The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Community Affairs
BILL: SB 1002
INTRODUCER: Senator Truenow
SUBJECT: Utility Service Restrictions
DATE: March 10, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Fleming CA Fav
2. RI
3. RC
I. Summary:
SB 1002 expands the preemption over utility service restrictions to include boards, agencies,
commissions, and authorities of counties and municipal corporations. Preempted entities cannot
restrict or prohibit the types or fuel sources of energy produced, used, delivered, converted, or
supplied by certain utilities.
The bill nullifies any existing charter, resolution, ordinance, rule, code, or policy from the
included entities which conflict with this preemption and which existed before or on July 1,
2021.
The bill takes effect July 1, 2025.
II. Present Situation:
Local Government Authority
The Florida Constitution grants local governments broad home rule authority. Specifically, non-
charter county governments may exercise those powers of self-government that are provided by
general or special law.
1
Those counties operating under a county charter have all powers of local
self-government not inconsistent with general law or special law approved by the vote of the
electors.
2
Likewise, municipalities have those governmental, corporate, and proprietary powers
that enable them to conduct municipal government, perform their functions and provide services,
and exercise any power for municipal purposes, except as otherwise provided by law.
3
1
FLA. CONST. art. VIII, s. 1(f).
2
FLA. CONST. art. VIII, s. 1(g).
3
FLA. CONST. art. VIII, s. 2(b). See also s. 166.021(1), F.S.
REVISED: BILL: SB 1002 Page 2
In Florida, special districts are separate governmental entities created for a special purpose that
have jurisdiction to operate within a limited geographic boundary.
4
Special districts are created
by general law, special act, local ordinance, or by rule of the Governor and Cabinet.
5
Throughout
the state there are over 1,770 active special districts encompassing more than 80 specialized
governmental functions.
6
Preemption
Local governments have broad authority to legislate on any matter that is not inconsistent with
federal or state law. A local government enactment may be inconsistent with state law if (1) the
Legislature has preempted a particular subject area or (2) the local enactment conflicts with a
state statute. Where state preemption applies, it precludes a local government from exercising
authority in that particular area.
7
Florida law recognizes two types of preemption: express and implied. Express preemption
requires a specific legislative statement; it cannot be implied or inferred.
8
Express preemption of
a field by the Legislature must be accomplished by clear language stating that intent.
9
In cases
where the Legislature expressly or specifically preempts an area, there is no problem with
ascertaining what the Legislature intended.
10
In cases determining the validity of ordinances in violation of state preemption, the effect has
been to find such ordinances null and void.
11
In one case, the court stated that implied
preemption “is actually a decision by the courts to create preemption in the absence of an explicit
legislative directive.”
12
Preemption of a local government enactment is implied only where the
legislative scheme is so pervasive as to evidence an intent to preempt the particular area, and
strong public policy reasons exist for finding preemption.
13
Implied preemption is found where
the local legislation would present the danger of conflict with the state’s pervasive regulatory
scheme.
14
4
Section 189.012(6), F.S.
5
Id.
6
See Florida Department of Economic Opportunity, Introduction to Special Districts, https://floridajobs.org/community-
planning-and-development/special-districts/special-district-accountability-program/florida-special-district-handbook-
online/introduction-to-special-districts (last visited Mar. 5, 2021).
7
See James R. Wolf and Sarah Harley Bolinder, The Effectiveness of Home Rule: A Preemption and Conflict Analysis,
83 Fla. B.J. 92 (June 2009) available at https://www.floridabar.org/the-florida-bar-journal/the-effectiveness-of-home-rule-a-
preemption-and-conflict-analysis/ (last visited Mar. 5, 2021).
8
See City of Hollywood v. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County,
894 So.2d 1011, 1018 (Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So. 3d 309 (Fla.
2008).
9
Mulligan, 934 So. 2d at 1243.
10
Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010). Examples of activities “expressly
preempted to the state” include: operator use of commercial mobile radio services and electronic communications devices in
motor vehicles, s. 316.0075, F.S.; regulation of the use of cameras for enforcing provisions of the Florida Uniform Traffic
Control Law, s. 316.0076, F.S.; and, the adoption of standards and fines related to specified subject areas under the purview
of the Department of Agriculture and Consumer Services, s. 570.07, F.S.
11
See, e.g., Nat’l Rifle Ass’n of Am., Inc. v. City of S. Miami, 812 So. 2d 504 (Fla. 3d DCA 2002).
12
Phantom of Clearwater, Inc., 894 So. 2d at 1019.
13
Id.
14
Sarasota Alliance for Fair Elections, Inc., 28 So. 3d at 886. BILL: SB 1002 Page 3
Florida Public Service Commission
The Florida Public Service Commission (PSC) is an arm of the legislative branch of
government.
15
The role of the PSC is to ensure Florida’s consumers receive utility services,
including electric, natural gas, telephone, water, and wastewater, in a safe, affordable, and
reliable manner.
16
In order to do so, the PSC exercises authority over public utilities in one or
more of the following areas: rate base or economic regulation; competitive market oversight; and
monitoring of safety, reliability, and service issues.
17
Electric and Gas Utilities
The PSC monitors the safety and reliability of the electric power grid
18
and may order the
addition or repair of infrastructure as necessary.
19
The PSC has broad jurisdiction over the rates
and service of investor-owned electric and gas utilities
20
(called “public utilities” under
ch. 366, F.S.).
21
However, the PSC does not fully regulate municipal electric utilities (utilities
owned or operated on behalf of a municipality) or rural electric cooperatives. The PSC does have
jurisdiction over these types of utilities with regard to rate structure, territorial boundaries, bulk
power supply operations, and planning.
22
Municipally owned utility rates and revenues are
regulated by their respective local governments or local utility boards. Rates and revenues for a
cooperative utility are regulated by its governing body elected by the cooperative’s membership.
Municipal Electric and Gas Utilities, and Special Gas Districts, in Florida
A municipal electric or gas utility is an electric or gas utility owned and operated by a
municipality. Ch. 366, F.S., provides the majority of electric and gas utility regulations for
Florida. While ch. 366, F.S., does not provide a definition, per se, for a “municipal utility,”
variations of this terminology and the concept of these types of utilities appear throughout the
chapter. Currently, Florida has 33 municipal electric utilities that serve over 14 percent of the
state’s electric utility customers.
23
Florida also has 27 municipally owned gas utilities and four
special gas districts.
24
15
Section 350.001, F.S.
16
See Florida Public Service Commission, Florida Public Service Commission Homepage, http://www.psc.state.fl.us (last
visited Feb. 1, 2024).
17
Florida Public Service Commission, About the PSC, https://www.psc.state.fl.us/about (last visited Feb. 1, 2024).
18
Section 366.04(5) and (6), F.S.
19
Section 366.05(1) and (8), F.S.
20
Section 366.05, F.S.
21
Section 366.02(8), F.S.
22
Florida Public Service Commission, About the PSC, supra note 37.
23
Florida Municipal Electric Association, About Us, https://www.flpublicpower.com/about-us (last visited Feb. 1, 2024).
24
Florida Public Service Commission, 2023 Facts and Figures of the Florida Utility Industry, pg. 13, Apr. 2023 (available
at: https://www.floridapsc.com/pscfiles/website-
files/PDF/Publications/Reports/General/FactsAndFigures/April%202023.pdf). A “special gas district” is a dependent or
independent special district, setup pursuant to ch. 189, F.S., to provide natural gas service. Section 189.012(6), F.S., defines a
“special district” as “a unit of local government created for a special purpose, as opposed to a general purpose, which has
jurisdiction to operate within a limited geographic boundary and is created by general law, special act, local ordinance, or by
rule of the Governor and Cabinet.” BILL: SB 1002 Page 4
Preemption over Utility Service Restrictions
Section 366.032, F.S., provides that “a municipality, county, special district, development
district, or other political subdivision of the state may not enact or enforce a resolution,
ordinance, rule, code, or policy or take any action that restricts or prohibits or has the effect of
restricting or prohibiting the types or fuel sources of energy production which may be used,
delivered, converted, or supplied” by the following:
25
• Investor-owned electric utilities;
• Municipal electric utilities;
• Rural electric cooperatives;
• Entities formed by interlocal agreement to generate, sell, and transmit electrical energy;
• Investor-owned gas utilities;
• Gas districts;
• Municipal natural gas utilities;
• Natural gas transmission companies; and
• Category I liquefied petroleum gas dealers, category II liquefied petroleum gas dispensers, or
category III liquefied petroleum gas cylinder exchange operator as defined in s. 527.01, F.S.
Section 366.032(2), F.S., also prohibits (except to enforce the Florida Building Code and Florida
Fire Prevention Code) a municipality, county, special district, development district, or other
political subdivision of the state from restricting or prohibiting the use of an appliance using the
fuels or energy types used, delivered, converted, or supplied by the entities above.
The section also provides that it acts retroactively to any provision that existed before its
enactment in 2021.
III. Effect of Proposed Changes:
The bill amends s. 366.032, F.S., to expand the preemption over utility service restrictions to
include boards, agencies, commissions, and authorities of counties and municipal corporations.
Preempted entities cannot restrict or prohibit the types or fuel sources of energy produced, used,
delivered, converted, or supplied by certain utilities.
The bill nullifies any existing charter, resolution, ordinance, rule, code, or policy from the
included entities which conflict with this preemption and which existed before or on July 1,
2021.
The bill takes effect July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
25
To the extent of serving the customers they are authorized to serve. BILL: SB 1002 Page 5
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill may have an indeterminate effect on the private utilities sector to the extent that
it voids any restrictions or prohibitions imposed by preempted entities on the types or the
fuel sources of energy production which a utility may use, deliver, convert, or supply to
its customers.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 366.032 of the Florida Statutes. BILL: SB 1002 Page 6
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.