February 24, 2020
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       Florida Senate - 2010                                    SB 2296
       
       
       
       By Senator Baker
       
       
       
       
       20-01511D-10                                          20102296__
    1                        A bill to be entitled                      
    2         An act relating to drinking water; amending ss. 11.45
    3         and 403.1835, F.S.; conforming terms to changes made
    4         by the act; amending s. 403.1837, F.S.; renaming the
    5         Florida Water Pollution Control Financing Corporation
    6         as the Florida Water Pollution Control and Drinking
    7         Water Financing Corporation; expanding the
    8         jurisdiction of the corporation to include loans made
    9         from the drinking water state revolving loan fund;
   10         amending s. 403.8532, F.S.; providing definitions for
   11         the terms “bonds” and “corporation”; conforming
   12         provisions to changes made by the act; authorizing the
   13         Department of Environmental Protection to adopt
   14         certain rules; amending s. 403.8533, F.S.; revising
   15         the purposes for the Drinking Water Revolving Loan
   16         Trust Fund; providing that the trust fund is exempt
   17         from the termination provisions of the State
   18         Constitution; providing an effective date.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Paragraph (o) of subsection (3) of section
   23  11.45, Florida Statutes, is amended to read:
   24         11.45 Definitions; duties; authorities; reports; rules.—
   25         (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
   26  General may, pursuant to his or her own authority, or at the
   27  direction of the Legislative Auditing Committee, conduct audits
   28  or other engagements as determined appropriate by the Auditor
   29  General of:
   30         (o) The Florida Water Pollution Control and Drinking Water
   31  Financing Corporation created pursuant to s. 403.1837.
   32         Section 2. Subsection (2) of section 403.1835, Florida
   33  Statutes, is reordered and amended, and subsections (3) and (10)
   34  of that section is amended, to read:
   35         403.1835 Water pollution control financial assistance.—
   36         (2) As used in For the purposes of this section and s.
   37  403.1837, the term:
   38         (c)(a) “Local governmental agencies” refers to any
   39  municipality, county, district, or authority, or any agency
   40  thereof, or a combination of two or more of the foregoing,
   41  acting jointly in connection with a project having jurisdiction
   42  over collection, transmission, treatment, or disposal of sewage,
   43  industrial wastes, stormwater, or other wastes and includes a
   44  district or authority whose the principal responsibility of
   45  which is to provide airport, industrial or research park, or
   46  port facilities to the public.
   47         (a)(b) “Bonds” means bonds, certificates, or other
   48  obligations of indebtedness issued by the Florida Water
   49  Pollution Control Financing corporation under this section and
   50  s. 403.1837.
   51         (b)(c) “Corporation” means the Florida Water Pollution
   52  Control and Drinking Water Financing Corporation created under
   53  s. 403.1837.
   54         (3) The department may provide financial assistance through
   55  any program authorized under 33 U.S.C. s. 1383 603 of the
   56  Federal Water Pollution Control Act (Clean Water Act), Pub. L.
   57  No. 92-500, as amended, including, but not limited to, making
   58  grants and loans, providing loan guarantees, purchasing loan
   59  insurance or other credit enhancements, and buying or
   60  refinancing local debt. This financial assistance must be
   61  administered in accordance with this section and applicable
   62  federal authorities. The department shall administer all
   63  programs operated from funds secured through the activities of
   64  the Florida Water Pollution Control Financing corporation under
   65  s. 403.1837, to fulfill the purposes of this section.
   66         (a) The department may make or request the corporation to
   67  make loans to local government agencies, which agencies may
   68  pledge any revenue available to them to repay any funds
   69  borrowed.
   70         (b) The department may make or request the corporation to
   71  make loans, grants, and deposits to other entities eligible to
   72  participate in the financial assistance programs authorized
   73  under the Federal Water Pollution Control Act, or as a result of
   74  other federal action, which entities may pledge any revenue
   75  available to them to repay any funds borrowed. Notwithstanding
   76  s. 17.57, the department may make deposits to financial
   77  institutions that which earn less than the prevailing rate for
   78  United States Treasury securities that have with corresponding
   79  maturities for the purpose of enabling such financial
   80  institutions to make below-market interest rate loans to
   81  entities qualified to receive loans under this section and the
   82  rules of the department.
   83         (c) The department shall administer financial assistance so
   84  that at least 15 percent of the funding made available each year
   85  under this section is reserved for use by small communities
   86  during the year it is reserved.
   87         (d) The department may make grants to financially
   88  disadvantaged small communities, as defined in s. 403.1838,
   89  using funds made available from grant allocations on loans
   90  authorized under subsection (4). The grants must be administered
   91  in accordance with s. 403.1838.
   92         (10) The department may adopt rules regarding program
   93  administration; project eligibilities and priorities, including
   94  the development and management of project priority lists;
   95  financial assistance application requirements associated with
   96  planning, design, construction, and implementation activities,
   97  including environmental and engineering requirements; financial
   98  assistance agreement conditions; disbursement and repayment
   99  provisions; auditing provisions; program exceptions; the
  100  procedural and contractual relationship between the department
  101  and the Florida Water Pollution Control Financing corporation
  102  under s. 403.1837; and other provisions consistent with the
  103  purposes of this section.
  104         Section 3. Section 403.1837, Florida Statutes, is amended
  105  to read:
  106         403.1837 Florida Water Pollution Control and Drinking Water
  107  Financing Corporation.—
  108         (1) The Florida Water Pollution Control and Drinking Water
  109  Financing Corporation is created as a nonprofit public-benefit
  110  corporation for the purpose of financing or refinancing the
  111  costs of water pollution control projects and activities
  112  described in ss. s. 403.1835 and 403.8532. The projects and
  113  activities described in those sections that section are found to
  114  constitute a public governmental purpose; are be necessary for
  115  the health, safety, and welfare of all residents; and include
  116  legislatively approved fixed capital outlay projects. Fulfilling
  117  The fulfillment of the purposes of the corporation promotes the
  118  health, safety, and welfare of the people of the state and
  119  serves essential governmental functions and a paramount public
  120  purpose. The activities of the corporation are specifically
  121  limited to assisting the department in implementing financing
  122  activities to provide funding for the programs authorized in ss.
  123  s. 403.1835 and 403.8532. All other activities relating to the
  124  purposes for which the corporation raises funds are the
  125  responsibility of the department, including, but not limited to,
  126  development of program criteria, review of applications for
  127  financial assistance, decisions relating to the number and
  128  amount of loans or other financial assistance to be provided,
  129  and enforcement of the terms of any financial assistance
  130  agreements provided through funds raised by the corporation. The
  131  corporation shall terminate upon fulfilling fulfillment of the
  132  purposes of this section.
  133         (2) The corporation shall be governed by a board of
  134  directors consisting of the Governor’s Budget Director or the
  135  budget director’s designee, the Chief Financial Officer or the
  136  Chief Financial Officer’s designee, and the Secretary of
  137  Environmental Protection or the secretary’s designee. The
  138  executive director of the State Board of Administration shall be
  139  the chief executive officer of the corporation; shall direct and
  140  supervise the administrative affairs of the corporation; and
  141  shall control, direct, and supervise operation of the
  142  corporation. The corporation shall have such other officers as
  143  may be determined by the board of directors.
  144         (3) The corporation shall have all the powers of a
  145  corporate body under the laws of the state, consistent to the
  146  extent not inconsistent with or restricted by this section,
  147  including, but not limited to, the power to:
  148         (a) Adopt, amend, and repeal bylaws consistent not
  149  inconsistent with this section.
  150         (b) Sue and be sued.
  151         (c) Adopt and use a common seal.
  152         (d) Acquire, purchase, hold, lease, and convey any real and
  153  personal property as may be proper or expedient to carry out the
  154  purposes of the corporation and this section, and to sell,
  155  lease, or otherwise dispose of that property.
  156         (e) Elect or appoint and employ such officers, agents, and
  157  employees as the corporation considers advisable to operate and
  158  manage the affairs of the corporation, who which officers,
  159  agents, and employees may be officers or employees of the
  160  department and the state agencies represented on the board of
  161  directors of the corporation.
  162         (f) Borrow money and issue notes, bonds, certificates of
  163  indebtedness, or other obligations or evidences of indebtedness
  164  described in s. 403.1835 or s. 403.8532.
  165         (g) Operate, as specifically directed by the department,
  166  any program to provide financial assistance authorized under s.
  167  403.1835(3) or s. 403.8532(3), which may be funded from any
  168  funds received under a service contract with the department,
  169  from the proceeds of bonds issued by the corporation, or from
  170  any other funding sources obtained by the corporation.
  171         (h) Sell all or any portion of the loans issued under s.
  172  403.1835 or s. 403.8532 to accomplish the purposes of those
  173  sections this section and s. 403.1835.
  174         (i) Make and execute any contracts, trust agreements, and
  175  other instruments and agreements necessary or convenient to
  176  accomplish the purposes of the corporation and this section.
  177         (j) Select, retain, and employ professionals, contractors,
  178  or agents, which may include the Division of Bond Finance of the
  179  State Board of Administration, as are necessary or convenient to
  180  enable or assist the corporation in carrying out its purposes
  181  and this section.
  182         (k) Do any act or thing necessary or convenient to carry
  183  out the purposes of the corporation and this section.
  184         (4) The corporation shall evaluate all financial and market
  185  conditions necessary and prudent for the purpose of making
  186  sound, financially responsible, and cost-effective decisions in
  187  order to secure additional funds to fulfill the purposes of this
  188  section and ss. s. 403.1835 and 403.8532.
  189         (5) The corporation may enter into one or more service
  190  contracts with the department under which the corporation shall
  191  provide services to the department in connection with financing
  192  the functions, projects, and activities provided for in ss. s.
  193  403.1835 and 403.8532. The department may enter into one or more
  194  service contracts with the corporation and provide for payments
  195  under those contracts pursuant to s. 403.1835(9) or s. 403.8533,
  196  subject to annual appropriation by the Legislature.
  197         (a) The service contracts may provide for the transfer of
  198  all or a portion of the funds in the Wastewater Treatment and
  199  Stormwater Management Revolving Loan Trust Fund and the Drinking
  200  Water Revolving Loan Trust Fund to the corporation for use by
  201  the corporation for costs incurred by the corporation in its
  202  operations, including, but not limited to, payment of debt
  203  service, reserves, or other costs in relation to bonds issued by
  204  the corporation, for use by the corporation at the request of
  205  the department to directly provide the types of local financial
  206  assistance provided for in ss. s. 403.1835(3) and 403.8532(3),
  207  or for payment of the administrative costs of the corporation.
  208         (b) The department may not transfer funds under any service
  209  contract with the corporation without a specific appropriation
  210  for such purpose in the General Appropriations Act, except for
  211  administrative expenses incurred by the State Board of
  212  Administration or other expenses necessary under documents
  213  authorizing or securing previously issued bonds of the
  214  corporation. The service contracts may also provide for the
  215  assignment or transfer to the corporation of any loans made by
  216  the department.
  217         (c) The service contracts may establish the operating
  218  relationship between the department and the corporation and must
  219  shall require the department to request the corporation to issue
  220  bonds before any issuance of bonds by the corporation, to take
  221  any actions necessary to enforce the agreements entered into
  222  between the corporation and other parties, and to take all other
  223  actions necessary to assist the corporation in its operations.
  224         (d) In compliance with s. 287.0641 and other applicable
  225  provisions of law, the obligations of the department under the
  226  service contracts do not constitute a general obligation of the
  227  state or a pledge of the faith and credit or taxing power of the
  228  state, nor may the obligations be construed in any manner as an
  229  obligation of the State Board of Administration or entities for
  230  which it invests funds, or of the department except as provided
  231  in this section as payable solely from amounts available under
  232  any service contract between the corporation and the department,
  233  subject to appropriation.
  234         (e) In compliance with this subsection and s. 287.0582,
  235  service contracts must expressly include the following
  236  statement: “The State of Florida’s performance and obligation to
  237  pay under this contract is contingent upon an annual
  238  appropriation by the Legislature.”
  239         (6) The corporation may issue and incur notes, bonds,
  240  certificates of indebtedness, or other obligations or evidences
  241  of indebtedness payable from and secured by amounts received
  242  from payment of loans and other moneys received by the
  243  corporation, including, but not limited to, amounts payable to
  244  the corporation by the department under a service contract
  245  entered into under subsection (5). The proceeds of the bonds may
  246  be used for the purpose of providing funds for projects and
  247  activities provided for in subsection (1) or for refunding bonds
  248  previously issued by the corporation. The corporation may select
  249  a financing team and issue obligations through competitive
  250  bidding or negotiated contracts, whichever is most cost
  251  effective. Any Such indebtedness of the corporation does not
  252  constitute a debt or obligation of the state or a pledge of the
  253  faith and credit or taxing power of the state.
  254         (7) The corporation is exempt from taxation and assessments
  255  of any nature whatsoever upon its income and any property,
  256  assets, or revenues acquired, received, or used in the
  257  furtherance of the purposes provided in ss. 403.1835, and
  258  403.1838, and 403.8532. The obligations of the corporation
  259  incurred under subsection (6) and the interest and income on the
  260  obligations and all security agreements, letters of credit,
  261  liquidity facilities, or other obligations or instruments
  262  arising out of, entered into in connection with, or given to
  263  secure payment of the obligations are exempt from all taxation;
  264  however, the exemption does not apply to any tax imposed by
  265  chapter 220 on the interest, income, or profits on debt
  266  obligations owned by corporations.
  267         (8) The corporation shall validate any bonds issued under
  268  this section, except refunding bonds, which may be validated at
  269  the option of the corporation, by proceedings under chapter 75.
  270  The validation complaint must be filed only in the Circuit Court
  271  for Leon County. The notice required under s. 75.06 must be
  272  published in Leon County, and the complaint and order of the
  273  circuit court shall be served only on the State Attorney for the
  274  Second Judicial Circuit. Sections 75.04(2) and 75.06(2) do not
  275  apply to a validation complaint filed as authorized in this
  276  subsection. The validation of the first bonds issued under this
  277  section may be appealed to the Supreme Court, and the appeal
  278  shall be handled on an expedited basis.
  279         (9) The corporation and the department may shall not take
  280  any action that will materially and adversely affects affect the
  281  rights of holders of any obligations issued under this section
  282  as long as the obligations are outstanding.
  283         (10) The corporation is not a special district for purposes
  284  of chapter 189 or a unit of local government for purposes of
  285  part III of chapter 218. The provisions of chapters 120 and 215,
  286  except the limitation on interest rates provided by s. 215.84,
  287  which applies to obligations of the corporation issued under
  288  this section, and part I of chapter 287, except ss. 287.0582 and
  289  287.0641, do not apply to this section, the corporation created
  290  in this section, the service contracts entered into under this
  291  section, or debt obligations issued by the corporation as
  292  provided in this section.
  293         (11) The benefits or earnings of the corporation may not
  294  inure to the benefit of any private person, except persons
  295  receiving grants and loans under s. 403.1835 or s. 403.8532.
  296         (12) Upon dissolution of the corporation, title to all
  297  property owned by the corporation reverts to the department.
  298         (13) The corporation may contract with the State Board of
  299  Administration to serve as trustee with respect to debt
  300  obligations issued by the corporation as provided by this
  301  section; to hold, administer, and invest proceeds of those debt
  302  obligations and other funds of the corporation; and to perform
  303  other services required by the corporation. The State Board of
  304  Administration may perform these services and may contract with
  305  others to provide all or a part of those services and to recover
  306  the costs and expenses of providing those services.
  307         Section 4. Subsections (2), (3), (9), and (14) of section
  308  403.8532, Florida Statutes, are amended to read:
  309         403.8532 Drinking water state revolving loan fund; use;
  310  rules.—
  311         (2) For purposes of this section, the term:
  312         (a) “Bonds” means bonds, certificates, or other obligations
  313  of indebtedness issued by the corporation under this section and
  314  s. 403.1837.
  315         (b) “Corporation” means the Florida Water Pollution Control
  316  and Drinking Water Financing Corporation created pursuant to s.
  317  403.1837.
  318         (c)(a) “Financially disadvantaged community” means the
  319  service area of a project to be served by a public water system
  320  that meets criteria established by department rule and in
  321  accordance with federal guidance.
  322         (d)(b) “Local governmental agency” means any municipality,
  323  county, district, or authority, or any agency thereof, or a
  324  combination of two or more of the foregoing acting jointly in
  325  connection with a project, having jurisdiction over a public
  326  water system.
  327         (e)(c) “Public water system” means all facilities,
  328  including land, necessary for the treatment and distribution of
  329  water for human consumption and includes public water systems as
  330  defined in s. 403.852 and as otherwise defined in the federal
  331  Safe Drinking Water Act, as amended. Such systems may be
  332  publicly owned, privately owned, investor-owned, or
  333  cooperatively held.
  334         (f)(d) “Small public water system” means a public water
  335  system that which regularly serves fewer than 10,000 people.
  336         (3) The department may is authorized to make, or request
  337  that the corporation make, loans, grants, and deposits to
  338  community water systems, nonprofit transient noncommunity water
  339  systems, and nonprofit nontransient noncommunity water systems
  340  to assist them in planning, designing, and constructing public
  341  water systems, unless such public water systems are for-profit
  342  privately owned or investor-owned systems that regularly serve
  343  1,500 service connections or more within a single certified or
  344  franchised area. However, a for-profit privately owned or
  345  investor-owned public water system that regularly serves 1,500
  346  service connections or more within a single certified or
  347  franchised area may qualify for a loan only if the proposed
  348  project will result in the consolidation of two or more public
  349  water systems. The department may is authorized to provide loan
  350  guarantees, to purchase loan insurance, and to refinance local
  351  debt through the issue of new loans for projects approved by the
  352  department. Public water systems may are authorized to borrow
  353  funds made available pursuant to this section and may pledge any
  354  revenues or other adequate security available to them to repay
  355  any funds borrowed.
  356         (a) The department shall administer loans so that amounts
  357  credited to the Drinking Water Revolving Loan Trust Fund in any
  358  fiscal year are reserved for the following purposes:
  359         1.(a) At least 15 percent for to qualifying small public
  360  water systems.
  361         2.(b) Up to 15 percent for to qualifying financially
  362  disadvantaged communities.
  363         (b)(c)However, If an insufficient number of the projects
  364  for which funds are reserved under this subsection paragraph
  365  have been submitted to the department at the time the funding
  366  priority list authorized under this section is adopted, the
  367  reservation of these funds shall no longer applies apply. The
  368  department may award the unreserved funds as otherwise provided
  369  in this section.
  370         (9) The department may adopt rules regarding the procedural
  371  and contractual relationship between the department and the
  372  corporation under s. 403.1837 and is authorized to make rules
  373  necessary to carry out the purposes of this section and the
  374  federal Safe Drinking Water Act, as amended. Such rules shall:
  375         (a) Set forth a priority system for loans based on public
  376  health considerations, compliance with state and federal
  377  requirements relating to public drinking water systems, and
  378  affordability. The priority system shall give special
  379  consideration to the following:
  380         1. Projects that provide for the development of alternative
  381  drinking water supply projects and management techniques in
  382  areas where existing source waters are limited or threatened by
  383  saltwater intrusion, excessive drawdowns, contamination, or
  384  other problems;
  385         2. Projects that provide for a dependable, sustainable
  386  supply of drinking water and that are not otherwise financially
  387  feasible; and
  388         3. Projects that contribute to the sustainability of
  389  regional water sources.
  390         (b) Establish the requirements for the award and repayment
  391  of financial assistance.
  392         (c) Require evidence of credit worthiness and adequate
  393  security, including an identification of revenues to be pledged,
  394  and documentation of their sufficiency for loan repayment and
  395  pledged revenue coverage, to ensure that each loan recipient can
  396  meet its loan repayment requirements.
  397         (d) Require each project receiving financial assistance to
  398  be cost-effective, environmentally sound, implementable, and
  399  self-supporting.
  400         (e) Implement other provisions of the federal Safe Drinking
  401  Water Act, as amended.
  402         (14) All moneys available for financial assistance under
  403  this section shall be deposited in The Drinking Water Revolving
  404  Loan Trust Fund established under s. 403.8533 shall be used
  405  exclusively to carry out the purposes of this section. Any funds
  406  that therein which are not needed on an immediate basis for
  407  financial assistance shall be invested pursuant to s. 215.49.
  408  State revolving fund capitalization grants awarded by the
  409  Federal Government, state matching funds, and investment
  410  earnings thereon shall be deposited into the fund. The principal
  411  and interest of all loans repaid and investment earnings thereon
  412  shall be deposited into the fund.
  413         Section 5. Section 403.8533, Florida Statutes, is amended
  414  to read:
  415         403.8533 Drinking Water Revolving Loan Trust Fund.—
  416         (1) There is created the Drinking Water Revolving Loan
  417  Trust Fund to be administered by the Department of Environmental
  418  Protection for the purposes of:
  419         (a) Funding for low-interest loans for planning,
  420  engineering design, and construction of public drinking water
  421  systems and improvements to such systems;
  422         (b) Funding for compliance activities, operator
  423  certification programs, and source water protection programs;
  424  and
  425         (c) Funding for administering loans by the department; and.
  426         (d) Paying amounts payable under any service contract
  427  entered into by the department under s. 403.1837, subject to
  428  annual appropriation by the Legislature.
  429         (2) The trust fund shall be used for the deposit of all
  430  moneys awarded by the Federal Government to fund revolving loan
  431  programs. All moneys in the fund that are not needed on an
  432  immediate basis for loans shall be invested pursuant to s.
  433  215.49. The principal and interest of all loans repaid and
  434  investment earnings shall be deposited into this fund.
  435         (3) Pursuant to s. 19(f)(3), Art. III of the State
  436  Constitution, the Drinking Water Revolving Loan Trust Fund is
  437  exempt from the termination provisions of s. 19(f)(2), Art. III
  438  of the State Constitution.
  439         Section 6. This act shall take effect July 1, 2010.

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