State ex rel. Utilities Operating Co. v. Mason

172 So. 2d 225, 58 P.U.R.3d 101, 1964 Fla. LEXIS 2356
CourtSupreme Court of Florida
DecidedJuly 15, 1964
DocketNo. 32992
StatusPublished
Cited by2 cases

This text of 172 So. 2d 225 (State ex rel. Utilities Operating Co. v. Mason) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Utilities Operating Co. v. Mason, 172 So. 2d 225, 58 P.U.R.3d 101, 1964 Fla. LEXIS 2356 (Fla. 1964).

Opinions

O’CONNELL, Justice.

The relator, a public utility operating in Broward County, Florida, petitioned this Court for writ of mandamus directed to the members of the Florida Public Utilities Commission, the members of the Board of County Commissioners of Broward County, and the City of Plantation, Florida.

We issued an alternative writ of mandamus. Thereupon, the City of Plantation, referred to herein as the City, and the Florida Public Utilities Commission, referred to herein as the Commission, filed motions to quash and answers. The relator then filed its motion for peremptory writ notwithstanding the answers and motions of the respondents.

The Board of County Commissioners of Broward County has filed no brief or pleadings in response to the alternative writ.

It is necessary to skeletonize the pertinent facts that provoked this cause.

Following enactment of Chapter 367, F.S. A. by the 1959 Legislature, the Board of County Commissioners of Broward County, on September 25, 1959, adopted an appropriate resolution making said county subject to the provisions of that act, which is called the “Water and Sewer System Regulatory Law.”

Thereafter, relator complied with the requirements of Chapter 367, and the Commission issued to it three certificates of public convenience for operation of sewer and water systems, both within the corporate limits of the City and in the unincorporated area of Broward County.

As a prerequisite to obtaining these certificates the relator filed with the Commission the fair value engineering report required by § 367.12. This report showed that the relator Utility, as of September 25, 1959, had received $1,318,488.33 as contributions in aid of construction. These contributions were included in the engineering report as a part of the fair value of the relator’s property used and useful in the public service. The contributions were made by developers and builders, not by relator’s customers. Only a portion of the contributions related to that part of the relator’s system serving the City.

Thereafter, relator sought and received from the Commission an increase in its rates. This order is the subject of another proceeding now pending in this Court.

The 1963 Legislature then adopted Chapter 63-1028, Chapter 63-1193, and Chapter 63-1805, all of which will be examined in detail later herein.

Subsequently, on September 30, 1963, after the effective date of each of the three Acts, the relator pursuant to § 367.14(2), submitted to the Commission a written notice of proposed increase in rates for sewer service inside and outside the limits of the City, and requested the Commission to set the matter for public hearing pursuant to Chapter 367.

On October 2, 1963, the Commission, by letter, advised the relator that because of the provisions of the three Acts of the 1963 Legislature it (the Commission) would not exercise any jurisdiction over water and sewer rates in Broward County “until there is some judicial determination concerning these many conflicting and confusing Acts of the 1963 Legislature.” By said letter the Commission refused to accept and act on the relator’s proposed increase in rates.

Meanwhile, on October 1, 1963, the City delivered to relator a letter notifying it that, under authority of Chapter 63-1805, the City would, on October 31, 1963, hold a hearing for the purpose of determining [227]*227rates to be thereafter charged for services rendered by relator in the City.

This proceeding was instituted immediately thereafter.

The first question presented is the standing of relator to bring this proceeding in mandamus in this Court.

We have no difficulty in determining that relator has standing to bring this proceeding; that it may be brought originally in this Court; and that mandamus is a proper remedy. State ex rel. Cochran v. Lewis, 1935, 118 Fla. 536, 159 So. 792, 99 A.L.R. 123; State ex rel. Triay v. Burr, 1920, 79 Fla. 290, 84 So. 61.

Relator contends that the three Acts of the 1963 Legislature, each of which in some way sought to vary the jurisdiction of the Commission over the Utility and to provide a different basis for determining rates to be charged by the Utility, are invalid, and that the Commission still has jurisdiction over it under Chapter 367, F.S.A.

We go then to an examination of the three 1963 Acts and a determination of their validity. We shall consider them separately-

Chapter 63-1028 is a population act passed as a general act of the legislature. It is a comprehensive act that purports to give to the Commission certain jurisdiction, powers and duties over water and sewer utility companies in counties having a population " * * * of not less than 200,000 and not more than 260,000 or not less than 300,000 and not more than 350,000 according to the latest official decennial census =|: * * »

Among other things, this Act provides that in determining the value of property of such a utility used and useful in the pub-lice service, the Commission, for rate-making purposes, shall not include any contributions in aid of construction.

Relator contends that this Act is invalid because: (a) it is a local or special act (passed in guise of a general act) enacted in violation of Section 21, Article III, Florida Constitution, F.S.A., for the reason that it contains no provisions for referendum, and notice of intention was not published as required by said section of the constitution; and (b) because it denies the relator equal protection of the laws and deprives the relator of property without due process of law in violation of both the state and Federal Constitutions, insofar as it denies relator fair return and depreciation on that part of its property contributed to it in aid of construction.

This statute is obviously invalid because it is a special or local act and was not passed in accordance with the requirement of § 21, Art. Ill, Fla.Const., supra.

Reference to the Florida State and Federal Census, 1960, Vol. 3, Fla.Statutes, 1961, pp. 4668 and 4669, reveals that only Palm Beach County, population 228,106, has not less than 200,000 and not more than 260,000 population, and only Broward County, population 333,946, has not less than 300,000 nor more than 350,000 population. Further, the census shows that Orange County, with a population of 263,540, is excluded from the provisions of the statute by the arrangement of the population brackets.

Population Acts, such as the one now under discussion, have been upheld as valid general acts only “ * * * where there is a substantial difference in population, and a statutory classification on a population basis is reasonably related to the purposes to be effected by the act and is grounded on such difference in population and not on mere arbitrary lines of demarcation * * County of Dade v. City of North Miami Beach, Fla.1959, 109 So.2d 362; Crandon v. Hazlett, 1946, 157 Fla. 574, 26 So.2d 638, and Waybright v. Duval County, 1940, 142 Fla. 875, 196 So. 430. A general law which fails to operate uniformly throughout the state is invalid unless it contains a classification predicated upon a reasonable basis. State ex rel. Limpus v. Newell, Fla.1956, 85 So.2d 124.

[228]*228The respondents furnish no argument or reason showing that the classification on population is reasonably related to the purposes of the Act.

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172 So. 2d 225, 58 P.U.R.3d 101, 1964 Fla. LEXIS 2356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-utilities-operating-co-v-mason-fla-1964.