Bill > S0940

This bill modifies Florida's regulations regarding municipal water and sewer utility rates for consumers both inside and outside municipal boundaries. The bill eliminates the previous 25% surcharge limit for consumers outside city limits and removes the requirement that total rates cannot exceed 50% above in-city rates. Instead, municipalities can now charge rates that are just and equitable, based on the same factors used for in-city customers. The bill allows municipalities to continue existing bond covenant surcharges only until those debts are retired, refinanced, or expire. Additionally, the legislation requires municipalities to submit a comprehensive rate study to the Department of Environmental Protection every seven years, which must evaluate future capital investment needs, revenue sufficiency, and cost distribution among customer classes. Smaller municipalities serving fewer than 10,000 water or sewer customers can petition for a two-year extension to complete this study if they can demonstrate undue financial or administrative burden. The bill will take effect on July 1, 2026, providing municipalities time to adjust to the new requirements.

https://www.flsenate.gov/Session/Bill/2026/940