HB 1331 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to municipal utilities; creating s. 2
166.281, F.S.; authorizing a municipality to impose 3
and collect a surcharge on certain utility customers; 4
requiring that such surcharges be based on the 5
percentage of utility customers located outside the 6
municipal boundaries; prohibiting such surcharges from 7
exceeding a specified amount and from being used in an 8
manner substantially similar to the levy of a public 9
service tax; amending s. 366.02, F.S.; revising the 10
definition of the term "public utility" to include a 11
municipality supplying electricity or gas to any 12
retail customer receiving service at a physical 13
address located outside its corporate boundaries; 14
amending s. 366.04, F.S.; requiring certain 15
municipalities to be treated as public utilities; 16
requiring the Florida Public Service Commission to 17
adopt rules; amending s. 366.11, F.S.; conforming 18
provisions to changes made by the act; creating s. 19
366.16, F.S.; authorizing a municipality to transfer a 20
portion of its public utility earnings to its gener al 21
fund for specified purposes; setting forth the 22
percentages of such transfers based on whether the 23
public utilities are supplied to customers located 24
within or outside the municipality; requiring that 25
HB 1331 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
such percentages be established or reestablished by 26
local referendum, subject to majority vote; 27
prohibiting a municipality from transferring a portion 28
of its public utility earnings in certain instances; 29
prohibiting the ability of a municipality to receive 30
certain state funds if such a prohibited transfer is 31
effected; amending s. 367.022, F.S.; subjecting water 32
and wastewater utilities owned, operated, managed, 33
controlled, or provided by municipalities to 34
regulation by the commission; creating s. 367.192, 35
F.S.; authorizing a municipality that owns, operates, 36
manages, controls, or provides water or wastewater 37
utilities to transfer a portion of its earnings to its 38
general fund for specified purposes; setting forth the 39
percentages of such transfers based on whether the 40
public utilities are supplied to customers l ocated 41
within or outside the municipality; requiring that 42
such percentages be established or reestablished by 43
local referendum, subject to majority vote; 44
prohibiting a municipality from transferring a portion 45
of its water or wastewater utility earnings in certain 46
instances; prohibiting the ability of a municipality 47
to receive certain state funds if such a prohibited 48
transfer is effected; providing an effective date. 49
50
HB 1331 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Be It Enacted by the Legislature of the State of Florida: 51
52
Section 1. Section 166.2 81, Florida Statutes, is created 53
to read: 54
166.281 Surcharge on municipal utility customers located 55
outside municipal boundaries. - 56
(1) The governing authority of a municipality may impose 57
and collect a surcharge of up to 10 percent on municipal utility 58
customers located outside the municipal boundaries. 59
(2) A surcharge imposed and collected under this section 60
must be based on the percentage of municipal utility customers 61
located outside the municipal boundaries and may not exceed 10 62
percent. 63
(3) A municipal utility that imposes a surcharge 64
authorized by this section may not use the proceeds of such 65
surcharge in a manner that is substantially similar to the levy 66
of a public service tax by a municipality under s. 166.231. 67
Section 2. Subsection (8) o f section 366.02, Florida 68
Statutes, is amended to read: 69
366.02 Definitions. —As used in this chapter: 70
(8) "Public utility" means every person, corporation, 71
partnership, association, or other legal entity and their 72
lessees, trustees, or receivers supplyi ng electricity or gas 73
(natural, manufactured, or similar gaseous substance) to or for 74
the public within this state; but the term "public utility" does 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
not include either a cooperative now or hereafter organized and 76
existing under the Rural Electric Coopera tive Law of the state; 77
a municipality or any agency thereof , except for a municipality 78
or any agency thereof supplying electricity or gas (natural, 79
manufactured, or similar gaseous substance) to any retail 80
customer receiving service at a physical address l ocated outside 81
its corporate boundaries ; any dependent or independent special 82
natural gas district; any natural gas transmission pipeline 83
company making only sales or transportation delivery of natural 84
gas at wholesale and to direct industrial consumers; a ny entity 85
selling or arranging for sales of natural gas which neither owns 86
nor operates natural gas transmission or distribution facilities 87
within the state; or a person supplying liquefied petroleum gas, 88
in either liquid or gaseous form, irrespective of t he method of 89
distribution or delivery, or owning or operating facilities 90
beyond the outlet of a meter through which natural gas is 91
supplied for compression and delivery into motor vehicle fuel 92
tanks or other transportation containers, unless such person 93
also supplies electricity or manufactured or natural gas. 94
Section 3. Subsection (10) is added to section 366.04, 95
Florida Statutes, to read: 96
366.04 Jurisdiction of commission. — 97
(10) A municipality or an agency thereof supplying 98
electricity or natural or manufactured gas, or similar gaseous 99
substance, to any retail customer receiving service at a 100
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physical address located outside its corporate boundaries 101
qualifies as a public utility and shall be regulated under this 102
chapter. The commission shall adopt r ules to implement this 103
subsection. 104
Section 4. Subsection (1) of section 366.11, Florida 105
Statutes, is amended to read: 106
366.11 Certain exemptions. — 107
(1) No provision of This chapter does not shall apply in 108
any manner, other than as specified in ss. 366.04, 366.05(7) and 109
(8), 366.051, 366.055, 366.093, 366.095, 366.14, 366.80 -366.83, 110
and 366.91, to utilities owned and operated by municipalities, 111
except those defined as public utilities in s. 366.02 whether 112
within or without any municipality , or by cooperatives organized 113
and existing under the Rural Electric Cooperative Law of the 114
state, or to the sale of electricity, manufactured gas, or 115
natural gas at wholesale by any public utility to, and the 116
purchase by, any municipality or cooperative under and pursuant 117
to any contracts now in effect or which may be entered into in 118
the future, when such municipality or cooperative is engaged in 119
the sale and distribution of electricity or manufactured or 120
natural gas, or to the rates provided for in such contracts. 121
Section 5. Section 366.16, Florida Statutes, is created to 122
read: 123
366.16 Public utility earnings transfers by a 124
municipality; percentage of transfers; prohibition. - 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(1) A municipality or an agency thereof that is regulated 126
by this chapter pursuant to s. 366.04 may transfer a portion of 127
its public utility earnings to the general fund of the 128
municipality for public utility purposes. 129
(2) If the public utilities are supplied to customers 130
located within the municipality, the percentage of transfers 131
authorized by subsection (1) shall be in a fixed amount. The 132
amount shall be: 133
(a) Stated as a percentage of the municipality's or 134
agency's general fund that may be supported by transfers; or 135
(b) Stated as a percentage of public utility revenues that 136
may be transferred. 137
(3) If the public utilities are supplied to customers 138
located outside the municipality, the percentage of transfers 139
authorized by subsection (1) shall be in a variable amount. The 140
amount shall be based on the percentage of customers located 141
outside the municipal boundaries and shall decrease as the 142
percentage of customers located outside the municipal boundaries 143
increases. 144
(4) The amount of percentage of transfers authorized by 145
subsection (1) shall be established or reestablished by local 146
referendum, subject to majority vote of customers located within 147
and outside a municipality voting in the referendum. 148
(5) A municipality or an agency thereof that is regulated 149
by this chapter pursuan t to s. 366.04 may not transfer a portion 150
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of its public utility earnings to the general fund of the 151
municipality or agency thereof for nonpublic utility purposes. A 152
municipality that transfers a portion of its public utility 153
earnings to the general fund of the municipality for nonpublic 154
utility purposes may not receive state funds for infrastructure 155
projects under chapter 216. 156
Section 6. Subsection (2) of section 367.022, Florida 157
Statutes, is amended to read: 158
367.022 Exemptions. —The following are not subject to 159
regulation by the commission as a utility nor are they subject 160
to the provisions of this chapter, except as expressly provided: 161
(2) Systems owned, operated, managed, or controlled by 162
governmental authorities, including water or wastewater 163
facilities operated by private firms under water or wastewater 164
facility privatization contracts as defined in s. 153.91, and 165
nonprofit corporations formed for the purpose of acting on 166
behalf of a political subdivision with respect to a water or 167
wastewater facility, except for municipalities that own, 168
operate, manage, control, or provide water or wastewater 169
utilities. 170
Section 7. Section 367.192, Florida Statutes, is created 171
to read: 172
367.192 Water or wastewater utility earnings transfers by 173
a municipality; percentage of transfers; prohibition. - 174
(1) A municipality that owns, operates, manages, controls, 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
or provides water or wastewater utilities may transfer a portion 176
of its water or wastewater utility earnings to the general fund 177
of the municipality for wat er or wastewater utility purposes. 178
(2) If the water or wastewater utilities are supplied to 179
customers located within the municipality, the percentage of 180
transfers authorized by subsection (1) shall be in a fixed 181
amount. The amount shall be: 182
(a) Stated as a percentage of the municipality's general 183
fund that may be supported by transfers; or 184
(b) Stated as a percentage of public utility revenues that 185
may be transferred. 186
(3) If the water or wastewater utilities are supplied to 187
customers located outside the municipality, the percentage of 188
transfers authorized by subsection (1) shall be in a variable 189
amount. The amount shall be based on the percentage of customers 190
located outside the municipal boundaries and shall decrease as 191
the percentage of customers l ocated outside the municipal 192
boundaries increases. 193
(4) The amount of percentage of transfers authorized by 194
subsection (1) shall be established or reestablished by local 195
referendum, subject to majority vote of customers located within 196
and outside the municipality voting in the referendum. 197
(5) A municipality that owns, operates, manages, controls, 198
or provides water or wastewater utilities may not transfer a 199
portion of its public utility earnings to the general fund of 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
such municipality for purposes not related to water or 201
wastewater utilities. A municipality that transfers a portion of 202
the public utility earnings to the general fund of the 203
municipality for purposes not related to water or wastewater 204
utilities may not receive state funds for water -related projects 205
under chapter 373 or chapter 403. 206
Section 8. This act shall take effect July 1, 2023. 207