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House Bill 1323e1

HB 1323, First Engrossed 1 A bill to be entitled 2 An act relating to water protection; amending 3 s. 403.8532, F.S.; authorizing the Department 4 of Environmental Protection to make loans to 5 certain public water systems; authorizing use 6 of certain federal Safe Drinking Water Act 7 funds for specified purposes; providing loan 8 criteria, requirements, and limitations; 9 providing for department rules; requiring an 10 annual report; providing for audits; providing 11 for loan service fees; providing for 12 disposition of funds; providing for default; 13 providing penalties for delinquent payments or 14 noncompliance with loan terms and conditions; 15 amending s. 403.860, F.S.; authorizing 16 administrative penalties for failure of a 17 public water system to comply with the Florida 18 Safe Drinking Water Act; providing for rules 19 and procedures; creating s. 403.8615, F.S.; 20 requiring certain new water systems to 21 demonstrate specified technical, managerial, 22 and financial capabilities; creating s. 23 403.865, F.S.; providing legislative findings 24 and intent relating to operation of water and 25 wastewater treatment facilities by qualified 26 personnel; creating s. 403.866, F.S.; providing 27 definitions; creating s. 403.867, F.S.; 28 requiring such operators to be licensed by the 29 department; creating s. 403.868, F.S.; 30 authorizing a utility to have more stringent 31 requirements; creating s. 403.869, F.S.; 1 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 authorizing department rules; creating s. 2 403.87, F.S.; authorizing appointment of a 3 technical advisory council for water and 4 domestic wastewater operator certification; 5 creating s. 403.871, F.S.; providing for 6 application and examination, reexamination, 7 licensure, renewal, and recordmaking and 8 recordkeeping fees; providing for disposition 9 thereof; creating s. 403.872, F.S.; specifying 10 requirements for licensure; creating s. 11 403.873, F.S.; providing for biennial license 12 renewal; creating s. 403.874, F.S.; providing 13 for inactive status and reactivation of 14 inactive licenses; creating s. 403.875, F.S.; 15 specifying prohibited acts; providing a 16 penalty; creating s. 403.876, F.S.; requiring 17 the department to establish grounds for 18 disciplinary actions; providing for an 19 administrative fine; providing for transfer of 20 powers and duties relating to regulation of 21 operators of water treatment plants and 22 domestic wastewater treatment plants from the 23 Department of Business and Professional 24 Regulation to the Department of Environmental 25 Protection; providing for continuation of 26 certain rules; providing a grandfather 27 provision for operators certified prior to the 28 transfer; amending s. 403.087, F.S.; increasing 29 the maximum term for issuance of permits for 30 stationary water pollution sources; specifying 31 conditions for renewing operation permits for 2 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 domestic wastewater treatment facilities for an 2 extended term at the same fee; requiring the 3 department to keep certain records; amending s. 4 403.0871, F.S.; correcting cross references; 5 amending s. 403.0872; clarifying air pollution 6 fee deadline; repealing ss. 468.540, 468.541, 7 468.542, 468.543, 468.544, 468.545, 468.546, 8 468.547, 468.548, 468.549, 468.550, 468.551, 9 and 468.552, F.S., relating to water and 10 wastewater treatment plant operator 11 certification by the Department of Business and 12 Professional Regulation; providing an 13 appropriation; amending s. 367.021, F.S.; 14 defining "environmental compliance costs; 15 amending s. 367.022, F.S.; providing regulatory 16 exemptions for nonpotable irrigation water, 17 under certain circumstances; amending s. 18 367.081, F.S.; providing for recovery of 19 environmental compliance costs; amending s. 20 367.171, F.S.; providing application of the 21 act; amending s. 367.022; deregulating bulk 22 supplies of water for sale for resale; amending 23 s. 193.625, F.S. to allow high-water recharge 24 assessments when lands will be used primarily 25 for bona fide high-water recharge purposes for 26 a period of at least 5 years; amending s. 27 403.1835, F.S.; expanding the sewage treatment 28 facilities revolving loan program to provide 29 loans to local governmental agencies for 30 construction of stormwater management systems; 31 defining "stormwater management system"; 3 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 providing additional responsibilities of local 2 governments under the program; providing 3 priority for certain stormwater management 4 system projects; providing for funding; 5 providing an effective date. 6 7 Be It Enacted by the Legislature of the State of Florida: 8 9 Section 1. Section 403.8532, Florida Statutes, is 10 amended to read: 11 403.8532 Drinking water state revolving loan fund; 12 use; rules.-- 13 (1) The purpose of this section is to assist in 14 implementing the legislative declarations of public policy 15 contained in ss. 403.021 and 403.851 by establishing 16 infrastructure financing, technical assistance, and source 17 water protection programs to assist public drinking water 18 systems in achieving and maintaining compliance with the 19 Florida Safe Drinking Water Act and the federal Safe Drinking 20 Water Act, as amended, and to conserve and protect the quality 21 of waters of the state. 22 (2) For purposes of this section, the term: 23 (a) "Financially disadvantaged community" means the 24 service area of a project to be served by a public water 25 system that meets criteria established by department rule and 26 in accordance with federal guidance. 27 (b) "Local governmental agency" means any 28 municipality, county, district, or authority, or any agency 29 thereof, or a combination of two or more of the foregoing 30 acting jointly in connection with a project, having 31 jurisdiction over a public water system. 4 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (c) "Public water system" means all facilities, 2 including land, necessary for the treatment and distribution 3 of water for human consumption and includes public water 4 systems as defined in s. 403.852 and as otherwise defined in 5 the federal Safe Drinking Water Act, as amended. Such systems 6 may be publicly owned, privately owned, investor-owned, or 7 cooperatively held. 8 (d) "Small public water system" means a public water 9 system which regularly serves fewer than 10,000 people. 10 (3) The department is authorized to make loans to 11 community water systems, nonprofit noncommunity water systems, 12 and nonprofit nontransient noncommunity water systems to 13 assist them in planning, designing, and constructing public 14 water systems. The department is authorized to provide loan 15 guarantees, to purchase loan insurance, and to refinance local 16 debt through the issue of new loans for projects approved by 17 the department. Public water systems are authorized to borrow 18 funds made available pursuant to this section and may pledge 19 any revenues or other adequate security available to them to 20 repay any funds borrowed. The department shall administer 21 loans so that amounts credited to the Drinking Water Revolving 22 Loan Trust Fund in any fiscal year are reserved for the 23 following purposes: 24 (a) At least 15 percent to qualifying small public 25 water systems. 26 (b) Up to 15 percent to qualifying financially 27 disadvantaged communities. 28 (c) However, if an insufficient number of the projects 29 for which funds are reserved under this paragraph have been 30 submitted to the department at the time the funding priority 31 list authorized under this section is adopted, the reservation 5 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 of these funds shall no longer apply. The department may 2 award the unreserved funds as otherwise provided in this 3 section. 4 (4) The department is authorized, subject to 5 legislative appropriation authority and authorization of 6 positions, to use funds from the annual capitalization grant 7 for activities authorized under the federal Safe Drinking 8 Water Act, as amended, such as: 9 (a) Program administration. 10 (b) Technical assistance. 11 (c) Source water protection program development and 12 implementation, including wellhead and aquifer protection 13 programs, programs to alleviate water quality and water supply 14 problems associated with saltwater intrusion, programs to 15 identify, monitor and assess source waters, and contaminant 16 source inventories. 17 (d) Capacity development and financial assessment 18 program development and administration. 19 (e) The costs of establishing and administering an 20 operator certification program for drinking water treatment 21 plant operators, to the extent such costs cannot be paid for 22 from fees. 23 24 This subsection does not limit the department's ability to 25 apply for and receive other funds made available for specific 26 purposes under the federal Safe Drinking Water Act, as 27 amended. 28 (5) The term of loans made pursuant to this section 29 shall not exceed 30 years. The interest rate on such loans 30 shall be no greater than that paid on the last bonds sold 31 pursuant to s. 14, Art. VII of the State Constitution. 6 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (6)(a) The department may provide financial assistance 2 to financially disadvantaged communities for the purpose of 3 planning, designing, and constructing public water systems. 4 Such assistance may include the forgiveness of loan principal. 5 (b) The department shall establish by rule the 6 criteria for determining whether a public water system serves 7 a financially disadvantaged community. Such criteria shall be 8 based on the median household income of the service population 9 or other reliably documented measures of disadvantaged status. 10 (7) To the extent not allowed by federal law, the 11 department shall not provide financial assistance for projects 12 primarily intended to serve future growth. 13 (8) In order to ensure that public moneys are managed 14 in an equitable, prudent, and cost-effective manner, the total 15 amount of money loaned to any public water system during a 16 fiscal year shall be no more than 25 percent of the total 17 funds available for making loans during that year. The minimum 18 amount of a loan shall be $75,000. 19 (9) The department is authorized to make rules 20 necessary to carry out the purposes of this section and the 21 federal Safe Drinking Water Act, as amended. Such rules shall: 22 (a) Set forth a priority system for loans based on 23 public health considerations, compliance with state and 24 federal requirements relating to public drinking water 25 systems, and affordability. 26 (b) Establish the requirements for the award and 27 repayment of financial assistance. 28 (c) Require adequate security to ensure that each loan 29 recipient can meet its loan repayment requirements. 30 31 7 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (d) Require each project receiving financial 2 assistance to be cost-effective, environmentally sound, 3 implementable, and self-supporting. 4 (e) Implement other provisions of the federal Safe 5 Drinking Water Act, as amended. 6 (10) The department shall prepare a report at the end 7 of each fiscal year, detailing the financial assistance 8 provided under this section, service fees collected, interest 9 earned, and loans outstanding. 10 (11) Prior to approval of a loan, the local government 11 or public water system shall, at a minimum: 12 (a) Provide a repayment schedule. 13 (b) Submit evidence of the permittability or 14 implementability of the project proposed for financial 15 assistance. 16 (c) Submit plans and specifications, biddable contract 17 documents, or other documentation of appropriate procurement 18 of goods and services. 19 (d) Provide assurance that records will be kept using 20 accepted government accounting standards and that the 21 department and the Auditor General, or their agents will have 22 access to all records pertaining to the loan. 23 (e) Provide assurance that the public water system 24 will be properly operated and maintained in order to achieve 25 or maintain compliance with the requirements of the Florida 26 Safe Drinking Water Act and the federal Safe Drinking Water 27 Act, as amended. 28 (f) Document that the public water system will be 29 self-supporting. 30 (12) The department may conduct an audit of the loan 31 project upon completion, or may require that a separate 8 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 project audit, prepared by an independent certified public 2 accountant, be submitted. 3 (13) The department may require reasonable service 4 fees on loans made to public water systems to ensure that the 5 Drinking Water Revolving Loan Trust Fund will be operated in 6 perpetuity and to implement the purposes authorized under this 7 section. Service fees shall not be less than 2 percent nor 8 greater than 4 percent of the loan amount exclusive of the 9 service fee. Service fee revenues shall be deposited into the 10 department's Grants and Donations Trust Fund. The fee 11 revenues, and interest earnings thereon, shall be used 12 exclusively to carry out the purposes of this section. 13 (14) All moneys available for financial assistance 14 under this section shall be deposited in the Drinking Water 15 Revolving Loan Trust Fund exclusively to carry out the 16 purposes of this section. Any funds therein which are not 17 needed on an immediate basis for financial assistance shall be 18 invested pursuant to s. 215.49. State revolving fund 19 capitalization grants awarded by the Federal Government, state 20 matching funds, and investment earnings thereon shall be 21 deposited into the fund. The principal and interest of all 22 loans repaid and investment earnings thereon shall be 23 deposited into the fund. 24 (15)(a) If a local governmental agency defaults under 25 the terms of its loan agreement, the department shall so 26 certify to the Comptroller, who shall forward the amount 27 delinquent to the department from any unobligated funds due to 28 the local governmental agency under any revenue-sharing or 29 tax-sharing fund established by the state, except as otherwise 30 provided by the State Constitution. Certification of 31 delinquency shall not limit the department from pursuing other 9 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 remedies available for default on a loan, including 2 accelerating loan repayments, eliminating all or part of the 3 interest rate subsidy on the loan, and court appointment of a 4 receiver to manage the public water system. 5 (b) If a public water system owned by a person other 6 than a local governmental agency defaults under the terms of 7 its loan agreement, the department may take all actions 8 available under law to remedy the default. 9 (c) The department may impose a penalty for delinquent 10 loan payments in the amount of 6 percent of the amount due, in 11 addition to charging the cost to handle and process the debt. 12 Penalty interest shall accrue on any amount due and payable 13 beginning on the 30th day following the date upon which 14 payment is due. 15 (16) The department is authorized to terminate or 16 rescind a financial assistance agreement when the recipient 17 fails to comply with the terms and conditions of the 18 agreement. 19 (1) If federal funds become available for a drinking 20 water state revolving loan fund, the Department of 21 Environmental Protection may use the funds to make grants and 22 loans to the owners of public water systems, as defined in s. 23 403.852(2), and as otherwise authorized by the law making the 24 funds available. The department may adopt rules necessary to 25 satisfy requirements to receive these federal funds and to 26 carry out the provisions of this subsection. The rules shall 27 include, but not be limited to, a priority system based on 28 public health considerations, system type, and population 29 served; requirements for proper system operation and 30 maintenance; and, where applicable, consideration of ability 31 to repay loans. 10 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (2) The department shall, by January 1, 1995, report 2 to the Legislature the status of any drinking water state 3 revolving fund program authorized by federal law and shall 4 include in the report recommendations as to appropriate and 5 necessary statutory changes to govern its implementation. 6 Section 2. Subsection (6) of section 403.860, Florida 7 Statutes, is renumbered as subsection (7), and a new 8 subsection (6) is added to said section to read: 9 403.860 Penalties and remedies.-- 10 (6) The department is authorized to assess 11 administrative penalties for failure to comply with the 12 requirements of the Florida Safe Drinking Water Act. 13 (a)1. Prior to the assessment of an administrative 14 penalty, the department shall provide the public water system 15 a reasonable amount of time to complete the corrective action 16 necessary to bring the system back into compliance. 17 (b)1. At the time of assessment of the administrative 18 penalty, the department shall give the public water system 19 notice setting forth the amount assessed, the specific 20 provision of law, rule, or order alleged to be violated, the 21 facts alleged to constitute the violation, the corrective 22 action needed to bring the party into compliance, and the 23 rights available under chapter 120 to challenge the 24 assessment. The assessment shall be final and effective, 25 unless an administrative hearing is requested within 20 days 26 after receipt of the written notice, and shall be enforceable 27 pursuant to s. 120.69. 28 2. The department shall adopt rules to implement the 29 provisions of this subsection. The rules shall establish 30 specific procedures for implementing the penalties and shall 31 identify assessment amounts. The rules shall authorize the 11 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 application of adjustment factors for the purpose of 2 increasing or decreasing the total amount assessed subsequent 3 to initial assessment. Such factors may include the lack or 4 degree of good faith to comply with the requirements, the lack 5 or degree of willfulness or negligence on the part of the 6 owner, the compliance history of the public water system, the 7 economic benefit derived by the failure to comply with the 8 requirements, and the ability to pay. 9 (b) The amount of the penalties assessed shall be as 10 follows: 11 1. In the case of a public water system serving a 12 population of more than 10,000, the penalty shall be not less 13 than $1,000 per day per violation. 14 2. In the case of any other public water system, the 15 penalty shall be adequate to ensure compliance. 16 17 However, the total amount of the penalty assessed on any 18 public water system may not exceed $10,000 per violation. 19 Section 3. Section 403.8615, Florida Statutes, is 20 created to read: 21 403.8615 Determination of capability and capacity 22 development.-- 23 (1) The department shall require all new community 24 water systems and new nontransient, noncommunity water systems 25 seeking to commence operations after October 1, 1999, to 26 demonstrate the technical, managerial, and financial 27 capabilities to comply with national primary drinking water 28 regulations as required by the federal Safe Drinking Water 29 Act, as amended. The department shall establish by rule, 30 consistent with any federal guidance on capacity development, 31 the criteria for determining technical, managerial, and 12 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 financial capabilities. At a minimum, such water systems 2 must: 3 (a) Employ or contract for the services of a certified 4 operator, unless the department has waived this requirement 5 pursuant to s. 403.854(5). 6 (b) Demonstrate the capabilities to conduct required 7 monitoring and reporting programs and maintain appropriate 8 records of such monitoring. 9 (c) Demonstrate financial soundness through the 10 posting of a bond, creation of a reserve, documentation of an 11 unreserved revenue source, or other appropriate means 12 established by department rule. 13 (2) If the department determines that such a water 14 system can not demonstrate technical, managerial, or financial 15 capability, a permit may not be issued for that system 16 pursuant to s. 403.861(7) until the water system has been 17 determined to have the required capabilities. 18 Section 4. Section 403.865, Florida Statutes, is 19 created to read: 20 403.865 Purpose.--The Legislature finds that the 21 threat to the public health and the environment from the 22 operation of water and wastewater treatment plants mandates 23 that qualified personnel operate these facilities. It is the 24 legislative intent that any person who performs the duties of 25 an operator and who falls below minimum competency or who 26 otherwise presents a danger to the public be prohibited from 27 operating a plant or system in this state. 28 Section 5. Section 403.866, Florida Statutes, is 29 created to read: 30 403.866 Definitions.--As used in ss. 403.865-403.876, 31 the term: 13 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (1) "Domestic wastewater collection system" means 2 pipelines or conduits, pumping stations, and force mains and 3 all other structures, devices, appurtenances, and facilities 4 used for collecting or conducting wastes to an ultimate point 5 for treatment or disposal. 6 (2) "Domestic wastewater treatment plant" means any 7 plant or other works used for the purpose of treating, 8 stabilizing, or holding domestic wastes. 9 (3) "Operator" means any person, including the owner, 10 who is in onsite charge of the actual operation, supervision, 11 and maintenance of a water treatment plant or domestic 12 wastewater treatment plant and includes the person in onsite 13 charge of a shift or period of operation during any part of 14 the day. 15 (4) "Public water system" has the same meaning as it 16 has in s. 403.852. 17 (5) "Water distribution system" means those components 18 of a public water system used in conveying water for human 19 consumption from the water plant to the consumer's property, 20 including pipelines, conduits, pumping stations, and all other 21 structures, devices, appurtenances, and facilities used 22 specifically for such purpose. 23 (6) "Water treatment plant" means those components of 24 a public water system used in collection, treatment, and 25 storage of water for human consumption, whether or not such 26 components are under the control of the operator of such 27 system. 28 Section 6. Section 403.867, Florida Statutes, is 29 created to read: 30 403.867 License required.--A person may not perform 31 the duties of an operator of a water treatment plant or a 14 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 domestic wastewater treatment plant unless he or she holds a 2 current operator's license issued by the department. 3 Section 7. Section 403.868, Florida Statutes, is 4 created to read: 5 403.868 Requirements by a utility.--A utility may have 6 more stringent requirements than set by law, including 7 certification requirements for water distribution systems and 8 domestic wastewater collection systems operations, except that 9 a utility may not require a licensed contractor, as defined in 10 s. 489.105(3) to have any additional license for work in water 11 distribution systems or domestic wastewater collection 12 systems. 13 Section 8. Section 403.869, Florida Statutes, is 14 created to read: 15 403.869 Authority to adopt rules.--The department may 16 adopt rules necessary to carry out the provisions of ss. 17 403.865-403.876. 18 Section 9. Section 403.87, Florida Statutes, is 19 created to read: 20 403.87 Technical advisory council for water and 21 domestic wastewater operator certification.--Within 90 days of 22 the effective date of this act, the secretary of the 23 department shall appoint a technical advisory council as 24 necessary for the purposes of ss. 403.865-403.876. The 25 technical advisory council shall meet upon the request of the 26 chair, upon request of a majority of its members, or upon 27 request of the secretary. Members shall provide for their own 28 expenses. The council shall consist of not less than five 29 persons who, collectively, are expert in domestic wastewater 30 and drinking water treatment, facilities operation, public 31 health and environmental protection, including at least one 15 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 licensed wastewater treatment plant operator and one licensed 2 water treatment plant operator. 3 Section 10. Section 403.871, Florida Statutes, is 4 created to read: 5 403.871 Fees.--The department shall, by rule, 6 establish fees to be paid for application and examination, 7 reexamination, licensing and renewal, renewal of an inactive 8 license, reactivation of an inactive license, recordmaking, 9 and recordkeeping. The department shall establish fees 10 adequate to administer and implement ss. 403.865-403.876. 11 (1) The application fee may not exceed $100 and is not 12 refundable. 13 (2) The renewal fee may not exceed $100 and is not 14 refundable. 15 (3) All fees collected under this section must be 16 deposited into the Water Quality Assurance Trust Fund. The 17 fees shall be used exclusively to implement the provisions of 18 ss. 403.865-403.876. 19 Section 11. Section 403.872, Florida Statutes, is 20 created to read: 21 403.872 Requirements for licensure.-- 22 (1) Any person desiring to be licensed as a water 23 treatment plant operator or a domestic wastewater treatment 24 plant operator must apply to the department to take the 25 licensure examination. 26 (2) The department shall examine the qualifications of 27 any applicant who meets the criteria established by the 28 department for licensure, submits a completed application, and 29 remits the required fee. 30 (3) The department shall license as an operator any 31 applicant who has passed the examination under this section. 16 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (4) The department shall establish, by rule, the 2 criteria for licensure, including, but not limited to, a 3 requirement of a high school diploma or its equivalent, a 4 training course approved by the department, and onsite 5 operational experience. 6 (5) The department may also include a requirement that 7 an operator must not be the subject of a disciplinary or 8 enforcement action in another state at the time of application 9 for licensure in this state. 10 Section 12. Section 403.873, Florida Statutes, is 11 created to read: 12 403.873 Renewal of license.-- 13 (1) The department shall renew a license upon receipt 14 of the renewal application and fee and in accordance with the 15 other provisions of ss. 403.865-403.876. 16 (2) The department shall adopt rules establishing a 17 procedure for the biennial renewal of licenses. 18 Section 13. Section 403.874, Florida Statutes, is 19 created to read: 20 403.874 Inactive status.-- 21 (1) The department shall reactivate an inactive 22 license upon receipt of the reactivation application and fee. 23 (2) The department shall adopt rules relating to 24 licenses that have become inactive and for the reactivation of 25 inactive licenses. 26 Section 14. Section 403.875, Florida Statutes, is 27 created to read: 28 403.875 Prohibitions; penalties.-- 29 (1) A person may not: 30 31 17 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (a) Perform the duties of an operator of a water 2 treatment plant or domestic wastewater treatment plant unless 3 he or she is licensed under ss. 403.865-403.876. 4 (b) Use the name or title "water treatment plant 5 operator" or "domestic wastewater treatment plant operator" or 6 any other words, letters, abbreviations, or insignia 7 indicating or implying that he or she is an operator, or 8 otherwise holds himself or herself out as an operator, unless 9 the person is the holder of a valid license issued under ss. 10 403.865-403.876. 11 (c) Present as his or her own the license of another. 12 (d) Knowingly give false or forged evidence to the 13 department. 14 (e) Use or attempt to use a license that has been 15 suspended, revoked, or placed on inactive or delinquent 16 status. 17 (f) Employ unlicensed persons to perform the duties of 18 an operator of a water treatment or domestic wastewater 19 treatment plant. 20 (g) Conceal information relative to any violation of 21 ss. 403.865-403.876. 22 (2) Any person who violates any provision of this 23 section commits a misdemeanor of the first degree, punishable 24 as provided in s. 775.082 or s. 775.083. 25 Section 15. Section 403.876, Florida Statutes, is 26 created to read: 27 403.876 Grounds for disciplinary action.-- 28 (1) The department shall establish, by rule, the 29 grounds for taking disciplinary action, including suspending 30 or revoking a valid license, placing a licensee on probation, 31 refusing to issue a license, refusing to renew a license, or 18 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 refusing to reactivate a license, and the imposition of an 2 administrative fine, not to exceed $1,000 per count or 3 offense. The fines collected under this section shall be 4 deposited into the Water Quality Assurance Trust Fund. 5 (2) The department shall conduct disciplinary 6 proceedings in accordance with chapter 120. 7 (3) The department shall reissue the license of a 8 disciplined operator when that operator has complied with all 9 terms and conditions of the department's final order. 10 Section 16. All powers, duties and functions, rules, 11 records, personnel, property, and unexpended balances of 12 appropriations, allocations, or other funds of the Department 13 of Business and Professional Regulation related to the 14 classification and regulation of operators of water treatment 15 plants and domestic wastewater treatment plants are 16 transferred by a type two transfer, as defined in s. 20.06(2), 17 Florida Statutes, from the Department of Business and 18 Professional Regulation to the Department of Environmental 19 Protection. However, in no event shall the Department of 20 Business and Professional Regulation transfer fewer than 6 21 positions, along with sufficient supporting budget, to the 22 Department of Environmental Protection. The 6 positions must 23 be of paygrades at least equivalent to those positions 24 transferred by the Department of Environmental Protection to 25 the Department of Business and Professional Regulation when 26 the operator certification program was transferred in 1992. 27 The rules of the Department of Business and Professional 28 Regulation that regulate plant operators remain in effect 29 until the Department of Environmental Protection has adopted 30 rules to supersede those of the Department of Professional and 31 Business Regulation. 19 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 Section 17. Operators certified by the Department of 2 Professional and Business Regulation as of the effective date 3 of this act shall be deemed to be licensed by the Department 4 of Environmental Protection until the expiration of the term 5 of their certification. 6 Section 18. Subsections (1) and (2) of section 7 403.087, Florida Statutes, are amended, present subsections 8 (3) through (8) of that section are redesignated as 9 subsections (4) through (9), respectively, and new subsection 10 (3) is added to that section to read: 11 403.087 Permits; general issuance; denial; revocation; 12 prohibition; penalty.-- 13 (1) A No stationary installation that is which will 14 reasonably be expected to be a source of air or water 15 pollution must not shall be operated, maintained, constructed, 16 expanded, or modified without an appropriate and currently 17 valid permit issued by the department, unless exempted by 18 department rule. In no event shall a permit for a water 19 pollution source be issued for a term of more than 10 5 years, 20 nor and in no event may an operation permit issued after July 21 1, 1992, for a major source of air pollution have a fixed term 22 of more than 5 years. However, upon expiration, a new permit 23 may be issued by the department in accordance with this 24 chapter act and the rules and regulations of the department. 25 (2) The department shall adopt, and may amend, or 26 repeal, rules, regulations, and standards for the issuance, 27 denial, modification, and revocation of permits under this 28 section. 29 (3) A renewal of an operation permit for a domestic 30 wastewater treatment facility other than a facility regulated 31 under the National Pollutant Discharge Elimination System 20 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (NPDES) Program under s. 403.0885 must be issued upon request 2 for a term of up to 10 years, for the same fee and under the 3 same conditions as a 5-year permit, in order to provide the 4 owner or operator with a financial incentive, if: 5 (a) The waters from the treatment facility are not 6 discharged to Class 1 municipal injection wells or the 7 treatment facility is not required to comply with the federal 8 standards under the Underground Injection Control program 9 under chapter 62-528 of the Florida Administrative Code; 10 (b) The treatment facility is not operating under a 11 temporary operating permit or a permit with an accompanying 12 administrative order and does not have any enforcement action 13 pending against it by the United States Environmental 14 Protection Agency, the department, or a local program approved 15 under s. 403.182; 16 (c) The treatment facility has operated under an 17 operation permit for 5 years and, for at least the preceding 2 18 years, has generally operated in conformance with the limits 19 of permitted flows and other conditions specified in the 20 permit; 21 (d) The department has reviewed the 22 discharge-monitoring reports required under department rule 23 and is satisfied that the reports are accurate; 24 (e) The treatment facility has generally met water 25 quality standards in the preceding 2 years, except for 26 violations attributable to events beyond the control of the 27 treatment plant or its operator, such as destruction of 28 equipment by fire, wind, or other abnormal events that could 29 not reasonably be expected to occur; and 30 (f) The department, or a local program approved under 31 s. 403.182, has conducted, in the preceding 12 months, an 21 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 inspection of the facility and has verified in writing to the 2 operator of the facility that it is not exceeding the 3 permitted capacity and is in substantial compliance. 4 5 The department shall keep records of the number of 10-year 6 permits applied for and the number and duration of permits 7 issued for longer than 5 years. 8 Section 19. Section 403.0871, Florida Statutes, 1996 9 Supplement, is amended to read: 10 403.0871 Florida Permit Fee Trust Fund.--There is 11 established within the department a nonlapsing trust fund to 12 be known as the "Florida Permit Fee Trust Fund." All funds 13 received from applicants for permits pursuant to ss. 161.041, 14 161.053, 161.0535, 403.087(6)(5), and 403.861(8) shall be 15 deposited in the Florida Permit Fee Trust Fund and shall be 16 used by the department with the advice and consent of the 17 Legislature to supplement appropriations and other funds 18 received by the department for the administration of its 19 responsibilities under this chapter and chapter 161. In no 20 case shall funds from the Florida Permit Fee Trust Fund be 21 used for salary increases without the approval of the 22 Legislature. 23 Section 20. Paragraph (a)10. of subsection (11) of 24 section 403.0872, Florida Statutes, 1996 Supplement, is 25 amended to read: 26 403.0872 Operation permits for major sources of air 27 pollution; annual operation license fee.--Provided that 28 program approval pursuant to 42 U.S.C. s. 7661a has been 29 received from the United States Environmental Protection 30 Agency, beginning January 2, 1995, each major source of air 31 pollution, including electrical power plants certified under 22 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 s. 403.511, must obtain from the department an operation 2 permit for a major source of air pollution under this section, 3 which is the only department operation permit for a major 4 source of air pollution required for such source. Operation 5 permits for major sources of air pollution, except general 6 permits issued pursuant to s. 403.814, must be issued in 7 accordance with the following procedures and in accordance 8 with chapter 120; however, to the extent that chapter 120 is 9 inconsistent with the provisions of this section, the 10 procedures contained in this section prevail: 11 (11) Commencing in 1993, each major source of air 12 pollution permitted to operate in this state must pay between 13 January 15 and March 1 of each year, upon written notice from 14 the department, an annual operation license fee in an amount 15 determined by department rule. The annual operation license 16 fee shall be terminated immediately in the event the United 17 States Environmental Protection Agency imposes annual fees 18 solely to implement and administer the major source 19 air-operation permit program in Florida under 40 C.F.R. s. 20 70.10(d). 21 (a) The annual fee must be assessed based upon the 22 source's previous year's emissions and must be calculated by 23 multiplying the applicable annual operation license fee factor 24 times the tons of each regulated air pollutant (except carbon 25 monoxide) allowed to be emitted per hour by specific condition 26 of the source's most recent construction or operation permit, 27 times the annual hours of operation allowed by permit 28 condition; provided, however, that: 29 7. If the department has not received the fee by 30 February 15 of the calendar year, the permittee must be sent a 31 written warning of the consequences for failing to pay the fee 23 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 by March 1. If the department has not received the fee is not 2 postmarked by March 1 of the calendar year, commencing with 3 calendar year 1997, the department shall impose, in addition 4 to the fee, a penalty of 50 percent of the amount of the fee, 5 plus interest on such amount computed in accordance with s. 6 220.807. The department may not impose such penalty or 7 interest on any amount underpaid, provided that the permittee 8 has timely remitted payment of at least 90 percent of the 9 amount determined to be due and remits full payment within 60 10 days after receipt of notice of the amount underpaid. The 11 department may waive the collection of underpayment and shall 12 not be required to refund overpayment of the fee, if the 13 amount due is less than 1 percent of the fee, up to $50. The 14 department may revoke any major air pollution source operation 15 permit if it finds that the permitholder has failed to timely 16 pay any required annual operation license fee, penalty, or 17 interest. 18 10. Notwithstanding the provisions of s. 19 403.087(6)(5)(a)4.a., authorizing air pollution construction 20 permit fees, the department may not require such fees for 21 changes or additions to a major source of air pollution 22 permitted pursuant to this section, unless the activity 23 triggers permitting requirements under Title I, Part C or Part 24 D, of the federal Clean Air Act, 42 U.S.C. ss. 7470-7514a. 25 Costs to issue and administer such permits shall be considered 26 direct and indirect costs of the major stationary source 27 air-operation permit program under s. 403.0873. The department 28 shall, however, require fees pursuant to the provisions of s. 29 403.087(6)(5)(a)4.a. for the construction of a new major 30 source of air pollution that will be subject to the permitting 31 requirements of this section once constructed and for 24 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 activities triggering permitting requirements under Title I, 2 Part C or Part D, of the federal Clean Air Act, 42 U.S.C. ss. 3 7470-7514a. 4 Section 21. Sections 468.540, 468.541, 468.542, 5 468.543, 468.544, 468.545, 468.546, 468.547, 468.548, and 6 468.552, Florida Statutes, and sections 468.549, 468.550, and 7 468.551, Florida Statutes, as amended by chapter 94-119, Laws 8 of Florida, are hereby repealed. 9 Section 22. Subsections (7) through (13) of section 10 367.021, Florida Statutes, are renumbered as subsections (8) 11 through (14), respectively, and a new subsection (7) is added 12 to said section to read: 13 367.021 Definitions.--As used in this chapter, the 14 following words or terms shall have the meanings indicated: 15 (7) "Environmental compliance costs" means all 16 reasonable expenses and a fair return on the prudent 17 investments incurred in complying with federal, state, or 18 local environmental laws, rules, regulations, orders, 19 ordinances, or resolutions, or other such requirements. The 20 commission shall be bound by the determinations, permitting, 21 and enforcement decisions of the United States Environmental 22 Protection Agency, the department of environmental protection, 23 or a water management district, or other entity with 24 jurisdiction, as to the need for, capacity of, and type of 25 facilities, including land and processes, required for 26 compliance, and the need for, capacity of, and type of 27 facilities, including land and processes, required as part of 28 any reuse system or project. 29 Section 23. Subsection (11) is added to section 30 367.022, Florida Statutes, 1996 Supplement, to read: 31 25 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 367.022 Exemptions.--The following are not subject to 2 regulation by the commission as a utility nor are they subject 3 to the provisions of this chapter, except as expressly 4 provided: 5 (11) Any person providing only non-potable water for 6 irrigation purposes in a geographic area where potable water 7 service is available from a governmentally or privately owned 8 utility or a private well. 9 Section 24. Subsection (2) of section 367.081, Florida 10 Statutes, is amended to read: 11 367.081 Rates; procedure for fixing and changing.-- 12 (2)(a) The commission shall, either upon request or 13 upon its own motion, fix rates which are just, reasonable, 14 compensatory, and not unfairly discriminatory. In every such 15 proceeding, the commission shall consider the value and 16 quality of the service and the cost of providing the service, 17 which shall include, but not be limited to, debt interest; the 18 requirements of the utility for working capital; maintenance, 19 depreciation, tax, and operating expenses incurred in the 20 operation of all property used and useful in the public 21 service; and a fair return on the investment of the utility in 22 property used and useful in the public service. However, the 23 commission shall not allow the inclusion of 24 contributions-in-aid-of-construction in the rate base of any 25 utility during a rate proceeding; and accumulated depreciation 26 on such contributions-in-aid-of-construction shall not be used 27 to reduce the rate base, nor shall depreciation on such 28 contributed assets be considered a cost of providing utility 29 service. The commission shall also consider the investment of 30 the utility in land acquired or facilities constructed or to 31 be constructed in the public interest within a reasonable time 26 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 in the future, not to exceed, unless extended by the 2 commission, 24 months from the end of the historical test 3 period used to set final rates. Notwithstanding the foregoing, 4 the commission shall approve rates for service that allow a 5 utility to recover the full amount of environmental compliance 6 costs from customers. Rates for service shall not include 7 allowance for funds prudently invested or similar charges. 8 (b) In establishing initial rates for a utility, the 9 commission may project the financial and operational data as 10 set out in paragraph (a) to a point in time when the utility 11 is expected to be operating at a reasonable level of capacity. 12 Section 25. Subsections (6) and (8) of section 13 367.171, Florida Statutes, 1996 Supplement are amended to 14 read: 15 (6) Any county in which utilities as herein defined 16 were regulated by the commission on or after January 1, 1980, 17 which subsequently cease to be so regulated, shall, within 90 18 days of the cessation of commission regulation or the 19 effective date of this act, adopt and follow as minimum 20 standards of regulation the provisions of s. 367.021, s. 21 367.081, except for paragraph (4)(a), and ss. 367.0817 and s. 22 367.082, except that the word "commission" shall be read as 23 "the governing body of such county" when the context implies 24 or admits. The authorized rate of return shall be no less than 25 the weighted cost of the capital of the utility, including 26 debt and equity. 27 (8) Each county which is excluded from the provisions 28 of this chapter shall regulate the rates of all utilities in 29 that county which would otherwise be subject to regulation by 30 the commission pursuant to ss. 367.021, s. 367.081(1), (2), 31 (3), and (6), and 367.0817. The county shall not regulate the 27 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 rates or charges of any system or facility which would 2 otherwise be exempt from commission regulation pursuant to s. 3 367.022(2). For this purpose the county or its agency shall 4 proceed as though the county or agency is the commission. 5 Section 26. Subsection (11) is added to section 6 367.022, Florida Statutes, 1996 Supplement, to read: 7 367.022 Exemptions.--The following are not subject to 8 regulation by the commission as a utility nor are they subject 9 to the provisions of this chapter, except as expressly 10 provided: 11 (11) The sale for resale of bulk supplies of water to 12 a governmental authority or to a utility regulated pursuant to 13 this chapter either by the commission or the county. 14 Section 27. The Department of Environmental 15 Protection's Division of Water Facilities is directed to 16 conduct a study on ozonation and other alternative processes 17 for disinfecting water, with an emphasis on incorporating such 18 processes in reuse of water in cooling systems. The 19 department shall use existing resources and any existing study 20 committee or task force to conduct this research on ozonation 21 and other alternative processes. The department shall submit 22 a report on its findings and recommendations to the Governor, 23 the President of the Senate and the Speaker of the House of 24 Representatives by December 15, 1998. 25 Section 28. Subsection (5) of section 193.625, F.S., 26 1996 Supplement, is amended to read: 27 (5)(a) In years in which proper application for 28 high-water recharge assessment has been made and granted under 29 this section, for purposes of taxes levied by the county, the 30 assessment of the land must be based on the formula adopted by 31 the county as provided in paragraph (b). 28 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (b) Counties that choose to have a high-water recharge 2 protection tax assessment program must adopt by ordinance a 3 formula for determining the assessment of properties 4 classified as high-water recharge property and a method of 5 contracting with property owners who wish to be involved in 6 the program. 7 (c) The contract must include a provision that the 8 land assessed as high-water recharge land will be used 9 primarily for bona fide high-water recharge purposes for a 10 period of at least 5 10 years, as determined by the county, 11 from January 1 of the year in which the assessment is made. 12 Violation of the contract results in the property owner being 13 subject to the payment of the difference between the total 14 amount of taxes actually paid on the property and the amount 15 of taxes which would have been paid in each previous year the 16 contract was in effect if the high-water recharge assessment 17 had not been used. 18 (d) A municipality located in any county that adopts 19 an ordinance under paragraph (a) may adopt an ordinance 20 providing for the assessment of land located in the 21 incorporated areas in accordance with the county's ordinance. 22 (e) Property owners whose land lies within an area 23 determined to be a high-water recharge area must not be 24 required to have their land assessed according to the 25 high-water recharge classification. 26 (f) In years in which proper application for 27 high-water recharge assessment has not been made, the land 28 must be assessed under s. 193.011. 29 Section 29. This section shall take effect upon 30 becoming law. 31 29 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 Section 30. Subsections (1), (2), (3), (5), (6), and 2 (7) of section 403.1835, Florida Statutes, are amended to 3 read: 4 403.1835 Sewage treatment facilities and stormwater 5 management systems revolving loan program.-- 6 (1) The purpose of this section is to assist in 7 implementing the legislative declaration of public policy as 8 contained in s. 403.021 by establishing a loan program to 9 accelerate construction of sewage treatment facilities and 10 stormwater management systems by local governmental agencies 11 and to assist local governmental agencies. 12 (2) For the purposes of this section, the term: 13 (a) "Local governmental agencies" means local 14 governmental agencies as defined in s. 403.1822(3). 15 (b) "Sewage treatment facilities" means all facilities 16 necessary, including land, for the collection, treatment, or 17 disposal of domestic wastewater. 18 (c) "Bonds" means state bonds, certificates, or other 19 obligations of indebtedness issued by the Division of Bond 20 Finance of the State Board of Administration pursuant to this 21 section and the State Bond Act. 22 (d) "Stormwater management system" means a system 23 which is designed and constructed or implemented to control 24 discharges which are necessitated by rainfall events, 25 incorporating methods to collect, convey, store, absorb, 26 inhibit, treat, use, or reuse water to prevent or reduce 27 environmental degradation and water pollution or otherwise 28 affect the quality of discharge from the system. The primary 29 purpose of the stormwater management system must be the 30 prevention or reduction of stormwater pollutants which 31 contribute to water quality problems. 30 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 (3) The department is authorized to make loans to 2 local governmental agencies to assist them in planning, 3 designing, and constructing sewage treatment facilities and 4 stormwater management systems. The department is authorized 5 to make loans use the funds to provide loan guarantees, to 6 purchase loan insurance, and to refinance local debt through 7 the issue of new loans for projects approved by the 8 department. Local governmental agencies are authorized to 9 borrow funds made available pursuant to this section and may 10 pledge any revenue available to them to repay any funds 11 borrowed. The department shall administer loans to local 12 governmental agencies so that at least 15 percent of each 13 annual allocation for loans is reserved for small communities. 14 (5)(a) The department is authorized to make rules 15 necessary to carry out the purpose of this section, including 16 rules to administer the state revolving fund authorized 17 pursuant to the Federal Water Pollution Control Act, as 18 amended, and rules to administer a loan program for stormwater 19 management systems. 20 (b) The department shall prepare an annual report 21 detailing the amount loaned, interest earned, and loans 22 outstanding at the end of each fiscal year. 23 (6) Prior to approval of a construction loan, the 24 local government shall: 25 (a) Provide a repayment schedule. 26 (b) Submit plans and specifications and evidence of 27 permittability for sewage treatment facilities or stormwater 28 management systems. 29 (c) Provide assurance that records will be kept using 30 accepted government accounting standards and that the 31 31 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 department, the Auditor General, or their agents will have 2 access to all records pertaining to the loan. 3 (d) Provide assurance that the facility will be 4 properly operated and maintained. 5 (e) Document that the revenues generated will be 6 sufficient to ensure that the facilities will be 7 self-supporting. 8 (f) Provide assurance that annual financial audit 9 reports, and a separate project audit prepared by an 10 independent certified public accountant upon project 11 completion, will be submitted to the department. 12 (g) Submit project planning documentation 13 demonstrating cost-effectiveness, environmental soundness, 14 public participation, and implementability of the proposed 15 sewage treatment facilities or stormwater management systems. 16 (h) For loans made for the construction of stormwater 17 management systems, provide a copy of an ordinance enacting a 18 stormwater utility. 19 (7) Eligible projects must be given priority according 20 to the extent each project is intended to remove, mitigate, or 21 prevent adverse effects on surface or ground water quality and 22 public health. However, preference must be given to eligible 23 projects that protect the public health; or are required by 24 law to eliminate sewage treatment facility discharges into 25 specific bodies of water; or, for stormwater management 26 systems, are intended to comply with a pollutant load 27 reduction goal or total maximum daily load established for a 28 water body. 29 Section 31. Beginning in fiscal year 1998-1999, the 30 Department of Environmental Protection shall make available up 31 to 10 percent of the annual revenue received in the Sewage 32 CODING: Words stricken are deletions; words underlined are additions. HB 1323, First Engrossed 1 Treatment Revolving Loan Fund for loans to local governmental 2 agencies for constructing stormwater management systems 3 authorized pursuant to s. 403.1835, Florida Statutes. During 4 this period of time, if the department does not receive 5 requests for projects to use the funds available for 6 stormwater management systems, such funds shall be used for 7 constructing sewage treatment facilities and other activities 8 authorized by s. 403.1835, Florida Statutes. 9 Section 32. This act shall take effect July 1, 1997. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 33