Bill Text: FL S0324 | 2016 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Utility Projects
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2016-03-09 - Laid on Table, companion bill(s) passed, see CS/HB 347 (Ch. 2016-124) [S0324 Detail]
Download: Florida-2016-S0324-Comm_Sub.html
Bill Title: Utility Projects
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2016-03-09 - Laid on Table, companion bill(s) passed, see CS/HB 347 (Ch. 2016-124) [S0324 Detail]
Download: Florida-2016-S0324-Comm_Sub.html
Florida Senate - 2016 CS for SB 324 By the Committee on Finance and Tax; and Senators Legg and Simpson 593-03186-16 2016324c1 1 A bill to be entitled 2 An act relating to utility projects; providing a short 3 title; defining terms; authorizing certain local 4 governmental entities to finance the costs of a 5 utility project by issuing utility cost containment 6 bonds upon application by a local agency; specifying 7 application requirements; requiring a successor entity 8 of a local agency to assume and perform the 9 obligations of the local agency with respect to the 10 financing of a utility project; providing procedures 11 for local agencies to use when applying to finance a 12 utility project using utility cost containment bonds; 13 authorizing an authority to issue utility cost 14 containment bonds for specified purposes related to 15 utility projects; authorizing an authority to form 16 alternate entities to finance utility projects; 17 requiring the governing body of the authority to adopt 18 a financing resolution and impose a utility project 19 charge on customers of a publicly owned utility as a 20 condition of utility project financing; specifying 21 required and optional provisions of the financing 22 resolution; specifying powers of the authority; 23 requiring the local agency or its publicly owned 24 utility to assist the authority in the establishment 25 or adjustment of the utility project charge; requiring 26 that customers of the public utility specified in the 27 financing resolution pay the utility project charge; 28 providing for adjustment of the utility project 29 charge; establishing ownership of the revenues of the 30 utility project charge; requiring the local agency or 31 its publicly owned utility to collect the utility 32 project charge; conditioning a customer’s receipt of 33 public utility services on payment of the utility 34 project charge; authorizing a local agency or its 35 publicly owned utility to use available remedies to 36 enforce collection of the utility project charge; 37 providing that the pledge of the utility project 38 charge to secure payment of bonds issued to finance 39 the utility project is irrevocable and cannot be 40 reduced or impaired except under certain conditions; 41 providing that a utility project charge constitutes 42 utility project property; providing that utility 43 project property is subject to a lien to secure 44 payment of costs relating to utility cost containment 45 bonds; establishing payment priorities for the use of 46 revenues of the utility project property; providing 47 for the issuance and validation of utility cost 48 containment bonds; securing the payment of utility 49 cost containment bonds and related costs; providing 50 that utility cost containment bonds do not obligate 51 the state or any political subdivision and are not 52 backed by their full faith and credit and taxing 53 power; requiring that certain disclosures be printed 54 on utility cost containment bonds; providing that 55 financing costs related to utility cost containment 56 bonds are an obligation of the authority only; 57 providing limitations on the state’s ability to alter 58 financing costs or utility project property under 59 certain circumstances; prohibiting an authority with 60 outstanding payment obligations on utility cost 61 containment bonds from becoming a debtor under certain 62 federal or state laws; providing for construction; 63 endowing public entities with certain powers; amending 64 s. 153.03, F.S.; clarifying that counties may initiate 65 eminent domain over water utilities under certain 66 circumstances; amending s. 367.072, F.S.; revising 67 legislative findings; authorizing counties to initiate 68 condemnation proceedings under certain circumstances; 69 requiring the Florida Public Service Commission to 70 notify counties of petitions to revoke a certificate 71 of authorization; revising how the commission must 72 respond to such petitions; requiring dismissal of 73 condemnation proceedings under certain circumstances; 74 providing an effective date. 75 76 Be It Enacted by the Legislature of the State of Florida: 77 78 Section 1. Utility Cost Containment Bond Act.— 79 (1) SHORT TITLE.—This section may be cited as the “Utility 80 Cost Containment Bond Act.” 81 (2) DEFINITIONS.—As used in this section, the term: 82 (a) “Authority” means an entity created under s. 83 163.01(7)(g), Florida Statutes, or a separate legal entity 84 created by one or more local agencies. The term includes any 85 successor to the powers and functions of such an entity. 86 (b) “Cost,” as applied to a utility project or a portion of 87 a utility project financed under this section, means: 88 1. Any part of the expense of constructing, renovating, or 89 acquiring lands, structures, real or personal property, rights, 90 rights-of-way, franchises, easements, and interests acquired or 91 used for a utility project; 92 2. The expense of demolishing or removing any buildings or 93 structures on acquired land, including the expense of acquiring 94 any lands to which the buildings or structures may be moved, and 95 the cost of all machinery and equipment used for the demolition 96 or removal; 97 3. Finance charges; 98 4. Interest, as determined by the authority; 99 5. Provisions for working capital and debt service 100 reserves; 101 6. Expenses for extensions, enlargements, additions, 102 replacements, renovations, and improvements; 103 7. Expenses for architectural, engineering, financial, 104 accounting, and legal services, plans, specifications, 105 estimates, and administration; or 106 8. Any other expenses necessary or incidental to 107 determining the feasibility of constructing a utility project or 108 incidental to the construction, acquisition, or financing of a 109 utility project. 110 (c) “Customer” means a person receiving water or wastewater 111 service from a publicly owned utility. 112 (d) “Finance” or “financing” includes refinancing. 113 (e) “Financing cost” means: 114 1. Interest and redemption premiums that are payable on 115 utility cost containment bonds; 116 2. The cost of retiring the principal of utility cost 117 containment bonds, whether at maturity, including acceleration 118 of maturity upon an event of default, or upon redemption, 119 including sinking fund redemption; 120 3. The cost related to issuing or servicing utility cost 121 containment bonds, including any payment under an interest rate 122 swap agreement and any type of fee; 123 4. A payment or expense associated with a bond insurance 124 policy; financial guaranty; contract, agreement, or other credit 125 or liquidity enhancement for bonds; or contract, agreement, or 126 other financial agreement entered into in connection with 127 utility cost containment bonds; 128 5. Any coverage charges; or 129 6. The funding of one or more reserve accounts relating to 130 utility cost containment bonds. 131 (f) “Financing resolution” means a resolution adopted by 132 the governing body of an authority that provides for the 133 financing or refinancing of a utility project with utility cost 134 containment bonds and that imposes a utility project charge in 135 connection with the utility cost containment bonds in accordance 136 with subsection (4). A financing resolution may be separate from 137 a resolution authorizing the issuance of the bonds. 138 (g) “Governing body” means the body that governs a local 139 agency. 140 (h) “Local agency” means a member of the authority, or an 141 agency or subdivision of that member, which is sponsoring or 142 refinancing a utility project, or any municipality, county, 143 authority, special district, public corporation, regional water 144 authority, or other governmental entity of the state that is 145 sponsoring or refinancing a utility project. 146 (i) “Public utility services” means water or wastewater 147 services provided by a publicly owned utility. The term does not 148 include communications services, as defined in s. 202.11, 149 Florida Statutes, Internet access services, or information 150 services. 151 (j) “Publicly owned utility” means a utility providing 152 retail or wholesale water or wastewater services which is owned 153 and operated by a local agency. The term includes any successor 154 to the powers and functions of such a utility. 155 (k) “Revenue” means income and receipts of the authority 156 related to the financing of utility projects and issuance of 157 utility cost containment bonds, including any of the following: 158 1. Bond purchase agreements; 159 2. Bonds acquired by the authority; 160 3. Installment sales agreements and other revenue-producing 161 agreements entered into by the authority; 162 4. Utility projects financed or refinanced by the 163 authority; 164 5. Grants and other sources of income; 165 6. Moneys paid by a local agency; 166 7. Interlocal agreements with a local agency, including all 167 service agreements; or 168 8. Interest or other income from any investment of money in 169 any fund or account established for the payment of principal, 170 interest, or premiums on utility cost containment bonds, or the 171 deposit of proceeds of utility cost containment bonds. 172 (l) “Utility cost containment bonds” means bonds, notes, 173 commercial paper, variable rate securities, and any other 174 evidence of indebtedness issued by an authority the proceeds of 175 which are used directly or indirectly to pay or reimburse a 176 local agency or its publicly owned utility for the costs of a 177 utility project and which are secured by a pledge of, and are 178 payable from, utility project property. 179 (m) “Utility project” means the acquisition, construction, 180 installation, retrofitting, rebuilding, or other addition to or 181 improvement of any equipment, device, structure, process, 182 facility, technology, rights, or property located within or 183 outside this state which is used in connection with the 184 operations of a publicly owned utility. 185 (n) “Utility project charge” means a charge levied on 186 customers of a publicly owned utility to pay the financing costs 187 of utility cost containment bonds issued under subsection (4). 188 The term includes any adjustments to the utility project charge 189 made under subsection (5). 190 (o) “Utility project property” means the property right 191 created pursuant to subsection (6). The term does not include 192 any interest in a customer’s real or personal property but 193 includes the right, title, and interest of an authority in any 194 of the following: 195 1. The financing resolution, the utility project charge, 196 and any adjustment to the utility project charge established in 197 accordance with subsection (5); 198 2. The financing costs of the utility cost containment 199 bonds and all revenues, and all collections, claims, payments, 200 moneys, or proceeds for, or arising from, the utility project 201 charge; or 202 3. All rights to obtain adjustments to the utility project 203 charge pursuant to subsection (5). 204 (3) UTILITY PROJECTS.— 205 (a) A local agency that owns and operates a publicly owned 206 utility may apply to an authority to finance the costs of a 207 utility project using the proceeds of utility cost containment 208 bonds. In its application to the authority, the local agency 209 shall specify the utility project to be financed by the utility 210 cost containment bonds and the maximum principal amount, the 211 maximum interest rate, and the maximum stated terms of the 212 utility cost containment bonds. 213 (b) A local agency may not apply to an authority for the 214 financing of a utility project under this section unless the 215 governing body has determined, in a duly noticed public meeting, 216 all of the following: 217 1. The project to be financed is a utility project. 218 2. The local agency will finance costs of the utility 219 project, and the costs associated with the financing will be 220 paid from utility project property, including the utility 221 project charge for the utility cost containment bonds. 222 3. Based on the best information available to the governing 223 body, the rates charged to the local agency’s retail customers 224 by the publicly owned utility, including the utility project 225 charge resulting from the financing of the utility project with 226 utility cost containment bonds, are expected to be lower than 227 the rates that would be charged if the project were financed 228 with bonds payable from revenues of the publicly owned utility. 229 (c) A determination by the governing body that a project to 230 be financed with utility cost containment bonds is a utility 231 project is final and conclusive, and the utility cost 232 containment bonds issued to finance the utility project and the 233 utility project charge are valid and enforceable as set forth in 234 the financing resolution and the documents relating to the 235 utility cost containment bonds. 236 (d) If a local agency that has outstanding utility cost 237 containment bonds ceases to operate a water or wastewater 238 utility, directly or through its publicly owned utility, 239 references in this section to the local agency or to its 240 publicly owned utility must be to the successor entity. The 241 successor entity shall assume and perform all obligations of the 242 local agency and its publicly owned utility required by this 243 section and shall assume the servicing agreement required under 244 subsection (4) while the utility cost containment bonds remain 245 outstanding. 246 (4) FINANCING UTILITY PROJECTS.— 247 (a) An authority may issue utility cost containment bonds 248 to finance or refinance utility projects; refinance debt of a 249 local agency incurred in financing or refinancing utility 250 projects, provided such refinancing results in present value 251 savings to the local agency; or, with the approval of the local 252 agency, refinance previously issued utility cost containment 253 bonds. 254 1. To finance a utility project, the authority may: 255 a. Form a single-purpose limited liability company and 256 authorize the company to adopt the financing resolution of such 257 utility project; or 258 b. Create a new single-purpose entity by interlocal 259 agreement under s. 163.01, Florida Statutes, the membership of 260 which shall consist of the authority and two or more of its 261 members or other public agencies. 262 2. A single-purpose limited liability company or a single 263 purpose entity may be created by the authority solely for the 264 purpose of performing the duties and responsibilities of the 265 authority specified in this section and constitutes an authority 266 for all purposes of this section. Reference to the authority 267 includes a company or entity created under this paragraph. 268 (b) The governing body of an authority that is financing 269 the costs of a utility project shall adopt a financing 270 resolution and shall impose a utility project charge as 271 described in subsection (5). All provisions of a financing 272 resolution adopted pursuant to this section are binding on the 273 authority. 274 1. The financing resolution must: 275 a. Provide a brief description of the financial calculation 276 method the authority will use in determining the utility project 277 charge. The calculation method must include a periodic 278 adjustment methodology to be applied at least annually to the 279 utility project charge. The authority shall establish the 280 allocation of the utility project charge among classes of 281 customers of the publicly owned utility. The decision of the 282 authority is final and conclusive, and the method of calculating 283 the utility project charge and the periodic adjustment may not 284 be changed; 285 b. Require each customer in the class or classes of 286 customers specified in the financing resolution who receives 287 water or wastewater service through the publicly owned utility 288 to pay the utility project charge regardless of whether the 289 customer has an agreement to receive water or wastewater service 290 from a person other than the publicly owned utility; 291 c. Require that the utility project charge be charged 292 separately from other charges on the bill of customers of the 293 publicly owned utility in the class or classes of customers 294 specified in the financing resolution; and 295 d. Require that the authority enter into a servicing 296 agreement with the local agency or its publicly owned utility to 297 collect the utility project charge. 298 2. The authority may require in the financing resolution 299 that, in the event of a default by the local agency or its 300 publicly owned utility with respect to revenues from the utility 301 project property, the authority, upon application by the 302 beneficiaries of the statutory lien as set forth in subsection 303 (6), shall order the sequestration and payment to the 304 beneficiaries of revenues arising from utility project property. 305 This subparagraph does not limit any other remedies available to 306 the beneficiaries by reason of default. 307 (c) An authority has all the powers provided in this 308 section and s. 163.01(7)(g), Florida Statutes. 309 (d) Each authority shall work with local agencies that 310 request assistance to determine the most cost-effective manner 311 of financing regional water projects. If the entities determine 312 that the issuance of utility cost containment bonds will result 313 in lower financing costs for a project, the authority shall 314 cooperate with such local agencies and, if requested by the 315 local agencies, issue utility cost containment bonds as provided 316 in this section. 317 (5) UTILITY PROJECT CHARGE.— 318 (a) The authority shall impose a sufficient utility project 319 charge, based on estimates of water or wastewater service usage, 320 to ensure timely payment of all financing costs with respect to 321 utility cost containment bonds. The local agency or its publicly 322 owned utility shall provide the authority with information 323 concerning the publicly owned utility which may be required by 324 the authority in establishing the utility project charge. 325 (b) The utility project charge is a nonbypassable charge to 326 all present and future customers of the publicly owned utility 327 in the class or classes of customers specified in the financing 328 resolution upon its adoption. If the regulatory structure for 329 the water or wastewater industry changes in a manner that 330 authorizes a customer to choose to take service from an 331 alternative supplier and the customer chooses an alternative 332 supplier, the customer remains liable for paying the utility 333 project charge if the customer continues to receive any service 334 from the publicly owned utility for the transmission, 335 distribution, processing, delivery, or metering of the 336 underlying water or wastewater service. 337 (c) The authority shall determine at least annually and at 338 such additional intervals as provided in the financing 339 resolution and documents related to the applicable utility cost 340 containment bonds whether adjustments to the utility project 341 charge are required. The authority shall use the adjustment to 342 correct for any overcollection or undercollection of financing 343 costs from the utility project charge or to make any other 344 adjustment necessary to ensure the timely payment of the 345 financing costs of the utility cost containment bonds, including 346 adjustment of the utility project charge to pay any debt service 347 coverage requirement for the utility cost containment bonds. The 348 local agency or its publicly owned utility shall provide the 349 authority with information concerning the publicly owned utility 350 which may be required by the authority in adjusting the utility 351 project charge. 352 1. If the authority determines that an adjustment to the 353 utility project charge is required, the adjustment must be made 354 using the methodology specified in the financing resolution. 355 2. The adjustment may not impose the utility project charge 356 on a class of customers which was not subject to the utility 357 project charge pursuant to the financing resolution imposing the 358 utility project charge. 359 (d) Revenues from a utility project charge are special 360 revenues of the authority and do not constitute revenue of the 361 local agency or its publicly owned utility for any purpose, 362 including any dedication, commitment, or pledge of revenue, 363 receipts, or other income that the local agency or its publicly 364 owned utility has made or will make for the security of any of 365 its obligations. 366 (e) The local agency or its publicly owned utility shall 367 act as a servicing agent for collecting the utility project 368 charge throughout the duration of the servicing agreement 369 required by the financing resolution. The local agency or its 370 publicly owned utility shall hold the money collected in trust 371 for the exclusive benefit of the persons entitled to have the 372 financing costs paid from the utility project charge, and the 373 money does not lose its designation as revenues of the authority 374 by virtue of possession by the local agency or its publicly 375 owned utility. 376 (f) The customer must make timely and complete payment of 377 all utility project charges as a condition of receiving water or 378 wastewater service from the publicly owned utility. The local 379 agency or its publicly owned utility may use its established 380 collection policies and remedies provided under law to enforce 381 collection of the utility project charge. A customer liable for 382 a utility project charge may not withhold payment, in whole or 383 in part, thereof. 384 (g) The pledge of a utility project charge to secure 385 payment of utility cost containment bonds is irrevocable, and 386 the state, or any other entity, may not reduce, impair, or 387 otherwise adjust the utility project charge, except that the 388 authority shall implement the periodic adjustments to the 389 utility project charge as provided under this subsection. 390 (6) UTILITY PROJECT PROPERTY.— 391 (a) A utility project charge constitutes utility project 392 property on the effective date of the financing resolution 393 authorizing such utility project charge. Utility project 394 property constitutes property, including contracts for securing 395 utility cost containment bonds, regardless of whether the 396 revenues and proceeds arising with respect to the utility 397 project property have accrued. Utility project property shall 398 continuously exist as property for all purposes with all of the 399 rights and privileges of this section through the end of the 400 period provided in the financing resolution or until all 401 financing costs with respect to the related utility cost 402 containment bonds are paid in full, whichever occurs first. 403 (b) Upon the effective date of the financing resolution, 404 the utility project property is subject to a first-priority 405 statutory lien to secure the payment of the utility cost 406 containment bonds. 407 1. The lien secures the payment of all financing costs then 408 existing or subsequently arising to the holders of the utility 409 cost containment bonds, the trustees or representatives of the 410 holders of the utility cost containment bonds, and any other 411 entity specified in the financing resolution or the documents 412 relating to the utility cost containment bonds. 413 2. The lien attaches to the utility project property 414 regardless of the current ownership of the utility project 415 property, including any local agency or its publicly owned 416 utility, the authority, or any other person. 417 3. Upon the effective date of the financing resolution, the 418 lien is valid and enforceable against the owner of the utility 419 project property and all third parties, and additional public 420 notice is not required. 421 4. The lien is a continuously perfected lien on all 422 revenues and proceeds generated from the utility project 423 property regardless of whether the revenues or proceeds have 424 accrued. 425 (c) All revenues with respect to utility project property 426 related to utility cost containment bonds, including payments of 427 the utility project charge, shall be applied first to the 428 payment of the financing costs of the utility cost containment 429 bonds then due, including the funding of reserves for the 430 utility cost containment bonds. Any excess revenues shall be 431 applied as determined by the authority for the benefit of the 432 utility for which the utility cost containment bonds were 433 issued. 434 (7) UTILITY COST CONTAINMENT BONDS.— 435 (a) Utility cost containment bonds shall be issued within 436 the parameters of the financing provided by the authority 437 pursuant to this section. The proceeds of the utility cost 438 containment bonds made available to the local agency or its 439 publicly owned utility shall be used for the utility project 440 identified in the application for financing of the utility 441 project or used to refinance indebtedness of the local agency 442 which financed or refinanced utility projects. 443 (b) Utility cost containment bonds shall be issued as set 444 forth in this section and s. 163.01(7)(g)8., Florida Statutes, 445 and may be validated pursuant to s. 163.01(7)(g)9., Florida 446 Statutes. 447 (c) The authority shall pledge the utility project property 448 as security for the payment of the utility cost containment 449 bonds. All rights of an authority with respect to utility 450 project property pledged as security for the payment of utility 451 cost containment bonds shall be for the benefit of, and 452 enforceable by, the beneficiaries of the pledge to the extent 453 provided in the financing documents relating to the utility cost 454 containment bonds. 455 1. If utility project property is pledged as security for 456 the payment of utility cost containment bonds, the local agency 457 or its publicly owned utility shall enter into a contract with 458 the authority which requires, at a minimum, that the publicly 459 owned utility: 460 a. Continue to operate its publicly owned utility, 461 including the utility project that is being financed or 462 refinanced; 463 b. Collect the utility project charge from customers for 464 the benefit and account of the authority and the beneficiaries 465 of the pledge of the utility project charge; and 466 c. Separately account for and remit revenue from the 467 utility project charge to, or for the account of, the authority. 468 2. The pledge of a utility project charge to secure payment 469 of utility cost containment bonds is irrevocable, and the state 470 or any other entity may not reduce, impair, or otherwise adjust 471 the utility project charge, except that the authority shall 472 implement periodic adjustments to the utility project charge as 473 provided under subsection (5). 474 (d) Utility cost containment bonds shall be nonrecourse to 475 the credit or any assets of the local agency or the publicly 476 owned utility but are payable from, and secured by a pledge of 477 the utility project property relating to the utility cost 478 containment bonds and any additional security or credit 479 enhancement specified in the documents relating to the utility 480 cost containment bonds. If, pursuant to subsection (4), the 481 authority is financing the project through a single-purpose 482 limited liability company, the utility cost containment bonds 483 shall be payable from, and secured by, a pledge of amounts paid 484 by the company to the authority from the applicable utility 485 project property. This paragraph is the exclusive method of 486 perfecting a pledge of utility project property by the company 487 securing the payment of financing costs under any agreement of 488 the company in connection with the issuance of utility cost 489 containment bonds. 490 (e) The issuance of utility cost containment bonds does not 491 obligate the state or any political subdivision thereof to levy 492 or to pledge any form of taxation to pay the utility cost 493 containment bonds or to make any appropriation for their 494 payment. Each utility cost containment bond must contain on its 495 face a statement in substantially the following form: 496 497 “Neither the full faith and credit nor the taxing power of the 498 State of Florida or any political subdivision thereof is pledged 499 to the payment of the principal of, or interest on, this bond.” 500 501 (f) Notwithstanding any other law or this section, a 502 financing resolution or other resolution of the authority, or 503 documents relating to utility cost containment bonds, the 504 authority may not rescind, alter, or amend any resolution or 505 document that pledges utility cost charges for payment of 506 utility cost containment bonds. 507 (g) Subject to the terms of any pledge document created 508 under this section, the validity and relative priority of a 509 pledge is not defeated or adversely affected by the commingling 510 of revenues generated by the utility project property with other 511 funds of the local agency or the publicly owned utility 512 collecting a utility project charge on behalf of an authority. 513 (h) Financing costs in connection with utility cost 514 containment bonds are a special obligation of the authority and 515 do not constitute a liability of the state or any political 516 subdivision thereof. Financing costs are not a pledge of the 517 full faith and credit of the state or any political subdivision 518 thereof, including the authority, but are payable solely from 519 the funds identified in the documents relating to the utility 520 cost containment bonds. This paragraph does not preclude 521 guarantees or credit enhancements in connection with utility 522 cost containment bonds. 523 (i) Except as otherwise provided in this section with 524 respect to adjustments to a utility project charge, the recovery 525 of the financing costs for the utility cost containment bonds 526 from the utility project charge is irrevocable, and the 527 authority does not have the power, by rescinding, altering, or 528 amending the applicable financing resolution, to revalue or 529 revise for ratemaking purposes the financing costs of utility 530 cost containment bonds; to determine that the financing costs 531 for the related utility cost containment bonds or the utility 532 project charge is unjust or unreasonable; or to in any way, 533 either directly or indirectly, reduce or impair the value of 534 utility project property that includes the utility project 535 charge. The amount of revenues arising with respect to the 536 financing costs for the related utility cost containment bonds 537 or the utility project charge is not subject to reduction, 538 impairment, postponement, or termination for any reason until 539 all financing costs to be paid from the utility project charge 540 are fully met and discharged. 541 (j) Except as provided in subsection (5) with respect to 542 adjustments to a utility project charge, the state pledges and 543 agrees with the owners of utility cost containment bonds that 544 the state may not limit or alter the financing costs or the 545 utility project property, including the utility project charge, 546 relating to the utility cost containment bonds, or any rights 547 related to the utility project property, until all financing 548 costs with respect to the utility cost containment bonds are 549 fully met and discharged. This paragraph does not preclude 550 limitation or alteration if adequate provision is made by law to 551 protect the owners. The authority may include the state’s pledge 552 in the governing documents for utility cost containment bonds. 553 (8) LIMITATION ON DEBT RELIEF.—Notwithstanding any other 554 law, an authority that issued utility cost containment bonds may 555 not, and a governmental officer or organization may not 556 authorize the authority to, become a debtor under the United 557 States Bankruptcy Code or become the subject of any similar case 558 or proceeding under any other state or federal law if any 559 payment obligation from utility project property remains with 560 respect to the utility cost containment bonds. 561 (9) CONSTRUCTION.—This section and all grants of power and 562 authority in this section shall be liberally construed to 563 effectuate their purposes. All incidental powers necessary to 564 carry this section into effect are expressly granted to, and 565 conferred upon, public entities. 566 Section 2. Subsection (5) of section 153.03, Florida 567 Statutes, is amended to read: 568 153.03 General grant of power.—Any of the several counties 569 of the state which may hereafter come under the provisions of 570 this chapter as hereinafter provided is hereby authorized and 571 empowered: 572 (5) To acquire in the name of the county by gift, purchase 573 as hereinafter provided, or by the exercise of the right of 574 eminent domain, such lands and rights and interests therein, 575 including lands under water and riparian rights, and to acquire 576 such personal property as it may deem necessary for the 577 efficient operation or for the extension of or the improvement 578 of any facility purchased or constructed under the provisions of 579 this chapter and to hold and dispose of all real and personal 580 property under its control.;Counties may also exercise such 581 eminent domain rights pursuant to an action initiated under s. 582 367.072.provided,However,thatno county shall have the right 583 to exercise the right of eminent domain over any such lands or 584 rights or interests therein or any personal property owned by 585 any municipality within the state nor to exercise such right 586 with respect to any privately owned water supply system or 587 sewage disposal system including without limitation ponds, 588 streams and surface waters constituting a part thereof, provided 589 any such system is primarily used, owned or operated by an 590 industrial or manufacturing plant for its own use as a water 591 supply system or in disposing of its industrial wastes. 592 Section 3. Section 367.072, Florida Statutes, is amended to 593 read: 594 367.072 Petition to revoke certificate of authorization; 595 condemnation.—The Legislature finds that it is in the public 596 interest that water service be of good quality, be priced at a 597 rate that is commensurate with the market and the quality of 598 service provided, and be consistent with the standards set forth 599 in this chapter. Furthermore, the Legislature declares that the 600 residents of the state have a right to participate in the 601 selection of their water service provider. Therefore, a 602 utility’s certificate of authorization to provide water service 603 may be revokedif,after its customers file a petition to revoke 604 a certificate of authorization with the commission, the605commission finds that revocation is in the best interest of the606customers in accordance with this section. Upon the filing of 607 such petition, and owing to the demonstrated dissatisfaction 608 with the water service received by such customers, the county 609 where the customers are located also may deem it a public 610 necessity that the utility be brought under county ownership, 611 and may, upon its own election, begin condemnation by eminent 612 domain proceedings against the utility. As used in this section, 613 the term “customer” means an individual whose property is 614 serviced by a single meter or a person whose name appears on the 615 bill for a master meter. 616 (1)(a) If the commission receives a letter from the 617 customers of a utility stating their intent to file a petition 618 pursuant to this section, the commission staff, within 10 days 619 after receipt of the letter, shall notify the utility of the 620 customers’ intent to file a petition. 621 (b) Commission staff shall send to the customers 622 instructions regarding the information required on the petition 623 and the subsequent process the commission will follow. The 624 petition must be filed within 90 days after the receipt of the 625 instructions. Commission staff shall review the petition and 626 notify the customers within 10 days after receipt of the 627 petition that the petition is sufficient for the commission to 628 act or that additional information is necessary. The customers 629 must file a cured petition within 30 days after receipt of the 630 notice to cure and provide a copy of the petition to the 631 utility. If the customers fail to file or refile a petition 632 within the allotted time, the commission shall dismiss the 633 petition with prejudice, and the customers may not file another 634 petition for 1 year after the dismissal. 635 (c) Upon receipt of a properly filed petition, the 636 commission shall send to the county where the customers are 637 located a copy of the petition and notify such county of its 638 right to initiate condemnation by eminent domain proceedings 639 pursuant to this section and s. 153.03. 640 (2) A petition must: 641 (a) State with specificity each issue that customers have 642 with the quality of water service, each time the issue was 643 reported to the utility, and how long each issue has existed; 644 and 645 (b) Be signed by at least 65 percent of the customers of 646 the service area covered under the certificate of authorization. 647 A person whose name appears on the bill for a master meter may 648 sign a petition if at least 65 percent of the customers, 649 tenants, or unit owners served by the master meter support the 650 petition, in which case documentation of such support must be 651 included with the petition. 652 (3) If the petition is in compliance with this section and 653 the issues identified within the petition support a reasonable 654 likelihood that the utility is failing to provide quality of 655 water service, the utility shall thereafter be prohibited from 656 filing a rate case until the commission has issued a final order 657 addressing the issues identified in the petition. The utility 658 shall use the following criteria in preparing a response to the 659 commission, addressing the issues identified within the petition 660 and defending the quality of its water service: 661 (a) Federal and state primary water quality standards or 662 secondary water quality standards pursuant to s. 367.0812; and 663 (b) The relationship between the utility and its customers, 664 including each complaint received regarding the quality of water 665 service, the length of time each customer has been complaining 666 about the service, the resolution of each complaint, and the 667 time it has taken to address such complaints. 668 (4) The commission shall evaluate the issues identified in 669 the petition, the utility’s response as to whether it is 670 providing quality of water service, and any other factor the 671 commission deems relevant. 672 (5) Based upon its evaluation, the commission shall: 673 (a) Dismiss the petition, in which case the decision must 674 be supported by clear and convincing evidence and is subject to 675 ss. 120.569 and 120.57; or 676(b) Require the utility to take the necessary steps to677correct the quality of water service issues identified in the678petition. The commission shall set benchmarks within a679timeframe, not to exceed 3 years, and may require the utility to680provide interim reports describing its progress in meeting such681benchmarks. The commission may extend the term 3 years for682circumstances that delay the project which are not in the683control of the utility, such as natural disasters and obtaining684permits necessary for meeting such benchmarks; or685 (b)(c)Notwithstanding s. 367.045, revoke the utility’s 686 certificate of authorization, in which case, any condemnation 687 proceedings initiated pursuant to this section must be dismissed 688 and a receiver must be appointed pursuant to s. 367.165 until a 689 sale of the utility system has been approved pursuant to s. 690 367.071. 691 (6) The commission shall adopt by rule the format of and 692 requirements for a petition and may adopt other rules to 693 administer this section. 694 Section 4. This act shall take effect July 1, 2016.