Senate Bill sb1954e1

    SB 1954                                        First Engrossed



  1                      A bill to be entitled

  2         An act relating to intergovernmental programs;

  3         amending s. 163.01, F.S.; prohibiting an entity

  4         created under the Interlocal Cooperation Act

  5         and consisting of municipalities and counties

  6         from owning and operating certain public

  7         facilities that serve populations outside the

  8         territorial limits of the entity members;

  9         providing an effective date.

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

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

14  163.01, Florida Statutes, is amended to read:

15         163.01  Florida Interlocal Cooperation Act of 1969.--

16         (7)

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

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

19  the membership of which is limited to municipalities and

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

21  operate, and manage public facilities relating to a

22  governmental function or purpose, including, but not limited

23  to, wastewater facilities, water or alternative water supply

24  facilities, and water reuse facilities, which may serve

25  populations by providing wastewater facilities, water or

26  alternative water supply facilities and water reuse facilities

27  within but not or outside the territorial limits of the

28  members of the entity. Provided, however, that facilities

29  owned prior to the effective date of this act by any separate

30  legal entity created under this paragraph shall be exempt from

31  its application. Notwithstanding s. 367.171(7), any separate


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    SB 1954                                        First Engrossed



  1  legal entity created under this paragraph is not subject to

  2  commission jurisdiction and may not provide utility services

  3  within the service area of an existing utility system unless

  4  it has received the consent of the utility. The entity may

  5  finance or refinance the acquisition, construction, expansion,

  6  and improvement of the public facility through the issuance of

  7  its bonds, notes, or other obligations under this section. The

  8  entity has all the powers provided by the interlocal agreement

  9  under which it is created or which are necessary to own,

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

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

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

13  special assessments, the power to sell all or a portion of its

14  facility, and the power to contract with a public or private

15  entity to manage and operate its facilities or to provide or

16  receive services or products. Except as may be limited by the

17  interlocal agreement under which the entity is created, all of

18  the privileges, benefits, powers, and terms of s. 125.01,

19  relating to counties, and s. 166.021, relating to

20  municipalities, are fully applicable to the entity. However,

21  neither the entity nor any of its members on behalf of the

22  entity may exercise the power of eminent domain over the

23  facilities or property of any existing water or wastewater

24  plant utility system, nor may the entity acquire title to any

25  water or wastewater plant utility facilities or property which

26  was acquired by the use of eminent domain after the effective

27  date of this act. Bonds, notes, and other obligations issued

28  by the entity are issued on behalf of the public agencies that

29  are members of the entity.

30         2.  Any entity created under this section may also

31  issue bond anticipation notes in connection with the


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    SB 1954                                        First Engrossed



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

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

  3  may issue capital appreciation bonds or variable rate bonds.

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

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

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

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

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

  9  denomination; be in the form; carry the registration

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

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

12  subject to the terms of redemption, including redemption prior

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

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

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

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

17  the signature or facsimile is valid and sufficient for all

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

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

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

21  of the entity shall determine. Pending preparation of the

22  definitive bonds, the entity may issue interim certificates,

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

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

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

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

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

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

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

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

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


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    SB 1954                                        First Engrossed



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

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

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

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

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

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

  7  other obligations must be within the limits prescribed by the

  8  governing body of the legal entity and its resolution

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

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

11  obligations.

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

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

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

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

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

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

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

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

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

21  served only on the State Attorney of the Second Judicial

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

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

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

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

26  validation brought by the legal entity.

27         4.  The accomplishment of the authorized purposes of a

28  legal entity created under this paragraph is in all respects

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

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

31  their health and living conditions. Since the legal entity


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    SB 1954                                        First Engrossed



  1  will perform essential governmental functions in accomplishing

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

  3  taxes or assessments of any kind whatsoever upon any property

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

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

  6  obligations of an entity, their transfer and the income

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

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

  9  any political subdivision or other agency or instrumentality

10  thereof. The exemption granted in this subparagraph is not

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

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

13         Section 2.  This act shall take effect upon becoming a

14  law.

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