HB 1735

1
A bill to be entitled
2An act relating to underground petroleum storage tanks;
3amending s. 376.3071, F.S.; directing the Department of
4Environmental Protection to encumber petroleum remediation
5funds uniformly throughout the state's fiscal year;
6providing for a prioritization within a priority scoring
7range; providing that limited source removal projects
8approved outside the established priority order may be
9funded from the Inland Protection Trust Fund; providing a
10priority order for these projects; limiting the use of the
11funds to certain specified purposes; limiting the amount
12of money allocated to such projects each fiscal year;
13providing for the repeal of the law on a specified date;
14amending s. 376.30713, F.S.; providing that the
15preapproved advanced cleanup provisions may apply to
16certain discharges under the petroleum cleanup
17participation program; amending s. 376.3075, F.S.;
18authorizing the Inland Protection Financing Corporation to
19borrow money and issue bonds to pay for large-scale
20cleanups that are eligible for state funding; extending
21the termination date of the corporation; providing an
22effective date.
23
24     WHEREAS, all of Florida's underground petroleum storage
25tank systems must be upgraded prior to January 1, 2010, and
26     WHEREAS, it is in the state's best interest to encourage
27early replacement of such systems, and
28     WHEREAS, it is in the state's best interest to provide
29financial assistance for limited source removal at the time of
30the system's replacement, and
31     WHEREAS, it is in the state's best interest to provide for
32a method of payment for large-scale cleanups in the future so as
33to minimize the impact on other cleanups that are underway, NOW,
34THEREFORE,
35
36Be It Enacted by the Legislature of the State of Florida:
37
38     Section 1.  Subsections (4) and (5) of section 376.3071,
39Florida Statutes, are amended to read:
40     376.3071  Inland Protection Trust Fund; creation; purposes;
41funding.--
42     (4)  USES.--Whenever, in its determination, incidents of
43inland contamination related to the storage of petroleum or
44petroleum products may pose a threat to the environment or the
45public health, safety, or welfare, the department shall obligate
46moneys available in the fund to provide for:
47     (a)  Prompt investigation and assessment of contamination
48sites.
49     (b)  Expeditious restoration or replacement of potable
50water supplies as provided in s. 376.30(3)(c)1.
51     (c)  Rehabilitation of contamination sites, which shall
52consist of cleanup of affected soil, groundwater, and inland
53surface waters, using the most cost-effective alternative that
54is technologically feasible and reliable and that provides
55adequate protection of the public health, safety, and welfare
56and minimizes environmental damage, in accordance with the site
57selection and cleanup criteria established by the department
58under subsection (5), except that nothing herein shall be
59construed to authorize the department to obligate funds for
60payment of costs which may be associated with, but are not
61integral to, site rehabilitation, such as the cost for
62retrofitting or replacing petroleum storage systems.
63     (d)  Maintenance and monitoring of contamination sites.
64     (e)  Inspection and supervision of activities described in
65this subsection.
66     (f)  Payment of expenses incurred by the department in its
67efforts to obtain from responsible parties the payment or
68recovery of reasonable costs resulting from the activities
69described in this subsection.
70     (g)  Payment of any other reasonable costs of
71administration, including those administrative costs incurred by
72the Department of Health in providing field and laboratory
73services, toxicological risk assessment, and other assistance to
74the department in the investigation of drinking water
75contamination complaints and costs associated with public
76information and education activities.
77     (h)  Establishment and implementation of the compliance
78verification program as authorized in s. 376.303(1)(a),
79including contracting with local governments or state agencies
80to provide for the administration of such program through
81locally administered programs, to minimize the potential for
82further contamination sites.
83     (i)  Funding of the provisions of ss. 376.305(6) and
84376.3072.
85     (j)  Activities related to removal and replacement of
86petroleum storage systems, exclusive of costs of any tank,
87piping, dispensing unit, or related hardware, if soil removal is
88preapproved as a component of site rehabilitation and requires
89removal of the tank where remediation is conducted under s.
90376.30711 or if such activities were justified in an approved
91remedial action plan performed pursuant to subsection (12).
92     (k)  Activities related to reimbursement application
93preparation and activities related to reimbursement application
94examination by a certified public accountant pursuant to
95subsection (12).
96     (l)  Reasonable costs of restoring property as nearly as
97practicable to the conditions which existed prior to activities
98associated with contamination assessment or remedial action
99taken under s. 376.303(4).
100     (m)  Repayment of loans to the fund.
101     (n)  Expenditure of sums from the fund to cover ineligible
102sites or costs as set forth in subsection (13), if the
103department in its discretion deems it necessary to do so. In
104such cases, the department may seek recovery and reimbursement
105of costs in the same manner and in accordance with the same
106procedures as are established for recovery and reimbursement of
107sums otherwise owed to or expended from the fund.
108     (o)  Payment of amounts payable under any service contract
109entered into by the department pursuant to s. 376.3075, subject
110to annual appropriation by the Legislature.
111     (p)  Petroleum remediation pursuant to s. 376.30711
112throughout a state fiscal year. The department shall establish a
113process to uniformly encumber appropriated funds throughout a
114state fiscal year and shall allow for emergencies and imminent
115threats to human health and the environment as provided in
116paragraph (5)(a). This paragraph does not apply to
117appropriations associated with the free product recovery
118initiative of paragraph (5)(c) or the preapproved advanced
119cleanup program of s. 376.30713.
120
121The Inland Protection Trust Fund may only be used to fund the
122activities in ss. 376.30-376.319 except ss. 376.3078 and
123376.3079. Amounts on deposit in the Inland Protection Trust Fund
124in each fiscal year shall first be applied or allocated for the
125payment of amounts payable by the department pursuant to
126paragraph (o) under a service contract entered into by the
127department pursuant to s. 376.3075 and appropriated in each year
128by the Legislature prior to making or providing for other
129disbursements from the fund. Nothing in this subsection shall
130authorize the use of the Inland Protection Trust Fund for
131cleanup of contamination caused primarily by a discharge of
132solvents as defined in s. 206.9925(6), or polychlorinated
133biphenyls when their presence causes them to be hazardous
134wastes, except solvent contamination which is the result of
135chemical or physical breakdown of petroleum products and is
136otherwise eligible. Facilities used primarily for the storage of
137motor or diesel fuels as defined in ss. 206.01 and 206.86 shall
138be presumed not to be excluded from eligibility pursuant to this
139section.
140     (5)  SITE SELECTION AND CLEANUP CRITERIA.--
141     (a)  The department shall adopt rules to establish
142priorities based upon a scoring system for state-conducted
143cleanup at petroleum contamination sites based upon factors that
144include, but need not be limited to:
145     1.  The degree to which human health, safety, or welfare
146may be affected by exposure to the contamination;
147     2.  The size of the population or area affected by the
148contamination;
149     3.  The present and future uses of the affected aquifer or
150surface waters, with particular consideration as to the
151probability that the contamination is substantially affecting,
152or will migrate to and substantially affect, a known public or
153private source of potable water; and
154     4.  The effect of the contamination on the environment.
155
156Moneys in the fund shall then be obligated for activities
157described in paragraphs (4)(a)-(e) at individual sites in
158accordance with such established criteria. However, nothing in
159this paragraph shall be construed to restrict the department
160from modifying the priority status of a rehabilitation site
161where conditions warrant, taking into consideration the actual
162distance between the contamination site and groundwater or
163surface water receptors or other factors that affect the risk of
164exposure to petroleum products' chemicals of concern. The
165department may use the effective date of a department final
166order granting eligibility pursuant to subsections (9) and (13)
167and ss. 376.305(6) and 376.3072 to establish a prioritization
168system within a particular priority scoring range.
169     (b)  It is the intent of the Legislature to protect the
170health of all people under actual circumstances of exposure. The
171secretary shall establish criteria by rule for the purpose of
172determining, on a site-specific basis, the rehabilitation
173program tasks that comprise a site rehabilitation program and
174the level at which a rehabilitation program task and a site
175rehabilitation program may be deemed completed. In establishing
176the rule, the department shall incorporate, to the maximum
177extent feasible, risk-based corrective action principles to
178achieve protection of human health and safety and the
179environment in a cost-effective manner as provided in this
180subsection. Criteria for determining what constitutes a
181rehabilitation program task or completion of site rehabilitation
182program tasks and site rehabilitation programs shall be based
183upon the factors set forth in paragraph (a) and the following
184additional factors:
185     1.  The current exposure and potential risk of exposure to
186humans and the environment including multiple pathways of
187exposure.
188     2.  The appropriate point of compliance with cleanup target
189levels for petroleum products' chemicals of concern. The point
190of compliance shall be at the source of the petroleum
191contamination. However, the department is authorized to
192temporarily move the point of compliance to the boundary of the
193property, or to the edge of the plume when the plume is within
194the property boundary, while cleanup, including cleanup through
195natural attenuation processes in conjunction with appropriate
196monitoring, is proceeding. The department also is authorized,
197pursuant to criteria provided for in this paragraph, to
198temporarily extend the point of compliance beyond the property
199boundary with appropriate monitoring, if such extension is
200needed to facilitate natural attenuation or to address the
201current conditions of the plume, provided human health, public
202safety, and the environment are adequately protected. Temporary
203extension of the point of compliance beyond the property
204boundary, as provided in this subparagraph, shall include notice
205to local governments and owners of any property into which the
206point of compliance is allowed to extend.
207     3.  The appropriate site-specific cleanup goal. The site-
208specific cleanup goal shall be that all petroleum contamination
209sites ultimately achieve the applicable cleanup target levels
210provided in this paragraph. However, the department is
211authorized to allow concentrations of the petroleum products'
212chemicals of concern to temporarily exceed the applicable
213cleanup target levels while cleanup, including cleanup through
214natural attenuation processes in conjunction with appropriate
215monitoring, is proceeding, provided human health, public safety,
216and the environment are adequately protected.
217     4.  The appropriateness of using institutional or
218engineering controls. Site rehabilitation programs may include
219the use of institutional or engineering controls to eliminate
220the potential exposure to petroleum products' chemicals of
221concern to humans or the environment. Use of such controls must
222be preapproved by the department and institutional controls
223shall not be acquired with funds from the Inland Protection
224Trust Fund. When institutional or engineering controls are
225implemented to control exposure, the removal of such controls
226must have prior department approval and must be accompanied
227immediately by the resumption of active cleanup, or other
228approved controls, unless cleanup target levels pursuant to this
229paragraph have been achieved.
230     5.  The additive effects of the petroleum products'
231chemicals of concern. The synergistic effects of petroleum
232products' chemicals of concern shall also be considered when the
233scientific data becomes available.
234     6.  Individual site characteristics which shall include,
235but not be limited to, the current and projected use of the
236affected groundwater in the vicinity of the site, current and
237projected land uses of the area affected by the contamination,
238the exposed population, the degree and extent of contamination,
239the rate of contaminant migration, the apparent or potential
240rate of contaminant degradation through natural attenuation
241processes, the location of the plume, and the potential for
242further migration in relation to site property boundaries.
243     7.  Applicable state water quality standards.
244     a.  Cleanup target levels for petroleum products' chemicals
245of concern found in groundwater shall be the applicable state
246water quality standards. Where such standards do not exist, the
247cleanup target levels for groundwater shall be based on the
248minimum criteria specified in department rule. The department
249shall consider the following, as appropriate, in establishing
250the applicable minimum criteria: calculations using a lifetime
251cancer risk level of 1.0E-6; a hazard index of 1 or less; the
252best achievable detection limit; the naturally occurring
253background concentration; or nuisance, organoleptic, and
254aesthetic considerations.
255     b.  Where surface waters are exposed to petroleum
256contaminated groundwater, the cleanup target levels for the
257petroleum products' chemicals of concern shall be based on the
258surface water standards as established by department rule. The
259point of measuring compliance with the surface water standards
260shall be in the groundwater immediately adjacent to the surface
261water body.
262     8.  Whether deviation from state water quality standards or
263from established criteria is appropriate. The department may
264issue a "No Further Action Order" based upon the degree to which
265the desired cleanup target level is achievable and can be
266reasonably and cost-effectively implemented within available
267technologies or engineering and institutional control
268strategies. Where a state water quality standard is applicable,
269a deviation may not result in the application of cleanup target
270levels more stringent than said standard. In determining whether
271it is appropriate to establish alternate cleanup target levels
272at a site, the department may consider the effectiveness of
273source removal that has been completed at the site and the
274practical likelihood of: the use of low yield or poor quality
275groundwater; the use of groundwater near marine surface water
276bodies; the current and projected use of the affected
277groundwater in the vicinity of the site; or the use of
278groundwater in the immediate vicinity of the storage tank area,
279where it has been demonstrated that the groundwater
280contamination is not migrating away from such localized source;
281provided human health, public safety, and the environment are
282adequately protected.
283     9.  Appropriate cleanup target levels for soils.
284     a.  In establishing soil cleanup target levels for human
285exposure to petroleum products' chemicals of concern found in
286soils from the land surface to 2 feet below land surface, the
287department shall consider the following, as appropriate:
288calculations using a lifetime cancer risk level of 1.0E-6; a
289hazard index of 1 or less; the best achievable detection limit;
290or the naturally occurring background concentration.
291     b.  Leachability-based soil target levels shall be based on
292protection of the groundwater cleanup target levels or the
293alternate cleanup target levels for groundwater established
294pursuant to this paragraph, as appropriate. Source removal and
295other cost-effective alternatives that are technologically
296feasible shall be considered in achieving the leachability soil
297target levels established by the department. The leachability
298goals shall not be applicable if the department determines,
299based upon individual site characteristics, that petroleum
300products' chemicals of concern will not leach into the
301groundwater at levels which pose a threat to human health and
302safety or the environment.
303
304However, nothing in this paragraph shall be construed to
305restrict the department from temporarily postponing completion
306of any site rehabilitation program for which funds are being
307expended whenever such postponement is deemed necessary in order
308to make funds available for rehabilitation of a contamination
309site with a higher priority status.
310     (c)  The department shall require source removal, if
311warranted and cost-effective, at each site eligible for
312restoration funding from the Inland Protection Trust Fund.
313     1.  Funding for free product recovery may be provided in
314advance of the order established by the priority ranking system
315under pursuant to paragraph (a) for site cleanup activities.
316However, a separate prioritization for free product recovery
317shall be established consistent with the provisions of paragraph
318(a). No more than $5 million shall be encumbered from the Inland
319Protection Trust Fund in any fiscal year for free product
320recovery conducted in advance of the priority order under
321pursuant to paragraph (a) established for site cleanup
322activities.
323     2.  Funding for limited interim soil-source removals for
324sites that will become inaccessible for future remediation due
325to road infrastructure and right-of-way restrictions resulting
326from a pending Department of Transportation road construction
327project or for secondary containment upgrading of underground
328storage tanks required under Chapter 62-761, Florida
329Administrative Code, may be provided in advance of the order
330established by the priority ranking system under paragraph (a)
331for site cleanup activities. The department shall provide
332written guidance on the limited source removal information and
333technical evaluation necessary to justify a request for a
334limited source removal in advance of the priority order pursuant
335to paragraph (a) established for site cleanup activities.
336Prioritization for limited source removal projects associated
337with a secondary containment upgrade in any fiscal year shall be
338determined on a first-come, first-served basis according to the
339approval date issued under s. 376.30711 for the limited source
340removal. Funding for limited source removals associated with
341secondary containment upgrades shall be limited to 10 sites in
342each fiscal year for each facility owner and any related person.
343The limited source removal for secondary containment upgrades
344shall be completed no later than 6 months after the department
345issues its approval of the project and the approval
346automatically expires at the end of the 6 months. Funding for
347Department of Transportation and secondary containment upgrade
348source removals may not exceed $50,000 for a single facility
349unless the department makes a determination that it is cost-
350effective and environmentally beneficial to exceed this amount,
351but in no event shall the department authorize costs in excess
352of $100,000 for a single facility. Department funding for
353limited interim soil-source removals associated with Department
354of Transportation projects and secondary containment upgrades
355shall be limited to supplemental soil assessment, soil
356screening, soil removal, backfill material, treatment or
357disposal of the contaminated soil, dewatering related to the
358contaminated soil removal in an amount of up to 10 percent of
359the total interim soil-source removal project costs, treatment,
360and disposal of the contaminated groundwater and preparation of
361the source removal report. No other costs associated with the
362facility upgrade may be paid with department funds. No more than
363$1 million for Department of Transportation limited source
364removal projects and $10 million for secondary containment
365upgrade limited source removal projects conducted in advance of
366the priority order established under paragraph (a) for site
367cleanup activities shall be encumbered from the Inland
368Protection Trust Fund in any fiscal year. This subparagraph is
369repealed effective June 30, 2008.
370     3.  Once free product removal and other source removal
371identified in this paragraph are completed at a site, and
372notwithstanding the order established by the priority ranking
373system under paragraph (a) for site cleanup activities is
374complete, the department may shall reevaluate the site to
375determine the degree of active cleanup needed to continue site
376rehabilitation. Further, the department shall determine if the
377reevaluated site qualifies for natural attenuation monitoring
378only or if no further action is required to rehabilitate the
379site. If additional site rehabilitation is necessary to reach no
380further action status, the site rehabilitation shall be
381conducted in the order established by the priority ranking
382system under paragraph (a) and the department is encouraged to
383utilize natural attenuation and monitoring where site conditions
384warrant.
385     Section 2.  Subsection (1) of section 376.30713, Florida
386Statutes, is amended to read:
387     376.30713  Preapproved advanced cleanup.--
388     (1)  In addition to the legislative findings provided in s.
389376.30711, the Legislature finds and declares:
390     (a)  That the inability to conduct site rehabilitation in
391advance of a site's priority ranking pursuant to s.
392376.3071(5)(a) may substantially impede or prohibit property
393transactions or the proper completion of public works projects.
394     (b)  While the first priority of the state is to provide
395for protection of the water resources of the state, human
396health, and the environment, the viability of commerce is of
397equal importance to the state.
398     (c)  It is in the public interest and of substantial
399economic benefit to the state to provide an opportunity for site
400rehabilitation to be conducted on a limited basis at
401contaminated sites, in advance of the site's priority ranking,
402to facilitate property transactions or public works projects.
403     (d)  It is appropriate for persons responsible for site
404rehabilitation to share the costs associated with managing and
405conducting preapproved advanced cleanup, to facilitate the
406opportunity for preapproved advanced cleanup, and to mitigate
407the additional costs that will be incurred by the state in
408conducting site rehabilitation in advance of the site's priority
409ranking. Such cost sharing will result in more contaminated
410sites being cleaned up and greater environmental benefits to the
411state. The provisions of this section shall only be available
412for sites eligible for restoration funding under EDI, ATRP, or
413PLIRP. This section is available for discharges eligible for
414restoration funding under the petroleum cleanup participation
415program for the state's cost share of site rehabilitation.
416Applications shall include a cost-sharing commitment for this
417section in addition to the 25-percent-copayment requirement of
418the petroleum cleanup participation program. This section is not
419available for any discharge under a petroleum cleanup
420participation program where the 25-percent-copayment requirement
421of the petroleum cleanup participation program has been reduced
422or eliminated pursuant to s. 376.3071(13)(c).
423     Section 3.  Section 376.3075, Florida Statutes, amended to
424read:
425     376.3075  Inland Protection Financing Corporation.--
426     (1)  There is hereby created a nonprofit public benefit
427corporation to be known as the "Inland Protection Financing
428Corporation" for the purpose of financing the rehabilitation of
429petroleum contamination sites pursuant to ss. 376.30-376.319 and
430the payment, purchase, and settlement of reimbursement
431obligations of the department pursuant to s. 376.3071(12),
432existing as of December 31, 1996. Such reimbursement obligations
433are referred to in this section as existing reimbursement
434obligations. The corporation shall terminate on July 1, 2025
4352011.
436     (2)  The corporation shall be governed by a board of
437directors consisting of the Governor or the Governor's designee,
438the Chief Financial Officer or the Chief Financial Officer's
439designee, the chair of the Florida Black Business Investment
440Board, and the secretary of the Department of Environmental
441Protection. The executive director of the State Board of
442Administration shall be the chief executive officer of the
443corporation and shall direct and supervise the administrative
444affairs of the corporation and shall control, direct, and
445supervise the operation of the corporation. The corporation
446shall also have such other officers as may be determined by the
447board of directors.
448     (3)  The corporation shall have all the powers of a
449corporate body under the laws of the state to the extent not
450inconsistent with or restricted by the provisions of this
451section, including, but not limited to, the power to:
452     (a)  Adopt, amend, and repeal bylaws not inconsistent with
453this section.
454     (b)  Sue and be sued.
455     (c)  Adopt and use a common seal.
456     (d)  Acquire, purchase, hold, lease, and convey such real
457and personal property as may be proper or expedient to carry out
458the purposes of the corporation and this section, and to sell,
459lease, or otherwise dispose of such property.
460     (e)  Elect or appoint and employ such officers, agents, and
461employees as the corporation deems advisable to operate and
462manage the affairs of the corporation, which officers, agents,
463and employees may be officers or employees of the department and
464the state agencies represented on the board of directors of the
465corporation.
466     (f)  Borrow money and issue notes, bonds, certificates of
467indebtedness, or other obligations or evidences of indebtedness
468necessary to pay the backlog or to reimburse moneys from the
469Inland Protection Trust Fund used pursuant to subsection (6) and
470to pay for large-scale cleanups, such as ports, airports, and
471terminal facilities, which are eligible for state funding.
472     (g)  Make and execute any and all contracts, trust
473agreements, and other instruments and agreements necessary or
474convenient to accomplish the purposes of the corporation and
475this section.
476     (h)  Select, retain, and employ professionals, contractors,
477or agents, which may include the Florida State Board of
478Administration's Division of Bond Finance, as shall be necessary
479or convenient to enable or assist the corporation in carrying
480out the purposes of the corporation and this section.
481     (i)  Do any act or thing necessary or convenient to carry
482out the purposes of the corporation and this section and the
483powers provided in this section.
484     (4)  The corporation is authorized to enter into one or
485more service contracts with the department pursuant to which the
486corporation shall provide services to the department in
487connection with financing the functions and activities provided
488for in ss. 376.30-376.319. The department may enter into one or
489more such service contracts with the corporation and to provide
490for payments under such contracts pursuant to s. 376.3071(4)(o),
491subject to annual appropriation by the Legislature. The proceeds
492from such service contracts may be used for the costs and
493expenses of administration of the corporation after payments as
494set forth in subsection (5). Each service contract shall have a
495term not to exceed 10 years and shall terminate no later than
496July 1, 2025 2011. The aggregate amount payable from the Inland
497Protection Trust Fund under all such service contracts shall not
498exceed $65 million in any state fiscal year. Amounts annually
499appropriated and applied to make payments under such service
500contracts shall not include any funds derived from penalties or
501other payments received from any property owner or private
502party, including payments received from s. 376.3071(6)(b). In
503compliance with provisions of s. 287.0641 and other applicable
504provisions of law, the obligations of the department under such
505service contracts shall not constitute a general obligation of
506the state or a pledge of the faith and credit or taxing power of
507the state nor shall such obligations be construed in any manner
508as an obligation of the State Board of Administration or
509entities for which it invests funds, other than the department
510as provided in this section, but shall be payable solely from
511amounts available in the Inland Protection Trust Fund, subject
512to annual appropriation. In compliance with this subsection and
513s. 287.0582, the service contract shall expressly include the
514following statement: "The State of Florida's performance and
515obligation to pay under this contract is contingent upon an
516annual appropriation by the Legislature."
517     (5)  The corporation may issue and incur notes, bonds,
518certificates of indebtedness, or other obligations or evidences
519of indebtedness payable from and secured by amounts payable to
520the corporation by the department under a service contract
521entered into pursuant to subsection (4) for the purpose of
522paying, purchasing, or settling existing reimbursement
523obligations. The term of any such note, bond, certificate of
524indebtedness, or other obligation or evidence of indebtedness
525shall not have a financing term that exceeds 6 years, nor shall
526the total payments for principal and interest on any such note,
527bond, certificate of indebtedness, or other obligation or
528evidence of indebtedness exceed the original amount of approved
529reimbursement claims to be paid, purchased, or settled by the
530corporation by more than $50 million. The corporation may select
531its financing team and issue its obligations through competitive
532bidding or negotiated contracts, whichever is most cost-
533effective. Any such indebtedness of the corporation shall not
534constitute a debt or obligation of the state or a pledge of the
535faith and credit or taxing power of the state, but shall be
536payable from and secured by payments made by the department
537under the service contract pursuant to s. 376.3071(4)(o).
538     (6)  Upon the issuance of debt obligations by the
539corporation pursuant to subsection (5) for the payment,
540purchase, or settlement of existing reimbursement obligations,
541amounts on deposit in the Inland Protection Trust Fund shall not
542be available for the payment, purchase, or settlement of
543existing reimbursement obligations to the extent proceeds of
544such debt obligations are available for the payment of such
545existing reimbursement obligations. If, after the initial
546issuance of debt obligations pursuant to subsection (5), amounts
547on deposit in the Inland Protection Trust Fund are used to pay
548existing reimbursement obligations, the corporation shall
549reimburse the Inland Protection Trust Fund for such payments
550from available proceeds of debt obligations issued pursuant to
551subsection (5). Payment, purchase, or settlement by the
552corporation of existing reimbursement obligations otherwise
553payable pursuant to s. 376.3071(12) shall satisfy the obligation
554of the department to make such payments. Any such existing
555reimbursement obligations purchased by the corporation shall be
556satisfied and extinguished upon purchase by the corporation.
557     (7)  The corporation shall pay, purchase, or settle
558existing reimbursement obligations as determined by the
559department. The department shall implement the repayment
560priorities and method and amount of payments pursuant to s.
561376.3071(12). However, any claims for reimbursement pursuant to
562s. 376.3071(12) that the corporation is unable to pay because of
563the limitations contained in subsection (5) shall be paid by the
564department from the receipts of the Inland Protection Trust
565Fund.
566     (8)  The fulfillment of the purposes of the corporation
567promotes the health, safety, and general welfare of the people
568of the state and serves as essential governmental functions and
569a paramount public purpose.
570     (9)  The corporation is exempt from taxation and
571assessments of any nature whatsoever upon its income and any
572property, assets, or revenues acquired, received, or used in the
573furtherance of the purposes provided in this chapter. The
574obligations of the corporation incurred pursuant to subsection
575(5) and the interest and income thereon and all security
576agreements, letters of credit, liquidity facilities, or other
577obligations or instruments arising out of, entered into in
578connection therewith, or given to secure payment thereof are
579exempt from all taxation, provided such exemption does not apply
580to any tax imposed by chapter 220 on the interest, income, or
581profits on debt obligations owned by corporations.
582     (10)  The corporation shall validate obligations to be
583incurred pursuant to subsection (5) and the validity and
584enforceability of any service contracts providing for payments
585pledged to the payment thereof by proceedings under chapter 75.
586 The validation complaint shall be filed only in the Circuit
587Court for Leon County.  The notice required to be published by
588s. 75.06 shall be published in Leon County and the complaint and
589order of the circuit court shall be served only on the State
590Attorney for the Second Judicial Circuit. Sections 75.04(2) and
59175.06(2) shall not apply to a complaint for validation filed as
592authorized in this subsection.  The validation of at least the
593first obligations incurred pursuant to subsection (5) shall be
594appealed to the Supreme Court, to be handled on an expedited
595basis.
596     (11)  The corporation shall not be deemed to be a special
597district for purposes of chapter 189 or a unit of local
598government for purposes of part III of chapter 218. The
599provisions of chapters 120 and 215, except the limitation on
600interest rates provided by s. 215.84 which applies to
601obligations of the corporation issued pursuant to this section,
602and part I of chapter 287, except ss. 287.0582 and 287.0641,
603shall not apply to this section, the corporation created hereby,
604the service contracts entered into pursuant to this section, or
605to debt obligations issued by the corporation as contemplated in
606this section.
607     (12)  In no event shall any of the benefits or earnings of
608the corporation inure to the benefit of any private person.
609     (13)  Upon dissolution of the corporation, title to all
610property owned by the corporation shall revert to the state.
611     (14)  The corporation may contract with the State Board of
612Administration to serve as trustee with respect to debt
613obligations issued by the corporation as contemplated by this
614section and to hold, administer, and invest proceeds of such
615debt obligations and other funds of the corporation and to
616perform other services required by the corporation. The State
617Board of Administration may perform such services and may
618contract with others to provide all or a part of such services
619and to recover its and such other costs and expenses thereof.
620     Section 4.  This act shall take effect July 1, 2005.


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