SB 1480                                          First Engrossed
       
       
       
       
       
       
       
       
       20131480e1
       
    1                        A bill to be entitled                      
    2         An act relating to interlocal agreements; amending s.
    3         163.01, F.S.; modifying the definition of “public
    4         agency” to include a public transit provider;
    5         providing that a public agency of this state may have
    6         membership in a separate legal entity created under
    7         the Florida Interlocal Cooperation Act of 1969;
    8         providing an effective date.
    9  
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Paragraph (b) of subsection (3) and paragraph
   13  (g) of subsection (7) of section 163.01, Florida Statutes, are
   14  amended to read:
   15         163.01 Florida Interlocal Cooperation Act of 1969.—
   16         (3) As used in this section:
   17         (b) “Public agency” means a political subdivision, agency,
   18  or officer of this state or of any state of the United States,
   19  including, but not limited to, state government, county, city,
   20  school district, single and multipurpose special district,
   21  single and multipurpose public authority, metropolitan or
   22  consolidated government, a separate legal entity or
   23  administrative entity created under subsection (7), a public
   24  transit provider as defined in s. 341.031, an independently
   25  elected county officer, an any agency of the United States
   26  Government, a federally recognized Native American tribe, and
   27  any similar entity of any other state of the United States.
   28         (7)
   29         (g)1. Notwithstanding any other provisions of this section,
   30  any separate legal entity created under this section, the
   31  membership of which is limited to municipalities and counties of
   32  the state, and which may include a special district or a public
   33  agency of this state in addition to a municipality or county or
   34  both, may acquire, own, construct, improve, operate, and manage
   35  public facilities, or finance facilities on behalf of any
   36  person, relating to a governmental function or purpose,
   37  including, but not limited to, wastewater facilities, water or
   38  alternative water supply facilities, and water reuse facilities,
   39  which may serve populations within or outside of the members of
   40  the entity. Notwithstanding s. 367.171(7), any separate legal
   41  entity created under this paragraph is not subject to Public
   42  Service Commission jurisdiction. The separate legal entity may
   43  not provide utility services within the service area of an
   44  existing utility system unless it has received the consent of
   45  the utility.
   46         2. For purposes of this paragraph, the term:
   47         a. “Host government” means the governing body of the
   48  county, if the largest number of equivalent residential
   49  connections currently served by a system of the utility is
   50  located in the unincorporated area, or the governing body of a
   51  municipality, if the largest number of equivalent residential
   52  connections currently served by a system of the utility is
   53  located within that municipality’s boundaries.
   54         b. “Separate legal entity” means any entity created by
   55  interlocal agreement the membership of which is limited to two
   56  or more special districts, municipalities, or counties, or
   57  public agencies of the state, but which entity is legally
   58  separate and apart from any of its member governments.
   59         c. “System” means a water or wastewater facility or group
   60  of such facilities owned by one entity or affiliate entities.
   61         d. “Utility” means a water or wastewater utility and
   62  includes every person, separate legal entity, lessee, trustee,
   63  or receiver owning, operating, managing, or controlling a
   64  system, or proposing construction of a system, who is providing,
   65  or proposes to provide, water or wastewater service to the
   66  public for compensation.
   67         3. A separate legal entity that seeks to acquire any
   68  utility shall notify the host government in writing by certified
   69  mail about the contemplated acquisition not less than 30 days
   70  before any proposed transfer of ownership, use, or possession of
   71  any utility assets by such separate legal entity. The potential
   72  acquisition notice shall be provided to the legislative head of
   73  the governing body of the host government and to its chief
   74  administrative officer and shall provide the name and address of
   75  a contact person for the separate legal entity and information
   76  identified in s. 367.071(4)(a) concerning the contemplated
   77  acquisition.
   78         4.a. Within 30 days following receipt of the notice, the
   79  host government may adopt a resolution to become a member of the
   80  separate legal entity, adopt a resolution to approve the utility
   81  acquisition, or adopt a resolution to prohibit the utility
   82  acquisition by the separate legal entity if the host government
   83  determines that the proposed acquisition is not in the public
   84  interest. A resolution adopted by the host government which
   85  prohibits the acquisition may include conditions that would make
   86  the proposal acceptable to the host government.
   87         b. If a host government adopts a membership resolution, the
   88  separate legal entity shall accept the host government as a
   89  member on the same basis as its existing members before any
   90  transfer of ownership, use, or possession of the utility or the
   91  utility facilities. If a host government adopts a resolution to
   92  approve the utility acquisition, the separate legal entity may
   93  complete the acquisition. If a host government adopts a
   94  prohibition resolution, the separate legal entity may not
   95  acquire the utility within that host government’s territory
   96  without the specific consent of the host government by future
   97  resolution. If a host government does not adopt a prohibition
   98  resolution or an approval resolution, the separate legal entity
   99  may proceed to acquire the utility after the 30-day notice
  100  period without further notice.
  101         5. After the acquisition or construction of any utility
  102  systems by a separate legal entity created under this paragraph,
  103  revenues or any other income may not be transferred or paid to a
  104  member of a separate legal entity, or to any other special
  105  district, county, or municipality, or public agency of this
  106  state, from user fees or other charges or revenues generated
  107  from customers that are not physically located within the
  108  jurisdictional or service delivery boundaries of the member,
  109  special district, county, or municipality, or public agency
  110  receiving the transfer or payment. Any transfer or payment to a
  111  member, special district, or other local government, or public
  112  agency of this state must be solely from user fees or other
  113  charges or revenues generated from customers that are physically
  114  located within the jurisdictional or service delivery boundaries
  115  of the member, special district, or local government, or public
  116  agency receiving the transfer of payment.
  117         6. This section is an alternative provision otherwise
  118  provided by law as authorized in s. 4, Art. VIII of the State
  119  Constitution for any transfer of power as a result of an
  120  acquisition of a utility by a separate legal entity from a
  121  municipality, county, or special district, or public agency of
  122  this state.
  123         7. The entity may finance or refinance the acquisition,
  124  construction, expansion, and improvement of such facilities
  125  relating to a governmental function or purpose through the
  126  issuance of its bonds, notes, or other obligations under this
  127  section or as otherwise authorized by law. The entity has all
  128  the powers provided by the interlocal agreement under which it
  129  is created or which are necessary to finance, own, operate, or
  130  manage the public facility, including, without limitation, the
  131  power to establish rates, charges, and fees for products or
  132  services provided by it, the power to levy special assessments,
  133  the power to sell or finance all or a portion of such facility,
  134  and the power to contract with a public or private entity to
  135  manage and operate such facilities or to provide or receive
  136  facilities, services, or products. Except as may be limited by
  137  the interlocal agreement under which the entity is created, all
  138  of the privileges, benefits, powers, and terms of s. 125.01,
  139  relating to counties, and s. 166.021, relating to
  140  municipalities, are fully applicable to the entity. However,
  141  neither the entity nor any of its members on behalf of the
  142  entity may exercise the power of eminent domain over the
  143  facilities or property of any existing water or wastewater plant
  144  utility system, nor may the entity acquire title to any water or
  145  wastewater plant utility facilities, other facilities, or
  146  property which was acquired by the use of eminent domain after
  147  the effective date of this act. Bonds, notes, and other
  148  obligations issued by the entity are issued on behalf of the
  149  public agencies that are members of the entity.
  150         8. Any entity created under this section may also issue
  151  bond anticipation notes in connection with the authorization,
  152  issuance, and sale of bonds. The bonds may be issued as serial
  153  bonds or as term bonds or both. Any entity may issue capital
  154  appreciation bonds or variable rate bonds. Any bonds, notes, or
  155  other obligations must be authorized by resolution of the
  156  governing body of the entity and bear the date or dates; mature
  157  at the time or times, not exceeding 40 years from their
  158  respective dates; bear interest at the rate or rates; be payable
  159  at the time or times; be in the denomination; be in the form;
  160  carry the registration privileges; be executed in the manner; be
  161  payable from the sources and in the medium or payment and at the
  162  place; and be subject to the terms of redemption, including
  163  redemption prior to maturity, as the resolution may provide. If
  164  any officer whose signature, or a facsimile of whose signature,
  165  appears on any bonds, notes, or other obligations ceases to be
  166  an officer before the delivery of the bonds, notes, or other
  167  obligations, the signature or facsimile is valid and sufficient
  168  for all purposes as if he or she had remained in office until
  169  the delivery. The bonds, notes, or other obligations may be sold
  170  at public or private sale for such price as the governing body
  171  of the entity shall determine. Pending preparation of the
  172  definitive bonds, the entity may issue interim certificates,
  173  which shall be exchanged for the definitive bonds. The bonds may
  174  be secured by a form of credit enhancement, if any, as the
  175  entity deems appropriate. The bonds may be secured by an
  176  indenture of trust or trust agreement. In addition, the
  177  governing body of the legal entity may delegate, to an officer,
  178  official, or agent of the legal entity as the governing body of
  179  the legal entity may select, the power to determine the time;
  180  manner of sale, public or private; maturities; rate of interest,
  181  which may be fixed or may vary at the time and in accordance
  182  with a specified formula or method of determination; and other
  183  terms and conditions as may be deemed appropriate by the
  184  officer, official, or agent so designated by the governing body
  185  of the legal entity. However, the amount and maturity of the
  186  bonds, notes, or other obligations and the interest rate of the
  187  bonds, notes, or other obligations must be within the limits
  188  prescribed by the governing body of the legal entity and its
  189  resolution delegating to an officer, official, or agent the
  190  power to authorize the issuance and sale of the bonds, notes, or
  191  other obligations.
  192         9. Bonds, notes, or other obligations issued under this
  193  paragraph may be validated as provided in chapter 75. The
  194  complaint in any action to validate the bonds, notes, or other
  195  obligations must be filed only in the Circuit Court for Leon
  196  County. The notice required to be published by s. 75.06 must be
  197  published in Leon County and in each county that is a member of
  198  the entity issuing the bonds, notes, or other obligations, or in
  199  which a member of the entity is located, and the complaint and
  200  order of the circuit court must be served only on the State
  201  Attorney of the Second Judicial Circuit and on the state
  202  attorney of each circuit in each county that is a member of the
  203  entity issuing the bonds, notes, or other obligations or in
  204  which a member of the entity is located. Section 75.04(2) does
  205  not apply to a complaint for validation brought by the legal
  206  entity.
  207         10. The accomplishment of the authorized purposes of a
  208  legal entity created under this paragraph is in all respects for
  209  the benefit of the people of the state, for the increase of
  210  their commerce and prosperity, and for the improvement of their
  211  health and living conditions. Since the legal entity will
  212  perform essential governmental functions in accomplishing its
  213  purposes, the legal entity is not required to pay any taxes or
  214  assessments of any kind whatsoever upon any property acquired or
  215  used by it for such purposes or upon any revenues at any time
  216  received by it. The bonds, notes, and other obligations of an
  217  entity, their transfer, and the income therefrom, including any
  218  profits made on the sale thereof, are at all times free from
  219  taxation of any kind by the state or by any political
  220  subdivision or other agency or instrumentality thereof. The
  221  exemption granted in this subparagraph is not applicable to any
  222  tax imposed by chapter 220 on interest, income, or profits on
  223  debt obligations owned by corporations.
  224         Section 2. This act shall take effect July 1, 2013.