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Home Source documents Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 10, 2024

Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 10, 2024

Summary

Meeting packet of the Energy, Communications & Cybersecurity Subcommittee of the Florida House of Representatives Commerce Committee for Wednesday, January 10, 2024 at Reed Hall (HOB). The agenda lists consideration of HB 47 Municipal Water and Sewer Utility Rates, HB 777 Municipal Water or Sewer Utility Rates, Fees, and Charges, and HB 825 Underground Facilities. The staff analysis of HB 47 states that the bill requires a municipality operating a water or sewer utility to charge customers outside its boundaries the same rates, fees and charges as inside, if the customers are located in another municipality and a facility or plant in that municipality serves them. It provides an effective date of July 1, 2024. The packet closes with HB 825, whose last section takes effect October 1, 2024.

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

Cite this document

“Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 10, 2024.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-10-3226-energy-communications-cybersecurity-subcommittee-meeti-079cac92d1/, SHA-256 e192b6b7f53cded821e03356babfcda60bf569a8063a7591052dcdc8bbd5b146.

Full text

               Energy, Communications &
              Cybersecurity Subcommittee
                  Wednesday, January 10, 2024
                      8:30 AM - 10:00 AM
                     Reed Hall (102 HOB)


                      Meeting Packet




Paul Renner                                     Mike Giallombardo
Speaker                                                     Chair
                    The Florida House of Representatives
                                           Commerce Committee
                   Energy, Communications & Cybersecurity Subcommittee
Paul Renner                                                                                    Mike Giallombardo
Speaker                                                                                                    Chair



                                           Meeting Agenda
                                       Wednesday, January 10, 2024
                                          8:30 am – 10:00 am
                                         Reed Hall (102 HOB)



  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Consideration of the following bill(s):
          • HB 47 Municipal Water and Sewer Utility Rates by Robinson, F.
          • HB 777 Municipal Water or Sewer Utility Rates, Fees, and Charges by Brackett
          • HB 825 Underground Facilities by Koster

 V.    Closing Remarks

VI.    Adjournment




                   303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                   (850) 717-4870
HB 47
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 47 Municipal Water and Sewer Utility Rates
SPONSOR(S): Robinson, F.
TIED BILLS:      IDEN./SIM. BILLS: SB 104

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    1) Energy, Communications & Cybersecurity                                           Bauldree           Keating
       Subcommittee

    2) Local Administration, Federal Affairs & Special
       Districts Subcommittee

    3) Commerce Committee


                                             SUMMARY ANALYSIS
Municipalities are authorized by general law to provide water and sewer utility services and to set the rates,
fees, and charges for such services. These utility systems are exempt from the rate-setting jurisdiction of the
Florida Public Service Commission. A municipality that provides water or sewer utility service outside of its
municipal boundaries may impose, subject to limits specified in Florida law, higher rates, fees, and charges on
customers receiving service outside of its boundaries as compared to the rates, fees, and charges imposed on
customers within its boundaries. Most municipal utility systems are governed by the municipality’s governing
body (i.e., the city commission).

The bill states that a municipality which operates a water or sewer utility must charge customers outside its
municipal boundaries the same rates, fees, and charges as it charges customers within its boundaries if:
              The customers are located in another municipality, and
              The charging municipality uses a facility or water or sewer plant located in the recipient
                 municipality to serve those customers.

The bill does not appear to impact state government revenues or state or local government expenditures. The
bill may have a negative fiscal impact on certain local revenues. See Fiscal Analysis & Economic Impact
Statement.

The bill provides an effective date of July 1, 2024.

This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0047.ECC
DATE: 1/8/2024
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Pursuant to s. 2(b), Art. VIII of the State Constitution, municipalities have the governmental, corporate,
        and proprietary powers to enable them to conduct municipal government, perform municipal functions,
        and render municipal services. Municipalities may exercise any power for municipal purposes, except
        when expressly prohibited by law.1 The legislative body of each municipality has the power to enact
        legislation on any subject upon which the state Legislature may act with certain exceptions. 2 Under
        their home rule power and as otherwise provided or limited by law or agreement, municipalities may
        provide utilities to citizens and entities within the municipality’s corporate boundaries, in unincorporated
        areas, and even in other municipalities.

        Municipalities are authorized by general law to provide water and sewer utility services. 3 With respect
        to public works projects, including water and sewer utility services, 4 municipalities may extend and
        execute their corporate powers outside of their corporate limits as “desirable or necessary for the
        promotion of the public health, safety and welfare.”5 A municipality may not extend or apply these
        corporate powers within the corporate limits of another municipality. 6 However, it may permit any other
        municipality and the owners of lands outside its corporate limits or within the limits of another
        municipality to connect with its water and sewer utility facilities and use its services upon agreed terms
        and conditions.7 An informal study conducted in 2014 indicated that approximately 250 municipalities
        provide water service and approximately 220 municipalities provide wastewater service. Of these
        municipalities, the study found that approximately 140 provide water and/or waste water services to
        customers outside of their municipal boundaries, which may include customers in unincorporated areas
        of counties or in other municipalities.8 These utility systems are exempt from the jurisdiction of the
        Florida Public Service Commission.

        A municipality that operates a water or sewer utility outside of its municipal boundaries may impose
        higher rates, fees, and charges on customers receiving service outside of its corporate boundaries as
        compared to the rates, fees, and charges imposed on customers within its boundaries. The municipality
        can accomplish this in two ways:

                First, for customers outside of its boundaries, it may add a surcharge of up to 25 percent of the
                 rates, fees, and charges imposed on customers within its boundaries. This mechanism does
                 not require a public hearing.9



1 Section 166.021(2),   F.S., provides that any activity or power which may be exercised by the state or its political
subdivisions is considered a municipal purpose.
2 Pursuant to s. 166.021(3), F.S., a municipality may not enact legislation on the following: the subjects of annexation,

merger, and exercise of extraterritorial power, which require general law or special law; any subject expressly prohibited
by the constitution; any subject expressly preempted to state or county government by the constitution or by general law;
and any subject preempted to a county pursuant to a county charter adopted under the authority of the State constitution.
3 Pursuant to s. 180.06, F.S., a municipality may “provide water and alternative water supplies;” “provide for the collection

and disposal of sewage, including wastewater reuse, and other liquid wastes; ” and “construct reservoirs, sewerage
systems, trunk sewers, intercepting sewers, pumping stations, wells, siphons, intakes, pipelines, distribution systems,
purification works, collection systems, treatment and disposal works ” to accomplish these purposes.
4 Other public works projects authorized under s. 180.06, F.S., include alternative water supplies, maintenance of water

flow and bodies of water for sanitary purposes, garbage collection and disposal, airports, hospitals, jails, golf courses, ga s
plants and distribution systems, and related facilities.
5 S. 180.02(2), F.S.
6 Id.
7 S. 180.19, F.S.
8 Analysis of House Bill 813 (2014), Florida House of Representatives.
9 S. 180.191(1)(a), F.S.
STORAGE NAME: h0047.ECC                                                                                                 PAGE: 2
DATE: 1/8/2024
                Second, it may set separate rates, fees, and charges for customers outside its boundaries
                 based on the same factors used to set rates for customers within its boundaries. It may add a
                 surcharge of up to 25 percent of these charges, provided that the total of all such rates, fees,
                 and charges for service to customers outside its boundaries may not exceed the total charges
                 to customers within its boundaries by more than 50 percent for corresponding service. Rates
                 set in this manner require a public hearing at which all users served or to be served by the
                 water or sewer utilities and all other interested persons will have an opportunity to be heard
                 concerning the proposed rates.10

        For example, the City of North Miami Beach owns the Norwood Water Treatment Plant, which is
        located in Miami Gardens, and charges customers outside of North Miami Beach municipal boundaries
        a 25% surcharge, including customers in Miami Gardens. 11 However, there is no central repository for
        information concerning municipal water or sewer service rates that identifies municipalities that impose
        higher rates on customers outside of the municipal boundaries, the specific mechanism used by such
        municipalities to establish such rates, or the level of any additional charge or surcharge imposed.

        Effect of the Bill

        The bill states that a municipality which operates a water or sewer utility must charge customers
        outside its municipal boundaries the same rates, fees, and charges as it charges customers within its
        boundaries if:
             The customers are located in another municipality, and
             The charging municipality uses a facility or water or sewer plant located in the recipient
                municipality to serve those customers.

        The bill provides an effective date of July 1, 2024.

    B. SECTION DIRECTORY:
        Section 1: Amends s. 180.191, F.S., relating to limitation on rates charged consumer outside city limits.

        Section 2: Provides an effective date of July 1, 2024.


                              II. 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:
             The bill may have a negative fiscal impact on municipalities which own and operate water or sewer
             utilities and serve customers located in another municipality with facilities located in the recipient
             municipality, as it reduces the amount that those municipal water and sewer utilities that use such
             facilities can charge such customers.


10 S. 180.191(1)(b),   F.S.
11 Kevin Ozebek & Leisa Williams, New study reveals how much more some Miami Gardens residents are paying for

water, WSVN (January 19, 2023), https://wsvn.com/news/investigations/new-study-reveals-how-much-more-some-miami-
gardens-residents-are-paying-for-water/ (last visited January 5, 2024).
STORAGE NAME: h0047.ECC                                                                                      PAGE: 3
DATE: 1/8/2024
       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may result in cost savings to certain municipal water and sewer utility customers located
       outside of municipal boundaries.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          The county/municipality mandates provision of Art. VII, section 18(b), of the Florida Constitution may
          apply because this bill reduces the amount that certain municipal water and sewer utilities can
          charge customers outside of the municipal boundaries. If the bill does qualify as a mandate, final
          passage must be approved by two-thirds of the membership of each house of the Legislature.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       The bill applies to municipal water and sewer utilities that serve customers in another municipality using
       a “facility or water sewer plant” located in that other municipality. This provision could be broadly
       applied to all municipal water and sewer utilities that serve customers in another municipality if the term
       “facility” is construed to include the pipes used to serve those customers.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h0047.ECC                                                                                     PAGE: 4
DATE: 1/8/2024
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           HB 47                                                                                                 2024




    1                                         A bill to be entitled
    2              An act relating to municipal water and sewer utility
    3              rates; amending s. 180.191, F.S.; requiring a
    4              municipality to charge customers receiving its utility
    5              services in another municipality the same rates, fees,
    6              and charges as it charges consumers within its own
    7              municipal boundaries under certain circumstances;
    8              providing an effective date.
    9
10         Be It Enacted by the Legislature of the State of Florida:
11
12                 Section 1.         Subsections (2), (3), and (4) of section
13         180.191, Florida Statutes, are renumbered as subsections (3),
14         (4), and (5), respectively, subsection (1) is amended, and a new
15         subsection (2) is added to that section, to read:
16                 180.191        Limitation on rates charged consumer outside city
17         limits.—
18                 (1)         Any municipality within this the state that operates
19         operating a water or sewer utility outside of the boundaries of
20         the such municipality shall charge consumers outside the
21         boundaries rates, fees, and charges determined in one of the
22         following manners:
23                 (a)         It may charge the same rates, fees, and charges as
24         consumers inside the municipal boundaries. However, in addition
25         thereto, the municipality may add a surcharge of not more than

                                                         Page 1 of 3

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb0047-00
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        HB 47                                                                                                 2024




26      25 percent of such rates, fees, and charges to consumers outside
27      the boundaries, except as provided in subsection (2). Fixing of
28      the such rates, fees, and charges in this manner does shall not
29      require a public hearing except as may be provided for service
30      to consumers inside the municipality.
31              (b)         It may charge rates, fees, and charges that are just
32      and equitable and that which are based on the same factors used
33      in fixing the rates, fees, and charges for consumers inside the
34      municipal boundaries, except as provided in subsection (2). In
35      addition thereto, the municipality may add a surcharge not to
36      exceed 25 percent of the such rates, fees, and charges for said
37      services to consumers outside the boundaries. However, the total
38      of all the such rates, fees, and charges for the services to
39      consumers outside the boundaries may shall not be more than 50
40      percent in excess of the total amount the municipality charges
41      consumers served within the municipality for corresponding
42      service. The No Such rates, fees, and charges may not shall be
43      fixed until after a public hearing at which all of the users of
44      the water or sewer systems; owners, tenants, or occupants of
45      property served or to be served thereby; and all others
46      interested have had shall have an opportunity to be heard
47      concerning the proposed rates, fees, and charges. Any change or
48      revision of the such rates, fees, or charges may be made in the
49      same manner as the such rates, fees, or charges were originally
50      established, but if a such change or revision is to be made

                                                      Page 2 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0047-00
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        HB 47                                                                                                 2024




51      substantially pro rata as to all classes of service, both inside
52      and outside the municipality, a no hearing or notice is not
53      shall be required.
54              (2)         Any municipality within this state that operates a
55      water or sewer utility providing service to customers i n another
56      recipient municipality using a facility or water or sewer plant
57      located in the recipient municipality shall charge consumers in
58      the recipient municipality the same rates, fees, and charges as
59      it charges the consumers within its own municipal boundaries.
60              Section 2.         This act shall take effect July 1, 2024.




                                                      Page 3 of 3

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0047-00
        Energy, Communications & Cybersecurity Subcommittee
                     HB 47 by Rep. Robinson, F.
                Municipal Water and Sewer Utility Rates

                            AMENDMENT SUMMARY
                               January 10, 2024


Amendment 1 by Robinson, F. (lines 55-58):

   •   Clarifies that the bill applies to municipal water or sewer utilities serving
       consumers within the boundaries of a separate municipality using a “water
       treatment plant or sewer treatment plant” within the boundaries of that separate
       municipality.
                                             COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                       Bill No. HB 47   (2024)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                       (Y/N)
       ADOPTED AS AMENDED            (Y/N)
       ADOPTED W/O OBJECTION         (Y/N)
       FAILED TO ADOPT               (Y/N)
       WITHDRAWN                     (Y/N)
       OTHER


1      Committee/Subcommittee hearing bill:      Energy, Communications &
2      Cybersecurity Subcommittee
3      Representative Robinson, F. offered the following:
4
5           Amendment
6           Remove lines 55-58 and insert:
7      water or sewer utility providing service to consumers within the
8      boundaries of a separate municipality using a water treatment
9      plant or sewer treatment plant located within the boundaries of
10     that separate municipality shall charge consumers in the
11     separate municipality the same rates, fees, and charges as




     864605 - h0047-line 55.docx
      Published On: 1/9/2024 4:42:41 PM
                                    Page 1 of 1
HB 777
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 777 Municipal Water or Sewer Utility Rates, Fees, and Charges
SPONSOR(S): Brackett
TIED BILLS:       IDEN./SIM. BILLS: SB 1088

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                           Bauldree           Keating
     Subcommittee

  2) Local Administration, Federal Affairs & Special
     Districts Subcommittee

  3) Commerce Committee


                                             SUMMARY ANALYSIS
Municipalities are authorized by general law to provide water and sewer utility services and to set the rates,
fees, and charges for such services. These utility systems are exempt from the rate-setting jurisdiction of the
Florida Public Service Commission. A municipality that provides water or sewer utility service outside of its
municipal boundaries may impose, subject to limits specified in Florida law, higher rates, fees, and charges on
customers receiving service outside of its boundaries as compared to the rates, fees, and charges imposed on
customers within its boundaries. Most municipal utility systems are governed by the municipality’s governing
body (i.e., the city commission).

The bill requires a municipality providing water or sewer service to customers outside of the municipality’s
boundaries to charge those customers rates that are equitable and are based on the same factors used in
fixing the rates, fees, and charges for customers inside of the municipal boundaries. The bill requires a public
hearing prior to the municipality fixing any rates, fees, or charges for customers outside of the municipal
boundaries.

The bill does not appear to impact state government revenues or state or local government expenditures. The
bill may have an indeterminate impact on local government revenues. See Fiscal Analysis & Economic Impact
Statement.

The bill provides an effective date of July 1, 2024.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0777.ECC
DATE: 1/8/2024
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Pursuant to s. 2(b), Art. VIII of the State Constitution, municipalities have the governmental, corporate,
        and proprietary powers to enable them to conduct municipal government, perform municipal functions,
        and render municipal services. Municipalities may exercise any power for municipal purposes, except
        when expressly prohibited by law.1 The legislative body of each municipality has the power to enact
        legislation on any subject upon which the state Legislature may act with certain exceptions.2 Under
        their home rule power and as otherwise provided or limited by law or agreement, municipalities may
        provide utilities to citizens and entities within the municipality’s corporate boundaries, in unincorporated
        areas, and even in other municipalities.

        Municipalities are authorized by general law to provide water and sewer utility services. 3 With respect
        to public works projects, including water and sewer utility services, 4 municipalities may extend and
        execute their corporate powers outside of their corporate limits as “desirable or necessary for the
        promotion of the public health, safety and welfare.” 5 A municipality may not extend or apply these
        corporate powers within the corporate limits of another municipality.6 However, it may permit any other
        municipality and the owners of lands outside its corporate limits or within the limits of another
        municipality to connect with its water and sewer utility facilities and use its services upon agreed terms
        and conditions.7 An informal study conducted in 2014 indicated that approximately 250 municipalities
        provide water service and approximately 220 municipalities provide wastewater service. Of these
        municipalities, the study found that approximately 140 provide water and/or waste water services to
        customers outside of their municipal boundaries, which may include customers in unincorporated areas
        of counties or in other municipalities.8 These utility systems are exempt from the jurisdiction of the
        Florida Public Service Commission.

        A municipality that operates a water or sewer utility outside of its municipal boundaries may impose
        higher rates, fees, and charges on customers receiving service outside of its boundaries as compared
        to the rates, fees, and charges imposed on customers within its boundaries. The municipality can
        accomplish this in two ways:

                First, for customers outside of its boundaries, it may add a surcharge of up to 25 percent of the
                 rates, fees, and charges imposed on customers within its boundaries. This mechanism does
                 not require a public hearing.9



1 Section 166.021(2),   F.S., provides that any activity or power which may be exercised by the state or its political
subdivisions is considered a municipal purpose.
2 Pursuant to s. 166.021(3), F.S., a municipality may not enact legislation on the following: the subjects of annexation,

merger, and exercise of extraterritorial power, which require general law or special law; any subject expressly prohibited
by the constitution; any subject expressly preempted to state or county government by the constitution or by general law;
and any subject preempted to a county pursuant to a county charter adopted under the authority of the State constitution.
3 Pursuant to s. 180.06, F.S., a municipality may “provide water and alternative water supplies;” “provide for the collection

and disposal of sewage, including wastewater reuse, and other liquid wastes; ” and “construct reservoirs, sewerage
systems, trunk sewers, intercepting sewers, pumping stations, wells, siphons, intakes, pipelines, distribution systems,
purification works, collection systems, treatment and disposal works ” to accomplish these purposes.
4 Other public works projects authorized under s. 180.06, F.S., include alternative water supplies, maintenance of water

flow and bodies of water for sanitary purposes, garbage collection and disposal, airports, hospitals, jails, golf courses, ga s
plants and distribution systems, and related facilities.
5 S. 180.02(2), F.S.
6 Id.
7 S. 180.19, F.S.
8 Analysis of House Bill 813 (2014), Florida House of Representatives.
9 S. 180.191(1)(a), F.S.
STORAGE NAME: h0777.ECC                                                                                                 PAGE: 2
DATE: 1/8/2024
                Second, it may set separate rates, fees, and charges for customers outside its boundaries
                 based on the same factors used to set rates for customers within its boundaries. It may add a
                 surcharge of up to 25 percent of these charges, provided that the total of all such rates, fees,
                 and charges for service to customers outside its boundaries may not exceed the total charges
                 to customers within its boundaries by more than 50 percent for corresponding service. Rates
                 set in this manner require a public hearing at which all users served or to be served by the
                 water or sewer utilities and all other interested persons will have an opportunity to be heard
                 concerning the proposed rates.10

        There is no central repository for information concerning municipal water or sewer service rates that
        identifies municipalities that impose higher rates on customers outside of the municipal boundaries, the
        specific mechanism used by such municipalities to establish such rates, or the level of any additional
        charge or surcharge imposed.

        Effect of the Bill

        The bill requires a municipality providing water or sewer service to customers outside of the
        municipality’s boundaries to charge those customers rates that are equitable and are based on the
        same factors used in fixing the rates, fees, and charges for customers inside of the municipal
        boundaries. The bill requires a public hearing prior to the municipality fixing any rates, fees, or charges
        for customers outside of the municipal boundaries.

        The bill eliminates the ability of a municipality providing water or sewer service outside of its boundaries
        to charge up to a 25% surcharge for such service without a specific basis for the surcharge or to charge
        any surcharge without a public hearing.

        Under the bill, each municipality that provides water or sewer service outside of its boundaries must
        conduct a rate study by January 1, 2027, and every 7 years thereafter.

        The bill provides an effective date of July 1, 2024.

    B. SECTION DIRECTORY:
        Section 1: Amends s. 180.191, F.S., relating to limitation on rates charged consumer outside city limits.

        Section 2: Provides an effective date of July 1, 2024.


                              II. 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:
             Indeterminate. For municipalities which own and operate water or sewer utilities and serve
             customers outside of municipal boundaries the bill eliminates the ability of such municipal utilities to
             impose up to a 25% surcharge on such consumers without a specific basis for the surcharge.


10 S. 180.191(1)(b),   F.S.
STORAGE NAME: h0777.ECC                                                                                       PAGE: 3
DATE: 1/8/2024
           However, to the extent that higher rates, fees, and charges for such customers are set in a public
           hearing based on the same factors used in setting rates, fees, and charges for customers located
           within the municipal boundaries, revenue impacts may be mitigated.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may result in cost savings to municipal water and sewer utility customers located outside of
       municipal boundaries, those such savings are not guaranteed.

   D. FISCAL COMMENTS:
       None.


                                                III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       The bill requires certain municipal water or sewer utilities to periodically conduct a uses the term “rate
       study.” This provision should be clarified to describe more specifically what a rate study should
       address.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h0777.ECC                                                                                     PAGE: 4
DATE: 1/8/2024
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           HB 777                                                                                                2024




    1                                          A bill to be entitled
    2               An act relating to municipal water or sewer utility
    3               rates, fees, and charges; amending s. 180.191, F.S.;
    4               removing a provision authorizing certain
    5               municipalities serving consumers outside their
    6               boundaries to add specific surcharges to the rates,
    7               fees, and charges; removing a provision which does not
    8               require a public hearing for adding specific
    9               surcharges; requiring certain municipalities to
10                  conduct rate studies by specified dates; providing an
11                  effective date.
12
13         Be It Enacted by the Legislature of the State of Florida:
14
15                  Section 1.         Subsection (1) of section 180.191, Florida
16         Statutes, is amended, and a new subsection (5) is added to that
17         section, to read:
18                  180.191        Limitation on rates charged consumer outside city
19         limits.—
20                  (1)         Any municipality within the state operating a water or
21         sewer utility outside of the boundaries of such municipality
22         shall charge consumers outside the boundaries rates, fee s, and
23         charges determined in one of the following manners:
24                  (a)         It may charge the same rates, fees, and charges as
25         consumers inside the municipal boundaries. However, in addition

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        HB 777                                                                                                2024




26      thereto, the municipality may add a surcharge of not more than
27      25 percent of such rates, fees, and charges to consumers outside
28      the boundaries. Fixing of such rates, fees, and charges in this
29      manner shall not require a public hearing except as may be
30      provided for service to consumers inside the municipality.
31               (b)         It may charge rates, fees, and charges that are just
32      and equitable and which are based on the same factors used in
33      fixing the rates, fees, and charges for consumers inside the
34      municipal boundaries. In addition thereto, the municipality may
35      add a surcharge not to exceed 25 percent of such rates, fees,
36      and charges for said services to consumers outside the
37      boundaries. However, the total of all such rates, fees, and
38      charges for the services to consumers outside the boundaries
39      shall not be more than 50 percent in excess of the total amount
40      the municipality charges consumers served within the
41      municipality for corresponding service. No such rates, fees, and
42      charges shall be fixed until after a public hearing at which all
43      of the users of the water or sewer systems; owners, tenants, or
44      occupants of property served or to be served thereby; and all
45      others interested shall have an opportunity to be heard
46      concerning the proposed rates, fees, and charges. Any change or
47      revision of such rates, fees, or charges may be made in the same
48      manner as such rates, fees, or charges were originally
49      established, but if such change or revision is to be made
50      substantially pro rata as to all classes of service, both inside

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        HB 777                                                                                                2024




51      and outside the municipality, no hearing or notice shall be
52      required.
53               (5)         Each municipality subject to subsection (1) must
54      conduct a rate study by January 1, 2027, and every 7 years
55      thereafter.
56               Section 2.         This act shall take effect July 1, 2024.




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                                                                                                             hb0777-00
       Energy, Communications & Cybersecurity Subcommittee
                       HB 777 by Rep. Brackett
       Municipal Water or Sewer Utility Rates, Fees, and Charges

                             AMENDMENT SUMMARY
                                January 10, 2024


Amendment 1 by Brackett (lines 32-55):

   •   Clarifies that a municipality providing water or sewer utility service to consumers
       outside of the boundaries of such municipality must charge all consumers the
       same rates, fees, and charges.
   •   Specifies the minimum components of a rate study.
                                              COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                       Bill No. HB 777   (2024)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                        (Y/N)
       ADOPTED AS AMENDED             (Y/N)
       ADOPTED W/O OBJECTION          (Y/N)
       FAILED TO ADOPT                (Y/N)
       WITHDRAWN                      (Y/N)
       OTHER


1      Committee/Subcommittee hearing bill:       Energy, Communications &
2      Cybersecurity Subcommittee
3      Representative Brackett offered the following:
4
5           Amendment
6           Remove lines 32-55 and insert:
7      and equitable and which are based on the same factors used in
8      fixing the rates, fees, and charges for consumers inside the
9      municipal boundaries. In addition thereto, the municipality may
10     add a surcharge not to exceed 25 percent of such rates, fees,
11     and charges for said services to consumers outside the
12     boundaries. However, the total of all such rates, fees, and
13     charges for the services to consumers outside the boundaries
14     shall not be more than 50 percent in excess of the total amount
15     the municipality charges consumers served within the
16     municipality for corresponding service. No such rates, fees, and
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                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 777   (2024)
       Amendment No. 1


17     charges shall be fixed until after a public hearing at which all
18     of the users of the water or sewer systems; owners, tenants, or
19     occupants of property served or to be served thereby; and all
20     others interested shall have an opportunity to be heard
21     concerning the proposed rates, fees, and charges. Any change or
22     revision of such rates, fees, or charges may be made in the same
23     manner as such rates, fees, or charges were originally
24     established, but if such change or revision is to be made
25     substantially pro rata as to all classes of service, both inside
26     and outside the municipality, no hearing or notice shall be
27     required.
28          (5)    By January 1, 2027, and every 7 years thereafter, each
29     municipality subject to subsection (1) must conduct a rate study
30     which evaluates, at a minimum, the utility’s future capital
31     investment needs, whether the utility’s rates are expected to
32     generate sufficient revenues to cover its operating and
33     maintenance costs and support current and planned capital
34     investment, and whether costs are equitably distributed among
35     all customer classes.




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HB 825
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 825 Underground Facilities
SPONSOR(S): Koster
TIED BILLS:       IDEN./SIM. BILLS: SB 708

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                           Phelps             Keating
     Subcommittee

  2) Commerce Committee


                                              SUMMARY ANALYSIS
Chapter 556, F.S., is the “Underground Facility Damage Prevention and Safety Act” (Act). The stated purpose
of the Act is to identify and locate underground facilities prior to an excavation or demolition to prevent injury to
persons or property or interruption of services resulting from damage to those facilities. To accomplish this, the
Act creates a not-for-profit corporation, Sunshine State One-Call of Florida, Inc. (SSOCOF), to administer a
free-access notification system.

This bill amends the “Underground Facility Damage Prevention and Safety Act” by:
     Extending the time for excavators to notify SSOCOF before excavating to three full business days;
     Extending the time for potentially affected member operators to mark the location of their underground
         facilities in relation to the proposed excavation or demolition to three full business days; and
     Implementing an enhanced civil penalty for an excavator’s failure to notify a high-priority subsurface
         installation (HPSI) operator of the start time and date of a planned excavation if the HPSI operator
         provides timely notice of the existence of a HPSI.

The bill may have an insignificant, positive fiscal impact on state and local government revenues. The bill does
not appear to impact state or local government expenditures.

The bill provides an effective date of October 1, 2024.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0825.ECC
DATE: 1/8/2024
                                                   FULL ANALYSIS

                                            I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        Underground Facility Damage Prevention and Safety Act

        Chapter 556, F.S., is the “Underground Facility Damage Prevention and Safety Act” (Act). The goal of
        the Act is to identify and locate underground facilities 1 prior to an excavation or demolition to prevent
        injury to persons or property or interruption of services resulting from damage to those facilities. 2 To
        accomplish this, the Act creates a not-for-profit corporation to administer a free-access notification
        system whereby a person intending to conduct excavation or demolition activities can give prior notice
        to the system of the person’s intended activities, allowing operators of underground facilities the
        opportunity to identify and locate their nearby facilities.3 All operators of underground facilities in the
        state are required to be members of the corporation (“member operators”) and are required to use and
        participate in the system.4

        The not-for-profit corporation created under the Act is Sunshine State One-Call of Florida, Inc.
        (SSOCOF), which exercises its powers through a board of directors. 5 SSOCOF is required to provide a
        single toll-free telephone number within Florida which excavators can use to notify member operators
        of planned excavation or demolition activities through the system.6 The person intending to conduct
        excavation or demolition must notify the system not less than two full business days before beginning
        the operations, and not less than 10 full business days before beginning any excavation or demolition
        that is beneath state waters.7 The person must also provide specified identification, location, and
        operational information which remain valid for 30 calendar days. 8 Upon receipt of this notice, the
        system provides to the person a list of names of the member operators who will be advised of the
        notification.9

        The system operator in turn notifies the potentially affected member operators of the planned
        excavation or demolition activities.10 Within two full business days after the time the notification is
        received by the system (or 10 days if the proposed excavation is in proximity to facilities beneath state
        waters), potentially affected member operators must determine the location of their underground
        facilities in relation to the proposed excavation or demolition. 11 If this cannot be done in this time period,
        the member operator must contact the person giving notice and negotiate a new schedule and time that


1 S. 556.102(16),  F.S., defines “underground facility” as “any public or private personal property which is buried, placed
below ground, or submerged on any member operator’s right-of-way, easement, or permitted use which is being used
or will be used in connection with the storage or conveyance of water; sewage; electronic, telephonic, or telegraphic
communication; electric energy; oil; petroleum products; natural gas; optical signals; or other substances, and
includes, but is not limited to, pipelines, pipes, sewers, conduits, cables, valves, and lines. For purposes of this act, a
liquefied petroleum gas line regulated under chapter 527 is not an underground facility unless such line is subject to
the requirements of Title 49 C.F.R. adopted by the Department of Agriculture and Consumer Services, provided there is
no encroachment on any member operator’s right-of-way, easement, or permitted use. Petroleum storage systems
subject to regulation pursuant to chapter 376 are not considered underground facilities for the purposes of this act
unless the storage system is located on a member operator’s right-of-way or easement. Storm drainage systems are not
considered underground facilities.”
2 S. 556.101(3), F.S.
3 S. 556.101(2), F.S.
4 S. 556.103(1), F.S.
5 S. 556.103, F.S.
6 S. 556.104, F.S.
7 S. 556.105(1)(a), F.S.
8 S. 556.105(1)(c), F.S.
9 S. 556.105(3), F.S.
10 S. 556.105(5), F.S.
11 S. 556.105(5) and (9), F.S.
STORAGE NAME: h0825.ECC                                                                                            PAGE: 2
DATE: 1/8/2024
        is agreeable and does not unreasonably delay the excavator.12 If a member operator determines that a
        proposed excavation or demolition is in proximity to or conflicts with an underground facility, the
        member operator must identify the horizontal route of the facility in a specified manner.13

        An excavator is required to delay excavations until the first of the following events occurs: (1) each
        member operator’s underground facilities have been marked and located; (2) the excavator has been
        notified that no member operator has underground facilities in the area described in the notice; or (3)
        expiration of the time allowed for markings.14 If a member operator has not located and marked its
        underground facilities within the time allowed for marking, the excavator may proceed with the
        excavation, provided the excavator does so with reasonable care and uses detection equipment or
        other acceptable means to locate underground facilities.15 An excavator may not conduct demolition in
        an area until all member operators’ underground facilities have been marked and located or removed.16

        The Act also establishes violations of certain provisions as noncriminal infractions that are enforceable
        by citations which may be issued by any local or state law enforcement officer, government code
        inspector, or code enforcement officer.17 The Act establishes a civil penalty of $500, plus court costs,
        for such infractions.18 Violations of certain provisions involving an underground facility transporting
        hazardous materials regulated by the Pipeline and Hazardous Materials Safety Administration of the
        United States Department of Transportation (PHMSA) are noncriminal infractions subject to enhanced
        civil penalties of $2,500, plus court costs.19

        High-priority Subsurface Installations

        A high-priority subsurface installation (HPSI) is an “underground gas transmission or gas distribution
        pipeline, or an underground pipeline used to transport gasoline, jet fuel, or any other refined petroleum
        product or hazardous or highly volatile liquid, such as anhydrous ammonia or carbon dioxide.”20
        Currently, if an excavation is proposed within 15 feet of such an installation, as identified by the
        operator, the HPSI member operator shall notify the excavator of the existence of the installation and
        shall mark its location in the time frame provided by s. 556.105, F.S.21 After receiving this notice, the
        excavator must provide notice to the HPSI member operator of the planned excavation start date and
        time.22 If the HPSI member operator does not provide timely notice, the excavator may proceed to
        excavate without notifying the HPSI member operator of the excavation start date and time.23

        Increased Locate/Ticket Requests

        Due to increased development in Florida over the last decade, the number of locate requests to the
        SSOCOF system has increased over 50% from fiscal year (FY) 2014-2015 to FY 2022-2023.24 The
        growth in requests has made it difficult for SSOCOF to fulfill all of them within the two day timeframe
        required by law; approximately 16% of locate requests were not fulfilled within two days over
        SSOCOF’s last fiscal year.25 This allows excavators to proceed with reasonable care in conducting the
        excavation without member operators marking their facilities.

12 S. 556.105(5)(a),   F.S.
13 S. 556.105(5)(a)    and (b), F.S.
14 S. 556.105(6), F.S.
15 Id.
16 S. 556.105(6)(b), F.S.
17 S. 556.107, F.S.
18 S. 556.107(1)(c), F.S.
19 S. 556.107(1)(c)2., F.S.
20 S. 556.102(8), F.S.
21 S. 556.116(1), F.S.
22 Id. A failure to provide the date and start of an excavation is not listed among the five violations for which an excavator

can be issued a citation under s. 556.107(1)(a)2.
23 Id.
24 Compare Sunshine 881, 2014-15 Annual Report, p. 3, available at https://www.sunshine811.com/annual-reports (1.4

million tickets), with Sunshine 881, 2022-23 Annual Report, p. 3, available at https://www.sunshine811.com/annual-reports
(2.2 million tickets).
25 Email from Chris Lyon, Attorney, Lewis, Longman & Walker, P.A. representing Sunshine 811, HB 825, (Jan. 4, 2024).
STORAGE NAME: h0825.ECC                                                                                                PAGE: 3
DATE: 1/8/2024
         Effect of Bill

         Extension of Time

         The bill extends the time for excavators to notify SSOCOF before excavating from at least two full
         business days to at least three full business days.

         The bill also extends the time for potentially affected member operators to determine the location of
         their underground facilities in relation to a proposed excavation or demolition from two full business
         days to three full business days.

         Penalties for HPSI Infractions

         The bill makes an excavator’s failure to notify the HPSI member operator of the start time and date of a
         planned excavation (if the HPSI member operator has provided a timely notice of the existence of a
         HPSI) a violation under s. 556.107(1)(a)(2), F.S. This subjects the excavator to an enhanced civil
         penalty of $2,500 plus court costs for each infraction. 26

         The act will take effect October 1, 2024.

     B. SECTION DIRECTORY:
         Section 1. Amends s. 556.105, F.S., relating to procedures.

         Section 2. Amends s. 556.107, relating to violations.

         Section 3. Reenacts s. 556.102(8), F.S., relating to definitions.

         Section 4. Reenacts s. 556.108, F.S., relating to exemptions.

         Section 5. Reenacts s. 556.114(1)-(4), F.S., relating to low-impact marking practices.

         Section 6. Reenacts s. 556.116(1)-(2)(a)-(d), F.S., relating to high-priority subsurface installations.



                             II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
             The bill may have an indeterminate, positive impact on state government revenues.

             The bill adds that certain violations of s. 556.116(1), F.S., are subject to an enhanced civil penalty
             of $2,500 plus court costs. If a citation is issued by the State Fire Marshal for such a violation, 80
             percent of the civil penalty collected by the clerk of the court must be distributed to the State Fire
             Marshal and 20 percent must be retained by the clerk in addition to any court costs. 27 The
             significance of any increase in revenue as a result of this penalty depends entirely on compliance
             with and enforcement of s. 556.116(1), F.S.

         2. Expenditures:
             None.


26 S. 556.107(1)(c)(2),   F.S.
27 Id.
STORAGE NAME: h0825.ECC                                                                                       PAGE: 4
DATE: 1/8/2024
   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           The bill may have an indeterminate, positive impact on local government revenues.

           The bill adds that certain violations of s. 556.116(1), F.S., are subject to an enhanced civil penalty
           of $2,500 plus court costs. If the citation for a noncriminal infraction is issued by a local law
           enforcement officer, local government code inspector, or a code enforcement officer, 80 percent of
           the penalty collected will be distributed to the local governmental entity whose employee issued the
           citation and the remaining 20 percent will be retained by the clerk of the court to cover
           administrative costs. The significance of this increase, however, will depend entirely on compliance
           with and enforcement of Chapter 556, F.S.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       Excavators will become subject to a fine of $2,500 for failing to notify HPSI member operators of a
       planned excavation start time and date. This may encourage greater compliance with this provision of
       the Act.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
       Not applicable.




STORAGE NAME: h0825.ECC                                                                                    PAGE: 5
DATE: 1/8/2024
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           HB 825                                                                                                2024




    1                                         A bill to be entitled
    2               An act relating to underground facilities; amending s.
    3               556.105, F.S.; revising the timeframe within which an
    4               excavator is required to provide certain information
    5               through the free-access notification system
    6               established by Sunshine State One-Call of Florida,
    7               Inc., before beginning certain excavation or
    8               demolition activities; revising the timeframes during
    9               which member operators who receive such notifications
10                  are required to mark the horizontal route of an
11                  underground facility and provide a positive response
12                  to the system; making technical changes; reordering
13                  and amending s. 556.107, F.S., and reenacting
14                  paragraph (3)(a) of that section; providing a
15                  noncriminal infraction subject to enhanced civil
16                  penalties for a specified violation; making technical
17                  changes; reenacting ss. 556.102(8), 556.108, and
18                  556.114(1)-(4), F.S., relating to the definition of
19                  the term "high-priority subsurface installation,"
20                  exemptions to certain notification requirements, and
21                  low-impact marking practices, respectively, to
22                  incorporate the amendment made to s. 556.105, F.S., in
23                  references thereto; reenacting s. 556.116(1) and
24                  (2)(a)-(d), F.S., relating to high-priority subsurface
25                  installations, to incorporate the amendments made to

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        HB 825                                                                                                2024




26               ss. 556.105 and 556.107, F.S., in references thereto;
27               providing an effective date.
28
29      Be It Enacted by the Legislature of the State of Florida:
30
31               Section 1.        Paragraph (a) of subsection (1), paragraph (a)
32      of subsection (5), and paragraph (a) of subsection (9) of
33      section 556.105, Florida Statutes, are amended to read:
34               556.105      Procedures.—
35               (1)(a)      Not less than 3 2 full business days before
36      beginning any excavation or demolition that is not beneath the
37      waters of the state, and not less than 10 full business days
38      before beginning any excavation or demolition that is beneath
39      the waters of the state, an excavator shall provide the
40      following information through the system:
41               1.      The name of the individual who provided notification
42      and the name, address, including the street address, city,
43      state, zip code, and telephone number of her or his employer.
44               2.      The name and telephone number of the representative for
45      the excavator, and a valid electronic address to facilitate a
46      positive response by the system should be provided, if
47      available.
48               3.      The county, the city or closest city, and the street
49      address or the closest street, road, or intersection to the
50      location where the excavation or demolition is to be performed,

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        HB 825                                                                                                2024




51      and the construction limits of the excavation or demolition.
52               4.      The commencement date and anticipated duration of the
53      excavation or demolition.
54               5.      Whether machinery will be used for the excavation or
55      demolition.
56               6.      The person or entity for whom the work is to be done.
57               7.      The type of work to be done.
58               8.      The approximate depth of the excavation.
59               (5)         All member operators within the defined area of a
60      proposed excavation or demolition shall be promptly notified
61      through the system, except that member operators with state-
62      owned underground facilities located within the right -of-way of
63      a state highway need not be notified of excavation or demolition
64      activities and are under no obligation to mark or locate the
65      facilities.
66               (a)         If a member operator determines that a proposed
67      excavation or demolition is in proximity to or in conflict with
68      an underground facility of the member operator, except a
69      facility beneath the waters of the state, which is governed by
70      paragraph (b), the member operator must shall identify the
71      horizontal route by marking to within 24 inches from the outer
72      edge of either side of the underground facility by the use of
73      stakes, paint, flags, or other suitable means within 3 2 full
74      business days after the time the notification is received under
75      subsection (1). If the member operator is unable to respond

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         HB 825                                                                                                2024




 76      within such time, the member operator must shall communicate
 77      with the person making the request and negotiate a new schedule
 78      and time that is agreeable to, and should not unreasonably
 79      delay, the excavator.
 80               (9)(a)        After receiving notification from the system, a
 81      member operator shall provide a positive response to the system
 82      within 3 2 full business days, or 10 such days for an underwater
 83      excavation or demolition, indicating the status of operations to
 84      protect the facility.
 85               Section 2.         Paragraph (a) of subsection (1) of section
 86      556.107, Florida Statutes, is reordered and amended, and
 87      paragraph (a) of subsection (3) is reenacted, to read:
 88               556.107        Violations.—
 89               (1)         NONCRIMINAL INFRACTIONS.—
 90               (a)1.        Violations of the following provisions are
 91      noncriminal infractions:
 92               a.      Section 556.105(1), relating to providing required
 93      information.
 94               c.b.        Section 556.105(5)(c), relating to excavation
 95      practices in tolerance zones.
 96               d.c.        Section 556.105(6), relating to the avoidance of
 97      excavation.
 98               e.d.        Section 556.105(11), relating to the need to stop
 99      excavation or demolition because marks are no longer visible,
100      or, in the case of underwater facilities, are inadequately

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         HB 825                                                                                                2024




101      documented.
102               f.e.        Section 556.105(12), relating to the need to cease
103      excavation or demolition activities because of contact or damage
104      to an underground facility.
105               b.f.        Section 556.105(5)(a) and (b), relating to
106      identification of underground facilities, if a member operator
107      does not mark an underground facility, but not if a member
108      operator marks an underground facility incorrectly.
109               g.      Section 556.109(2), relating to falsely notifying the
110      system of an emergency situation or condition.
111               h.      Section 556.114(1), (2), (3), and (4), relating to a
112      failure to follow low-impact marking practices, as defined
113      therein.
114               2.      Violations of the following provisions involving an
115      underground facility transporting hazardous materials that are
116      regulated by the Pipeline and Hazardous Materials Safety
117      Administration of the United States Department of Transportation
118      are noncriminal infractions, subject to enhanced civil penalties
119      under paragraph (c):
120               a.      Section 556.105(1), relating to providing required
121      information.
122               b.      Section 556.105(5)(c), relating to excavation practices
123      in tolerance zones.
124               c.      Section 556.105(6), relating to the avoidance of
125      certain excavation.

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         HB 825                                                                                                2024




126               d.      Section 556.105(11), relating to the need to stop
127      excavation or demolition because certain marks are removed, no
128      longer visible, or inadequately documented.
129               e.      Section 556.105(12), relating to the need to cease
130      excavation or demolition activities because of contact or damage
131      to an underground facility.
132               f.      Section 556.116(1), relating to a failure to notify of
133      the planned excavation start date and time before beginning
134      excavation, if the member operator provides timely notice of the
135      existence of a high-priority subsurface installation.
136               (3)         MISDEMEANORS.—
137               (a)         Any person who knowingly and willfully removes or
138      otherwise destroys the valid stakes or other valid physical
139      markings described in s. 556.105(5)(a) and (b) used to mark the
140      horizontal route of an underground facility commits a
141      misdemeanor of the second degree, punishable as provided in s.
142      775.082 or s. 775.083. For purposes of this subsection, stakes
143      or other nonpermanent physical markings are considered valid for
144      30 calendar days after information is provided to the system
145      under s. 556.105(1)(a).
146               Section 3.         For the purpose of incorporating the amendment
147      made by this act to section 556.105, Florida Statutes, in a
148      reference thereto, subsection (8) of section 556.102, Florida
149      Statutes, is reenacted to read:
150               556.102        Definitions.—As used in this act:

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151               (8)         "High-priority subsurface installation" means an
152      underground gas transmission or gas distribution pipeline, or an
153      underground pipeline used to transport gasoline, jet fuel, or
154      any other refined petroleum product or hazardous or highly
155      volatile liquid, such as anhydrous ammonia or carbon dioxide, if
156      the pipeline is deemed to be critical by the operat or of the
157      pipeline and is identified as a high-priority subsurface
158      installation to an excavator who has provided a notice of intent
159      to excavate under s. 556.105(1), or would have been identified
160      as a high-priority subsurface installation except for the
161      excavator's failure to give proper notice of intent to excavate.
162               Section 4.         For the purpose of incorporating the amendment
163      made by this act to section 556.105, Florida Statutes, in a
164      reference thereto, section 556.108, Florida Statutes, is
165      reenacted to read:
166               556.108        Exemptions.—The notification requirements provided
167      in s. 556.105(1) do not apply to:
168               (1)         Any excavation or demolition performed by the owner of
169      a single-family residential property, not including property
170      that is subdivided or is to be subdivided into more than one
171      single-family residential property; or for such owner by a
172      member operator or an agent of a member operator when such
173      excavation or demolition is made entirely on such land, and only
174      up to a depth of 10 inches; provided due care is used and there
175      is no encroachment on any member operator's right-of-way,

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176      easement, or permitted use.
177               (2)         Any excavation or demolition associated with normal
178      agricultural or railroad activities, provided such activities
179      are not performed on any operator's marked right-of-way,
180      easement, or permitted use.
181               (3)         Any excavation or demolition that occurs as the result
182      of normal industrial activities, provided such activities are
183      confined to the immediate secured property of the facility and
184      the activities are not performed on any operator's marked right-
185      of-way, easement, or permitted use. For the purposes of this
186      act, the industrial activities are limited to the following list
187      of Standard Industrial Classifications: Industry Group Numbers
188      141, 206, 242, 243, and 491, and Major Group Numbers 13, 26, 28,
189      and 29, as published by the United States Office of Management
190      and Budget in 1987.
191               (4)         Any excavation of 18 inches or less for:
192               (a)         Surveying public or private property by surveyors or
193      mappers as defined in chapter 472 and services performed by a
194      pest control licensee under chapter 482, excluding marked
195      rights-of-way, marked easements, or permitted uses where marked,
196      if mechanized equipment is not used in the process of such
197      surveying or pest control services and the surveying or pest
198      control services are performed in accordance with the practice
199      rules established under s. 472.027 or s. 482.051, respectively;
200               (b)         Maintenance activities performed by a state agency and

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201      its employees when such activities are within the right-of-way
202      of a public road; however, if a member operator has permanently
203      marked facilities on such right-of-way, mechanized equipment may
204      not be used without first providing notification; or
205               (c)         Locating, repairing, connecting, adjusting, or routine
206      maintenance of a private or public underground utility facility
207      by an excavator, if the excavator is performing such work for
208      the current owner or future owner of the underground facility
209      and if mechanized equipment is not used.
210               (5)(a)        Any excavation with hand tools by a member operator
211      or an agent of a member operator for:
212               1.      Locating, repairing, connecting, or protecting, or
213      routine maintenance of, the member operator's underground
214      facilities; or
215               2.      The extension of a member operator's underground
216      facilities onto the property of a person to be served by such
217      facilities.
218               (b)         The exemption provided in this subsection is limited
219      to excavations to a depth of 30 inches if the right -of-way has
220      permanently marked facilities of a company other than the member
221      operator or its agents performing the excavation.
222               Section 5.         For the purpose of incorporating the amendment
223      made by this act to section 556.105, Florida Statutes, in
224      references thereto, subsections (1) through (4) of section
225      556.114, Florida Statutes, are reenacted to read:

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226               556.114        Low-impact marking practices.—
227               (1)         An excavator providing notice under s. 556.105(1)(a)
228      shall identify in its notice only the area that will be
229      excavated during the period that the information in such notice
230      is considered valid under s. 556.105(1)(c).
231               (2)         When an excavator has not completed an excavation
232      noticed under s. 556.105(1)(a) within the period that the
233      information in the notice is considered valid under s.
234      556.105(1)(c), the excavator must provide a subsequent notice to
235      the system under s. 556.105(1)(a) to continue with the
236      excavation, and such subsequent notice shall identify only the
237      remaining area to be excavated.
238               (3)         When an excavation site cannot be described in
239      information provided under s. 556.105(1)(a) with sufficient
240      particularity to enable the member operator to ascertain the
241      excavation site, and if the excavator and member operator have
242      not mutually agreed otherwise, the excavator shall premark the
243      proposed area of the excavation before a member operator is
244      required to identify the horizontal route of its underground
245      facilities in the proximity of any excavation. However,
246      premarking is not required when the premarking could reasonably
247      interfere with traffic or pedestrian control.
248               (4)         A member operator shall identify the horizontal route
249      of its underground facilities as set forth in s. 556.105(5)(a)
250      and (b), and excavators shall premark an excavation site as set

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251      forth in subsection (3) using flags or stakes or temporary,
252      nonpermanent paint or other industry-accepted low-impact marking
253      practices.
254               Section 6.         For the purpose of incorporating the amendments
255      made by this act to sections 556.105 and 556.107, Florida
256      Statutes, in references thereto, subsection (1) and paragraphs
257      (a) through (d) of subsection (2) of section 556.116, Florida
258      Statutes, are reenacted to read:
259               556.116        High-priority subsurface installations; special
260      procedures.—
261               (1)         When an excavator proposes to excavate or demolish
262      within 15 feet of the horizontal route of an underground
263      facility that has been identified as a high-priority subsurface
264      installation by the operator of the facility, the operator
265      shall, in addition to identifying the horizontal route of its
266      facility as set forth in s. 556.105(5)(a) and (b), and within
267      the time period set forth in s. 556.105(9)(a) for a positive
268      response, notify the excavator that the facility is a high -
269      priority subsurface installation. If the member operator
270      provides such timely notice of the existence of a high-priority
271      subsurface installation, an excavator shall notify the operator
272      of the planned excavation start date and time before beginning
273      excavation. If the member operator does not provide timely
274      notice, the excavator may proceed, after waiting the prescribed
275      time period set forth in s. 556.105(9)(a), to excavate without

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276      notifying the member operator of the excavation start date and
277      time. The exemptions stated in s. 556.108 apply to the
278      notification requirements in this subsection.
279               (2)(a)        An alleged commission of an infraction listed in s.
280      556.107(1) which results in an incident must be reported to the
281      system and the State Fire Marshal by a member operator or an
282      excavator within 24 hours after learning of the alleged
283      occurrence of an incident.
284               (b)         Upon receipt of an allegation that an incident has
285      occurred, the member operator or excavator shall transmit an
286      incident report to the State Fire Marshal, who shall conduct an
287      investigation to determine whether an incident has occurred,
288      and, if so, whether a violation of s. 556.107(1)(a) was a
289      proximate cause of the incident. The State Fire Marshal may
290      authorize his or her agents, as provided in ss. 633.114,
291      633.116, and 633.118, to conduct investigations of incidents.
292               (c)         The State Fire Marshal or his or her agents as
293      provided in ss. 633.114, 633.116, and 633.118 may issue a
294      citation and impose a civil penalty against a violator in an
295      amount not to exceed $50,000 if the person violated a provision
296      of s. 556.107(1)(a) and that violation was a proximate cause of
297      the incident. However, if a state agency or political
298      subdivision caused the incident, the state agency or political
299      subdivision may not be fined in an amount in excess of $10,000.
300               (d)         The civil penalty imposed under this subsection is in

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301      addition to any amount payable as a result of a citation
302      relating to the incident under s. 556.107(1)(a).
303               Section 7.        This act shall take effect October 1, 2024.




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