Meeting Packet — Energy & Utilities Subcommittee (January 15, 2020)
Summary
A meeting packet for the Energy & Utilities Subcommittee meeting on Wednesday, January 15, 2020, 9:30 AM to 11:30 AM at Webster Hall, with Charlie Stone as Chair. It contains the agenda, a committee meeting notice listing HB 207 by McClain, HB 773 by Maggard and HB 6055 by Gregory, and the staff analysis of HB 207, Acquisition of Water and Wastewater Systems. That analysis says the bill lets certain utilities with over 10,000 customers set rate base for an acquired system at the lesser of the negotiated purchase price or fair market value, with Public Service Commission approval within 6 months if the required information is provided. The packet closes with the text of HB 6055, which repeals Chapter 363, Florida Statutes.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Meeting Packet — Energy & Utilities Subcommittee (January 15, 2020).”
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Energy & Utilities Subcommittee
VVednesday,January15,2020
9:30 AM -11:30 AM
VVebster Hall (212 Knott)
Meeting Packet
Jose Oliva Charlie Stone
Speaker Chair
The Florida House of Representatives
Commerce Committee
Energy & Utilities Subcommittee
Jose Oliva Charlie Stone
Speaker Chair
AGENDA
VVednesday,January15,2020
VVebster Hall (212 Knott)
9:30 AM-11:30 AM
I. Call to Order & Roll Call
II. Welcoming Remarks
III. Consideration of the following bills(s):
HB 207 by Rep. McClain
Acquisition of Water and Wastewater Systems
HB 773 by Rep. Maggard
Medically Essential Electric Utility Service
HB 6055 by Rep. Gregory
Telephone Companies
IV. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4873 Fax: (850) 413-0419
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Energy & Utilities Subcommittee
Start Date and Time: Wednesday, January 15, 2020 09:30 am
End Date and Time: Wednesday, January 15, 2020 11:30 am
Location: Webster Hall (212 Knott)
Duration: 2.00 hrs
Consideration of the following bill(s}:
HB 207 Acquisition of Water and Wastewater Systems by McClain
HB 773 Medically Essential Electric Utility Service by Maggard
HB 6055 Telegraph Companies by Gregory
Pursuant to rule 7.11, the deadline for amendments to bills on the agenda by non-appointed members shall
be 6:00 p.m., Tuesday, January 14, 2020.
By request of Chair Stone, all Energy & Utilities Subcommittee members are asked to have amendments to
bills on the agenda submitted to staff by 6:00 p.m., Tuesday, January 14, 2020.
NOTICE FINALIZED on 01/13/2020 4:10PM by Rigas.Amanda
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 207 Acquisition of Water and Wastewater Systems
SPONSOR(S): McClain
TIED BILLS: IDEN./SIM. BILLS: SB 658
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy & Utili.ties Subcommittee Keating
2) Government Operations & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
When the Public Service Commission approves a sale, assignment, or transfer of an existing water or
wastewater utility system to a PSC-regulated utility, it establishes a rate base value for the acquired utility
system. The value of the acquired utility's rate base is determined using the utility's net book value, i.e., the
original cost of the utility's assets when first dedicated to public service, less depreciation. This rate base is the
amount upon which the acquiring utility may earn a fair rate of return established by the PSC.
If the purchase price of a utility system is greater than its net book value, no part of the difference is included in
rate base absent a showing of extraordinary circumstances. This showing may be made through evidence that
the transaction is anticipated to yield cost efficiencies and improvements in service quality and regulatory
compliance, among other things. If the PSC determines that extraordinary circumstances exist, it will allow the
acquiring utility to include all or part of the difference in its rate base as a "positive acquisition adjustment."
This adjustment will be reflected in the utility's rates that are set during the utility's next general rate case.
The bill allows certain PSC-regulated water and wastewater utilities (those with over 10,000 customers) who
acquire an existing water or wastewater utility system to establish rate base for the acquired utility system
based on the lesser of: (1) the purchase price negotiated by the two utilities; or (2) the "fair market value" of the
acquired utility, as determined by the average of appraisals conducted by two licensed appraisers chosen from
a list established by the PSC. Appraisal fees and transaction costs may also be included. The bill provides
that one appraiser will represent and be paid by the acquiring utility, and that a second appraiser will represent
and be paid by the utility to be acquired. The bill provides some guidelines for the appraisals, including the use
of a required engineering assessment. To use this fair market value approach, the utility must provide the PSC
certain information specified in the bill. If the required information is provided, the PSC must approve within 6
months.
The bill is not expected to have a fiscal impact on state or local governments. The bill may encourage
transactions involving the purchase of smaller utility systems by eligible utility systems. In some cases, these
transactions may yield needed infrastructure improvements, cost efficiencies, and improvements in service
quality and regulatory compliance. Where such benefits are achieved, the combined rate impact of these
benefits may or may not outweigh the rate impact of valuing the acquired utility system's rate base above the
system's net book value. Thus, in some cases, the bill could result in customer rates being higher than they
otherwise would be solely due to valuation of the acquired utility system.
The bill provides an effective date of July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Regulated Water and Wastewater Utilities
In various areas throughout Florida, water and wastewater services are provided through privately-
owned and operated utilities. These privately-owned utilities, sometimes referred to as investor-owned
utilities, range in size from very small systems, owned by individuals as sole proprietorships and
serving only a few dozen customers in a small neighborhood, to systems owned by large interstate
corporations which serve tens of thousands of customers in multiple Florida counties.
For privately-owned utilities operating within a single Florida county, the county has the option to
regulate rates and service or allow the Public Service Commission (PSC) to regulate those utilities. 1
Regardless of whether the county has opted to regulate those utilities, the PSC has jurisdiction over all
water or wastewater utility systems whose service transverses county boundaries, except for systems
owned and regulated by intergovernmental authorities. 2 As of December 2018, the PSC had
jurisdiction over 150 utilities in 38 counties. 3 Still, the vast majority of water and wastewater customers
in the state are served by water and wastewater utilities not regulated by the PSC, primarily by systems
owned, operated, managed, or controlled by governmental authorities.
For each utility within its jurisdiction, the PSC has exclusive authority to regulate the utility's rates and
service. 4 The PSC must establish rates that are just, reasonable, compensatory, and not unfairly
discriminatory. 5 In doing so, the PSC must consider the value and quality of the service and the cost of
providing the service, which includes, but is not limited to: debt interest; the requirements of the utility
for working capital; maintenance, depreciation, tax, and operating expenses incurred in the operation of
all property used and useful in the public service; and a fair return on the investment of the utility in
property used and useful in the public service. 6 The PSC has consistently interpreted the "investment
of the utility" to be the original cost of the property when first dedicated to public service. 7
Acquisition of Utility Systems
Each utility subject to the PSC's jurisdiction must obtain a certificate of authorization to provide water or
wastewater service. 8 A PSC-regulated utility may not sell, assign, or transfer its certificate of
authorization, facilities, or majority organizational control without approval by the PSC. Likewise, PSC
approval is required for the transfer of a utility system exempt from PSC jurisdiction, such as a system
owned or operated by a governmental authority, to a PSC-regulated utility. To grant approval, the PSC
must determine that the sale, assignment, or transfer is in the public interest and that the acquiring
utility will fulfill the commitments, obligations, and representations of the utility to be acquired. 9 The
PSC considers, among other things, the financial ability of the buyer to maintain and operate the
acquired utility and the technical ability of the buyer to provide service. 10
1
S. 367 .171, F .S. If a county chooses to allow regulation by the PSC, it may rescind this election only after 10 continuous years of
PSC regulation.
z Id.
3
Florida Public Service Commission, Facts and Figures of the Florida Utility Industry, p. 31 (Jun. 2019).
4
S. 367.011, F.S.
5
S. 367.081, F.S.
6 Id.
7
Florida Public Service Commission (FPSC), Agency Analysis of2020 House Bill 207, p. 1 (Jan, 6, 2020).
8
S. 367.031, F.S.
9
S. 367.071(1), F.S.
10
Rule 25-30.037 (2), F.A.C.
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When the PSC approves a sale, assignment, or transfer of an existing utility system to a PSC-regulated
utility, the PSC may establish the rate base for the utility being transferred. 11 The PSC establishes the
value of an existing utility's rate base using "original cost." Using original cost, the value of a utility's
rate base is determined using the depreciated original cost, or net book value, of the property devoted
to the public service. This rate base is the amount upon which the utility may earn a fair return, as
established by the PSC. 12
A utility system may be acquired at a price higher or lower than the net book value of its assets. If the
purchase price is greater than net book value, no part of the difference is included in a utility's rate base
absent a showing by the utility of extraordinary circumstances. 13 In determining whether a utility has
demonstrated extraordinary circumstances, the PSC will consider evidence including:
• Anticipated improvements in quality of service;
• Anticipated improvements in compliance with regulatory mandates;
• Anticipated rate reductions or rate stability over a long-term period;
• Anticipated cost efficiencies; and
• Whether the purchase was made as part of an arms-length transaction .14
If the PSC determines that extraordinary circumstances exist, it will allow the acquiring utility to include
all or part of the difference in its rate base as a "positive acquisition adjustment." This adjustment will
be reflected in the utility's rates that are set during the utility's next general rate case.
A review of 78 water and wastewater utility transfers addressed by the PSC between August 15,
2002, 15 and September 14, 2018, shows that the purchase price of a utility system exceeded its net
book value in 39 cases. A positive acquisition adjustment was requested in two of those cases, but the
requests were withdrawn prior to the PSC's decision in each case.
Effect of Proposed Changes
The bill allows certain PSC-regulated water and wastewater utilities who acquire an existing water or
wastewater utility system to choose to establish rate base for the acquired utility system without regard
to the system's original cost. Instead, such utilities may elect to establish rate base for the acquired
system based on the lesser of: (1) the purchase price negotiated by the two utilities; or (2) the "fair
market value" of the acquired utility, as determined by the average of appraisals conducted by two
licensed appraisers chosen from a list established by the PSC. The acquired system's rate base may
also include reasonable fees paid to appraisers, if approved by the PSC, and reasonable transaction
and closing costs incurred by the acquiring utility. If the rate base established through this mechanism
exceeds the acquired utility system's net book value, the effect is the same as if the acquiring utility had
received a positive acquisition adjustment that increases the value of the acquired system's rate base.
No consideration of anticipated benefits is required.
The bill provides that one appraiser will represent and be paid by the acquiring utility, and that a second
appraiser will represent and be paid by the utility to be acquired. The bill does not specify who may
choose the two appraisers. The bill requires each appraiser to determine the fair market value of the
utility to be acquired by using the Uniform Standards of Professional Appraisal Practice16 and
11
S. 367.071(5), F.S.
12
FPSC, supra note 7, at 1.
13
Rule 25-30.0371(2), F.A.C.
14 Id.
15
The PSC's rule on positive acquisition adjustments was adopted August 4, 2002.
16
The Uniform Standards of Professional Appraisal Practice (US PAP) is the generally recognized ethical and performance standards
for the appraisal profession in the United States. USP AP was adopted by Congress in 1989, and contains standards for all types of
appraisal services, including real estate, personal property, business, and mass appraisal. See The Appraisal Foundation, What is
USPAP?,
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employing cost, market, and income approaches. 17 The bill provides that the original source of funding
for the utility being acquired is not relevant for purposes of each appraiser's evaluation of fair market
value.
Under the bill, the acquiring utility and the utility system being acquired must jointly retain a licensed
engineer to assess the tangible assets of the system being acquired. The bill specifies that this
assessment must be used by the two appraisers chosen to determine the fair market value of the
system being acquired.
A utility that chooses to use this mechanism to establish rate base for an acquired utility system must
submit an application to the PSC that includes the following:
• Copies of the two required appraisals performed by the chosen appraisers, including the
average of the appraisals;
• The required engineering assessment, including each deficiency identified in the engineering
assessment and a 3-year plan for prudent and necessary infrastructure improvements;
• The projected rate impact for the selling utility's customers for the next 5 years;
• The contract of sale;
• The estimated appraisal fees, and the estimated transaction and closing costs to be incurred by
the acquiring utility; and
• A tariff, including rates equal to the rates of the utility to be acquired.
If the utility's application includes all of these required elements, the bill provides that the PSC must
issue a final order approving or denying the application within 6 months of filing, though the bill does
not specify any grounds for denial. The order must indicate the rate base value established through
this mechanism for the acquired utility system.
The bill specifies that it applies only to acquiring utilities that provide water and wastewater services to
more than 10,000 customers and are engaged in a voluntary and mutually agreeable acquisition of a
water and wastewater system. Currently, it appears that there are three PSC-regulated utilities to
which the bill may apply. 18 All other PSC-regulated utilities that acquire a water or wastewater system
would continue to operate under the PSC's current rules that use the original cost approach to establish
rate base and that allow a positive acquisition adjustment only upon a demonstration of extraordinary
circumstances.
If the mechanism created by the bill is used to establish rate base for an acquired utility system, that
rate base value must be used by the PSC to establish rates for the acquiring utility during the utility's
next general rate case. The bill specifies that the PSC, in setting future rates for customers of the
acquired system, may classify the system as a separate entity, consistent with the public interest.
B. SECTION DIRECTORY:
Section 1. Creates s. 367.0712, F.S., related to the determination of rate base value for an acquired
water or wastewater utility system.
Section 2. Provides an effective date of July 1, 2020.
https://www.appraisalfoundation.org/imis/TAF/Standards/Appraisal Standards/Uniform Standards of Professional Appraisal Practi
ce/TAF/USPAP.aspx?hkey=a6420a67-dbfa-4lb3-9878-fac35923d2af(last visited Jan. 11, 2020).
17
The cost approach considers the current cost ofreproducing or replacing a building, minus an estimate for depreciation, plus the
value of the land (and entrepreneurial incentive, if applicable). The market (sales comparison) approach considers the value indicated
by recent sales of comparable properties on the market. The income approach considers the value that the property's net earning
power will support. See The Appraisal Foundation, Understanding the Appraisal,
https://www.appraisalinstitute.org/assets/l/7/understand appraisal 1109 (l).pdf(last visited Jan. 11, 2020).
18
FPSC, supra note 7, at 4. As noted in the Drafting Issues or Other Comments section of this analysis, this provision of the bill
could be clarified as to its specific application.
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11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may encourage the three eligible utilities to acquire smaller utility systems, potentially resulting
in better access to low cost capital for infrastructure improvements 19 that may be needed for the
acquired systems. Further, the acquisition of a smaller utility system by an eligible utility may result in
other cost efficiencies and improvements to quality of service and regulatory compliance.
While these results are desirable, there is no guarantee that they will occur, 20 as they are not required
and will depend on the specific circumstances surrounding each individual acquisition. If economic
efficiencies and lower capital costs are achieved, the combined rate impact of these benefits may or
may not outweigh the rate impact of valuing the acquired utility system's rate base above the system's
net book value. Thus, the bill could result in customer rates being higher than they otherwise would be
solely due to valuation of the acquired utility system. 21
The owners of acquired utility systems may benefit more often from purchase prices above their net
book value and, therefore, may be more willing to sell to a larger utility that may provide cost
efficiencies, better management, and infrastructure improvements.
D. FISCAL COMMENTS:
The bill provides that the PSC must issue a final order approving or denying an application within six
months of filing. The PSC asserts that compliance with this time limit will require all utility transfers of
this type to be set directly for a formal administrative hearing, which may impose additional resource
costs on the utilities and customer representatives, including the Office of Public Counsel. 22 However,
because the bill does not establish grounds for denial of a complete application, the approval process
often may not involve significant hearing resources.
19
Id. at 2. If any such improvements are made, the impact of those improvements on rate base (and, in turn, customer rates) would be
in addition to the impact of the acquisition itself on rate base.
20 Id.
21 Id.
22 Id. at 3.
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Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires the PSC to adopt implementing rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Appraisals
The bill does not specify who may choose the two appraisers used to determine a utility system's fair
market value. The bill could be clarified on this point.
The PSC notes that it has no expertise in property appraisal and suggests that an agency with such
expertise may be a more appropriate choice to establish the list of approved appraisers required by the
bill. 23
While the bill does not specify who may choose the two appraisers, the bill provides that one appraiser
will represent and be paid by the acquiring utility and the other appraiser will represent and be paid by
the utility system being acquired. Thus, it appears that one appraiser effectively works for the buyer
and the other effectively works for the seller. Under the bill, both parties stand to benefit from a higher
valuation of the utility system to be acquired: the seller's proceeds would be higher, and the buyer
would ultimately be authorized to earn a return on a higher rate base. This may create a perverse
incentive for the appraisals to come in higher than they might otherwise.
Other Drafting Issues
Under the bill, the acquiring utility and the utility system being acquired must jointly retain a licensed
engineer to assess the tangible assets of the system being acquired. The bill does not specify what
type of information this assessment should include. This may be clarified through implementing rules.
The bill specifies that it applies only to "acquiring utilities that provide water and wastewater services to
more than 10,000 customers and are engaged in a voluntary and mutually agreeable acquisition of a
water and wastewater system." A strict reading of this provision makes the bill applicable only to
utilities that offer both water and wastewater services to more than 10,000 customers. If the intent is to
make the bill applicable to utilities that offer eitherwater orwastewater services to more than 10,000
customers, this provision could be clarified. Further, a strict reading of this provision makes the bill
apply only to the acquisition of a water and wastewater system. Because water and wastewater
systems are usually separate systems, this provision could be clarified to specify that it applies to
acquisition of a water system and to acquisition of a wastewater system.
IV. AMENDMENTS/ COMMITIEE SUBSTITUTE CHANGES
Not applicable.
23
Id at 4.
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 207 2020
1 A bill to be entitled
2 An act relating to acquisition of water and wastewater
3 systems; creating s. 367.0712, F.S.; authorizing
4 certain water and wastewater utilities to establish a
5 rate base value by using the fair market value when
6 acquiring a utility system; establishing a procedure
7 to determine the fair market value; requiring the rate
8 base value to be reflected in the acquiring utility's
9 next rate case for ratemaking purposes; specifying the
10 contents required for an application to the Public
11 Service Commission for approval of the rate base value
12 of the utility system; specifying duties of the
13 commission regarding applications; specifying the
14 commission's retained authority; providing
15 applicability; requiring the commission to adopt
16 rules; providing an effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Section 367.0712, Florida Statutes, is created
21 to read:
22 367.0712 Determination of value.-
23 (1) When a utility acquires an existing utility system,
24 the utility may establish a rate base value of the acquired
25 utility system by using the fair market value of the utility
Page 1 of 4
CODING: Words stFiskeR are deletions; words underlined are additions.
hb0207-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 207 2020
26 system instead of the system's original cost.
27 (2) (a) The fair market value of a utility system to be
28 acquired must be based on appraisals conducted by two licensed
29 appraisers chosen from a list established by the commission.
30 1. One appraiser shall represent and be paid by the
31 acquiring utility and one appraiser shall represent and be paid
32 by the utility system being acquired.
33 2. Each appraiser shall determine the fair market value
34 using the Uniform Standards of Professional Appraisal Practice,
35 employing cost, market, and income approaches in assessing the
36 value.
37 3. For ratemakihg purposes, the fair market value is the
38 average of the two appraisals.
39 4. The original source of funding for the utility system
40 being acquired is not relevant to an evaluation of fair market
41 value.
42 (b) The acquiring utility and utility system being
43 acquired shall jointly retain a licensed engineer to conduct an
44 assessment of the tangible assets of the utility system and the
45 assessment shall be used by the two appraisers in determining
46 the fair market value of the system.
47 (c) The acquiring utility may include in the cost of the
48 acquired utility system:
49 1. Reasonable fees paid to the appraisers, if approved by
50 the commission.
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 207 2020
51 2. Reasonable transaction and closing costs incurred by
52 the acquiring utility.
53 (d) The rate base value of the acquired utility system,
54 which must be reflected in the acquiring utility's next general
55 rate case for ratemaking purposes, is equal to the lesser of the
56 purchase price negotiated between the parties to the sale or the
57 fair market value, and the fees and costs authorized in
58 paragraph ( c) .
59 (3) An application to the commission for approval of the
60 rate base value of the utility system to be acquired must
61 contain the following:
62 (a) Copies of the appraisals performed by the appraisers
63 pursuant to paragraph(2) (a).
64 (b) Each deficiency identified by the engineering
65 assessment conducted pursuant to paragraph (2) (b) and a 3-year
66 plan for prudent and necessary infrastructure improvements.
67 (c) The projected rate impact for the selling utility's
68 customers for the next 5 years.
69 (d) The average of the appraisals, which shall constitute
70 the fair market value of the system.
71 ( e) The assessment of tangible assets pursuant to ( 2) (b) .
72 (f) The contract of sale.
73 (g) The estimated value of fees and transaction and
74 closing costs to be incurred by the acquiring utility.
75 (h) A tariff, including rates equal to the rates of the
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 207 2020
76 selling utility.
77 (4) If the application complies with the requirements of
78 subsection (3), the commission shall issue a final order
79 approving or denying the application within 6 months after the
80 date on which the application was filed. An order approving an
81 application shall determine the rate base value of the acquired
82 utility system for ratemaking purposes in a manner consistent
83 with this section.
84 (5) Notwithstanding any provision in this section, the
85 commission retains its authority under this chapter to set rates
86 for the acquired utility system in future rate cases and may
87 classify the acquired utility system as a separate entity for
88 ratemaking purposes, consistent with the public interest.
89 (6) This section applies to acquiring utilities that
90 provide water and wastewater services to more than 10,000
91 customers and are engaged in a voluntary and mutually agreeable
92 acquisition of a water and wastewater system.
93 (7) The commission shall adopt rules to implement this
94 section.
95 Section 2. This act shall take effect July 1, 2020.
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CODING: Words stricken are deletions; words underlined are additions.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 773 Medically Essential Electric Utility Service
SPONSOR(S): Maggard
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy & Utilities Subcommittee Keating CK-- Keating CJ[
2) Health & Human Services Committee
3) Commerce Committee
SUMMARY ANALYSIS
Florida law, through s. 366.15, F.S., establishes procedures that each investor-owned electric utility (IOU) must
follow when providing service to residential customers who depend on electric powered equipment for
physician-certified medical reasons. This service is referred to as "medically essential" electric service.
The bill expands s. 366.15, F.S., to require that municipal electric utilities and rural electric cooperatives offer
medically essential electric service programs on terms similar to IOUs. The bill also requires that all electric
utilities provide additional consumer education about medically essential electric service programs. In
particular, the bill:
• Requires each electric utility to post on its website a written explanation of the certification process,
including a standard certification form.
• Requires each electric utility to provide a written explanation of the certification process to each
residential customer at the time the customer opens an account and semiannually thereafter.
• Requires licensed physicians, physician assistants, and advanced registered nurse practitioners to
inform eligible patients of the right to participate in medically essential electric service programs and to
provide such patients a copy of s. 366.15, F.S., and, if requested, a completed medical certification.
The bill also modifies the certification and notice requirements associated with medically essential electric
service programs. In particular, the bill:
• Allows for medical certification by licensed physician assistants and advanced registered nurse
practitioners, in addition to licensed physicians.
• Requires each medical certification to specify the time period for which service is expected to remain
medically essential, up to 60 months.
• Requires the electric utility to provide recertification materials to certified customers at least 60 days
prior to expiration of the customer's certification, and allows the utility to send recertification materials to
the customer by e-mail if the customer has provided an email address.
• Requires an electric utility to provide additional notice to a certified customer before any disconnection
of service for nonpayment, including notice by electronic means.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0773.EUS.D0CX
DATE: 1/13/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Florida law, through s. 366.15, F.S., establishes procedures that each investor-owned electric utility 1
(IOU) must follow when providing service to residential customers who depend on electric powered
equipment for physician-certified medical reasons. This service is referred to as "medically essential" 2
electric service.
Under the law, each IOU must:
• Designate employees who are authorized to direct the continuation or restoration of medically
essential electric service.
• Provide annually to all customers a written explanation of the certification process for medically
essential electric service, which includes:
o Submittal of completed forms supplied by the utility, including a certification form
completed by a physician licensed under ch. 458 or ch. 459, F.S., which states in
medical and nonmedical terms why the electric service is medically essential; and
o Recertification by a physician every 12 months.
• Provide recertification materials to a certified customer by mail at least 30 days prior to
expiration of the customer's certification, and allow the customer to submit completed
recertification forms within 30 days after the expiration of certification.
• Provide notice to a certified customer before any disconnection of service for nonpayment:
o By telephone at least 24 hours before the scheduled disconnection;
o In person at the customer's residence no later than 4 p.m. of the day before the
scheduled disconnection, if the customer cannot be reached in a timely manner by
telephone; and
o By leaving written notification at the residence, if the customer cannot be reached by
telephone or in person.
• Provide notice of any scheduled service interruptions to certified customers.
If a certified customer notifies its IOU of a need for financial assistance, the law requires the IOU to
provide the customer with information on sources of state or local agency funding that may provide
financial assistance to such customers. In addition, if an IOU operates a program to receive voluntary
contributions from its customers to provide financial assistance to persons unable to pay for service,
the IOU must train its customer service representatives to assist certified customers in identifying the
program and any agencies to which the IOU has distributed the contributed funds.
The law provides that each certified customer maintains the responsibility to make satisfactory
arrangements with the IOU to ensure payment for service consistent with the requirements of the IOU's
tariff. Further, the law provides that each certified customer is solely responsible for any backup
equipment or power supply and a planned course of action in the event of a power outage or
interruption of service. The law specifies that an IOU may disconnect service to a residence whenever
an emergency may threaten the health or safety of a person, the surrounding area, or the public utility's
distribution system, provided that the IOU must promptly restore service as soon as feasible. The law
states that it does not form the basis for any cause of action against an IOU.
1 Florida's investor-owned electric utilities are Florida Power & Light Company, Duke Energy Florida, Tampa Electric Company,
Gulf Power Company, and Florida Public Utilities Company. These utilities are referred to in statute as "public utilities" for purposes
ofregulation by the Public Service Commission. S. 366.02, F.S.
2
The term "medically essential" is defined as "the medical dependence on electric-powered equipment that must be operated
continuously or as circumstances require as specified by a physician to avoid the Joss oflife or immediate hospitalization of the
customer or another permanent resident at the residential service address." S. 366.15(1), F.S.
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The law does not apply to municipal electric utilities or rural electric cooperatives, but the majority of
those utilities maintain programs for medically essential electric service, many under terms similar to
the terms specified in law for IOUs. 3 The rates and service of municipal electric utilities and rural
electric cooperatives are not regulated by the Public Service Commission (PSC).
Chapter 456, F.S., addresses the regulation of specified health care professions by the Department of
Health. It does not address certification of patients for medically essential electric service.
Effect of Proposed Changes
In summary, the bill requires additional consumer education about medically essential electric service
programs and establishes additional protections for utility customers that are certified under such
programs. In addition, the bill expands the law to include municipal electric utilities and rural electric
cooperatives.
The bill amends s. 366.15, F.S., to replace most references to "public utility" - the term used in ch. 366,
F.S., to describe investor-owned electric utilities - with the term "electric utility." The term "electric
utility" is used in ch. 366, F.S., to refer to all types of electric utilities, including investor-owned electric
utilities, municipal electric utilities, and rural electric cooperatives. Thus, the bill expands the statutory
requirements for medically essential electric service to all retail electric utilities in the state, 4 though it
clarifies that the provision of medically essential electric service by municipal electric utilities and rural
electric cooperatives will not be regulated or overseen by the PSC.
The bill requires additional consumer education about medically essential electric service. In particular,
the bill:
• Requires that each electric utility post on its website a written explanation of the certification
process, including a standard certification form adopted by the utility.
• Requires that each electric utility provide a written explanation of the certification process to
each residential customer at the time the customer opens an account with the utility and
semiannually thereafter, either through a bill insert or by electronic means.
• Creates s. 456.45, F.S., to require certain health care practitioners - licensed physicians,
physician assistants, and advanced registered nurse practitioners - to inform a patient of the
right to participate in medically essential electric service programs and to provide the patient
with a written copy of s. 366.15, F.S., if the patient may be at risk of loss of life or immediate
hospitalization due to the loss of electric service at the patient's residence. At the request of
such a patient, the practitioner must provide the patient a completed medical certification using
the form adopted by the utility and document the certification in the patient's record.
The bill also modifies the statutory requirements for medically essential electric service. With respect to
the certification process, the bill:
• Allows medical certification by licensed physician assistants and advanced registered nurse
practitioners, in addition to licensed physicians.
• Requires each utility to adopt a standard certification form and specifies the information to be
included in the form, including: the customer's name, account number, service address, and
contact information; the name of the permanent resident at the service address who is
medically dependent on electric-powered equipment; and the name of that person's certifying
health practitioner. The bill requires that the standard certification form include a separate
3
As of December 31, 2018, IOUs served 75.5% of residential customers in the state (7,183,302), while municipal electric utilities
served 13.5% (1,288,251) and rural electric cooperatives served 11% (1,043,694). See Florida Public Service Commission, Statistics
of the Florida Electric Utility Industry, October 2019, at 45, available at
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/Electricgas/Statistics/2018.pdf (last visited Jan. 11, 2020).
4
The bill does not extend certain accounting and training requirements ins. 366.15(10)(b)2., F.S., to municipal electric utilities and
rural electric cooperatives.
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DATE: 1/13/2020
section to be completed by the certifying health care practitioner, which must include: the
name, business address, and medical license number of the certifying health care practitioner;
a statement in medical and nonmedical terms that specifies why electric service is medically
essential; and the time period for which the service is expected to remain medically essential.
• Allows extension of the medical certification up to 60 months.
• Requires recertification upon expiration of the current certification period but no sooner than 12
months after issuance of the current certification.
• Allows the electric utility to send recertification materials to the customer by e-mail if the
customer has provided an email address to the utility.
• Requires the electric utility to provide recertification materials to certified customers at least 60
days prior to expiration of the customer's certification.
• Allows the electric utility, no more often than once every 12 months, to request verification from
the customer that the person for whom service is certified continues to reside at the service
address.
With respect to disconnection of service for nonpayment, the bill:
• Requires that each electric utility provide certified customers no less time than other residential
customers to make payment or payment arrangements (in any event, no less than 20 days
from the date a bill is mailed or delivered by the electric utility) prior to the utility scheduling
disconnection of service.
• Requires the electric utility to provide, in addition to any notice provided in its normal course of
business, notice to certified customers:
o By telephone and in writing - including by electronic means if the customer has
provided contact information to receive electronic communications - no later than 15
days before, and again no later than 7 days before, the scheduled disconnection;
o In person at the customer's residence no later than 2 business days before the
scheduled disconnection, if the customer cannot be reached in a timely manner by
telephone; and
o In writing by electronic means, in addition to leaving written notification at the residence,
if in-person contact is not made.
The bill provides an effective date of July 1, 2020.
8. SECTION DIRECTORY:
Section 1. Amends s. 366.11, F.S., related to certain exemptions from regulation under ch. 366, F.S.
Section 2. Amends s. 366.15, F.S., related to medically essential electric public utility service.
Section 3. Creates s. 456.45, F.S., related to certification of medically essential electric utility service.
Section 4. Provides an effective date of July 1, 2020.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
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DATE: 1/13/2020
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Electric utilities that currently provide medically essential electric service programs may incur costs to
modify those programs to comply with the bill. The small minority of electric utilities that do not
currently provide such programs will incur costs to establish those programs in compliance with the bill.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to: require counties or municipalities to spend funds or take
an action requiring the expenditure of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of a state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 1/13/2020
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 773 2020
1 A bill to be entitled
2 An act relating to medically essential electric
3 utility service; amending s. 366.11, F.S.; specifying
4 that the fact that certain electric utilities must
5 provide medically essential electric service does not
6 require them to otherwise be regulated by the Public
7 Service Commission; amending s. 366.15, F.S.; revising
8 and defining terms; providing notification
9 requirements for electric utilities relating to the
10 certification process for obtaining medically
11 essential electric service and service disconnection;
12 providing certification requirements for customers;
13 specifying duties of electric utilities; revising
14 penalties for falsification of such certification;
15 providing construction; creating s. 456.45, F.S.;
16 requiring certain health care practitioners to inform
17 certain patients of such certification process;
18 requiring such practitioners to provide patients with
19 completed medical certifications and document the
20 certification; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (1) of section 366.11, Florida
25 Statutes, is amended to read:
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26 366.11 Certain exemptions.-
27 (1) No provision of this chapter shall apply in any
28 manner, other than as specified in ss. 366.04, 366.05(7) and
29 (8), 366.051, 366.055, 366.093, 366.095, 366.14, 366.15, 366.80-
30 366.83, and 366.91, to utilities owned and operated by
31 municipalities, whether within or without any municipality, or
32 by cooperatives organized and existing under the Rural Electric
33 Cooperative Law of the state, or to the sale of electricity,
34 manufactured gas, or natural gas at wholesale by any public
35 utility to, and the purchase by, any municipality or cooperative
36 under and pursuant to any contracts now in effect or which may
37 be entered into in the future, when such municipality or
38 cooperative is engaged in the sale and distribution of
39 electricity or manufactured or natural gas, or to the rates
40 provided for in such contracts.
41 Section 2. Section 366.15, Florida Statutes, is amended to
42 read:
43 366.15 Medically essential electric public utility
44 service.-
45 (1) As used in this section, the term~
46 (a) "Health care practitioner" means a physician or
47 physician assistant licensed under chapter 458 or chapter 459 or
48 an advanced registered nurse practitioner licensed under chapter
49 4 64.
50 J..!21 "Medically essential" means the medical dependence on
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51 electric-powered equipment that must be operated continuously or
52 as circumstances require as specified by a health care
53 practitioner physician to avoid the loss of life or immediate
54 hospitalization of the customer or another permanent resident at
55 the residential service address.
56 (2) Each electric public utility shall designate employees
57 who are authorized to direct an ordered continuation or
58 restoration of medically essential electric service. An electric
59 A public utility shall not impose upon any customer any
60 additional deposit to continue or restore medically essential
61 electric service.
62 (3) (a) Each electric public utility shall post on its
63 website a written explanation of the certification process for
64 obtaining medically essential electric service. The website must
65 include the standard certification form adopted by the utility
66 pursuant to paragraph (b). Each electric utility shall annually
67 provide a written explanation of the certification process~
68 medically essential electric service to each residential utility
69 customer:
70 1. When the customer opens an account for electric service
71 with the electric utility; and
72 2. At least semiannually either by a written bill insert
73 or, if the customer has provided contact information to receive
74 electronic communications from the utility, by electronic means.
75 (b)l. Each electric utility must adopt a standard
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76 certification form to be completed and signed by each
77 residential customer who wishes to have his or her service
78 certified as medically essential. The certification form must
79 include the customer's service address, the customer's name and
80 the account number for the service address, the name of the
81 permanent resident at the service address who is medically
82 dependent on electric-powered equipment and the name of that
83 person's certifying health care practitioner, and the customer's
84 contact information for purposes of receiving communications
85 from the utility by telephone and by electronic means if the
86 customer has provided authorization to receive electronic
87 communications.
88 2. The certification form must include a separate page to
89 be completed and signed by a health care practitioner certifying
90 that electric service is medically essential for the customer or
91 other permanent resident at the service address. This page of
92 the certification form must include the name, business address,
93 and medical license number of the certifying health care
94 practitioner; a statement by the certifying health care
95 practitioner, in medical and nonmedical terms, that specifies
96 the reasons why the electric service is medically essential, as
97 defined in subsection (1}; and a specification of the time
98 period for which the electric service is expected to remain
99 medically essential.
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HB 773 2020
100 l.s:l_ Certification that -e.f. a customer's electricity needs
101 are as- medically essential requires the customer to coHtplete
102 forms supplied by the public utility and to submit to the
103 utility a completed standard certification form which includes
104 the health care practitioner's certification a form coHtpleted by
105 a physician licensed in this state pursuant to chapter 458 or
106 chapter 459 Hhich states in medical and nonmedical terms why the
107 electric service is medically essential. The certification may
108 not extend beyond 60 months. Falsification of the False
109 certification of medically essential service by a physician is a
110 violation of s. 458.331(1) (h)L -e-r- s. 459.015(1) (i), ors.
111 464.018(1) (f).
112 Jil.-+e+- Medically essential service must shall be
113 recertified at the expiration of the time period specified in
114 the certification or once every 12 months after certification,
115 whichever is later. The electric public utility shall send the
116 certified customer by regular mail, or by e-mail if the customer
117 has provided the utility with his or her e-mail address, a
118 package of recertification materials, including recertification
119 forms, at least _§_.Q_ -3--G- days before prior to the expiration of the
120 customer's certification. The materials shall advise the
121 certified customer that he or she must complete and submit the
122 recertification forms within 30 days after the expiration of the
123 customer's existing certification. If the recertification form
124 is forms are not received within this 30-day period, the
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125 electric public utility may terminate the customer's
126 certification. No more than once every 12 months during the term
127 of the certification, the electric utility may request
128 verification from the customer that the person for whom electric
129 service is certified continues to reside at the service address.
130 (4) Each electric public utility must shall certify a
131 customer's electric service as medically essential if the
132 customer completes the requirements of subsection (3).
133 (5) Notwithstanding any other provision of this section,
134 an electric a public utility may disconnect service to a
135 residence whenever an emergency may threaten the health or
136 safety of a person, the surrounding area, or the electric public
137 utility's distribution system. The electric public utility shall
138 act promptly to restore service as soon as feasible.
139 (6) A customer whose electric service is certified as
140 medically essential under this section is entitled, at a
141 minimum, to the same time period for payment of bills that
142 applies to all other residential customers served by the
143 electric utility. However, the time period may not be fewer than
144 20 days after the date the bill is mailed or delivered by the
145 utility. If payment or a satisfactory payment arrangement has
146 not been made within the specified time period, the electric
147 utility may schedule disconnection of service for nonpayment of
148 the bill. In addition to any other notice provided in the
149 utility's normal course of business, before the electric utility
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150 disconnects service it must provide the following notice to each
151 customer whose electric service is certified as medically
152 essential under this section:
153 ~ No later than 15 days, and again no later than 7 days,
154 before a scheduled disconnection 24 hours before any scheduled
155 disconnection of service for nonpayment of bills to a customer
156 who requires medically essential service, the electric a public
157 utility shall attempt to contact the customer by telephone 4:-n-
158 order to provide notice of the scheduled disconnection and shall
159 provide the notice in writing, including by electronic means if
160 the customer has provided contact information to receive
161 electronic communications from the electric utility.
162 J.el_ If the customer does not have a telephone number
163 listed on the account or if the electric public utility cannot
164 reach the customer or other adult resident of the premises by
165 telephone by the specified time, the electric public utility
166 shall send a representative to the customer's residence to
167 attempt to contact the customer7 no later than 2 business days 4
168 p.m. of the day before the scheduled disconnection. If contact
169 is not made, however, the electric public utility must may leave
170 written notification at the residence advising the customer of
171 the scheduled disconnection and shall provide the notice by
172 electronic means if the customer has provided contact
173 information to receive electronic communications from the
174 electric utility.
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HB 773 2020
175
176 Thereafter, the electric public utility may disconnect service
177 on the scheduled disconnection specified date if payment or a
178 satisfactory payment arrangement has not been made.
179 (7) Each electric public utility customer who requires
180 medically essential service is responsible for making
181 satisfactory arrangements with the electric public utility to
182 ensure payment for such service, and such arrangements must be
183 consistent with the requirements of the utility's tariff.
184 (8) Each electric public utility customer who requires
185 medically essential service is solely responsible for any backup
186 equipment or power supply and a planned course of action in the
187 event of a power outage or interruption of service.
188 (9) Each electric public utility that provides electric
189 service to any customer whose electric service is certified as
190 medically essential pursuant to this section who requires
191 ffiedically essential service shall call, contact, or otherwise
192 advise such customer of scheduled service interruptions.
193 (10) (a) Each electric public utility shall provide
194 information on sources of state or local agency funding which
195 may provide financial assistance to the public utility's
196 customers who require medically essential service and who notify
197 the public utility of their need for financial assistance.
198 (b)l. Each electric public utility that operates a program
199 to receive voluntary financial contributions from the public
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200 utility's customers to provide assistance to persons who are
201 unable to pay for the public utility's services shall maintain a
202 list of all agencies to which the public utility distributes
203 such funds for such purposes and shall make the list available
204 to any such person who requests the list.
205 2. Each public utility that operates such a program shall:
206 a. Maintain a system of accounting for the specific
207 amounts distributed to each such agency, and the public utility
208 and such agencies shall maintain a system of accounting for the
209 specific amounts distributed to persons under such respective
210 programs.
211 b. Train its customer service representatives to assist
212 any person who possesses a medically essential certification as
213 provided in this section in identifying such agencies and
214 programs.
215 (11) Nothing in this act forms shall form the basis for
216 any cause of action against an electric a public utility.
217 Failure to comply with any obligation created by this act does
218 not constitute evidence of negligence on the part of the
219 electric public utility.
220 (12) Nothing in this section shall be construed to
221 authorize the commission to regulate or supervise the provision
222 of medically essential electric service pursuant to this section
223 !?.Y_.:_
224 (a) Any electric utility owned and operated by a
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225 municipality; or
226 (b} Any rural electric cooperative organized under chapter
227 425.
228 Section 3. Section 456.45, Florida Statutes, is created to
229 read:
230 456.45 Certification of medically essential electric
231 service.-
232 (1) As used in this section, the term "health care
233 practitioner" means a physician or physician assistant licensed
234 under chapter 458 or chapter 459 or an advanced registered nurse
235 practitioner licensed under chapter 464.
236 (2) A health care practitioner who determines that a
237 patient may be at risk of loss of life or immediate
238 hospitalization if the patient were to lose electric service at
239 the patient's residential service address shall inform the
240 patient of his or her right to obtain certification under the
241 medically essential electric service program provided by the
242 patient's electric utility pursuant to s. 366.15, and provide
243 the patient with a written copy of the law.
244 (3) Upon the request of such a patient, the health care
245 practitioner must provide the patient with a completed medical
246 certification using the standard certification form adopted by
247 the patient's electric utility and made available on the
248 utility's website pursuant to s. 366.15(3) and must document the
249 certification in the patient's medical record.
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250 Section 4. This act shall take effect July 1, 2020.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 6055 Telegraph Companies
SPONSOR(S): Gregory
TIED BILLS: IDEN./SIM. BILLS: SB 1256
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy & Utilities Subcommittee Keating Keating
2) Commerce Committee
SUMMARY ANALYSIS
The bill repeals the entirety of chapter 363, F.S., which establishes penalties and liability provisions related to
the intrastate transmission of messages by telegraph. The provisions of chapter 363, F.S., appear to be
outdated and no longer applicable.
The bill has no fiscal impact on state or local government.
The effective date of the bill is July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h6055.EUS.D0CX
DATE: 1/13/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
On May 26, 1844, Samuel Morse, inventor of the Morse code, sent the first message by telegraph in
the United States, ushering in the telegraph era that displaced the Pony Express. It read "WHAT HATH
GOD WROUGHT?" 1 We now have a more modern answer to that question, as transmitting and
receiving messages by telegraph has been replaced almost entirely by the speed and widespread
availability of e-mail, faxes, inexpensive long-distance telephone service, instant messaging, and social
media, such as Facebook and Twitter. 2
Still, Florida law includes an entire chapter related to the provision of telegraph service. Chapter 363,
F.S., establishes penalties and liability provisions related to the transmission and delivery of telegrams.
Sections 363.02 through 363.05, F.S., establish penalties and liability provisions for a telegraph
company 3 that owns or operates a telegraph line4 wholly or partly in the state and negligently fails to
promptly transmit and deliver messages5 or refuses to receive for transmission any legible messages
provided to the company for transmission. Further, section 363.06, F.S., provides that persons
engaged in the business of sending telegrams 6 are liable for damages for mental anguish and physical
suffering resulting from negligent failure to promptly and correctly transmit or deliver a telegram.
Section 363.08, F.S., establishes liability for persons engaged in the business of sending telegrams in
cipher for negligent failure to promptly transmit and deliver a telegram in cipher. Section 363.10, F .S.,
provides that contractual provisions intended to limit the liability imposed in this chapter are illegal and
void. The provisions of this chapter apply only to intrastate transmission of telegraph messages. 7
The current provisions of ch. 363, F.S., have remained substantively unchanged since at least 1913. 8
Sections 363.02, 363.03, and 363.05, F.S., were adopted in 1907 and have remained in law since then
without amendment. Section 363.04, F.S., was adopted in 1907 and was changed once, in 1945, with
a one word technical amendment. Sections 363.06-.10, F.S., were adopted in 1913 and have
remained in law since then without amendment. No court opinions related to this chapter have been
published since 1945. 9
Western Union Telegraph Company, perhaps the most well-known telegram service provider, sent its
last telegram on January 27, 2006. 10 Based on an Internet search by staff, a handful of businesses still
advertise telegram service, some claiming to utilize, at least in part, the telegraph system operated by
1
See, e.g., Telegram Passes into History, Wired (Feb. 2, 2006), https://www.wired.com/2006/02/telegram-passes-into-history/ (last
visited Jan. 9, 2020).
2
In a twist of historical irony, some commenters, at the time of the telegraph's invention, found the service to be "superficial, sudden,
unsifted, too fast for the truth." See Adrienne Lafrance, / Tried to Send a Telegram in 2016, The Atlantic (Jan. 22, 2016),
https://www.theatlantic.com/technology/archive/2016/01/rip-stop-telegrams/425136/ (last visited Jan. 9, 2020).
3
The term "telegraph company" is not defined for purposes of chapter 363, F.S.
4
The term "telegraph line" is not defined for purposes of chapter 363, F.S.
5
The provisions concerning delivery of messages apply only to deliveries in incorporated cities and towns. S. 363.02, F.S.
6
The term "telegram" is not defined for purposes of chapter 363, F.S.
7
Price v. Western Union Tel. Co., 23 So.2d 491 (Fla. 1945) ("sending ofa telegraph message from one state into another is a
transaction in interstate commerce").
8
Formers. 363.01, F.S., adopted in 1885, established a per-word rate cap for telegraph messages. This provision was repealed in
2000.
9
See supra, note 7.
10
Robert Seigel, Western Union Sends Its last Telegram, NPR (Feb. 2, 2006),
https://www.npr.org/templates/story/story.php?storyid=5186113?storyid=5186113 (last visited Jan. 9, 2020).
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DATE: 1/13/2020
Western Union. 11 The terms of service for these companies do not specify exactly how the customer's
message will be transmitted, and some specifically state that transmission may occur through means
other than telegraph. In each case, the ultimate service provided is the delivery of a message to the
recipient on paper, with proof of delivery established by some service providers.
In a 2017 Order removing "outmoded regulations," the Federal Communications Commission indicated
that it was not aware of any interstate telegraph service providers and that "[t]elegraph service is
obsolete." 12 Further, none of the businesses identified in staff's search are registered to do business in
Florida. As a result, it appears that the provisions of chapter 363, F.S., are outdated and no longer
applicable.
Effect of Proposed Changes
The bill repeals the entirety of chapter 363, F.S. -(STOP)-
8. SECTION DIRECTORY:
Section 1. Repeals ss. 363.02, 363.03, 363.04, 363.05, 363.06, 363.07, 363.08, 363.09, and 363.10,
F.S., relating to liability and damages for failure to transmit or deliver telegraph messages.
Section 2. Provides an effective date of July 1, 2020.
11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
8. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
11 For example, USCOMM LLC operates a service at sendtelegram.com. The website for the service indicates that "[a]fter closure of
retail operations by Western Union, we effectively replaced them in the domestic market." Further, International Telegram operates a
service at iTelegram.com, whose website states that the company "operate[s] the former Western Union telex/cablegram network
covering most of the globe."
12
32 FCC Red 7132 (8) (2017).
STORAGE NAME: h6055.EUS.DOCX PAGE: 3
DATE: 1/13/2020
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITIEE SUBSTITUTE CHANGES
Not applicable.
STORAGE NAME: h6055.EUS.D0CX PAGE: 4
DATE: 1/13/2020
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S
HB 6055 2020
1 A bill to be entitled
2 An act relating to telegraph companies; repealing
3 chapter 363, F.S., relating to the regulation of
4 telegraph companies and telegrams; providing an
5 effective date.
6
7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Chapter 363, Florida Statutes, consisting of
10 sections 363.02, 363.03, 363.04, 363.05, 363.06, 363.07, 363.08,
11 363.09, and 363.10, is repealed.
12 Section 2. This act shall take effect July 1, 2020.
Page 1 of 1
CODING: Words stricken are deletions; words underlined are additions.
hb6055-00
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