S 1420

Florida Senate - 2026  SB 1420
By Senator DiCeglie
18-01330-26  20261420__
1A bill to be entitled
2An act relating to local utility revenues; creating
3ss. 125.483 and 180.1901, F.S.; defining the term
4“utility”; providing legislative intent; prohibiting
5counties and municipalities, respectively, from
6transferring for specified purposes revenues collected
7from providing utility services; requiring counties
8and municipalities, respectively, to reinvest such
9revenues back into a utility for specified purposes;
10requiring revenue surpluses to be returned to the
11ratepayers; requiring county and municipal utilities,
12respectively, to develop budget forecasts and
13strategies that meet certain requirements; prohibiting
14counties and municipalities, respectively, from
15charging a higher rate or adding a surcharge to
16certain customers; providing that violations may
17subject a utility to the withholding of certain state
18funds; amending s. 180.191, F.S.; deleting an
19authorization for municipalities to add a surcharge to
20certain customers outside the municipal boundaries;
21providing an effective date.
22
23Be It Enacted by the Legislature of the State of Florida:
24
25Section 1. Section 125.483, Florida Statutes, is created to
26read:
27125.483 County utility revenues.—
28(1)As used in this section, the term “utility” includes
29public entities providing water, wastewater, stormwater,
30electric, and gas utilities.
31(2)The Legislature intends for a county that provides
32utility services to its residents to provide such services in an
33affordable, transparent, and reliable manner that protects
34public health and this state’s natural resources.
35(3)Notwithstanding any law to the contrary, a county that
36generates revenue from providing utility services to customers
37may not transfer any revenues collected for providing utility
38services to finance general governmental functions or special
39projects, to purchase bonds to finance general governmental
40functions, or to lend money to finance general governmental
41functions within the local government which are not for the
42ongoing utility service or a part of the utility. A revenue
43surplus must be returned to the ratepayers. Such returns may
44include rebates, credits, or new appliances or services.
45(4)A county shall reinvest utility service revenues back
46into the utility for purposes of operational integrity. Such
47investments may include building, maintaining, renovating, or
48otherwise improving the infrastructure of its utility
49facilities. The utility must, every 5 years, develop a budget
50forecast and strategies that ensure continuous maintenance, as
51well as strategic improvements to provide optimal service
52performance at consistent rates. The budget forecast and
53strategies must anticipate increasing service demand due to
54population growth and new commercial industries, expenditures on
55advanced technologies, and costs incurred from damages and
56complications arising from intensifying storms, floods, and
57water shortages.
58(5)A county may not charge a higher rate or add a
59surcharge to customers outside of jurisdictional boundaries
60which is greater than the actual costs of providing services at
61locations more distal from central utility operations.
62(6)A violation of this section shall be cause for the
63withholding from the county’s utility of any portion of any
64state funds to which the utility may be entitled.
65Section 2. Section 180.1901, Florida Statutes, is created
66to read:
67180.1901Municipal utility revenues.—
68(1)As used in this section, the term “utility” includes
69water, wastewater, stormwater, electric, and gas utilities.
70(2)The Legislature intends for a municipality that
71provides utility services to its residents to provide such
72services in an affordable, transparent, and reliable manner that
73protects public health and this state’s natural resources.
74(3)Notwithstanding any law to the contrary, a municipality
75that generates revenue from providing utility services to
76customers may not transfer any revenues collected for providing
77utility services to finance general governmental functions or
78special projects, to purchase bonds to finance general
79governmental functions, or to lend money to finance general
80governmental functions within the local government which are not
81for the ongoing utility service or part of the utility. A
82revenue surplus must be returned to the ratepayers. Such returns
83may include rebates, credits, or new appliances or services.
84(4)A municipality shall reinvest utility service revenues
85back into the utility for purposes of operational integrity.
86Such investments may include building, maintaining, renovating,
87or otherwise improving the infrastructure of its utility
88facilities. The utility must, every 5 years, develop a budget
89forecast and strategies that ensure continuous maintenance, as
90well as strategic improvements to provide optimal service
91performance at consistent rates. The budget forecast and
92strategies must anticipate increasing service demand due to
93population growth and new commercial industries, expenditures on
94advanced technologies, and costs incurred from damages and
95complications arising from intensifying storms, floods, and
96water shortages.
97(5)A municipality may not charge a higher rate or add a
98surcharge to customers outside of jurisdictional boundaries
99which is greater than the actual costs of providing services at
100locations more distal from central utility operations.
101(6)A violation of this section shall be cause for the
102withholding from the municipality’s utility of any portion of
103any state funds to which the utility may be entitled.
104Section 3. Subsection (1) of section 180.191, Florida
105Statutes, is amended to read:
106180.191 Limitation on rates charged consumer outside city
107limits.—
108(1) Any municipality within this [the] state operating a
109water or sewer utility outside of the boundaries of such
110municipality shall charge consumers outside the boundaries
111rates, fees, and charges determined in one of the following
112manners:
113(a) It may charge the same rates, fees, and charges as
114consumers 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
118manner may [shall] not require a public hearing except as may be
119provided for service to consumers inside the municipality.
120(b) It may charge rates, fees, and charges that are just
121and equitable and which are based on the same factors used in
122fixing the rates, fees, and charges for consumers inside the
123municipal 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
127charges for the services to consumers outside the boundaries may
128[shall] not be more than 50 percent in excess of the rates, fees,
129and charges [total amount] the municipality charges consumers
130served within the municipality for corresponding service. [No]
131Such rates, fees, and charges may not [shall] be fixed until after
132a public hearing at which all of the users of the water or sewer
133systems; owners, tenants, or occupants of property served or to
134be served thereby; and all others interested shall have an
135opportunity to be heard concerning the proposed rates, fees, and
136charges. Any change or revision of such rates, fees, or charges
137may be made in the same manner as such rates, fees, or charges
138were originally established, but if such change or revision is
139to be made substantially pro rata as to all classes of service,
140both inside and outside the municipality, no hearing or notice
141shall be required.
142Section 4. This act shall take effect July 1, 2026.