Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. SB 1480
       
       
       
       
       
       
                                Barcode 526356                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 2/AD/2R         .                                
             04/16/2013 12:05 PM       .                                
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       Senator Latvala moved the following:
       
    1         Senate Amendment (with directory and title amendments)
    2  
    3         Between lines 23 and 24
    4  insert:
    5         (7)
    6         (g)1. Notwithstanding any other provisions of this section,
    7  any separate legal entity created under this section, the
    8  membership of which is limited to municipalities and counties of
    9  the state, and which may include a special district or a public
   10  agency of this state in addition to a municipality or county or
   11  both, may acquire, own, construct, improve, operate, and manage
   12  public facilities, or finance facilities on behalf of any
   13  person, relating to a governmental function or purpose,
   14  including, but not limited to, wastewater facilities, water or
   15  alternative water supply facilities, and water reuse facilities,
   16  which may serve populations within or outside of the members of
   17  the entity. Notwithstanding s. 367.171(7), any separate legal
   18  entity created under this paragraph is not subject to Public
   19  Service Commission jurisdiction. The separate legal entity may
   20  not provide utility services within the service area of an
   21  existing utility system unless it has received the consent of
   22  the utility.
   23         2. For purposes of this paragraph, the term:
   24         a. “Host government” means the governing body of the
   25  county, if the largest number of equivalent residential
   26  connections currently served by a system of the utility is
   27  located in the unincorporated area, or the governing body of a
   28  municipality, if the largest number of equivalent residential
   29  connections currently served by a system of the utility is
   30  located within that municipality’s boundaries.
   31         b. “Separate legal entity” means any entity created by
   32  interlocal agreement the membership of which is limited to two
   33  or more special districts, municipalities, or counties, or
   34  public agencies of the state, but which entity is legally
   35  separate and apart from any of its member governments.
   36         c. “System” means a water or wastewater facility or group
   37  of such facilities owned by one entity or affiliate entities.
   38         d. “Utility” means a water or wastewater utility and
   39  includes every person, separate legal entity, lessee, trustee,
   40  or receiver owning, operating, managing, or controlling a
   41  system, or proposing construction of a system, who is providing,
   42  or proposes to provide, water or wastewater service to the
   43  public for compensation.
   44         3. A separate legal entity that seeks to acquire any
   45  utility shall notify the host government in writing by certified
   46  mail about the contemplated acquisition not less than 30 days
   47  before any proposed transfer of ownership, use, or possession of
   48  any utility assets by such separate legal entity. The potential
   49  acquisition notice shall be provided to the legislative head of
   50  the governing body of the host government and to its chief
   51  administrative officer and shall provide the name and address of
   52  a contact person for the separate legal entity and information
   53  identified in s. 367.071(4)(a) concerning the contemplated
   54  acquisition.
   55         4.a. Within 30 days following receipt of the notice, the
   56  host government may adopt a resolution to become a member of the
   57  separate legal entity, adopt a resolution to approve the utility
   58  acquisition, or adopt a resolution to prohibit the utility
   59  acquisition by the separate legal entity if the host government
   60  determines that the proposed acquisition is not in the public
   61  interest. A resolution adopted by the host government which
   62  prohibits the acquisition may include conditions that would make
   63  the proposal acceptable to the host government.
   64         b. If a host government adopts a membership resolution, the
   65  separate legal entity shall accept the host government as a
   66  member on the same basis as its existing members before any
   67  transfer of ownership, use, or possession of the utility or the
   68  utility facilities. If a host government adopts a resolution to
   69  approve the utility acquisition, the separate legal entity may
   70  complete the acquisition. If a host government adopts a
   71  prohibition resolution, the separate legal entity may not
   72  acquire the utility within that host government’s territory
   73  without the specific consent of the host government by future
   74  resolution. If a host government does not adopt a prohibition
   75  resolution or an approval resolution, the separate legal entity
   76  may proceed to acquire the utility after the 30-day notice
   77  period without further notice.
   78         5. After the acquisition or construction of any utility
   79  systems by a separate legal entity created under this paragraph,
   80  revenues or any other income may not be transferred or paid to a
   81  member of a separate legal entity, or to any other special
   82  district, county, or municipality, or public agency of this
   83  state, from user fees or other charges or revenues generated
   84  from customers that are not physically located within the
   85  jurisdictional or service delivery boundaries of the member,
   86  special district, county, or municipality, or public agency
   87  receiving the transfer or payment. Any transfer or payment to a
   88  member, special district, or other local government, or public
   89  agency of this state must be solely from user fees or other
   90  charges or revenues generated from customers that are physically
   91  located within the jurisdictional or service delivery boundaries
   92  of the member, special district, or local government, or public
   93  agency receiving the transfer of payment.
   94         6. This section is an alternative provision otherwise
   95  provided by law as authorized in s. 4, Art. VIII of the State
   96  Constitution for any transfer of power as a result of an
   97  acquisition of a utility by a separate legal entity from a
   98  municipality, county, or special district, or public agency of
   99  this state.
  100         7. The entity may finance or refinance the acquisition,
  101  construction, expansion, and improvement of such facilities
  102  relating to a governmental function or purpose through the
  103  issuance of its bonds, notes, or other obligations under this
  104  section or as otherwise authorized by law. The entity has all
  105  the powers provided by the interlocal agreement under which it
  106  is created or which are necessary to finance, own, operate, or
  107  manage the public facility, including, without limitation, the
  108  power to establish rates, charges, and fees for products or
  109  services provided by it, the power to levy special assessments,
  110  the power to sell or finance all or a portion of such facility,
  111  and the power to contract with a public or private entity to
  112  manage and operate such facilities or to provide or receive
  113  facilities, services, or products. Except as may be limited by
  114  the interlocal agreement under which the entity is created, all
  115  of the privileges, benefits, powers, and terms of s. 125.01,
  116  relating to counties, and s. 166.021, relating to
  117  municipalities, are fully applicable to the entity. However,
  118  neither the entity nor any of its members on behalf of the
  119  entity may exercise the power of eminent domain over the
  120  facilities or property of any existing water or wastewater plant
  121  utility system, nor may the entity acquire title to any water or
  122  wastewater plant utility facilities, other facilities, or
  123  property which was acquired by the use of eminent domain after
  124  the effective date of this act. Bonds, notes, and other
  125  obligations issued by the entity are issued on behalf of the
  126  public agencies that are members of the entity.
  127         8. Any entity created under this section may also issue
  128  bond anticipation notes in connection with the authorization,
  129  issuance, and sale of bonds. The bonds may be issued as serial
  130  bonds or as term bonds or both. Any entity may issue capital
  131  appreciation bonds or variable rate bonds. Any bonds, notes, or
  132  other obligations must be authorized by resolution of the
  133  governing body of the entity and bear the date or dates; mature
  134  at the time or times, not exceeding 40 years from their
  135  respective dates; bear interest at the rate or rates; be payable
  136  at the time or times; be in the denomination; be in the form;
  137  carry the registration privileges; be executed in the manner; be
  138  payable from the sources and in the medium or payment and at the
  139  place; and be subject to the terms of redemption, including
  140  redemption prior to maturity, as the resolution may provide. If
  141  any officer whose signature, or a facsimile of whose signature,
  142  appears on any bonds, notes, or other obligations ceases to be
  143  an officer before the delivery of the bonds, notes, or other
  144  obligations, the signature or facsimile is valid and sufficient
  145  for all purposes as if he or she had remained in office until
  146  the delivery. The bonds, notes, or other obligations may be sold
  147  at public or private sale for such price as the governing body
  148  of the entity shall determine. Pending preparation of the
  149  definitive bonds, the entity may issue interim certificates,
  150  which shall be exchanged for the definitive bonds. The bonds may
  151  be secured by a form of credit enhancement, if any, as the
  152  entity deems appropriate. The bonds may be secured by an
  153  indenture of trust or trust agreement. In addition, the
  154  governing body of the legal entity may delegate, to an officer,
  155  official, or agent of the legal entity as the governing body of
  156  the legal entity may select, the power to determine the time;
  157  manner of sale, public or private; maturities; rate of interest,
  158  which may be fixed or may vary at the time and in accordance
  159  with a specified formula or method of determination; and other
  160  terms and conditions as may be deemed appropriate by the
  161  officer, official, or agent so designated by the governing body
  162  of the legal entity. However, the amount and maturity of the
  163  bonds, notes, or other obligations and the interest rate of the
  164  bonds, notes, or other obligations must be within the limits
  165  prescribed by the governing body of the legal entity and its
  166  resolution delegating to an officer, official, or agent the
  167  power to authorize the issuance and sale of the bonds, notes, or
  168  other obligations.
  169         9. Bonds, notes, or other obligations issued under this
  170  paragraph may be validated as provided in chapter 75. The
  171  complaint in any action to validate the bonds, notes, or other
  172  obligations must be filed only in the Circuit Court for Leon
  173  County. The notice required to be published by s. 75.06 must be
  174  published in Leon County and in each county that is a member of
  175  the entity issuing the bonds, notes, or other obligations, or in
  176  which a member of the entity is located, and the complaint and
  177  order of the circuit court must be served only on the State
  178  Attorney of the Second Judicial Circuit and on the state
  179  attorney of each circuit in each county that is a member of the
  180  entity issuing the bonds, notes, or other obligations or in
  181  which a member of the entity is located. Section 75.04(2) does
  182  not apply to a complaint for validation brought by the legal
  183  entity.
  184         10. The accomplishment of the authorized purposes of a
  185  legal entity created under this paragraph is in all respects for
  186  the benefit of the people of the state, for the increase of
  187  their commerce and prosperity, and for the improvement of their
  188  health and living conditions. Since the legal entity will
  189  perform essential governmental functions in accomplishing its
  190  purposes, the legal entity is not required to pay any taxes or
  191  assessments of any kind whatsoever upon any property acquired or
  192  used by it for such purposes or upon any revenues at any time
  193  received by it. The bonds, notes, and other obligations of an
  194  entity, their transfer, and the income therefrom, including any
  195  profits made on the sale thereof, are at all times free from
  196  taxation of any kind by the state or by any political
  197  subdivision or other agency or instrumentality thereof. The
  198  exemption granted in this subparagraph is not applicable to any
  199  tax imposed by chapter 220 on interest, income, or profits on
  200  debt obligations owned by corporations.
  201  
  202  ====== D I R E C T O R Y  C L A U S E  A M E N D M E N T ======
  203         And the directory clause is amended as follows:
  204         Delete lines 9 - 10
  205  and insert:
  206         Section 1. Paragraph (b) of subsection (3) and paragraph
  207  (g) of subsection (7) of section 163.01, Florida Statutes, are
  208  amended to read:
  209  
  210  ================= T I T L E  A M E N D M E N T ================
  211         And the title is amended as follows:
  212         Between lines 4 and 5
  213  insert:
  214         providing that a public agency of this state may have
  215         membership in a separate legal entity created under
  216         the Florida Interlocal Cooperation Act of 1969;