Florida Senate - 2013 SENATOR AMENDMENT Bill No. CS/CS/HB 7127, 2nd Eng. Barcode 899368 LEGISLATIVE ACTION Senate . House . . . Floor: WD/3R . 05/03/2013 03:31 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Brandes moved the following: 1 Senate Amendment to Substitute Amendment (814240) (with 2 title amendment) 3 4 Between lines 249 and 250 5 insert: 6 Section 6. Paragraph (b) of subsection (3) and paragraph 7 (g) of subsection (7) of section 163.01, Florida Statutes, are 8 amended to read: 9 163.01 Florida Interlocal Cooperation Act of 1969.— 10 (3) As used in this section: 11 (b) “Public agency” means a political subdivision, agency, 12 or officer of this state or of any state of the United States, 13 including, but not limited to, state government, county, city, 14 school district, single and multipurpose special district, 15 single and multipurpose public authority, metropolitan or 16 consolidated government, a separate legal entity or 17 administrative entity created under subsection (7), a public 18 transit provider as defined in s. 341.031, an independently 19 elected county officer, ananyagency of the United States 20 Government, a federally recognized Native American tribe, and 21 any similar entity of any other state of the United States. 22 (7) 23 (g)1. Notwithstanding any other provisions of this section, 24 any separate legal entity created under this section, the 25 membership of which is limited to municipalities and counties of 26 the state, and which may include a special district or a public 27 agency of this state in addition to a municipality or county or 28 both, may acquire, own, construct, improve, operate, and manage 29 public facilities, or finance facilities on behalf of any 30 person, relating to a governmental function or purpose, 31 including, but not limited to, wastewater facilities, water or 32 alternative water supply facilities, and water reuse facilities, 33 which may serve populations within or outside of the members of 34 the entity. Notwithstanding s. 367.171(7), any separate legal 35 entity created under this paragraph is not subject to Public 36 Service Commission jurisdiction. The separate legal entity may 37 not provide utility services within the service area of an 38 existing utility system unless it has received the consent of 39 the utility. 40 2. For purposes of this paragraph, the term: 41 a. “Host government” means the governing body of the 42 county, if the largest number of equivalent residential 43 connections currently served by a system of the utility is 44 located in the unincorporated area, or the governing body of a 45 municipality, if the largest number of equivalent residential 46 connections currently served by a system of the utility is 47 located within that municipality’s boundaries. 48 b. “Separate legal entity” means any entity created by 49 interlocal agreement the membership of which is limited to two 50 or more special districts, municipalities,orcounties, or 51 public agencies of the state, but which entity is legally 52 separate and apart from any of its member governments. 53 c. “System” means a water or wastewater facility or group 54 of such facilities owned by one entity or affiliate entities. 55 d. “Utility” means a water or wastewater utility and 56 includes every person, separate legal entity, lessee, trustee, 57 or receiver owning, operating, managing, or controlling a 58 system, or proposing construction of a system, who is providing, 59 or proposes to provide, water or wastewater service to the 60 public for compensation. 61 3. A separate legal entity that seeks to acquire any 62 utility shall notify the host government in writing by certified 63 mail about the contemplated acquisition not less than 30 days 64 before any proposed transfer of ownership, use, or possession of 65 any utility assets by such separate legal entity. The potential 66 acquisition notice shall be provided to the legislative head of 67 the governing body of the host government and to its chief 68 administrative officer and shall provide the name and address of 69 a contact person for the separate legal entity and information 70 identified in s. 367.071(4)(a) concerning the contemplated 71 acquisition. 72 4.a. Within 30 days following receipt of the notice, the 73 host government may adopt a resolution to become a member of the 74 separate legal entity, adopt a resolution to approve the utility 75 acquisition, or adopt a resolution to prohibit the utility 76 acquisition by the separate legal entity if the host government 77 determines that the proposed acquisition is not in the public 78 interest. A resolution adopted by the host government which 79 prohibits the acquisition may include conditions that would make 80 the proposal acceptable to the host government. 81 b. If a host government adopts a membership resolution, the 82 separate legal entity shall accept the host government as a 83 member on the same basis as its existing members before any 84 transfer of ownership, use, or possession of the utility or the 85 utility facilities. If a host government adopts a resolution to 86 approve the utility acquisition, the separate legal entity may 87 complete the acquisition. If a host government adopts a 88 prohibition resolution, the separate legal entity may not 89 acquire the utility within that host government’s territory 90 without the specific consent of the host government by future 91 resolution. If a host government does not adopt a prohibition 92 resolution or an approval resolution, the separate legal entity 93 may proceed to acquire the utility after the 30-day notice 94 period without further notice. 95 5. After the acquisition or construction of any utility 96 systems by a separate legal entity created under this paragraph, 97 revenues or any other income may not be transferred or paid to a 98 member of a separate legal entity, or to any other special 99 district, county,ormunicipality, or public agency of this 100 state, from user fees or other charges or revenues generated 101 from customers that are not physically located within the 102 jurisdictional or service delivery boundaries of the member, 103 special district, county,ormunicipality, or public agency 104 receiving the transfer or payment. Any transfer or payment to a 105 member, special district,or otherlocal government, or public 106 agency of this state must be solely from user fees or other 107 charges or revenues generated from customers that are physically 108 located within the jurisdictional or service delivery boundaries 109 of the member, special district,orlocal government, or public 110 agency receiving the transfer of payment. 111 6. This section is an alternative provision otherwise 112 provided by law as authorized in s. 4, Art. VIII of the State 113 Constitution for any transfer of power as a result of an 114 acquisition of a utility by a separate legal entity from a 115 municipality, county,orspecial district, or public agency of 116 this state. 117 7. The entity may finance or refinance the acquisition, 118 construction, expansion, and improvement of such facilities 119 relating to a governmental function or purpose through the 120 issuance of its bonds, notes, or other obligations under this 121 section or as otherwise authorized by law. The entity has all 122 the powers provided by the interlocal agreement under which it 123 is created or which are necessary to finance, own, operate, or 124 manage the public facility, including, without limitation, the 125 power to establish rates, charges, and fees for products or 126 services provided by it, the power to levy special assessments, 127 the power to sell or finance all or a portion of such facility, 128 and the power to contract with a public or private entity to 129 manage and operate such facilities or to provide or receive 130 facilities, services, or products. Except as may be limited by 131 the interlocal agreement under which the entity is created, all 132 of the privileges, benefits, powers, and terms of s. 125.01, 133 relating to counties, and s. 166.021, relating to 134 municipalities, are fully applicable to the entity. However, 135 neither the entity nor any of its members on behalf of the 136 entity may exercise the power of eminent domain over the 137 facilities or property of any existing water or wastewater plant 138 utility system, nor may the entity acquire title to any water or 139 wastewater plant utility facilities, other facilities, or 140 property which was acquired by the use of eminent domain after 141 the effective date of this act. Bonds, notes, and other 142 obligations issued by the entity are issued on behalf of the 143 public agencies that are members of the entity. 144 8. Any entity created under this section may also issue 145 bond anticipation notes in connection with the authorization, 146 issuance, and sale of bonds. The bonds may be issued as serial 147 bonds or as term bonds or both. Any entity may issue capital 148 appreciation bonds or variable rate bonds. Any bonds, notes, or 149 other obligations must be authorized by resolution of the 150 governing body of the entity and bear the date or dates; mature 151 at the time or times, not exceeding 40 years from their 152 respective dates; bear interest at the rate or rates; be payable 153 at the time or times; be in the denomination; be in the form; 154 carry the registration privileges; be executed in the manner; be 155 payable from the sources and in the medium or payment and at the 156 place; and be subject to the terms of redemption, including 157 redemption prior to maturity, as the resolution may provide. If 158 any officer whose signature, or a facsimile of whose signature, 159 appears on any bonds, notes, or other obligations ceases to be 160 an officer before the delivery of the bonds, notes, or other 161 obligations, the signature or facsimile is valid and sufficient 162 for all purposes as if he or she had remained in office until 163 the delivery. The bonds, notes, or other obligations may be sold 164 at public or private sale for such price as the governing body 165 of the entity shall determine. Pending preparation of the 166 definitive bonds, the entity may issue interim certificates, 167 which shall be exchanged for the definitive bonds. The bonds may 168 be secured by a form of credit enhancement, if any, as the 169 entity deems appropriate. The bonds may be secured by an 170 indenture of trust or trust agreement. In addition, the 171 governing body of the legal entity may delegate, to an officer, 172 official, or agent of the legal entity as the governing body of 173 the legal entity may select, the power to determine the time; 174 manner of sale, public or private; maturities; rate of interest, 175 which may be fixed or may vary at the time and in accordance 176 with a specified formula or method of determination; and other 177 terms and conditions as may be deemed appropriate by the 178 officer, official, or agent so designated by the governing body 179 of the legal entity. However, the amount and maturity of the 180 bonds, notes, or other obligations and the interest rate of the 181 bonds, notes, or other obligations must be within the limits 182 prescribed by the governing body of the legal entity and its 183 resolution delegating to an officer, official, or agent the 184 power to authorize the issuance and sale of the bonds, notes, or 185 other obligations. 186 9. Bonds, notes, or other obligations issued under this 187 paragraph may be validated as provided in chapter 75. The 188 complaint in any action to validate the bonds, notes, or other 189 obligations must be filed only in the Circuit Court for Leon 190 County. The notice required to be published by s. 75.06 must be 191 published in Leon County and in each county that is a member of 192 the entity issuing the bonds, notes, or other obligations, or in 193 which a member of the entity is located, and the complaint and 194 order of the circuit court must be served only on the State 195 Attorney of the Second Judicial Circuit and on the state 196 attorney of each circuit in each county that is a member of the 197 entity issuing the bonds, notes, or other obligations or in 198 which a member of the entity is located. Section 75.04(2) does 199 not apply to a complaint for validation brought by the legal 200 entity. 201 10. The accomplishment of the authorized purposes of a 202 legal entity created under this paragraph is in all respects for 203 the benefit of the people of the state, for the increase of 204 their commerce and prosperity, and for the improvement of their 205 health and living conditions. Since the legal entity will 206 perform essential governmental functions in accomplishing its 207 purposes, the legal entity is not required to pay any taxes or 208 assessments of any kind whatsoever upon any property acquired or 209 used by it for such purposes or upon any revenues at any time 210 received by it. The bonds, notes, and other obligations of an 211 entity, their transfer, and the income therefrom, including any 212 profits made on the sale thereof, are at all times free from 213 taxation of any kind by the state or by any political 214 subdivision or other agency or instrumentality thereof. The 215 exemption granted in this subparagraph is not applicable to any 216 tax imposed by chapter 220 on interest, income, or profits on 217 debt obligations owned by corporations. 218 219 ================= T I T L E A M E N D M E N T ================ 220 And the title is amended as follows: 221 Delete line 3177 222 and insert: 223 circumstances; amending s. 163.01, F.S.; modifying the 224 definition of “public agency” to include a public 225 transit provider; providing that a public agency of 226 this state may have membership in a separate legal 227 entity created under the Florida Interlocal 228 Cooperation Act of 1969; amending s. 316.515, F.S.; 229 providing