CS/HB 1277 2024
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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; amending s. 2
180.19, F.S.; requiring certain public meetings as a 3
condition precedent to the effectiveness of a new or 4
extended agreement under which a municipality will 5
provide specified utility services in other 6
municipalities or unincorporated areas; specifying the 7
matters to be addressed in such public meetings; 8
requiring such agreements to be written; requiring 9
annual customer meetings; defining "governing body" 10
for specified purposes; limiting the portion of 11
certain utility revenues that a municipality may use 12
to fund or finance general government functions; 13
requiring municipalities that provide specified 14
utility services to report certain information by a 15
specified date to the Public Service Commission on an 16
annual basis; requiring the commission to compile 17
certain information and submit a report containing 18
such information to the Governor and the Legislature 19
by a specified date; providing construction; amending 20
s. 180.191, F.S.; revising provisions relating to 21
permissible rates, fees, and charges imposed by 22
municipal water and sewer utilities on customers 23
located outside the municipal boundaries; providing an 24
effective date. 25
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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
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Be It Enacted by the Legislature of the State of Florida: 27
28
Section 1. Section 180.19, Florida Statutes, is amended to 29
read: 30
180.19 Use by other municipalities and by individuals 31
outside corporate limits. — 32
(1) A municipality which const ructs any works as are 33
authorized by this chapter, may permit any other municipality 34
and the owners or association of owners of lots or lands outside 35
of its corporate limits or within the limits of any other 36
municipality, to connect with or use the utiliti es mentioned in 37
this chapter upon such terms and conditions as may be agreed 38
between such municipalities, and the owners or association of 39
owners of such outside lots or lands. 40
(2) Any private company or corporation organized to 41
accomplish the purposes s et forth in this chapter, which has 42
been granted a privilege or franchise by a municipality, may 43
permit the owners or association of owners of lots or lands 44
outside of the boundaries of said municipality granting said 45
privilege or franchise, or other munic ipality, to connect with 46
and use the utility operated by the said private company or 47
corporation upon such terms as may be agreed between the said 48
private company or corporation and the owners or association of 49
owners of said lots or lands or the said muni cipality. 50
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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
(3)(a) A new agreement, or an extension, renewal, or 51
material amendment of an existing agreement, to provide 52
electric, natural gas, water, or sewer utility service at retail 53
pursuant to subsection (1) must be written and may not become 54
effective before the municipality that provides service or 55
intends to provide the service, in conjunction with the 56
governing body of each municipality and unincorporated area 57
served or to be served, has conducted a public meeting within 58
each municipality and uninc orporated area served or to be served 59
for purposes of providing information and soliciting public 60
input on: 61
1. The nature of the service to be provided or changes to 62
the service being provided; 63
2. The rates, fees, and charges to be imposed for the 64
services provided or intended to be provided, including any 65
differential with the rates, fees, and charges imposed for the 66
same service on customers located within the boundaries of the 67
serving municipality, the basis for the differential, and the 68
length of time that the differential is expected to exist; 69
3. The extent to which revenues generated from the 70
provision of the service will be used to fund or finance non -71
utility government functions or services; and 72
4. Any other matters deemed relevant by the par ties to the 73
agreement. 74
(b) Rates, fees, and charges imposed for water or sewer 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
utility service provided pursuant to subsection (1) shall comply 76
with s. 180.191. 77
(c) Each municipality that provides electric, natural gas, 78
water, or sewer utility service pursuant to subsection (1), in 79
conjunction with the governing body of each municipality and 80
unincorporated area in which it provides service, must annually 81
conduct a customer meeting within each such municipality and 82
unincorporated area for purposes of sol iciting public input on 83
utility-related matters, including rates and service. 84
(d) For purposes of this subsection, "governing body" 85
refers to each: 86
1. Governing body of a municipality in which service is 87
provided or proposed to be extended. 88
2. Board of county commissioners of a county in which 89
service is provided or proposed to be extended, if service is 90
provided or will be extended in an unincorporated area within 91
the county. 92
(4) A municipality that generates revenue from the 93
provision of electric, natural gas, water, or sewer utility 94
service pursuant to subsection (1) may not use more than 10 95
percent of the gross revenues generated from such services to 96
fund or finance general government functions. 97
(5)(a) By November 1, 2024, and annual ly thereafter, each 98
municipality that provides electric, natural gas, water, or 99
sewer utility service pursuant to subsection (1) must provide a 100
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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
report to the Florida Public Service Commission that identifies, 101
for each type of utility service provided by th e municipality: 102
1. The number and percentage of customers that receive 103
utility service provided by the municipality at a location 104
outside the boundaries of the municipality; 105
2. The volume and percentage of sales made to such 106
customers, and the gross re venues generated from such sales; and 107
3. Whether the rates, fees, and charges imposed on 108
customers that receive service at a location outside the 109
municipality's boundaries are different than the rates, fees, 110
and charges imposed on customers within the bo undaries of the 111
municipality, and, if so, the amount and percentage of the 112
differential. 113
(b) The commission shall compile the information provided 114
pursuant to paragraph (a) and submit a report containing this 115
information to the Governor, the President of the Senate, and 116
the Speaker of the House of Representatives by January 31, 2025, 117
and annually thereafter. 118
(c) This subsection does not modify or extend the 119
authority of the commission otherwise provided by law with 120
respect to any municipal utility that is required to comply with 121
paragraph (a). 122
Section 2. Subsection (1) of section 180.191, Florida 123
Statutes, is amended to read: 124
180.191 Limitation on rates charged consumer outside city 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
limits.— 126
(1) Any municipality within the state operating a water or 127
sewer utility outside of the boundaries of such municipality 128
shall charge consumers outside the boundaries rates, fees, and 129
charges determined in one of the following manners: 130
(a) It may charge the same rates, fees, and charges as 131
consumers inside the municipal boundaries. However, in addition 132
thereto, the municipality may add a surcharge of not more than 133
25 percent of such rates, fees, and charges to consumers outside 134
the boundaries. Fixing of such rates, fees, and charges in this 135
manner shall not require a public hearing except as may be 136
provided for service to consumers inside the municipality. 137
(b)1. It may charge rates, fees, and charges that are just 138
and equitable and which are based on the same factors used in 139
fixing the rates, fees, and charge s for consumers inside the 140
municipal boundaries. In addition thereto, the municipality may 141
add a surcharge not to exceed 25 percent of such rates, fees, 142
and charges for said services to consumers outside the 143
boundaries. However, the total of all Such rates, fees, and 144
charges for the services to consumers outside the boundaries may 145
shall not exceed 25 be more than 50 percent in excess of the 146
total amount the municipality charges consumers served within 147
the municipality for corresponding service. No such rate s, fees, 148
and charges shall be fixed until after a public hearing at which 149
all of the users of the water or sewer systems; owners, tenants, 150
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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 occupants of property served or to be served thereby; and all 151
others interested shall have an opportunity to be he ard 152
concerning the proposed rates, fees, and charges. Any change or 153
revision of such rates, fees, or charges may be made in the same 154
manner as such rates, fees, or charges were originally 155
established, but if such change or revision is to be made 156
substantially pro rata as to all classes of service, both inside 157
and outside the municipality, no hearing or notice shall be 158
required. 159
2. Any municipality within the state operating a water or 160
sewer utility that provides service to consumers within the 161
boundaries of a separate municipality through the use of a water 162
treatment plant or sewer treatment plant located within the 163
boundaries of that separate municipality may charge consumers in 164
the separate municipality no more than the rates, fees, and 165
charges imposed on consumers inside its own municipal 166
boundaries. 167
Section 3. This act shall take effect July 1, 2025. 168