Bill Amendment: FL S0324 | 2016 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Utility Projects
Status: 2016-03-09 - Laid on Table, companion bill(s) passed, see CS/HB 347 (Ch. 2016-124) [S0324 Detail]
Download: Florida-2016-S0324-Senate_Committee_Substitue_Amendment_737306_Amendment_806856_.html
Bill Title: Utility Projects
Status: 2016-03-09 - Laid on Table, companion bill(s) passed, see CS/HB 347 (Ch. 2016-124) [S0324 Detail]
Download: Florida-2016-S0324-Senate_Committee_Substitue_Amendment_737306_Amendment_806856_.html
Florida Senate - 2016 COMMITTEE AMENDMENT Bill No. SB 324 Ì737306'Î737306 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/08/2016 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Finance and Tax (Simpson) recommended the following: 1 Senate Substitute for Amendment (806856) (with title 2 amendment) 3 4 Delete lines 73 - 556 5 and insert: 6 163.01(7)(g), Florida Statutes, or a separate legal entity 7 created by one or more local agencies. The term includes any 8 successor to the powers and functions of such an entity. 9 (b) “Cost,” as applied to a utility project or a portion of 10 a utility project financed under this section, means: 11 1. Any part of the expense of constructing, renovating, or 12 acquiring lands, structures, real or personal property, rights, 13 rights-of-way, franchises, easements, and interests acquired or 14 used for a utility project; 15 2. The expense of demolishing or removing any buildings or 16 structures on acquired land, including the expense of acquiring 17 any lands to which the buildings or structures may be moved, and 18 the cost of all machinery and equipment used for the demolition 19 or removal; 20 3. Finance charges; 21 4. Interest, as determined by the authority; 22 5. Provisions for working capital and debt service 23 reserves; 24 6. Expenses for extensions, enlargements, additions, 25 replacements, renovations, and improvements; 26 7. Expenses for architectural, engineering, financial, 27 accounting, and legal services, plans, specifications, 28 estimates, and administration; or 29 8. Any other expenses necessary or incidental to 30 determining the feasibility of constructing a utility project or 31 incidental to the construction, acquisition, or financing of a 32 utility project. 33 (c) “Customer” means a person receiving water or wastewater 34 service from a publicly owned utility. 35 (d) “Finance” or “financing” includes refinancing. 36 (e) “Financing cost” means: 37 1. Interest and redemption premiums that are payable on 38 utility cost containment bonds; 39 2. The cost of retiring the principal of utility cost 40 containment bonds, whether at maturity, including acceleration 41 of maturity upon an event of default, or upon redemption, 42 including sinking fund redemption; 43 3. The cost related to issuing or servicing utility cost 44 containment bonds, including any payment under an interest rate 45 swap agreement and any type of fee; 46 4. A payment or expense associated with a bond insurance 47 policy; financial guaranty; contract, agreement, or other credit 48 or liquidity enhancement for bonds; or contract, agreement, or 49 other financial agreement entered into in connection with 50 utility cost containment bonds; 51 5. Any coverage charges; or 52 6. The funding of one or more reserve accounts relating to 53 utility cost containment bonds. 54 (f) “Financing resolution” means a resolution adopted by 55 the governing body of an authority that provides for the 56 financing or refinancing of a utility project with utility cost 57 containment bonds and that imposes a utility project charge in 58 connection with the utility cost containment bonds in accordance 59 with subsection (4). A financing resolution may be separate from 60 a resolution authorizing the issuance of the bonds. 61 (g) “Governing body” means the body that governs a local 62 agency. 63 (h) “Local agency” means a member of the authority, or an 64 agency or subdivision of that member, which is sponsoring or 65 refinancing a utility project, or any municipality, county, 66 authority, special district, public corporation, regional water 67 authority, or other governmental entity of the state that is 68 sponsoring or refinancing a utility project. 69 (i) “Public utility services” means water or wastewater 70 services provided by a publicly owned utility. The term does not 71 include communications services, as defined in s. 202.11, 72 Florida Statutes, Internet access services, or information 73 services. 74 (j) “Publicly owned utility” means a utility providing 75 retail or wholesale water or wastewater services which is owned 76 and operated by a local agency. The term includes any successor 77 to the powers and functions of such a utility. 78 (k) “Revenue” means income and receipts of the authority 79 related to the financing of utility projects and issuance of 80 utility cost containment bonds, including any of the following: 81 1. Bond purchase agreements; 82 2. Bonds acquired by the authority; 83 3. Installment sales agreements and other revenue-producing 84 agreements entered into by the authority; 85 4. Utility projects financed or refinanced by the 86 authority; 87 5. Grants and other sources of income; 88 6. Moneys paid by a local agency; 89 7. Interlocal agreements with a local agency, including all 90 service agreements; or 91 8. Interest or other income from any investment of money in 92 any fund or account established for the payment of principal, 93 interest, or premiums on utility cost containment bonds, or the 94 deposit of proceeds of utility cost containment bonds. 95 (l) “Utility cost containment bonds” means bonds, notes, 96 commercial paper, variable rate securities, and any other 97 evidence of indebtedness issued by an authority the proceeds of 98 which are used directly or indirectly to pay or reimburse a 99 local agency or its publicly owned utility for the costs of a 100 utility project and which are secured by a pledge of, and are 101 payable from, utility project property. 102 (m) “Utility project” means the acquisition, construction, 103 installation, retrofitting, rebuilding, or other addition to or 104 improvement of any equipment, device, structure, process, 105 facility, technology, rights, or property located within or 106 outside this state which is used in connection with the 107 operations of a publicly owned utility. 108 (n) “Utility project charge” means a charge levied on 109 customers of a publicly owned utility to pay the financing costs 110 of utility cost containment bonds issued under subsection (4). 111 The term includes any adjustments to the utility project charge 112 made under subsection (5). 113 (o) “Utility project property” means the property right 114 created pursuant to subsection (6). The term does not include 115 any interest in a customer’s real or personal property but 116 includes the right, title, and interest of an authority in any 117 of the following: 118 1. The financing resolution, the utility project charge, 119 and any adjustment to the utility project charge established in 120 accordance with subsection (5); 121 2. The financing costs of the utility cost containment 122 bonds and all revenues, and all collections, claims, payments, 123 moneys, or proceeds for, or arising from, the utility project 124 charge; or 125 3. All rights to obtain adjustments to the utility project 126 charge pursuant to subsection (5). 127 (3) UTILITY PROJECTS.— 128 (a) A local agency that owns and operates a publicly owned 129 utility may apply to an authority to finance the costs of a 130 utility project using the proceeds of utility cost containment 131 bonds. In its application to the authority, the local agency 132 shall specify the utility project to be financed by the utility 133 cost containment bonds and the maximum principal amount, the 134 maximum interest rate, and the maximum stated terms of the 135 utility cost containment bonds. 136 (b) A local agency may not apply to an authority for the 137 financing of a utility project under this section unless the 138 governing body has determined, in a duly noticed public meeting, 139 all of the following: 140 1. The project to be financed is a utility project. 141 2. The local agency will finance costs of the utility 142 project, and the costs associated with the financing will be 143 paid from utility project property, including the utility 144 project charge for the utility cost containment bonds. 145 3. Based on the best information available to the governing 146 body, the rates charged to the local agency’s retail customers 147 by the publicly owned utility, including the utility project 148 charge resulting from the financing of the utility project with 149 utility cost containment bonds, are expected to be lower than 150 the rates that would be charged if the project were financed 151 with bonds payable from revenues of the publicly owned utility. 152 (c) A determination by the governing body that a project to 153 be financed with utility cost containment bonds is a utility 154 project is final and conclusive, and the utility cost 155 containment bonds issued to finance the utility project and the 156 utility project charge are valid and enforceable as set forth in 157 the financing resolution and the documents relating to the 158 utility cost containment bonds. 159 (d) If a local agency that has outstanding utility cost 160 containment bonds ceases to operate a water or wastewater 161 utility, directly or through its publicly owned utility, 162 references in this section to the local agency or to its 163 publicly owned utility must be to the successor entity. The 164 successor entity shall assume and perform all obligations of the 165 local agency and its publicly owned utility required by this 166 section and shall assume the servicing agreement required under 167 subsection (4) while the utility cost containment bonds remain 168 outstanding. 169 (4) FINANCING UTILITY PROJECTS.— 170 (a) An authority may issue utility cost containment bonds 171 to finance or refinance utility projects; refinance debt of a 172 local agency incurred in financing or refinancing utility 173 projects, provided such refinancing results in present value 174 savings to the local agency; or, with the approval of the local 175 agency, refinance previously issued utility cost containment 176 bonds. 177 1. To finance a utility project, the authority may: 178 a. Form a single-purpose limited liability company and 179 authorize the company to adopt the financing resolution of such 180 utility project; or 181 b. Create a new single-purpose entity by interlocal 182 agreement under s. 163.01, Florida Statutes, the membership of 183 which shall consist of the authority and two or more of its 184 members or other public agencies. 185 2. A single-purpose limited liability company or a single 186 purpose entity may be created by the authority solely for the 187 purpose of performing the duties and responsibilities of the 188 authority specified in this section and constitutes an authority 189 for all purposes of this section. Reference to the authority 190 includes a company or entity created under this paragraph. 191 (b) The governing body of an authority that is financing 192 the costs of a utility project shall adopt a financing 193 resolution and shall impose a utility project charge as 194 described in subsection (5). All provisions of a financing 195 resolution adopted pursuant to this section are binding on the 196 authority. 197 1. The financing resolution must: 198 a. Provide a brief description of the financial calculation 199 method the authority will use in determining the utility project 200 charge. The calculation method must include a periodic 201 adjustment methodology to be applied at least annually to the 202 utility project charge. The authority shall establish the 203 allocation of the utility project charge among classes of 204 customers of the publicly owned utility. The decision of the 205 authority is final and conclusive, and the method of calculating 206 the utility project charge and the periodic adjustment may not 207 be changed; 208 b. Require each customer in the class or classes of 209 customers specified in the financing resolution who receives 210 water or wastewater service through the publicly owned utility 211 to pay the utility project charge regardless of whether the 212 customer has an agreement to receive water or wastewater service 213 from a person other than the publicly owned utility; 214 c. Require that the utility project charge be charged 215 separately from other charges on the bill of customers of the 216 publicly owned utility in the class or classes of customers 217 specified in the financing resolution; and 218 d. Require that the authority enter into a servicing 219 agreement with the local agency or its publicly owned utility to 220 collect the utility project charge. 221 2. The authority may require in the financing resolution 222 that, in the event of a default by the local agency or its 223 publicly owned utility with respect to revenues from the utility 224 project property, the authority, upon application by the 225 beneficiaries of the statutory lien as set forth in subsection 226 (6), shall order the sequestration and payment to the 227 beneficiaries of revenues arising from utility project property. 228 This subparagraph does not limit any other remedies available to 229 the beneficiaries by reason of default. 230 (c) An authority has all the powers provided in this 231 section and s. 163.01(7)(g), Florida Statutes. 232 (d) Each authority shall work with local agencies that 233 request assistance to determine the most cost-effective manner 234 of financing regional water projects. If the entities determine 235 that the issuance of utility cost containment bonds will result 236 in lower financing costs for a project, the authority shall 237 cooperate with such local agencies and, if requested by the 238 local agencies, issue utility cost containment bonds as provided 239 in this section. 240 (5) UTILITY PROJECT CHARGE.— 241 (a) The authority shall impose a sufficient utility project 242 charge, based on estimates of water or wastewater service usage, 243 to ensure timely payment of all financing costs with respect to 244 utility cost containment bonds. The local agency or its publicly 245 owned utility shall provide the authority with information 246 concerning the publicly owned utility which may be required by 247 the authority in establishing the utility project charge. 248 (b) The utility project charge is a nonbypassable charge to 249 all present and future customers of the publicly owned utility 250 in the class or classes of customers specified in the financing 251 resolution upon its adoption. If the regulatory structure for 252 the water or wastewater industry changes in a manner that 253 authorizes a customer to choose to take service from an 254 alternative supplier and the customer chooses an alternative 255 supplier, the customer remains liable for paying the utility 256 project charge if the customer continues to receive any service 257 from the publicly owned utility for the transmission, 258 distribution, processing, delivery, or metering of the 259 underlying water or wastewater service. 260 (c) The authority shall determine at least annually and at 261 such additional intervals as provided in the financing 262 resolution and documents related to the applicable utility cost 263 containment bonds whether adjustments to the utility project 264 charge are required. The authority shall use the adjustment to 265 correct for any overcollection or undercollection of financing 266 costs from the utility project charge or to make any other 267 adjustment necessary to ensure the timely payment of the 268 financing costs of the utility cost containment bonds, including 269 adjustment of the utility project charge to pay any debt service 270 coverage requirement for the utility cost containment bonds. The 271 local agency or its publicly owned utility shall provide the 272 authority with information concerning the publicly owned utility 273 which may be required by the authority in adjusting the utility 274 project charge. 275 1. If the authority determines that an adjustment to the 276 utility project charge is required, the adjustment must be made 277 using the methodology specified in the financing resolution. 278 2. The adjustment may not impose the utility project charge 279 on a class of customers which was not subject to the utility 280 project charge pursuant to the financing resolution imposing the 281 utility project charge. 282 (d) Revenues from a utility project charge are special 283 revenues of the authority and do not constitute revenue of the 284 local agency or its publicly owned utility for any purpose, 285 including any dedication, commitment, or pledge of revenue, 286 receipts, or other income that the local agency or its publicly 287 owned utility has made or will make for the security of any of 288 its obligations. 289 (e) The local agency or its publicly owned utility shall 290 act as a servicing agent for collecting the utility project 291 charge throughout the duration of the servicing agreement 292 required by the financing resolution. The local agency or its 293 publicly owned utility shall hold the money collected in trust 294 for the exclusive benefit of the persons entitled to have the 295 financing costs paid from the utility project charge, and the 296 money does not lose its designation as revenues of the authority 297 by virtue of possession by the local agency or its publicly 298 owned utility. 299 (f) The customer must make timely and complete payment of 300 all utility project charges as a condition of receiving water or 301 wastewater service from the publicly owned utility. The local 302 agency or its publicly owned utility may use its established 303 collection policies and remedies provided under law to enforce 304 collection of the utility project charge. A customer liable for 305 a utility project charge may not withhold payment, in whole or 306 in part, thereof. 307 (g) The pledge of a utility project charge to secure 308 payment of utility cost containment bonds is irrevocable, and 309 the state, or any other entity, may not reduce, impair, or 310 otherwise adjust the utility project charge, except that the 311 authority shall implement the periodic adjustments to the 312 utility project charge as provided under this subsection. 313 (6) UTILITY PROJECT PROPERTY.— 314 (a) A utility project charge constitutes utility project 315 property on the effective date of the financing resolution 316 authorizing such utility project charge. Utility project 317 property constitutes property, including contracts for securing 318 utility cost containment bonds, regardless of whether the 319 revenues and proceeds arising with respect to the utility 320 project property have accrued. Utility project property shall 321 continuously exist as property for all purposes with all of the 322 rights and privileges of this section through the end of the 323 period provided in the financing resolution or until all 324 financing costs with respect to the related utility cost 325 containment bonds are paid in full, whichever occurs first. 326 (b) Upon the effective date of the financing resolution, 327 the utility project property is subject to a first-priority 328 statutory lien to secure the payment of the utility cost 329 containment bonds. 330 1. The lien secures the payment of all financing costs then 331 existing or subsequently arising to the holders of the utility 332 cost containment bonds, the trustees or representatives of the 333 holders of the utility cost containment bonds, and any other 334 entity specified in the financing resolution or the documents 335 relating to the utility cost containment bonds. 336 2. The lien attaches to the utility project property 337 regardless of the current ownership of the utility project 338 property, including any local agency or its publicly owned 339 utility, the authority, or any other person. 340 3. Upon the effective date of the financing resolution, the 341 lien is valid and enforceable against the owner of the utility 342 project property and all third parties, and additional public 343 notice is not required. 344 4. The lien is a continuously perfected lien on all 345 revenues and proceeds generated from the utility project 346 property regardless of whether the revenues or proceeds have 347 accrued. 348 (c) All revenues with respect to utility project property 349 related to utility cost containment bonds, including payments of 350 the utility project charge, shall be applied first to the 351 payment of the financing costs of the utility cost containment 352 bonds then due, including the funding of reserves for the 353 utility cost containment bonds. Any excess revenues shall be 354 applied as determined by the authority for the benefit of the 355 utility for which the utility cost containment bonds were 356 issued. 357 (7) UTILITY COST CONTAINMENT BONDS.— 358 (a) Utility cost containment bonds shall be issued within 359 the parameters of the financing provided by the authority 360 pursuant to this section. The proceeds of the utility cost 361 containment bonds made available to the local agency or its 362 publicly owned utility shall be used for the utility project 363 identified in the application for financing of the utility 364 project or used to refinance indebtedness of the local agency 365 which financed or refinanced utility projects. 366 (b) Utility cost containment bonds shall be issued as set 367 forth in this section and s. 163.01(7)(g)8., Florida Statutes, 368 and may be validated pursuant to s. 163.01(7)(g)9., Florida 369 Statutes. 370 (c) The authority shall pledge the utility project property 371 as security for the payment of the utility cost containment 372 bonds. All rights of an authority with respect to utility 373 project property pledged as security for the payment of utility 374 cost containment bonds shall be for the benefit of, and 375 enforceable by, the beneficiaries of the pledge to the extent 376 provided in the financing documents relating to the utility cost 377 containment bonds. 378 1. If utility project property is pledged as security for 379 the payment of utility cost containment bonds, the local agency 380 or its publicly owned utility shall enter into a contract with 381 the authority which requires, at a minimum, that the publicly 382 owned utility: 383 a. Continue to operate its publicly owned utility, 384 including the utility project that is being financed or 385 refinanced; 386 b. Collect the utility project charge from customers for 387 the benefit and account of the authority and the beneficiaries 388 of the pledge of the utility project charge; and 389 c. Separately account for and remit revenue from the 390 utility project charge to, or for the account of, the authority. 391 2. The pledge of a utility project charge to secure payment 392 of utility cost containment bonds is irrevocable, and the state 393 or any other entity may not reduce, impair, or otherwise adjust 394 the utility project charge, except that the authority shall 395 implement periodic adjustments to the utility project charge as 396 provided under subsection (5). 397 (d) Utility cost containment bonds shall be nonrecourse to 398 the credit or any assets of the local agency or the publicly 399 owned utility but are payable from, and secured by a pledge of 400 the utility project property relating to the utility cost 401 containment bonds and any additional security or credit 402 enhancement specified in the documents relating to the utility 403 cost containment bonds. If, pursuant to subsection (4), the 404 authority is financing the project through a single-purpose 405 limited liability company, the utility cost containment bonds 406 shall be payable from, and secured by, a pledge of amounts paid 407 by the company to the authority from the applicable utility 408 project property. This paragraph is the exclusive method of 409 perfecting a pledge of utility project property by the company 410 securing the payment of financing costs under any agreement of 411 the company in connection with the issuance of utility cost 412 containment bonds. 413 (e) The issuance of utility cost containment bonds does not 414 obligate the state or any political subdivision thereof to levy 415 or to pledge any form of taxation to pay the utility cost 416 containment bonds or to make any appropriation for their 417 payment. Each utility cost containment bond must contain on its 418 face a statement in substantially the following form: 419 420 “Neither the full faith and credit nor the taxing power of the 421 State of Florida or any political subdivision thereof is pledged 422 to the payment of the principal of, or interest on, this bond.” 423 424 (f) Notwithstanding any other law or this section, a 425 financing resolution or other resolution of the authority, or 426 documents relating to utility cost containment bonds, the 427 authority may not rescind, alter, or amend any resolution or 428 document that pledges utility cost charges for payment of 429 utility cost containment bonds. 430 (g) Subject to the terms of any pledge document created 431 under this section, the validity and relative priority of a 432 pledge is not defeated or adversely affected by the commingling 433 of revenues generated by the utility project property with other 434 funds of the local agency or the publicly owned utility 435 collecting a utility project charge on behalf of an authority. 436 (h) Financing costs in connection with utility cost 437 containment bonds are a special obligation of the authority and 438 do not constitute a liability of the state or any political 439 subdivision thereof. Financing costs are not a pledge of the 440 full faith and credit of the state or any political subdivision 441 thereof, including the authority, but are payable solely from 442 the funds identified in the documents relating to the utility 443 cost containment bonds. This paragraph does not preclude 444 guarantees or credit enhancements in connection with utility 445 cost containment bonds. 446 (i) Except as otherwise provided in this section with 447 respect to adjustments to a utility project charge, the recovery 448 of the financing costs for the utility cost containment bonds 449 from the utility project charge is irrevocable, and the 450 authority does not have the power, by rescinding, altering, or 451 amending the applicable financing resolution, to revalue or 452 revise for ratemaking purposes the financing costs of utility 453 cost containment bonds; to determine that the financing costs 454 for the related utility cost containment bonds or the utility 455 project charge is unjust or unreasonable; or to in any way, 456 either directly or indirectly, reduce or impair the value of 457 utility project property that includes the utility project 458 charge. The amount of revenues arising with respect to the 459 financing costs for the related utility cost containment bonds 460 or the utility project charge is not subject to reduction, 461 impairment, postponement, or termination for any reason until 462 all financing costs to be paid from the utility project charge 463 are fully met and discharged. 464 (j) Except as provided in subsection (5) with respect to 465 adjustments to a utility project charge, the state pledges and 466 agrees with the owners of utility cost containment bonds that 467 the state may not limit or alter the financing costs or the 468 utility project property, including the utility project charge, 469 relating to the utility cost containment bonds, or any rights 470 related to the utility project property, until all financing 471 costs with respect to the utility cost containment bonds are 472 fully met and discharged. This paragraph does not preclude 473 limitation or alteration if adequate provision is made by law to 474 protect the owners. The authority may include the state’s pledge 475 in the governing documents for utility cost containment bonds. 476 (8) LIMITATION ON DEBT RELIEF.—Notwithstanding any other 477 law, an authority that issued utility cost containment bonds may 478 not, and a governmental officer or organization may not 479 authorize the authority to, become a debtor under the United 480 States Bankruptcy Code or become the subject of any similar case 481 or proceeding under any other state or federal law if any 482 payment obligation from utility project property remains with 483 respect to the utility cost containment bonds. 484 (9) CONSTRUCTION.—This section and all grants of power and 485 authority in this section shall be liberally construed to 486 effectuate their purposes. All incidental powers necessary to 487 carry this section into effect are expressly granted to, and 488 conferred upon, public entities. 489 Section 2. Subsection (5) of section 153.03, Florida 490 Statutes, is amended to read: 491 153.03 General grant of power.—Any of the several counties 492 of the state which may hereafter come under the provisions of 493 this chapter as hereinafter provided is hereby authorized and 494 empowered: 495 (5) To acquire in the name of the county by gift, purchase 496 as hereinafter provided, or by the exercise of the right of 497 eminent domain, such lands and rights and interests therein, 498 including lands under water and riparian rights, and to acquire 499 such personal property as it may deem necessary for the 500 efficient operation or for the extension of or the improvement 501 of any facility purchased or constructed under the provisions of 502 this chapter and to hold and dispose of all real and personal 503 property under its control.;Counties may also exercise such 504 eminent domain rights pursuant to an action initiated under s. 505 367.072.provided,However,thatno county shall have the right 506 to exercise the right of eminent domain over any such lands or 507 rights or interests therein or any personal property owned by 508 any municipality within the state nor to exercise such right 509 with respect to any privately owned water supply system or 510 sewage disposal system including without limitation ponds, 511 streams and surface waters constituting a part thereof, provided 512 any such system is primarily used, owned or operated by an 513 industrial or manufacturing plant for its own use as a water 514 supply system or in disposing of its industrial wastes. 515 Section 3. Section 367.072, Florida Statutes, is amended to 516 read: 517 367.072 Petition to revoke certificate of authorization; 518 condemnation.—The Legislature finds that it is in the public 519 interest that water service be of good quality, be priced at a 520 rate that is commensurate with the market and the quality of 521 service provided, and be consistent with the standards set forth 522 in this chapter. Furthermore, the Legislature declares that the 523 residents of the state have a right to participate in the 524 selection of their water service provider. Therefore, a 525 utility’s certificate of authorization to provide water service 526 may be revokedif,after its customers file a petition to revoke 527 a certificate of authorization with the commission, the528commission finds that revocation is in the best interest of the529customers in accordance with this section. Upon the filing of 530 such petition, and owing to the demonstrated dissatisfaction 531 with the water service received by such customers, the county 532 where the customers are located also may deem it a public 533 necessity that the utility be brought under county ownership, 534 and may, upon its own election, begin condemnation by eminent 535 domain proceedings against the utility. As used in this section, 536 the term “customer” means an individual whose property is 537 serviced by a single meter or a person whose name appears on the 538 bill for a master meter. 539 (1)(a) If the commission receives a letter from the 540 customers of a utility stating their intent to file a petition 541 pursuant to this section, the commission staff, within 10 days 542 after receipt of the letter, shall notify the utility of the 543 customers’ intent to file a petition. 544 (b) Commission staff shall send to the customers 545 instructions regarding the information required on the petition 546 and the subsequent process the commission will follow. The 547 petition must be filed within 90 days after the receipt of the 548 instructions. Commission staff shall review the petition and 549 notify the customers within 10 days after receipt of the 550 petition that the petition is sufficient for the commission to 551 act or that additional information is necessary. The customers 552 must file a cured petition within 30 days after receipt of the 553 notice to cure and provide a copy of the petition to the 554 utility. If the customers fail to file or refile a petition 555 within the allotted time, the commission shall dismiss the 556 petition with prejudice, and the customers may not file another 557 petition for 1 year after the dismissal. 558 (c) Upon receipt of a properly filed petition, the 559 commission shall send to the county where the customers are 560 located a copy of the petition and notify such county of its 561 right to initiate condemnation by eminent domain proceedings 562 pursuant to this section and s. 153.03. 563 (2) A petition must: 564 (a) State with specificity each issue that customers have 565 with the quality of water service, each time the issue was 566 reported to the utility, and how long each issue has existed; 567 and 568 (b) Be signed by at least 65 percent of the customers of 569 the service area covered under the certificate of authorization. 570 A person whose name appears on the bill for a master meter may 571 sign a petition if at least 65 percent of the customers, 572 tenants, or unit owners served by the master meter support the 573 petition, in which case documentation of such support must be 574 included with the petition. 575 (3) If the petition is in compliance with this section and 576 the issues identified within the petition support a reasonable 577 likelihood that the utility is failing to provide quality of 578 water service, the utility shall thereafter be prohibited from 579 filing a rate case until the commission has issued a final order 580 addressing the issues identified in the petition. The utility 581 shall use the following criteria in preparing a response to the 582 commission, addressing the issues identified within the petition 583 and defending the quality of its water service: 584 (a) Federal and state primary water quality standards or 585 secondary water quality standards pursuant to s. 367.0812; and 586 (b) The relationship between the utility and its customers, 587 including each complaint received regarding the quality of water 588 service, the length of time each customer has been complaining 589 about the service, the resolution of each complaint, and the 590 time it has taken to address such complaints. 591 (4) The commission shall evaluate the issues identified in 592 the petition, the utility’s response as to whether it is 593 providing quality of water service, and any other factor the 594 commission deems relevant. 595 (5) Based upon its evaluation, the commission shall: 596 (a) Dismiss the petition, in which case the decision must 597 be supported by clear and convincing evidence and is subject to 598 ss. 120.569 and 120.57; or 599(b) Require the utility to take the necessary steps to600correct the quality of water service issues identified in the601petition. The commission shall set benchmarks within a602timeframe, not to exceed 3 years, and may require the utility to603provide interim reports describing its progress in meeting such604benchmarks. The commission may extend the term 3 years for605circumstances that delay the project which are not in the606control of the utility, such as natural disasters and obtaining607permits necessary for meeting such benchmarks; or608 (b)(c)Notwithstanding s. 367.045, revoke the utility’s 609 certificate of authorization, in which case, any condemnation 610 proceedings initiated pursuant to this section must be dismissed 611 and a receiver must be appointed pursuant to s. 367.165 until a 612 sale of the utility system has been approved pursuant to s. 613 367.071. 614 (6) The commission shall adopt by rule the format of and 615 requirements for a petition and may adopt other rules to 616 administer this section. 617 618 ================= T I T L E A M E N D M E N T ================ 619 And the title is amended as follows: 620 Between lines 63 and 64 621 insert: 622 amending s. 153.03, F.S.; clarifying that counties may 623 initiate eminent domain over water utilities under 624 certain circumstances; amending s. 367.072, F.S.; 625 revising legislative findings; authorizing counties to 626 initiate condemnation proceedings under certain 627 circumstances; requiring the Florida Public Service 628 Commission to notify counties of petitions to revoke a 629 certificate of authorization; revising how the 630 commission must respond to such petitions; requiring 631 dismissal of condemnation proceedings under certain 632 circumstances;