9  charter, nor bonds which may be issued under this charter,

10  shall be subject to approval, supervision, regulation, or

11  control of any bureau, board, commission, or other like

12  instrumentality of the state.

13         Section 23.  Covenants of the state.--That the State of

14  Florida hereby covenants with the holders of any bonds or

15  other obligations issued pursuant to this charter, and the

16  coupons appertaining to such bonds or obligations, that the

17  state will not in any manner limit or alter the power and

18  obligation vested by this charter in the District to fix,

19  establish, and collect, in the matter provided in this

20  charter, such fees, rentals, or other charges for the

21  facilities and services of such system or systems, and to

22  revise such fees, rentals or other charges from time to time

23  whenever necessary, as will always be sufficient, together

24  with any other pledged funds, to pay the expenses of

25  operation, maintenance, and repair of such system or systems,

26  the principal of and interest on all bonds or other

27  obligations issued pursuant to this charter for such system or

28  systems, and to comply fully with and fulfill the terms of all

29  agreements and covenants made by the District with holders of

30  such bonds or other obligations, until all such bonds or other

31  obligations, together with all interest accrued or to accrue

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  1  on such bonds, and all costs or expenses in connection with

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

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

  4  or adequate provision made for the payment of discharge of

  5  such bonds.

  6         Section 24.  Use of public roads.--The District is

  7  hereby authorized to use the right of way of all public roads,

  8  whether state or county, without securing the prior approval

  9  of the state or any agency or department of the state or the

10  governing body of any county.

11         Section 25.  Discontinuance of customer services.--If

12  any rates, fees, or charges for the services and facilities

13  furnished by any gas system or systems constructed or

14  reconstructed by the District under the provisions of this

15  charter shall not be paid when due, the District may

16  discontinue and shut off the supply of the services and

17  facilities of the system to the customer so supplied with such

18  services or facilities until such fees, rentals, or other

19  charges, including the interest, penalties, and charges for

20  the shutting off and discontinuance or the restoration of such

21  services or facilities are fully paid, and for such purposes

22  may enter on any lands, waters, and premises of such

23  delinquent customers, within or without the boundaries of the

24  District.  Such delinquent fees, rentals, or other charges,

25  together with interest, penalties, and charges for the

26  shutting off and discontinuance or the restoration of such

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

28  other expenses, may be recovered by the District by suit in

29  any court of competent jurisdiction.  The District may also

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

31  charges by any other lawful means of enforcement.

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  1         Section 3.  Chapter 29334, Laws of Florida, 1953,

  2  chapter 31051, Laws of Florida, 1955, chapter 63-1697, Laws of

  3  Florida, and chapter 86-468, Laws of Florida, are repealed.

  4         Section 4.  The contracts and obligations heretofore

  5  made and incurred and other actions heretofore taken by the

  6  Okaloosa Gas District shall not be impaired or otherwise

  7  affected by enactment of this codification of the special acts

  8  referred to in sections 1 and 3 or by the repeal of such

  9  special acts provided for in such sections.

10         Section 5.  In the event of a conflict of the

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

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

13  conflict.

14         Section 6.  In the event any section or provision of

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

16  determination shall not affect the validity of or

17  enforceability of each other section and provision of this

18  act.

19         Section 7.  This act shall take effect upon becoming a

20  law.

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