Florida Senate - 2022 SB 1754 By Senator Torres 15-01679-22 20221754__ 1 A bill to be entitled 2 An act relating to local government communications 3 services; amending s. 125.421, F.S.; removing 4 provisions which require counties and entities of 5 local government to pay ad valorem taxes or fees under 6 specified conditions on certain telecommunications 7 facilities; removing a waiver on immunity on taxation 8 of property for counties or entities of local 9 government under such circumstances; amending s. 10 166.047, F.S.; removing provisions which require 11 municipalities and entities of local government to pay 12 ad valorem taxes or fees under specified conditions on 13 certain telecommunications facilities; removing a 14 waiver on immunity on taxation of property for 15 municipalities or entities of local government under 16 such circumstances; amending ss. 196.012 and 199.183, 17 F.S.; removing provisions prohibiting property and use 18 of two-way telecommunications services under specified 19 circumstances from receiving certain tax exemptions; 20 amending s. 212.08, F.S.; removing provisions 21 prohibiting sales, rental, use, consumption, or 22 storage for use of two-way telecommunications services 23 under specified circumstances from receiving a certain 24 tax exemption; removing a waiver on immunity on 25 taxation of property for political subdivisions or 26 entities of local government under such circumstances; 27 amending s. 350.81, F.S.; removing provisions that 28 identify procedures which must be followed by 29 governmental entities before providing communications 30 services; removing a requirement for the Department of 31 Revenue to send a specified notice; removing 32 provisions relating to the use of certain revenues to 33 issue bonds to finance communications services; 34 removing provisions which provide certain procedures 35 if revenues do not exceed operating costs after a 36 specified time period; removing provisions exempting 37 certain governmental entities from certain 38 requirements relating to telecommunications services; 39 removing a provision specifying that certain airport 40 authorities or other governmental entities are not 41 exempt from certain procedural requirements relating 42 to telecommunications services; providing an effective 43 date. 44 45 Be It Enacted by the Legislature of the State of Florida: 46 47 Section 1.Section 125.421, Florida Statutes, is amended to 48 read: 49 125.421Telecommunications services.A telecommunications 50 company that is a county or other entity of local government may 51 obtain or hold a certificate required by chapter 364, and the 52 obtaining or holding of said certificate serves a public purpose 53 only if the county or other entity of local government: 54 (1)Separately accounts for the revenues, expenses, 55 property, and source of investment dollars associated with the 56 provision of such service; and 57 (2)Is subject, without exemption, to all local 58 requirements applicable to telecommunications companies; and 59 (3)Notwithstanding any other provision of law, pays, on 60 its telecommunications facilities used to provide two-way 61 telecommunication services to the public for hire and for which 62 a certificate is required under chapter 364, ad valorem taxes, 63 or fees in amounts equal thereto, to any taxing jurisdiction in 64 which the county or other entity of local government operates. 65 Any entity of local government may pay and impose such ad 66 valorem taxes or fees. Any immunity of any county or other 67 entity of local government from taxation of the property taxed 68 by this section is hereby waived. 69 70 This section does not apply to the provision of 71 telecommunications services for internal operational needs of a 72 county or other entity of local government. This section does 73 not apply to the provision of internal information services, 74 including, but not limited to, tax records, engineering records, 75 and property records, by a county or other entity of local 76 government to the public for a fee. 77 Section 2.Section 166.047, Florida Statutes, is amended to 78 read: 79 166.047Telecommunications services.A telecommunications 80 company that is a municipality or other entity of local 81 government may obtain or hold a certificate required by chapter 82 364, and the obtaining or holding of said certificate serves a 83 municipal or public purpose under the provision of s. 2(b), Art. 84 VIII of the State Constitution, only if the municipality or 85 other entity of local government: 86 (1)Separately accounts for the revenues, expenses, 87 property, and source of investment dollars associated with the 88 provision of such services; and 89 (2)Is subject, without exemption, to all local 90 requirements applicable to telecommunications companies; and 91 (3)Notwithstanding any other provision of law, pays, on 92 its telecommunications facilities used to provide two-way 93 telecommunications services to the public for hire and for which 94 a certificate is required pursuant to chapter 364, ad valorem 95 taxes, or fees in amounts equal thereto, to any taxing 96 jurisdiction in which the municipality or other entity of local 97 government operates. Any entity of local government may pay and 98 impose such ad valorem taxes or fees. 99 100 This section does not apply to the provision of 101 telecommunications services for internal operational needs of a 102 municipality or other entity of local government. This section 103 does not apply to the provision of internal information 104 services, including, but not limited to, tax records, 105 engineering records, and property records, by a municipality or 106 other entity of local government to the public for a fee. 107 Section 3.Subsection (6) of section 196.012, Florida 108 Statutes, is amended to read: 109 196.012Definitions.For the purpose of this chapter, the 110 following terms are defined as follows, except where the context 111 clearly indicates otherwise: 112 (6)Governmental, municipal, or public purpose or function 113 shall be deemed to be served or performed when the lessee under 114 any leasehold interest created in property of the United States, 115 the state or any of its political subdivisions, or any 116 municipality, agency, special district, authority, or other 117 public body corporate of the state is demonstrated to perform a 118 function or serve a governmental purpose which could properly be 119 performed or served by an appropriate governmental unit or which 120 is demonstrated to perform a function or serve a purpose which 121 would otherwise be a valid subject for the allocation of public 122 funds. For purposes of the preceding sentence, an activity 123 undertaken by a lessee which is permitted under the terms of its 124 lease of real property designated as an aviation area on an 125 airport layout plan which has been approved by the Federal 126 Aviation Administration and which real property is used for the 127 administration, operation, business offices and activities 128 related specifically thereto in connection with the conduct of 129 an aircraft full service fixed base operation which provides 130 goods and services to the general aviation public in the 131 promotion of air commerce shall be deemed an activity which 132 serves a governmental, municipal, or public purpose or function. 133 Any activity undertaken by a lessee which is permitted under the 134 terms of its lease of real property designated as a public 135 airport as defined in s. 332.004(14) by municipalities, 136 agencies, special districts, authorities, or other public bodies 137 corporate and public bodies politic of the state, a spaceport as 138 defined in s. 331.303, or which is located in a deepwater port 139 identified in s. 403.021(9)(b) and owned by one of the foregoing 140 governmental units, subject to a leasehold or other possessory 141 interest of a nongovernmental lessee that is deemed to perform 142 an aviation, airport, aerospace, maritime, or port purpose or 143 operation shall be deemed an activity that serves a 144 governmental, municipal, or public purpose. The use by a lessee, 145 licensee, or management company of real property or a portion 146 thereof as a convention center, visitor center, sports facility 147 with permanent seating, concert hall, arena, stadium, park, or 148 beach is deemed a use that serves a governmental, municipal, or 149 public purpose or function when access to the property is open 150 to the general public with or without a charge for admission. If 151 property deeded to a municipality by the United States is 152 subject to a requirement that the Federal Government, through a 153 schedule established by the Secretary of the Interior, determine 154 that the property is being maintained for public historic 155 preservation, park, or recreational purposes and if those 156 conditions are not met the property will revert back to the 157 Federal Government, then such property shall be deemed to serve 158 a municipal or public purpose. The term governmental purpose 159 also includes a direct use of property on federal lands in 160 connection with the Federal Governments Space Exploration 161 Program or spaceport activities as defined in s. 212.02(22). 162 Real property and tangible personal property owned by the 163 Federal Government or Space Florida and used for defense and 164 space exploration purposes or which is put to a use in support 165 thereof shall be deemed to perform an essential national 166 governmental purpose and shall be exempt. Owned by the lessee 167 as used in this chapter does not include personal property, 168 buildings, or other real property improvements used for the 169 administration, operation, business offices and activities 170 related specifically thereto in connection with the conduct of 171 an aircraft full service fixed based operation which provides 172 goods and services to the general aviation public in the 173 promotion of air commerce provided that the real property is 174 designated as an aviation area on an airport layout plan 175 approved by the Federal Aviation Administration. For purposes of 176 determination of ownership, buildings and other real property 177 improvements which will revert to the airport authority or other 178 governmental unit upon expiration of the term of the lease shall 179 be deemed owned by the governmental unit and not the lessee. 180 Providing two-way telecommunications services to the public for 181 hire by the use of a telecommunications facility, as defined in 182 s. 364.02(14), and for which a certificate is required under 183 chapter 364 does not constitute an exempt use for purposes of s. 184 196.199, unless the telecommunications services are provided by 185 the operator of a public-use airport, as defined in s. 332.004, 186 for the operators provision of telecommunications services for 187 the airport or its tenants, concessionaires, or licensees, or 188 unless the telecommunications services are provided by a public 189 hospital. 190 Section 4.Subsection (1) of section 199.183, Florida 191 Statutes, is amended to read: 192 199.183Taxpayers exempt from nonrecurring taxes. 193 (1)Intangible personal property owned by this state or any 194 of its political subdivisions or municipalities shall be exempt 195 from taxation under this chapter. Intangible personal property 196 related to the provision of telecommunications services provided 197 by the operator of a public-use airport, as defined in s. 198 332.004, for the operators provision of telecommunications 199 services for the airport or its tenants, concessionaires, or 200 licensees, and intangible personal property related to the 201 provision of telecommunications services provided by a public 202 hospital, are exempt from taxation under this chapter. This 203 exemption does not apply to: 204 (a)any leasehold or other interest that is described in s. 205 199.023(1)(d), Florida Statutes 2005; or 206 (b)Property related to the provision of two-way 207 telecommunications services to the public for hire by the use of 208 a telecommunications facility, as defined in s. 364.02(14), and 209 for which a certificate is required under chapter 364, when the 210 service is provided by any county, municipality, or other 211 political subdivision of the state. Any immunity of any 212 political subdivision of the state or other entity of local 213 government from taxation of the property used to provide 214 telecommunication services that is taxed as a result of this 215 paragraph is hereby waived. However, intangible personal 216 property related to the provision of telecommunications services 217 provided by the operator of a public-use airport, as defined in 218 s. 332.004, for the operators provision of telecommunications 219 services for the airport or its tenants, concessionaires, or 220 licensees, and intangible personal property related to the 221 provision of telecommunications services provided by a public 222 hospital, are exempt from taxation under this chapter. 223 Section 5.Paragraph (a) of subsection (6) of section 224 212.08, Florida Statutes, is amended to read: 225 212.08Sales, rental, use, consumption, distribution, and 226 storage tax; specified exemptions.The sale at retail, the 227 rental, the use, the consumption, the distribution, and the 228 storage to be used or consumed in this state of the following 229 are hereby specifically exempt from the tax imposed by this 230 chapter. 231 (6)EXEMPTIONS; POLITICAL SUBDIVISIONS. 232 (a)There are also exempt from the tax imposed by this 233 chapter sales made to the United States Government, a state, or 234 any county, municipality, or political subdivision of a state 235 when payment is made directly to the dealer by the governmental 236 entity. This exemption shall not inure to any transaction 237 otherwise taxable under this chapter when payment is made by a 238 government employee by any means, including, but not limited to, 239 cash, check, or credit card when that employee is subsequently 240 reimbursed by the governmental entity. This exemption does not 241 include sales, rental, use, consumption, or storage for use in 242 any political subdivision or municipality in this state of 243 machines and equipment and parts and accessories therefor used 244 in the generation, transmission, or distribution of electrical 245 energy by systems owned and operated by a political subdivision 246 in this state for transmission or distribution expansion. 247 Likewise exempt are charges for services rendered by radio and 248 television stations, including line charges, talent fees, or 249 license fees and charges for films, videotapes, and 250 transcriptions used in producing radio or television broadcasts. 251 The exemption provided in this subsection does not include 252 sales, rental, use, consumption, or storage for use in any 253 political subdivision or municipality in this state of machines 254 and equipment and parts and accessories therefor used in 255 providing two-way telecommunications services to the public for 256 hire by the use of a telecommunications facility, as defined in 257 s. 364.02(14), and for which a certificate is required under 258 chapter 364, which facility is owned and operated by any county, 259 municipality, or other political subdivision of the state. Any 260 immunity of any political subdivision of the state or other 261 entity of local government from taxation of the property used to 262 provide telecommunication services that is taxed as a result of 263 this section is hereby waived. However, the exemption provided 264 in this subsection includes transactions taxable under this 265 chapter which are for use by the operator of a public-use 266 airport, as defined in s. 332.004, in providing such 267 telecommunications services for the airport or its tenants, 268 concessionaires, or licensees, or which are for use by a public 269 hospital for the provision of such telecommunications services. 270 Section 6.Paragraphs (a) through (e), (k), and (l) of 271 subsection (2), and subsections (4) and (6) of section 350.81, 272 Florida Statutes, are amended to read: 273 350.81Communications services offered by governmental 274 entities. 275 (2)(a)A governmental entity that proposes to provide a 276 communications service shall hold no less than two public 277 hearings, which shall be held not less than 30 days apart. At 278 least 30 days before the first of the two public hearings, The 279 governmental entity must give notice of the hearing in the 280 predominant newspaper of general circulation in the area 281 considered for service. At least 40 days before the first public 282 hearing, the governmental entity must electronically provide 283 notice to the Department of Revenue and the Public Service 284 Commission, which shall post the notice on the departments and 285 the commissions website to be available to the public. The 286 Department of Revenue shall also send the notice by United 287 States Postal Service to the known addresses for all dealers of 288 communications services registered with the department under 289 chapter 202 or provide an electronic notification, if the means 290 are available, within 10 days after receiving the notice. The 291 notice must include the time and place of the hearings and must 292 state that the purpose of the hearings is to consider whether 293 the governmental entity will provide communications services. 294 The notice must include, at a minimum, the geographic areas 295 proposed to be served by the governmental entity and the 296 services, if any, which the governmental entity believes are not 297 currently being adequately provided. The notice must also state 298 that any dealer who wishes to do so may appear and be heard at 299 the public hearings. 300 (b)At a public hearing required by this subsection, a 301 governmental entity must, at a minimum, consider: 302 1.Whether the service that is proposed to be provided is 303 currently being offered in the community and, if so, whether the 304 service is generally available throughout the community. 305 2.Whether a similar service is currently being offered in 306 the community and, if so, whether the service is generally 307 available throughout the community. 308 3.If the same or similar service is not currently offered, 309 whether any other service provider proposes to offer the same or 310 a similar service and, if so, what assurances that service 311 provider is willing or able to offer regarding the same or 312 similar service. 313 3.4.The capital investment required by the government 314 entity to provide the communications service, the estimated 315 realistic cost of operation and maintenance and, using a full 316 cost-accounting method, the estimated realistic revenues and 317 expenses of providing the service and the proposed method of 318 financing. 319 4.5.The private and public costs and benefits of providing 320 the service by a private entity or a governmental entity, 321 including the affect on existing and future jobs, actual 322 economic development prospects, tax-base growth, education, and 323 public health. 324 (c)At one or more of the public hearings under this 325 subsection, the governmental entity must make available to the 326 public a written business plan for the proposed communications 327 service venture containing, at a minimum: 328 1.The projected number of subscribers to be served by the 329 venture. 330 2.The geographic area to be served by the venture. 331 3.The types of communications services to be provided. 332 4.A plan to ensure that revenues exceed operating expenses 333 and payment of principal and interest on debt within 4 years. 334 5.Estimated capital and operational costs and revenues for 335 the first 4 years. 336 6.Projected network modernization and technological 337 upgrade plans, including estimated costs. 338 (d)After making specific findings regarding the factors in 339 paragraphs (b) and (c), The governmental entity may authorize 340 providing a communications service by a majority recorded vote 341 and by resolution, ordinance, or other formal means of adoption. 342 (e)1.The governing body of a governmental entity may issue 343 one or more bonds to finance the capital costs for facilities to 344 provide a communications service. However: 345 1.A governmental entity may only pledge revenues in 346 support of the issuance of any bond to finance providing a 347 communications service: 348 a.Within the county in which the governmental entity is 349 located; 350 b.Within an area in which the governmental entity provides 351 electric service outside its home county under an electric 352 service territorial agreement approved by the Public Service 353 Commission before the effective date of this act; or 354 c.If the governmental entity is a municipality or special 355 district, within its corporate limits or in an area in which the 356 municipality or special district provides water, wastewater, 357 electric, or natural gas service, or within an urban service 358 area designated in a comprehensive plan, whichever is larger, 359 unless the municipality or special district obtains the consent 360 by formal action of the governmental entity within the 361 boundaries of which the municipality or special district 362 proposes to provide service. For consent to be effective, any 363 governmental entity from which consent is sought shall be 364 located within the county in which the governmental entity is 365 located or that county. 366 2.Revenue bonds issued in order to finance providing a 367 communications service are not subject to the approval of the 368 electors if the revenue bonds mature within 15 years. Revenue 369 bonds issued to finance providing a communications service that 370 does not mature within 15 years must be approved by the 371 electors. The election must be conducted as specified in chapter 372 100. 373 (k)The governmental entity shall conduct an annual review 374 at a formal public meeting to consider the progress the 375 governmental entity is making toward reaching its business plan 376 goals and objectives for providing communication services. At 377 the public meeting the governmental entity shall review the 378 related revenues, operating expenses, and payment of interest on 379 debt. 380 (l)If, after 4 years following the initiation of the 381 provision of communications services by a governmental entity or 382 4 years after the effective date of this act, whichever is 383 later, revenues do not exceed operating expenses and payment of 384 principal and interest on the debt for a governmental entitys 385 provision of communications services, no later than 60 days 386 following the end of the 4-year period a governmental entity 387 shall hold a public hearing at which the governmental entity 388 shall do at least one of the following: 389 1.Approve a plan to cease providing communications 390 services; 391 2.Approve a plan to dispose of the system the governmental 392 entity is using to provide communications services and, 393 accordingly, to cease providing communications services; 394 3.Approve a plan to create a partnership with a private 395 entity in order to achieve operations in which revenues exceed 396 operating expenses and payment of principal and interest on 397 debt; or 398 4.Approve the continuing provision of communications 399 services by a majority vote of the governing body of the 400 governing authority. 401 (4)(a)If a governmental entity was providing, as of April 402 1, 2005, advanced services, cable services, or 403 telecommunications services, then it is not required to comply 404 with paragraph (2)(a), paragraph (2)(b), paragraph (2)(c), 405 paragraph (2)(d), sub-subparagraph (2)(e)1.c., paragraph (2)(f), 406 or paragraph (2)(k) in order to continue to provide advanced 407 services, cable services, or telecommunications services, 408 respectively, but it must comply with and be subject to all 409 other provisions of this section. 410 (b)If a governmental entity, as of April 1, 2005, had 411 issued debt pledging revenues from an advanced service, cable 412 service, or telecommunications service, then it is not required 413 to comply with paragraph (2)(a), paragraph (2)(b), paragraph 414 (2)(c), paragraph (2)(d), sub-subparagraph (2)(e)1.c., paragraph 415 (2)(f), or paragraph (2)(k) in order to provide advanced 416 services, cable services, or telecommunications services, 417 respectively, but it must comply with and be subject to all 418 other provisions of this section. 419 (c)If a governmental entity, as of April 1, 2005, has 420 purchased equipment specifically for the provisioning of 421 advanced service, cable service, or telecommunication service, 422 and, as of May 6, 2005, has a population of less than 7,500, and 423 has authorized by formal action the providing of an advanced 424 service, cable service, or telecommunication service, then it is 425 not required to comply with paragraph (2)(a), paragraph (2)(b), 426 paragraph (2)(c), paragraph (2)(d), sub-subparagraph (2)(e)1.c., 427 paragraph (2)(f), or paragraph (2)(k) in order to provide 428 advanced service, cable service, or telecommunication service, 429 respectively, but it must comply with and be subject to all 430 other provisions of this section. 431 432 This subsection does not relieve a governmental entity from 433 complying with subsection (5). 434 (6)To ensure the safe and secure transportation of 435 passengers and freight through an airport facility, as defined 436 in s. 159.27(17), an airport authority or other governmental 437 entity that provides or is proposing to provide communications 438 services only within the boundaries of its airport layout plan, 439 as defined in s. 333.01(6), to subscribers which are integral 440 and essential to the safe and secure transportation of 441 passengers and freight through the airport facility, is exempt 442 from this section. An airport authority or other governmental 443 entity that provides or is proposing to provide shared-tenant 444 service under s. 364.339, but not dial tone enabling subscribers 445 to complete calls outside the airport layout plan, to one or 446 more subscribers within its airport layout plan which are not 447 integral and essential to the safe and secure transportation of 448 passengers and freight through the airport facility is exempt 449 from this section. An airport authority or other governmental 450 entity that provides or is proposing to provide communications 451 services to one or more subscribers within its airport layout 452 plan which are not integral and essential to the safe and secure 453 transportation of passengers and freight through the airport 454 facility, or to one or more subscribers outside its airport 455 layout plan, is not exempt from this section. By way of example 456 and not limitation, the integral, essential subscribers may 457 include airlines and emergency service entities, and the 458 nonintegral, nonessential subscribers may include retail shops, 459 restaurants, hotels, or rental car companies. 460 Section 7.This act shall take effect July 1, 2022.