CS/CS/CS/HB 713

1
A bill to be entitled
2An act relating to special districts; amending s.
3189.4042, F.S.; revising provisions relating to merger and
4dissolution procedures for special districts; providing
5definitions; requiring the merger or dissolution of
6dependent special districts created by a special act to be
7effectuated by the Legislature; providing for the merger
8or dissolution of inactive special districts by special
9act without referenda; requiring involuntary dissolution
10procedures for independent special districts to include
11referenda; providing for the dissolution of inactive
12independent special districts by special act; providing
13for local governments to assume indebtedness of, and
14receive title to property owned by, special districts
15under certain circumstances; providing for the merger of
16certain independent special districts by the Legislature;
17providing procedures and requirements for the voluntary
18merger of contiguous independent special districts;
19limiting the authority of the merged district to levy and
20collect revenue until a unified charter is approved by the
21Legislature; providing for the effect of the merger on
22employees, legal liabilities, obligations, proceedings,
23and annexation; providing for the determination of certain
24rights by the governing body of the merged district;
25providing that such provisions preempt certain special
26acts; providing procedures and requirements for the
27involuntary merger of independent special districts;
28providing exemptions from merger and dissolution
29procedures; amending s. 191.014, F.S.; deleting a
30provision relating to the conditions under which the
31merger of independent special districts or dependent fire
32control districts with other special districts is
33effective and the conditions under which a merged district
34is authorized to increase ad valorem taxes; amending s.
35189.4044, F.S.; revising criteria by which special
36districts are declared inactive by a governing body;
37authorizing such districts to be dissolved without a
38referendum; providing an effective date.
39
40Be It Enacted by the Legislature of the State of Florida:
41
42     Section 1.  Section 189.4042, Florida Statutes, is amended
43to read:
44     189.4042  Merger and dissolution procedures.-
45     (1)  DEFINITIONS.-As used in this section, the term:
46     (a)  "Component independent special district" means an
47independent special district that proposes to be merged into a
48merged independent district, or an independent special district
49as it existed before its merger into the merged independent
50district of which it is now a part.
51     (b)  "Elector-initiated merger plan" means the merger plan
52of two or more independent special districts, a majority of
53whose qualified electors have elected to merge, which outlines
54the terms and agreements for the official merger of the
55districts and is finalized and approved by the governing bodies
56of the districts pursuant to this section.
57     (c)  "Governing body" means the governing body of the
58independent special district in which the general legislative,
59governmental, or public powers of the district are vested and by
60authority of which the official business of the district is
61conducted.
62     (d)  "Initiative" means the filing of a petition containing
63a proposal for a referendum to be placed on the ballot for
64election.
65     (e)  "Joint merger plan" means the merger plan that is
66adopted by resolution of the governing bodies of two or more
67independent special districts that outlines the terms and
68agreements for the official merger of the districts and that is
69finalized and approved by the governing bodies pursuant to this
70section.
71     (f)  "Merged independent district" means a single
72independent special district that results from a successful
73merger of two or more independent special districts pursuant to
74this section.
75     (g)  "Merger" means the combination of two or more
76contiguous independent special districts resulting in a newly
77created merged independent district that assumes jurisdiction
78over all of the component independent special districts.
79     (h)  "Merger plan" means a written document that contains
80the terms, agreements, and information regarding the merger of
81two or more independent special districts.
82     (i)  "Proposed elector-initiated merger plan" means a
83written document that contains the terms and information
84regarding the merger of two or more independent special
85districts and that accompanies the petition initiated by the
86qualified electors of the districts but that is not yet
87finalized and approved by the governing bodies of each component
88independent special district pursuant to this section.
89     (j)  "Proposed joint merger plan" means a written document
90that contains the terms and information regarding the merger of
91two or more independent special districts and that has been
92prepared pursuant to a resolution of the governing bodies of the
93districts but that is not yet finalized and approved by the
94governing bodies of each component independent special district
95pursuant to this section.
96     (k)  "Qualified elector" means an individual at least 18
97years of age who is a citizen of the United States, a permanent
98resident of this state, and a resident of the district who
99registers with the supervisor of elections of a county within
100which the district lands are located when the registration books
101are open.
102     (2)(1)  MERGER OR DISSOLUTION OF A DEPENDENT SPECIAL
103DISTRICT.-
104     (a)  The merger or dissolution of a dependent special
105district districts may be effectuated by an ordinance of the
106general-purpose local governmental entity wherein the
107geographical area of the district or districts is located.
108However, a county may not dissolve a special district that is
109dependent to a municipality or vice versa, or a dependent
110district created by special act.
111     (b)  The merger or dissolution of a dependent special
112district created and operating pursuant to a special act may be
113effectuated only by further act of the Legislature unless
114otherwise provided by general law.
115     (c)  A dependent special district that meets any criteria
116for being declared inactive, or that has already been declared
117inactive, pursuant to s. 189.4044 may be dissolved or merged by
118special act without a referendum.
119     (d)(b)  A copy of any ordinance and of any changes to a
120charter affecting the status or boundaries of one or more
121special districts shall be filed with the Special District
122Information Program within 30 days after of such activity.
123     (3)(2)  DISSOLUTION OF AN INDEPENDENT SPECIAL DISTRICT.-
124     (a)  Voluntary dissolution.-The voluntary merger or
125dissolution of an independent special district or a dependent
126district created and operating pursuant to a special act may
127only be effectuated only by the Legislature unless otherwise
128provided by general law.
129     (b)  Involuntary dissolution.-If a local general-purpose
130government seeks to dissolve an active independent special
131district created and operating pursuant to a special act whose
132governing body objects by resolution to the dissolution, the
133dissolution of the active independent special district is not
134effective until a special act of the Legislature is approved by
135a majority of the resident electors of the district or
136landowners voting in the same manner by which the independent
137special district's governing body is elected. This paragraph
138also applies if an independent special district's governing body
139elects to dissolve the district by less than a supermajority
140vote of the governing body. The political subdivisions proposing
141the involuntary dissolution of an active independent special
142district shall be responsible for payment of any expenses
143associated with the referendum required under this paragraph.
144     (c)  Inactive independent special districts.-An independent
145special district that meets any criteria for being declared
146inactive, or that has already been declared inactive, pursuant
147to s. 189.4044 may be dissolved by special act without a
148referendum. If an inactive independent special district was
149created by a county or municipality through a referendum, the
150county or municipality that created the district may dissolve
151the district after publishing notice as described in s.
152189.4044. If an independent special district was created by a
153county or municipality by referendum or any other procedure, the
154county or municipality that created the district may merge or
155dissolve the district pursuant to a referendum or any other the
156same procedure by which the independent district was created.
157However, if the for any independent special district that has ad
158valorem taxation powers, the same procedure required to grant
159the such independent district ad valorem taxation powers is
160shall also be required to dissolve or merge the district.
161     (d)  Debts and assets.-Financial allocations of the assets
162and indebtedness of a dissolved independent special district
163shall be pursuant to s. 189.4045.
164     (4)  LEGISLATIVE MERGER OF INDEPENDENT SPECIAL DISTRICTS.-
165The Legislature may merge independent special districts created
166and operating pursuant to special act.
167     (5)  VOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.-Two
168or more contiguous independent special districts created by
169special act which have similar functions and elected governing
170bodies may elect to merge into a single independent district
171through the act of merging the component independent special
172districts.
173     (a)  Initiation.-Merger proceedings may commence by:
174     1.  A joint resolution of the governing bodies of each
175independent special district which endorses a proposed joint
176merger plan; or
177     2.  A qualified elector initiative.
178     (b)  Joint merger plan by resolution.-The governing bodies
179of two or more contiguous independent special districts may, by
180joint resolution, endorse a proposed joint merger plan to
181commence proceedings to merge the districts pursuant to this
182subsection.
183     1.  The proposed joint merger plan must specify:
184     a.  The name of each component independent special district
185to be merged;
186     b.  The name of the proposed merged independent district;
187     c.  The rights, duties, and obligations of the proposed
188merged independent district;
189     d.  The territorial boundaries of the proposed merged
190independent district;
191     e.  The governmental organization of the proposed merged
192independent district insofar as it concerns elected and
193appointed officials and public employees, along with a
194transitional plan and schedule for elections and appointments of
195officials;
196     f.  A fiscal estimate of the potential cost or savings as a
197result of the merger;
198     g.  Each component independent special district's assets,
199including, but not limited to, real and personal property, and
200the current value thereof;
201     h.  Each component independent special district's
202liabilities and indebtedness, bonded and otherwise, and the
203current value thereof;
204     i.  Terms for the assumption and disposition of existing
205assets, liabilities, and indebtedness of each component
206independent special district jointly, separately, or in defined
207proportions;
208     j.  Terms for the common administration and uniform
209enforcement of existing laws within the proposed merged
210independent district;
211     k.  The times and places for public hearings on the
212proposed joint merger plan;
213     l.  The times and places for a referendum in each component
214independent special district on the proposed joint merger plan,
215along with the referendum language to be presented for approval;
216and
217     m.  The effective date of the proposed merger.
218     2.  The resolution endorsing the proposed joint merger plan
219must be approved by a majority vote of the governing bodies of
220each component independent special district and adopted at least
22160 business days before any general or special election on the
222proposed joint merger plan.
223     3.  Within 5 business days after the governing bodies
224approve the resolution endorsing the proposed joint merger plan,
225the governing bodies must:
226     a.  Cause a copy of the proposed joint merger plan, along
227with a descriptive summary of the plan, to be displayed and be
228readily accessible to the public for inspection in at least
229three public places within the territorial limits of each
230component independent special district, unless a component
231independent special district has fewer than three public places,
232in which case the plan must be accessible for inspection in all
233public places within the component independent special district;
234     b.  If applicable, cause the proposed joint merger plan,
235along with a descriptive summary of the plan and a reference to
236the public places within each component independent special
237district where a copy of the merger plan may be examined, to be
238displayed on a website maintained by each district or on a
239website maintained by the county or municipality in which the
240districts are located; and
241     c.  Arrange for a descriptive summary of the proposed joint
242merger plan, and a reference to the public places within the
243district where a copy may be examined, to be published in a
244newspaper of general circulation within the component
245independent special districts at least once each week for 4
246successive weeks.
247     4.  The governing body of each component independent
248special district shall set a time and place for one or more
249public hearings on the proposed joint merger plan. Each public
250hearing shall be held on a weekday at least 7 business days
251after the day the first advertisement is published on the
252proposed joint merger plan. The hearing or hearings may be held
253jointly or separately by the governing bodies of the component
254independent special districts. Any interested person residing in
255the respective district shall be given a reasonable opportunity
256to be heard on any aspect of the proposed merger at the public
257hearing.
258     a.  Notice of the public hearing addressing the resolution
259for the proposed joint merger plan must be published pursuant to
260the notice requirements in s. 189.417 and must provide a
261descriptive summary of the proposed joint merger plan and a
262reference to the public places within the component independent
263special districts where a copy of the plan may be examined.
264     b.  After the final public hearing, the governing bodies of
265each component independent special district may amend the
266proposed joint merger plan if the amended version complies with
267the notice and public hearing requirements provided in this
268subsection. Thereafter, the governing bodies may approve a final
269version of the joint merger plan or decline to proceed further
270with the merger. Approval by the governing bodies of the final
271version of the joint merger plan must occur within 60 business
272days after the final hearing.
273     5.  After the final public hearing, the governing bodies
274shall notify the supervisors of elections of the applicable
275counties in which district lands are located of the adoption of
276the resolution by each governing body. The supervisors of
277elections shall schedule a separate referendum for each
278component independent special district. The referenda may be
279held in each district on the same day, or on different days, but
280no more than 20 days apart.
281     a.  Notice of a referendum on the merger of independent
282special districts must be provided pursuant to the notice
283requirements in s. 100.342. At a minimum, the notice must
284include:
285     (I)  A brief summary of the resolution and joint merger
286plan;
287     (II)  A statement as to where a copy of the resolution and
288joint merger plan may be examined;
289     (III)  The names of the component independent special
290districts to be merged and a description of their territory;
291     (IV)  The times and places at which the referendum will be
292held; and
293     (V)  Such other matters as may be necessary to call,
294provide for, and give notice of the referendum and to provide
295for the conduct thereof and the canvass of the returns.
296     b.  The referenda must be held in accordance with the
297Florida Election Code and may be held pursuant to ss. 101.6101-
298101.6107. All costs associated with the referenda shall be borne
299by the respective component independent special district.
300     c.  The ballot question in such referendum placed before
301the qualified electors of each component independent special
302district to be merged must be in substantially the following
303form:
304
305     "Shall (...name of component independent special
306district...) and (...name of component independent special
307district or districts...) be merged into (...name of newly
308merged independent district...)?
309     _____YES
310     _____NO"
311
312     d.  If the component independent special districts
313proposing to merge have disparate millage rates, the ballot
314question in the referendum placed before the qualified electors
315of each component independent special district must be in
316substantially the following form:
317
318     "Shall (...name of component independent special
319district...) and (...name of component independent special
320district or districts...) be merged into (...name of newly
321merged independent district...) if the voter-approved maximum
322millage rate within each independent special district will not
323increase absent a subsequent referendum?
324     _____YES
325     _____NO"
326
327     e.  In any referendum held pursuant to this subsection, the
328ballots shall be counted, returns made and canvassed, and
329results certified in the same manner as other elections or
330referenda for the component independent special districts.
331     f.  The merger may not take effect unless a majority of the
332votes cast in each component independent special district are in
333favor of the merger. If one of the component districts does not
334obtain a majority vote, the referendum fails, and merger does
335not take effect.
336     g.  If the merger is approved by a majority of the votes
337cast in each component independent special district, the merged
338independent district is created. Upon approval, the merged
339independent district shall notify the Special District
340Information Program pursuant to s. 189.418(2) and the local
341general-purpose governments in which any part of the component
342independent special districts is situated pursuant to s.
343189.418(7).
344     h.  If the referendum fails, the merger process under this
345paragraph may not be initiated for the same purpose within 2
346years after the date of the referendum.
347     6.  Component independent special districts merged pursuant
348to a joint merger plan by resolution shall continue to be
349governed as before the merger until the effective date specified
350in the adopted joint merger plan.
351     (c)  Qualified elector-initiated merger plan.-The qualified
352electors of two or more contiguous independent special districts
353may commence a merger proceeding by each filing a petition with
354the governing body of their respective independent special
355district proposing to be merged. The petition must contain the
356signatures of at least 40 percent of the qualified electors of
357each component independent special district and must be
358submitted to the appropriate component independent special
359district governing body no later than 1 year after the start of
360the qualified elector-initiated merger process.
361     1.  The petition must comply with, and be circulated in,
362the following form:
363
364     PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER
365
366     We, the undersigned electors and legal voters of (...name
367of independent special district...), qualified to vote at the
368next general or special election, respectfully petition that
369there be submitted to the electors and legal voters of (...name
370of independent special district or districts proposed to be
371merged...), for their approval or rejection at a referendum held
372for that purpose, a proposal to merge (...name of component
373independent special district...) and (...name of component
374independent special district or districts...).
375
376     In witness thereof, we have signed our names on the date
377indicated next to our signatures.
378
379     Date          Name (print under signature)          Home Address
380     ___________________________________________________________
381     ___________________________________________________________
382
383     2.  The petition must be validated by a signed statement by
384a witness who is a duly qualified elector of one of the
385component independent special districts, a notary public, or
386another person authorized to take acknowledgements.
387     a.  A statement that is signed by a witness who is a duly
388qualified elector of the respective district shall be accepted
389for all purposes as the equivalent of an affidavit. Such
390statement must be in substantially the following form:
391
392     "I, (...name of witness...), state that I am a duly
393qualified voter of (...name of independent special district...).
394Each of the (...insert number...) persons who have signed this
395petition sheet has signed his or her name in my presence on the
396dates indicated above and identified himself or herself to be
397the same person who signed the sheet. I understand that this
398statement will be accepted for all purposes as the equivalent of
399an affidavit and, if it contains a materially false statement,
400shall subject me to the penalties of perjury."
401
402     Date                     Signature of Witness
403
404     b.  A statement that is signed by a notary public or
405another person authorized to take acknowledgements must be in
406substantially the following form:
407
408     "On the date indicated above before me personally came each
409of the (...insert number...) electors and legal voters whose
410signatures appear on this petition sheet, who signed the
411petition in my presence and who, being by me duly sworn, each
412for himself or herself, identified himself or herself as the
413same person who signed the petition, and I declare that the
414foregoing information they provided was true."
415
416     Date                         Signature of Witness
417
418     c.  An alteration or correction of information appearing on
419a petition's signature line, other than an uninitialed signature
420and date, does not invalidate such signature. In matters of
421form, this paragraph shall be liberally construed, not
422inconsistent with substantial compliance thereto and the
423prevention of fraud.
424     d.  The appropriately signed petition must be filed with
425the governing body of each component independent special
426district. The petition must be submitted to the supervisors of
427elections of the counties in which the district lands are
428located. The supervisors shall, within 30 business days after
429receipt of the petitions, certify to the governing bodies the
430number of signatures of qualified electors contained on the
431petitions.
432     3.  Upon verification by the supervisors of elections of
433the counties within which component independent special district
434lands are located that 40 percent of the qualified electors have
435petitioned for merger and that all such petitions have been
436executed within 1 year after the date of the initiation of the
437qualified-elector merger process, the governing bodies of each
438component independent special district shall meet within 30
439business days to prepare and approve by resolution a proposed
440elector-initiated merger plan. The proposed plan must include:
441     a.  The name of each component independent special district
442to be merged;
443     b.  The name of the proposed merged independent district;
444     c.  The rights, duties, and obligations of the merged
445independent district;
446     d.  The territorial boundaries of the proposed merged
447independent district;
448     e.  The governmental organization of the proposed merged
449independent district insofar as it concerns elected and
450appointed officials and public employees, along with a
451transitional plan and schedule for elections and appointments of
452officials;
453     f.  A fiscal estimate of the potential cost or savings as a
454result of the merger;
455     g.  Each component independent special district's assets,
456including, but not limited to, real and personal property, and
457the current value thereof;
458     h.  Each component independent special district's
459liabilities and indebtedness, bonded and otherwise, and the
460current value thereof;
461     i.  Terms for the assumption and disposition of existing
462assets, liabilities, and indebtedness of each component
463independent special district, jointly, separately, or in defined
464proportions;
465     j.  Terms for the common administration and uniform
466enforcement of existing laws within the proposed merged
467independent district;
468     k.  The times and places for public hearings on the
469proposed joint merger plan; and
470     l.  The effective date of the proposed merger.
471     4.  The resolution endorsing the proposed elector-initiated
472merger plan must be approved by a majority vote of the governing
473bodies of each component independent special district and must
474be adopted at least 60 business days before any general or
475special election on the proposed elector-initiated plan.
476     5.  Within 5 business days after the governing bodies of
477each component independent special district approve the proposed
478elector-initiated merger plan, the governing bodies shall:
479     a.  Cause a copy of the proposed elector-initiated merger
480plan, along with a descriptive summary of the plan, to be
481displayed and be readily accessible to the public for inspection
482in at least three public places within the territorial limits of
483each component independent special district, unless a component
484independent special district has fewer than three public places,
485in which case the plan must be accessible for inspection in all
486public places within the component independent special district;
487     b.  If applicable, cause the proposed elector-initiated
488merger plan, along with a descriptive summary of the plan and a
489reference to the public places within each component independent
490special district where a copy of the merger plan may be
491examined, to be displayed on a website maintained by each
492district or otherwise on a website maintained by the county or
493municipality in which the districts are located; and
494     c.  Arrange for a descriptive summary of the proposed
495elector-initiated merger plan, and a reference to the public
496places within the district where a copy may be examined, to be
497published in a newspaper of general circulation within the
498component independent special districts at least once each week
499for 4 successive weeks.
500     6.  The governing body of each component independent
501special district shall set a time and place for one or more
502public hearings on the proposed elector-initiated merger plan.
503Each public hearing shall be held on a weekday at least 7
504business days after the day the first advertisement is published
505on the proposed elector-initiated merger plan. The hearing or
506hearings may be held jointly or separately by the governing
507bodies of the component independent special districts. Any
508interested person residing in the respective district shall be
509given a reasonable opportunity to be heard on any aspect of the
510proposed merger at the public hearing.
511     a.  Notice of the public hearing on the proposed elector-
512initiated merger plan must be published pursuant to the notice
513requirements in s. 189.417 and must provide a descriptive
514summary of the elector-initiated merger plan and a reference to
515the public places within the component independent special
516districts where a copy of the plan may be examined.
517     b.  After the final public hearing, the governing bodies of
518each component independent special district may amend the
519proposed elector-initiated merger plan if the amended version
520complies with the notice and public hearing requirements
521provided in this subsection. The governing bodies must approve a
522final version of the merger plan within 60 business days after
523the final hearing.
524     7.  After the final public hearing, the governing bodies
525shall notify the supervisors of elections of the applicable
526counties in which district lands are located of the adoption of
527the resolution by each governing body. The supervisors of
528elections shall schedule a date for the separate referenda for
529each district. The referenda may be held in each district on the
530same day, or on different days, but no more than 20 days apart.
531     a.  Notice of a referendum on the merger of the component
532independent special districts must be provided pursuant to the
533notice requirements in s. 100.342. At a minimum, the notice must
534include:
535     (I)  A brief summary of the resolution and elector-
536initiated merger plan;
537     (II)  A statement as to where a copy of the resolution and
538petition for merger may be examined;
539     (III)  The names of the component independent special
540districts to be merged and a description of their territory;
541     (IV)  The times and places at which the referendum will be
542held; and
543     (V)  Such other matters as may be necessary to call,
544provide for, and give notice of the referendum and to provide
545for the conduct thereof and the canvass of the returns.
546     b.  The referenda must be held in accordance with the
547Florida Election Code and may be held pursuant to ss. 101.6101-
548101.6107. All costs associated with the referenda shall be borne
549by the respective component independent special district.
550     c.  The ballot question in such referendum placed before
551the qualified electors of each component independent special
552district to be merged must be in substantially the following
553form:
554
555     "Shall (...name of component independent special
556district...) and (...name of component independent special
557district or districts...) be merged into (...name of newly
558merged independent district...)?
559     _____YES
560     _____NO"
561
562     d.  If the component independent special districts
563proposing to merge have disparate millage rates, the ballot
564question in the referendum placed before the qualified electors
565of each component independent special district must be in
566substantially the following form:
567
568     "Shall (...name of component independent special
569district...) and (...name of component independent special
570district or districts...) be merged into (...name of newly
571merged independent district...) if the voter-approved maximum
572millage rate within each independent special district will not
573increase absent a subsequent referendum?
574     _____YES
575     _____NO"
576
577     e.  In any referendum held pursuant to this subsection, the
578ballots shall be counted, returns made and canvassed, and
579results certified in the same manner as other elections or
580referenda for the component independent special districts.
581     f.  The merger may not take effect unless a majority of the
582votes cast in each component independent special district are in
583favor of the merger. If one of the component independent special
584districts does not obtain a majority vote, the referendum fails,
585and merger does not take effect.
586     g.  If the merger is approved by a majority of the votes
587cast in each component independent special district, the merged
588district shall notify the Special District Information Program
589pursuant to s. 189.418(2) and the local general-purpose
590governments in which any part of the component independent
591special districts is situated pursuant to s. 189.418(7).
592     h.  If the referendum fails, the merger process under this
593paragraph may not be initiated for the same purpose within 2
594years after the date of the referendum.
595     8.  Component independent special districts merged pursuant
596to an elector-initiated merger plan shall continue to be
597governed as before the merger until the effective date specified
598in the adopted elector-initiated merger plan.
599     (d)  Effective date.-The effective date of the merger shall
600be as provided in the joint merger plan or elector-initiated
601merger plan, as appropriate, and is not contingent upon the
602future act of the Legislature.
603     1.  However, as soon as practicable, the merged independent
604district shall, at its own expense, submit a unified charter for
605the merged district to the Legislature for approval. The unified
606charter must make the powers of the district consistent within
607the merged independent district and repeal the special acts of
608the districts which existed before the merger.
609     2.  Within 30 business days after the effective date of the
610merger, the merged independent district's governing body, as
611indicated in this subsection, shall hold an organizational
612meeting to implement the provisions of the joint merger plan or
613elector-initiated merger plan, as appropriate.
614     (e)  Restrictions during transition period.-Until the
615Legislature formally approves the unified charter pursuant to a
616special act, each component independent special district is
617considered a subunit of the merged independent district subject
618to the following restrictions:
619     1.  During the transition period, the merged independent
620district is limited in its powers and financing capabilities
621within each subunit to those powers that existed within the
622boundaries of each subunit which were previously granted to the
623component independent special district in its existing charter
624before the merger. The merged independent district may not,
625solely by reason of the merger, increase its powers or financing
626capability.
627     2.  During the transition period, the merged independent
628district shall exercise only the legislative authority to levy
629and collect revenues within the boundaries of each subunit which
630was previously granted to the component independent special
631district by its existing charter before the merger, including
632the authority to levy ad valorem taxes, non-ad valorem
633assessments, impact fees, and charges.
634     a.  The merged independent district may not, solely by
635reason of the merger, increase ad valorem taxes on property
636within the original limits of a subunit beyond the maximum ad
637valorem rate approved by the electors of the component
638independent special district. For purposes of s. 2, Art. VII of
639the State Constitution, each subunit may be considered a
640separate taxing unit. The merged independent district may levy
641an ad valorem millage rate within a subunit, if applicable, only
642up to the millage rate that was previously approved by the
643electors of the component independent special district unless an
644increase in the millage rate is approved pursuant to general
645law.
646     b.  The merged independent district may not, solely by
647reason of the merger, charge non-ad valorem assessments, impact
648fees, or other new fees within a subunit which were not
649otherwise previously authorized to be charged.
650     3.  During the transition period, each component
651independent special district of the merged independent district
652must continue to file all information and reports required under
653this chapter as subunits until the Legislature formally approves
654the unified charter pursuant to a special act.
655     4.  The intent of this section is to preserve and transfer
656to the merged independent district all authority that exists
657within each subunit and was previously granted by the
658Legislature and, if applicable, by referendum.
659     (f)  Effect of merger, generally.-On and after the
660effective date of the merger, the merged independent district
661shall be treated and considered for all purposes as one entity
662under the name and on the terms and conditions set forth in the
663joint merger plan or elector-initiated merger plan, as
664appropriate.
665     1.  All rights, privileges, and franchises of each
666component independent special district and all assets, real and
667personal property, books, records, papers, seals, and equipment,
668as well as other things in action, belonging to each component
669independent special district before the merger shall be deemed
670as transferred to and vested in the merged independent district
671without further act or deed.
672     2.  All property, rights-of-way, and other interests are as
673effectually the property of the merged independent district as
674they were of the component independent special district before
675the merger. The title to real estate, by deed or otherwise,
676under the laws of this state vested in any component independent
677special district before the merger may not be deemed to revert
678or be in any way impaired by reason of the merger.
679     3.  The merged independent district is in all respects
680subject to all obligations and liabilities imposed and possesses
681all the rights, powers, and privileges vested by law in other
682similar entities.
683     4.  Upon the effective date of the merger, the joint merger
684plan or elector-initiated merger plan, as appropriate, is
685subordinate in all respects to the contract rights of all
686holders of any securities or obligations of the component
687independent special districts outstanding at the effective date
688of the merger.
689     5.  The new registration of electors is not necessary as a
690result of the merger, but all elector registrations of the
691component independent special districts shall be transferred to
692the proper registration books of the merged independent
693district, and new registrations shall be made as provided by law
694as if no merger had taken place.
695     (g)  Governing body of merged independent district.-
696     1.  From the effective date of the merger until the next
697general election, the governing body of the merged independent
698district shall be comprised of the governing body members of
699each component independent special district, with such members
700serving until the governing body members elected at the next
701general election take office.
702     2.  Beginning with the next general election following the
703effective date of merger, the governing body of the merged
704independent district shall be comprised of five members. The
705office of each governing body member shall be designated by
706seat, which shall be distinguished from other body member seats
707by an assigned numeral: 1, 2, 3, 4, or 5. The governing body
708members that are elected in this initial election following the
709merger shall serve unequal terms of 2 and 4 years in order to
710create staggered membership of the governing body, with:
711     a.  Member seats 1, 3, and 5 being designated for 4-year
712terms; and
713     b.  Member seats 2 and 4 being designated for 2-year terms.
714     3.  In general elections thereafter, all governing body
715members shall serve 4-year terms.
716     (h)  Effect on employees.-Except as otherwise provided by
717law and except for those officials and employees protected by
718tenure of office, civil service provisions, or a collective
719bargaining agreement, upon the effective date of merger, all
720appointive offices and positions existing in all component
721independent special districts involved in the merger are subject
722to the terms of the joint merger plan or elector-initiated
723merger plan, as appropriate. Such plan may provide for instances
724in which there are duplications of positions and for other
725matters such as varying lengths of employee contracts, varying
726pay levels or benefits, different civil service regulations in
727the constituent entities, and differing ranks and position
728classifications for similar positions. For those employees who
729are members of a bargaining unit certified by the Public
730Employees Relations Commission, the requirements of chapter 447
731apply.
732     (i)  Effect on debts, liabilities, and obligations.-
733     1.  All valid and lawful debts and liabilities existing
734against a merged independent district, or which may arise or
735accrue against the merged independent district, which but for
736merger would be valid and lawful debts or liabilities against
737one or more of the component independent special districts, are
738debts against or liabilities of the merged independent district
739and accordingly shall be defrayed and answered to by the merged
740independent district to the same extent, and no further than,
741the component independent special districts would have been
742bound if a merger had not taken place.
743     2.  The rights of creditors and all liens upon the property
744of any of the component independent special districts shall be
745preserved unimpaired. The respective component districts shall
746be deemed to continue in existence to preserve such rights and
747liens, and all debts, liabilities, and duties of any of the
748component districts attach to the merged independent district.
749     3.  All bonds, contracts, and obligations of the component
750independent special districts which exist as legal obligations
751are obligations of the merged independent district, and all such
752obligations shall be issued or entered into by and in the name
753of the merged independent district.
754     (j)  Effect on actions and proceedings.-In any action or
755proceeding pending on the effective date of merger to which a
756component independent special district is a party, the merged
757independent district may be substituted in its place, and the
758action or proceeding may be prosecuted to judgment as if merger
759had not taken place. Suits may be brought and maintained against
760a merged independent district in any state court in the same
761manner as against any other independent special district.
762     (k)  Effect on annexation.-Chapter 171 continues to apply
763to all annexations by a city within the component independent
764special districts' boundaries after merger occurs. Any moneys
765owed to a component independent special district pursuant to s.
766171.093, or any interlocal service boundary agreement as a
767result of annexation predating the merger, shall be paid to the
768merged independent district after merger.
769     (l)  Determination of rights.-If any right, title,
770interest, or claim arises out of a merger or by reason thereof
771which is not determinable by reference to this subsection, the
772joint merger plan or elector-initiated merger plan, as
773appropriate, or otherwise under the laws of this state, the
774governing body of the merged independent district may provide
775therefor in a manner conforming to law.
776     (m)  Exemption.-This subsection does not apply to
777independent special districts whose governing bodies are elected
778by district landowners voting the acreage owned within the
779district.
780     (n)  Preemption.-This subsection preempts any special act
781to the contrary.
782     (6)  INVOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.-
783If a local general-purpose government seeks to merge an active
784independent special district or districts created and operating
785pursuant to a special act whose governing body or governing
786bodies object by resolution to the merger, the merger of the
787active independent special district or districts is not
788effective until the special act of the Legislature is approved
789at separate referenda of the impacted local governments by a
790majority of the resident electors or landowners voting in the
791same manner by which each independent special district's
792governing body is elected. The special act shall include a plan
793of merger that addresses transition issues such as the effective
794date of the merger, governance, administration, powers,
795pensions, and assumption of all assets and liabilities.
796     (a)  The political subdivisions proposing the involuntary
797merger of an active independent special district shall be
798responsible for payment of any expenses associated with the
799referendum required under this subsection.
800     (b)  An independent special district that meets any
801criteria for being declared inactive, or that has already been
802declared inactive, pursuant to s. 189.4044 may by merged by
803special act without a referendum.
804     (7)(3)  EXEMPTIONS.-The provisions of This section does
805shall not apply to community development districts implemented
806pursuant to chapter 190 or to water management districts created
807and operated pursuant to chapter 373.
808     Section 2.  Section 191.014, Florida Statutes, is amended
809to read:
810     191.014  District creation and, expansion, and merger.-
811     (1)  New districts may be created only by the Legislature
812under s. 189.404.
813     (2)  The boundaries of a district may be modified,
814extended, or enlarged upon approval or ratification by the
815Legislature.
816     (3)  The merger of a district with all or portions of other
817independent special districts or dependent fire control
818districts is effective only upon ratification by the
819Legislature. A district may not, solely by reason of a merger
820with another governmental entity, increase ad valorem taxes on
821property within the original limits of the district beyond the
822maximum established by the district's enabling legislation,
823unless approved by the electors of the district by referendum.
824     Section 3.  Paragraph (a) of subsection (1) and subsection
825(4) of section 189.4044, Florida Statutes, are amended to read:
826     189.4044  Special procedures for inactive districts.-
827     (1)  The department shall declare inactive any special
828district in this state by documenting that:
829     (a)  The special district meets one of the following
830criteria:
831     1.  The registered agent of the district, the chair of the
832governing body of the district, or the governing body of the
833appropriate local general-purpose government notifies the
834department in writing that the district has taken no action for
8352 or more years;
836     2.  Following an inquiry from the department, the
837registered agent of the district, the chair of the governing
838body of the district, or the governing body of the appropriate
839local general-purpose government notifies the department in
840writing that the district has not had a governing board or a
841sufficient number of governing board members to constitute a
842quorum for 2 or more years or the registered agent of the
843district, the chair of the governing body of the district, or
844the governing body of the appropriate local general-purpose
845government fails to respond to the department's inquiry within
84621 days; or
847     3.  The department determines, pursuant to s. 189.421, that
848the district has failed to file any of the reports listed in s.
849189.419; or
850     4.  The governing body of a special district provides
851documentation to the department that it has unanimously adopted
852a resolution declaring the special district inactive. The
853special district shall be responsible for payment of any
854expenses associated with its dissolution.
855     (4)  The entity that created a special district declared
856inactive under this section must dissolve the special district
857by repealing its enabling laws or by other appropriate means.
858Any special district declared inactive pursuant to subparagraph
859(1)(a)4. may be dissolved without a referendum.
860     Section 4.  This act shall take effect July 1, 2011.


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