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, ananyagency 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,orcounties, 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,ormunicipality, 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,ormunicipality, or public agency 110 receiving the transfer or payment. Any transfer or payment to a 111 member, special district,or otherlocal 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,orlocal 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,orspecial 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.