S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    238
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT to amend the environmental conservation law and the state finance
   law, in relation to establishing the public water justice act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall be known and may be cited as the "public
 water justice act".
   § 2. Section 15-0109 of the environmental conservation law is  amended
 to read as follows:
 § 15-0109. General jurisdiction.
   The department shall exercise its powers and perform its duties in any
 matter  affecting the construction of improvements to or developments of
 water resources for the public health, safety or welfare, including  but
 not  limited  to  the  supply  of potable waters for the various munici-
 palities and inhabitants thereof,  the  use  of  water  for  industrial,
 COMMERCIAL,  and  agricultural operations, the developed and undeveloped
 water power of the state, the facilitation of proper  drainage  and  the
 regulation of flow and improvement of the rivers of the state.
   §  3.  Article  15 of the environmental conservation law is amended by
 adding a new title 35 to read as follows:
                                 TITLE 35
                           PUBLIC WATER JUSTICE
 SECTION 15-3501. DEFINITIONS.
         15-3503. LEGISLATIVE FINDINGS AND INTENT.
         15-3505. PROHIBITION OF DIVERSION OR TRANSFER FOR  THE  SALE  OF
                    WATER.
         15-3507. EXCEPTIONS TO PROHIBITIONS.
         15-3509. AUTHORIZED SALE OF WATER.
         15-3511. USE OF PUBLIC WATER JUSTICE FUNDS.
         15-3513. RULE MAKING AUTHORITY.
 § 15-3501. DEFINITIONS.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00610-01-3
 S. 238                              2
 
   AS  USED  IN  THIS  TITLE THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   1.  "AFFORDABILITY" MEANS MEASURES OR OTHER ASSISTANCE TO ASSURE EQUAL
 ACCESS TO ADEQUATE CLEAN, SAFE WATER AND SANITATION,  WITHOUT  DISCRIMI-
 NATION,  INTERFERENCE  OR INEQUITABLE OR UNJUST TERMINATION OF THE RIGHT
 OF ACCESS TO WATER BY ANY PERSON OR HOUSEHOLD OF PERSONS  WITH  INSUFFI-
 CIENT  INCOME  FROM HARDSHIP OR DISABILITY TO PAY THE FULL RATE OR PRICE
 FOR ACCESS TO A MINIMUM WATER SUPPLY TO PROTECT  HEALTH  AND  SANITATION
 FOR THEIR DWELLING.
   2.  "APPLICANT"  MEANS A PERSON, CORPORATION, OR OTHER ORGANIZATION OR
 ENTITY APPLYING FOR A LICENSE UNDER THIS TITLE.
   3. "COMMUNITY PUBLIC WATER SUPPLY" OR "PUBLIC COMMUNITY WATER  SUPPLY"
 MEANS  A  PUBLIC  WATER  SUPPLY  THAT PROVIDES YEAR-ROUND SERVICE TO NOT
 FEWER THAN FIFTEEN LIVING UNITS OR WHICH REGULARLY  PROVIDES  YEAR-ROUND
 SERVICE TO NOT FEWER THAN TWENTY-FIVE INDIVIDUALS.
   4.  "CUSTOMER  SERVICE CONNECTION" MEANS THE PIPE BETWEEN A WATER MAIN
 AND CUSTOMER SITE PIPING OR BUILDING PLUMBING SYSTEM.
   5. "CUSTOMER SITE PIPING" MEANS AN UNDERGROUND PIPING SYSTEM OWNED  OR
 CONTROLLED BY A CUSTOMER THAT CONVEYS WATER FROM SUCH CUSTOMER'S CUSTOM-
 ER  SERVICE  CONNECTION TO BUILDING PLUMBING SYSTEMS AND OTHER POINTS OF
 USE ON LANDS OWNED  OR  CONTROLLED  BY  SUCH  CUSTOMER.  "CUSTOMER  SITE
 PIPING"  SHALL  NOT  INCLUDE  ANY  SYSTEM THAT INCORPORATES TREATMENT TO
 PROTECT PUBLIC HEALTH.
   6. "DISADVANTAGED COMMUNITY" SHALL MEAN SUCH COMMUNITIES AS IDENTIFIED
 PURSUANT TO SECTION 75-0111 OF THIS CHAPTER.
   7. "DIVERSION" MEANS THE TRANSFER OF WATER BY ANY MEANS, INCLUDING  IN
 A  CONTAINER  INTENDED  FOR  AN  IMMEDIATE  OR END-USE CONSUMER FROM ITS
 SOURCE IN ONE LAKE OR WATERSHED TO ANOTHER LAKE OR WATERSHED.
   8. "LICENSE" MEANS THE AUTHORIZATION PURSUANT TO  SECTION  15-3509  OF
 THIS  TITLE  BY  THE  STATE  TO ALLOW THE WITHDRAWAL, REMOVAL, DIVERSION
 AND/OR TRANSFER OF WATERS OF THE STATE BY ANY PERSON FOR THE PURPOSE  OF
 THE PRODUCTION AND SALE OF BOTTLED WATER.
   9. "LICENSEE" MEANS THE HOLDER OF A LICENSE UNDER THIS TITLE.
   10.  "PUBLIC  WATER  SUPPLY"  MEANS A COMMUNITY PUBLIC WATER SUPPLY OR
 WATERWORKS SYSTEM THAT PROVIDES WATER FOR DRINKING OR HOUSEHOLD PURPOSES
 TO PERSONS OTHER THAN THE SUPPLIER OF SUCH WATER, AND SHALL NOT  INCLUDE
 EITHER OF THE FOLLOWING:
   (A)  A  WATERWORKS  SYSTEM THAT SUPPLIES WATER TO ONLY ONE DWELLING OR
 MULTIPLE DWELLING, AS SUCH TERMS ARE DEFINED  BY  SECTION  FOUR  OF  THE
 MULTIPLE DWELLING LAW; OR
   (B) A WATERWORKS SYSTEM THAT CONSISTS SOLELY OF CUSTOMER SITE PIPING.
   11.  "ROYALTY  FEE"  MEANS  COMPENSATION TO THE STATE FOR THE AUTHORI-
 ZATION OF A LICENSE TO ALLOW A WITHDRAWAL, DIVERSION OR TRANSFER BY  ANY
 PERSON FROM THE SOVEREIGN WATERS OF THE STATE FOR THE PURPOSE OF PRODUC-
 ING  AND  PACKAGING  WATER  FOR  THE SALE OF BOTTLED WATER UNDER SECTION
 15-3509 OF THIS TITLE.
   12. "SALE OF WATER" MEANS THE PRODUCTION,  PACKAGING  OR  DELIVERY  OF
 WATER FROM A WATER SOURCE OR PUBLIC WATER SUPPLY IN CONTAINERS OR BY ANY
 OTHER MEANS IN EXCHANGE FOR MONEY OR OTHER CONSIDERATION.
   13.  "SALE OF BOTTLED WATER" MEANS WATER WITHDRAWN FROM A WATER SOURCE
 OR PUBLIC WATER SUPPLY AND TRANSFERRED OR DIVERTED TO A PLANT  OR  OTHER
 FACILITY  FOR  THE  SALE  OF WATER IN A CONTAINER OR PACKAGE OF NOT MORE
 THAN 5.7 GALLONS.
   14. "SPRING WATER" MEANS SPRING WATER AS DEFINED IN 21 C.F.R.  165.110
 FOR BOTTLED WATER.
 S. 238                              3
 
   15. "WATERSHED" MEANS THE WATERSHED OF PRIMARY RIVERS AND THE SUB-WAT-
 ERSHEDS OF THEIR TRIBUTARY STREAMS AND CREEKS.
   16. "WATERWORKS SYSTEM" MEANS A SYSTEM OF PIPES AND STRUCTURES THROUGH
 WHICH  WATER  IS  OBTAINED AND DISTRIBUTED, INCLUDING BUT NOT LIMITED TO
 WELLS AND WELL STRUCTURES, INTAKES AND CRIBS, PUMPING  STATIONS,  TREAT-
 MENT  PLANTS,  STORAGE TANKS, PIPELINES AND APPURTENANCES, OR A COMBINA-
 TION THEREOF, ACTUALLY USED OR INTENDED  FOR  USE  FOR  THE  PURPOSE  OF
 FURNISHING WATER FOR DRINKING OR HOUSEHOLD PURPOSES.
   17.  "WATER  MAIN" MEANS A PIPE OWNED OR CONTROLLED BY A SUPPLIER THAT
 MAY CONVEY WATER TO A CUSTOMER SERVICE CONNECTION OR TO A FIRE HYDRANT.
   18. "WATERS OF THE STATE" GROUNDWATER, LAKES, RIVERS, AND STREAMS  AND
 ALL OTHER WATERCOURSES AND WATERS, INCLUDING THE GREAT LAKES, WITHIN THE
 TERRITORIAL  BOUNDARIES  OF THE STATE, AND SHALL INCLUDE WATER WITHDRAWN
 FROM THE WATERS OF THE STATE AND DELIVERED THROUGH PUBLIC WATERWORKS  OR
 PUBLIC  WATER  UTILITY  SYSTEMS.  WATERS  OF THE STATE SHALL NOT INCLUDE
 DRAINAGE WAYS AND PONDS DESIGNED AND CONSTRUCTED SOLELY  FOR  WASTEWATER
 CONVEYANCE, TREATMENT, OR CONTROL.
   19.  "WITHDRAWAL"  MEANS  THE  REMOVAL  OF WATER FROM SURFACE WATER OR
 GROUNDWATER.
   20. "PUBLIC WATER JUSTICE FUND" MEANS SUCH FUND  ESTABLISHED  PURSUANT
 TO SECTION NINETY-NINE-QQ OF THE STATE FINANCE LAW.
 § 15-3503. LEGISLATIVE FINDINGS AND INTENT.
   1.  THE  WATERS OF THE STATE ARE HELD BY THE STATE AS SOVEREIGN AND IN
 PUBLIC TRUST FOR THE BENEFIT OF THE PEOPLE OF THE STATE OF NEW YORK.
   2. AS TRUSTEE, THE STATE OF NEW YORK SHALL  PROTECT  AND  SUSTAIN  THE
 INTEGRITY OF FLOWS, LEVELS, AND QUALITY OF WATER, FISH AND AQUATIC HABI-
 TAT FOR THE USE AND ENJOYMENT BY CITIZENS NOW AND IN THE FUTURE.
   3.  AS  TRUSTEE,  AND  BASED  ON  THE PARAMOUNT PUBLIC INTEREST IN THE
 WATERS OF THE STATE AND PUBLIC HEALTH OF ITS CITIZENS, THE  STATE  SHALL
 PROVIDE  FOR  AND  PROTECT  THE  RIGHT OF ACCESS TO SAFE DRINKING WATER,
 WATER SOURCES, PUBLIC WATER SUPPLY, PUBLIC  WATERWORKS  AND  INFRASTRUC-
 TURE,  PUBLIC HEALTH, AND FISHING, NAVIGATION, RECREATION, CONSERVATION,
 AND THE REASONABLE USE OF WATER IN  CONNECTION  WITH  THE  OWNERSHIP  OR
 LAWFUL OCCUPANCY OF LAND, NOT LIMITED TO DOMESTIC, AGRICULTURAL, COMMER-
 CIAL, INDUSTRIAL AND PUBLIC UTILITY USES.
 § 15-3505. PROHIBITION OF DIVERSION OR TRANSFER FOR THE SALE OF WATER.
   EXCEPT  AS OTHERWISE SPECIFICALLY PROVIDED IN THIS TITLE, NO WATERS OF
 THE STATE SHALL BE WITHDRAWN, TAKEN, DIVERTED, AND/OR TRANSFERRED OUT OF
 ANY WATERSHED OF THE STATE FOR THE PURPOSE OF THE SALE OF SUCH WATER  IN
 ANY SIZE CONTAINER, PACKAGE, OR IN ANY OTHER MANNER TO ANOTHER WATERSHED
 WITHIN OR OUTSIDE OF THE TERRITORIAL BOUNDARIES OF THE STATE.
 § 15-3507. EXCEPTIONS TO PROHIBITIONS.
   1. PROHIBITED ACTS UNDER SECTION 15-3505 OF THIS TITLE SHALL NOT APPLY
 TO ANY OF THE FOLLOWING:
   (A)  THE  WITHDRAWAL,  TREATMENT,  DISTRIBUTION, AND DELIVERY OF WATER
 SERVICES BY A PUBLIC OR PRIVATE WATER UTILITY OR COMMUNITY PUBLIC  WATER
 SUPPLY OR WATERWORKS SYSTEM.  THE EXCEPTION UNDER THIS SUBDIVISION SHALL
 NOT  APPLY  TO  THE  DISTRIBUTION  OR  DELIVERY OF WATER TO A PERSON WHO
 RECEIVES WATER FROM A PUBLIC WATERWORKS OR PUBLIC WATER  UTILITY  SYSTEM
 FOR THE PURPOSE OF THE SALE OF SUCH WATER.
   (B) PRODUCTS INTO WHICH WATER FROM A PRIVATE WELL OR PUBLIC WATERWORKS
 SYSTEM  OR  PUBLIC  WATER UTILITY IS INCORPORATED, OR WATER INCORPORATED
 INTO OR USED IN A PRODUCT OTHER THAN WATER ITSELF.
   (C) THE SALE OF WATER ON PREMISES FROM A PRIVATE WELL OR PUBLIC WATER-
 WORKS SYSTEM IN A GLASS, BOTTLE OR  OTHER  CONTAINER,  INCIDENTAL  TO  A
 S. 238                              4
 
 WHOLESALE  OR  RETAIL  RESTAURANT,  FOOD  SERVICE  OR  OTHER BUSINESS OR
 COMMERCIAL OPERATION.
   (D)  THE  SALE  OF WATER OF THE STATE IN CONTAINERS WITH A CAPACITY OF
 NOT MORE THAN 5.7 GALLONS, BUT ONLY IF ALL OF  THE  FOLLOWING  STANDARDS
 ARE DULY ESTABLISHED AND DETERMINED TO BE MET BY THE DEPARTMENT:
   (I)  SUCH  TRANSFER  AND  DIVERSION  OF WATER IS PART OF BOTTLED WATER
 PRODUCTION AND SALE FACILITIES AND OPERATIONS ALREADY EXISTING UPON  THE
 EFFECTIVE  DATE  OF  THIS  SECTION, SUBJECT TO COMPLIANCE WITH ALL OTHER
 PROVISIONS OF THIS TITLE, AND AUTHORIZED BY THE DEPARTMENT  PURSUANT  TO
 SECTION 15-3509 OF THIS TITLE;
   (II)  DETERMINATION  THAT  THE  WATER  SOURCE  THAT  IS TRANSFERRED OR
 DIVERTED IS NOT SPRING WATER, UNLESS OTHERWISE AUTHORIZED BY THE DEPART-
 MENT UNDER SECTION 15-3509 OF THIS TITLE;
   (III) DETERMINATION THAT THE WITHDRAWAL AND TRANSFER FOR THE  SALE  OF
 WATER  WILL NOT IMPAIR OR INTERFERE WITH ANOTHER WATER SOURCE, COMMUNITY
 PUBLIC WATER SUPPLY OR ANY OTHER PUBLIC OR PRIVATE WATER  WELL,  INFRAS-
 TRUCTURE,  WATERWORKS  SYSTEM  OR WITH THE WATER SERVICES AND THE PUBLIC
 HEALTH, SAFETY AND WELFARE.
   (IV) DETERMINATION THAT THE WITHDRAWAL, REMOVAL, TRANSFER AND THE SALE
 OF BOTTLED WATER IS IN COMPLIANCE WITH ALL OTHER FEDERAL,  STATE,  LOCAL
 LAW AND REGULATIONS; AND
   (V)  ISSUANCE  OF  LICENSE  AND PAYMENT OF A ROYALTY AS AUTHORIZED AND
 DETERMINED BY THE DEPARTMENT TO SELL BOTTLED WATER IN CONTAINERS WITH  A
 CAPACITY OF NOT MORE THAN 5.7 GALLONS, AS PROVIDED IN SECTION 15-3509 OF
 THIS TITLE.
   2. THE PROHIBITIONS UNDER THIS SECTION SHALL NOT APPLY TO A LAWFUL AND
 REASONABLE USE OF THE WATERS OF THE STATE IN CONNECTION WITH THE USE AND
 ENJOYMENT OF LAND BY AN OWNER OR OCCUPANT OR THEIR GUESTS, INCLUDING ANY
 LAWFULLY  RECOGNIZED TRADITIONAL AND ARTIFICIAL REASONABLE USES OF WATER
 SUCH AS AGRICULTURE, MANUFACTURING,  GENERATION  OF  ELECTRICITY  OR  AN
 INDUSTRIAL  USE OR PROCESS. EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN
 THIS TITLE, THE SALE OF WATER WITHDRAWN FROM THE  WATERS  OF  THE  STATE
 SHALL NOT BE A REASONABLE USE.
 § 15-3509. AUTHORIZED SALE OF WATER.
   1. THE DEPARTMENT IS HEREBY AUTHORIZED TO ISSUE A LICENSE TO WITHDRAW,
 TAKE,  REMOVE, AND/OR TRANSFER FROM THE WATERS OF THE STATE FOR THE SALE
 OF BOTTLED WATER WHERE THE SALE OF SUCH WATERS OF THE STATE SHALL BE  IN
 FULL COMPLIANCE WITH THIS TITLE.
   2.  THE  DEPARTMENT SHALL NOT ISSUE OR ENTER INTO ANY LICENSE OR OTHER
 AGREEMENT PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  FOR  WITHDRAWAL,
 TAKING, AND/OR TRANSFER OF THE WATERS OF THE STATE TO A PERSON OR ENTITY
 WHO  PROPOSES  TO  ENGAGE IN THE SALE OF BOTTLED WATER UNLESS ALL OF THE
 FOLLOWING CONDITIONS ARE MET:
   (A) SUCH PERSON OR ENTITY SUBMITS AN  APPLICATION  TO  THE  DEPARTMENT
 ALONG  WITH  PROPOSED PLANS FOR BOTTLED WATER FACILITY AND OPERATION, OR
 IF SUCH APPLICATION IS FOR THE CONTINUED OPERATION OF  A  BOTTLED  WATER
 FACILITY  AND OPERATION ALREADY EXISTING UPON THE EFFECTIVE DATE OF THIS
 SECTION, AN APPLICATION WITH A DESCRIPTION OF SUCH EXCITING OPERATIONS.
   (B) FOR THE LICENSING FOR THE SALE OF BOTTLED WATER FROM  A  MUNICIPAL
 OR  COMMUNITY  PUBLIC  WATERWORKS  OR  PUBLIC  WATER UTILITY SUPPLY, THE
 APPLICANT HAS SUBMITTED CERTIFIED PROOF THAT  THE  WATER  SOURCE  IS  IN
 COMPLIANCE  WITH ALL OTHER LEGAL REQUIREMENTS FROM THE LOCAL DEPARTMENT,
 BOARD OR LOCAL GOVERNMENT THAT OWNS AND OPERATES  THE  COMMUNITY  PUBLIC
 WATERWORKS OR PUBLIC WATER SYSTEM.
   (C)  BEFORE  APPROVAL  OF  SUCH  LICENSE, THE DEPARTMENT SHALL PROVIDE
 WRITTEN NOTICE OF THE APPLICATION OF SUCH LICENSE  WITH  CONDITIONS  AND
 S. 238                              5
 
 PROPOSED  ROYALTY FEES AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION,
 AT LEAST SIXTY DAYS PRIOR TO SUCH APPROVAL: TO ANY LOCAL UNIT OF GOVERN-
 MENT, ANY COMMUNITY OR  PUBLIC  WATERWORKS  OR  WATER  SUPPLY  DISTRICT,
 AUTHORITY OR DEPARTMENT, ANY RECOGNIZED TRIBAL SOVEREIGN GOVERNMENT, AND
 TO  THE APPLICANT; TO BE PUBLISHED IN A PROMINENT NEWSPAPER WITH GENERAL
 CIRCULATION IN THE LOCALE OF THE WATER SOURCE OR SUPPLY; AND TO BE POST-
 ED ON THE DEPARTMENT'S WEBSITE IN A CONSPICUOUS MANNER.  THE  DEPARTMENT
 MAY  ON  ITS  OWN  OR UPON REQUEST OF AN INTERESTED PERSON PROVIDE FOR A
 PUBLIC HEARING, WHICH SHALL BE GIVEN THE SAME PUBLIC NOTICE AS  PROVIDED
 IN  THIS PARAGRAPH.   SUCH PUBLIC NOTICE SHALL PROVIDE AT LEAST A FORTY-
 FIVE DAY COMMENT PERIOD BEFORE APPROVAL OF THE LICENSE. UPON REQUEST  OF
 A  LOCAL UNIT OF GOVERNMENT OR RECOGNIZED TRIBAL SOVEREIGN GOVERNMENT IN
 WHICH THE WATER SOURCE OR SUPPLY IS LOCATED, THE DEPARTMENT  SHALL  MEET
 AND  CONSULT  WITH  THE  LOCAL UNIT OF GOVERNMENT OR TRIBE NOT LESS THAN
 FIFTEEN DAYS BEFORE APPROVAL OF THE LICENSE.
   (D) BEFORE APPROVAL AND ISSUANCE OF THE LICENSE, THE DEPARTMENT  SHALL
 EVALUATE, ASSURE, AND DULY ESTABLISH THAT ALL OF THE FOLLOWING ARE MET:
   (I) THE APPLICANT HAS COMPLIED WITH THE PROVISIONS OF THIS TITLE;
   (II)  THE APPLICANT HAS SHOWN, BASED ON SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH AND ALL OTHER  AVAILABLE  INFORMATION,  INCLUDING  PUBLIC  NOTICE,
 HEARING,  PARTICIPATION  AND COMMENTS OR CONSULTATION WITH LOCAL GOVERN-
 MENT, SOVEREIGN TRIBES RECOGNIZED BY TREATY WITH THE FEDERAL  GOVERNMENT
 OR  OTHER INTERESTED PERSONS AS REQUIRED BY PARAGRAPH (D) OF THIS SUBDI-
 VISION, THAT THE WITHDRAWAL AND/OR TRANSFER OF THE WATERS OF  THE  STATE
 FOR  THE  SALE  OF BOTTLED WATER IS SUBSTANTIALLY IN THE PUBLIC INTEREST
 AND SHALL NOT IMPAIR THE PUBLIC TRUST AND  PUBLIC  HEALTH,  SAFETY,  AND
 WELFARE;
   (III) THE APPLICANT HAS COMPLIED WITH THE APPLICATION AND ROYALTY FEES
 REQUIRED BY SUBDIVISION THREE OF THIS SECTION;
   (IV)  ANY CONDITIONS THE DEPARTMENT SHALL HAVE REQUIRED IN THE LICENSE
 OR OTHER AGREEMENT FOR THE PROTECTION AND PROMOTION OF THE WATERS OF THE
 STATE, PUBLIC TRUST IN SUCH WATERS AND THE PUBLIC  HEALTH,  SAFETY,  AND
 WELFARE OF CITIZENS AND LOCAL COMMUNITY.
   3.  (A)  BEFORE PROCESSING AN APPLICATION FOR A LICENSE UNDER SUBDIVI-
 SION TWO OF THIS SECTION, AN APPLICANT SHALL PAY AN APPLICATION  FEE  OF
 FIVE  HUNDRED  DOLLARS  AND  A  FEE  OF FIVE THOUSAND DOLLARS OR MORE AS
 DETERMINED BY THE  DEPARTMENT  FOR  REIMBURSEMENT  OF  THE  DEPARTMENT'S
 EXPENSES FOR PROCESSING AND EVALUATING THE APPLICATION.
   (B)  AN  APPLICANT  SHALL PAY A ROYALTY FEE FOR THE RIGHT TO WITHDRAW,
 REMOVE AND/OR TRANSFER THE SOVEREIGN WATERS OF THE  STATE  OR  COMMUNITY
 PUBLIC  WATER  SUPPLY  FOR  PURPOSES  OF  THE  SALE  OF BOTTLED WATER AS
 FOLLOWS:
   (I) A LICENSEE SHALL PAY A ROYALTY FEE OF NOT  LESS  THAN  TWENTY-FIVE
 CENTS  PER  GALLON  FOR  THE RIGHT TO WITHDRAW, TAKE AND/OR TRANSFER THE
 WATERS OF THE STATE FOR THE SALE OF BOTTLED  WATER.  SUBJECT  TO  PUBLIC
 NOTICE,  HEARING  AND COMMENT AS PROVIDED FOR IN SUBDIVISION TWO OF THIS
 SECTION, THE DEPARTMENT MAY PROMULGATE A HIGHER FEE PER GALLON BASED  ON
 A  REASONABLE EVALUATION AND DETERMINATION OF FAIR AND ADEQUATE ECONOMIC
 VALUE FOR THE RIGHT OF SALE OF BOTTLED WATER  FROM  THE  WATERS  OF  THE
 STATE.
   (II)  THE  LICENSEE  OR THE COMMUNITY OR MUNICIPAL PUBLIC WATER SUPPLY
 DEPARTMENT OR LOCAL GOVERNMENT, AS THE CASE MAY BE, SHALL  FILE  ON  THE
 FIRST  DAY  OF  EACH  MONTH, BEGINNING THIRTY DAYS AFTER THE DATE OF THE
 LICENSE, A WRITTEN SUMMARY AND REPORT, WITH SUPPORTING DATA AND INFORMA-
 TION, THE TOTAL VOLUME OF WATER WITHDRAWN. THE LICENSEE  SHALL  PAY  THE
 ROYALTY FEE REQUIRED BY THIS SUBDIVISION ON A QUARTERLY BASIS, BEGINNING
 S. 238                              6

 WITH  THE  FIRST  DAY  OF  THE QUARTER OF THE YEAR AFTER THE DATE OF THE
 APPROVAL AND ISSUANCE OF THE LICENSE. THE DEPARTMENT MAY IMPOSE  A  LATE
 FEE ACCORDING TO A SCHEDULE OF FEES, PAYMENT, OR INTEREST ESTABLISHED BY
 THE DEPARTMENT PURSUANT TO RULES PROMULGATED BY THE DEPARTMENT.
   (C)  THE  DEPARTMENT SHALL DEPOSIT THE ROYALTY FEE COLLECTED FROM EACH
 LICENSEE INTO THE PUBLIC WATER  JUSTICE  FUND  IN  ACCORDANCE  WITH  ALL
 APPLICABLE LAWS AND REGULATIONS.
   (D)  THE  DEPARTMENT'S  EXPENSES,  INCLUDING  ALL  REASONABLE EXPENSES
 RELATED TO COLLECTION AND MANAGEMENT OF FEES UNDER THIS  SECTION,  SHALL
 BE  PAID  AND A NET ROYALTY FEE PAYMENT MADE TO THE PUBLIC WATER JUSTICE
 FUND ON A QUARTERLY BASIS, BEGINNING WITH THE THIRD  QUARTER  AFTER  THE
 EFFECTIVE  DATE OF THIS TITLE OR THE ISSUANCE OF THE FIRST LICENSE UNDER
 THIS TITLE, WHICHEVER OCCURS FIRST.
   (E) WHERE THE WATER IS FROM A WATER  SOURCE  OR  NON-COMMUNITY  SUPPLY
 THAT  IS FROM THE WATERS OF THE STATE, THE NET PROCEEDS FROM EACH LICEN-
 SEE SHALL BE DEPOSITED IN THE PUBLIC WATER JUSTICE FUND.
   (F) WHERE THE WATER IS FROM A COMMUNITY PUBLIC WATER SUPPLY OR  WATER-
 WORKS,  WHICH  WITHDRAWS  AND  DISTRIBUTES  THE WATERS OF THE STATE AS A
 PUBLIC SERVICE WITHIN ITS LAWFUL TERRITORY, THE NET PROCEEDS  FROM  EACH
 LICENSE  OR  OTHER  AGREEMENT  SHALL  BE  DEPOSITED  IN THE PUBLIC WATER
 JUSTICE FUND. FURTHER, THE DEPARTMENT SHALL ALLOCATE  AN  AMOUNT  UP  TO
 TWENTY-FIVE PERCENT OF THE NET PROCEEDS OF THE PUBLIC WATER JUSTICE FUND
 IN  ANY  CALENDAR  YEAR TO THE COMMUNITY PUBLIC WATER SUPPLY DEPARTMENT,
 DISTRICT OR AUTHORITY FROM WHICH THE WATER IS WITHDRAWN, TAKEN, DIVERTED
 AND/OR TRANSFERRED.
   (G) FOR THE PURPOSES OF THIS  SUBDIVISION,  THE  TERM  "NET  PROCEEDS"
 SHALL  MEAN  NET PROCEEDS FROM ROYALTIES UNDER THIS SECTION, MINUS COSTS
 AND EXPENSES.
   4. (A) IN ADDITION TO ALL OTHER REQUIREMENTS OF THIS TITLE,  A  PERSON
 OR  OTHER  ENTITY  SHALL  NOT BE PERMITTED TO WITHDRAW AND TRANSFER MORE
 THAN FIFTY THOUSAND GALLONS A DAY FOR  THE  SALE  OF  BOTTLED  WATER  AS
 SPRING WATER UNLESS IT IS ESTABLISHED BY THE APPLICANT AND DETERMINED BY
 THE DEPARTMENT THAT:
   (I)  THERE  IS  SUFFICIENT  EXISTING  ACTUAL DATA AND INFORMATION THAT
 CHARACTERIZES TO  THE  FULLEST  EXTENT  POSSIBLE  THE  HYDROLOGICAL  AND
 GEOLOGICAL  CONDITIONS  REQUIRED TO ACCURATELY MEASURE AND CALCULATE THE
 EFFECT ON THE FLOWS, LEVELS AND OTHER PHYSICAL CONDITIONS OF THE GROUND-
 WATER, SPRINGS, WETLANDS, CREEKS, STREAMS, LAKES OR PONDS  THAT  HAVE  A
 DIRECT HYDROLOGICAL CONNECTION TO THE SPRING WATER SOURCE; AND
   (II)  BASED  ON  THE  ACTUAL  DATA  AND  INFORMATION ESTABLISHED UNDER
 SUBPARAGRAPH (I) OF THIS  PARAGRAPH,  THE  WITHDRAWAL  AND  TRANSFER  OF
 SPRING  WATER  SHALL  NOT MEASURABLY DIMINISH AND IMPAIR THE FLOW, LEVEL
 AND OTHER PHYSICAL PARAMETERS OF THE WETLANDS, CREEKS, STREAMS, LAKES OR
 PONDS, FISH AND OTHER WILDLIFE AND PLANT HABITAT OR THE PUBLIC TRUST  IN
 SUCH FEATURES, WILDLIFE AND HABITAT.
   (B)  ANY DECISION OR DETERMINATION REQUIRED BY THIS SECTION SHALL TAKE
 INTO ACCOUNT AND BE CONDITIONED ON THE POTENTIAL FOR, OR OCCURRENCES OF,
 INCREASED INTENSITY AND FREQUENCY OF WEATHER EVENTS DUE  TO  CHANGES  IN
 CLIMATE.
 § 15-3511. USE OF PUBLIC WATER JUSTICE FUNDS.
   THE  DEPARTMENT  SHALL  DIRECT  THE ADMINISTRATION OF THE PUBLIC WATER
 JUSTICE FUND IN ACCORDANCE WITH  THE  PROVISIONS  OF  PARAGRAPH  (F)  OF
 SUBDIVISION  THREE  OF SECTION 15-3509 OF THIS TITLE AND SECTION NINETY-
 NINE-QQ OF THE STATE FINANCE LAW.   IN DIRECTING THE  ADMINISTRATION  OF
 SUCH  FUND,  THE  DEPARTMENT  SHALL  CONSULT  WITH ENVIRONMENTAL JUSTICE
 S. 238                              7

 GROUPS AND OTHER ENVIRONMENTAL JUSTICE EXPERTS AS DETERMINED APPROPRIATE
 BY THE DEPARTMENT.
 § 15-3513. RULE MAKING AUTHORITY.
   THE  DEPARTMENT  SHALL BE AUTHORIZED TO PROMULGATE ANY RULES AND REGU-
 LATIONS IT MAY DEEM NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS TITLE.
   § 4. The state finance law is amended by adding a new section 99-qq to
 read as follows:
   § 99-QQ. PUBLIC WATER JUSTICE FUND. 1. THERE IS HEREBY ESTABLISHED  IN
 THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA-
 TION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "PUBLIC WATER JUSTICE
 FUND".
   2.  SUCH  FUND  SHALL  CONSIST  OF ALL REVENUES RECEIVED BY THE STATE,
 PURSUANT TO THE PROVISIONS OF TITLE THIRTY-FIVE OF  ARTICLE  FIFTEEN  OF
 THE  ENVIRONMENTAL  CONSERVATION  LAW,  INCLUDING BUT NOT LIMITED TO ALL
 BONUSES, RENTALS, DELAYED RENTALS, ROYALTIES,  PENALTIES  OR  FINES  FOR
 NON-COMPLIANCE  COLLECTED  BY,  OR  RESERVED  BY,  THE  STATE  UNDER THE
 LICENSES FOR THE SALE OF BOTTLED  WATER  ESTABLISHED  PURSUANT  TO  SUCH
 TITLE.
   3.  (A)  THE  MONEYS  IN SUCH FUND SHALL BE EXPENDED FOR THE FOLLOWING
 PURPOSES:
   (I) ASSISTANCE  FOR  WATER  AFFORDABILITY  PLANS  OR  OTHER  MEASURES,
 INCLUDING  INCOME  AFFORDABILITY, ASSURED LOW-COST MINIMUM WATER USE AND
 CONSERVATION, INNOVATIVE PRICING, RATES, TIERS OF WATER USE AND  CONSER-
 VATION,  TO  ASSURE EQUITABLE AND AFFORDABLE ACCESS TO CLEAN, SAFE WATER
 AND SANITATION;
   (II) PROTECTION, CONSERVATION, EFFICIENCY, SUSTAINABILITY AND  CLEANUP
 TO ASSURE SAFE, CLEAN AND ADEQUATE GROUNDWATER AND SURFACE WATER SOURCES
 FOR  DRINKING  WATER  AND WATER SUPPLIES WITHIN THE STATE, INCLUDING BUT
 NOT LIMITED TO, NEW  TECHNOLOGIES,  GREEN  INFRASTRUCTURE  AND  ENHANCED
 RESILIENCY AND ADAPTABILITY TO PREDICT EXTREME WEATHER EVENTS OR CLIMAT-
 IC CHANGES;
   (III) PROTECTION OF PUBLIC HEALTH AND INDIVIDUAL HEALTH NEEDS DIRECTLY
 RELATED  TO  INVESTIGATION,  MEDICAL  EXAMINATION  AND WATER QUALITY AND
 MEDICAL MONITORING; AND
   (IV) REPAIR, IMPROVEMENT OR REPLACEMENT OF ANY LINE THAT IS DETERMINED
 TO BE A HEALTH RISK TO THOSE WHO OCCUPY ANY SINGLE OR MULTI-FAMILY RESI-
 DENTIAL DWELLING UNIT THAT CONNECTS TO THE PUBLIC WATER MAIN OR PIPELINE
 SYSTEM.
   (B) ANY INTERESTED MUNICIPAL PUBLIC WATER SUPPLY DEPARTMENT, DISTRICT,
 AUTHORITY, OR LOCAL GOVERNMENT, OR  ANY  PERSON  WHO  LIVES  WITHIN  THE
 TERRITORY OR IS SERVED BY A COMMUNITY PUBLIC WATER WORKS OR PUBLIC WATER
 UTILITY  MAY APPLY FOR A GRANT FOR ONE OR MORE OF THE DEDICATED PURPOSES
 OF THE PUBLIC WATER JUSTICE FUND UNDER THIS  SECTION.  THE  APPLICATION,
 PROCESS,  PUBLIC  NOTICE,  MEETINGS, AND DECISIONS SHALL BE PROCESSED BY
 THE DEPARTMENT. THE DEPARTMENT SHALL APPORTION AND ALLOCATE  THE  GRANTS
 OF  AVAILABLE  FUNDS  IN  ANY  GIVEN HEARING IN A FAIR AND PROPORTIONATE
 MANNER AMONG APPLICANTS THAT IN THE DISCRETION OF  THE  DEPARTMENT  BEST
 MEETS  THE INTENT AND DEDICATED PURPOSES OF TITLE THIRTY-FIVE OF ARTICLE
 FIFTEEN OF THE ENVIRONMENTAL CONSERVATION LAW AND  ANY  RULES  OR  REGU-
 LATIONS PROMULGATED THERETO; EXCEPT THAT THERE SHALL BE A PREFERENCE FOR
 UP  TO THIRTY PERCENT OF THE FUND DISTRIBUTED IN ANY YEAR FOR ASSISTANCE
 FOR AFFORDABILITY, DISADVANTAGED COMMUNITIES AND PUBLIC HEALTH.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 S. 238                              8
 
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.