House Bill 2023e2

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                               CS/CS/HB 2023, Second Engrossed/ntc



  1                      A bill to be entitled

  2         An act relating to administrative procedure;

  3         amending s. 57.111, F.S.; increasing the

  4         maximum net worth for qualification as a small

  5         business party under the Florida Equal Access

  6         to Justice Act; increasing the limitation on

  7         the amount of attorney's fees and costs that

  8         may be awarded under the act; amending s.

  9         120.569, F.S.; revising requirements for

10         pleadings, motions, and other papers filed

11         under ch. 120, F.S.; providing for sanctions,

12         including an award of attorney's fees; amending

13         s. 120.595, F.S.; redefining the term "improper

14         purpose" for purposes of provisions authorizing

15         challenges to agency action; amending s.

16         373.114, F.S.; providing that water management

17         district orders resulting from certain

18         evidentiary hearings are not subject to the

19         Land and Water Adjudicatory Commission's review

20         authority; amending s. 403.412, F.S.; providing

21         that a citizen of this state who is not a

22         substantially affected person may not initiate

23         certain administrative proceedings under the

24         Environmental Protection Act of 1971; amending

25         s. 120.52, F.S.; clarifying which governmental

26         entities are subject to the Administrative

27         Procedure Act; providing an effective date.

28

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

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                               CS/CS/HB 2023, Second Engrossed/ntc



  1         Section 1.  Paragraph (d) of subsection (3) and

  2  paragraph (d) of subsection (4) of section 57.111, Florida

  3  Statutes, are amended to read:

  4         57.111  Civil actions and administrative proceedings

  5  initiated by state agencies; attorneys' fees and costs.--

  6         (3)  As used in this section:

  7         (d)  The term "small business party" means:

  8         1.a.  A sole proprietor of an unincorporated business,

  9  including a professional practice, whose principal office is

10  in this state, who is domiciled in this state, and whose

11  business or professional practice has, at the time the action

12  is initiated by a state agency, not more than 25 full-time

13  employees or a net worth of not more than $5 $5 million,

14  including both personal and business investments; or

15         b.  A partnership or corporation, including a

16  professional practice, which has its principal office in this

17  state and has at the time the action is initiated by a state

18  agency not more than 25 full-time employees or a net worth of

19  not more than $5 $2 million; or

20         2.  Either small business party as defined in

21  subparagraph 1., without regard to the number of its employees

22  or its net worth, in any action under s. 72.011 or in any

23  administrative proceeding under that section to contest the

24  legality of any assessment of tax imposed for the sale or use

25  of services as provided in chapter 212, or interest thereon,

26  or penalty therefor.

27         (4)

28         (d)  The court, or the administrative law judge in the

29  case of a proceeding under chapter 120, shall promptly conduct

30  an evidentiary hearing on the application for an award of

31  attorney's fees and shall issue a judgment, or a final order


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                               CS/CS/HB 2023, Second Engrossed/ntc



  1  in the case of an administrative law judge.  The final order

  2  of an administrative law judge is reviewable in accordance

  3  with the provisions of s. 120.68.  If the court affirms the

  4  award of attorney's fees and costs in whole or in part, it

  5  may, in its discretion, award additional attorney's fees and

  6  costs for the appeal.

  7         1.  No award of attorney's fees and costs shall be made

  8  in any case in which the state agency was a nominal party.

  9         2.  No award of attorney's fees and costs for an action

10  initiated by a state agency shall exceed $50,000 $15,000.

11         Section 2.  Paragraph (e) of subsection (2) of section

12  120.569, Florida Statutes, is amended to read:

13         120.569  Decisions which affect substantial

14  interests.--

15         (2)

16         (e)1.  Every pleading, written motion, and other paper

17  filed in a proceeding must be signed by at least one attorney

18  or qualified representative of record in the attorney's or

19  qualified representative's individual name, or, if the party

20  is not represented by an attorney or qualified representative,

21  the pleading, written motion, or other paper must be signed by

22  the party. An unsigned paper shall be stricken unless omission

23  of the signature is corrected promptly after being called to

24  the attention of the attorney, qualified representative, or

25  party.

26         2.  By presenting a pleading, written motion, or other

27  paper, whether by signing, filing, submitting, or later

28  advocating, an attorney, qualified representative, or

29  unrepresented party is certifying that, to the best of the

30  person's knowledge, information, and belief, formed after an

31  inquiry reasonable under the circumstances:


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  1         a.  The pleading, written motion, or other paper is not

  2  being presented for any improper purpose, such as to harass or

  3  to cause unnecessary delay or needless increase in the cost of

  4  litigation;

  5         b.  The claims, defenses, and other legal contentions

  6  contained in the pleading, written motion, or other paper are

  7  warranted by existing law or by a nonfrivolous argument for

  8  the extension, modification, or reversal of existing law or

  9  the establishment of new law;

10         c.  The allegations and other factual contentions have

11  evidentiary support or, if specifically identified, are likely

12  to have evidentiary support after a reasonable opportunity for

13  further investigation or discovery; and

14         d.  The denials of factual contentions are warranted on

15  the evidence or, if specifically identified, are reasonably

16  based on a lack of information or belief.

17         3.  If, after notice and a reasonable opportunity to

18  respond, the presiding officer determines that subparagraph 2.

19  has been violated, the presiding officer shall impose an

20  appropriate sanction against the person who signed it, the

21  represented party, or both, which must include an order to pay

22  the other party or parties the amount of reasonable expenses

23  incurred because of the filing of the pleading, motion, or

24  other paper, including reasonable attorney's fees. However:

25         a.  Monetary sanctions may not be awarded against a

26  represented party for a violation of sub-subparagraph 2.b.

27         b.  Monetary sanctions may not be awarded under this

28  paragraph based on a violation of discovery rules, which are

29  subject to sanctions under paragraph (f).

30         c.  This paragraph does not authorize the award of

31  sanctions against any person who comments on or objects to a


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  1  draft permit during an authorized period for public comment or

  2  at a public hearing.

  3         4.  Sanctions under this paragraph may be initiated at

  4  any time after the initiation of a proceeding either by motion

  5  or on the presiding officer's own initiative. A motion shall

  6  describe the specific conduct alleged to violate subparagraph

  7  2. The motion shall be served upon the attorney or qualified

  8  representative of a party or an unrepresented party against

  9  whom such sanctions are sought and shall be filed with the

10  presiding officer. However, such motion shall not be acted

11  upon by the presiding officer or called up for hearing by the

12  movant unless, within 14 days after service of the motion, or

13  such other period as the presiding officer may prescribe, the

14  challenged paper, claim, defense, contention, allegation, or

15  denial is not withdrawn or appropriately corrected. A

16  presiding officer's own initiative to impose sanctions may be

17  undertaken only after entering an order describing the

18  specific conduct that appears to violate subparagraph 2. and

19  directing the attorney or qualified representative of a party

20  or the unrepresented party to show cause why subparagraph 2.

21  has not been violated. When imposing sanctions, the presiding

22  officer shall describe the conduct determined to constitute a

23  violation of subparagraph 2. and explain the basis for the

24  sanction imposed. All pleadings, motions, or other papers

25  filed in the proceeding must be signed by the party, the

26  party's attorney, or the party's qualified representative. The

27  signature constitutes a certificate that the person has read

28  the pleading, motion, or other paper and that, based upon

29  reasonable inquiry, it is not interposed for any improper

30  purposes, such as to harass or to cause unnecessary delay, or

31  for frivolous purpose or needless increase in the cost of


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                               CS/CS/HB 2023, Second Engrossed/ntc



  1  litigation. If a pleading, motion, or other paper is signed in

  2  violation of these requirements, the presiding officer shall

  3  impose upon the person who signed it, the represented party,

  4  or both, an appropriate sanction, which may include an order

  5  to pay the other party or parties the amount of reasonable

  6  expenses incurred because of the filing of the pleading,

  7  motion, or other paper, including a reasonable attorney's fee.

  8         Section 3.  Paragraphs (c) and (e) of subsection (1) of

  9  section 120.595, Florida Statutes, are amended to read:

10         120.595  Attorney's fees.--

11         (1)  CHALLENGES TO AGENCY ACTION PURSUANT TO SECTION

12  120.57(1).--

13         (c)  In proceedings pursuant to s. 120.57(1), and upon

14  motion, the administrative law judge shall determine whether

15  any party participated in the proceeding for an improper

16  purpose as defined by this subsection and s. 120.569(2)(e). In

17  making such determination, the administrative law judge shall

18  consider whether the nonprevailing adverse party has

19  participated in two or more other such proceedings involving

20  the same prevailing party and the same project as an adverse

21  party and in which such two or more proceedings the

22  nonprevailing adverse party did not establish either the

23  factual or legal merits of its position, and shall consider

24  whether the factual or legal position asserted in the instant

25  proceeding would have been cognizable in the previous

26  proceedings. In such event, it shall be rebuttably presumed

27  that the nonprevailing adverse party participated in the

28  pending proceeding for an improper purpose.

29         (e)  For the purpose of this subsection:

30         1.  "Improper purpose" means participation in a

31  proceeding pursuant to s. 120.57(1) primarily to harass or to


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  1  cause unnecessary delay or for frivolous purpose or to

  2  needlessly increase the cost of litigation, licensing, or

  3  securing the approval of an activity.

  4         2.  "Costs" has the same meaning as the costs allowed

  5  in civil actions in this state as provided in chapter 57.

  6         3.  "Nonprevailing adverse party" means a party that

  7  has failed to have substantially changed the outcome of the

  8  proposed or final agency action which is the subject of a

  9  proceeding. In the event that a proceeding results in any

10  substantial modification or condition intended to resolve the

11  matters raised in a party's petition, it shall be determined

12  that the party having raised the issue addressed is not a

13  nonprevailing adverse party.  The recommended order shall

14  state whether the change is substantial for purposes of this

15  subsection. In no event shall the term "nonprevailing party"

16  or "prevailing party" be deemed to include any party that has

17  intervened in a previously existing proceeding to support the

18  position of an agency.

19         Section 4.  Subsection (1) of section 373.114, Florida

20  Statutes, is amended to read:

21         373.114  Land and Water Adjudicatory Commission; review

22  of district rules and orders; department review of district

23  rules.--

24         (1)  Except as provided in subsection (2), the Governor

25  and Cabinet, sitting as the Land and Water Adjudicatory

26  Commission, have the exclusive authority to review any order

27  or rule of a water management district, other than a rule

28  relating to an internal procedure of the district or an order

29  resulting from an evidentiary hearing held pursuant to s.

30  120.569 or s. 120.57, to ensure consistency with the

31  provisions and purposes of this chapter. Subsequent to the


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                               CS/CS/HB 2023, Second Engrossed/ntc



  1  legislative ratification of the delineation methodology

  2  pursuant to s. 373.421(1), this subsection also shall apply to

  3  an order of the department, or a local government exercising

  4  delegated authority, pursuant to ss. 373.403-373.443, except

  5  an order pertaining to activities or operations subject to

  6  conceptual plan approval pursuant to chapter 378 or an order

  7  resulting from an evidentiary hearing held pursuant to s.

  8  120.569 or s. 120.57.

  9         (a)  Such review may be initiated by the department or

10  by a party to the proceeding below by filing a request for

11  review with the Land and Water Adjudicatory Commission and

12  serving a copy on the department and on any person named in

13  the rule or order within 20 days after adoption of the rule or

14  the rendering of the order. For the purposes of this section,

15  the term "party" means any affected person who submitted oral

16  or written testimony, sworn or unsworn, of a substantive

17  nature which stated with particularity objections to or

18  support for the rule or order that are cognizable within the

19  scope of the provisions and purposes of this chapter, or any

20  person who participated as a party in a proceeding challenging

21  the validity of a rule instituted pursuant to chapter 120.  In

22  order for the commission to accept a request for review

23  initiated by a party below, with regard to a specific order,

24  four members of the commission must determine on the basis of

25  the record below that the activity authorized by the order

26  would substantially affect natural resources of statewide or

27  regional significance. Review of an order may also be accepted

28  if four members of the commission determine that the order

29  raises issues of policy, statutory interpretation, or rule

30  interpretation that have regional or statewide significance

31  from the standpoint of agency precedent. The party requesting


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  1  the commission to review an order must allege with

  2  particularity, and the commission must find, that:

  3         1.  The order is in conflict with statutory

  4  requirements; or

  5         2.  The order is in conflict with the requirements of a

  6  duly adopted rule.

  7         (b)  Review by the Land and Water Adjudicatory

  8  Commission is appellate in nature and shall be based solely on

  9  the record below.  If there was no evidentiary administrative

10  proceeding below, the facts contained in the proposed agency

11  action, including any technical staff report, shall be deemed

12  undisputed.  The matter shall be heard by the commission not

13  more than 60 days after receipt of the request for review,

14  unless waived by the parties.

15         (c)  If the Land and Water Adjudicatory Commission

16  determines that a rule of a water management district is not

17  consistent with the provisions and purposes of this chapter,

18  it may require the water management district to initiate

19  rulemaking proceedings to amend or repeal the rule.  If the

20  commission determines that an order is not consistent with the

21  provisions and purposes of this chapter, the commission may

22  rescind or modify the order or remand the proceeding for

23  further action consistent with the order of the Land and Water

24  Adjudicatory Commission only if the commission determines that

25  the activity authorized by the order would substantially

26  affect natural resources of statewide or regional

27  significance.  In the case of an order which does not itself

28  substantially affect natural resources of statewide or

29  regional significance, but which raises issues of policy that

30  have regional or statewide significance from the standpoint of

31  agency precedent, the commission may direct the district to


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  1  initiate rulemaking to amend its rules to assure that future

  2  actions are consistent with the provisions and purposes of

  3  this chapter without modifying the order.

  4         (d)  In a review under this section of a construction

  5  permit issued pursuant to a conceptual permit under part IV,

  6  which conceptual permit is issued after July 1, 1993, a party

  7  to the review may not raise an issue which was or could have

  8  been raised in a review of the conceptual permit under this

  9  section.

10         (e)  A request for review under this section shall not

11  be a precondition to the seeking of judicial review pursuant

12  to s. 120.68 or the seeking of an administrative determination

13  of rule validity pursuant to s. 120.56.

14         (f)  The Florida Land and Water Adjudicatory Commission

15  may adopt rules to set forth its procedures for reviewing an

16  order or rule of a water management district consistent with

17  the provisions of this section.

18         (g)  For the purpose of this section, it shall be

19  presumed that activity authorized by an order will not affect

20  resources of statewide or regional significance if the

21  proposed activity:

22         1.  Occupies an area less than 10 acres in size, and

23         2.  Does not create impervious surfaces greater than 2

24  acres in size, and

25         3.  Is not located within 550 feet of the shoreline of

26  a named body of water designated as Outstanding Florida

27  Waters, and

28         4.  Does not adversely affect threatened or endangered

29  species.

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  1  This paragraph shall not operate to hold that any activity

  2  that exceeds these limits is presumed to affect resources of

  3  statewide or regional significance.  The determination of

  4  whether an activity will substantially affect resources of

  5  statewide or regional significance shall be made on a

  6  case-by-case basis, based upon facts contained in the record

  7  below.

  8         Section 5.  Subsection (5) of section 403.412, Florida

  9  Statutes, is amended to read:

10         403.412  Environmental Protection Act.--

11         (5)  In any administrative, licensing, or other

12  proceedings authorized by law for the protection of the air,

13  water, or other natural resources of the state from pollution,

14  impairment, or destruction, the Department of Legal Affairs, a

15  political subdivision or municipality of the state, or a

16  citizen of the state shall have standing to intervene as a

17  party on the filing of a verified pleading asserting that the

18  activity, conduct, or product to be licensed or permitted has

19  or will have the effect of impairing, polluting, or otherwise

20  injuring the air, water, or other natural resources of the

21  state. However, a citizen of this state whose substantial

22  interests have not been determined by agency action may not

23  institute, initiate, petition, or request a proceeding

24  pursuant to s. 120.569 or s. 120.57. This subsection does not

25  limit the ability of a nonprofit corporation or association,

26  organized in whole or in part to promote conservation, to

27  protect the environment or other biological values, or to

28  preserve historical sites to initiate, petition, or request a

29  proceeding pursuant to s. 120.569 or s. 120.57 upon asserting

30  in a verified petition that the activity, conduct, or product

31  to be licensed or permitted has or will have the effect of


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  1  impairing, polluting, or otherwise injuring the air, water, or

  2  other natural resources of the state.  The verified petition

  3  must also assert and be subject to subsequent proof, that the

  4  corporation or association itself, or a substantial number of

  5  its members, have substantial interests that will be affected

  6  by the conduct, activity, or product to be licensed or

  7  permitted.  Such substantial interests include the use and

  8  enjoyment of the air, water, or other natural resources of the

  9  state that will be affected as a result of the issuance of a

10  license or permit.

11         Section 6.  Paragraph (b) of subsection (1) of section

12  120.52, Florida Statutes, is amended to read:

13         120.52  Definitions.--As used in this act:

14         (1)  "Agency" means:

15         (b)  Each:

16         1.  State officer and state department, and each

17  departmental unit described in s. 20.04.

18         2.  State authority, including a regional water supply

19  authority.

20         3.  State board.

21         4.  State commission, including the Commission on

22  Ethics and the Fish and Wildlife Conservation Commission when

23  acting pursuant to statutory authority derived from the

24  Legislature.

25         5.  Regional planning agency.

26         6.  Multicounty special district with a majority of its

27  governing board comprised of nonelected persons.

28         7.  Educational units.

29         8.  Entity described in chapters 163, 373, 380, and 582

30  and s. 186.504.

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  1  This definition does not include any legal entity or agency

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

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

  4  administrative entity created by an interlocal agreement

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

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

  7  multicounty special district with a majority of its governing

  8  board comprised of elected persons; however, this definition

  9  shall include a regional water supply authority.

10         Section 7.  This act shall take effect upon becoming a

11  law.

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