Florida Senate - 2017                                      SB 10
       
       
        
       By Senator Bradley
       
       5-00174A-17                                             201710__
    1                        A bill to be entitled                      
    2         An act relating to water resources; amending s.
    3         201.15, F.S.; revising the requirements under which
    4         certain bonds may be issued; amending s. 215.618,
    5         F.S.; providing an exception to the requirement that
    6         bonds issued for acquisition and improvement of land,
    7         water areas, and related property interests and
    8         resources be deposited into the Florida Forever Trust
    9         Fund and distributed in a specified manner; creating
   10         s. 373.4598, F.S.; providing legislative findings and
   11         intent; defining terms; requiring the South Florida
   12         Water Management District to seek proposals from
   13         willing sellers of property within the Everglades
   14         Agricultural Area for land that is suitable for the
   15         reservoir project; clarifying that all appraisal
   16         reports, offers, and counteroffers are confidential
   17         and exempt from public records requirements; requiring
   18         the district to assign the Entire Option Property Non
   19         Exclusive Option of a specified agreement to the Board
   20         of Trustees of the Internal Improvement Trust Fund
   21         under certain circumstances; requiring the district to
   22         retain the agreement’s option under certain
   23         circumstances; requiring the board or the district, as
   24         applicable, to exercise the specified option by a
   25         certain date under certain circumstances; providing
   26         requirements for the Proposed Option Property Purchase
   27         Price; authorizing the disposal or exchange of certain
   28         land or interests in land for certain purposes;
   29         requiring the district to begin, seek permitting for,
   30         and construct the reservoir project under certain
   31         circumstances; requiring the district, in coordination
   32         with the United States Army Corps of Engineers, to
   33         begin the planning study for the reservoir project by
   34         a specified date under certain circumstances;
   35         requiring the district to identify specified lands
   36         under certain circumstances; providing requirements
   37         for the planning study; requiring the district, in
   38         coordination with the United States Army Corps of
   39         Engineers, to seek Congressional authorization for the
   40         reservoir project under certain circumstances;
   41         authorizing certain costs to be funded using Florida
   42         Forever bond proceeds under certain circumstances;
   43         specifying how such bond proceeds shall be deposited;
   44         authorizing the use of state funds for the reservoir
   45         project; requiring the district to seek additional
   46         sources of funding; requiring the district to seek
   47         federal credits under certain circumstances; requiring
   48         the district to request the United States Army Corps
   49         of Engineers, in the Corps’ review of the regulation
   50         schedule, to consider any increase in southern outlet
   51         capacity of Lake Okeechobee; amending s. 375.041,
   52         F.S.; increasing the minimum annual funding for
   53         certain Everglades projects under specified
   54         circumstances; requiring the district and the board to
   55         notify the Division of Law Revision and Information by
   56         a certain date of specified land acquisitions;
   57         providing a directive to the division; providing
   58         contingent appropriations; providing effective dates,
   59         one of which is contingent.
   60          
   61  Be It Enacted by the Legislature of the State of Florida:
   62  
   63         Section 1. Paragraph (a) of subsection (3) of section
   64  201.15, Florida Statutes, is amended to read:
   65         201.15 Distribution of taxes collected.—All taxes collected
   66  under this chapter are hereby pledged and shall be first made
   67  available to make payments when due on bonds issued pursuant to
   68  s. 215.618 or s. 215.619, or any other bonds authorized to be
   69  issued on a parity basis with such bonds. Such pledge and
   70  availability for the payment of these bonds shall have priority
   71  over any requirement for the payment of service charges or costs
   72  of collection and enforcement under this section. All taxes
   73  collected under this chapter, except taxes distributed to the
   74  Land Acquisition Trust Fund pursuant to subsections (1) and (2),
   75  are subject to the service charge imposed in s. 215.20(1).
   76  Before distribution pursuant to this section, the Department of
   77  Revenue shall deduct amounts necessary to pay the costs of the
   78  collection and enforcement of the tax levied by this chapter.
   79  The costs and service charge may not be levied against any
   80  portion of taxes pledged to debt service on bonds to the extent
   81  that the costs and service charge are required to pay any
   82  amounts relating to the bonds. All of the costs of the
   83  collection and enforcement of the tax levied by this chapter and
   84  the service charge shall be available and transferred to the
   85  extent necessary to pay debt service and any other amounts
   86  payable with respect to bonds authorized before January 1, 2017,
   87  secured by revenues distributed pursuant to this section. All
   88  taxes remaining after deduction of costs shall be distributed as
   89  follows:
   90         (3) Amounts on deposit in the Land Acquisition Trust Fund
   91  shall be used in the following order:
   92         (a) Payment of debt service or funding of debt service
   93  reserve funds, rebate obligations, or other amounts payable with
   94  respect to Florida Forever bonds issued pursuant to s. 215.618.
   95  The amount used for such purposes may not exceed $300 million in
   96  each fiscal year. It is the intent of the Legislature that all
   97  bonds issued to fund the Florida Forever Act be retired by
   98  December 31, 2040. Except for bonds issued to refund previously
   99  issued bonds, no series of bonds may be issued pursuant to this
  100  paragraph unless such bonds are approved and the debt service
  101  for the remainder of the fiscal year in which the bonds are
  102  issued is specifically appropriated in the General
  103  Appropriations Act or other law with respect to bonds issued for
  104  the purposes of s. 373.4598.
  105  
  106  Bonds issued pursuant to s. 215.618 or s. 215.619 are equally
  107  and ratably secured by moneys distributable to the Land
  108  Acquisition Trust Fund.
  109         Section 2. Subsection (5) of section 215.618, Florida
  110  Statutes, is amended to read:
  111         215.618 Bonds for acquisition and improvement of land,
  112  water areas, and related property interests and resources.—
  113         (5) The proceeds from the sale of bonds issued pursuant to
  114  this section, less the costs of issuance, the costs of funding
  115  reserve accounts, and other costs with respect to the bonds,
  116  shall be deposited into the Florida Forever Trust Fund. The bond
  117  proceeds deposited into the Florida Forever Trust Fund shall be
  118  distributed by the Department of Environmental Protection as
  119  provided in s. 259.105. This subsection does not apply to
  120  proceeds from the sale of bonds issued for the purposes of s.
  121  373.4598.
  122         Section 3. Section 373.4598, Florida Statutes, is created
  123  to read:
  124         373.4598Reservoir project in the Everglades Agricultural
  125  Area.—
  126         (1) LEGISLATIVE FINDINGS AND INTENT.—
  127         (a) The Legislature declares that an emergency exists
  128  regarding the St. Lucie and Caloosahatchee estuaries due to the
  129  harmful freshwater discharges east and west of the lake. Such
  130  discharges have manifested in widespread algae blooms, public
  131  health impacts, and extensive environmental harm to wildlife and
  132  the aquatic ecosystem. These conditions threaten the ecological
  133  integrity of the estuaries and the economic viability of the
  134  state and affected communities.
  135         (b) The Legislature finds that the acquisition of
  136  strategically located lands south of the lake and the
  137  construction of the reservoir project will increase the
  138  availability of water storage and reduce the harmful freshwater
  139  discharges. Additionally, water storage south of the lake will
  140  increase the availability of water for the Everglades and to
  141  meet irrigation demands for the Everglades Agricultural Area;
  142  restore the hydrological connection to the Everglades; and
  143  provide flood protection by reducing, through additional storage
  144  capacity, some of the demands on the Herbert Hoover Dike.
  145         (c) The Legislature recognizes that the reservoir project
  146  is authorized in the Water Resources Development Act of 2000 as
  147  a project component of CERP. Unless other funding is available,
  148  the Legislature directs the district in implementation of the
  149  reservoir project to abide by applicable state and federal law
  150  in order to do that which is required to obtain federal credit
  151  under CERP. If the district implements the reservoir project as
  152  a project component as defined in s. 373.1501, the district must
  153  abide by all applicable state and federal law relating to such
  154  projects.
  155         (d) Nothing in this section is intended to diminish the
  156  commitments made by the state in chapter 2016-201, Laws of
  157  Florida.
  158         (2) DEFINITIONS.—As used in this section, the term:
  159         (a) “Agreement” means the Second Amended and Restated
  160  Agreement for Sale and Purchase between the United States Sugar
  161  Corporation, SBG Farms, Inc., Southern Garden Groves
  162  Corporation, and the South Florida Water Management District,
  163  dated August 12, 2010.
  164         (b) “Board” means the Board of Trustees of the Internal
  165  Improvement Trust Fund.
  166         (c) “Comprehensive Everglades Restoration Plan” or “CERP”
  167  has the same meaning as the term “comprehensive plan” as defined
  168  in s. 373.470.
  169         (d) “District” means the South Florida Water Management
  170  District.
  171         (e) “Everglades Agricultural Area” or “EAA” has the same
  172  meaning as provided in s. 373.4592.
  173         (f) “Lake” means Lake Okeechobee.
  174         (g)“Reservoir project” means a project to construct one or
  175  two above-ground reservoirs that have a total water storage
  176  capacity of approximately 360,000 acre-feet and are located in
  177  the EAA.
  178         (3) LAND ACQUISITION.—The Legislature declares that
  179  acquiring land for the reservoir project is in the public
  180  interest and that the governing board of the district and the
  181  board may acquire fee title for the purpose of implementing the
  182  reservoir project.
  183         (a) Upon the effective date of this act, the district shall
  184  seek proposals from willing sellers of property within the
  185  Everglades Agricultural Area in order to acquire approximately
  186  60,000 acres of land that is suitable for the reservoir project.
  187  All appraisal reports, offers, and counteroffers are
  188  confidential and exempt from s. 119.07(1), as provided in s.
  189  373.139.
  190         (b) If the district does not acquire land pursuant to
  191  paragraph (a) by December 31, 2017:
  192         1. The district must assign, by January 31, 2018, the
  193  agreement’s Entire Option Property Non-Exclusive Option to the
  194  board, as authorized in, and in accordance with, the agreement.
  195  If, for any reason, the Seller, as defined in the agreement,
  196  does not find the assignment to be reasonably acceptable in form
  197  and substance, the district must retain the Entire Option
  198  Property Non-Exclusive Option; and
  199         2. The board or the district, whichever holds the option,
  200  must, by March 1, 2018, exercise the option in accordance with
  201  the agreement. The Buyer’s Proposed Option Property Purchase
  202  Price, as specified in the agreement, may not be less than the
  203  average of $7,400 per acre, unless the maximum offer allowed by
  204  law is less than the average of $7,400 per acre.
  205         3. The board or the district, if applicable, may dispose of
  206  or exchange any land or lease interest in the land that is
  207  acquired pursuant to this paragraph in order to achieve optimal
  208  siting for the reservoir project or to dispose of land that is
  209  not necessary for the reservoir project. Any such exchange or
  210  disposition may not be in violation of the agreement.
  211         (4) DESIGN, PERMITTING, AND CONSTRUCTION.—If the district
  212  finds willing sellers of property pursuant to paragraph (3)(a),
  213  the district:
  214         (a) Once the land has been agreed upon for purchase, must
  215  immediately begin the reservoir project with the goal of
  216  providing adequate water storage and conveyance south of the
  217  lake to reduce the volume of regulatory discharges of water from
  218  the lake to the east and west; and
  219         (b) Once the land is acquired, must expeditiously pursue
  220  necessary permitting and begin implementation and construction
  221  of the reservoir project as soon as practicable.
  222         (5) PLANNING STUDY.—
  223         (a) If land is acquired pursuant to paragraph (3)(a) and
  224  other funding is not available, the district must, in
  225  coordination with the United States Army Corps of Engineers,
  226  begin the planning study for the reservoir project by March 1,
  227  2018.
  228         (b) If land is not acquired pursuant to paragraph (3)(a) by
  229  December 31, 2017, the district must, in coordination with the
  230  United States Army Corps of Engineers, begin the planning study
  231  for the reservoir project by October 1, 2019.
  232         1. If land is acquired pursuant to paragraph (3)(b), the
  233  district must identify which of the acquired land is suitable
  234  for the reservoir project.
  235         2. If land is not acquired pursuant to paragraph (3)(b),
  236  the district must identify land that is suitable for the
  237  reservoir project and the best option for securing such land.
  238         (c) The district, when developing the planning study, must
  239  focus on the goal of the reservoir project, which is to provide
  240  adequate water storage and conveyance south of the lake to
  241  reduce the volume of regulatory discharges of water from the
  242  lake to the east and west.
  243         (d) Upon completion of the planning study and the
  244  finalization of the project implementation report, as defined in
  245  s. 373.470, the district, in coordination with the United States
  246  Army Corps of Engineers, shall seek Congressional authorization
  247  for the reservoir project.
  248         (6) FUNDING.—
  249         (a) Pursuant to s. 11(e), Art. VII of the State
  250  Constitution, state bonds are authorized under this section to
  251  finance or refinance the acquisition and improvement of land,
  252  water areas, and related property interests and resources for
  253  the purposes of conservation, outdoor recreation, water resource
  254  development, restoration of natural systems, and historic
  255  preservation. In accordance with s. 17, Art. X of the State
  256  Constitution, funds deposited into the Everglades Trust Fund may
  257  be expended for the purposes of conservation and protection of
  258  natural resources in the Everglades Protection Area and the
  259  Everglades Agricultural Area.
  260         (b) Any cost related to this section, including, but not
  261  limited to, the costs for land acquisition, construction, and
  262  operation and maintenance, may be funded using proceeds from
  263  Florida Forever bonds issued under s. 215.618, as authorized
  264  under that section. The Legislature determines that the
  265  authorization and issuance of such bonds is in the best interest
  266  of the state and determines that the reservoir project should be
  267  implemented. Notwithstanding any other provision of law,
  268  proceeds from the sale of such bonds, less the costs of
  269  issuance, the costs of funding reserve accounts, and other costs
  270  with respect to the bonds, shall be deposited in the following
  271  manner:
  272         1.If land is acquired pursuant to paragraph (3)(a), the
  273  amount of up to $800 million in bond proceeds in the 2017-2018
  274  fiscal year to the Everglades Trust Fund for the purposes of
  275  this section, and the amount of up to $400 million in bond
  276  proceeds in the 2018-2019 fiscal year to the Everglades Trust
  277  Fund for the purposes of this section; or
  278         2. If land is acquired pursuant to paragraph (3)(b), the
  279  amount of up to $1.2 billion in bond proceeds in the 2018-2019
  280  fiscal year to the Board of Trustees of the Internal Improvement
  281  Trust Fund, or the Everglades Trust Fund, if applicable, to be
  282  used for the purposes of this section.
  283         (c) Notwithstanding s. 373.026(8)(b) or any other provision
  284  of law, the use of state funds is authorized for the reservoir
  285  project.
  286         (d) The district shall actively seek additional sources of
  287  funding, including federal funding, for the reservoir project.
  288         (e) If the reservoir project receives Congressional
  289  authorization, the district must seek applicable federal credits
  290  toward the state’s share of funding the land acquisition and
  291  implementation of the reservoir project.
  292         (7) LAKE OKEECHOBEE REGULATION SCHEDULE.—The district shall
  293  request that the United States Army Corps of Engineers include
  294  in its evaluation of the regulation schedule for the lake any
  295  increase in outlet capacity south of the lake which offsets the
  296  harmful freshwater discharges to the St. Lucie and
  297  Caloosahatchee estuaries.
  298         Section 4. Effective January 1, 2019, and contingent upon
  299  the failure of the district or board to acquire land by November
  300  30, 2018, pursuant to section 373.4598(3)(a) or (b), Florida
  301  Statutes, subsection (3) of section 375.041, Florida Statutes,
  302  is amended to read:
  303         375.041 Land Acquisition Trust Fund.—
  304         (3) Funds distributed into the Land Acquisition Trust Fund
  305  pursuant to s. 201.15 shall be applied:
  306         (a) First, to pay debt service or to fund debt service
  307  reserve funds, rebate obligations, or other amounts payable with
  308  respect to Florida Forever bonds issued under s. 215.618; and
  309  pay debt service, provide reserves, and pay rebate obligations
  310  and other amounts due with respect to Everglades restoration
  311  bonds issued under s. 215.619; and
  312         (b) Of the funds remaining after the payments required
  313  under paragraph (a), but before funds may be appropriated,
  314  pledged, or dedicated for other uses:
  315         1. A minimum of the lesser of 30 25 percent or $250 $200
  316  million shall be appropriated annually for Everglades projects
  317  that implement the Comprehensive Everglades Restoration Plan as
  318  set forth in s. 373.470, including the Central Everglades
  319  Planning Project subject to Congressional authorization; the
  320  Long-Term Plan as defined in s. 373.4592(2); and the Northern
  321  Everglades and Estuaries Protection Program as set forth in s.
  322  373.4595. From these funds, $32 million shall be distributed
  323  each fiscal year through the 2023-2024 fiscal year to the South
  324  Florida Water Management District for the Long-Term Plan as
  325  defined in s. 373.4592(2). After deducting the $32 million
  326  distributed under this subparagraph, from the funds remaining, a
  327  minimum of the lesser of 80 76.5 percent or $150 $100 million
  328  shall be appropriated each fiscal year through the 2025-2026
  329  fiscal year for the planning, design, engineering, and
  330  construction of the Comprehensive Everglades Restoration Plan as
  331  set forth in s. 373.470, including the Everglades Agricultural
  332  Area Storage Reservoir, component G, and including the Central
  333  Everglades Planning Project subject to Congressional
  334  authorization. The Department of Environmental Protection and
  335  the South Florida Water Management District shall give
  336  preference to those Everglades restoration projects that reduce
  337  harmful discharges of water from Lake Okeechobee to the St.
  338  Lucie or Caloosahatchee estuaries in a timely manner. For the
  339  purpose of performing the calculation provided in this
  340  subparagraph, the amount of debt service paid pursuant to
  341  paragraph (a) for bonds issued after July 1, 2016, for the
  342  purposes set forth under paragraph (b) shall be added to the
  343  amount remaining after the payments required under paragraph
  344  (a). The amount of the distribution calculated shall then be
  345  reduced by an amount equal to the debt service paid pursuant to
  346  paragraph (a) on bonds issued after July 1, 2016, for the
  347  purposes set forth under this subparagraph.
  348         2. A minimum of the lesser of 7.6 percent or $50 million
  349  shall be appropriated annually for spring restoration,
  350  protection, and management projects. For the purpose of
  351  performing the calculation provided in this subparagraph, the
  352  amount of debt service paid pursuant to paragraph (a) for bonds
  353  issued after July 1, 2016, for the purposes set forth under
  354  paragraph (b) shall be added to the amount remaining after the
  355  payments required under paragraph (a). The amount of the
  356  distribution calculated shall then be reduced by an amount equal
  357  to the debt service paid pursuant to paragraph (a) on bonds
  358  issued after July 1, 2016, for the purposes set forth under this
  359  subparagraph.
  360         3. The sum of $5 million shall be appropriated annually
  361  each fiscal year through the 2025-2026 fiscal year to the St.
  362  Johns River Water Management District for projects dedicated to
  363  the restoration of Lake Apopka. This distribution shall be
  364  reduced by an amount equal to the debt service paid pursuant to
  365  paragraph (a) on bonds issued after July 1, 2016, for the
  366  purposes set forth in this subparagraph.
  367         Section 5. The South Florida Water Management District and
  368  the Board of Trustees of the Internal Improvement Trust Fund
  369  shall notify the Division of Law Revision and Information no
  370  later than December 1, 2018, whether they have acquired land
  371  pursuant to s. 373.4598, Florida Statutes.
  372         Section 6. The Division of Law Revision and Information is
  373  directed to replace the phrase “the effective date of this act”
  374  wherever it occurs in this act with the date the act becomes a
  375  law.
  376         Section 7. Contingent upon bonds being issued for the
  377  purposes of s. 373.4598, Florida Statutes, and if land is
  378  acquired pursuant to s. 373.4598(3)(a), Florida Statutes, the
  379  sum of $64,000,000 in recurring funds from the Land Acquisition
  380  Trust Fund is appropriated for the 2017-2018 fiscal year to pay
  381  debt service on bonds that implement this act and are issued
  382  pursuant to s. 215.618, Florida Statutes.
  383         Section 8. Contingent upon bonds being issued for the
  384  purposes of s. 373.4598, Florida Statutes, and if land is
  385  acquired pursuant to s. 373.4598(3)(a), Florida Statutes, the
  386  sum of $36,000,000 in recurring funds from the Land Acquisition
  387  Trust Fund is appropriated for the 2018-2019 fiscal year to pay
  388  debt service on bonds that implement this act and are issued
  389  pursuant to s. 215.618, Florida Statutes.
  390         Section 9. Contingent upon bonds being issued for the
  391  purposes of s. 373.4598, Florida Statutes, and if land is
  392  acquired pursuant to s. 373.4598(3)(b), Florida Statutes, the
  393  sum of $100,000,000 in recurring funds from the Land Acquisition
  394  Trust Fund is appropriated for the 2018-2019 fiscal year to pay
  395  debt service on bonds that implement this act and are issued
  396  pursuant to s. 215.618, Florida Statutes.
  397         Section 10. Except as otherwise expressly provided in this
  398  act, this act shall take effect upon becoming a law.