HB 0963 2003
1	A bill to be entitled
2	An act relating to the Florida Interlocal Cooperation Act
3	of 1969; amending s. 163.01, F.S.; requiring notification
4	of the host government if a separate legal entity seeks to
5	acquire public facilities serving populations outside the
6	jurisdiction of members of the separate legal entity;
7	providing for the host government to respond within a
8	specified period; providing that the host government may
9	not prohibit such acquisition if it fails to respond
10	within the specified period; defining the governing body
11	constituting the host government for purposes of the act;
12	authorizing the host government to reserve the right to
13	review and approve rates, charges, and customer
14	classifications; providing certain limitations; providing
15	for retroactive application; providing an effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1. Paragraph (g) of subsection (7) of section
20	163.01, Florida Statutes, is amended to read:
21	163.01 Florida Interlocal Cooperation Act of 1969.--
22	(7)
23	(g)1. Notwithstanding any other provisions of this
24	section, any separate legal entity created under this section,
25	the membership of which is limited to municipalities and
26	counties of the state, may acquire, own, construct, improve,
27	operate, and manage public facilities, or finance facilities on
28	behalf of any person, relating to a governmental function or
29	purpose, including, but not limited to, wastewater facilities,
30	water or alternative water supply facilities, and water reuse
31	facilities, which may serve populations within or outside of the
32	members of the entity. Notwithstanding s. 367.171(7), any
33	separate legal entity created under this paragraph is not
34	subject to commission jurisdiction and may not provide utility
35	services within the service area of an existing utility system
36	unless it has received the consent of the utility. A separate
37	legal entity that seeks to acquire any public facilities that
38	serve populations outside of the jurisdiction of members of the
39	entity must notify in writing each host government of the
40	contemplated acquisition prior to any transfer of ownership,
41	use, or possession of any utility assets to such separate legal
42	entity. The potential acquisition notice must be provided in
43	writing to the legislative head of the governing body of the
44	host government and its chief administrative officer and provide
45	the name and address of a contact person of the separate legal
46	entity for the receipt of information on the contemplated
47	acquisition. Within 45 days following receipt of the notice, the
48	host government may adopt a membership resolution indicating its
49	intent to become a member of the separate legal entity, a
50	prohibition resolution to prohibit the acquisition by the
51	separate legal entity of public facilities within its
52	jurisdiction, an approval resolution prescribing any
53	restrictions on the proposed acquisition required by the host
54	local government, or take no action of any kind. If a host
55	government adopts a membership resolution, the separate legal
56	entity shall accept the host government as a member prior to any
57	transfer of ownership, use, or possession of the public
58	facilities on the same basis as its existing members. If a host
59	government adopts a prohibition resolution, the separate legal
60	entity may not acquire the public facilities within such host
61	government's territory without specific consent of the host
62	government by future resolution. If a host government does not
63	adopt a membership resolution, a prohibition resolution, or an
64	approval resolution, the separate legal entity may proceed to
65	acquire the public facilities after the 45-day notice period
66	without further notice, except as otherwise agreed upon by the
67	separate legal entity and the host government. The host
68	government may not prohibit the acquisition of such public
69	facilities if it has not responded to the legal entity within
70	the 45-day notice period. For purposes of this paragraph, a
71	"host government" is the governing body of the county if a
72	majority of the retail utility customers to be served by the
73	acquired public facilities within the county reside in the
74	unincorporated area, or is the governing body of a municipality
75	if the majority of the retail utility customers to be served by
76	the acquired public facilities reside within the municipal
77	boundaries. Any host government may, in its adoption of an
78	approval resolution or a membership resolution or by resolution
79	adopted subsequent to the closing of an acquisition, reserve the
80	right to review and approve as fair and reasonable the rates,
81	charges, and customer classifications adopted by the separate
82	legal entity for the use of the acquired public facilities
83	within the jurisdiction of the host local government. Such right
84	of rate review and approval by the host local government is
85	subject to the obligation of the separate legal entity to
86	establish rates and charges that comply with the requirements
87	contained in any resolution or trust agreement relating to the
88	issuance of bonds to acquire and improve the affected public
89	facilities and such right does not affect the obligation of the
90	separate legal entity to set rates at a level sufficient to pay
91	debt service on its obligations issued in relation to the
92	affected public facilities. This paragraph is an alternative
93	provision otherwise provided by law as authorized in s. 4, Art.
94	VIII of the State Constitution for any transfer of power as a
95	result of an acquisition of public facilities by a separate
96	legal entity from a municipality, county, or special district.
97	The entity may finance or refinance the acquisition,
98	construction, expansion, and improvement of such facilities
99	relating to a governmental function or purpose through the
100	issuance of its bonds, notes, or other obligations under this
101	section or as otherwise authorized by law. The entity has all
102	the powers provided by the interlocal agreement under which it
103	is created or which are necessary to finance, own, operate, or
104	manage the public facility, including, without limitation, the
105	power to establish rates, charges, and fees for products or
106	services provided by it, the power to levy special assessments,
107	the power to sell or finance all or a portion of such facility,
108	and the power to contract with a public or private entity to
109	manage and operate such facilities or to provide or receive
110	facilities, services, or products. Except as may be limited by
111	the interlocal agreement under which the entity is created, all
112	of the privileges, benefits, powers, and terms of s. 125.01,
113	relating to counties, and s. 166.021, relating to
114	municipalities, are fully applicable to the entity. However,
115	neither the entity nor any of its members on behalf of the
116	entity may exercise the power of eminent domain over the
117	facilities or property of any existing water or wastewater plant
118	utility system, nor may the entity acquire title to any water or
119	wastewater plant utility facilities, other facilities, or
120	property which was acquired by the use of eminent domain after
121	the effective date of this act. Bonds, notes, and other
122	obligations issued by the entity are issued on behalf of the
123	public agencies that are members of the entity.
124	2. Any entity created under this section may also issue
125	bond anticipation notes in connection with the authorization,
126	issuance, and sale of bonds. The bonds may be issued as serial
127	bonds or as term bonds or both. Any entity may issue capital
128	appreciation bonds or variable rate bonds. Any bonds, notes, or
129	other obligations must be authorized by resolution of the
130	governing body of the entity and bear the date or dates; mature
131	at the time or times, not exceeding 40 years from their
132	respective dates; bear interest at the rate or rates; be payable
133	at the time or times; be in the denomination; be in the form;
134	carry the registration privileges; be executed in the manner; be
135	payable from the sources and in the medium or payment and at the
136	place; and be subject to the terms of redemption, including
137	redemption prior to maturity, as the resolution may provide. If
138	any officer whose signature, or a facsimile of whose signature,
139	appears on any bonds, notes, or other obligations ceases to be
140	an officer before the delivery of the bonds, notes, or other
141	obligations, the signature or facsimile is valid and sufficient
142	for all purposes as if he or she had remained in office until
143	the delivery. The bonds, notes, or other obligations may be sold
144	at public or private sale for such price as the governing body
145	of the entity shall determine. Pending preparation of the
146	definitive bonds, the entity may issue interim certificates,
147	which shall be exchanged for the definitive bonds. The bonds may
148	be secured by a form of credit enhancement, if any, as the
149	entity deems appropriate. The bonds may be secured by an
150	indenture of trust or trust agreement. In addition, the
151	governing body of the legal entity may delegate, to an officer,
152	official, or agent of the legal entity as the governing body of
153	the legal entity may select, the power to determine the time;
154	manner of sale, public or private; maturities; rate of interest,
155	which may be fixed or may vary at the time and in accordance
156	with a specified formula or method of determination; and other
157	terms and conditions as may be deemed appropriate by the
158	officer, official, or agent so designated by the governing body
159	of the legal entity. However, the amount and maturity of the
160	bonds, notes, or other obligations and the interest rate of the
161	bonds, notes, or other obligations must be within the limits
162	prescribed by the governing body of the legal entity and its
163	resolution delegating to an officer, official, or agent the
164	power to authorize the issuance and sale of the bonds, notes, or
165	other obligations.
166	3. Bonds, notes, or other obligations issued under
167	subparagraph 1. may be validated as provided in chapter 75. The
168	complaint in any action to validate the bonds, notes, or other
169	obligations must be filed only in the Circuit Court for Leon
170	County. The notice required to be published by s. 75.06 must be
171	published in Leon County and in each county that is a member of
172	the entity issuing the bonds, notes, or other obligations, or in
173	which a member of the entity is located, and the complaint and
174	order of the circuit court must be served only on the State
175	Attorney of the Second Judicial Circuit and on the state
176	attorney of each circuit in each county that is a member of the
177	entity issuing the bonds, notes, or other obligations or in
178	which a member of the entity is located. Section 75.04(2) does
179	not apply to a complaint for validation brought by the legal
180	entity.
181	4. The accomplishment of the authorized purposes of a
182	legal entity created under this paragraph is in all respects for
183	the benefit of the people of the state, for the increase of
184	their commerce and prosperity, and for the improvement of their
185	health and living conditions. Since the legal entity will
186	perform essential governmental functions in accomplishing its
187	purposes, the legal entity is not required to pay any taxes or
188	assessments of any kind whatsoever upon any property acquired or
189	used by it for such purposes or upon any revenues at any time
190	received by it. The bonds, notes, and other obligations of an
191	entity, their transfer and the income therefrom, including any
192	profits made on the sale thereof, are at all times free from
193	taxation of any kind by the state or by any political
194	subdivision or other agency or instrumentality thereof. The
195	exemption granted in this subparagraph is not applicable to any
196	tax imposed by chapter 220 on interest, income, or profits on
197	debt obligations owned by corporations.
198	Section 2. The acquisition requirements contained in the
199	amendments to s. 163.01(7)(g)1., Florida Statutes, provided in
200	this act which condition the acquisition by a separate legal
201	entity of public facilities that serve populations outside of
202	the members of the entity on the provision by such separate
203	legal entity of a potential acquisition notice to all host
204	governments and on the granting to a host government the
205	opportunity to adopt a membership resolution, a prohibition
206	resolution, or an approval resolution shall be retroactively
207	applied and substantial compliance with such acquisition
208	requirements shall be a specific condition of any acquisition
209	subsequent to September 1, 2002, of public facilities by a
210	separate legal entity created by interlocal agreement pursuant
211	to s. 163.01(7)(g)1., Florida Statutes, pursuant to an
212	acquisition agreement entered into prior or subsequent to
213	September 1, 2002.
214	Section 3. This act shall take effect upon becoming a law
215	and shall apply retroactively to September 1, 2002.
216