House Bill hb1745

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    Florida House of Representatives - 2001                HB 1745

        By the Fiscal Responsibility Council and Representative
    Johnson





  1                      A bill to be entitled

  2         An act relating to water and wastewater

  3         utilities; amending s. 367.021, F.S.; revising

  4         definitions; amending s. 367.022, F.S.;

  5         revising an exemption from regulation for small

  6         water and wastewater utilities; amending ss.

  7         367.045 and 367.111, F.S.; deleting requirement

  8         for descriptions of service areas in water and

  9         wastewater utility certificates of

10         authorization; deleting requirements relating

11         to application for amended certificates of

12         authorization to reduce or extend a utility's

13         existing service area; amending s. 367.121,

14         F.S.; providing authority of the Public Service

15         Commission to resolve territorial disputes

16         involving water and wastewater utilities;

17         providing considerations; amending s. 367.171,

18         F.S.; authorizing counties to set rates and

19         charges for certain exempt small water and

20         wastewater utilities; providing applicability

21         of specified administrative procedures;

22         amending s. 288.0655, F.S.; correcting a cross

23         reference; providing an effective date.

24

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

26

27         Section 1.  Subsections (1) and (10) of section

28  367.021, Florida Statutes, are amended to read:

29         367.021  Definitions.--As used in this chapter, the

30  following words or terms shall have the meanings indicated:

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  1         (1)  "Certificate of authorization" means a document

  2  issued by the commission authorizing a utility to provide

  3  service in a specific service area.

  4         (10)  "Service area" means the geographical area

  5  described in a certificate of authorization, which may be

  6  within or without the boundaries of an incorporated

  7  municipality and may include areas in more than one county.

  8         Section 2.  Subsection (6) of section 367.022, Florida

  9  Statutes, is amended to read:

10         367.022  Exemptions.--The following are not subject to

11  regulation by the commission as a utility nor are they subject

12  to the provisions of this chapter, except as expressly

13  provided:

14         (6)  Systems with the capacity or proposed capacity to

15  serve 500 100 or fewer persons.

16         Section 3.  Section 367.045, Florida Statutes, is

17  amended to read:

18         367.045  Certificate of authorization; application and

19  amendment procedures.--

20         (1)  When a utility applies for an initial certificate

21  of authorization from the commission, it shall:

22         (a)  Provide notice of the actual application filed by

23  mail or personal delivery to the governing body of the county

24  or city affected, to the Public Counsel, to the commission,

25  and to such other persons and in such other manner as may be

26  prescribed by commission rule;

27         (b)  Provide all information required by rule or order

28  of the commission, which information may include a detailed

29  inquiry into the ability of the applicant to provide service,

30  the area and facilities involved, the need for service in the

31  area involved, and the existence or nonexistence of service

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  1  from other sources within geographical proximity to the area

  2  in which the applicant seeks to provide service;

  3         (c)  File with the commission schedules showing all

  4  rates, classifications, and charges for service of every kind

  5  proposed by it and all rules, regulations, and contracts

  6  relating thereto;

  7         (d)  File the application fee required by s. 367.145;

  8  and

  9         (e)  Submit an affidavit that the applicant has

10  provided notice of its actual application pursuant to this

11  section.

12         (2)  A utility may not delete or extend its service

13  outside the area described in its certificate of authorization

14  until it has obtained an amended certificate of authorization

15  from the commission.  When a utility applies for an amended

16  certificate of authorization from the commission, it shall:

17         (a)  Provide notice of the actual application filed by

18  mail or personal delivery to the governing body of the county

19  or municipality affected, to the Public Counsel, to the

20  commission, and to such other persons and in such other manner

21  as may be prescribed by commission rule;

22         (b)  Provide all information required by rule or order

23  of the commission, which information may include a detailed

24  inquiry into the ability or inability of the applicant to

25  provide service, the need or lack of need for service in the

26  area that the applicant seeks to delete or add; the existence

27  or nonexistence of service from other sources within

28  geographical proximity to the area that the applicant seeks to

29  delete or add, and a description of the area sought to be

30  deleted or added to the area described in the applicant's

31  current certificate of authorization;

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  1         (c)  Provide a reference to the number of the most

  2  recent order of the commission establishing or amending the

  3  applicant's rates and charges;

  4         (d)  Submit an affidavit that the utility has tariffs

  5  and annual reports on file with the commission;

  6         (e)  File the application fee required by s. 367.145;

  7  and

  8         (f)  Submit an affidavit that the applicant has

  9  provided notice of its actual application pursuant to this

10  section.

11         (2)(3)  If, within 30 days after the last day that

12  notice was mailed or published by the applicant, whichever is

13  later, the commission does not receive written objection to

14  the notice, the commission may dispose of the application

15  without hearing.  If the applicant is dissatisfied with the

16  disposition, it may bring a proceeding under ss. 120.569 and

17  120.57.

18         (3)(4)  If, within 30 days after the last day that

19  notice was mailed or published by the applicant, whichever is

20  later, the commission receives from the Public Counsel, a

21  governmental authority, or a utility or consumer who would be

22  substantially affected by the requested certification or

23  amendment a written objection requesting a proceeding pursuant

24  to ss. 120.569 and 120.57, the commission shall order such

25  proceeding conducted in or near the area for which application

26  is made, if feasible.  Notwithstanding the ability to object

27  on any other ground, a county or municipality has standing to

28  object on the ground that the issuance or amendment of the

29  certificate of authorization violates established local

30  comprehensive plans developed pursuant to ss.

31  163.3161-163.3211.  If a consumer, utility, or governmental

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  1  authority or the Public Counsel requests a public hearing on

  2  the application, such hearing must, if feasible, be held in or

  3  near the area for which application is made; and the

  4  transcript of such hearing and any material submitted at or

  5  before the hearing must be considered as part of the record of

  6  the application and any proceeding related thereto.

  7         (4)(5)(a)  The commission may grant or amend a

  8  certificate of authorization, in whole or in part or with

  9  modifications if it determines its in the public interest, but

10  may not grant authority greater than that requested in the

11  application or amendment thereto and noticed under this

12  section; or it may deny a certificate of authorization or an

13  amendment to a certificate of authorization, if in the public

14  interest.  The commission may deny an application for a

15  certificate of authorization for any new Class C wastewater

16  system, as defined by commission rule, if the public can be

17  adequately served by modifying or extending a current

18  wastewater system.  The commission may not grant a certificate

19  of authorization for a proposed system, or an amendment to a

20  certificate of authorization for the extension of an existing

21  system, which will be in competition with, or a duplication

22  of, any other system or portion of a system, unless it first

23  determines that such other system or portion thereof is

24  inadequate to meet the reasonable needs of the public or that

25  the person operating the system is unable, refuses, or

26  neglects to provide reasonably adequate service.

27         (b)  When granting or amending a certificate of

28  authorization, the commission need not consider whether the

29  issuance or amendment of the certificate of authorization is

30  inconsistent with the local comprehensive plan of a county or

31  municipality unless a timely objection to the notice required

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  1  by this section has been made by an appropriate motion or

  2  application. If such an objection has been timely made, the

  3  commission shall consider, but is not bound by, the local

  4  comprehensive plan of the county or municipality.

  5         (5)(6)  The revocation, suspension, or transfer, or

  6  amendment of a certificate of authorization is subject to the

  7  provisions of this section. The commission shall give 30 days'

  8  notice before it initiates any such action.

  9         Section 4.  Subsection (1) of section 367.111, Florida

10  Statutes, is amended to read:

11         367.111  Service.--

12         (1)  Each utility shall provide service to its

13  customers the area described in its certificate of

14  authorization within a reasonable time.  If the commission

15  finds that any utility has failed to provide service to any

16  person reasonably entitled thereto, the commission or finds

17  that extension of service to any such person could be

18  accomplished only at an unreasonable cost and that addition of

19  the deleted area to that of another utility company is

20  economical and feasible, it may amend the certificate of

21  authorization to delete the area not served or not properly

22  served by the utility, or it may rescind the certificate of

23  authorization.  If utility service has not been provided to

24  any part of the area which a utility is authorized to serve,

25  whether or not there has been a demand for such service,

26  within 5 years after the date of authorization for service to

27  such part, such authorization may be reviewed and amended or

28  revoked by the commission.

29         Section 5.  Paragraph (d) of subsection (1) of section

30  367.121, Florida Statutes, is amended, and paragraph (l) is

31  added to said subsection, to read:

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  1         367.121  Powers of commission.--

  2         (1)  In the exercise of its jurisdiction, the

  3  commission shall have power:

  4         (d)  To require repairs, improvements, additions, and

  5  extensions to any facility, or to require the construction of

  6  a new facility, if reasonably necessary to provide adequate

  7  and proper service to any person entitled to service or if

  8  reasonably necessary to provide any prescribed quality of

  9  service, except that no utility shall be required to extend

10  its service outside the geographic area described in its

11  certificate of authorization, or make additions to its plant

12  or equipment to serve outside such area, unless the commission

13  first finds that the utility is financially able to make such

14  additional investment without impairing its capacity to serve

15  its existing customers.

16         (l)  To resolve, upon petition of a utility subject to

17  commission regulation or on its own motion, any territorial

18  dispute involving the service area for regulated water and

19  wastewater utilities. In resolving territorial disputes, the

20  commission may consider, but not be limited to consideration

21  of, the ability of the utilities to expand services within

22  their own capabilities and the nature of the area involved,

23  the ability to provide service, the need or lack of need for

24  service, and the existence or nonexistence of service from

25  other sources within geographical proximity to the area in

26  dispute.

27         Section 6.  Paragraphs (a) and (b) of subsection (2)

28  and paragraph (b) of subsection (4) of section 367.171,

29  Florida Statutes, are amended, and subsection (9) is added to

30  said section, to read:

31         367.171  Effectiveness of this chapter.--

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  1         22)(a)  Within 30 days after this chapter becomes

  2  applicable to a county, each utility shall register by filing

  3  with the commission a written statement setting forth the full

  4  legal name of the utility and, its mailing address, and a

  5  brief description of its service area.

  6         (b)  On the day this chapter becomes applicable to any

  7  county, any utility engaged in the operation or construction

  8  of a system shall be entitled to receive a certificate for the

  9  area served by such utility on the day this chapter becomes

10  applicable to it.  Within 90 days after the day this chapter

11  becomes applicable to it, the utility shall make application

12  for a certificate by filing with the commission:

13         1.  A map of its existing system or system under

14  construction; and

15         2.  A description of the area served by the system; and

16         2.3.  A tariff listing all rates and charges and such

17  other financial information as may be required by the

18  commission.

19

20  Such application shall be accompanied by a fee as provided by

21  s. 367.145. If a utility fails to register with the commission

22  within the prescribed time, the commission may require that

23  the utility apply for an original certificate of authorization

24  in accordance with s. 367.045.

25         (4)  As of the day a utility is no longer regulated by

26  the commission under this chapter, each such utility which is

27  engaged in the operation or construction of a system shall be

28  entitled to receive from the county in which it is located and

29  operating a certificate of authorization for each area for

30  which such utility held a certificate of authorization from

31  the commission on the day the utility became subject to

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  1  regulation by the county. The utility will make application by

  2  filing with the governing body of the county:

  3         (b)  A certified copy of the certificate of

  4  authorization issued by the commission, including a legal

  5  description of the service area for which the certificate of

  6  authorization was issued;

  7         (9)  Each county, whether excluded from or subject to

  8  the provisions of this chapter, may set the rates and charges

  9  of utilities with the capacity or proposed capacity to serve

10  500 or fewer persons, except as provided in subsection (7).

11  For this purpose the county or its agency shall proceed as

12  though the county or agency were the commission. In all

13  proceedings conducted by a county or its agency under the

14  authority of this chapter, the provisions of ss. 120.569 and

15  120.57 shall apply.

16         Section 7.  Paragraph (b) of subsection (2) of section

17  288.0655, Florida Statutes, is amended to read:

18         288.0655  Rural Infrastructure Fund.--

19         (2)

20         (b)  To facilitate access of rural communities and

21  rural areas of critical economic concern as defined by the

22  Rural Economic Development Initiative to infrastructure

23  funding programs of the Federal Government, such as those

24  offered by the United States Department of Agriculture and the

25  United States Department of Commerce, the office may award

26  grants to applicants for such federal programs for up to 30

27  percent of the total infrastructure project cost. Eligible

28  projects must be related to specific job-creating

29  opportunities. Eligible uses of funds shall include

30  improvements to public infrastructure for industrial or

31  commercial sites and upgrades to or development of public

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  1  tourism infrastructure. Authorized infrastructure may include

  2  the following public or public-private partnership facilities:

  3  storm water systems; telecommunications facilities; roads or

  4  other remedies to transportation impediments; nature-based

  5  tourism facilities; or other physical requirements necessary

  6  to facilitate tourism, trade, and economic development

  7  activities in the community. Authorized infrastructure may

  8  also include publicly owned self-powered nature-based tourism

  9  facilities and additions to the distribution facilities of the

10  existing natural gas utility as defined in s. 366.04(3)(c),

11  the existing electric utility as defined in s. 366.02, or the

12  existing water or wastewater utility as defined in s.

13  367.021(11)(12), or any other existing water or wastewater

14  facility, which owns a gas or electric distribution system or

15  a water or wastewater system in this state where:

16         1.  A contribution-in-aid of construction is required

17  to serve public or public-private partnership facilities under

18  the tariffs of any natural gas, electric, water, or wastewater

19  utility as defined herein; and

20         2.  Such utilities as defined herein are willing and

21  able to provide such service.

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

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  2                          HOUSE SUMMARY

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      Eliminates provisions that require a service area
  4    description in a water or wastewater utility certificate
      of authorization and require amendment to the certificate
  5    of authorization for reduction or extension of the
      service area. Provides authority of the Public Service
  6    Commission to resolve territorial disputes involving
      water and wastewater utilities. Increases from 100 to 500
  7    persons the allowable capacity or proposed capacity of a
      small water and wastewater utility exempt from commission
  8    regulation. Authorizes counties to set the rates and
      charges of such exempt small water and wastewater
  9    utilities, and provides applicability of certain
      administrative procedures.
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