| 15 | | - | An act relating to municipal utilities; amending s. 2 |
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| 16 | | - | 166.201, F.S.; authorizing a municipality to fund or 3 |
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| 17 | | - | finance general government functions with a portion of 4 |
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| 18 | | - | revenues from utility operations; establishing limits 5 |
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| 19 | | - | on utility revenue transfers for municipal utilities; 6 |
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| 20 | | - | amending s. 180.191, F.S.; modifying provisions 7 |
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| 21 | | - | relating to permissible rates, fees, and charges 8 |
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| 22 | | - | imposed by municipal water and sewer utilities on 9 |
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| 23 | | - | customers located outside the municipal boundaries; 10 |
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| 24 | | - | providing an effective date. 11 |
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| 25 | | - | 12 |
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| 26 | | - | Be It Enacted by the Legislature of the State of Florida: 13 |
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| 27 | | - | 14 |
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| 28 | | - | Section 1. Section 166.201, Florida Statutes, is amended 15 |
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| 29 | | - | to read: 16 |
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| 30 | | - | 166.201 Taxes and charges. — 17 |
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| 31 | | - | (1) A municipality may raise, by taxation and licenses 18 |
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| 32 | | - | authorized by the constitution or general law, or by user 19 |
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| 33 | | - | charges or fees authorized by ordinance, amounts of money which 20 |
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| 34 | | - | are necessary for the conduct of municipal government and may 21 |
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| 35 | | - | enforce their receipt and c ollection in the manner prescribed by 22 |
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| 36 | | - | ordinance not inconsistent with law. 23 |
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| 37 | | - | (2)(a) A municipality that owns and operates an electric, 24 |
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| 38 | | - | natural gas, water, or wastewater utility may fund or finance 25 |
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| 15 | + | An act relating to municipal utilities; creating s. 2 |
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| 16 | + | 166.281, F.S.; authorizing a municipality to impose 3 |
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| 17 | + | and collect a surcharge on certain utility customers; 4 |
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| 18 | + | requiring that such surcharges be based on the 5 |
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| 19 | + | percentage of utility customers located outside the 6 |
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| 20 | + | municipal boundaries; prohibiting such surcharges from 7 |
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| 21 | + | exceeding a specified amount and from being used in an 8 |
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| 22 | + | manner substantially similar to the levy of a public 9 |
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| 23 | + | service tax; amending s. 366.02, F.S.; revising the 10 |
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| 24 | + | definition of the term "public utility" to include a 11 |
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| 25 | + | municipality supplying electricity or gas to any 12 |
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| 26 | + | retail customer receiving service at a physical 13 |
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| 27 | + | address located outside its corporate boundaries; 14 |
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| 28 | + | amending s. 366.04, F.S.; requiring certain 15 |
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| 29 | + | municipalities to be treated as public utilities; 16 |
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| 30 | + | requiring the Florida Public Service Commission to 17 |
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| 31 | + | adopt rules; amending s. 366.11, F.S.; conforming 18 |
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| 32 | + | provisions to changes made by the act; creating s. 19 |
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| 33 | + | 366.16, F.S.; authorizing a municipality to transfer a 20 |
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| 34 | + | portion of its public utility earnings to its gener al 21 |
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| 35 | + | fund for specified purposes; setting forth the 22 |
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| 36 | + | percentages of such transfers based on whether the 23 |
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| 37 | + | public utilities are supplied to customers located 24 |
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| 38 | + | within or outside the municipality; requiring that 25 |
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| 51 | | - | general government functions using a portion of the revenue s 26 |
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| 52 | | - | generated from rates, fees, and charges for the provision of 27 |
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| 53 | | - | such utility service. The portion of utility revenues that may 28 |
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| 54 | | - | be used during a fiscal year to fund or finance general 29 |
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| 55 | | - | government functions, after payment of all utility expenses, may 30 |
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| 56 | | - | not exceed: 31 |
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| 57 | | - | 1. For revenues generated from electric utility 32 |
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| 58 | | - | operations, a transfer rate equal to the amount derived by 33 |
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| 59 | | - | applying the average of the midpoints of the rates of return on 34 |
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| 60 | | - | equity approved by the Public Service Commission for each 35 |
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| 61 | | - | investor-owned electric utility in the state to the municipal 36 |
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| 62 | | - | electric utility's revenues. 37 |
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| 63 | | - | 2. For revenues generated from natural gas utility 38 |
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| 64 | | - | operations, a transfer rate equal to the amount derived by 39 |
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| 65 | | - | applying the average of the midpoints of the rates of return on 40 |
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| 66 | | - | equity approved by the Public Service Commission for each 41 |
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| 67 | | - | investor-owned natural gas utility in the state to the municipal 42 |
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| 68 | | - | natural gas utility's revenues. 43 |
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| 69 | | - | 3. For revenues generated from water or wastewater 44 |
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| 70 | | - | operations, a transfer rate equal to the amount derived by 45 |
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| 71 | | - | applying the rate of return on equity established by the Public 46 |
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| 72 | | - | Service Commission under s. 367.081(4)(f) to the revenues of the 47 |
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| 73 | | - | municipal water or wastewater utility. 48 |
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| 74 | | - | (b) Except as provided in paragraph (c), the transfer rate 49 |
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| 75 | | - | applied to municipal utilit y revenues under subparagraphs (a)1. -50 |
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| 51 | + | such percentages be established or reestablished by 26 |
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| 52 | + | local referendum, subject to majority vote; 27 |
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| 53 | + | prohibiting a municipality from transferring a portion 28 |
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| 54 | + | of its public utility earnings in certain instances; 29 |
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| 55 | + | prohibiting the ability of a municipality to receive 30 |
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| 56 | + | certain state funds if such a prohibited transfer is 31 |
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| 57 | + | effected; amending s. 367.022, F.S.; subjecting water 32 |
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| 58 | + | and wastewater utilities owned, operated, managed, 33 |
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| 59 | + | controlled, or provided by municipalities to 34 |
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| 60 | + | regulation by the commission; creating s. 367.192, 35 |
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| 61 | + | F.S.; authorizing a municipality that owns, operates, 36 |
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| 62 | + | manages, controls, or provides water or wastewater 37 |
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| 63 | + | utilities to transfer a portion of its earnings to its 38 |
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| 64 | + | general fund for specified purposes; setting forth the 39 |
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| 65 | + | percentages of such transfers based on whether the 40 |
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| 66 | + | public utilities are supplied to customers l ocated 41 |
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| 67 | + | within or outside the municipality; requiring that 42 |
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| 68 | + | such percentages be established or reestablished by 43 |
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| 69 | + | local referendum, subject to majority vote; 44 |
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| 70 | + | prohibiting a municipality from transferring a portion 45 |
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| 71 | + | of its water or wastewater utility earnings in certain 46 |
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| 72 | + | instances; prohibiting the ability of a municipality 47 |
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| 73 | + | to receive certain state funds if such a prohibited 48 |
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| 74 | + | transfer is effected; providing an effective date. 49 |
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| 75 | + | 50 |
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| 88 | | - | 3. shall be reduced as follows: 51 |
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| 89 | | - | 1. If more than 15 percent of a municipal utility's retail 52 |
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| 90 | | - | customers, as measured by total meters served, are located 53 |
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| 91 | | - | outside the municipal boundaries, the transfer rate applied to 54 |
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| 92 | | - | utility revenues shall be reduced by 150 basis points. 55 |
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| 93 | | - | 2. If more than 30 percent of a municipal utility's retail 56 |
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| 94 | | - | customers, as measured by total meters served, are located 57 |
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| 95 | | - | outside the municipal boundaries, the transfer rate applied to 58 |
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| 96 | | - | utility revenues shall be reduced by 300 basis points. 59 |
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| 97 | | - | 3. If more than 45 percent of a municipal utility's retail 60 |
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| 98 | | - | customers, as measured by total meters served, are located 61 |
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| 99 | | - | outside the municipal boundaries, the transfer rate applied to 62 |
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| 100 | | - | utility revenues shall be reduced by 450 basis points. 63 |
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| 101 | | - | (c) The reductions specified in paragraph (b) shall not 64 |
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| 102 | | - | apply to a municipal utility service if the utility service is 65 |
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| 103 | | - | governed by a utility authority board that, through the election 66 |
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| 104 | | - | of voting members from outside the municipal boundaries , 67 |
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| 105 | | - | provides for representation of retail customers located outside 68 |
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| 106 | | - | the municipal boundaries approximately proportionate to the 69 |
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| 107 | | - | percentage of such customers, as measured by total meters 70 |
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| 108 | | - | served, that receive service from the utility. 71 |
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| 109 | | - | Section 2. Subsection (1) of section 180.191, Florida 72 |
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| 110 | | - | Statutes, is amended to read: 73 |
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| 111 | | - | 180.191 Limitation on rates charged consumer outside city 74 |
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| 112 | | - | limits.— 75 |
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| 88 | + | Be It Enacted by the Legislature of the State of Florida: 51 |
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| 89 | + | 52 |
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| 90 | + | Section 1. Section 166.2 81, Florida Statutes, is created 53 |
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| 91 | + | to read: 54 |
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| 92 | + | 166.281 Surcharge on municipal utility customers located 55 |
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| 93 | + | outside municipal boundaries. - 56 |
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| 94 | + | (1) The governing authority of a municipality may impose 57 |
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| 95 | + | and collect a surcharge of up to 10 percent on municipal utility 58 |
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| 96 | + | customers located outside the municipal boundaries. 59 |
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| 97 | + | (2) A surcharge imposed and collected under this section 60 |
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| 98 | + | must be based on the percentage of municipal utility customers 61 |
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| 99 | + | located outside the municipal boundaries and may not exceed 10 62 |
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| 100 | + | percent. 63 |
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| 101 | + | (3) A municipal utility that imposes a surcharge 64 |
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| 102 | + | authorized by this section may not use the proceeds of such 65 |
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| 103 | + | surcharge in a manner that is substantially similar to the levy 66 |
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| 104 | + | of a public service tax by a municipality under s. 166.231. 67 |
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| 105 | + | Section 2. Subsection (8) o f section 366.02, Florida 68 |
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| 106 | + | Statutes, is amended to read: 69 |
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| 107 | + | 366.02 Definitions. —As used in this chapter: 70 |
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| 108 | + | (8) "Public utility" means every person, corporation, 71 |
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| 109 | + | partnership, association, or other legal entity and their 72 |
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| 110 | + | lessees, trustees, or receivers supplyi ng electricity or gas 73 |
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| 111 | + | (natural, manufactured, or similar gaseous substance) to or for 74 |
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| 112 | + | the public within this state; but the term "public utility" does 75 |
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| 125 | | - | (1) Any municipality within the state operating a water or 76 |
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| 126 | | - | sewer utility outside of the boundaries of such municipality 77 |
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| 127 | | - | shall charge consumers outside the boundaries rates, fees, and 78 |
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| 128 | | - | charges determined in one of the following manners: 79 |
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| 129 | | - | (a) It may charge the same rates, fees, and charges as 80 |
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| 130 | | - | consumers inside the municipal boundaries. However, in addition 81 |
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| 131 | | - | thereto, the municipal ity may add a surcharge of not more than 82 |
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| 132 | | - | 25 percent of such rates, fees, and charges to consumers outside 83 |
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| 133 | | - | the boundaries. Fixing of such rates, fees, and charges in this 84 |
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| 134 | | - | manner shall not require a public hearing except as may be 85 |
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| 135 | | - | provided for service to con sumers inside the municipality. 86 |
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| 136 | | - | (b)1. It may charge rates, fees, and charges that are just 87 |
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| 137 | | - | and equitable and which are based on the same factors used in 88 |
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| 138 | | - | fixing the rates, fees, and charges for consumers inside the 89 |
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| 139 | | - | municipal boundaries. In addition thereto, the municipality may 90 |
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| 140 | | - | add a surcharge not to exceed 25 percent of such rates, fees, 91 |
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| 141 | | - | and charges for said services to consumers outside the 92 |
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| 142 | | - | boundaries. However, the total of all Such rates, fees, and 93 |
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| 143 | | - | charges for the services to consumers outside the bound aries 94 |
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| 144 | | - | shall not be more than 25 50 percent greater than in excess of 95 |
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| 145 | | - | the total amount the municipality charges consumers served 96 |
|---|
| 146 | | - | within the municipality for corresponding service. No such 97 |
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| 147 | | - | rates, fees, and charges shall be fixed until after a public 98 |
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| 148 | | - | hearing at which all of the users of the water or sewer systems; 99 |
|---|
| 149 | | - | owners, tenants, or occupants of property served or to be served 100 |
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| 125 | + | not include either a cooperative now or hereafter organized and 76 |
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| 126 | + | existing under the Rural Electric Coopera tive Law of the state; 77 |
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| 127 | + | a municipality or any agency thereof , except for a municipality 78 |
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| 128 | + | or any agency thereof supplying electricity or gas (natural, 79 |
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| 129 | + | manufactured, or similar gaseous substance) to any retail 80 |
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| 130 | + | customer receiving service at a physical address l ocated outside 81 |
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| 131 | + | its corporate boundaries ; any dependent or independent special 82 |
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| 132 | + | natural gas district; any natural gas transmission pipeline 83 |
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| 133 | + | company making only sales or transportation delivery of natural 84 |
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| 134 | + | gas at wholesale and to direct industrial consumers; a ny entity 85 |
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| 135 | + | selling or arranging for sales of natural gas which neither owns 86 |
|---|
| 136 | + | nor operates natural gas transmission or distribution facilities 87 |
|---|
| 137 | + | within the state; or a person supplying liquefied petroleum gas, 88 |
|---|
| 138 | + | in either liquid or gaseous form, irrespective of t he method of 89 |
|---|
| 139 | + | distribution or delivery, or owning or operating facilities 90 |
|---|
| 140 | + | beyond the outlet of a meter through which natural gas is 91 |
|---|
| 141 | + | supplied for compression and delivery into motor vehicle fuel 92 |
|---|
| 142 | + | tanks or other transportation containers, unless such person 93 |
|---|
| 143 | + | also supplies electricity or manufactured or natural gas. 94 |
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| 144 | + | Section 3. Subsection (10) is added to section 366.04, 95 |
|---|
| 145 | + | Florida Statutes, to read: 96 |
|---|
| 146 | + | 366.04 Jurisdiction of commission. — 97 |
|---|
| 147 | + | (10) A municipality or an agency thereof supplying 98 |
|---|
| 148 | + | electricity or natural or manufactured gas, or similar gaseous 99 |
|---|
| 149 | + | substance, to any retail customer receiving service at a 100 |
|---|
| 162 | | - | thereby; and all others interested shall have an opportunity to 101 |
|---|
| 163 | | - | be heard concerning the proposed rates, fees, and charges. Any 102 |
|---|
| 164 | | - | change or revision of such rates, fees, or charges may be made 103 |
|---|
| 165 | | - | in the same manner as such rates, fees, or charges were 104 |
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| 166 | | - | originally established, but if such change or revision is to be 105 |
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| 167 | | - | made substantially pro rata as to all classes of service, both 106 |
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| 168 | | - | inside and outside the municipality, no hearing or notice shall 107 |
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| 169 | | - | be required. 108 |
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| 170 | | - | 2. Any municipality within the state operating a water or 109 |
|---|
| 171 | | - | sewer utility that provides service to consumers within the 110 |
|---|
| 172 | | - | boundaries of a separate municipality through the use of a water 111 |
|---|
| 173 | | - | treatment plant or sewer treatment plant located within the 112 |
|---|
| 174 | | - | boundaries of that separate municipality may charge consumers in 113 |
|---|
| 175 | | - | the separate municipality no more than the rates, fees, and 114 |
|---|
| 176 | | - | charges imposed on consumers inside its own municipal 115 |
|---|
| 177 | | - | boundaries. 116 |
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| 178 | | - | Section 3. This act shall take effect July 1, 2024. 117 |
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| 162 | + | physical address located outside its corporate boundaries 101 |
|---|
| 163 | + | qualifies as a public utility and shall be regulated under this 102 |
|---|
| 164 | + | chapter. The commission shall adopt r ules to implement this 103 |
|---|
| 165 | + | subsection. 104 |
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| 166 | + | Section 4. Subsection (1) of section 366.11, Florida 105 |
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| 167 | + | Statutes, is amended to read: 106 |
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| 168 | + | 366.11 Certain exemptions. — 107 |
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| 169 | + | (1) No provision of This chapter does not shall apply in 108 |
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| 170 | + | any manner, other than as specified in ss. 366.04, 366.05(7) and 109 |
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| 171 | + | (8), 366.051, 366.055, 366.093, 366.095, 366.14, 366.80 -366.83, 110 |
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| 172 | + | and 366.91, to utilities owned and operated by municipalities, 111 |
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| 173 | + | except those defined as public utilities in s. 366.02 whether 112 |
|---|
| 174 | + | within or without any municipality , or by cooperatives organized 113 |
|---|
| 175 | + | and existing under the Rural Electric Cooperative Law of the 114 |
|---|
| 176 | + | state, or to the sale of electricity, manufactured gas, or 115 |
|---|
| 177 | + | natural gas at wholesale by any public utility to, and the 116 |
|---|
| 178 | + | purchase by, any municipality or cooperative under and pursuant 117 |
|---|
| 179 | + | to any contracts now in effect or which may be entered into in 118 |
|---|
| 180 | + | the future, when such municipality or cooperative is engaged in 119 |
|---|
| 181 | + | the sale and distribution of electricity or manufactured or 120 |
|---|
| 182 | + | natural gas, or to the rates provided for in such contracts. 121 |
|---|
| 183 | + | Section 5. Section 366.16, Florida Statutes, is created to 122 |
|---|
| 184 | + | read: 123 |
|---|
| 185 | + | 366.16 Public utility earnings transfers by a 124 |
|---|
| 186 | + | municipality; percentage of transfers; prohibition. - 125 |
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| 187 | + | |
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| 188 | + | HB 1331 2023 |
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| 189 | + | |
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| 190 | + | |
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| 191 | + | |
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| 192 | + | CODING: Words stricken are deletions; words underlined are additions. |
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| 193 | + | hb1331-00 |
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| 194 | + | Page 6 of 9 |
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| 195 | + | 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 |
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| 196 | + | |
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| 197 | + | |
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| 198 | + | |
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| 199 | + | (1) A municipality or an agency thereof that is regulated 126 |
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| 200 | + | by this chapter pursuant to s. 366.04 may transfer a portion of 127 |
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| 201 | + | its public utility earnings to the general fund of the 128 |
|---|
| 202 | + | municipality for public utility purposes. 129 |
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| 203 | + | (2) If the public utilities are supplied to customers 130 |
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| 204 | + | located within the municipality, the percentage of transfers 131 |
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| 205 | + | authorized by subsection (1) shall be in a fixed amount. The 132 |
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| 206 | + | amount shall be: 133 |
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| 207 | + | (a) Stated as a percentage of the municipality's or 134 |
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| 208 | + | agency's general fund that may be supported by transfers; or 135 |
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| 209 | + | (b) Stated as a percentage of public utility revenues that 136 |
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| 210 | + | may be transferred. 137 |
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| 211 | + | (3) If the public utilities are supplied to customers 138 |
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| 212 | + | located outside the municipality, the percentage of transfers 139 |
|---|
| 213 | + | authorized by subsection (1) shall be in a variable amount. The 140 |
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| 214 | + | amount shall be based on the percentage of customers located 141 |
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| 215 | + | outside the municipal boundaries and shall decrease as the 142 |
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| 216 | + | percentage of customers located outside the municipal boundaries 143 |
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| 217 | + | increases. 144 |
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| 218 | + | (4) The amount of percentage of transfers authorized by 145 |
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| 219 | + | subsection (1) shall be established or reestablished by local 146 |
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| 220 | + | referendum, subject to majority vote of customers located within 147 |
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| 221 | + | and outside a municipality voting in the referendum. 148 |
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| 222 | + | (5) A municipality or an agency thereof that is regulated 149 |
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| 223 | + | by this chapter pursuan t to s. 366.04 may not transfer a portion 150 |
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| 224 | + | |
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| 225 | + | HB 1331 2023 |
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| 226 | + | |
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| 227 | + | |
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| 228 | + | |
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| 229 | + | CODING: Words stricken are deletions; words underlined are additions. |
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| 230 | + | hb1331-00 |
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| 231 | + | Page 7 of 9 |
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| 232 | + | 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 |
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| 233 | + | |
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| 234 | + | |
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| 235 | + | |
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| 236 | + | of its public utility earnings to the general fund of the 151 |
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| 237 | + | municipality or agency thereof for nonpublic utility purposes. A 152 |
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| 238 | + | municipality that transfers a portion of its public utility 153 |
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| 239 | + | earnings to the general fund of the municipality for nonpublic 154 |
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| 240 | + | utility purposes may not receive state funds for infrastructure 155 |
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| 241 | + | projects under chapter 216. 156 |
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| 242 | + | Section 6. Subsection (2) of section 367.022, Florida 157 |
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| 243 | + | Statutes, is amended to read: 158 |
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| 244 | + | 367.022 Exemptions. —The following are not subject to 159 |
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| 245 | + | regulation by the commission as a utility nor are they subject 160 |
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| 246 | + | to the provisions of this chapter, except as expressly provided: 161 |
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| 247 | + | (2) Systems owned, operated, managed, or controlled by 162 |
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| 248 | + | governmental authorities, including water or wastewater 163 |
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| 249 | + | facilities operated by private firms under water or wastewater 164 |
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| 250 | + | facility privatization contracts as defined in s. 153.91, and 165 |
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| 251 | + | nonprofit corporations formed for the purpose of acting on 166 |
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| 252 | + | behalf of a political subdivision with respect to a water or 167 |
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| 253 | + | wastewater facility, except for municipalities that own, 168 |
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| 254 | + | operate, manage, control, or provide water or wastewater 169 |
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| 255 | + | utilities. 170 |
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| 256 | + | Section 7. Section 367.192, Florida Statutes, is created 171 |
|---|
| 257 | + | to read: 172 |
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| 258 | + | 367.192 Water or wastewater utility earnings transfers by 173 |
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| 259 | + | a municipality; percentage of transfers; prohibition. - 174 |
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| 260 | + | (1) A municipality that owns, operates, manages, controls, 175 |
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| 261 | + | |
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| 262 | + | HB 1331 2023 |
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| 263 | + | |
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| 264 | + | |
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| 265 | + | |
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| 266 | + | CODING: Words stricken are deletions; words underlined are additions. |
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| 268 | + | Page 8 of 9 |
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| 269 | + | 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 |
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| 270 | + | |
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| 271 | + | |
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| 272 | + | |
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| 273 | + | or provides water or wastewater utilities may transfer a portion 176 |
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| 274 | + | of its water or wastewater utility earnings to the general fund 177 |
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| 275 | + | of the municipality for wat er or wastewater utility purposes. 178 |
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| 276 | + | (2) If the water or wastewater utilities are supplied to 179 |
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| 277 | + | customers located within the municipality, the percentage of 180 |
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| 278 | + | transfers authorized by subsection (1) shall be in a fixed 181 |
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| 279 | + | amount. The amount shall be: 182 |
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| 280 | + | (a) Stated as a percentage of the municipality's general 183 |
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| 281 | + | fund that may be supported by transfers; or 184 |
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| 282 | + | (b) Stated as a percentage of public utility revenues that 185 |
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| 283 | + | may be transferred. 186 |
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| 284 | + | (3) If the water or wastewater utilities are supplied to 187 |
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| 285 | + | customers located outside the municipality, the percentage of 188 |
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| 286 | + | transfers authorized by subsection (1) shall be in a variable 189 |
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| 287 | + | amount. The amount shall be based on the percentage of customers 190 |
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| 288 | + | located outside the municipal boundaries and shall decrease as 191 |
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| 289 | + | the percentage of customers l ocated outside the municipal 192 |
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| 290 | + | boundaries increases. 193 |
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| 291 | + | (4) The amount of percentage of transfers authorized by 194 |
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| 292 | + | subsection (1) shall be established or reestablished by local 195 |
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| 293 | + | referendum, subject to majority vote of customers located within 196 |
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| 294 | + | and outside the municipality voting in the referendum. 197 |
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| 295 | + | (5) A municipality that owns, operates, manages, controls, 198 |
|---|
| 296 | + | or provides water or wastewater utilities may not transfer a 199 |
|---|
| 297 | + | portion of its public utility earnings to the general fund of 200 |
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| 298 | + | |
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| 299 | + | HB 1331 2023 |
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| 300 | + | |
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| 301 | + | |
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| 302 | + | |
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| 303 | + | CODING: Words stricken are deletions; words underlined are additions. |
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| 305 | + | Page 9 of 9 |
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| 306 | + | 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 |
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| 307 | + | |
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| 308 | + | |
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| 309 | + | |
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| 310 | + | such municipality for purposes not related to water or 201 |
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| 311 | + | wastewater utilities. A municipality that transfers a portion of 202 |
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| 312 | + | the public utility earnings to the general fund of the 203 |
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| 313 | + | municipality for purposes not related to water or wastewater 204 |
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| 314 | + | utilities may not receive state funds for water -related projects 205 |
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| 315 | + | under chapter 373 or chapter 403. 206 |
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| 316 | + | Section 8. This act shall take effect July 1, 2023. 207 |
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