Requires the department of health to: (1) Establish by rule categories of annual operating permit fees;

(2) Use the fees to monitor and enforce compliance by group A public water systems with certain state and federal laws; and

(3) Phase-in implementation of any fee increase greater than ten percent.

Prohibits the per-connection fee from exceeding one dollar and fifty cents.

Requires rules established by the department of health before 2020 to limit the fee for any public water system to no greater than one hundred thousand dollars.