Florida Senate - 2013 SENATOR AMENDMENT Bill No. SB 1480 Barcode 526356 LEGISLATIVE ACTION Senate . House . . . Floor: 2/AD/2R . 04/16/2013 12:05 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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,orcounties, 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,ormunicipality, 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,ormunicipality, or public agency 87 receiving the transfer or payment. Any transfer or payment to a 88 member, special district,or otherlocal 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,orlocal 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,orspecial 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;