F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

153.18 Exemption of property from taxation. -As proper facilities for the furnishing of water for human consumption and fire protection and proper facilities for the treatment, purification and disposal of sewage are essential for the health of the inhabi­tants of the county and for its industrial and com­mercial development, and as the exercise of the pow­ers conferred by this chapter to effect such purposes constitutes the performance of essential county functions, and is hereby declared to be a county pur­pose, and as the facilities constructed under the pro­visions of this chapter, constitute public property and are used for county purposes, the county shall not be required to pay any taxes or assessments upon any such facilities or any part thereof.

History.-s. 18, ch. 29837, 1955.

153.19 Private water supplies.-No jurisdic­tion hereunder shall be exercised by the board of county commissioners over any privately owned in­dustrial water supply system or the disposition of industrial or manufacturing wastes nor shall any rule or regulation be adopted or suit instituted or prosecuted hereunder designed or intended to con­trol or regulate the same, unless one of the following conditions exists:

(1) That prior to the· utilization of any waters for the disposition of industrial or manufacturing waste, such waters were being used as a source of, or as a part of a water supply system under this chapter, or

(2) In the case of an industrial or manufacturing plant that is connected with and using any facility authorized by this chapter; but any such rule, regu­lation or suit shall be limited to the particular wa­ters or the particular industrial or manufacturing plant affected by one of the above conditions; provid­ed, however, this shall not restrain or prevent the Department of Health and Rehabilitative Services in anywise from instituting a suit or taking other action in event said plant or manufacturing compa­ny shall pollute the waters in the state as defined in s. 387.08.

History.-s. 19, ch. 29837, 1955; ss. 19, 35, ch. 69-106; s. 28, ch. 77-147. cf.-s. 387.08 Penalty for deposit of deleterious substahces in lakes, streams,

rivers, ditches, etc.

153.20 Alternative method.-(1) This chapter shall be deemed to provide an

additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and additional to the powers con­ferred upon the commission by other laws, and shall not be regarded as in derogation of any powers now existing. This chapter being necessary for the wel­fare of the inhabitants of the several counties of the state shall be liberally construed to effect the pur­poses thereof.

(2) This chapter shall not repeal any local or spe­cial act or law conferring upon any of the several counties or county commissions the powers and du­ties or any of them imposed hereby, but it shall be deemed to be an alternative or additional method for such counties or county commissions to effect the purposes of this chapter.

History.-ss. 20, 22, ch. 29837, 1955.

153.50 153.51 153.52 153.53

153.54

153.55

153.56

153.57 153.58

153.59 153.60

153.61 153.62 153.63 153.64 153.65 153.66

153.67 153.68

153.69

153.70

153.71 153.72

153.73

153.74

153.75 153.76 153.77

153.78 153.79

153.80 153.81 153.82

153.83 153.84 153.85

153.86

153.87

153.88 153.95

651

PART II

COUNTY WATER AND SEWER DISTRICTS

Short title. Legislative intent. Definitions. Establishment of districts in unincorpo­

rated areas. Same; petition for; report by county com­

missioners. Same; public hearing; findings of commis­

sion. Call election to determine creation of dis­

trict, issuance of bonds. Ballots and election officials. Election results; resolution of commission;

publication of notice of estoppel. Circuit court, jurisdiction. County commissioners ex officio governing

board. Expenses of election, etc. District board; powers. Revenue bonds; issuance, etc. Schedule of rates and fees. Trust funds; trustees. Covenants of district board with bondhold­

ers. Unpaid fees to constitute lien. General obligation bonds, election; issu­

ance, tax levy. County property appraiser ex officio tax

assessor for district. Provisions of s. 153.63 applicable to gener­

al obligation bonds. Publication of notice of issuance of bonds. Bonds; qualities of negotiable instruments;

rights of holders. Assessable improvements; levy and pay­

ment of special assessments. Issuance of certificates of indebtedness

based on assessments for assessable im­provements.

Annual reports of district board. Exemption from taxation. District bonds as securities for public bod­

ies. Bonds as payment for services. Contracts for construction of improve-

ments, sealed bids. Consolidation of systems. Ad valorem maintenance tax. Handling of taxes and special assessments,

district treasurer. Free water and sewer services prohibited. Contracts enforceable by bondholders. Conveyance of property without considera-

tion. District approval of construction of water

and sewage facilities. Mortgage or sale by board of district prop­

erty prohibited; rights of bondholders protected.

Construction of law. Rural water and sewer service pilot

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

project.

153.50 Short title.-This law may be known and cited as the "County Water and Sewer District Law."

History.-s. 1, ch. 59-466.

153.51 Legislative intent.-It is declared as a matter of legislative determination that the exten­sive growth of population and attendant industry and commerce throughout the state has given rise to public health and water supply problems of state­wide concern, in that many unincorporated areas of the counties of the state are not served by water and sewer facilities normally and generally provided and maintained by the municipalities of the state or their agencies or instrumentalities or by private cor­porations or persons and are not otherwise adequate­ly provided for; that many of such unincorporated areas are in extreme need of such sewage disposal and water supply facilities, and that it is the intent and purpose of this law to provide means for the counties of the state to alleviate such conditions in such unincorporated areas.

History.-s. 2, ch. 59-466.

153.52 Definitions.-As used in this law, the fol­lowing words and terms shall have the following meanings, unless some other meaning is plainly in­tended:

(1) "District" shall mean any unincorporated contiguous area comprising part but not all of the area of any county created into and existing as a water and sewer district pursuant and subject to this law, having the rights, powers and privileges grant­ed in this law.

(2) "Board of county commissioners" shall mean the board of county commissioners of the county in which a district created pursuant to this law is locat­ed.

(3) "District board" shall mean the board of county commissioners of any county constituting the governing body of any district as provided for in this law, and acting for and on behalf of such district as a body corporate and politic.

(4) "Sewer system" shall mean and shall include any plant, system, facility or property and additions, extensions and improvements thereto at any future time constructed or acquired as part thereof, useful or necessary or having the present capacity for fu­ture use in connection with the collection, treat­ment, purification or disposal of sewage of any na­ture or originating from any source, including indus­trial wastes resulting from any processes of industry, manufacture, trade or business or from the develop­ment of any natural resources; and without limiting the generality of the foregoing definition shall em­brace treatment plants, pumping stations, lift sta­tions, valves, force mains, intercepting sewers, later­als, pressure lines, mains and all necessary appurte­nances and equipment, all sewer mains and laterals for the reception and collection of sewage from prem­ises connected therewith, and shall include all real and personal property and any interest therein, rights, easements and franchises of any nature whatsoever relating to any such system and neces­sary or convenient for the operation thereof.

(5) "Water system" shall mean and include any

plant, system, facility or property and additions, ex­tensions and improvements thereto at any future time constructed or acquired as part thereof, useful or necessary or having the present capacity for fu­ture use in connection with the development of sources, treatment or purification and distribution of water for domestic or industrial use and, without limiting the generality of the foregoing, shall in­clude dams, reservoirs, storage tanks, mains, lines, valves, pumping stations, laterals, and pipes for the purpose of carrying water to the premises connected with such system and shall include all real and per­sonal property and any interests therein, rights, easements and franchises of any nature whatsoever relating to any such system and necessary or conven­ient for the operation thereof.

(6) "Cost" as applied to the acquisition and con­struction of a water system or a sewer system or extensions, additions or improvements thereto shall include the cost of construction or reconstruction, acquisition or purchase, the cost of all labor, materi­als, machinery and equipment, cost of all lands and interest therein, property, rights, easements and franchises of any nature whatsoever, financing charges, interest prior to and during construction and for not more than 2 years after completion of the construction or acquisition of such water system or sewer system or extensions, additions or improve­ments thereto, the creation of initial reserve or debt service funds, bond discount, cost of plans and speci­fications, surveys and estimates of costs and reve­nues, cost of engineering, financial and legal ser­vices, and all other expenses necessary or incidental in determining the feasibility or practicability of such construction, reconstruction or acquisition, ad­ministrative expenses and such other expenses as may be necessary or incidental to financing author­ized by this law, and including reimbursement of the county or any other person, firm or corporation for any moneys advanced to a district for any expenses incurred by a district or county in connection with any of the foregoing items of cost, or the creation of such district.

(7) "Assessable improvements" shall mean that portion or portions of a sewer system or a water system of a local nature and of benefit to the prem­ises or lands served thereby and particularly, with­out limiting the generality of the foregoing, with reference to a sewer system, shall include, without being limited to, laterals and mains for the collection and reception of sewage from premises connected therewith, local or auxiliary pumping or lift sta­tions, treatment plants or disposal plants, and other appurtenant facilities and equipment for the collec­tion, treatment and disposal of sewage; and with ref­erence to a water system shall include such mains and laterals and other distribution facilities, pump­ing stations, and sources of supply as are of benefit to the property served by such water system together with incidental equipment and appurtenances nec­essary therefor.

(8) "District clerk" shall mean the clerk of the circuit court and ex officio clerk of the board of coun­ty commissioners in and for any county having or establishing a district pursuant to this law, who shall be clerk and treasurer of the district.

652

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

(9) "Revenue bonds" shall mean bonds or other obligations secured by and payable from the reve­nues derived from rates, fees and charges collected by a district from the users of the facilities of any water system or sewer system, or both, and which may be additionally secured by a pledge of the pro­ceeds of special assessments levied against benefited property or by a pledge of the full faith and credit of the district, or both.

(10) "General obligation bonds" shall mean bonds or other obligations secured by the full faith and credit and taxing power of the district and paya­ble from ad valorem taxes levied and collected on all taxable property in the district, without limitation of rate or amount, and may be additionally secured by the pledge of either or both the proceeds of special assessments levied against benefited property, or revenues derived from said water system or sewer system, or both.

(11) "Assessment bonds" shall mean bonds or other obligations secured by and payable from spe­cial assessments levied against benefited lands, and which may be additionally secured by a pledge of the full faith and credit of the district.

History.-s. 3, ch. 59·466.

153.53 Establishment of districts in unincor­porated areas.-

(1) Subject to this law, the board of county com­missioners of any county may establish one or more districts as it shall in its discretion determine to be necessary in the public interest. Any such district shall consist of only unincorporated contiguous areas of such county, comprising part but not all of the areas of such county. As used herein, "unincor­porated areas" shall mean all lands outside of the incorporated boundaries of towns, cities, or other municipalities of the state whether existing under the general law or special act and shall include any lands, areas, or property within the district of any special tax districts, school district, or any other pub­lic corporations or bodies politic of any nature what­soever, except municipalities.

(2)(a) As an alternative method of establishing a water and sewer system district, a petition signed by persons owning not less than 10 percent of the prop­erty within the boundaries of the proposed district may be filed with the property appraiser of the coun­ty in which said district is to be located.

(b) Said petition shall describe the territory to be included in said proposed district, the name of the district if there is one, and the general purpose for which the district is being established, as set out in ss. 153.51 and 153.52.

(c) Said petition shall request the board of county commissioners to call and provide for a referendum election to determine whether such district shall be created and further call for an election of the first board of commissioners for said district.

(d) Within 30 days after the petition is received by the property appraiser, said property appraiser shall determine whether such petition has been duly signed by the requisite number of property owners within the boundaries of the proposed district. If there is a sufficient number of valid signatures, the property appraiser shall forthwith deliver said peti­tion to the board of county commissioners who shall

within 60 days hold an election to determine if the district shall be created. The board of county com­missioners shall have notice of such election pub­lished once a week for 4 successive weeks in a news­paper of general circulation within the area of the proposed district. Said notice shall describe the pur­pose for which the district is to be established and the territory proposed to be included in the said dis­trict. If there is no such newspaper, then notice may be posted on the courthouse door and in five conspic­uous places within the proposed district.

(3)(a) At the same time the board of county com­missioners receives from the property appraiser a petition and fixes the date for an election to deter­mine if a district shall be established, said board of county commissioners may also call an election for three persons to serve as commissioners of the pro­posed district. The county commissioners shall also advertise in the same manner that an election is to be held for three commissioners of the proposed dis­trict and shall set out in said notice the qualifica­tions of candidates to qualify by petition for election to said office. The board of county commissioners shall cause to be printed on the ballot for said district referendum the names of any persons qualified as candidates for the office of member of the board of commissioners of the district who have filed with the board of county commissioners a petition signed by not less than the owners oflO percent of the proper­ty within the district. The candidate's petition shall be filed with the board of county commissioners not less than 14 days prior to said election with a qualify­ing fee in the amount of $25 payable to the board of county commissioners. Said fee shall be used to de­fray the expense of the election. Should the qualify­ing fees exceed the cost of the election, the surplus shall be transferred into the general operating fund of the water and sewer district if it be established or ifit be rejected then said surplus shall be transferred to the general county operating fund.

(b) The supervisor of elections shall assist the board of county commissioners in preparing a list of eligible electors from a list of property owners within the proposed district to be furnished by the property appraiser, and said supervisor shall further assist the board of county commissioners with such other administrative matters pertaining to the conduct of the election as the county commission deems appro­priate.

(c) The ballot to be used at said election shall be in substantially the following form:

OFFICIAL BALLOT ..... WATER AND SEWER DISTRICT ... .. COUNTY, FLORIDA

SPECIAL ELECTION .... u.~~~.~A!!.\~L. 1. Shall ..... Water and Sewer District ..... County, Florida, be created? ..... Yes ..... No 2. Make a cross mark (x) before the names of the candidates of your choice.

FOR COMMISSIONERS OF WATER AND SEWER DISTRICT

VOTE FOR THREE WRITE-IN VOTES

653

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

Blank lines shall be placed on the ballot so that the name of any person who did not file a petition and who is otherwise qualified may be written in, in the form of an irregular or write-in vote. The inspectors and clerks for said election shall be appointed by the board of county commissioners. The ballots shall be furnished by the board of county commissioners. The board of county commissioners shall designate an appropriate polling place or polling places where said election shall be held. The inspectors and clerks shall make returns to the board of county commis. sioners and said board of county commissioners shall canvass said election returns and declare the results thereof at a meeting to be held as soon as practical after said election.

(d) Said district shall be established upon a favor­able vote in person or by proxy of the owners of 50 percent or more of the property within the district, and the three persons receiving the highest number of votes cast for candidates shall be elected commis­sioners of the district until their successors are elect­ed. Upon expiration of20 days after the declaration of the result of said election by the board of county commissioners, such declaration of the results shall be regarded for all purposes as conclusive.

(e) At said election only persons owning property within the district shall be qualified to vote. Such vote shall be in person or by proxy. No proxy shall be effective unless acknowledged by a notary public. If the board of county commissioners shall find and determine that the result of said election is adverse to the proposition of creating a district no other elec­tion for the same purpose shall be held within 1 year thereafter.

(f) If a requisite number of votes at such special election shall favor the creation of such a district, then said board of county commissioners.shall enter an order constituting the territory in which said spe­cial election was held as a district with all the powers granted to water and sewer districts under the provi­sions of chapter 153.

(g) Commissioners of said district shall be the owners of property within said district who are regis­tered electors in some county in the state, at least one of whom shall reside in the county or adjoining county.

(4) Beginning with the next general election fol­lowing the creation of the district, and in the general election each 4 years thereafter, the said district

board of county commissioners for the unexpired term.

(6)(a) As soon as practicable after such district commissioners have been elected and have qualified, they shall meet and organize by election from among their number a chairman, a secretary, and a treasur­er. The secretary need not be a commissioner. Two members of the board shall constitute a quorum. The vote of two members shall be necessary to transact business.

(b) Each commissioner, before he assumes office, shall be required to give the Governor a good and sufficient surety bond in the sum of $2,000, the cost thereof being borne by the district, conditioned on the faithful performance of the duties of his office, said bond to be approved and filed in the same man­ner as is that of the board of county commissioners. The failure of any person to make and file this bond within 10 days after his election shall create a vacan­cy on said board.

(7) The powers and duties of the commissioners shall be the same as those of county commissioners supervising districts as provided for under subsec­tion (1).

(8) Members of the board of commissioners shall each be paid $5 a day for each day's service; provided the per diem compensation shall not exceed the sum of $300 for each commissioner during any one year. Said members shall be reimbursed for traveling ex­penses incurred in the performance of their duties as provided in s. 112.061. All boards of commissioners shall hold regular monthly meetings, and special meetings as needed, in the courthouse or in an ap­propriate place within the district.

(9) The owners of not less than 50 percent of the property within any proposed or established water and sewer district may at any time petition for a referendum calling for any two or more of said dis­tricts which are contiguous to be combined and be supervised by a single board elected as hereinabove described. However, if the board of county commis­sioners shall deem such a combination to be reasona­bly necessary for the purpose of providing the im­provements authorized by this chapter, it may ap­prove same, subject to referendum requirements, notwithstanding that the territories to be combined and included in the new district are not contiguous. Said referendum shall be conducted in substantially the same manner as a referendum to create a single district.

(10) All projects in any district created pursuant to this section as amended by chapter 70-433, Laws of Florida, affecting lakes, streams, or navigable wa­ters shall conform to the provisions of chapter 253.

History.- s. 4, ch. 59-466; ss. 1. 2, ch. 70-433; s. 1, ch. 76-148; s. 1, ch. 77-102.

commissioners shall qualify by petition and be elect- 153.54 Same; petition for; report by county ed by the property owners of the district. The three commissioners.-Upon receipt of a petition duly persons receiving the highest number of votes cast in signed by not less than 25 qualified electors who are the general election shall serve 4 years and shall also freeholders residing within an area proposed to take office at the same time as do other county offi- be incorporated into a water and sewer district pur­cers, on the first Tuesday after the first Monday in suant to this law and describing in general terms the January next after their election, and serve on the proposed boundaries of such proposed district, the same cycle as do other constitutional county officers. board of county commissioners if it shall deem it

(5) In the event of a vacancy due to any cause in necessary and advisable to create and establish such any board of commissioners, the same shall be filled proposed district for the purpose of constructing, es­by appointment by a majority of the members of the tablishing or acquiring a water system or a sewer

654

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

system or both in and for such district (herein called "improvements"), shall first cause a preliminary re­port to be made which such report together with any other relevant or pertinent matters, shall include at least the following:

(1) A general description of the proposed im­provements to be made in such district.

(2) A general estimate of the cost of the proposed improvements.

(3) The present condition of water and sewer fa­cilities in the area comprising such proposed district.

(4) Findings with respect to the necessity or rea­sonableness of the inclusion of lands proposed to be included within the district with reference to the benefits to be derived or able to be derived by such included lands from such proposed improvements, and the necessity or reasonableness of the exclusion oflands adjacent to or within such proposed district with reference to such benefits.

Such report shall be filed in the office of the clerk of the circuit court and shall be open for the inspection of any taxpayer, property owner, qualified elector or any other interested or affected person.

History.-s. 5, ch. 59·466.

153.55 Same; public hearing; findings of com· mission.-

(1) Upon submission of any such report the board of county commissioners shall hold a public hearing upon such report and the question of the creation of such district, giving at least 20 days' notice of such hearing by advertisement in a newspaper published in the county and circulating in the area of the pro­posed district or by posting as provided in s. 153.56 if no such newspaper be published.

(2) At such hearing any taxpayer, property own­er, qualified elector or other interested or affected person may make written objections to the creation of such proposed district or the exclusion of any lands therefrom, or the inclusion of any lands there­in, the desirability or the feasibility of such proposed improvements or to any other matter, which objec­tions, if any, together with any evidence submitted therewith shall be given full and open consideration by the board of county commissioners.

(3) If upon due consideration of such preliminary report, any such objections and any other pertinent matters, such board of county commissioners shall be satisfied that the construction and acquisition of said improvements is feasible and desirable and of benefit to all the lands included in such proposed district or that certain lands shall be included or excluded, and that the creation of said district is necessary in the public interest, it shall so determine and record such findings and determination, togeth­er with an accurate description of the proposed boundaries of the proposed district and the proposed corporate name of such district, by resolution duly adopted.

(4) If the board of county commissioners shall after such hearing deem the creation of such pro­posed district inadvisable and not in the public inter­est, it shall make such a finding and determination and no further proceedings shall be taken for the creation of the proposed district under such petition; provided, however, that such finding and determina-

tion shall not be deemed to bar the creation of any proposed district at any future time in the manner provided in this law upon the filing of a new petition therefor as provided in this law.

History.-s. 6, ch. 59·466.

153.56 Call election to determine creation of district, issuance of bonds.-

(1) If the board of county commissioners shall deem that the creation of the proposed district is necessary in the public interest as provided in s. 153.55, it shall call an election for the purpose of submitting to the qualified electors residing in said proposed district the question of the creation and establishment of said district and may also submit at a separate election to be held at the same time, to the qualified electors who are freeholders residing in such district, the question of the issuance of general obligation bonds of said district to pay all or part of the cost of the proposed improvements. Said election shall be held not less than 30 days from the date of the first publication or posting of the notice thereof and such notice shall be published once a week for 4 successive weeks in a newspaper published in the county and circulating in the area of the proposed district, and if no such newspaper be published in the county and circulating in the district, such notice shall be posted in at least 10 different public places within the district.

(2) Except as otherwise provided in this law, said election shall be held and conducted pursuant to the general laws of the state applicable thereto, provid­ed, that if the question of the issuance of general obligation bonds is to be voted upon, the election thereon shall conform to the applicable provisions of the constitution and statutes of Florida relating to freeholder elections.

(3) Said call for election of the qualified electors and notice thereof shall include a description ofthe proposed boundaries of said district, which need not be by metes and bounds but shall be in such detail as to give a reasonable and accurate description thereof and shall further specifically recite that said district, if created, shall be authorized:

(a) To construct or acquire a sewer system or wa­ter system or both for said district and any improve­ments, additions and extensions thereto and to have exclusive control and jurisdiction thereof;

(b) To finance the cost of such construction or acquisition of such improvements by the issuance of either its revenue bonds, general obligation bonds or assessment bonds, as defined in this law, or any com­bination thereof;

(c) Said notice shall further expressly state that such district, if created and established, shall consti­tute a special tax district, all the property within which shall be subject to the levy of ad valorem taxes without limitation of rate or amount to secure payc ment of any of its general obligations, and for the maintenance of such district within the limitations of this law.

(4) The notice of the separate election of the qual­ified freeholder electors, if held at the same time, shall be in substantially the form provided in the applicable statutes of Florida relating to freeholder

655

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

elections.

Such elections may be held at any time, including the dates upon which general or primary elections are held in such county.

History.-s. 7, ch. 59-466.

153.57 Ballots and election officials.-The in­spectors and clerks for said election or elections shall be appointed by and the ballots to be voted shall be prepared and furnished by the board of co~nty com­missioners, which shall designate the polhng place or places at which such election or elections shall be held. The inspectors and clerks shall make returns to the board of county commissioners.

History.-s. 8, ch. 59-466.

153.58 Election results; resolution of commis­sion; publication of notice of estoppel.-

(1) Immediately after any such election or elec­tions the board of county commissioners shall hold a meeting and shall canvass the votes cast at said elec­tion or elections and declare the results thereof by resolution.

(a) If a majority of the qualified electors who vote in said election on the creation of such district shall vote in fav:or of creation of said district the board of county commissioners shall by resolution declare the district duly created, and forthwith cause an es­toppel notice to be published one time in a newspa­per published in the county and circulating in t~e district, or ifthere be no such newspaper, posted m at least 10 public places in the district. Said notice shall recite the due creation of said district pursuant to this law and the affirmative vote of the majority of the qualified electors voting thereon at sai~ elec­tion duly called and held; and shall further rec1te the substance of the provisions of said notice of election set forth in s. 153.56 and that all of the proceedings had and actions taken in the creation of said district, the holding of said election and an accurate descrip­tion of said district are on file in the office of the clerk of the circuit court open to public inspection, and shall state that any action or proceeding of any kind or nature questioning the validity of the crea­tion and establishment of said district, including but not limited to, the exclusion or inclusion of lands therein or other pertinent matters, shall be com­menced within 20 days after the first publication of such notice in the circuit court in and for the county. If no such action or proceeding shall be commenced or instituted within 20 days after the first publica­tion or posting of such notice, then all taxpayers, property owners or persons residing within said dis­trict or any other interested parties, public, private or corporate within the county and all the persons whatsoever shall be forever barred and foreclosed from instituting or commencing any action or pro­ceedings which question the validity of the creation and establishment of said district and the bounda­ries thereof.

(b) If a majority of the qualified freeholder elec­tors residing in the district shall participate in the separate freeholder election on the question of the issuance of general obligation bonds, in the event a separate freeholders election is held at the same time as the election on the creation of the district,

and a majority of such qualified freeholder electors shall vote in favor of the issuance of such general obligation bonds then such general obligation bonds shall be deemed approved, but shall not be issued unless the district shall be duly created at the elec­tion of the qualified electors referred to above.

(2) If the qualified electors who vote in said elec­tion on the creation of such district shall vote against the creation of such proposed district, a new petition pertaining to any part of the same area just consid­ered by the board of county commissioners shall not be acted upon by the board of county commissioners until after the expiration of 9 months from the date of the election defeating the creation of said pro­posed district, even though such new petition shall have been filed by petitioners other than those who originally filed the petition just acted upon by the board of county commissioners, unless 25 percent of the qualified efectors of the area petition to have an election.

History.-s. 9, ch. 59-466; s. 1, ch. 63-94.

153.59 Circuit court, jurisdiction.-The cir­cuit court in and for any county so establishing a district is vested with jurisdiction in any such pro­ceedings or suits affecting the creation of such dis­tricts and all matters pertinent thereto and shall give preference and priority to any such actions or proceedings pending in such court subject to existing statutes.

History.-s. 10, ch. 59-466.

153.60 County commissioners ex officio gov­erning board.-The board of county commissioners of the county in which any such district is created shall be the ex officio governing board of such dis­trict. Such district shall be a body corporate and politic, exercising essential governmental functions and shall have the power to sue and be sued; to contract; to adopt and use a common seal and alter the same at pleasure; to purchase, hold, lease or oth­erwise acquire and convey such real property and personal property and interests therein as may be necessary or proper to carry out the purposes of this law. The Clerk of the Circuit Court shall be ex officio the clerk and treasurer of the district, and the coun­ty tax collector shall be ex officio the tax collector of the district.

History.-a. 11, ch. 59-466.

153.61 Expenses of election, etc.-The prelimi­nary expenses for the creation and incorporation of any such district, including election expenses, ex­penses for legal, financial or other services in con­nection with the preliminary report undertaken pursuant to s. 153.54, shall be payable out of general county funds, but shall be a reimbursable expense to be paid from the proceeds of any bonds or other obli­gations issued by said district to accomplish the pur­poses of this law.

History.-s. 12, ch. 59-466.

153.62 District board; powers.-The district board for and on behalf of any district created here­under in addition to and supplementing other pow­ers granted in this law, is authorized and empow­ered:

656

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

(1) To make rules and regulations for its own government and proceedings and to adopt an official seal for the district;

(2) To employ engineers, attorneys, accountants, financial or other experts and such other agents and employees as said district board may require or deem necessary to effectuate the purposes of this law, or to contract for any of such services;

(3) To construct, install, erect, acquire and to op­erate, maintain, improve, extend, or enlarge andre­construct a water system or a sewer system or both within said district and the environs thereof and to have the exclusive control and jurisdiction thereof; to issue its general obligation bonds, revenue bonds or assessment bonds, or any combination of the fore­going, to pay all or part of the cost of such construc­tion, reconstruction, erection, acquisition or installa­tion of such water system, sewer system or both; provided that the total amount of all general obliga­tion indebtedness of the district issued pursuant to this law shall not exceed 15 percent of the assessed value of the taxable property in the district at the time ofthe creation of such district, to be ascertained by the assessed valuations for county taxes in effect at the time of the creation of such district.

(4) To levy and assess ad valorem taxes without limitation of rate or amount on all taxable property within said district for the purpose of paying princi­pal of and interest on any general obligation bonds which may be issued for the purposes of this law, not in excess of the total amount of such general obliga­tion bonds provided for in subsection (3).

(5) To regulate the use of sewers and the supply of water within the district and to prohibit the use and maintenance of outhouses, privies, septic tanks or other unsanitary structures or appliances.

(6) To fix and collect rates, fees and other charges to persons or property or both for the use of the facilities and services provided by any water system or sewer system or both and to fix and collect charges for making connections with any such water system or sewer system and to provide for reasonable penal­ties on any users or property for any such rates, fees or charges that are delinquent.

(7) To acquire in the name of the district by pur­chase, gift or the exercise of the right of eminent domain, such lands and rights and interest therein, including lands under water and riparian rights and to acquire such personal property as it may deem necessary in connection with the construction, re­construction, improvement, extension, installation, erection or operation and maintenance of any water system or sewer system or both and to hold and dis­pose of all real and personal property under its con­trol; provided, however nothing herein contained shall authorize the power of eminent domain to be exercised beyond the limits of the district.

(8) To exercise exclusive jurisdiction, control and supervision over any water system or sewer system or both, or any part thereof owned, operated and maintained by the district and to make and enforce such rules and regulations for the maintenance and operation of any water system or sewer system or both as may be, in the judgment of the district board, necessary or desirable for the efficient operation of

any such systems or improvements in accomplishing the purposes of this law.

(9) To restrain, enjoin or otherwise prevent the violation of this law or of any resolution, rule or regulation adopted pursuant to the powers granted by this law.

(10) To join with any other district or districts, cities, towns, counties or other political subdivisions, public agencies or authorities in the exercise of com­mon powers.

(11) To contract with municipalities or other pri­vate or public corporations or persons to provide or receive a water supply or for sewage disposal, collec­tion or treatment.

(12) To prescribe methods of pretreatment of in­dustrial wastes not amenable to treatment with do­mestic sewage before accepting such wastes for treatment and to refuse to accept such industrial wastes when not sufficiently pretreated as may be prescribed, and by proper resolution to prescribe penalties for the refusal of any person or corporation to so pretreat such industrial wastes.

(13) To require and enforce the use of its facilities whenever and wherever they are accessible.

(14) To sell or otherwise dispose of the effiuent, sludge or other byproducts as a result of sewage treatment.

(15) To accomplish construction by holding hear­ings, advertising for construction bids, and letting contracts for all or any part or parts of the construc­tion of any water system or sewer system or both, to the lowest responsible bidder or bidders or rejecting any and all bids at its discretion, provided that the district may purchase supplies, material and equip­ment as well as expend for construction work in an amount not to exceed one thousand dollars total cost of each transaction without advertising or receiving bids.

(16) To construct and operate connecting, inter­cepting or outlet sewers and sewer mains and pipes and water mains, conduits or pipe lines in, along or under any streets, alleys, highways or other public places or ways within the state or any municipality or political subdivision necessary for the purposes of the district.

(17) Subject to such provisions and restrictions as may be set forth in the resolution authorizing or securing any bonds or other obligations issued under the provisions of this law, to enter into contracts with the government of the United States or any agency or instrumentality thereof, or with any coun­ty, municipality, district, authority or political sub­division, private corporation, partnership, associa­tion or individual providing for or relating to the treatment, collection and disposal of sewage, or the treatment, supply and distribution of water and any other matters relevant thereto or otherwise neces­sary to effect the purposes of this law, and to receive and accept from any federal agency, grants or loans for or in aid of the planning, construction, recon­struction or financing of any water system or sewer system or both and to receive and accept aid or con­tributions or loans from any other source of.either money, property, labor or other things of value, to be

657

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

held, used and applied only for the purpose for which such grants, contributions or loans may be made.

History.-s. 13, ch. 59-466.

153.63 Revenue bonds; issuance, etc.-(1) The district board for and on behalf of any

district is authorized to provide from time to time for the issuance of revenue bonds to pay all or part of the cost of a water system or sewer system, or both, or any additions, extensions or improvements thereto. The principal of and interest on any such bonds shall be payable from the rates, fees, charges or other revenues derived from the operation of any such sys­tem or systems in the manner provided in this law and the resolution authorizing such revenue bonds and pledging such revenues. Such revenue bonds may also be additionally secured by the pledge of special assessments levied pursuant to this law, or by a pledge of the full faith and credit of said district. The revenue bonds of each issue shall be dated, shall bear interest at such rate or rates as shall not exceed 7Y, percent per annum, shall mature at such time or times not exceeding 40 years from their date or dates as may be determined by the district board and may be made redeemable before maturity, at the option of the district board, under such terms and condi­tions and at such prices as may be fixed by the dis­trict board prior to the issuance of such bonds. The district board shall determine the form of the bonds, including any interest coupons to be attached there­to, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. Such au­thorizing resolution may further provide that such bonds may be executed manually or by the engraved, lithographed or facsimile signature of the chairman of the district board. The seal of the district may be affixed or lithographed, engraved or otherwise re­produced in facsimile on such bonds and shall be attested by the manual or facsimile signature of the district clerk; provided, however, that the signature of at least one of the officials executing such revenue bonds shall be a manual signature. In case any offic­er whose signature or a facsimile of whose signature shall appear on the bonds shall cease to be such officer before the delivery of such bonds, such signa­ture or facsimile shall nevertheless be valid and suf­ficient for all purposes the same as if he had re­mained in office until such delivery. All revenue bonds issued under the provisions of this law shall be and constitute and have all the qualities and inci­dents of negotiable instruments under the law mer­chant and the negotiable instruments law of the state. The bonds may be issued in coupon or regis­tered form as the district board may determine in such authorizing resolution and provision may be made for the registration of any coupon bonds as to principal alone and also as to principal and interest, and for the reconversion of coupon bonds or of any bond registered as to principal and interest. The is­suance of such bonds shall not be subject to any limitations or conditions contained in any other law and the district board may sell such bonds in such manner, either at public or private sale, and for such price, as it may determine to be for the best interests of the district, but no such sale shall be made at a

price so low as to require the payment of interest on money received therefor at a rate in excess of 7Yz percent per annum, computed with relation to the absolute maturity of the bonds in accordance with standard tables of bond values, excluding, however, from such computation the amount of any premium to be paid for the redemption of any bonds prior to maturity.

(2) The proceeds of the sale of any such bonds shall be used solely for the payment of the costs of the construction or acquisition of any water system or sewer system or both or the reconstruction or construction or acquisition of extensions, improve­ments and additions thereto, and shall be disbursed in such manner and under such restrictions, as the district board may provide in the authorizing resolu­tion. Prior to the preparation or issuance of defini­tive revenue bonds, the district board may, under like restrictions, issue interim receipts or temporary notes or other form of such temporary obligations without coupons, exchangeable for definitive bonds when such bonds have been executed and are availa­ble for delivery. The district board may also provide for the replacement of any bonds which shall have become mutilated and be destroyed or lost upon proper indemnification. Revenue bonds may be is­sued under the provisions of this law without obtain­ing the consent of any commission, board, bureau or agency of the state, and without any other proceed­ing or happening of any other condition or thing than those proceedings, conditions or things which are specifically required by this law.

(3) A resolution providing for the issuance of rev­enue bonds may also contain such limitations upon the issuance of additional revenue bonds secured on a parity with the bonds theretofore issued, as the district board may deem proper, and such additional bonds shall be issued under such restrictions and limitations as may be prescribed by such authorizing resolution.

(4) Revenue bonds shall not be deemed to consti­tute an indebtedness of the district, and shall not be included in the amount of general obligation bonds which the district is authorized to issue under any other provision of this law, unless the full faith and credit of the district is pledged as additional security for such revenue bonds.

Hlstory.-s. 14, ch. 59-466; s. 5, ch. 73-302.

153.64 Schedule of rates and fees.-(1) The district board shall fix the initial sched­

ule of rates, fees or other charges for the use of and the services and facilities to be furnished by any such water system or sewer. system to be paid by the owner, tenant or occupant of each lot or parcel of land which may be connected with or used by any such system or systems of the district. After the sys­tem or systems shall have been in operation the dis­trict board may revise the schedule of rates, fees and charges from time to time; provided, however, that such rates, fees and charges shall be so fixed and revised so as to provide some, which, with other funds available for such purposes, shall be sufficient at all times to pay the expenses of operating and maintaining such water system or sewer system or both, including reserves for such purposes, the prin­cipal of and interest on revenue bonds as the same

658

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

shall become due and reserves therefor, and to pro­vide a margin of safety over and above the total amount of any such payments, and to comply fully with any covenants contained in the proceedings au­thorizing the issuance of any bonds or other obliga­tions of the district. The district shall charge and collect such rates, fees and charges so fixed or re­vised, and such rates, fees and charges shall not be subject to the supervision or regulation by any other commission, board, bureau, agency or other political subdivision or agency of the county or state.

(2) Such rates, fees and charges shall be just and equitable and uniform for users of the same class and where appropriate may be based or computed either upon the quantity of water consumed or upon the number and size of sewer connections or upon the number and kind of plumbing fixtures in use in the premises or upon the number or average number of persons residing or working in or otherwise using or occupying such premises or upon any other factor affecting the use of the facilities furnished or upon any combination of the foregoing factors as may be determined by the district board on any other equi­table basis.

(3) No rates, fees or charges shall be fixed under the foregoing provisions of this section until after a public hearing at which all the users of the proposed sewer system or water system, or both, or owners, tenants or occupants served or to be served thereby and all others interested shall have an opportunity to be heard concerning the proposed rates, fees and charges. Notice of such public hearing setting forth the proposed schedule or schedules of rates, fees and charges shall be given by one publication in a news­paper published in the county and circulating in the district at least 10 days before the date fixed in such notice for the hearing, which may be adjourned from time to time. If there be no such newspaper pub­lished in the county and circulating in the district the notice of such rate hearing shall be posted as provided for ins. 153.56 regarding the posting of the notice calling the election creating the district. After such hearing such schedule or schedules, either as initially adopted, or as modified or amended, may be finally adopted.

(4) A copy of the schedule or schedules of such rates, fees or charges finally adopted shall be kept on file in the office of the district clerk and shall be open at all times to public inspection. The rates, fees or charges so fixed for any class of users or property served shall be extended to cover any additional us­ers or properties thereafter served which shall fall in the same class, without the necessity of any hearing or notice. Any change or revision of such rates, fees or charges may be made in the same manner as such rates, fees or charges were originally established as hereinabove provided; provided however, that if such changes or revisions be made substantially pro rata as to all classes of service no hearing or notice shall be required.

History.-s. 15, ch. 59·466.

153.65 Trust funds; trustees.-The proceeds of all bonds or other obligations issued under this law and all revenues derived from the operation of any water system or sewer system for the payment of all or part of the cost of which any bonds or other obliga-

tions authorized by this law have been issued shall be and constitute trust funds, and shall be used and applied only in accordance with the proceedings au­thorizing the issuance of any revenue bonds, general obligation bonds or other obligations issued pursu­ant to this law, and the district may appoint trustees, within or without the state, under trust agreements or indentures to hold and administer the proceeds of any such bonds or other obligations or any such reve­nues.

History.-s. 16, ch. 59466.

153.66 Covenants of district board with bondholders.-In addition to the other provisions and requirements of this law any resolution author­izing the issuance of revenue bonds, general obliga­tion bonds, assessment bonds or any other obliga­tions issued hereunder, may contain provisions and the district board is authorized to provide and may covenant and agree with the several holders of such bonds as to:

(1) Reasonable deposits with the district in ad­vance to insure the payment of rates, fees or charges for the facilities of the system.

(2) The discontinuance of the services and facili­ties of any water system or sewer system, or both, for delinquent payments for either water services or sewer services, and the terms and conditions of the restoration of such service.

(3) Contracts with private or public owners of a water system or sewer system not owned and operat­ed by the district for the discontinuance of service to any users of the water system or sewer system, as the case may be, owned and operated by the district.

(4) Limitations on the powers of the district to construct, acquire or operate, or permit the construc­tion, acquisition or operation of any plants, struc­tures, facilities or properties which may compete or tend to compete with any water system or sewer system.

(5) The manner and method of paying service charges and fees and the levying of penalties for delinquent payments.

(6) Subject to this law the manner and order of priority of the disposition of revenues or redemption of any bonds or other obligations.

(7) Terms and conditions for modification or amendment of any provisions or covenants in any such proceedings authorizing the issuance of bonds or other obligations.

(8) Provisions for and limitations on the appoint­ment of a trustee for bondholders for any water sys­tem or sewer system.

(9) Provisions as to the appointment of a receiver of any sewer system or water system or both, on default of principal or interest on any such bonds or other obligations or the breach of any covenant or condition of such authorizing proceedings or the pro­visions and requirements of this law.

(10) Provisions as to the execution and entering into of trust agreements regarding the holding and disposition of revenues derived from such systems and the proceeds ofbonds issued for the cost of acqui­sition or construction or improvement of a water system or sewer system or both, or for any other purposes necessary to secure any such revenue bonds.

659

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

(11) Provisions as to the maintenance of any such systems and reasonable insurance thereof.

(12) Any other matters necessary to secure such bonds and the payment of the principal and interest thereof.

All such provisions of the bond proceedings and all such covenants and agreements in addition to the other provisions and requirements of this law shall constitute valid and legally binding contracts be­tween the district and several holders of any such bonds and shall be enforceable by any such holder or holders by mandamus or other appropriate action, suit or proceeding in law or in equity in any court of competent jurisdiction.

History.-s. 17, ch. 59-466.

153.67 Unpaid fees to constitute lien.-ln the event that the fees, rates or charges for the services and facilities of any water or sewer system shall not be paid as and when due, any unpaid balance thereof and all interest accruing thereon shall be a lien on any parcel or property affected thereby. Such liens shall be superior and paramount to the interest on such parcel or property of any owner, lessee, tenant, mortgagee or other person except the lien of county taxes and shall be on a parity with the lien of any such county taxes. In the event that any such service charge shall not be paid as and when due and shall be in default for thirty days or more the unpaid balance thereof and all interest accrued thereon, to­gether with attorneys fees and costs, may be recov­ered by the district in a civil action, and any such lien and accrued interest may be foreclosed or other­wise enforced by the district by action or suit in equity as for the foreclosure of a mortgage on real property.

History.-s. 18, ch. 59-466.

153.68 General obligation bonds, election; is­suance, tax levy.-

(1) The district board is hereby authorized to pro­vide by resolution from time to time for the issuance of general obligation bonds pledging the full faith and credit ofthe district for the payment thereof, for the purpose of paying all or part of the cost of the acquisition or construction or improvement of a wa­ter system or a sewer system or both, provided how­ever, that the issuance of such bonds, or of any reve­nue bonds, assessment bonds or other obligations for which the full faith and credit of the district shall have been pledged as additional security shall have been approved at an election of the qualified electors who are freeholders residing in said district, such election to be called, noticed and conducted in the manner provided in the constitution and statutes of Florida for freeholder elections.

(2) For the payment of the principal of and the interest on any general obligation bonds of the dis­trict issued under the provisions of this law, the dis­trict board is hereby authorized and required and in such resolution authorizing the issuance of general obligation bonds shall authorize and require the levy annually of a special tax upon all taxable property within the district over and above all other taxes authorized or permitted by law sufficient to pay such principal and interest as the same shall become due

and payable, and the proceeds of all such taxes, when collected, shall be paid into a special fund and used for no other purpose than the payment of such principal and interest, or reserves therefor; provided however, that there may be pledged as additional security for the payment of such principal and inter­est the proceeds of such rates, fees and charges made for the services and facilities of any such water sys­tem or sewer system or both, or the proceeds of spe­cial assessments levied to finance the cost of assessa­ble improvements, or both, and in the event of such pledge or pledges the amount of the annual tax here­in required may be reduced in any year subject to and in accordance with the proceedings authorizing the issuance of such general obligation bonds.

(3) In the event the full faith and credit of the district is pledged as additional security for the pay­ment of any revenue bonds or assessment bonds is­sued hereunder, the district board shall in the man­ner set out above for general obligation bonds pro­vide for and authorize the levy of a special tax annu­ally on all taxable property in the district sufficient in amount to comply with the proceedings authoriz­ing such revenue bonds or assessment bonds for which the full faith and credit of the district is pledged as additional security.

History.- s. 19, ch. 59-466.

153.69 County property appraiser ex officio tax assessor for district.-The amount of any such annual taxes so levied for general obligation bonds or as additional security for revenue bonds or assess­ment bonds shall be certified by the district board to the property appraiser of the county who shall be ex officio tax assessor for the district, and such taxes shall be levied and collected in the same manner as other general county taxes.

History.-s. 20, ch. 59-466; s. 1, ch . 77-102.

153.70 Provisions of s. 153.63 applicable to general obligation bonds.-Any general obliga­tion bonds shall be authorized by resolution of the district board and the provisions of s. 153.63 relative to maturities, execution, rate or rates of interest, redemption prior to maturity, registration, method of sale, and all other matters in said s. 153.63 not inconsistent with the other provisions in this law relating to general obligation bonds, shall apply to any general obligation bonds issued hereunder.

History.-s. 21, ch. 59-466.

153.71 Publication of notice of issuance of bonds.-Prior to the issuance of any revenue bonds, general obligation bonds, assessment bonds or other obligations, the district board may, in its discretion, publish a notice at least once in a newspaper pub­lished in the county and circulating in the district, or posted in the manner provided in s. 153.56 ifthere be no such newspaper, stating the date of adoption of the resolution authorizing such obligations, and the amount, maximum rate of interest and maturity of such obligations and the purpose in general terms for which such obligations are to be issued, and fur­ther stating that any action or proceedings authoriz­ing the issuance thereof, or of any covenants made therein, must be instituted within 20 days after the first publication of such notice, or the validity of

660

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

such obligations or proceedings or covenants shall not be thereafter questioned in any court whatsoev­er. If no such action or proceeding is so instituted within such 20-day period then the validity of such obligations, proceedings and covenants shall be con­clusive, and all persons or parties whatsoever shall be forever barred from questioning the validity of such obligations, proceedings or covenants in any court whatsoever.

History.- s. 22, ch . 59-466.

153.72 Bonds; qualities of negotiable instru­ments; rights of holders.-All revenue bonds, gen­eral obligation bonds or assessment bonds issued hereunder shall be and constitute, and have all the qualities and incidents of negotiable instruments un­der the law merchant and the Negotiable Instru­ments Law of Florida, and shall not be invalid for any irregularity or defect in the proceedings for the issuance and sale thereof and shall be incontestable in the hands of bona fide purchasers for value. No proceedings in respect to the issuance of such bonds shall be necessary except such as are required by this law. The provisions of this law shall constitute an irrevocable contract between said district and the holders of any such bonds or coupons thereof issued pursuant to the provisions hereof. Any holder of such bonds may either at law or in equity, by suit, action or mandamus, enforce and compel the per­formance ofthe duties required by this law or of any of the officers or persons herein mentioned in rela­tion to said bonds, or the levy, assessment, collection and enforcement and application of the taxes, reve­nues, assessments or other funds pledged for the pay­ment of the principal and interest thereof.

History.-s. 23, ch. 59-466.

153.73 Assessable improvements; levy and payment of special assessments.-Any district may provide for the construction or reconstruction of assessable improvements as defined in s. 153.52, and for the levying of special assessments upon bene­fited property for the payment thereof, under the provisions of this section.

(1) The initial proceeding under this section shall be the passage by the district board of a resolution ordering the construction or reconstruction of such assessable improvements, indicating the location by terminal points and routes and either giving a de­scription of the improvements by its material, na­ture, character and size or giving two or more de­scriptions with the directions that the material, na­ture, character and size shall be subsequently deter­mined in conformity with one of such descriptions. Sewer or water improvements need not be continu­ous and may be in more than one locality or street. The resolution ordering any such improvement may give any short and convenient designation to each improvement ordered thereby, and the property against which assessments are to be made for the cost of such improvement may be designated as an assessment district, followed by a letter or number or name to distinguish it from other assessment dis­tricts, after which it shall be sufficient to refer to such improvement and property by such designation in all proceedings and assessments, except in the notices required by this section.

(2)(a) As soon as possible after the passage of such resolution the engineer for the district shall prepare in duplicate plans and specifications for each improvement ordered thereby and an estimate of the cost thereof. Such cost shall include, in addi­tion to the items of cost as defined in this law, the cost of relaying streets and sidewalks necessarily torn up or damaged and the following items of inci­dental expenses:

1. Printing and publishing notices and proceed­ings.

2. Costs of abstracts of title, and 3. Any other expense necessary or proper in con­

ducting the proceedings and work provided for in this section, including the estimated amount of dis­count, if any, upon the sale of assessment bonds or any other obligations issued hereunder for which such special assessments are to be pledged. If the resolution shall provide alternative descriptions of material, nature, character and size, such estimate shall include an estimate of the cost of the improve­ment of each such description.

(b) The engineer shall also prepare in duplicate a tentative apportionment of the estimated total cost of the improvement as between the district and each lot or parcel of land subject to special assessment under the resolution, such apportionment to be made in accordance with the provisions of the resolu­tion and in relation to apportionment of cost provid­ed herein for the preliminary assessment roll. Such tentative apportionment of total estimated cost shall not be held to limit or restrict the duties of the engi­neer in the preparation of such preliminary assess­ment roll. One of the duplicates of such plans, speci­fications and estimates and such tentative appor­tionment shall be filed with the district clerk and the other duplicate shall be retained by the engineer in his files , all thereof to remain open to public inspec­tion.

(3) The district clerk upon the filing with him of such plans, specifications, estimates and tentative apportionment of cost shall publish once in a news­paper published in the county and circulating in the district, or posted as provided ins. 153.56 if there be no such newspaper, a notice stating that at a meet­ing of the district board on a certain day and hour, not earlier than 15 days from such publication or posting, the district board will hear objections of all interested persons to the confirmation of such reso­lution, which notice shall state in brief and general terms a description of the proposed assessable im­provements with the location thereof, and shall also state that plans, specifications, estimates and tenta­tive apportionment of cost thereof are on file with the district clerk. The district clerk shall keep a record in which shall be inscribed, at the request of any person, firm or corporation having or claiming to have any interest in any lot or parcel of land, the name and post-office address of such person, firm or corporation, together with a brief description or des­ignation of such lot or parcel, and it shall be the duty of the district clerk to mail a copy of such notice to such person, firm or corporation at such address, at least 10 days before the time for the hearing as stat­ed in such notice, but the failure of the district clerk to keep such record or so to inscribe any name or

661

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

address or to mail any such notice shall not consti­tute a valid objection to holding the hearing as pro­vided in this section or to any other action taken under the authority of this section.

(4) At the time named in such notice, or to which an adjournment may be taken by the district board, the district board shall receive any objections of in­terested persons and may then or thereafter repeal or confirm such resolution with such amendments, if any, as may be desired by the district board and which do not cause any additional property to be specially assessed.

(5) All objections to any such resolution on the ground that it contains items which cannot be prop­erly assessed against property, or that it is, for any default or defect in the passage or character of the resolution or the plans or specifications or estimate, void or voidable in whole or in part, or that it exceeds the power of the district board, shall be made in writing in person or by attorney, and filed with the district clerk at or before the time or adjourned time of such hearing. Any objections against the making of any assessable improvements not so made shall be considered as waived, and if any objection shall be made and overruled or shall not be sustained, the confirmation of the resolution shall be the final adju­dication of the issues presented unless proper steps shall be taken in a court of competent jurisdiction to secure relief within 20 days.

(6)(a) Whenever any resolution providing for the construction or reconstruction of assessable im­provements and for the levying of special assess­ments upon benefited property for the payment thereof shall have been confirmed, as hereinabove provided, or at any time thereafter, the district board may issue assessment bonds payable out of such assessments when collected. Said bonds shall mature not later than 2 years after the last install­ment in which said special assessments may be paid, as provided in subsection (11), and shall bear interest at not exceeding 7~ percent per annum. Such assess­ment bonds shall be executed, shall have such provi­sions for redemption prior to maturity, shall be sold in the manner and be subject to all of the applicable provisions contained in s. 153.63 for revenue bonds, except as the same are inconsistent with the provi­sions of this section. The amount of such assessment bonds for any assessable improvement, prior to the confirmation of the preliminary assessment roll pro­vided for in subsection (10), shall not exceed 70 per­cent of the estimated amount of the cost of such assessable improvements which are to be specially assessed against the land and real estate to be spe­cially benefited thereby, as shown in the estimates of the engineer for the district referred to in subsection (2). The amount of such assessment bonds for any assessable improvement to be issued, after the con­firmation of the preliminary assessment roll provid­ed for in subsection (10), including any assessment bonds theretofore issued, shall not exceed the amount of special assessments actually confirmed and levied by the district board as provided in sub­section (10).

(b) Such assessment bonds shall be payable from the proceeds of the special assessments levied for the assessable improvement for which such assessment

bonds are issued; provided, however, that any dis­trict may pledge the full faith and credit of such district for the payment of the principal of and inter­est on such assessment bonds if the issuance of such assessment bonds shall be approved by the qualified electors who are freeholders residing in said district in the manner provided in the constitution and stat­utes of Florida.

(7) After the passage of the resolution authoriz­ing the construction or reconstruction of assessable improvements has been confirmed as provided in subsection (4), the district may publish at least once in a newspaper published in the county and circulat­ing in the district, or post in the manner provided in s. 153.56 if there be no such newspaper, a notice calling for sealed bids to be received by the district board on a date not earlier than 15 days from the first publication for the construction of the work, unless in the initial resolution the district board shall have declared its intention to have the work done by district forces without contract. The notice shall refer in general terms to the extent and nature of the improvement or improvements and may iden­tify the same by the short designation indicated in the initial resolution and by reference to the plans and specifications on file. If the initial resolution shall have given two or more alternative descrip­tions of the assessable improvements as to its mate­rial, nature, character and size, and if the district board shall not have theretofore determined upon a definite description, the notice shall call for bids upon each of such descriptions. Bids may be request­ed for the work as a whole or for any part thereof separately and bids may be asked for any one or more of such assessable improvements authorized by the same or different resolutions, but any bid cover­ing work upon more than one improvement shall be in such form as to permit a separation of cost as to each improvement. The notice shall require bidders to file with their bids either a certified check drawn upon an incorporated bank or trust company in such amount or percentage of their respective bids, as the district board shall deem advisable, or a bid bond in like amount with corporate surety satisfactory to the district board to insure the execution of a contract to carry out the work in accordance with such plans and specifications and insure the filing at the mak­ing of such contract, of a bond in the amount of the contract price with corporate surety satisfactory to the district conditioned for the performance of the work in accordance with such contract. The district board shall have the right to reject any or all bids, and if all bids are rejected the district board may readvertise or may determine to do the work by the district forces without contract.

(8) Promptly after the completion of the work, the engineer for the district, who is hereby designat­ed as the official of the district to make the prelimi­nary assessment of benefits from assessable im­provements, shall prepare a preliminary assessment roll and file the same with the district clerk which roll shall contain the following:

(a) A description of abutting lots and parcels of land or lands within the district which will benefit from such assessable improvements and the amount of such benefits to each such lot or parcel of land.

662

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

Such lots and parcels shall include the property of the county and any school district or other political subdivision. There shall also be given the name of the owner of record of each lot or parcel where prac­ticable, and in all cases there shall be given a state­ment of the number of feet of property so abutting, which number of feet shall be known as the frontage.

(b) The total cost of the improvement and the amount of incidental expense.

(9) The preliminary roll shall be advisory only and shall be subject to the action of the district board as hereinafter provided. Upon the filing with the district clerk of the preliminary assessment roll, the district clerk shall publish at least once in a newspa­per published in the county, and circulating in the district, or ifthere be no such newspaper, post in the manner provided ins. 153.56, a notice stating that at a meeting of the district board to be held on a certain day and hour, not less than 15 days from the date of such publication or posting, which meeting may be a regular, adjourned or special meeting, all interest­ed persons may appear and file written objections to the confirmation of such roll. Such notice shall state the class of the assessable improvements and the location thereof by terminal points and route.

(10) At the time and place stated in such notice the district board shall meet and receive the objec­tions in writing of all interested persons as stated in such notice. The district board may adjourn the hearing from time to time. After the completion thereof the district board shall either annul or sus­tain or modify in whole or in part the preliminary assessment as indicated on such roll, either by con­firming the preliminary assessment against any or all lots or parcels described therein or by canceling, increasing or reducing the same, according to the special benefits which the district board decided each such lot or parcel has received or will receive on account of such improvement. If any property which may be chargeable under this section shall have been omitted from the preliminary roll or if the pre­liminary assessment shall not have been made against it, the board may place on such roll an appor­tionment to such property. The district board shall not confirm any assessment in excess of the special benefits to the property assessed, and the assess­ments so confirmed shall be in proportion to the special benefits. Forthwith after such confirmation such assessment roll shall be delivered to the district clerk. The assessment so made shall be final and conclusive as to each lot or parcel assessed unless proper steps be taken within 30 days in a court of competent jurisdiction to secure relief. If the assess­ment against any property shall be sustained or re­duced or abated by the court, the district clerk shall note that fact on the assessment roll opposite the description of the property affected thereby. The amount of the special assessment against any lot or parcel which may be reduced or abated by the court, unless the assessment upon the entire district be reduced or abated, or the amount by which such assessment is so reduced, may by resolution of the district board be made chargeable against the dis­trict at large; or, at the discretion of the district board, a new assessment roll may be prepared and confirmed in the manner hereinabove provided for

the preparation and confirmation of the original as­sessment roll.

(ll)(a) Any assessment may be paid at the office of the district clerk within 60 days after the confir­mation thereof, without interest. Thereafter all as­sessments shall be payable in equal installments, with interest at not exceeding 8 percent per annum from the expiration of said 60 days in each of the succeeding number of years which the district board shall determine by resolution, not exceeding 20; pro­vided however, that the district board may provide that any assessment may be paid at any time before due, together with interest accrued thereon to the date of payment, if such prior payment shall be per­mitted by the proceedings authorizing any assess­ment bonds or other obligations for the payment of which such special assessments have been pledged.

(b) All such special assessments shall be collect­ed by the tax collector of the county in which the district is located at the same time as the ad valorem taxes of the district and general county taxes are collected by the tax collector of such county, and the district shall certify to the county tax collector in each year a list of all such special assessments and a description of and name of the owners ofthe prop­erties against which such special assessments have been levied and the amounts due thereon in such year, and interest thereon, and any deficiencies for prior years.

(c) All assessments shall constitute a lien upon the property so assessed from the date of confirma­tion of the resolution ordering the improvement, of the same nature and to the same extent as the lien for general county taxes falling due in the same year or years in which such assessments or installments thereof fall due, and any assessment or installment not paid when due shall be collectible with such in­terest and with a reasonable attorney's fee and costs, but without penalties, by the district by proceedings in a court of equity to foreclose the lien of assess­ments as a lien for mortgages is or may be foreclosed under the laws of the state; provided that any such proceedings to foreclose shall embrace all install­ments of principal remaining unpaid with accrued interest thereon, which installments shall, by virtue of the institution of such proceedings, immediately become due and payable.

(d) Nevertheless, if prior to any sale of the prop­erty under decree of foreclosure in such proceedings, payment be made of the installment or installments which are shown to be due under the provisions of the resolution passed pursuant to subsection (10), and by this subsection and all costs including inter­est and attorney's fee, such payment shall have the effect of restoring the remaining installments to their original maturities as provided by the resolu­tion passed pursuant to this subsection and the pro­ceedings shall be dismissed.

(e) It shall be the duty of the district to enforce the prompt collection of assessment by the means herein provided, and such duty may be enforced at the suit of any holder ofbonds issued under this law in a court of competent jurisdiction by mandamus or other appropriate proceedings or action.

(f) Not later than 30 days after the annual in­stallments are due and payable, it shall be the duty

663

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

of the district board to direct the attorney or attor­neys whom the district board shall then designate, to institute action within 2 months after such direction to enforce the collection of all special assessments for assessable improvements made under this section and remaining due and unpaid at the time of such direction. Such action shall be prosecuted in the manner and under the conditions in and under which mortgages are foreclosed under the laws of the state.

(g) It shall be lawful to join in one action the collection of assessments against any or all property assessed by virtue of the same assessment roll unless the court shall deem such joinder prejudicial to the interest of any defendant. The court shall allow a reasonable attorney's fee for the attorney or attor­neys of the district, and the same shall be collectible as a part of or in addition to the costs of the action.

(h) At the sale pursuant to decree in any such action, the district may be a purchaser to the same extent as an individual person or corporation, except that the part of the purchase price represented by the assessments sued upon and the interest thereon need not be paid in cash. Property so acquired by a district may be sold or otherwise disposed of, the proceeds of such disposition to be placed in the fund provided by subsection (1) of this section; provided, however, that no sale or other disposition thereof shall be made unless the notice calling for bids there­for to be received at a stated time and place shall have been published in a newspaper published in the county and circulating in the district, or posted in the manner provided in s. 153.56 ifthere be no such newspaper, at least 20 days prior to such disposition.

(12) All assessments and charges made under the provisions of this section for the payment of all or any part of the cost of any assessable improvements for which assessment bonds shall have been issued under the provisions of this law, or which have been pledged as additional security for any other bonds or obligations issued under this law, shall be used only for the payment of principal of or interest on such assessment bonds or other bonds or obligations.

(13) The county in which the district is located and each school district and other political subdivi­sion wholly or partly within the district shall possess the saine power and be subject to the same duties and liabilities in respect of assessment under this section affecting the real estate of such county, school district or other political subdivision which private owners of real estate possess or are subject hereunder, and such real estate of any such county, school district and political subdivision shall be sub­ject to liens for said assessments in all cases where the same property would be subject to such liens had it at the time the lien attached been owned by a private owner.

History.- s. 24, ch. 59-466; s. 6, ch. 73-302.

benefited, as the case may be, and separate certifi­cates shall be issued against each part or parcel of land assessed, which certificates shall state the gen­eral nature of the improvement for which the said assessment is made. Said certificates shall be paya­ble in annual installments in accordance with the installments of the special assessments for which they are issued. The district board may determine the interest to be borne by such certificates at a rate no greater than 7Y. percent per annum, and may sell such certificates at either private or public sale at not exceeding par and accrued interest and deter­mine the form, manner of execution and other de­tails of such certificates. Such certificates shall re­cite that they are payable only from the special as­sessments levied and collected from the part or par­cel of land against which they are issued. The pro­ceeds of such certificates may be pledged for the pay­ment of principal of and interest on any revenue bonds or general obligation bonds issued to finance in whole or in part such assessable improvements, or, if not so pledged, may be used to pay the cost or part of the cost of such assessable improvements.

(2) The district may also issue assessment bonds or other obligations payable from a special fund into which such certificates of indebtedness referred to in the preceding subsection may be deposited; or, if such certificates of indebtedness have not been is­sued, the district may assign to such special fund for the benefit of the holders of such assessment bonds or other obligations, or to a trustee for such bond­holders, the assessment liens provided for in s. 153.73(10), unless such certificates of indebtedness or assessment liens have been theretofore pledged for any bonds or other obligations authorized here­under. In the event of the creation of such special fund and the issuance of such assessment bonds or other obligations, the proceeds of such certificates of indebtedness or assessment liens deposited therein shall be used only for the payment of the assessment bonds or other obligations issued as provided in this section. The district is hereby authorized to covenant with the holders of such assessment bonds or other obligations that it will diligently and faithfully en­force and collect all the special assessments and in­terest and penalties thereon for which such certifi­cates of indebtedness or assessment liens have been deposited in or assigned to such fund, and to fore­close such assessment liens so assigned to such spe­cial fund or represented by the certificates of indebt­edness deposited in said special fund, after such as­sessment liens have become delinquent and deposit the proceeds derived from such foreclosure, includ­ing interest and penalties, in such special fund, and to further make any other necessary covenants deemed necessary or advisable in order to properly secure the holders of such assessment bonds or other obligations.

153.74 Issuance of certificates of indebted- (3) The assessment bonds or other obligations is-ness based on assessments for assessable im· sued pursuant to this section shall have such dates provements.- of issue and maturity as shall be deemed advisable

(1) The district board may, after any assessments by the district board; provided, however, that the for assessable improvements are made, determined maturities of such assessment bonds or other obliga­and confirmed as provided in s. 153.73, issue certifi- tion shall not be more than 2 years after the due date cates of indebtedness for the amount so assessed of the last installment which will be payable on any against the abutting property or property otherwise of the special assessments for which such assessment

664

F.S.1979 WATER AND SEWER SYSTEMS Ch. 153

liens, or the certificates of indebtedness represent­ing such assessment liens, are assigned to or deposit­ed in such special fund.

(4) Such assessment bonds or other obligations issued under this section shall bear interest at not exceeding 7}(, percent per annum, shall be executed, shall have such provisions for redemption prior to maturity, shall be sold in the manner and be subject to all of the applicable provisions contained in s. 153.63 for revenue bonds, except as the same are inconsistent with the provisions of this section.

(5) All assessment bonds or other obligations is­sued under the provisions of this law, except certifi­cates of indebtedness issued against separate parcels of land as provided in this section, shall be and con­stitute and have all the qualities and incidents of negotiable instruments under the law merchant and the Negotiable Instruments Law of the state.

History.-s. 25, ch. 59-466; s. 7, ch. 73-302.

153.75 Annual reports of district board.-The district board shall cause to be made at least once each year a comprehensive report of its water sys­tem or sewer system or both including all matters relating to rates, revenues, expenses of mainte­nance, repair and operation and renewals and capi­tal replacements, principal and interest require­ments and the status of all funds and accounts. Cop­ies of such report shall be filed with the district clerk and shall be open to public inspection.

History.-s. 26, ch. 59-466.

153.76 Exemption from taxation.-As the ex­ercise of the powers conferred by this law constitutes the performance of essential public functions and as any water system or sewer system or both construct­ed under the provisions of this law constitute public property used for public purposes such districts and all properties, revenues, or other assets thereof, and all bonds issued hereunder and the interest thereon, shall be exempt from all taxation by the state, or any political subdivision, agency or instrumentality thereof.

History.-s. 27, ch. 59-466.

153.77 District bonds as securities for public bodies.-All revenue bonds, general obligation bonds or assessment bonds issued pursuant to this law shall be and constitute legal investments for state, county, municipal and all other public funds and for banks, savings banks, insurance companies, executors, administrators, trustees and all other fi­duciaries, and shall also be and constitute securities eligible as collateral security for all state, county, municipal or other public funds, subject to the re­strictions and limitations of chapters 18, 136, 237, 518, 654, 656 through 661, and 665.

History.-s. 28, ch. 59-466.

153.78 Bonds as payment for services.-Any district is authorized to enter into agreements for the delivery of any revenue bonds, general obliga­tion bonds or assessment bonds at one time or from time to time as full or partial payment for the ser­vices of any engineer or work done by any contractor who may have been retained or hired or been award­ed a contract for the construction of all or any part

of a water system or sewer system; provided, howev­er, that any such bonds so delivered for payment of such services or work performed shall have been authorized and issued in the manner provided in this law and shall otherwise conform to the provisions hereof.

History.-s. 29, ch. 59-466.

153.79 Contracts for construction of im­provements, sealed bids.-All contracts let, awarded or entered into by the district for the con­struction, reconstruction or acquisition or improve­ment of a water system or a sewer system or both or any part thereof, if the amount thereof shall exceed $1,000, shall be awarded only after public advertise­ment and call for sealed bids therefor, in a newspa­per published in the county circulating in the dis­trict, or, if there be no such newspaper, then in a newspaper published in the state and circulating in the district, such advertisement to be published at least once at least 3 weeks before the date set for the receipt of such bids. Such advertisements for bids in addition to the other necessary and pertinent matter shall state in general terms the nature and descrip­tion of the improvement or improvements to be un­dertaken and shall state that detailed plans and specifications for such work are on file for inspection in the office of the district clerk and copies thereof shall be furnished to any interested party upon pay­ment of reasonable charges to reimburse the district for its expenses in providing such copies. The award shall be made to the responsible and competent bid­der or bidders who shall offer to undertake the im­provements at the lowest cost to the district and such bidder or bidders shall be required to file bond for the full and faithful performance of such work and the execution of any such contract in such amount as the district board shall determine, and in all other respects the letting of such construction contracts shall comply with applicable provisions of the gener­al laws relating to the letting of public contracts. Nothing in this section shall be deemed to prevent the district from hiring or retaining such consulting engineers, attorneys, financial experts or other tech­nicians as it shall determine, in its discretion, or from undertaking any construction work with its own resources, without any such public advertise­ment.

History.-s. 30, ch. 59·466.

153.80 Consolidation of systems.-Any water system or sewer system of a district may be com­bined into a single consolidated system for purposes of financing or of operation and administration, or both.

History.-s. 31, ch. 59·466.

153.81 Ad valorem maintenance tax.-In ad­dition to the ad valorem taxes authorized to be levied to pay the principal of and interest on general obliga­tion bonds, or as additional security for revenue bonds or assessment bonds, any district is authorized to levy a special ad valorem maintenance tax of a sufficient number of mills upon the dollar of as­sessed valuation of property subject to taxation in the district to pay for the maintenance and opera­tion and other corporate purposes of said district;

665

Ch. 153 WATER AND SEWER SYSTEMS F.S.1979

provided, however, that such special maintenance tax shall in no event exceed 5 mills during any one year. Such special maintenance tax shall be levied and collected in the manner provided herein for ad valorem taxes levied and collected for debt service on bonds issued pursuant to this law.

History.-s. 32, ch. 59-466.

153.82 Handling of taxes and special assess­ments, district treasurer.-All ad valorem taxes or special assessments levied and collected in any dis­trict in the manner provided herein shall when re­ceived be paid over by the proper officials of the county in which the district is located to the treasur­er of the district to be applied as provided in this law and in the proceedings authorizing the issuance of any bonds or other obligations pursuant to this law.

History.-s. 33, ch. 59-466.

153.83 Free water and sewer services prohib­ited.-The same rates, fees and charges shall be fix­ed and collected from any county, school district or other political subdivision using the services and fa­cilities of the water system or sewer system, or both, as are fixed and collected from other users of such facilities in the same class. No free water or sewer services shall be rendered by the district and no dis­crimination shall exist in the fees, rates and charges for users of the same class.

History.-s. 34, ch. 59-466.

153.84 Contracts enforceable by bondhold­ers.-Any contract entered into by any district shall be deemed to have been made for the benefit of any holders of bonds issued pursuant to this law to the extent necessary, and the terms of any such contract shall be enforceable by such bondholders in any ap­propriate legal proceeding. Any such contract if made with another public body or municipality may be enforceable without the requirement of formal consideration.

History.-s. 35, ch. 59-466.

153.85 Conveyance of property without con­sideration.-Any municipality or political subdivi­sion is authorized to sell, lease, grant or convey any real or personal property to any district and any such sale, grant, lease or conveyance may be made without formal consideration.

History.-s. 36, ch. 59-466.

153.86 District approval of construction of water and sewage facilities.-No sewage disposal plant or other facilities for the collection and treat­ment of sewage or any water treatment plant or other facilities for the supply and distribution of wa­ter, shall be constructed within any district unless the district board shall give its consent thereto and approve the plans and specifications therefor; sub­ject, however, to the terms and provisions of any resolution authorizing any bonds and agreements with bondholders.

History.-s. 37, ch. 59-466.

153.87 Mortgage or sale by board of district property prohibited; rights of bondholders pro­tected.-No district board shall have power to mort­gage, pledge, encumber, sell or otherwise convey all or any part of any water system or sewer system, or both, except that the district board may dispose of any part of such system or systems as may be no longer necessary for the purposes of the district. The provisions of this section shall be deemed to consti­tute a contract with all bondholders. All district property shall be exempt from levy and sale by vir­tue of an execution and no execution or other judi­cial process shall issue against such property nor shall any judgment against a district be a charge or lien on its property or revenues; provided, that noth­ing herein contained shall apply to or limit the rights of bondholders to pursue any remedy for the enforcement of any lien or pledge given by a district on revenues derived from the operation of any water system or sewer system, or both.

History.-s. 38, ch. 59-466.

153.88 Construction of law.-(1) The provisions of this law shall be liberally

construed to effect its purposes and shall be deemed cumulative, supplemental and alternative authority for the exercise of the powers provided herein. The exercise of the powers provided in this law and the issuance of bonds or other obligations hereunder shall not be subject to the limitations or provisions of any other law or laws except as expressly provided herein.

(2) Nothing herein contained shall be construed to affect any local or special act in force and effect on June 19, 1959.

History.-ss. 39, 41, ch. 59-466.

153.95 Rural water and sewer service pilot project.-

(1) The Department of Community Affairs is di­rected to oversee and disburse funds for the plan­ning, administration, installation, operation, and maintenance of water and sewer facilities and ser­vices in a pilot project serving rural areas of the state. Such planning, administration, installation, operation, and maintenance shall be performed by and through the Community Water and Sewer Asso­ciation, Inc. , a Florida nonprofit corporation.

(2) The department shall promulgate such rea­sonable rules and regulations as may be necessary for the orderly, efficient, and economical adminis­tration of this project.

(3) The department shall submit a report to the Governor and Legislature regarding the progress of this project at least 90 days prior to the 1975 legisla­tive session, at least 90 days prior to the 1976legisla­tive session, and at least 90 days prior to the 1977 legislative session.

History.-ss. 1-3, ch. 74-66; s. 90, ch. 79-190.

666

F.S.1979 PUBLIC HEALTH FACILITIES Ch. 154

CHAPTER 154

PUBLIC HEALTH FACILITIES

PART I COUNTY PUBLIC HEALTH UNITS (ss. 154.01-154.06)

PART II COUNTY PUBLIC HEALTH TRUSTS (ss. 154.07-154.12)

PART III HEALTH FACILITIES AUTHORITIES (ss. 154.201-154.246)

PART IV HEALTH CARE RESPONSIBILITY FOR INDIGENTS (ss. 154.301-154.316)

PART I

COUNTY PUBLIC HEALTH UNITS

154.01 Health units authorized. 154.02 Tax; disposition of proceeds; reports. 154.03 Cooperation with Department of Health

and Rehabilitative Services and United States Government.

154.04 Personnel of health units; duties; compen­sation, etc.

154.05 Cooperation and agreements between coun­ties.

154.06 Fees and services rendered; authority.

154.01 Health units authorized.-The several counties of the state, and cities therein, may cooper­ate with the Department of Health and Rehabili­tative Services in the establishment and mainte­nance of full-time local health units in such counties for the control and eradication of preventable diseas­es, and inculcate modern scientific methods of hy­giene, sanitation and the prevention of communica­ble diseases. In addition, there shall be clinic-care and health care delivery programs where there is a demonstrated need for such services.

History.-s. 1, ch. 14906, 1931; CGL 1936 Supp. 2934(22); s. 7, ch. 22858, 1945; ss. 19, 35, ch. 69-106; s. 14, ch. 75-48; s. 29, ch. 77-147.

154.02 Tax; disposition of proceeds; reports. -To enable such counties to execute the purposes of this chapter, every county in the state with a popula­tion exceeding 100,000, according to the last state census, may levy an annual tax of not exceeding ~ mill, and every county in the state with a population exceeding 40,000 according to the last state census, and not exceeding 100,000, may levy an annual tax of not exceeding 1 mill, and every county in the state with a population not exceeding 40,000 according to the last state census, may levy an annual tax not exceeding 2 mills, on the dollar on all taxable proper­ty in such county, the proceeds of which, when col­lected, shall be paid to the Department of Health and Rehabilitative Services for deposit with the State Treasurer. However, the board of county commis­sioners may elect to pay in 12 equal monthly install­ments. Such funds in the hands ofthe State Treasur­er shall be known as the full-time local health unit trust funds of the county by which such funds were raised; and said funds shall be expended by the de­partment solely for the purpose of carrying out the intent and object of this chapter in such county. The department shall render to the county commission-

ers of any such county providing such funds a semi­annual financial statement for the disbursement thereof, so long as said moneys shall continue to be disbursed by and under the direction of the depart­ment.

History.-s. 2, ch. 14906, 1931; CGL 1936 Supp. 2934(23); s. 19, ch. 29615, 1955; s. 2, ch. 61-119; ss. 19, 35, ch. 69-106; s. 1, ch. 72-323; s. 30, ch. 77-147.

154.03 Cooperation with Department of Health and Rehabilitative Services and United States Government.-

(!) The county commissioners of any county may agree with the Department of Health and Rehabili­tative Services upon the expenditure by the depart­ment in such county of any funds allotted for that purpose by the department or received by it for such purposes from private contributions or other sources, and such funds shall be paid to the State Treasurer and shall form a part ofthe full-time local health unit trust fund of such county, and shall be expended by the department solely for the purposes of this chapter. The department is further author­ized to arrange and agree with the United States Government through its duly authorized officials for the allocation and expenditure by the United States of funds of the United States in the study of causes of disease and prevention thereof in such full-time local health units when and where established by the department under this chapter.

(2) Nothing in chapter 75-48, Laws of Florida, shall affect the powers and authorities granted to the several counties of the state and the county com­missions thereofby chapter 154, except to substitute the Department of Health and Rehabilitative Ser­vices in place of the Division of Health as a party in interest in any agreements provided for in that chap­ter and except as provided in ss. 154.01 and 154.04.

History.-s. 3, ch. 14906, 1931; CGL 1936 Supp. 2934(24); s. 2, ch. 61-119; ss. 19, 35, ch. 69-106; s. 13, ch. 75-48; s. 31, ch. 77-147; s. 74, ch. 79-400.

154.04 Personnel of health units; duties; com· pensation, etc.-The personnel of the minimum full-time local health unit shall consist of a director, a public health nurse, a sanitarian, and a clerk. The director shall be either a doctor of medicine or a doctor of osteopathy. All of the members of such personnel shall be selected from those especially trained in public health administration and prac­tice, so far as the same shall relate to the duties of their respective positions. They shall be employed by the board of county commissioners; provided, howev­er, that no such personnel shall be employed by the board of county commissioners unless such person-

667

Ch. 154 PUBLIC HEALTH FACILITIES F.S.1979

nel shall be approved by the Department of Health and Rehabilitative Services. When a vacancy occurs in the position of director of the local health unit, eligible candidates shall be presented to the board of county commissioners and, if no appointment is made within 6 months from the time of this presen­tation, then the Secretary of Health and Rehabili­tative Services shall make the appointment. The du­ties of said personnel shall be fixed and determined by the department, upon the approval by the board of county commissioners. The compensation of said personnel shall be determined under the rules and regulations of the Division of Personnel of the De­partment of Administration. Such employees shall engage in the prevention of disease and the promo­tion of health in cooperation with, and under the supervision of, the department.

History.-s. 4, ch. 14906, 1931; CGL 1936 Supp. 2934(25); ss. 19, 35, ch. 69-106; s. 1, ch. 72-139; s. 2, ch. 72-323; s. 3, ch. 72-345; s. 14, ch. 75-48; s. 32, ch . 77-147.

154.05 Cooperation and agreements between counties.-Two or more counties may combine in the establishment and maintenance of a single full­time local health unit for the counties which com­bine for that purpose, and pursuant to such combina­tion or agreement such counties may cooperate with one another and the Department of Health and Re­habilitative Services and contribute to a joint fund in carrying out the purpose and intent of this chapter. The duration and nature of such agreement shall be evidenced by resolutions ofthe board of county com­missioners of such counties and shall be submitted to and approved by the department. In the event of any such agreement, a full-time local health unit shall be established and maintained by the department in and for the benefit of the counties which have en­tered into such an agreement; and, in such case, the funds raised by taxation pursuant to this chapter by each such county shall be paid to the State Treasurer for the account of the department and shall be known as the full-time local health unit trust fund of the counties so cooperating. Such trust funds shall be used and expended by the department for the purposes specified in this chapter in the counties which have entered into such agreement. In case such an agreement is entered into between two or more counties, the work contemplated by this chap­ter shall be done by a single full-time local health unit in the counties so cooperating, and the nature, extent and location of such work shall be under the control and direction of the department.

History.- s. 5, ch. 14906, 1931; CGL 1936 Supp. 2934(26); s. 2, ch. 61-119; ss. 19, 35, ch. 69-106; s. 33, ch. 77-147.

154.06 Fees and services rendered; authority. -Each local health unit may collect reasonable fees for services rendered, provided a schedule of such fees is established by the board of county commis­sioners, or an equivalent municipal body, and filed with the Department of Health and Rehabilitative Services. All funds collected hereunder shall be ex­pended solely for the purpose of providing health services and facilities within the area served by the local health unit. The board of county commission-

ers, or its equivalent municipal body, may provide for the transmittal of funds collected under the pro­visions of this chapter to the state treasury for credit to the local health unit trust fund.

History.-ss. 1, 2, ch. 69-80; ss. 19, 35, ch. 69-106; s. 3, ch. 72-323; s. 34, ch. 77-147.

PART II

COUNTY PUBLIC HEALTH TRUSTS

154.07 Public health trusts; creation. 154.08 Designated facilities; definition. 154.09 Governing body; composition. 154.10 Relationship with board of county commis­

sioners. 154.11 Powers of board of trustees. 154.12 Legal status of public health trusts.

154.07 Public health trusts; creation.-There may be created in and for each county of the state a public body corporate and politic, to be known as the "public health trust" of such county, for the purpose of exercising the powers described herein with re­spect to "designated facilities" as that term is here­inafter defined. No trust created hereunder shall transact any business or exercise any powers until the governing body of the county of such trust shall, by proper resolution, declare that there is a need for such trust to function and shall appoint the mem­bers thereof.

History.-s. 1, ch. 73-102.

154.08 Designated facilities; definition.-(1) The board of trustees of each public health

trust is authorized to become the operator of, and governing body for, any designated facility. The term "designated facility" shall mean any county­owned or county-operated facility used in connection with the delivery of health care, the operation, gov­ernance, or maintenance of which has been designat­ed by the governing body of such county for transfer to the public health trust of that county.

(2) Designated facilities may include, but shall not be limited to, the following: sanatoriums, clinics, ambulatory care centers, primary care centers, hos­pitals, rehabilitation centers, health training facili­ties, nursing homes, nurses' residence buildings, in­firmaries, outpatient clinics, mental health facili­ties, residences for the aged, rest homes, health care administration buildings, and parking facilities and areas serving health care facilities .

History.-s. 2, ch. 73-102.

154.09 Governing body; composition.-(!) The governing body of each public health

trust shall be a board of trustees consisting of not less than 7 nor more than 21 members, to be appoint­ed for staggered terms of not more than 4 years by the governing body of the county in which such trust is located from among the residents of the county in a manner to be determined by the governing body of the county.

(2) The governing body of the county in which a public health trust is located shall have the power to remove any member of the board of trustees for cause and to fill any vacancies that may occur dur-

668

F.S.1979 PUBLIC HEALTH FACILITIES Ch. 154

ing the term of any trustees for the remainder of such a term.

(3) Before entering upon the duties of the office, each member of the board of trustees shall take the prescribed oath of office. Each trustee shall give bond to the clerk ofthe governing body of the county for the faithful performance of the duties of said office, in a sum to be fixed by said governing body. The bond shall be issued by a surety company au· thorized to do business in the state as a surety. The premium on said bond shall be paid by the trust as part of the expense of the board of trustees.

(4) The board of trustees shall organize immedi­ately after the members thereof are qualified, elect one of its members as a chairman and one of its members as a vice chairman, and designate a secre­tary who may or may not be a member of the board.

(5) Members of the board of trustees shall serve without compensation, but shall be entitled to neces­sary expenses incurred in the discharge of their du­ties.

(6) The board oftrustees shall hold regular meet­ings in accordance with the bylaws of the public health trust, and the board may hold such other meetings as it deems necessary. All meetings of the board shall be public, and written minutes of the proceedings of each meeting shall be maintained by the board. All of the actions taken at said meetings shall be properly and promptly recorded.

History.-s. 3, ch. 73·102.

154.10 Relationship with board of county commissioners.-At such time as the governing body of a county shall declare the need for a public health trust to function in such county, appoint a board oftrustees, and designate health care facilities pursuant to the provisions of this part, said govern­ing body shall be authorized to transfer to the public health trust any or all of the ownership, operation, governance, or maintenance of such designated facil­ities. The county governing body shall, by ordinance, by contract or lease with the public health trust, or by a combination of the foregoing, provide for each of the following:

(1) A method whereby the public health trust shall account to the county governing body for all receipts and expenditures of money.

(2) A method whereby the public health trust shall request, and the county governing body may approve, the appropriation and payment of county funds to support the lawful purposes of the trust.

(3) A method whereby the public health trust shall request, and said county governing body may effectuate, the issuance of bonds or the borrowing of money, pursuant to authority vested in said govern­ing body of the county.

(4) Compliance by the public health trust with policies for countywide health care delivery as estab­lished by the county governing body.

(5) The preservation and continuation of the ben­efits of county employees who became employees of the public health trust, including, but not limited to, participation by such employees in the State and County Officers and Employees' Retirement System and the Florida Retirement System. The trust may provide social security for its employees pursuant to the provisions of chapter 650 and may bring its em-

ployees under the provisions of the Florida Retire­ment System as authorized by chapter 121.

(6) An appellate process to be available to em­ployees against whom disciplinary or other official action has been taken.

(7) A procedure whereby the county governing body may approve or disapprove of contracts be­tween the board of trustees and labor unions.

(8) A method whereby the county governing body may declassify facilities as "designated facilities" and provide for the county to assume the ownership, operation, governance, or maintenance of such facil­ities.

History.-s. 4, ch. 73-102.

154.11 Powers of board of trustees.-(!) The board of trustees of each public health

trust shall be deemed to exercise a public and essen­tial governmental function ofboth the state and the county and in furtherance thereof it shall, subject to limitation by the governing body of the county in which such board is located, have all of the powers necessary or convenient to carry out the operation and governance of designated health care facilities, including, but without limiting the generality of, the foregoing:

(a) To sue and be sued; however, this provision shall not be construed to affect in any way the laws relating to governmental immunity.

(b) To have a seal and alter the same. (c) To make and adopt bylaws and rules and reg­

ulations for the board's guidance and for the opera­tion, governance, and maintenance of designated fa­cilities not inconsistent with ordinances of the coun­ty.

(d) To make and execute contracts and other in­struments necessary to exercise the powers of the board.

(e) To acquire by purchase or otherwise, and to hold title to, any property, real or personal, useful to the purposes of the board.

(f) To lease, either as lessee or lessor, or rent for any number of years and upon any terms and condi­tions real property, except that the board shall not lease or rent, as lessor, any real property except in accordance with the requirements of s. 125.35 [F. S. 1973].

(g) To appoint a chief executive officer of the trust and to remove such an appointee.

(h) To establish rates and charges for those using the facilities of, or receiving care or assistance from, the board and to collect money pursuant thereto.

(i) To accept gifts of money, services, or real or personal property.

(j) To appoint, remove, or suspend employees or agents of the board, fix their compensation, and adopt personnel and management policies.

(k) To provide for employee benefits, including, but not limited to, the benefits required by s. 154.10(5) and those benefits provided by s. 154.12(1).

(l) To cooperate with and contract with any gov­ernmental agency or instrumentality, federal, state, municipal, or county.

(m) To adopt and amend rules and regulations for the management and use of any properties under its control.

(n) To appoint originally the staff of physicians

669

Ch. 154 PUBLIC HEALTH FACILITIES F.S.1979

to practice in any designated facility owned or oper­ated by the board and to approve the bylaws and rules to be adopted by the medical staff of any desig­nated facility owned and operated by the board, such governing regulations to be in accordance with the standards of the Joint Commission on the Accredita­tion of Hospitals which provide, among other things, for the method of appointing additional staff mem­bers and for the removal of staff members.

(o) To employ certified public accountants to au­dit and analyze the records of the board and to pre­pare financial or revenue statements of the board; however, this paragraph shall not in any way affect any responsibility of the auditor general in connec­tion with the records of the board.

(p) To employ legal counsel. (2) A public health trust shall have no power to

impose any tax or issue bonds of any nature, nor shall it have the power to require the imposition of a tax or the issuance of any bond by the governing body of the county.

History.-ss. 5, 6, ch. 73·102.

154.12 Legal status of public health trusts.­(1) Employees of a public health trust created

pursuant to this part shall be considered to come within the terms of chapter 122 for purposes of inclu­sion in the State and County Officers and Employees Retirement System and within the terms of chapter 121, for purposes of inclusion in the Florida Retire­ment System.

(2) A public health trust shall be considered an agency ofthe state with regard to s. 732.29, relating to filing of caveats.

(3) Nothing contained in this part shall be deemed to provide an exclusive method by which counties may operate, govern, and maintain health care facilities, and counties shall be authorized to utilize any other method or means authorized by law for this purpose. Nothing contained herein shall af­fect the continued validity and operation of hospital districts created by special acts.

History.-ss. 7, 8, 11 , ch. 73-102.

PART III

HEALTH FACILITIES AUTHORITIES

154.201 154.203 154.205 154.207 154.209 154.211 154.213 154.215 154.217 154.219 154.221 154.223 154.225 154.227 154.229 154.231 154.233 154.235

Short title. Findings and declaration of necessity. Definitions. Creation of health facilities authorities. Powers of authority: Payment of expens.es. Agreements of lease. Construction contracts. Notes of authority. Revenue bonds. Security of bondholders. Payment of bonds. Revenues. Trust funds. Remedies. Negotiability of bonds. Tax exemption. Refunding bonds.

154.237 154.239 154.241 154.243 154.245

154.246

Legal investment. Reports. Issuance of bonds. Alternate means. Department of Health and Rehabilitative

Services certificate of need required as a condition to bond validation and project construction.

Validation of certain bonds and proceed­ings.

154.201 Short title.-This part shall be known and cited as the "Health Facilities Authorities Law."

History.-s. 1, ch. 74·323.

154.203 Findings and declaration of necessi­ty.-It is declared that for the benefit of the people of this state, the increase of their commerce, welfare, and prosperity, and the improvement of their health and living conditions it is essential that the people of this state have access to adequate medical care and health facilities and that it is essential that health facilities within each county and municipality in the state be provided with appropriate additional means to assist in the development and maintenance of the public health. It is the purpose of this part to provide a measure of assistance and an alternate method to enable health facilities in each county and munici­pality of this state to provide the facilities and struc­tures which are determined to be needed by the com­munity to accomplish the purposes of this part. The necessity in the public interest of the provisions hereinafter enacted is hereby declared as a matter of legislative determination.

History.-s. 2, ch. 74·323.

154.205 Definitions.-The following terms, whenever used in this part, shall have the following meanings unless a different meaning clearly ap­pears from the context:

(1) "Areawide council" means an advisory com­prehensive health planning council, as described and approved ·under all pertinent federal and state law and rules and regulations.

(2) "Authority" or "health facilities authority" means any of the public corporations created by s. 154.207 or any board, body, commission, or depart­ment of a county or municipality s~cceeding to the principal functions thereof or to whom the powers conferred upon each authority by this part shall be given by law.

(3) "Bonds" or "revenue bonds" means revenue bonds of the authority issued under the provisions of this part, including revenue refunding bonds, not­withstanding that the same may be secured by mort­gage or the full faith and credit of a health facility.

(4) "Certificate of need" means a written adviso­ry statement issued by the Department of Health and Rehabilitative Services, having as its basis a written advisory statement issued by an areawide council and, where there is no council, by the Depart­ment of Health and Rehabilitative Services, evidenc­ing community need for a new, converted, expanded, or otherwise significantly modified health facility.

(5) "Clerk" means the clerk of the local agency, or the officer of the local agency, charged with the

670

F.S.1979 PUBLIC HEALTH FACILITIES Ch. 154

duties customarily imposed upon the clerk thereof. (6) "Cost," as applied to a project or any portion

thereof financed under the provisions of this part, embraces:

(a) All or any part ofthe cost of construction and acquisition of all real property, lands, structures, real or personal property rights, rights-of-way, fran­chises, easements, and interest acquired or used for a project.

(b) The cost of demolishing or removing any buildings or structures on land so acquired, includ­ing the cost of acquiring any lands to which such buildings or structures may be removed.

(c) The cost of all machinery and equipment. (d) Financing charges and interest prior to, dur­

ing, and for a period of 24 months after, completion of such construction.

(e) Provisions for reserves for principal and in­terest and for extensions, enlargements, additions, and improvements.

(f) The cost of engineering, appraisal, architec­tural, accounting, financial, and legal services.

(g) The cost of plans, specifications, studies, sur­veys, and estimates of cost and revenues.

(h) Administrative expenses, including expenses necessary or incident to determining the feasibility or practicability of constructing the project.

(i) Such other expenses as may be necessary or incident to the construction and acquisition of the project, the financing of such construction and ac­quisition, and the placing of the project in operation.

(7) "Governing body" means the board, commis­sion, or other governing body of any local agency in which the general legislative powers of such local agency are vested.

(8) "Health facility" means any private corpora­tion organized not for profit and authorized by law to provide hospital or nursing home care services in accordance with chapter 395 or chapter 400.

(9) "Local agency" means any county or munici­pality existing or hereafter created pursuant to the laws of this state.

(10) "Project" means any structure, facility, ma­chinery, equipment, or other property suitable for use by a health facility in connection with its opera­tions or proposed operations, including, without lim­itation, real property therefor; a clinic, computer fa­cility, dining hall, firefighting facility, fire preven­tion facility, food service and preparation facility, health care facility, long-term care facility, hospital, interns' residence, laboratory, laundry, mainte­nance facility, nurses' residence, nursing home, nursing school, office, parking area, pharmacy, rec­reational facility, research facility, storage facility, utility, or X-ray facility, or any combination of the foregoing; and other structures or facilities related thereto or required or useful for health care pur­poses, the conducting of research, or the operation of a health facility, including facilities or structures essential or convenient for the orderly conduct of such health facility and other similar items neces­sary or convenient for the operation of a particular facility or structure in the manner for which its use is intended. "Project" shall not include such items as fuel, supplies, or other items which are customarily deemed to result in a current operating charge.

(11) "Real property" includes all lands, including buildings, structures, improvements, and fixtures thereon; any property of any nature appurtenant thereto or used in connection therewith; and every estate, interest, and right, legal or equitable, there­in, including any such interest for a term of years.

History.-s. 3. ch. 74-323; s. 1, ch. 77-455; s. 1, ch. 78-115.

154.207 Creation of health facilities authori­ties.-

(1) In each local agency there may be created a public body corporate and politic to be known as the ".J~.~.rr.>~ . .9.U9.~!!I .. !!g~~-~Y>. .... Health ·Facilities Authority." Each of said authorities shall be constituted as a public instrumentality, and the exercise by an au­thority of the powers conferred by this part shall be deemed and held to be the performance of an essen­tial public function. Each of said authorities shall not transact any business or exercise any power hereunder until and unless the governing body of the local agency by proper ordinance or resolution shall declare that there is a need for an authority to function in such local agency. The determination as to whether there is such need for an authority to function:

(a) May be made by the governing body on its own motion.

(b) May be made by the governing body upon the filing of a petition signed by 25 residents of the local agency asserting that there is need for an authority to function in such local agency and requesting that the governing body so declare.

(2) The governing body may abolish the authori­ty at any time by ordinance or resolution. However, the authority shall not be abolished until such time as all bonded indebtedness incurred pursuant to this part has been paid.

(3) In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract of the authority, the authority shall be con­clusively deemed to have been established and au­thorized to transact business and exercise its powers hereunder by adoption of an ordinance or resolution by the governing body declaring the need for the authority. Such ordinance or resolution shall be suf­ficient if it declares that there is such a need for an authority in the local agency. A copy of such ordi­nance or resolution duly certified by the clerk shall be admissible in evidence in any suit, action, or pro­ceeding.

(4) The governing body of the local agency shall designate five persons who are residents of the local agency as members of the authority created for said local agency. Of the members first appointed, one shall serve for 1 year, one for 2 years, one for 3 years, and two for 4 years; in each case until his successor is appointed and has qualified. Thereafter the gov­erning body shall appoint, for terms of 4 years each, a member or members to succeed those whose terms expire. The governing body shall fill any vacancy for an unexpired term. A member of the authority shall be eligible for reappointment. Any member of the authority may be removed by the governing body for misfeasance, malfeasance, or willful neglect of duty. Each member of the authority, before entering upon his duties, shall take and subscribe the oath or affir­mation required by the State Constitution. A record

671

Ch. 154 PUBLIC HEALTH FACILITIES F.S.1979

of each oath shall be filed in the Department ofState and with the clerk.

(5) The authority shall annually elect one of its members as chairman and one as vice chairman.

(6) The authority shall keep a record of its pro­ceedings and shall be custodian of all books, docu­ments, and papers filed with it and of its minute book or journal and official seal. The authority shall cause copies to be made of all its minutes and other records and documents and shall give certificates under its official seal to the effect that such copies are true copies, and all persons dealing with it may rely upon such certificates.

(7) Three members of the authority shall consti­tute a quorum, and the affirmative vote of a majority of the members present at a meeting of the authority shall be necessary for any action taken by an author­ity. However, any action may be taken by the au­thority with the unanimous consent of all of its members. No vacancy in the membership of the au­thority shall impair the right of a quorum to exercise all the rights and perform all the duties of the au­thority. Any action taken by the authority under the provisions of this part may be authorized by resolu­tion at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted. All meetings of the au­thority, as well as all records, books, documents, and papers, shall be open and available to the public in accordance with s. 286.011.

(8) The members of the authority shall receive no compensation for the performance of their duties hereunder, but each member shall be paid his neces­sary expenses incurred while engaged in the per­formance of such duties pursuant to s. 112.061.

(9) Any general or special law, rule or regulation, or ordinance of any local agency to the contrary not­withstanding, service as a member of an authority by a trustee, director, officer, or employee of a health facility shall not in and of itself constitute a conflict of interest. However, any member of the authority who is employed by, or receives income from, a health facility under consideration by the authority shall not vote on any matter related to such facility.

History.-s. 4, ch. 74-323.

154.209 Powers of authority.-The purpose of the authority shall be to assist health facilities in the acquisition, construction, financing, and refinancing of projects in any corpora ted or unincorporated area within the geographical limits of the local agency. For this purpose, the authority is authorized and empowered:

(1) To adopt an official seal and alter the same at pleasure.

(2) To maintain an office at such place or places in the local agency as it may designate.

(3) To sue and be sued in its own name and to plead and be impleaded.

(4) To acquire by purchase, lease, gift, or other­wise, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, for the acquisition, construction, operation, or main­tenance of any project.

(5) To construct, acquire, own, lease, repair, maintain, extend, expand, improve, rehabilitate, renovate, furnish, and equip projects and to pay all

or any part of the costs thereof from the proceeds of bonds of the authority or from any contribution, gift, or donation or other funds made available to the authority for such purpose.

(6) To make and execute agreements of lease, contracts, deeds, mortgages, notes, and other instru­ments necessary or convenient in the exercise of its powers and functions under this part.

(7) To sell, lease, exchange, mortgage, transfer, or otherwise dispose of, or to grant options for any such purposes with respect to any project, any real or personal property or interest therein.

(8) To pledge or assign any money, rents, charges, fees, or other revenues and any proceeds derived from sales of property, insurance, or con­demnation awards.

(9) To fix, charge, and collect rents, fees, and charges for the use of any project.

(10) To issue bonds for the purpose of providing funds to pay all or any part ofthe cost of any project and to issue refunding bonds.

(11) To employ consulting engineers, architects, surveyors, attorneys, accountants, financial experts, and such other employees and agents as may be nec­essary in its judgment and to fix their compensation.

(12) To acquire existing projects and to reim­burse any health facility for the cost of such project in accordance with an agreement between the au­thority and the health facility. However, no such reimbursement shall exceed the total cost of the project as determined by the health facility and ap­proved by the authority.

(13) To acquire existing projects and to refund outstanding obligations, mortgages, or advances is­sued, made, or given by a health facility for the cost of such project.

(14) To charge to, and equitably apportion among, health facilities its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this part.

(15) To mortgage any project and the site thereof for the benefit of the holders of the bonds issued to finance such project.

(16) To do all things necessary to carry out the purposes of this part.

History.-s. 5, ch. 74-323; s. 1, ch. 77-174.

154.211 Payment of expenses.-All expenses incurred in carrying out the provisions of this part shall be payable solely from funds provided under the provisions of this part, and no liability or obliga­tion shall be incurred by an authority, a local agen­cy, or the state hereunder beyond the extent to which moneys shall have been provided under the provisions of this part.

History.-s. 6, ch. 74-323.

154.213 Agreements of lease.-In undertaking any project pursuant to this part, the authority shall first obtain a valid certificate of need evidencing need for the project and a statement that the project serves a public purpose by advancing the commerce, welfare, and prosperity of the local agency and its people. No project financed under the provisions of this part shall be operated by the authority or any other governmental agency; however, the authority may temporarily operate or cause to be operated all

672

F.S.1979 PUBLIC HEALTH FACILITIES Ch. 154

or any part of a project to protect its interest therein pending any leasing of such project in accordance with the provisions of this part. The authority may lease a project or projects to a health facility for operation and maintenance in such manner as to effectuate the purposes of this part under an agree­ment oflease in form and substance not inconsistent herewith.

(1) Any such agreement of lease may provide, among other provisions, that:

(a) The lessee shall at its own expense operate, repair, and maintain the project or projects leased thereunder.

(b) The rent payable under the lease shall in the aggregate be not less than an amount sufficient to pay all of the interest, principal, and redemption premiums, if any, on the bonds that shall be issued by the authority to pay the cost of the project or projects leased thereunder.

(c) The lessee shall pay all costs incurred by the authority in connection with the acquisition, financ­ing, construction, and administration of the project or projects leased, except as may be paid out of the proceeds of bonds or otherwise, including, but with­out being limited to: Insurance costs, the cost of ad­ministering the bond resolution authorizing such bonds and any trust agreement securing the bonds, and the fees and expenses of trustees, paying agents, attorneys, consultants, and others.

(d) The terms of the lease shall terminate not earlier than the date on which all such bonds and all other obligations incurred by the authority in con­nection with the project or projects leased thereund­er shall be paid in full, including interest, principal, and redemption premiums, if any, or adequate funds for such payment shall be deposited in trust.

(e) The lessee's obligation to pay rent shall not be subject to cancellation, termination, or abatement by the lessee until such payment of the bonds or provision for such payment shall be made.

(2) Such lease agreement may contain such addi­tional provisions as in the determination of the au­thority are necessary or convenient to effectuate the purposes of this part, including provisions for exten­sions of the term and renewals of the lease and vest­ing in the lessee an option to purchase the project leased thereunder pursuant to such terms and condi­tions consistent with this part as shall be prescribed in the lease. Except as may otherwise be expressly stated in the agreement of lease, to provide for any contingencies involving the damaging, destruction, or condemnation of the project leased or any sub­stantial portion thereof, such option to purchase may not be exercised unless all bonds issued for such project, including all principal, interest, and re­demption premiums, if any, and all other obligations incurred by the authority in connection with such project, shall have been paid in full or sufficient funds shall have been deposited in trust for such payment. The purchase price of such project shall not be less than an amount sufficient to pay in full all of the bonds, including all principal, interest, and redemption premiums, if any, issued for the project

then outstanding and all other obligations incurred by the authority in connection with such project.

History.-s. 7, ch. 74-323.

154.215 Construction contracts.-Contracts for the construction of any project shall be awarded by the authority upon a competitive or negotiated basis, as it determines will most effectively serve the purposes of this part. The authority may, by written contract, engage the services of the lessee or prospec­tive lessee of any project in the construction of such project and may provide in such contract that the lessee or prospective lessee may act as an agent of, or an independent contractor for, the authority for the performance of the functions described therein, subject to such conditions and requirements consist­ent with the provisions of this part as shall be pre­scribed in such contract, including such functions as the acquisition of the site and other real property for such project; the preparation of plans, specifications, and contract documents; the award of construction and other contracts upon a competitive or negotiated basis; the construction of such project, or any part thereof, directly by such lessee or prospective lessee; the inspection and supervision of construction; the employment of engineers, architects, builders, and other contractors; and the provisions of money to pay the cost thereof pending reimbursement by the authority. Any such contract may provide that the authority may, out of proceeds of bonds, make ad­vances to or reimburse the lessee or prospective les­see for its costs incurred in the performance of such functions and shall set forth the supporting docu­ments required to be submitted to the authority and the reviews, examinations, and audits that shall be required in connection therewith to assure compli­ance with the provisions of this part and such con­tract.

History.-s. 8, ch. 74-323.

154.217 Notes of authority.-The authority is authorized from time to time to issue its negotiable notes for any corporate purposes and renew from time to time any notes by the issuance of new notes, whether the notes to be renewed have or have not matured. Except as otherwise provided herein or in s. 154.219, the maximum maturity of such notes, not including renewals thereof, shall not exceed 1 year. The notes may be authorized, sold, executed, and delivered in the same manner as bonds. All such notes shall be payable solely from the revenues of the authority, subject only to any contractual rights of the holders of any of its notes or other obligations then outstanding.

History.-s. 9, ch. 7 4-323.

154.219 Revenue bonds.-(1) The authority is authorized from time to time

to issue its negotiable revenue bonds for the purpose of paying all or any part of the cost of any project or projects for which a certificate of need has been ob­tained, or pursuant to subsections (12) and (13) of s. 154.209 for the purpose of paying all or any part of the cost of acquiring existing or completed health facilities projects. In anticipation of the sale of such revenue bonds, the authority may issue negotiable bond anticipation notes and may renew the same

673

Ch. 154 PUBLIC HEALTH FACILITIES F.S.1979

from time to time, but the maximum maturity of any such note, including renewals thereof, shall not ex­ceed 5 years from the date of issue of the original note. Such notes shall be paid from any revenues of the authority available therefor and not otherwise pledged or from the proceeds of sale of the revenue bonds of the authority in anticipation of which they were issued. The notes shall be issued in the same manner as the revenue bonds. Such notes and the resolution or resolutions authorizing the same may contain any provisions, conditions, or limitation which a bond resolution of the authority may con­tain.

(2) The revenue bonds and notes of every issue shall be payable solely out of revenues derived by the authority from the sale, operation, or leasing of any project or projects, subject only to any agreements with the holders of particular revenue bonds or notes pledging any particular revenues. Notwithstanding that revenue bonds and notes may be payable from a special fund, they shall be, and be deemed to be, for all purposes, negotiable instruments, subject only to the provisions of the revenue bonds and notes for registration.

(3) The revenue bonds may be issued as serial bonds or as term bonds, or the authority, in its dis­cretion, may issue bonds of both types. The revenue bonds shall be authorized by resolution of the mem­bers of the authority and shall bear such date or dates; mature at such time or times, not exceeding 50 years from their respective dates; bear interest at such rate or rates; be payable at such time or times; be in such denominations; be in such form, either coupon or registered, or both; carry such registration privileges; be executed in such manner; be payable in lawful money of the United States at such place or places; and be subject to such terms of redemp­

or of any particular issue of revenue bonds, subject to such agreements with bondholders as may then exist.

(b) The rentals, fees, and other charges to be charged, the amounts to be raised in each year there­by, and the use and disposition of the revenues.

(c) The setting aside of reserves or sinking funds and the regulation and disposition thereof.

(d) Limitations on the right of the authority to restrict and regulate the use of the project.

(e) Limitations on the purpose to which the pro­ceeds of sale of any issue of revenue bonds then or thereafter to be issued may be applied and pledging such proceeds to secure the payment of the revenue bonds or any issue of the revenue bonds.

(f) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of out­standing bonds.

(g) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount ofbonds the holders of which must consent thereto, and the manner in which such consent may be given.

(h) Defining the acts or omissions to act which shall constitute a default in the duties of the authori­ty to holders of its obligations and providing the rights and remedies of such holders in the event of a default.

(i) The mortgaging of a project and the site there­of for the purpose of securing the bondholders.

(5) Neither the members ofthe authority nor any person executing the revenue bonds or notes shall be liable personally on the revenue bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.

History.- s. 10, ch. 74·323.

tion, including redemption prior to maturity, as such 154.221 Security of bondholders.-In the dis­resolution or resolutions may provide. The authority cretion of the authority, any bonds issued under the shall determine the form and manner of execution of provisions of this part may be secured by a trust the bonds, including any interest coupons to be at- agreement by and between the authority and a cor­tached thereto, and shall fix the denomination or porate trustee, which may be any trust company or denominations of the bonds and the place or places bank having the powers of a trust company within of payment of principal and interest, which may be or without the state. Such trust agreement or resolu­at any bank or trust company within or without the tion providing for the issuance of such bonds may state. In case any officer whose signature, or a fac- pledge or assign the fees, rents, charges, or proceeds simile of whose signature, shall appear on any bonds from the sale of any project or part thereof, insur­or coupons shall cease to be such officer before the ance proceeds, condemnation awards, and other delivery of such bonds, such signature or facsimile funds and revenues to be received therefor, and may shall nevertheless be valid and sufficient for all pur- provide for the mortgaging of any project or any part poses the same as if he had remained in office until thereof as security for repayment ofthe bonds. Such such delivery. The authority shall also provide for trust agreement or resolution providing for the issu­the authentication ofthe bonds by a trustee or fiscal ance of such bonds shall contain such provisions for agent. The revenue bonds or notes may be sold at protecting and enforcing the rights and remedies of public or private sale for such price or prices as the the bondholders as may be reasonable and proper authority shall determine. Pending preparation of and not in violation oflaw, including covenants set­the definitive bonds, the authority may issue interim ting forth the duties of the authority in relation to receipts or certificates which shall be exchanged for the acquisition of property and the construction, im­such definitive bonds. provement, maintenance, repair, operation, and in-

(4) Any resolution or resolutions authorizing any surance of the project or projects in connection with revenue bonds or any issue of revenue bonds may which such bonds shall have been authorized; the contain provisions which shall be a part of the con- fees, rents and other charges to be fixed and collect­tract with the holders of the revenue bonds to be ed; the sale of any project, or part thereof, or other authorized, as to: property; the terms and conditions for the issuance

(a) Pledging of all or any part of the revenues of of additional bonds; and the custody, safeguarding, a project to secure the payment of the revenue bonds and application of all moneys. It shall be lawful for

674

F.S.1979 PUBLIC HEALTH FACILITIES Ch. 154

any bank or trust company incorporated under the laws of the state which may act as depositary of the proceeds of bonds, revenues, or other money hereun­der to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. Any such trust agreement or resolution shall set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition to the forego­ing, any such trust agreement or resolution may con­tain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the project or projects in connection with which bonds are issued or as an expense of administration of such projects, as the case may be.

History.-s. 11, ch. 7 4-323.

154.223 Payment ofbonds.-Revenue bonds is­sued .under the provisions of this part shall not be deemed to constitute a debt, liability, or obligation of the local agency or the state or any political subdivi­sion thereof, or a pledge of the faith and credit ofthe local agency or the state or any political subdivision thereof, but shall be payable solely from the reve­nues provided therefor. All such revenue bonds shall contain on the face thereof a statement to the effect that the authority shall not be obligated to pay the same or the interest thereon except from the reve­nues of the project or the portion thereof for which they are issued and that neither the faith and credit nor the taxing power of the local agency or of the state or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of revenue bonds under the provisions of this part shall not directly, indirectly, or contingently obligate the local agency or the state or any political subdivision there­of to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their pay­ment.

History.-s. 12, ch. 74-323.

154.225 Revenues.-(!) The authority is hereby authorized to fix and

to collect fees, rents, and charges for the use of any project or projects and any part or section thereof. The authority may require that the lessee of any project or part thereof shall operate, repair, and maintain the project and bear the cost thereof and other costs of the authority in connection with the project or projects leased as may be provided in the agreement of lease or other contract with the au­thority, in addition to other obligations imposed un­der such agreement or contract.

(2) The fees, rents, and charges shall be so fixed as to provide a fund sufficient to pay the principal of, and the interest on, such bonds as the same shall become due and payable and to create reserves, if any, deemed by the authority to be necessary for such purposes. The fees, rents, charges, and all other revenues and proceeds derived from the project or projects in connection with which the bonds of any issue shall have been issued, except such part there­of as may be necessary for such reserves or any ex-

penditures as may be provided in the resolution au­thorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be specified in such resolution or such trust agreement in a sinking fund which is hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds as the same shall become due and the redemp­tion price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made. The fees, rents, charges, and other revenues and moneys so pledged and thereafter re­ceived by the authority shall immediately be subject to the lien of such pledge without any physical deliv­ery thereof or further act, and the lien of any such pledge shall be valid and binding as against all par­ties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof The use and disposition of money to the credit of such sinking fund shall be subject to the provisions of the resolu­tion authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in the resolution or the trust agreement, the sinking fund shall be a fund for all such bonds without distinction or priority of one over another.

History.-s. 13, ch. 74-323.

154.227 Trust funds.-Notwithstanding any other provisions of law to the contrary, all money received pursuant to the provisions of this part, whether as proceeds from the sale of bonds, sale of property, insurance, or condemnation awards, or as revenues, shall be deemed to be trust funds, to be held and applied solely as provided in this part. The resolution authorizing the bonds of any issue or the trust agreement securing such bonds may provide that any of such moneys may be temporarily invest­ed pending the disbursement thereof and shall pro­vide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this part and such resolution or trust agreement may provide.

History.-s. 14, ch. 74-323.

154.229 Remedies.-Any holder of bonds issued under the provisions of this part or of any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by such trust agree­ment or the resolution authorizing the issuance of such bonds, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of this state or granted hereunder or under such trust agreement or resolution authorizing the issuance of such bonds, or under any agreement oflease or other contract executed by the authority pursuant to this part, and may enforce and compel the performance of all duties required by this part or by such trust agreement or resolution to be performed by any les­see or the authority or by any officer thereof, includ-

675

Ch. 154 PUBLIC HEALTH FACILITIES F.S.1979

ing the fixing, charging, and collecting of fees, rents, and charges.

History.-s. 15, ch. 74-323.

154.231 Negotiability of bonds.-All bonds is­sued under the provisions of this part shall have, and are hereby declared to have, all the qualities and incidents, including negotiability, of investment se­curities under the Uniform Commercial Code, but no provision of such code respecting the filing of a fi­nancing statement to perfect a security interest shall be deemed necessary for, or applicable to, any security interest created in connection with the issu­ance of any such bonds.

History.-s. 16, ch. 74-323.

154.233 Tax exemption.-The exercise of the powers granted by this part will be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and for the improvement of their health and living condi­tions, and because the operation and maintenance of a project by a health facility will constitute the per­formance of an essential public function, neither the authority nor a hospital institution shall be required to pay any taxes or assessments upon or in respect of a project or any property acquired by the authori­ty under the provisions of this part or upon the in­come therefrom, and any bonds issued under the provisions of this part, their transfer, and the in­come therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the state, the local agency, and municipalities and other political subdivisions in the state, except that such income shall be subject to the tax imposed pursuant to the provisions of chapter 220. Nothing in this section shall be construed as exempting from taxation or assessments the lease­hold interest of any health facility organized for profit. If any project or any part thereof shall be occupied or operated by any health facility organized for profit pursuant to any contract or lease with the authority, the property interest created by such con­tract or lease shall be subject to taxation to the same extent as other privately owned property.

History.-s. 17, ch. 74-323.

154.235 Refunding bonds.-(1) The authority is hereby authorized to provide

for the issuance of revenue bonds for the purpose of refunding any of its revenue bonds then outstand­ing, including the payment of any redemption pre­mium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of such revenue bonds.

(2) The proceeds of any such revenue bonds is­sued for the purpose of refunding outstanding reve­nue bonds may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of such outstanding revenue bonds ei­ther on their earliest or any subsequent redemption date, or upon the purchase or at the maturity there­of, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority.

(3) Any such escrowed proceeds, pending such

use, may be invested and reinvested in direct obliga­tions of the United States, in any obligations of which the principal and interest are unconditionally guaranteed by the United States, in certificates of deposit or time deposits secured by direct obligations of the United States, or in any obligations ofwhich the principal and interest are unconditionally guar­anteed by the United States, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income, and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits, if any, earned or realized on the invest­ments thereof may be returned to the authority for use by it in any lawful manner.

(4) All such revenue bonds issued for the pur­poses of refunding shall be subject to the provisions of this part in the same manner and to the same extent as other revenue bonds issued pursuant to this part.

History.-s. 18, ch. 74-323.

154.237 Legal investment.-Bonds issued by the authority under the provisions of this part are hereby made securities in which all public officers and public bodies of the state and its political subdi­visions and all insurance companies, trust compa­nies, banking associations, investment companies, executors, administrators, trustees, and other fiduci­aries may properly and legally invest funds, includ­ing capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit ofbonds or obligations of the state is now or may hereinafter be authorized by law.

History.-s. 19, ch. 74-323.

154.239 Reports.-Within the first 90 days of each calendar year, the authority shall make a re­port to the governing board of the county of its activi­ties for the preceding calendar year. Each such re­port shall set forth a complete operating and finan­cial statement covering its operations during the year.

History.-s. 20, ch. 7 4-323.

154.241 Issuance of bonds.-Bonds issued un­der the provisions of this part shall be validated in the manner prescribed by chapter 75.

History.-s. 21, ch. 74-323.

154.243 Alternate means.-This part shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and addition­al to powers conferred by other laws.

History.-s. 22, ch. 74-323.

676

F.S.l979 PUBLIC HEALTH FACILITIES Ch. 154

154.245 Department of Health and Rehabili· tative Services certificate of need required as a condition to bond validation and project con­struction.-Notwithstanding any provision of this part to the contrary, before any project authorized by this part is approved by the authority, and before revenue bonds are validated for the project, the De­partment of Health and Rehabilitative Services shall issue a certificate of need for such project, which shall be a condition precedent to the valida­tion and issuance of any bonds hereunder, other than bonds for refunding or refinancing purposes, and to the construction of the project.

History.- s. 23, ch. 74-323; s. 2, ch. 78-115.

154.246 Validation of certain bonds and pro­ceedings.-The Legislature finds and declares that the purpose of chapter 78-115, Laws ofFlorida, is, in part, to clarify the original meaning of the Health Facilities Authorities Law, and, therefore, all bonds heretofore issued and proceedings conducted pursu­ant thereto which would have been valid had the amendment to s. 154.245, as set forth in s. 2 of chap­ter 78-115, been in effect when said bonds were is­sued or proceedings were conducted are hereby de­clared valid.

History.-s. 3, ch. 78-115.

PART IV

HEALTH CARE RESPONSIBILITY FOR INDIGENTS

154.301 Short title. 154.302 Legislative intent. 154.304 Definitions. 154.306 Financial responsibility for out-of-county

indigent patients treated at a regional referral hospital.

154.308 Certification of indigency for the purpose of this act; rules.

154.31 Obligation of the regional referral hospi-tal.

154.312 Procedure for settlement of disputes. 154.314 Certification of the State of Florida. 154.316 Admission of indigent patients.

154.301 Short title.-This act may be cited as "The Florida Health Care Responsibility Act."

History.-s. 2, ch. 77-455.

154.302 Legislative intent.-It is the intent of the Legislature to place the ultimate financial obli­gation for the medical treatment of indigents on the county in which the indigent resides, for all those costs not fully reimbursed by other governmental programs or third-party payors.

History.-s. 3, ch. 77-455.

154.304 Definitions.-For the purpose of this act:

(1) "Certified indigent patient" means a patient who has been certified as indigent by the county in which he resides.

(2) "Department" means the Department of Health and Rehabilitative Services.

(3) "Hospital" means an establishment as de-

fined in s. 395.01 and licensed by the department, except that hospitals operated by the department shall not be considered hospitals for purposes of this act.

(4) "Regional referral hospital" means any hos­pital that provides services to patients who reside in counties other than the county in which the hospital is located.

History.-s. 4, ch. 77-455.

154.306 Financial responsibility for out-of­county indigent patients treated at a regional referral hospital.-Ultimate financial responsibil­ity for treatment received at a regional referral hos­pital by a certified indigent patient who is a resident of the State of Florida but is not a resident of the county in which the regional referral hospital is lo­cated shall be the obligation of the county of which the certified indigent patient is a resident. A coun­ty's financial responsibility for each of its resident certified indigent patients receiving treatment at a regional referral hospital shall be limited to pay­ment for 12 days of services per admission, not to exceed 45 days per annum, at the per diem reim­bursement rate currently in effect for the regional referral hospital under the medical assistance pro­gram for the needy under Title XIX of the Social Security Act, as amended. However, no county shall be required to pay for services at a regional referral hospital when such services are available at a local hospital in the county where the indigent resides, except that the county where the indigent resides shall, in all instances, be liable for the cost of treat­ment provided to said certified indigent at a regional referral hospital for any emergency medical condi­tion which will deteriorate from failure to provide such treatment and when such condition is deter­mined by the attending physician to be of an emer­gency nature.

History.-s. 5, ch. 77-455.

154.308 Certification of indigency for the purpose of this act; rules.-Not later than October 1, 1977, the department, in consultation with the Florida Association of County Welfare Executives, shall adopt rules which provide a statewide eligibili­ty standard for certifying residents of each county as indigent for the purposes of this act. These rules shall further provide that certification as indigent for the purposes of this act may occur either prior to a person's admission to a regional referral hospital or subsequent to such admission, but in any event if a determination of whether a patient meets or does not meet eligibility standards for certification as in­digent for the purpose of this act is not made within 30 days following notification to the county of resi­dence of the patient's admission to a regional refer­ral hospital, the patient shall be considered to have been a certified indigent patient upon admission. A patient certified as indigent for the purpose of this act subsequent to his or her admission to a regional referral hospital shall be considered to have been certified upon admission. Such certification shall be made by a person designated by the board of county commissioners or, in the absence of such a designat­ed person, by the director of the full-time health unit. Furthermore, any county may establish stand-

677

Ch. 154 PUBLIC HEALTH FACILITIES F.S.1979

ards of eligibility which are less restrictive than the standards adopted by the department under this sec­tion, and no county may establish standards which are more restrictive than the standards adopted by the department under this section.

History.- s. 6, ch. 77-455.

154.31 Obligation of the regional referral hospitaL-As a condition of accepting the proce­dures of this act, each regional referral hospital in Florida shall be obligated to admit for treatment all Florida residents who meet the eligibility standards established pursuant to s. 154.308 and who meet the medical standards for admission to such institutions.

History.-s. 7, ch. 77-455.

154.312 Procedure for settlement of disputes. -All disputes between a county and a regional re­ferral hospital shall be resolved by order as provided in chapter 120.

History.- s. 8, ch . 77-455.

154.314 Certification of the State of Florida. -In the event payment for the costs of services ren­dered by a regional referral hospital is not received

from the responsible county within 60 days of receipt of a statement for services rendered, or if the pay­ment is disputed and said payment is not received from the responsible county within 30 days of the date of exhaustion of all administrative and legal remedies, as provided in chapter 120, the hospital shall certify the amount due to the Comptroller, who shall forward the amount delinquent to the appro­priate regional referral hospital from any funds due to the county under any revenue-sharing or tax­sharing fund established by the state, except as oth­erwise provided by the State Constitution.

History.-s. 9, ch. 77-455.

154.316 Admission of indigent patients.-Ex­cept in the case of an emergency, no patient shall be treated by, or admitted to, a regional referral hospi­tal as an indigent unless and until the board of coun­ty commissioners of the county providing certifica­tion notifies the hospital that the patient is certified as an indigent and that he is approved by the board for treatment or admission.

History.-s. 10, ch. 77-455.

678

F.S.1979 COUNTY HOSPITALS Ch. 155

CHAPTER 155

COUNTY HOSPITALS

155.01 County commissioners may act as trustees of stock of hospitals.

155.02 Rule against perpetuities inapplicable. 155.03 Duties of county commissioners. 155.04 County hospitals; petition; election; estab­

lishment. 155.05 County hospitals; establishment without

election. 155.06 County hospitals; trustees; appointment,

etc. 155.07 County hospitals; organization; officers;

powers; etc. 155.08 County hospitals; seal; evidence; etc. 155.09 County hospitals; secretary; minutes; ac­

counts; etc. 155.10 County hospitals; rules and regulations. 155.11 County hospitals; deposit of moneys; bank;

payments. 155.12 County hospitals; general powers of trus­

tees; duties; tax levies; etc. 155.13 County hospitals; vacancies in trustees. 155.14 County hospitals; bonds; maturities; inter­

est; etc. 155.15 County hospitals; procuring lands for hospi­

tal. 155.16 County hospitals; residents; nonresidents;

fees; contagious diseases; etc. 155.17 County hospitals; rules for physicians,

nurses, etc. 155.18 County hospitals; discrimination against

doctors; etc. · 155.19 County hospitals; training school for

nurses. 155.20 County hospitals; charity patients; hospital

charges. 155.21 County hospitals; donations; etc. 155.22 County hospitals; purposes are public. 155.23 County hospitals; federal loans, aid, etc. 155.24 County hospitals; additional funds. 155.25 Levy authorized for county hospital pur­

poses.

155.01 County commissioners may act as trustees of stock of hospitals.-Whenever the owners of a majority of the outstanding capital stock of a corporation created for and engaged solely in the operation of a hospital shall execute a trust deed, or deeds, conveying a majority of the capital stock of such corporation to the board of county commission­ers of the county in which such hospital is located, in trust to be held and administered by such board of county commissioners as trustees with authority to vote said stock at all meetings of the stockholders of such corporation and to expend all dividends de­clared upon such stock in the hospitalization of the indigent citizens of the county who need hospital treatment, with provisions that should the proper­ties of such corporation cease for a period of 6 months to be used primarily for hospital purposes or should the hospital so maintained be not maintained open to the practice of all duly licensed physicians and surgeons resident in the county where the same

is located that the trust shall then, but not before, be terminated and the ownership of the stock so placed in trust shall revert to the respective persons execut­ing the trust deed, or deeds, their heirs, legatees or assigns; the board of county commissioners may ac­cept such trust and act as trustee thereunder.

History.-s. 1, ch. 17834, 1937; CGL 1940 Supp. 2934(28).

155.02 Rule against perpetuities inapplica­ble.-No such trust shall be invalid by reason of the rule against perpetuities nor shall the rights of the persons creating the same, their heirs, legatees or assigns, to receive back their stock upon the termi­nation of said trust be impaired or denied by reason of any application of the statutes of uses or the rule against perpetuities.

History.-s. 2, ch. 17834, 1937; CGL 1940 Supp. 2934(29).

155.03 Duties of county commissioners.­Should the board of county commissioners accept such trust, it shall administer the same until the termination of the trust; providing, however, that nothing herein shall require the board of county commissioners to expend any funds of the county in the maintenance of such hospital or the administra­tion of such trust.

History.-s. 3, ch. 17834, 1937; CGL 1940 Supp. 2934(30).

155.04 County hospitals; petition; election; establishment.-

(!) Whenever the board of county commissioners of any county in the state shall be presented with a petition signed by 5 percent of the resident freehold­ers of such county, asking that an annual tax may be levied for the establishment and maintenance of a public hospital at a place in the county named there­in, and shall specify in said petition the maximum amount of money proposed to be expended in pur­chasing or building said hospital, such board of coun­ty commissioners shall submit the question to the qualified electors of the county who are freeholders at the next general election to be held in the county, or at a special election called for that purpose, first giving 30 days' notice thereof in one or more newspa­pers published in the county, if any be published therein, or posting written or printed notices in each precinct of the county, which notice shall include the text of the petition and state the amount of the tax to be levied upon the assessed property of the said county which tax shall not exceed 5 mills on the dollar, and be for the issue of the county bonds, to provide funds for the purchase of the site, or sites, and the erection thereon of a public hospital and hospital buildings, and for the support of same, which bonds shall be payable within 30 years, which said election shall be held at the usual places in such county for voting upon county officers, and shall be canvassed in the same manner as the vote for the county officers is canvassed. The ballots to be used in any election at which such hospital question is sub­mitted, shall be printed with a statement substan­tially as follows:

For a .. ... mill tax for a bond issue for a public

679

Ch. 155 COUNTY HOSPITALS F.S.1979

hospital, and for maintenance of same: YES .... . NO .... . (2) If a majority of the freeholders who are quali­

fied electors shall participate in said election and a majority of the votes cast at such election on the proposition so submitted shall be in favor of said tax for such bond issue, the board of county commission­ers shall levy a tax so authorized, which shall be collected in the same manner as other taxes are col­lected, and credited to the hospital fund, and shall be paid out on the order of the hospital trustees for the purposes authorized by this law, and for no other purposes whatever.

History.-s. 1, ch. 20905, 1941; s. 1, ch. 26513, 1951. cf.-s. 200.071 Limitation of millage; counties.

155.05 County hospitals; establishment with­out election.-If the county commissioners of any such county, by reason of funds on hand, or dona­tions, or otherwise, are able to build and establish a public hospital without issuing bonds as provided in s. 155.04, then such board of county commissioners is hereby authorized and empowered to establish such public hospital and, without any election, to levy an annual tax for the maintenance thereof, such tax not to exceed 5 mills on the dollar and to be collected in the same manner as the tax provided for in s. 155.04.

History.-s. 2, ch. 20905, 1941. cf.-s. 200.071 Limitation of millage; counties.

155.06 County hospitals; trustees; appoint­ment, etc.-Should a majority of all votes cast upon the question be in favor of establishing such county public hospital, or should the board of county com­missioners of any county establish a county public hospital as provided ins. 155.05, the Governor of the state shall immediately proceed to appoint five trus­tees chosen from the citizens at large from such county, with reference to their fitness for such office, who shall constitute a board of trustees for said pub­lic hospital. On the original appointment of said trustees, two of said trustees shall be appointed for a term of 1 year, one for a term of 2 years, one for a term of 3 years and one for a term of 4 years and thereafter upon the expiration of said original ap­pointments, their successors shall be appointed by the Governor of the state for a term of 4 years.

History.-s. 3, ch. 20905, 1941.

155.07 County hospitals; organization; offi­cers; powers; etc.-The said trustees shall, within 10 days after their appointment, qualify by taking the oath of office and organize a board of hospital trustees by the election of one of their members as chairman and one as secretary and treasurer and by the election of such other officers as they deem nec­essary. Such chairman shall be executive officer of the board of trustees and shall enforce and carry out all the orders of the board of trustees contained in resolutions duly adopted and entered on the minute books of the meetings of the board of trustees. He shall preside at all meetings and countersign all vouchers and warrants issued by the secretary and treasurer hereinafter provided for. In the absence of the chairman, vouchers and warrants may be coun-

tersigned by any other member of the board oftrus­tees selected by the members of the board of trustees as chairman pro tern. In the absence of the chairman and chairman pro tern, vouchers and warrants may be countersigned by the hospital administrator or another full-time employee of the hospital as desig­nated by the members of the board of trustees. The chairman, chairman pro tern, and such other full­time employees as may be designated by the mem­bers of the board of trustees to countersign warrants or vouchers shall give bonds in a sum to be fixed by the board of county commissioners for the faithful performance of their duties in some reputable bond­ing company authorized to do business in the state, and said bonds shall be made payable to the Gover­nor of Florida and his successors in office. No mem­ber of said board of trustees shall receive any com­pensation for his services as such trustee, but shall be reimbursed for traveling expenses as provided in s. 112.061.

History.-s. 4, ch. 20905, 1941; s. 19. ch. 63-400; s. 1, ch. 76-21.

155.08 County hospitals; seal; evidence; etc. -The board of trustees as herein constituted shall adopt a common seal, and certification under the seal of the board of hospital trustees, signed by the chairman and attested by the secretary and treasur­er, shall constitute sufficient evidence.

History.-s. 5, ch. 20905, 1941.

155.09 County hospitals; secretary; minutes; accounts; etc.-The board of trustees shall elect from its members a secretary and treasurer whose duties it shall be to keep full and correct minutes of all the proceedings of the board of trustees, and keep a separate itemized account of all the expenditures and disbursements by said board of trustees. Said minutes and accounts shall be open to public inspec­tion at any time on demand of any taxpayer in such district. The secretary and treasurer shall give bond in a sum to be fixed by the board of county commis­sioners for the faithful performance of his duties in some reputable bonding company authorized to do business in the state, and said bond shall be made payable to the Governor of Florida and his succes­sors in office.

History.-s. 6, ch. 20905, 1941.

155.10 County hospitals; rules and regula­tions.-The board of trustees shall make and adopt such bylaws and rules and regulations for their own guidance and for the government of the hospital as may be deemed expedient for the economic and equi­table conduct thereof, not inconsistent with this law, or the ordinance of the city or town wherein such hospital is located. They shall have exclusive control of the expenditures of all moneys collected to the credit of the hospital fund.

History.-s. 7, ch. 20905, 1941.

155.11 County hospitals; deposit of moneys; bank; payments.-

(1) All moneys received for such hospital shall be deposited in any bank designated by the said board of trustees, and placed to the credit of the hospital fund and can be paid out only as bills for material supplies, equipment, wages, salaries, or other items

680

F.S.1979 COUNTY HOSPITALS Ch. 155

of expense whatsoever shall have been audited by the secretary and treasurer and approved by a ma­jority of the members of the board of trustees in regular session. When so approved by a majority of said members, upon vouchers issued by the secretary and treasurer, warrant may be drawn for same and when countersigned by the chairman of said board of trustees or an individual designated by s. 155.07, shall be authenticated. Provided, it shall be unlaw­ful to pay any money out of said hospital fund until the provisions of this section have been complied with.

(2) For the purpose of providing for the direct deposit of funds under the circumstances herein specified, the board of trustees is authorized to estab­lish the form or forms of warrants, which are to be issued and countersigned as provided in this chapter, for payment or disbursement of moneys out of the hospital depository, and to change the form thereof from time to time as the board of trustees deems appropriate. If authorized in writing by the payee, county hospital warrants may provide for the direct deposit of funds to the account of the payee in any financial institution which is designated in writing by the payee and which has lawful authority to ac­cept such deposits. The written authorization of the payee shall be filed with the board of trustees. Direct deposit of funds may be by any electronic or other medium approved by the board of trustees for such purpose.

History.-s. 8, ch. 20905, 1941; s. 1, ch. 76·21; s. 7, ch. 78·406.

155.12 County hospitals; general powers of trustees; duties; tax levies; etc.-The board of hos­pital trustees shall have power to appoint a suitable superintendent or matron, or both, and necessary assistants, and fix their compensation and shall also have power to remove such appointees and shall in general carry out the spirit and intent of this law in establishing and maintaining a county hospital. The board of hospital trustees shall hold meetings at least once each month and keep a complete record of all its transactions. Three members of said board shall be required to constitute a quorum for the transaction of business and two or more of said trus­tees shall visit and examine said hospital twice each month. The board shall, prior to July 1 of each year, file with the board of county commissioners of said county a report of their proceedings with reference to such hospital and a statement of all receipts and expenditures made during the year and shall certify to the said board of county commissioners the amount necessary for the improvement and mainte­nance of such public hospital, so established, during the ensuing year, and the said board of county com­missioners shall, at its annual meeting for the pur­pose of determining the amount to be raised for all county purposes, levy a sufficient tax upon all the assessed value of the taxable property in the county as will produce the sum required by the said board of trustees' report, but said hospital levy, together with the levy necessary to liquidate the bonds afore­said, shall not exceed 10 mills on the assessed valua­tion. No trustee shall have a personal, pecuniary interest, either directly or indirectly, in the pur-

chase of any supplies for said hospital, unless the same are purchased by competitive bidding.

History.-s. 9, ch. 20905, 1941; s. 1, ch. 61·321; s. 2, ch. 76·21. cf.-s. 200.071 Limitation of millage; counties.

155.13 County hospitals; vacancies in trus­tees.-Vacancies in the board oftrustees occasioned by resignations, removal, or otherwise, shall be re­ported to the Governor of the state, who shall fill such vacancies in a like manner as the original ap­pointments; appointees shall hold office for the re­mainder of the term in which the vacancy occurred.

History.-s. 10, ch. 20905, 1941.

155.14 County hospitals; bonds; maturities; interest; etc.-Whenever any county in this state shall have provided for the appointment of hospital trustees and has voted a tax for hospital purposes, as authorized by law, the said county shall issue bonds in anticipation of the collection of such tax in such sum and amounts as the board of hospital trustees shall certify to the board of county commissioners of said county to be necessary for the purpose contem­plated by such tax, but such funds in the aggregate shall not exceed the amount which might be realized by said tax based on the amount which may be yield­ed on the property valuation of the year in which the tax is voted, and such bonds shall mature in not to exceed 30 years from date and shall be in sums of not less than $100, nor more than $1,000, drawing inter­est at a rate not exceeding 7~ percent per annum, payable annually or semiannually; said bonds shall be payable at the pleasure of the county after 5 years and each of said bonds shall provide that it is subject to this condition and shall not be sold for less than provided by law for other county bonds and shall be substantially in the form provided for county bonds, but subject to changes that will conform them to the provisions of this law, and be numbered consecutive­ly and redeemable in the order of their issue.

History.-s. 11, ch. 20905, 1941; s. 2, ch. 26513, 1951; s. 8, ch. 73·302.

155.15 County hospitals; procuring lands for hospitaL-If the board of hospital trustees and the owners of any property desired by them for hospital purposes, cannot agree as to the price to be paid therefor, they shall report the facts to the board of county commissioners and condemnation proceed­ings shall be instituted by the said board of county commissioners and prosecuted in the name of the county by the attorney for the county commissioners of such county.

History.-s. 12, ch. 20905, 1941.

155.16 County hospitals; residents; nonresi­dents; fees; contagious diseases; etc.-Every hos­pital established under this law shall be for the bene­fit ofthe inhabitants of such county and of any per­son falling sick or being injured or maimed within its limits, but the board of hospital trustees may extend the privileges and use of such hospital to persons residing outside of such county upon terms and con­ditions as such board of trustees may from time to time, by its rules and regulations, prescribe. Every such inhabitant or person who is not a pauper shall pay to such board or such officer as it shall designate, a reasonable compensation for occupancy, nursing,

681

Ch. 155 COUNTY HOSPITALS F.S.1979

care, medicine, and attendance, according to the rules and regulations prescribed by the said board. Such hospital always shall be subject to such rules and regulations as said board may adopt in order to render the use of said hospital of the greatest benefit to the greatest number; and said board may exclude from treatment and care any indigent or pay case having a communicable or contagious disease where such disease may be a detriment to the best interest of such hospital and a source of contagion or infec­tion to the patient in its care, and all inhabitants and persons who shall willfully violate any rules and regulations of such hospital.

History.-s. 13, ch. 20905, 1941.

155.17 County hospitals; rules for physi­cians, nurses, etc.-When such hospital is estab­lished, the physician, nurses, attendants, the person sick therein and all persons approaching or coming within the limits of same, and all furniture and oth­er articles used or brought there shall be subject to such rules and regulations as said board of trustees may prescribe.

History.-s. 14, ch. 20905, 1941.

155.18 County hospitals; discrimination against doctors; etc.-The board of trustees of any hospital organized under this chapter is authorized to promulgate rules and regulations governing the granting and revoking of privileges to treat patients in the hospital. Such rules shall provide that only those persons licensed to practice medicine and sur­gery, i.e., medical doctors and osteopathic physi­cians, may be granted privileges to treat patients in the hospital. Such doctors and physicians may retain their privileges so long as they comply with the rules and regulations of the board of trustees.

History.-s. "15, ch. 20905, 1941; s. 1, ch. 61-378.

155.19 County hospitals; training school for nurses.-The board of trustees may establish and maintain in connection with such hospital and as part thereof, a training school for nurses, and upon completion of the prescribed course of training shall give to such nurses who satisfactorily complete the said course, a diploma.

History.-s. 16, ch. 20905, 1941.

155.20 County hospitals; charity patients; hospital charges.-The board of hospital trustees shall have power to determine whether or not pa­tients presented to such public hospital for treat­ment are subjects of charity, and shall fix the charges for occupancy, nursing, care, medicine and attendance, other than medical or surgical attend­ance, of those persons able to pay for same, as the board of trustees may deem just and proper, there­ceipts therefor to be paid by him to the hospital fund.

History.-s. 17, ch. 20905, 1941.

155.21 County hospitals; donations; etc.­Any person or persons, firm, organization, corpora­tion or society, public or private, desiring to make donations of money, personal property or real estate for the benefit of such hospital shall have the right to vest title of the money, personal property or real estate so donated in said county, to be controlled

when accepted by the board of hospital trustees of said hospital, according to the terms of the deed, gift, devise or bequest of such property.

History.-s. 18, ch. 20905, 1941.

155.22 County hospitals; purposes are public. -The purpose for which any county hospital estab­lished under the provisions of this law shall be used are hereby declared public purposes. Such purposes shall include the operation and maintenance of am­bulance service in any county where the board of county commissioners so authorizes.

History.-s. 19, ch. 20905, 1941; s. 1, ch. 67-373.

155.23 County hospitals; federal loans, aid, etc.-The board of county commissioners of any county desiring to establish and maintain a hospital under the provisions of this law shall be and are hereby authorized and empowered to negotiate and make a~reements with any federal agency lending or grantmg money for the purpose of erecting public hospitals and may match any funds so loaned or granted by such federal agency for the purpose of establishing or constructing a public hospital under the provisions of this law.

History.-s. 20, ch. 20905, 1941.

155.24 County hospitals; additional funds.­In addition to the tax which may be levied under the provisions of this law, the board of county commis­sioners may allocate to the hospital funds any other public moneys in possession of said board of county commissioners, not otherwise appropriated or allo­cated to other uses.

History.-s. 21 , ch. 20905, 1941.

155.25 Levy authorized for county hospital purposes.-

(!) Whenever any board of county commission­ers shall deem it necessary to erect, equip or repair a public hospital in the county or erect and equip an addition or additions to any public hospital, they shall give notice for 30 days in some newspaper pub­lished in said county, or in some newspaper pub­lished in the judicial circuit, if there be none pub­lished in the county, that at the next regular meet­ing of the board after the publication of said notice, such question or questions will be acted upon by said board. If, at said meeting, a majority of said board shall determine that it is necessary to erect, equip, repair or build addition or additions to such public hospital, they may levy a hospital building, repair and equipment tax not exceeding 5 mills per annum, for not more than 15 consecutive years. The tax shall be assessed and collected at the same time and in the same manner as other state and county taxes are levied and collected.

(2) The tax, levied, assessed and collected as aforesaid, shall be accumulated from year to year until utilized and expended for the public hospital purposes aforesaid.

(3) The provisions hereof shall be cumulative and in addition to all the other provisions of this chapter, and nothing herein contained shall be held to repeal, alter or amend any of the provisions of this chapter nor repeal, alter or amend any of the provi­sions of any special or local law.

682

F.S.1979 COUNTY HOSPITALS Ch. 155

(4) The provisions of this section shall not apply

to Okaloosa County nor shall the provisions hereof

confer the authority hereinabove provided for upon or to the county commissioners of said county.

History.-ss. 14, ch. 57-393.

683

Ch. 157 DRAINAGE BY COUNTIES F.S.1979

CHAPTER 157

DRAINAGE BY COUNTIES

157.01 Public ditch, drain or canal. 157.02 Action on petition by county commission·

ers. 157.03 Commissioners to appoint committee; re­

port of plans and estimate; letting con­tract; right-of-way for drains.

157.04 Bond required before letting contract. 157.05 Work done under supervision of committee;

when completed, report to commission-ers; payments.

157.06 Committee to view land before letting con­tract; assessment; hearing complaints; collection of tax, etc.

157.07 Where cost of construction exceeds estimat­ed cost commissioners to assess differ­ence.

157.08 Assessments; validation. 157.09 Compensation of committee. 157.10 Application to lateral ditches. 157.11 Lateral drains may be established; commis­

sioners may enlarge district or widen any drain; cost; proviso.

157.12 Duty of bond trustees to borrow money to pay interest on bonds until collection of first assessment; may issue notes; notes and bonds lien against lands; committee may issue notes.

157.13 Use of surplus of bond proceeds. 157.14 Owner may pay whole tax in one sum; coun­

ty commissioners may make new assess­ments where former assessments found illegal; time in which assessments may be questioned in collateral proceedings.

157.15 County commissioners may issue bonds to pay scrip; decrease of assessment.

157.16 Enlarging drains and assessing cost. 157.17 Assessment to maintain drains. 157.18 Awarding contract for enlarging or repair­

ing drains. 157.19 Where actual cost exceeds estimated cost;

additional work; assessment for same. 157.20 Appointment of committee to view work

and make assessments; report to commis­sioners; form of assessment.

157.21 Enlargement of drains; appointment of committee; report to commissioners; let­ting contract; contractor's bond; pay­ments; assessment.

157.22 Repairing drains; appointment of commit­tee; report to commissioners; contract; bond; assessment, etc.

157.23 Objections to report of committee fixing as­sessments; notice; hearing; equalization; assessments; collection by tax collector.

157.24 Commissioners may issue interest-bearing scrip against land to borrow money or pay for work; lien on land assessed.

157.25 Compensation of committee; irregular as­sessment corrected.

157.26 Repair and maintenance of drains under su­pervision of county commissioners.

157.27 Proceedings for making repair to drains, etc.

157.28 Awarding contracts for repair, etc. 157.29 Levy of tax for maintaining and repairing

drains; assessment and collection of tax; sale of land for unpaid taxes.

157.30 Reassessment oflands where attempt toes­tablish ditch or canal irregular.

157.31 Notice of reassessment for drainage. 157.32 Reviewing complaints and making assess­

ment against property benefited. 157.33 Issuance of scrip to take up former scrip or

bonds. 157.34 Reassessments to have effect as original as­

sessment. 157.35 Assessments conclusive after lapse of 6

months. 157.36 Adjustment of drainage tax liens.

157.01 Public ditch, drain or canaL-Whenev­er it shall be deemed necessary or expedient, for sanitary or agricultural purposes or conducive to the public health, convenience or welfare, or public utili­ty, or for the benefit of any lands that are low, wet, submerged or liable to become submerged, to estab­lish a public ditch, drain or canal in any of the coun­ties of this state by a majority of those owning the lands through which such proposed ditch, drain or canal shall run or by those owning the greater part of the lands through which such proposed ditch, drain or canal shall run, and by a majority of those owning lands or by those owning the greater part of the lands contiguous thereto, that are benefited by such ditch, drain or canal, the majority of those own­ing such lands or those owning the greater part of such lands as aforesaid, shall present a petition to the county commissioners of the county in which such ditch, drain or canal is to be located, with a plat of said lands, showing the general course of such proposed ditch, drain or canal, setting forth the cause for the same, its length and the lands to be benefited thereby. Upon filing such petition and plat with the county commissioners, they shall lay the same over until the next regular meeting and give notice by publication for 3 weeks, in some newspaper published in the county, of the date when they will consider said petition, citing all persons who may be interested to appear and present any reason why such petition should not be granted.

History.-s. 1, ch. 5035, 1901; GS 950; s. 1, ch. 6457, 1913; s. 1, ch. 6958, 1915; s. 1, ch. 7307, 1917; RGS 1734; CGL 2785. cf.-s. 298.66 Penalty for obstructing public drains.

157.02 Action on petition by county commis­sioners.-Should the county commissioners, when the petition mentioned ins. 157.01, has been consid­ered, deem it improper to grant the same it shall then be denied, but should they deem it proper to grant the same, they shall then enter an order of record that the said petition be granted.

History.-s. 2, ch. 5035, 1901, GS 951; s. 2, ch. 6457, 1913; RGS 1735; CGL 2786.

684

F.S.1979 DRAINAGE BY COUNTIES Ch. 157

157.03 Commissioners to appoint committee; report of plans and estimate; letting contract; right-of-way for drains.-When the county com­missioners shall order that such ditch, drain or ca­nal, shall be established, they shall appoint a com­mittee of three disinterested freeholders who are cit­izens of the county, who may employ a surveyor, and shall cause an accurate survey to be made of the proposed ditch, drain or canal, and shall establish the commencement, route, and terminus of said ditch, drain or canal, the width, length, and depth thereof, and shall make and present to the county commissioners, at their next regular meeting, or at a meeting as soon thereafter as practicable, plans, specifications and profiles for said construction, to­gether with an estimate of the approximate cost of said ditch, drain or canal, and the annual cost of its maintenance, and upon this report of the said com­mittee, the board of county commissioners shall ad­vertise once a week for 3 weeks, in a newspaper published in the said county, for bids for the con­struction of said ditch, drain or canal, and the same shall be given to the lowest responsible bidder; pro­vided, the board of county commissioners may, if they deem it for the best interest of all concerned, reject all bids; and in case said bids are rejected they may advertise for further bids. Whenever the survey for any proposed ditch, drain or canal, shall run through the lands of anyone who shall object there­to, the board of county commissioners may proceed to condemn the right-of-way for such ditch, drain or canal, and pay therefor out of the funds arising from the levy and assessments hereinafter provided for.

History.-s. 3, ch. 5035, 1901; GS 952; s. 3, ch. 6457, 1913; RGS 1736; CGL 2787.

157.04 Bond required before letting contract. -Before letting contract for the construction of any such ditch, drain or canal, the board of county com­missioners shall require the contractor to give a good and sufficient bond payable to the Governor of the state, for the construction and completion of said work according to plans and specifications and the terms and provisions of the contract.

History.-s. 4, ch. 5035, 1901; GS 953; s. 4, ch. 6457, 1913; RGS 1737; CGL 2788.

157.05 Work done under supervision of com­mittee; when completed, report to commission­ers; payments.-The work shall be done under the supervision of the committee as hereinbefore provid­ed, and when completed, the committee shall report the same to the board of county commissioners, who shall also inspect such work together with the engi­neer in charge, and approve the same before final payment is made to the contractor, and the report of said work, together with the approval of the work by the board of county commissioners and the said engi­neer, shall be entered upon the minutes of the board of county commissioners; provided, that the board of county commissioners may, during the progress of the said work, if they think proper to do so, make payment in installments on said work of not to ex­ceed 80 percent of the value of the work so done, to

be certified by the engineer in charge, reporting to the board of county commissioners. Such engineer shall be appointed by said committee subject to the approval of the board of county commissioners.

History.-s. 5, ch. 5035, 1901; GS 954; s. 5, ch. 6457, 1913; RGS 1738; CGL 2789.

157.06 Committee to view land before letting contract; assessment; hearing complaints; col­lection oftax, etc.-If said ditch, drain or canal has been ordered, but before letting the contract there­for, the committee hereinbefore provided for shall view the lands to be benefited by such ditch, drain or canal, as shown by the petition and plat presented to the board of county commissioners, and, after the cost of construction is ascertained, they shall assess each parcel according and in proportion, as it shall be benefited by said ditch, drain or canal, for all expenses that may be incurred in the construction of said ditch, drain or canal, including the interest charges, the expenses of the committee and engi­neer, and for any condemnation proceedings, togeth­er with their estimate of the amount per acre for annual maintenance of said ditch, drain or canal, and shall file a report of the same with the board of county commissioners, who shall at once give notice by publishing in a newspaper published in said coun­ty, once a week for 2 weeks prior to the next regular meeting, that they will, at their next regular meet­ing, hear complaints from the owners or agents of any lands affected, against the assessment so made, and the board of county commissioners may equalize the assessment so made, but cannot raise or lower the total amount of the assessment so made by the said committee. After hearing such complaints, if any, or equalizing the assessment, if they shall see fit to do so, they shall then turn over to the property appraiser the said assessment, with instructions to enter the same as the levy upon the lands in the regular tax assessment book; said assessment may be levied for 1 year or in yearly assessments for a period not to exceed 30 years, according as it may be deemed advisable, the manner in which the same is to be levied to be determined by the board of county commissioners and entered of record, when the same is turned over to the property appraiser. The same shall be collected by the tax collector in like manner as other taxes are collected, and made a special fund for the payment of the indebtedness incurred in the construction and annual maintenance of said ditch, drain or canal.

History.-s. 6, ch. 5035, 1901; GS 955; s. 6, ch. 6457, 1913; RGS 1739; CGL 2790; s. 1, ch. 77·102.

157.07 Where cost of construction exceeds es­timated cost commissioners to assess difference. -Whenever any public drain or auxiliary thereto has been constructed, is now in process of construc­tion, or may hereafter be constructed by the board of county commissioners, under the provisions of any law now in force, or that may hereafter be enacted, and the actual cost of the construction of said drain or auxiliary shall have exceeded or may exceed the estimated cost thereof, said board of county commis-

685

Ch. 157 DRAINAGE BY COUNTIES F.S.1979

sioners shall assess against the lands benefited or to be benefited by said drain or auxiliary thereto, the difference between the estimated cost thereof and the actual cost thereof.

History.-s. 1, ch. 5378, 1905; RGS 1740; CGL 2791.

157.08 Assessments; validation.-After the special drainage district has been constituted and the assessments have been made and levied by the board of county commissioners, and before awarding the contract for the construction of any such ditch, drain or canal, the board of county commissioners shall, as soon as practicable, issue and sell district drainage bonds for the total amount of such assess­ments, less the interest charges. Said bonds shall bear interest not to exceed 7~ percent per annum, payable semiannually, with interest coupons at­tached thereto, and shall be issued in denominations of not exceeding $1,000. The board of county commis­sioners shall, in issuing and selling said bonds, and in disbursing the proceeds thereof, act in substantial conformity with the provisions of these statutes ap­plicable to the issue and sale of bonds for the purpose of constructing hard-surfaced highways or public buildings; with the exception, that the assessments for the payment of interest and to provide a sinking fund for the payment of the bonds shall be assessed and collected only upon the taxable property within the boundary of such special drainage district; and the bond trustees shall reside in the county, but not necessarily in the drainage district, but in no case shall district bonds be issued or sold against any drainage district for a greater amount than the as­sessment imposed upon lands in such district, and the bonds shall be issued in such maturities as will enable them to be paid in installments from time to time as fast as substantial amounts shall accumulate from the collection of the assessments. The validity of all bonds issued under this chapter may be deter­mined and established in the manner provided by law for the validation of bonds issued by cities and municipalities.

History.-s. 7, ch. 5035, 1901; GS 956; s. 7, ch. 6457, 1913; s. 2, ch. 6958, 1915; RGS 1741; CGL 2792; s. 9, ch. 73-302. cf.-Ch. 75 Validation of municipal bonds.

Ch. 130 County bonds.

157.09 Compensation of committee.-The committee appointed by the county commissioners for the purpose aforesaid shall receive compensation for their services as may be agreed upon; provided, they shall not be paid more than $5 per day for time actually spent by each man.

History.-s. 9, ch. 5035, 1901; GS 958; s. 8, ch. 6457, 1913; RGS 1743; CGL 2794 .

157.10 Application to lateral ditches.-The provisions of this chapter with reference to locating, surveying, cutting and maintaining the same, and every other provision of said chapter with reference to such public ditch, drain or canal, are made appli­cable to all lateral ditches and drains that may be deemed necessary or expedient for the drainage and benefit of lands lying in the vicinity of such public ditch, drain or canal, that may be reached, drained or benefited by lateral ditches or drains.

History.-s. 12, ch. 5201 , 1903; GS 959; RGS 1744; CGL 2795.

157.11 Lateral drains may be established; commissioners may enlarge district or widen any drain; cost; proviso.-Lateral drains may be established in like manner as main ditches, drains or canals. Such lateral ditches, drains or canals may be made a part of the original plat and survey of such main ditch, drain or canal, and may be in the origi­nal petition therefor, or may be established in like manner under the provisions of this chapter, at any time after the completion of such main ditch, drain or canal. Any drain or lateral that has been con­structed, or which may hereafter be constructed, un­der the provisions of this or any prior act, shall be and remain under the exclusive control and direc­tion of the board of county commissioners, and no drain shall be connected therewith or cut into the same without the consent of the board of county commissioners first obtained in writing, stating how such connection shall be made, and the connection shall then be made in such manner as the said board shall direct; and any person failing to observe the direction of the board in making such connection shall be guilty of a misdemeanor of the second de­gree, punishable as provided in s. 775.082 or s. 775.083. The said board of county commissioners may enlarge or extend any drain and drainage dis­trict, or deepen or widen any drain, and assess the property benefited and raise the money and pay the cost thereof under the same conditions and proce­dure provided herein for the establishment and con­struction of drains; provided, that a drain may be deepened and widened upon the petition of one­fourth of the owners of property, or the owners of one-fourth of the property originally assessed for the construction thereof. Any mistake, oversight, mis­calculation or error in any proceedings had under this chapter may be corrected, and shall thereafter be deemed and held as valid and binding as if the same had not occurred.

History.-s. 13, ch. 5035, 1901; GS 960; s. 9, ch . 6457, 1913; s. 3, ch. 6958, 1915; RGS 1745; CGL 2796; s. 81, ch. 71-136.

157.12 Duty of bond trustees to borrow mon· ey to pay interest on bonds until collection of first assessment; may issue notes; notes and bonds lien against lands; committee may issue notes.-Whenever any drainage district has been constituted and district drainage bonds issued by the board of county commissioners, as provided in this chapter, the bond trustees shall borrow such money as shall be found necessary to pay the semiannual installments of interest on said bonds until the col­lection of the first assessment levied against the lands in the drainage district, and said trustees may issue their negotiable notes, bearing interest at not more than 8 percent per annum, as evidence of and security for such loan as they may procure, and should there not be money to the credit of said drain­age fund to pay any future installment of interest at the maturity thereof, the same shall be provided by the trustees in like manner; and the owner and hold­er of any such note or notes shall have by virtue thereof a lien against the lands in the drainage dis­trict, and the moneys raised by the assessments lev­ied thereon for the payment of said note or notes. Bonds issued under this chapter shall be a lien upon the lands embraced within such drainage district,

686

F.S.1979 DRAINAGE BY COUNTIES Ch. 157

and such lien shall be prior in dignity to all others except taxes. Should the committee, provided for in s. 157.03, find it necessary to raise money to meet any expense incurred in the discharge of its duties before funds shall be provided by issue and sale of bonds, as herein stipulated, then and in that event the said committee, with the approval of the board of county commissioners, may issue negotiable promissory notes for. such amount as shall be found necessary, said notes to bear interest not to exceed 8 percent per annum, and the owner and holder thereof shall have a like lien and be afforded like protection as herein provided for the holder of notes issued by the bond trustees.

History.-s. 10, ch. 6457, 1913; s. 4, ch. 6958, 1915; RGS 1746; CGL 2797.

157.13 Use of surplus of bond proceeds.­Should there remain any of the proceeds of the sale of said special drainage district bonds after paying for the construction of the improvements for which said bonds were issued, such surplus shall be held by the bond trustees and paid out by them, upon the order of the board of county commissioners, for the repair and maintenance ofthe public ditches, drains or canals within said special drainage district.

History.-s. 11, ch. 6457, 1913; RGS 1747; CGL 2798.

157.14 Owner may pay whole tax in one sum; county commissioners may make new assess­ments where former assessments found illegal; time in which assessments may be questioned in collateral proceedings.-Any person owning lands assessed for the purposes hereinbefore specified, may, at any time, pay in full the total amount as­sessed against his property and obtain a release therefrom from the board of county commissioners, and the same shall be entered upon the minutes of the board of county commissioners, and the board of county commissioners shall instruct the property ap­praiser to thereafter omit the said property, so re­leased, from further assessment for said purpose. In the event any of the assessments herein provided for shall be found to be irregular or illegal, the said board of county commissioners may make new and other assessments in accordance with the provisions of this chapter, correcting such irregularities, until the owners of the land assessed shall have paid the amount for which they are properly assessable; and in no case shall the validity of any assessment be questioned in any direct or collateral proceedings brought more than 3 months after the report of the committee assessing the lands benefited shall be filed with the board of county commissioners and equalized and approved by said board.

History.-s. 12, ch. 6457, 1913; s. 5, ch. 6958, 1915; RGS 1748; CGL 2799; s. 1, ch. 77·102.

157.15 County commissioners may issue bonds to pay scrip; decrease of assessment.-The county commissioners may, with the consent of the holder of any scrip issued under the provisions of any existing law to raise money to pay for the construc­tion or the deepening or widening of any ditch, drain or canal, issue bonds for a corresponding or longer

period, and sell the same and pay the scrip, or ex­change with the holder thereof, cancel the original scrip and lower the annual assessment in accordance with the longer time the bonds may run.

History.-s. 13, ch. 6457, 1913; s. 6, ch. 6958, 1915; RGS 1749; CGL 2800; s. 43, ch. 77-104.

157.16 Enlarging drains and assessing cost.­Whenever, heretofore or hereafter, a public drain or auxiliary thereto shall have been constructed by the board of county commissioners of any county under any law now in force, or that hereafter may be in force, the said board of county commissioners upon a petition of one-fourth ofthe owners ofthe property originally assessed for said drain, shall enlarge or deepen said drain or auxiliaries thereto and assess the cost of such enlargement or deepening of said drain or auxiliaries thereto against the lands bene­fited thereby.

History.-s. 2, ch. 5378, 1905; RGS 1753; CGL 2804.

157.17 Assessment to maintain drains.­Whenever any public drain or auxiliaries thereto shall have been constructed by the board of county commissioners of any county under any law now in force, or that may hereafter be in force, the said board of county commissioners may assess against the lands benefited by said drain or auxiliaries thereto the necessary cost of the maintenance and repair of said drain or auxiliaries thereto.

History.-s. 3, ch. 5378, 1905; RGS 1754; CGL 2805.

157.18 Awarding contract for enlarging or repairing drains.-Whenever it shall become nec­essary in the opinion of the county commissioners to enlarge or deepen any drain or auxiliary thereto, heretofore constructed, or that may hereafter be constructed, or to contract for the maintenance or repair thereof, the contract for doing such work shall be let to the lowest bidder therefor, after public ad­vertisement for such time as the county commission­ers shall provide by resolution.

History.-s. 4, ch. 5378, 1905; RGS 1755; CGL 2806.

157.19 Where actual cost exceeds estimated cost; additional work; assessment for same.­Whenever during the construction of any drain or auxiliary thereto, and before the completion thereof, it shall be made evident to the board of county com­missioners that the actual cost thereof will exceed the estimated cost thereof, or that further or addi­tional work is necessary to complete said drain or auxiliary not covered or provided for in the original contract of construction, the said board of county commissioners may enter into any or all additional contracts for the additional work necessary to com­plete said drain or auxiliary thereto without adver­tising for bids thereon, and they shall make the best contract they can for the interests of the property owners, whose lands have been and will further be assessed to construct said ditch or auxiliary, and said board of county commissioners, shall make all fur­ther and necessary assessments against the lands already assessed to pay all necessary costs and

687

Ch. 157 DRAINAGE BY COUNTIES F.S.1979

charges for the full completion of said drain or auxil­iary.

History.-s. 5, ch. 5378, 1905; RGS 1756; CGL 2807.

157.20 Appointment of committee to view work and make assessments; report to commis­sioners; form of assessment.-Whenever it shall become necessary to raise money for any of the pur­poses set out in ss. 157.07 and 157.19 the board of county commissioners shall appoint three compe­tent and disinterested persons who are citizens of the county who shall view the work and all lands bene­fited by said drain or auxiliaries thereto, both those lands lying immediately along said drain or auxilia­ries and those adjacent thereto, and shall assess against each parcel ofland according and in propor­tion as each shall be benefited, its proportionate share of such additional cost of such drain or auxilia­ry above the estimated cost thereof, which said as­sessment shall be reported to the county commis­sioners at a regular meeting of said board, which said assessment shall show each parcel of land so assessed, the amount of said assessment and the names of the several owners, unless the said owners by diligent inquiry cannot be ascertained, when the names shall be given as unknown.

History.-s. 6, ch. 5378, 1905; RGS 1757; CGL 2808.

157.21 Enlargement of drains; appointment of committee; report to commissioners; letting contract; contractor's bond; payments; assess­ment.-Whenever the board of county commission­ers shall have determined upon a petition, filed as provided ins. 157.16, to enlarge or deepen any drain, they shall appoint a committee of the three compe­tent and disinterested persons who are citizens of the county, who shall cause an accurate survey to be made of the proposed work, and shall establish the depth or width to which the same shall be deepened and shall make and present to the county commis­sioners at their next regular meeting, an estimate of the cost of said work, and upon the report of said committee to them, said county commissioners shall advertise not less than 2 weeks in a newspaper pub­lished in the county, for bids on said work, to be given to the lowest responsible bidder, with the privi­lege of rejecting all bids that may be offered, should the same be considered unreasonable; and in case the said bids are rejected, they may again advertise for further bids. The said board of county commis­sioners shall require of the person whose bid is ac­cepted for said work a good and sufficient bond for the faithful performance of said contract, which said work shall be done under the supervision of the com­mittee appointed as aforesaid. When the work shall be completed the committee shall certify the same to the board of county commissioners who shall also inspect such work before final payment is made to the contractor, and such confirmation with the re­port of the committee that the work has been done according to contract, shall be made a matter of record; provided, that nothing in this chapter shall prevent the county commissioners from making pay­ments in installments during the progress of the work, if deemed expedient. Before letting such con­tract, the committee appointed by the commission­ers shall view the lands to be benefited by the en-

largement or deepening of said drain or auxiliary and assess each parcel according and in proportion as each shall be benefited, both those lands lying immediately along such ditch, drain or canal, and those adjacent thereto, for all the expenses that may be incurred in the enlarging or deepening of said drain and keeping the same in repair from year to year, and shall file a report of the same with the board of county commissioners, which said report shall show the several tracts of lands assessed and the names of the owners thereof, and the amounts assessed against each tract; provided, however, that if the owners of any tract cannot be ascertained· by diligent inquiry, said tract shall be assessed as un­known.

History.-s. 7, ch. 5378, 1905; RGS 1758; CGL 2809.

157.22 Repairing drains; appointment of committee; report to commissioners; contract; bond; assessment, etc.-Whenever it shall become known to the board of county commissioners that it is necessary to repair any public drain or auxiliary thereto the said board of county commissioners shall appoint a committee of three competent and disin­terested persons who are citizens of the county who shall ascertain the amount necessary for the repair of said work, and who shall report the same to the board of county commissioners at their next regular meeting, and upon the report of said committee to them they shall advertise not less than 30 days in a newspaper published in the county for bids on said work to be given to the lowest responsible bidder. Before letting the contract for the work, the said county commissioners shall require a sufficient bond from the contractor for the faithful performance of said work; when the work shall be completed the committee shall certify the same to the board of county commissioners who shall also inspect said work before final payment is made to the contractor, and such confirmation with the report of the com­mittee that the work has been done according to contract shall be made a matter of record. Before letting such contract the committee appointed by the commissioners shall view the lands benefited by such drain or auxiliary and shall assess each parcel according and in proportion as each may be benefit­ed, both those lands lying immediately along the drain or auxiliary thereto and those adjacent thereto for all the expenses that may be incurred in the repair of such drain, and shall file a report of the same with the board of county commissioners. Said report shall show each tract and parcel of land as­sessed, the amount of said assessment, and the names of the several owners, unless the owner can­not be ascertained by diligent inquiry, when the same may be assessed as unknown.

History.-s. 8, ch. 5378, 1905; RGS 1759; CGL 2810.

157.23 Objections to report of committee fix­ing assessments; notice; hearing; equalization; assessments; collection by tax collector.-When­ever the report of any committee appointed under the provisions of this chapter, showing the amount of assessment against any lands for work done, or to be done, in accordance with the provisions of this chapter shall have been filed with the board of coun­ty commissioners, they shall ·at once give notice by

688

F.S.1979 DRAINAGE BY COUNTIES Ch. 157

publishing in a newspaper published in said county, for not less than 2 weeks prior to a regular meeting that they will at their next regular meeting hear complaints from the owner or agent of any real es­tate against the assessment so made against said property and the said county commissioners shall have the full power to equalize the assessments so made against said real estate, but cannot raise or lower the entire assessment so made by the commit­tee so appointed by them to make said assessment and said assessment when equalized shall, by the county commissioners when they are satisfied that such assessments are just and proper, be turned over to the property appraiser with instructions to levy such assessment upon such parcels of land as afore­said; provided, that when the assessment shall have been made under s. 157.07, s. 157.17 or s. 157.19, the notice published by the county commissioners shall only be required to contain the name of the drain or auxiliary thereto and the total amount of the assess­ment; and provided further, that when the assess­ment is made under s. 157.16, if no other lands are assessed than those assessed for the original con­struction of the drain or auxiliary thereto, then the notice given by the county commissioners need not contain anything but the name of said drain or auxil­iary and the total amount of said assessment, but if the assessment is made under s. 157.16 and any oth­er lands are assessed than those assessed for the original cost of the drain or auxiliary then the notice given by the county commissioners shall, in addition to the name ofthe drain and the total amount of the assessment give the several additional tracts ofland so assessed, the owners thereof and the amount of assessment against such additional tracts of land. Said assessments may be levied for 1 year or in year­ly assessments for 2, 3, 4, or 6 years, according as it may be deemed advisable and for the best interests of those concerned, and shall be collected by the tax collector in like manner as other taxes are collected, and made a special fund for the cancellation or re­demption of the indebtedness incurred in the con­struction of said drain or auxiliary as aforesaid.

History.-s. 9, ch. 5378, 1905; RGS 1760; CGL 2811; s. 1, ch. 77·102.

157.24 Commissioners may issue interest­bearing scrip against land to borrow money or pay for work; lien on land assessed.-When any assessments under the provision of this chapter have been ordered by the county commissioners they may issue scrip bearing 6 percent interest against the lands assessed, redeemable in 1, 2, 3, 4, or 6 years, as the case may be, upon which they may borrow mon­ey with which to pay for the work aforesaid, or shall have the right to pay said scrip when issued for the cost of the work contracted for, direct to the contrac­tor at its face value, and such scrip shall be a lien upon the lands assessed as aforesaid until such scrip shall be redeemed, and the indebtedness fully satis­fied; provided, that no lien shall lie or be enforced against any tract of land for more than the amount so assessed against said tract.

History.-s. 10, ch. 5378, 1905; RGS 1761; CGL 2812; s. 43, ch. 77·104.

157.25 Compensation of committee; irregular assessment corrected.-The committee appointed by the county commissioners for the purposes afore­said shall receive such compensation for their ser­vices as may be agreed upon. In the event any of the assessments herein provided for shall be declared illegal by any court on account of any irregularities therein, the said board of county commissioners may make new and other assessments in accordance with the provisions of this chapter, correcting said irregu­larities until the owners of the lands assessed shall have paid the amount for which they are properly assessable.

History.-s. 12, ch. 5378, 1905; RGS 1763; CGL 2814.

157.26 Repair and maintenance of drains un­der supervision of county commissioners.-All ditches, drains and canals heretofore or hereafter constructed in any county of the state under the provisions of this chapter, shall for the purpose of maintenance and repair be and remain under the supervision and control of the board of county com­missioners of the county where located.

History.-s. 1, ch. 6190, 1911; RGS 1764; CGL 2815.

157.27 Proceedings for making repair to drains, etc.-When it shall be made to appear to the board of county commissioners of any county that any such ditch, drain or canal within said county is in need of repair, that fact shall be entered upon the minutes of said board and published in at least one issue of a newspaper published in said county in and with the minutes of said board, and unless good cause to the contrary shall be shown by one or more interested owners of land to be taxed for said pur­pose, at the next regular meeting of the board, an order may be entered directing such repairs to be made.

History.-s. 2, ch. 6190, 1911; RGS 1765; CGL 2816.

157.28 Awarding contracts for repair, etc.-If the estimated cost of repairing any such ditch, drain or canal shall not exceed the sum of $100, the board of county commissioners shall have full power to have the same done in such manner as said board may see fit; but if such estimated cost shall exceed $100, then the contract shall be let to the lowest responsible bidder after giving 4 weeks' previous no­tice by advertising once each week in some newspa­per published in the county, or by posting in five conspicuous places in the commissioners' district in which such ditch, drain or canal shall be located, and all work done shall be subject to the approval and acceptance of the board of county commissioners.

History.-s. 3, ch. 6190, 1911; RGS 1766; CGL 2817.

157.29 Levy of tax for maintaining and re­pairing drains; assessment and collection of tax; sale of land for unpaid taxes.-For the purpose of paying the cost of maintaining and repairing any such ditch, drain or canal and auxiliaries thereto, the board of county commissioners of the several counties of the state, wherein any such ditch, drain or canal is, or may be, located shall, when deemed necessary, levy such tax as in the opinion of said board may be deemed necessary for said purpose, which tax shall be levied upon the same lands origi-

689

Ch. 157 DRAINAGE BY COUNTIES F.S.1979

nally assessed for the construction of such drain; and the expense of maintenance shall be borne by said lands in the same relative proportion as the original expense of constructing said drain, and the tax so imposed shall be levied and assessed by the same officers at the same time and in the same manner as other taxes are assessed, and shall be collected by the county tax collector as other taxes are collected, and in case of default in the payment of such tax the same penalty shall obtain and the lands may be sold and conveyed in the same way that lands are sold and conveyed for the collection of other taxes, and the money so collected shall be preserved in a sepa­rate fund for the maintenance of the ditch, drain or canal for the original construction of which such lands were assessed.

History.-s. 4, ch. 6190, 1911; RGS 1767; CGL 2818. cf.-s. 298.66 Penalty for obstructing drainage canals, etc.

157.30 Reassessment of lands where attempt to establish ditch or canal irregular.-In all cases where there has been an attempt to establish a pub­lic ditch, drain or canal, in any ofthe counties of this state, and the county commissioners in pursuance of such attempt have proceeded to establish a public ditch, drain or canal, but there has been a failure to comply with the law, either in respect to the proceed­ings prior to the action by the county commissioners, or in respect to the subsequent proceedings, the lands specially benefited by such public ditch, drain or canal shall be subject to reassessment on account of such special benefit at any time within 3 years from the final completion of the work, or ifbonds or scrip shall become due, in case a former assessment shall be discovered to be defective, irregular, or not in compliance with law, or be declared by the judg­ment of a court to be void.

History.-s. 1, ch. 6963, 1915; RGS 1768; s. 1, ch. 9130, 1923; CGL 2819; s. 7, ch. 22858, 1945.

157.31 Notice ofreassessmentfor drainage.­In all such cases, the board of county commissioners, upon the matter being brought to its attention, shall cause to be published in some newspaper published in the county, once a week for a period of 3 weeks, a notice substantially in the following form:

"Notice of Reassessment for Drainage. Whereas, it has been discovered that the proceed­

ings to establish a public ditch, drain or canal, com­mencing at ..... and running in a general ..... course through the following lands, viz ...... were defective, and the assessment in pursuance thereof made was invalid, or irregular and not made in compliance with law, now, therefore, notice is hereby given to all persons interested, that the County Commissioners of .. ... County, will be in session at ..... o'clock in the forenoon, at the courthouse, on the ..... day of ..... , 19 ..... , for the purpose of providing for a reassess­ment of the property specially benefited by the said public ditch, drain or canal, and all persons interest­ed are hereby notified to attend on the said day, and present objections, if any, to the said reassessment, and are further notified that the board will give a hearing to all parties interested, and act on the said

matter at the said meeting." History.-s. 2, ch. 6963, 1915; RGS !769; s. 2, ch. 9130, 1923; CGL 2820.

157.32 Reviewing complaints and making as­sessment against property benefited.-If it shall appear to the board, after hearing all parties inter­ested, that the public ditch, drain or canal has been an actual special benefit to the property served by it, and that the proceedings for the establishment thereof have been carried out bona fide and without fraud, the board shall proceed to assess each parcel of land benefited thereby for the expenses incurred in the construction of such ditch, drain or canal in proportion to the benefit accruing, and thereupon the board shall give notice once a week for 2 weeks, by publishing the same in some newspaper pub­lished in the county, that at its next regular meeting it will be in session for the purpose of reviewing the assessments and hearing complaints against the same. If no such complaints are filed in writing on the first day of the meeting of the board the assess­ments shall stand confirmed. If complaints are filed, the board shall hear and determine the same, and, if allowed, may modify or change the former assess­ments so as to equitably spread the burden on the property specially benefited.

History.-s. 3, ch. 6963, 1915; RGS 1770; CGL 2821.

157.33 Issuance of scrip to take up former scrip or bonds.-After the provisions of ss. 157.30-157.32 have been complied with, the board may issue scrip or bonds, as the case may be, to be delivered to the holder or holders of scrip or bonds issued pursu­ant to former proceedings upon surrender of the for­mer scrip or bonds.

History.-s. 4, ch. 6963, 1915; RGS 1771; CGL .2822; s. 43, ch. 77·104 .

157.34 Reassessments to have effect as origi­nal assessment.-All assessments made pursuant to the provisions ofss. 157.30-157.32, shall have the same force and effect as is provided in cases of origi­nal assessments, and payment thereof shall be pro­vided for and be enforced in the same manner.

History.-s. 5, ch. 6963, 1915; RGS 1772; CGL 2823.

157.35 Assessments conclusive after lapse of 6 months.-After the lapse of 6 months from the final action of the board at its meeting to hear com­plaints against assessments, all assessments made shall be conclusive in any proceedings at law or in equity, in any court in this state.

History.-s. 6, ch. 6963, 1915; RGS 1773; CGL 2824.

157.36 Adjustment of drainage tax liens.­Boards of county commissioners may act as a board of adjustment in settling and adjusting all delin­quent drainage tax liens levied for interest and sink­ing fund purposes in drainage districts created and established in their respective counties of Florida, under authority of this chapter, wherein the total delinquent drainage tax liens in such respective drainage districts are in excess of their respective total debt requirements.

History.-s. I, ch. 17458, 1935; CGL 1936 Supp. 2824(1).

690

F.S.1979 BOND FINANCING Ch. 159

CHAPTER 159

BOND FINANCING

PART I REVENUE BOND ACT OF 1953 (ss. 159.01-159.19)

PART II FLORIDA INDUSTRIAL DEVELOPMENT FINANCING ACT (ss. 159.25-159.43)

PART III INDUSTRIAL DEVELOPMENT AUTHORITIES (ss. 159.44-159.53)

PART IV HOUSING FINANCE AUTHORITIES (ss. 159.601-159.623)

PART V RESEARCH AND DEVELOPMENT AUTHORITIES (ss. 159.701-159.7095)

PART I

REVENUE BOND ACT OF 1953

159.01 Short title. 159.02 Definitions. 159.03 General powers. 159.04 Neither credit nor taxing power pledged. 159.05 Purchase of projects. 159.06 Improvement of projects purchased. 159.07 Construction of projects. 159.08 Revenue bonds. 159.09 Trust agreement. 159.10 Revenues of projects. 159.11 Trust funds. 159.12 Remedies of bondholders and trustee. 159.13 Revenue refunding bonds. 159.14 Alternative method. 159.15 Tax exemption and eligibility as invest-

ments. 159.16 Additional pledge of faith and credit. 159.17 Lien of service charges. 159.18 Collection of charges. 159.19 Additional pledge of excise taxes.

159.01 Short title.-This part I of chapter 159 shall be known, and may be cited, as the "Revenue Bond Act of 1953."

History.-s. 1, ch. 28045, 1953.

159.02 Definitions.-As used in this part, the following words and terms shall have the following meanings, unless some other meaning is plainly in­tended:

(1) The word "municipality" shall mean any city, town, village or port authority in the state, whether incorporated by special act of the Legislature or un­der the general laws of the state.

(2) The word "unit" shall mean any county or municipality in the state, now or hereafter created or established.

(3) The term "governing body," as applied to a county, shall mean the board of county commission­ers, and as applied to a municipality, shall mean the council, commission or other board or body in which the general legislative powers of the municipality shall be vested.

(4) The word "project" shall include all property, rights, easements, and franchises relating thereto and deemed necessary or convenient for the con-

struction or acquisition or the operation thereof, and shall embrace waterworks systems, sewer systems, gas systems, bridges, causeways, tunnels, incinera­tor and solid waste disposal systems, harbor and port facilities, mass transportation systems, express­ways, marinas, civic auditoriums, sports arenas, parking facilities, and theme and amusement parks.

(5) A project shall be deemed "self-liquidating" if, in the judgment of the governing body, the reve­nues and earnings thereof and other special funds pledged therefor as provided in this part, will be sufficient to pay the cost of maintaining, repairing and operating the project and to pay the principal and interest of revenue bonds (as hereinafter de­fined) which may be issued to pay the cost of such project or improvements thereof.

(6) The term "revenue bonds" shall mean the ob­ligations issued by a unit under the provisions of this part to pay the cost of a self-liquidating project or improvements thereof or combination of one or more projects or improvements thereof, and payable from the earnings of such project, and any other special funds authorized to be pledged as additional security therefor under this part. Whenever the word "bonds" is used in this part, it shall be deemed to mean "revenue bonds," unless the specific term "general obligation bonds" is used.

(7) The word "bridge" and the word "tunnel" shall include not only the bridge or the tunnel but also all structures and equipment connected there­with and the approaches thereto and approach roads.

(8) The word "causeway" shall mean any raised road or way over and across any marshy ground, swamp, river, bay or water in the state, the bridges or tunnels and structures connected therewith, and the approaches thereto and approach roads.

(9) The term "waterworks system" shall mean and shall include water supply systems, water distri­bution systems and any integral part thereof, wheth­er inside or outside the unit, and shall include but shall not be limited to reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, stand­pipes, filter stations, purification plants, hydrants, meters, valves and equipment.

(10) The term "harbor and port facilities" shall include docks, wharves, piers, warehouses, termi­nals, refrigerating plants, channels, turning basins, connecting railroads, breakwaters, causeways and

691

Ch. 159 BOND FINANCING F.S.1979

bridges, and bulkheads and equipment. (11) The word "improvements" shall mean such

repairs, replacements, additions, extensions and bet­terments of and to a project as are deemed necessary to place such project in proper condition for the safe, efficient and economic operation thereof, or neces­sary to preserve a project or to maintain adequate service to the public.

(12) The term "cost of improvements" shall mean the cost of construction or acquiring improve­ments as hereinabove defined and shall embrace the cost of all labor and materials, the cost of all lands, property, rights, easements and franchises acquired which are deemed necessary for such construction, the cost of all machinery and equipment, financing charges, cost of engineering and legal expenses, plans, specifications, surveys, and such other ex­penses as may be necessary or incident to such con­struction.

(13) The term "cost of a project" shall mean the cost of acquiring or constructing such project, and the cost of improvements, and shall include the cost of all labor and materials, the cost of all lands, prop­erty, rights, easements and franchises acquired, which are deemed necessary for such acquisition or construction, the cost of all machinery and equip­ment, financing charges, interest prior to and during construction and for 1 year after the completion of construction, engineering and legal expenses, cost of plans, specifications, surveys, estimates of construc­tion costs and of revenues, other expenses necessary or incident to determining the feasibility or practica­bility of such acquisition or construction, adminis­trative expenses, and such other expenses as may be necessary or incident to the financing herein author­ized and to such acquisition or construction and the placing of the project in operation.

(14) The term "sewer system" shall mean and include sewage disposal systems or sanitary sewer systems and any integral part thereof, whether in­side or outside the unit, and shall include but shall not be limited to sewage disposal plants or facilities, sanitary sewers, pumping stations, intercepting or trunk or lateral sewers, and any other properties or works or equipment necessary for the collection, treatment and disposal of sewage and waste matter, including industrial wastes.

(15) The term "gas system" shall mean and in­clude works and structures necessary for the produc­tion, supply and distribution of gas, manufactured or natural, for lighting, heating, refrigeration or other domestic or industrial use, whether inside or outside the unit and shall include but shall not be limited to distribution mains, meters, plants, equipment, ma­chinery and any other property necessary for the production, supply and distribution of either manu­factured or natural gas, for domestic or industrial use.

(16) The term "utilities services taxes" shall mean taxes levied and collected on the purchase or sale of utilities services pursuant to ss. 167.431 and 167.45 or any other law. · '

(17) The term "cigarette taxes" shall mean taxes levied and collected on the purchase or sale of ciga­rettes under the provisions of chapter 210 or any other law.

(18) The term "franchise taxes" shall mean pay­ments to a municipality pursuant to the provisions of a franchise granted to a person, firm or corpora­tion for the furnishing of utilities or other services or facilities in such municipality.

(19) The term "mass · transportation system" shall mean any system for the transportation of the public by bus, rail or any other means of conveyance serving the general public and moving over pre­scribed routes.

(20) The term "expressways" shall mean any limited access highway where tolls are charged for use thereof.

(21) The term "marinas" shall mean any facili­ties for the sale, repair, rental, storage, and servicing of boats.

(22) The term "civic auditorium" shall mean any building constructed for the purpose of serving pub­lic gatherings, including but not limited to, conven­tions, meetings, and concerts where admission may be charged.

(23) The term "sports arena" shall mean any building or enclosed area where fees may be charged for the admission to sporting events.

(24) The term "incinerator and solid waste dis­posal systems" shall include any system whereby solid wastes are burned, buried, composted or any system for such disposal approved by a state pollu­tion control agency.

(25) The term "parking facilities" shall mean any facility constructed for the purpose of vehicular parking and the use, operation and occupancy of such parking facilities and for which charges are made.

History.-s. 2, ch. 28045, 1953; ss. 1, 2, ch. 67·550; s. 1, ch. 77·351.

159.03 General powers.-The governing body of any unit in the state is hereby authorized and empowered:

(1) To acquire by purchase or to construct, or partly acquire and partly construct, and to improve, repair, reconstruct, own, operate and maintain any self-liquidating project, or any combination of one or more projects as a single project, either inside or outside or partly inside and partly outside of the boundaries of the corporate limits of such unit; pro­vided, however, that the consent of the adjoining governmental authority must be first obtained be­fore a project may be effected outside the boundaries of the corporate limits of such unit.

(2) To issue revenue bonds of such unit, payable from earnings and any other special funds pledged therefor as provided herein, to pay the cost of a project or improvement thereof.

(3) To fix and collect rates, fees, tolls, rentals or other charges for the services and facilities fur­nished by such project.

(4) To acquire in tl'l.e name of the unit, either by purchase or the exercise of the right of eminent do­main, such lands and rights and interests therein, including lands under water and riparian rights, and to acquire such personal property, as it may deem necessary in connection with the construction, re­construction, improvement, extension, enlargement or operation of any project.

(5) To make and enter into all contracts and agreements necessary or incidental to the perform-

692

F.S.1979 BOND FINANCING Ch. 159

ance of its duties and the execution of its powers under this part, and to employ such consulting engi­neers, attorneys, accountants, construction and fi­nancial experts, superintendents, managers, and other employees and agents as may, in the judgment of the governing body, be deemed necessary, and to fix their compensation; provided, however, that all such expenses shall be payable solely from funds made available under the provisions of this part.

(6) To receive and accept from any federal agen­cy grants for or in aid of the planning, construction, reconstruction or financing of any project, and to receive and accept aid or contributions from any source of either money, property, labor or other things of value, to be he~d, used and applied only for the purposes for which such grants and contribu­tions may be made.

History.-s. 3, ch. 28045, 1953; s. 3, ch. 67-550; s. 1, ch. 77-174.

159.04 Neither credit nor taxing power pledged.-

(!) Revenue bonds issued under the provisions of this part shall not be deemed to constitute a debt of the unit issuing the same or a pledge of the faith and credit of such unit, except as provided in s. 159.16, but such bonds shall be payable from the funds here­inafter provided therefor from revenues and any other special funds pledged for the payment of such bonds as provided herein. All such bonds shall con­tain a statement on their face to the effect that such unit is not obligated to pay the same or the interest thereon except from revenues and other special funds provided for in this part, and that the faith and credit of the unit are not pledged to the payment of the principal or interest of such bonds.

(2) The issuance of revenue bonds under the pro­visions of this part shall not directly or indirectly or contingently obligate the unit to levy or to pledge any form of ad valorem taxation whatever therefor. No holder of any such revenue bonds shall ever have the right to compel any exercise of the ad valorem taxing power on the part of such unit to pay any such bonds or the interest thereon or to enforce payment of such bonds or the interest thereon against any property of the unit, nor shall such bonds constitute a charge, lien or encumbrance, legal or equitable, upon any property of such unit, except the revenues and other special funds pledged for the payment of such revenue bonds. ·

History.-s. 4, ch. 28045, 1953; s. 4, ch. 67-550.

159.05 Purchase of projects.-The governing body of any unit is hereby authorized to acquire by purchase, whenever it f?hall deem such purchase ex­pedient, any self-liquidating project as hereinabove defined, or any such project, wholly or partly con­structed, and any franchise, easements, permits and contracts for the construction of any such project, upon such terms and at such prices as may be rea­sonable and can be agreed upon between such gov­erning body and the owner thereof, title to be taken in the name of the unit. The governing body may issue revenue bonds of the unit, as hereinafter pro-

vided, to pay the cost of the acquisition of such project.

History.-s. 5, ch. 28045, 1953.

159.06 Improvement of projects purchased. -It shall be the duty of the governing body at or before the time any such project shall be acquired by purchase, to determine what repairs, replacements, additions or betterments will be necessary to place the project in safe and efficient condition for use, and to cause an estimate of the cost of such improve­ments to be made. The governing body shall author­ize such improvements before the sale of any reve­nue bonds for the acquisition of such project, and the cost of such improvements shall be paid for out of the proceeds of such bonds.

History.-s. 6, ch. 28045, 1953.

159.07 Construction of projects.-The govern­ing body of any unit is hereby authorized and em­powered to construct, whenever it shall deem such construction expedient, any self-liquidating project as hereinabove defined.

History.-s. 7, ch. 28045, 1953.

159.08 Revenue bonds.-(1) The governing body of any unit shall have the

power and it is hereby authorized to provide by ordi­nance or resolution, at one time or from time to time, for the issuance of revenue bonds of the unit for the purpose of paying all or a part of the cost as hereina­bove defined of any one or more self-liquidating projects of the same class, or any combination there­of as a single project, or of any improvements there­of. The principal and interest of such bonds shall be payable solely from the special funds herein provid­ed for such payment. The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding 7.5 percent per annum, shall mature at such time or times not exceeding 40 years· from their date or dates, as may be determined by the govern­ing body, and may be made redeemable before matu­rity, at the option of the unit, at such price or prices and under such terms and conditions as may be fixed by the governing body prior to the issuance of the bonds. The governing body shall determine the form of the bonds and the interest coupons to be attached thereto, the manner of executing the bonds and cou­pons, and shall fix the denomination or denomina­tions of the bonds and the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or cou­pons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All revenue bonds issued under the provi­sions of this part shall have and are hereby declared to be and to have all the qualities and incidents of negotiable instruments under the Negotiable Instru­ments Law of the state. Provision may be made for the registration of any of the bonds in the name of the owner as to principal alone and also as to both principal and interest, and for the reconversion of any of the bonds registered as to both principal and

693

Ch. 159 BOND FINANCING F.S.1979

interest into coupon bonds. Such bonds may be is­sued without regard to any limitation on indebted­ness prescribed by any other law and shall not be included in the amount of bonds which any unit may be authorized to issue under any statute or charter. The governing body may sell such bonds in such manner and for such price as it may determine to be for the best interests of the unit, but no such sale shall be made at a price so low as to require the payment of interest on the money received therefor at more than 7.5 percent per annum, computed with relation to the absolute maturity of the bonds in accordance with standard tables of bond values, ex­cluding, however, from such computation the amount of any premium to be paid on the redemp­tion of any bonds prior to maturity. Prior to the preparation of definitive bonds, the governing body may, under like restrictions, issue interim receipts, interim certificates, or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds have been executed and are availa­ble for delivery. The governing body may also pro­vide for the replacement of any bonds which shall become mutilated, or be destroyed or lost. Such reve­nue bonds may be issued without any other proceed­ings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this part.

(2) The proceeds of such bonds shall be used sole­ly for the payment of the cost of the project, and shall be disbursed in such manner and under such restric­tions, if any, as the governing body may provide. If the proceeds of such bonds, by error of estimates or otherwise, shall be less than the cost of the project, additional bonds may in like manner be issued to provide the amount of such deficit, and, unless other­wise provided in the ordinance or resolution or in the trust agreement hereinafter mentioned, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued for the same project. If the proceeds of bonds issued for any project shall exceed the cost thereof, the surplus shall be paid into the fund hereinafter provided for the payment of the principal of and the interest on such bonds.

(3) In the event that a unit has heretofore ac­quired or constructed a project as hereinabove de­fined, and, to pay the cost of such acquisition or con­struction or of improvements thereof, shall have is­sued revenue bonds or certificates of the unit paya­ble from the revenues of such project or any other special funds provided for herein, and in the further event that such unit shall desire to construct addi­tions, extensions, improvements or betterments to such project or to acquire by purchase or to construct an additional project and to combine such additional project with the project theretofore purchased or constructed, and to refund such outstanding revenue bonds or certificates, such unit may provide for the issuance of a single issue of revenue bonds under the provisions of this part for the combined purposes:

(a) Of refunding such revenue bonds or certifi­cates then outstanding if they have matured or shall then be subject to redemption or will be subject to redemption within 10 years thereafter, or can be

acquired for retirement, and (b) Of constructing such additions, extensions,

improvements or betterments or of acquiring by pur­chase or of constructing such additional project, and the principal of and interest on such revenue bonds shall be payable from the revenues derived from the operation of the combined projects as a single project, and any other special funds pledged therefor as provided herein.

(4) The ordinance or resolution providing for the issuance of the revenue bonds and the trust agree­ment hereinafter mentioned, may also contain such limitations upon the issuance of additional revenue bonds as the governing body may deem proper, and such additional bonds shall be issued under such restrictions and limitations as may be prescribed by such ordinance or resolution or by the trust agree­ment hereinafter mentioned. All moneys received from any bonds issued and sold under the provisions of this part shall be applied solely for the purposes for which the bonds shall be authorized or to the sinking fund created for the payment of such bonds.

(5) No revenue bonds shall be issued by a unit under the authority of this part unless the governing body of such unit shall have theretofore found and determined:

(a) The estimated cost of the project on account of which such bonds are to be issued,

(b) The estimated annual revenues of such project, and of any other special funds provided for in this part which are to be pledged as additional security for said bonds, and

(c) The estimated annual cost of maintaining, re­pairing and operating the project and the interest on such bonds and the principal thereof as such interest and principal shall become due.

History.-s. 8, ch. 28045, 1953; s. 1, ch. 67·484; s. 5, ch. 67·550; s. 10, ch. 73-302.

159.09 Trust agreement.-In the discretion of the governing body, each or any issue of such bonds may be secured by a trust agreement by and between the unit and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the state. Such trust agreement may pledge or assign the revenues to be received, but shall not convey or mortgage any project or any part thereof. Either the ordinance or resolution providing for the issuance of revenue bonds or such trust agreement may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasona­ble and proper and not in violation oflaw, including covenants setting forth the duties of the unit and the governing body thereof in relation to the acquisition, construction, improvement, maintenance, opera­tion, repair, and insurance of the project, and the custody, safeguarding, and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of this state to act as such depository and to furnish such indemnifying bonds or to pledge such securities as may be required by the governing body. Such ordinance or resolution or such trust agreement may set forth the rights and remedies of the bondholders and of the trustee, if any, and may restrict the individual right of action by bondholders as is customary in trust agreements

694

F.S.1979 BOND FINANCING Ch. 159

or trust indentures securing bonds or debentures of corporations. In addition to the foregoing, such ordi­nance or resolution or such trust agreement may contain such other provisions as the governing body may deem reasonable and proper for the security of bondholders. Except as in this part otherwise provid­ed, the governing body may provide, by ordinance or resolution or by such trust agreement, for the pay­ment of the proceeds of the sale of the bonds and the revenues of the project to such officer, board or de­pository as it may determine for the custody thereof, and for the method of disbursement thereof, with such safeguards and restrictions as it may deter­mine. All expenses incurred in carrying out such trust agreement may be treated as a part of the cost of operation of the project affected by such trust agreement.

History.-s. 9, ch. 28045, 1953.

159.10 Revenues of projects.-(1) The governing body shall fix and revise from

time to time rates, fees, rentals, tolls or other charges for the use of each project or for the services and facilities furnished thereby and charge and col­lect the same. Such rates, fees, rentals, tolls, or other charges shall be so fixed and adjusted, in respect of the aggregate of rates, fees, rentals, tolls, or other charges from the project or projects for which a sin­gle issue of bonds is issued, as to provide a fund sufficient, together with any other special funds pledged therefor as provided in this part, to pay the cost of maintaining, repairing and operating such project or projects and the principal of and interest on the revenue bonds as the same shall become due and reserves for such purposes and all such other payments required by the proceedings authorizing the issuance of such revenue bonds. Such rates, fees, rentals, tolls and other charges shall not be subject to supervision or regulation by any state commis­sion, board, bureau or agency.

(2) All or a sufficient amount of the revenues derived from a project or projects for which revenue bonds have been issued shall be set aside at such regular intervals as may be provided in the ordi­nance or resolution authorizing the issuance of the bonds or in the trust agreement securing the same, in a sinking fund which is hereby pledged to and charged with the payment of the principal and inter­est upon such bonds as the same shall become due, any premium upon bonds retired by call or purchase as herein provided, and for reserves therefor, and to pay the cost of maintaining, repairing and operating the project or projects and reserves therefor, all in the order of priority and manner as shall be provided in such ordinance or resolution or trust agreement. The use and disposition of such sinking fund shall be subject to such regulations as may be provided in the ordinance or resolution authorizing the issuance of the bonds or in such trust agreement, but, except as may otherwise be provided in such ordinance or reso­lution or such trust agreement, such sinking fund shall be a fund for the benefit of all bonds without distinction or priority of one over another.

(3) If any county, city or town or any department, agency or instrumentality thereof elects to avail it­selfofthe services and facilities afforded by a project financed by it under the provisions of this part, it

shall pay for the same at the established rates as the charges therefor accrue, and the revenues so re­ceived shall be deemed to be a part of the revenues of such project.

History.-s. 10, ch. 28045, 1953; s. 6, ch. 67·550.

159.11 Trust funds.-All moneys received pur­suant to the authority of this part, whether as pro­ceeds from the sale of revenue bonds or as revenues, shall be deemed to be trust funds, to be held and applied solely as provided in this part. The governing body shall, in the ordinance or resolution authoriz­ing the issuance of such bonds or in the trust agree­ment, provide for the payment of the proceeds of the sale of the bonds and the revenues to be received to any officer who, or to any agency, bank or trust com­pany which, shall act as trustee of such funds, and hold and apply the same to the purposes hereof, sub­ject to such regulations as this part and such ordi­nance or resolution or trust agreement may provide.

History.-s. 11, ch. 28045, 1953.

159.12 Remedies of bondholders and trustee. -Any holder of revenue bonds issued under the pro­visions of this part or any of the coupons attached thereto, and the trustee under the trust agreement, if any, except to the extent the rights herein given may be restricted by ordinance or resolution passed before the issuance of the bonds or by the trust agreement, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder or under such ordinance or resolution or trust agreement, and may enforce and compel the performance of all duties required by this part, or by such ordinance or resolution or trust agreement, to be performed by the unit or its govern­ing body or by any officer thereof, including the fix­ing, charging and collecting of rates, fees, rentals, tolls and other charges for the use of the project or for the services and facilities furnished thereby.

History.-s. 12, ch. 28045, 1953.

159.13 Revenue refunding bonds.-(1) The governing body of any unit is hereby au­

thorized to provide by ordinance or resolution for the issuance of revenue refunding bonds of such unit for the purpose of refunding any revenue bonds then outstanding and which shall then have matured or are then redeemable or subject to redemption within 10 years thereafter or can be acquired for retirement and issued under the provisions of this part or any other law for the purpose of paying all or a part of the cost of a project as defined in this part. The governing body of any unit is further authorized to provide by ordinance or resolution for the issuance of revenue bonds of the unit for the combined pur­poses of: ,

(a) Paying the cost of any improvements of a project or of acquiring by purchase or of constructing an additional project or projects and of;

(b) Revenue refunding bonds of the unit which shall theretofore have been issued for such project and shall then be outstanding and which shall then have matured or are then redeemable or subject to redemption within 10 years thereafter or can be ac­quired for retirement.

695

Ch. 159 BOND FINANCING F.S.1979

The issuance of such revenue refunding bonds, the maturities and other details thereof, the rights of the holders thereof, and the duties of the governing body and of the unit in respect to the same, shall be gov­erned by the foregoing provisions of this part insofar as the same may be applicable.

(2) If such outstanding revenue bonds to be re­funded are not immediately redeemable the issuing unit shall have power to invest the proceeds of such revenue refunding bonds in direct obligations of the United States until the first date upon which such outstanding revenue bonds are redeemable prior to maturity, not in any event later than 10 years from the date of issuance of such revenue refunding bonds.

History.-s. 13, ch . 28045, 1953; s. 7, ch. 67-550.

159.14 Alternative method.-This part shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and addition­al to powers conferred by other laws, and shall not be regarded as in derogation of any powers now ex­isting. This part, being necessary for the welfare of the inhabitants of the counties and municipalities of the state, shall be liberally construed to effect the purposes thereof.

History.-s. 14, ch. 28045, 1953.

159.15 Tax exemption and eligibility as in­vestments.-

(1) It is hereby found and determined that all of the purposes for which revenue bonds are authorized to be issued by this part constitute essential govern­mental purposes, and all of the properties, revenues, moneys and other assets owned and used in the oper­ation of such projects, and all revenue bonds issued hereunder and the interest thereon shall be exempt from all taxation by the state or by any county, mu­nicipality, political subdivision, agency, or instru­mentality thereof. The exemption granted by this subsection shall not be applicable to any tax imposed by chapter 220 on interest, income, or profits on debt obligations owned by corporations.

(2) Any revenue bonds issued hereunder shall be and constitute legal investments for all public bodies and for all banks, savings banks, guardians, insur­ance funds, trustees or other fiduciaries and shall be and constitute eligible securities to be deposited as collateral for the security of any state, county, mu­nicipal or other public funds.

History.-s. 8, ch . 67-550; s. 2, ch . 73-327.

159.16 Additional pledge of faith and cred­it.-

(1) Notwithstanding· any other provision of this part, any county or municipality issuing revenue bonds hereunder for any of the purposes provided in this part, shall have power to pledge the full faith and credit and ad valorem taxing power of such county or municipality for the payment of the princi­pal of or interest on such revenue bonds if the issu­ance of such rev.enue bonds with such additional pledge shall have approval by the qualified electors who are freeholders residing in such county or mu­nicipality in an election called, conducted and held in the manner provided in the Constitution and Stat-

utes of Florida for the holding of freeholder elec­tions.

(2) In the event such additional pledge is made the county or municipality shall be obligated to levy ad valorem taxes without limit as to rate or amount for the payment of the principal of and interest on such revenue bonds, and the issuance of such reve­nue bonds with such adaitional pledge of the faith and credit of such county or municipality shall not be subject to any debt limitation contained in any other law, general, special or local.

History.-s. 8, ch. 67-550.

159.17 Lien of service charges.-Any munici­pality issuing revenue bonds hereunder shall have a lien _on all lands or premises served by any water system, sewer system or gas system for all service charges for such facilities until paid, which liens shall be prior to all other liens on such lands or premises except the lien of state, county and munici­pal taxes and shall be on a parity with the lien of such state, county and municipal taxes. Such 'liens, when delinquent for more than 30 days, may be fore­closed by such municipality in the manner provided by the laws of Florida for the foreclosure of mort­gages on real property.

History.-s. 8, ch. 67-550.

159.18 Collection of charges.-(1) Any municipality shall have power to discon­

tinue and shut offthe supplying of any or all water, gas and sewer services to any users of the facilities of a water system, gas system or sewer system of such municipality for nonpayment of service charges for any such water system, gas system or sewer system, and may covenant with the holders of any revenue bonds issued hereunder that it will not restore the supplying of any water, gas or sewer ser­vices to such delinquent users until all charges, with reasonable interest and penalties, for all water, gas and sewer services have been paid in full .

(2) Any municipality shall have power to enter into valid and legally binding contracts with any person, public or private corporation, board or other body supplying water to any premises served by the sewer system or facilities of the municipality for the shutting off and discontinuing of the supply of water to such premises as long as any charges for the sewer services or facilities of the municipality are unpaid, under such terms and conditions as shall be mutual­ly agreed upon, including provisions for the billing a:nd collecting of the sewer charges of the municipal­ity by the owners of the water facilities at the same time water charges are billed and collected by such owners of the water facilities.

History.- s. 8, ch. 67-550.

159.19 Additional pledge of excise taxes.- . (1) Any municipality may pledge the proceeds of

utilities services taxes, cigarette taxes, or franchise taxes, as defined herein, or any other excise taxes or other funds which such municipality is authorized to levy and collect or will have available, as additional security for the payment of the principal of and in­terest on any revenue bonds issued hereunder, or for reserves for such debt service.

(2) In the event of the pledge of such utilities

696

F.S.1979 BOND FINANCING Ch. 159

services taxes, cigarette taxes, franchise taxes, or other excise taxes as provided herein, such pledge shall be and constitute a valid and legally binding contract between the municipality and the holders of such revenue bonds as the case may be, and the municipality shall be obligated to continue the levy and collection of such utilities services taxes, ciga­rette taxes, franchise taxes, or other excise taxes in accordance with the proceedings which authorize the issuance of the revenue bonds for which such utilities services taxes, cigarette taxes, franchise taxes or other excise taxes are so pledged as addition­al security as long as any of said revenue bonds are outstanding and unpaid.

(3) It shall be the mandatory duty of the munici­pality, when it has so pledged any utilities services taxes, cigarette taxes, franchise taxes or other excise taxes as additional security for such revenue bonds t9 continue the levy and collection of such utilities services taxes, cigarette taxes, franchise taxes or other excise taxes in the manner provided in the proceedings authorizing the issuance of the revenue bonds for which the same are pledged, and to raise the rates of such utilities services taxes, cigarette taxes, franchise taxes and other excise taxes to the maximum rates permitted by the statutes or fran­chises in effect at the time of the authorization of such bonds to the full extent necessary to comply with such proceedings authorizing the issuance of such revenue bonds.

(4) The state does hereby covenant with the hold­ers of such revenue bonds that it will not repeal or impair, or amend in any manner which will materi­ally and adversely affect the rights of such holders, the duty and obligation and power of the municipal­ity to levy and collect such utilities services taxes, cigarette taxes, franchise taxes or other excise taxes in accordance with the proceedings authorizing the issuance of such revenue bonds.

History.-s. 8, ch. 67-550.

PART II

FLORIDA INDUSTRIAL DEVELOPMENT FINANCING ACT

159.25 159.26 159.27 159.28 159.285 159.29 159.30 159.31 159.32 159.33

159;34 159.35 159.36 159.37 159.38 159.39 159.40 159.41 159.42 159.43

Short title. Legislative findings and purposes. Definitions. General powers. Additional county powers. Criteria and requirements. Agreements of lease. Tax exemption. Construction contracts. Credit of state or political subdivision not

pledged. Bonds. Trust agreement. Revenues. Trust funds. Remedies. Negotiability of bonds. Bonds eligible for investment. Revenue refunding bonds. Cooperation of state. Liberal construction.

159.25 Short title.-Part II of chapter 159 shall be known and may be cited as the "Florida Industri­al Development Financing Act."

History.-s. 1, ch. 69-104.

159.26 Legislative findings and purposes.­The Legislature finds and declares that, in order to improve the prosperity and welfare of the state and its inhabitants, to improve living conditions, to pro­mote effective and efficient pollution control throughout the state, to promote the advancement of education and science, research in and the economic development of the state, and to increase purchasing power and opportunities for gainful employment, it is necessary and in the public interest to facilitate the financing of capital projects for industrial or manufacturing plants, research and development parks, and pollution-control facilities within the state; to facilitate and encourage the planning and development of these capital projects without regard to the boundaries between counties, municipalities, special districts, and other local governmental bod­ies or agencies in order to more effectively and effi­ciently serve the interests of the greatest number of people in the widest area practicable; and to other­wise effectuate the purpose of s. lO(c) of Art. VII of the State Constitution through the authorization of the issuance of revenue bonds by counties, munici­palities, special districts, and other local governmen­tal bodies or agencies for industrial or manufactur­ing plants, research and development parks, or pol­lution-control facilities to the extent that the inter­est on such bonds is exempt from income taxes under the then existing laws of the United States. The elimination, mitigation, abatement, control, or pre­vention of air and water pollution constitutes a prop­er public purpose. Local agencies are encouraged to facilitate the financing of the costs of pollution-con­trol facilities by utilizing revenue bonds authorized by s. 10(c) of Art. VII to accomplish this public pur­pose.

History.-s. 2, ch. 69-104; s. 1, ch. 75-126; s. 2, ch. 79-101.

159.27 Definitions.-The following words and terms, unless the context clearly indicates a differ­ent meaning, shall have the following meanings:

(1) "Bonds" or "revenue bonds" means the bonds authorized to be issued by any local agency under this part, which may consist of a single bond. The term "bonds" or "revenue bonds" shall also include a single bond, a promissory note or notes, or other debt obligations evidencing an obligation to repay borrowed money together with any security instru-ments or agreements securing repayment of such borrowed money and payable solely from the reve­nue derived from the sale, operation, or leasing of any project.

(2) "Cost" as applied to any project, shall em­brace:

(a) The cost of construction; (b) The cost of acquisition of property, including

rights in land and other property, both real and per­sonal and improved and unimproved;

(c) The cost of demolishing, removing, or relocat­ing any buildings or structures on lands so acquired, including the cost of acquiring any lands to which

697

Ch. 159 BOND FINANCING F.S.1979

such buildings or structures may be moved or relo­cated;

(d) The cost of all machinery and equipment, fi­nancing charges, interest prior to and during con­struction, and, if deemed advisable by the local agen­cy, for a period not exceeding 1 year after completion of construction, the cost of engineering and architec-

er with land, including all necessary appurtenances, rights, and franchises relating thereto with related buildings, facilities, and personal properties, but only to the extent that such facilities are incidental to the purposes of a research and development park.

History.-s. 3, ch. 69-104; s. 2, ch. 75-126; s. 3, ch. 79-101.

tural surveys, plans and specifications; and 159.28 General powers.-Every local agency (e) The cost of consultant and legal services, oth- shall have all of the powers necessary or convenient

er expenses necessary or incident to determining the to carry out and effectuate the purposes and provi­feasibility or practicability of constructing such sions of this part, including, but without limiting the project, administrative and other expenses neces- generality of the foregoing, the powers, with respect sary or incident to the construction of such project, to any project or projects: and the financing of the construction thereof, includ- (1) To prescribe rules, regulations, and policies in ing reimbursement to any state or other governmen- connection with the performance of its functions and tal agency or any lessee of such project for such ex- duties under this part; penditures made with the approval of the local agen- (2) To receive, administer, and comply with con­ey that would be costs of the project hereunder had ditions and requirements respecting any gift, grant, they been made directly by the local agency. or donation of any property or money from any

(3) "Governing body" means the board, commis- source, whether federal, state, or private; sion, or other governing body of any local agency in (3) To make and execute agreements of lease, which the general legislative powers of such local contracts, deeds, and other instruments necessary or agency are vested. convenient in the exercise of the powers and func-

(4) "Local agency" means any county or munici-pality existing or hereafter created pursuant to the tions of the local agency under this part, including laws of the state or any special district or other local contracts with persons, firms, corporations, federal governmental body existing or hereafter created and state agencies, and other local agencies, which pursuant to the laws of the state, the purpose for the state agencies and other local agencies are hereby creation of which could reasonably be interpreted to authorized to enter into contracts and otherwise co­be consistent with the issuance of revenue bonds to operate with any local agency to facilitate the fi­finance the cost of projects within the meaning of nancing, construction, and leasing of any project; this part. (4) To acquire by purchase, lease, gift, or other-

(5) "Project" means any capital project compris- wise, or to obtain options for the acquisition of, any ing an industrial or manufacturing plant, research property, real or personal, improved or unimproved, and development park, or pollution-control facility, for the construction, operation, or maintenance of including one or more buildings and other struc- any project; provided that no project shall be fi­tures, whether or not on the same site or sites; any nanced hereunder unless the local agency shall have rehabilitation, improvement, renovation, or enlarge- or shall acquire an interest in the site of the project ment of, or any addition to, any buildings or struc- not of less dignity than a leasehold interest, suffi­tures for use as a factory, mill, processing plant, cient for the purpose; assembly plant, fabricating plant, industrial distri- (5) To sell, lease, exchange, transfer, or other­bution center, repair, overhaul, or service facility, wise dispose of, or to grant options for any such pur­test facility or pollution-control facility, and other poses with respect to any real or personal property facilities, including research and development, for or interest therein; manufacturing, processing, assembling, repairing, (6) To pledge or assign any money, rents, overhauling, servicing, testing, or handling of any charges, fees, or other revenues and any proceeds products or commodities embraced in any industrial derived from sales of property, insurance, or con­or manufacturing plant, in connection with the pur- demnation awards; poses of a research and development park, or for (7) To issue revenue bonds of the local agency for controlling pollution; and including also the sites the purpose of providing funds to pay all or any part thereof and other rights in land therefor whether of the cost of any project, and to issue revenue re­improved or unimproved, machinery, equipment, site preparation and landscaping, and all appurte- funding bonds; nances and facilities incidental thereto, such as (8) To construct, acquire, own, repair, maintain, warehouses, utilities, access roads, railroad sidings, extend, improve, rehabilitate, renovate, furnish, and truck docking and similar facilities, parking facili- equip projects and to pay all or any part of the costs ties, dockage, wharfage, and other improvements thereof from the proceeds of bonds of the local agen­necessary or convenient for any manufacturing or cy or from any contribution, gift or donation or other industrial plant, research and development park, or funds made available to the local agency for such pollution-control facility. purpose;

(6) "State" means the State of Florida. (9) To fix, charge, and collect rents, fees, and (7) "Research and development park" means a charges for the use of any project; and

center of research and development activity consist- (10) To employ consulting engineers, architects, ing of research and development facilities, research attorneys, real estate counselors, appraisers, and institutes, testing laboratories, related business, gov- such other consultants and employees as may be re­ernment installations, and similar facilities, togeth- quired in the judgment of the local agency, and to fix

698

F.S.1979 BOND FINANCING Ch. 159

and pay their compensation from funds available to the local agency therefor.

History.-s. 4, ch. 69-104.

159.285 Additional county powers.-(1) A county shall have full power and authority

to issue revenue bonds for the purpose of financing and providing funds to pay the cost of pollution-con­trol facilities or devices, or to provide facilities for the furnishing of water or sewerage or solid-waste disposal incorporated as a part of any project wheth­er or not the site or sites of the project are located wholly or in part outside the boundaries of the coun­ty issuing the revenue bonds. However, the ultimate owner or user of the project shall maintain the project or the owner's or user's principal place of business within the boundaries of the county issuing the revenue bonds, and the revenue bonds shall com­ply with the requirements of s. 10(c) Art. VII of the State Constitution.

(2) As a condition precedent to issuing revenue bonds for the purpose of financing and providing funds to pay the cost of pollution-control facilities or devices or to provide facilities for the furnishing of water or sewerage or solid-waste disposal incorporat­ed in a project located outside the boundaries of the county as authorized by subsection (1), the board of county commissioners or industrial development au­thority shall determine that the proposed facilities or devices are reasonably designed and intended to eliminate, mitigate, abate, control, or prevent air or water pollution or to provide facilities for the fur­nishing of water or sewerage or solid-waste disposal within the meaning of the rules and regulations of the Internal Revenue Service and that the ultimate owner or user of the project involved is financially responsible and fully capable and willing to fulfill its obligations under the contractual arrangements or lease with the county governing the project, includ­ing the obligation to pay rent or contract install­ments in the amounts and at the times required, to operate, repair, and maintain, at its own expense, the project leased or owned, and to serve the pur­poses of this part and such other responsibilities as may be imposed under the lease or contract.

(3) A county issuing revenue bonds pursuant to subsection (1) for the purpose of financing and pro­viding funds for a project located wholly or in part outside the boundaries of the county issuing the rev­enue bonds may, in its discretion, request the board of county commissioners or the industrial develop­ment authority for the county or counties in which the site or sites of the project are located wholly or in part to make the determination required by s. 159.29 of the county issuing the bonds. The determi­nation by such county or counties in which the project is located wholly or in part that the criteria and requirements of s. 159.29 are met shall be final and conclusive and shall constitute satisfaction of the requirements of s. 159.29.

History.-s. 3, ch. 75-126; s. 1, ch. 77-269; s. 1, ch. 78-120.

with such criteria and requirements shall be final and conclusive:

(1) The project, in the determination of the local agency, shall make a significant contribution to the economic growth of the local agency in which it is to be located, shall provide gainful employment, and shall serve a public purpose by advancing the eco­nomic prosperity and the general welfare of the state and its people.

(2) No project shall be leased to any lessee which is not financially responsible and fully capable and willing to fulfill its obligations under the agreement of lease, including the obligation to pay rent in the amounts and at the times required, the obligation to operate, repair and maintain at its own expense the project leased, and to serve the purposes of this part and such other responsibilities as may be imposed under the lease. In determining financial responsi­bility of such lessee consideration shall be given to the lessee's ratio of current assets to current liabili­ties, net worth, earning trends, coverage of all fixed charges, the nature of the industry or business in­volved, its inherent stability, any guarantee of the obligations by some other financially responsible corporation, firm or person, and other factors deter­minative of the capability of the lessee, financially and otherwise, to fulfill its obligations consistently with the purposes of this part.

(3) The local agency in which the project is to be located will be able to cope satisfactorily with the impact of such project and will be able to provide, or cause to be provided when needed, the public facili­ties, including utilities and public services, that will be necessary for the construction, operation, repair, and maintenance of the project and on account of any increases in population or other circumstances resulting therefrom.

(4) Adequate provision shall be made for the op­eration, repair, and maintenance of the project at the expense of the lessee and for the payment of principal of and interest on the bonds, and for re­serves therefor.

History.-s. 5, ch. 69-104.

159.30 Agreements of lease.-(1) No project financed under the provisions of

this part shall be operated by the local agency or any other governmental agency, provided that the local agency may temporarily operate or cause to be oper­ated all or any part of a project to protect its interest therein pending any leasing of such project in ac­cordance with this part. The local agency shall lease a project or projects to one or more persons, firms, or private corporations for operation and maintenance in such a manner as shall effectuate the purposes of this part, under an agreement of lease in form and substance not inconsistent herewith. Any such agreement of lease may provide, among other provi­sions, that:

(a) The lessee shall at its own expense operate, repair, and maintain the project or projects leased thereunder;

159.29 Criteria and requirements.-In under- (b) The rent payable under the lease shall in the taking any project pursuant to this part, a local aggregate be not less than an amount sufficient to agency shall be guided by and shall observe the fol- pay all of the interest, principal, and redemption lowing criteria and requirements; provided that the premiums, if any, on the bonds that shall be issued determination of the local agency as to compliance by the local agency to pay the cost of the project or

699

Ch. 159 BOND FINANCING F.S.1979

projects leased thereunder; (c) The lessee shall pay all other costs incurred

by the local agency in connection with the financing, construction, and administration of the project or projects leased, except as may be paid out of the proceeds of bonds or otherwise, including, but with­out being limited to, insurance costs, the cost of ad­ministering the bond resolution authorizing such bonds and any trust agreement securing the bonds, and the fees and expenses of trustees, paying agents, attorneys, consultants and others;

(d) The term of the lease shall terminate not ear­lier than the date on which all such bonds and all other obligations incurred by the local agency in con­nection with the project or projects leased thereund­er shall be paid in full, including interest, principal and redemption premiums, if any, or adequate funds for such payment shall be deposited in trust;

(e) The lessee's obligation to pay rent shall not be subject to cancellation, termination, or abatement by the lessee until such payment of the bonds or provision for such payment shall be made.

(2) Such agreement of lease may contain such additional provisions as in the determination of the local agency are necessary or convenient to effectu­ate the purposes of this part, including provisions for extensions of the term and renewals of the lease and vesting in the lessee an option to purchase the project leased thereunder pursuant to such terms and conditions consistent with this part as shall be prescribed in the lease; provided that, except as may otherwise be expressly stated in the agreement of lease to provide for any contingencies involving the damaging, destruction, or condemnation of the project leased or any substantial portion thereof, such option to purchase may not be exercised unless all bonds issued for such project, including all princi­pal, interest and redemption premiums, if any, and all other obligations incurred by the local agency in connection with such project shall have been paid in full or sufficient funds shall have been deposited in trust for such payment; and provided further that the purchase price of such project shall not be less than an amount sufficient to pay in full all of the bonds, including all principal, interest and redemp­tion premium, if any, issued for the project then outstanding and all other obligations incurred by the local agency in connection with such project.

History.-s. 6, ch. 69-104.

159.31 Tax exemption.-The exercise of the powers granted by this part in all respects will be for the benefit of the people of the state, for the increase of their industry and prosperity, and for the im­provement of their health and living conditions, and for the provision of gainful employment, and will constitute the performance of essential public func­tions, and the local agency shall not be required to pay any taxes on any project or any other property owned by the local agency under the provisions of this part or upon the income therefrom, and the bonds issued under the provisions of this part, their transfer, and the income therefrom (including any

strued· as exempting from taxation or assessments the leasehold interest of any lessee in any project or any other property or interest owned by any lessee, and if any project or any part thereof shall be occu­pied or operated by any private corporation, associa­tion, partnership, or person pursuant to any con­tract or lease with the local agency, the property interest created by such contract or lease shall be subject to taxation to the same extent as other pri­vately owned property. The exemption granted by this section shall not be applicable to any tax im­posed by chapter 220 on interest, income, or profits on debt obligations owned by corporations.

History.-s. 7, ch. 69-104; s. 3, ch. 73-327.

159.32 Construction contracts.-Contracts for the construction of the project may be awarded by the local agency in such manner as in its judgment will best promote free and open competition, includ­ing advertisement for competitive bids in a newspa­per of general circulation within the boundaries of the local agency; provided, however, that if the local agency shall determine that the purposes of this part will be more. effectively served, the local agency in its discretion may award or cause to be awarded con­tracts for the construction of any project, or any part thereof, upon a negotiated basis as determined by the local agency. The local agency shall prescribe such bid security requirements and other procedures in connection with the award of such contracts as in its judgment shall protect the public interest. The local agency may by written contract engage the services of the lessee or prospective lessee of any project in the construction of such project and may provide in such contract that the lessee or prospec­tive lessee may act as an agent of, or an independent contractor for, the local agency for the performance of the functions described therein, subject to such conditions and requirements consistent with the provisions of this part as shall be prescribed in such contract, including such functions as the acquisition of the site and other real property for such project, the preparation of plans, specifications and contract documents, the award of construction and other con­tracts upon a competitive or negotiated basis, the construction of such project, or any part thereof, di­rectly by such lessee or prospective lessee, the in­spection and supervision of construction, the em­ployment of engineers, architects, builders, and oth­er contractors, and the provision of money to pay the cost thereof pending reimbursement by the local agency. Any such contract may provide that the lo­cal agency may, out of proceeds of bonds, make ad­vances to or reimburse the lessee or prospective les­see for its costs incurred in the performance of such functions, and shall set forth the supporting docu­ments required to be submitted to the local agency and the reviews, examinations, and audits that shall be required in connection therewith to assure com­pliance with the provisions of this part and such contract.

History.-s. 8, ch. 69-104.

profit made on the sale thereof), shall at all times be 159.33 Credit of state or political subdivision free from taxation by the state or any local unit or not pledged.-political subdivision or other instrumentality of the (1) Bonds issued under the provisions of this part state. Nothing in this section, however, shall be con- shall not be deemed to constitute a debt, liability, or

700