Title: Chapter 95-323 House Bill No. 2609 and Revisions
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Title: Chapter 95-323 House Bill No. 2609 and Revisions
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Language: English
Publisher: Laws of Florida
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Spatial Coverage: North America -- United States of America -- Florida
 Notes
Abstract: Chapter 95-323 House Bill No. 2609 and Revisions, July 10, 1995
General Note: Box 9, Folder 14 ( SF-WMD REview Commission - 1995-1996 ), Item 16
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
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Bibliographic ID: WL00001919
Volume ID: VID00001
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Full Text







CHAPTER 95-323


House Bill No. 2609

An act relating to alternative water supplies; amending s. 125.01, F.S.; pro-
viding power of counties to provide and regulate alternative water sup-
plies and to establish taxing unite therefore; amending es. 153.02 and
153.52, F.S.; redefining "water system" to provide for the use of alternative
water supplies in county water systems and water and sewer districts;
amending s. 170.01, F.S.; authorizing municipalities to order construction
or reconstruction of alternative water supply systems and to levy special
assessments therefore; amending s. 180.02, F.S.; authorizing municipalities
to require certain persons to connect to alternative water supplies;
amending s. 180.06, F.S.; authorizing municipalities and certain private
companies to provide alternative water supplies for domestic, municipal,
or industrial use; amending s. 373.1961, F.S.; providing that the governing
board of a water management district shall engage in planning to assist
private utilities; providing legislative findings 373.1961, F.S.; providing
that the governing board of water management district shall assist pri-
vate utilities in meetingwater supply needs; providing legislative findings
373.1961, F.S.; providing that the governing board of a water management
district may create and operate facilities to supply water to private utili-
ties; providing legislative findings 373.1961, F.S.; providing that the gov-
erning board of a water management district may join with private utili-
ties to carry out any of its powers; providing legislative findings and in-
tent; requiring certain water management districts to annually budget for
development of alternative water supply systems; providing for grants,
matching grants, revolving loans and use of district lands or facilities to
water providers and users; providing legislative intent relating to develop-
ment of rate structures; providing project eligibility criteria and guide-
lines for such funding; requiring establishment of grants advisory com-
mittees; providing for members; providing procedure for review of pro-
posed projects; requiring annual disbursal of all available revenues if suf-
ficient projects are approved; providing for annual reports; amending s.
403.064, FS.; providing for the implementation of reuse of reclaimed wa-
ter upon a determination of feasibility; providing exceptions and limita-
tions to such implementation; providing an appropriation; amending s.
373.0695, F.S.; providing that basin boards shall have certain responsibili-
ties for planning and assisting private utilities; providing an effective
date.

Be It Enacted by the Legislature of the State of Florida:
Section 1. Paragraphs (k) and (q) of subsection (1) of section 125.01, Florida
Statutes, 1994 Supplement, are amended to read:
125.01 Powers and duties.-
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Ch. 95-828 LAWS OF FLORIDA Ch. 95-828

(1) The legislative and governing body of a county shall have the power to carry
on county government. To the extent not inconsistent with general or special law,
this power includes, but is not restricted to,the power to:
(k)1. Provide and regulate waste and sewe collection and disposal, water and
alternative water *uo -l isJ.iSudn& itne reclatedirel i r nmed water and water
from aquifer storage e and recovery an d ea~liUtion systems supply. and conserva-
tion programs.
2. The governing body of a county may require that any person within the
county dems nstrate the existence of some arrangement or contact by which such
person will dispose of solid waste inla manner consistent with county ordinance
or state or federal law. For any person who will produce special wastes or biomedi-
cal waste, as the same may be defined by state or federal law or county ordinance,
the county may require satisfactory proof of a contract or similar arrangement by
which such special or biomedical wastes will be collected by a qualified and duly
licensed collector and disposed of in accordance with the laws of Florida or the
Federal Government.
(q) Establish, and subsequently merge or abolish thosecreated hereunder, mu-
nicipal service taxing or benefit units for any part or all of the unincorporated area
of the county, within which may be provided fire protection, law enforcement,
beach erosion control, recreation service and facilities, water, alterniveywater sD-
. li. inudi, a bunt nt limited to. ec t wae andwter frnm aannifr 5trae
and recovery and derlna n s-stem. streets sidewalks, street lighting, garbage
and trash collection and disposal, waste and sewage collection and disposal, drain-
age, transportation, indigent health care services, mental health care-services, and
other essential facilities and municipal services from funds derived from service
charges, special assessments, or taxes within such unit only. Subject to the consent
by ordinance of the governing body of the affected municipality given either annu-
ally or for a term of years, the boundaries of a municipal service taxing or benefit
unit may include all or part of the boundaries of a muzcipality in addition to all
or part of the unincorporated areas. If ad valorem taxes are levied to provide essen-
tial facilities and municipal services within the unit, the village levied on any par-
cel of property for municipal purposes by all municipal service taxing units and
the municipality may not exceed 10 mills. This paragraph authorizes all counties
to levy additional taxes, within the limits fixed for municipal purposes, within such
municipal service taxing units under the authority of the second sentence of s. 9(b),
Art. VII of the State Cnstitution.
Section 2. Subsection (8) of section 153,02, Florida Statutes, is amended to
read:
153.02 Definitions.--As used in this part the following words and terms shall
have the following meanings unless some other meaning is plainly indicated:
(3) The term "water system" shall mean and shall include any plant, wells,
pipes, tanks, reservoirs, system, facility, or property used or useful or having the
present capacity for future use in connection with the obtaining and supplying wa-
ter and alternative water suiolie. including. but not liited to. reclaimed water
and water from auifer storae and recover and dlnatin stems. for human
consumption, fire protection, irrigation, consumption by business, or consumption
by industry, and, without limiting the generality of the foregoing definition shall
embrace all necessary appurtenances and equipment and shall include all proper-
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Ch. 95-823 LAWS OF FLORIDA Ch. 95-828

ty, rights, easements and franchises relating to any such system and deemed neces-
sary or convenient for the operation thereof.
Section 3. Subsection (5) of section 153.52, Florida Statutes, is amended to
read:
153.52 Definitions.-As used in this law, the following words and terms shall
have the following meanings, unless some other meaning is plainly intended:
(5) "Water system" shall mean and include any plant, system, facility or prop-
erty and additions, extensions and improvements thereto at any future time con-
structed or acquired as part thereof, useful or necessary or having the present ca-
pacity for future use in connection with the development of sources, treatment or
purification and distribution of water and alternative water supplies including. but
not limited to. reclaimed water aml water from, auifer storage and recovery and
desalination syvstea. for domestic or industrial use and, without limiting the gen-
erality of the foregoing, shall include dams, reservoirs, storage tanks, mains, lines,
valves, pumping stations, laterals, and pipes for the pupose of carrying water to
the premises connected with such system and shall include all real and personal
property and any interests therein, rights, easements and franchises of any nature
whatsoever relating to any such system and necessary or convenient for the opera-
tion thereof.
Section 4. Subsection (1) of section 170.01, Florida Statutes, 1994 Supplement,
is amended to read:
170.01 Authority for providing improvements and levying and collecting spe-
cial assessments against property benefited.-
(1) Any municipality of this state may, by its governing authority:
(a) Provide for the construction, reconstruction, repair, paving, repaving, hard
surfacing, rehard surfacing, widening, guttering, and draining of streets, boule-
vards, and alleys; for grading, regrading, leveling, laying, relaying, paving, repay-
ing, hard surfacing, and rehard surfacing of sidewalks; for constructing or recon-
structing permanent pedestrian panopies over public sidewalks; and in connection
with any of the foregoing, provide related lighting, landscaping, street furniture,
signage, and other amenities as determined by the governing authority of the mu-
nicipality;
(b) Order the construction, reconstruction, repair, renovation, excavation,
grading, stabilization, and upgrading of greenbelts, sales, culverts, sanitary sew-
ers, storm sewers, outfalls, canals, primary, secondary, and tertiary drains, water
bodies, marshlands, and natural areas, all or part of a comprehensive stormwater
management system, including the necessary appurtenances and structures there-
to and including, but not limited to, dams, weirs, and pumps;
(c) Order the construction or reconstruction of water mains, water laterals, al
ternative water suplv systems, inmcdng. but not limited to. reclaimed water, aa-
uifer store and ,reoev. and desalination systems, and other water distribution
facilities, including the necessary appurtenances thereto;
(d) Pay for the relocation of utilities, including the placement underground of
electrical, telephone, and cable television services, pursuant to voluntary agree-
ment with the utility, but nothing contained in this paragraph shall affect a utili-
ty's right to locate or relocate its facilities on its own initiative at its own expense;

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Ch. 95-828 LAWS OF FLORIDA Ch 95-323

(e) Provide for the construction or reconstruction of parks and other public
recreational facilities and improvements, including appurtenances thereto;
(f) Provide for the construction or reconstruction of seawalls;
(g) Provide for the drainage and reclamation of wet, low, or overflowed lands;
(h) Provide for offstreet parking facilities, parking garages, orsiilar facilities;
(i) Provide for mass transportation systems;
(j) Provide for improvements to permit the passage and navigation of water-
craft; and
(k) Provide forth- payment of allor any part of the costs of any such improve-
ments by levying and collecting special asIsments on the abutting, adjoining,
contiguous, or other specially benefited property.

However, offstreet parking facilities, parking garages, or other similar facilities and
mass transportation systems must be approved by vote of a majority of the affected
property owners. Any municipality which is legally obligated for providing capital
improvements foi water. altraive water suimlws. including, but not limited to.
reclaimed water, and water from aauifer storage and recovery and desali~itisn svs-
tama. or sewer facilities within an unincorporated area of the county may recover
the costs of the capital improvements by levying and collecting special assessments
for the purposes authorized in this section on the specially benefited property;
however, collections of the special assessment shall not take place until the special-
ly benefited property connects to the capital improvement.
Section 5. Subsection (3) of section 180.02, Florida Statutes, is amended to
read:
180.02 Powers of municipalities.-
(3) In the event any municipality desires to avail itselfof the provisions or ben-
efits of this chapter, it is lawful for such municipalty to create ~one or area by
ordinance ad to prescribe reasonable regulations requiring an'person or corpora-
tions living or doing business within said area to connect, when available, with any
sewerage system or alternative water suVl stem including, but not limiteto.
reclaimed water, aufifer storage and recovery. and desalination systems. con-
structed, erected and operated under the provisions of this chapter; provided, how-
ever, in the creation of said zone the municipality shall not include any area within
the limits of any other incorporated city or village, nor shall such area or zone ext
tend for more tha 5 miles from the corporate limits of said municipality.
Section 6. Subsection (3) of section 180.06, Florida Statutes, is amended to
read:
180.06 Activities authorized by municipalities and private companies.-Any
municipality or private company organized for the purposes contained in this
chapter, is authorized:
(3) To provide a water and alternative water auoMn~ a. including. but not limit-
ed to. reclaimed water. and water from eifer store and recovery and deslina-
tion systems supply for domestic, municipal or industrial uses;
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However, a private company or municipality shall not construct any system, work,
project or utility authorized to be constructed hereunder in. the event that a sys-
tem, work, project or utility of a similar character is being actually operated by a
municipality or private company in the municipality or territory immediately adja-
cent thereto, unlesssuch municipality or private company consents to such con-
struction.
Section 7. Section 373.1961, Florida Statutes, is amended to read:
373.1961 Water production.-
L1l In the performance of, and in conjunction with, its other powers and duties,
the governing board of a water management district existing pursuant to chapter
373:
LaJft) Shall engage in planning to assist counties, municipalities, private utili-
ties.or and regional water supply authorities in meeting water supply needs in such
manner as will give priority to encouraging conservation and reducing adverse en-
vironmental effects of improper or excessive withdrawals of water from concentrat-
ed areas. As used in this section, regional water supply authorities are regional wa-
ter authorities created under s. 73.1962 or other laws of this state.
Qh(}*) Shall assist counties, municipalities, private utilities or and water sup-
ply authorities in meeting water supply needs in such manner as will give priority
to encouraging conservation and reducing adverse environmental effects of im-
proper or excessive withdrawals of water from concentrated areas.
IcM)8 May establish, design, construct, operate, and maintain water produc-
tion and transmission facilities for the purpose of supplying water to counties, mu-
nicipalities, private atilites Or ad regional water supply authorities. The permit
required by part II of this chapter for a water management district engaged in wa-
ter production and transmission shall be granted, denied, or granted with condi-
tions by the department.
idl4) Shall not engage in local distribution.
I(5*) Shall not deprive, directly or indirectly, any county wherein water is
withdrawn of the prior right to the reasonable and beneficial use of water which
is required to supply adequately the reasonable and beneficial needs of the county
or any of the inhabitants or property owners therein.
IfMt6 May provide water and financial assistance to regional water supply au-
thorities, but may not provide water to counties and municipalities which are locat-
ed within the area of such authority without the specific approval of the authority
or, in the event of the authority's disapproval, the approval of the Governor and
Cabinet sitting as the Land and Water Adjudicatory Commission. The district may
supply water at rates and upon terms mutually agreed to by the parties or, if they
do not agree, as set by the governing board and specifically approved by the Gover-
nor and Cabinet sitting as the Land and Water Adjudicatory Commission.
fg&}, May acquire title to such interest as is necessary in real property, by pur-
chase, gift, devise, lease, eminent domain, or otherwise, for water production and
transmission consistent with this section. However, the district shall not use any
of the eminent domain powers herein granted to acquire water and water rights al-
ready devoted to reasonable and beneficial use or any water production or trans-
mission facilities owned by.any county, municipality, or regional water supply au-
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Ch. 95-828


LA" OF FLORIDA


CIL 95-323






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Ch, 95-28. LAWS OF FLORIDA Ch. 95-323

thority. The district may exercise eminent domain powers .outside of its district
boundaries for the acquisition of pumipage facilities, storage areas, transmission fa-
cilities, and the normal appurtenancestherete, provided that at least 45 days prior
to the exercise of eminent domain, the district notifies the district where the prop-
erty is located after public notice and the district where the propertyis located does
not object within 45 days after notification of such exercise of eminent domain au-
thority.
hl*8) In addition to the power to issue revenue bonds pursuant to s. 373.584,
may issue revenue bonds for the purposes of paying the costs and expenses in-
curred in carrying out the purposes of this chapter or refunding obligations of the
district issued pursuant to this section. Such revenue bonds shall be secured by,
and be payable from, revenues derived from the operation, lease, or use of its water
production and transmission facilities and other water-related facilities and from
the sale of water or services relating thereto. Such revenue bonds may not be se-
cured by, or be payable from, moneys derived by the district from the-Water Man-
agement Lands Trust Fund or from ad valorem taxes received by the district. All
provisions of s. 373.584 relating to the issuance of revenue bonds which are not in-
consistent with this section shall apply to the isstunce of revenue bonds pursuant
to this section. The district may also issue bond anticipation notes in accordance
with the provisions of s. 373.584.
ii May join with one or more other water naement ditricts, counties,
municipalities, private utilities. or regional water supply authorities for the pur-
pose of carrying out any of its powers, and may contract with such other entities
to finance acquisitions, construction, operation, and maintenance. The contract
may provide for contributions to be made by each party thereto, for the division
and apportionment of the expenses of acquisitions, construction, operation, and
maintenance, and for the division and apportionment of the benefits, services, and
products therefrom. The contracts may contain other covenants and agreements
necessary and appropriate to accomplish their purposes.
(2) The Legislature finds that. due to a iombinatin of factors. vastly increased
demands have bean placed on natural aunlies of f1shwater.. and that. absent in-
creased develoment of trnative water Emnudies.. such demands may insease in
the future. The TLeislat re also finds that oem nt al itsa in the state far the pro-
duction of sirnificant f uatities of na team tive water st olies. inludin reclaimed
water. and that w.&er roduction include thbe development of alternative water






water management DurOoses should share a nercetage of thoA tax revenues with
wnrrlies. including reclaimted wat, far ao ropviatelses.wt. tis te intent of the



useilti tha until iti tievelop muni nd and water trl wm user s and their public
is the moat fnnrontiate alternative water suriy option. to deliver reaflieid Wite
to as mas y users as possible throIgh the moat cost ective areansf and to con-
astruc recame water systeminfrastipture to their owned of opQerated prdperties
and faciltii where they have reclmShr; gnnabiltv. It is also the intetitf the
Legislature thai the MWatr mna=emeit dipcea which i taxes for
water manaLement purDoseB Bhould share a pe*rcentae of those tax revenues with

andoprivate water users. to be used toupplemnent other fuMding source. in the de-
veloment of alternative wHat supplies. TheL gislaturefds that d ublic moneys
or services provided to private entities for such uses constitute nublicmpurposes
which are in the public interest. In order to fimrher the development and use of

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_ _I~ YI____III_____W II__




d14i~FS .~" i*~


Ch. 95-828 LAWS OF FLORIDA Ch. 95-328

alternative water suBl SYvt-ms including meaaid water "vatema the Leg ila-
ture provides the following:
(a) The governing hoards of the water manetement districts where water re-
2 Psource coutie area ve been of freshwater withdrawden from natural systems:
an a t rth of native r pu v uvyailttm inncludin re-
laimed w1te1 ste11msprfunity the raments this Hlieqtion. Berinninf














all of the uaerrs o thber utieties: and
in4. Prohibit rA e drlllminat b i ithin cle to w ua rlit v uoer ter
th.an necmbar h iof each eMr. t.tuish rrants. mtqhinh trantf. r volvipm loans.
o dr te of district l or f oridHtiet mWuirant tI the rtiremeta ofthia iumsec-
tion and jnihnm -+ esta hd bv the districts.
(b) It i ihe hmbet of -e Lgirt" &t feah rec imed wter utility. or
dany othr tl ity. revive fdnrd purmuant to thwiss ubse ._ti allphopriaaea
rate-setti athoritin aouddemno raote truetar all catr wastewater..



of alternative wZae stDV sY~i828. ;,einh 20Chme_ Wmin& Bt.m
2. Promote the conservation of freshwater withdrawn from natural systems;
3. Provide for an adprooriate dihtribution of costs for all water, wastewater.
and alterni v w dtr lupmpl utiliti. including reclaimed water utilities, among
all of the ua()f anid (d..
4. Prohibit WortA diam4r inatlre within lasM ofr utility uaera.
(c) In rder to hbe elthble for fIdin W umuant to thi sbscton. a project
muit be comsistent wh aM -Ia m-_d__&a, oI us& lan_ and the pmornir
bodv of the local governm- nt mi d- mur a lB annroeat_ Mw fM M l ithiln the
roiect' servicetareto inmnect toIQ -*-A ta 0 roitiaaltra) 0+ w=teR anMAlies.
The annprooriate local overnmnmot must provide written notifiati=n to th annro-
rilate distria that the DroDOed ROeCt is conaiatment with the local government
comprehensive plan.
(d) Any m d all rmmau dAburea d ourant to thia asubantion hll hbe annlied
only for the Rnmet of Mnital R ort anta for the omutionf alter-
native water anualvavams *hat pari d alterat-i watr sutnihnn for usae Within
one or more water Meource eautin aJra
(e) Bf JanurM 1 of eoch V .ar th governing boards hall mnakt available writ-
ten guidlimM far th. raimrmal of reven,,m nnrmant to thi& aubaection. Such

1. An aoplication process and a dea-dling ft e lio" liatiomn anniuMally.
2. A nrocem for determin-n project aligibhilitv ournant to the reauirements
of paragraph (c) and (d).
3. A rocegs and criteria for fndingy roiects ltrsuamnt to this subsection that
cross district boundaries or that serve more than one district.
(f) The governing board of each water management district shall establish an
alternative water sulnpliea v anta adviaorv committee to recommend to the Sovern-
ing board nrMect for funding pursuant to this subsection. The advTaorv committee
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e
Ch 95-328 LAWS OF FLORIDA Ch. 95-828

members hal include. but not be limited to. one or m ae breantae~ies of coun-
tv. municipal. and investor-owned Drivate utilities. and ma in tcdelbub-ot be
limited to. rereen vs of agritral itereia and enirnntl ateret.
Each committee Ihr s11 ttfl or W intl r I t ironpip ihol -a








(h) EFro pmruhMa of this subsction. nltsru aat .uwpiem'msmnlis of
gad& % & v i



() Ts s n Ab reven madu aeilctH antto the rul m. e Dhi, irhements ob
ectsd the Kvmime renlll -it... .






ards suffient nto uread ti "ue
(i) Allh reeuian mdhl not be anualect to the rPumlot ni eubs events ofe






d40asnu Reuse ofntI the waovernr ha-d P r I eA-


(h) Tohr muhcl nda of this M fduetion.latu uwe nihaUpe of
awrlicatern falit bacun fr a reclamed water orne bestelsu i l
is supement to read:l te dd use






(i) This subsection shall ndot e s ujet to the rld d rhe adlirements of
(it &Y JanuMr 30 of each 3e.each X"t
annual rekor fa the Qvmernort thQe Presidit a tBn .1_'fii Smeaker















amoiheation foeurihtv ao haeiual for a retlnmoe wnhh. engn 'Bunm.
And Mhaa cunta MM Itnn l sratelyfM "0".. fadag outs.







cared wlthi r loansd __ nuI oftisrnn laMd wi.in. r wtrre
Section 8. Subsection (14) is added to section 40&.064, Florida Statutes, 1W4
supplement, to read;









(14)CODING: Words nct are deletion; worud und.hi n an addiio








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LDCh. 95-2


373.0695 Duties of basin boards; authorized expenditures.-
(1) The various boards shall be responsible for discharging the following de-
scribed functions in their respective basins:
(f) Planning for and, upon request by a county, municipality, private utility.
or regional water supply authority, providing water supply and transmission facili-
ties for the purpose of assisting such counties, municipalities, private utilities, or
and regional water supply authorities within or serving the basin.
Section 10. This act shall take effect July 1, 1995.
Approved by the Governor June 15, 1995.
Filed in Office Secretary of State June 15, 1995.


































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Ch. 95-323


LAWS OF FLORIDA


Ch. 95-828





, STORAGE NAME: h2609z. **AS PA4ED BY THE LEGISLATURE**
DATE: July 10, 1995 CHAF R #: 95-323, Laws of Florida
HOUSE OF REPRESENTATIVES
COMMITTEE ON
WATER POLICY, SELECT
AS FURTHER REVISED BY THE COMMITTEE ON
APPROPRIATIONS
FINAL BILL ANALYSIS & ECONOMIC IMPACT STATEMENT
BILL #: HB 2609 (PCB WP 95-01b)
RELATING TO: Alternative Water Supplies
SPONSOR(S): Select Committee on Water Policy and Representative Rayson
STATUTE(S) AFFECTED: Sections 125.01, 153.02, 170.01, 180.02, 180.06, 373.0695, 373.1961,
and 403.064
COMPANION BILL(S): SB 2690 by Senator Brown-Waite
ORIGINATING COMMITTEE(S)/COMMITTEE(S) OF REFERENCE:
(1) WATER POLICY, SELECT YEAS 13 NAYS 0
(2) FINANCE AND TAXATION YEAS 28 NAYS 0
(3) APPROPRIATIONS YEAS 31 NAYS 0
(4)
(5)
I. SUMMARY:
The act encourages water conservation and alternative water use, and provides a funding
mechanism for alternative water supply systems by:
1. Giving explicit authority to municipalities and counties to provide alternative water
supplies and to finance those water systems;
2. Requiring basin boards, when requested, to provide water supply and transmission
facilities to investor-owned utilities;
3. Requiring water management districts annually to fund projects developing alternative
water supply systems; and
4. Providing that the water management districts establish guidelines for the disbursement
of those revenues, establish alternative water supplies grants advisory committees, and
submit annual reports to the Legislature and Governor describing each disbursement.

There is an indeterminate positive fiscal impact to local governments due to the expansion
of their authority to provide alterative water supply systems and to impose the necessary
taxes, special assessments, and fees for such systems.


STANDARD FORM 11/90





STORAGE NAME: h2609z.h a
DATE: July 10, 1995
PAGE 2
II. SUBSTANTIVE ANALYSIS:
A. PRESENT SITUATION:
Article VII, section 10 of the Florida Constitution prohibits the state, counties, school
districts, municipalities, special districts, and agencies of these units from giving,
lending, or using their taxing power or credit to aid a private business entity or person.
The recurringneed to conserve freshwater and to reuse wastewater are state policies
established by the Legislature. However, the number of people living in the state
continues t& grow placing increasing demands on natural Water systems without a
corresponding emphasis on increasing alternative sources of water. The cost of
constructing reclaimed water facilities or developing other altemative water supplies is
an impediment to conservation of the state's natural freshwater.
Various statutes enumerate the powers arid duties of municipalities and counties to
provide access to water and sewer.
Section 125.01, F. S., gives counties the power to provide and regulate waste and
sewage collection and disposal, water supply, and conservation programs and to
establish municipal service taxing units within which service charges, special
assessments or taxes may be charged and collected to pay for various county
services. Chapter 153, Part I provides financing authority to county governments to
pay for water and sewer systems. Chapter 153, Part II authorizes counties to
establish water and sewer districts as 4 way of assuring water and'sewer services
are provided to unincorporated areas. These cites do not explicitly authorize
counties to providearid regulate reclaimed water or other alterative water
supplies.
Chapter 170 gives authority to municipalities, comparable to the authority provided
to counties in Chapter 153, Part II, relating to financing water and sewer systems.
Chapter 180 provides the powers of municipalities relating to public works including
their authority to provide water. Section 180.02 gives municipalities authority to
require hook-up to a sewer system when that system is available, but the authority
does not exterid to alterative water supply systems.
Though many municipalities and counties throughout the state provide access to
reclaimed water, inserting explicit statutory language for them to do sowould establish
clear legislative intent regarding the need to maximize the uSe bf reclaimed water or
other alternative supplies of water.
Section 373.0693 specifies that each governing board of a water management district
may adopt a resolution establishing one or more subdistricts or basins within the water
management district. Among the duties of the basin boards is to plan for and, upon
request, provide water supply and transmission facilities to counties, municipalities and
regional water supply authorities.
The governing boards of water management districts are required by section 373.1961
to assist local governments and regional water supply authorities in meeting water
supply demands by encouraging and giving priority to conservation and reducing
adverse environmental impacts. The boards are authorized to establish, design, build,


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, STORAGE NAME: h2609z.lt
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operate and maintain water production facilities in order to supply water to local
governments and regional water supply authorities. They also are authorized to join
with other water management districts, local governments, or regional water supply
authorities in contracting to finance construction, operation and
maintenance of water supply systems.
Various areas throughout the state are designated by the water management districts
as water resource caution areas due to immediate or impending stress on freshwater
supplies. Section 373.1961 provides authority to the water management districts to
assist municipalities, counties, and water supply authorities in meeting water supply
demands. However, s. 373.196 states legislative intent that municipalities, counties
and water supply authorities have the primary responsibility to provide water.
Section 373.250 requires each district to submit an annual report to the legislature
describing its efforts to increase the use of reclaimed water. The first of these reports
was submitted in January 1995 and shows varying degrees of emphasis on reuse
between the water management districts.
The provisions of s. 403.064 (13) require applicants for permits to construct or operate
a domestic wastewater treatment facility located within a water resources caution area
to prepare a reuse feasibility study as part of their application for the permit. The
statute also requires that when a domestic wastewater facility disposing effluent by
deep well injection determines that reuse is feasible, it must implement reuse according
to the schedule contained in the feasibility study. However, if a facility that disposes of
effluent by surface water discharges or land application methods determines that reuse
is feasible, it is not required to implement reuse.
B. EFFECT OF PROPOSED CHANGES:
The act gives explicit authority to municipalities and counties to provide alternative
water supplies and to finance the construction of alternative water supply systems.
Alternative water supply systems include reclaimed water, water from aquifer storage
and recovery systems, and desalinization systems. The act requires basin boards,
when asked, to provide certain water supply and transmission facilities to investor-
owned utilities in addition to the previous statutory requirement that such assistance be
given to local governments and regional water supply authorities. The governing
boards of the water management districts now also must provide the same assistance
to investor-owned utilities as they have been required to provide to local governments
and regional water supply authorities regarding the availability of water.
The act asserts that the state's natural freshwater supplies face increased demands
and there is potential to increase alternative water supplies, including reclaimed water.
The goveming boards of water management districts that have designated water
resource caution areas within their districts are required to make funds available for
projects developing alternative water supplies beginning with their 1995.96 annual
budgets. Currently, the Suwannee River Water Management District is the only district
of the five without a designated water resource caution area. Funding for the projects
may include grants, matching grants, revolving loans, or the use of district lands or
facilities and must be distributed by December 31 each year. The impact of the
grant/loan requirements will vary between districts depending on the level of financial
assistance each district decides to commit to developing alternative water supplies.


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The loans and grants are to be made available td both local governments and private
providers. The bill declares the expenditure of public funds for the development of
alternative water supplies constitutes a public purpose.
In areas where these grants or loans are made for alternative water supplies, legislative
intent is expressed suggesting the governmental rate-setting authority set customer rate
structures for water utilities at levels appropriate to encourage alternative water supply
use, promote conservation of freshwater, provide equitable rate distribution between
customers, and prohibit rate discrimination between customers. The grant or loan is
available only to pay capital and infrastructure costs of alternative water supply
systems, and when the local government (1) provides written notice verifying that the
project is consistent with its comprehensive plan, and (2) requires all appropriate new
facilities within the alternative water supply's service area to connect to and use the
alternative water supply. Applicants would assume planning, operation, maintenance
and other costs associated with the-water supply system projects.
The water management districts must develop written guidelines, within the parameters
set by the act, governing distribution of the grants or loans to assure all applicants are
treated equally. Each governing board must establish an alternative water supplies
grants advisory committee to advise the governing boards regarding the disbursement
of funds to eligible applicants. The act exempts the grant or'loan process from the
rulemaking requirements of chapter 120, Administrative Procedures Act, assuring timely
and efficient disbursement of funds, and each water management district must submit
an annual report to the Governor, President of the Senate, and Speaker of the House
of Representatives accounting for the disbursement of funds for these projects.
Pursuant to provisions of this act, if a domestic wastewater facility disposing of effluent
by surface water discharges or land application methods determines that reuse is
feasible, it must implement reuse according to the schedule contained in the feasibility
study. If a surface water discharge or-land application system was already categorized
as reuse by Department of Environmental Protection rules, this requirement is not
applicable. The use of surface water discharges or lantt application facilities as backup
for a reuse system is not limited. Only facilities within a water resource caution area
are subject to the requirement f the new subsection.-

C. SECTION-BY-SECTION ANALYSIS:

Section 1. amends s. 125.01(1)(k) and (q) making explicit county government authority
to provide and regulate alternative water supply systems, and expanding county
authority to include alternative water supply systems -s a county service for which
service charges, special assessments, or taxes may be collected within a municipal
service taxing unit.
Section 2. amends s. 153.02(3) making explicit that altemative water supply systems
are part of the definition of a water system which county governments may finance.
Section 3. amends s. 153.52(5) making explicit that alternative water supply systems
are part of the definition of a water system which county governments may provide to
unincorporated areas.


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, STORAGE NAME: h2609z.l'
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Section 4. amends s. 170.01(1)(c) and the final paragraph of 170.01(1) making explicit
that municipalities may levy taxes or collect special assessments from those who
benefit from receipt of alternative water supplies.

Section 5. amends s. 180.02(3) extending authority to municipalities to require
connection to alternative water supply systems when those systems are available.

Section 6. amends s. 180.06(3) clarifying that municipalities and private companies
organized to provide public works may provide alternative water supplies as a water
source.

Section 7. amends s. 373.1961 relating to the responsibilities of the water management
districts in the development of alternative water supplies; including investor-owned
utilities as recipients of the assistance water management districts must provide
regarding availability of water supply; providing legislative intent including developing
reclaimed water; requiring the water management districts to budget annually to provide
funding to municipal and private projects serving water resource caution areas with
alternative water supplies; providing legislative intent regarding water utility rate
structures for utilities in the service area of projects receiving these funds; requiring the
projects to be consistent with the local government comprehensive plan; requiring
connection to and use of appropriate new facilities that provide alternative water
supplies in the funded projects' service area; limiting use of grants or loans to capital or
infrastructure costs of alternative Water supply facilities; requiring water management
districts to develop written guidelines for issuing grants or loans; creating an alternative
water supplies grants advisory committee within each water management district;
providing a definition of alternative water supplies; exempting the grant/loan process
from the rulemaking provisions of chapter 120; and requiring an annual report
accounting for the disbursal of fund to projects developing alternative water supplies.

Section 8. adds ss. (14) to 403.064, F.S., 1994 Supp., requiring implementation of
water reuse by domestic wastewater facilities who determine that reuse is feasible.

Section 9. amends s. 373.0695(1)(f) adding private utilities to those entities for whom
basin boards have the responsibility, upon request of the implementing entity, to plan
for and provide water supply and transmission facilities.

Section 10. makes the act effective July 1, 1995.

III. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT:
A. FISCAL IMPACT ON STATE AGENCIESISTATE FUNDS:
1. Non-recurring Effects:
None


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DATE: July 10, 1995
PAGE 6

2. Recurring Effects:

None

3. Long Run Effects Other Than Normal Growth:

None

4. Total Revenues and Expenditures:

None
B. FISCAL IMPACT ON LOCAL GOVERNMENTS AS A WHOLE:

1. Non-recurrina Effects:

None

2. Recurring Effect:

There is a positive indeterminate fiscal impact on local governments due to the
expansion of local government authority to provide alternative water systems. Such
expansion includes the respective local government's authority to impose taxes,
special assessments, and fees to pay for the systems.

Each of the water management districts is required annually to fund alternative
water supply development within designated water sources :caution areas. These
funds are made available to municipalities and counties, as well as private
suppliers, to develop alternative water supply facilities reducing expenditure of local
funds to develop new fresh water supply sources: Currently, the Suwannee River
Water Management District is the only district of the five without a designated
caution area. The amount of funding each district is required to make available is
left to the discretion of each water management district. '

3. Long Run Effects Other Than Normal Growth:

None

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:. ,

1. Direct Private Sector Costs:

Water, wastewater, or alternative water supply system rates could be affected
within the service area where a funded project is developed pursuant to this act.


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s STORAGE NAME: h2609z.h
DATE: July 10, 1995
PAGE 7

2. Direct Private Sector Benefits:

Private sector interests are eligible to obtain funding from the water management
districts for the development of alternative water supply projects within water
resources caution areas.

3. Effects on Competition. Private Enterprise and Employment Markets:
The act encourages the development of alternative water supply systems which
should promote economic activity in businesses and industries connected with
constructing utilities.

D. FISCAL COMMENTS:


IV. CONSEQUENCES OF ARTICLE VII. SECTION 18 OF THE FLORIDA CONSTITUTION:

A. APPLICABILITY OF THE MANDATES PROVISION:
Not applicable

B. REDUCTION OF REVENUE RAISING AUTHORITY:
Not applicable

C. REDUCTION OF STATE TAX SHARED WITH COUNTIES AND MUNICIPALITIES:
Not applicable

V. COMMENTS:

The bill authorizes water management districts to provide grants and loans to local
governments and private utilities for the development of alternative water supply systems.
Article VII, section 10 of the Florida Constitution prohibits the state and any county, school
district, municipality; special district, or agency from becoming a joint owner with a
stockholder of or giving, lending, or using its taxing power or credit to aid any corporation,
association, partnership, or person. The provision is meant to restrict activities of
government to that of the government and to forbid governments from engaging directly or
indirectly in commercial enterprises for profit. It also acts to protect public funds and
resources from being exploited in promoting private ventures when the public would be, at
most, only incidentally benefited. However, in determining what is a public purpose, courts
give great weight to legislative determinations. In fact, the Florida Supreme Court has
stated that what constitutes a public purpose s, in the first instance, a question for the
legislature, and should be deemed correct unless so clearly wrong as to be beyond the
power of the legislature. State v Housing Finance Authority of Polk County. 376 So.2d
1158 (Fla. 1979). In addition, it is immaterial to the propriety of an expenditure that the
primary beneficiary of a project is a private part, if the public interest, even though indirect,
is present and sufficiently strong.


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PAGE 8

The bill declares the expenditure of public funds for the development of alternative water
supplies constitutes a public purpose. This legislative determination will be given great
weight by the courts and may be overcome only by a showing that the legislature acted
beyond its power.,

VI. AMENDMENTS OR COMMITTEE SUBSTITUTE CHANGES:

On April 27, 1995, the full House Committee on Appropriations reported HB 2609 favorably
with two amendments. The amendments eliminated authorization and $400,000 in funding
to DEP to contract for a study of alternative disinfection processes, as well as eliminating a
provision for the development of design and operation criteria for the use of ultraviolet
radiation or ozonation. The amendments also eliminated related rulemaking adthoity.

The Senate amended the bill by:

1. Deleting the four hundred thousand dollars ($400,000) appropriated to the Department
of Environmental Protection to contract for a study of the effectiveness of ultraviolet
radiation and ozonation in meeting high-level disinfection requirements for drinking water. If
the study had justified rulemaking allowing the use of these two processes, the department
would have been authorized to promulgate administrative rules.

2. Including private utilities as entities that may obtain assistance from the water
management districts in developing alternative water supplies.

VII. SIGNATURES: SELECT COMMITTEE ON WATER POLICY:

Prepared by: Staff Director


Rebecca R Everhart John T...Mitchell


AS REVISED BY THE COMMITTEE ON FINANCE AND TAXATION:
Prepared by: Staff Director


Sharon A. Zahnerr ., Christian Weiss


AS FURTHER REVISED BY THE COMMITTEE ON APPROPRIATIONS:
Prepared by: Staff Director


John Newman David K. Cabum- .


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STORAGE NAME: h2609z.wV
DATE: July 10, 1995
PAGE 9

FINAL ANALYSIS PREPARED BY COMMITTEE ON WATER POLICY, SELECT:
Prepared by: Staff Director



ebecca R. Everhart T. itcell


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