Bill Text: FL S1754 | 2022 | Regular Session | Introduced
Bill Title: Local Government Communications Services
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2022-03-14 - Died in Regulated Industries [S1754 Detail]
Download: Florida-2022-S1754-Introduced.html
Florida Senate - 2022 SB 1754 By Senator Torres 15-01679-22 20221754__ 1 A bill to be entitled 2 An act relating to local government communications 3 services; amending s. 125.421, F.S.; removing 4 provisions which require counties and entities of 5 local government to pay ad valorem taxes or fees under 6 specified conditions on certain telecommunications 7 facilities; removing a waiver on immunity on taxation 8 of property for counties or entities of local 9 government under such circumstances; amending s. 10 166.047, F.S.; removing provisions which require 11 municipalities and entities of local government to pay 12 ad valorem taxes or fees under specified conditions on 13 certain telecommunications facilities; removing a 14 waiver on immunity on taxation of property for 15 municipalities or entities of local government under 16 such circumstances; amending ss. 196.012 and 199.183, 17 F.S.; removing provisions prohibiting property and use 18 of two-way telecommunications services under specified 19 circumstances from receiving certain tax exemptions; 20 amending s. 212.08, F.S.; removing provisions 21 prohibiting sales, rental, use, consumption, or 22 storage for use of two-way telecommunications services 23 under specified circumstances from receiving a certain 24 tax exemption; removing a waiver on immunity on 25 taxation of property for political subdivisions or 26 entities of local government under such circumstances; 27 amending s. 350.81, F.S.; removing provisions that 28 identify procedures which must be followed by 29 governmental entities before providing communications 30 services; removing a requirement for the Department of 31 Revenue to send a specified notice; removing 32 provisions relating to the use of certain revenues to 33 issue bonds to finance communications services; 34 removing provisions which provide certain procedures 35 if revenues do not exceed operating costs after a 36 specified time period; removing provisions exempting 37 certain governmental entities from certain 38 requirements relating to telecommunications services; 39 removing a provision specifying that certain airport 40 authorities or other governmental entities are not 41 exempt from certain procedural requirements relating 42 to telecommunications services; providing an effective 43 date. 44 45 Be It Enacted by the Legislature of the State of Florida: 46 47 Section 1. Section 125.421, Florida Statutes, is amended to 48 read: 49 125.421 Telecommunications services.—A telecommunications 50 company that is a county or other entity of local government may 51 obtain or hold a certificate required by chapter 364, and the 52 obtaining or holding of said certificate serves a public purpose 53onlyif the county or other entity of local government: 54 (1) Separately accounts for the revenues, expenses, 55 property, and source of investment dollars associated with the 56 provision of such service; and 57 (2) Is subject, without exemption, to all local 58 requirements applicable to telecommunications companies; and59(3)Notwithstanding any other provision of law, pays, on60its telecommunications facilities used to provide two-way61telecommunication services to the public for hire and for which62a certificate is required under chapter 364, ad valorem taxes,63or fees in amounts equal thereto, to any taxing jurisdiction in64which the county or other entity of local government operates.65Any entity of local government may pay and impose such ad66valorem taxes or fees. Any immunity of any county or other67entity of local government from taxation of the property taxed68by this section is hereby waived. 69 70 This section does not apply to the provision of 71 telecommunications services for internal operational needs of a 72 county or other entity of local government. This section does 73 not apply to the provision of internal information services, 74 including, but not limited to, tax records, engineering records, 75 and property records, by a county or other entity of local 76 government to the public for a fee. 77 Section 2. Section 166.047, Florida Statutes, is amended to 78 read: 79 166.047 Telecommunications services.—A telecommunications 80 company that is a municipality or other entity of local 81 government may obtain or hold a certificate required by chapter 82 364, and the obtaining or holding of said certificate serves a 83 municipal or public purpose under the provision of s. 2(b), Art. 84 VIII of the State Constitution, only if the municipality or 85 other entity of local government: 86 (1) Separately accounts for the revenues, expenses, 87 property, and source of investment dollars associated with the 88 provision of such services; and 89 (2) Is subject, without exemption, to all local 90 requirements applicable to telecommunications companies; and91(3)Notwithstanding any other provision of law, pays, on92its telecommunications facilities used to provide two-way93telecommunications services to the public for hire and for which94a certificate is required pursuant to chapter 364, ad valorem95taxes, or fees in amounts equal thereto, to any taxing96jurisdiction in which the municipality or other entity of local97government operates. Any entity of local government may pay and98impose such ad valorem taxes or fees. 99 100 This section does not apply to the provision of 101 telecommunications services for internal operational needs of a 102 municipality or other entity of local government. This section 103 does not apply to the provision of internal information 104 services, including, but not limited to, tax records, 105 engineering records, and property records, by a municipality or 106 other entity of local government to the public for a fee. 107 Section 3. Subsection (6) of section 196.012, Florida 108 Statutes, is amended to read: 109 196.012 Definitions.—For the purpose of this chapter, the 110 following terms are defined as follows, except where the context 111 clearly indicates otherwise: 112 (6) Governmental, municipal, or public purpose or function 113 shall be deemed to be served or performed when the lessee under 114 any leasehold interest created in property of the United States, 115 the state or any of its political subdivisions, or any 116 municipality, agency, special district, authority, or other 117 public body corporate of the state is demonstrated to perform a 118 function or serve a governmental purpose which could properly be 119 performed or served by an appropriate governmental unit or which 120 is demonstrated to perform a function or serve a purpose which 121 would otherwise be a valid subject for the allocation of public 122 funds. For purposes of the preceding sentence, an activity 123 undertaken by a lessee which is permitted under the terms of its 124 lease of real property designated as an aviation area on an 125 airport layout plan which has been approved by the Federal 126 Aviation Administration and which real property is used for the 127 administration, operation, business offices and activities 128 related specifically thereto in connection with the conduct of 129 an aircraft full service fixed base operation which provides 130 goods and services to the general aviation public in the 131 promotion of air commerce shall be deemed an activity which 132 serves a governmental, municipal, or public purpose or function. 133 Any activity undertaken by a lessee which is permitted under the 134 terms of its lease of real property designated as a public 135 airport as defined in s. 332.004(14) by municipalities, 136 agencies, special districts, authorities, or other public bodies 137 corporate and public bodies politic of the state, a spaceport as 138 defined in s. 331.303, or which is located in a deepwater port 139 identified in s. 403.021(9)(b) and owned by one of the foregoing 140 governmental units, subject to a leasehold or other possessory 141 interest of a nongovernmental lessee that is deemed to perform 142 an aviation, airport, aerospace, maritime, or port purpose or 143 operation shall be deemed an activity that serves a 144 governmental, municipal, or public purpose. The use by a lessee, 145 licensee, or management company of real property or a portion 146 thereof as a convention center, visitor center, sports facility 147 with permanent seating, concert hall, arena, stadium, park, or 148 beach is deemed a use that serves a governmental, municipal, or 149 public purpose or function when access to the property is open 150 to the general public with or without a charge for admission. If 151 property deeded to a municipality by the United States is 152 subject to a requirement that the Federal Government, through a 153 schedule established by the Secretary of the Interior, determine 154 that the property is being maintained for public historic 155 preservation, park, or recreational purposes and if those 156 conditions are not met the property will revert back to the 157 Federal Government, then such property shall be deemed to serve 158 a municipal or public purpose. The term “governmental purpose” 159 also includes a direct use of property on federal lands in 160 connection with the Federal Government’s Space Exploration 161 Program or spaceport activities as defined in s. 212.02(22). 162 Real property and tangible personal property owned by the 163 Federal Government or Space Florida and used for defense and 164 space exploration purposes or which is put to a use in support 165 thereof shall be deemed to perform an essential national 166 governmental purpose and shall be exempt. “Owned by the lessee” 167 as used in this chapter does not include personal property, 168 buildings, or other real property improvements used for the 169 administration, operation, business offices and activities 170 related specifically thereto in connection with the conduct of 171 an aircraft full service fixed based operation which provides 172 goods and services to the general aviation public in the 173 promotion of air commerce provided that the real property is 174 designated as an aviation area on an airport layout plan 175 approved by the Federal Aviation Administration. For purposes of 176 determination of “ownership,” buildings and other real property 177 improvements which will revert to the airport authority or other 178 governmental unit upon expiration of the term of the lease shall 179 be deemed “owned” by the governmental unit and not the lessee. 180Providing two-way telecommunications services to the public for181hire by the use of a telecommunications facility, as defined in182s. 364.02(14), and for which a certificate is required under183chapter 364 does not constitute an exempt use for purposes of s.184196.199, unless the telecommunications services are provided by185the operator of a public-use airport, as defined in s. 332.004,186for the operator’s provision of telecommunications services for187the airport or its tenants, concessionaires, or licensees, or188unless the telecommunications services are provided by a public189hospital.190 Section 4. Subsection (1) of section 199.183, Florida 191 Statutes, is amended to read: 192 199.183 Taxpayers exempt from nonrecurring taxes.— 193 (1) Intangible personal property owned by this state or any 194 of its political subdivisions or municipalities shall be exempt 195 from taxation under this chapter. Intangible personal property 196 related to the provision of telecommunications services provided 197 by the operator of a public-use airport, as defined in s. 198 332.004, for the operator’s provision of telecommunications 199 services for the airport or its tenants, concessionaires, or 200 licensees, and intangible personal property related to the 201 provision of telecommunications services provided by a public 202 hospital, are exempt from taxation under this chapter. This 203 exemption does not apply to:204(a)any leasehold or other interest that is described in s. 205 199.023(1)(d), Florida Statutes 2005; or206(b)Property related to the provision of two-way207telecommunications services to the public for hire by the use of208a telecommunications facility, as defined in s. 364.02(14), and209for which a certificate is required under chapter 364, when the210service is provided by any county, municipality, or other211political subdivision of the state. Any immunity of any212political subdivision of the state or other entity of local213government from taxation of the property used to provide214telecommunication services that is taxed as a result of this215paragraph is hereby waived. However, intangible personal216property related to the provision of telecommunications services217provided by the operator of a public-use airport, as defined in218s. 332.004, for the operator’s provision of telecommunications219services for the airport or its tenants, concessionaires, or220licensees, and intangible personal property related to the221provision of telecommunications services provided by a public222hospital, are exempt from taxation under this chapter. 223 Section 5. Paragraph (a) of subsection (6) of section 224 212.08, Florida Statutes, is amended to read: 225 212.08 Sales, rental, use, consumption, distribution, and 226 storage tax; specified exemptions.—The sale at retail, the 227 rental, the use, the consumption, the distribution, and the 228 storage to be used or consumed in this state of the following 229 are hereby specifically exempt from the tax imposed by this 230 chapter. 231 (6) EXEMPTIONS; POLITICAL SUBDIVISIONS.— 232 (a) There are also exempt from the tax imposed by this 233 chapter sales made to the United States Government, a state, or 234 any county, municipality, or political subdivision of a state 235 when payment is made directly to the dealer by the governmental 236 entity. This exemption shall not inure to any transaction 237 otherwise taxable under this chapter when payment is made by a 238 government employee by any means, including, but not limited to, 239 cash, check, or credit card when that employee is subsequently 240 reimbursed by the governmental entity. This exemption does not 241 include sales, rental, use, consumption, or storage for use in 242 any political subdivision or municipality in this state of 243 machines and equipment and parts and accessories therefor used 244 in the generation, transmission, or distribution of electrical 245 energy by systems owned and operated by a political subdivision 246 in this state for transmission or distribution expansion. 247 Likewise exempt are charges for services rendered by radio and 248 television stations, including line charges, talent fees, or 249 license fees and charges for films, videotapes, and 250 transcriptions used in producing radio or television broadcasts. 251The exemption provided in this subsection does not include252sales, rental, use, consumption, or storage for use in any253political subdivision or municipality in this state of machines254and equipment and parts and accessories therefor used in255providing two-way telecommunications services to the public for256hire by the use of a telecommunications facility, as defined in257s. 364.02(14), and for which a certificate is required under258chapter 364, which facility is owned and operated by any county,259municipality, or other political subdivision of the state. Any260immunity of any political subdivision of the state or other261entity of local government from taxation of the property used to262provide telecommunication services that is taxed as a result of263this section is hereby waived.However, the exemption provided 264 in this subsection includes transactions taxable under this 265 chapter which are for use by the operator of a public-use 266 airport, as defined in s. 332.004, in providing such 267 telecommunications services for the airport or its tenants, 268 concessionaires, or licensees, or which are for use by a public 269 hospital for the provision of such telecommunications services. 270 Section 6. Paragraphs (a) through (e), (k), and (l) of 271 subsection (2), and subsections (4) and (6) of section 350.81, 272 Florida Statutes, are amended to read: 273 350.81 Communications services offered by governmental 274 entities.— 275 (2)(a) A governmental entity that proposes to provide a 276 communications service shall hold no less than two public 277 hearings, which shall be held not less than 30 days apart.At278least 30 days before the first of the two public hearings,The 279 governmental entity must give notice of the hearing in the 280 predominant newspaper of general circulation in the area 281 considered for service. At least 40 days before the first public 282 hearing, the governmental entity must electronically provide 283 notice to the Department of Revenue and the Public Service 284 Commission, which shall post the notice on the department’s and 285 the commission’s website to be available to the public.The286Department of Revenue shall also send the notice by United287States Postal Service to the known addresses for all dealers of288communications services registered with the department under289chapter 202 or provide an electronic notification, if the means290are available, within 10 days after receiving the notice.The 291 notice must include the time and place of the hearings and must 292 state that the purpose of the hearings is to consider whether 293 the governmental entity will provide communications services. 294 The notice must include, at a minimum, the geographic areas 295 proposed to be served by the governmental entityand the296services, if any, which the governmental entity believes are not297currently being adequately provided.The notice must also state298that any dealer who wishes to do so may appear and be heard at299the public hearings.300 (b) At a public hearing required by this subsection, a 301 governmental entity must, at a minimum, consider: 302 1. Whether the service that is proposed to be provided is 303 currently being offered in the community and, if so, whether the 304 service is generally available throughout the community. 305 2.Whether a similar service is currently being offered in306the community and, if so, whether the service is generally307available throughout the community.3083.If the sameor similarservice is not currently offered, 309 whether any other service provider proposes to offer the sameor310a similarserviceand, if so, what assurances that service311provider is willing or able to offer regarding the same or312similar service. 313 3.4.The capital investment required by the government 314 entity to provide the communications service, the estimated 315 realistic cost of operation and maintenance and, using a full 316 cost-accounting method, the estimated realistic revenues and 317 expenses of providing the service and the proposed method of 318 financing. 319 4.5.The private and public costs and benefits of providing 320 the serviceby a private entity or a governmental entity,321including the affect on existing and future jobs, actual322economic development prospects, tax-base growth, education, and323public health. 324 (c) At one or more of the public hearings under this 325 subsection, the governmental entity must make available to the 326 public awritten businessplan for the proposed communications 327 service venturecontaining, at a minimum:3281.The projected number of subscribers to be served by the329venture.3302.The geographic area to be served by the venture.3313.The types of communications services to be provided.3324.A plan to ensure that revenues exceed operating expenses333and payment of principal and interest on debt within 4 years.3345.Estimated capital and operational costs and revenues for335the first 4 years.3366.Projected network modernization and technological337upgrade plans, including estimated costs. 338 (d)After making specific findings regarding the factors in339paragraphs (b) and (c),The governmental entity may authorize 340 providing a communications service by a majority recorded vote 341 and by resolution, ordinance, or other formal means of adoption. 342 (e)1. The governing body of a governmental entity may issue 343 one or more bonds to finance the capital costs for facilities to 344 provide a communications service.However:3451.A governmental entity may only pledge revenues in346support of the issuance of any bond to finance providing a347communications service:348a.Within the county in which the governmental entity is349located;350b.Within an area in which the governmental entity provides351electric service outside its home county under an electric352service territorial agreement approved by the Public Service353Commission before the effective date of this act; or354c.If the governmental entity is a municipality or special355district, within its corporate limits or in an area in which the356municipality or special district provides water, wastewater,357electric, or natural gas service, or within an urban service358area designated in a comprehensive plan, whichever is larger,359unless the municipality or special district obtains the consent360by formal action of the governmental entity within the361boundaries of which the municipality or special district362proposes to provide service. For consent to be effective, any363governmental entity from which consent is sought shall be364located within the county in which the governmental entity is365located or that county.366 2. Revenue bonds issued in order to finance providing a 367 communications service are not subject to the approval of the 368 electors if the revenue bonds mature within 15 years. Revenue 369 bonds issued to finance providing a communications service that 370 does not mature within 15 years must be approved by the 371 electors. The election must be conducted as specified in chapter 372 100. 373 (k) The governmental entity shall conduct an annual review 374 at a formal public meeting to consider the progress the 375 governmental entity is making toward reaching itsbusinessplan 376 goals and objectives for providing communication services. At 377 the public meeting the governmental entity shall review the 378 related revenues, operating expenses, and payment of interest on 379 debt. 380(l)If, after 4 years following the initiation of the381provision of communications services by a governmental entity or3824 years after the effective date of this act, whichever is383later, revenues do not exceed operating expenses and payment of384principal and interest on the debt for a governmental entity’s385provision of communications services, no later than 60 days386following the end of the 4-year period a governmental entity387shall hold a public hearing at which the governmental entity388shall do at least one of the following:3891.Approve a plan to cease providing communications390services;3912.Approve a plan to dispose of the system the governmental392entity is using to provide communications services and,393accordingly, to cease providing communications services;3943.Approve a plan to create a partnership with a private395entity in order to achieve operations in which revenues exceed396operating expenses and payment of principal and interest on397debt; or3984.Approve the continuing provision of communications399services by a majority vote of the governing body of the400governing authority.401 (4)(a) If a governmental entity was providing, as of April 402 1, 2005, advanced services, cable services, or 403 telecommunications services, thenit is not required to comply404with paragraph (2)(a), paragraph (2)(b), paragraph (2)(c),405paragraph (2)(d), sub-subparagraph (2)(e)1.c., paragraph (2)(f),406or paragraph (2)(k) in order to continue to provide advanced407services, cable services, or telecommunications services,408respectively, butit must comply with and be subject to all 409otherprovisions of this section. 410 (b) If a governmental entity, as of April 1, 2005, had 411 issued debt pledging revenues from an advanced service, cable 412 service, or telecommunications service, thenit is not required413to comply with paragraph (2)(a), paragraph (2)(b), paragraph414(2)(c), paragraph (2)(d), sub-subparagraph (2)(e)1.c., paragraph415(2)(f), or paragraph (2)(k) in order to provide advanced416services, cable services, or telecommunications services,417respectively, butit must comply with and be subject to all 418 other provisions of this section. 419 (c) If a governmental entity, as of April 1, 2005, has 420 purchased equipment specifically for the provisioning of 421 advanced service, cable service, or telecommunication service, 422 and, as of May 6, 2005, has a population of less than 7,500, and 423 has authorized by formal action the providing of an advanced 424 service, cable service, or telecommunication service, thenit is425not required to comply with paragraph (2)(a), paragraph (2)(b),426paragraph (2)(c), paragraph (2)(d), sub-subparagraph (2)(e)1.c.,427paragraph (2)(f), or paragraph (2)(k) in order to provide428advanced service, cable service, or telecommunication service,429respectively, butit must comply with and be subject to all 430 other provisions of this section. 431 432 This subsection does not relieve a governmental entity from 433 complying with subsection (5). 434 (6) To ensure the safe and secure transportation of 435 passengers and freight through an airport facility, as defined 436 in s. 159.27(17), an airport authority or other governmental 437 entity that provides or is proposing to provide communications 438 services only within the boundaries of its airport layout plan, 439 as defined in s. 333.01(6), to subscriberswhich are integral440and essentialto thesafe andsecure transportation of 441 passengers and freight through the airport facility, is exempt 442 from this section. An airport authority or other governmental 443 entity that provides or is proposing to provide shared-tenant 444 service under s. 364.339, but not dial tone enabling subscribers 445 to complete calls outside the airport layout plan, to one or 446 more subscribers within its airport layout plan which are not 447 integral and essential to the safe and secure transportation of 448 passengers and freight through the airport facility is exempt 449 from this section.An airport authority or other governmental450entity that provides or is proposing to provide communications451services to one or more subscribers within its airport layout452plan which are not integral and essential to the safe and secure453transportation of passengers and freight through the airport454facility, or to one or more subscribers outside its airport455layout plan, is not exempt from this section. By way of example456and not limitation, the integral, essential subscribers may457include airlines and emergency service entities, and the458nonintegral, nonessential subscribers may include retail shops,459restaurants, hotels, or rental car companies.460 Section 7. This act shall take effect July 1, 2022.