Read the full stored bill text
Florida Senate
-
2026
CS for CS for SB 1724
By
the Committees on Community Affairs; and Regulated
Industries; and Senator Martin
578-02732-26 20261724c2
1 A bill to be entitled
2 An act relating to utility services; amending s.
3 180.19, F.S.; requiring that a new agreement, or an
4 extension, renewal, or material amendment of an
5 existing agreement, to provide certain utility
6 services at retail be in writing; requiring that
7 certain public meetings be held as a condition
8 precedent to the effectiveness of a new or extended
9 agreement under which a municipality will provide
10 specified utility services in other municipalities or
11 unincorporated areas; specifying requirements for such
12 public meetings; requiring rates, fees, and charges
13 imposed for water or sewer utility services to comply
14 with specified provisions; requiring a representative
15 from certain municipalities to annually conduct public
16 customer meetings; providing requirements for such
17 meetings; defining the terms “appointed
18 representative” and “governing body”; amending s.
19 180.191, F.S.; revising provisions relating to
20 permissible rates, fees, and charges imposed by
21 municipal water and sewer utilities on consumers
22 located outside the municipal boundaries; authorizing
23 a municipality to continue to impose a surcharge on
24 certain consumers for a specified purpose; requiring
25 the phase-out of such surcharges upon retirement,
26 expiration, or refinancing of the applicable debt
27 obligation; creating s. 180.192, F.S.; requiring
28 municipalities that provide specified utility services
29 to report certain information by a specified date, and
30 annually thereafter, to the Florida Public Service
31 Commission; requiring the commission to compile such
32 information and submit a report by a specified date,
33 and annually thereafter, to the Governor and the
34 Legislature; authorizing commission jurisdiction over
35 specified utilities; providing construction; providing
36 effective dates.
37
38 Be It Enacted by the Legislature of the State of Florida:
39
40 Section 1. Subsection (3) is added to section 180.19,
41 Florida Statutes, to read:
42 180.19 Use by other municipalities and by individuals
43 outside corporate limits.—
44
(3)(a)
A new agreement, or an extension, renewal, or
45
material amendment of an existing agreement, to provide
46
electric, water, natural gas, or sewer utility service at retail
47
pursuant to subsection (1) must be in writing. Such agreement
48
may not become effective before an appointed representative of
49
the municipality that provides the service or intends to provide
50
the service, in conjunction with the governing body of each
51
municipality and unincorporated area served or to be served, has
52
participated in a public meeting. Such meeting is not required
53
to be a separate public meeting, but it must be held within each
54
municipality and unincorporated area served or to be served for
55
purposes of providing information and soliciting public input
56
on:
57
1.
The nature of the services to be provided or changes to
58
the services being provided;
59
2.
The rates, fees, and charges to be imposed for the
60
services provided or intended to be provided, including any
61
differential with the rates, fees, and charges imposed for the
62
same services on customers located within the boundaries of the
63
serving municipality, the basis for the differential, and the
64
length of time that the differential is expected to exist;
65
3.
The extent to which revenues generated from the
66
provision of the services will be used to fund or finance
67
nonutility government functions or services; and
68
4.
Any other matter deemed relevant by the parties to the
69
agreement.
70
(b)
Rates, fees, and charges imposed for water or sewer
71
utility services provided pursuant to subsection (1) must comply
72
with s. 180.191.
73
(c)
A representative of each municipality that provides
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electric, water, natural gas, or sewer utility services pursuant
75
to subsection (1), in conjunction with the governing body of
76
each municipality and unincorporated area in which it provides
77
services, shall annually conduct a public customer meeting. Such
78
meeting is not required to be a separate public meeting, but
79
must be held within each municipality and unincorporated area
80
for purposes of soliciting public input on utility-related
81
matters, including fees, rates, charges, and services.
82
(d)
As used in this subsection, the term:
83
1.
“Appointed representative” means an executive-level
84
leadership employee of a municipality, or of such municipality’s
85
related and separate utility authority, board, or commission,
86
specifically appointed by the governing body to serve as its
87
representative for the purposes of this subsection.
88
2.
“Governing body” means a:
89
a.
Governing body of a municipality in which services are
90
provided or proposed to be extended; or
91
b.
Board of county commissioners of a county in which
92
services are provided or proposed to be extended, if services
93
are provided or proposed to be extended in an unincorporated
94
area within the county.
95 Section 2. Subsection (1) of section 180.191, Florida
96 Statutes, is amended to read:
97 180.191 Limitation on rates charged consumer outside city
98 limits.—
99 (1) Any municipality within
this
the
state operating a
100 water or sewer utility outside of the boundaries of such
101 municipality shall charge consumers outside the boundaries
102 rates, fees, and charges determined in one of the following
103 manners:
104 (a) It may charge the same rates, fees, and charges as
105 consumers inside the municipal boundaries.
However, in addition
106
thereto, the municipality may add a surcharge of not more than
107
25 percent of such rates, fees, and charges to consumers outside
108
the boundaries.
Fixing of such rates, fees, and charges in this
109 manner
may
shall
not require a public hearing except as may be
110 provided for service to consumers inside the municipality.
111 (b) It may charge rates, fees, and charges that are just
112 and equitable and which are based on the same factors used in
113 fixing the rates, fees, and charges for consumers inside the
114 municipal boundaries.
In addition thereto, the municipality may
115
add a surcharge not to exceed 25 percent of such rates, fees,
116
and charges for said services to consumers outside the
117
boundaries. However, the total of all
Such rates, fees, and
118 charges for the services to consumers outside the boundaries
may
119
shall
not be more than
25
50
percent in excess of the
rates,
120
fees, and charges
total amount
the municipality charges
121 consumers served within the municipality for corresponding
122 service.
No
Such rates, fees, and charges
may not
shall
be fixed
123 until after a public hearing at which all of the users of the
124 water or sewer systems; owners, tenants, or occupants of
125 property served or to be served thereby; and all others
126 interested shall have an opportunity to be heard concerning the
127 proposed rates, fees, and charges. Any change or revision of
128 such rates, fees, or charges may be made in the same manner as
129 such rates, fees, or charges were originally established, but if
130 such change or revision is to be made substantially pro rata as
131 to all classes of service, both inside and outside the
132 municipality, no hearing or notice shall be required.
133
(c)
Notwithstanding paragraphs (a) and (b), a municipality
134
may continue to impose a surcharge on consumers outside the
135
municipal boundaries only to the extent necessary to comply with
136
the terms of bond covenants in effect as of July 1, 2024. Such
137
surcharges must be phased out upon retirement, expiration, or
138
refinancing of the applicable debt obligation.
139 Section 3. Effective July 1, 2027, section 180.192, Florida
140 Statutes, is created to read:
141
180.192
Reporting requirements related to municipal utility
142
service.—
143
(1)
By January 1, 2028, and annually thereafter, each
144
municipality that provides electric, water, natural gas, or
145
sewer utility services outside of its municipal boundaries shall
146
provide a report to the Florida Public Service Commission which
147
identifies, for each type of utility service provided by the
148
municipality:
149
(a)
The number and percentage of customers that receive
150
utility services provided by the municipality at a location
151
outside the boundaries of the municipality;
152
(b)
The volume and percentage of sales made to such
153
customers, and the gross revenues generated from such sales; and
154
(c)
Whether the rates, fees, and charges imposed on
155
customers that receive services at a location outside the
156
municipality’s boundaries are different than the rates, fees,
157
and charges imposed on customers within the boundaries of the
158
municipality, and, if so, the amount and percentage of the
159
differential.
160
(2)
By March 31, 2028, and annually thereafter, the
161
commission shall compile the information provided pursuant to
162
subsection (1) and submit a report containing that information
163
to the Governor, the President of the Senate, and the Speaker of
164
the House of Representatives.
165
(3)
Notwithstanding s.
367.171,
the commission shall have
166
jurisdiction over all utilities identified in subsection (1) for
167
the limited purpose of enforcing the requirements of this
168
section.
This section does not otherwise modify or extend the
169
authority of the commission provided by law with respect to any
170
municipal utility that is required to comply with subsection
171
(1).
172 Section 4. Except as otherwise expressly provided in this
173 act, this act shall take effect July 1, 2026.