CS/HB 107

1
A bill to be entitled
2An act relating to special districts; amending s.
3189.4042, F.S.; revising provisions relating to merger
4and dissolution procedures for special districts;
5providing definitions; requiring the merger or
6dissolution of dependent special districts created by
7a special act to be effectuated by the Legislature;
8providing for the merger or dissolution of inactive
9special districts by special act without referenda;
10requiring involuntary dissolution procedures for
11independent special districts to include referenda;
12providing for the dissolution of inactive independent
13special districts by special act; providing for local
14governments to assume indebtedness of, and receive
15title to property owned by, special districts under
16certain circumstances; providing for the merger of
17certain independent special districts by the
18Legislature; providing procedures and requirements for
19the voluntary merger of contiguous independent special
20districts; limiting the authority of the merged
21district to levy and collect revenue until a unified
22charter is approved by the Legislature; providing for
23the effect of the merger on employees, legal
24liabilities, obligations, proceedings, and annexation;
25providing for the determination of certain rights by
26the governing body of the merged district; providing
27that such provisions preempt certain special acts;
28providing procedures and requirements for the
29involuntary merger of independent special districts;
30providing exemptions from merger and dissolution
31procedures; amending s. 191.014, F.S.; deleting a
32provision relating to the conditions under which the
33merger of independent special districts or dependent
34fire control districts with other special districts is
35effective and the conditions under which a merged
36district is authorized to increase ad valorem taxes;
37amending s. 189.4044, F.S.; revising criteria by which
38special districts are declared inactive by a governing
39body; authorizing such districts to be dissolved
40without a referendum; providing an effective date.
41
42Be It Enacted by the Legislature of the State of Florida:
43
44     Section 1.  Section 189.4042, Florida Statutes, is amended
45to read:
46     189.4042  Merger and dissolution procedures.-
47     (1)  DEFINITIONS.-As used in this section, the term:
48     (a)  "Component independent special district" means an
49independent special district that proposes to be merged into a
50merged independent district, or an independent special district
51as it existed before its merger into the merged independent
52district of which it is now a part.
53     (b)  "Elector-initiated merger plan" means the merger plan
54of two or more independent special districts, a majority of
55whose qualified electors have elected to merge, which outlines
56the terms and agreements for the official merger of the
57districts and is finalized and approved by the governing bodies
58of the districts pursuant to this section.
59     (c)  "Governing body" means the governing body of the
60independent special district in which the general legislative,
61governmental, or public powers of the district are vested and by
62authority of which the official business of the district is
63conducted.
64     (d)  "Initiative" means the filing of a petition containing
65a proposal for a referendum to be placed on the ballot for
66election.
67     (e)  "Joint merger plan" means the merger plan that is
68adopted by resolution of the governing bodies of two or more
69independent special districts that outlines the terms and
70agreements for the official merger of the districts and that is
71finalized and approved by the governing bodies pursuant to this
72section.
73     (f)  "Merged independent district" means a single
74independent special district that results from a successful
75merger of two or more independent special districts pursuant to
76this section.
77     (g)  "Merger" means the combination of two or more
78contiguous independent special districts resulting in a newly
79created merged independent district that assumes jurisdiction
80over all of the component independent special districts.
81     (h)  "Merger plan" means a written document that contains
82the terms, agreements, and information regarding the merger of
83two or more independent special districts.
84     (i)  "Proposed elector-initiated merger plan" means a
85written document that contains the terms and information
86regarding the merger of two or more independent special
87districts and that accompanies the petition initiated by the
88qualified electors of the districts but that is not yet
89finalized and approved by the governing bodies of each component
90independent special district pursuant to this section.
91     (j)  "Proposed joint merger plan" means a written document
92that contains the terms and information regarding the merger of
93two or more independent special districts and that has been
94prepared pursuant to a resolution of the governing bodies of the
95districts but that is not yet finalized and approved by the
96governing bodies of each component independent special district
97pursuant to this section.
98     (k)  "Qualified elector" means an individual at least 18
99years of age who is a citizen of the United States, a permanent
100resident of this state, and a resident of the district who
101registers with the supervisor of elections of a county within
102which the district lands are located when the registration books
103are open.
104     (2)(1)  MERGER OR DISSOLUTION OF A DEPENDENT SPECIAL
105DISTRICT.-
106     (a)  The merger or dissolution of a dependent special
107district districts may be effectuated by an ordinance of the
108general-purpose local governmental entity wherein the
109geographical area of the district or districts is located.
110However, a county may not dissolve a special district that is
111dependent to a municipality or vice versa, or a dependent
112district created by special act.
113     (b)  The merger or dissolution of a dependent special
114district created and operating pursuant to a special act may be
115effectuated only by further act of the Legislature unless
116otherwise provided by general law.
117     (c)  A dependent special district that meets any criteria
118for being declared inactive, or that has already been declared
119inactive, pursuant to s. 189.4044 may be dissolved or merged by
120special act without a referendum.
121     (d)(b)  A copy of any ordinance and of any changes to a
122charter affecting the status or boundaries of one or more
123special districts shall be filed with the Special District
124Information Program within 30 days after of such activity.
125     (3)(2)  DISSOLUTION OF AN INDEPENDENT SPECIAL DISTRICT.-
126     (a)  Voluntary dissolution.-The voluntary merger or
127dissolution of an independent special district or a dependent
128district created and operating pursuant to a special act may
129only be effectuated only by the Legislature unless otherwise
130provided by general law.
131     (b)  Involuntary dissolution.-
132     1.  If the Legislature or a local general-purpose
133government seeks to dissolve an active independent special
134district created and operating pursuant to a special act whose
135governing body objects by resolution to the dissolution, the
136dissolution of the active independent special district is not
137effective until a special act of the Legislature is approved by
138a majority of the resident electors of the district or
139landowners voting in the same manner by which the independent
140special district's governing body is elected. This subparagraph
141also applies if an independent special district's governing body
142elects to dissolve the district by less than a supermajority
143vote of the governing body. The political subdivisions proposing
144the involuntary dissolution of an active independent special
145district shall be responsible for payment of any expenses
146associated with the referendum required under this subparagraph.
147     2.  If an independent special district was created by a
148county or municipality by referendum or any other procedure, the
149county or municipality that created the district may dissolve
150the district pursuant to a referendum or any other procedure by
151which the independent special district was created. However, if
152the independent special district has ad valorem taxation powers,
153the same procedure required to grant the independent special
154district ad valorem taxation powers is required to dissolve the
155district.
156     (c)  Inactive independent special districts.-An independent
157special district that meets any criteria for being declared
158inactive, or that has already been declared inactive, pursuant
159to s. 189.4044 may be dissolved by special act without a
160referendum. If an inactive independent special district was
161created by a county or municipality through a referendum, the
162county or municipality that created the district may dissolve
163the district after publishing notice as described in s.
164189.4044. If an independent district was created by a county or
165municipality by referendum or any other procedure, the county or
166municipality that created the district may merge or dissolve the
167district pursuant to the same procedure by which the independent
168district was created. However, for any independent district that
169has ad valorem taxation powers, the same procedure required to
170grant such independent district ad valorem taxation powers shall
171also be required to dissolve or merge the district.
172     (d)  Debts and assets.-Financial allocations of the assets
173and indebtedness of a dissolved independent special district
174shall be pursuant to s. 189.4045.
175     (4)  LEGISLATIVE MERGER OF INDEPENDENT SPECIAL DISTRICTS.-
176The Legislature may merge independent special districts created
177and operating pursuant to special act.
178     (5)  VOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.-Two
179or more contiguous independent special districts created by
180special act which have similar functions and elected governing
181bodies may elect to merge into a single independent district
182through the act of merging the component independent special
183districts.
184     (a)  Initiation.-Merger proceedings may commence by:
185     1.  A joint resolution of the governing bodies of each
186independent special district which endorses a proposed joint
187merger plan; or
188     2.  A qualified elector initiative.
189     (b)  Joint merger plan by resolution.-The governing bodies
190of two or more contiguous independent special districts may, by
191joint resolution, endorse a proposed joint merger plan to
192commence proceedings to merge the districts pursuant to this
193subsection.
194     1.  The proposed joint merger plan must specify:
195     a.  The name of each component independent special district
196to be merged;
197     b.  The name of the proposed merged independent district;
198     c.  The rights, duties, and obligations of the proposed
199merged independent district;
200     d.  The territorial boundaries of the proposed merged
201independent district;
202     e.  The governmental organization of the proposed merged
203independent district insofar as it concerns elected and
204appointed officials and public employees, along with a
205transitional plan and schedule for elections and appointments of
206officials;
207     f.  A fiscal estimate of the potential cost or savings as a
208result of the merger;
209     g.  Each component independent special district's assets,
210including, but not limited to, real and personal property, and
211the current value thereof;
212     h.  Each component independent special district's
213liabilities and indebtedness, bonded and otherwise, and the
214current value thereof;
215     i.  Terms for the assumption and disposition of existing
216assets, liabilities, and indebtedness of each component
217independent special district jointly, separately, or in defined
218proportions;
219     j.  Terms for the common administration and uniform
220enforcement of existing laws within the proposed merged
221independent district;
222     k.  The times and places for public hearings on the
223proposed joint merger plan;
224     l.  The times and places for a referendum in each component
225independent special district on the proposed joint merger plan,
226along with the referendum language to be presented for approval;
227and
228     m.  The effective date of the proposed merger.
229     2.  The resolution endorsing the proposed joint merger plan
230must be approved by a majority vote of the governing bodies of
231each component independent special district and adopted at least
23260 business days before any general or special election on the
233proposed joint merger plan.
234     3.  Within 5 business days after the governing bodies
235approve the resolution endorsing the proposed joint merger plan,
236the governing bodies must:
237     a.  Cause a copy of the proposed joint merger plan, along
238with a descriptive summary of the plan, to be displayed and be
239readily accessible to the public for inspection in at least
240three public places within the territorial limits of each
241component independent special district, unless a component
242independent special district has fewer than three public places,
243in which case the plan must be accessible for inspection in all
244public places within the component independent special district;
245     b.  If applicable, cause the proposed joint merger plan,
246along with a descriptive summary of the plan and a reference to
247the public places within each component independent special
248district where a copy of the merger plan may be examined, to be
249displayed on a website maintained by each district or on a
250website maintained by the county or municipality in which the
251districts are located; and
252     c.  Arrange for a descriptive summary of the proposed joint
253merger plan, and a reference to the public places within the
254district where a copy may be examined, to be published in a
255newspaper of general circulation within the component
256independent special districts at least once each week for 4
257successive weeks.
258     4.  The governing body of each component independent
259special district shall set a time and place for one or more
260public hearings on the proposed joint merger plan. Each public
261hearing shall be held on a weekday at least 7 business days
262after the day the first advertisement is published on the
263proposed joint merger plan. The hearing or hearings may be held
264jointly or separately by the governing bodies of the component
265independent special districts. Any interested person residing in
266the respective district shall be given a reasonable opportunity
267to be heard on any aspect of the proposed merger at the public
268hearing.
269     a.  Notice of the public hearing addressing the resolution
270for the proposed joint merger plan must be published pursuant to
271the notice requirements in s. 189.417 and must provide a
272descriptive summary of the proposed joint merger plan and a
273reference to the public places within the component independent
274special districts where a copy of the plan may be examined.
275     b.  After the final public hearing, the governing bodies of
276each component independent special district may amend the
277proposed joint merger plan if the amended version complies with
278the notice and public hearing requirements provided in this
279subsection. Thereafter, the governing bodies may approve a final
280version of the joint merger plan or decline to proceed further
281with the merger. Approval by the governing bodies of the final
282version of the joint merger plan must occur within 60 business
283days after the final hearing.
284     5.  After the final public hearing, the governing bodies
285shall notify the supervisors of elections of the applicable
286counties in which district lands are located of the adoption of
287the resolution by each governing body. The supervisors of
288elections shall schedule a separate referendum for each
289component independent special district. The referenda may be
290held in each district on the same day, or on different days, but
291no more than 20 days apart.
292     a.  Notice of a referendum on the merger of independent
293special districts must be provided pursuant to the notice
294requirements in s. 100.342. At a minimum, the notice must
295include:
296     (I)  A brief summary of the resolution and joint merger
297plan;
298     (II)  A statement as to where a copy of the resolution and
299joint merger plan may be examined;
300     (III)  The names of the component independent special
301districts to be merged and a description of their territory;
302     (IV)  The times and places at which the referendum will be
303held; and
304     (V)  Such other matters as may be necessary to call,
305provide for, and give notice of the referendum and to provide
306for the conduct thereof and the canvass of the returns.
307     b.  The referenda must be held in accordance with the
308Florida Election Code and may be held pursuant to ss. 101.6101-
309101.6107. All costs associated with the referenda shall be borne
310by the respective component independent special district.
311     c.  The ballot question in such referendum placed before
312the qualified electors of each component independent special
313district to be merged must be in substantially the following
314form:
315
316     "Shall (...name of component independent special
317district...) and (...name of component independent special
318district or districts...) be merged into (...name of newly
319merged independent district...)?
320     _____YES
321     _____NO"
322
323     d.  If the component independent special districts
324proposing to merge have disparate millage rates, the ballot
325question in the referendum placed before the qualified electors
326of each component independent special district must be in
327substantially the following form:
328
329     "Shall (...name of component independent special
330district...) and (...name of component independent special
331district or districts...) be merged into (...name of newly
332merged independent district...) if the voter-approved maximum
333millage rate within each independent special district will not
334increase absent a subsequent referendum?
335     _____YES
336     _____NO"
337
338     e.  In any referendum held pursuant to this subsection, the
339ballots shall be counted, returns made and canvassed, and
340results certified in the same manner as other elections or
341referenda for the component independent special districts.
342     f.  The merger may not take effect unless a majority of the
343votes cast in each component independent special district are in
344favor of the merger. If one of the component districts does not
345obtain a majority vote, the referendum fails, and merger does
346not take effect.
347     g.  If the merger is approved by a majority of the votes
348cast in each component independent special district, the merged
349independent district is created. Upon approval, the merged
350independent district shall notify the Special District
351Information Program pursuant to s. 189.418(2) and the local
352general-purpose governments in which any part of the component
353independent special districts is situated pursuant to s.
354189.418(7).
355     h.  If the referendum fails, the merger process under this
356paragraph may not be initiated for the same purpose within 2
357years after the date of the referendum.
358     6.  Component independent special districts merged pursuant
359to a joint merger plan by resolution shall continue to be
360governed as before the merger until the effective date specified
361in the adopted joint merger plan.
362     (c)  Qualified elector-initiated merger plan.-The qualified
363electors of two or more contiguous independent special districts
364may commence a merger proceeding by each filing a petition with
365the governing body of their respective independent special
366district proposing to be merged. The petition must contain the
367signatures of at least 40 percent of the qualified electors of
368each component independent special district and must be
369submitted to the appropriate component independent special
370district governing body no later than 1 year after the start of
371the qualified elector-initiated merger process.
372     1.  The petition must comply with, and be circulated in,
373the following form:
374
375     PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER
376
377     We, the undersigned electors and legal voters of (...name
378of independent special district...), qualified to vote at the
379next general or special election, respectfully petition that
380there be submitted to the electors and legal voters of (...name
381of independent special district or districts proposed to be
382merged...), for their approval or rejection at a referendum held
383for that purpose, a proposal to merge (...name of component
384independent special district...) and (...name of component
385independent special district or districts...).
386
387     In witness thereof, we have signed our names on the date
388indicated next to our signatures.
389
390     Date          Name (print under signature)          Home Address
391     ___________________________________________________________
392     ___________________________________________________________
393
394     2.  The petition must be validated by a signed statement by
395a witness who is a duly qualified elector of one of the
396component independent special districts, a notary public, or
397another person authorized to take acknowledgements.
398     a.  A statement that is signed by a witness who is a duly
399qualified elector of the respective district shall be accepted
400for all purposes as the equivalent of an affidavit. Such
401statement must be in substantially the following form:
402
403     "I, (...name of witness...), state that I am a duly
404qualified voter of (...name of independent special district...).
405Each of the (...insert number...) persons who have signed this
406petition sheet has signed his or her name in my presence on the
407dates indicated above and identified himself or herself to be
408the same person who signed the sheet. I understand that this
409statement will be accepted for all purposes as the equivalent of
410an affidavit and, if it contains a materially false statement,
411shall subject me to the penalties of perjury."
412
413     Date                     Signature of Witness
414
415     b.  A statement that is signed by a notary public or
416another person authorized to take acknowledgements must be in
417substantially the following form:
418
419     "On the date indicated above before me personally came each
420of the (...insert number...) electors and legal voters whose
421signatures appear on this petition sheet, who signed the
422petition in my presence and who, being by me duly sworn, each
423for himself or herself, identified himself or herself as the
424same person who signed the petition, and I declare that the
425foregoing information they provided was true."
426
427     Date                         Signature of Witness
428
429     c.  An alteration or correction of information appearing on
430a petition's signature line, other than an uninitialed signature
431and date, does not invalidate such signature. In matters of
432form, this paragraph shall be liberally construed, not
433inconsistent with substantial compliance thereto and the
434prevention of fraud.
435     d.  The appropriately signed petition must be filed with
436the governing body of each component independent special
437district. The petition must be submitted to the supervisors of
438elections of the counties in which the district lands are
439located. The supervisors shall, within 30 business days after
440receipt of the petitions, certify to the governing bodies the
441number of signatures of qualified electors contained on the
442petitions.
443     3.  Upon verification by the supervisors of elections of
444the counties within which component independent special district
445lands are located that 40 percent of the qualified electors have
446petitioned for merger and that all such petitions have been
447executed within 1 year after the date of the initiation of the
448qualified-elector merger process, the governing bodies of each
449component independent special district shall meet within 30
450business days to prepare and approve by resolution a proposed
451elector-initiated merger plan. The proposed plan must include:
452     a.  The name of each component independent special district
453to be merged;
454     b.  The name of the proposed merged independent district;
455     c.  The rights, duties, and obligations of the merged
456independent district;
457     d.  The territorial boundaries of the proposed merged
458independent district;
459     e.  The governmental organization of the proposed merged
460independent district insofar as it concerns elected and
461appointed officials and public employees, along with a
462transitional plan and schedule for elections and appointments of
463officials;
464     f.  A fiscal estimate of the potential cost or savings as a
465result of the merger;
466     g.  Each component independent special district's assets,
467including, but not limited to, real and personal property, and
468the current value thereof;
469     h.  Each component independent special district's
470liabilities and indebtedness, bonded and otherwise, and the
471current value thereof;
472     i.  Terms for the assumption and disposition of existing
473assets, liabilities, and indebtedness of each component
474independent special district, jointly, separately, or in defined
475proportions;
476     j.  Terms for the common administration and uniform
477enforcement of existing laws within the proposed merged
478independent district;
479     k.  The times and places for public hearings on the
480proposed joint merger plan; and
481     l.  The effective date of the proposed merger.
482     4.  The resolution endorsing the proposed elector-initiated
483merger plan must be approved by a majority vote of the governing
484bodies of each component independent special district and must
485be adopted at least 60 business days before any general or
486special election on the proposed elector-initiated plan.
487     5.  Within 5 business days after the governing bodies of
488each component independent special district approve the proposed
489elector-initiated merger plan, the governing bodies shall:
490     a.  Cause a copy of the proposed elector-initiated merger
491plan, along with a descriptive summary of the plan, to be
492displayed and be readily accessible to the public for inspection
493in at least three public places within the territorial limits of
494each component independent special district, unless a component
495independent special district has fewer than three public places,
496in which case the plan must be accessible for inspection in all
497public places within the component independent special district;
498     b.  If applicable, cause the proposed elector-initiated
499merger plan, along with a descriptive summary of the plan and a
500reference to the public places within each component independent
501special district where a copy of the merger plan may be
502examined, to be displayed on a website maintained by each
503district or otherwise on a website maintained by the county or
504municipality in which the districts are located; and
505     c.  Arrange for a descriptive summary of the proposed
506elector-initiated merger plan, and a reference to the public
507places within the district where a copy may be examined, to be
508published in a newspaper of general circulation within the
509component independent special districts at least once each week
510for 4 successive weeks.
511     6.  The governing body of each component independent
512special district shall set a time and place for one or more
513public hearings on the proposed elector-initiated merger plan.
514Each public hearing shall be held on a weekday at least 7
515business days after the day the first advertisement is published
516on the proposed elector-initiated merger plan. The hearing or
517hearings may be held jointly or separately by the governing
518bodies of the component independent special districts. Any
519interested person residing in the respective district shall be
520given a reasonable opportunity to be heard on any aspect of the
521proposed merger at the public hearing.
522     a.  Notice of the public hearing on the proposed elector-
523initiated merger plan must be published pursuant to the notice
524requirements in s. 189.417 and must provide a descriptive
525summary of the elector-initiated merger plan and a reference to
526the public places within the component independent special
527districts where a copy of the plan may be examined.
528     b.  After the final public hearing, the governing bodies of
529each component independent special district may amend the
530proposed elector-initiated merger plan if the amended version
531complies with the notice and public hearing requirements
532provided in this subsection. The governing bodies must approve a
533final version of the merger plan within 60 business days after
534the final hearing.
535     7.  After the final public hearing, the governing bodies
536shall notify the supervisors of elections of the applicable
537counties in which district lands are located of the adoption of
538the resolution by each governing body. The supervisors of
539elections shall schedule a date for the separate referenda for
540each district. The referenda may be held in each district on the
541same day, or on different days, but no more than 20 days apart.
542     a.  Notice of a referendum on the merger of the component
543independent special districts must be provided pursuant to the
544notice requirements in s. 100.342. At a minimum, the notice must
545include:
546     (I)  A brief summary of the resolution and elector-
547initiated merger plan;
548     (II)  A statement as to where a copy of the resolution and
549petition for merger may be examined;
550     (III)  The names of the component independent special
551districts to be merged and a description of their territory;
552     (IV)  The times and places at which the referendum will be
553held; and
554     (V)  Such other matters as may be necessary to call,
555provide for, and give notice of the referendum and to provide
556for the conduct thereof and the canvass of the returns.
557     b.  The referenda must be held in accordance with the
558Florida Election Code and may be held pursuant to ss. 101.6101-
559101.6107. All costs associated with the referenda shall be borne
560by the respective component independent special district.
561     c.  The ballot question in such referendum placed before
562the qualified electors of each component independent special
563district to be merged must be in substantially the following
564form:
565
566     "Shall (...name of component independent special
567district...) and (...name of component independent special
568district or districts...) be merged into (...name of newly
569merged independent district...)?
570     _____YES
571     _____NO"
572
573     d.  If the component independent special districts
574proposing to merge have disparate millage rates, the ballot
575question in the referendum placed before the qualified electors
576of each component independent special district must be in
577substantially the following form:
578
579     "Shall (...name of component independent special
580district...) and (...name of component independent special
581district or districts...) be merged into (...name of newly
582merged independent district...) if the voter-approved maximum
583millage rate within each independent special district will not
584increase absent a subsequent referendum?
585     _____YES
586     _____NO"
587
588     e.  In any referendum held pursuant to this subsection, the
589ballots shall be counted, returns made and canvassed, and
590results certified in the same manner as other elections or
591referenda for the component independent special districts.
592     f.  The merger may not take effect unless a majority of the
593votes cast in each component independent special district are in
594favor of the merger. If one of the component independent special
595districts does not obtain a majority vote, the referendum fails,
596and merger does not take effect.
597     g.  If the merger is approved by a majority of the votes
598cast in each component independent special district, the merged
599district shall notify the Special District Information Program
600pursuant to s. 189.418(2) and the local general-purpose
601governments in which any part of the component independent
602special districts is situated pursuant to s. 189.418(7).
603     h.  If the referendum fails, the merger process under this
604paragraph may not be initiated for the same purpose within 2
605years after the date of the referendum.
606     8.  Component independent special districts merged pursuant
607to an elector-initiated merger plan shall continue to be
608governed as before the merger until the effective date specified
609in the adopted elector-initiated merger plan.
610     (d)  Effective date.-The effective date of the merger shall
611be as provided in the joint merger plan or elector-initiated
612merger plan, as appropriate, and is not contingent upon the
613future act of the Legislature.
614     1.  However, as soon as practicable, the merged independent
615district shall, at its own expense, submit a unified charter for
616the merged district to the Legislature for approval. The unified
617charter must make the powers of the district consistent within
618the merged independent district and repeal the special acts of
619the districts which existed before the merger.
620     2.  Within 30 business days after the effective date of the
621merger, the merged independent district's governing body, as
622indicated in this subsection, shall hold an organizational
623meeting to implement the provisions of the joint merger plan or
624elector-initiated merger plan, as appropriate.
625     (e)  Restrictions during transition period.-Until the
626Legislature formally approves the unified charter pursuant to a
627special act, each component independent special district is
628considered a subunit of the merged independent district subject
629to the following restrictions:
630     1.  During the transition period, the merged independent
631district is limited in its powers and financing capabilities
632within each subunit to those powers that existed within the
633boundaries of each subunit which were previously granted to the
634component independent special district in its existing charter
635before the merger. The merged independent district may not,
636solely by reason of the merger, increase its powers or financing
637capability.
638     2.  During the transition period, the merged independent
639district shall exercise only the legislative authority to levy
640and collect revenues within the boundaries of each subunit which
641was previously granted to the component independent special
642district by its existing charter before the merger, including
643the authority to levy ad valorem taxes, non-ad valorem
644assessments, impact fees, and charges.
645     a.  The merged independent district may not, solely by
646reason of the merger or the legislatively approved unified
647charter, increase ad valorem taxes on property within the
648original limits of a subunit beyond the maximum millage rate
649approved by the electors of the component independent special
650district unless the electors of such subunit approve an increase
651at a subsequent referendum of the subunit's electors. Each
652subunit may be considered a separate taxing unit.
653     b.  The merged independent district may not, solely by
654reason of the merger, charge non-ad valorem assessments, impact
655fees, or other new fees within a subunit which were not
656otherwise previously authorized to be charged.
657     3.  During the transition period, each component
658independent special district of the merged independent district
659must continue to file all information and reports required under
660this chapter as subunits until the Legislature formally approves
661the unified charter pursuant to a special act.
662     4.  The intent of this section is to preserve and transfer
663to the merged independent district all authority that exists
664within each subunit and was previously granted by the
665Legislature and, if applicable, by referendum.
666     (f)  Effect of merger, generally.-On and after the
667effective date of the merger, the merged independent district
668shall be treated and considered for all purposes as one entity
669under the name and on the terms and conditions set forth in the
670joint merger plan or elector-initiated merger plan, as
671appropriate.
672     1.  All rights, privileges, and franchises of each
673component independent special district and all assets, real and
674personal property, books, records, papers, seals, and equipment,
675as well as other things in action, belonging to each component
676independent special district before the merger shall be deemed
677as transferred to and vested in the merged independent district
678without further act or deed.
679     2.  All property, rights-of-way, and other interests are as
680effectually the property of the merged independent district as
681they were of the component independent special district before
682the merger. The title to real estate, by deed or otherwise,
683under the laws of this state vested in any component independent
684special district before the merger may not be deemed to revert
685or be in any way impaired by reason of the merger.
686     3.  The merged independent district is in all respects
687subject to all obligations and liabilities imposed and possesses
688all the rights, powers, and privileges vested by law in other
689similar entities.
690     4.  Upon the effective date of the merger, the joint merger
691plan or elector-initiated merger plan, as appropriate, is
692subordinate in all respects to the contract rights of all
693holders of any securities or obligations of the component
694independent special districts outstanding at the effective date
695of the merger.
696     5.  The new registration of electors is not necessary as a
697result of the merger, but all elector registrations of the
698component independent special districts shall be transferred to
699the proper registration books of the merged independent
700district, and new registrations shall be made as provided by law
701as if no merger had taken place.
702     (g)  Governing body of merged independent district.-
703     1.  From the effective date of the merger until the next
704general election, the governing body of the merged independent
705district shall be comprised of the governing body members of
706each component independent special district, with such members
707serving until the governing body members elected at the next
708general election take office.
709     2.  Beginning with the next general election following the
710effective date of merger, the governing body of the merged
711independent district shall be comprised of five members. The
712office of each governing body member shall be designated by
713seat, which shall be distinguished from other body member seats
714by an assigned numeral: 1, 2, 3, 4, or 5. The governing body
715members that are elected in this initial election following the
716merger shall serve unequal terms of 2 and 4 years in order to
717create staggered membership of the governing body, with:
718     a.  Member seats 1, 3, and 5 being designated for 4-year
719terms; and
720     b.  Member seats 2 and 4 being designated for 2-year terms.
721     3.  In general elections thereafter, all governing body
722members shall serve 4-year terms.
723     (h)  Effect on employees.-Except as otherwise provided by
724law and except for those officials and employees protected by
725tenure of office, civil service provisions, or a collective
726bargaining agreement, upon the effective date of merger, all
727appointive offices and positions existing in all component
728independent special districts involved in the merger are subject
729to the terms of the joint merger plan or elector-initiated
730merger plan, as appropriate. Such plan may provide for instances
731in which there are duplications of positions and for other
732matters such as varying lengths of employee contracts, varying
733pay levels or benefits, different civil service regulations in
734the constituent entities, and differing ranks and position
735classifications for similar positions. For those employees who
736are members of a bargaining unit certified by the Public
737Employees Relations Commission, the requirements of chapter 447
738apply.
739     (i)  Effect on debts, liabilities, and obligations.-
740     1.  All valid and lawful debts and liabilities existing
741against a merged independent district, or which may arise or
742accrue against the merged independent district, which but for
743merger would be valid and lawful debts or liabilities against
744one or more of the component independent special districts, are
745debts against or liabilities of the merged independent district
746and accordingly shall be defrayed and answered to by the merged
747independent district to the same extent, and no further than,
748the component independent special districts would have been
749bound if a merger had not taken place.
750     2.  The rights of creditors and all liens upon the property
751of any of the component independent special districts shall be
752preserved unimpaired. The respective component districts shall
753be deemed to continue in existence to preserve such rights and
754liens, and all debts, liabilities, and duties of any of the
755component districts attach to the merged independent district.
756     3.  All bonds, contracts, and obligations of the component
757independent special districts which exist as legal obligations
758are obligations of the merged independent district, and all such
759obligations shall be issued or entered into by and in the name
760of the merged independent district.
761     (j)  Effect on actions and proceedings.-In any action or
762proceeding pending on the effective date of merger to which a
763component independent special district is a party, the merged
764independent district may be substituted in its place, and the
765action or proceeding may be prosecuted to judgment as if merger
766had not taken place. Suits may be brought and maintained against
767a merged independent district in any state court in the same
768manner as against any other independent special district.
769     (k)  Effect on annexation.-Chapter 171 continues to apply
770to all annexations by a city within the component independent
771special districts' boundaries after merger occurs. Any moneys
772owed to a component independent special district pursuant to s.
773171.093, or any interlocal service boundary agreement as a
774result of annexation predating the merger, shall be paid to the
775merged independent district after merger.
776     (l)  Determination of rights.-If any right, title,
777interest, or claim arises out of a merger or by reason thereof
778which is not determinable by reference to this subsection, the
779joint merger plan or elector-initiated merger plan, as
780appropriate, or otherwise under the laws of this state, the
781governing body of the merged independent district may provide
782therefor in a manner conforming to law.
783     (m)  Exemption.-This subsection does not apply to
784independent special districts whose governing bodies are elected
785by district landowners voting the acreage owned within the
786district.
787     (n)  Preemption.-This subsection preempts any special act
788to the contrary.
789     (6)  INVOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.-
790     (a)  Independent special districts created by special act.-
791If the Legislature or a local general-purpose government seeks
792to merge an active independent special district or districts
793created and operating pursuant to a special act whose governing
794body or governing bodies object by resolution to the merger, the
795merger of the active independent special district or districts
796is not effective until the special act of the Legislature is
797approved at separate referenda of the impacted local governments
798by a majority of the resident electors or landowners voting in
799the same manner by which each independent special district's
800governing body is elected. The special act shall include a plan
801of merger that addresses transition issues such as the effective
802date of the merger, governance, administration, powers,
803pensions, and assumption of all assets and liabilities.
804     (b)  Independent special districts created by a county or
805municipality.-A county or municipality may merge an independent
806special district created by the county or municipality pursuant
807to a referendum or any other procedure by which the independent
808special district was created. However, if the independent
809special district has ad valorem taxation powers, the same
810procedure required to grant the independent special district ad
811valorem taxation powers is required to merge the district.
812     (c)  Referendum expenses.-The political subdivisions
813proposing the involuntary merger of an active independent
814special district shall be responsible for payment of any
815expenses associated with the referendum required under this
816subsection.
817     (d)  Inactive independent special districts.-An independent
818special district that meets any criteria for being declared
819inactive, or that has already been declared inactive, pursuant
820to s. 189.4044 may by merged by special act without a
821referendum.
822     (7)(3)  EXEMPTIONS.-The provisions of This section does
823shall not apply to community development districts implemented
824pursuant to chapter 190 or to water management districts created
825and operated pursuant to chapter 373.
826     Section 2.  Section 191.014, Florida Statutes, is amended
827to read:
828     191.014  District creation and, expansion, and merger.-
829     (1)  New districts may be created only by the Legislature
830under s. 189.404.
831     (2)  The boundaries of a district may be modified,
832extended, or enlarged upon approval or ratification by the
833Legislature.
834     (3)  The merger of a district with all or portions of other
835independent special districts or dependent fire control
836districts is effective only upon ratification by the
837Legislature. A district may not, solely by reason of a merger
838with another governmental entity, increase ad valorem taxes on
839property within the original limits of the district beyond the
840maximum established by the district's enabling legislation,
841unless approved by the electors of the district by referendum.
842     Section 3.  Paragraph (a) of subsection (1) and subsection
843(4) of section 189.4044, Florida Statutes, are amended to read:
844     189.4044  Special procedures for inactive districts.-
845     (1)  The department shall declare inactive any special
846district in this state by documenting that:
847     (a)  The special district meets one of the following
848criteria:
849     1.  The registered agent of the district, the chair of the
850governing body of the district, or the governing body of the
851appropriate local general-purpose government notifies the
852department in writing that the district has taken no action for
8532 or more years;
854     2.  Following an inquiry from the department, the
855registered agent of the district, the chair of the governing
856body of the district, or the governing body of the appropriate
857local general-purpose government notifies the department in
858writing that the district has not had a governing board or a
859sufficient number of governing board members to constitute a
860quorum for 2 or more years or the registered agent of the
861district, the chair of the governing body of the district, or
862the governing body of the appropriate local general-purpose
863government fails to respond to the department's inquiry within
86421 days;
865     3.  The department determines, pursuant to s. 189.421, that
866the district has failed to file any of the reports listed in s.
867189.419; or
868     4.  The district has not had a registered office and agent
869on file with the department for 1 or more years; or
870     5.  The governing body of a special district provides
871documentation to the department that it has unanimously adopted
872a resolution declaring the special district inactive. The
873special district shall be responsible for payment of any
874expenses associated with its dissolution.
875     (4)  The entity that created a special district declared
876inactive under this section must dissolve the special district
877by repealing its enabling laws or by other appropriate means.
878Any special district declared inactive pursuant to subparagraph
879(1)(a)5. may be dissolved without a referendum.
880     Section 4.  This act shall take effect July 1, 2012.


CODING: Words stricken are deletions; words underlined are additions.