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House Bill 1683

Florida House of Representatives - 1997 HB 1683 By Representative K. Pruitt 1 A bill to be entitled 2 An act relating to local government; amending 3 s. 11.45, F.S.; revising provisions which 4 provide requirements for annual financial 5 audits of local governmental entities by 6 independent certified public accountants; 7 requiring the auditor to notify each member of 8 the governing body of such an entity of certain 9 deteriorating financial conditions; providing 10 duties of the Auditor General upon 11 identification of information in an audit 12 report that indicates a local governmental 13 entity may be in a state of financial 14 emergency; amending s. 125.901, F.S.; 15 correcting a reference; amending s. 165.041, 16 F.S., relating to merger of local government 17 entities, to conform; amending s. 189.403, 18 F.S.; redefining "dependent special district" 19 and defining "public facilities" under the 20 Uniform Special District Accountability Act of 21 1989; providing that, for purposes of the ad 22 valorem tax exemption for governmental units, 23 special districts shall be treated as 24 municipalities; providing for retroactive 25 effect; amending s. 189.4031, F.S.; removing 26 provisions relating to applicability to certain 27 dependent special districts; requiring 28 independent special district charters to 29 contain certain information; amending s. 30 189.404, F.S.; deleting a requirement that the 31 law creating an independent special district 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 provide a method for dissolving the district; 2 specifying that only the Legislature may create 3 an independent special district, except as 4 otherwise authorized by law; requiring a status 5 statement in a district charter; amending s. 6 189.4041, F.S.; providing requirements for 7 creation of dependent special districts by 8 county or municipal ordinance; amending s. 9 189.4042, F.S.; providing merger and 10 dissolution requirements for special districts; 11 repealing s. 189.4043, F.S., which provides 12 special district dissolution procedures; 13 amending s. 189.4044, F.S.; providing 14 procedures and requirements for declaration 15 that a district is inactive; amending s. 16 189.4045, F.S.; revising provisions relating to 17 financial allocations upon merger or 18 dissolution; amending s. 189.405, F.S.; 19 revising election procedures and requirements 20 for special districts; providing method of 21 qualifying and providing for fees; amending s. 22 189.4051, F.S.; revising the special 23 requirements and procedures for elections for 24 districts with governing boards elected on a 25 one-acre/one-vote basis; amending s. 189.412, 26 F.S.; revising provisions relating to the 27 duties of the Special District Information 28 Program; removing the requirement for 29 organization of a biennial conference; amending 30 s. 189.415, F.S.; revising requirements 31 relating to special districts' public 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 facilities reports and providing for annual 2 notice of changes thereto; amending s. 3 189.4155, F.S.; revising requirements relating 4 to consistency of special district facilities 5 with local government comprehensive plans and 6 providing that such requirements do not apply 7 to certain spoil disposal sites and ports; 8 amending s. 189.416, F.S.; revising the time 9 for designation of a registered office and 10 agent; amending s. 189.417, F.S.; requiring 11 publication of special district meeting 12 schedules and revising requirements for filing 13 such schedules; amending s. 189.421, F.S.; 14 revising provisions relating to initiation of 15 enforcement proceedings against districts that 16 fail to file certain reports; amending s. 17 189.422, F.S.; revising provisions which 18 authorize department action if a district is 19 determined to be inactive or if failure to file 20 reports is determined to be volitional; 21 amending s. 189.425, F.S.; revising provisions 22 relating to rulemaking authority; creating s. 23 189.428, F.S.; establishing an oversight review 24 process for special districts and providing 25 requirements with respect thereto; specifying 26 who should carry out the review; providing 27 review criteria; providing for a final report 28 and providing requirements for a plan for 29 merger or dissolution of a district under 30 review; providing exemptions; requiring 31 districts to submit a draft codified charter so 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 that their special acts may be codified by the 2 Legislature; amending s. 196.012, F.S.; 3 revising provisions which specify when a 4 governmental, municipal, or public purpose is 5 deemed to be served by a lessee of government 6 property for ad valorem tax exemption purposes; 7 amending s. 196.199, F.S.; providing that all 8 nonalienated or reversionary interests in 9 property owned by a local government which is 10 subject to a leasehold or other possessory 11 interest of a nongovernmental lessee shall be 12 deemed to be used for a governmental, 13 municipal, or public purpose or function; 14 providing effective dates. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Paragraph (a) of subsection (3) of section 19 11.45, Florida Statutes, 1996 Supplement, is amended to read: 20 11.45 Definitions; duties; audits; reports.-- 21 (3)(a)1. The Auditor General shall annually make 22 financial audits of the accounts and records of all state 23 agencies, as defined in this section, of all district school 24 boards, and of all district boards of trustees of community 25 colleges. This section does not limit the Auditor General's 26 discretionary authority to conduct performance audits of these 27 governmental entities as authorized in subparagraph 2. A 28 district school board may select an independent auditor to 29 perform a financial audit as defined in paragraph (1)(b) 30 notwithstanding the notification provisions of this section. 31 In addition, a district school board may employ an internal 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 auditor to perform ongoing financial verification of the 2 financial records of a school district who must report 3 directly to the district school board or its designee. 4 2. The Auditor General may at any time make financial 5 audits and performance audits of the accounts and records of 6 all governmental entities created pursuant to law. The audits 7 referred to in this subparagraph must be made whenever 8 determined by the Auditor General, whenever directed by the 9 Legislative Auditing Committee, or whenever otherwise required 10 by law or concurrent resolution. A district school board, 11 expressway authority, or bridge authority may require that the 12 annual financial audit of its accounts and records be 13 completed within 12 months after the end of its fiscal year. 14 If the Auditor General is unable to meet that requirement, the 15 Auditor General shall notify the school board, the expressway 16 authority, or the bridge authority pursuant to subparagraph 4. 17 3. The Office of Program Policy Analysis and 18 Government Accountability within the Office of the Auditor 19 General shall maintain a schedule of performance audits of 20 state programs. In conducting a performance audit of a state 21 program, the Office of Program Policy Analysis and Government 22 Accountability, when appropriate, shall identify and comment 23 upon alternatives for accomplishing the goals of the program 24 being audited. Such alternatives may include funding 25 techniques and, if appropriate, must describe how other states 26 or governmental units accomplish similar goals. 27 4. If by July 1 in any fiscal year a district school 28 board or local governmental entity has not been notified that 29 a financial audit for that fiscal year will be performed by 30 the Auditor General pursuant to subparagraph 2., each 31 municipality with either revenues or expenditures of more than 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 $100,000, each special district with either revenues or 2 expenditures of more than $50,000, and each county agency 3 shall, and each district school board may, require that an 4 annual financial audit of its accounts and records be 5 completed, within 12 months after the end of its respective 6 fiscal year, by an independent certified public accountant 7 retained by it and paid from its public funds. An independent 8 certified public accountant who is selected to perform an 9 annual financial audit of a school district must report 10 directly to the district school board or its designee. A 11 management letter must be prepared and included as a part of 12 each financial audit report. Each local government finance 13 commission, board, or council, and each municipal power 14 corporation, created as a separate legal or administrative 15 entity by interlocal agreement under s. 163.01(7), shall 16 provide the Auditor General, within 12 months after the end of 17 its fiscal year, with an annual financial audit report of its 18 accounts and records and a written statement or explanation or 19 rebuttal concerning the auditor's comments, including 20 corrective action to be taken. The county audit shall be one 21 document that includes a separate audit of each county agency. 22 The county audit must include an audit of the deposits into 23 and expenditures from the Public Records Modernization Trust 24 Fund. The Auditor General shall tabulate the results of the 25 audits of the Public Records Modernization Trust Fund and 26 report a summary of the audits to the Legislature annually. 27 5. The governing body of a municipality or a special 28 district must establish an auditor selection committee and 29 competitive auditor selection procedures. The governing board 30 may elect to use its own competitive auditor selection 31 procedures or the procedures outlined in subparagraph 6. 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 6. The governing body of a noncharter county or 2 district school board that elects to use a certified public 3 accountant other than the Auditor General is responsible for 4 selecting an independent certified public accountant to audit 5 the county agencies of the county or district school board 6 according to the following procedure: 7 a. For each noncharter county, an auditor selection 8 committee must be established, consisting of the county 9 officers elected pursuant to s. 1(d), Art. VIII of the State 10 Constitution, and one member of the board of county 11 commissioners or its designee. 12 b. The committee shall publicly announce, in a uniform 13 and consistent manner, each occasion when auditing services 14 are required to be purchased. Public notice must include a 15 general description of the audit and must indicate how 16 interested certified public accountants can apply for 17 consideration. 18 c. The committee shall encourage firms engaged in the 19 lawful practice of public accounting who desire to provide 20 professional services to submit annually a statement of 21 qualifications and performance data. 22 d. Any certified public accountant desiring to provide 23 auditing services must first be qualified pursuant to law. The 24 committee shall make a finding that the firm or individual to 25 be employed is fully qualified to render the required 26 services. Among the factors to be considered in making this 27 finding are the capabilities, adequacy of personnel, past 28 record, and experience of the firm or individual. 29 e. The committee shall adopt procedures for the 30 evaluation of professional services, including, but not 31 limited to, capabilities, adequacy of personnel, past record, 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 experience, results of recent external quality control 2 reviews, and such other factors as may be determined by the 3 committee to be applicable to its particular requirements. 4 f. The public must not be excluded from the 5 proceedings under this subparagraph. 6 g. The committee shall evaluate current statements of 7 qualifications and performance data on file with the 8 committee, together with those that may be submitted by other 9 firms regarding the proposed audit, and shall conduct 10 discussions with, and may require public presentations by, no 11 fewer than three firms regarding their qualifications, 12 approach to the audit, and ability to furnish the required 13 services. 14 h. The committee shall select no fewer than three 15 firms deemed to be the most highly qualified to perform the 16 required services after considering such factors as the 17 ability of professional personnel; past performance; 18 willingness to meet time requirements; location; recent, 19 current, and projected workloads of the firms; and the volume 20 of work previously awarded to the firm by the agency, with the 21 object of effecting an equitable distribution of contracts 22 among qualified firms, provided such distribution does not 23 violate the principle of selection of the most highly 24 qualified firms. If fewer than three firms desire to perform 25 the services, the committee shall recommend such firms as it 26 determines to be qualified. 27 i. If the governing board receives more than one 28 proposal for the same engagement, the board may rank, in order 29 of preference, the firms to perform the engagement. The firm 30 ranked first may then negotiate a contract with the board 31 giving, among other things, a basis of its fee for that 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 engagement. If the board is unable to negotiate a 2 satisfactory contract with that firm, negotiations with that 3 firm shall be formally terminated, and the board shall then 4 undertake negotiations with the second-ranked firm. Failing 5 accord with the second-ranked firm, negotiations shall then be 6 terminated with that firm and undertaken with the third-ranked 7 firm. Negotiations with the other ranked firms shall be 8 undertaken in the same manner. The board, in negotiating with 9 firms, may reopen formal negotiations with any one of the 10 three top-ranked firms, but it may not negotiate with more 11 than one firm at a time. The board shall also negotiate on the 12 scope and quality of services. In making such determination, 13 the board shall conduct a detailed analysis of the cost of the 14 professional services required in addition to considering 15 their scope and complexity. For contracts over $50,000, the 16 board shall require the firm receiving the award to execute a 17 truth-in-negotiation certificate stating that the rates of 18 compensation and other factual unit costs supporting the 19 compensation are accurate, complete, and current at the time 20 of contracting. Such certificate shall also contain a 21 description and disclosure of any understanding that places a 22 limit on current or future years' audit contract fees, 23 including any arrangements under which fixed limits on fees 24 will not be subject to reconsideration if unexpected 25 accounting or auditing issues are encountered. Such 26 certificate shall also contain a description of any services 27 rendered by the certified public accountant or firm of 28 certified public accountants at rates or terms that are not 29 customary. Any auditing service contract under which such a 30 certificate is required must contain a provision that the 31 original contract price and any additions thereto shall be 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 adjusted to exclude any significant sums by which the board 2 determines the contract price was increased due to inaccurate 3 or incomplete factual unit costs. All such contract 4 adjustments shall be made within 1 year following the end of 5 the contract. 6 j. If the board is unable to negotiate a satisfactory 7 contract with any of the selected firms, the committee shall 8 select additional firms, and the board shall continue 9 negotiations in accordance with this subsection until an 10 agreement is reached. 11 7. At the conclusion of the audit field work, the 12 independent certified public accountant shall discuss with the 13 head of each local governmental entity or the chair's designee 14 or with the chair of the district school board or the chair's 15 designee, as appropriate, all of the auditor's comments that 16 will be included in the audit report. If the officer is not 17 available to discuss the auditor's comments, their discussion 18 is presumed when the comments are delivered in writing to his 19 or her office. The auditor shall notify each member of the 20 governing body of a local governmental entity for which 21 deteriorating financial conditions exist which may cause a 22 condition described in s. 218.503(1) to occur if actions are 23 not taken to address such conditions. 24 8. The officer's written statement of explanation or 25 rebuttal concerning the auditor's comments, including 26 corrective action to be taken, must be filed with the 27 governing body of the local governmental entity or district 28 school board within 30 days after the delivery of the 29 financial audit report. 30 9. The Auditor General, in consultation with the Board 31 of Accountancy, shall adopt rules for the form and conduct of 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 all local governmental entity audits. The rules must include, 2 but are not limited to, requirements for the reporting of 3 information necessary to carry out the purposes of the Local 4 Government Financial Emergencies Act as stated in s. 218.501. 5 10. Any local governmental entity or district school 6 board financial audit report required under subparagraph 4. 7 and the officer's written statement of explanation or rebuttal 8 concerning the auditor's comments, including corrective action 9 to be taken, must be submitted to the Auditor General within 10 45 days after delivery of the audit report to the local 11 governmental entity or district school board but no later than 12 12 months after the end of the fiscal year. If the Auditor 13 General does not receive the financial audit report within the 14 prescribed period, he or she must notify the Legislative 15 Auditing Committee that the governmental entity has not 16 complied with this subparagraph. Following notification of 17 failure to submit the required audit report or items required 18 by rule adopted by the Auditor General, a hearing must be 19 scheduled by rule of the committee. After the hearing, the 20 committee shall determine which local governmental entities 21 will be subjected to further state action. If it finds that 22 one or more local governmental entities should be subjected to 23 further state action, the committee shall: 24 a. In the case of a local governmental entity, request 25 the Department of Revenue and the Department of Banking and 26 Finance to withhold any funds payable to such governmental 27 entity until the required financial audit is received by the 28 Auditor General. 29 b. In the case of a special district, notify the 30 Department of Community Affairs that the special district has 31 failed to provide the required audits. Upon receipt of 11 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 notification, the Department of Community Affairs shall 2 proceed pursuant to ss. 189.421 and 189.422. 3 11.a. The Auditor General, in consultation with the 4 Board of Accountancy, shall review all audit reports submitted 5 by local governmental entities pursuant to subparagraph 9. The 6 Auditor General shall request any significant items that were 7 omitted in violation of a rule adopted by the Auditor General. 8 The items must be provided within 45 days after the date of 9 the request. If the Auditor General does not receive the 10 requested items, he shall notify the Joint Legislative 11 Auditing Committee. 12 b. The Auditor General shall notify the Governor and 13 the Joint Legislative Auditing Committee of any audit report 14 reviewed by the Auditor General which contains a statement 15 that the local governmental entity is in a state of financial 16 emergency as provided in s. 218.503. If the Auditor General, 17 in reviewing any audit report, identifies additional 18 information which indicates that the local governmental entity 19 may be in a state of financial emergency as provided in s. 20 218.503, the Auditor General shall request appropriate 21 clarification from the local governmental entity. The 22 requested clarification must be provided within 45 days after 23 the date of the request. If the Auditor General does not 24 receive the requested clarification, he or she shall notify 25 the Joint Legislative Auditing Committee. If, after obtaining 26 the requested clarification, the Auditor General determines 27 that the local governmental entity is in a state of financial 28 emergency as provided in s. 218.503, he or she shall notify 29 the Governor and the Joint Legislative Auditing Committee. 30 31 12 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 12. In conducting a performance audit of any agency, 2 the Auditor General shall use the Agency Strategic Plan of the 3 agency in evaluating the performance of the agency. 4 Section 2. Subsection (4) of section 125.901, Florida 5 Statutes, is amended to read: 6 125.901 Children's services; independent special 7 district; council; powers, duties, and functions.-- 8 (4) Any district created pursuant to the provisions of 9 this section may be dissolved by a special act of the 10 Legislature, or the county governing body may by ordinance 11 dissolve the district subject to the approval of the 12 electorate. If any district is dissolved pursuant to the 13 provisions of this subsection, each county shall first 14 obligate itself to assume the debts, liabilities, contracts, 15 and outstanding obligations of the district within the total 16 millage available to the county governing body for all county 17 and municipal purposes as provided for under s. 9, Art. VII of 18 the State Constitution. Any district may also be dissolved 19 pursuant to the provisions of s. 189.4042 189.4043 or s. 20 189.4044. 21 Section 3. Section 165.041, Florida Statutes, 1996 22 Supplement, is amended to read: 23 165.041 Incorporation; merger.-- 24 (1)(a) A charter for incorporation of a municipality, 25 except in case of a merger which is adopted as otherwise 26 provided in subsections (2) and, (3), and (4), shall be 27 adopted only by a special act of the Legislature upon 28 determination that the standards herein provided have been 29 met. 30 (b) To inform the Legislature on the feasibility of a 31 proposed incorporation of a municipality, a feasibility study 13 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 shall be completed and submitted to the Legislature in 2 conjunction with a proposed special act for the enactment of 3 the municipal charter. Such feasibility study shall contain 4 the following: 5 1. Data and analysis to support the conclusions that 6 incorporation is necessary and financially feasible, including 7 population projections and population density calculations, 8 and an explanation concerning methodologies used for such 9 analysis. 10 2. Evaluation of the alternatives available to the 11 area to address its policy concerns. 12 3. Evidence that the proposed municipality meets the 13 requirements for incorporation pursuant to s. 165.061. 14 (c) In counties that have adopted a municipal overlay 15 for municipal incorporation pursuant to s. 163.3217, such 16 information shall be submitted to the Legislature in 17 conjunction with any proposed municipal incorporation in the 18 county. This information should be used to evaluate the 19 feasibility of a proposed municipal incorporation in the 20 geographic area. 21 (2)(a) A charter for merger of two or more 22 municipalities and associated unincorporated areas may also be 23 adopted by passage of a concurrent ordinance by the governing 24 bodies of each municipality affected, approved by a vote of 25 the qualified voters in each area affected. 26 (b) The ordinance shall provide for: 27 1. The charter and its effective date. 28 2. The financial or other adjustments required. 29 3. A referendum for separate majorities by each unit 30 or area to be affected. 31 14 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 4. The date of election, which should be the next 2 regularly scheduled election or a special election held prior 3 to such election, if approved by a majority of the members of 4 the governing body of each governmental unit affected, but no 5 sooner than 30 days after passage of the ordinance. 6 (c) Notice of the election shall be published at least 7 once each week for 2 consecutive weeks immediately prior to 8 the election, in a newspaper of general circulation in the 9 area to be affected. Such notice shall give the time and 10 places for the election and a general description of the area 11 to be included in the municipality, which shall be in the form 12 of a map to show clearly the area to be covered by the 13 municipality. 14 (3) The merger of one or more municipalities or 15 counties with special districts, or of two or more special 16 districts, may also be adopted by passage of a concurrent 17 ordinance or, in the case of special districts, resolution by 18 the governing bodies of each unit to be affected. 19 (3)(4)(a) Initiation of procedures for municipal 20 incorporation by merger as described in subsection subsections 21 (2) and (3) may be done either by adoption of a resolution by 22 the governing body of an area to be affected or by a petition 23 of 10 percent of the qualified voters in the area. 24 (b) If a petition has been filed with the clerks of 25 the governing bodies concerned, the governing bodies shall 26 immediately undertake a study of the feasibility of the 27 formation proposal and shall, within 6 months, either adopt an 28 ordinance under subsection (2) or subsection (3) or reject the 29 petition, specifically stating the facts upon which the 30 rejection is based. 31 15 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (c) The purpose of this subsection is to provide broad 2 citizen involvement in both initiating and developing their 3 local government; therefore, establishment of appropriate 4 citizen advisory committees, as well as other mechanisms for 5 citizen involvement, by the governing bodies of the units 6 affected is specifically authorized and encouraged. 7 Section 4. (1) Subsections (1) and (2) of section 8 189.403, Florida Statutes, are amended, and subsection (7) is 9 added to said section, to read: 10 189.403 Definitions.--As used in this chapter, the 11 term: 12 (1) "Special district" means a local unit of special 13 purpose, as opposed to general-purpose, government within a 14 limited boundary, created by general law, special act, local 15 ordinance, or by rule of the Governor and Cabinet. The 16 special purpose or purposes of special districts are 17 implemented by specialized functions and related prescribed 18 powers. For the purpose of s. 196.199(1), special districts 19 shall be treated as municipalities. The term does not include 20 a school district, a community college district, a special 21 improvement district created pursuant to s. 285.17, a 22 municipal service taxing or benefit unit as specified in s. 23 125.01, or a board which provides electrical service and which 24 is a political subdivision of a municipality or is part of a 25 municipality. 26 (2) "Dependent special district" means a special 27 district that meets at least one of the following criteria: 28 (a) The membership of its governing body is identical 29 to that of the governing body of a single county or a single 30 municipality. 31 16 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (b) All members of its governing body are appointed by 2 the governing body of a single county or a single 3 municipality. 4 (c) During their unexpired terms, members of the 5 special district's governing body are subject to removal at 6 will by the governing body of a single county or a single 7 municipality. 8 (d) The district has a budget that requires approval 9 through an affirmative vote or can be vetoed by the governing 10 body of a single county or a single municipality. 11 12 This subsection is for purposes of definition only. Nothing 13 in this subsection confers additional authority upon local 14 governments not otherwise authorized by the provisions of the 15 special acts or general acts of local application creating 16 each special district, as amended. 17 (7) "Public facilities" means major capital 18 improvements, including, but not limited to, transportation 19 facilities, sanitary sewer facilities, solid waste facilities, 20 water management and control facilities, potable water 21 facilities, alternative water systems, educational facilities, 22 parks and recreational facilities, health systems and 23 facilities, and, except for spoil disposal by those ports 24 listed in s. 311.09(1), spoil disposal sites for maintenance 25 dredging in waters of the state. 26 (2) The amendment to s. 189.403(1), Florida Statutes, 27 by this section shall take effect upon this act becoming a law 28 and shall apply to the 1995 tax rolls and thereafter. 29 Section 5. Section 189.4031, Florida Statutes, is 30 amended to read: 31 17 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 189.4031 Special districts; requirements; charter 2 requirements.-- 3 (1) All special districts, regardless of the existence 4 of other, more specific provisions of applicable law, shall 5 comply with the creation, dissolution, and reporting 6 requirements set forth in this chapter. For a dependent 7 special district created by special act prior to October 1, 8 1989, nothing herein is intended to confer new power upon the 9 general-purpose local government, nor reduce the powers of the 10 dependent special district, relating to budget development or 11 approval in contradiction to the provisions of the special 12 act. 13 (2) Notwithstanding any general law, special act, or 14 ordinance of a local government to the contrary, any 15 independent special district charter enacted after the 16 effective date of this section shall contain the information 17 required by s. 189.404(3). 18 Section 6. Paragraph (c) of subsection (3) and 19 subsection (4) of section 189.404, Florida Statutes, are 20 amended, and subsection (5) is added to said section, to read: 21 189.404 Legislative intent for the creation of 22 independent special districts; special act prohibitions; model 23 elements and other requirements; general-purpose local 24 government/Governor and Cabinet creation authorizations.-- 25 (3) MINIMUM REQUIREMENTS.--General laws or special 26 acts that create or authorize the creation of independent 27 special districts and are enacted after September 30, 1989, 28 must address and require the following in their charters: 29 (c) The methods for establishing and dissolving the 30 district. 31 18 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (4) LOCAL GOVERNMENT/GOVERNOR AND CABINET CREATION 2 AUTHORIZATIONS.--Except as otherwise authorized by general 3 law, only the Legislature may create independent special 4 districts. 5 (a) A municipality may create an independent special 6 district which shall be established by ordinance in accordance 7 with s. 190.005, or as otherwise authorized in general law. 8 (b) A county may create an independent special 9 district which shall be adopted by a charter in accordance 10 with s. 125.901 or s. 154.331 or chapter 155, or which shall 11 be established by ordinance in accordance with s. 190.005, or 12 as otherwise authorized by general law. 13 (c) The Governor and Cabinet may create an independent 14 special district which shall be established by rule in 15 accordance with s. 190.005, in accordance with s. 374.075, or 16 as otherwise authorized in general law. The Governor and 17 Cabinet may also approve the establishment of a charter for 18 the creation of an independent special district which shall be 19 in accordance with s. 373.1962, or as otherwise authorized in 20 general law. 21 (d)1. Any combination of two or more counties may 22 create a regional special district which shall be established 23 in accordance with s. 950.001, or as otherwise authorized in 24 general law. 25 2. Any combination of two or more counties or 26 municipalities may create a regional special district which 27 shall be established in accordance with s. 373.1962, or as 28 otherwise authorized by general law. 29 3. Any combination of two or more counties, 30 municipalities, or other political subdivisions may create a 31 19 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 regional special district in accordance with s. 163.567, or as 2 otherwise authorized in general law. 3 (5) STATUS STATEMENT.--After October 1, 1997, the 4 charter of any newly created special district shall contain 5 and, as practical, the charter of a preexisting special 6 district shall be amended to contain, a reference to the 7 status of the special district as dependent or independent. 8 When necessary, the status statement shall be amended to 9 conform with the department's determination or declaratory 10 statement regarding the status of the district. 11 Section 7. Section 189.4041, Florida Statutes, is 12 amended to read: 13 189.4041 Dependent special districts created after 14 September 30, 1989.-- 15 (1) A charter for the creation of a dependent special 16 district created after September 30, 1989, shall be adopted 17 only by ordinance of a county or municipal governing body 18 having jurisdiction over the area affected. 19 (2) A county is authorized to create dependent special 20 districts within the boundary lines of the county, subject to 21 the approval of the governing body of the incorporated area 22 affected. 23 (3) A municipality is authorized to create dependent 24 special districts within the boundary lines of the 25 municipality. 26 (4) Dependent special districts created by a county or 27 municipality shall be created by adoption of an ordinance that 28 includes: 29 (a) The purpose, powers, functions, and duties of the 30 district. 31 20 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (b) The geographic boundary limitations of the 2 district. 3 (c) The authority of the district. 4 (d) An explanation of why the district is the best 5 alternative. 6 (e) The membership, organization, compensation, and 7 administrative duties of the governing board. 8 (f) The applicable financial disclosure, noticing, and 9 reporting requirements. 10 (g) The methods for financing the district. 11 (h) A declaration that the creation of the district is 12 consistent with the approved local government comprehensive 13 plans. 14 Section 8. Section 189.4042, Florida Statutes, is 15 amended to read: 16 189.4042 Merger and dissolution procedures.-- 17 (1)(a) The merger or dissolution of dependent one or 18 more municipalities or counties with special districts, may be 19 effectuated by an ordinance of the general-purpose local 20 governmental entity wherein the geographical area of the 21 district or districts is located or the merger of two or more 22 special districts, may be adopted by passage of a concurrent 23 ordinance or, in the case of special districts, resolution by 24 the governing bodies of each unit to be affected. However, a 25 county may not dissolve a special district that is dependent 26 to a municipality or vice versa, or a dependent district 27 created by special act. 28 (2)(a) Initiation of procedures for merger of special 29 districts as described in subsection (1) may be done either by 30 adoption of a resolution by the governing body of an area to 31 21 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 be affected or by a petition of 10 percent of the qualified 2 voters in the area. 3 (b) If a petition has been filed with the governing 4 bodies concerned, the governing bodies shall immediately 5 undertake a study of the feasibility of the merger proposal 6 and shall, within 6 months, either adopt a resolution under 7 subsection (1) or reject the petition, specifically stating 8 the facts upon which the rejection is based. 9 (b)(c) A copy of any ordinance and of any changes to a 10 the proposed charter affecting the status or boundaries of one 11 or more special districts or merger agreement shall be filed 12 with the Special District Information Program within 30 days 13 after the effective date of such activity the merger with the 14 Special District Information Program and each local 15 general-purpose government within which the district is 16 located. 17 (d) The purpose of this subsection is to provide broad 18 citizen involvement in both initiating and developing special 19 districts; therefore, establishment of appropriate citizen 20 advisory committees, as well as other mechanisms for citizen 21 involvement, by the governing bodies of the units affected is 22 specifically authorized and encouraged. 23 (2) The merger or dissolution of an independent 24 special district or a dependent district created and operating 25 pursuant to a special act may only be effectuated by the 26 Legislature unless otherwise provided by general law. If an 27 independent district was created by a county or municipality, 28 the county or municipality that created the district may merge 29 or dissolve the district. 30 (3) The provisions of this section shall not apply to 31 community development districts implemented pursuant to 22 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 chapter 190 or to water management districts created and 2 operated pursuant to chapter 373. 3 Section 9. Section 189.4043, Florida Statutes, is 4 hereby repealed. 5 Section 10. Section 189.4044, Florida Statutes, is 6 amended to read: 7 189.4044 Special dissolution procedures for inactive 8 districts.-- 9 (1) The department Secretary of State by proclamation 10 shall declare inactive any special district in this state by 11 filing upon a report with the Speaker of the House of 12 Representatives and the President of the Senate being filed by 13 the department which shows that such special district is no 14 longer active. The inactive status of the special district 15 must be, based upon a finding: 16 (a) That the special district meets one of the 17 following criteria: has not had appointed or elected a 18 governing body within the 4 years immediately preceding or as 19 otherwise provided by law or has not operated within the 2 20 years immediately preceding; 21 1. The district has taken no action for 2 calendar 22 years; 23 2. The district has not had a governing board or a 24 sufficient number of governing board members to constitute a 25 quorum for 18 or more months; 26 3. The district has failed to file or make a good 27 faith effort to file any of the reports listed in s. 189.419; 28 or 29 4. The district has failed, for 2 consecutive fiscal 30 years, to pay fees assessed by the Special District 31 Information Program pursuant to this chapter. 23 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (b) That a notice of the proposed declaration 2 proclamation has been published once a week for 4 weeks in a 3 newspaper of general circulation within the county or 4 municipality wherein the territory of the special district is 5 located, stating the name of said special district, the law 6 under which it was organized and operating, a general 7 description of the territory included in said special 8 district, and stating that any objections to the proposed 9 declaration proclamation or to any claims against the assets 10 debts of said special district shall be filed not later than 11 60 days following the date of last publication with the 12 department; and 13 (c) That 60 days have elapsed from the last 14 publication date of the notice of proposed declaration 15 proclamation and no sustained objections have been filed. 16 (2) The state agency charged with collecting financial 17 information from special districts shall report to the 18 Department of State and the Department of Community Affairs 19 any special district which has failed to file a report within 20 the time set by law. 21 (2)(3) If any special district is declared inactive 22 pursuant to this section owes any debt at the time of 23 proclamation, the any property or assets of the special 24 district are such unit, or which belonged thereto at the time 25 of such proclamation, shall be subject to legal process for 26 payment of any debts of the district such debt. After the 27 payment of all the debts of said inactive special district, 28 the remainder of its property or assets shall escheat to the 29 county or municipality wherein located. If, however, it shall 30 be necessary, in order to pay any such debt, to levy any tax 31 or taxes on the property in the territory or limits of the 24 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 inactive special district, the same may be assessed and levied 2 by order of the local general-purpose government wherein the 3 same is situated and shall be assessed by the county property 4 appraiser and collected by the county tax collector. 5 (3)(4) The department shall notify the Speaker of the 6 House of Representatives and the President of the Senate of 7 each Any special act creating or amending the charter of any 8 special district declared to be proclaimed inactive under this 9 section hereunder shall be reported by the Governor to the 10 presiding officers of both houses of the Legislature. The 11 declaration proclamation of inactive status shall be 12 sufficient notice as required by s. 10, Art. III of the State 13 Constitution to authorize the Legislature to repeal any 14 special laws so reported. 15 (4) A special district declared inactive under this 16 section must be dissolved by repeal of its enabling laws. 17 Section 11. Subsections (1) and (2) of section 18 189.4045, Florida Statutes, are amended to read: 19 189.4045 Financial allocations.-- 20 (1) The government formed by merger of existing 21 special districts shall assume all indebtedness of, and 22 receive title to all property owned by, the preexisting 23 special districts. The proposed charter or merger agreement 24 shall provide for the determination of the proper allocation 25 of the indebtedness so assumed and the manner in which said 26 debt shall be retired. 27 (2) Unless otherwise provided by law or ordinance, the 28 dissolution of a special district government shall transfer 29 the title to all property owned by the preexisting special 30 district government to the local general-purpose government, 31 which shall also assume all indebtedness of the preexisting 25 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 special district, unless otherwise provided in the dissolution 2 plan. 3 Section 12. Effective January 1, 1998, subsections 4 (2), (3), and (4) of section 189.405, Florida Statutes, are 5 amended to read: 6 189.405 Elections; general requirements and 7 procedures.-- 8 (2)(a) Any independent special district located 9 entirely in a single county may provide for the conduct of 10 district elections by the supervisor of elections for that 11 county. Any independent special district that conducts its 12 elections through the office of the supervisor shall make 13 election procedures consistent with the Florida Election Code. 14 , chapters 97 through 106, for the following: 15 1. Qualifying periods, in accordance with s. 99.061; 16 2. Petition format, in accordance with rules adopted 17 by the Division of Elections; 18 3. Canvassing of returns, in accordance with ss. 19 101.5614 and 102.151; 20 4. Noticing special district elections, in accordance 21 with chapter 100; and 22 5. Polling hours, in accordance with s. 100.011. 23 (b) Any independent special district not conducting 24 district elections through the supervisor of elections shall 25 report to the supervisor in a timely manner the purpose, date, 26 authorization, procedures, and results of each election 27 conducted by the district. 28 (c) A candidate for a position on a governing board of 29 a single-county special district that has its elections 30 conducted by the supervisor of elections shall qualify for the 31 office with the county supervisor of elections in whose 26 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 jurisdiction the district is located. Elections for governing 2 board members elected by registered electors shall be 3 nonpartisan, except when partisan elections are specified by a 4 district's charter. Candidates may qualify by paying a filing 5 fee of $25 or by submitting a petition that contains the 6 signatures of at least 3 percent of the district's registered 7 electors. No election or party assessment shall be levied if 8 the election is nonpartisan. The qualifying fee shall be 9 remitted to the general revenue fund of the qualifying officer 10 to help defray the cost of the election. The petition form 11 shall be submitted and checked in the same manner as those for 12 nonpartisan judicial candidates pursuant to s. 105.035. 13 (3)(a) If a multicounty special district has a 14 popularly elected governing board, elections for the purpose 15 of electing members to such board shall conform to the Florida 16 Election Code, chapters 97 through 106. 17 (b) With the exception of those districts conducting 18 elections on a one-acre/one-vote basis, qualifying for 19 multicounty special district governing board positions shall 20 be coordinated by the Department of State supervisors of 21 elections for each of the counties within the district. 22 Elections for governing board members elected by registered 23 electors shall be nonpartisan, except when partisan elections 24 are specified by a district's charter. Candidates may qualify 25 by paying a filing fee of $25 or by submitting a petition that 26 contains the signatures of at least 3 percent of the 27 district's registered electors. No election or party 28 assessment shall be levied if the election is nonpartisan. 29 The qualifying fee shall be remitted to the Department of 30 State. The petition form shall be submitted and checked in 31 27 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 the same manner as those for nonpartisan judicial candidates 2 pursuant to s. 105.035. 3 (4) With the exception of elections of special 4 district governing board members conducted on a 5 one-acre/one-vote basis, in any election conducted in a 6 special district the decision made by a majority of those 7 voting shall prevail, except as otherwise specified by law. 8 Section 13. Section 189.4051, Florida Statutes, is 9 amended to read: 10 189.4051 Elections; special requirements and 11 procedures for districts with governing boards elected on a 12 one-acre/one-vote basis.-- 13 (1) ELECTION PROVISIONS FOR SPECIAL DISTRICTS WITH 14 GOVERNING BOARDS ELECTED ON A ONE-ACRE/ONE-VOTE BASIS.-- 15 (a) With the exception of those districts established 16 as single-purpose water control districts, and which continue 17 to act as single-purpose water control districts, pursuant to 18 chapter 298, pursuant to a special act, pursuant to a local 19 government ordinance, or pursuant to a judicial decree, if a 20 special district has a governing board elected on the basis of 21 one vote for each acre of land owned and: 22 1. Has a total resident population of more than 2,500 23 according to the latest census or population estimate; 24 2. Has more than 2,000 registered voters; and 25 3. Submits a petition signed by more than 70 percent 26 of the registered voters requesting conversion from a 27 one-acre/one-vote to a one-person/one-vote election principle 28 to the supervisor of elections in the county in which all or 29 most of the area of the district land is located, 30 31 28 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 it may proceed in accordance with the provisions of subsection 2 (3) at any time following the effective date of this act. 3 (b) With the exception of those districts established 4 as single-purpose water control districts, and which continue 5 to act as single-purpose water control districts, pursuant to 6 chapter 298, pursuant to a special act, pursuant to a local 7 government ordinance, or pursuant to a judicial decree, the 8 governing board of any special district where the board is 9 elected on a one-acre/one-vote basis may request the local 10 legislative delegation which represents the area within the 11 district to modify the district charter by special act to 12 provide for a more equitable basis of election for governing 13 board members than the present election procedure. If such 14 request is enacted into law during the 1989 or 1990 Regular 15 Session of the Florida Legislature, such law shall be the 16 election charter for election of governing board members 17 within said district and shall exempt said district from the 18 election provisions of this section. 19 (1)(2) DEFINITIONS.--As used in this section, the 20 term: 21 (a) "Qualified elector" means any person at least 18 22 years of age who is a citizen of the United States, a 23 permanent resident of Florida, and a freeholder or 24 freeholder's spouse and resident of the district who registers 25 with the supervisor of elections of a the county within which 26 the district lands are located when the registration books are 27 open. 28 (b) "Urban area" means a contiguous developed and 29 inhabited urban area within a district with a minimum average 30 resident population density of at least 1.5 persons per acre 31 as defined by the latest official census, special census, or 29 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 population estimate or a minimum density of one single-family 2 home per 2.5 acres with access to improved roads or a minimum 3 density of one single-family home per 5 acres within a 4 recorded plat subdivision. Urban areas shall be designated by 5 the governing board of the district with the assistance of all 6 local general-purpose governments having jurisdiction over the 7 area within the district. 8 (c) "Governing board member" means any duly elected 9 member of the governing board of a special district elected 10 pursuant to this section, provided that any board member 11 elected by popular vote shall be a qualified district elector 12 and any board member elected on a one-acre/one-vote basis 13 shall meet the requirements of s. 298.11 for election to the 14 board. 15 (d) "Contiguous developed urban area" means any 16 reasonably compact urban area located entirely within a 17 special district. The separation of urban areas by a publicly 18 owned park, right-of-way, highway, road, railroad, canal, 19 utility, body of water, watercourse, or other minor 20 geographical division of a similar nature shall not prevent 21 such areas from being defined as urban areas. 22 (2)(3) POPULAR ELECTIONS; REFERENDUM; DESIGNATION OF 23 URBAN AREAS.-- 24 (a) Referendum.-- 25 1. A referendum shall be called by the governing board 26 of a special district where the board is elected on a 27 one-acre/one-vote basis on the question of whether certain 28 members of a district governing board should be elected by 29 qualified electors, provided each of the following conditions 30 has been is satisfied at least 60 days prior to the general or 31 special election at which the referendum is to be held: 30 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 a. The district shall have a total population, 2 according to the latest official state census, a special 3 census, or a population estimate, of at least 500 qualified 4 electors. 5 b. A petition signed by 10 percent of the qualified 6 electors of the district shall have been be filed with the 7 governing board of the district. The petition shall be 8 submitted to the supervisor of elections of the county or 9 counties in which the lands are located. The supervisor shall, 10 within 30 days after the receipt of the petitions, certify to 11 the governing board the number of signatures of qualified 12 electors contained on the petition. 13 2. Upon verification by the supervisor or supervisors 14 of elections of the county or counties within which district 15 lands are located that 10 percent of the qualified electors of 16 the district have petitioned the governing board, a referendum 17 election shall be called by the governing board at the next 18 regularly scheduled election of governing board members 19 occurring at least 30 days after verification of the petition 20 or within 6 months of verification, whichever is earlier. 21 3. If the qualified electors approve the election 22 procedure described in this subsection, the governing board of 23 the district shall be increased to five members and elections 24 shall be held pursuant to the criteria described in this 25 subsection beginning with the next regularly scheduled 26 election of governing board members or at a special election 27 called within 6 months following the referendum and final 28 unappealed approval of district urban area maps as provided in 29 paragraph (b), whichever is earlier. 30 4. If the qualified electors of the district 31 disapprove the election procedure described in this 31 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 subsection, elections of the members of the governing board 2 shall continue as described by s. 298.12 or the enabling 3 legislation for the district. No further referendum on the 4 question shall be held for a minimum period of 2 years 5 following the referendum. 6 (b) Designation of urban areas.-- 7 1. Within 30 days after approval of the election 8 process described in this subsection by qualified electors of 9 the district, the governing board shall direct the district 10 staff engineer to prepare and present maps of the district 11 describing the extent and location of all urban areas within 12 the district. Such determination shall be based upon the 13 criteria contained within paragraph (1)(2)(b). 14 2. Within 60 days after approval of the election 15 process described in this subsection by qualified electors of 16 the district, the maps describing urban areas within the 17 district shall be presented to the governing board. 18 3. Any district landowner or elector may contest the 19 accuracy of the urban area maps prepared by the district staff 20 engineer within 30 days after submission to the governing 21 board. Upon notice of objection to the maps, the governing 22 board shall request the county engineer to prepare and present 23 maps of the district describing the extent and location of all 24 urban areas within the district. Such determination shall be 25 based upon the criteria contained within paragraph (1)(2)(b). 26 Within 30 days after the governing board request, the county 27 engineer shall present the maps to the governing board. 28 4. Upon presentation of the maps by the county 29 engineer, the governing board shall compare the maps submitted 30 by both the district staff engineer and the county engineer 31 and make a determination as to which set of maps to adopt. 32 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 Within 60 days after presentation of all such maps, the 2 governing board may amend and shall adopt the official maps at 3 a regularly scheduled board meeting. 4 5. Any district landowner or qualified elector may 5 contest the accuracy of the urban area maps adopted by the 6 board within 30 days after adoption by petition to the circuit 7 court with jurisdiction over the district. Accuracy shall be 8 determined pursuant to paragraph (1)(2)(b). Any petitions 9 petition so filed shall be heard expeditiously disposed of by 10 summary proceeding of the court, and the maps shall either be 11 approved or approved with necessary amendments to render the 12 maps accurate and shall be certified to the board with 13 amendments, if necessary. 14 6. Upon adoption by the board or certification by the 15 court, the district urban area maps shall serve as the 16 official maps for determination of the extent of urban area 17 within the district and the number of governing board members 18 to be elected by qualified electors and by the 19 one-acre/one-vote principle at the next regularly scheduled 20 election of governing board members. 21 7. Upon a determination of the percentage of urban 22 area within the district as compared with total area within 23 the district, the governing board shall order elections in 24 accordance with the changed percentages pursuant to paragraph 25 (3)(4)(a). The landowners' meeting date shall be designated by 26 the governing board. 27 8. The maps shall be updated and readopted every 5 28 years or sooner in the discretion of the governing board. 29 (3)(4) GOVERNING BOARD.-- 30 (a) Composition of board.-- 31 33 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 1. Members of the governing board of the district 2 shall be elected in accordance with the following 3 determinations of urban area: 4 a. If urban areas constitute 25 percent or less of the 5 district, one governing board member shall be elected by the 6 qualified electors and four governing board members shall be 7 elected in accordance with the one-acre/one-vote principle 8 contained within s. 298.11 or the district-enabling 9 legislation. 10 b. If urban areas constitute 26 percent to 50 percent 11 of the district, two governing board members shall be elected 12 by the qualified electors and three governing board members 13 shall be elected in accordance with the one-acre/one-vote 14 principle contained within s. 298.11 or the district-enabling 15 legislation. 16 c. If urban areas constitute 51 percent to 70 percent 17 of the district, three governing board members shall be 18 elected by the qualified electors and two governing board 19 members shall be elected in accordance with the 20 one-acre/one-vote principle contained within s. 298.11 or the 21 district-enabling legislation. 22 d. If urban areas constitute 71 percent to 90 percent 23 of the district, four governing board members shall be elected 24 by the qualified electors and one governing board member shall 25 be elected in accordance with the one-acre/one-vote principle 26 contained within s. 298.11 or the district-enabling 27 legislation. 28 e. If urban areas constitute 91 percent or more of the 29 district, all governing board members shall be elected by the 30 qualified electors. 31 34 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 2. All governing board members elected by qualified 2 electors shall be elected at large. 3 (b) Term of office.--All governing board members 4 elected by qualified electors shall have a term of 4 years 5 except for governing board members elected at the first 6 election and the first landowners' meeting following the 7 referendum prescribed in paragraph (2)(3)(a). Governing board 8 members elected at the first election and the first 9 landowners' meeting following the referendum shall serve as 10 follows: 11 1. If one governing board member is elected by the 12 qualified electors and four are elected on a one-acre/one-vote 13 basis, the governing board member elected by the qualified 14 electors shall be elected for a period of 4 years. Governing 15 board members elected on a one-acre/one-vote basis shall be 16 elected for periods of 1, 2, 3, and 4 years, respectively, as 17 prescribed by ss. 298.11 and 298.12. 18 2. If two governing board members are elected by the 19 qualified electors and three are elected on a 20 one-acre/one-vote basis, the governing board members elected 21 by the electors shall be elected for a period of 4 years. 22 Governing board members elected on a one-acre/one-vote basis 23 shall be elected for periods of 1, 2, and 3 years, 24 respectively, as prescribed by ss. 298.11 and 298.12. 25 3. If three governing board members are elected by the 26 qualified electors and two are elected on a one-acre/one-vote 27 basis, two of the governing board members elected by the 28 electors shall be elected for a term of 4 years and the other 29 governing board member elected by the electors shall be 30 elected for a term of 2 years. Governing board members 31 elected on a one-acre/one-vote basis shall be elected for 35 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 terms of 1 and 2 years, respectively, as prescribed by ss. 2 298.11 and 298.12. 3 4. If four governing board members are elected by the 4 qualified electors and one is elected on a one-acre/one-vote 5 basis, two of the governing board members elected by the 6 electors shall be elected for a term of 2 years and the other 7 two for a term of 4 years. The governing board member elected 8 on a one-acre/one-vote basis shall be elected for a term of 1 9 year as prescribed by ss. 298.11 and 298.12. 10 5. If five governing board members are elected by the 11 qualified electors, three shall be elected for a term of 4 12 years and two for a term of 2 years. 13 6. If any vacancy occurs in a seat occupied by a 14 governing board member elected by the qualified electors, the 15 remaining members of the governing board shall, within 45 days 16 after the vacancy occurs of receipt of a resignation, appoint 17 a person who would be eligible to hold the office to the 18 unexpired term of the resigning member. 19 (c) Landowners' meetings.-- 20 1. An annual landowners' meeting shall be held 21 pursuant to s. 298.11 and at least one governing board member 22 shall be elected on a one-acre/one-vote basis pursuant to s. 23 298.12 for so long as 10 percent or more of the district is 24 not contained in an urban area. In the event all district 25 governing board members are elected by qualified electors, 26 there shall be no further landowners' meetings. 27 2. At any landowners' meeting called pursuant to this 28 section, 50 percent of the district acreage shall not be 29 required to constitute a quorum and each governing board 30 member shall be elected by a majority of the acreage 31 36 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 represented either by owner or proxy present and voting at 2 said meeting. 3 3. All landowners' meetings of districts operating 4 pursuant to this section shall be set by the board within the 5 month preceding the month of the election of the governing 6 board members by the electors. 7 4. Vacancies on the board shall be filled pursuant to 8 s. 298.12 except as otherwise provided in subparagraph (b)6. 9 (4)(5) QUALIFICATIONS.--Elections for governing board 10 members elected by qualified electors shall be nonpartisan. 11 Qualifications shall be pursuant to the Florida Election Code 12 and shall occur during the qualifying period established by s. 13 99.061. Qualification requirements shall only apply to those 14 governing board member candidates elected by qualified 15 electors. Following the first election pursuant to this 16 section, elections to the governing board by qualified 17 electors shall occur at the next regularly scheduled election 18 closest in time to the expiration date of the term of the 19 elected governing board member. If the next regularly 20 scheduled election is beyond the normal expiration time for 21 the term of an elected governing board member, the governing 22 board member shall hold office until the election of a 23 successor. 24 (5)(6) Those districts established as single-purpose 25 water control districts, and which continue to act as 26 single-purpose water control districts, pursuant to chapter 27 298, pursuant to a special act, pursuant to a local government 28 ordinance, or pursuant to a judicial decree, shall be exempt 29 from the provisions of this section. All other independent 30 special districts with governing boards elected on a 31 37 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 one-acre/one-vote basis shall be subject to the provisions of 2 this section. 3 (6)(7) The provisions of this section shall not apply 4 to community development districts established pursuant to 5 chapter 190. 6 Section 14. Section 189.412, Florida Statutes, 1996 7 Supplement, as amended by section 12 of chapter 96-324, Laws 8 of Florida, is amended to read: 9 189.412 Special District Information Program; duties 10 and responsibilities.--The Special District Information 11 Program of the Department of Community Affairs is created and 12 has the following special duties: 13 (1) The collection and maintenance of special district 14 compliance status reports from the Auditor General, the 15 Department of Banking and Finance, the Division of Bond 16 Finance of the State Board of Administration, the Division of 17 Retirement, the Division of Ad Valorem Tax of the Department 18 of Revenue, and the Commission on Ethics for the reporting 19 required in ss. 11.45, 112.3144, 112.3145, 112.3148, 112.3149, 20 112.63, 200.068, 218.32, 218.34, and 218.38, and 280.17 and 21 chapter 121 and from state agencies administering programs 22 that distribute money to special districts. The special 23 district compliance status reports must consist of a list of 24 special districts used in that state agency and a list of 25 information indicating which special districts did not comply 26 with the reporting statutorily required by that agency. 27 (2) The maintenance of a master list of independent 28 and dependent special districts which shall be annually 29 updated and distributed to the appropriate officials in state 30 and local governments. 31 38 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (3) The organization and sponsorship of a biennial 2 conference, which may include, but need not be limited to, any 3 of the following purposes: 4 (a) Explaining special district reporting requirements 5 prescribed by general law. 6 (b) Describing general statutory provisions that 7 affect special districts in the state. 8 (c) Conducting training sessions in budget 9 preparation, bond issuance, and other financial matters. 10 (d) Examining all aspects of special district 11 reporting requirements in order to develop more efficient 12 submission and use of the reports. 13 (3)(4) The publishing and updating of a "Florida 14 Special District Handbook" that contains, at a minimum: 15 (a) A section that specifies definitions of special 16 districts and status distinctions in the statutes. 17 (b) A section or sections that specify current 18 statutory provisions for special district creation, 19 implementation, modification, dissolution, and operating 20 procedures. 21 (c) A section that summarizes the reporting 22 requirements applicable to all types of special districts as 23 provided in ss. 189.417 and 189.418. 24 (4)(5) When feasible, securing and maintaining access 25 to special district information collected by all state 26 agencies in existing or newly created state computer systems. 27 (5)(6) The facilitation of coordination and 28 communication among state agencies regarding special district 29 information. 30 (6)(7) The conduct of studies relevant to special 31 districts. 39 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (7)(8) The provision of assistance related to and 2 appropriate in the performance of requirements specified in 3 this chapter. 4 Section 15. Subsections (2) and (5) of section 5 189.415, Florida Statutes, are amended to read: 6 189.415 Special district public facilities report.-- 7 (2) Beginning March 1, 1991, Each independent special 8 district shall submit annually to each local general-purpose 9 government in which it is located a public facilities report 10 and an annual notice of any changes. The public facilities 11 report shall specify the following information: 12 (a) A description of existing public facilities owned 13 or and operated by the special district, and each public 14 facility that is operated by another entity, except a local 15 general purpose government, through a lease or other agreement 16 with the special district. This description shall include the 17 current capacity of the facility, the current demands placed 18 upon it, and its location. This information shall be required 19 in the initial report and updated every 5 years at least 12 20 months prior to the submission date of the evaluation and 21 appraisal report of the appropriate local government required 22 by s. 163.3191. At least 12 months prior to the date on which 23 each special district's first updated report is due, the 24 department shall notify each independent district on the 25 official list of special districts compiled by the department 26 pursuant to s. 189.4035 of the schedule for submission of the 27 evaluation and appraisal report by each local government 28 within the special district's jurisdiction. 29 (b) A description of each public facility the district 30 is building, improving, or expanding, or is currently 31 proposing to build, improve, or expand within at least the 40 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 next 5 years, including any facilities that the district is 2 assisting another entity, except a local general purpose 3 government, to build, improve, or expand through a lease or 4 other agreement with the district. For each public facility 5 identified, the report shall describe how the district 6 currently proposes to finance the facility. 7 (c) If the special district currently proposes to 8 replace any facilities identified in paragraph (a) or 9 paragraph (b) within the next 10 years, the date when such 10 facility will be replaced. 11 (d) The anticipated time the construction, 12 improvement, or expansion of each facility will be completed. 13 (e) The anticipated capacity of and demands on each 14 public facility when completed. In the case of an improvement 15 or expansion of a public facility, both the existing and 16 anticipated capacity must be listed. 17 (5) For each special district created after March 1, 18 1990, The facilities report shall be prepared and submitted 19 within 1 year after the district's creation. 20 Section 16. Subsections (1) and (3) of section 21 189.4155, Florida Statutes, are amended to read: 22 189.4155 Activities of special districts; local 23 government comprehensive planning.-- 24 (1) Construction or expansion of a public facility, or 25 major alteration which affects the quantity or quality of the 26 level of service of a public facility, which is undertaken or 27 initiated by a special district or through some other entity 28 shall be consistent with the applicable local government 29 comprehensive plan adopted pursuant to part II of chapter 163; 30 provided, however, the local government comprehensive plan 31 shall not: 41 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (a) Require an independent special district to 2 construct, expand, or perform a major alteration of any public 3 facility; or 4 (b) Require any special district to construct, expand, 5 or perform a major alteration of any public facility which 6 would result in an impairment of covenants and agreements 7 relating to bonds validated or issued by the special district. 8 (3) The provisions of this section shall not apply to 9 water management districts created pursuant to s. 373.069, or 10 to regional water supply authorities created pursuant to s. 11 373.1962, to spoil disposal sites owned or used by the Federal 12 Government or by ports listed in s. 403.021(9)(b), or to 13 deepwater ports which comply with s. 189.415(10). 14 Section 17. Subsection (1) of section 189.416, Florida 15 Statutes, is amended to read: 16 189.416 Designation of registered office and agent.-- 17 (1) Within 30 days after the first meeting of its 18 governing board Prior to October 1, 1979, or no later than 1 19 year subsequent to its creation, each special district in the 20 state shall designate a registered office and a registered 21 agent and file such information with the local governing 22 authority or authorities and with the department. The 23 registered agent shall be an agent of the district upon whom 24 any process, notice, or demand required or permitted by law to 25 be served upon the district may be served. A registered agent 26 shall be an individual resident of this state whose business 27 address is identical with the registered office of the 28 district. The registered office may be, but need not be, the 29 same as the place of business of the special district. 30 Section 18. Subsection (1) of section 189.417, Florida 31 Statutes, is amended to read: 42 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 189.417 Meetings; notice; required reports.-- 2 (1) The governing body of each special district shall 3 file quarterly, semiannually, or annually a schedule of its 4 regular meetings with the local governing authority or 5 authorities. The schedule shall include the date, time, and 6 location of each scheduled meeting. The schedule shall be 7 published quarterly, semiannually, or annually in a newspaper 8 of general paid circulation in the manner required in this 9 subsection. The governing body of an independent special 10 district shall advertise the day, time, place, and purpose of 11 any meeting other than a regular meeting or any recessed and 12 reconvened meeting of the governing body, at least 7 days 13 prior to such meeting, in a newspaper of general paid 14 circulation in the county or counties in which the special 15 district is located, unless a bona fide emergency situation 16 exists, in which case a meeting to deal with the emergency may 17 be held as necessary, with reasonable notice, so long as it is 18 subsequently ratified by the board. No approval of the annual 19 budget shall be granted at an emergency meeting. The 20 advertisement shall be placed in that portion of the newspaper 21 where legal notices and classified advertisements appear. It 22 is the legislative intent that, whenever possible, The 23 advertisement shall appear in a newspaper that is published at 24 least 5 days a week, unless the only newspaper in the county 25 is published fewer than 5 days a week. It is further the 26 legislative intent that The newspaper selected must be one of 27 general interest and readership in the community and not one 28 of limited subject matter, pursuant to chapter 50. 29 Section 19. Subsection (3) of section 189.421, Florida 30 Statutes, 1996 Supplement, is amended to read: 31 43 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 189.421 Failure of district to disclose financial 2 reports.-- 3 (3) If the department determines that a good faith 4 effort has not been made to file the report or that a 5 reasonable time has passed since notice was delivered to the 6 district pursuant to s. 189.419(1), and the reports have not 7 been forthcoming, it may file a petition for hearing, pursuant 8 to ss. 120.569 and 120.57, on the question of the inactivity 9 of the district. The proceedings and hearings required by ss. 10 189.416-189.422 shall be conducted by an administrative law 11 judge assigned by the Division of Administrative Hearings of 12 the Department of Management Services and shall be governed by 13 the provisions of the Administrative Procedure Act. Such 14 hearing shall be held in the county in which the district is 15 located, pursuant to all the applicable provisions of chapter 16 120. Notice of the hearing shall be served on the district's 17 registered agent and published at least once a week for 2 18 successive weeks prior to the hearing in a newspaper of 19 general circulation in the area affected. The notice shall 20 state the time, place, and nature of the hearing and that all 21 interested parties may appear and be heard. Within 30 days of 22 the hearing, the administrative law judge shall file a report 23 with the department in the manner provided in chapter 120. 24 Section 20. Section 189.422, Florida Statutes, 1996 25 Supplement, is amended to read: 26 189.422 Action of the department.-- 27 (1) If the department determines, after receipt of the 28 report from the administrative law judge, that there is an 29 inactive district under the criteria established in s. 30 189.4044, it shall notify the Speaker of the House of 31 Representatives and the President of the Senate file such 44 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 determination with the Secretary of State pursuant to s. 2 189.4044. 3 (2) If the department determines that the failure to 4 file the reports is a result of the volitional refusal of the 5 members of the governing body of the district, it shall seek a 6 money judgment against the district in the amount of the 7 assessed fine. When appropriate, the department may also seek 8 an injunction or writ of mandamus to compel production of the 9 reports in the circuit court. 10 Section 21. Section 189.425, Florida Statutes, is 11 amended to read: 12 189.425 Rulemaking authority.--Effective July 1, 1989, 13 The Department of Community Affairs may shall adopt rules to 14 implement the provisions of this chapter. 15 Section 22. Section 189.428, Florida Statutes, is 16 created to read: 17 189.428 Special districts; oversight review process.-- 18 (1) The Legislature finds it to be in the public 19 interest to establish an oversight review process for special 20 districts wherein each special district in the state may be 21 reviewed by the local general purpose government in which the 22 district exists. The Legislature further finds and determines 23 that such law fulfills an important state interest. It is the 24 intent of the Legislature that the oversight review process 25 shall contribute to informed decisionmaking. These decisions 26 may involve the continuing existence or dissolution of a 27 district, the appropriate future role and focus of a district, 28 improvements in the functioning or delivery of services by a 29 district, and the need for any transition, adjustment, or 30 special implementation periods or provisions. Any final 31 recommendations from the oversight review process that are 45 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 adopted and implemented by the appropriate level of government 2 shall not be implemented in a manner that would impair the 3 obligation of contracts. 4 (2) It is the intent of the Legislature that any 5 oversight review process be conducted in conjunction with 6 special district public facilities reporting and the local 7 government evaluation and appraisal report process described 8 in s. 189.415(2). 9 (3) The order in which special districts may be 10 subject to oversight review shall be determined by the 11 reviewer and shall occur as follows: 12 (a) All dependent special districts may be reviewed by 13 the general purpose local government to which they are 14 dependent. 15 (b) All single-county independent special districts 16 may be reviewed by a county or municipality in which they are 17 located or the government that created the district. 18 (c) All multicounty independent special districts may 19 be reviewed by the government that created the district. Any 20 general purpose local governments within the boundaries of a 21 multicounty district may prepare a preliminary review of a 22 multicounty special district for possible reference or 23 inclusion in the full review report. 24 (d) Upon request by the reviewer, any special district 25 within all or a portion of the same county as the special 26 district being reviewed may prepare a preliminary review of 27 the district for possible reference or inclusion in the full 28 oversight review report. 29 (4) All special districts, governmental entities, and 30 state agencies shall cooperate with the Legislature and with 31 any general purpose local government seeking information or 46 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 assistance with the oversight review process and with the 2 preparation of an oversight review report. 3 (5) Those conducting the oversight review process 4 shall, at a minimum, consider the listed criteria for 5 evaluating the special district, but may also consider any 6 additional factors relating to the district and its 7 performance. If any of the listed criteria do not apply to 8 the special district being reviewed, they need not be 9 considered. The criteria to be considered by the reviewer 10 include: 11 (a) The degree to which the service or services 12 offered by the special district are essential or contribute to 13 the well-being of the community. 14 (b) The extent of continuing need for the service or 15 services currently provided by the special district. 16 (c) The extent of municipal annexation or 17 incorporation activity occurring or likely to occur within the 18 boundaries of the special district and its impact on the 19 delivery of services by the special district. 20 (d) Whether there is a less costly alternative method 21 of delivering the service or services that would adequately 22 provide the district residents with the services provided by 23 the district. 24 (e) Whether transfer of the responsibility for 25 delivery of the service or services to an entity other than 26 the special district being reviewed could be accomplished 27 without jeopardizing the district's existing contracts, bonds, 28 or outstanding indebtedness. 29 (f) Whether the Auditor General has determined that 30 the special district is or may be in a state of financial 31 47 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 emergency or has been experiencing financial difficulty during 2 any of the last 3 fiscal years for which data are available. 3 (g) Whether the Auditor General failed to receive an 4 audit report and has made a determination that the special 5 district was required or may have been required to file an 6 audit report during any of the last 3 fiscal years for which 7 the data are available. 8 (h) Whether the district is inactive according to the 9 official list of special districts, and whether the district 10 is meeting and discharging its responsibilities as required by 11 its charter, as well as projected increases or decreases in 12 district activity. 13 (i) Whether the special district has failed to comply 14 with any of the reporting requirements in this chapter, 15 including preparation of the public facilities report. 16 (j) Whether the special district has designated a 17 registered office and agent as required by s. 189.416, and has 18 complied with all open public records and meeting 19 requirements. 20 (6) Any special district may at any time provide the 21 Legislature and the general purpose local government 22 conducting the review or making decisions based upon the final 23 oversight review report with written responses to any 24 questions, concerns, preliminary reports, draft reports, or 25 final reports relating to the district. 26 (7) The final report of a reviewing government shall 27 be filed with the government that created the district and 28 shall serve as the basis for any modification to the district 29 charter or dissolution or merger of the district. 30 (8) If legislative dissolution or merger of a district 31 is proposed in the final report, the reviewing government 48 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 shall also propose a plan for the merger or dissolution, and 2 the plan shall address the following factors in evaluating the 3 proposed merger or dissolution: 4 (a) Whether, in light of independent fiscal analysis, 5 level-of-service implications, and other public policy 6 considerations, the proposed merger or dissolution is the best 7 alternative for delivering services and facilities to the 8 affected area. 9 (b) Whether the services and facilities to be provided 10 pursuant to the merger or dissolution will be compatible with 11 the capacity and uses of existing local services and 12 facilities. 13 (c) Whether the merger or dissolution is consistent 14 with applicable provisions of the state comprehensive plan, 15 the strategic regional policy plan, and the local government 16 comprehensive plans of the affected area. 17 (d) Whether the proposed merger adequately provides 18 for the assumption of all indebtedness. 19 20 The reviewing government shall consider the report in a public 21 hearing held within the jurisdiction of the district. If 22 adopted by the governing board of the reviewing government, 23 the request for legislative merger or dissolution of the 24 district may proceed. The adopted plan shall be filed as an 25 attachment to the economic impact statement regarding the 26 proposed special act or general act of local application 27 dissolving a district. 28 (9) This section does not apply to a deepwater port 29 listed in s. 311.09(1) which is in compliance with a port 30 master plan adopted pursuant to s. 163.3178(2)(k) or to an 31 49 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 airport authority operating in compliance with an airport 2 master plan approved by the Federal Aviation Administration. 3 Section 23. Codification.--Each district, by December 4 1, 2001, or when any act relating to such district is 5 introduced to the Legislature, whichever is first, shall 6 submit to the Legislature a draft codified charter, at its 7 expense, so that its special acts may be codified into a 8 single act for reenactment by the Legislature, if there is 9 more than one special act for the district. Any codified act 10 relating to a district, which act is submitted to the 11 Legislature for reenactment, shall provide for the repeal of 12 all prior special acts of the Legislature relating to the 13 district. The codified act shall be filed with the department 14 pursuant to s. 189.418(2), Florida Statutes. 15 Section 24. Subsection (6) of section 196.012, Florida 16 Statutes, is amended to read: 17 196.012 Definitions.--For the purpose of this chapter, 18 the following terms are defined as follows, except where the 19 context clearly indicates otherwise: 20 (6) Governmental, municipal, or public purpose or 21 function shall be deemed to be served or performed when the 22 lessee under any leasehold interest created in property of the 23 United States, the state or any of its political subdivisions, 24 or any municipality, agency, special district, authority, or 25 other public body corporate of the state is demonstrated to 26 perform a function or serve a governmental purpose which could 27 properly be performed or served by an appropriate governmental 28 unit or which is demonstrated to perform a function or serve a 29 purpose which would otherwise be a valid subject for the 30 allocation of public funds, whether or not such lessee is 31 deemed to be engaged in a proprietary activity. For purposes 50 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 of the preceding sentence, an activity undertaken by a lessee 2 which is permitted under the terms of its lease of real 3 property designated as an aviation area on an airport layout 4 plan which has been approved by the Federal Aviation 5 Administration and which real property is used for the 6 administration, operation, business offices and activities 7 related specifically thereto in connection with the conduct of 8 an aircraft full service fixed base operation which provides 9 goods and services to the general aviation public in the 10 promotion of air commerce shall be deemed an activity which 11 serves a governmental, municipal, or public purpose or 12 function. The use by a lessee, licensee, or management company 13 of real property or a portion thereof as a convention center, 14 visitor center, sports facility with permanent seating, 15 concert hall, arena, stadium, park, or beach is deemed a use 16 that serves a governmental, municipal, or public purpose or 17 function when access to the property is open to the general 18 public with or without a charge for admission. If property 19 deeded to a municipality by the United States is subject to a 20 requirement that the Federal Government, through a schedule 21 established by the Secretary of the Interior, determine that 22 the property is being maintained for public historic 23 preservation, park, or recreational purposes and if those 24 conditions are not met the property will revert back to the 25 Federal Government, then such property shall be deemed to 26 serve a municipal or public purpose. The term "governmental 27 purpose" also includes a direct use of property on federal 28 lands in connection with the Federal Government's Space 29 Exploration Program. Real property and tangible personal 30 property owned by the Federal Government and used for defense 31 and space exploration purposes or which is put to a use in 51 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 support thereof shall be deemed to perform an essential 2 national governmental purpose and shall be exempt. "Owned by 3 the lessee" as used in this chapter does not include personal 4 property, buildings, or other real property improvements used 5 for the administration, operation, business offices and 6 activities related specifically thereto in connection with the 7 conduct of an aircraft full service fixed based operation 8 which provides goods and services to the general aviation 9 public in the promotion of air commerce provided that the real 10 property is designated as an aviation area on an airport 11 layout plan approved by the Federal Aviation Administration. 12 For purposes of determination of "ownership," buildings and 13 other real property improvements which will revert to the 14 airport authority or other governmental unit upon expiration 15 of the term of the lease shall be deemed "owned" by the 16 governmental unit and not the lessee. 17 Section 25. Paragraph (d) is added to subsection (1) 18 of section 196.199, Florida Statutes, 1996 Supplement, to 19 read: 20 196.199 Government property exemption.-- 21 (1) Property owned and used by the following 22 governmental units shall be exempt from taxation under the 23 following conditions: 24 (d) Notwithstanding the provisions of subsection (2) 25 or subsection (4), all nonalienated or reversionary interests 26 in real property owned by any political subdivision of the 27 state, municipality, authority, special district, or other 28 local government subject to a leasehold or other possessory 29 interest of a nongovernmental lessee shall be deemed to be 30 used for a governmental, municipal, or public purpose or 31 function. 52 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 (2) Property owned by the following governmental units 2 but used by nongovernmental lessees shall only be exempt from 3 taxation under the following conditions: 4 (a) Leasehold interests in property of the United 5 States, of the state or any of its several political 6 subdivisions, or of municipalities, agencies, authorities, and 7 other public bodies corporate of the state shall be exempt 8 from ad valorem taxation only when the lessee serves or 9 performs a governmental, municipal, or public purpose or 10 function, as defined in s. 196.012(6). In all such cases, all 11 other interests in the leased property shall also be exempt 12 from ad valorem taxation. However, a leasehold interest in 13 property of the state may not be exempted from ad valorem 14 taxation when a nongovernmental lessee uses such property for 15 the operation of a multipurpose hazardous waste treatment 16 facility. 17 (b) Except as provided in paragraph (c), the exemption 18 provided by this subsection shall not apply to those portions 19 of a leasehold or other interest defined by s. 199.023(1)(d), 20 subject to the provisions of subsection (7). Such leasehold 21 or other interest shall be taxed only as intangible personal 22 property pursuant to chapter 199 if rental payments are due in 23 consideration of such leasehold or other interest. If no 24 rental payments are due pursuant to the agreement creating 25 such leasehold or other interest, the leasehold or other 26 interest shall be taxed as real property. Nothing in this 27 paragraph shall be deemed to exempt personal property, 28 buildings, or other real property improvements owned by the 29 lessee from ad valorem taxation. 30 (c) Any governmental property leased to an 31 organization which uses the property exclusively for literary, 53 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 scientific, religious, or charitable purposes shall be exempt 2 from taxation. 3 (4) Property owned by any municipality, agency, 4 authority, or other public body corporate of the state which 5 becomes subject to a leasehold interest or other possessory 6 interest of a nongovernmental lessee other than that described 7 in paragraph (2)(a), after April 14, 1976, shall be subject to 8 ad valorem taxation unless the lessee is an organization which 9 uses the property exclusively for literary, scientific, 10 religious, or charitable purposes. 11 Section 26. Except as otherwise provided herein, this 12 act shall take effect October 1, 1997. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 54 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 ***************************************** 2 HOUSE SUMMARY 3 Revises provisions which provide requirements for annual 4 financial audits of local governmental entities by independent certified public accountants. Requires the 5 auditor to notify each member of the governing body of such an entity of certain deteriorating financial 6 conditions. Provides duties of the Auditor General upon identification of information in an audit report that 7 indicates a local governmental entity may be in a state of financial emergency. 8 9 Redefines "dependent special district" and defines "public facilities" under the Uniform Special District 10 Accountability Act of 1989. Provides that, for purposes of the ad valorem tax exemption for governmental units, 11 special districts shall be treated as municipalities. Provides for retroactive effect. 12 13 Requires independent special district charters to contain certain information. Deletes a requirement that the law 14 creating an independent special district provide a method for dissolving the district. Specifies that only the 15 Legislature may create an independent special district, except as otherwise authorized by law. Requires a status 16 statement in a district charter. Provides requirements for creation of dependent special districts by county or 17 municipal ordinance. Provides merger and dissolution requirements for special districts. Provides procedures 18 and requirements for declaration that a district is inactive. Revises provisions relating to financial 19 allocations upon merger or dissolution. 20 Revises election procedures and requirements for special 21 districts. Provides method of qualifying and provides for fees. Revises the special requirements and 22 procedures for elections for districts with governing boards elected on a one-acre/one-vote basis. 23 24 Revises provisions relating to the duties of the Special District Information Program. Removes the requirement 25 for organization of a biennial conference. Revises requirements relating to special districts' public 26 facilities reports and provides for annual notice of changes thereto. Revises requirements relating to 27 consistency of special district facilities with local government comprehensive plans and provides that such 28 requirements do not apply to certain spoil disposal sites and ports. Revises the time for designation of a 29 registered office and agent. Requires publication of special district meeting schedules and revises 30 requirements for filing such schedules. 31 Revises provisions relating to initiation of enforcement 55 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1683 286-176D-97 1 proceedings against districts that fail to file certain reports. Revises provisions which authorize department 2 action if a district is determined to be inactive or if failure to file reports is determined to be volitional. 3 Revises provisions relating to rulemaking authority. Establishes an oversight review process for special 4 districts and provides requirements with respect thereto. Specifies who should carry out the review and provides 5 review criteria. Provides for a final report and provides requirements for a plan for merger or 6 dissolution of a district under review. Provides exemptions. Requires districts to submit a draft codified 7 charter so that their special acts may be codified by the Legislature. 8 9 Revises provisions which specify when a governmental, municipal, or public purpose is deemed to be served by a 10 lessee of government property for ad valorem tax exemption purposes. Provides that all nonalienated or 11 reversionary interests in property owned by a local government which is subject to a leasehold or other 12 possessory interest of a nongovernmental lessee shall be deemed to be used for a governmental, municipal, or 13 public purpose or function. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 56