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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 utility services; amending s. 2
180.19, F.S.; requiring certain public meetings as a 3
condition precedent to the effectiveness of a new or 4
an 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 at 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"; 11
limiting the portion of certain utility revenues that 12
a municipality may use to fund or finance general 13
government functions; requiring excess revenues to be 14
reinvested into the municipal utility or returned to 15
customers; amending s. 180.191, F.S.; revising 16
provisions relating to permissible rates, fees, and 17
charges imposed by municipal water and sewer utilities 18
on customers located outside the municipal boundaries; 19
creating s. 180.192, F.S.; requiring municipalities 20
that provide specified utility services to report 21
certain information by a specified date, and annually 22
thereafter, to the Florida Public Service Commission; 23
requiring the commission to compile such information 24
and submit a report by a specified date, and annually 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
thereafter, to the Governor and th e Legislature; 26
providing construction; amending s. 366.032, F.S.; 27
prohibiting boards, agencies, commissions, and 28
authorities of any county, municipal corporation, or 29
political subdivision from restricting or prohibiting 30
fuel sources and appliances used to provide energy to 31
consumers; revising retroactive applicability to 32
include such boards, agencies, commissions, and 33
authorities; providing effective dates. 34
35
Be It Enacted by the Legislature of the State of Florida: 36
37
Section 1. Section 180.19, Florid a Statutes, is amended to 38
read: 39
180.19 Use by other municipalities and by individuals 40
outside corporate limits. — 41
(1) A municipality which constructs any works as are 42
authorized by this chapter, may permit any other municipality 43
and the owners or associ ation of owners of lots or lands outside 44
of its corporate limits or within the limits of any other 45
municipality, to connect with or use the utilities mentioned in 46
this chapter upon such terms and conditions as may be agreed 47
between such municipalities, and the owners or association of 48
owners of such outside lots or lands. 49
(2) Any private company or corporation organized to 50
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accomplish the purposes set forth in this chapter, which has 51
been granted a privilege or franchise by a municipality, may 52
permit the owners or association of owners of lots or lands 53
outside of the boundaries of said municipality granting said 54
privilege or franchise, or other municipality, to connect with 55
and use the utility operated by the said private company or 56
corporation upon such te rms as may be agreed between the said 57
private company or corporation and the owners or association of 58
owners of said lots or lands or the said municipality. 59
(3)(a) A new agreement, or an extension, renewal, or 60
material amendment of an existing agreement, to provide 61
electric, natural gas, water, or sewer utility service at retail 62
pursuant to subsection (1) must be written and may not become 63
effective before an appointed representative of the municipality 64
that provides service or intends to provide the serv ice, in 65
conjunction with the governing body of each municipality and 66
unincorporated area served or to be served, has participated in 67
a public meeting, which is not required to be a separate public 68
meeting, within each municipality and unincorporated area s erved 69
or to be served for purposes of providing information and 70
soliciting public input on: 71
1. The nature of the services to be provided or changes to 72
the services being provided; 73
2. The rates, fees, and charges to be imposed for the 74
services provided or intended to be provided, including any 75
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differential with the rates, fees, and charges imposed for the 76
same services on customers located within the boundaries of the 77
serving municipality, the basis for the differential, and the 78
length of time that the d ifferential is expected to exist; 79
3. The extent to which revenues generated from the 80
provision of the services will be used to fund or finance 81
nonutility government functions or services; and 82
4. Any other matters deemed relevant by the parties to the 83
agreement. 84
(b) Rates, fees, and charges imposed for water or sewer 85
utility services provided pursuant to subsection (1) shall 86
comply with s. 180.191. 87
(c) A representative of each municipality that provides 88
electric, natural gas, water, or sewer utility services pursuant 89
to subsection (1), in conjunction with the governing body of 90
each municipality and unincorporated area in which it provides 91
services, must annually conduct a public customer meeting, which 92
is not required to be a separate public meeting, within each 93
municipality and unincorporated area for purposes of soliciting 94
public input on utility -related matters, including fees, rates, 95
charges, and services. 96
(d) For purposes of this subsection, the term: 97
1. "Appointed representative" means an executive -level 98
leadership employee of a municipality, or such municipality's 99
related and separate utility authority, board, or commission, 100
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specifically appointed by the governing body to serve as its 101
representative for purposes of this subsection. 102
2. "Governing body" means a: 103
a. Governing body of a municipality in which services are 104
provided or proposed to be extended. 105
b. Board of county commissioners of a county in which 106
services are provided or proposed to be extended, if services 107
are provided or proposed to be extended in an unincorporated 108
area within the county. 109
(4) A municipality that generates revenue from the 110
provision of electric, natural gas, water, or sewer utility 111
services to locations beyond its co rporate limits may not use 112
more than 10 percent of the gross revenues generated from such 113
services to fund or finance general government functions. After 114
the transfer of such revenues to fund or finance general 115
government functions, if any revenues generat ed from such 116
services remain after payment of the municipal utility's costs 117
to provide services, these excess revenues must be reinvested 118
into the municipal utility or returned to customers who received 119
service at locations beyond the municipality's corpor ate limits. 120
Section 2. Subsection (1) of section 180.191, Florida 121
Statutes, is amended to read: 122
180.191 Limitation on rates charged consumer outside city 123
limits.— 124
(1) Any municipality within the state operating a water or 125
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sewer utility outside of t he boundaries of such municipality 126
shall charge consumers outside the boundaries rates, fees, and 127
charges determined in one of the following manners: 128
(a) It may charge the same rates, fees, and charges as 129
consumers inside the municipal boundaries. However, in addition 130
thereto, the municipality may add a surcharge of not more than 131
25 percent of such rates, fees, and charges to consumers outside 132
the boundaries. Fixing of such rates, fees, and charges in this 133
manner shall not require a public hearing except as may be 134
provided for service to consumers inside the municipality. 135
(b)1. It may charge rates, fees, and charges that are just 136
and equitable and which are based on the same factors used in 137
fixing the rates, fees, and charges for consumers inside the 138
municipal boundaries. In addition thereto, the municipality may 139
add a surcharge not to exceed 25 percent of such rates, fees, 140
and charges for said services to consumers outside the 141
boundaries. However, the total of all Such rates, fees, and 142
charges for the services to consumers outside the boundaries may 143
shall not be more than 25 50 percent in excess of the rates, 144
fees, and charges total amount the municipality charges 145
consumers served within the municipality for corresponding 146
service. No such rates, fees, and charges shall be fixed until 147
after a public hearing at which all of the users of the water or 148
sewer systems; owners, tenants, or occupants of property served 149
or to be served thereby; and all others interested shall have an 150
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opportunity to be heard concerni ng the proposed rates, fees, and 151
charges. Any change or revision of such rates, fees, or charges 152
may be made in the same manner as such rates, fees, or charges 153
were originally established, but if such change or revision is 154
to be made substantially pro rata as to all classes of service, 155
both inside and outside the municipality, no hearing or notice 156
shall be required. 157
2. Any municipality within this state operating a water or 158
sewer utility that provides services to consumers within the 159
boundaries of a separ ate municipality through the use of a water 160
treatment plant or sewer treatment plant located within the 161
boundaries of that separate municipality may charge consumers in 162
the separate municipality no more than the rates, fees, and 163
charges imposed on consumer s inside its own municipal 164
boundaries. 165
Section 3. Effective July 1, 2025, section 180.192, 166
Florida Statutes, is created to read: 167
180.192 Reporting requirements related to municipal 168
utility service.— 169
(1) By January 1, 2026, and annually thereafter, each 170
municipality that provides electric, natural gas, water, or 171
sewer utility services pursuant to s. 180.191(1) must provide a 172
report to the Florida Public Service Commission that identifies, 173
for each type of utility service provided by the municipality: 174
(a) The number and percentage of customers that receive 175
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utility services provided by the municipality at a location 176
outside the boundaries of the municipality; 177
(b) The volume and percentage of sales made to such 178
customers, and the gross revenues gener ated from such sales; and 179
(c) Whether the rates, fees, and charges imposed on 180
customers that receive services at a location outside the 181
municipality's boundaries are different than the rates, fees, 182
and charges imposed on customers within the boundaries o f the 183
municipality, and, if so, the amount and percentage of the 184
differential. 185
(2) By March 31, 2026, and annually thereafter, the 186
commission shall compile the information provided pursuant to 187
subsection (1) and submit a report containing this informatio n 188
to the Governor, the President of the Senate, and the Speaker of 189
the House of Representatives. 190
(3) This section does not modify or extend the authority 191
of the commission otherwise provided by law with respect to any 192
municipal utility that is required t o comply with subsection 193
(1). 194
Section 4. Subsections (1), (2), and (5) of section 195
366.032, Florida Statutes, are amended to read: 196
366.032 Preemption over utility service restrictions. — 197
(1) A municipality, county, board, agency, commission, or 198
authority of any county, municipal corporation, or political 199
subdivision, special district, community development district 200
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created pursuant to chapter 190, or other political subdivision 201
of the state may not enact or enforce a resolution, ordinance, 202
rule, code, or policy or take any action that restricts or 203
prohibits or has the effect of restricting or prohibiting the 204
types or fuel sources of energy production which may be used, 205
delivered, converted, or supplied by the following entities to 206
serve customers that such entities are authorized to serve: 207
(a) A public utility or an electric utility as defined in 208
this chapter; 209
(b) An entity formed under s. 163.01 that generates, 210
sells, or transmits electrical energy; 211
(c) A natural gas utility as defined in s. 366. 04(3)(c); 212
(d) A natural gas transmission company as defined in s. 213
368.103; or 214
(e) A Category I liquefied petroleum gas dealer or 215
Category II liquefied petroleum gas dispenser or Category III 216
liquefied petroleum gas cylinder exchange operator as defined in 217
s. 527.01. 218
(2) Except to the extent necessary to enforce the Florida 219
Building Code adopted pursuant to s. 553.73 or the Florida Fire 220
Prevention Code adopted pursuant to s. 633.202, a municipality, 221
county, board, agency, commission, or authority of an y county, 222
municipal corporation, or political subdivision, special 223
district, community development district created pursuant to 224
chapter 190, or other political subdivision of the state may not 225
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enact or enforce a resolution, an ordinance, a rule, a code, or 226
a policy or take any action that restricts or prohibits or has 227
the effect of restricting or prohibiting the use of an 228
appliance, including a stove or grill, which uses the types or 229
fuel sources of energy production which may be used, delivered, 230
converted, or supplied by the entities listed in subsection (1). 231
As used in this subsection, the term "appliance" means a device 232
or apparatus manufactured and designed to use energy and for 233
which the Florida Building Code or the Florida Fire Prevention 234
Code provides specific requirements. 235
(5) Any municipality, county, board, agency, commission, 236
or authority of any county, municipal corporation, or political 237
subdivision, special district, community development district 238
created pursuant to chapter 190, or political subdivision 239
charter, resolution, ordinance, rule, code, policy, or action 240
that is preempted by this act that existed before or on July 1, 241
2021, is void. 242
Section 5. Except as otherwise expressly provided in this 243
act, this act shall take effect July 1, 2026. 244