THE BILL ITSELF
CS/CS/HB 1451
Utility Services
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An act relating to utility services; amending s.
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180.19, F.S.; requiring that a new agreement, or an
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extension, renewal, or material amendment of an
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existing agreement, made by a municipal utility to
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certain entities to provide certain utility services
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at retail be in writing; requiring that certain public
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meetings be held as a condition precedent to the
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effectiveness of a new or extended agreement under
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which a municipality will provide specified utility
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services in other municipalities or unincorporated
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areas; specifying requirements for such public
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meetings; requiring that rates, fees, and charges
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imposed for water or sewer utility services comply
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with specified provisions; requiring a representative
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from certain municipalities to annually conduct public
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customer meetings; providing requirements for such
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meetings; defining the terms "appointed
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representative" and "governing body"; amending s.
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180.191, F.S.; revising provisions relating to
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permissible rates, fees, and charges imposed by
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municipal water and sewer utilities on consumers
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located outside the municipal boundaries; authorizing
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a municipality to continue to impose a surcharge on
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certain consumers for a specified purpose; requiring
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the phase-out of such surcharges by the earlier of a
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specified date or the retirement, expiration, or
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refinancing of the applicable debt obligation;
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creating s. 180.192, F.S.; requiring municipalities
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that provide specified utility services to report
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certain information by a specified date, and annually
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thereafter, to the Florida Public Service Commission;
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providing requirements for such information; providing
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penalties; requiring the commission to compile such
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information and submit a report by a specified date,
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and annually thereafter, to the Governor and the
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Legislature; authorizing commission jurisdiction over
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specified utilities; providing construction;
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preempting to the state the subject of a regional
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utilities authority; providing a declaration of an
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important state interest; providing effective dates.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Subsection (3) is added to section 180.19,
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Florida Statutes, to read:
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180.19 Use by other municipalities and by individuals
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outside corporate limits.—
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(3)(a) A new agreement, or an extension, renewal, or
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material amendment of an existing agreement, to provide
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electric, water, natural gas, or sewer utility service by a
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municipality to any other municipality or the owners or
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association of owners of lots or lands outside of its corporate
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limits or within the limits of any other municipality at retail
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must be in writing. Such agreement may not become effective
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before an appointed representative of the municipality that
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provides the service or intends to provide the service, in
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conjunction with the governing body of each municipality and
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unincorporated area served or to be served, has participated in
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a public meeting. Such meeting is not required to be a separate
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public meeting, but it must be held within each municipality and
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unincorporated area served or to be served for purposes of
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providing information and soliciting public input on:
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1. The nature of the services to be provided or changes to
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the services being provided;
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2. The rates, fees, and charges to be imposed for the
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services provided or intended to be provided, including any
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differential with the rates, fees, and charges imposed for the
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same services on customers located within the boundaries of the
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serving municipality, the basis for the differential, and the
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length of time that the differential is expected to exist;
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3. The extent to which revenues generated from the
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provision of the services will be used to fund or finance
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nonutility government functions or services; and
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4. Any other matter deemed relevant by the parties to the
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agreement.
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(b) Rates, fees, and charges imposed for water or sewer
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utility services provided pursuant to subsection (1) must comply
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with s. 180.191.
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(c) A representative of each municipality that provides
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electric, water, natural gas, or sewer utility services pursuant
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to subsection (1), in conjunction with the governing body of
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each municipality and unincorporated area in which it provides
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services, shall annually conduct a public customer meeting. Such
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meeting is not required to be a separate public meeting, but
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must be held within each municipality and unincorporated area
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for purposes of soliciting public input on utility-related
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matters, including fees, rates, charges, and services.
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(d) As used in this subsection, the term:
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1. "Appointed representative" means an executive-level
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leadership employee of a municipality, or of such municipality's
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related and separate utility authority, board, or commission,
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specifically appointed by the governing body to serve as its
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representative for the purposes of this subsection.
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2. "Governing body" means:
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a. A governing body of a municipality in which services
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are provided or proposed to be extended; or
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b. A board of county commissioners of a county in which
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services are provided or proposed to be extended, if services
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are provided or proposed to be extended in an unincorporated
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area within the county.
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Section 2. 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 25 50 percent in excess of the rates,
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fees, and charges total amount the municipality charges
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consumers served within the municipality for corresponding
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service. No Such rates, fees, and charges may not shall be fixed
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until after a public hearing at which all of the users of the
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water or sewer systems; owners, tenants, or occupants of
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property served or to be served thereby; and all others
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interested shall have an opportunity to be heard concerning the
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proposed rates, fees, and charges. Any change or revision of
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such rates, fees, or charges may be made in the same manner as
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such rates, fees, or charges were originally established, but if
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such change or revision is to be made substantially pro rata as
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to all classes of service, both inside and outside the
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municipality, a no hearing or notice is not shall be required.
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(c) In addition to the rates, fees, and charges authorized
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under this section, a municipality may continue to impose a
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surcharge on consumers outside the municipal boundaries if the
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surcharge was in effect before March 1, 2026, but only to the
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extent necessary to comply with the terms of bond covenants in
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effect as of July 1, 2024. Such surcharges must be phased out by
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July 1, 2029, or upon the retirement, expiration, or refinancing
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of the applicable debt obligation, whichever occurs earlier.
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Section 3. Effective July 1, 2026, section 180.192,
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Florida Statutes, is created to read:
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180.192 Reporting requirements related to municipal
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utility service.—
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(1) By January 1, 2027, and annually thereafter, each
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municipality that provides electric, water, natural gas, or
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sewer utility services outside of its municipal boundaries shall
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provide a report to the Florida Public Service Commission which
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identifies, for each type of utility service provided by the
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municipality:
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(a) The number and percentage of customers that receive
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utility services provided by the municipality at a location
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outside the boundaries of the municipality;
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(b) The volume and percentage of sales made to such
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customers, and the gross revenues generated from such sales;
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(c) Whether the rates, fees, and charges imposed on
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customers that receive services at a location outside the
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municipality's boundaries are different than the rates, fees,
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and charges imposed on customers within the boundaries of the
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municipality, and, if so, the amount and percentage of the
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differential; and
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(d) The percentage of revenues generated from the
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provision of utility services that were used to fund or finance
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nonutility government functions or services of the municipality,
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and the percentage of the municipality's nonutility budget that
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was funded by such revenues.
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A municipality that fails to file the report required by this
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subsection is subject to the penalties provided in ss. 366.095
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and 367.161.
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(2) By March 31, 2027, and annually thereafter, the
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commission shall compile the information provided pursuant to
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subsection (1) and submit a report containing that information
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to the Governor, the President of the Senate, and the Speaker of
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the House of Representatives.
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(3) Notwithstanding s. 367.171, the commission shall have
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jurisdiction over all utilities identified in subsection (1) for
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the limited purpose of enforcing the requirements of this
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section. This section does not otherwise modify or extend the
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authority of the commission provided by law with respect to any
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municipal utility that is required to comply with subsection
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(1).
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Section 4. (1) The subject of a regional utilities
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authority created by the Legislature through charter amendment
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after January 1, 2023, is expressly preempted to the state.
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(2) This section shall take effect upon this act becoming
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a law.
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Section 5. The Legislature finds and declares that this
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act fulfills an important state interest.
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Section 6. Except as otherwise expressly provided in this
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act and except for this section, which shall take effect upon
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becoming a law, this act shall take effect July 1, 2027.