Senate Bill sb0452

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    Florida Senate - 2004                                   SB 452

    By Senator Constantine





    22-178-04

  1                      A bill to be entitled

  2         An act relating to local governments; creating

  3         s. 171.094, F.S.; providing for the annexation

  4         of local enclaves; creating s. 171.2001, F.S.;

  5         providing a short title; creating s. 171.2002,

  6         F.S.; providing legislative intent; creating s.

  7         171.2003, F.S.; providing definitions; creating

  8         s. 171.2004, F.S.; providing a process for

  9         external enclave interlocal agreements;

10         creating s. 171.2005, F.S.; providing a dispute

11         resolution process; creating s. 171.2006, F.S.;

12         providing for the creation of boundary

13         adjustment and service delivery interlocal

14         agreements; creating s. 171.2007, F.S.;

15         prohibiting certain acts; creating s. 171.2008,

16         F.S.; providing for the transfer of powers;

17         creating s. 171.2009, F.S.; providing for

18         municipalities to exercise extraterritorial

19         powers; creating s. 171.2010, F.S.; providing

20         powers for counties to exercise in incorporated

21         areas; creating s. 171.2011, F.S.; providing

22         for the effect on existing interlocal

23         agreements; creating s. 171.2012, F.S.;

24         providing a presumption of validity; creating

25         s. 171.2013, F.S.; providing for the amendment

26         of certain municipal charters; amending s.

27         171.042, F.S.; providing a notice requirement;

28         providing grounds for invalidating an

29         annexation; amending s. 171.044, F.S.;

30         providing a notice requirement; providing

31  

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 1         grounds for invalidating an annexation;

 2         providing an effective date.

 3  

 4  Be It Enacted by the Legislature of the State of Florida:

 5  

 6         Section 1.  Section 171.094, Florida Statutes, is

 7  created to read:

 8         171.094  Annexation of internal enclaves.--

 9         (1)  Notwithstanding any charter provision or other

10  provision of law, except a subsequently adopted special act,

11  effective January 1, 2009, all internal enclaves are annexed

12  into the surrounding municipality.

13         (2)  The governing body of the county and the governing

14  body of the municipality surrounding an internal enclave may,

15  however, prior to January 1, 2009, enter into an interlocal

16  agreement providing otherwise. If essential public services

17  are provided by a special district within an internal enclave,

18  the special district must be a party to the interlocal

19  agreement.

20         (a)  The interlocal agreement shall provide:

21         1.  For an earlier date for the annexation of the

22  internal enclave, including the process by which the internal

23  enclave may be annexed; or

24         2.  That the internal enclave shall not be annexed, but

25  shall remain unincorporated until the governing bodies reach

26  an internal enclave interlocal agreement.

27         (b)  The interlocal agreement may provide a process for

28  annexation which may include a provision that the annexation

29  is subject to referendum approval by the residents within the

30  area to be annexed.

31  

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 1         (c)  The interlocal agreement may provide for a

 2  transfer between the county and the municipality of any

 3  governmental responsibility, including service delivery,

 4  infrastructure, and compensation.

 5         (d)  This section is an alternative provision otherwise

 6  provided by law as authorized in s. 4, Art. VIII of the State

 7  Constitution for any transfer of power resulting from an

 8  interlocal agreement for the provision of services or the

 9  acquisition of public facilities among a municipality, county,

10  or special district.

11         Section 2.  Section 171.2001, Florida Statutes, is

12  created to read:

13         171.2001  Short title.--This act may be cited as the

14  "Local Government Boundary Adjustment and Service Delivery

15  Interlocal Agreement Act."

16         Section 3.  Section 171.2002, Florida Statutes, is

17  created to read:

18         171.2002  Legislative intent.--The Legislature intends

19  to provide an alternative to the annexation of territory into

20  a municipality and subtraction of territory from the

21  unincorporated area of the county. The principal goal of this

22  act is to encourage local governments to jointly determine how

23  to provide municipal services to residents and property in the

24  most efficient and effective manner, balancing the needs and

25  desires of the community with the ability to pay. This act is

26  intended to establish a more flexible process for the

27  adjustment of municipal boundaries and to address a wider

28  range of annexation impacts. Annexation laws should encourage

29  intergovernmental coordination in adjusting municipal

30  boundaries, local government revenue structures, and

31  service-provision responsibilities to better reflect urban

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 1  development patterns, community identities, and

 2  service-delivery capacities. Likewise, it is the intent of the

 3  Legislature to promote sensible municipal boundaries that

 4  reduce the costs of local government, facilitate service

 5  delivery, and increase political transparency and

 6  accountability. This act is also intended to prevent the wide

 7  dispersion of unincorporated area that may be caused by

 8  annexation that results in service delivery problems and a tax

 9  base insufficient to serve the needs of the widely dispersed

10  unincorporated area. This act is intended to offer

11  municipalities and counties a new process through which

12  municipal and unincorporated area boundaries may be adjusted

13  and services may be provided to those areas.

14         Section 4.  Section 171.2003, Florida Statutes, is

15  created to read:

16         171.2003  Definitions.--As used in ss.

17  171.2004-171.2007, the term:

18         (1)  "External enclave" means an unincorporated area

19  that is enclosed within and bounded on all sides by two or

20  more municipalities or bounded on all sides by two or more

21  municipalities and a county boundary.

22         (2)  "Internal enclave" means an unincorporated area

23  that is enclosed within and bounded on all sides by a single

24  municipality or that is enclosed within and bounded by a

25  single municipality and a county boundary or a natural or

26  manmade obstacle that allows the passage of vehicular traffic

27  to that unincorporated area only through the municipality.

28         Section 5.  Section 171.2004, Florida Statutes, is

29  created to read:

30         171.2004  External enclave interlocal agreement

31  process.--

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 1         (1)  Notwithstanding any charter provision or other

 2  provision of law, except a subsequently adopted special act,

 3  the governing bodies of two or more municipalities surrounding

 4  an external enclave may negotiate a proposed external enclave

 5  interlocal agreement for consideration by the governing body

 6  of the county.

 7         (2)  At any time prior to January 1, 2007, a

 8  municipality may adopt a resolution indicating its intent to

 9  negotiate an external enclave interlocal agreement. The

10  resolution must identify the unincorporated area for which the

11  municipality desires to negotiate. Within 3 days after its

12  adoption, the municipality shall send the resolution by

13  certified mail to the chief administrative officers for the

14  county and all the other surrounding municipalities.

15         (3)  A proposed interlocal agreement must:

16         (a)  Indicate whether the area should be annexed into a

17  municipality or remain unincorporated;

18         (b)  Specify the process by which the area will be

19  annexed, including a determination of whether or not a

20  referendum will be held;

21         (c)  Determine whether the county or a municipality

22  should provide municipal services and facilities to the area;

23         (d)  Include any other service-delivery issue,

24  including fiscal compensation to any municipality or county;

25  and

26         (e)  Include a process for public participation which

27  provides reasonable notice to the public.

28         (4)  If the governing bodies of two or more

29  municipalities surrounding the external enclave reach a

30  proposed agreement within 1 year after initiating the process,

31  the proposed interlocal agreement shall be adopted by

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 1  resolution by each municipality and sent to the chief

 2  administrative officer for the county by certified mail.

 3         (a)  Within 60 days after receipt of the resolution,

 4  the governing body of the county shall consider the proposed

 5  interlocal agreement and may agree to the proposed interlocal

 6  agreement, suggest revisions to it, or reject it and send the

 7  issue to dispute resolution pursuant to s. 171.2005.

 8         1.  If the county governing body agrees with the

 9  proposed interlocal agreement, it shall adopt a resolution

10  indicating its agreement and notify the municipalities.

11  Thereafter, the municipalities and the county shall adopt the

12  interlocal agreement pursuant to the regular process for

13  ordinance adoption provided in ss. 125.66(2)(a) and

14  166.041(3)(a).

15         2.  If the county governing body adopts revisions to

16  the proposed interlocal agreement, it shall return the revised

17  resolution to the municipalities. The governing bodies of each

18  of the municipalities shall consider the county's revised

19  resolution.

20         a.  If a municipality agrees with the county's

21  revisions, it shall modify its resolution and notify the

22  governing bodies of the county and the other municipalities

23  accordingly.

24         b.  If a municipality further revises the resolution,

25  it shall do so by resolution and notify the governing body of

26  the county and the surrounding municipalities accordingly.

27         c.  The county governing body shall consider the

28  proposed revised interlocal agreement and may agree to accept

29  or reject it and submit the issue to dispute resolution

30  pursuant to s. 171.2005.

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 1         (5)  If the county governing body rejects the proposed

 2  agreement, it shall inform the municipalities of its desire to

 3  have the issue resolved by the dispute resolution process in

 4  s. 171.2005.

 5         (6)  If no municipality surrounding an external enclave

 6  initiates the interlocal agreement process by January 1, 2006,

 7  or if the municipalities do not reach an agreement within 1

 8  year after such initiation, the county governing body may

 9  initiate the process pursuant to this section.

10         Section 6.  Section 171.2005, Florida Statutes, is

11  created to read:

12         171.2005  Dispute resolution process.--

13         (1)  For resolving disputes arising under s. 171.2004,

14  the local governments may establish a dispute resolution

15  process by interlocal agreement that provides for an orderly,

16  speedy, and final resolution of the dispute.

17         (2)  If local governments do not adopt a dispute

18  resolution interlocal agreement, they must use the following

19  dispute resolution process:

20         (a)  A county or municipality may file a petition

21  seeking arbitration which states with particularity the issue

22  in dispute, suggests a proposed resolution, and states the

23  reasons supporting the resolution.

24         (b)  Notwithstanding s. 120.569, the petition shall be

25  filed with the Division of Administrative Hearings which

26  shall, immediately upon filing, forward copies to the other

27  local government that is a party. Within 10 days after

28  receiving a complete petition, the division director shall

29  assign an administrative law judge as arbitrator, who shall

30  conduct an arbitration hearing within 30 days thereafter,

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 1  unless the petition is withdrawn or a continuance is granted

 2  by agreement of the parties or for good cause shown.

 3         (c)  Within 30 days after the arbitration hearing, the

 4  arbitrator shall issue a written decision and state the

 5  reasons in writing. The division shall immediately transmit

 6  copies of the decision to the county and the municipalities.

 7         (d)  The evidentiary standards shall be as provided in

 8  ss. 120.569(2)(g) and 120.57(1)(c).

 9         (e)  This subsection does not preclude settlement by

10  mutual agreement of the parties at any time.

11         (f)  The arbitrator shall consider the following

12  factors:

13         1.  Preference of the residents and property owners in

14  the area proposed for annexation;

15         2.  The fiscal effects of boundary adjustments,

16  including the annexation of the area under consideration on

17  the ability of the county and the municipalities to provide

18  services and facilities to the area under consideration, the

19  remainder of the unincorporated area, and the incorporated

20  area of the participating municipalities;

21         3.  Reduction in the value or use of infrastructure

22  owned by the county or a special district which may result

23  from annexation;

24         4.  Commonality of interests among the residents and

25  property owners of the area proposed for annexation and the

26  adjacent incorporated area;

27         5.  Effects of the proposed annexation on the

28  efficiency and effectiveness of urban service delivery;

29         6.  Whether the area proposed for annexation meets the

30  criteria in s. 171.043(1);

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 1         7.  Whether the area proposed for the annexation is

 2  urban in character; and

 3         8.  The intent of the Legislature in this act.

 4         (g)  The arbitrator may:

 5         1.  Determine unincorporated area and municipal

 6  boundaries, including adopting a process for annexation which

 7  may include a referendum requirement;

 8         2.  Determine service delivery responsibilities among

 9  the county, municipality, and special district;

10         3.  Determine fiscal compensation issues, including

11  requiring a single payment or payment over a term of years by

12  one of the parties to assure that fiscal responsibilities for

13  providing urban services can be met; and

14         4.  Resolve any other issue involving a dispute about

15  external enclaves.

16         (h)  Arbitration hearings shall be conducted as

17  providing by ss. 120.569 and 120.57, except that the

18  arbitrator's order shall be transmitted to the governmental

19  entities, which have 45 days to:

20         1.  Accept the findings and enter into an agreement

21  based upon the award;

22         2.  Negotiate and enter into an agreement that differs

23  from the award; or

24         3.  File an action rejecting the award under s. 674.22

25  to set aside the award or enforce it.

26  

27  All subsequent proceedings shall be governed by part III of

28  chapter 684.

29         (i)  The Division of Administrative Hearings may adopt

30  arbitration rules.

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 1         Section 7.  Section 171.2006, Florida Statutes, is

 2  created to read:

 3         171.2006  Boundary adjustment and service delivery

 4  interlocal agreement.--The governing body of a county may

 5  enter into a separate boundary adjustment and service delivery

 6  interlocal agreement with a municipality within the county. At

 7  the discretion of the county and each municipality, more than

 8  a single municipality and the county may enter into a joint

 9  interlocal agreement.

10         (1)  An interlocal agreement may be for a term of 20

11  years or less and: may

12         (a)  Identify the area for annexation and area to be

13  left unincorporated.

14         (b)  Identify the local government responsible for the

15  delivery of the following services:

16         1.  Public safety;

17         2.  Fire service;

18         3.  Water and wastewater;

19         4.  Road maintenance;

20         5.  Recreation; and

21         6.  Storm water management and drainage.

22         (c)  Address other services, facilities, and transfer

23  of employees.

24         (d)  Establish a process and schedule for annexation of

25  the designated area, notwithstanding other provisions of law.

26         (e)  Establish a process for land-use decisions,

27  including those made jointly by the governing bodies of the

28  county and the municipality, and allow a municipality to adopt

29  land-use changes for areas that are scheduled to be annexed

30  within the timeframe of the interlocal agreement. However,

31  land-use changes initiated by a municipality because of

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 1  annexations made pursuant to such interlocal agreements are

 2  exempt from the two-per-year limitation applicable to

 3  comprehensive plan changes in s. 163.3187.

 4         (f)  Establish a process for fiscal considerations,

 5  including compensation for loss of tax base and revenue and

 6  stranded infrastructure.

 7         (g)  Include provisions for the joint use of facilities

 8  and the colocation of services.

 9         (2)  The governing bodies of a county and a

10  municipality may develop a process for reaching a boundary

11  adjustment and service delivery interlocal agreement, which

12  provides for public participation in a manner that meets or

13  exceeds the requirements of paragraph (b), or the governing

14  bodies may use the following process:

15         (a)  A municipality or county may initiate negotiations

16  by adopting a resolution indicating such intent. Within 60

17  days after receipt of such resolution, negotiations between

18  the county and the municipality shall begin.

19         (b)  When the municipality and county have reached a

20  tentative agreement, each local government shall adopt the

21  tentative agreement by resolution. Thereafter, within 120

22  days, the tentative agreement shall be the subject of at least

23  two public hearings by each local government.

24         (c)  Following the last public hearing, the

25  municipality and county may further negotiate and shall adopt

26  the agreement by ordinance pursuant to ss. 166.043 and 125.66,

27  respectively.

28         (d)  No earlier than 1 year after the commencement of

29  negotiations, the city or county may declare an impasse in the

30  negotiations and seek a resolution of the issues under this

31  section.

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 1         (3)  The local governments may, by interlocal

 2  agreement, establish a mediation process; otherwise, they must

 3  use the following mediation process:

 4         (a)  A county or municipality may file a petition

 5  seeking mediation, which petition states with particularity

 6  the issue in dispute, suggests a proposed resolution, and

 7  states the reasons for supporting the resolution.

 8         (b)  Notwithstanding s. 120.569, the petition shall be

 9  filed with the Division of Administrative Hearings which

10  shall, immediately upon filing, forward copies to the other

11  local government that is a party. Within 10 days after

12  receiving a complete petition, the division director shall

13  assign an administrative law judge as mediator, who shall

14  conduct a mediation hearing within 30 days thereafter, unless

15  the petition is withdrawn or a continuance is granted by

16  agreement of the parties or for good cause shown.

17         (c)  Within 30 days after the mediation hearing, the

18  arbitrator shall issue a written proposal and state the

19  reasons in writing. The division shall immediately transmit

20  copies of the proposal to the county and the municipality.

21         (d)  The evidentiary standards shall be as provided in

22  ss. 120.569(2)(g) and 120.57(1)(c).

23         (e)  This subsection does not preclude settlement by

24  mutual agreement of the parties at any time.

25         (f)  The mediator shall consider the following factors:

26         1.  Preference of the residents and property owners in

27  the area proposed for annexation and in adjoining incorporated

28  and unincorporated areas;

29         2.  The fiscal effects of annexations, including the

30  annexation of the area under consideration, on the ability of

31  the county and the municipality to provide services and

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 1  facilities to the area under consideration, the remainder of

 2  the unincorporated area, and the incorporated area of the

 3  participating municipality;

 4         3.  Reduction in the value or use of infrastructure

 5  owned by the county or a special district which may result

 6  from annexation;

 7         4.  Commonality of interests among the residents and

 8  property owners of the area proposed for annexation;

 9         5.  Commonality of interests between the area proposed

10  for annexation and adjacent incorporated and unincorporated

11  neighborhoods and communities;

12         6.  Effects of the proposed annexation on the

13  efficiency and effectiveness of urban service delivery;

14         7.  Whether the area proposed for annexation meets the

15  criteria in s. 171.043(1);

16         8.  Whether the area proposed for the annexation is

17  urban in character; and

18         9.  The intent of the Legislature as expressed in this

19  act.

20         (g)  The mediator may:

21         1.  Determine unincorporated area and municipal

22  boundaries, including adopting a process for annexation that

23  may include a referendum requirement;

24         2.  Determine service-delivery responsibilities among

25  the county, municipality, and special district;

26         3.  Determine fiscal compensation issues, including

27  requiring a single payment or payment over a term of years by

28  one of the parties to assure that fiscal responsibilities for

29  providing urban services can be met; and

30         4.  Resolve any other issue involving a dispute about

31  boundary adjustment and service delivery.

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 1         (h)  Mediation hearings shall be conducted as provided

 2  by ss. 120.569 and 120.57, except that the mediator's proposal

 3  is not final but shall be transmitted to the governmental

 4  entities, which have 45 days to:

 5         1.  Accept the findings and enter into an agreement

 6  based upon the award;

 7         2.  Negotiate and enter into an agreement that differs

 8  from the award; or

 9         3.  Refuse to enter into an agreement.

10         (i)  The Division of Administrative Hearings may adopt

11  mediation rules.

12         (j)  Unless another time period is agreed upon, the

13  county and the municipality may review and consider revisions

14  to the interlocal agreement every 4 years.

15         Section 8.  Section 171.2007, Florida Statutes, is

16  created to read:

17         171.2007  Prohibited acts.--A county or municipality

18  may not approve any up-zoning of land use or any financial

19  inducements as a disincentive to annexation with respect to a

20  county or incentive to annexation with respect to a

21  municipality. However, such incentives or disincentives may be

22  offered with the agreement of the other local government.

23         Section 9.  Section 171.2008, Florida Statutes, is

24  created to read:

25         171.2008  Transfer of powers.--This act is an

26  alternative provision otherwise provided by law as authorized

27  in s. 4, Art. VIII of the State Constitution for the transfer

28  of power resulting from an interlocal agreement for the

29  provision of services or the acquisition of public facilities

30  among a municipality, county, special district, or other

31  entity.

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 1         Section 10.  Section 171.2009, Florida Statutes, is

 2  created to read:

 3         171.2009  Municipal extraterritorial power.--This act

 4  authorizes a municipality to exercise extraterritorial powers

 5  that include the authority to provide services and facilities

 6  within the unincorporated area or within the territory of

 7  another municipality as provided within a boundary adjustment

 8  and service delivery interlocal agreement.

 9         Section 11.  Section 171.2010, Florida Statutes, is

10  created to read:

11         171.2010  County incorporated area power.--This act

12  authorizes a county to exercise powers within a municipality

13  which include the authority to provide services and facilities

14  within the unincorporated area or within the territory of

15  another municipality, as provided within a boundary adjustment

16  and service delivery interlocal agreement.

17         Section 12.  Section 171.2011, Florida Statutes, is

18  created to read:

19         171.2011  Effect on existing interlocal agreement.--A

20  joint planning agreement between a municipality and a county

21  is not abrogated by this act. However, a county or

22  municipality may use this act, which may result in the repeal

23  or modification of the joint planning agreement.

24         Section 13.  Section 171.2012, Florida Statutes, is

25  created to read:

26         171.2012  Interlocal agreement entitled to presumption

27  of validity.--In any litigation over the terms, conditions,

28  construction, or enforcement of an interlocal agreement

29  created pursuant to this act, the agreement is presumed valid

30  and the burden of proving its invalidity is on the challenger.

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 1         Section 14.  Section 171.2013, Florida Statutes, is

 2  created to read:

 3         171.2013  Municipal charter.--The territorial

 4  jurisdiction provided for in an annexing municipality's

 5  charter shall be amended under s. 166.031(3) to include the

 6  territory annexed under this part.

 7         Section 15.  Subsection (2) of section 171.042, Florida

 8  Statutes, is amended to read:

 9         171.042  Prerequisites to annexation.--

10         (2)  Forty-five days prior to commencing the annexation

11  procedures under s. 171.0413, the governing body of the

12  municipality shall file a copy of the report required by this

13  section with the board of county commissioners of the county

14  wherein the municipality is located. This notice provision may

15  be the basis for a cause of action to invalidate the

16  annexation.

17         Section 16.  Subsection (6) of section 171.044, Florida

18  Statutes, is amended to read:

19         171.044  Voluntary annexation.--

20         (6)  Forty-five days prior to Upon publishing or

21  posting the ordinance notice required under subsection (2),

22  the governing body of the municipality must provide a copy of

23  the notice, via certified mail, to the board of the county

24  commissioners of the county wherein the municipality is

25  located.  The notice provision provided in this subsection

26  shall not be the basis for a of any cause of action

27  invalidating challenging the annexation.

28         Section 17.  Except as otherwise provided, this act

29  shall take effect July 1, 2004.

30  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Provides for the annexation of internal enclaves through
      interlocal agreements by a county or municipality.
 4    Provides legislative intent regarding annexation of
      territory. Authorizes surrounding municipalities to
 5    negotiate an external enclave interlocal agreement.
      Provides that a municipality may adopt a resolution to
 6    indicate its intent to negotiate an external enclave
      interlocal agreement.  Provides requirements for
 7    interlocal agreements.   Provides for a dispute
      resolution process.  Provides for boundary adjustment and
 8    service delivery interlocal agreements.  Provides for the
      development of a process for reaching a boundary
 9    adjustment and service delivery  interlocal agreement.
      Provides for a mediation process when an impasse is
10    declared.  Indicates prohibited acts of zoning.  Provides
      an alternative provision for the transfer of power
11    resulting from an interlocal agreement.  Authorizes a
      municipality to exercise extraterritorial powers.
12    Authorizes a county to exercise certain powers within a
      municipality.  Provides that a joint planning agreement
13    between a municipality and a county is not abrogated by
      this act.  Provides that an interlocal agreement carries
14    a presumption of validity.  Provides for territorial
      jurisdiction.  Provides a time period to commence
15    annexation procedures.  Provides a time period in which
      the governing body of a municipality must provide a copy
16    of the ordinance notice to the board of the county
      commissioners.  Provides for a cause of action for
17    invalidating an annexation.

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