Florida Senate - 2023 COMMITTEE AMENDMENT Bill No. SB 1380 Ì943324ÈÎ943324 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Regulated Industries (Martin) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 166.201, Florida Statutes, is amended to 6 read: 7 166.201 Taxes and charges.— 8 (1) A municipality may raise, by taxation and licenses 9 authorized by the constitution or general law, or by user 10 charges or fees authorized by ordinance, amounts of money which 11 are necessary for the conduct of municipal government and may 12 enforce their receipt and collection in the manner prescribed by 13 ordinance not inconsistent with law. 14 (2)(a) A municipality that owns and operates an electric, 15 natural gas, water, or wastewater utility may fund or finance 16 general government functions using a portion of the revenues 17 generated from rates, fees, and charges for the provision of 18 such utility service. The portion of utility revenues that may 19 be used during a fiscal year to fund or finance general 20 government functions, after payment of all utility expenses, may 21 not exceed: 22 1. For revenues generated from electric utility operations, 23 a transfer rate equal to the amount derived by applying the 24 average of the midpoints of the rates of return on equity 25 approved by the Public Service Commission for each investor 26 owned electric utility in this state to the municipal electric 27 utility’s revenues. 28 2. For revenues generated from natural gas utility 29 operations, a transfer rate equal to the amount derived by 30 applying the average of the midpoints of the rates of return on 31 equity approved by the Public Service Commission for each 32 investor-owned natural gas utility in this state to the 33 municipal natural gas utility’s revenues. 34 3. For revenues generated from water or wastewater 35 operations, a transfer rate equal to the amount derived by 36 applying the rate of return on equity established by the Public 37 Service Commission under s. 367.081(4)(f) to the municipal water 38 or wastewater utility’s revenues. 39 (b) Except as provided in paragraph (c), the transfer rate 40 applied to municipal utility revenues under subparagraphs (a)1., 41 2., and 3. shall be reduced as follows: 42 1. If more than 15 percent of a municipal utility’s retail 43 customers, as measured by total meters served, are located 44 outside the municipal boundaries, by 150 basis points. 45 2. If more than 30 percent of a municipal utility’s retail 46 customers, as measured by total meters served, are located 47 outside the municipal boundaries, by 300 basis points. 48 3. If more than 45 percent of a municipal utility’s retail 49 customers, as measured by total meters served, are located 50 outside the municipal boundaries, by 450 basis points. 51 (c) The reductions specified in paragraph (b) do not apply 52 to a municipal utility service if the utility service is 53 governed by a utility authority board that, through the election 54 of voting members from outside the municipal boundaries, 55 provides for representation of retail customers located outside 56 the municipal boundaries approximately proportionate to the 57 percentage of such customers, as measured by total meters 58 served, that receive service from the utility. 59 Section 2. Subsection (1) of section 180.191, Florida 60 Statutes, is amended to read: 61 180.191 Limitation on rates charged consumer outside city 62 limits.— 63 (1) Any municipality within the state operating a water or 64 sewer utility outside of the boundaries of such municipality 65 shall charge consumers outside the boundaries rates, fees, and 66 charges determined in one of the following manners: 67 (a) It may charge the same rates, fees, and charges as 68 consumers inside the municipal boundaries.
However, in addition69 thereto, the municipality may add a surcharge of not more than70 25 percent of such rates, fees, and charges to consumers outside71 the boundaries.Fixing of such rates, fees, and charges in this 72 manner does shallnot require a public hearing except as may be 73 provided for service to consumers inside the municipality. 74 (b)1. It may charge rates, fees, and charges that are just 75 and equitable and that whichare based on the same factors used 76 in fixing the rates, fees, and charges for consumers inside the 77 municipal boundaries. In addition thereto, the municipality may78 add a surcharge not to exceed 25 percent of such rates, fees,79 and charges for said services to consumers outside the80 boundaries. However, the total of allSuch rates, fees, and 81 charges for the services to consumers outside the boundaries may 82 shallnot be more than 25 50percent greater than in excess of83 the total amount the municipality charges consumers served 84 within the municipality for corresponding service. NoSuch 85 rates, fees, and charges may not shallbe fixed until after a 86 public hearing at which all of the users of the water or sewer 87 systems; owners, tenants, or occupants of property served or to 88 be served thereby; and all others interested shallhave an 89 opportunity to be heard concerning the proposed rates, fees, and 90 charges. Any change or revision of such rates, fees, or charges 91 may be made in the same manner as such rates, fees, or charges 92 were originally established, but if such change or revision is 93 to be made substantially pro rata as to all classes of service, 94 both inside and outside the municipality, a nohearing or notice 95 is not shall berequired. 96 2. Any municipality within this state operating a water or 97 sewer utility that provides service to consumers within the 98 boundaries of a separate municipality through the use of a water 99 treatment plant or sewer treatment plant located within the 100 boundaries of that separate municipality may not charge 101 consumers in the separate municipality more than the rates, 102 fees, and charges imposed on consumers inside its own municipal 103 boundaries. 104 Section 3. This act shall take effect July 1, 2024. 105 106 ================= T I T L E A M E N D M E N T ================ 107 And the title is amended as follows: 108 Delete everything before the enacting clause 109 and insert: 110 A bill to be entitled 111 An act relating to municipal utilities; amending s. 112 166.201, F.S.; authorizing certain municipalities to 113 fund or finance general government functions with a 114 specified portion of revenues from certain utility 115 operations; establishing limits on utility revenue 116 transfers for municipal utilities that serve customers 117 located outside the municipal boundaries; amending s. 118 180.191, F.S.; modifying provisions relating to 119 permissible rates, fees, and charges imposed by 120 municipal water and sewer utilities on customers 121 located outside the municipal boundaries; providing an 122 effective date.