Text: SSB3164
Text: SSB3166
Senate Study Bill 3165
SENATE FILE
BY (PROPOSED COMMITTEE ON
NATURAL RESOURCES AND
ENVIRONMENT BILL BY
CHAIRPERSON BLACK)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to water quality, by eliminating certain public
2 drinking water utility permit fee requirements, creating a
3 water quality needs and infrastructure program and fund,
4 creating an unsewered community wastewater financial
5 assistance program and making appropriations, eliminating a
6 sales tax exemption for bottled water, and reallocating
7 revenues from the sales tax on drinking water.
8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
9 TLSB 5565XC 82
10 md/nh/5
PAG LIN
1 1 Section 1. Section 16.134, subsection 4, paragraph a, Code
1 2 2007, is amended to read as follows:
1 3 a. Communities shall be eligible for financial assistance
1 4 by qualifying as a disadvantaged community and seeking
1 5 financial assistance for the installation or upgrade of
1 6 wastewater treatment facilities due to regulatory activity in
1 7 response to water quality standards adopted by the department
1 8 of natural resources in calendar year 2006. For purposes of
1 9 this section, the term "disadvantaged community" means the
1 10 same as defined by the department of natural resources for the
1 11 drinking water facilities revolving loan fund established in
1 12 section 455B.295. Communities with a population of three
1 13 thousand or more do not qualify for financial assistance under
1 14 the program.
1 15 Sec. 2. Section 16.134, subsection 4, paragraph d, Code
1 16 2007, is amended by striking the paragraph and inserting in
1 17 lieu thereof the following:
1 18 d. A community meeting the criteria of paragraph "a" shall
1 19 be required to provide matching moneys in accordance with the
1 20 following:
1 21 (1) Communities with a population of less than three
1 22 thousand three hundred shall be required to provide a ten
1 23 percent match.
1 24 (2) Communities with a population of three thousand three
1 25 hundred or more but less than ten thousand shall be required
1 26 to provide a thirty percent match.
1 27 (3) Communities with a population of ten thousand or more
1 28 shall be required to provide a fifty percent match.
1 29 Sec. 3. NEW SECTION. 16.135 UNSEWERED COMMUNITY
1 30 WASTEWATER FINANCIAL ASSISTANCE PROGRAM == FUND.
1 31 1. The authority shall establish and administer an
1 32 unsewered community wastewater financial assistance program.
1 33 Assistance under the program shall consist of grants issued in
1 34 accordance with this section and no=interest loans with a term
1 35 not to exceed forty years.
2 1 2. a. An unsewered community wastewater assistance fund
2 2 is created in the state treasury under the control of the
2 3 authority. The fund shall consist of moneys appropriated by
2 4 the general assembly and any other moneys available to and
2 5 obtained or accepted by the authority for placement in the
2 6 fund. Repayments of moneys loaned and recaptures of loans
2 7 shall be deposited in the fund. Moneys in the fund are not
2 8 subject to section 8.33. Notwithstanding section 12C.7,
2 9 interest or earnings on money in the fund shall be credited to
2 10 the fund.
2 11 b. Moneys in the fund shall be used to provide assistance
2 12 under the unsewered community wastewater financial assistance
2 13 program established under this section.
2 14 3. For the purposes of this section, the following
2 15 definitions apply:
2 16 a. "Cluster of homes" means an unincorporated area of a
2 17 county which includes six or more homes but less than five
2 18 hundred homes.
2 19 b. "Unsewered community" means a city or a cluster of
2 20 homes without a sewage disposal system.
2 21 4. To be eligible for financial assistance under the
2 22 program, an unsewered community shall meet all of the
2 23 following requirements:
2 24 a. Be a disadvantaged community as defined by rule by the
2 25 department of natural resources for purposes of the drinking
2 26 water facilities revolving loan fund established in section
2 27 455B.295.
2 28 b. Submit an application for financial assistance on a
2 29 form proscribed by the authority.
2 30 c. Have a population of less than three thousand.
2 31 d. Provide a match of five percent of the financial
2 32 assistance received, if the unsewered community has a
2 33 population of less than five hundred.
2 34 5. The authority shall adopt rules that prioritize
2 35 applications submitted under the program. Priority shall be
3 1 given to applications which meet any of the following
3 2 requirements:
3 3 a. Encourage the use of innovative, cost=effective sewage
3 4 disposal systems and technologies.
3 5 b. Use the financial assistance received under the program
3 6 to obtain other federal or state financing.
3 7 c. Will provide significant improvement to water quality
3 8 in the relevant watershed.
3 9 Sec. 4. Section 384.84, subsection 1, Code 2007, is
3 10 amended to read as follows:
3 11 1. The governing body of a city utility, combined utility
3 12 system, city enterprise, or combined city enterprise may
3 13 establish, impose, adjust, and provide for the collection of
3 14 rates and charges to produce gross revenues at least
3 15 sufficient to pay the expenses of operation and maintenance of
3 16 the city utility, combined utility system, city enterprise, or
3 17 combined city enterprise. When revenue bonds or pledge orders
3 18 are issued and outstanding pursuant to this division, the
3 19 governing body shall establish, impose, adjust, and provide
3 20 for the collection of rates to produce gross revenues at least
3 21 sufficient to pay the expenses of operation and maintenance of
3 22 the city utility, combined utility system, city enterprise, or
3 23 combined city enterprise, and to leave a balance of net
3 24 revenues sufficient to pay the principal of and interest on
3 25 the revenue bonds and pledge orders as they become due and to
3 26 maintain a reasonable reserve for the payment of principal and
3 27 interest, and a sufficient portion of net revenues must be
3 28 pledged for that purpose. Rates must be established by
3 29 ordinance of the council or by resolution of the trustees,
3 30 published in the same manner as an ordinance. The governing
3 31 body of a city utility, combined utility system, city
3 32 enterprise, or combined city enterprise may enter into an
3 33 agreement with an eligible applicant, as provided in section
3 34 466A.4, to use proceeds from revenue bonds for a sponsored
3 35 project for water quality protection if the rate imposed is
4 1 not greater than if there was no such agreement. For the
4 2 purposes of this subsection, "sponsored project for water
4 3 quality protection" means a project funded in whole or in part
4 4 under section 16.131, 16.134, 16.135, 455B.183A, 455B.183B,
4 5 455B.183D, or 455B.294, or under another similar provision.
4 6 Sec. 5. Section 423.3, subsection 57, Code Supplement
4 7 2007, is amended to read as follows:
4 8 57. The sales price from all sales of food and food
4 9 ingredients. However, as used in this subsection, "food" does
4 10 not include alcoholic beverages, candy, dietary supplements,
4 11 food sold through vending machines, prepared food, soft
4 12 drinks, bottled water, and tobacco.
4 13 For the purposes of this subsection:
4 14 a. "Alcoholic beverages" means beverages that are suitable
4 15 for human consumption and contain one=half of one percent or
4 16 more of alcohol by volume.
4 17 b. "Bottled water" means water that is sold in a bottle or
4 18 container and is to be used for human consumption. "Bottled
4 19 water" does not include water that is specially formulated for
4 20 infants.
4 21 c. "Candy" means a preparation of sugar, honey, or other
4 22 natural or artificial sweeteners in combination with
4 23 chocolate, fruits, nuts, or other ingredients or flavorings in
4 24 the form of bars, drops, or pieces. Candy shall not include
4 25 any preparation containing flour and shall require no
4 26 refrigeration.
4 27 c. d. "Dietary supplement" means any product, other than
4 28 tobacco, intended to supplement the diet that contains one or
4 29 more of the following dietary ingredients:
4 30 (1) A vitamin.
4 31 (2) A mineral.
4 32 (3) An herb or other botanical.
4 33 (4) An amino acid.
4 34 (5) A dietary substance for use by humans to supplement
4 35 the diet by increasing the total dietary intake.
5 1 (6) A concentrate, metabolite, constituent, extract, or
5 2 combination of any of the ingredients in subparagraphs (1)
5 3 through (5) that is intended for ingestion in tablet, capsule,
5 4 powder, softgel, gelcap, or liquid form, or if not intended
5 5 for ingestion in such a form, is not represented as
5 6 conventional food and is not represented for use as a sole
5 7 item of a meal or of the diet; and is required to be labeled
5 8 as a dietary supplement, identifiable by the "supplement
5 9 facts" box found on the label and as required pursuant to 21
5 10 C.F.R. } 101.36.
5 11 d. e. "Food and food ingredients" means substances,
5 12 whether in liquid, concentrated, solid, frozen, dried, or
5 13 dehydrated form, that are sold for ingestion or chewing by
5 14 humans and are consumed for their taste or nutritional value.
5 15 e. f. "Food sold through vending machines" means food
5 16 dispensed from a machine or other mechanical device that
5 17 accepts payment, other than food which would be qualified for
5 18 exemption under subsection 58 if purchased with a coupon
5 19 described in subsection 58.
5 20 f. g. "Prepared food" means any of following:
5 21 (1) Food sold in a heated state or heated by the seller,
5 22 including food sold by a caterer.
5 23 (2) Two or more food ingredients mixed or combined by the
5 24 seller for sale as a single item.
5 25 (3) "Prepared food", for the purposes of this paragraph,
5 26 does not include food that is any of the following:
5 27 (a) Only cut, repackaged, or pasteurized by the seller.
5 28 (b) Eggs, fish, meat, poultry, and foods containing these
5 29 raw animal foods requiring cooking by the consumer as
5 30 recommended by the United States food and drug administration,
5 31 ch. 3, part 401.11 of its food code, so as to prevent
5 32 foodborne illnesses.
5 33 (c) Bakery items sold by the seller which baked them. The
5 34 words "bakery items" includes but is not limited to breads,
5 35 rolls, buns, biscuits, bagels, croissants, pastries, donuts,
6 1 Danish, cakes, tortes, pies, tarts, muffins, bars, cookies,
6 2 and tortillas.
6 3 (d) Food sold without eating utensils provided by the
6 4 seller in an unheated state as a single item which is priced
6 5 by weight or volume.
6 6 (4) Food sold with eating utensils provided by the seller,
6 7 including plates, knives, forks, spoons, glasses, cups,
6 8 napkins, or straws. A plate does not include a container or
6 9 packaging used to transport food.
6 10 g. h. "Soft drinks" means nonalcoholic beverages that
6 11 contain natural or artificial sweeteners. "Soft drinks" does
6 12 not include beverages that contain milk or milk products; soy,
6 13 rice, or similar milk substitutes; or greater than fifty
6 14 percent of vegetable or fruit juice by volume.
6 15 h. i. "Tobacco" means cigarettes, cigars, chewing or pipe
6 16 tobacco, or any other item that contains tobacco.
6 17 Sec. 6. Section 455B.105, subsection 11, paragraph a,
6 18 unnumbered paragraph 1, Code 2007, is amended to read as
6 19 follows:
6 20 Adopt, by rule, procedures and forms necessary to implement
6 21 the provisions of this chapter, chapter 459, and chapter 459A
6 22 relating to permits, conditional permits, and general permits.
6 23 The commission may also adopt, by rule, a schedule of fees for
6 24 permit and conditional permit applications and a schedule of
6 25 fees which may be periodically assessed for administration of
6 26 permits and conditional permits. The commission's authority
6 27 to impose permit fees shall not extend to permits issued under
6 28 section 455B.174 or 455B.183. In determining the fee
6 29 schedules, the commission shall consider:
6 30 Sec. 7. Section 455B.172, Code 2007, is amended by adding
6 31 the following new subsection:
6 32 NEW SUBSECTION. 11. Prior to a plat receiving final
6 33 approval from the governing body of a city or county, the
6 34 owner of the proposed subdivision shall present a wastewater
6 35 treatment and disposal plan to the county board of health for
7 1 approval. If a wastewater treatment and disposal system is
7 2 proposed that requires a permit from the department,
7 3 submission of the plan to the county board of health is not
7 4 required. If the proposed subdivision is intended to be
7 5 served by individual private sewage disposal systems or small
7 6 clusters of sewage disposal systems serving four or fewer
7 7 homes, the owner of the proposed subdivision shall submit to
7 8 the county board of health complete site evaluation
7 9 information including soils, topography, vegetation,
7 10 watershed, impacted water bodies, and any other information
7 11 required by the county board of health to evaluate the
7 12 proposed wastewater treatment and disposal plan. The county
7 13 may charge a reasonable fee for review and approval services
7 14 required pursuant to this subsection. If a wastewater
7 15 treatment and disposal plan is approved to utilize private
7 16 sewage disposal systems permitted by the county board of
7 17 health, the county shall ensure that a management entity
7 18 legally responsible for the long=term maintenance and
7 19 management of the approved system exists. The management
7 20 entity must employ or contract with a department certified
7 21 wastewater operator to oversee the management of the
7 22 wastewater system. The management entity may be a public
7 23 corporation, an organization organized under chapter 28E, a
7 24 sanitary sewer district, a rural water association, or a
7 25 private corporation.
7 26 Sec. 8. Section 455B.183A, subsection 1, Code 2007, is
7 27 amended to read as follows:
7 28 1. A water quality protection fund is created in the state
7 29 treasury under the control of the department. The fund
7 30 consists of moneys appropriated to the fund by the general
7 31 assembly, moneys deposited into the fund from fees described
7 32 in subsection 2, moneys deposited into the fund from fees
7 33 collected pursuant to sections 455B.187 and 455B.190A, and
7 34 other moneys available to and obtained or accepted by the
7 35 department from the United States government or private
8 1 sources for placement in the fund. The fund is divided into
8 2 the public water supply system account and the private water
8 3 supply system account. Moneys in the public water supply
8 4 system account are appropriated to the department for purposes
8 5 of carrying out the provisions of this division, which relate
8 6 to the administration, regulation, and enforcement of the
8 7 federal Safe Drinking Water Act, and to support the program to
8 8 assist supply systems, as provided in section 455B.183B.
8 9 Moneys in the private water supply system account are
8 10 appropriated to the department for the purpose of supporting
8 11 the programs established to protect private drinking water
8 12 supplies as provided in sections 455B.187, 455B.188, 455B.190,
8 13 and 455B.190A.
8 14 Sec. 9. Section 455B.183A, subsection 2, Code 2007, is
8 15 amended by striking the subsection.
8 16 Sec. 10. NEW SECTION. 455B.183D WATER QUALITY NEEDS AND
8 17 INFRASTRUCTURE PROGRAM == FUND.
8 18 1. The department shall establish and administer a water
8 19 quality needs and infrastructure program. The program shall
8 20 provide financial assistance for the administration,
8 21 regulation, and enforcement of the federal Safe Drinking Water
8 22 Act, source water protection grants, and infrastructure loans
8 23 to drinking water systems.
8 24 2. A water quality needs and infrastructure fund is
8 25 created in the state treasury under the control of the
8 26 department.
8 27 a. All revenue received from the taxation of bottled water
8 28 pursuant to section 423.2, subsection 1, shall be deposited in
8 29 the water quality needs and infrastructure fund.
8 30 b. Notwithstanding any allocation of revenue in section
8 31 423.2, subsection 11, or otherwise, to the contrary, revenue
8 32 received from the taxation of water pursuant to section 423.2,
8 33 subsection 2, shall be deposited in the water quality needs
8 34 and infrastructure fund in accordance with the following:
8 35 (1) For the fiscal year beginning July 1, 2008, and ending
9 1 June 30, 2009, twenty percent of the revenues collected shall
9 2 be deposited in the fund.
9 3 (2) For the fiscal year beginning July 1, 2009, and ending
9 4 June 30, 2010, forty percent of the revenues collected shall
9 5 be deposited in the fund.
9 6 (3) For the fiscal year beginning July 1, 2010, and ending
9 7 June 30, 2011, sixty percent of the revenues collected shall
9 8 be deposited in the fund.
9 9 (4) For the fiscal year beginning July 1, 2011, and ending
9 10 June 30, 2012, eighty percent of the revenues collected shall
9 11 be deposited in the fund.
9 12 (5) For the fiscal year beginning July 1, 2012, and each
9 13 fiscal year thereafter, one hundred percent of the revenues
9 14 collected shall be deposited in the fund.
9 15 c. Notwithstanding section 8.33, moneys in the water
9 16 quality needs and infrastructure fund at the end of each
9 17 fiscal year shall not revert to any other fund but shall
9 18 remain in the fund for expenditure in subsequent fiscal years.
9 19 Notwithstanding section 12C.7, interest and earnings on moneys
9 20 in the fund shall be credited to the fund.
9 21 3. The department shall create the following accounts
9 22 within the water quality needs and infrastructure fund:
9 23 a. An administrative account.
9 24 b. A drinking water infrastructure revolving loan account.
9 25 c. A source water protection account.
9 26 4. Moneys deposited in the fund in a fiscal year shall be
9 27 allocated as follows:
9 28 a. The first two million dollars shall be deposited in the
9 29 water quality protection fund created in section 455B.183A and
9 30 is appropriated to the department to be used for purposes of
9 31 enforcing provisions of the federal Safe Drinking Water Act as
9 32 delegated to the state.
9 33 b. Any money in excess of two million dollars shall be
9 34 allocated as follows:
9 35 (1) Thirty percent shall be deposited in the drinking
10 1 water infrastructure revolving loan account and is
10 2 appropriated to the department to be used for purposes of
10 3 providing low=interest loans to public drinking water systems
10 4 that comply with or have the potential to comply with the
10 5 financial, technical, and managerial criteria of a viability
10 6 assessment and remain in compliance with the requirements of
10 7 the federal Safe Drinking Water Act.
10 8 (2) Thirty percent shall be deposited in the source water
10 9 protection account and is appropriated to the department to be
10 10 used for the purpose of providing grants that build capacity
10 11 for wellhead and watershed protection initiatives.
10 12 (3) Thirty percent shall be deposited in the wastewater
10 13 treatment financial assistance fund created pursuant to
10 14 section 16.134.
10 15 (4) Ten percent shall be deposited in the unsewered
10 16 community wastewater financial assistance fund created
10 17 pursuant to section 16.135.
10 18 Sec. 11. IMPLEMENTATION OF ACT. The fees and funds
10 19 generated as a result of the enactment of this Act are
10 20 intended to cover the costs of any state mandate included in
10 21 this Act and this specification of state funding shall be
10 22 deemed to meet all the state funding=related requirements of
10 23 section 25B.2, subsection 3, and no additional state funding
10 24 shall be necessary for the full implementation of this Act by,
10 25 and enforcement of this Act against, all affected political
10 26 subdivisions.
10 27 EXPLANATION
10 28 This bill removes the requirement that communities must be
10 29 pursuing projects in response to water quality regulatory
10 30 standards adopted by the department of natural resources in
10 31 calendar year 2006 to receive assistance under the wastewater
10 32 treatment financial assistance program. The bill also removes
10 33 unsewered incorporated communities from the list of eligible
10 34 communities under the program and revises community matching
10 35 requirements based on population.
11 1 The bill creates an unsewered community wastewater
11 2 financial assistance program. The bill directs the Iowa
11 3 finance authority to establish and administer the program.
11 4 The bill provides that assistance under the program shall
11 5 consist of grants and no=interest loans with a term not to
11 6 exceed 40 years. The bill requires assistance provided under
11 7 the program to be used for installation of sewage disposal
11 8 systems in a city or a cluster of homes, as defined in the
11 9 bill, without a sewage disposal system.
11 10 The bill creates an unsewered community wastewater
11 11 financial assistance fund in the state treasury under the
11 12 control of the Iowa finance authority. The bill requires that
11 13 moneys in the fund be used to provide assistance under the
11 14 unsewered community wastewater financial assistance program.
11 15 The bill provides that only "disadvantaged communities", as
11 16 defined by the department of natural resources for purposes of
11 17 the drinking water facilities revolving loan fund in Code
11 18 section 455B.295, are eligible for assistance. The bill also
11 19 provides that communities with a population of 3,000 or more
11 20 are not eligible and unsewered communities with a population
11 21 of less than 500 shall be required to provide a 5 percent
11 22 match.
11 23 The bill provides that a governing body of a city utility,
11 24 combined utility system, city enterprise, or combined city
11 25 enterprise may enter into an agreement to use revenue bond
11 26 proceeds for a sponsored project for water quality protection
11 27 with an eligible applicant, if the rate imposed is not greater
11 28 than if there was not a sponsored project agreement.
11 29 The bill excludes "bottled water" from the "food" exemption
11 30 from the state sales tax under Code section 423.3. The bill
11 31 defines bottled water as water sold in a bottle or container
11 32 to be used for human consumption, except water that is
11 33 specially formulated for infants.
11 34 The bill provides that prior to a plat receiving final
11 35 approval from the governing body of a city or county, the
12 1 owner of a proposed subdivision shall present a wastewater
12 2 treatment and disposal plan to the county board of health for
12 3 approval. The bill allows a county to charge a reasonable fee
12 4 for review and approval services. The bill provides that if
12 5 an individual private sewage disposal system is proposed,
12 6 additional information must be submitted for approval and the
12 7 county must ensure that long=term maintenance and management
12 8 is provided for by the owner.
12 9 The bill strikes provisions which allow the environmental
12 10 protection commission to impose fees for public water supply
12 11 system permits required under Code sections 455B.174 and
12 12 455B.183.
12 13 The bill creates a water quality needs and infrastructure
12 14 fund under the control of the department of natural resources.
12 15 The bill provides that all revenue received from the taxation
12 16 of bottled water and a specified portion of revenue collected
12 17 from the taxation of water service pursuant to Code section
12 18 423.2, subsection 2, shall be deposited in the fund. The bill
12 19 also specifies how the moneys deposited in the fund are
12 20 allocated among the three accounts created within the fund,
12 21 the water quality protection fund, and the unsewered community
12 22 wastewater financial assistance fund created in the bill.
12 23 The bill may include a state mandate as defined in Code
12 24 section 25B.3. The bill provides that fees and funds
12 25 generated in the bill are intended to cover the costs of any
12 26 state mandate included in the bill. The inclusion of this
12 27 specification of state funding is intended to reinstate the
12 28 requirement of political subdivisions to comply with any state
12 29 mandates included in the bill.
12 30 LSB 5565XC 82
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Text: SSB3164
Text: SSB3166