HB 1331 (Busatta Cabrera) substantially amends provisions of law relating to municipal water and electric utility extraterritorial surcharges, extraterritorial service and transfers of enterprise funds to general revenue. The bill amends Section 166.281, Florida Statutes, to provide that a municipal utility may impose and collect an extraterritorial surcharge that is based on the percentage of utility customers located outside of the municipal boundaries but specifies the surcharge may not exceed 10%. It prohibits a municipality from using the proceeds of the surcharge in a manner that is substantially similar to the levy of a public service tax by the municipality under Section 166.231. The bill would subject a municipal electric utility to regulation by the Public Service Commission if the utility provides service to customers located outside the corporate boundaries of the municipality. The bill would also subject a municipal water or wastewater utility to regulation by the Public Service Commission. The bill authorizes a municipal utility to transfer a portion of its earnings to the general fund of the municipality for public utility purposes. It specifies that if the utilities are supplied to customers within the municipal boundaries, the percentage of transfer shall be a fixed amount expressed as a percentage. If services are provided to customers outside of the municipal boundary, the percentage of transfer shall be a variable amount based on the percentage of customers located outside of the municipal boundaries. The bill requires the amount of the fund transfer to be established by local referendum, subject to a majority vote of customers located within and outside a municipality voting in the referendum. The bill prohibits the transfer of utility earnings to the general fund for nonpublic utility purposes and provides that a municipality that violates this provision may not receive state funds for infrastructure projects or water-related projects. (O’Hara)