Economic Infrastructure Subcommittee, Wednesday, March 5, 2025
Summary
Meeting packet for the Florida House of Representatives Commerce Committee Economic Infrastructure Subcommittee, Wednesday, March 5, 2025, 10:15 am – 12:15 pm, Reed Hall (102 HOB). The agenda lists consideration of HB 11, Municipal Water and Sewer Utility Rates, and a panel discussion on Utility Use of the Public Right-of-Way. The bill analysis states that a municipality which operates a water or sewer utility outside its municipal boundaries must charge consumers in a separate municipality the same rates, fees, and charges as it charges consumers within its boundaries, if it uses a treatment plant located in the separate municipality. It provides an effective date of July 1, 2025, and says the bill may have an indeterminate negative impact on certain local government revenues.
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Economic Infrastructure Subcommittee
Wednesday, March 5, 2025
10:15 AM - 12:15 PM
Reed Hall (102 HOB)
Daniel Perez Chip LaMarca
Speaker Chair
The Florida House of Representatives
Commerce Committee
Economic Infrastructure Subcommittee
Daniel Perez Chip LaMarca
Speaker Chair
Meeting Agenda
Wednesday, March 5, 2025
10:15 am – 12:15 pm
Reed Hall (102 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• HB 11 Municipal Water and Sewer Utility Rates by Robinson, F.
V. Panel Discussion on Utility Use of the Public Right-of-Way
VI. Closing Remarks
VII. Adjournment
214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
(850) 717-4870
HB 11
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 11 COMPANION BILL: SB 202 (Jones)
TITLE: Municipal Water and Sewer Utility Rates LINKED BILLS: None
SPONSOR(S): Robinson, F. RELATED BILLS: None
Committee References
Economic Infrastructure Intergovernmental Affairs Commerce
SUMMARY
Effect of the Bill:
The bill states that a municipality which operates a water or sewer utility outside its municipal boundaries must
charge consumers outside its boundaries the same rates, fees, and charges as it charges consumers within its
boundaries if:
The consumers are located in a separate municipality, and
The municipality providing service uses a water or sewer treatment plant located in the separate
municipality to serve those consumers.
Fiscal or Economic Impact:
The bill may have an indeterminate negative impact on certain local government revenues.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill provides that a municipally owned utility which provides water or sewer services outside of its municipal
boundaries must charge consumers outside its boundaries the same rates, fees, and charges as it charges
consumers within its boundaries if:
The consumers are located in a separate municipality, and
The municipality providing service uses a water or sewer treatment plant located in the separate
municipality to serve those consumers. (Section 1).
The bill provides an effective date of July 1, 2025. (Section 2).
FISCAL OR ECONOMIC IMPACT:
LOCAL GOVERNMENT:
The bill may have a negative fiscal impact on municipalities which own and operate water or sewer utilities and
serve consumers 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 consumers.
PRIVATE SECTOR:
The bill may result in cost savings for certain municipal water and sewer utility consumers located outside of
municipal boundaries.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Municipally Owned Utilities
STORAGE NAME: h0011.EIS
DATE: 3/4/2025
1
Pursuant to Art. VIII, s. 2(b), of the Florida 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 provided water service and approximately 220 municipalities provided
wastewater service. Of these municipalities, the study found that approximately 140 provided water and/or
wastewater services to consumers outside of their municipal boundaries, which may have included consumers in
unincorporated areas of counties or in other municipalities.8 These utility systems are exempt from the jurisdiction
of the Florida Public Service Commission.9
Municipal Utility Rates, Fees, and Charges Outside of Municipal Boundaries
A municipality that operates a water or sewer utility outside of its municipal boundaries may impose higher rates,
fees, and charges on consumers receiving service outside of its corporate boundaries as compared to the rates,
fees, and charges imposed on consumers within its boundaries. The municipality can accomplish this in two ways:
First, for consumers outside of its boundaries, it may add a surcharge of up to 25 percent of the rates, fees,
and charges imposed on consumers within its boundaries. This mechanism does not require a public
hearing.10
Second, it may set separate rates, fees, and charges for consumers outside its boundaries based on the same
factors used to set rates for consumers 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 consumers outside its
boundaries may not exceed the total charges to consumers 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
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, gas 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. 367.022(2), F.S.
10 S. 180.191(1)(a), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
be served by the water or sewer utilities and all other interested persons will have an opportunity to be
heard concerning the proposed rates. 11
There is no central repository for information concerning municipal water or sewer service rates that identifies
municipalities that impose higher rates on consumers 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.
Additional Relevant Information
Art. VII, s. 18(b), of the Florida Constitution states that the legislature may not enact any law that would reduce the
authority municipalities or counties have to raise revenues in the aggregate, except upon approval of two-thirds of
the membership of each house of the legislature.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Economic Infrastructure Keating Bauldree
Subcommittee
Intergovernmental Affairs
Subcommittee
Commerce Committee
11 S. 180.191(1)(b), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 11 2025
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 consumers 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
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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 shall have had an opportunity to be heard concerning
47 the proposed rates, fees, and charges. Any change or revision of
48 the such rates, fees, or charges may be made in the same manner
49 as the such rates, fees, or charges were originally established,
50 but if a such change or revision is to be made substantially pro
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51 rata as to all classes of service, both inside and outside the
52 municipality, a no hearing or notice is not shall be required.
53 (2) Any municipality within this state that operates a
54 water or sewer utility providing service to consumers within the
55 boundaries of a separate municipality using a water treatment
56 plant or sewer treatment plant located within the boundaries of
57 that separate municipality shall charge consumers in the
58 separate municipality the same rates, fees, and charges as it
59 charges the consumers within its own municipal boundaries.
60 Section 2. This act shall take effect July 1, 2025.
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