Read the full stored bill text
Florida Senate
-
2026
SB 1420
By
Senator DiCeglie
18-01330-26 20261420__
1 A bill to be entitled
2 An act relating to local utility revenues; creating
3 ss. 125.483 and 180.1901, F.S.; defining the term
4 “utility”; providing legislative intent; prohibiting
5 counties and municipalities, respectively, from
6 transferring for specified purposes revenues collected
7 from providing utility services; requiring counties
8 and municipalities, respectively, to reinvest such
9 revenues back into a utility for specified purposes;
10 requiring revenue surpluses to be returned to the
11 ratepayers; requiring county and municipal utilities,
12 respectively, to develop budget forecasts and
13 strategies that meet certain requirements; prohibiting
14 counties and municipalities, respectively, from
15 charging a higher rate or adding a surcharge to
16 certain customers; providing that violations may
17 subject a utility to the withholding of certain state
18 funds; amending s. 180.191, F.S.; deleting an
19 authorization for municipalities to add a surcharge to
20 certain customers outside the municipal boundaries;
21 providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 125.483, Florida Statutes, is created to
26 read:
27
125.483
County utility revenues
.—
28
(1)
As used in this section, the term “utility” includes
29
public entities providing
water, wastewater, stormwater,
30
electric, and gas utilities.
31
(2)
The Legislature intends for
a county that provides
32
utility services to its residents to provide such services in an
33
affordable, transparent, and reliable
manner that
protect
s
34
public health and this state’s natural resources.
35
(
3
)
Notwithstanding any law to the contrary, a
county that
36
generates revenue from providing
utility services to
customers
37
may not transfer
any revenues collected for providing
utility
38
services
to finance general government
al
functions or special
39
projects, to purchase bonds to finance general governmental
40
functions, or to lend money to finance general governmental
41
functions within the local government
which
are not for the
42
ongoing utility service or
a
part of the
utility
.
A revenue
43
s
urplus must be returned to the ratepayer
s. Such returns may
44
include
rebates, credits, or new appliances or services.
45
(
4
)
A county shall
reinvest
utility service
revenues
back
46
into the
utility
for
purposes of
operational integrity.
Such
47
i
nvestments may include building, maintaining, renovating, or
48
otherwise improving the infrastructure of its utility
49
facilities. The utility must
, every 5 years,
develop a budget
50
forecast and strategies that ensure continuous maintenance,
as
51
well as
strategic improvements to provide optimal service
52
performance at consistent rates. The budget forecast
and
53
strategies must a
nticipate increasing service demand due to
54
population growth and new commercial industries, expenditures on
55
advanced technologies, and costs incurred from damages and
56
complications arising from intensifying storms, floods, and
57
water shortages.
58
(
5
)
A county may
not charge
a
higher rate or add
a
59
surcharge to customers outside of jurisdictional boundaries
60
which is
greater than the actual costs of providing services at
61
locations more distal from central utility operations.
62
(
6
)
A violation of this section shall be cause for the
63
withholding from the county’s utility of any portion of any
64
state funds to which the utility may be entitled.
65 Section 2. Section 180.1901, Florida Statutes, is created
66 to read:
67
180.
1901
Municipal utility revenues
.—
68
(1)
As used in this section, the term “utility” includes
69
water, wastewater, stormwater, electric, and gas utilities.
70
(2)
The Legislature intends for
a municipality that
71
provides utility services to its residents to provide such
72
services in an
affordable, transparent, and reliable
manner that
73
protect
s
public health and this state’s natural resources.
74
(
3
)
Notwithstanding any law to the contrary, a
municipality
75
that generates revenue from providing
utility services to
76
customers may not transfer
any revenues collected for providing
77
utility services
to finance general government
al
functions or
78
special projects, to purchase bonds to finance general
79
governmental functions, or to lend money to finance general
80
governmental functions within the local government
which
are not
81
for the ongoing utility service or part of the
utility
.
A
82
revenue s
urplus must be returned to the ratepayer
s. Such returns
83
may include
rebates, credits, or new appliances or services.
84
(
4
)
A municipality shall
reinvest
utility service
revenues
85
back
into the
utility
for
purposes of
operational integrity.
86
Such i
nvestments may include building, maintaining, renovating,
87
or otherwise improving the infrastructure of its utility
88
facilities. The utility must
, every 5 years,
develop a budget
89
forecast and strategies that ensure continuous maintenance,
as
90
well as
strategic improvements to provide optimal service
91
performance at consistent rates. The budget forecast
and
92
strategies must a
nticipate increasing service demand due to
93
population growth and new commercial industries, expenditures on
94
advanced technologies, and costs incurred from damages and
95
complications arising from intensifying storms, floods, and
96
water shortages.
97
(
5
)
A municipality may
not charge
a
higher rate or add
a
98
surcharge to customers outside of jurisdictional boundaries
99
which is
greater than the actual costs of providing services at
100
locations more distal from central utility operations.
101
(
6
)
A violation of this section shall be cause for the
102
withholding from the municipality’s utility of any portion of
103
any state funds to which the utility may be entitled.
104 Section 3. Subsection (1) of section 180.191, Florida
105 Statutes, is amended to read:
106 180.191 Limitation on rates charged consumer outside city
107 limits.—
108 (1) Any municipality within
this
the
state operating a
109 water or sewer utility outside of the boundaries of such
110 municipality shall charge consumers outside the boundaries
111 rates, fees, and charges determined in one of the following
112 manners:
113 (a) It may charge the same rates, fees, and charges as
114 consumers inside the municipal boundaries.
However, in addition
115
thereto, the municipality may add a surcharge of not more than
116
25 percent of such rates, fees, and charges to consumers outside
117
the boundaries.
Fixing of such rates, fees, and charges in this
118 manner
may
shall
not require a public hearing except as may be
119 provided for service to consumers inside the municipality.
120 (b) It may charge rates, fees, and charges that are just
121 and equitable and which are based on the same factors used in
122 fixing the rates, fees, and charges for consumers inside the
123 municipal boundaries.
In addition thereto, the municipality may
124
add a surcharge not to exceed 25 percent of such rates, fees,
125
and charges for said services to consumers outside the
126
boundaries. However, the total of all
Such rates, fees, and
127 charges for the services to consumers outside the boundaries
may
128
shall
not be more than 50 percent in excess of the
rates, fees,
129
and charges
total amount
the municipality charges consumers
130 served within the municipality for corresponding service.
No
131 Such rates, fees, and charges
may not
shall
be fixed until after
132 a public hearing at which all of the users of the water or sewer
133 systems; owners, tenants, or occupants of property served or to
134 be served thereby; and all others interested shall have an
135 opportunity to be heard concerning the proposed rates, fees, and
136 charges. Any change or revision of such rates, fees, or charges
137 may be made in the same manner as such rates, fees, or charges
138 were originally established, but if such change or revision is
139 to be made substantially pro rata as to all classes of service,
140 both inside and outside the municipality, no hearing or notice
141 shall be required.
142 Section 4. This act shall take effect July 1, 2026.