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