Senate Bill sb2498

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    Florida Senate - 2002                                  SB 2498

    By Senator Mitchell





    4-1487A-02

  1                      A bill to be entitled

  2         An act relating to local infrastructure

  3         funding; amending s. 218.25, F.S.; authorizing

  4         the use of revenue-sharing moneys received in

  5         excess of the guaranteed entitlement for

  6         municipalities and the second guaranteed

  7         entitlement for counties as a pledge for local

  8         indebtedness related to infrastructure;

  9         amending s. 403.1838, F.S.; permitting small

10         disadvantaged counties to participate in the

11         small communities sewer construction grants

12         program, contingent upon identification of an

13         additional funding source; directing

14         development of additional criteria for

15         prioritizing grant applicants; directing the

16         Department of Environmental Protection and the

17         Department of Transportation, in conjunction

18         with the Department of Community Affairs and

19         local government representatives, to recommend

20         guidelines for prioritizing the distribution of

21         state revenues for local water and

22         transportation infrastructure projects;

23         providing an effective date.

24

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

26

27         Section 1.  Subsection (1) of section 218.25, Florida

28  Statutes, is amended, and subsection (4) is added to that

29  section, to read:

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    Florida Senate - 2002                                  SB 2498
    4-1487A-02




  1         218.25  Limitation of shared funds; holders of bonds

  2  protected; limitation on use of second guaranteed entitlement

  3  for counties.--

  4         (1)  Except as provided in subsections subsection (2)

  5  and (4) with respect to the second guaranteed entitlement for

  6  counties, local governments may shall not use any portion of

  7  the moneys received in excess of the guaranteed entitlement

  8  from the revenue sharing trust funds created by this part to

  9  assign, pledge, or set aside as a trust for the payment of

10  principal or interest on bonds, tax anticipation certificates,

11  or any other form of indebtedness, and, except as provided in

12  this section, there shall be no other use restriction on

13  revenues shared pursuant to this part.  The state does hereby

14  covenant with holders of bonds or other instruments of

15  indebtedness issued by local governments prior to July 1,

16  1972, that it is not the intent of this part to affect

17  adversely the rights of said holders or to relieve local

18  governments of the duty to meet their obligations as a result

19  of previous pledges or assignments or trusts entered into

20  which obligated funds received from revenue sources which by

21  terms of this part shall henceforth be distributed out of the

22  revenue sharing trust funds.

23         (4)  Municipalities may use up to 50 percent of the

24  moneys received in excess of the guaranteed entitlement, and

25  counties may use up to 50 percent of the moneys received in

26  excess of the second guaranteed entitlement, from the revenue

27  sharing trust funds created by this part to assign, pledge, or

28  set aside as a trust for the payment of principal or interest

29  on bonds, tax anticipation certificates, or any other form of

30  indebtedness for infrastructure.

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    Florida Senate - 2002                                  SB 2498
    4-1487A-02




  1         (a)  As used this subsection, the term "infrastructure"

  2  means any fixed-capital-outlay expenditure or fixed capital

  3  cost associated with the construction, reconstruction, or

  4  improvement of public facilities that have a life expectancy

  5  of 5 or more years and with any land acquisition, improvement,

  6  design, or engineering costs related thereto.

  7         (b)  As an additional assurance to holders of bonds

  8  issued after July 1, 2002, which are secured by moneys

  9  received in excess of the guaranteed entitlement or second

10  guaranteed entitlement for counties, or refunding bonds that

11  mature no later than the bonds refunded and that result in a

12  reduction of debt service payable in each fiscal year, it is

13  the intent of the Legislature that, to the extent that the

14  elimination of tax sources dedicated to funding the moneys

15  received in excess of the guaranteed entitlement or the second

16  guaranteed entitlement for counties or a reduction in the rate

17  of assessment of such taxes results in an inability of a local

18  government to pay debt service on such bonds, the Legislature

19  will provide alternative funding sources in an amount

20  sufficient to pay any deficit in the amount required for such

21  debt service. This commitment of the Legislature is contingent

22  upon the local government first using any funds available

23  under this part for the payment of such debt service.

24         Section 2.  Section 403.1838, Florida Statutes, is

25  amended to read:

26         403.1838  Small Community Sewer Construction Assistance

27  Act.--

28         (1)  This section may be cited as the "Small Community

29  Sewer Construction Assistance Act."

30         (2)  The department shall use funds specifically

31  appropriated to award grants under this section to assist

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    Florida Senate - 2002                                  SB 2498
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  1  financially disadvantaged small communities with their needs

  2  for adequate sewer facilities.  For purposes of this section,

  3  the term "financially disadvantaged small community" means a

  4  municipality having with a population of 7,500 or less or a

  5  county having a population of 75,000 or less, according to the

  6  latest decennial census and a per capita annual income less

  7  than the state per capita annual income as determined by the

  8  United States Department of Commerce.

  9         (3)  The department shall prepare additional criteria

10  for the relative prioritization of grant applications which

11  considers factors, including the level of self-taxation and

12  existing revenue-generating capacity of applicant local

13  governments and other factors, to better direct limited state

14  funds among grant applications. Such additional criteria shall

15  be presented to the Governor and the Legislature by January

16  31, 2003.

17         (4)  The award of a county grant application is

18  contingent upon the creation or designation of a revenue

19  stream to augment the revenues made available under s.

20  403.1835(4).

21         (5)(3)(a)  In accordance with rules adopted by the

22  Environmental Regulation Commission under this section, the

23  department may provide grants, from funds specifically

24  appropriated for this purpose, to financially disadvantaged

25  small communities for up to 100 percent of the costs of

26  planning, designing, constructing, upgrading, or replacing

27  wastewater collection, transmission, treatment, disposal, and

28  reuse facilities, including necessary legal and administrative

29  expenses.

30         (b)  The rules of the Environmental Regulation

31  Commission must:

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    Florida Senate - 2002                                  SB 2498
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  1         1.  Require that projects to plan, design, construct,

  2  upgrade, or replace wastewater collection, transmission,

  3  treatment, disposal, and reuse facilities be cost-effective,

  4  environmentally sound, permittable, and implementable.

  5         2.  Require appropriate user charges, connection fees,

  6  and other charges sufficient to ensure the long-term

  7  operation, maintenance, and replacement of the facilities

  8  constructed under each grant.

  9         3.  Require grant applications to be submitted on

10  appropriate forms with appropriate supporting documentation,

11  and require records to be maintained.

12         4.  Establish a system to determine eligibility of

13  grant applications.

14         5.  Establish a system to determine the relative

15  priority of grant applications. The system must consider

16  public health protection and water pollution abatement.

17         6.  Establish requirements for competitive procurement

18  of engineering and construction services, materials, and

19  equipment.

20         7.  Provide for termination of grants when program

21  requirements are not met.

22         (c)  The department must perform adequate overview of

23  each grant, including technical review, regular inspections,

24  disbursement approvals, and auditing, to successfully

25  implement this section.

26         (d)  The department may use up to 2 percent of the

27  grant funds made available each year for the costs of program

28  administration.

29         (e)  Any grant awarded before July 1, 1994, under this

30  section, remains subject to the applicable department rules in

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    Florida Senate - 2002                                  SB 2498
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  1  existence on June 30, 1993, until all rule requirements have

  2  been met.

  3         Section 3.  The Department of Environmental Protection

  4  and the Department of Transportation, in conjunction with the

  5  Department of Community Affairs and local government

  6  representatives, shall recommend to the Governor and the

  7  Legislature guidelines for prioritizing the distribution of

  8  state revenues for local water and transportation

  9  infrastructure projects. The departments' recommendations

10  shall include the identification of which revenue sources are

11  appropriate to pay for local water and transportation

12  infrastructure and circumstances and conditions under which

13  various forms of state funding assistance should be made

14  available. The departments shall submit their recommendations

15  to the Legislature and the Governor by January 31,2003.

16         Section 4.  This act shall take effect July 1, 2002.

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19                          SENATE SUMMARY

20    Authorizes the use of the revenue-sharing moneys received
      in excess of the guaranteed entitlement for
21    municipalities and the second guaranteed entitlement for
      counties as a pledge for local indebtedness related to
22    infrastructure. Provides that certain small disadvantaged
      counties are eligible to participate in the small
23    communities sewer construction grants program, contingent
      upon identification of an additional funding source.
24    Directs certain departments to recommend guidelines for
      the prioritizing of state revenues for local water and
25    transportation infrastructure projects by January 31,
      2003.
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