Senate Bill 1172

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    Florida Senate - 2000                                  SB 1172

    By the Committee on Commerce and Economic Opportunities





    310-912A-00

  1                      A bill to be entitled

  2         An act relating to infrastructure development

  3         in small communities; amending s. 220.701,

  4         F.S.; revising the distribution of corporate

  5         income tax revenues collected under ch. 220,

  6         F.S.; amending s. 288.0655, F.S.; revising

  7         deadlines relating to implementation of the

  8         Rural Infrastructure Fund; amending s.

  9         403.1835, F.S.; eliminating authority for the

10         Department of Environmental Protection to

11         assess grant allocations on loans made through

12         the sewage treatment facilities revolving loan

13         fund; making conforming changes; amending s.

14         403.1838, F.S.; expanding the criteria

15         governing communities eligible for grants under

16         the Small Community Sewer Construction

17         Assistance Act; prescribing grant evaluation

18         criteria; directing the Department of

19         Environmental Protection and the Environmental

20         Regulation Commission to make conforming rule

21         changes; requiring development of a strategic

22         plan for rural infrastructure; providing an

23         effective date.

24

25  Be It Enacted by the Legislature of the State of Florida:

26

27         Section 1.  Section 220.701, Florida Statutes, is

28  amended to read:

29         220.701  Collection authority.--The department shall

30  deposit the revenues it collects from collect the taxes

31  imposed by this chapter as follows:

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    Florida Senate - 2000                                  SB 1172
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  1         (1)  Seven percent of the amount collected each year is

  2  to be deposited into the Department of Environmental

  3  Protection Grants and Donations Trust Fund in support of the

  4  Small Community Sewer Construction Assistance Act under s.

  5  403.1838;

  6         (2)  Seven percent of the amount collected in fiscal

  7  year 2000-2001, and 1 percent of the amount collected in each

  8  year thereafter, is to be deposited into the Rural Economic

  9  Development Trust Fund if that trust fund is otherwise created

10  by law; and

11         (3)  The remaining balance collected each year is to be

12  deposited into the General Revenue Fund. and shall pay all

13  moneys received by it into the General Revenue Fund of the

14  state.

15         Section 2.  Paragraph (d) of subsection (2) and

16  subsection (4) of section 288.0655, Florida Statutes, are

17  amended to read:

18         288.0655  Rural Infrastructure Fund.--

19         (2)

20         (d)  By September 1, 2000 1999, the office shall pursue

21  execution of a memorandum of agreement with the United States

22  Department of Agriculture under which state funds available

23  through the Rural Infrastructure Fund may be advanced, in

24  excess of the prescribed state share, for a project that has

25  received from the department a preliminary determination of

26  eligibility for federal financial support. State funds in

27  excess of the prescribed state share which are advanced

28  pursuant to this paragraph and the memorandum of agreement

29  shall be reimbursed when funds are awarded under an

30  application for federal funding.

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    Florida Senate - 2000                                  SB 1172
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  1         (4)  By September 1, 2000 1999, the office shall, in

  2  consultation with the organizations listed in subsection (3),

  3  and other organizations, develop guidelines and criteria

  4  governing submission of applications for funding, review and

  5  evaluation of such applications, and approval of funding under

  6  this section. The office shall consider factors including, but

  7  not limited to, the project's potential for enhanced job

  8  creation or increased capital investment, the demonstration of

  9  local public and private commitment, the location of the

10  project in an enterprise zone, the location of the project in

11  a community development corporation service area as defined in

12  s. 290.035(2), the location of the project in a county

13  designated under s. 212.097, the unemployment rate of the

14  surrounding area, and the poverty rate of the community.

15         Section 3.  Subsections (3) and (4) and paragraph (b)

16  of subsection (9) of section 403.1835, Florida Statutes, are

17  amended to read:

18         403.1835  Sewage treatment facilities revolving loan

19  program.--

20         (3)  The department is authorized to make loans and

21  grants to local governmental agencies to assist them in

22  planning, designing, and constructing sewage treatment

23  facilities and stormwater management systems. The department

24  may administer the resulting portfolio of loans, including the

25  authority to sell or pledge the loans, or any portion of the

26  loans, with the approval of the Governor, the Treasurer, and

27  the Comptroller, acting as the State Board of Administration,

28  to ensure compliance with subsection (1).

29         (a)  The department is authorized to make loans, to

30  provide loan guarantees, to purchase loan insurance, and to

31  refinance local debt through the issue of new loans for

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    Florida Senate - 2000                                  SB 1172
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  1  projects approved by the department. Local governmental

  2  agencies are authorized to borrow funds made available

  3  pursuant to this section and may pledge any revenue available

  4  to them to repay any funds borrowed.  The department shall

  5  administer loans to local governmental agencies so that at

  6  least 15 percent of each annual allocation for loans is

  7  reserved for small communities.

  8         (b)  The department may make grants to financially

  9  disadvantaged small communities, as defined in s. 403.1838,

10  using funds made available from grant allocations on loans

11  authorized under subsection (4). The grants must be

12  administered in accordance with s. 403.1838.

13         (b)(c)  The department may make grants to local

14  government agencies as authorized under the Federal Water

15  Pollution Control Act, or as a result of other federal action.

16  The grants must be administered in accordance with this

17  section and applicable federal requirements.

18         (4)  The term of loans made pursuant to this section

19  shall not exceed 30 years. The department may assess grant

20  allocations on the loans for the purpose of making grants to

21  financially disadvantaged small communities. The combined rate

22  of interest and grant allocations on loans shall be no greater

23  than the interest rate paid on the last bonds sold pursuant to

24  s. 14, Art. VII of the State Constitution. The grant

25  allocations on a loan shall be equal to or less than the

26  interest rate on the loan.

27         (9)  Funds for the loans and grants authorized under

28  this section must be managed as follows:

29         (b)  Revenues from the loan grant allocations

30  authorized under subsection (4), federal appropriations, state

31  matching funds for grants authorized by federal statute or

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    Florida Senate - 2000                                  SB 1172
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  1  other federal action, and service fees, and all earnings

  2  thereon, shall be deposited into the department's Grants and

  3  Donations Trust Fund. Service fees and all earnings thereon

  4  must be used solely for program administration. The loan grant

  5  allocation revenues and earnings thereon must be used solely

  6  for the purpose of making grants to financially disadvantaged

  7  small communities. Federal appropriations and state matching

  8  funds for grants authorized by federal statute or other

  9  federal action, and earnings thereon, must be used solely for

10  the purposes authorized. All deposits into the department's

11  Grants and Donations Trust Fund under this section, and

12  earnings thereon, must be accounted for separately from all

13  other moneys deposited into the fund.

14         Section 4.  Section 403.1838, Florida Statutes, is

15  amended to read:

16         403.1838  Small Community Sewer Construction Assistance

17  Act.--

18         (1)  This section may be cited as the "Small Community

19  Sewer Construction Assistance Act."

20         (2)  The department shall use funds specifically

21  appropriated to award grants under this section to assist

22  financially disadvantaged small communities with their needs

23  for adequate sewer facilities.  For purposes of this section,

24  the term "financially disadvantaged small community" means a

25  municipality or an unincorporated area with a population of

26  15,000 7,500 or less, according to the latest decennial census

27  and a per capita annual income less than the state per capita

28  annual income as determined by the United States Department of

29  Commerce. A grant awarded for an unincorporated area must be

30  administered under the authority of a unit of local

31  government.

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    Florida Senate - 2000                                  SB 1172
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  1         (3)(a)  In accordance with rules adopted by the

  2  Environmental Regulation Commission under this section, the

  3  department may provide grants, from funds specifically

  4  appropriated for this purpose, to financially disadvantaged

  5  small communities for up to 100 percent of the costs of

  6  planning, designing, constructing, upgrading, or replacing

  7  wastewater collection, transmission, treatment, disposal, and

  8  reuse facilities, including necessary legal and administrative

  9  expenses.

10         (b)  The rules of the Environmental Regulation

11  Commission must be adopted in consultation with the Office of

12  Tourism, Trade, and Economic Development and Enterprise

13  Florida, Inc., and must:

14         1.  Require that projects to plan, design, construct,

15  upgrade, or replace wastewater collection, transmission,

16  treatment, disposal, and reuse facilities be cost-effective,

17  environmentally sound, permittable, and implementable.

18         2.  Require appropriate user charges, connection fees,

19  and other charges sufficient to ensure the long-term

20  operation, maintenance, and replacement of the facilities

21  constructed under each grant.

22         3.  Require grant applications to be submitted on

23  appropriate forms with appropriate supporting documentation,

24  such as documentation of need for the project and

25  documentation that the community is economically

26  disadvantaged, and require records to be maintained.

27         4.  Establish a system to determine eligibility of

28  grant applications.

29         5.  Establish a system and criteria to determine the

30  relative priority of grant applications. The system and

31  criteria must consider at a minimum:

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    Florida Senate - 2000                                  SB 1172
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  1         a.  Public health protection;

  2         b.  Water pollution abatement; and

  3         c.  The potential impact of the project on the economic

  4  development of the community. public health protection and

  5  water pollution abatement.

  6         6.  Establish requirements for competitive procurement

  7  of engineering and construction services, materials, and

  8  equipment.

  9         7.  Provide for termination of grants when program

10  requirements are not met.

11         (c)  The department must perform adequate overview of

12  each grant, including technical review, regular inspections,

13  disbursement approvals, and auditing, to successfully

14  implement this section.

15         (d)  The department may use up to 2 percent of the

16  grant funds made available each year for the costs of program

17  administration.

18         (e)  Any grant awarded before July 1, 1994, under this

19  section, remains subject to the applicable department rules in

20  existence on June 30, 1993, until all rule requirements have

21  been met.

22         (4)  The department shall consult with the Office of

23  Tourism, Trade, and Economic Development and Enterprise

24  Florida, Inc., in assessing the potential economic development

25  impact of a project proposed for funding under this section.

26         Section 5.  The Department of Environmental Protection

27  and the Environmental Regulation Commission shall adopt rules

28  necessary and appropriate for administering the changes made

29  by this act to sections 403.1835 and 403.1838, Florida

30  Statutes.

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    Florida Senate - 2000                                  SB 1172
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  1         Section 6.  The Office of Tourism, Trade, and Economic

  2  Development, Enterprise Florida, Inc., and the Florida Tourism

  3  Industry Marketing Corporation, in consultation with the

  4  participating agencies and organizations of the Rural Economic

  5  Development Initiative, shall develop a strategic plan for the

  6  use of the Rural Infrastructure Fund under section 288.0655,

  7  Florida Statutes, as well as other available programs, to

  8  support economic development activities in rural communities

  9  in the state. The plan shall, at a minimum, consider the

10  appropriate timing and priority for development of

11  infrastructure in support of nature-based and other rural

12  tourism, implementation of marketing initiatives directed

13  toward the use of such tourism infrastructure, creation of

14  microenterprise and other businesses in the tourism industry,

15  and development of infrastructure in support of other economic

16  development activities. This plan must be submitted to the

17  Governor, the President of the Senate, and the Speaker of the

18  House of Representatives by October 1, 2000.

19         Section 7.  This act shall take effect July 1, 2000.

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21            *****************************************

22                          SENATE SUMMARY

23    Revises the allocation of corporate income tax revenues.
      Changes deadlines for administration of the Rural
24    Infrastructure Fund. Revises the authority of the
      Department of Environmental Protection to administer the
25    sewage treatment facilities revolving loan program.
      Expands criteria for grants under the Small Community
26    Sewer Construction Assistance Act. Directs the Office of
      Tourism, Trade, and Economic Development, Enterprise
27    FLorida, Inc., and the Florida Tourism Industry Marketing
      Corporation to develop a strategic plan for use of the
28    Rural Infrastructure Fund.

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