FL
Florida House Bill H1523

Florida 2025 Regular Session

Florida House Bill H1523 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 utility services; 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 an 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 at such public meetings; 8
2222 requiring such agreements to be written; requiring 9
2323 annual public customer meetings; defining the terms 10
2424 "appointed representative" and "governing body"; 11
2525 limiting the portion of certain utility revenues that 12
2626 a municipality may use to fund or finance general 13
2727 government functions; requiring excess revenues to be 14
2828 reinvested into the municipal utility or returned to 15
29-customers; amending s. 180.191, F.S.; revising 16
30-provisions relating to permissible rates, fees, and 17
31-charges imposed by municipal water and sewer utilities 18
32-on customers located outside the municipal boundaries; 19
33-creating s. 180.192, F.S.; requiring municipalities 20
34-that provide specified utility services to report 21
35-certain information by a specified date, and annually 22
36-thereafter, to the Florida Public Service Commission; 23
37-requiring the commission to compile such information 24
38-and submit a report by a specified date, and annually 25
29+customers; requiring municipalities that provide 16
30+specified utility services to report certain 17
31+information by a specified date to the Florida Public 18
32+Service Commission on an annual basis; requiring the 19
33+commission to compile certain information and submit a 20
34+report containing such information to the Govern or and 21
35+the Legislature by a specified date; providing 22
36+construction; amending s. 180.191, F.S.; revising 23
37+provisions relating to permissible rates, fees, and 24
38+charges imposed by municipal water and sewer utilities 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-thereafter, to the Governor and th e Legislature; 26
52-providing construction; amending s. 366.032, F.S.; 27
53-prohibiting boards, agencies, commissions, and 28
54-authorities of any county, municipal corporation, or 29
55-political subdivision from restricting or prohibiting 30
56-fuel sources and appliances used to provide energy to 31
57-consumers; revising retroactive applicability to 32
58-include such boards, agencies, commissions, and 33
59-authorities; providing effective dates. 34
51+on customers located outside the municipal bo undaries; 26
52+amending s. 366.032, F.S.; prohibiting boards, 27
53+agencies, commissions, and authorities of any county, 28
54+municipal corporation, or political subdivision from 29
55+restricting or prohibiting fuel sources and appliances 30
56+used to provide energy to consumers; revising 31
57+retroactive applicability to include such boards, 32
58+agencies, commissions, and authorities; providing an 33
59+effective date. 34
6060 35
6161 Be It Enacted by the Legislature of the State of Florida: 36
6262 37
6363 Section 1. Section 180.19, Florida Statutes, is amended to 38
6464 read: 39
6565 180.19 Use by other municipalities and by individuals 40
6666 outside corporate limits. — 41
6767 (1) A municipality which constructs any works as are 42
6868 authorized by this chapter, may permit any other municipality 43
6969 and the owners or association of owners of lots or lands outside 44
7070 of its corporate limits or within the limits of any other 45
7171 municipality, to connect with or use the utilities mentioned in 46
7272 this chapter upon such terms and conditions as may be agreed 47
7373 between such municipalities, and the owners or association of 48
7474 owners of such outside lots or lands. 49
7575 (2) Any private company or corporation organized to 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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8888 accomplish the purposes set forth in this chapter, which has 51
8989 been granted a privilege or franchise by a municipality, may 52
9090 permit the owners or association of own ers of lots or lands 53
9191 outside of the boundaries of said municipality granting said 54
9292 privilege or franchise, or other municipality, to connect with 55
9393 and use the utility operated by the said private company or 56
9494 corporation upon such terms as may be agreed betwee n the said 57
9595 private company or corporation and the owners or association of 58
9696 owners of said lots or lands or the said municipality. 59
9797 (3)(a) A new agreement, or an extension, renewal, or 60
9898 material amendment of an existing agreement, to provide 61
9999 electric, natural gas, water, or sewer utility service at retail 62
100100 pursuant to subsection (1) must be written and may not become 63
101101 effective before an appointed representative of the municipality 64
102102 that provides service or intends to provide the service, in 65
103103 conjunction with the governing body of each municipality and 66
104104 unincorporated area served or to be served, has participated in 67
105105 a public meeting, which is not required to be a separate public 68
106106 meeting, within each municipality and unincorporated area served 69
107107 or to be served for p urposes of providing information and 70
108108 soliciting public input on: 71
109109 1. The nature of the services to be provided or changes to 72
110110 the services being provided; 73
111111 2. The rates, fees, and charges to be imposed for the 74
112112 services provided or intended to be provided, including any 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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125125 differential with the rates, fees, and charges imposed for the 76
126126 same services on customers located within the boundaries of the 77
127127 serving municipality, the basis for the differential, and the 78
128128 length of time that the differential is expected to exist; 79
129129 3. The extent to which revenues generated from the 80
130130 provision of the services will be used to fund or finance 81
131131 nonutility government functions or services; and 82
132132 4. Any other matters deemed relevant by the parties to the 83
133133 agreement. 84
134134 (b) Rates, fees, and charges imposed for water or sewer 85
135135 utility services provided pursuant to subsection (1) shall 86
136136 comply with s. 180.191. 87
137137 (c) A representative of each municipality that provides 88
138138 electric, natural gas, water, or sewer utility services pursuant 89
139139 to subsection (1), in conjunction with the governing body of 90
140140 each municipality and unincorporated area in which it provides 91
141141 services, must annually conduct a public customer meeting, which 92
142142 is not required to be a separate public meeting, within each 93
143143 municipality and unincorporated area for purposes of soliciting 94
144144 public input on utility -related matters, including fees, rates, 95
145145 charges, and services. 96
146146 (d) For purposes of this subsection, the term: 97
147147 1. "Appointed representative" means an executive -level 98
148148 leadership employee of a municipality, or such municipality's 99
149149 related and separate utility authority, board, or commission, 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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162162 specifically appointed by the governing body to serve as its 101
163163 representative for purposes of this subsection. 102
164164 2. "Governing body" means a: 103
165165 a. Governing body of a municipality in which services are 104
166166 provided or proposed to be extended. 105
167167 b. Board of county commissioners of a county in which 106
168168 services are provided or proposed to be extended, if services 107
169169 are provided or proposed to be extended in an unincorporated 108
170170 area within the county. 109
171171 (4) A municipality that generates revenue from the 110
172172 provision of electric, natural gas, water, or sewer utility 111
173173 services to locations beyond its co rporate limits may not use 112
174174 more than 10 percent of the gross revenues generated from such 113
175175 services to fund or finance general government functions. After 114
176176 the transfer of such revenues to fund or finance general 115
177177 government functions, if any revenues generat ed from such 116
178178 services remain after payment of the municipal utility's costs 117
179179 to provide services, these excess revenues must be reinvested 118
180180 into the municipal utility or returned to customers who received 119
181181 service at locations beyond the municipality's corpor ate limits. 120
182- Section 2. Subsection (1) of section 180.191, Florida 121
183-Statutes, is amended to read: 122
184- 180.191 Limitation on rates charged consumer outside city 123
185-limits.— 124
186- (1) Any municipality within the state operating a water or 125
182+ (5)(a) By November 1, 2025, and annually thereafter, each 121
183+municipality that provides electric, natural gas, water, or 122
184+sewer utility services pursuant to subsection (1) must provide a 123
185+report to the Florida Public Service Commission that identi fies, 124
186+for each type of utility service provided by the municipality: 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-sewer utility outside of t he boundaries of such municipality 126
200-shall charge consumers outside the boundaries rates, fees, and 127
201-charges determined in one of the following manners: 128
202- (a) It may charge the same rates, fees, and charges as 129
203-consumers inside the municipal boundaries. However, in addition 130
204-thereto, the municipality may add a surcharge of not more than 131
205-25 percent of such rates, fees, and charges to consumers outside 132
206-the boundaries. Fixing of such rates, fees, and charges in this 133
207-manner shall not require a public hearing except as may be 134
208-provided for service to consumers inside the municipality. 135
209- (b)1. It may charge rates, fees, and charges that are just 136
210-and equitable and which are based on the same factors used in 137
211-fixing the rates, fees, and charges for consumers inside the 138
212-municipal boundaries. In addition thereto, the municipality may 139
213-add a surcharge not to exceed 25 percent of such rates, fees, 140
214-and charges for said services to consumers outside the 141
215-boundaries. However, the total of all Such rates, fees, and 142
216-charges for the services to consumers outside the boundaries may 143
217-shall not be more than 25 50 percent in excess of the rates, 144
218-fees, and charges total amount the municipality charges 145
219-consumers served within the municipality for corresponding 146
220-service. No such rates, fees, and charges shall be fixed until 147
221-after a public hearing at which all of the users of the water or 148
222-sewer systems; owners, tenants, or occupants of property served 149
223-or to be served thereby; and all others interested shall have an 150
199+ 1. The number and percentage of customers that receive 126
200+utility services provided by the municipality at a location 127
201+outside the boundaries of the municipality; 128
202+ 2. The volume and percen tage of sales made to such 129
203+customers, and the gross revenues generated from such sales; and 130
204+ 3. Whether the rates, fees, and charges imposed on 131
205+customers that receive services at a location outside the 132
206+municipality's boundaries are different than the rate s, fees, 133
207+and charges imposed on customers within the boundaries of the 134
208+municipality, and, if so, the amount and percentage of the 135
209+differential. 136
210+ (b) The commission shall compile the information provided 137
211+pursuant to paragraph (a) and submit a report contai ning this 138
212+information to the Governor, the President of the Senate, and 139
213+the Speaker of the House of Representatives by January 31, 2026, 140
214+and annually thereafter. 141
215+ (c) This subsection does not modify or extend the 142
216+authority of the commission otherwise prov ided by law with 143
217+respect to any municipal utility that is required to comply with 144
218+paragraph (a). 145
219+ Section 2. Subsection (1) of section 180.191, Florida 146
220+Statutes, is amended to read: 147
221+ 180.191 Limitation on rates charged consumer outside city 148
222+limits.— 149
223+ (1) Any municipality within the state operating a water or 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-opportunity to be heard concerni ng the proposed rates, fees, and 151
237-charges. Any change or revision of such rates, fees, or charges 152
238-may be made in the same manner as such rates, fees, or charges 153
239-were originally established, but if such change or revision is 154
240-to be made substantially pro rata as to all classes of service, 155
241-both inside and outside the municipality, no hearing or notice 156
242-shall be required. 157
243- 2. Any municipality within this state operating a water or 158
244-sewer utility that provides services to consumers within the 159
245-boundaries of a separ ate municipality through the use of a water 160
246-treatment plant or sewer treatment plant located within the 161
247-boundaries of that separate municipality may charge consumers in 162
248-the separate municipality no more than the rates, fees, and 163
249-charges imposed on consumer s inside its own municipal 164
250-boundaries. 165
251- Section 3. Effective July 1, 2025, section 180.192, 166
252-Florida Statutes, is created to read: 167
253- 180.192 Reporting requirements related to municipal 168
254-utility service.— 169
255- (1) By January 1, 2026, and annually thereafter, each 170
256-municipality that provides electric, natural gas, water, or 171
257-sewer utility services pursuant to s. 180.191(1) must provide a 172
258-report to the Florida Public Service Commission that identifies, 173
259-for each type of utility service provided by the municipality: 174
260- (a) The number and percentage of customers that receive 175
236+sewer utility outside of the boundaries of such municipality 151
237+shall charge consumers outside the boundaries rates, fees, and 152
238+charges determined in one of the following manners: 153
239+ (a) It may charge t he same rates, fees, and charges as 154
240+consumers inside the municipal boundaries. However, in addition 155
241+thereto, the municipality may add a surcharge of not more than 156
242+25 percent of such rates, fees, and charges to consumers outside 157
243+the boundaries. Fixing of such rates, fees, and charges in this 158
244+manner shall not require a public hearing except as may be 159
245+provided for service to consumers inside the municipality. 160
246+ (b)1. It may charge rates, fees, and charges that are just 161
247+and equitable and which are based on the same factors used in 162
248+fixing the rates, fees, and charges for consumers inside the 163
249+municipal boundaries. In addition thereto, the municipality may 164
250+add a surcharge not to exceed 25 percent of such rates, fees, 165
251+and charges for said services to consumers outsi de the 166
252+boundaries. However, the total of all Such rates, fees, and 167
253+charges for the services to consumers outside the boundaries may 168
254+shall not exceed 25 be more than 50 percent in excess of the 169
255+total amount the municipality charges consumers served within 170
256+the municipality for corresponding service. No such rates, fees, 171
257+and charges shall be fixed until after a public hearing at which 172
258+all of the users of the water or sewer systems; owners, tenants, 173
259+or occupants of property served or to be served thereby; and a ll 174
260+others interested shall have an opportunity to be heard 175
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269269 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-utility services provided by the municipality at a location 176
274-outside the boundaries of the municipality; 177
275- (b) The volume and percentage of sales made to such 178
276-customers, and the gross revenues gener ated from such sales; and 179
277- (c) Whether the rates, fees, and charges imposed on 180
278-customers that receive services at a location outside the 181
279-municipality's boundaries are different than the rates, fees, 182
280-and charges imposed on customers within the boundaries o f the 183
281-municipality, and, if so, the amount and percentage of the 184
282-differential. 185
283- (2) By March 31, 2026, and annually thereafter, the 186
284-commission shall compile the information provided pursuant to 187
285-subsection (1) and submit a report containing this informatio n 188
286-to the Governor, the President of the Senate, and the Speaker of 189
287-the House of Representatives. 190
288- (3) This section does not modify or extend the authority 191
289-of the commission otherwise provided by law with respect to any 192
290-municipal utility that is required t o comply with subsection 193
291-(1). 194
292- Section 4. Subsections (1), (2), and (5) of section 195
293-366.032, Florida Statutes, are amended to read: 196
294- 366.032 Preemption over utility service restrictions. — 197
295- (1) A municipality, county, board, agency, commission, or 198
296-authority of any county, municipal corporation, or political 199
297-subdivision, special district, community development district 200
273+concerning the proposed rates, fees, and charges. Any change or 176
274+revision of such rates, fees, or charges may be made in the same 177
275+manner as such rates, fees, or charges were originally 178
276+established, but if such change or revision is to be made 179
277+substantially pro rata as to all classes of service, both inside 180
278+and outside the municipality, no hearing or notice shall be 181
279+required. 182
280+ 2. Any municipality within this state operating a water or 183
281+sewer utility that provides services to consumers within the 184
282+boundaries of a separate municipality through the use of a water 185
283+treatment plant or sewer treatment plant located within the 186
284+boundaries of that separate municipality may charge consumers in 187
285+the separate municip ality no more than the rates, fees, and 188
286+charges imposed on consumers inside its own municipal 189
287+boundaries. 190
288+ Section 3. Subsections (1), (2), and (5) of section 191
289+366.032, Florida Statutes, are amended to read: 192
290+ 366.032 Preemption over utility service rest rictions.— 193
291+ (1) A municipality, county, board, agency, commission, or 194
292+authority of any county, municipal corporation, or political 195
293+subdivision, special district, community development district 196
294+created pursuant to chapter 190, or other political subdivisio n 197
295+of the state may not enact or enforce a resolution, ordinance, 198
296+rule, code, or policy or take any action that restricts or 199
297+prohibits or has the effect of restricting or prohibiting the 200
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306306 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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310-created pursuant to chapter 190, or other political subdivision 201
311-of the state may not enact or enforce a resolution, ordinance, 202
312-rule, code, or policy or take any action that restricts or 203
313-prohibits or has the effect of restricting or prohibiting the 204
314-types or fuel sources of energy production which may be used, 205
315-delivered, converted, or supplied by the following entities to 206
316-serve customers that such entities are authorized to serve: 207
317- (a) A public utility or an electric utility as defined in 208
318-this chapter; 209
319- (b) An entity formed under s. 163.01 that generates, 210
320-sells, or transmits electrical energy; 211
321- (c) A natural gas utility as defined in s. 366. 04(3)(c); 212
322- (d) A natural gas transmission company as defined in s. 213
323-368.103; or 214
324- (e) A Category I liquefied petroleum gas dealer or 215
325-Category II liquefied petroleum gas dispenser or Category III 216
326-liquefied petroleum gas cylinder exchange operator as defined in 217
327-s. 527.01. 218
328- (2) Except to the extent necessary to enforce the Florida 219
329-Building Code adopted pursuant to s. 553.73 or the Florida Fire 220
330-Prevention Code adopted pursuant to s. 633.202, a municipality, 221
331-county, board, agency, commission, or authority of an y county, 222
332-municipal corporation, or political subdivision, special 223
333-district, community development district created pursuant to 224
334-chapter 190, or other political subdivision of the state may not 225
310+types or fuel sources of energy production which may be used, 201
311+delivered, converted, or supplied by the following entities to 202
312+serve customers that such entities are authorized to serve: 203
313+ (a) A public utility or an electric utility as defined in 204
314+this chapter; 205
315+ (b) An entity formed under s. 163.01 that generates, 206
316+sells, or transmits electrical energy; 207
317+ (c) A natural gas utility as defined in s. 366.04(3)(c); 208
318+ (d) A natural gas transmission company as defined in s. 209
319+368.103; or 210
320+ (e) A Category I liquefied petroleum gas dealer or 211
321+Category II liquefied petroleum gas dispenser o r Category III 212
322+liquefied petroleum gas cylinder exchange operator as defined in 213
323+s. 527.01. 214
324+ (2) Except to the extent necessary to enforce the Florida 215
325+Building Code adopted pursuant to s. 553.73 or the Florida Fire 216
326+Prevention Code adopted pursuant to s. 63 3.202, a municipality, 217
327+county, board, agency, commission, or authority of any county, 218
328+municipal corporation, or political subdivision, special 219
329+district, community development district created pursuant to 220
330+chapter 190, or other political subdivision of the s tate may not 221
331+enact or enforce a resolution, an ordinance, a rule, a code, or 222
332+a policy or take any action that restricts or prohibits or has 223
333+the effect of restricting or prohibiting the use of an 224
334+appliance, including a stove or grill, which uses the types o r 225
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343343 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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347-enact or enforce a resolution, an ordinance, a rule, a code, or 226
348-a policy or take any action that restricts or prohibits or has 227
349-the effect of restricting or prohibiting the use of an 228
350-appliance, including a stove or grill, which uses the types or 229
351-fuel sources of energy production which may be used, delivered, 230
352-converted, or supplied by the entities listed in subsection (1). 231
353-As used in this subsection, the term "appliance" means a device 232
354-or apparatus manufactured and designed to use energy and for 233
355-which the Florida Building Code or the Florida Fire Prevention 234
356-Code provides specific requirements. 235
357- (5) Any municipality, county, board, agency, commission, 236
358-or authority of any county, municipal corporation, or political 237
359-subdivision, special district, community development district 238
360-created pursuant to chapter 190, or political subdivision 239
361-charter, resolution, ordinance, rule, code, policy, or action 240
362-that is preempted by this act that existed before or on July 1, 241
363-2021, is void. 242
364- Section 5. Except as otherwise expressly provided in this 243
365-act, this act shall take effect July 1, 2026. 244
347+fuel sources of energy production which may be used, delivered, 226
348+converted, or supplied by the entities listed in subsection (1). 227
349+As used in this subsection, the term "appliance" means a device 228
350+or apparatus manufactured and designed to use energy and for 229
351+which the Florida Building Code or the Florida Fire Prevention 230
352+Code provides specific requirements. 231
353+ (5) Any municipality, county, board, agency, commission, 232
354+or authority of any county, municipal corporation, or political 233
355+subdivision, special district, co mmunity development district 234
356+created pursuant to chapter 190, or political subdivision 235
357+charter, resolution, ordinance, rule, code, policy, or action 236
358+that is preempted by this act that existed before or on July 1, 237
359+2021, is void. 238
360+ Section 4. This act shall take effect July 1, 2026. 239