Florida SB 940: Professional Structural Engineers

Bill Text

940 
Municipal Water and Sewer Utility Rates, Fees, and Charges 
2025-12-17T07:08:50Z 
Deleting a limitation on the amount of rates, fees, and charges municipal water and sewer utilities are authorized to impose on consumers for such services outside the boundaries of the municipality; providing for the continuance and phase out of certain bond covenant surcharges; requiring municipalities operating such utilities to submit a specified rate study every 7 years to the Department of Environmental Protection which evaluates certain information, etc. 
Original Filed Version 
2026 
S 
2026-07-01T00:00:00Z 
GB 
General Bill 
__ 

 Florida Senate - 2026 SB 940 

 By Senator McClain 

 9-00462-26 2026940__ 
 1 A bill to be entitled 
 2 An act relating to municipal water and sewer utility 
 3 rates, fees, and charges; amending s. 180.191, F.S.; 
 4 deleting a limitation on the amount of rates, fees, 
 5 and charges municipal water and sewer utilities are 
 6 authorized to impose on consumers for such services 
 7 outside the boundaries of the municipality; providing 
 8 for the continuance and phase out of certain bond 
 9 covenant surcharges; requiring municipalities 
 10 operating such utilities to submit a specified rate 
 11 study every 7 years to the Department of Environmental 
 12 Protection which evaluates certain information; 
 13 authorizing certain municipalities to apply for an 
 14 extension to complete such study; authorizing the 
 15 department to grant such extensions under certain 
 16 conditions; providing an effective date. 
 17 
 18 Be It Enacted by the Legislature of the State of Florida: 
 19 
 20 Section 1. Subsection (1) of section 180.191, Florida 
 21 Statutes, is amended, and subsection (5) is added to that 
 22 section, to read: 
 23 180.191 Limitation on rates charged consumer outside city 
 24 limits.— 
 25 (1) Any municipality within this the state which operates 
 26 operating a water or sewer utility outside of the boundaries of 
 27 the such municipality shall charge consumers outside the 
 28 boundaries rates, fees, and charges determined in one of the 
 29 following manners: 
 30 (a) It may charge the same rates, fees, and charges as 
 31 consumers inside the municipal boundaries. However, in addition 
 32 thereto, the municipality may add a surcharge of not more than 
 33 25 percent of such rates, fees, and charges to consumers outside 
 34 the boundaries. Fixing of such rates, fees, and charges in this 
 35 manner shall not require a public hearing except as may be 
 36 provided for service to consumers inside the municipality. 
 37 (b) It may charge rates, fees, and charges that are just 
 38 and equitable and that which are based on the same factors used 
 39 in fixing the rates, fees, and charges for consumers inside the 
 40 municipal boundaries. The In addition thereto, the municipality 
 41 may add a surcharge not to exceed 25 percent of such rates, 
 42 fees, and charges for said services to consumers outside the 
 43 boundaries. However, the total of all such rates, fees, and 
 44 charges for the services to consumers outside the boundaries 
 45 shall not be more than 50 percent in excess of the total amount 
 46 the municipality charges consumers served within the 
 47 municipality for corresponding service. No Such rates, fees, and 
 48 charges may not shall be fixed until after a public hearing at 
 49 which all of the users of the water or sewer systems; owners, 
 50 tenants, or occupants of property served or to be served 
 51 thereby; and all others interested shall have had an opportunity 
 52 to be heard concerning the proposed rates, fees, and charges. 
 53 Any change or revision of the such rates, fees, or charges may 
 54 be made in the same manner as the such rates, fees, or charges 
 55 were originally established, but if a such change or revision is 
 56 to be made substantially pro rata as to all classes of service, 
 57 both inside and outside the municipality, a no hearing or notice 
 58 is not shall be required. 
 59 
 60 Notwithstanding paragraphs (a) and (b), a municipality may 
 61 continue to impose a surcharge on consumers outside the 
 62 municipal boundaries only to the extent necessary to comply with 
 63 the terms of bond covenants in effect as of July 1, 2024. Such 
 64 surcharges must be phased out upon retirement, expiration, or 
 65 refinancing of the applicable debt obligation. 
 66 (5)(a) By January 1, 2028, and every 7 years thereafter, 
 67 each municipality subject to subsection (1) shall submit a rate 
 68 study to the Department of Environmental Protection which, at a 
 69 minimum, evaluates all of the following: 
 70 1. The utility’s future capital investment needs. 
 71 2. Whether the utility’s rates are expected to generate 
 72 sufficient revenues to cover its operating and maintenance 
 73 costs, to satisfy its existing debt service obligations, and to 
 74 support current and planned capital investments. 
 75 3. Whether costs a