SESSION WATCH
Died SENATE · SESSION 2026

No. SB 1188

Municipal Water and Sewer Utility Rates
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SPONSOR
Grall
FILED BY
Erin Grall — District 29, Republican [search donations]
EFFECTIVE
7/1/2026
DIED IN
Regulated Industries

Filed under Local Government.

PROVIDED SUMMARY

Municipal Water and Sewer Utility Rates; Requiring a municipality to charge customers receiving its utility services in another municipality the same rates, fees, and charges as it charges consumers within its own municipal boundaries under certain circumstances, etc.

Full bill text →

Plain English Summary

AI-GENERATED
Requires equal water and sewer rates for recipient-municipality customers.

A municipality whose water or sewer utility serves customers in another 'recipient municipality' must charge them the same rates, fees, and charges as its own in-city customers, with no surcharge allowed.

For other extraterritorial customers not in a recipient municipality, the existing rules still apply: a city may mirror its in-city rate, or charge a 'just and equitable' rate with up to a 25 percent surcharge, capped at 50 percent combined.

Both surcharge options are now explicitly subject to the new recipient-municipality rule, so a city cannot use either one to charge a surcharge to a recipient municipality's customers.

KEY PROVISIONS
§ 1 Mandatory equal rates for recipient-municipality customers majors. 180.191

AIA municipality whose water or sewer utility serves customers in another 'recipient municipality' must charge them the same rates, fees, and charges it charges its own in-city customers.

“shall charge consumers in the recipient municipality the same rates, fees, and charges as it does the consumers inside its own municipal boundaries” bill text, line 57 →
§ 2 Surcharge options made subordinate to the new rule majors. 180.191

AIBoth the mirror-rate method's 25 percent surcharge and the equitable-rate method's 25/50 percent surcharge are now expressly written to give way whenever the new recipient-municipality rule applies, so neither can be used to surcharge those customers.

“except as provided in subsection (2)” bill text, line 28 →
§ 3 Surcharge on non-recipient extraterritorial customers preserved moderates. 180.191

AICustomers outside a municipality's boundaries who are not in a recipient municipality remain subject to the unchanged surcharge structure, including the equitable-rate method's added charge of up to 25 percent.

“the municipality may add a surcharge not to exceed 25 percent of such rates, fees, and charges for services to consumers outside the municipal boundaries” bill text, line 36 →
TIMELINE
3/13/2026
Died in Regulated Industries
1/13/2026
Introduced
1/12/2026
Referred to Regulated Industries; Community Affairs; Rules
1/6/2026
Filed
STATUTES IT CHANGES
s. 180.191
+74 / −11
s. 180.191
+0 / −0