FL
Florida House Bill H1277

Florida 2024 Regular Session

Florida House Bill H1277 Compare Versions

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1010 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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1414 A bill to be entitled 1
1515 An act relating to municipal utilities; amending s. 2
1616 180.19, F.S.; requiring certain public meetings as a 3
1717 condition precedent to the effectiveness of a new or 4
1818 extended agreement under which a municipality will 5
1919 provide specified utility services in other 6
2020 municipalities or unincorporated areas; specifying the 7
2121 matters to be addressed in such public meetings; 8
2222 requiring such agreements to be written; requiring 9
23-annual public customer meetings; defining the terms 10
24-"appointed representative" and "governing body" for 11
25-specified purposes; limiting the portion of certain 12
26-utility revenues that a municipality may use to fund 13
27-or finance general government functions; requiring 14
28-excess revenues to be reinvested into the municipal 15
29-utility or returned to customers; requiring 16
30-municipalities that provide specified utility services 17
31-to report certain information by a specified date to 18
32-the Public Service Commission on an annual basis; 19
33-requiring the commission to compile certain 20
34-information and submit a report containing such 21
35-information to the Governor and the Legislature by a 22
36-specified date; providing construction; amending s. 23
37-180.191, F.S.; revising provisions relating to 24
38-permissible rates, fees, and charges imposed by 25
23+annual customer meetings; defining "governing body" 10
24+for specified purposes; limiting the portion of 11
25+certain utility revenues that a municipality may use 12
26+to fund or finance general government functions; 13
27+requiring municipalities that provide specified 14
28+utility services to report certain information by a 15
29+specified date to the Public Service Commission on an 16
30+annual basis; requiring the commission to compile 17
31+certain information and submit a report containing 18
32+such information to the Governor and the Legislature 19
33+by a specified date; providing construction; amending 20
34+s. 180.191, F.S.; revising provisions relating to 21
35+permissible rates, fees, and charges imposed by 22
36+municipal water and sewer utilities on customers 23
37+located outside the municipal boundaries; providing an 24
38+effective date. 25
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4747 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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51-municipal water and sewer utilities on customers 26
52-located outside the municipal boundaries; providing an 27
53-effective date. 28
54- 29
55-Be It Enacted by the Legislature of the State of Florida: 30
56- 31
57- Section 1. Section 180.19, Florida Statutes, is amended to 32
58-read: 33
59- 180.19 Use by other municipalities and by individuals 34
60-outside corporate limits.— 35
61- (1) A municipality which constructs any works as are 36
62-authorized by this chapter, may permit any other municipality 37
63-and the owners or association of owners of lots or lands outside 38
64-of its corporate limits or within the limits of any other 39
65-municipality, to connect with or use the utilities mentioned in 40
66-this chapter upon such terms and conditions as may be agreed 41
67-between such municipalities, and the owners or association of 42
68-owners of such outside lots or lands. 43
69- (2) Any private company or corp oration organized to 44
70-accomplish the purposes set forth in this chapter, which has 45
71-been granted a privilege or franchise by a municipality, may 46
72-permit the owners or association of owners of lots or lands 47
73-outside of the boundaries of said municipality granti ng said 48
74-privilege or franchise, or other municipality, to connect with 49
75-and use the utility operated by the said private company or 50
51+ 26
52+Be It Enacted by the Legislature of the State of Florida: 27
53+ 28
54+ Section 1. Section 180.19, Florida Statutes, is amended to 29
55+read: 30
56+ 180.19 Use by other municipalities and by individuals 31
57+outside corporate limits. — 32
58+ (1) A municipality which const ructs any works as are 33
59+authorized by this chapter, may permit any other municipality 34
60+and the owners or association of owners of lots or lands outside 35
61+of its corporate limits or within the limits of any other 36
62+municipality, to connect with or use the utiliti es mentioned in 37
63+this chapter upon such terms and conditions as may be agreed 38
64+between such municipalities, and the owners or association of 39
65+owners of such outside lots or lands. 40
66+ (2) Any private company or corporation organized to 41
67+accomplish the purposes s et forth in this chapter, which has 42
68+been granted a privilege or franchise by a municipality, may 43
69+permit the owners or association of owners of lots or lands 44
70+outside of the boundaries of said municipality granting said 45
71+privilege or franchise, or other munic ipality, to connect with 46
72+and use the utility operated by the said private company or 47
73+corporation upon such terms as may be agreed between the said 48
74+private company or corporation and the owners or association of 49
75+owners of said lots or lands or the said muni cipality. 50
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8484 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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88-corporation upon such terms as may be agreed between the said 51
89-private company or corporation and the owners or association of 52
90-owners of said lots or lands or the said municipality. 53
91- (3)(a) A new agreement, or an extension, renewal, or 54
92-material amendment of an existing agreement, to provide 55
93-electric, natural gas, water, or sewer utility service at retail 56
94-pursuant to subsection ( 1) must be written and may not become 57
95-effective before an appointed representative of the municipality 58
96-that provides service or intends to provide the service, in 59
97-conjunction with the governing body of each municipality and 60
98-unincorporated area served or to be served, has participated in 61
99-a public meeting, which is not required to be a separate public 62
100-meeting, within each municipality and unincorporated area served 63
101-or to be served for purposes of providing information and 64
102-soliciting public input on: 65
103- 1. The nature of the service to be provided or changes to 66
104-the service being provided; 67
105- 2. The rates, fees, and charges to be imposed for the 68
106-services provided or intended to be provided, including any 69
107-differential with the rates, fees, and charges imposed for th e 70
108-same service on customers located within the boundaries of the 71
109-serving municipality, the basis for the differential, and the 72
110-length of time that the differential is expected to exist; 73
111- 3. The extent to which revenues generated from the 74
112-provision of the service will be used to fund or finance non -75
88+ (3)(a) A new agreement, or an extension, renewal, or 51
89+material amendment of an existing agreement, to provide 52
90+electric, natural gas, water, or sewer utility service at retail 53
91+pursuant to subsection (1) must be written and may not become 54
92+effective before the municipality that provides service or 55
93+intends to provide the service, in conjunction with the 56
94+governing body of each municipality and unincorporated area 57
95+served or to be served, has conducted a public meeting within 58
96+each municipality and uninc orporated area served or to be served 59
97+for purposes of providing information and soliciting public 60
98+input on: 61
99+ 1. The nature of the service to be provided or changes to 62
100+the service being provided; 63
101+ 2. The rates, fees, and charges to be imposed for the 64
102+services provided or intended to be provided, including any 65
103+differential with the rates, fees, and charges imposed for the 66
104+same service on customers located within the boundaries of the 67
105+serving municipality, the basis for the differential, and the 68
106+length of time that the differential is expected to exist; 69
107+ 3. The extent to which revenues generated from the 70
108+provision of the service will be used to fund or finance non -71
109+utility government functions or services; and 72
110+ 4. Any other matters deemed relevant by the par ties to the 73
111+agreement. 74
112+ (b) Rates, fees, and charges imposed for water or sewer 75
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121121 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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125-utility government functions or services; and 76
126- 4. Any other matters deemed relevant by the parties to the 77
127-agreement. 78
128- (b) Rates, fees, and charges imposed for water or sewer 79
129-utility service provided pursuant to subsection (1) shall comply 80
130-with s. 180.191. 81
131- (c) A representative of each municipality that provides 82
132-electric, natural gas, water, or sewer utility service pursuant 83
133-to subsection (1), in conjunction with the governing body of 84
134-each municipality and uninc orporated area in which it provides 85
135-service, must annually conduct a public customer meeting, which 86
136-is not required to be a separate public meeting, within each 87
137-such municipality and unincorporated area for purposes of 88
138-soliciting public input on utility -related matters, including 89
139-rates and service. 90
140- (d) For purposes of this subsection, the term: 91
141- 1. "Appointed representative" means an executive level 92
142-leadership employee of a municipality, or such municipality's 93
143-related and separate utility authority, boar d, or commission, 94
144-specifically appointed by the governing body to serve as its 95
145-representative for purposes of this subsection. 96
146- 2. "Governing body" means a: 97
147- a. Governing body of a municipality in which service is 98
148-provided or proposed to be extended. 99
149- b. Board of county commissioners of a county in which 100
125+utility service provided pursuant to subsection (1) shall comply 76
126+with s. 180.191. 77
127+ (c) Each municipality that provides electric, natural gas, 78
128+water, or sewer utility service pursuant to subsection (1), in 79
129+conjunction with the governing body of each municipality and 80
130+unincorporated area in which it provides service, must annually 81
131+conduct a customer meeting within each such municipality and 82
132+unincorporated area for purposes of sol iciting public input on 83
133+utility-related matters, including rates and service. 84
134+ (d) For purposes of this subsection, "governing body" 85
135+refers to each: 86
136+ 1. Governing body of a municipality in which service is 87
137+provided or proposed to be extended. 88
138+ 2. Board of county commissioners of a county in which 89
139+service is provided or proposed to be extended, if service is 90
140+provided or will be extended in an unincorporated area within 91
141+the county. 92
142+ (4) A municipality that generates revenue from the 93
143+provision of electric, natural gas, water, or sewer utility 94
144+service pursuant to subsection (1) may not use more than 10 95
145+percent of the gross revenues generated from such services to 96
146+fund or finance general government functions. 97
147+ (5)(a) By November 1, 2024, and annual ly thereafter, each 98
148+municipality that provides electric, natural gas, water, or 99
149+sewer utility service pursuant to subsection (1) must provide a 100
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158158 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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162-service is provided or proposed to be extended, if service is 101
163-provided or will be extended in an unincorporated area within 102
164-the county. 103
165- (4) A municipality that generates revenue from the 104
166-provision of electric, natural gas, water, or sewer utility 105
167-service to locations beyond its corporate limits may not use 106
168-more than 10 percent of the gross revenues generated from such 107
169-services to fund or finance general government functions. After 108
170-the transfer of such revenues to fund or finance general 109
171-government functions, if any revenues from such service remain 110
172-after payment of the municipal utility's costs to provide 111
173-service, these excess revenues must be reinvested into the 112
174-municipal utility or returned to custom ers who received service 113
175-at locations beyond the municipality's corporate limits. 114
176- (5)(a) By November 1, 2024, and annually thereafter, each 115
177-municipality that provides electric, natural gas, water, or 116
178-sewer utility service pursuant to subsection (1) must provide a 117
179-report to the Florida Public Service Commission that identifies, 118
180-for each type of utility service provided by the municipality: 119
181- 1. The number and percentage of customers that receive 120
182-utility service provided by the municipality at a location 121
183-outside the boundaries of the municipality; 122
184- 2. The volume and percentage of sales made to such 123
185-customers, and the gross revenues generated from such sales; and 124
186- 3. Whether the rates, fees, and charges imposed on 125
162+report to the Florida Public Service Commission that identifies, 101
163+for each type of utility service provided by th e municipality: 102
164+ 1. The number and percentage of customers that receive 103
165+utility service provided by the municipality at a location 104
166+outside the boundaries of the municipality; 105
167+ 2. The volume and percentage of sales made to such 106
168+customers, and the gross re venues generated from such sales; and 107
169+ 3. Whether the rates, fees, and charges imposed on 108
170+customers that receive service at a location outside the 109
171+municipality's boundaries are different than the rates, fees, 110
172+and charges imposed on customers within the bo undaries of the 111
173+municipality, and, if so, the amount and percentage of the 112
174+differential. 113
175+ (b) The commission shall compile the information provided 114
176+pursuant to paragraph (a) and submit a report containing this 115
177+information to the Governor, the President of the Senate, and 116
178+the Speaker of the House of Representatives by January 31, 2025, 117
179+and annually thereafter. 118
180+ (c) This subsection does not modify or extend the 119
181+authority of the commission otherwise provided by law with 120
182+respect to any municipal utility that is required to comply with 121
183+paragraph (a). 122
184+ Section 2. Subsection (1) of section 180.191, Florida 123
185+Statutes, is amended to read: 124
186+ 180.191 Limitation on rates charged consumer outside city 125
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195195 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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199-customers that receive service at a locatio n outside the 126
200-municipality's boundaries are different than the rates, fees, 127
201-and charges imposed on customers within the boundaries of the 128
202-municipality, and, if so, the amount and percentage of the 129
203-differential. 130
204- (b) The commission shall compile the inform ation provided 131
205-pursuant to paragraph (a) and submit a report containing this 132
206-information to the Governor, the President of the Senate, and 133
207-the Speaker of the House of Representatives by January 31, 2025, 134
208-and annually thereafter. 135
209- (c) This subsection does not modify or extend the 136
210-authority of the commission otherwise provided by law with 137
211-respect to any municipal utility that is required to comply with 138
212-paragraph (a). 139
213- Section 2. Subsection (1) of section 180.191, Florida 140
214-Statutes, is amended to read: 141
215- 180.191 Limitation on rates charged consumer outside city 142
216-limits.— 143
217- (1) Any municipality within the state operating a water or 144
218-sewer utility outside of the boundaries of such municipality 145
219-shall charge consumers outside the boundaries rates, fees, and 146
220-charges determined in one of the following manners: 147
221- (a) It may charge the same rates, fees, and charges as 148
222-consumers inside the municipal boundaries. However, in addition 149
223-thereto, the municipality may add a surcharge of not more than 150
199+limits.— 126
200+ (1) Any municipality within the state operating a water or 127
201+sewer utility outside of the boundaries of such municipality 128
202+shall charge consumers outside the boundaries rates, fees, and 129
203+charges determined in one of the following manners: 130
204+ (a) It may charge the same rates, fees, and charges as 131
205+consumers inside the municipal boundaries. However, in addition 132
206+thereto, the municipality may add a surcharge of not more than 133
207+25 percent of such rates, fees, and charges to consumers outside 134
208+the boundaries. Fixing of such rates, fees, and charges in this 135
209+manner shall not require a public hearing except as may be 136
210+provided for service to consumers inside the municipality. 137
211+ (b)1. It may charge rates, fees, and charges that are just 138
212+and equitable and which are based on the same factors used in 139
213+fixing the rates, fees, and charge s for consumers inside the 140
214+municipal boundaries. In addition thereto, the municipality may 141
215+add a surcharge not to exceed 25 percent of such rates, fees, 142
216+and charges for said services to consumers outside the 143
217+boundaries. However, the total of all Such rates, fees, and 144
218+charges for the services to consumers outside the boundaries may 145
219+shall not exceed 25 be more than 50 percent in excess of the 146
220+total amount the municipality charges consumers served within 147
221+the municipality for corresponding service. No such rate s, fees, 148
222+and charges shall be fixed until after a public hearing at which 149
223+all of the users of the water or sewer systems; owners, tenants, 150
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232232 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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236-25 percent of such rates, fees, and charges to consumers outside 151
237-the boundaries. Fixing of such rates, fees, and charges in this 152
238-manner shall not require a public hearing except as may be 153
239-provided for service to consumers inside the municipality. 154
240- (b)1. It may charge rates, fees, and charges that are just 155
241-and equitable and which are based on the same factors used in 156
242-fixing the rates, fees, and charges for consumers inside the 157
243-municipal boundaries. In addition thereto, the municipality may 158
244-add a surcharge not to exceed 25 percent of such rates, fees, 159
245-and charges for said services to consumers outside the 160
246-boundaries. However, the total of all Such rates, fees, and 161
247-charges for the services to consumers outside the boundaries may 162
248-shall not exceed 25 be more than 50 percent in excess of the 163
249-total amount the municipality charges consumers served within 164
250-the municipality for corresponding service. No such rates, fees, 165
251-and charges shall be fixed until after a public hearing at which 166
252-all of the users of the water or sewer systems; owners, tena nts, 167
253-or occupants of property served or to be served thereby; and all 168
254-others interested shall have an opportunity to be heard 169
255-concerning the proposed rates, fees, and charges. Any change or 170
256-revision of such rates, fees, or charges may be made in the same 171
257-manner as such rates, fees, or charges were originally 172
258-established, but if such change or revision is to be made 173
259-substantially pro rata as to all classes of service, both inside 174
260-and outside the municipality, no hearing or notice shall be 175
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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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273-required. 176
274- 2. Any municipality within the state operating a water or 177
275-sewer utility that provides service to consumers within the 178
276-boundaries of a separate municipality through the use of a water 179
277-treatment plant or sewer treatment plant located within the 180
278-boundaries of that s eparate municipality may charge consumers in 181
279-the separate municipality no more than the rates, fees, and 182
280-charges imposed on consumers inside its own municipal 183
281-boundaries. 184
282- Section 3. This act shall take effect July 1, 2025. 185
236+or occupants of property served or to be served thereby; and all 151
237+others interested shall have an opportunity to be he ard 152
238+concerning the proposed rates, fees, and charges. Any change or 153
239+revision of such rates, fees, or charges may be made in the same 154
240+manner as such rates, fees, or charges were originally 155
241+established, but if such change or revision is to be made 156
242+substantially pro rata as to all classes of service, both inside 157
243+and outside the municipality, no hearing or notice shall be 158
244+required. 159
245+ 2. Any municipality within the state operating a water or 160
246+sewer utility that provides service to consumers within the 161
247+boundaries of a separate municipality through the use of a water 162
248+treatment plant or sewer treatment plant located within the 163
249+boundaries of that separate municipality may charge consumers in 164
250+the separate municipality no more than the rates, fees, and 165
251+charges imposed on consumers inside its own municipal 166
252+boundaries. 167
253+ Section 3. This act shall take effect July 1, 2025. 168