The Florida Senate BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) Prepared By: The Professional Staff of the Committee on Fiscal Policy BILL: CS/SB 1638 INTRODUCER: Fiscal Policy Committee and Senator Hutson SUBJECT: Funding for Environmental Resource Management DATE: February 19, 2024 ANALYST STAFF DIRECTOR REFERENCE ACTION 1. Reagan Betta AEG Favorable 2. Reagan Yeatman FP Fav/CS Please see Section IX. for Additional Information: COMMITTEE SUBSTITUTE - Substantial Changes I. Summary: CS/SB 1638 provides that 96 percent of the revenues from the 2021 gaming compact between the Seminole Tribe of Florida and the State of Florida for the acquisition and management of conservation lands and the identification and prioritization of critical clean water infrastructure investments be deposited in the Indian Gaming Revenue Trust Fund within the Department of Financial Services. Provides for the distribution of funds as follows: o $100 million to support the wildlife corridor. Eligible state agencies may submit budget amendments on a first come-first serve basis with the release of funds contingent upon approval. o $100 million for the management of uplands and the removal of invasive species, which is divided as follows: $36 million to the Department of Environmental Protection (DEP), of which: o $32 million for state park land management activities; o $4 million for implementation of the Local Trail Management Grant Program; $32 million to the Department of Agriculture and Consumer Services for land management activities; $32 million to the Fish and Wildlife Conservation Commission for land management activities; o $100 million to the DEP to the Resilient Florida Trust Fund; o The remainder to the DEP to the Water Protection and Sustainability Program Trust Fund. REVISED: BILL: CS/SB 1638 Page 2 Requires the Land Management Uniform Accounting Council to recommend the most efficient use of land management funds provided to state agencies and submit its recommendation to the Executive Office of the Governor, the President of the Senate, and the Speaker of the House of Representatives by January 3, 2027. Appropriates $2 million from the General Revenue Fund to the University of Florida to continually update the Florida Wildlife Corridor plan and the Florida Ecological Greenways Network plan. Appropriates $5 million to the DEP to coordinate with the Water School at Florida Gulf Coast University to conduct a study to identify and analyze potential regional projects that meet the eligibility requirements of the Water Quality Improvement Grant Program. Appropriates $150 million from the General Revenue Fund to the South Florida Water Management District (SFWMD) for operations and maintenance. The SFWMD shall enter into a contract with the Water School and Florida Gulf Coast University to conduct a study of the health and ecosystem of Lake Okeechobee. The bill has a significant negative fiscal impact to state revenues and expenditures. See Section V., Fiscal Impact Statement. The bill takes effect upon becoming a law. II. Present Situation: 2021 Gaming Compact Gaming compacts are regulated by the Federal Indian Gaming Regulatory Act, s. 25 U.S.C. 2701, et seq., and ch. 285, part II, F.S. The State of Florida (state) entered into a gaming compact with the Seminole Tribe of Florida (Seminole Tribe) on April 7, 2010 (the 2010 Compact). In ch. 2021-268, Laws of Florida (CS/SB 2A), the Legislature ratified a new Gaming Compact between the Seminole Tribe and the state, which was executed by Governor Ron DeSantis and the Seminole Tribe on April 23, 2021, as amended on May 17, 2021 (the 2021 Compact). The 2021 Compact was approved by the United States Department of the Interior on August 6, 2021, and became effective upon the publication of notice in the Federal Register. The 2021 Compact supersedes the 2010 Compact. Revenue Sharing under the 2021 Gaming Compact The 2021 Compact establishes a guarantee minimum payment period for the first five years of the compact. During the five year period, the Seminole Tribe is to make guaranteed minimum revenue share payments as specified, to total $2.5 billion. The revenue share payments must be paid by the Seminole Tribe to the state as follows: Percentage payments for slots, raffles, drawings, and new games range from 12 percent of net win 1 up to $2 billion, to 25 percent of net win greater than $3.5 billion. 1 The term “Net Win” is defined in the 2010 Gaming Compact and the 2021 Gaming Compact as “the total receipts from the play of all Covered Games less all prize payouts and free play or promotional credits issued by the Tribe.” See 2021 Gaming Compact Part III, Section T, available at https://www.seminolecompact.com/ (last visited Jan. 22, 2024). BILL: CS/SB 1638 Page 3 Percentage payments for table games range from 15 percent of net win up to $1 billion, to 25 percent of net win greater than $2 billion. Percentage payment for tribal sports betting is 13.75 percent of net win excluding the net win received by the Seminole Tribe on pari-mutuel sports betting. Percentage payment for pari-mutuel sports betting is 10 percent of net win received by the Seminole Tribe on pari-mutuel sports betting. The Seminole Tribe’s guaranteed minimum revenue share payment is $400 million per year for the first five years. At the end of the third year of the five year guaranteed minimum payment period, if the total revenue share payments are less than $1.5 billion, the Seminole Tribe must pay the difference to the state. At the end of the fifth year of the five year guaranteed minimum payment period, if the total revenue share payments are less than $2.5 billion, the Seminole Tribe must pay the difference to the state. The specific revenue share payment amounts paid by the Seminole Tribe to the state will be calculated as outlined in the chart below in accordance with the 2021 Compact. SUMMARY OF REVENUE SHARE PAYMENTS -2021 Gaming Compact (Revenue Share Payments by the Seminole Tribe to the State) Net Win - Slots, Raffles and Drawings; New Games, if Authorized by the State $0-2B: 12%; $2-2.5B: 17.5% $2.5-3B: 20% $3-3.5B: 22.5% $3.5B+: 25% Net Win - Slots, Raffles and Drawings; New Games, if Authorized by the State $0-1B: 15%; $1-1.5B: 17.5% $1.5-2B: 22.5% $2B+: 25% Net Win – Sports Betting Guaranteed Minimum Compact Term Payment of $2.5B (Two billion, five hundred million dollars) (includes all Revenue Share Payments for the first five years of the 2021 Gaming Compact) Litigation The State of Florida began receiving Indian Gaming payments pursuant to the 2021 Compact in October of 2021. The U.S. District Court for the District of Columbia set aside federal approval of the 2021 Compact on November 22, 2021. The Seminole Tribe of Florida continued revenue sharing with the State of Florida through February 2022, after which time they discontinued all payments. Between October 2021 and February 2022, the state received five payments of $37.5 million, totaling $187.5 million 2 2 See the review of the Indian Gaming Revenues by the Revenue Estimating Conference/Impact Conference at http://www.edr.state.fl.us/Content/conferences/Indian-gaming/IndianGamingSummary.pdf (last visited Jan. 16, 2024). The Office of Economic and Demographic Research (EDR) is a research arm of the Legislature principally concerned with BILL: CS/SB 1638 Page 4 Litigation relating to the legality of the 2021 Gaming Compact is currently pending in the Florida Supreme Court, challenging actions taken by the Florida Legislature and Governor to expand casino gambling in Florida in violation of the Florida Constitution (specifically Amendment 3 adopted in 2018, now Article X, Section 30 to the Florida Constitution). The challenged actions include execution and ratification of the 2021 Gaming Compact and enactment of implementing legislation, particularly as to sports betting. In addition, there is a proceeding pending in the U.S. Supreme Court challenging the legality of the 2021 Gaming Compact, but that court has not yet determined to accept the case. Conservation Lands Article X, section 18 of the Florida Constitution requires that “the fee interest in real property held by an entity of the state and designated for natural resources conservation purposes as provided by general law shall be managed for the benefit of the citizens of this state…” 3 Conservation Land Management The Board of the Internal Improvement Trust Fund (board) is charged with the management, control, supervision, conservation, and protection of all lands owned by, or which may hereafter inure to, the state or any of its agencies, departments, boards or commissions. 4 Section 253.034, F.S., specifies that state lands acquired pursuant to ch. 259, F.S., are required to be managed to ensure the conservation of the state’s plant and animal species and to ensure the accessibility of state lands for the benefit and enjoyment of all people of the state, both present and future. 5 Additionally, all lands acquired and managed under ch. 259, F.S., are required to be managed in a manner that provides the greatest combination of benefits to the public and to the resources, for public outdoor recreation which is compatible with the conservation and protection of public lands, and for the purposes for which the lands were acquired. 6 The board is authorized to enter into leases or similar instruments for the use, benefit, and possession of public lands by agencies which may properly use and possess such lands for the benefit of the state. 7 The Fish and Wildlife Conservation Commission is the main land management entity for the state. The Department of Agriculture and Consumer Services (DACS) and the DEP also manage state lands. 8 forecasting economic and social trends that affect policy making, revenues, and appropriations. At the request of the legislative committees or other members of an estimating conference, EDR conducts impact assessments of proposed policy changes. Often, EDR's estimates are incorporated in the committee bill analysis or fiscal note. In some cases, committees will request EDR to take a particular proposal to a consensus estimating conference to obtain an impact estimate that is formally agreed to by both houses of the Legislature and by the Governor's Office. 3 FLA. CONST. art. X, s. 18. 4 Section 253.03, F.S. 5 Section 253.034(5)(a), F.S. 6 Section 259.032(7), F.S.; s. 259.032(7)(a)2, F.S., provides that “such management may include, but not be limited to, the following public recreational uses: fishing, hunting, camping, bicycling, hiking, nature study, swimming, boating, canoeing, horseback riding, diving, model hobbyist activities, birding, sailing, jogging, and other related outdoor activities compatible with the purposes for which the lands were acquired.” 7 Section 253.03(2), F.S. 8 See Land Management Uniform Accounting Council Annual Report (last visited Jan. 22, 2024). BILL: CS/SB 1638 Page 5 Each manager of conservation lands is required to submit a land management plan to the division at least every 10 years. 9 The land management plan must contain, at a minimum, all of the following elements: A physical description of the land. A quantitative data description of the land which includes an inventory of forest and other natural resources; exotic and invasive plants; hydrological features; infrastructure, including recreational facilities; and other significant land, cultural, or historical features. A detailed description of each short-term and long-term land management goal, the associated measurable objectives, and the related activities that are to be performed to meet the land management objectives. A schedule of land management activities which contains short-term and long-term land management goals and the related measurable objective and activities. A summary budget for the scheduled land management activities of the land management plan. For state lands containing or anticipated to contain imperiled species habitat, the summary budget shall include any fees anticipated from public or private entities for projects to offset adverse impacts to imperiled species or such habitat, which fees shall be used solely to restore, manage, enhance, repopulate, or acquire imperiled species habitat. 10 The summary budget is required to be prepared in such a manner that it facilitates computing an aggregate of land management costs for all state-managed lands using the following categories: o Resource management; o Administration; o Support; o Capital improvements; o Recreation visitor services; and o Law enforcement activities. 11 Each land management plan is required to provide a desired outcome, describe both short-term and long-term management goals, and include measurable objectives to achieve those goals. 12 Short-term goals are required to be achievable within a two-year planning period, and long-term goals are required to be achievable within a 10-year planning period. 13 These short-term and long-term management goals are the basis for all subsequent land management activities. 14 Short-term and long-term management goals must include measurable objectives for the following, as appropriate: Habitat restoration and improvement. Public access and recreational opportunities. Hydrological preservation and restoration. Sustainable forest management. Exotic and invasive species maintenance and control. Capital facilities and infrastructure. 9 Section 253.034(5), F.S. 10 Id. 11 Section 259.037(3)(a), F.S. 12 Section 253.034(5)(a), F.S. 13 Id. 14 Id. BILL: CS/SB 1638 Page 6 Cultural and historical resources. Imperiled species habitat maintenance, enhancement, restoration, or population restoration. 15 Land management plans are required to be updated every 10 years on a rotating basis. 16 Each manager of conservation lands is required to update a land management plan whenever the manager proposes to add new facilities or make substantive land use or management changes that were not addressed in the approved plan, or within one year of the addition of significant new lands. 17 Regional land management review teams are required to evaluate the extent to which the existing management plan provides sufficient protection to threatened or endangered species, unique or important natural or physical features, geological or hydrological functions, or archaeological features, and the extent to which the land is being managed for the purposes for which it was acquired and the degree to which actual management practices, including public access, are in compliance with the adopted management plan. 18 If the land management review team determines that reviewed lands are not being managed for the purposes for which they were acquired or in compliance with the adopted land management plan, management policy statement, or management prospectus, or if the managing agency fails to address the review findings in the updated management plan, the department is required to provide the review findings to the board, and the managing agency must report to the board its reasons for managing the lands as it has. 19 The manager of the land is required to consider the findings and recommendations of the land management review team in finalizing the 10-year update of the land management plan. 20 By July 1 of each year, each governmental agency and each private entity designated to manage lands is required to report to the department on the progress of funding, staffing, and resource management of every project for which the agency or entity is responsible. 21 The use or possession of any such lands that is not in accordance with an approved land management plan is subject to termination by the board. 22 Rural and Family Lands Protection Program The Rural and Family Lands Protection Program (RFLPP) within the DACS is an agricultural land preservation program designed to protect agricultural lands through the acquisition of conservation easements. The DACS is authorized to enter into conservation easements for any of the following purposes: Promotion and improvement of wildlife habitat; Protection and enhancement of water bodies, aquifer recharge areas, wetlands, and watersheds; 15 Section 253.034(5)(b), F.S. 16 Section 253.034(5)(e), F.S. 17 Section 253.034(5), F.S. 18 Section 259.036(3), F.S. 19 Section 259.036(5), F.S. 20 Section 259.036(2), F.S. 21 Section 259.032(8), F.S. 22 Section 253.034(5)(h), F.S. BILL: CS/SB 1638 Page 7 Perpetuation of open space on lands with significant natural areas; or Protection of agricultural lands threatened by conversion to other uses. The DACS developed a priority list in 2023, which includes a total of 392,670 acres and divides the 258 projects into three tiers. 23 Florida Greenways and Trails System In 1995, the Legislature created the Florida Greenways Coordinating Council (FGCC), tasking the FGCC with promoting the creation of a statewide greenways and trails system and designating the Department of Environmental Protection (DEP) as the lead agency of the system. 24 The FGCC published a five-year implementation plan for the Florida Greenways and Trails System (FGTS) in 1998. 25 The plan contained a multiuse recreational Opportunity Trail Map for connecting Florida’s greenways and trails, providing a review of existing greenways and trails and making recommendations to complete the system. In 1999, the Legislature created the Florida Greenways and Trails Council (the Council) as recommended by the 1998 Plan. Among other duties, the Council, then and now, facilitates establishment and expansion of a statewide system of greenways and trails for recreational and conservation purposes, including: Recommending priorities for critical links in the FGTS; Reviewing recommendations for acquisition funding; Reviewing proposals for lands to be designated as part of the FGTS; and Recommending updates to the implementation plan for the FGTS. 26 In 2013, the DEP published the 2013-2017 Florida Greenways and Trails System Plan, the first update to the FGTS since the 1998 Plan was published. 27 The Office of Greenways and Trails (OGT) 28 within the DEP, using the 1998 Land Trails Opportunity Map, established criteria to help identify priority land trail corridors within the FGTS, as opposed to priority segments, allowing for identification of potential long-distance trail corridors. The multi-county approach assisted in identification of gaps in connectivity across jurisdictional boundaries and in 23 See DACS 2023 RFLPP Projects Rankings, January 8, 2024, (on file with Appropriations Committee on Agriculture, Environment, and General Government). 24 Chapter 95-260, L.O.F. 25 Executive Summary available at FDEP, Connecting Florida Communities with Greenways and Trails Plan: A Summary of the Five Year Implementation Plan for the Florida Greenways and Trails System (1998), available at 1998FGTSPlanExecutiveSummary_0.pdf (floridadep.gov) (last visited Jan. 16, 2024). 26 Section 260.0142(4), F.S. 27 DEP, Florida Greenways & Trails System Plan 2019-2023, at p. 6, available at FL-Greenway+Trails-System-Plan- (floridadep.gov) (last visited Jan. 16, 2024). 28 The OGT is tasked with fulfilling ch. 260, F.S., the Florida Greenways and Trails Act. The Office leads, plans, and facilitates the development of an interconnected FGTS, through coordinated efforts with state and local partners, to compile local trails data from cities, counties, and other land managing entities into one inclusive system. Id. at p. 4. BILL: CS/SB 1638 Page 8 encouraging regional planning to close those gaps. 29 The FGTS Plan and Maps are currently undergoing a third update for the 2024-2028 Fiscal Years. 30 The DEP is authorized to acquire lands, both public and private, to establish and expand a statewide system of greenways and trails for recreational and conservation purposes, using funds from the Florida Forever Trust Fund distributed to the DEP for acquisition of lands under the Florida Greenways and Trails Program, and to designate lands as part of the FGTS. 31 Florida Wildlife Corridor The 2021 Legislature created the Florida Wildlife Corridor Act to “create incentives for conservation and sustainable development while sustaining and conserving green infrastructure that acts as the foundation of the state’s economy and quality of life.” 32 The Legislature also appropriated $300 million, 33 directing the FDEP to encourage and promote investments in areas that protect and enhance the Wildlife Corridor by establishing a “network of connected wildlife habitats required for the long-term survival of and genetic exchange amongst regional wildlife populations which serves to prevent fragmentation by providing ecological connectivity of the lands needed to furnish adequate habitats and allow safe movement and dispersal.” 34 The Florida Wildlife Corridor (Wildlife Corridor) is statutorily defined as “the conserved lands” 35 and “opportunity areas” 36 defined by the FDEP as priority one, two, and three categories of the Florida Ecological Greenways Network (FEGN). 37 The FEGN “is the primary data layer used to inform the Florida Forever and other state, federal, and regional land acquisition programs regarding the most important ecological corridors and intact landscapes across the state 29 DEP, Florida Greenways & Trails System Plan 2019-2023, at p. 6, available at FL-Greenway+Trails-System-Plan- (floridadep.gov) (last visited Jan. 16, 2024). The DEP’s resulting Land Trails Opportunity Maps are “the state companion to community greenways and trails and bicycle and pedestrian master plans, and [encompass] a combination of paved and unpaved, multiple and single-use trails.” 30 See the 2024-2028 FGTS Plan and Maps Update Schedule at DEP, Florida Greenways and Trails System Plan and Maps, available at Florida Greenways and Trails System Plan and Maps | Florida Department of Environmental Protection (last visited Jan. 16, 2024). 31 Chapter 260 and s. 259.105(3)(h), F.S. “Designation” of lands means the identification and inclusion of specific lands and waterways as part of the statewide system of greenways and trails pursuant to a formal public process, including the specific written consent of the landowner when private property is to be used for trail purposes. When the DEP determines that public access is appropriate for greenways and trails, written authorization must be granted by the landowner to the DEP permitting public access to all or a specified part of the landowner’s property. Section 260.013(3), F.S. The processes for solicitation, application, evaluation, and selection of lands to be acquired or developed, and for designation of public conservation or recreational lands and waterways and for private lands and waterways, are set out in Fla. Admin. Code R. 62S-1. 32 Section 259.1055(3), F.S. 33 Chapter 2021-37. L.O.F., s. 152. 34 Section 259.1055(4)(g), F.S. 35 Defined in s. 259.1055(4)(a), F.S., to mean “federal, state, or local lands owned or managed for conservation purposes, including, but not limited to, federal, state, and local parks; federal and state forests; wildlife management areas; wildlife refuges; military bases and airports with conservation lands; properties owned by land trust and managed for conservation; and privately owned land with a conservation easement, including, but not limited to, ranches, forestry operations, and groves.” 36 Section 259.1055(4)(e), F.S., states “[T]hose lands and waters within the Florida wildlife corridor which are not conserved lands and the green spaces within the Florida wildlife corridor which lack conservation status, are contiguous to or between conserved lands, and provide an opportunity to develop the Florida wildlife corridor into a statewide conservation network.” 37 Section 259.1055(4)(d), F.S. For a 2021 layered map reflecting the Wildlife Corridor, Florida Forever Projects and Acquisitions, and FEGN Priority Levels 1-3, see the FDEP’s map available at Florida Forever and Florida Ecological Greenways Network (FEGN) (floridadep.gov) (last visited Jan. 22, 2024). BILL: CS/SB 1638 Page 9 for protection of Florida’s native wildlife, ecosystem services, and ecological resiliency.” 38 The priority-category lands “are the most important for protecting [an] ecologically functional connected statewide network of public and private conservation lands.” 39, 40 The DEP notes that the existing Wildlife Corridor “encompasses nearly 17.7 million acres – 9.6 million acres (54%) that are already protected and 8.1 million acres (46%) of remaining opportunity areas that do not have conservation status.” 41 Further, “There are 1.46 million acres within the Florida Wildlife Corridor opportunity area that are a high priority for conservation through the State’s Florida Forever program.” 42 The Resilient Florida Grant Program The Florida Legislature has established several statewide resilience programs, including the Resilient Florida Grant Program, the Comprehensive Statewide Flood Vulnerability and Sea Level Rise Data Set, and the Statewide Flooding and Sea Level Rise Resilience Plan. The Resilient Florida Grant Program provides grants to counties or municipalities for community resilience planning, including vulnerability assessments, plan development, and projects to adapt critical assets. 43 In the program’s first two years, 263 implementation projects were awarded a total of nearly $954 million. 44 Vulnerability assessments funded through this program must encompass the entire county or municipality; use the most recent publicly available Digital Elevation Model and dynamic modeling techniques, if available; and analyze the vulnerability of and risks to critical assets, 45 including regionally significant assets. 46 In addition, vulnerability assessments must include, where applicable: 38 FDEP, Florida Wildlife Corridor, available at https://floridadep.gov/sites/default/files/Florida_Wildlife_Corridor.pdf (last visited Jan. 22, 2024). 39 Florida Natural Areas Inventory (FNAI), Florida Natural Areas Inventory Geospatial Open Data, Summary, available at FEGN2021 | Florida Natural Areas Inventory (fnai.org) (last visited Jan. 22, 2024). The FNAI provides scientific support to the FDEP. 40 Section 259.1055(4)(c), F.S., defines the FEGN as “a periodically updated model developed to delineate large connected areas of statewide ecological significance.” 41 Florida Wildlife Corridor Foundation, About the Corridor, available at About The Corridor - The Florida Wildlife Corridor (last visited Jan. 22, 2024). 42 Section 259.105, F.S., sets out the Florida Forever Act. “Florida Forever is Florida’s premier conservation and recreation lands acquisition program; a blueprint for conserving Florida’ natural and cultural heritage.” See FDEP, Florida Forever,” for additional information, available at Florida Forever | Florida Department of Environmental Protection (last visited Jan. 22, 2024). 43 Section 380.093(2)(a), F.S. “Critical asset” is defined to include broad lists of assets relating to transportation, critical infrastructure, emergency facilities, natural resources, and historical and cultural resources. 44 This figure includes $270 million of state funding for the Statewide Flooding and Sea Level Resilience Plan. DEP, Presentation to the Florida Senate Committee on Environment and Natural Resources (Feb. 23, 2023), available at https://www.flsenate.gov/Committees/Show/SSHR/MeetingPacket/5700/10150_MeetingPacket_5700_2.23.23.pdf. 45 Critical assets include transportation assets and evacuation routes (airports, bridges, bus terminals, major roadways, etc.), critical infrastructure (wastewater and stormwater treatment facilities, drinking water facilities, solid and hazardous waste facilities, etc.), critical community and emergency facilities (schools, correctional facilities, fire stations, hospitals, etc.), and natural, cultural, and historical resources (conservation lands, parks, shorelines, wetlands, etc.). Section 380.093(2)(a), F.S. 46 Section 380.093(3)(c), F.S. Regionally significant assets are critical assets that support the needs of communities spanning multiple geopolitical jurisdictions. Section 380.093(2)(d), F.S. BILL: CS/SB 1638 Page 10 Peril of flood comprehensive plan amendments that address the requirements of s. 163.3178(2)(f), F.S., 47 if the county or municipality is subject to, but has not complied with, such requirements; The depth of tidal flooding, current and future storm surge flooding, rainfall-induced flooding (including for a 100-year and 500-year storm), and compound flooding or the combination of tidal, storm surge, and rainfall-induced flooding; and The following scenarios and standards: o All analyses in the North American Vertical Datum of 1988; 48 o At least two local sea level rise scenarios, which must include the 2017 NOAA intermediate-low and intermediate-high sea level rise projections; o At least two planning horizons that include planning horizons for the years 2040 and 2070; and o Local sea level data that has been interpolated between the two closest NOAA tide gauges. 49 The Comprehensive Statewide Flood Vulnerability and Sea Level Rise Data Set and Assessment will provide information necessary to determine the risks to inland and coastal communities. 50 By July 1, 2023, the DEP must develop a data set providing statewide sea level rise projections and information necessary to determine the risks of flooding and sea level rise to inland and coastal communities. By July 1, 2024, the DEP must develop a statewide assessment (using the statewide data set) identifying vulnerable infrastructure, geographic areas, and communities. The statewide assessment must include an inventory of critical assets and be updated every five years. 51 The Statewide Flooding and Sea Level Rise Resilience Plan consists of ranked projects that address risks of flooding and sea level rise to coastal and inland communities. 52 Examples of projects include construction of living shorelines, seawalls, and pump stations, elevation projects, and infrastructure hardening. 53 Counties, municipalities, water management districts, regional water supply authorities, and other entities may submit to the DEP an annual list of proposed projects. Each project must have a minimum 50 percent cost share, unless the project 47 This section provides that, in communities abutting the Gulf of Mexico or Atlantic Ocean or other coastal areas defined by statute, a local government’s comprehensive plan must include a coastal management element. Sections 163.3178(2) and 163.3177(6)(g), F.S. This element must contain a redevelopment component that outlines the principles that must be used to eliminate inappropriate and unsafe development in the coastal areas when opportunities arise. Section 163.3178(2)(f), F.S. 48 A vertical datum is a surface of zero elevation to which heights of various points are referenced. Traditionally, vertical datums have used classical survey methods to measure height differences (i.e. geodetic leveling) to best fit the surface of the earth. The current vertical datum for the contiguous United States and Alaska is the North American Vertical Datum of 1988. NOAA, National Geodetic Survey: Vertical Datums, https://www.ngs.noaa.gov/datums/vertical/#:~:text=TABLE%201%3A%20Current%20Vertical%20Datums%20for%20Unit ed%20States,%20%202002-present%20%201%20more%20rows%20 (last visited Jan. 18, 2024). 49 Section 380.093(3)(d) 50 Section 380.093(4), F.S.; DEP, Resilient Florida Program – Statewide Assessment, https://floridadep.gov/rcp/resilient- florida-program/content/resilient-florida-program-statewide-assessment (last visited Jan. 18, 2024). 51 Id. See also DEP, Resilient Florida Program – Statewide Assessment. 52 Section 380.093(5), F.S. 53 DEP, 2023-2024 Statewide Flooding and Sea Level Rise Resilience Plan, available at https://floridadep.gov/sites/default/files/2023- 24%20Statewide%20Flooding%20and%20Sea%20Level%20Rise%20Resilience%20Plan_0.pdf. BILL: CS/SB 1638 Page 11 assists or is within a financially disadvantaged community. 54 The DEP ranks the projects using a four-tier scoring system. 55 The DEP has adopted rules to implement s. 380.093, F.S., relating to the Statewide Flooding and Sea Level Rise Resilience Plan and project submittal requirements. These rules can be found in Chapter 62S-8 of the Florida Administrative Code. 56 In December 2022, the DEP submitted the FY 23-24 Statewide Flooding and Sea Level Rise Resilience Plan totaling nearly $408 million over the next three years. 57 The DEP may also provide funding for regional resilience entities to assist local governments with planning for the resilience needs of communities and coordinating intergovernmental solutions to mitigate adverse impacts of flooding and sea level rise. 58 As of February 2023, $4 million had been appropriated to regional resilience entities. 59 In 2022, the Statewide Office of Resilience was created within the Executive Office of the Governor for the purpose of reviewing all flood resilience and mitigation activities in the state and coordinating flood resilience and mitigation efforts with federal, state, and local governmental entities and other stakeholders. The office’s Chief Resilience Officer and the DEP worked together to provide the Governor and the Legislature with a report on flood resilience and mitigation efforts across Florida. 60 Water Quality Improvement Grant Program The 2023 Legislature revised the Water Quality Improvement Grant Program 61 which provides funding to address wastewater (including septic to sewer), stormwater and agricultural sources of nutrients in waterbodies that are not attaining nutrient or nutrient-related standards, have an established total maximum daily load or are located within a basin management action plan area, a reasonable assurance plan area, an accepted alternative restoration plan area, or a rural area of opportunity under s. 288.0656, F.S. Financial assistance is available to Florida's governmental entities for projects that have an established total maximum daily load or are located within a basin management action plan area, a reasonable assurance plan area, an accepted alternative restoration plan area, or a rural area of 54 Section 380.093(5)(e), F.S. A financially disadvantaged small community is a municipality with a population of 10,000 or fewer, or a county with a population of 50,000 or fewer, where the per capita annual income is less than the state’s per capita annual income. Id. 55 Section 380.093(5)(h), F.S. 56 Fla. Admin. Code Chapter 62S-8, available at https://floridadep.gov/sites/default/files/Final%20Rule%20Language_0.pdf. 57 DEP and Florida Statewide Office of Resilience, 2022 Flood Resilience and Mitigation Efforts Across Florida, 9, available at https://floridadep.gov/sites/default/files/2022%20Flood%20Resilience%20and%20Mitigation%20Efforts%20Report%20Onl y_0.pdf 58 Section 380.093(6), F.S. 59 DEP, Presentation to the Florida Senate Committee on Environment and Natural Resources, 18 (Feb. 23, 2023), available at https://www.flsenate.gov/Committees/Show/SSHR/MeetingPacket/5700/10150_MeetingPacket_5700_2.23.23.pdf. 60 DEP and Florida Statewide Office of Resilience, 2022 Flood Resilience and Mitigation Efforts Across Florida, 2, available at https://floridadep.gov/sites/default/files/2022%20Flood%20Resilience%20and%20Mitigation%20Efforts%20Report%20Onl y_0.pdf; Letter from Department of Economic Opportunity to DEP, 1-2 (Nov. 9, 2022), available at https://floridadep.gov/DEO_PoF_Letter2022. 61 https://floridadep.gov/wra/wra/content/water-quality-improvement-grant-program (last visited Feb. 14, 2024). BILL: CS/SB 1638 Page 12 opportunity under s. 288.0656, F.S., which will individually or collectively reduce excess nutrient pollution: To retrofit onsite sewage treatment and disposal systems (OSTDS) to upgrade such systems to enhanced nutrient-reducing onsite sewage treatment and disposal systems. To upgrade, expand or construct facilities to provide advanced wastewater treatment, as defined in s. 403.086(4), F.S. To connect OSTDS to central sewer facilities. To address stormwater and agricultural sources of nutrients in waterbodies that are not attaining nutrient or nutrient-related standards. To repair, upgrade, expand or construct domestic wastewater treatment facilities that result in improvements to surface water or groundwater quality, including domestic wastewater reuse and collection systems. Priority will be given to projects that: Have the maximum estimated reduction in nutrient load per project. Demonstrate project readiness. Are cost-effective. Have a cost-share identified by the applicant, except for rural areas of opportunity. Have previous state commitment and involvement in the project, considering previously funded phases, the total amount of previous state funding, and previous partial appropriations for the proposed project. Are in a location where reductions are needed most to attain the water quality standard of a waterbody not attaining nutrient or nutrient-related standards III. Effect of Proposed Changes: Section 1 creates s. 380.095, F.S., to provide dedicated funding for conservation lands and clean water infrastructure. The bill provides that the Legislature recognizes that: The conservation and preservation of the land and water resources of the state are essential to maintaining the quality of life enjoyed by Floridians and to sustaining and growing a thriving state economy, including legacy industries such as tourism, agriculture, and fishing. Historic investments in land conservation have fostered and will continue to foster the preservation of Florida’s heritage, allow for the strategic expansion and interconnectivity of the Florida wildlife corridor (wildlife corridor), and promote the protection of crucial habitat necessary for the survival, protection, and recovery of threatened and endangered native species, including the Florida panther. The state needs to be a good steward of the land, which necessitates the need for commitment to provide funding at levels sufficient to ensure the proper management of such lands. These investments provide opportunities for expanded public access to state lands, including state parks, the Florida Greenways and Trails System, and game lands, among others, for recreation; and promotes opportunities to protect such lands from wildfire damage and the infiltration of dangerous nonnative plant and animal species, among other benefits. The state is particularly vulnerable to adverse impacts from increases in the frequency and duration of rainfall events and sea level rise. The consequences of such events not only endanger human lives and properties, but also threaten Florida’s natural habitats and biodiversity. The Legislature further recognizes that enhancing the state’s resiliency to storm events and sea level rise is essential to Florida’s economic stability and growth. BILL: CS/SB 1638 Page 13 The need for additional revenue sources to address the gap in funding needs necessary to address water quality impacts, and that projections for significant population growth further exacerbate such need It is in the best interest of the residents of the State of Florida to dedicate revenues from the gaming compact between the Seminole Tribe of Florida and the State of Florida to acquire and manage conservation lands, and to make significant investments in resiliency efforts and clean water infrastructure. The bill dedicates revenues from the 2021 gaming compact between the Seminole Tribe of Florida and the State of Florida to acquire and manage conservation lands and to identify and fund the prioritization of critical clean water infrastructure investments. Specifically the bill provides that, notwithstanding s. 285.710, F.S., the Department of Revenue, upon receipt, shall deposit 96 percent of the revenue share payments received under the compact into the Indian Gaming Revenue Trust Fund within the Department of Financial Services (DFS). The funds shall be distributed as follows: $100 million to support the wildlife corridor, including the acquisition of lands or conservation easements within the wildlife corridor. To be eligible for funding, the acquisition project must be included on a land acquisition priority list. Eligible state agencies may submit budget amendments on a first come-first serve basis with the release of funds contingent upon approval. $100 million for the management of uplands and the removal of invasive species, which is divided as follows: o $36 million to the Department of Environmental Protection (DEP), of which: $32 million to the State Park Trust Fund for state park land management activities; $4 million to the Internal Improvement Trust Fund for implementation of the Local Trail Management Grant Program; o $32 million to the Incidental Trust Fund within the Department of Agriculture and Consumer Services (DACS) for land management activities; o $32 million to the State Game Trust Fund within the Fish and Wildlife Conservation Commission (FWC) for land management activities; o Additionally, the bill provides that state agencies may not use more than 25 percent of their funds for land management for operation capital outlay or capital assets. $100 million to the Resilient Florida Trust Fund within the DEP for the Statewide Flooding and Sea Level Rise Resilience Plan; and The remainder to the Water Protection and Sustainability Program Trust Fund within the DEP for the Water Quality Improvement Grant Program. Section 2 creates s. 260.0145, F.S., to, subject to appropriation, establish the Local Trail Management Grant Program within the DEP. The Local Trail Management Grant Program will provide grants to assist local governments with costs associated with the operation and maintenance of trails within the Florida Greenways and Trails System. The bill provides that a local government may receive multiple grant awards per application cycle. The DEP is required to give priority to each of the following: BILL: CS/SB 1638 Page 14 A local government that provides cost share for the costs associated with the operation and maintenance of the trails, except for trails within fiscally constrained counties or rural areas of opportunity. Trails within the wildlife corridor. A local government may only use grant funds for the operation and maintenance of trails, including, but not limited to, the purchase of equipment and capital assets; the funding of necessary repairs to ensure the safety of trail users; and other necessary maintenance, such as pressure washing, bush pruning, and clearing debris. A local government may not use grant funds for the planning, design, or construction of trails. Beginning January 15, 2025, and each January 15 thereafter, the DEP is required to submit a report listing the grants awarded to the Governor, the President of the Senate, and the Speaker of the House of Representatives. The report must include all of the following information for each grant award: The grant recipient’s name. A description of the individual components of the trail, a description of the maintenance activities funded. The total management cost for the trail components. The cost share, if any, provided by the recipient. Section 3 amends s. 259.1055, F.S., to authorize the FWC to enter into voluntary agreements with private landowners for environmental services within the wildlife corridor. The agreements must require that the landowner protect and restore water resources; improve management of wildlife habitat, including long-term conservation of forest and grassland soils and native plants; manage the land in a manner that keeps the desired ecosystem healthy for protected species, such as the gopher tortoise and the Florida panther; or provide other incentives to landowners to continue and improve land uses that are both economically sustainable and beneficial to the environment of Florida. The FWC shall ensure that any agreement for environmental services entered into requires the landowner to manage the land in a manner that improves or enhances the land beyond what is required under any other agreement or contract the landowner may have with the state. The bill provides that, subject to appropriation, the FWC may use land management funds for this purpose. Section 4 provides that the Land Management Uniform Accounting Council (LMUAC) shall recommend the most efficient and effective use of the funds available to state agencies for land management activities created with this bill. The recommendations must be based on a review of the resources of each land management agency to determine current expenditures, including personnel costs, spent specifically on upland management activities and invasive species removal. The recommendations must include a calculation methodology to distribute the funds to state agencies specified in s. 380.095(2)(b), F.S. BILL: CS/SB 1638 Page 15 The LMUAC shall adopt its initial recommendation and submit it to the Executive Office of the Governor, the President of the Senate, and the Speaker of the House of Representatives by January 3, 2027. Thereafter, the LMUAC shall update its recommendation in the biennial report. Section 5 amends s. 403.0673, F.S., to provide that the DEP prioritize projects in the Water Quality Improvement Program that were determined eligible in a previous application cycle and were able to demonstrate project readiness but were not awarded a grant. The bill also requires the DEP to include these applicants in the annual report submitted to the Governor, the President of the Senate, and the Speaker of the House of Representatives each January 15. The bill further requires that the report include the progress made in the implementation of multi-year projects, including funds spent, remaining costs, and remaining timeline for full implementation. Section 6 provides that contingent upon sufficient funds being distributed to the Indian Gaming Revenue Trust Fund for the 2024-2025 fiscal year, the sum of $2 million in recurring funds from the General Revenue Fund is appropriated to the University of Florida to continually update the wildlife corridor plan and the Florida Ecological Greenways Network plan. Section 7 provides that contingent on the funds being distributed to the DEP pursuant to s. 380.095(2)(d), F.S., and for the 2024-2025 fiscal year, the sum of $5 million in nonrecurring funds from the Water Protection and Sustainability Trust Fund within the DEP is appropriated to the DEP to coordinate with the Water School at Florida Gulf Coast University (Water School) to conduct a study to identify and analyze potential regional projects that meet the eligibility requirements of the Water Quality Improvement Grant Program. At a minimum, the study must include the collection and consolidation of data regarding water quality to identify potential regional projects, including stormwater, hydrologic improvements, and innovative technologies, which reduce nutrient loading to water bodies identified in s. 403.0673(1), F.S. The DEP shall submit the report to the Executive Office of the Governor, the President of the Senate, and the Speaker of the House of Representatives by January 3, 2025. Section 8 provides that contingent upon funds being distributed to the Indian Gaming Revenue Trust Fund within the DFS pursuant to s. 380.095, F.S., and for the 2024-2025 fiscal year, the sum of $100 million in nonrecurring funds from trust funds is appropriated to Administered Funds for land acquisition pursuant to s. 380.095(2)(a), F.S. Section 9 provides that contingent upon funds being distributed to the DEP pursuant to s. 380.095(2)(b)1., F.S., and for the 2024-2025 fiscal year, the sum of $4 million in nonrecurring funds from the Internal Improvement Trust Fund within the DEP is appropriated for the purpose of implementing the Local Trail Management Grant Program created pursuant to s. 260.0145, F.S. Section 10 provides that contingent upon funds being distributed to the DEP pursuant to s. 380.095(2)(b)1., F.S., and for the 2024-2025 fiscal year, the sum of $32 million in nonrecurring funds from the State Park Trust Fund within the DEP is appropriated for land management activities as specified in s. 380.095(2)(b)1.a., F.S. Section 11 provides that contingent upon funds being distributed to the DACS pursuant to s. 380.095(2)(b)2., F.S., and for the 2024-2025 fiscal year, the sum of $32 million in BILL: CS/SB 1638 Page 16 nonrecurring funds from the Incidental Trust Fund within the DACS is appropriated for land management activities as specified in s. 380.095(2)(b)2., F.S. Section 12 provides that contingent upon funds being distributed to the FWC pursuant to s. 380.095(2)(b)3., F.S., and for the 2024-2025 fiscal year, the sum of $32 million in nonrecurring funds from the State Game Trust Fund within the FWC is appropriated for control of invasive species and upland land management activities pursuant to s. 380.095(2)(b)3., F.S. Section 13 provides that contingent upon funds being distributed to the DEP pursuant to s. 380.095(2)(c), F.S., and for the 2024-2025 fiscal year, the sum of $100 million in nonrecurring funds from the Resilient Florida Trust Fund within the DEP is appropriated for the Statewide Flooding and Sea Level Rise Resilience Plan pursuant to s. 380.093, F.S. Section 14 provides that contingent upon funds being distributed to the DEP pursuant to s. 380.095(2)(d), F.S., and for the 2024-2025 fiscal year, the sum of $79 million in nonrecurring funds from the Water Protection and Sustainability Program Trust Fund within the DEP is appropriated for the Water Quality Improvement Grant Program pursuant to s. 403.0673, F.S. Section 15 provide that for the 2024-2025 fiscal year, $150 million in nonrecurring funds from the General Revenue Fund is appropriated to the South Florida Water Management District (SFWMD) for operations and maintenance responsibilities under the purview of the district. The funds must be placed in reserve. From the funds the SFWMD shall enter into a contract with the Water School to conduct a study of the health and ecosystem of Lake Okeechobee. The study must take into account the health of plant, fish, and wildlife to be used for future planning of invasive plant control, replanting of native vegetation, and fish and game management. The study must be submitted by January 1, 2025, to the Executive Office of the Governor, the President of the Senate, and the Speaker of the House of Representatives. The DEP is authorized to submit budget amendments to request release of funds contingent upon the submission of a spend plan and negotiated draft contract between the SFWMD and The Water School. Section 16 provides that this act shall take effect upon becoming a law. IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: None. B. Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. BILL: CS/SB 1638 Page 17 D. State Tax or Fee Increases: None. E. Other Constitutional Issues: None. V. Fiscal Impact Statement: A. Tax/Fee Issues: None. B. Private Sector Impact: None. C. Government Sector Impact: The 96 percent of compact revenues distributed to the various trust funds in the bill, will result in $384 million less distributed to the General Revenue Fund based upon an estimated $400 million in compact payments, which is the minimum amount set in the compact. The bill provides the following appropriations from the trust funds to which the compact revenues are distributed, contingent upon such distributions being made: $100 million to support the wildlife corridor. Eligible state agencies may submit budget amendments on a first come-first serve basis with the release of funds contingent upon approval. $100 million for the management of uplands and the removal of invasive species, which is divided as follows: o $36 million to the Department of Environmental Protection, of which: $32 million for state park land management activities; $4 million for implementation of the Local Trail Management Grant Program; o $32 million to the Department of Agriculture and Consumer Services for land management activities; o $32 million to the Fish and Wildlife Conservation Commission for land management activities; $100 million to the Department of Environmental Protection for the Resilient Grant Program; The remainder (which is $79 million if the minimum of $400 million in payments is met) to the Department of Environmental Protection for the Water Quality Improvement Grant Program. Additionally, the bill: BILL: CS/SB 1638 Page 18 Provides $2 million, from the General Revenue Fund, to the University of Florida to continually update the Florida Wildlife Corridor plan and the Florida Ecological Greenways Network plan. Provides $5 million to the DEP to coordinate with the Water School at Florida Gulf Coast University to conduct a study to identify and analyze potential regional projects that meet the eligibility requirements of the Water Quality Improvement Grant Program. Provides $150 million nonrecurring general revenue to the South Florida Water Management District for operations and maintenance and to conduct a study of the health of Lake Okeechobee. VI. Technical Deficiencies: Currently the Indian Gaming Revenue Trust Fund does not exist within the Department of Financial Services and would need to be created. VII. Related Issues: None. VIII. Statutes Affected: This bill substantially amends sections 259.1055 and 403.0673 of the Florida Statutes. This bill creates sections 260.0145 and 380.095 of the Florida Statutes. This bill creates undesignated sections of law. IX. Additional Information: A. Committee Substitute – Statement of Changes: (Summarizing differences between the Committee Substitute and the prior version of the bill.) CS by Fiscal Policy on February 15, 2024: The committee substitute: Changes the distribution of gaming compact funds as follows: o $100 million to support the wildlife corridor. Eligible state agencies may submit budget amendments on a first come-first serve basis with the release of funds contingent upon approval. o $100 million for the management of uplands and the removal of invasive species, which is divided as follows: $36 million to the Department of Environmental Protection, of which: $32 million for state park land management activities; $4 million for implementation of the Local Trail Management Grant Program; BILL: CS/SB 1638 Page 19 $32 million to the Department of Agriculture and Consumer Services for land management activities; $32 million to the Fish and Wildlife Conservation Commission for land management activities; o $100 million to the Department of Environmental Protection for the Resilient Grant Program; o The remainder ($79 million) to the Department of Environmental Protection for the Water Quality Improvement Grant Program. Removes provisions regarding the creation of the Water Quality Work Program. Provides management techniques for the Florida Wildlife Corridor. Requires the Land Management Uniform Accounting Council to recommend the most efficient use of land management funds provided to state agencies and submit its recommendation to the Executive Office of the Governor, the President of the Senate, and the Speaker of the House of Representatives by January 3, 2027. Thereafter the LMUAC shall update its recommendation in the biennial report. Provides $150 million to the South Florida Water Management District for operations and maintenance and to conduct a study of the health of Lake Okeechobee. B. Amendments: None. This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.