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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 public customer meetings; defining the terms 10
"appointed representative" and "governing body" for 11
specified purposes; limiting the portion of certain 12
utility revenues that a municipality may use to fund 13
or finance general government functions; requiring 14
excess revenues to be reinvested into the municipal 15
utility or returned to customers; requiring 16
municipalities that provide specified utility services 17
to report certain information by a specified date to 18
the Public Service Commission on an annual basis; 19
requiring the commission to compile certain 20
information and submit a report containing such 21
information to the Governor and the Legislature by a 22
specified date; providing construction; amending s. 23
180.191, F.S.; revising provisions relating to 24
permissible rates, fees, and charges imposed by 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
municipal water and sewer utilities on customers 26
located outside the municipal boundaries; providing an 27
effective date. 28
29
Be It Enacted by the Legislature of the State of Florida: 30
31
Section 1. Section 180.19, Florida Statutes, is amended to 32
read: 33
180.19 Use by other municipalities and by individuals 34
outside corporate limits.— 35
(1) A municipality which constructs any works as are 36
authorized by this chapter, may permit any other municipality 37
and the owners or association of owners of lots or lands outside 38
of its corporate limits or within the limits of any other 39
municipality, to connect with or use the utilities mentioned in 40
this chapter upon such terms and conditions as may be agreed 41
between such municipalities, and the owners or association of 42
owners of such outside lots or lands. 43
(2) Any private company or corp oration organized to 44
accomplish the purposes set forth in this chapter, which has 45
been granted a privilege or franchise by a municipality, may 46
permit the owners or association of owners of lots or lands 47
outside of the boundaries of said municipality granti ng said 48
privilege or franchise, or other municipality, to connect with 49
and use the utility operated by the said private company or 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
corporation upon such terms as may be agreed between the said 51
private company or corporation and the owners or association of 52
owners of said lots or lands or the said municipality. 53
(3)(a) A new agreement, or an extension, renewal, or 54
material amendment of an existing agreement, to provide 55
electric, natural gas, water, or sewer utility service at retail 56
pursuant to subsection ( 1) must be written and may not become 57
effective before an appointed representative of the municipality 58
that provides service or intends to provide the service, in 59
conjunction with the governing body of each municipality and 60
unincorporated area served or to be served, has participated in 61
a public meeting, which is not required to be a separate public 62
meeting, within each municipality and unincorporated area served 63
or to be served for purposes of providing information and 64
soliciting public input on: 65
1. The nature of the service to be provided or changes to 66
the service being provided; 67
2. The rates, fees, and charges to be imposed for the 68
services provided or intended to be provided, including any 69
differential with the rates, fees, and charges imposed for th e 70
same service on customers located within the boundaries of the 71
serving municipality, the basis for the differential, and the 72
length of time that the differential is expected to exist; 73
3. The extent to which revenues generated from the 74
provision of the service will be used to fund or finance non -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 government functions or services; and 76
4. Any other matters deemed relevant by the parties to the 77
agreement. 78
(b) Rates, fees, and charges imposed for water or sewer 79
utility service provided pursuant to subsection (1) shall comply 80
with s. 180.191. 81
(c) A representative of each municipality that provides 82
electric, natural gas, water, or sewer utility service pursuant 83
to subsection (1), in conjunction with the governing body of 84
each municipality and uninc orporated area in which it provides 85
service, must annually conduct a public customer meeting, which 86
is not required to be a separate public meeting, within each 87
such municipality and unincorporated area for purposes of 88
soliciting public input on utility -related matters, including 89
rates and service. 90
(d) For purposes of this subsection, the term: 91
1. "Appointed representative" means an executive level 92
leadership employee of a municipality, or such municipality's 93
related and separate utility authority, boar d, or commission, 94
specifically appointed by the governing body to serve as its 95
representative for purposes of this subsection. 96
2. "Governing body" means a: 97
a. Governing body of a municipality in which service is 98
provided or proposed to be extended. 99
b. Board of county commissioners of a county in which 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
service is provided or proposed to be extended, if service is 101
provided or will be extended in an unincorporated area within 102
the county. 103
(4) A municipality that generates revenue from the 104
provision of electric, natural gas, water, or sewer utility 105
service to locations beyond its corporate limits may not use 106
more than 10 percent of the gross revenues generated from such 107
services to fund or finance general government functions. After 108
the transfer of such revenues to fund or finance general 109
government functions, if any revenues from such service remain 110
after payment of the municipal utility's costs to provide 111
service, these excess revenues must be reinvested into the 112
municipal utility or returned to custom ers who received service 113
at locations beyond the municipality's corporate limits. 114
(5)(a) By November 1, 2024, and annually thereafter, each 115
municipality that provides electric, natural gas, water, or 116
sewer utility service pursuant to subsection (1) must provide a 117
report to the Florida Public Service Commission that identifies, 118
for each type of utility service provided by the municipality: 119
1. The number and percentage of customers that receive 120
utility service provided by the municipality at a location 121
outside the boundaries of the municipality; 122
2. The volume and percentage of sales made to such 123
customers, and the gross revenues generated from such sales; and 124
3. Whether the rates, fees, and charges imposed on 125
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customers that receive service at a locatio n outside the 126
municipality's boundaries are different than the rates, fees, 127
and charges imposed on customers within the boundaries of the 128
municipality, and, if so, the amount and percentage of the 129
differential. 130
(b) The commission shall compile the inform ation provided 131
pursuant to paragraph (a) and submit a report containing this 132
information to the Governor, the President of the Senate, and 133
the Speaker of the House of Representatives by January 31, 2025, 134
and annually thereafter. 135
(c) This subsection does not modify or extend the 136
authority of the commission otherwise provided by law with 137
respect to any municipal utility that is required to comply with 138
paragraph (a). 139
Section 2. Subsection (1) of section 180.191, Florida 140
Statutes, is amended to read: 141
180.191 Limitation on rates charged consumer outside city 142
limits.— 143
(1) Any municipality within the state operating a water or 144
sewer utility outside of the boundaries of such municipality 145
shall charge consumers outside the boundaries rates, fees, and 146
charges determined in one of the following manners: 147
(a) It may charge the same rates, fees, and charges as 148
consumers inside the municipal boundaries. However, in addition 149
thereto, the municipality may add a surcharge of not more than 150
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25 percent of such rates, fees, and charges to consumers outside 151
the boundaries. Fixing of such rates, fees, and charges in this 152
manner shall not require a public hearing except as may be 153
provided for service to consumers inside the municipality. 154
(b)1. It may charge rates, fees, and charges that are just 155
and equitable and which are based on the same factors used in 156
fixing the rates, fees, and charges for consumers inside the 157
municipal boundaries. In addition thereto, the municipality may 158
add a surcharge not to exceed 25 percent of such rates, fees, 159
and charges for said services to consumers outside the 160
boundaries. However, the total of all Such rates, fees, and 161
charges for the services to consumers outside the boundaries may 162
shall not exceed 25 be more than 50 percent in excess of the 163
total amount the municipality charges consumers served within 164
the municipality for corresponding service. No such rates, fees, 165
and charges shall be fixed until after a public hearing at which 166
all of the users of the water or sewer systems; owners, tena nts, 167
or occupants of property served or to be served thereby; and all 168
others interested shall have an opportunity to be heard 169
concerning the proposed rates, fees, and charges. Any change or 170
revision of such rates, fees, or charges may be made in the same 171
manner as such rates, fees, or charges were originally 172
established, but if such change or revision is to be made 173
substantially pro rata as to all classes of service, both inside 174
and outside the municipality, no hearing or notice shall be 175
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required. 176
2. Any municipality within the state operating a water or 177
sewer utility that provides service to consumers within the 178
boundaries of a separate municipality through the use of a water 179
treatment plant or sewer treatment plant located within the 180
boundaries of that s eparate municipality may charge consumers in 181
the separate municipality no more than the rates, fees, and 182
charges imposed on consumers inside its own municipal 183
boundaries. 184
Section 3. This act shall take effect July 1, 2025. 185