Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 1380
       
       
       
       
       
       
                                Ì943324ÈÎ943324                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: TP            .                                
                  03/21/2023           .                                
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       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 addition
   69  thereto, the municipality may add a surcharge of not more than
   70  25 percent of such rates, fees, and charges to consumers outside
   71  the boundaries. Fixing of such rates, fees, and charges in this
   72  manner does shall not 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 which are 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 may
   78  add a surcharge not to exceed 25 percent of such rates, fees,
   79  and charges for said services to consumers outside the
   80  boundaries. However, the total of all Such rates, fees, and
   81  charges for the services to consumers outside the boundaries may
   82  shall not be more than 25 50 percent greater than in excess of
   83  the total amount the municipality charges consumers served
   84  within the municipality for corresponding service. No Such
   85  rates, fees, and charges may not shall be 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 shall have 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 no hearing or notice
   95  is not shall be required.
   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.