House Bill hb1343e2

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                                      CS/HB 1343, Second Engrossed



  1                      A bill to be entitled

  2         An act relating to the Small County Technical

  3         Assistance Program; amending s. 163.01, F.S.;

  4         revising language with respect to the Florida

  5         Interlocal Cooperation Act of 1969; amending s.

  6         163.05, F.S.; revising legislative findings;

  7         providing criteria for contracts between the

  8         Commissioner of Agriculture and program

  9         providers; deleting responsibilities of the

10         Comptroller and the Legislative Committee on

11         Intergovernmental Relations; authorizing the

12         Commissioner of Agriculture to award contracts

13         to provide assistance to small counties;

14         requiring the Commissioner of Agriculture to

15         provide fiscal oversight and performance

16         reviews; amending s. 336.025, F.S.; providing

17         for certain municipalities within small

18         counties to use gas tax revenues for certain

19         infrastructure projects; providing an

20         appropriation; providing an effective date.

21

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

23

24         Section 1.  Paragraph (g) of subsection (7) of section

25  163.01, Florida Statutes, is amended to read:

26         163.01  Florida Interlocal Cooperation Act of 1969.--

27         (7)

28         (g)1.  Notwithstanding any other provisions of this

29  section, any separate legal entity created under this section,

30  the membership of which is limited to municipalities and

31  counties of the state, may acquire, own, construct, improve,


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                                      CS/HB 1343, Second Engrossed



  1  operate, and manage public facilities , or finance facilities

  2  on behalf of any person, relating to a governmental function

  3  or purpose, including, but not limited to, wastewater

  4  facilities, water or alternative water supply facilities, and

  5  water reuse facilities, which may serve populations within but

  6  not or outside of the members of the entity unless the

  7  governing body of the county or municipality where the

  8  population to be served is located grants the entity

  9  permission to provide service within the boundaries of that

10  county or municipality and the county in which the facilities

11  are located assumes rate-setting jurisdiction over the

12  facilities or delegates such jurisdiction to the Florida

13  Public Service Commission, except for regional water supply

14  authorities created pursuant to s. 373.1963, and the sale or

15  resale of bulk supplies of water or the sale or resale of

16  wastewater services pursuant to s. 367.022.  Notwithstanding

17  s. 367.171(7), except as provided in this paragraph, any

18  separate legal entity created under this paragraph is not

19  subject to commission jurisdiction and may not provide utility

20  services within the service area of an existing utility system

21  unless it has received the consent of the utility. The entity

22  may finance or refinance the acquisition, construction,

23  expansion, and improvement of such facilities relating to a

24  governmental function or purpose the public facility through

25  the issuance of its bonds, notes, or other obligations under

26  this section or as otherwise authorized by law. The entity has

27  all the powers provided by the interlocal agreement under

28  which it is created or which are necessary to finance, own,

29  operate, or manage the public facility, including, without

30  limitation, the power to establish rates, charges, and fees

31  for products or services provided by it, the power to levy


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                                      CS/HB 1343, Second Engrossed



  1  special assessments, the power to sell or finance all or a

  2  portion of such its facility, and the power to contract with a

  3  public or private entity to manage and operate such its

  4  facilities or to provide or receive facilities, services, or

  5  products. Except as may be limited by the interlocal agreement

  6  under which the entity is created, all of the privileges,

  7  benefits, powers, and terms of s. 125.01, relating to

  8  counties, and s. 166.021, relating to municipalities, are

  9  fully applicable to the entity. However, neither the entity

10  nor any of its members on behalf of the entity may exercise

11  the power of eminent domain over the facilities or property of

12  any existing water or wastewater plant utility system, nor may

13  the entity acquire title to any water or wastewater plant

14  utility facilities, other facilities, or property which was

15  acquired by the use of eminent domain after the effective date

16  of this act. Bonds, notes, and other obligations issued by the

17  entity are issued on behalf of the public agencies that are

18  members of the entity.

19         2.  Any entity created under this section may also

20  issue bond anticipation notes in connection with the

21  authorization, issuance, and sale of bonds. The bonds may be

22  issued as serial bonds or as term bonds or both. Any entity

23  may issue capital appreciation bonds or variable rate bonds.

24  Any bonds, notes, or other obligations must be authorized by

25  resolution of the governing body of the entity and bear the

26  date or dates; mature at the time or times, not exceeding 40

27  years from their respective dates; bear interest at the rate

28  or rates; be payable at the time or times; be in the

29  denomination; be in the form; carry the registration

30  privileges; be executed in the manner; be payable from the

31  sources and in the medium or payment and at the place; and be


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                                      CS/HB 1343, Second Engrossed



  1  subject to the terms of redemption, including redemption prior

  2  to maturity, as the resolution may provide. If any officer

  3  whose signature, or a facsimile of whose signature, appears on

  4  any bonds, notes, or other obligations ceases to be an officer

  5  before the delivery of the bonds, notes, or other obligations,

  6  the signature or facsimile is valid and sufficient for all

  7  purposes as if he or she had remained in office until the

  8  delivery. The bonds, notes, or other obligations may be sold

  9  at public or private sale for such price as the governing body

10  of the entity shall determine. Pending preparation of the

11  definitive bonds, the entity may issue interim certificates,

12  which shall be exchanged for the definitive bonds. The bonds

13  may be secured by a form of credit enhancement, if any, as the

14  entity deems appropriate. The bonds may be secured by an

15  indenture of trust or trust agreement. In addition, the

16  governing body of the legal entity may delegate, to an

17  officer, official, or agent of the legal entity as the

18  governing body of the legal entity may select, the power to

19  determine the time; manner of sale, public or private;

20  maturities; rate of interest, which may be fixed or may vary

21  at the time and in accordance with a specified formula or

22  method of determination; and other terms and conditions as may

23  be deemed appropriate by the officer, official, or agent so

24  designated by the governing body of the legal entity. However,

25  the amount and maturity of the bonds, notes, or other

26  obligations and the interest rate of the bonds, notes, or

27  other obligations must be within the limits prescribed by the

28  governing body of the legal entity and its resolution

29  delegating to an officer, official, or agent the power to

30  authorize the issuance and sale of the bonds, notes, or other

31  obligations.


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                                      CS/HB 1343, Second Engrossed



  1         3.  Bonds, notes, or other obligations issued under

  2  subparagraph 1. may be validated as provided in chapter 75.

  3  The complaint in any action to validate the bonds, notes, or

  4  other obligations must be filed only in the Circuit Court for

  5  Leon County. The notice required to be published by s. 75.06

  6  must be published in Leon County and in each county that is a

  7  member of the entity issuing the bonds, notes, or other

  8  obligations, or in which a member of the entity is located,

  9  and the complaint and order of the circuit court must be

10  served only on the State Attorney of the Second Judicial

11  Circuit and on the state attorney of each circuit in each

12  county that is a member of the entity issuing the bonds,

13  notes, or other obligations or in which a member of the entity

14  is located. Section 75.04(2) does not apply to a complaint for

15  validation brought by the legal entity. The bonds of an entity

16  created pursuant to this section subsequent to the effective

17  date of this provision to finance facilities on behalf of any

18  person other than the entity created pursuant to this section

19  shall also be validated, as provided in chapter 75, in the

20  circuit court in each county in which a facility financed by

21  such bonds may be located.

22         4.  The accomplishment of the authorized purposes of a

23  legal entity created under this paragraph is in all respects

24  for the benefit of the people of the state, for the increase

25  of their commerce and prosperity, and for the improvement of

26  their health and living conditions. Since the legal entity

27  will perform essential governmental functions in accomplishing

28  its purposes, the legal entity is not required to pay any

29  taxes or assessments of any kind whatsoever upon any property

30  acquired or used by it for such purposes or upon any revenues

31  at any time received by it. The bonds, notes, and other


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                                      CS/HB 1343, Second Engrossed



  1  obligations of an entity, their transfer and the income

  2  therefrom, including any profits made on the sale thereof, are

  3  at all times free from taxation of any kind by the state or by

  4  any political subdivision or other agency or instrumentality

  5  thereof. The exemption granted in this subparagraph is not

  6  applicable to any tax imposed by chapter 220 on interest,

  7  income, or profits on debt obligations owned by corporations.

  8         Section 2.  Paragraphs (a) and (c) of subsection (1)

  9  and subsections (4), (5), (6), (7), (8), and (9) of section

10  163.05, Florida Statutes, are amended to read:

11         163.05  Small County Technical Assistance Program.--

12         (1)  Among small counties, the Legislature finds that:

13         (a)  The percentage of the population of small counties

14  residing in the unincorporated areas is relatively high based

15  on the United States Decennial Census of 2000 and increased

16  substantially between 1980 and 1990.

17         (c)  Fiscal shortfalls persist even though 12 13 of the

18  small counties levied the maximum ad valorem millage

19  authorized in their jurisdictions in 2001 1990 and an

20  additional 15 13 small counties levied between 8 and 10 mills.

21         (4)  The Commissioner of Agriculture Comptroller shall

22  enter into contracts with program providers who shall:

23         (a)  Be a foundation that meets the requirements for

24  nonprofit status under s. 501(c)(3) of the Internal Revenue

25  Code with a governing board which includes in its membership

26  county commissioners and professional staff of the county

27  public agency or private, nonprofit corporation, association,

28  or entity.

29         (b)  Have substantial and documented experience working

30  closely with county governments in providing both educational

31  and technical assistance.


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                                      CS/HB 1343, Second Engrossed



  1         (c)(b)  Use existing resources, services, and

  2  information that are available from state or local agencies,

  3  universities, or the private sector.

  4         (d)(c)  Seek and accept funding from any public or

  5  private source.

  6         (d)  Annually submit information to assist the

  7  Legislative Committee on Intergovernmental Relations in

  8  preparing a performance review that will include an analysis

  9  of the effectiveness of the program.

10         (e)  Assist small counties in developing alternative

11  revenue sources.

12         (f)  Provide assistance to small counties in the areas

13  such as of financial management, accounting, investing,

14  purchasing, planning and budgeting, debt issuance, public

15  management, management systems, computers and information

16  technology, economic and community development, and public

17  safety management.

18         (g)  Provide for an annual independent financial audit

19  of the program.

20         (h)  In each county served, conduct a needs assessment

21  upon which the assistance provided for that county will be

22  designed.

23         (5)(a)  The Commissioner of Agriculture Comptroller

24  shall issue a request for proposals to provide assistance to

25  small counties. The request for proposals shall be required no

26  more frequently than every third year beginning with fiscal

27  year 2004-2005. All contracts in existence on the effective

28  date of this act between the Comptroller and any other party

29  with respect to the Small County Technical Assistance Program

30  may be accepted by the Commissioner of Agriculture as the

31  party in interest and said contracts shall remain in full


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                                      CS/HB 1343, Second Engrossed



  1  force and effect according to their terms. At the request of

  2  the Comptroller, the Legislative Committee on

  3  Intergovernmental Relations shall assist in the preparation of

  4  the request for proposals.

  5         (b)  The Commissioner of Agriculture Comptroller shall

  6  review each contract proposal submitted.

  7         (c)  The Legislative Committee on Intergovernmental

  8  Relations shall review each contract proposal and submit to

  9  the Comptroller, in writing, advisory comments and

10  recommendations, citing with specificity the reasons for its

11  recommendations.

12         (c)(d)  The Commissioner of Agriculture Comptroller and

13  the council shall consider the following factors in reviewing

14  contract proposals:

15         1.  The demonstrated capacity of the provider to

16  conduct needs assessments and implement the program as

17  proposed.

18         2.  The number of small counties to be served under the

19  proposal.

20         3.  The cost of the program as specified in a proposed

21  budget.

22         4.  The short-term and long-term benefits of the

23  assistance to small counties.

24         5.  The form and extent to which existing resources,

25  services, and information that are available from state and

26  local agencies, universities, and the private sector will be

27  used by the provider under the contract.

28         (6)  A decision of the Commissioner of Agriculture

29  Comptroller to award a contract under this section is final

30  and shall be in writing with a copy provided to the

31  Legislative Committee on Intergovernmental Relations.


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                                      CS/HB 1343, Second Engrossed



  1         (7)  The Comptroller may enter into contracts and

  2  agreements with other state and local agencies and with any

  3  person, association, corporation, or entity other than the

  4  program providers, for the purpose of administering this

  5  section.

  6         (7)(8)  The Commissioner of Agriculture Comptroller

  7  shall provide fiscal oversight to ensure that funds expended

  8  for the program are used in accordance with the contracts

  9  entered into pursuant to subsection (4) and shall conduct a

10  performance review of the program as may be necessary to

11  ensure that the goals and objectives of the program are being

12  met.

13         (9)  The Legislative Committee on Intergovernmental

14  Relations shall annually conduct a performance review of the

15  program. The findings of the review shall be presented in a

16  report submitted to the Governor, the President of the Senate,

17  the Speaker of the House of Representatives, and the

18  Comptroller by January 15 of each year.

19         Section 3.  Subsection (8) of section 336.025, Florida

20  Statutes, is amended to read:

21         336.025  County transportation system; levy of local

22  option fuel tax on motor fuel and diesel fuel.--

23         (8)  In addition to the uses specified in subsection

24  (7), the governing body of a county with a population of

25  50,000 or less on April 1, 1992, or a municipality within such

26  county, may use the proceeds of the tax levied pursuant to

27  paragraph (1)(a) in any fiscal year to fund infrastructure

28  projects, if such projects are consistent with the local

29  government's approved comprehensive plan or, if the approval

30  or denial of the plan has not become final, consistent with

31  the plan last submitted to the state land planning agency. In


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                                      CS/HB 1343, Second Engrossed



  1  addition, no more than an amount equal to the proceeds from 4

  2  cents per gallon of the tax imposed pursuant to paragraph

  3  (1)(a) may be used by such county for the express and limited

  4  purpose of paying for a court-ordered refund of special

  5  assessments. Except as provided in subsection (7), such funds

  6  shall not be used for the operational expenses of any

  7  infrastructure.  Such funds may be used for infrastructure

  8  projects under this subsection only after the local

  9  government, prior to the fiscal year in which the funds are

10  proposed to be used, or if pledged for bonded indebtedness,

11  prior to the fiscal year in which the bonds will be issued,

12  has held a duly noticed public hearing on the proposed use of

13  the funds and has adopted a resolution certifying that the

14  local government has met all of the transportation needs

15  identified in its approved comprehensive plan or, if the

16  approval or denial of the plan has not become final,

17  consistent with the plan last submitted to the state land

18  planning agency.  The proceeds shall not be pledged for bonded

19  indebtedness for a period exceeding 10 years, except that, for

20  the express and limited purpose of using such proceeds in any

21  fiscal year to pay a court-ordered refund of special

22  assessments, the proceeds may be pledged for bonded

23  indebtedness not exceeding 15 years.  For the purposes of this

24  subsection, "infrastructure" has the same meaning as provided

25  in s. 212.055.

26         Section 4.  Specific Appropriation 2252 in the

27  2002-2003 General Appropriations Act is hereby repealed and an

28  identical amount is hereby appropriated to the Department of

29  Agriculture and Consumer Services from the General Revenue

30  Fund for the purposes of this act.

31         Section 5.  This act shall take effect June 30, 2002.


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