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HB0773 • 2026

Municipal Utilities

Municipal Utilities

Budget Elections Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Brackett
Last action
2026-03-13
Official status
House - Died in Economic Infrastructure Subcommittee
Effective date
2026-07-01

Plain English Breakdown

The bill's status indicates that it has passed both chambers but does not specify if or when it will be signed into law by the executive branch.

Municipal Utilities Earnings Transfer

This bill allows municipalities to transfer a portion of their public utility earnings to the general fund for specific purposes and requires certain disclosures in annual reports.

What This Bill Does

  • Allows cities to move money from their public utilities into the city's main budget, but only if approved by voters or local leaders.
  • Limits how much can be moved based on where customers are located within or outside the city.
  • Permits higher transfers during emergencies with a majority vote and requires repayment after three years.
  • Prohibits moving utility money for non-utility purposes like grants, impact fees, or debt proceeds.
  • Requires cities to report details about these transfers in their annual budget reports.

Who It Names or Affects

  • Municipalities and agencies that provide public utilities
  • Customers of those utilities

Terms To Know

Public Utility Earnings
Money earned from providing services like water, electricity, or gas to customers.
General Fund
The main budget of a city used for various expenses and projects.

Limits and Unknowns

  • This bill only applies if it becomes law by July 1, 2026.
  • It does not specify what happens if the transfer rules are broken.

Bill History

  1. 2026-03-13 House

    • Died in Economic Infrastructure Subcommittee

  2. 2026-01-13 House

    • 1st Reading (Original Filed Version)

  3. 2026-01-05 House

    • Referred to Economic Infrastructure Subcommittee • Referred to Intergovernmental Affairs Subcommittee • Referred to Commerce Committee • Now in Economic Infrastructure Subcommittee

  4. 2025-12-15 House

    • Filed

Official Summary Text

Municipal Utilities; Authorizes municipality to transfer portion of its public utility earnings to its general fund; requires that such percentages be established or reestablished by local referendum, subject to majority vote; provides exception to percentage restrictions in event of disaster or emergency; authorizes such percentages to be established by passage of resolution, by four-fifths vote; requires such percentages to be repaid to general fund within specified time period; prohibits municipality from transferring portion of its public utility earnings in certain instances; prohibits ability of municipality to receive certain state funds if such prohibited transfer is effected; requires specified disclosure in budget & financial report of municipality.

Current Bill Text

Read the full stored bill text
HB 773 2026

CODING: Words stricken are deletions; words underlined are additions.
hb773-00
Page 1 of 4
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; creating s. 2
366.16, F.S.; authorizing a municipality to transfer a 3
portion of its public utility earnings to its general 4
fund for specified purposes; setting forth the 5
percentages of such transfers based on whether the 6
public utilities are supplied to customers located 7
within or outside the municipality; requiring that 8
such percentages be established or reestablished by 9
local referendum, subject to majority vote; providing 10
an exception to percentage restrictions in the event 11
of a disaster or emergency; authorizing such 12
percentages to be established by passage of a 13
resolution, by four-fifths vote; requiring such 14
percentages to be repaid to the general fund within a 15
specified time period; prohibiting a municipality from 16
transferring a portion of its public utility earnings 17
in certain instances; prohibiting a municipality from 18
receiving certain state funds if such a prohibited 19
transfer is effected; requiring specified disclosure 20
in the budget and financial report of a municipality; 21
providing an effective date. 22
23
Be It Enacted by the Legislature of the State of Florida: 24
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

Section 1. Section 366.16, Florida Statutes, is created to 26
read: 27
366.16 Public utility earnings transfers by a 28
municipality; percentage of transfers; prohibition; disclosure 29
requirement.- 30
(1) A municipality or an agency thereof that is regulated 31
by this chapter pursuant to s. 366.04 may transfer a portion of 32
its public utility earnings to the general fund of the 33
municipality for public utility purposes. 34
(2) If the public utilities are supplied to customers 35
located within the municipality, the percentage of transfers 36
authorized by subsection (1) shall be in a fixed amount not to 37
exceed 10 percent of the municipality's or agency's general 38
fund. The amount shall be stated as a percentage of the 39
municipality's or agency's general fund that may be supported by 40
transfers. 41
(3) If the public utilities are supplied to customers 42
located outside the municipality, the percentage of transfers 43
authorized by subsection (1) shall be in a variable amount not 44
to exceed 10 percent of the municipality's or agency's general 45
fund. The amount shall be based on the percentage of customers 46
located outside the municipal boundaries and shall decrease as 47
the percentage of customers located outside the municipal 48
boundaries increases. 49
(4) The amount of percentage of transfers authorized by 50

HB 773 2026

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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

subsection (1) shall be established or reestablished by local 51
referendum, subject to a majority vote of customers located 52
within and outside a municipality voting in the referendum. 53
(5) The restriction of 10 percent in subsection (2) and 54
subsection (3) does not apply in the event of a disaster or 55
emergency such that a state of emergency is declared by the 56
Governor pursuant to chapter 252. In such instances, the 57
governing body of a municipality may, by passage of a resolution 58
by four-fifths vote, adopt the amount of percentage of 59
transfers. Any such amount of percentage of transfers adopted 60
that exceeds the restriction of 10 percent in subsection (2) and 61
subsection (3) shall be repaid to the general fund within 3 62
fiscal years. 63
(6) A municipality or an agency thereof that is regulated 64
by this chapter pursuant to s. 366.04 may not transfer a portion 65
of its public utility earnings to the general fund of the 66
municipality or agency thereof for nonpublic utility purposes, 67
including, but not limited to: 68
(a) Any restricted revenues. 69
(b) Grant funds designated for specific capital or 70
operational purposes. 71
(c) Any revenues from impact fees. 72
(d) Any proceeds from debt, including bonds, notes, or 73
loans. 74
75

HB 773 2026

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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 municipality that transfers a portion of its public utility 76
earnings to the general fund of the municipality for nonpublic 77
utility purposes may not receive state funds for infrastructure 78
projects under chapter 216. 79
(7) A municipality, or an agency thereof, that transfers a 80
portion of its public utility earnings to the general fund of 81
the municipality pursuant to this section shall disclose in its 82
annual budget and financial report: 83
(a) The amount of percentage of transfers. 84
(b) The percentage such amount represents of public 85
utility earnings. 86
(c) The purpose of and reason for the transfer. 87
Section 2. This act shall take effect July 1, 2026. 88