Florida Senate - 2011                             CS for SB 1120
       
       
       
       By the Committee on Community Affairs; and Senator Norman
       
       
       
       
       578-02789A-11                                         20111120c1
    1                        A bill to be entitled                      
    2         An act relating to special districts; amending s.
    3         189.4042, F.S.; providing for the merger of contiguous
    4         special districts; providing definitions; providing
    5         that the merger or dissolution of dependent districts
    6         created by special act may be effectuated only by the
    7         Legislature; providing certain exemptions for inactive
    8         dependent and independent special districts; requiring
    9         involuntary dissolution procedures for independent
   10         special districts to include referenda; providing that
   11         the Legislature may merge independent special
   12         districts created by special act; providing for the
   13         voluntary merger of contiguous independent special
   14         districts pursuant to a joint resolution of the
   15         governing bodies of the districts or upon initiative
   16         of the district electors; providing the procedures
   17         that must be adhered to, including notice and public
   18         hearings; requiring the development and adoption of a
   19         merger plan; requiring a referendum; providing for the
   20         effective date of the merger; providing that
   21         legislative approval of the merger is not required but
   22         that the charter of the new district must be submitted
   23         for approval; providing restrictions on the merged
   24         district until the charter is approved; providing that
   25         the ad valorem millage rate in each component
   26         independent special district is levied only up to the
   27         millage rate previously approved by the electors of
   28         the district; providing for the effect of the merger
   29         on the property, employees, legal liabilities, and
   30         annexations of the component districts; providing for
   31         the election of the governing board of the merged
   32         district; providing an exemption for independent
   33         special districts whose governing bodies are elected
   34         by district landowners voting the acreage owned within
   35         the district; requiring involuntary merger procedures
   36         for independent special districts to include
   37         referenda; amending s. 191.014, F.S.; deleting a
   38         provision relating to the merger of independent
   39         special districts or dependent fire control districts;
   40         amending s. 189.4044, F.S.; revising dissolution
   41         procedures for special districts declared inactive by
   42         a governing body; providing an effective date.
   43  
   44  Be It Enacted by the Legislature of the State of Florida:
   45  
   46         Section 1. Section 189.4042, Florida Statutes, is amended
   47  to read:
   48         189.4042 Merger and dissolution procedures.—
   49         (1) DEFINITIONS.—As used in this section, the term:
   50         (a) “Component independent special district” means an
   51  independent special district that proposes to be merged into a
   52  merged independent district, or an independent special district
   53  as it existed before its merger into the merged independent
   54  district of which it is now a part.
   55         (b) “Elector-initiated merger plan” means the merger plan
   56  of two or more independent special districts, a majority of
   57  whose qualified electors have elected to merge, which outlines
   58  the terms and agreements for the official merger of the
   59  districts, and is finalized and approved by the governing bodies
   60  of the districts pursuant to this section.
   61         (c) “Governing body” means the governing body of the
   62  independent special district in which the general legislative,
   63  governmental, or public powers of the district are vested and by
   64  authority of which the official business of the district is
   65  conducted.
   66         (d) “Initiative” means the filing of a petition containing
   67  a proposal for a referendum to be placed on the ballot for
   68  election.
   69         (e) “Joint merger plan” means the merger plan that is
   70  adopted by resolution of the governing bodies of two or more
   71  independent special districts, that outlines the terms and
   72  agreements for the official merger of the districts, and that is
   73  finalized and approved by the governing bodies pursuant to this
   74  section.
   75         (f) “Merged independent district” means a single
   76  independent special district that results from a successful
   77  merger of two or more independent special districts pursuant to
   78  this section.
   79         (g) “Merger” means the combination of two or more
   80  contiguous independent special districts that combine to become
   81  a newly created merged independent district that assumes
   82  jurisdiction over all of the component independent special
   83  districts.
   84         (h) “Merger plan” means a written document that contains
   85  the terms, agreements, and information regarding the merger of
   86  two or more independent special districts.
   87         (i) “Proposed elector-initiated merger plan” means a
   88  written document that contains the terms and information
   89  regarding the merger of two or more independent special
   90  districts and that accompanies the petition initiated by the
   91  qualified electors of the districts, but that is not yet
   92  finalized and approved by the governing bodies of each component
   93  independent special district pursuant to this section.
   94         (j) “Proposed joint merger plan” means a written document
   95  that contains the terms and information regarding the merger of
   96  two or more independent special districts and that has been
   97  prepared pursuant to a resolution of the governing bodies of the
   98  districts, but that is not yet finalized and approved by the
   99  governing bodies of each component independent special district
  100  pursuant to this section.
  101         (k) “Qualified elector” means an individual at least 18
  102  years of age who is a citizen of the United States, a permanent
  103  resident of this state, and a resident of the district who
  104  registers with the supervisor of elections of a county within
  105  which the district lands are located when the registration books
  106  are open.
  107         (2) MERGER OR DISSOLUTION OF A DEPENDENT SPECIAL DISTRICT.—
  108         (a) The merger or dissolution of a dependent special
  109  district districts may be effectuated by an ordinance of the
  110  general-purpose local governmental entity wherein the
  111  geographical area of the district or districts is located.
  112  However, a county may not dissolve a special district that is
  113  dependent to a municipality or vice versa, or a dependent
  114  district created by special act.
  115         (b) The merger or dissolution of a dependent district
  116  created and operating pursuant to a special act may be
  117  effectuated only by further act of the Legislature unless
  118  otherwise provided by general law.
  119         (c) Dependent special districts that meet any criteria for
  120  being declared inactive, or that have already been declared
  121  inactive, pursuant to s. 189.4044 may be dissolved or merged by
  122  special act without a referendum.
  123         (d)(b) A copy of any ordinance and of any changes to a
  124  charter affecting the status or boundaries of one or more
  125  special districts shall be filed with the Special District
  126  Information Program within 30 days after of such activity.
  127         (3)(2)DISSOLUTION OF AN INDEPENDENT SPECIAL DISTRICT.—
  128         (a)Voluntary dissolution.The voluntary merger or
  129  dissolution of an independent special district or a dependent
  130  district created and operating pursuant to a special act may
  131  only be effectuated only by the Legislature unless otherwise
  132  provided by general law.
  133         (b) Involuntary dissolution.If a local general-purpose
  134  government seeks to dissolve an active independent special
  135  district created and operating pursuant to a special act whose
  136  board objects by resolution to the dissolution, the dissolution
  137  of the active independent special district is not effective
  138  until a special act of the Legislature is approved by a majority
  139  of the resident electors of the district or landowners voting in
  140  the same manner by which the independent special district’s
  141  governing board is elected. This paragraph also applies if an
  142  independent special district’s governing board elects to
  143  dissolve the district by less than a supermajority vote of the
  144  board. The political subdivisions proposing the involuntary
  145  dissolution of an active independent special district shall be
  146  responsible for payment of any expenses associated with the
  147  referendum required under this paragraph.
  148         (c) Inactive independent special districts.Independent
  149  special districts that meet any criteria for being declared
  150  inactive, or that have already been declared inactive, pursuant
  151  to s. 189.4044 may be dissolved by special act without a
  152  referendum. If an inactive independent special district was
  153  created by a county or municipality through a referendum, the
  154  county or municipality that created the district may dissolve
  155  the district after publishing notice as described in s.
  156  189.4044. If an independent special district was created by a
  157  county or municipality by referendum or any other procedure, the
  158  county or municipality that created the district may merge or
  159  dissolve the district pursuant to a referendum or any other the
  160  same procedure by which the independent district was created.
  161  However, if the for any independent special district that has ad
  162  valorem taxation powers, the same procedure required to grant
  163  the such independent district ad valorem taxation powers is
  164  shall also be required to dissolve or merge the district.
  165         (d) Debts and assets.—Financial allocations of the assets
  166  and indebtedness of a dissolved independent special district
  167  shall be pursuant to s. 189.4045.
  168         (4) LEGISLATIVE MERGER OF INDEPENDENT SPECIAL DISTRICTS.
  169  The Legislature may merge independent special districts created
  170  and operating pursuant to special act.
  171         (5) VOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.—Two
  172  or more contiguous independent special districts created by
  173  special act which have similar functions and elected governing
  174  bodies may elect to merge into a single independent district
  175  through the act of merging the component independent special
  176  districts
  177         (a) Initiation.—Merger proceedings may commence by:
  178         1. A joint resolution of the governing bodies of each
  179  independent special district which endorses a proposed joint
  180  merger plan; or
  181         2. A qualified elector initiative.
  182         (b) Joint merger plan by resolution.—The governing bodies
  183  of two or more contiguous independent special districts may, by
  184  joint resolution, endorse a proposed joint merger plan to
  185  commence proceedings to merge the districts pursuant to this
  186  subsection.
  187         1. The proposed joint merger plan must specify:
  188         a. The name of each component independent special district
  189  to be merged;
  190         b. The name of the proposed merged independent district;
  191         c. The rights, duties, and obligations of the proposed
  192  merged independent district;
  193         d. The territorial boundaries of the proposed merged
  194  independent district;
  195         e. The governmental organization of the proposed merged
  196  independent district insofar as it concerns elected and
  197  appointed officials and public employees, along with a
  198  transitional plan and schedule for elections and appointments of
  199  officials;
  200         f. A fiscal estimate of the potential cost or savings as a
  201  result of the merger;
  202         g. Each component independent special district’s assets,
  203  including, but not limited to, real and personal property, and
  204  the current value thereof;
  205         h. Each component independent special district’s
  206  liabilities and indebtedness, bonded and otherwise, and the
  207  current value thereof;
  208         i. Terms for the assumption and disposition of existing
  209  assets, liabilities, and indebtedness of each component
  210  independent special district jointly, separately, or in defined
  211  proportions;
  212         j. Terms for the common administration and uniform
  213  enforcement of existing laws within the proposed merged
  214  independent district;
  215         k. The times and places for public hearings on the proposed
  216  joint merger plan;
  217         l. The times and places for a referendum in each component
  218  independent special district on the proposed joint merger plan,
  219  along with the referendum language to be presented for approval;
  220  and
  221         m. The effective date of the proposed merger.
  222         2. The resolution endorsing the proposed joint merger plan
  223  must be approved by a majority vote of the governing bodies of
  224  each component independent special district and adopted at least
  225  60 business days before any general or special election on the
  226  proposed joint merger plan.
  227         3. Within 5 business days after the governing bodies
  228  approve the resolution endorsing the proposed joint merger plan,
  229  the governing bodies must:
  230         a. Cause a copy of the proposed joint merger plan, along
  231  with a descriptive summary of the plan, to be displayed and be
  232  readily accessible to the public for inspection in at least
  233  three public places within the territorial limits of each
  234  component independent special district, unless a component
  235  district has fewer than three public places, in which case the
  236  plan must be accessible for inspection in all public places
  237  within the component independent special district;
  238         b. If applicable, cause the proposed joint merger plan,
  239  along with a descriptive summary of the plan and a reference to
  240  the public places within each component independent special
  241  district where a copy of the merger plan may be examined, to be
  242  displayed on a website maintained by each district or on a
  243  website maintained by the county or municipality in which the
  244  districts are located; and
  245         c. Arrange for a descriptive summary of the proposed joint
  246  merger plan and a reference to the public places within the
  247  district where a copy may be examined, to be published in a
  248  newspaper of general circulation within the component
  249  independent special districts at least once each week for 4
  250  successive weeks.
  251         4. The governing body of each component independent special
  252  district shall set a time and place for one or more public
  253  hearings on the proposed joint merger plan. The public hearing
  254  shall be held on a weekday at least 7 business days after the
  255  day the first advertisement is published on the proposed joint
  256  merger plan. The hearings may be held jointly or separately by
  257  the governing bodies of each component district. Any interested
  258  person residing in the respective district shall be given a
  259  reasonable opportunity to be heard on any aspect of the proposed
  260  merger at the public hearing.
  261         a. Notice of the public hearing addressing the resolution
  262  for the proposed joint merger plan must be published pursuant to
  263  the notice requirements under s. 189.417 and must provide a
  264  descriptive summary of the proposed joint merger plan and a
  265  reference to the public places within the component independent
  266  special districts where a copy of the plan may be examined.
  267         b. After the final public hearing, the governing bodies of
  268  each component independent special district may amend the
  269  proposed joint merger plan if the amended version complies with
  270  the notice and public hearing requirements provided in this
  271  subsection. Thereafter, the governing bodies may approve a final
  272  version of the joint merger plan or decline to proceed further
  273  with the merger. Approval by the governing bodies of the final
  274  version of the joint merger plan must occur within 60 business
  275  days after the final hearing.
  276         5. After the final public hearing, the governing bodies
  277  shall notify the supervisors of elections of the applicable
  278  counties in which district lands are located of the adoption of
  279  the resolution by each governing body. The supervisors of
  280  elections shall schedule separate referendums for each component
  281  independent special district. The referendums may be held in
  282  each district on the same day, or on different days, but no more
  283  than 20 days apart.
  284         a. Notice of a referendum on the merger of independent
  285  special districts must be provided pursuant to the notice
  286  requirements in s. 100.342. At a minimum, the notice must
  287  include:
  288         (I) A brief summary of the resolution and joint merger
  289  plan;
  290         (II)A statement as to where a copy of the resolution and
  291  joint merger plan may be examined;
  292         (III)The names of the component independent special
  293  districts and a description of their territory;
  294         (IV)The times and places at which the referendum will be
  295  held; and
  296         (V)Such other matters as may be necessary to call, provide
  297  for, and give notice of the referendum and to provide for the
  298  conduct thereof and the canvass of the returns.
  299         b. The referendums must be held in accordance with the
  300  Florida Election Code and may be held pursuant to ss. 101.6101
  301  101.6107. All costs associated with the referendums shall be
  302  borne by the respective component independent special district.
  303         c. The ballot question in such referendum placed before the
  304  qualified electors of each component independent special
  305  district to be merged must be in substantially the following
  306  form:
  307  
  308         “Shall (...name of component independent special
  309  district...) and (...name of component independent special
  310  district or districts...) be merged into (...name of new merged
  311  independent district...)?
  312         _____YES
  313         _____NO”
  314  
  315         d. If the component independent special districts have
  316  disparate millage rates, the ballot question in the referendum
  317  placed before the qualified electors of each component district
  318  must be in substantially the following form:
  319  
  320         “Shall (...name of component independent special
  321  district...) and (...name of component independent special
  322  district or districts...) be merged into (...name of new merged
  323  independent district...), if the voter-approved maximum millage
  324  rate within each independent special district will not increase
  325  absent a subsequent referendum?
  326         _____YES
  327         _____NO”
  328  
  329         e. In any referendum held pursuant to this subsection, the
  330  ballots shall be counted, returns made and canvassed, and
  331  results certified in the same manner as other elections or
  332  referendums for the component independent special districts.
  333         f. The merger may not take effect unless a majority of the
  334  votes cast in each component independent special district are in
  335  favor of the merger. If one of the component districts does not
  336  obtain a majority vote, the referendum fails, and merger does
  337  not take effect.
  338         g. If merger is approved by a majority of the votes cast in
  339  each component independent special district, the merged
  340  independent district is created. Upon approval, the merged
  341  district shall notify the Special District Information Program
  342  pursuant to s. 189.418(2) and the local general-purpose
  343  governments in which any part of the component districts is
  344  situated pursuant to s. 189.418(7).
  345         h. If the referendum fails, the merger process under this
  346  paragraph may not be initiated for the same purpose within 2
  347  years after the date of the referendum.
  348         6. Component independent special districts merged pursuant
  349  to a joint merger plan by resolution shall continue to be
  350  governed as before the merger until the effective date specified
  351  in the adopted joint merger plan.
  352         (c) Qualified elector-initiated merger plan.—The qualified
  353  electors of two or more contiguous independent special districts
  354  may commence a merger proceeding by each filing a petition with
  355  the governing bodies of each independent special district
  356  proposing to be merged. The petition must contain the signatures
  357  of at least 20 percent of the qualified electors of each
  358  component independent special district.
  359         1. The petition must comply with, and be circulated in, the
  360  following form:
  361  
  362         PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER
  363  
  364         We, the undersigned electors and legal voters of (...name
  365  of independent special district...), qualified to vote at the
  366  next general or special election, respectfully petition that
  367  there be submitted to the electors and legal voters of (...name
  368  of independent special district or districts proposed to be
  369  merged...), for their approval or rejection at a referendum held
  370  for that purpose, a proposal to merge (...name of component
  371  independent special district...) and (...name of component
  372  independent special district or districts...)
  373  
  374         In witness thereof, we have signed our names on the date
  375  indicated next to our signatures.
  376  
  377         Date		Name (print under signature)		Home Address
  378         ___________________________________________________________
  379         ___________________________________________________________
  380  
  381         2. The petition must be validated by a signed statement by
  382  a witness who is a duly qualified elector of one of the
  383  component independent special districts, a notary public, or
  384  another person authorized to take acknowledgements.
  385         a. A statement that is signed by a witness who is a duly
  386  qualified elector of the respective district shall be accepted
  387  for all purposes as the equivalent of an affidavit. Such
  388  statement must be in substantially the following form:
  389  
  390         “I, (...name of witness...), state that I am a duly
  391  qualified voter of (...name of independent special district...).
  392  Each of the (...insert number...) persons who have signed this
  393  petition sheet has signed his or her name in my presence on the
  394  dates indicated above and identified himself or herself to be
  395  the same person who signed the sheet. I understand that this
  396  statement will be accepted for all purposes as the equivalent of
  397  an affidavit, and if it contains a materially false statement,
  398  shall subject me to the penalties of perjury.”
  399  
  400         Date 				Signature of Witness
  401  
  402         b. A statement that is signed be a notary public or another
  403  person authorized to take acknowledgements must be in
  404  substantially the following form:
  405  
  406         “On the date indicated above before me personally came each
  407  of the (...insert number...) electors and legal voters whose
  408  signatures appear on this petition sheet, who signed the
  409  petition in my presence and who, being by me duly sworn, each
  410  for himself or herself, identified himself or herself as the
  411  same person who signed the petition, and I declare that the
  412  foregoing information they provided was true.”
  413  
  414         Date					Signature of Witness
  415  
  416         c. An alteration or correction of information appearing on
  417  a petition’s signature line, other than an uninitialed signature
  418  and date, does not invalidate such signature. In matters of
  419  form, this paragraph shall be liberally construed, not
  420  inconsistent with substantial compliance thereto and the
  421  prevention of fraud.
  422         d. The appropriately signed petition must be filed with the
  423  governing board of each component independent special district.
  424  The petition must be submitted to the supervisors of elections
  425  of the counties in which the district lands are located. The
  426  supervisors shall, within 30 business days after receipt of the
  427  petitions, certify to the governing boards the number of
  428  signatures of qualified electors contained on the petitions.
  429         3. Upon verification by the supervisors of election of the
  430  counties within which component independent special district
  431  lands are located that 20 percent of the qualified electors have
  432  petitioned for merger, the governing bodies of each component
  433  district shall meet within 30 business days to prepare and
  434  approve by resolution a proposed elector-initiated merger plan.
  435  The proposed plan must include:
  436         a. The name of each component independent special district
  437  to be merged;
  438         b. The name of the proposed merged independent district;
  439         c. The rights, duties, and obligations of the merged
  440  independent district;
  441         d. The territorial boundaries of the proposed merged
  442  independent district;
  443         e. The governmental organization of the proposed merged
  444  independent district insofar as it concerns elected and
  445  appointed officials and public employees, along with a
  446  transitional plan and schedule for elections and appointments of
  447  officials;
  448         f. A fiscal estimate of the potential cost or savings as a
  449  result of the merger;
  450         g. Each component independent special district’s assets,
  451  including, but not limited to, real and personal property, and
  452  the current value thereof;
  453         h. Each component independent special district’s
  454  liabilities and indebtedness, bonded and otherwise, and the
  455  current value thereof;
  456         i. Terms for the assumption and disposition of existing
  457  assets, liabilities, and indebtedness of each component
  458  independent special district, jointly, separately, or in defined
  459  proportions;
  460         j. Terms for the common administration and uniform
  461  enforcement of existing laws within the proposed merged
  462  independent district;
  463         k. The times and places for public hearings on the proposed
  464  joint merger plan; and
  465         l. The effective date of the proposed merger.
  466         4. The resolution endorsing the proposed elector-initiated
  467  merger plan must be approved by a majority vote of the governing
  468  bodies of each component independent special district and must
  469  be adopted at least 60 business days before any general or
  470  special election on the proposed elector-initiated plan.
  471         5. Within 5 business days after the governing bodies of
  472  each component independent special district approve the proposed
  473  elector-initiated merger plan, the governing bodies shall:
  474         a. Cause a copy of the proposed elector-initiated merger
  475  plan, along with a descriptive summary of the plan, to be
  476  displayed and be readily accessible to the public for inspection
  477  in at least three public places within the territorial limits of
  478  each component independent special district, unless a component
  479  district has fewer than three public places, in which case the
  480  plan must be accessible for inspection in all public places
  481  within the component independent special district;
  482         b. If applicable, cause the proposed elector-initiated
  483  merger plan, along with a descriptive summary of the plan and a
  484  reference to the public places within each component independent
  485  special district where a copy of the merger plan may be
  486  examined, to be displayed on a website maintained by each
  487  district or otherwise on a website maintained by the county or
  488  municipality in which the districts are located; and
  489         c. Arrange a descriptive summary of the proposed elector
  490  initiated merger plan and a reference to the public places
  491  within the district where a copy may be examined, to be
  492  published in a newspaper of general circulation within the
  493  component independent special districts at least once each week
  494  for 4 successive weeks.
  495         6. The governing body of each component independent special
  496  district shall set the time and place for one or more public
  497  hearings on the proposed elector-initiated merger plan. The
  498  public hearing shall be held on a weekday at least 7 business
  499  days after the day the first advertisement is published on the
  500  proposed elector-initiated merger plan. The hearing or hearings
  501  may be held jointly or separately by the governing bodies of
  502  each component independent special district. Any interested
  503  person residing in the respective district shall be given a
  504  reasonable opportunity to be heard on any aspect of the proposed
  505  merger at the public hearing.
  506         a. Notice of the public hearing on the proposed elector
  507  initiated merger plan must be published pursuant to the notice
  508  requirements provided in s. 189.417 and must provide a
  509  descriptive summary of the elector-initiated merger plan and a
  510  reference to the places within the component independent special
  511  districts where a copy of the plan may be examined.
  512         b. After the final public hearing, the governing bodies of
  513  each component independent special district may amend the
  514  proposed elector-initiated merger plan if the amended version
  515  complies with the notice and public hearing requirements
  516  provided in this subsection. The governing bodies must approve a
  517  final version of the merger plan within 60 business days after
  518  the final hearing.
  519         7. After the final public hearing, the governing bodies
  520  shall notify the supervisors of elections of the applicable
  521  counties in which district lands are located of the adoption of
  522  the resolution by each component independent special district.
  523  The supervisors of elections shall schedule a date for the
  524  separate referendums for each district. The referendums may be
  525  held in each district on the same day, or on different days, but
  526  no more than 20 days apart.
  527         a. Notice of a referendum on the merger of the component
  528  independent special districts must be provided pursuant to the
  529  notice requirements in s. 100.342. At a minimum, the notice must
  530  include:
  531         (I) A brief summary of the resolution and elector-initiated
  532  merger plan;
  533         (II) A statement as to where a copy of the resolution and
  534  petition for merger may be examined;
  535         (III) The names of the component independent special
  536  districts to be merged and a description of their territory;
  537         (IV) The times and places at which the referendum will be
  538  held; and
  539         (V) Such other matters as may be necessary to call, provide
  540  for, and give notice of the referendum and to provide for the
  541  conduct thereof and the canvass of the returns.
  542         b. The referendums must be held in accordance to the
  543  Florida Election Code and may be held pursuant to ss. 101.6101
  544  101.6107. All costs associated with the referendums shall be
  545  borne by the respective component independent special district.
  546         c. The ballot question in such referendum placed before the
  547  qualified electors of each component independent special
  548  district must be in substantially the following form:
  549  
  550         “Shall (...name of component independent special
  551  district...) and (...name of component independent special
  552  district or districts...) be merged into (...name of new merged
  553  independent district...)?
  554         _____YES
  555         _____NO”
  556  
  557         d. If the component independent special districts proposing
  558  to merge have disparate millage rates, the ballot question in
  559  such referendum placed before the qualified electors of each
  560  component special district must be in substantially the
  561  following form:
  562  
  563         “Shall (...name of component independent special
  564  district...) and (...name of component independent special
  565  district or districts...) be merged into (...name of new merged
  566  independent district...), if the voter-approved maximum millage
  567  rate within each independent special district will not increase
  568  absent a subsequent referendum?
  569  
  570         _____YES
  571         _____NO”
  572  
  573         e. In any referendum held pursuant to this subsection, the
  574  ballots shall be counted, returns made and canvassed, and
  575  results certified in the same manner as other elections or
  576  referendums for the component independent special districts.
  577         f. The merger may not take effect unless a majority of the
  578  votes cast in each component independent special district are in
  579  favor of the merger. If one of the component independent special
  580  districts does not obtain a majority vote, the referendum fails,
  581  and merger does not take effect.
  582         g. If merger is approved by a majority of the votes cast in
  583  each component independent special district, the merged district
  584  shall notify the Special District Information Program pursuant
  585  to s. 189.418(2) and the local general-purpose governments in
  586  which any part of the component independent special districts is
  587  situated pursuant to s. 189.418(7).
  588         h. If the referendum fails, the merger process specified by
  589  this paragraph may not be initiated for the same purpose within
  590  2 years after the date of the referendum.
  591         8. Component independent special districts merged pursuant
  592  to an elector-initiated merger plan shall continue to be
  593  governed as before the merger until the effective date specified
  594  in the adopted elector-initiated merger plan.
  595         (d) Effective date.—The effective date of the merger shall
  596  be as provided in the joint merger plan or elector-initiated
  597  merger plan, as appropriate, and is not contingent upon the
  598  future act of the Legislature.
  599         1. However, as soon as practicable, the merged independent
  600  district shall, at its own expense, submit a unified charter for
  601  the merged district to the Legislature for approval. The unified
  602  charter must make the powers of the district consistent within
  603  the merged independent district and repeal the special acts of
  604  the districts which existed before the merger.
  605         2. Within 30 business days after the effective date of the
  606  merger, the merged independent district’s governing board, as
  607  indicated in this subsection, shall hold an organizational
  608  meeting to implement the provisions of the joint merger plan or
  609  elector-initiated merger plan, as appropriate.
  610         (e) Restrictions during transition period.—Until the
  611  Legislature formally approves the unified charter pursuant to a
  612  special act, each component independent special district is
  613  considered a subunit of the merged independent district subject
  614  to the following restrictions:
  615         1. During the transition period, the merged independent
  616  district is limited in its powers and financing capabilities
  617  within each subunit to those powers that existed within the
  618  boundaries of each subunit which were previously granted to the
  619  component independent special district in its existing charter
  620  before the merger. The merged independent district may not,
  621  solely by reason of the merger, increase its powers or financing
  622  capability.
  623         2. During the transition period, the merged independent
  624  district shall exercise only the legislative authority to levy
  625  and collect revenues within the boundaries of each subunit which
  626  was previously granted to the component independent special
  627  district by its existing charter before the merger, including
  628  the authority to levy ad valorem taxes, non-ad valorem
  629  assessments, impact fees, and charges.
  630         a. The merged independent district may not, solely by
  631  reason of the merger, increase ad valorem taxes on property
  632  within the original limits of a subunit beyond the maximum ad
  633  valorem rate approved by the electors of the component
  634  independent special district. For purposes of s. 2, Art. VII of
  635  the State Constitution, each subunit may be considered a
  636  separate taxing unit. The merged independent district may levy
  637  an ad valorem millage rate within a subunit, if applicable, only
  638  up to the millage rate that was previously approved by the
  639  electors of the component independent special district unless an
  640  increase in the millage rate is approved pursuant to state law.
  641         b. The merged independent district may not, solely by
  642  reason of the merger, charge non-ad valorem assessments, impact
  643  fees, or other new fees within a subunit which were not
  644  otherwise previously authorized to be charged.
  645         3. During the transition period, each component independent
  646  special district of the merged independent district must
  647  continue to file all information and reports required under this
  648  chapter as subunits until the Legislature formally approves the
  649  unified charter pursuant to a special act.
  650         4. The intent of this section is to preserve and transfer
  651  all authority to the merged independent district which exists
  652  within each subunit and was previously granted by the
  653  Legislature and, if applicable, by referendum.
  654         (f) Effect of merger, generally.—On and after the effective
  655  date of the merger, the merged independent district shall be
  656  treated and considered for all purposes as one entity under the
  657  name and on the terms and conditions set for in the joint merger
  658  plan or elector-initiated merger plan, as appropriate.
  659         1. All rights, privileges, and franchises of each component
  660  independent special district and all assets, real and personal
  661  property, books, records, papers, seals and equipment, as well
  662  as other things in action, belonging to each component
  663  independent special district before merger, shall be deemed as
  664  transferred to and vested in the merged independent district
  665  without further act or deed.
  666         2. All property, rights-of-way, and other interests are as
  667  effectually the property of the merged independent district as
  668  they were of the component independent special district before
  669  the merger. The title to real estate, by deed or otherwise,
  670  under the laws of this state vested in any component independent
  671  special district before the merger, may not be deemed to revert
  672  or be in any way impaired by reason of the merger.
  673         3. The merged independent district is in all respects
  674  subject to all obligations and liabilities imposed and possess
  675  all the rights, powers, and privileges vested by law in other
  676  similar entities.
  677         4. Upon the effective date of the merger, the joint merger
  678  plan or elector-initiated merger plan, as appropriate, is
  679  subordinate in all respects to the contract rights of all
  680  holders of any securities or obligations of the component
  681  independent special districts outstanding at the effective date
  682  of the merger.
  683         5. The new registration of electors is not necessary as a
  684  result of the merger, but all elector registrations of the
  685  component independent special districts shall be transferred to
  686  the proper registration books of the merged independent
  687  district, and new registrations shall be made as provided by law
  688  as if no merger had taken place.
  689         (g) Governing board of merged independent district.
  690         1. From the effective date of the merger until the next
  691  general election, the governing board of the merged independent
  692  district shall be comprised of the governing board members of
  693  each component independent special district, with such members
  694  serving until the governing board members elected at the next
  695  general election take office.
  696         2. Beginning with the next general election following the
  697  effective date of merger, the governing board of the merged
  698  independent district shall be comprised of five members. The
  699  office of each governing board member shall be designated by
  700  seat, which shall be distinguished from other board member seats
  701  by an assigned numeral: 1, 2, 3, 4, or 5. The governing board
  702  members that are elected in this initial election following the
  703  merger shall serve unequal terms of 2 and 4 years in order to
  704  create staggered membership of the governing board, with:
  705         a. Board member seats 1, 3, and 5 being designated for 4
  706  year terms; and
  707         b. Board member seats 2 and 4 being designated for 2-year
  708  terms.
  709         3. In general elections thereafter, all governing board
  710  members shall serve 4-year terms.
  711         (h) Effect on employees.—Except as otherwise provided by
  712  law and except for those officials and employees protected by
  713  tenure of office, civil service provisions, or a collective
  714  bargaining agreement, upon the effective date of merger, all
  715  appointive offices and positions existing in all component
  716  independent special districts involved in the merger are subject
  717  to the terms of the joint merger plan or elector-initiated
  718  merger plan, as appropriate. Such plan may provide for instances
  719  in which there are duplications of positions, and for other
  720  matters such as varying lengths of employee contracts, varying
  721  pay levels or benefits, different civil service regulations in
  722  the constituent entities, and differing ranks and position
  723  classifications for similar positions. For those employees who
  724  are members of a bargaining unit certified by the Public
  725  Employees Relations Commission, the requirements of chapter 447
  726  apply.
  727         (i) Debts, liabilities, and obligations.
  728         1. All valid and lawful debts and liabilities existing
  729  against a merged independent district, or which may arise or
  730  accrue against the merged independent district, which but for
  731  merger would be valid and lawful debts or liabilities against
  732  one or more of the component independent special districts, are
  733  debts against or liabilities of the merged independent district
  734  and accordingly shall be defrayed and answered to by the merged
  735  independent district to the same extent, and no further than,
  736  the component independent special districts would have been
  737  bound if a merger had not taken place.
  738         2. The rights of creditors and all liens upon the property
  739  of any of the component independent special districts shall be
  740  preserved unimpaired. The respective component districts shall
  741  be deemed to continue in existence to preserve such rights and
  742  liens, and all debts, liabilities, and duties of any of the
  743  component districts attach to the merged independent district.
  744         3. All bonds, contracts, and obligations of the component
  745  independent special districts which exist as legal obligations
  746  are obligations of the merged independent district, and all such
  747  obligations shall be issued or entered into by and in the name
  748  of the merged independent district.
  749         (j) Effect on actions and proceedings.—In any action or
  750  proceeding pending on the effective date of merger to which a
  751  component independent special district is a party, the merged
  752  independent district may be substituted in its place, and the
  753  action or proceeding may be prosecuted to judgment as if merger
  754  had not taken place. Suits may be brought and maintained against
  755  a merged independent district in any state court in the same
  756  manner as against any other independent special district.
  757         (k) Annexation.—Chapter 171 continues to apply to all
  758  annexations by a city within the component independent special
  759  districts’ boundaries after merger occurs. Any moneys owed to a
  760  component district pursuant to s. 171.093, or any interlocal
  761  service boundary agreement as a result of annexation predating
  762  the merger, shall be paid to the merged independent district
  763  after merger.
  764         (l) Determination of rights.—If any right, title, interest,
  765  or claim arises out of a merger or by reason thereof which is
  766  not determinable by reference to the provisions in this
  767  subsection, the joint merger plan or elector-initiated merger
  768  plan, as appropriate, or otherwise under the laws of this state,
  769  the governing body of the merged independent district may
  770  provide therefor in a manner conforming to law.
  771         (m) Exemption.—This subsection does not apply to
  772  independent special districts whose governing bodies are elected
  773  by district landowners voting the acreage owned within the
  774  district.
  775         (n) Preemption.—This subsection preempts any special act to
  776  the contrary.
  777         (6) INVOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.—If
  778  a local general-purpose government seeks to merge an active
  779  independent special district or districts created and operating
  780  pursuant to a special act whose board or boards object by
  781  resolution to the merger, the merger of the active independent
  782  special district or districts is not effective until the special
  783  act of the Legislature is approved at separate referenda of the
  784  impacted local governments by a majority of the resident
  785  electors or landowners voting in the same manner by which each
  786  independent special district’s governing board is elected. The
  787  special act shall include a plan of merger that addresses
  788  transition issues such as the effective date of the merger,
  789  governance, administration, powers, pensions, and assumption of
  790  all assets and liabilities.
  791         (a) The political subdivisions proposing the involuntary
  792  merger of an active independent special district shall be
  793  responsible for payment of any expenses associated with the
  794  referendum required under this subsection.
  795         (b) Independent special districts that meet any criteria
  796  for being declared inactive, or that have already been declared
  797  inactive, pursuant to s. 189.4044 may by merged by special act
  798  without a referendum.
  799         (7)(3)EXEMPTIONS.—The provisions of This section does
  800  shall not apply to community development districts implemented
  801  pursuant to chapter 190 or to water management districts created
  802  and operated pursuant to chapter 373.
  803         Section 2. Section 191.014, Florida Statutes, is amended to
  804  read:
  805         191.014 District creation and, expansion, and merger.—
  806         (1) New districts may be created only by the Legislature
  807  under s. 189.404.
  808         (2) The boundaries of a district may be modified, extended,
  809  or enlarged upon approval or ratification by the Legislature.
  810         (3) The merger of a district with all or portions of other
  811  independent special districts or dependent fire control
  812  districts is effective only upon ratification by the
  813  Legislature. A district may not, solely by reason of a merger
  814  with another governmental entity, increase ad valorem taxes on
  815  property within the original limits of the district beyond the
  816  maximum established by the district’s enabling legislation,
  817  unless approved by the electors of the district by referendum.
  818         Section 3. Paragraph (a) of subsection (1) and subsection
  819  (4) of section 189.4044, Florida Statutes, are amended to read:
  820         189.4044 Special procedures for inactive districts.—
  821         (1) The department shall declare inactive any special
  822  district in this state by documenting that:
  823         (a) The special district meets one of the following
  824  criteria:
  825         1. The registered agent of the district, the chair of the
  826  governing body of the district, or the governing body of the
  827  appropriate local general-purpose government notifies the
  828  department in writing that the district has taken no action for
  829  2 or more years;
  830         2. Following an inquiry from the department, the registered
  831  agent of the district, the chair of the governing body of the
  832  district, or the governing body of the appropriate local
  833  general-purpose government notifies the department in writing
  834  that the district has not had a governing board or a sufficient
  835  number of governing board members to constitute a quorum for 2
  836  or more years or the registered agent of the district, the chair
  837  of the governing body of the district, or the governing body of
  838  the appropriate local general-purpose government fails to
  839  respond to the department’s inquiry within 21 days; or
  840         3. The department determines, pursuant to s. 189.421, that
  841  the district has failed to file any of the reports listed in s.
  842  189.419.
  843         4. The governing body of a special district provides
  844  documentation to the Department that it has unanimously adopted
  845  a resolution declaring the special district inactive. The
  846  special district shall be responsible for payment of any
  847  expenses associated with its dissolution.
  848         (4) The entity that created a special district declared
  849  inactive under this section must dissolve the special district
  850  by repealing its enabling laws or by other appropriate means.
  851  Any special district declared inactive pursuant to subparagraph
  852  (1)(a)4., may be dissolved without a referendum.
  853         Section 4. This act shall take effect July 1, 2011.