Florida Senate - 2020                                    SB 1434
       
       
        
       By Senator Torres
       
       
       
       
       
       15-01575-20                                           20201434__
    1                        A bill to be entitled                      
    2         An act relating to community development districts;
    3         amending s. 190.046, F.S.; authorizing certain
    4         entities to petition a court to dissolve a community
    5         development district with outstanding financial
    6         obligations or operating or maintenance
    7         responsibilities; providing procedures to be used by a
    8         court in appointing receivers; specifying court
    9         authorities in issuing orders concerning duties of a
   10         receiver; providing an effective date.
   11          
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Section 190.046, Florida Statutes, is amended to
   15  read:
   16         190.046 Termination, contraction, or expansion, or
   17  dissolution of district.—
   18         (1) A landowner or the board may petition to contract or
   19  expand the boundaries of a community development district in the
   20  following manner:
   21         (a) The petition shall contain the same information
   22  required by s. 190.005(1)(a)1. and 8. In addition, if the
   23  petitioner seeks to expand the district, the petition shall
   24  describe the proposed timetable for construction of any district
   25  services to the area, the estimated cost of constructing the
   26  proposed services, and the designation of the future general
   27  distribution, location, and extent of public and private uses of
   28  land proposed for the area by the future land use plan element
   29  of the adopted local government local comprehensive plan. If the
   30  petitioner seeks to contract the district, the petition shall
   31  describe what services and facilities are currently provided by
   32  the district to the area being removed, and the designation of
   33  the future general distribution, location, and extent of public
   34  and private uses of land proposed for the area by the future
   35  land element of the adopted local government comprehensive plan.
   36         (b) For those districts initially established by county
   37  ordinance, the petition for ordinance amendment shall be filed
   38  with the county commission. If the land to be included or
   39  excluded is, in whole or in part, within the boundaries of a
   40  municipality, then the county commission shall not amend the
   41  ordinance without municipal approval. A public hearing shall be
   42  held in the same manner and with the same public notice as other
   43  ordinance amendments. The county commission shall consider the
   44  record of the public hearing and the factors set forth in s.
   45  190.005(1)(e) in making its determination to grant or deny the
   46  petition for ordinance amendment.
   47         (c) For those districts initially established by municipal
   48  ordinance pursuant to s. 190.005(2)(e), the municipality shall
   49  assume the duties of the county commission set forth in
   50  paragraph (b); however, if any of the land to be included or
   51  excluded, in whole or in part, is outside the boundaries of the
   52  municipality, then the municipality shall not amend its
   53  ordinance without county commission approval.
   54         (d)1. For those districts initially established by
   55  administrative rule pursuant to s. 190.005(1), the petition
   56  shall be filed with the Florida Land and Water Adjudicatory
   57  Commission.
   58         2. Prior to filing the petition, the petitioner shall pay a
   59  filing fee of $1,500, to the county if the district or the land
   60  to be added or deleted from the district is located within an
   61  unincorporated area or to the municipality if the district or
   62  the land to be added or deleted is located within an
   63  incorporated area, and to each municipality the boundaries of
   64  which are contiguous with or contain all or a portion of the
   65  land within or to be added to or deleted from the external
   66  boundaries of the district. The petitioner shall submit a copy
   67  of the petition to the same entities entitled to receive the
   68  filing fee. In addition, if the district is not the petitioner,
   69  the petitioner shall file the petition with the district board
   70  of supervisors.
   71         3. Each county and each municipality shall have the option
   72  of holding a public hearing as provided by s. 190.005(1)(c).
   73  However, the public hearing shall be limited to consideration of
   74  the contents of the petition and whether the petition for
   75  amendment should be supported by the county or municipality.
   76         4. The district board of supervisors shall, in lieu of a
   77  hearing officer, hold the local public hearing provided for by
   78  s. 190.005(1)(d). This local public hearing shall be noticed in
   79  the same manner as provided in s. 190.005(1)(d). Within 45 days
   80  of the conclusion of the hearing, the district board of
   81  supervisors shall transmit to the Florida Land and Water
   82  Adjudicatory Commission the full record of the local hearing,
   83  the transcript of the hearing, any resolutions adopted by the
   84  local general-purpose governments, and its recommendation
   85  whether to grant the petition for amendment. The commission
   86  shall then proceed in accordance with s. 190.005(1)(e).
   87         5. A rule amending a district boundary shall describe the
   88  land to be added or deleted.
   89         (e)1. During the existence of a district initially
   90  established by administrative rule, the process to amend the
   91  boundaries of the district pursuant to paragraphs (a)-(d) shall
   92  not permit a cumulative net total greater than 50 percent of the
   93  land in the initial district, and in no event greater than 1,000
   94  acres on a cumulative net basis.
   95         2. During the existence of a district initially established
   96  by county or municipal ordinance, the process to amend the
   97  boundaries of the district pursuant to paragraphs (a)-(d) shall
   98  not permit a cumulative net total greater than 50 percent of the
   99  land in the initial district, and in no event greater than 1,000
  100  acres on a cumulative net basis.
  101         (f) Petitions to amend the boundaries of the district that
  102  exceed the amount of land specified in paragraph (e) shall be
  103  processed in accordance with s. 190.005, and the petition shall
  104  include only the elements set forth in s. 190.005(1)(a)1. and
  105  5.-8. and the consent required by paragraph (g). However, the
  106  resulting administrative rule or ordinance may only amend the
  107  boundaries of the district and may not establish a new district
  108  or cause a new 6-year or 10-year period to begin pursuant to s.
  109  190.006(3)(a)2. The filing fee for such petitions shall be as
  110  set forth in s. 190.005(1)(b), as applicable.
  111         (g) In all cases of a petition to amend the boundaries of a
  112  district, the filing of the petition by the district board of
  113  supervisors constitutes consent of the landowners within the
  114  district. In all cases, written consent of those landowners
  115  whose land is to be added to or deleted from the district as
  116  provided in s. 190.005(1)(a)2. is required.
  117         (h) For a petition to establish a new community development
  118  district of less than 2,500 acres on land located solely in one
  119  county or one municipality, sufficiently contiguous lands
  120  located within the county or municipality which the petitioner
  121  anticipates adding to the boundaries of the district within 10
  122  years after the effective date of the ordinance establishing the
  123  district may also be identified. If such sufficiently contiguous
  124  land is identified, the petition must include a legal
  125  description of each additional parcel within the sufficiently
  126  contiguous land, the current owner of the parcel, the acreage of
  127  the parcel, and the current land use designation of the parcel.
  128  At least 14 days before the hearing required under s.
  129  190.005(2)(b), the petitioner must give the current owner of
  130  each such parcel notice of filing the petition to establish the
  131  district, the date and time of the public hearing on the
  132  petition, and the name and address of the petitioner. A parcel
  133  may not be included in the district without the written consent
  134  of the owner of the parcel.
  135         1. After establishment of the district, a person may
  136  petition the county or municipality to amend the boundaries of
  137  the district to include a previously identified parcel that was
  138  a proposed addition to the district before its establishment. A
  139  filing fee may not be charged for this petition. Each such
  140  petition must include:
  141         a. A legal description by metes and bounds of the parcel to
  142  be added;
  143         b. A new legal description by metes and bounds of the
  144  district;
  145         c. Written consent of all owners of the parcel to be added;
  146         d. A map of the district including the parcel to be added;
  147         e. A description of the development proposed on the
  148  additional parcel; and
  149         f. A copy of the original petition identifying the parcel
  150  to be added.
  151         2. Before filing with the county or municipality, the
  152  person must provide the petition to the district and to the
  153  owner of the proposed additional parcel, if the owner is not the
  154  petitioner.
  155         3. Once the petition is determined sufficient and complete,
  156  the county or municipality must process the addition of the
  157  parcel to the district as an amendment to the ordinance that
  158  establishes the district. The county or municipality may process
  159  all petitions to amend the ordinance for parcels identified in
  160  the original petition, even if, by adding such parcels, the
  161  district exceeds 2,500 acres.
  162         4. The petitioner shall cause to be published in a
  163  newspaper of general circulation in the proposed district a
  164  notice of the intent to amend the ordinance that establishes the
  165  district. The notice must be in addition to any notice required
  166  for adoption of the ordinance amendment. Such notice must be
  167  published at least 10 days before the scheduled hearing on the
  168  ordinance amendment and may be published in the section of the
  169  newspaper reserved for legal notices. The notice must include a
  170  general description of the land to be added to the district and
  171  the date and time of the scheduled hearing to amend the
  172  ordinance. The petitioner shall deliver, including by mail or
  173  hand delivery, the notice of the hearing on the ordinance
  174  amendment to the owner of the parcel and to the district at
  175  least 14 days before the scheduled hearing.
  176         5. The amendment of a district by the addition of a parcel
  177  pursuant to this paragraph does not alter the transition from
  178  landowner voting to qualified elector voting pursuant to s.
  179  190.006, even if the total size of the district after the
  180  addition of the parcel exceeds 5,000 acres. Upon adoption of the
  181  ordinance expanding the district, the petitioner must cause to
  182  be recorded a notice of boundary amendment which reflects the
  183  new boundaries of the district.
  184         6. This paragraph is intended to facilitate the orderly
  185  addition of lands to a district under certain circumstances and
  186  does not preclude the addition of lands to any district using
  187  the procedures in the other provisions of this section.
  188         (2) The district shall remain in existence unless:
  189         (a) The district is merged with another district as
  190  provided in subsection (3) or subsection (4);
  191         (b) All of the specific community development systems,
  192  facilities, and services that it is authorized to perform have
  193  been transferred to a general-purpose unit of local government
  194  in the manner provided in subsections (5), (6), and (7); or
  195         (c) The district is dissolved as provided in subsection
  196  (8), subsection (9), or subsection (10), or subsection (11).
  197         (3) The district may merge with other community development
  198  districts upon filing a petition for merger, which petition
  199  shall include the elements set forth in s. 190.005(1) and which
  200  shall be evaluated using the criteria set forth in s.
  201  190.005(1)(e). The filing fee shall be as set forth in s.
  202  190.005(1)(b). In addition, the petition shall state whether a
  203  new district is to be established or whether one district shall
  204  be the surviving district. A community development district may
  205  also merge with another type of special district created by
  206  special act pursuant to the terms of that special act or by
  207  filing a petition for establishment of a new district pursuant
  208  to s. 190.005. The government formed by a merger involving a
  209  community development district pursuant to this section shall
  210  assume all indebtedness of, and receive title to, all property
  211  owned by the preexisting special districts, and the rights of
  212  creditors and liens upon property are not impaired by such
  213  merger. Any claim existing or action or proceeding pending by or
  214  against any district that is a party to the merger may be
  215  continued as if the merger had not occurred, or the surviving
  216  district may be substituted in the proceeding for the district
  217  that ceased to exist. Prior to filing a petition, the districts
  218  desiring to merge shall enter into a merger agreement and shall
  219  provide for the proper allocation of the indebtedness so assumed
  220  and the manner in which such debt shall be retired. The approval
  221  of the merger agreement and the petition by the board of
  222  supervisors of the district shall constitute consent of the
  223  landowners within the district. A community development district
  224  merging with another type of district may also enter into a
  225  merger agreement to address issues of transition, including the
  226  allocation of indebtedness and retirement of debt.
  227         (4)(a) To achieve economies of scale, reduce costs to
  228  affected district residents and businesses in areas with
  229  multiple existing districts, and encourage the merger of
  230  multiple districts, up to five districts that were established
  231  by the same local general-purpose government and whose board
  232  memberships are composed entirely of qualified electors may
  233  merge into one surviving district through adoption of an
  234  ordinance by the local general-purpose government,
  235  notwithstanding the acreage limitations otherwise set forth for
  236  the establishment of a district in this chapter. The filing of a
  237  petition by the majority of the members of each district board
  238  of supervisors seeking to merge constitutes consent of the
  239  landowners within each applicable district.
  240         (b) In addition to meeting the requirements of subsection
  241  (3), a merger agreement entered into between the district boards
  242  subject to this subsection must also:
  243         1. Require the surviving merged district board to consist
  244  of five elected board members.
  245         2. Require each at-large board seat to represent the entire
  246  geographic area of the surviving merged district.
  247         3. Ensure that each district to be merged is entitled to
  248  elect at least one board member from its former boundary.
  249         4. Ensure a fair allocation of board membership to
  250  represent the districts being merged. To that end:
  251         a. If two districts merge, two board members shall be
  252  elected from each of the districts and one member shall be
  253  elected at-large.
  254         b. If three districts merge, one board member shall be
  255  elected from each of the three districts and two board members
  256  shall be elected at-large.
  257         c. If four districts merge, one board member shall be
  258  elected from each of the four districts and one board member
  259  shall be elected at-large.
  260         d. If five districts merge, one board member shall be
  261  elected from each of the five districts.
  262         5. Require the election of board members for the surviving
  263  merged district to be held at the next general election
  264  following the merger, at which time all terms of preexisting
  265  board members shall end and the merger shall be legally in
  266  effect.
  267         (c) Before filing the merger petition with the local
  268  general-purpose government under this subsection, each district
  269  proposing to merge must hold a public hearing within its
  270  district to provide information about and take public comment on
  271  the proposed merger, merger agreement, and assignment of board
  272  seats. Notice of the hearing shall be published at least 14 days
  273  before the hearing. If, after the public hearing, a district
  274  board decides that it no longer wants to merge and cancels the
  275  proposed merger agreement, the remaining districts must each
  276  hold another public hearing on the revised merger agreement. A
  277  petition to merge may not be filed for at least 30 days after
  278  the last public hearing held by the districts proposing to
  279  merge.
  280         (5) The local general-purpose government within the
  281  geographical boundaries of which the district lies may adopt a
  282  nonemergency ordinance providing for a plan for the transfer of
  283  a specific community development service from a district to the
  284  local general-purpose government. The plan must provide for the
  285  assumption and guarantee of the district debt that is related to
  286  the service by the local general-purpose government and must
  287  demonstrate the ability of the local general-purpose government
  288  to provide such service:
  289         (a) As efficiently as the district.
  290         (b) At a level of quality equal to or higher than the level
  291  of quality actually delivered by the district to the users of
  292  the service.
  293         (c) At a charge equal to or lower than the actual charge by
  294  the district to the users of the service.
  295         (6) No later than 30 days following the adoption of a
  296  transfer plan ordinance, the board of supervisors may file, in
  297  the circuit court for the county in which the local general
  298  purpose government that adopted the ordinance is located, a
  299  petition seeking review by certiorari of the factual and legal
  300  basis for the adoption of the transfer plan ordinance.
  301         (7) Upon the transfer of all of the community development
  302  services of the district to a general-purpose unit of local
  303  government, the district shall be terminated in accordance with
  304  a plan of termination which shall be adopted by the board of
  305  supervisors and filed with the clerk of the circuit court.
  306         (8) If, within 5 years after the effective date of the rule
  307  or ordinance establishing the district, a landowner has not
  308  received a development permit, as defined in chapter 380, on
  309  some part or all of the area covered by the district, then the
  310  district will be automatically dissolved and a judge of the
  311  circuit court shall cause a statement to that effect to be filed
  312  in the public records.
  313         (9) In the event the district has become inactive pursuant
  314  to s. 189.062, the respective board of county commissioners or
  315  city commission shall be informed and it shall take appropriate
  316  action.
  317         (10) If a district has no outstanding financial obligations
  318  and no operating or maintenance responsibilities, upon the
  319  petition of the district, the district may be dissolved by a
  320  nonemergency ordinance of the general-purpose local governmental
  321  entity that established the district or, if the district was
  322  established by rule of the Florida Land and Water Adjudicatory
  323  Commission, the district may be dissolved by repeal of such rule
  324  of the commission.
  325         (11)(a)A district that has outstanding financial
  326  obligations or operating or maintenance responsibilities,
  327  regardless of whether it has been declared inactive pursuant to
  328  s. 189.062, may be dissolved by the general-purpose local
  329  government that established the district, after a majority vote
  330  to petition the court to dissolve the district by receivership.
  331         (b)A majority of real property owners in a district that
  332  was established by rule of the Florida Land and Water
  333  Adjudicatory Commission may petition the commission to initiate
  334  the process to dissolve the district by receivership if the
  335  district, regardless of whether it has been declared inactive
  336  pursuant to s. 189.062, has outstanding financial obligations or
  337  operating or maintenance responsibilities. Any petition received
  338  by the commission must be addressed at a regularly scheduled
  339  commission meeting. If the commission votes to dissolve the
  340  district, it shall petition a court of competent jurisdiction to
  341  dissolve the district by receivership.
  342         (12)(a)The court in a proceeding to dissolve a community
  343  development district shall hold a hearing, after notifying all
  344  parties to the proceeding and any interested persons designated
  345  by the court, before appointing one or more receivers to wind up
  346  and liquidate the business and affairs of the district. The
  347  court appointing a receiver has exclusive jurisdiction over the
  348  district and all of its property wherever located.
  349         (b)The court may appoint an individual or a corporation as
  350  a receiver. The corporation may be a domestic corporation or a
  351  foreign corporation authorized to transact business in this
  352  state. The court may require the receiver to post bond, with or
  353  without sureties, in an amount directed by the court.
  354         (c)The court shall issue an appointing order to describe
  355  the powers and duties of the receiver. The order, which may be
  356  amended, may authorize the receiver to dispose of any part of
  357  the assets of the district wherever located, at a public or
  358  private sale. In addition to the duties assigned by the court, a
  359  receiver may sue and defend in his or her own name as receiver
  360  of the district in all courts of this state.
  361         (d)During the receivership, the court may order that the
  362  receiver and his or her counsel receive compensation, expense
  363  disbursements, or other reimbursements from the assets of the
  364  district or proceeds from the sale of the assets.
  365         Section 2. This act shall take effect July 1, 2020.