CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    

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11  Senator Laurent moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14          Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  It is the intent of the Legislature that

18  modifications contained in sections 2 and 3 of this act which

19  apply to rulemaking are to clarify the limited authority of

20  agencies to adopt rules in accordance with chapter 96-159,

21  Laws of Florida, and are intended to reject the class of

22  powers and duties analysis. However, it is not the intent of

23  the Legislature to reverse the result of any specific judicial

24  decision.

25         Section 2.  Subsections (1) and (8) of section 120.52,

26  Florida Statutes, 1998 Supplement, are amended to read:

27         120.52  Definitions.--As used in this act:

28         (1)  "Agency" means:

29         (a)  The Governor in the exercise of all executive

30  powers other than those derived from the constitution.

31         (b)  Each:

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1         1.  State officer and state department, and each

 2  departmental unit described in s. 20.04.,

 3         2.  Authority, including a regional water supply

 4  authority.

 5         3.  Board.

 6         4.  Commission, including the Commission on Ethics and

 7  the Game and Fresh Water Fish Commission when acting pursuant

 8  to statutory authority derived from the Legislature.

 9         5.  Regional planning agency., board,

10         6.  Multicounty special district with a majority of its

11  governing board comprised of nonelected persons., and

12  authority, including, but not limited to, the Commission on

13  Ethics and the Game and Fresh Water Fish Commission when

14  acting pursuant to statutory authority derived from the

15  Legislature,

16         7.  Educational units., and those entities

17         8.  Entity described in chapters 163, 298, 373, 380,

18  and 582 and s. 186.504, except any legal entity or agency

19  created in whole or in part pursuant to chapter 361, part II,

20  an expressway authority pursuant to chapter 348, or any legal

21  or administrative entity created by an interlocal agreement

22  pursuant to s. 163.01(7), unless any party to such agreement

23  is otherwise an agency as defined in this subsection.

24         (c)  Each other unit of government in the state,

25  including counties and municipalities, to the extent they are

26  expressly made subject to this act by general or special law

27  or existing judicial decisions.

28

29  This definition does not include any legal entity or agency

30  created in whole or in part pursuant to chapter 361, part II,

31  an expressway authority pursuant to chapter 348, any legal or

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1  administrative entity created by an interlocal agreement

 2  pursuant to s. 163.01(7), unless any party to such agreement

 3  is otherwise an agency as defined in this subsection, or any

 4  multicounty special district with a majority of its governing

 5  board comprised of elected persons; however, this definition

 6  shall include a regional water supply authority.

 7         (8)  "Invalid exercise of delegated legislative

 8  authority" means action which goes beyond the powers,

 9  functions, and duties delegated by the Legislature. A proposed

10  or existing rule is an invalid exercise of delegated

11  legislative authority if any one of the following applies:

12         (a)  The agency has materially failed to follow the

13  applicable rulemaking procedures or requirements set forth in

14  this chapter;

15         (b)  The agency has exceeded its grant of rulemaking

16  authority, citation to which is required by s. 120.54(3)(a)1.;

17         (c)  The rule enlarges, modifies, or contravenes the

18  specific provisions of law implemented, citation to which is

19  required by s. 120.54(3)(a)1.;

20         (d)  The rule is vague, fails to establish adequate

21  standards for agency decisions, or vests unbridled discretion

22  in the agency;

23         (e)  The rule is arbitrary or capricious;

24         (f)  The rule is not supported by competent substantial

25  evidence; or

26         (g)  The rule imposes regulatory costs on the regulated

27  person, county, or city which could be reduced by the adoption

28  of less costly alternatives that substantially accomplish the

29  statutory objectives.

30

31  A grant of rulemaking authority is necessary but not

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1  sufficient to allow an agency to adopt a rule; a specific law

 2  to be implemented is also required. An agency may adopt only

 3  rules that implement or, interpret the, or make specific the

 4  particular powers and duties granted by the enabling statute.

 5  No agency shall have authority to adopt a rule only because it

 6  is reasonably related to the purpose of the enabling

 7  legislation and is not arbitrary and capricious or is within

 8  the agency's class of powers and duties, nor shall an agency

 9  have the authority to implement statutory provisions setting

10  forth general legislative intent or policy. Statutory language

11  granting rulemaking authority or generally describing the

12  powers and functions of an agency shall be construed to extend

13  no further than implementing or interpreting the specific the

14  particular powers and duties conferred by the same statute.

15         Section 3.  Section 120.536, Florida Statutes, is

16  amended to read:

17         120.536  Rulemaking authority; listing of rules

18  exceeding authority; repeal; challenge.--

19         (1)  A grant of rulemaking authority is necessary but

20  not sufficient to allow an agency to adopt a rule; a specific

21  law to be implemented is also required. An agency may adopt

22  only rules that implement or, interpret the, or make specific

23  the particular powers and duties granted by the enabling

24  statute. No agency shall have authority to adopt a rule only

25  because it is reasonably related to the purpose of the

26  enabling legislation and is not arbitrary and capricious or is

27  within the agency's class of powers and duties, nor shall an

28  agency have the authority to implement statutory provisions

29  setting forth general legislative intent or policy. Statutory

30  language granting rulemaking authority or generally describing

31  the powers and functions of an agency shall be construed to

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1  extend no further than implementing or interpreting the

 2  specific the particular powers and duties conferred by the

 3  same statute.

 4         (2)(a)  By October 1, 1997, each agency shall provide

 5  to the Administrative Procedures Committee a listing of each

 6  rule, or portion thereof, adopted by that agency before

 7  October 1, 1996, which exceeds the rulemaking authority

 8  permitted by this section.  For those rules of which only a

 9  portion exceeds the rulemaking authority permitted by this

10  section, the agency shall also identify the language of the

11  rule which exceeds this authority.  The Administrative

12  Procedures Committee shall combine the lists and provide the

13  cumulative listing to the President of the Senate and the

14  Speaker of the House of Representatives.  The Legislature

15  shall, at the 1998 Regular Session, consider whether specific

16  legislation authorizing the identified rules, or portions

17  thereof, should be enacted.  By January 1, 1999, each agency

18  shall initiate proceedings pursuant to s. 120.54 to repeal

19  each rule, or portion thereof, identified as exceeding the

20  rulemaking authority permitted by this section for which

21  authorizing legislation does not exist. By February 1, 1999,

22  the Administrative Procedures Committee shall submit to the

23  President of the Senate and the Speaker of the House of

24  Representatives a report identifying those rules that an

25  agency had previously identified as exceeding the rulemaking

26  authority permitted by this section for which proceedings to

27  repeal the rule have not been initiated.  As of July 1, 1999,

28  the Administrative Procedures Committee or any substantially

29  affected person may petition an agency to repeal any rule, or

30  portion thereof, because it exceeds the rulemaking authority

31  permitted by this section.  Not later than 30 days after the

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1  date of filing the petition if the agency is headed by an

 2  individual, or not later than 45 days if the agency is headed

 3  by a collegial body, the agency shall initiate rulemaking

 4  proceedings to repeal the rule, or portion thereof, or deny

 5  the petition, giving a written statement of its reasons for

 6  the denial.

 7         (b)  By October 1, 1999, each agency shall provide to

 8  the Administrative Procedures Committee a listing of each

 9  rule, or portion thereof, adopted by that agency before the

10  effective date of the bill, which exceeds the rulemaking

11  authority permitted by this section.  For those rules of which

12  only a portion exceeds the rulemaking authority permitted by

13  this section, the agency shall also identify the language of

14  the rule which exceeds this authority.  The Administrative

15  Procedures Committee shall combine the lists and provide the

16  cumulative listing to the President of the Senate and the

17  Speaker of the House of Representatives.  The Legislature

18  shall, at the 2000 Regular Session, consider whether specific

19  legislation authorizing the identified rules, or portions

20  thereof, should be enacted.  By January 1, 2001, each agency

21  shall initiate proceedings pursuant to s. 120.54 to repeal

22  each rule, or portion thereof, identified as exceeding the

23  rulemaking authority permitted by this section for which

24  authorizing legislation does not exist. By February 1, 2001,

25  the Administrative Procedures Committee shall submit to the

26  President of the Senate and the Speaker of the House of

27  Representatives a report identifying those rules that an

28  agency had previously identified as exceeding the rulemaking

29  authority permitted by this section for which proceedings to

30  repeal the rule have not been initiated.  As of July 1, 2001,

31  the Administrative Procedures Committee or any substantially

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1  affected person may petition an agency to repeal any rule, or

 2  portion thereof, because it exceeds the rulemaking authority

 3  permitted by this section.  Not later than 30 days after the

 4  date of filing the petition if the agency is headed by an

 5  individual, or not later than 45 days if the agency is headed

 6  by a collegial body, the agency shall initiate rulemaking

 7  proceedings to repeal the rule, or portion thereof, or deny

 8  the petition, giving a written statement of its reasons for

 9  the denial.

10         (3)  All proposed rules or amendments to existing rules

11  filed with the Department of State on or after October 1,

12  1996, shall be based on rulemaking authority no broader than

13  that permitted by this section. A rule adopted before October

14  1, 1996, and not included on a list submitted by an agency in

15  accordance with subsection (2) may not be challenged before

16  November 1, 1997, on the grounds that it exceeds the

17  rulemaking authority or law implemented as described by this

18  section. A rule adopted before October 1, 1996, and included

19  on a list submitted by an agency in accordance with subsection

20  (2) may not be challenged before July 1, 1999, on the grounds

21  that it exceeds the rulemaking authority or law implemented as

22  described by this section. A rule adopted before the effective

23  date of the bill, and included on a list submitted by an

24  agency in accordance with subsection (2)(b) may not be

25  challenged before July 1, 2001, on the grounds that it exceeds

26  the rulemaking authority or law implemented as described by

27  this section.

28         (4)  Nothing in this section shall be construed to

29  change the legal status of a rule that has otherwise been

30  judicially or administratively determined to be invalid.

31         Section 4.  Paragraph (f) of subsection (1) of section

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1  120.54, Florida Statutes, 1998 Supplement, is amended to read:

 2         120.54  Rulemaking.--

 3         (1)  GENERAL PROVISIONS APPLICABLE TO ALL RULES OTHER

 4  THAN EMERGENCY RULES.--

 5         (f)  An agency may adopt rules authorized by law and

 6  necessary to the proper implementation of a statute prior to

 7  the effective date of the statute, but the rules may not be

 8  effective enforced until the statute upon which they are based

 9  is effective. An agency may not adopt retroactive rules,

10  including retroactive rules intended to clarify existing law,

11  unless that power is expressly authorized by statute.

12         Section 5.  Paragraph (a) of subsection (2) of section

13  120.56, Florida Statutes, is amended to read:

14         120.56  Challenges to rules.--

15         (2)  CHALLENGING PROPOSED RULES; SPECIAL PROVISIONS.--

16         (a)  Any substantially affected person may seek an

17  administrative determination of the invalidity of any proposed

18  rule by filing a petition seeking such a determination with

19  the division within 21 days after the date of publication of

20  the notice required by s. 120.54(3)(a), within 10 days after

21  the final public hearing is held on the proposed rule as

22  provided by s. 120.54(3)(c), within 20 days after the

23  preparation of a statement of estimated regulatory costs

24  required pursuant to s. 120.541, if applicable, or within 20

25  days after the date of publication of the notice required by

26  s. 120.54(3)(d). The petition shall state with particularity

27  the objections to the proposed rule and the reasons that the

28  proposed rule is an invalid exercise of delegated legislative

29  authority. The petitioner has the burden of going forward. The

30  agency then has the burden to prove by a preponderance of the

31  evidence that the proposed rule is not an invalid exercise of

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                                                  SENATE AMENDMENT

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 1  delegated legislative authority as to the objections raised.

 2  Any person who is substantially affected by a change in the

 3  proposed rule may seek a determination of the validity of such

 4  change.  Any person not substantially affected by the proposed

 5  rule as initially noticed, but who is substantially affected

 6  by the rule as a result of a change, may challenge any

 7  provision of the rule and is not limited to challenging the

 8  change to the proposed rule.

 9         Section 6.  Paragraph (l) of subsection (1) of section

10  120.57, Florida Statutes, 1998 Supplement, is amended to read:

11         120.57  Additional procedures for particular cases.--

12         (1)  ADDITIONAL PROCEDURES APPLICABLE TO HEARINGS

13  INVOLVING DISPUTED ISSUES OF MATERIAL FACT.--

14         (l)  The agency may adopt the recommended order as the

15  final order of the agency. The agency in its final order may

16  reject or modify the conclusions of law over which it has

17  substantive jurisdiction and interpretation of administrative

18  rules over which it has substantive jurisdiction. When

19  rejecting or modifying such conclusion of law or

20  interpretation of administrative rule, the agency must state

21  with particularity its reasons for rejecting or modifying such

22  conclusion of law or interpretation of administrative rule and

23  must make a finding that its substituted conclusion of law or

24  interpretation of administrative rule is as or more reasonable

25  than that which was rejected or modified.  Rejection or

26  modification of conclusions of law may not form the basis for

27  rejection or modification of findings of fact.  The agency may

28  not reject or modify the findings of fact unless the agency

29  first determines from a review of the entire record, and

30  states with particularity in the order, that the findings of

31  fact were not based upon competent substantial evidence or

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 1  that the proceedings on which the findings were based did not

 2  comply with essential requirements of law. The agency may

 3  accept the recommended penalty in a recommended order, but may

 4  not reduce or increase it without a review of the complete

 5  record and without stating with particularity its reasons

 6  therefor in the order, by citing to the record in justifying

 7  the action.

 8         Section 7.  Present paragraphs (a) through (j) of

 9  subsection (1) of section 120.81, Florida Statutes, are

10  redesignated as paragraphs (b) through (k), respectively, and

11  a new paragraph (a) is added to that subsection, to read:

12         120.81  Exceptions and special requirements; general

13  areas.--

14         (1)  EDUCATIONAL UNITS.--

15         (a)  Notwithstanding s. 120.536(1) and the flush left

16  provisions of s. 120.52(8), district school boards may adopt

17  rules to implement their general powers under s. 230.22.

18         Section 8.  This act shall take effect upon becoming a

19  law.

20

21

22  ================ T I T L E   A M E N D M E N T ===============

23  And the title is amended as follows:

24          Delete everything before the enacting clause

25

26  and insert:

27                      A bill to be entitled

28         An act relating to the Administrative Procedure

29         Act; providing legislative intent; amending s.

30         120.52, F.S.; removing entities described in

31         ch. 298, F.S., relating to water control

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1         districts, from the definition of "agency";

 2         redefining the term "agency"; providing

 3         additional restrictions with respect to an

 4         agency's rulemaking authority; amending s.

 5         120.536, F.S.; providing additional

 6         restrictions with respect to an agency's

 7         rulemaking authority; requiring agencies to

 8         provide the Administrative Procedures Committee

 9         with a list of existing rules which exceed such

10         rulemaking authority and providing for

11         legislative consideration of such rules;

12         requiring agencies to initiate proceedings to

13         repeal such rules for which authorizing

14         legislation is not adopted; requiring a report

15         to the Legislature; providing that the

16         committee or a substantially affected person

17         may petition for repeal of such rules after a

18         specified date; restricting challenge of such

19         rules before that date; amending s. 120.54,

20         F.S.; specifying when rules may take effect;

21         restricting adoption of retroactive rules;

22         amending s. 120.56, F.S.; revising an agency's

23         responsibilities in response to a challenge to

24         a proposed rule and specifying the petitioner's

25         responsibility of going forward; amending s.

26         120.57, F.S., relating to hearings involving

27         disputed issues of material fact; revising an

28         agency's authority with respect to rejection or

29         modification of conclusions of law in its final

30         order; providing for agency statement as to the

31         reasonableness of its substituted finding of

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 107

    Amendment No.    





 1         law or interpretation of administrative rule;

 2         amending s. 120.81, F.S.; providing that

 3         district school boards may adopt rules

 4         notwithstanding the rulemaking standards found

 5         in chapter 120, F.S.; providing an effective

 6         date.

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