House Bill hb0589e1

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                                        CS/HB 589, First Engrossed



  1                      A bill to be entitled

  2         An act relating to local government utilities

  3         assistance; providing a short title; providing

  4         legislative findings; providing definitions;

  5         establishing a pilot Local Government Utilities

  6         Assistance Program; providing for

  7         administration by the Department of

  8         Environmental Protection; providing for

  9         criteria for acquiring certain private

10         water-wastewater utilities; requiring the

11         Department of Environmental Protection to

12         submit a report on the pilot program to the

13         Governor and Legislature; providing an

14         appropriation to the Department of

15         Environmental Protection to develop a model to

16         analyze infrastructure costs; providing an

17         effective date.

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

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

22  "Local Government Utilities Assistance Act."

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

24  Legislature finds that in many areas of the state the

25  condition or operation of privately owned water-wastewater

26  utility systems and facilities create a present or potential

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

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

29  establish a pilot program to assist local governments in

30  acquiring privately owned water-wastewater utilities.  It is

31  the further intent of the Legislature that the Department of


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                                        CS/HB 589, First Engrossed



  1  Environmental Protection evaluate and report to the President

  2  of the Senate and the Speaker of the House of Representatives

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

  4  address the acquisition or consolidation of publicly owned

  5  water-wastewater utilities that threaten the environment or

  6  public health.

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

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

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

10  rates in the county, or similar utility jurisdictions in

11  surrounding counties, after accounting for relative household

12  incomes or other measures of affordability and size of

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

14  rule.

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

16  Protection.

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

18  water or wastewater utility whose utility assets are privately

19  owned.

20         Section 4.  Local Government Utilities Assistance

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

22  Assistance Program is established in the department.  The

23  department may award financial assistance to a local

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

25  privately owned water-wastewater utilities. A local government

26  may qualify for financial assistance if the local government

27  documents to the department that the privately owned

28  water-wastewater utility the local government intends to

29  acquire meets the following criteria:

30         (1)  The quality of water or wastewater service

31  provided by the privately owned water-wastewater utility is


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                                        CS/HB 589, First Engrossed



  1  consistently inadequate to meet public health or water quality

  2  standards.

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

  4  cannot make the improvements necessary to alleviate the public

  5  health or water quality threats through its own resources

  6  without increasing its rates for services to an amount beyond

  7  that which is commensurate with community standards;

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

  9  utility represents a public health or water quality threat

10  that would be more effectively addressed through public

11  management or ownership, as demonstrated through a feasibility

12  determination provided by the applicant for financial

13  assistance to the department, that takes into account

14  economic, managerial, and administrative considerations; or

15         (c)  The private utility desires to sell.

16         Section 5.  Acquisition of privately owned

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

18  assistance demonstrates, based on documentation acceptable to

19  the department, that acquisition of a privately owned

20  water-wastewater utility qualifies under section 4, the

21  department may authorize financial assistance for such

22  acquisition.

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

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

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

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

27  to expand the Local Government Utilities Assistance Program to

28  address the acquisition or consolidation of publicly owned

29  water-wastewater utilities that threaten water quality or

30  public health.  The report shall recommend any statutory

31  changes necessary to implement the Local Government Utilities


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                                        CS/HB 589, First Engrossed



  1  Assistance Program and identify any rules that would be useful

  2  in implementing the program.

  3         Section 7.  The sum of $500,000 in nonrecurring revenue

  4  is appropriated from the General Revenue Fund to the

  5  Department of Environmental Protection to facilitate the

  6  development of a uniform fiscal impact analysis model to

  7  assist local governments to evaluate the cost of

  8  infrastructure to support development.

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

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