An Act concerning public water supply systems; amending K.S.A. 65-163c and K.S.A. 1995 Supp. 65-163, 65-163d and 65-163u and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1995 Supp. 65-163 is hereby amended to read as follows: 65-163. (a) (1) No person shall operate a public water supply system within the state without a public water supply system permit from the secretary. An application for a public water supply system permit shall be submitted for review and approval prior to construction and shall in- clude: (A) A copy of the plans and specifications for the construction of the public water supply system or the extension thereof; (B) a description of the source from which the water supply is to be derived; (C) the pro- posed manner of storage, purification or treatment for the supply; and (D) such other data and information as required by the secretary of health and environment. No source of water supply in substitution for or in addition to the source described in the application or in any subsequent application for which a public water supply system permit is issued shall be used by a public water supply system, nor shall any change be made in the manner of storage, purification or treatment of the water supply without an additional public water supply system permit obtained in a manner similar to that prescribed by this section from the secretary.

(2) Whenever application is made to the secretary for a public water supply system permit under the provisions of this section, it shall be the duty of the secretary to examine the application without delay and, as soon as possible thereafter, to grant or deny the public water supply sys- tem permit subject to any conditions which may be imposed by the sec- retary to protect the public health and welfare.

(3) The secretary may adopt rules and regulations establishing a pro- gram of annual certification by public water supply systems that have staff qualified to approve the extension of distribution systems without the necessity of securing an additional permit for the extension provided the plans for the extension are prepared by a professional engineer as defined by K.S.A. 74-7003, and amendments thereto.

(b) (1) Whenever a complaint is made to the secretary by any city of the state, by a local health officer, or by a county or joint board of health concerning the sanitary quality of any water supplied to the public within the county in which the city, local health officer or county or joint board of health is located, the secretary shall investigate the public water supply system about which the complaint is made. Whenever the secretary has reason to believe that a public water supply system within the state is being operated in violation of an applicable state law or an applicable rule and regulation of the secretary, the secretary may investigate the public water supply system.

(2) Whenever an investigation of any public water supply system is undertaken by the secretary, it shall be the duty of the supplier of water under investigation to furnish to the secretary information to determine the sanitary quality of the water supplied to the public and to determine compliance with applicable state laws and rules and regulations. The sec- retary may issue an order requiring changes in the source or sources of the public water supply system or in the manner of storage, purification or treatment utilized by the public water supply system before delivery to consumers, or distribution facilities, collectively or individually, as may in the secretary's judgment be necessary to safeguard the sanitary quality of the water and bring about compliance with applicable state law and rules and regulations. The supplier of water shall comply with the order of the secretary.

(c) (1) As used in this subsection (c), ``municipal water treatment residues'' means any solid, semisolid or liquid residue generated during the treatment of water in a public water supply system treatment works.

(2) A public water supply system may place or store municipal water treatment residues resulting from sedimentation, coagulation or softening treatment processes in basins on land under the ownership and control of the public water supply system operator provided that such storage or placement is approved and permitted by the secretary under this section as part of the public water supply system.

(3) The secretary shall adopt uniform and comprehensive rules and regulations for the location, design and operation of such basins. Such rules and regulations shall require permit applications by the public water suppliers for such basins to include a copy of the plans and specifications for the location and construction of each basin, the means of conveyance of the treatment residues to such basins, the content of treatment resi- dues, the proposed method of basin operation and closure, the method of any anticipated expansion and any other data and information required by the secretary.

(4) Whenever complaint is made to the secretary by the mayor of any city of the state, by a local health officer or by a county or joint board of health, or whenever an investigation is undertaken at the initiative of the secretary, relating to any alleged violation of the provisions of the permit for placement or storage of municipal water treatment residues in such basins, the public water supply system operator shall furnish all infor- mation the secretary requires. If the secretary finds that there is any violation of the terms of the permit, that the means of placement and storage exceed the terms of the permit or that any other condition exists by reason of the means of placement and storage that may be detrimental to the health of any inhabitants of the state or to the environment, the secretary shall have the authority to issue an order amending the permit or otherwise requiring the operator to perform remedial measures to curtail or prevent such detrimental conditions.

(d) Any action of the secretary pursuant to this section is subject to review in accordance with the act for judicial review and civil enforcement of agency actions. The court on review shall hear the case without delay.

(e) The secretary shall establish by rule and regulation a system of fees for the inspection and regulation of public water supplies. No such fee shall exceed $.002 per 1,000 gallons of water sold at retail by a public water supply system. All such fees shall be paid quarterly in the manner provided for fees imposed on retail sales by public water supply systems pursuant to K.S.A. 82a-954 and amendments thereto. The secretary shall remit to the state treasurer all moneys collected for such fees. Upon receipt thereof, the state treasurer shall deposit the entire amount in the state treasury and credit it to the public water supply fee fund created by K.S.A. 65-163c and amendments thereto.

(f) There is hereby created an advisory committee to make recom- mendations regarding fees to be adopted by the secretary under subsec- tion (e) and to advise the secretary regarding expenditure of moneys in the public water supply fee fund created by K.S.A. 65-163c and amend- ments thereto. Such advisory committee shall consist of one member appointed by the secretary to represent the department of health and environment, one member appointed by the director of the Kansas water office to represent such office and two members appointed by the sec- retary as follows: One from three nominations submitted by the Kansas section of the American waterworks association, and one from three nom- inations submitted by the Kansas rural water association. Members of the advisory committee shall serve without compensation or reimbursement of expenses.

(f) There is hereby created an advisory committee to make recom- mendations regarding: (1) Fees to be adopted by the secretary under sub- section (e); (2) means of strengthening on-site technical assistance to pub- lic water supply systems; (3) standards for on-site and classroom water treatment operator certification programs; (4) other matters concerning public water supplies; and (5) to advise the secretary regarding expend- iture of moneys in the public water supply fee fund created by K.S.A. 65- 163c and amendments thereto. Such advisory committee shall consist of one member appointed by the secretary to represent the department of health and environment, one member appointed by the director of the Kansas water office to represent such office and two members appointed by the secretary as follows: One from three nominations submitted by the Kansas section of the American waterworks association, and one from three nominations submitted by the Kansas rural water association. Mem- bers of the advisory committee shall serve without compensation or re- imbursement of expenses. The advisory committee shall meet at least four times each year on call of the secretary or a majority of the members of the committee.

Sec. 2. K.S.A. 65-163c is hereby amended to read as follows: 65- 163c. (a) There is hereby established in the state treasury the public water supply fee fund. Revenue from the following sources shall be de- posited in the state treasury and credited to the fund:

(1) Fees collected under K.S.A. 65-163 and amendments thereto; and

(2) interest attributable to investment of moneys in the fund.

(b) Moneys deposited in the public water supply fee fund shall be expended only to: (1) Inspect and regulate public water supplies; and to (2) provide training, assistance and technical guidance to public water supply systems, including on-site technical assistance by the department or by a contractor contracting with the department in complying with the federal safe drinking water act (42 U.S.C. 300f et seq.) and regulations adopted under such act. The advisory committee established by K.S.A. 65-163 and amendments thereto shall advise the secretary regarding ex- penditures from the fund.

(c) On or before the 10th day of each month, the director of accounts and reports shall transfer from the state general fund to the public water supply fee fund the amount of money certified by the pooled money investment board in accordance with this subsection. Prior to the 10th day of each month, the pooled money investment board shall certify to the director of accounts and reports the amount of money equal to the proportionate amount of all the interest credited to the state general fund for the preceding month, pursuant to K.S.A. 75-4210a and amendments thereto, that is attributable to moneys in the public water supply fee fund. Such amount of money shall be determined by the pooled money in- vestment board based on: (1) The average daily balance of moneys in the public water supply fee fund during the preceding month as certified to the board by the director of accounts and reports and (2) the average interest rate on repurchase agreements of less than 30 days' duration entered into by the pooled money investment board for that period. On or before the fifth day of each month, the director of accounts and reports shall certify to the pooled money investment board the average daily bal- ance of moneys in the public water supply fee fund during the preceding month.

(d) All expenditures from the public water supply fee fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of health and environment for the purposes set forth in this section.

Sec. 3. K.S.A. 1995 Supp. 65-163d is hereby amended to read as follows: 65-163d. As used in K.S.A. 1995 Supp. 65-163d through 65-163u and amendments thereto:

(a) ``Fund'' means the public water supply loan fund established by K.S.A. 1995 Supp. 65-163e and amendments thereto.

(b) ``Municipality'' means: (1) Any political or taxing subdivision au- thorized by law to construct, operate and maintain a public water supply system, including water districts; or (2) two or more such subdivisions jointly constructing, operating or maintaining a public water supply sys- tem.

(c) ``Project'' means any acquisition, construction, reconstruction, im- provement, equipping, rehabilitation or extension of all or any part of a public water supply system which the secretary determines to be primarily for the purpose of compliance with the federal safe drinking water act (42 U.S.C. 300f et seq.) or regulations adopted under such act. ``Project'' does not include any project related to the diversion or transportation of water acquired through a water transfer, as defined by K.S.A. 82a-1501 and amendments thereto.

(d) ``Project costs'' means all costs or expenses which are necessary or incident to a project and which are directly attributable thereto.

(e) ``Public water supply system'' has the meaning provided by K.S.A. 65-162a and amendments thereto.

(f) ``Secretary'' means the secretary of health and environment.

Sec. 4. K.S.A. 1995 Supp. 65-163u is hereby amended to read as follows: 65-163u. (a) A municipality may issue general obligation bonds for the purpose of paying all or part of any project costs of a public water supply system operated by such municipality. Such bonds shall be issued, registered, sold, delivered and retired in accordance with the general bond law.

(b) Notwithstanding any other provision of law to the contrary, no election shall be required for the issuance of general obligation bonds or revenue bonds by a municipality for the purpose of paying all or part of any project costs of a public water supply system operated by such mu- nicipality and. Such general obligation bonds shall not be subject to or within any bonded debt limitation provided by law.

Sec. 5. K.S.A. 65-163c and K.S.A. 1995 Supp. 65-163, 65-163d and 65-163u are hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its publication in the statute book.

Approved April 10, 1996.