HB 1529

1
A bill to be entitled
2An act relating to underground electric distribution
3facilities; creating s. 366.201, F.S.; creating the
4"Reliable Electricity Enhancement Act"; creating s.
5366.202, F.S.; providing legislative intent; creating s.
6366.203, F.S.; providing that as of a specified date
7placement of electric distribution facilities underground
8is the industry standard for new distribution facilities;
9providing an exception; requiring public utilities to
10aggressively promote and encourage the timely and orderly
11conversion of existing overhead distribution facilities to
12underground facilities; directing the Public Service
13Commission to adopt rules to encourage and promote the
14conversion from overhead facilities to underground
15facilities; creating s. 366.204, F.S.; providing
16additional duties of a public utility; requiring certain
17reports; providing a penalty; creating s. 366.205, F.S.;
18requiring the commission to ensure that only the minimum
19reasonable general and indirect costs associated with
20underground facilities are included as costs of the
21underground facilities for any purpose; creating 366.206,
22F.S.; encouraging the use of rights-of-way for the
23location of underground facilities; providing a rebuttable
24presumption that rights-of-way are sufficient for the
25location of underground facilities; providing an
26exception; requiring certain easement rights granted to a
27public utility to be temporary and ultimately vest in the
28governmental entity having jurisdiction; creating s.
29366.207, F.S.; encouraging the use of rear yards as
30locations for placing underground utilities; creating s.
31366.208, F.S.; encouraging competition in providing
32utility construction services; requiring public utilities
33to make certain competitive alternatives available to
34governmental entities; creating ss. 125.3402, 166.261,
35189.4052, and 190.018, F.S.; declaring that it is the
36policy of the state that counties, municipalities, special
37districts, and community development districts convert
38electric distribution, telephone, and cable television
39facilities from overhead systems to underground
40facilities; providing that if a county, municipality,
41special district, or community development district pays
42for part or all of the cost of converting overhead
43facilities to underground facilities, it must receive fair
44credit for the payments if and when the entity elects to
45establish an electric utility, telephone, or cable
46television system; creating ss. 125.3403, 166.262,
47189.4053, and 190.019, F.S.; providing the contractual
48terms that must be included in a utility franchise;
49prohibiting a governmental entity from giving or granting
50a franchise without reserving to the governmental entity
51the right to purchase the utility at the expiration of the
52franchise; providing that the utility franchise is void
53under certain circumstances; amending s. 364.03, F.S.;
54directing the commission and the entities that provide
55service in this state to consistently and continuously
56promote and encourage all reasonable means to enhance the
57reliability of the telecommunications system in the state;
58amending s. 366.04, F.S.; declaring that the installation
59of underground electric distribution facilities to replace
60existing overhead facilities is in the public interest in
61the state; exempting certain government-owned electric
62utilities from the commission's jurisdiction over
63territorial disputes; providing an effective date.
64
65Be It Enacted by the Legislature of the State of Florida:
66
67     Section 1.  Section 366.201, Florida Statutes, is created
68to read:
69     366.201  Short title.--Sections 366.201-366.208 may be
70cited as the "Reliable Electricity Enhancement Act."
71     Section 2.  Section 366.202, Florida Statutes, is created
72to read:
73     366.202  Legislative findings and intent.--
74     (1)  The Legislature finds that:
75     (a)  More than two-thirds of all new electric distribution
76facilities currently being installed in this state are being
77installed as underground facilities;
78     (b)  More than one-third of all electric distribution
79facilities currently in service in this state are underground
80facilities, and that approximately one-half of all customers
81served by public utilities are served from underground
82facilities;
83     (c)  Underground distribution service is the preferred
84standard of service in this state and that underground service
85is, in fact, becoming the general standard of service for public
86utilities;
87     (d)  Many reports indicate that areas served by underground
88distribution facilities had less severe and less prolonged
89losses of electric service during the hurricanes that struck the
90state in 2004 and 2005; and
91     (e)  A significant number of meteorological experts are
92predicting that more hurricanes are likely to strike the state
93with significantly greater frequency over the foreseeable future
94than the state experienced in the 50-year period before 2004.
95     (2)  The Legislature further finds that reliability of
96electric service is critical to the public health, safety, and
97welfare of the residents of the state, and that minimizing the
98severity, extent, and duration of outages of electric service is
99likewise critical to the health, safety, and welfare.
100Accordingly, the Legislature directs the Public Service
101Commission and the public utilities that provide service in this
102state to consistently and continuously seek, promote, and
103encourage all reasonable means of enhancing and maximizing the
104reliability of the electric supply system, including
105distribution systems as well as transmission and generation
106systems. Further, the Legislature directs the commission and all
107public utilities to aggressively promote and encourage the
108installation of underground distribution facilities to the
109maximum extent feasible, and to aggressively promote and
110encourage the timely and orderly conversion of existing overhead
111facilities to underground facilities.
112     (3)  The mandatory provisions of ss. 366.201-366.208 apply
113only to public utilities as defined in s. 366.02. Municipal and
114cooperative utilities providing electric service in the state
115are encouraged to seek and implement all reasonable means of
116enhancing electric service reliability in the state, and to
117install underground electric distribution facilities to the
118maximum extent feasible, giving due consideration to the unique
119circumstances of each utility.
120     Section 3.  Section 366.203, Florida Statutes, is created
121to read:
122     366.203  Standard of service.--
123     (1)  Effective January 1, 2007, underground electric
124distribution is presumed to constitute the standard for new
125electric distribution service in this state. This presumption is
126rebuttable in specific cases if, in proceedings before the
127commission, a clear and convincing showing is made that, in a
128particular application, underground electric distribution is
129less desirable than overhead facilities. To rebut the
130presumption, the commission must consider the relevant factors,
131including the relative reliability of underground compared to
132overhead systems in the particular application, the installation
133costs for underground and overhead facilities, the operating and
134maintenance costs for overhead and underground facilities, and
135any other identifiable costs associated with overhead and
136underground facilities. The commission must also consider,
137without limitation:
138     (a)  The overall cost of accidental electrocutions and
139temporary and permanent disabilities to utility employees and
140the public;
141     (b)  The overall cost of vehicular accidents involving
142distribution facilities;
143     (c)  Ascertainable and measurable costs of adverse health
144effects;
145     (d)  The costs associated with rights-of-way and easements;
146     (e)  The total operating and maintenance costs, including
147costs of tree trimming for overhead facilities;
148     (f)  The total costs incurred and losses sustained by
149utility customers as a result of outages due to storm damage;
150and
151     (g)  The costs of associated insurance, attorney's fees,
152and legal settlements and costs.
153
154In any proceedings before the commission, the commission shall
155specifically include, as an estimated cost of the overhead
156facilities being considered, the costs of having to remove and
157replace a new overhead system due to storm damage at least once
158during its projected useful life.
159     (2)  Effective July 1, 2006, all public utilities are
160directed to aggressively seek, promote, and encourage the timely
161and orderly conversion of existing overhead distribution
162facilities to underground facilities, so that the majority of
163persons served by public utilities will come to enjoy the
164reliability benefits of underground distribution service.
165Specifically, it is the intent of the Legislature that, to the
166maximum extent feasible, existing overhead facilities be
167converted to underground systems in a timely and orderly way,
168with preference and priority given to overhead facilities and
169systems that are being relocated due to road-widening or other
170similar activities, and to overhead systems that are at or near
171the end of their useful lives.
172     (3)  The commission shall adopt rules to encourage and
173promote, to the maximum extent feasible, the conversion of
174existing overhead systems to underground facilities in a timely
175and orderly manner giving due consideration to the factors
176deemed relevant by the commission and consistent with the public
177interest, including:
178     (a)  The overall cost of accidental electrocutions and
179temporary and permanent disabilities to both utility employees
180and others;
181     (b)  The overall cost of vehicular accidents involving
182distribution facilities;
183     (c)  Ascertainable and measurable costs of adverse health
184effects;
185     (d)  The costs associated with rights-of-way and easements;
186     (e)  The total operating and maintenance costs, including,
187without limitation, costs of tree trimming for overhead
188facilities;
189     (f)  The total costs incurred and losses sustained by
190utility customers as a result of outages due to storm damage;
191and
192     (g)  The costs of associated insurance, attorney's fees,
193and legal settlements and costs.
194     Section 4.  Section 366.204, Florida Statutes, is created
195to read:
196     366.204  Duties of public utilities.--
197     (1)  In addition to the general duties set forth in s.
198366.03, each public utility shall:
199     (a)  Maintain adequate and accurate records and data
200regarding the relative reliability of overhead and underground
201facilities, including the number, frequency, and duration of all
202outages on the distribution system; whether each outage was the
203result of an event directly affecting overhead or underground
204facilities; and any other information that the commission may
205prescribe by rule to be maintained.
206     (b)  At least once every 2 years, prepare a comprehensive
207and detailed report concerning the relative reliability of
208overhead and underground systems, including summaries of the
209number, frequency, and duration of all outages on the
210distribution system and the causes of the outages; whether the
211outages resulted from events directly affecting overhead or
212underground facilities; and any other information that the
213commission may prescribe by rule as appropriate for inclusion in
214the reports.
215     (c)  Maintain accurate records regarding the costs of
216installing, maintaining, and operating overhead and underground
217systems and facilities, such that the original cost, approximate
218depreciated value, and operating and maintenance costs of
219underground and overhead facilities, and also the removal cost
220of overhead facilities, can be readily compiled and calculated
221separately and comparably for overhead and underground
222facilities.
223     (d)  Timely prepare and provide, at the request of any
224local governmental unit, a report concerning the relative
225reliability of the electric distribution systems providing
226service within the geographic jurisdiction of the governmental
227unit, at no cost to the governmental unit.
228     (e)  Timely prepare and provide, at the request of any
229local governmental unit, a report showing in reasonable and
230understandable detail the estimated original cost, approximate
231depreciated value, and operating and maintenance costs of
232underground and overhead facilities, and also the removal cost
233of overhead facilities, at no cost to the governmental unit.
234     (f)  Work cooperatively, proactively, promptly, diligently,
235and in good faith with any local governmental unit or
236homeowners' association that wishes to participate in converting
237existing overhead systems to underground facilities.
238     (2)  By January 1, 2007, each public utility shall prepare
239a detailed report regarding:
240     (a)  The damage to overhead and underground facilities on
241each public utility's distribution system caused by the
242hurricanes that struck the state in 2004 and 2005, in order that
243the extent and cost of damage to overhead and underground
244facilities can be readily and fairly compared; and
245     (b)  The outages sustained by each public utility's
246customers due to damage to the utility's distribution systems
247caused by the hurricanes that struck the state in 2004 and 2005,
248in order that the causes of the outages, the points on the
249distribution system at which the outages originated, and the
250duration of the outages can be readily and fairly compared as
251between overhead and underground facilities.
252     (3)  A public utility may not willfully discourage or fail
253to seek, promote, and encourage the installation of new
254underground utility facilities or the conversion of existing
255overhead systems to underground systems. Any public utility that
256violates this subsection is subject to the penalties set forth
257in s. 350.127.
258     Section 5.  Section 366.205, Florida Statutes, is created
259to read:
260     366.205  Limitation on inclusion of general and indirect
261costs in determining costs or payments for underground
262facilities.--In any proceedings in which the cost of, or payment
263for, underground facilities is at issue, the commission shall
264ensure that only the minimum reasonable general and indirect
265costs associated with underground facilities, whether such
266facilities are contemplated or have been installed, are included
267as costs of the underground facilities for any purpose. This
268section shall be strictly construed to ensure that no general or
269indirect costs are assigned or allocated to underground
270facilities, or accounted for in such a way as to provide a
271disincentive to the installation of underground facilities,
272unless the general or indirect costs are properly attributable
273to the costs of underground facilities.
274     Section 6.  Section 366.206, Florida Statutes, is created
275to read:
276     366.206  Rights-of-way; easements.--
277     (1)  The use of rights-of-way for the location of
278underground facilities is encouraged to the maximum extent
279feasible, consistent with safety and cost considerations. It is
280presumed, subject to a rebuttal by clear and convincing evidence
281in a specific proceeding before the commission, that rights-of-
282way are sufficient for the location of underground facilities.
283If a municipality, county, special district, or other
284governmental entity agrees to be responsible for the costs
285associated with a future relocation of facilities located within
286the governmental entity's rights-of-way, the issue of future
287relocation costs to the public utility is irrelevant when
288determining whether the governmental entity's right-of-way is
289sufficient for the location of underground facilities or if an
290easement is required for the facilities.
291     (2)  All easements granted to public utilities on or after
292July 1, 2006, must state that all permanent rights granted by
293the easement vest in the governmental entity in whose geographic
294jurisdiction the easement exists, with the public utility having
295the rights that are granted by the easement only for so long as
296it holds a franchise to provide service within the governmental
297entity's jurisdiction. Each easement must provide specifically
298that the easement, and the rights thereunder, transfer
299automatically, by operation of the provisions of the easement
300itself, to the respective governmental entity upon termination
301or expiration of any franchise granted to the public utility, or
302upon the governmental entity's establishing an electric utility
303system to serve within any part, or all, of its geographic
304jurisdiction.
305     Section 7.  Section 366.207, Florida Statutes, is created
306to read:
307     366.207  Use of rear yard easements encouraged.--If
308existing overhead facilities are located within rear yard
309easements, using rear yard easements for the installation of new
310underground facilities is encouraged. The utility may require
311that the easements be kept clear of obstructions in order to
312ensure access to the underground facilities.
313     Section 8.  Section 366.208, Florida Statutes, is created
314to read:
315     366.208  Encouraging competition in providing utility
316construction services.--It is the policy of the state to
317promote, to the maximum extent feasible and practicable,
318competition in all economic activity in the state, including the
319provision of utility construction services. Public utilities
320shall pursue competitive alternatives from qualified vendors and
321make such alternatives available to governmental entities that
322desire to convert existing overhead facilities to underground
323facilities.
324     Section 9.  Section 125.3402, Florida Statutes, is created
325to read:
326     125.3402  Credits to counties for contributions paid toward
327the cost of underground distribution facilities.--
328     (1)  It is the policy of the state to encourage counties to
329convert electric distribution, telephone, and cable television
330facilities providing service within their geographic
331jurisdictions from overhead systems to underground facilities in
332order to secure for their residents the benefits of such
333underground facilities and systems. It is further the policy of
334the state to ensure that, if a county pays for part or all of
335the cost of converting overhead facilities to underground
336facilities, it receive fair credit for such payments if and when
337the county elects to establish a county-owned electric utility,
338telephone, or cable television systems.
339     (2)  If a county has paid a differential cost reflecting
340the difference in cost between the cost of the underground
341facilities installed and the cost of equivalent new overhead
342facilities for the installation of new underground facilities,
343and the county subsequently decides to purchase the public
344utility's or other provider's facilities as part of establishing
345a county-owned electric utility, telephone, or cable television
346system, whether under eminent domain or other proceedings, at
347the county's option:
348     (a)  In any proceedings to determine the purchase price for
349the facilities being purchased, the county shall receive full
350credit for such differential payments made; or
351     (b)  The county shall have the right to purchase the
352underground system by paying the public utility or other
353provider the difference between the cost of the new underground
354system installed and the payment that the county made.
355
356In order for a county to receive fair credit for the value that
357it contributed to convert overhead facilities to underground
358facilities, this section applies to payments made by the county
359before or after July 1, 2006. This section applies whether the
360county paid the public utility or other provider to install the
361new underground facilities or engaged a private contractor to
362install the underground facilities and received a credit from
363the public utility or other provider.
364     (3)  If a county pays the full cost of installing new
365underground facilities without any credit from the public
366utility or other provider for the cost of an equivalent new
367overhead facility, the county has a vested fee simple ownership
368right in the underground facilities along with any easements and
369easement rights associated with the underground facilities.
370However, the public utility or other provider retains sufficient
371rights of access in order to operate and maintain the
372underground facilities under the terms and conditions agreed
373upon by the county and the public utility or other provider.
374When considering such terms and conditions, the Legislature
375finds and states that a leasehold interest of the public
376utility, at an annual lease payment of $1 per year for all
377facilities and property, including any applicable easement
378rights, located within the county's geographic area is
379sufficient for this purpose. The Legislature further finds and
380declares that, alternatively, the public utility or other
381provider has a vested time-limited ownership interest with the
382fee simple title remaining vested in the county. This interest
383may not exceed the duration of any franchise agreement and is
384deemed sufficient to satisfy the public utility's or other
385provider's need for an ownership interest to allow it adequate
386access to the underground facilities in order to operate and
387maintain the systems. If the public utility or other provider
388and the county are unable to agree on this matter, the county,
389in its sole discretion, shall determine which of the ownership
390structures shall apply.
391     Section 10.  Section 125.3403, Florida Statutes, is created
392to read:
393     125.3403  Terms for which a utility franchise may be
394granted; conditions.--
395     (1)(a)  A county may not give or grant any franchise or
396right to use a street for operating along or across the street a
397street railroad, water works, telephone, cable television, gas
398or electric business, or other business requiring the use of
399mains, pipes, wires, or similar facilities in any street for a
400term exceeding 30 years. At the sole option and discretion of
401the county, any county that is negotiating for a new franchise,
402or in which a renewal franchise agreement is being negotiated as
403the current franchise is about to expire or has expired, may
404require that any new franchise agreement be for a period of 5
405years.
406     (b)  If the entity with whom the county is negotiating
407refuses or delays in negotiating a franchise term of 5 years, or
408longer at the county's option, the county may file a civil
409action in circuit court for a declaratory judgment, reformation,
410or injunctive relief, or any such other relief as the court
411finds appropriate, requiring that the franchise term be set at 5
412years or such longer term as prayed by the county. If the county
413is successful, the entity with whom the county is negotiating is
414liable to the county for all of the county's reasonable
415attorney's fees and costs of bringing the action.
416     (2)  A county may not give or grant any franchise governed
417by this section without reserving to the county the right to
418purchase the street railroad, water works, telephone, cable
419television, gas or electric business, or other business at the
420expiration of the franchise. The right of reservation includes
421all related property used under or in connection with the
422franchise or right, or any such part of the property which the
423county may desire to purchase. The value of the franchise
424property, real and personal, desired by the county shall be
425fixed by arbitration as may be provided by law.
426     (3)  A franchise may not be granted which contains or
427includes a provision that prohibits a county from competing with
428any street railroad, water works, telephone, cable television,
429gas or electric business, or other similar business obtaining a
430franchise from the county for a period longer than 5 years.
431     (4)  Any franchise or right granted for a period longer
432than 30 years, granted without the right to purchase the
433franchise as set forth in this section, or including a provision
434intended to limit competition with the county for a period
435longer than 5 years, is void. Notwithstanding the voiding of any
436such franchise, the entity to whom the franchise had been
437granted shall continue to be liable to pay any applicable
438franchise fees, which would otherwise have been due under the
439franchise, to the county for so long as the entity continues to
440operate and conduct its business in the county.
441     Section 11.  Section 166.261, Florida Statutes, is created
442to read:
443     166.261  Credits to municipalities for contributions paid
444toward the cost of underground distribution facilities.--
445     (1)  It is the policy of the state to encourage
446municipalities to convert electric distribution, telephone, and
447cable television facilities providing service within their
448geographic jurisdictions from overhead systems to underground
449facilities in order to secure for their residents the benefits
450of such underground facilities and systems. It is further the
451policy of the state to ensure that, if a municipality pays for
452part or all of the cost of converting overhead facilities to
453underground facilities, it receive fair credit for such payments
454if and when the municipality elects to establish a municipality-
455owned electric utility, telephone, or cable television systems.
456     (2)  If a municipality, corporate entity, individual
457citizen, or group of citizens, including, without limitation, a
458civic association, neighborhood association, homeowners'
459association, or similar group, has paid a differential cost
460reflecting the difference in cost between the cost of the
461underground facilities installed and the cost of equivalent new
462overhead facilities for the installation of new underground
463facilities, and the municipality subsequently decides to
464purchase the public utility's or other provider's facilities as
465part of establishing a municipality-owned electric utility,
466telephone, or cable television system, whether under eminent
467domain or other proceedings, at the municipality's option:
468     (a)  In any proceedings to determine the purchase price for
469the facilities being purchased, the municipality shall receive
470full credit for such differential payments made, whether by the
471municipality, a corporate entity, an individual citizen, or a
472group of citizens; or
473     (b)  The municipality shall have the right to purchase the
474underground system by paying the public utility or other
475provider the difference between the cost of the new underground
476system installed and the payment that the municipality or others
477made.
478
479In order for a municipality and its citizens to receive fair
480credit for the value that they contributed to convert overhead
481facilities to underground facilities, this section applies to
482payments made by the municipality or its citizens before and
483after July 1, 2006. This section applies whether the
484municipality paid the public utility or other provider to
485install the new underground facilities or engaged a private
486contractor to install the underground facilities and received a
487credit from the public utility or other provider.
488     (3)  If the full cost of installing new underground
489facilities is paid by a municipality or its citizens without any
490credit from the public utility or other provider for the cost of
491an equivalent new overhead facility, the municipality has a
492vested fee simple ownership right in the underground facilities
493along with any easements and easement rights associated with the
494underground facilities. However, the public utility or other
495provider retains sufficient rights of access in order to operate
496and maintain the underground facilities under the terms and
497conditions agreed upon by the municipality and the public
498utility or other provider. When considering such terms and
499conditions, the Legislature finds and states that a leasehold
500interest of the public utility, at an annual lease payment of $1
501per year for all facilities and property, including any
502applicable easement rights, located within the municipality's
503geographic area is sufficient for this purpose. The Legislature
504further finds and declares that, alternatively, the public
505utility or other provider has a vested time-limited ownership
506interest with the fee simple title remaining vested in the
507municipality. This interest may not exceed the duration of any
508franchise agreement and is deemed sufficient to satisfy the
509public utility's or other provider's need for an ownership
510interest to allow it adequate access to the underground
511facilities in order to operate and maintain the systems. If the
512public utility or other provider and the municipality are unable
513to agree on this matter, the municipality, in its sole
514discretion, shall determine which of the ownership structures
515shall apply.
516     Section 12.  Section 166.262, Florida Statutes, is created
517to read:
518     166.262  Terms for which a utility franchise may be
519granted; conditions.--
520     (1)(a)  A municipality may not give or grant any franchise
521or right to use a street for operating along or across the
522street a street railroad, water works, telephone, cable
523television, gas or electric business, or other business
524requiring the use of mains, pipes, wires, or similar facilities
525in any street for a term exceeding 30 years. At the sole option
526and discretion of the municipality, a municipality that is
527negotiating for a new franchise, or in which a renewal franchise
528agreement is being negotiated as the current franchise is about
529to expire or has expired, may require that any new franchise
530agreement be for a period of 5 years.
531     (b)  If the entity with whom the municipality is
532negotiating refuses or delays in negotiating a franchise term of
5335 years, or longer at the municipality's option, the
534municipality may file a civil action in circuit court for a
535declaratory judgment, reformation, or injunctive relief, or any
536such other relief as the court finds appropriate, requiring that
537the franchise term be set at 5 years or such longer term as
538prayed by the municipality. If the municipality is successful,
539the entity with whom the municipality is negotiating is liable
540to the municipality for all of the municipality's reasonable
541attorney's fees and costs of bringing the action.
542     (2)  A municipality may not give or grant any franchise
543governed by this section without reserving to the municipality
544the right to purchase the street railroad, water works,
545telephone, cable television, gas or electric business, or other
546business at the expiration of the franchise. The right of
547reservation includes all related property used under or in
548connection with the franchise or right, or any such part of the
549property which the municipality may desire to purchase. The
550value of the franchise property, real and personal, desired by
551the municipality shall be fixed by arbitration as may be
552provided by law.
553     (3)  A franchise may not be granted which contains or
554includes a provision that prohibits a municipality from
555competing with any street railroad, water works, telephone,
556cable television, gas or electric business, or other similar
557business obtaining a franchise from the municipality for a
558period longer than 5 years.
559     (4)  Any franchise or right granted for a period longer
560than 30 years, granted without the right to purchase the
561franchise as set forth in this section, or including a provision
562intended to limit competition with the municipality for a period
563longer than 5 years, is void. Notwithstanding the voiding of any
564such franchise, the entity to whom the franchise had been
565granted shall continue to be liable to pay any applicable
566franchise fees, which would otherwise have been due under the
567franchise, to the municipality for so long as the entity
568continues to operate and conduct its business in the
569municipality.
570     Section 13.  Section 189.4052, Florida Statutes, is created
571to read:
572     189.4052  Credits to special districts for contributions
573paid toward the cost of underground distribution facilities.--
574     (1)  It is the policy of the state to encourage special
575districts to convert electric distribution, telephone, and cable
576television facilities providing service within their geographic
577jurisdictions from overhead systems to underground facilities in
578order to secure for their residents the benefits of such
579underground facilities and systems. It is further the policy of
580the state to ensure that, if a special district pays for part or
581all of the cost of converting overhead facilities to underground
582facilities, the special district receives fair credit for such
583payments if and when the special district elects to establish a
584special district-owned electric utility, telephone, or cable
585television systems.
586     (2)  If a special district has paid a differential cost
587reflecting the difference in cost between the cost of the
588underground facilities installed and the cost of equivalent new
589overhead facilities for the installation of new underground
590facilities, and the special district subsequently decides to
591purchase the public utility's or other provider's facilities as
592part of establishing a special district-owned electric utility,
593telephone, or cable television system, whether under eminent
594domain or other proceedings, at the special district's option:
595     (a)  In any proceedings to determine the purchase price for
596the facilities being purchased, the special district shall
597receive full credit for the differential payments made; or
598     (b)  The special district has the right to purchase the
599underground system by paying the public utility or other
600provider the difference between the cost of the new underground
601system installed and the payment that the special district made.
602
603In order for a special district to receive fair credit for the
604value that it contributed to convert overhead facilities to
605underground facilities, this section applies to payments made by
606the special district before and after July 1, 2006. This section
607applies whether the special district paid the public utility or
608other provider to install the new underground facilities or
609engaged a private contractor to install the underground
610facilities and received a credit from the public utility or
611other provider.
612     (3)  If a special district pays the full cost of installing
613new underground facilities without any credit from the public
614utility or other provider for the cost of an equivalent new
615overhead facility, it has a vested fee simple ownership right in
616the underground facilities along with any easements and easement
617rights associated with the underground facilities. However, the
618public utility or other provider retains sufficient rights of
619access in order to operate and maintain the underground
620facilities under the terms and conditions agreed upon by the
621special district and the public utility or other provider. When
622considering such terms and conditions, the Legislature finds and
623states that a leasehold interest of the public utility, at an
624annual lease payment of $1 per year for all facilities and
625property, including any applicable easement rights, located
626within the special district's geographic area is sufficient for
627this purpose. The Legislature further finds and declares that,
628alternatively, the public utility or other provider has a vested
629time-limited ownership interest with the fee simple title
630remaining vested in the special district. This interest may not
631exceed the duration of any franchise agreement and is deemed
632sufficient to satisfy the public utility's or other provider's
633need for an ownership interest to allow it adequate access to
634the underground facilities in order to operate and maintain the
635systems. If the public utility or other provider and the special
636district are unable to agree on this matter, the special
637district, in its sole discretion, shall determine which of the
638ownership structures shall apply.
639     Section 14.  Section 189.4053, Florida Statutes, is created
640to read:
641     189.4053  Terms for which a utility franchise may be
642granted; conditions.--
643     (1)(a)  Special districts created under this chapter shall
644have, to the extent allowed by law, the power to grant
645franchises to entities that wish to operate a street railroad,
646water works, telephone, cable television, gas or electric
647business, or other business requiring the use of mains, pipes,
648wires, or similar facilities in any street in the district.
649However, a special district may not give or grant any franchise
650or right to use a street for operating along or across the
651street a street railroad, water works, telephone, cable
652television, gas or electric business, or other business
653requiring the use of mains, pipes, wires, or similar facilities
654in any street for a term exceeding 30 years. At the sole option
655and discretion of the special district, a special district that
656is negotiating for a new franchise, or in which a renewal
657franchise agreement is being negotiated as the current franchise
658is about to expire or has expired, may require that any new
659franchise agreement be for a period of 5 years.
660     (b)  If the entity with whom the special district is
661negotiating refuses or delays in negotiating a franchise term of
6625 years, or longer at the special district's option, the special
663district may file a civil action in circuit court for a
664declaratory judgment, reformation, or injunctive relief, or any
665such other relief as the court finds appropriate, requiring that
666the franchise term be set at 5 years or such longer term as
667prayed by the special district. If the special district is
668successful, the entity with whom the special district is
669negotiating is liable to the special district for all of the
670special district's reasonable attorney's fees and costs of
671bringing the action.
672     (2)  A special district may not give or grant any franchise
673governed by this section without reserving to the special
674district the right to purchase the street railroad, water works,
675telephone, cable television, gas or electric business, or other
676business at the expiration of the franchise. The right of
677reservation includes all related property used under or in
678connection with the franchise or right, or any such part of the
679property which the special district may desire to purchase. The
680value of the franchise property, real and personal, desired by
681the special district shall be fixed by arbitration as may be
682provided by law.
683     (3)  A franchise may not be granted which contains or
684includes a provision that prohibits a special district from
685competing with any street railroad, water works, telephone,
686cable television, gas or electric business, or other similar
687business obtaining a franchise from the special district for a
688period longer than 5 years.
689     (4)  Any franchise or right granted for a period longer
690than 30 years, granted without the right to purchase the
691franchise as set forth in this section, or including a provision
692intended to limit competition with the special district for a
693period longer than 5 years, is void. Notwithstanding the voiding
694of any such franchise, the entity to whom the franchise had been
695granted shall continue to be liable to pay any applicable
696franchise fees, which would otherwise have been due under the
697franchise, to the special district for so long as the entity
698continues to operate and conduct its business in the special
699district.
700     Section 15.  Section 190.018, Florida Statutes, is created
701to read:
702     190.018  Credits to community development districts for
703contributions paid toward the cost of underground distribution
704facilities.--
705     (1)  It is the policy of the state to encourage community
706development districts to convert electric distribution,
707telephone, and cable television facilities providing service
708within their geographic jurisdictions from overhead systems to
709underground facilities in order to secure for their residents
710the benefits of such underground facilities and systems. It is
711further the policy of the state to ensure that, if a community
712development district pays for part or all of the cost of
713converting overhead facilities to underground facilities, the
714community development district receives fair credit for such
715payments if and when the community development district elects
716to establish a community development district-owned electric
717utility, telephone, or cable television system.
718     (2)  If a community development district has paid a
719differential cost reflecting the difference in cost between the
720cost of the underground facilities installed and the cost of
721equivalent new overhead facilities for the installation of new
722underground facilities, and the community development district
723subsequently decides to purchase the public utility's or other
724provider's facilities as part of establishing a community
725development district-owned electric utility, telephone, or cable
726television system, whether under eminent domain or other
727proceedings, at the community development district's option:
728     (a)  In any proceedings to determine the purchase price for
729the facilities being purchased, the community development
730district shall receive full credit for the differential payments
731made; or
732     (b)  The community development district has the right to
733purchase the underground system by paying the public utility or
734other provider the difference between the cost of the new
735underground system installed and the payment that the district
736made.
737
738In order for a community development district to receive fair
739credit for the value that it contributed to convert overhead
740facilities to underground facilities, this section applies to
741payments made by the community development district before and
742after July 1, 2006. This section applies whether the community
743development district paid the public utility or other provider
744to install the new underground facilities or engaged a private
745contractor to install the underground facilities and received a
746credit from the public utility or other provider.
747     (3)  If a community development district pays the full cost
748of installing new underground facilities without any credit from
749the public utility or other provider for the cost of an
750equivalent new overhead facility, the community development
751district has a vested fee simple ownership right in the
752underground facilities along with any easements and easement
753rights associated with the underground facilities. However, the
754public utility or other provider retains sufficient rights of
755access in order to operate and maintain the underground
756facilities under the terms and conditions agreed upon by the
757community development district and the public utility or other
758provider. When considering such terms and conditions, the
759Legislature finds and states that a leasehold interest of the
760public utility, at an annual lease payment of $1 per year for
761all facilities and property, including any applicable easement
762rights, located within the community development district's
763geographic area is sufficient for this purpose. The Legislature
764further finds and declares that, alternatively, the public
765utility or other provider has a vested time-limited ownership
766interest with the fee simple title remaining vested in the
767district. This interest may not exceed the duration of any
768franchise agreement and is deemed sufficient to satisfy the
769public utility's or other provider's need for an ownership
770interest to allow it adequate access to the underground
771facilities to operate and maintain the systems. If the public
772utility or other provider and the community development district
773are unable to agree on this matter, the community development
774district, in its sole discretion, shall determine which of the
775ownership structures shall apply.
776     Section 16.  Section 190.019, Florida Statutes, is created
777to read:
778     189.019  Terms for which a utility franchise may be
779granted; conditions.--
780     (1)(a)  A community development district may not give or
781grant any franchise or right to use a street for operating along
782or across the street a street railroad, water works, telephone,
783cable television, gas or electric business, or other business
784requiring the use of mains, pipes, wires, or similar facilities
785in any street for a term exceeding 30 years. At the sole option
786and discretion of the community development district, a
787community development district that is negotiating for a new
788franchise, or in which a renewal franchise agreement is being
789negotiated as the current franchise is about to expire or has
790expired, may require that any new franchise agreement be for a
791period of 5 years.
792     (b)  If the entity with whom the community development
793district is negotiating refuses or delays in negotiating a
794franchise term of 5 years, or longer at the community
795development district's option, the district may file a civil
796action in circuit court for a declaratory judgment, reformation,
797or injunctive relief, or any such other relief as the court
798finds appropriate, requiring that the franchise term be set at 5
799years or such longer term as prayed by the community development
800district. If the district is successful, the entity with whom
801the community development district is negotiating is liable to
802the community development district for all of the district's
803reasonable attorney's fees and costs of bringing the action.
804     (2)  A community development district may not give or grant
805any franchise governed by this section without reserving to the
806district the right to purchase the street railroad, water works,
807telephone, cable television, gas or electric business, or other
808business at the expiration of the franchise. The right of
809reservation includes all related property used under or in
810connection with the franchise or right, or any such part of the
811property which the community development district may desire to
812purchase. The value of the franchise property, real and
813personal, desired by the district shall be fixed by arbitration
814as may be provided by law.
815     (3)  A franchise may not be granted which contains or
816includes a provision that prohibits a community development
817district from competing with any street railroad, water works,
818telephone, cable television, gas or electric business, or other
819similar business obtaining a franchise from the district for a
820period longer than 5 years.
821     (4)  Any franchise or right granted for a period longer
822than 30 years, granted without the right to purchase the
823franchise as set forth in this section, or including a provision
824intended to limit competition with the community development
825district for a period longer than 5 years, is void.
826Notwithstanding the voiding of any such franchise, the entity to
827whom the franchise had been granted shall continue to be liable
828to pay any applicable franchise fees, which would otherwise have
829been due under the franchise, to the community development
830district for so long as the entity continues to operate and
831conduct its business in the community development district.
832     Section 17.  Subsection (4) is added to section 364.03,
833Florida Statutes, to read:
834     364.03  Rates to be reasonable; performance of service;
835maintenance of telecommunications facilities.--
836     (4)  The reliability of telecommunications service is
837critical to the public health, safety, and welfare, and
838minimizing the severity, extent, and duration of outages of
839telecommunications service is likewise critical to the public
840health, safety, and welfare. Accordingly, the Legislature
841directs the commission and the entities that provide such
842service in this state to consistently and continuously seek,
843promote, and encourage all reasonable means of enhancing and
844maximizing the reliability of the telecommunications system.
845Further, the Legislature directs the commission and all such
846entities in this state to aggressively promote and encourage the
847installation of underground facilities, where applicable and to
848the maximum extent feasible, and to aggressively promote and
849encourage the timely and orderly conversion of existing overhead
850facilities to underground facilities. Consistent with the
851Florida Reliable Electricity Enhancement Act, ss. 366.201-
852366.208, effective January 1, 2007, it is presumed that
853underground service constitutes the standard for new
854telecommunication service in this state and that underground
855service shall constitute modern, adequate, sufficient, and
856efficient service within the meaning of this section. The
857commission shall adopt rules to the extent of its jurisdiction
858encouraging and promoting, to the maximum extent feasible, the
859conversion of existing overhead facilities to underground
860facilities on a priority basis, in coordination with any
861conversion of electric facilities to underground service, giving
862due consideration to the overall cost of vehicular accidents
863involving poles and other overhead facilities, as well as to
864corresponding facilities that provide underground service, the
865costs associated with rights-of-way and easements, the total
866operating and maintenance costs, including, without limitation,
867costs of tree-trimming for overhead facilities, the total costs
868incurred and losses sustained by consumers as a result of
869outages due to storm damage, and the costs of associated
870insurance, attorney's fees, and legal settlement and costs.
871     Section 18.  Paragraph (e) of subsection (2) of section
872366.04, Florida Statutes, is amended to read:
873     366.04  Jurisdiction of commission.--
874     (2)  In the exercise of its jurisdiction, the commission
875shall have power over electric utilities for the following
876purposes:
877     (e)  To resolve, upon petition of a utility or on its own
878motion, any territorial dispute involving service areas between
879and among rural electric cooperatives, municipal electric
880utilities, and other electric utilities under its jurisdiction.
881In resolving territorial disputes, the commission may consider,
882but not be limited to consideration of, the ability of the
883utilities to expand services within their own capabilities and
884the nature of the area involved, including population, the
885degree of urbanization of the area, its proximity to other urban
886areas, and the present and reasonably foreseeable future
887requirements of the area for other utility services. The
888Legislature finds and declares that the installation of
889underground electric distribution facilities to replace existing
890overhead facilities is in the public interest and that such
891installation is not a duplication of existing overhead
892facilities. Any governmental entity that installs underground
893electric distribution facilities to provide service within its
894geographic jurisdiction, and subsequently, without violating any
895then-effective franchise agreement, establishes a governmentally
896owned electric utility system and begins operating such system,
897is not subject to the jurisdiction of the commission over
898territorial disputes.
899     Section 19.  This act shall take effect July 1, 2006.


CODING: Words stricken are deletions; words underlined are additions.