Florida Senate - 2021 SENATOR AMENDMENT Bill No. HB 487 Ì899226@Î899226 LEGISLATIVE ACTION Senate . House . . . Floor: 2/AD/2R . Floor: C 04/26/2021 03:06 PM . 04/29/2021 12:23 PM ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Hutson moved the following: 1 Senate Amendment (with title amendment) 2 3 Before line 10 4 insert: 5 Section 1. Paragraph (g) of subsection (7) of section 6 163.01, Florida Statutes, is amended to read: 7 163.01 Florida Interlocal Cooperation Act of 1969.— 8 (7) 9 (g)1. Notwithstanding any other provisions of this section, 10 any separate legal entity created under this section, the 11 membership of which is limited to municipalities and counties of 12 the state, and which may include a special district in addition 13 to a municipality or county or both, may acquire, own, 14 construct, improve, operate, and manage public facilities, or 15 finance facilities on behalf of any person, relating to a 16 governmental function or purpose, including, but not limited to, 17 wastewater facilities, water or alternative water supply 18 facilities, and water reuse facilities, which may serve 19 populations within or outside of the members of the entity. 20 Notwithstanding s. 367.171(7), any separate legal entity created 21 under this paragraph is not subject to Public Service Commission 22 jurisdiction. The separate legal entity may not provide utility 23 services within the service area of an existing utility system 24 unless it has received the consent of the utility. 25 2. For purposes of this paragraph, the term: 26 a. “Host government” means the governing body of the 27 county, if the largest number of equivalent residential 28 connections currently served by a system of the utility is 29 located in the unincorporated area, or the governing body of a 30 municipality, if the largest number of equivalent residential 31 connections currently served by a system of the utility is 32 located within that municipality’s boundaries. 33 b. “Separate legal entity” means any entity created by 34 interlocal agreement the membership of which is limited to two 35 or more special districts, municipalities, or counties of the 36 state, but which entity is legally separate and apart from any 37 of its member governments. 38 c. “System” means a water or wastewater facility or group 39 of such facilities owned by one entity or affiliate entities. 40 d. “Utility” means a water or wastewater utility and 41 includes every person, separate legal entity, lessee, trustee, 42 or receiver owning, operating, managing, or controlling a 43 system, or proposing construction of a system, who is providing, 44 or proposes to provide, water or wastewater service to the 45 public for compensation. 46 3. A separate legal entity that seeks to acquire any 47 utility shall notify the host government in writing by certified 48 mail about the contemplated acquisition not less than 30 days 49 before any proposed transfer of ownership, use, or possession of 50 any utility assets by such separate legal entity. The potential 51 acquisition notice shall be provided to the legislative head of 52 the governing body of the host government and to its chief 53 administrative officer and shall provide the name and address of 54 a contact person for the separate legal entity and information 55 identified in s. 367.071(4)(a) concerning the contemplated 56 acquisition. 57 4.a. Within 30 days following receipt of the notice, the 58 host government may adopt a resolution to become a member of the 59 separate legal entity, adopt a resolution to approve the utility 60 acquisition, or adopt a resolution to prohibit the utility 61 acquisition by the separate legal entity if the host government 62 determines that the proposed acquisition is not in the public 63 interest. A resolution adopted by the host government which 64 prohibits the acquisition may include conditions that would make 65 the proposal acceptable to the host government. 66 b. If a host government adopts a membership resolution, the 67 separate legal entity shall accept the host government as a 68 member on the same basis as its existing members before any 69 transfer of ownership, use, or possession of the utility or the 70 utility facilities. If a host government adopts a resolution to 71 approve the utility acquisition, the separate legal entity may 72 complete the acquisition. If a host government adopts a 73 prohibition resolution, the separate legal entity may not 74 acquire the utility within that host government’s territory 75 without the specific consent of the host government by future 76 resolution. If a host government does not adopt a prohibition 77 resolution or an approval resolution, the separate legal entity 78 may proceed to acquire the utility after the 30-day notice 79 period without further notice. 80 5. After the acquisition or construction of any utility 81 systems by a separate legal entity created under this paragraph, 82 revenues or any other income may not be transferred or paid to a 83 member of a separate legal entity, or to any other special 84 district, county, or municipality, from user fees or other 85 charges or revenues generated from customers that are not 86 physically located within the jurisdictional or service delivery 87 boundaries of the member, special district, county, or 88 municipality receiving the transfer or payment. Any transfer or 89 payment to a member, special district, or other local government 90 must be solely from user fees or other charges or revenues 91 generated from customers that are physically located within the 92 jurisdictional or service delivery boundaries of the member, 93 special district, or local government receiving the transfer of 94 payment. 95 6. This section is an alternative provision otherwise 96 provided by law as authorized in s. 4, Art. VIII of the State 97 Constitution for any transfer of power as a result of an 98 acquisition of a utility by a separate legal entity from a 99 municipality, county, or special district. 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, unless 10 or more years have 125 elapsed since the date of the acquisition by eminent domain. 126 Bonds, notes, and other obligations issued by the entity are 127 issued on behalf of the public agencies that are members of the 128 entity. 129 8. Any entity created under this section may also issue 130 bond anticipation notes in connection with the authorization, 131 issuance, and sale of bonds. The bonds may be issued as serial 132 bonds or as term bonds or both. Any entity may issue capital 133 appreciation bonds or variable rate bonds. Any bonds, notes, or 134 other obligations must be authorized by resolution of the 135 governing body of the entity and bear the date or dates; mature 136 at the time or times, not exceeding 40 years from their 137 respective dates; bear interest at the rate or rates; be payable 138 at the time or times; be in the denomination; be in the form; 139 carry the registration privileges; be executed in the manner; be 140 payable from the sources and in the medium or payment and at the 141 place; and be subject to the terms of redemption, including 142 redemption prior to maturity, as the resolution may provide. If 143 any officer whose signature, or a facsimile of whose signature, 144 appears on any bonds, notes, or other obligations ceases to be 145 an officer before the delivery of the bonds, notes, or other 146 obligations, the signature or facsimile is valid and sufficient 147 for all purposes as if he or she had remained in office until 148 the delivery. The bonds, notes, or other obligations may be sold 149 at public or private sale for such price as the governing body 150 of the entity shall determine. Pending preparation of the 151 definitive bonds, the entity may issue interim certificates, 152 which shall be exchanged for the definitive bonds. The bonds may 153 be secured by a form of credit enhancement, if any, as the 154 entity deems appropriate. The bonds may be secured by an 155 indenture of trust or trust agreement. In addition, the 156 governing body of the legal entity may delegate, to an officer, 157 official, or agent of the legal entity as the governing body of 158 the legal entity may select, the power to determine the time; 159 manner of sale, public or private; maturities; rate of interest, 160 which may be fixed or may vary at the time and in accordance 161 with a specified formula or method of determination; and other 162 terms and conditions as may be deemed appropriate by the 163 officer, official, or agent so designated by the governing body 164 of the legal entity. However, the amount and maturity of the 165 bonds, notes, or other obligations and the interest rate of the 166 bonds, notes, or other obligations must be within the limits 167 prescribed by the governing body of the legal entity and its 168 resolution delegating to an officer, official, or agent the 169 power to authorize the issuance and sale of the bonds, notes, or 170 other obligations. 171 9. Bonds, notes, or other obligations issued under this 172 paragraph may be validated as provided in chapter 75. The 173 complaint in any action to validate the bonds, notes, or other 174 obligations must be filed only in the Circuit Court for Leon 175 County. The notice required to be published by s. 75.06 must be 176 published in Leon County and in each county that is a member of 177 the entity issuing the bonds, notes, or other obligations, or in 178 which a member of the entity is located, and the complaint and 179 order of the circuit court must be served only on the State 180 Attorney of the Second Judicial Circuit and on the state 181 attorney of each circuit in each county that is a member of the 182 entity issuing the bonds, notes, or other obligations or in 183 which a member of the entity is located. Section 75.04(2) does 184 not apply to a complaint for validation brought by the legal 185 entity. 186 10. The accomplishment of the authorized purposes of a 187 legal entity created under this paragraph is in all respects for 188 the benefit of the people of the state, for the increase of 189 their commerce and prosperity, and for the improvement of their 190 health and living conditions. Since the legal entity will 191 perform essential governmental functions for the public health, 192 safety, and welfare in accomplishing its purposes, the legal 193 entity is not required to pay any taxes or assessments of any 194 kind whatsoever upon any property acquired or used by it for 195 such purposes or upon any revenues at any time received by it, 196 whether the property is within or outside the jurisdiction of 197 members of the entity. The exemption provided in this paragraph 198 applies regardless of whether the separate legal entity enters 199 into agreements with private firms or entities to manage, 200 operate, or improve the utilities owned by the separate legal 201 entity. The bonds, notes, and other obligations of an entity, 202 their transfer, and the income therefrom, including any profits 203 made on the sale thereof, are at all times free from taxation of 204 any kind by the state or by any political subdivision or other 205 agency or instrumentality thereof. The exemption granted in this 206 subparagraph is not applicable to any tax imposed by chapter 220 207 on interest, income, or profits on debt obligations owned by 208 corporations. 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 2 and 3 213 insert: 214 amending s. 163.01, F.S.; providing an exception to a 215 prohibition against legal entities and their members 216 exercising the power of eminent domain over or 217 acquiring title to certain facilities or property;