THE BILL ITSELF
SB 1420
Local Utility Revenues
Florida Senate - 2026 SB 1420 By Senator DiCeglie 18-01330-26 20261420__
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A bill to be entitled
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An act relating to local utility revenues; creating
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ss. 125.483 and 180.1901, F.S.; defining the term
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“utility”; providing legislative intent; prohibiting
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counties and municipalities, respectively, from
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transferring for specified purposes revenues collected
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from providing utility services; requiring counties
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and municipalities, respectively, to reinvest such
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revenues back into a utility for specified purposes;
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requiring revenue surpluses to be returned to the
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ratepayers; requiring county and municipal utilities,
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respectively, to develop budget forecasts and
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strategies that meet certain requirements; prohibiting
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counties and municipalities, respectively, from
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charging a higher rate or adding a surcharge to
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certain customers; providing that violations may
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subject a utility to the withholding of certain state
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funds; amending s. 180.191, F.S.; deleting an
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authorization for municipalities to add a surcharge to
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certain customers outside the municipal boundaries;
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providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 125.483, Florida Statutes, is created to
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read:
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125.483 County utility revenues.—
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(1) As used in this section, the term “utility” includes
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public entities providing water, wastewater, stormwater,
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electric, and gas utilities.
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(2) The Legislature intends for a county that provides
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utility services to its residents to provide such services in an
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affordable, transparent, and reliable manner that protects
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public health and this state’s natural resources.
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(3) Notwithstanding any law to the contrary, a county that
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generates revenue from providing utility services to customers
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may not transfer any revenues collected for providing utility
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services to finance general governmental functions or special
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projects, to purchase bonds to finance general governmental
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functions, or to lend money to finance general governmental
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functions within the local government which are not for the
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ongoing utility service or a part of the utility. A revenue
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surplus must be returned to the ratepayers. Such returns may
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include rebates, credits, or new appliances or services.
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(4) A county shall reinvest utility service revenues back
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into the utility for purposes of operational integrity. Such
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investments may include building, maintaining, renovating, or
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otherwise improving the infrastructure of its utility
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facilities. The utility must, every 5 years, develop a budget
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forecast and strategies that ensure continuous maintenance, as
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well as strategic improvements to provide optimal service
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performance at consistent rates. The budget forecast and
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strategies must anticipate increasing service demand due to
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population growth and new commercial industries, expenditures on
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advanced technologies, and costs incurred from damages and
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complications arising from intensifying storms, floods, and
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water shortages.
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(5) A county may not charge a higher rate or add a
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surcharge to customers outside of jurisdictional boundaries
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which is greater than the actual costs of providing services at
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locations more distal from central utility operations.
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(6) A violation of this section shall be cause for the
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withholding from the county’s utility of any portion of any
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state funds to which the utility may be entitled.
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Section 2. Section 180.1901, Florida Statutes, is created
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to read:
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180.1901 Municipal utility revenues.—
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(1) As used in this section, the term “utility” includes
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water, wastewater, stormwater, electric, and gas utilities.
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(2) The Legislature intends for a municipality that
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provides utility services to its residents to provide such
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services in an affordable, transparent, and reliable manner that
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protects public health and this state’s natural resources.
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(3) Notwithstanding any law to the contrary, a municipality
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that generates revenue from providing utility services to
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customers may not transfer any revenues collected for providing
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utility services to finance general governmental functions or
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special projects, to purchase bonds to finance general
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governmental functions, or to lend money to finance general
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governmental functions within the local government which are not
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for the ongoing utility service or part of the utility. A
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revenue surplus must be returned to the ratepayers. Such returns
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may include rebates, credits, or new appliances or services.
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(4) A municipality shall reinvest utility service revenues
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back into the utility for purposes of operational integrity.
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Such investments may include building, maintaining, renovating,
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or otherwise improving the infrastructure of its utility
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facilities. The utility must, every 5 years, develop a budget
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forecast and strategies that ensure continuous maintenance, as
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well as strategic improvements to provide optimal service
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performance at consistent rates. The budget forecast and
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strategies must anticipate increasing service demand due to
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population growth and new commercial industries, expenditures on
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advanced technologies, and costs incurred from damages and
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complications arising from intensifying storms, floods, and
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water shortages.
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(5) A municipality may not charge a higher rate or add a
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surcharge to customers outside of jurisdictional boundaries
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which is greater than the actual costs of providing services at
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locations more distal from central utility operations.
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(6) A violation of this section shall be cause for the
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withholding from the municipality’s utility of any portion of
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any state funds to which the utility may be entitled.
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Section 3. Subsection (1) of section 180.191, Florida
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Statutes, is amended to read:
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180.191 Limitation on rates charged consumer outside city
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limits.—
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(1) Any municipality within this the state operating a
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water or sewer utility outside of the boundaries of such
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municipality shall charge consumers outside the boundaries
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rates, fees, and charges determined in one of the following
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manners:
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(a) It may charge the same rates, fees, and charges as
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consumers inside the municipal boundaries. However, in addition
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thereto, the municipality may add a surcharge of not more than
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25 percent of such rates, fees, and charges to consumers outside
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the boundaries. Fixing of such rates, fees, and charges in this
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manner may shall not require a public hearing except as may be
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provided for service to consumers inside the municipality.
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(b) It may charge rates, fees, and charges that are just
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and equitable and which are based on the same factors used in
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fixing the rates, fees, and charges for consumers inside the
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municipal boundaries. In addition thereto, the municipality may
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add a surcharge not to exceed 25 percent of such rates, fees,
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and charges for said services to consumers outside the
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boundaries. However, the total of all Such rates, fees, and
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charges for the services to consumers outside the boundaries may
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shall not be more than 50 percent in excess of the rates, fees,
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and charges total amount the municipality charges consumers
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served within the municipality for corresponding service. No
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Such rates, fees, and charges may not shall be fixed until after
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a public hearing at which all of the users of the water or sewer
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systems; owners, tenants, or occupants of property served or to
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be served thereby; and all others interested shall have an
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opportunity to be heard concerning the proposed rates, fees, and
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charges. Any change or revision of such rates, fees, or charges
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may be made in the same manner as such rates, fees, or charges
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were originally established, but if such change or revision is
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to be made substantially pro rata as to all classes of service,
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both inside and outside the municipality, no hearing or notice
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shall be required.
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Section 4. This act shall take effect July 1, 2026.