S 1724

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
1A bill to be entitled
2An act relating to utility services; amending s.
3180.19, F.S.; requiring that a new agreement, or an
4extension, renewal, or material amendment of an
5existing agreement, to provide certain utility
6services at retail be in writing; requiring that
7certain public meetings be held as a condition
8precedent to the effectiveness of a new or extended
9agreement under which a municipality will provide
10specified utility services in other municipalities or
11unincorporated areas; specifying requirements for such
12public meetings; requiring rates, fees, and charges
13imposed for water or sewer utility services to comply
14with specified provisions; requiring a representative
15from certain municipalities to annually conduct public
16customer meetings; providing requirements for such
17meetings; defining the terms “appointed
18representative” and “governing body”; amending s.
19180.191, F.S.; revising provisions relating to
20permissible rates, fees, and charges imposed by
21municipal water and sewer utilities on consumers
22located outside the municipal boundaries; authorizing
23a municipality to continue to impose a surcharge on
24certain consumers for a specified purpose; requiring
25the phase-out of such surcharges upon retirement,
26expiration, or refinancing of the applicable debt
27obligation; creating s. 180.192, F.S.; requiring
28municipalities that provide specified utility services
29to report certain information by a specified date, and
30annually thereafter, to the Florida Public Service
31Commission; requiring the commission to compile such
32information and submit a report by a specified date,
33and annually thereafter, to the Governor and the
34Legislature; authorizing commission jurisdiction over
35specified utilities; providing construction; providing
36effective dates.
37
38Be It Enacted by the Legislature of the State of Florida:
39
40Section 1. Subsection (3) is added to section 180.19,
41Florida Statutes, to read:
42180.19 Use by other municipalities and by individuals
43outside corporate limits.—
44(3)(a)A new agreement, or an extension, renewal, or
45material amendment of an existing agreement, to provide
46electric, water, natural gas, or sewer utility service at retail
47pursuant to subsection (1) must be in writing. Such agreement
48may not become effective before an appointed representative of
49the municipality that provides the service or intends to provide
50the service, in conjunction with the governing body of each
51municipality and unincorporated area served or to be served, has
52participated in a public meeting. Such meeting is not required
53to be a separate public meeting, but it must be held within each
54municipality and unincorporated area served or to be served for
55purposes of providing information and soliciting public input
56on:
571.The nature of the services to be provided or changes to
58the services being provided;
592.The rates, fees, and charges to be imposed for the
60services provided or intended to be provided, including any
61differential with the rates, fees, and charges imposed for the
62same services on customers located within the boundaries of the
63serving municipality, the basis for the differential, and the
64length of time that the differential is expected to exist;
653.The extent to which revenues generated from the
66provision of the services will be used to fund or finance
67nonutility government functions or services; and
684.Any other matter deemed relevant by the parties to the
69agreement.
70(b)Rates, fees, and charges imposed for water or sewer
71utility services provided pursuant to subsection (1) must comply
72with s. 180.191.
73(c)A representative of each municipality that provides
74electric, water, natural gas, or sewer utility services pursuant
75to subsection (1), in conjunction with the governing body of
76each municipality and unincorporated area in which it provides
77services, shall annually conduct a public customer meeting. Such
78meeting is not required to be a separate public meeting, but
79must be held within each municipality and unincorporated area
80for purposes of soliciting public input on utility-related
81matters, including fees, rates, charges, and services.
82(d)As used in this subsection, the term:
831.“Appointed representative” means an executive-level
84leadership employee of a municipality, or of such municipality’s
85related and separate utility authority, board, or commission,
86specifically appointed by the governing body to serve as its
87representative for the purposes of this subsection.
882.“Governing body” means a:
89a.Governing body of a municipality in which services are
90provided or proposed to be extended; or
91b.Board of county commissioners of a county in which
92services are provided or proposed to be extended, if services
93are provided or proposed to be extended in an unincorporated
94area within the county.
95Section 2. Subsection (1) of section 180.191, Florida
96Statutes, is amended to read:
97180.191 Limitation on rates charged consumer outside city
98limits.—
99(1) Any municipality within this [the] state operating a
100water or sewer utility outside of the boundaries of such
101municipality shall charge consumers outside the boundaries
102rates, fees, and charges determined in one of the following
103manners:
104(a) It may charge the same rates, fees, and charges as
105consumers 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
109manner may [shall] not require a public hearing except as may be
110provided for service to consumers inside the municipality.
111(b) It may charge rates, fees, and charges that are just
112and equitable and which are based on the same factors used in
113fixing the rates, fees, and charges for consumers inside the
114municipal 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
118charges for the services to consumers outside the boundaries may
119[shall] not be more than 25 [50] percent in excess of the rates,
120fees, and charges [total amount] the municipality charges
121consumers served within the municipality for corresponding
122service. [No] Such rates, fees, and charges may not [shall] be fixed
123until after a public hearing at which all of the users of the
124water or sewer systems; owners, tenants, or occupants of
125property served or to be served thereby; and all others
126interested shall have an opportunity to be heard concerning the
127proposed rates, fees, and charges. Any change or revision of
128such rates, fees, or charges may be made in the same manner as
129such rates, fees, or charges were originally established, but if
130such change or revision is to be made substantially pro rata as
131to all classes of service, both inside and outside the
132municipality, no hearing or notice shall be required.
133(c)Notwithstanding paragraphs (a) and (b), a municipality
134may continue to impose a surcharge on consumers outside the
135municipal boundaries only to the extent necessary to comply with
136the terms of bond covenants in effect as of July 1, 2024. Such
137surcharges must be phased out upon retirement, expiration, or
138refinancing of the applicable debt obligation.
139Section 3. Effective July 1, 2027, section 180.192, Florida
140Statutes, is created to read:
141180.192Reporting requirements related to municipal utility
142service.—
143(1)By January 1, 2028, and annually thereafter, each
144municipality that provides electric, water, natural gas, or
145sewer utility services outside of its municipal boundaries shall
146provide a report to the Florida Public Service Commission which
147identifies, for each type of utility service provided by the
148municipality:
149(a)The number and percentage of customers that receive
150utility services provided by the municipality at a location
151outside the boundaries of the municipality;
152(b)The volume and percentage of sales made to such
153customers, and the gross revenues generated from such sales; and
154(c)Whether the rates, fees, and charges imposed on
155customers that receive services at a location outside the
156municipality’s boundaries are different than the rates, fees,
157and charges imposed on customers within the boundaries of the
158municipality, and, if so, the amount and percentage of the
159differential.
160(2)By March 31, 2028, and annually thereafter, the
161commission shall compile the information provided pursuant to
162subsection (1) and submit a report containing that information
163to the Governor, the President of the Senate, and the Speaker of
164the House of Representatives.
165(3)Notwithstanding s. 367.171, the commission shall have
166jurisdiction over all utilities identified in subsection (1) for
167the limited purpose of enforcing the requirements of this
168section. This section does not otherwise modify or extend the
169authority of the commission provided by law with respect to any
170municipal utility that is required to comply with subsection
171(1).
172Section 4. Except as otherwise expressly provided in this
173act, this act shall take effect July 1, 2026.