Senate Bill sb2368

    Florida Senate - 2003                                  SB 2368

    By Senator Fasano





    11-805A-03

  1                      A bill to be entitled

  2         An act relating to water utilities; creating s.

  3         367.172, F.S.; providing legislative findings

  4         with respect to monopoly water utilities;

  5         authorizing counties to require monopoly water

  6         utilities to meet certain standards for potable

  7         water; authorizing counties to require

  8         certification and recertification of water

  9         quality; providing for an audit procedure to be

10         performed by an independent entity; providing

11         for an ad hoc committee to oversee the

12         certification and recertification procedures;

13         providing for the membership of the committee;

14         providing that the cost of additional audits

15         may be considered in establishing rates, with

16         certain exceptions; providing an effective

17         date.

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

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21         Section 1.  Section 367.172, Florida Statutes, is

22  created to read:

23         367.172  Monopoly water utilities; certification by

24  county.--

25         (1)  The Legislature recognizes that by extending the

26  privilege of monopoly status to certain utilities, this

27  chapter creates a class of captive customers who cannot choose

28  to purchase service from an open market. Accordingly, the

29  Legislature finds that it is a priority to ensure that

30  drinking water delivered to captive customers meets

31  appropriate quality standards. The Legislature further finds

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    Florida Senate - 2003                                  SB 2368
    11-805A-03




 1  that there exists a variety of factors that affect the quality

 2  of the water delivered into customers' homes. In order to

 3  assure that standards are appropriate for local conditions,

 4  each county is authorized to require that a monopoly water

 5  utility operating within its boundaries meets standards that

 6  take into account relevant conditions. Each county may require

 7  that potable water provided by a monopoly water utility

 8  certified under s. 367.045(5)(a) meets the standards imposed

 9  upon a water utility owned and operated by that county.

10         (2)  A county may require that each monopoly water

11  utility obtain certification from the county as meeting the

12  county's standards. The county may establish an audit and

13  certification procedure. The county may require periodic

14  recertification of each monopoly water utility that operates

15  within the county.

16         (a)  The audit procedure shall be performed at periodic

17  intervals established by the county. The results must be filed

18  with a regulatory agency determined by the county, such as the

19  Department of Environmental Protection or the Florida Public

20  Service Commission. The report of the audit shall be available

21  to customers 30 days after the audit.

22         (b)  The audit procedures shall be performed by an

23  independent entity chosen by the county.

24         (c)  The certification and recertification procedures

25  shall be overseen by an ad hoc committee consisting of two

26  members who are representatives of the water utility, two

27  members who are representatives of customers, the county

28  health officer, and two independent observers from the

29  scientific community. A member of the board of county

30  commissioners shall be the chairperson of the committee. The

31  committee may require an interim audit if customers file a

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    Florida Senate - 2003                                  SB 2368
    11-805A-03




 1  significant number of complaints about water quality which are

 2  not effectively addressed by the water utility. The committee

 3  shall evaluate and determine if additional audits are

 4  appropriate to resolve the complaints. The cost of additional

 5  audits may be considered in establishing the utility's rates,

 6  unless an audit reveals evidence of deficiencies caused by the

 7  incompetence, neglect, or indifference of the monopoly water

 8  utility.

 9         Section 2.  This act shall take effect July 1, 2003.

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12                          SENATE SUMMARY

13    Provides that counties may require monopoly water
      utilities to meet certain standards for potable water.
14    Provides for certification of water quality and for
      audits. Authorizes counties to establish an ad hoc
15    committee to oversee the certification procedures. (See
      bill for details.)
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