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Backup Documents 02/14/2012 Item # 6AITEM #: BCC DATE: --� —� 6A BY: HillerGeorgia - - From: Bacot, Brett [Brett.Bacot @fowlerwhite.com] Sent: Monday, February 13, 2012 3:31 PM To: HillerGeorgia Subject: RE: Legislative Update Hello Commissioner Hiller, Sorry for the delay! HB 107 Special Districts has passed all committee assignments and is on 2nd reading on the House Floor. Bills are typically introduces 3 times on the floor before final passage. Once HB 107 is placed on the Special Order calendar, it will be read a 2nd time and possibly amended and then it will be placed on final passage shortly thereafter. The bill has not been placed on Special Order in the House this week as of yet. The Senate bill, SB 192, is in the Senate Budget Committee, but not on the agenda for their Wed. meeting. They are meeting Thursday as well, but the agenda has not been released yet. Thank you. - - - -- Original Message---- - From: HillerGeorgia [ mailto :GeoreiaHillerfacolliereov.net1 Sent: Saturday, February 11, 2012 7:46 AM To: Bacot, Brett Subject: Re: Legislative Update Brett, What's up with the special districts consolidation bill? Georgia Hiller Commissioner, District 2 On Feb 10, 2012, at 6:42 PM, "Bacot, Brett" <Brett.Bacot(afowlerwhite.com> wrote: > Please see the attached file for this week's legislative update. Thank you. > rcid: image003 .ipg(@OICCE823.AEC5CDC01 > Brett Bacot > Fowler White Boggs P.A. > 101 N. Monroe Street, Suite 1090 > Tallahassee, Florida 32301 > Direct: 850 681 4269 > Fax: > www.fowlerwhite. com<http: / /www.fowlerwhite.com> > ------------------------------------------------------------------------------------------- ---------------- > Disclaimer under IRS Circular 230: Unless expressly stated otherwise in this transmission, nothing contained in this message is intended or written to be used, nor may it be relied upon or used, (1) by any taxpayer for the purpose of avoiding penalties that may be imposed 6A on the taxpayer under the Internal Revenue Code of 1986, as amended and /or (2) by any person to support the promotion or marketing of or to recommend any Federal tax transaction(s) or matter(s) addressed in this message. > If you desire a formal opinion on a particular tax matter for the purpose of avoiding the imposition of any penalties, we will discuss the additional Treasury requirements that must be met and whether it is possible to meet those requirements under the circumstances, as well as the anticipated time and additional fees involved. > ------------------------------------------------------------------------------------- - - - - -- ---------------- > Confidentiality Disclaimer: This e-mail message and any attachments are private communication sent by a law firm, Fowler White Boggs P.A., and may contain confidential, legally privileged information meant solely for the intended recipient. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. Please notify the sender immediately by replying to this message, then delete the e-mail and any attachments from your system. Thank you. > <image003.jpg> > <Local Govt 3 2- 10- 12.pdf> Under Florida Law, e-mail addresses are public records. If you do not want your e-mail address released in response to a public records request, do not send electronic mail to this entity. Instead, contact this office by telephone or in writing. 2 i HillerGeorgia 6A I.. I From: Bacot, Brett [Brett.Bacot @fowlerwhite.com] Sent: Monday, February 13, 2012 4:24 PM To: HillerGeorgia Subject: RE: Legislative Update Attachments: SB 192 Special Districts Analysis.pdf Both bill were amended at the last committee stop and now appear to be matching. I haven't had the chance to read through both, but I have attached a staff analysis of SB 192 reflecting the adopted amendments at the last committee stop matching the House bill. - - - -- Original Message---- - From: HillerGeorgia fmailto :GeorgiaHiller(@colliergov.netl Sent: Monday, February 13, 2012 4:08 PM To: Bacot, Brett Subject: Re: Legislative Update I heard both were amended to match eachother - do you know how? Georgia Hiller Commissioner, District 2 On Feb 13, 2012, at 3:31 PM, "Bacot, Brett" <Brett.Bacot(o)fowlerwhite.com> wrote: > Hello Commissioner Hiller, > Sorry for the delay! > HB 107 Special Districts has passed all committee assignments and is on 2nd reading on the House Floor. Bills are typically introduces 3 times on the floor before final passage. Once HB 107 is placed on the Special Order calendar, it will be read a 2nd time and possibly amended and then it will be placed on final passage shortly thereafter. The bill has not been placed on Special Order in the House this week as of yet. > The Senate bill, SB 192, is in the Senate Budget Committee, but not on the agenda for their Wed. meeting. They are meeting Thursday as well, but the agenda has not been released yet. > Thank you. > - - - -- Original Message---- - > From: HillerGeorgia fmailto :GeorgiaHiller @colliereov.netl > Sent: Saturday, February 11, 2012 7:46 AM > To: Bacot, Brett > Subject: Re: Legislative Update > Brett, > What's up with the special districts consolidation bill? > Georgia Hiller > Commissioner, District 2 > On Feb 10, 2012, at 6:42 PM, "Bacot, Brett" <Brett.Bacot(@fowlerwhite.com> wrote: >> Please see the attached file for this week's legislative update. Thank you. 1 >> » fcid: image003 .jpg(@01CCE823.AEC5CDC01 6A >> Brett Bacot >> Fowler White Boggs P.A. >> 101 N. Monroe Street, Suite 1090 >> Tallahassee, Florida 32301 >> Direct: 850 681 4269 >> Fax: >> www.fowlerwhite. com<http: / /www.fowlerwhite.com> >> ------------------------------------------------------------------------------------------ ----------------- >> Disclaimer under IRS Circular 230: Unless expressly stated otherwise in this transmission, nothing contained in this message is intended or written to be used, nor may it be relied upon or used, (1) by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended and /or (2) by any person to support the promotion or marketing of or to recommend any Federal tax transaction(s) or matter(s) addressed in this message. >> If you desire a formal opinion on a particular tax matter for the purpose of avoiding the imposition of any penalties, we will discuss the additional Treasury requirements that must be met and whether it is possible to meet those requirements under the circumstances, as well as the anticipated time and additional fees involved. >> ------------------------------------------------------------------------------------------ ----------------- >> Confidentiality Disclaimer: This e-mail message and any attachments are private communication sent by a law firm, Fowler White Boggs P.A., and may contain confidential, legally privileged information meant solely for the intended recipient. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. Please notify the sender immediately by replying to this message, then delete the e-mail and any attachments from your system. Thank you. >> <image003.jpg> >> <Local Govt 3 2- 10- 12.pdf> > Under Florida Law, e-mail addresses are public records. If you do not want your e-mail address released in response to a public records request, do not send electronic mail to this entity. Instead, contact this office by telephone or in writing. Under Florida Law, e-mail addresses are public records. If you do not want your e-mail address released in response to a public records request, do not send electronic mail to this entity. Instead, contact this office by telephone or in writing. 2 The Florida Senate 6A BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) Prepared By: The Professional Staff of the Budget Subcommittee on Finance and Tax BILL: CS /SB 192 INTRODUCER: Senator Bennett SUBJECT: Special Districts DATE: February 1, 2012 REVISED: ANALYST 1. Toman 2. Babin 3. 4. 5. 6. STAFF DIRECTOR REFERENCE Yeatman CA Diez- Arguelles FT Favorable Fav /CS ACTION Please see Section Vlll. for Additional Information: A. COMMITTEE SUBSTITUTE..... a Statement of Substantial Changes B. AMENDMENTS ........................ F-1 Technical amendments were recommended Amendments were recommended Significant amendments were recommended I. Summary: This committee substitute ( "the bill ") significantly amends statutory provisions relating to the dissolution and merger of special districts, both voluntarily and involuntarily. Dependent Special Districts — This bill provides that a merger or dissolution of a dependent district may be accomplished by ordinance of the general - purpose local government where the district is located, but that mergers or dissolutions of dependent special districts operating pursuant to a special act can only be accomplished by further legislative action. Independent Special Districts — Dissolutions— This bill provides that for voluntary dissolutions of independent special districts operating pursuant to a special act, the dissolution may be effectuated only by the Legislature. For all other dissolutions of independent special districts operating pursuant to a special act, a special act dissolving the district must be approved by a referendum. The bill provides, however, that if the district meets the requirements for being considered "inactive," no referendum is needed. BILL: CS /SB 192 6A Page 2 Independent Special Districts — Mergers— This bill creates a new procedure that allows two or more contiguous independent special districts with similar functions and governing bodies that were created by special act of the Legislature to voluntarily merge prior to a special act merging them. The bill allows merger proceedings to be initiated either by joint resolution of the governing bodies of each district or by a petition signed by 40 percent or more of the qualified electors in each district. The bill requires independent special districts that are merging to adopt a merger plan that outlines the specific components for the proposed merger which shall be subject to a public hearing and a voter referendum. The bill states that a voluntary merger under the new procedure preempts any special act to the contrary, but that the procedure does not apply to independent special districts whose governing bodies are elected by district landowners voting the acreage owned within the district. The bill also repeals current statutory provisions addressing the merger of independent special fire control districts. In addition, it allows the Department of Economic Opportunity to declare a special district inactive if the district's governing body unanimously adopts a resolution declaring inactivity. This bill substantially amends sections 189.4042, 191.014, and 189.4044 of the Florida Statutes. II. Present Situation: Special Districts Special Districts are governed by the Uniform Special District Accountability Act of 1989 in Chapter 189, F.S.I A "special district" is a confined local government unit established for a special purpose.2 A special district can be created by general law, special act, local ordinance, or by rule of the Governor and Cabinet.3 A special district does not include: • A school district, • A community college district, • A special improvement district (Seminole and Miccosukee Tribes under s. 285.17, F.S.), • A municipal service taxing or benefit unit (MSTU/MSBU), or • A political subdivision board of a municipality providing electrical service.4 Special districts have similar governing powers and restrictions as counties and municipalities.5 Like other forms of local government, special districts operate through a governing board and can "enter contracts, employ workers ... issue debt, impose taxes, levy assessments and ... ' Ch. 189, F.S., see s. 189.401, F.S. '` Section 189.403(1), F.S. 3 Id. 4 id 5 Mizany, Kimia and April Manatt, WHAT'S SO SPECIAL ABOUT SPECIAL DISTRICTS? CITIZENS GUIDE TO SPECIAL DISTRICTS IN CALIFORNIA, 3rd ed., 2 (Feb. 2002). M, BILL: CS /SB 192 Page 3 charge fees for their services. "6 Special districts are held accountable to the public and are therefore subject to public sunshine laws and financial reporting requirements. There are two types of special districts in Florida: dependent special districts and independent special districts. With some exceptions, dependent special districts are districts created by individual counties and municipalities. Dependent special districts must meet at least one of the following classifications: • The membership of its governing body is identical to the governing body of a single county or municipality. • All members of its governing body are appointed by the governing body of a single county or municipality. • During their unexpired terms, members of the special district's governing body are subject to removal at will by the governing body of a single county or municipality. • The district has a budget that requires approval through an affirmative vote or can be vetoed by the governing body of a single county or municipality.8 An independent special district is a district that does not meet any of the statutory classifications of a dependent special district.9 Independent special districts may encompass more than one county. 10 The public policy behind special districts is to provide an alternative governing method to "manage, own, operate, construct and finance basic capital infrastructure, facilities and services. "II The Special District Information Program The Special District Information Program (SDIP), administered by the Division of Community Development in the Department of Economic Opportunity (DEO or Department), is designed to collect, ulpdate, and share detailed information on Florida's special districts with state and local agencies. 2 The Department also maintains an official master list of the individual functions and status of all the dependent and independent special districts throughout the state. 13 As of January 2012, there were 1,636 special districts in the state of Florida: 630 dependent districts and 1,006 independent districts. 14 Examples of special districts in Florida include, but are not limited to, 6 Id. (alteration to original) (citation omitted). 7 Presentation by Jack Gaskins Jr., from the Division of Community Development in the Department of Economic Opportunity, SPECIAL DISTRICT BASICS PRESENTATION (October 4, 2011) (on file with the Senate Committee on Community Affairs). See also ss. 189.417 and 189.418, F.S. 5 Section 189.403(2)(a) -(d), F.S. 9 Section 189.403(3), F.S. 10 Id " Section 189.402(4)(a), F.S. 12 Florida Department of Economic Opportunity, Special Districts Information Program (available online at http: / /www. floridaj obs.org/community- planning- and- development/assistance- for - governments- and - organizations /special- district- information - program) (last visited on January 19, 2011). 13 Sections 189.412(2) and 189.403 5, F.S. See also Florida Department of Economic Opportunity, Official List of Special Districts Online, (available online at http: / /dca.deo.myflorida.com /fhed /sdip /OfficialListdeo /index cfm) (last visited on January 25, 2011). 14 Florida Department of Economic Opportunity, Special Districts Information Program (available online at http: / /dca.deo. mvflorida. com /fhcd/ sdip /OfficialListdeo /StateTotals cfm) (last visited on January 25, 2012). BILL: CS /SB 192 ba Page 4 water management districts, community development districts, housing authority districts, fire control and rescue districts, mosquito control districts, and transportation districts. 15 Current Merger and Dissolution Procedures Section 189.4042, F.S., specifies the requirements for the merger or dissolution of a special district. This section provides that the merger or dissolution of a special district "created and operating pursuant to a special act may only be effectuated by the Legislature unless otherwise provided by general law." 16 Florida Statutes currently do not provide statutory guidelines to facilitate the merger of independent special districts prior to a Legislative Act. An independent special district that is created by a county or municipality can be merged or dissolved by the county or municipality that created the special district pursuant to the same procedures in which the special district was created. "However, for any independent special district that has ad valorem taxation powers, the same procedure required to grant such independent special district ad valorem taxation powers shall also be required to dissolve or merge the district. "17 An independent special district created by a county or municipality through a referendum that has been declared inactive, may be dissolved bl the creating county or municipality after publishing notice pursuant to s. 189.4044, F.S. 8 Inactive Special Districts Section 189.4044, F.S., outlines special procedures for inactive special districts. Paragraph (1)(a), of this section requires DEO to declare a special district to be inactive if it meets at least one of the following four criteria: 1) The registered agent of the district, the chair of the governing body of the district, or the governing body of the appropriate local general - purpose government notifies the department in writing that the district has taken no action for 2 or more years; 2) Following an inquiry from the department, the registered agent of the district, the chair of the governing body of the district, or the governing body of the appropriate local general - purpose government notifies the department in writing that the district has not had a governing board or a sufficient number of governing board members to constitute a quorum for 2 or more years or the registered agent of the district, the chair of the governing body of the district, or the governing body of the appropriate local general - purpose government fails to respond to the department's inquiry within 21 days; 3) The department determines, pursuant to s. 189.421, F.S., that the district has failed to file any of the reports listed in s. 189.419, F.S.; or 4) The district has not had a registered office and agent on file with the department for 1 or more years. 19 15 Id 16 Section 189.4042(2), F.S. 17 Id. 18 Id. 19 Section 189.4044(1)(a), F.S. BILL: CS /SB 192 6A Page 5 After proposing a special district to be inactive, DEO, the special district, or the local general - purpose government must publish a notice of the proposed declaration of inactive status in a newspaper of general circulation in the county or municipality where the territory of the special district is located .20 The entity must allow 21 days from the date of publication for administrative appeals to be filed .21 Thereafter, the entity that created the special district declared to be inactive must dissolve the special district by repealing its enabling laws or by other appropriate means. 22 If the inactive special district was created by a special act of the Legislature, then DEO must send a notice of declaration of inactive status to the Speaker of the House of Representatives and the President of the Senate, and the notice must reference each special act creating or amending the charter of any special district declared to be inactive. This notice shall constitute sufficient notice under Article III, section 10, of the Florida Constitution, authorizing the Legislature to repeal any special laws so reported in the notice of declaration of inactive status.23 Oversight Review Process Section 189.428, F.S., provides a process for the review of special districts ( "oversight review process "). The oversight review process is performed in conjunction with the special district's public facilities report and the local governmental evaluation and appraisal report prescribed in ss. 189.415(2) and 163.319 1, F.S.24 Depending upon whether the independent special district is a single- or multi - county district, the oversight review may be conducted by the county or municipality where the special district is located, or by the government that created the special district. 25 During the oversight review process, the reviewing authority evaluates the special district, considering, at a minimum, the following criteria: • The degree to which current services are essential or contribute to the well -being of the community; • The extent of continuing need for current services; • Current or possible municipal annexation or incorporation and its impact on the delivery of district services; • Whether there is a less costly alternative method of delivering the services that would adequately provide district services to district residents; and • Whether the transfer of services would jeopardize the district's existing contracts.zb The reviewing authority's final oversight report must be filed with the government that created the district, and serves as a basis for any modification, dissolution or merger of the district.27 If a 20 Section 189.4044(1)(b), F.S. 21 Section 189.4044(1)(c), F.S. 22 Section 189.4044(4), F.S. 23 Section 189.4044(3), F.S. 24 Section 189.428(2), F.S. 25 Section 189.428(3), F.S. Note: dependent special districts are reviewed by the local government entity that they are dependent upon, see s. 189.428(3) (a), F.S. 26 See s. 189.428(5) (a) -(i), F.S., for a full list of the statutory criteria that is evaluated during the oversight review process. 27 Section 189.428(7), F.S. 6A BILL: CS/SB 192 Page 6 legislative dissolution or merger is proposed in the final report, subsection (8) of s. 189.428, F.S., further provides that: (8) . . . the reviewing government shall also propose a plan for the merger or dissolution, and the plan shall address the following factors in evaluating the proposed merger or dissolution: a) Whether, in light of independent fiscal analysis, level-of-service implications, and other public policy considerations,the proposed merger or dissolution is the best alternative for delivering services and facilities to the affected area. b) Whether the services and facilities to be provided pursuant to the merger or dissolution will be compatible with the capacity and uses of existing local services and facilities. c) Whether the merger or dissolution is consistent with applicable provisions of the state comprehensive plan,the strategic regional policy plan, and the local government comprehensive plans of the affected area. d) Whether the proposed merger adequately provides for the assumption of all indebtedness.28 The final report must also be considered at a public hearing in the affected jurisdiction and adopted by the governing board.29 Thereafter,the adopted plan for merger or dissolution can be filed as an attachment to the economic impact statement regarding the proposed special act or general act of local application dissolving a district.30 The oversight review process does not apply to deepwater ports, airport authorities, or healthcare districts operating in compliance with other master plan requirements under Florida Statutes.31 Senate Interim Project,Interim Report 2011-210 The Senate Committee on Communitii Affairs conducted an interim report on the merger of independent special districts in 2010. 2 The purpose of this interim report was to explore potential statutory guidelines for voluntary independent special district mergers and consolidations. The report reviewed current Florida law and existing merger and consolidation laws in three other states and discussed previous merger attempts that have failed in Florida. Senate staff provided criteria for the Legislature to consider should it choose to adopt statutory guidelines that would allow independent special districts formed under special law to voluntarily merge prior to a Legislative Act. Staff recommended that any adopted statutory criteria should: • Discuss how mergers can be initiated, i.e. by resolution,voters, etc.; • State the required statutory thresholds to approve or petition a merger; 28 Section 189.428(8),F.S. 29 Section 189.428(8),F.S.(flush language) 30 Id. 31 Section 189.428(9),F.S.(Discussing deepwater ports operating in compliance with a port master plan under s. 163.3178(2)(k),airport authorities operating in compliance with the Federal Aviation Administration approved master plan,and special districts organized to provide health systems and facilities licensed under chapters 395,400,and 429,F.S.). 32 Comm.on Community Affairs,The Florida Senate, The Merger of Independent Special Districts(Interim Report 2011- 210)(Oct.2010). BILL: CS /SB 192 PbA Require special districts to adopt a merger plan that evaluates how personnel and governing board changes will be made, how assets and liabilities will be apportioned, and how to standardize varying pay levels and benefits; Only apply to voluntary special district mergers; and Preclude special districts from exceeding the powers granted to them in their existing special acts until a unified charter is adopted by the Legislature. 33 III. Effect of Proposed Changes: Section 1 amends s. 189.4042, F.S., to provide definitions, and to reorganize the provisions relating to dissolutions and mergers of special districts. The bill maintains current law with regard to the merger and dissolution of dependent special districts. The bill provides that a merger or dissolution of a dependent district may be accomplished by ordinance of the general - purpose local government where the district is located, but that mergers or dissolutions of dependent special districts operating pursuant to a special act can only be accomplished by further legislative action. 34 Currently, s. 189.4042, F.S., provides that the process to merge or dissolve an independent special district depends upon the process used to create the district; districts that were created by special act are merged or dissolved by further legislative action, while districts that were created by a county or municipality are generally merged or dissolved by the same process used to create the district. 35 This bill amends and reorganizes these provisions to distinguish provisions relating to voluntary mergers and dissolutions from the provisions relating to other mergers and dissolutions. With respect to voluntary dissolutions of independent special districts, the bill retains the current statutory standard providing that an independent special district created and operating pursuant to a special act may be dissolved only by the Legislature. With respect to other - than - voluntary dissolutions of independent special districts operating pursuant to a special act, the bill provides that a special act dissolving the district must be approved in a referendum in the same manner in which the governing body of the district is elected. For other - than - voluntary dissolutions of independent special districts created by a county or municipality, the county or municipality that created the district may dissolve the district by the same procedure used to create the district. With respect to voluntary mergers, the bill creates a new subsection (5) in order to: • Allow two or more contiguous independent special districts with similar functions and governing bodies that were created by the Legislature to voluntarily merge prior to a special act. • Allow merger proceedings to be initiated either by joint resolution of the governing bodies of each district or by qualified elector initiative. 33 id. 34 Section 189.4042(1), F.S. 35 Section 189.4042(2), F.S. TO BILL: CS /SB 192 Page 8 • Require independent special districts to adopt a merger plan that outlines the specific components for the proposed merger. • Require the proposed merger plan to be subject to a public hearing and voter referendum, consistent with certain notice requirements under Florida Statutes. • Provide election procedures and require a proposed merger to be approved by the majority of votes cast in each independent special district in order for merger to take effect. • Treat each component independent special district of the merger as a subunit of the merged independent special district until such time as the Legislature formally approves the unified charter of the new merged district pursuant to special act. o During such time, the individual subunits shall be limited to the powers and financing capabilities of each subunit as they previously existed prior to merger.36 • Provide for the transfer of assets, debts and liabilities of each component independent special district to the merged independent special district. • Provide that in any action or proceeding pending on the effective date of merger to which a component independent special district is a party, the merged independent special district shall be substituted in its place. • Provide that ch. 171, F.S., shall continue to apply to all annexations by a city within the component independent special district's boundaries after merger occurs. Outline the effect of merger on current employees and governing bodies of each component independent special district participating in the merger proposal. • Provide that the merged independent special district is authorized to continue or conclude property tax procedures under chapter 200 on behalf of the component districts. Furthermore, the bill provides that all property tax calculations required by chapter 200 must be calculated separately for each component district. • Provide that the provisions addressing voluntary independent special district mergers do not apply to independent special districts whose governing bodies are elected by district landowners voting the acreage owned within the district. Provide that the new statutory provisions relating to voluntary mergers of independent special districts preempt any special act to the contrary. With respect to involuntary mergers of independent special districts, the bill provides that the merger of districts created by special act is not effective until a special act of the Legislature is approved at separate referenda of the affected local governments, and that districts created by county or municipality can be merged by referendum or other procedure by which the districts were created. The bill provides that inactive districts can be dissolved by special act without referenda, and also makes clarifying amendments to current law. Section 2 amends s. 191.014, F.S., to delete current subsection (3), which provides specific merger procedures for independent special fire control districts. 36 Art. V[I, section 2 of the Florida Constitution provides that all ad valorem taxation shall be at a uniform rate within each taxing unit. Limiting the powers of subunits to those powers existing prior to a voluntary merger maintains this uniformity. BILL: CS /S13 192 6A Page 9 Section 3 amends s. 189.4044, F.S., to allow DEO to declare a special district inactive if the district's governing body unanimously adopts a resolution declaring inactivity. The district may then be dissolved without a referendum. Section 4 provides that this act shall take effect July 1, 2012. IV. Constitutional Issues: A. Municipality /County Mandates Restrictions: None. B. Public Records /Open Meetings Issues: None. C. Trust Funds Restrictions: None. D. Other Constitutional Issues: V. Fiscal Impact Statement: A. Tax/Fee Issues: None. B. Private Sector Impact: As a result of this bill, qualified electors residing in an independent special district that is created by a special act of the Legislature will be permitted to initiate voluntary merger proceedings with one or more independent special district(s) by filing a petition with the governing body of each independent special district proposing to be merged. C. Government Sector Impact: As a result of this bill, the governing body of an independent special district that is created by a special act of the Legislature will be authorized to initiate voluntary merger proceedings with one or more independent special district(s) through a joint resolution that is approved by a majority of the governing board members of each independent special district proposing to be merged. This bill may affect how districts are reported under the Special District Information Program within DEO. VI. Technical Deficiencies: None. BILL: CS /SB 192 VII. Related Issues: None. VIII. Additional Information: A. Committee Substitute — Statement of Substantial Changes: (Summarizing differences between the Committee Substitute and the prior version of the bill.) Page A age 1 CS by Budget Subcommittee on Finance and Tax on February 1, 2012: • Provides that after a merger, the merged independent special district may continue chapter 200 procedures on behalf of the component districts and that property tax calculations under chapter 200 are to be made separately for each component district. • Clarifies the provisions of the bill dealing with procedures for other -than- voluntary dissolutions and mergers. B. Amendments: None. This Senate Bill Analysis does not reflect the intent or official position of the bill's introducer or the Florida Senate. 1 2 3 4 5 6 7 8 9 10 11 12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 LEGISLATIVE ACTION Senate Comm: RCS 02/01/2012 COMMITTEE AMENDMENT 6 House The Committee on Budget Subcommittee on Finance and Tax (Gardiner) recommended the following: Senate Amendment (with title amendment) Delete everything after the enacting clause and insert: Section 1. Section 189.4042, Florida Statutes, is amended to read: 189.4042 Merger and dissolution procedures. — (1) DEFINITIONS. —As used in this section, the term: (a) "Component independent special district" means an independent special district that proposes to be merged into a merged independent district, or an independent special district as it existed before its merger into the merged independent 1/31/2012 3:18:59 PM Page 1 of 32 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 13 district of which it is now a part. 14 (b) "Elector- initiated merger plan" means the merger plan 15 of two or more independent special districts, a majority of 16 whose qualified electors have elected to merge, which outlines 17 the terms and agreements for the official merger of the 18 districts and is finalized and approved by the governing bodies 19 of the districts pursuant to this section. 20 (c) "Governing body" means the governing body of the 21 independent special district in which the general legislative, 22 governmental, or public powers of the district are vested and by 23 authority of which the official business of the district is 24 conducted. 25 (d) "Initiative" means the filing of a petition containing 26 a proposal for a referendum to be placed on the ballot for 27 election. 28 (e) "Joint merger plan" means the merger plan that is 29 adopted by resolution of the governing bodies of two or more 30 independent special districts that outlines the terms and 31 agreements for the official merger of the districts and that is 32 finalized and approved by the governing bodies pursuant to this 33 section. 34 (f) "Merged independent district" means a single 35 independent special district that results from a successful 36 merger of two or more independent special districts pursuant to 37 this section. 38 (g) "Merger" means the combination of two or more 39 contiguous independent special districts resulting in a newly 40 created merged independent district that assumes jurisdiction 41 over all of the component independent special districts. Page 2 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III IIIIIIIIIIIIIIIIIIIIII 111 119586 COMMITTEE AMENDMENT 42 (h) "Merger plan" means a written document that contains 43 the terms, agreements, and information regarding the merger of 44 two or more independent special districts. 45 (i) "Proposed elector - initiated merger plan" means a 46 written document that contains the terms and information 47 regarding the merger of two or more independent special 48 districts and that accompanies the petition initiated by the 49 qualified electors of the districts but that is not yet 50 finalized and approved by the governing bodies of each component 51 independent special district pursuant to this section. 52 (j) "Proposed joint merger plan" means a written document 53 that contains the terms and information regarding the merger of 54 two or more independent special districts and that has been 55 prepared pursuant to a resolution of the governing bodies of the 56 districts but that is not yet finalized and approved by the 57 governing bodies of each component independent special district 58 pursuant to this section. 59 (k) "Qualified elector" means an individual at least 18 60 years of age who is a citizen of the United States, a permanent 61 resident of this state, and a resident of the district who 62 registers with the supervisor of elections of a county within 63 which the district lands are located when the registration books 64 are open. 65 (2) +l-} MERGER OR DISSOLUTION OF A DEPENDENT SPECIAL 66 DISTRICT. - 67 (a) The merger or dissolution of a dependent special 68 district el;„t-r-:ets may be effectuated by an ordinance of the 69 general- purpose local governmental entity wherein the 70 geographical area of the district or districts is located. Page 3 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 6A 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 •:I 411 1 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 6A However, a county may not dissolve a special district that is dependent to a municipality or vice versa, or a dependent district created by special act. (b) The merger or dissolution of a dependent special district created and operating pursuant to a special act may be effectuated only by further act of the Legislature unless otherwise provided by general law. (c) A dependent special district that meets any criteria for being declared inactive, or that has already been declared inactive, pursuant to s. 189.4044 may be dissolved or merged by special act without a referendum. (d)4-15+ A copy of any ordinance and of any changes to a charter affecting the status or boundaries of one or more special districts shall be filed with the Special District Information Program within 30 days after e-€ such activity. (3) -{2} DISSOLUTION OF AN INDEPENDENT SPECIAL DISTRICT. — (a) Voluntary dissolution. —If the governing board of an independent special district created and operating pursuant to a special act elects, by a majority vote plus one, to dissolve the district, the voluntary ffteEffeic dissolution of an independent special district er- a Eiepenelen E" str e'- created and operating pursuant to a special act may ee4-y be effectuated only by the Legislature unless otherwise provided by general law. (b) Other dissolutions.— 1. In order for the Leqislature to dissolve an active independent special district created and operating pursuant to a special act, the special act dissolving the active independent special district must be approved by a majority of the resident electors of the district or, for districts in which a majority 1/31/2012 3:18:59 PM Page 4 of 32 593- 01997A -12 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT of governing board members are elected by landowners,_,,)a majority of the landowners votinq in the same manner by which the independent special district's overninq body is elected. If a local general - purpose government passes an ordinance or resolution in support of the dissolution, the local general - purpose government must pay any expenses associated with the referendum required under this subparagraph. 2. If an independent special district was created by a county or municipality by referendum or any other procedure, the county or municipality that created the district may dissolve the district pursuant to a referendum or any other procedure by which the independent special district was created. However, if the independent special district has ad valorem taxation powers, the same procedure required to grant the independent special district ad valorem taxation powers is required to dissolve the rii ctrl r-t (c) Inactive independent special districts. -An independent special district that meets any criteria for beina declared inactive, or that has already been declared inactive, pursuant to s. 189.4044 may be dissolved by special act without a referendum. If an inactive independent special district was created by a county or municipality through a referendum, the county or municipality that created the district may dissolve the district after publishing notice as described in s. 189.4044. if an n e p e n dent- -di stEret was e Lease Ei by a ee;dnzye La ffi,dn -i- i that eEea t eEi the elistEd:et FRay -FfteEg e-e Ems e l ve -: rt. elzat -i et-w was ei-ea t eel . H ew evems €ems - n el ep-enelen t-ddr ' et that- 1/31/2012 3:18:59 PM Page 5 of 32 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 129 , 130 131 alse be— rreqidifed ;�=e dinselve eLc ffieEge the Ei stE e-t, 132 (d) Debts and assets.— Financial allocations of the assets 133 and indebtedness of a dissolved independent special district 134 shall be pursuant to s. 189.4045. 135 (4) LEGISLATIVE MERGER OF INDEPENDENT SPECIAL DISTRICTS. - 136 The Legislature, by special act, may merge independent special 137 districts created and operating pursuant to special act. 138 (5) VOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS. —Two 139 or more contiguous independent special districts created by 140 special act which have similar functions and elected governing 141 bodies may elect to merge into a single independent district 142 through the act of merging the component independent special 143 districts. 144 (a) Initiation.— Merger proceedings may commence by: 145 1. A joint resolution of the governing bodies of each 146 independent special district which endorses a proposed joint 147 merger plan; or 148 2. A qualified elector initiative. 149 (b) Joint merger plan by resolution. —The governing bodies 150 of two or more contiguous independent special districts may, by 151 joint resolution, endorse a proposed joint merger plan to 152 commence proceedings to merge the districts pursuant to this 153 subsection. 154 1. The proposed joint merger plan must specify: 155 a. The name of each component independent special district 156 to be merged; 157 b. The name of the proposed merged independent district; Page 6 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III I 111 119586 COMMITTEE AMENDMENT 6 A 158 c. The rights, duties, and obligations of the proposed 159 merged independent district; 160 d. The territorial boundaries of the proposed merged 161 independent district; 162 e. The governmental organization of the proposed merged 163 independent district insofar as it concerns elected and 164 appointed officials and public employees, along with a 165 transitional plan and schedule for elections and appointments of 166 officials; 167 f. A fiscal estimate of the potential cost or savings as a 168 result of the merger; 169 g. Each component independent special district's assets, 170 including, but not limited to, real and personal property, and 171 the current value thereof; 172 h. Each component independent special district's 173 liabilities and indebtedness, bonded and otherwise, and the 174 current value thereof; 175 i. Terms for the assumption and disposition of existing 176 assets, liabilities, and indebtedness of each component 177 independent special district jointly, separately, or in defined 178 proportions; 179 j. Terms for the common administration and uniform 180 enforcement of existing laws within the proposed merged 181 independent district; 182 k. The times and places for public hearings on the proposed 183 joint merger plan; 184 1. The times and places for a referendum in each component 185 independent special district on the proposed joint merger plan, 186 along with the referendum lan ua e to be presented for approval; Page 7 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 11� I 111 119586 1871 and COMMITTEE AMENDMENT 6 A 188 m. The effective date of the proposed merger. 189 2. The resolution endorsing the proposed joint merger plan 190 must be approved by a majority vote of the governing bodies of 191 each component independent special district and adopted at least 192 60 business days before any general or special election on the 193 proposed joint merger plan. 194 3. Within 5 business days after the governing bodies 195 approve the resolution endorsing the proposed joint merger plan, 196 the governing bodies must: 197 a. Cause a copy of the proposed joint merger plan, along 198 with a descriptive summary of the plan, to be displayed and be 199 readily accessible to the public for inspection in at least 200 three public places within the territorial limits of each 201 component independent special district, unless a component 202 independent special district has fewer than three public places, 203 in which case the plan must be accessible for inspection in all 204 public places within the component independent special district; 205 b. If applicable, cause the proposed joint merger plan, 206 along with a descriptive summary of the plan and a reference to 207 the public places within each component independent special 208 district where a copy of the merger plan may be examined, to be 209 displayed on a website maintained by each district or on a 210 website maintained by the county or municipality in which the 211 districts are located; and 212 c. Arrange for a descriptive summary of the proposed joint 213 merger plan, and a reference to the public places within the 214 district where a copy may be examined, to be published in a 215 newspaper of general circulation within the component Page 8 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 COMMITTEE AMENDMENT Bill No. SB 192 III 111 119586 216 independent special districts at least once each week for 4 217 successive weeks. 218 4. The governing body of each component independent special 219 district shall set a time and place for one or more public 220 hearings on the proposed joint merger plan. Each public hearing 221 shall be held on a weekday at least 7 business days after the 222 day the first advertisement is published on the proposed joint 223 merger plan. The hearing or hearings may be held jointly or 224 separately by the governing bodies of the component independent 225 special districts. Any interested person residing in the 226 respective district shall be given a reasonable opportunity to 227 be heard on any aspect of the proposed merger at the public 228 hearing. 229 a. Notice of the public hearing addressing the resolution 230 for the proposed joint merger plan must be published pursuant to 231 the notice requirements in s. 189.417 and must provide a 232 descriptive summary of the proposed joint merger plan and a 233 reference to the public places within the component independent 234 special districts where a copy of the plan may be examined. 235 b. After the final public hearing, the governing bodies of 236 each component independent special district may amend the 237 proposed joint merger plan if the amended version complies with 238 the notice and public hearing requirements provided in this 239 subsection. Thereafter, the governing bodies may approve a final 240 version of the joint merger plan or decline to proceed further 241 with the merger. Approval by the governing bodies of the final 242 version of the joint merger plan must occur within 60 business 243 days after the final hearing. 244 5. After the final public hearing, the governing bodies Page 9 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 245 shall notify the supervisors of elections of the applicable 246 counties in which district lands are located of the adoption of 247 the resolution by each governing body. The supervisors of 248 elections shall schedule a separate referendum for each 249 component independent special district. The referenda may be 250 held in each district on the same day, or on different days, but 251 no more than 20 days apart. 252 a. Notice of a referendum on the merger of independent 253 special districts must be provided pursuant to the notice 254 requirements in s. 100.342. At a minimum, the notice must 255 include: 256 (I) A brief summary of the resolution and joint merger 257 plan; 258 (II) A statement as to where a copy of the resolution and 259 joint merger plan may be examined; 260 (III) The names of the component independent special 261 districts to be merged and a description of their territory; 262 (IV) The times and places at which the referendum will be 263 held; and 264 (V) Such other matters as may be necessary to call, provide 265 for, and give notice of the referendum and to provide for the 266 conduct thereof and the canvass of the returns. 267 b. The referenda must be held in accordance with the 268 Florida Election Code and may be held pursuant to ss. 101.6101- 269 101.6107. All costs associated with the referenda shall be borne 270 by the respective component independent special district. 271 c. The ballot question in such referendum placed before the 272 qualified electors of each component independent special 273 district to be merged must be in substantially the following Page 10 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 274 form: 275 COMMITTEE AMENDMENT 276 "Shall (...name of component independent special 277 district...) and (...name of component independent special 278 district or districts...) be merged into (...name of newly 279 merged independent district...)? 280 YES 281 NO" 282 283 d. If the component independent special districts proposing 284 to merge have disparate millage rates, the ballot question in 285 the referendum placed before the qualified electors of each 286 component independent special district must be in substantially 287 the following form: 288 289 "Shall (...name of component independent special 290 district...) and (...name of component independent special 291 district or districts...) be merged into (...name of newly 292 merged independent district...) if the voter - approved maximum 293 millage rate within each independent special district will not 294 increase absent a subsequent referendum? 295 YES 296 NO" 297 298 e. In any referendum held pursuant to this subsection, the 299 ballots shall be counted, returns made and canvassed, and 300 results certified in the same manner as other elections or 301 referenda for the component independent special districts. 302 f. The merger may not take effect unless a majority of the Page 11 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 6A 303 votes cast in each component independent special district are in 304 favor of the merqer. If one of the component districts does not 305 obtain a majority vote, the referendum fails, and merger does 306 not take effect. 307 g. If the merger is approved by a majority of the votes 308 cast in each component independent special district, the merged 309 independent district is created. Upon approval, the merged 310 independent district shall notify the Special District 311 Information Program pursuant to s. 189.418(2) and the local 312 general - purpose governments in which any part of the component 313 independent special districts is situated pursuant to s. 314 189.418(7). 315 h. If the referendum fails, the merger process under this 316 paragraph may not be initiated for the same purpose within 2 317 years after the date of the referendum. 318 6. Component independent special districts merged pursuant 319 to a joint merger plan by resolution shall continue to be 320 governed as before the merger until the effective date specified 321 in the adopted joint merger plan. 322 (c) Qualified elector- initiated merger plan. —The qualified 323 electors of two or more contiguous independent special districts 324 may commence a merger proceeding by each filing a petition with 325 the governing body of their respective independent special 326 district proposing to be merged. The petition must contain the 327 signatures of at least 40 percent of the qualified electors of 328 each component independent special district and must be 329 submitted to the appropriate component independent special 330 district governing body no later than 1 year after the start of 331 the qualified elector - initiated merger process. Page 12 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 4 332 1. The petition must comply with, and be circulated in, the 333 following form: 334 335 PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER 336 337 We, the undersigned electors and legal voters of (...name 338 of independent special district...), qualified to vote at the 339 next general or special election, respectfully petition that 340 there be submitted to the electors and legal voters of (...name 341 of independent special district or districts proposed to be 342 merged...), for their approval or rejection at a referendum held 343 for that purpose, a proposal to merge (...name of component 344 independent special district...) and (...name of component 345 independent special district or districts...). 346 347 In witness thereof, we have signed our names on the date 348 indicated next to our signatures. 349 350 Date Name (print under signature) Home Address 351 352 353 354 2. The petition must be validated by a signed statement by 355 a witness who is a duly qualified elector of one of the 356 component independent special districts, a notary public, or 357 another person authorized to take acknowledgements. 358 a. A statement that is signed by a witness who is a duly 359 qualified elector of the respective district shall be accepted 360 for all purposes as the equivalent of an affidavit. Such Page 13 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III I 111 119586 COMMITTEE AMENDMENT 361 statement must be in substantially the following form: 362 363 "I, (...name of witness...), state that I am a duly 364 qualified voter of (...name of independent special district...) 365 Each of the (...insert number...) persons who have signed this 366 petition sheet has signed his or her name in my presence on the 367 dates indicated above and identified himself or herself to be 368 the same person who signed the sheet. I understand that this 369 statement will be accepted for all purposes as the equivalent of 370 an affidavit and, if it contains a materially false statement, 371 shall subject me to the penalties of perjury." 372 373 Date Signature of Witness 374 375 b. A statement that is signed by a notary public or another 376 person authorized to take acknowledgements must be in 377 substantially the following form: 378 379 "On the date indicated above before me personally came each 380 of the (...insert number...) electors and legal voters whose 381 signatures appear on this petition sheet, who signed the 382 petition in my presence and who, being by me duly sworn, each 383 for himself or herself, identified himself or herself as the 384 same person who signed the petition, and I declare that the 385 foregoing information they provided was true." 386 387 Date Signature of Witness 388 389 c. An alteration or correction of information appearing on Page 14 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 4),A, 390 petition's signature line, other than an uninitialed signature 391 and date, does not invalidate such signature. In matters of 392 form, this paragraph shall be liberally construed, not 393 inconsistent with substantial compliance thereto and the 394 prevention of fraud. 395 d. The appropriately signed petition must be filed with the 396 governing body of each component independent special district. 397 The petition must be submitted to the supervisors of elections 398 of the counties in which the district lands are located. The 399 supervisors shall, within 30 business days after receipt of the 400 petitions, certify to the governing bodies the number of 401 signatures of qualified electors contained on the petitions. 402 3. Upon verification by the supervisors of elections of the 403 counties within which component independent special district 404 lands are located that 40 percent of the qualified electors have 405 petitioned for merger and that all such petitions have been 406 executed within 1 year after the date of the initiation of the 407 qualified- elector merger process, the governing bodies of each 408 component independent special district shall meet within 30 409 business days to prepare and approve by resolution a proposed 410 elector - initiated merger plan. The proposed plan must include: 411 a. The name of each component independent special district 412 to be merged; 413 b. The name of the proposed merged independent district; 414 c. The rights, duties, and obligations of the merged 415 independent district; 416 d. The territorial boundaries of the proposed merged 417 independent district; 418 e. The governmental organization of the proposed merged Page 15 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III I 111 119586 COMMITTEE AMENDMENT 6 A 4191 independent district insofar as it concerns elected and 420 appointed officials and public employees, along with a 421 transitional plan and schedule for elections and appointments of 422 officials; 423 f. A fiscal estimate of the potential cost or savings as a 424 result of the merger; 425 g. Each component independent special district's assets, 426 including, but not limited to, real and personal property, and 427 the current value thereof; 428 h. Each component independent special district's 429 liabilities and indebtedness, bonded and otherwise, and the 430 current value thereof; 431 i. Terms for the assumption and disposition of existing 432 assets, liabilities, and indebtedness of each component 433 independent special district, jointly, separately, or in defined 434 proportions; 435 j. Terms for the common administration and uniform 436 enforcement of existing laws within the proposed merged 437 independent district; 438 k. The times and places for public hearings on the proposed 439 joint merger plan; and 440 1. The effective date of the proposed merger. 441 4. The resolution endorsing the proposed elector- initiated 442 merger plan must be approved by a majority vote of the governing 443 bodies of each component independent special district and must 444 be adopted at least 60 business days before any general or 445 special election on the proposed elector - initiated plan. 446 5. Within 5 business days after the governing bodies of 447 each component independent special district approve the proposed Page 16 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 11i 111 119586 COMMITTEE AMENDMENT 448 elector - initiated merger plan, the governing bodies shall: 449 a. Cause a copy of the proposed elector - initiated merger 450 plan, along with a descriptive summary of the plan, to be 451 displayed and be readily accessible to the public for inspection 452 in at least three public places within the territorial limits of 453 each component independent special district, unless a component 454 independent special district has fewer than three public places, 455 in which case the plan must be accessible for inspection in all 456 public places within the component independent special district; 457 b. If applicable, cause the proposed elector - initiated 458 merger plan, along with a descriptive summary of the plan and a 459 reference to the public places within each component independent 460 special district where a copy of the merger plan may be 461 examined, to be displayed on a website maintained by each 462 district or otherwise on a website maintained by the county or 463 municipality in which the districts are located; and 464 c. Arrange for a descriptive summary of the proposed 465 elector - initiated merger plan, and a reference to the public 466 places within the district where a copy may be examined, to be 467 published in a newspaper of general circulation within the 468 component independent special districts at least once each week 469 for 4 successive weeks. 470 6. The governing body of each component independent special 471 district shall set a time and place for one or more public 472 hearings on the proposed elector - initiated merger plan. Each 473 public hearing shall be held on a weekday at least 7 business 474 days after the day the first advertisement is published on the 475 proposed elector- initiated merger plan. The hearing or hearings 476 may be held jointly or separately by the governing bodies of the Page 17 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 COMMITTEE AMENDMENT III I 111 :19586 477 component independent special districts. Any interested person 478 residing in the respective district shall be given a reasonable 479 opportunity to be heard on any aspect of the proposed merger at 480 the public hearing. 481 a. Notice of the public hearing on the proposed elector - 482 initiated merger plan must be published pursuant to the notice 483 requirements in s. 189.417 and must provide a descriptive 484 summary of the elector - initiated merger plan and a reference to 485 the public places within the component independent special 486 districts where a copy of the plan may be examined. 487 b. After the final public hearing, the governing bodies of 488 each component independent special district may amend the 489 proposed elector- initiated merger plan if the amended version 490 complies with the notice and public hearing requirements 491 provided in this subsection. The governing bodies must approve a 492 final version of the merger plan within 60 business days after 493 the final hearing. 494 7. After the final public hearing, the governing bodies 495 shall notify the supervisors of elections of the applicable 496 counties in which district lands are located of the adoption of 497 the resolution by each governing body. The supervisors of 498 elections shall schedule a date for the separate referenda for 499 each district. The referenda may be held in each district on the 500 same day, or on different days, but no more than 20 days apart. 501 a. Notice of a referendum on the merger of the component 502 independent special districts must be provided pursuant to the 503 notice requirements in s. 100.342. At a minimum, the notice must 504 include: 505 (I) A brief summary of the resolution and elector - initiated Page 18 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 COMMITTEE AMENDMENT L0113 11I IIIIIIIHIIIIIIIIIIIIII I 111 115596 506 merger plan; 507 (II) A statement as to where a copy of the resolution and 508 petition for merger may be examined; 509 (III) The names of the component independent special 510 districts to be merged and a description of their territory; 511 (IV) The times and places at which the referendum will be 512 held; and 513 (V) Such other matters as may be necessary to call, provide 514 for, and give notice of the referendum and to provide for the 515 conduct thereof and the canvass of the returns. 516 b. The referenda must be held in accordance with the 517 Florida Election Code and may be held pursuant to ss. 101.6101- 518 101.6107. All costs associated with the referenda shall be borne 519 by the respective component independent special district. 520 c. The ballot question in such referendum placed before the 521 qualified electors of each component independent special 522 district to be merged must be in substantially the following 523 form: 524 525 "Shall (...name of component independent special 526 district...) and (...name of component independent special 527 district or districts...) be merged into (...name of newly 528 merged independent district...)? 529 YES 530 NO" 531 532 d. If the component independent special districts proposing 533 to merge have disparate millage rates, the ballot question in 534 the referendum placed before the qualified electors of each Page 19 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 COMMITTEE AMENDMENT Bill No. SB 192 6 A: III I 111 119586 5351 component independent special district must be in substantiall 536 the following form: 537 538 "Shall (...name of component independent special 539 district...) and (...name of component independent special 540 district or districts...) be merged into (...name of newly 541 merged independent district...) if the voter - approved maximum 542 millage rate within each independent special district will not 543 increase absent a subsequent referendum? 544 YES 545 NO" 546 547 e. In any referendum held pursuant to this subsection, the 548 ballots shall be counted, returns made and canvassed, and 549 results certified in the same manner as other elections or 550 referenda for the component independent special districts. 551 f. The merger may not take effect unless a majority of the 552 votes cast in each component independent special district are in 553 favor of the merger. If one of the component independent special 554 districts does not obtain a majority vote, the referendum fails, 555 and merger does not take effect. 556 g. If the merger is approved by a majority of the votes 557 cast in each component independent special district, the merged 558 district shall notify the Special District Information Program 559 pursuant to s. 189.418(2) and the local general - purpose 560 governments in which any part of the component independent 561 special districts is situated pursuant to s. 189.418(7). 562 h. If the referendum fails, the merger process under this 563 paragraph may not be initiated for the same purpose within 2 Page 20 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 11111111111111111111111111 119586 5641 vears after the date of the referendum. 6A COMMITTEE AMENDMENT 565 8. Component independent special districts merged pursuant 566 to an elector - initiated merger plan shall continue to be 567 governed as before the merger until the effective date specified 568 in the adopted elector - initiated merger plan. 569 (d) Effective date. —The effective date of the merger shall 570 be as provided in the joint merger plan or elector- initiated 571 merger plan, as appropriate, and is not contingent upon the 572 future act of the Legislature. 573 1. However, as soon as practicable, the merged independent 574 district shall, at its own expense, submit a unified charter for 575 the merged district to the Legislature for approval. The unified 576 charter must make the powers of the district consistent within 577 the merged independent district and repeal the special acts of 578 the districts which existed before the merger. 579 2. Within 30 business days after the effective date of the 580 merger, the merged independent district's governing body, as 581 indicated in this subsection, shall hold an organizational 582 meeting to implement the provisions of the joint merger plan or 583 elector - initiated merger plan, as appropriate. 584 (e) Restrictions during transition period. —Until the 585 Legislature formally approves the unified charter pursuant to a 586 special act, each component independent special district is 587 considered a subunit of the merged independent district subject 588 to the following restrictions: 589 1. During the transition period, the merged independent 590 district is limited in its powers and financing capabilities 591 within each subunit to those powers that existed within the 592 boundaries of each subunit which were previously granted to the Page 21 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 .11� 11111111111111111111111111 119586 COMMITTEE AMENDMENT 6 593 component independent special district in its existing charter 594 before the merger. The merged independent district may not, 595 solely by reason of the merger, increase its powers or financing 596 capability. 597 2. During the transition period, the merged independent 598 district shall exercise only the legislative authority to levy 599 and collect revenues within the boundaries of each subunit which 600 was previously granted to the component independent special 601 district by its existing charter before the merger, including 602 the authority to levy ad valorem taxes, non -ad valorem 603 assessments, impact fees, and charges. 604 a. The merged independent district may not, solely by 605 reason of the merger or the legislatively approved unified 606 charter, increase ad valorem taxes on property within the 607 original limits of a subunit beyond the maximum millage rate 608 approved by the electors of the component independent special 609 district unless the electors of such subunit approve an increase 610 at a subsequent referendum of the subunit's electors. Each 611 subunit may be considered a separate taxing unit. 612 b. The merged independent district may not, solely by 613 reason of the merger, charge non -ad valorem assessments, impact 614 fees, or other new fees within a subunit which were not 615 otherwise previously authorized to be charged. 616 3. During the transition period, each component independent 617 special district of the merged independent district must 618 continue to file all information and reports required under this 619 chapter as subunits until the Legislature formally approves the 620 unified charter pursuant to a special act. 621 4. The intent of this section is to preserve and transfer Page 22 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 COMMITTEE AMENDMENT III 111 11958 622 to the merged independent district all authority that exists 623 within each subunit and was previously granted by the 624 Legislature and, if applicable, by referendum. 625 (f) Effect of merger, generally. —On and after the effective 626 date of the merger, the merged independent district shall be 627 treated and considered for all purposes as one entity under the 628 name and on the terms and conditions set forth in the joint 629 merger plan or elector- initiated merger plan, as appropriate. 630 1. All rights, privileges, and franchises of each component 631 independent special district and all assets, real and personal 632 property, books, records, papers, seals, and equipment, as well 633 as other things in action, belonging to each component 634 independent special district before the merger shall be deemed 635 as transferred to and vested in the merged independent district 636 without further act or deed. 637 2. All property, rights -of -way, and other interests are as 638 effectually the property of the merged independent district as 639 they were of the component independent special district before 640 the merger. The title to real estate, by deed or otherwise, 641 under the laws of this state vested in any component independent 642 special district before the merger may not be deemed to revert 643 or be in any way impaired by reason of the merger. 644 3. The merged independent district is in all respects 645 subject to all obligations and liabilities imposed and possesses 646 all the rights, powers, and privileges vested by law in other 647 similar entities. 648 4. Upon the effective date of the merger, the joint merger 649 plan or elector - initiated merger plan, as appropriate, is 650 subordinate in all respects to the contract rights of all Page 23 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 COMMITTEE AMENDMENT Bill No. SB 192 6A III 111 119586 651 holders of any securities or obligations of the component 652 independent special districts outstanding at the effective date 653 of the merger. 654 5. The new registration of electors is not necessary as a 655 result of the merger, but all elector registrations of the 656 component independent special districts shall be transferred to 657 the proper registration books of the merged independent 658 district, and new registrations shall be made as provided by law 659 as if no merger had taken place. 660 (g) Governing body of merged independent district. - 661 1. From the effective date of the merger until the next 662 general election, the governing body of the merged independent 663 district shall be comprised of the governing body members of 664 each component independent special district, with such members 665 serving until the governing body members elected at the next 666 general election take office. 667 2. Beginning with the next general election following the 668 effective date of merger, the governing body of the merged 669 independent district shall be comprised of five members. The 670 office of each governing body member shall be designated by 671 seat, which shall be distinguished from other body member seats 672 by an assigned numeral: 1, 2, 3, 4, or 5. The governing body 673 members that are elected in this initial election following the 674 merger shall serve unequal terms of 2 and 4 years in order to 675 create staggered membership of the governing body, with: 676 a. Member seats 1, 3, and 5 being designated for 4 -year 677 terms; and 678 b. Member seats 2 and 4 being designated for 2 -year terms. 679 3. In general elections thereafter, all governing body Page 24 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 COMMITTEE AMENDMENT 1 � III 111 119586 680 members shall serve 4 -year terms. 681 (h) Effect on employees.- Except as otherwise provided by 682 law and except for those officials and employees protected by 683 tenure of office, civil service provisions, or a collective 684 bargaining agreement, upon the effective date of merger, all 685 appointive offices and positions existing in all component 686 independent special districts involved in the merger are subject 687 to the terms of the joint merger plan or elector - initiated 688 merger plan, as appropriate. Such plan may provide for instances 689 in which there are duplications of positions and for other 690 matters such as varying lengths of employee contracts, varying 691 pay levels or benefits, different civil service regulations in 692 the constituent entities, and differing ranks and position 693 classifications for similar positions. For those employees who 694 are members of a bargaining unit certified by the Public 695 Employees Relations Commission, the requirements of chapter 447 696 apply. 697 (i) Effect on debts, liabilities, and obligations. - 698 1. All valid and lawful debts and liabilities existing 699 against a merged independent district, or which may arise or 700 accrue against the merged independent district, which but for 701 merger would be valid and lawful debts or liabilities against 702 one or more of the component independent special districts, are 703 debts against or liabilities of the merged independent district 7t -and accordingly shall be defrayed and answered to by the merged 705 independent district to the same extent, and no further than, 706 the component independent special districts would have been 707 bound if a merger had not taken place. 708 2. The rights of creditors and all liens upon the property Page 25 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 709 of any of the component independent special districts shall be 710 preserved unimpaired. The respective component districts shall 711 be deemed to continue in existence to preserve such rights and 712 liens, and all debts, liabilities, and duties of any of the 713 component districts attach to the merged independent district. 714 3. All bonds, contracts, and obligations of the component 715 independent special districts which exist as legal obligations 716 are obligations of the merged independent district, and all such 717 obligations shall be issued or entered into by and in the name 718 of the merged independent district. 719 (j) Effect on actions and proceedings. —In any action or 720 proceeding pending on the effective date of merger to which a 721 component independent special district is a party, the merged 722 independent district may be substituted in its place, and the 723 action or proceeding may be prosecuted to judgment as if merger 724 had not taken place. Suits may be brought and maintained against 725 a merged independent district in any state court in the same 726 manner as against any other independent special district. 727 (k) Effect on annexation.— Chapter 171 continues to apply to 728 all annexations by a city within the component independent 729 special districts' boundaries after merger occurs. Any moneys 730 owed to a component independent special district pursuant to s. 731 171.093, or any interlocal service boundary agreement as a 732 result of annexation predating the merger, shall be paid to the 733 merged independent district after merger. 734 (1) Effect on millage calculations. —The merged independent 735 special district is authorized to continue or conclude 736 procedures under chapter 200 on behalf of the component 737 independent special districts. The merged independent special Page 26 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 757 758 759 760 761 762 763 764 765 766 Florida Senate - 2012 Bill No. SB 192 III I 111 11958E COMMITTEE AMENDMENT district shall make the calculations required by chapter 200 for each component individual special district separately. (m) Determination of rights. —If any right, title, interest, or claim arises out of a merger or by reason thereof which is not determinable by reference to this subsection, the joint merger plan or elector - initiated merger plan, as appropriate, or otherwise under the laws of this state, the governing body of the merged independent district may provide therefor in a manner conforming to law. (n) Exemption. —This subsection does not apply to independent special districts whose governing bodies are elected by district landowners voting the acreage owned within the 'Ai c+-ri rt (o) Preemption. —This subsection preempts any special act to the contrary. (6) INVOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS. — (a) Independent special districts created by special act. — In order for the Legislature to merge an active independent special district or districts created and operating pursuant to a special act, the special act merging the active independent special district or districts must be approved at separate referenda of the impacted local governments by a majority of the resident electors or, for districts in which a majority of governing board members are elected by landowners, a majority of the landowners voting in the same manner by which each independent special district's governing body is elected. The special act merging the districts must include a plan of merger that addresses transition issues such as the effective date of the merger, governance, administration, powers, pensions, and 1/31/2012 3:18:59 PM Page 27 of 32 593- 01997A -12 nor, 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784' 785 786 787 788 789 790 791 792 793 794 795 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT assumption of all assets and liabilities. If a local aeneral- purpose government passes an ordinance or resolution in support of the merger of an active independent special district, the local general - purpose government must pay any expenses associated with the referendum required under this paragraph. (b) Independent special districts created by a county or municipality. -A county or municipality may merge an independent special district created by the county or municipality pursuant to a referendum or any other procedure by which the independent special district was created. However, if the independent special district has ad valorem taxation powers, the same procedure required to grant the independent special district ad valorem taxation powers is required to merge the district. The political subdivisions proposing the involuntary merger of an active independent special district shall pay any expenses associated with the referendum required under this paragraph. (c) Inactive independent special districts. -An independent special district that meets any criteria for being declared inactive, or that has already been declared inactive, pursuant to s. 189.4044 may by merged by special act without a referendum. (7)+�+ EXEMPTIONS.- -Th-epi�evls-ie € This section does siial! not apply to community development districts implemented pursuant to chapter 190 or to water management districts created and operated pursuant to chapter 373. Section 2. Section 191.014, Florida Statutes, is amended to read: 191.014 District creation and,- expansion, .- (1) New districts may be created only by the Legislature Page 28 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 COMMITTEE AMENDMENT III 111 1 95e6 796 under s. 189.404. 797 (2) The boundaries of a district may be modified, extended, 798 or enlarged upon approval or ratification by the Legislature. 799 (9) 'Fh e—ttt eE g eE o f a d }ski e t with all er re i= l emirs --e-f e t l its 800 indei en dettpe ela!dlstiai e t s ems elelgenEient fj:L-e eentEel 801 ddj ticd:et=s is —e f €e e t i ve--enl idjaen rratifieatien e 802 deg ;tee --4� di sti et faay net-, s elely by re a s e n o f _ Fn - L g =- 803 w�itii anet-lt-eLgeve etti ent-it'ZI ineLce -se ael valeL-eFa :t�axes en 804 prrejqeLaty wd:� n tyre —eiigin iiffii s -ef tyre— distaffetbeyeRd the 805 Rra�f ±fn afft e s ta]9 14:shed by the e1 et=L-i e4=-'s enabling l e g= s, a 4 i- n. 806 its es s- -appL-e Led 1 -the —el ee t ems-- ef the —di s t L4 eta 1; = e f = L- n duTM 807 Section 3. Paragraph (a) of subsection (1) and subsection 808 (4) of section 189.4044, Florida Statutes, are amended to read: 809 189.4044 Special procedures for inactive districts. - 810 (1) The department shall declare inactive any special 811 district in this state by documenting that: 812 (a) The special district meets one of the following 813 criteria: 814 1. The registered agent of the district, the chair of the 815 governing body of the district, or the governing body of the 816 appropriate local general - purpose government notifies the 817 department in writing that the district has taken no action for 818 2 or more years; 819 2. Following an inquiry from the department, the registered 820 agent of the district, the chair of the governing body of the 821 district, or the governing body of the appropriate local 822 general - purpose government notifies the department in writing 823 that the district has not had a governing board or a sufficient 824 number of governing board members to constitute a quorum for 2 Page 29 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 Florida Senate - 2012 Bill No. SB 192 III 111 119586 COMMITTEE AMENDMENT 825 or more years or the registered agent of the district, the chair 826 of the governing body of the district, or the governing body of 827 the appropriate local general - purpose government fails to 828 respond to the department's inquiry within 21 days; 829 3. The department determines, pursuant to s. 189.421, that 830 the district has failed to file any of the reports listed in s. 831 189.419; e-r- 832 4. The district has not had a registered office and agent 833 on file with the department for 1 or more years; or 834 5. The governing body of a special district provides 835 documentation to the department that it has unanimously adopted 836 a resolution declaring the special district inactive. The 837 special district shall be responsible for payment of any 838 expenses associated with its dissolution. 839 (4) The entity that created a special district declared 840 inactive under this section must dissolve the special district 841 by repealing its enabling laws or by other appropriate means. 842 Any special district declared inactive pursuant to subparagraph 843 (1)(a)5. may be dissolved without a referendum. 844 Section 4. This act shall take effect July 1, 2012. 845 846 _ ________________ T I T L E A M E N D M E N T= _______________ 847 And the title is amended as follows: 848 Delete everything before the enacting clause 849 and insert: 850 A bill to be entitled 851 An act relating to special districts; amending s. 852 189.4042, F.S.; revising provisions relating to merger 853 and dissolution procedures for special districts; Page 30 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 MOA Florida Senate - 2012 Bill No. SB 192 III 111 =9i95 COMMITTEE AMENDMENT 854 providing definitions; requiring the merger or 855 dissolution of dependent special districts created by 856 a special act to be effectuated by the Legislature; 857 providing for the merger or dissolution of inactive 858 special districts by special act without referenda; 859 providing dissolution procedures for active 860 independent special districts by special acts and 861 referenda; providing for the dissolution of inactive 862 independent special districts by special act; 863 providing for local governments to assume indebtedness 864 of, and receive title to property owned by, special 865 districts under certain circumstances; providing for 866 the merger of certain independent special districts by 867 the Legislature; providing procedures and requirements 868 for the voluntary merger of contiguous independent 869 special districts; limiting the authority of the 870 merged district to levy and collect revenue until a 871 unified charter is approved by the Legislature; 872 providing for the effect of the merger on employees, 873 legal liabilities, obligations, proceedings, and 874 annexation; providing for the determination of certain 875 rights by the governing body of the merged district; 876 providing that such provisions preempt certain special 877 acts; providing procedures and requirements for the 878 involuntary merger of independent special districts; 879 providing exemptions from merger and dissolution 880 procedures; amending s. 191.014, F.S.; deleting a 881 provision relating to the conditions under which the 882 merger of independent special districts or dependent Page 31 of 32 1/31/2012 3:18:59 PM 593- 01997A -12 mr, Florida Senate - 2012 Bill No. SB 192 III 111 1 958E COMMITTEE AMENDMENT 6A fire control districts with other special districts is effective and the conditions under which a merged district is authorized to increase ad valorem taxes; amending s. 189.4044, F.S.; revising criteria by which special districts are declared inactive by a governing body; authorizing such districts to be dissolved without a referendum; providing an effective date. 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