THE BILL ITSELF
HB 773
Municipal Utilities
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A bill to be entitled
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An act relating to municipal utilities; creating s.
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366.16, F.S.; authorizing a municipality to transfer a
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portion of its public utility earnings to its general
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fund for specified purposes; setting forth the
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percentages of such transfers based on whether the
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public utilities are supplied to customers located
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within or outside the municipality; requiring that
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such percentages be established or reestablished by
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local referendum, subject to majority vote; providing
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an exception to percentage restrictions in the event
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of a disaster or emergency; authorizing such
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percentages to be established by passage of a
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resolution, by four-fifths vote; requiring such
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percentages to be repaid to the general fund within a
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specified time period; prohibiting a municipality from
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transferring a portion of its public utility earnings
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in certain instances; prohibiting a municipality from
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receiving certain state funds if such a prohibited
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transfer is effected; requiring specified disclosure
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in the budget and financial report of a municipality;
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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 366.16, Florida Statutes, is created to
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read:
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366.16 Public utility earnings transfers by a
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municipality; percentage of transfers; prohibition; disclosure
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requirement.-
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(1) A municipality or an agency thereof that is regulated
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by this chapter pursuant to s. 366.04 may transfer a portion of
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its public utility earnings to the general fund of the
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municipality for public utility purposes.
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(2) If the public utilities are supplied to customers
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located within the municipality, the percentage of transfers
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authorized by subsection (1) shall be in a fixed amount not to
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exceed 10 percent of the municipality's or agency's general
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fund. The amount shall be stated as a percentage of the
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municipality's or agency's general fund that may be supported by
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transfers.
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(3) If the public utilities are supplied to customers
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located outside the municipality, the percentage of transfers
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authorized by subsection (1) shall be in a variable amount not
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to exceed 10 percent of the municipality's or agency's general
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fund. The amount shall be based on the percentage of customers
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located outside the municipal boundaries and shall decrease as
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the percentage of customers located outside the municipal
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boundaries increases.
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(4) The amount of percentage of transfers authorized by
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subsection (1) shall be established or reestablished by local
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referendum, subject to a majority vote of customers located
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within and outside a municipality voting in the referendum.
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(5) The restriction of 10 percent in subsection (2) and
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subsection (3) does not apply in the event of a disaster or
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emergency such that a state of emergency is declared by the
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Governor pursuant to chapter 252. In such instances, the
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governing body of a municipality may, by passage of a resolution
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by four-fifths vote, adopt the amount of percentage of
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transfers. Any such amount of percentage of transfers adopted
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that exceeds the restriction of 10 percent in subsection (2) and
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subsection (3) shall be repaid to the general fund within 3
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fiscal years.
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(6) A municipality or an agency thereof that is regulated
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by this chapter pursuant to s. 366.04 may not transfer a portion
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of its public utility earnings to the general fund of the
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municipality or agency thereof for nonpublic utility purposes,
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including, but not limited to:
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(a) Any restricted revenues.
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(b) Grant funds designated for specific capital or
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operational purposes.
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(c) Any revenues from impact fees.
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(d) Any proceeds from debt, including bonds, notes, or
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loans.
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A municipality that transfers a portion of its public utility
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earnings to the general fund of the municipality for nonpublic
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utility purposes may not receive state funds for infrastructure
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projects under chapter 216.
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(7) A municipality, or an agency thereof, that transfers a
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portion of its public utility earnings to the general fund of
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the municipality pursuant to this section shall disclose in its
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annual budget and financial report:
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(a) The amount of percentage of transfers.
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(b) The percentage such amount represents of public
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utility earnings.
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(c) The purpose of and reason for the transfer.
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Section 2. This act shall take effect July 1, 2026.