Florida Senate - 2011         (PROPOSED COMMITTEE BILL) SPB 7072
       
       
       
       FOR CONSIDERATION By the Committee on Community Affairs
       
       
       
       
       578-02137B-11                                         20117072__
    1                        A bill to be entitled                      
    2         An act relating to special districts; amending s.
    3         189.4042, F.S.; providing for the merger of special
    4         districts; providing definitions; providing that the
    5         merger or dissolution of dependent districts created
    6         by special act may be effectuated only by the
    7         Legislature; providing that the Legislature may merge
    8         independent special districts created by special act;
    9         providing for the voluntary merger of independent
   10         districts pursuant to a joint resolution of the
   11         governing bodies of the districts or upon initiative
   12         of the district electors; providing the procedures
   13         that must be adhered to, including notice and public
   14         hearings; requiring the development and adoption of a
   15         merger plan; requiring a referendum; providing for the
   16         effective date of the merger; providing that
   17         legislative approval of the merger is not required but
   18         that the charter of the new district must be submitted
   19         for approval; providing restrictions on the merged
   20         district until the charter is approved; providing that
   21         the ad valorem millage rate in each component
   22         independent special district is levied only up to the
   23         millage rate previously approved by the electors of
   24         the district; providing for the effect of the merger
   25         on the property, employees, legal liabilities, and
   26         annexations of the component districts; providing for
   27         the election of the governing board of the merged
   28         district; providing an exemption for independent
   29         special districts whose governing bodies are elected
   30         on a one-acre/one-vote basis; amending s. 191.014,
   31         F.S.; deleting a provision relating to the merger of
   32         independent special districts or dependent fire
   33         control districts; providing an effective date.
   34  
   35  Be It Enacted by the Legislature of the State of Florida:
   36  
   37         Section 1. Section 189.4042, Florida Statutes, is amended
   38  to read:
   39         189.4042 Merger and dissolution procedures.—
   40         (1) DEFINITIONS.—As used in this section, the term:
   41         (a) “Component independent special district” means an
   42  independent special district that proposes to be merged into a
   43  merged independent district, or an independent special district
   44  as it existed before its merger into the merged independent
   45  district of which it is now a part.
   46         (b) “Elector-initiated merger plan” means the merger plan
   47  of two or more independent special districts, a majority of
   48  whose qualified electors have elected to merge, which outlines
   49  the terms and agreements for the official merger of the
   50  districts, and is finalized and approved by the governing bodies
   51  of the districts pursuant to this section.
   52         (c) “Governing body” means the governing body of the
   53  independent special district in which the general legislative,
   54  governmental, or public powers of the district are vested and by
   55  authority of which the official business of the district is
   56  conducted.
   57         (d) “Initiative” means the filing of a petition containing
   58  a proposal for a referendum to be placed on the ballot for
   59  election.
   60         (e) “Joint merger plan” means the merger plan that is
   61  adopted by resolution of the governing bodies of two or more
   62  independent special districts, that outlines the terms and
   63  agreements for the official merger of the districts, and that is
   64  finalized and approved by the governing bodies pursuant to this
   65  section.
   66         (f) “Merged independent district” means a single
   67  independent special district that results from a successful
   68  merger of two or more independent special districts pursuant to
   69  this section.
   70         (g) “Merger” means the combination of two or more
   71  independent special districts that combine to become a newly
   72  created merged independent district that assumes jurisdiction
   73  over all of the component independent special districts.
   74         (h) “Merger plan” means a written document that contains
   75  the terms, agreements, and information regarding the merger of
   76  two or more independent special districts.
   77         (i) “Proposed elector-initiated merger plan” means a
   78  written document that contains the terms and information
   79  regarding the merger of two or more independent special
   80  districts and that accompanies the petition initiated by the
   81  qualified electors of the districts, but that is not yet
   82  finalized and approved by the governing bodies of each component
   83  independent special district pursuant to this section.
   84         (j) “Proposed joint merger plan” means a written document
   85  that contains the terms and information regarding the merger of
   86  two or more independent special districts and that has been
   87  prepared pursuant to a resolution of the governing bodies of the
   88  districts, but that is not yet finalized and approved by the
   89  governing bodies of each component independent special district
   90  pursuant to this section.
   91         (k) “Qualified elector” means an individual at least 18
   92  years of age who is a citizen of the United States, a permanent
   93  resident of this state, a freeholder or freeholder’s spouse, and
   94  a resident of the district who registers with the supervisor of
   95  elections of a county within which the district lands are
   96  located when the registration books are open.
   97         (2) MERGER OR DISSOLUTION OF A DEPENDENT SPECIAL DISTRICT.
   98         (a) The merger or dissolution of a dependent special
   99  district districts may be effectuated by an ordinance of the
  100  general-purpose local governmental entity wherein the
  101  geographical area of the district or districts is located.
  102  However, a county may not dissolve a special district that is
  103  dependent to a municipality or vice versa, or a dependent
  104  district created by special act.
  105         (b) The merger or dissolution of a dependent district
  106  created and operating pursuant to a special act may be
  107  effectuated only by further act of the Legislature unless
  108  otherwise provided by general law.
  109         (c)(b) A copy of any ordinance and of any changes to a
  110  charter affecting the status or boundaries of one or more
  111  special districts shall be filed with the Special District
  112  Information Program within 30 days after of such activity.
  113         (3)(2)DISSOLUTION OF AN INDEPENDENT SPECIAL DISTRICT.—
  114         (a) The merger or dissolution of an independent special
  115  district or a dependent district created and operating pursuant
  116  to a special act may only be effectuated only by the Legislature
  117  unless otherwise provided by general law.
  118         (b) If an inactive independent special district was created
  119  by a county or municipality through a referendum, the county or
  120  municipality that created the district may dissolve the district
  121  after publishing notice as described in s. 189.4044. If an
  122  independent special district was created by a county or
  123  municipality by referendum or any other procedure, the county or
  124  municipality that created the district may merge or dissolve the
  125  district pursuant to a referendum or any other the same
  126  procedure by which the independent district was created.
  127  However, if the for any independent special district that has ad
  128  valorem taxation powers, the same procedure required to grant
  129  the such independent district ad valorem taxation powers is
  130  shall also be required to dissolve or merge the district.
  131         (4) LEGISLATIVE MERGER OF INDEPENDENT SPECIAL DISTRICTS.
  132  The Legislature may merge independent special districts created
  133  and operating pursuant to special act.
  134         (5) VOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.—Two
  135  or more independent special districts created by special act
  136  which have similar functions and elected governing bodies may
  137  elect to merge into a single independent district through the
  138  act of merging the component independent special districts
  139         (a) Initiation.—Merger proceedings may commence by:
  140         1. A joint resolution of the governing bodies of each
  141  independent special district which endorses a proposed joint
  142  merger plan; or
  143         2. A qualified elector initiative.
  144         (b) Joint merger plan by resolution.—The governing bodies
  145  of two or more independent special districts may, by joint
  146  resolution, endorse a proposed joint merger plan to commence
  147  proceedings to merge the districts pursuant to this subsection.
  148         1. The proposed joint merger plan must specify:
  149         a. The name of each component independent special district
  150  to be merged;
  151         b. The name of the proposed merged independent district;
  152         c. The rights, duties, and obligations of the proposed
  153  merged independent district;
  154         d. The territorial boundaries of the proposed merged
  155  independent district;
  156         e. The governmental organization of the proposed merged
  157  independent district insofar as it concerns elected and
  158  appointed officials and public employees, along with a
  159  transitional plan and schedule for elections and appointments of
  160  officials;
  161         f. A fiscal estimate of the potential cost or savings as a
  162  result of the merger;
  163         g. Each component independent special district’s assets,
  164  including, but not limited to, real and personal property, and
  165  the current value thereof;
  166         h. Each component independent special district’s
  167  liabilities and indebtedness, bonded and otherwise, and the
  168  current value thereof;
  169         i. Terms for the assumption and disposition of existing
  170  assets, liabilities, and indebtedness of each component
  171  independent special district jointly, separately, or in defined
  172  proportions;
  173         j. Terms for the common administration and uniform
  174  enforcement of existing laws within the proposed merged
  175  independent district;
  176         k. The times and places for public hearings on the proposed
  177  joint merger plan;
  178         l. The times and places for a referendum in each component
  179  independent special district on the proposed joint merger plan,
  180  along with the referendum language to be presented for approval;
  181  and
  182         m. The effective date of the proposed merger.
  183         2. The resolution endorsing the proposed joint merger plan
  184  must be approved by a majority vote of the governing bodies of
  185  each component independent special district and adopted at least
  186  60 business days before any general or special election on the
  187  proposed joint merger plan.
  188         3. Within 5 business days after the governing bodies
  189  approve the resolution endorsing the proposed joint merger plan,
  190  the governing bodies must:
  191         a. Cause a copy of the proposed joint merger plan, along
  192  with a descriptive summary of the plan, to be displayed and be
  193  readily accessible to the public for inspection in at least
  194  three public places within the territorial limits of each
  195  component independent special district, unless a component
  196  district has fewer than three public places, in which case the
  197  plan must be accessible for inspection in all public places
  198  within the component independent special district;
  199         b. If applicable, cause the proposed joint merger plan,
  200  along with a descriptive summary of the plan and a reference to
  201  the public places within each component independent special
  202  district where a copy of the merger plan may be examined, to be
  203  displayed on a website maintained by each district or on a
  204  website maintained by the county or municipality in which the
  205  districts are located; and
  206         c. Arrange for a descriptive summary of the proposed joint
  207  merger plan and a reference to the public places within the
  208  district where a copy may be examined, to be published in a
  209  newspaper of general circulation within the component
  210  independent special districts at least once each week for 4
  211  successive weeks.
  212         4. The governing body of each component independent special
  213  district shall set a time and place for one or more public
  214  hearings on the proposed joint merger plan. The public hearing
  215  shall be held on a weekday at least 7 business days after the
  216  day the first advertisement is published on the proposed joint
  217  merger plan. The hearings may be held jointly or separately by
  218  the governing bodies of each component district. Any interested
  219  person residing in the respective district shall be given a
  220  reasonable opportunity to be heard on any aspect of the proposed
  221  merger at the public hearing.
  222         a. Notice of the public hearing addressing the resolution
  223  for the proposed joint merger plan must be published pursuant to
  224  the notice requirements under s. 189.417 and must provide a
  225  descriptive summary of the proposed joint merger plan and a
  226  reference to the public places within the component independent
  227  special districts where a copy of the plan may be examined.
  228         b. After the final public hearing, the governing bodies of
  229  each component independent special district may amend the
  230  proposed joint merger plan if the amended version complies with
  231  the notice and public hearing requirements provided in this
  232  subsection. Thereafter, the governing bodies may approve a final
  233  version of the joint merger plan or decline to proceed further
  234  with the merger. Approval by the governing bodies of the final
  235  version of the joint merger plan must occur within 60 business
  236  days after the final hearing.
  237         5. After the final public hearing, the governing bodies
  238  shall notify the supervisors of elections of the applicable
  239  counties in which district lands are located of the adoption of
  240  the resolution by each governing body. The supervisors of
  241  elections shall schedule separate referendums for each component
  242  independent special district. The referendums may be held in
  243  each district on the same day, or on different days, but no more
  244  than 20 days apart.
  245         a. Notice of a referendum on the merger of independent
  246  special districts must be provided pursuant to the notice
  247  requirements in s. 100.342. At a minimum, the notice must
  248  include:
  249         (I) A brief summary of the resolution and joint merger
  250  plan;
  251         (II)A statement as to where a copy of the resolution and
  252  joint merger plan may be examined;
  253         (III)The names of the component independent special
  254  districts and a description of their territory;
  255         (IV)The times and places at which the referendum will be
  256  held; and
  257         (V)Such other matters as may be necessary to call, provide
  258  for, and give notice of the referendum and to provide for the
  259  conduct thereof and the canvass of the returns.
  260         b. The referendums must be held in accordance with the
  261  Florida Election Code and may be held pursuant to ss. 101.6101
  262  101.6107. All costs associated with the referendums shall be
  263  borne by the respective component independent special district.
  264         c. The ballot question in such referendum placed before the
  265  qualified electors of each component independent special
  266  district to be merged must be in substantially the following
  267  form:
  268  
  269         “Shall (...name of component independent special
  270  district...) and (...name of component independent special
  271  district or districts...) be merged into (...name of new merged
  272  independent district...)?
  273         _____YES
  274         _____NO”
  275  
  276         d. If the component independent special districts have
  277  disparate millage rates, the ballot question in the referendum
  278  placed before the qualified electors of each component district
  279  must be in substantially the following form:
  280  
  281         “Shall (...name of component independent special
  282  district...) and (...name of component independent special
  283  district or districts...) be merged into (...name of new merged
  284  independent district...), if the voter-approved maximum millage
  285  rate within each independent special district will not increase
  286  absent a subsequent referendum?
  287         _____YES
  288         _____NO”
  289  
  290         e. In any referendum held pursuant to this subsection, the
  291  ballots shall be counted, returns made and canvassed, and
  292  results certified in the same manner as other elections or
  293  referendums for the component independent special districts.
  294         f. The merger may not take effect unless a majority of the
  295  votes cast in each component independent special district are in
  296  favor of the merger. If one of the component districts does not
  297  obtain a majority vote, the referendum fails, and merger does
  298  not take effect.
  299         g. If merger is approved by a majority of the votes cast in
  300  each component independent special district, the merged
  301  independent district is created. Upon approval, the merged
  302  district shall notify the Special District Information Program
  303  pursuant to s. 189.418(2) and the local general-purpose
  304  governments in which any part of the component districts is
  305  situated pursuant to s. 189.418(7).
  306         h. If the referendum fails, the merger process under this
  307  paragraph may not be initiated for the same purpose within 2
  308  years after the date of the referendum.
  309         6. Component independent special districts merged pursuant
  310  to a joint merger plan by resolution shall continue to be
  311  governed as before the merger until the effective date specified
  312  in the adopted joint merger plan.
  313         (c) Qualified elector-initiated merger plan.—The qualified
  314  electors of two or more independent special districts may
  315  commence a merger proceeding by each filing a petition with the
  316  governing bodies of each independent special district proposing
  317  to be merged. The petition must contain the signatures of at
  318  least 20 percent of the qualified electors of each component
  319  independent special district.
  320         1. The petition must comply with, and be circulated in, the
  321  following form:
  322  
  323         PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER
  324  
  325         We, the undersigned electors and legal voters of (...name
  326  of independent special district...), qualified to vote at the
  327  next general or special election, respectfully petition that
  328  there be submitted to the electors and legal voters of (...name
  329  of independent special district or districts proposed to be
  330  merged...), for their approval or rejection at a referendum held
  331  for that purpose, a proposal to merge (...name of component
  332  independent special district...) and (...name of component
  333  independent special district or districts...)
  334  
  335         In witness thereof, we have signed our names on the date
  336  indicated next to our signatures.
  337  
  338         Date		Name (print under signature)		Home Address
  339         ___________________________________________________________
  340         ___________________________________________________________
  341  
  342         2. The petition must be validated by a signed statement by
  343  a witness who is a duly qualified elector of one of the
  344  component independent special districts, a notary public, or
  345  another person authorized to take acknowledgements.
  346         a. A statement that is signed by a witness who is a duly
  347  qualified elector of the respective district shall be accepted
  348  for all purposes as the equivalent of an affidavit. Such
  349  statement must be in substantially the following form:
  350  
  351         “I, (...name of witness...), state that I am a duly
  352  qualified voter of (...name of independent special district...).
  353  Each of the (...insert number...) persons who have signed this
  354  petition sheet has signed his or her name in my presence on the
  355  dates indicated above and identified himself or herself to be
  356  the same person who signed the sheet. I understand that this
  357  statement will be accepted for all purposes as the equivalent of
  358  an affidavit, and if it contains a materially false statement,
  359  shall subject me to the penalties of perjury.”
  360  
  361         Date 				Signature of Witness
  362  
  363         b. A statement that is signed be a notary public or another
  364  person authorized to take acknowledgements must be in
  365  substantially the following form:
  366  
  367         “On the date indicated above before me personally came each
  368  of the (...insert number...) electors and legal voters whose
  369  signatures appear on this petition sheet, who signed the
  370  petition in my presence and who, being by me duly sworn, each
  371  for himself or herself, identified himself or herself as the
  372  same person who signed the petition, and I declare that the
  373  foregoing information they provided was true.”
  374  
  375         Date					Signature of Witness
  376  
  377         c. An alteration or correction of information appearing on
  378  a petition’s signature line, other than an uninitialed signature
  379  and date, does not invalidate such signature. In matters of
  380  form, this paragraph shall be liberally construed, not
  381  inconsistent with substantial compliance thereto and the
  382  prevention of fraud.
  383         d. The appropriately signed petition must be filed with the
  384  governing board of each component independent special district.
  385  The petition must be submitted to the supervisors of elections
  386  of the counties in which the district lands are located. The
  387  supervisors shall, within 30 business days after receipt of the
  388  petitions, certify to the governing boards the number of
  389  signatures of qualified electors contained on the petitions.
  390         3. Upon verification by the supervisors of election of the
  391  counties within which component independent special district
  392  lands are located that 20 percent of the qualified electors have
  393  petitioned for merger, the governing bodies of each component
  394  district shall meet within 30 business days to prepare and
  395  approve by resolution a proposed elector-initiated merger plan.
  396  The proposed plan must include:
  397         a. The name of each component independent special district
  398  to be merged;
  399         b. The name of the proposed merged independent district;
  400         c. The rights, duties, and obligations of the merged
  401  independent district;
  402         d. The territorial boundaries of the proposed merged
  403  independent district;
  404         e. The governmental organization of the proposed merged
  405  independent district insofar as it concerns elected and
  406  appointed officials and public employees, along with a
  407  transitional plan and schedule for elections and appointments of
  408  officials;
  409         f. A fiscal estimate of the potential cost or savings as a
  410  result of the merger;
  411         g. Each component independent special district’s assets,
  412  including, but not limited to, real and personal property, and
  413  the current value thereof;
  414         h. Each component independent special district’s
  415  liabilities and indebtedness, bonded and otherwise, and the
  416  current value thereof;
  417         i. Terms for the assumption and disposition of existing
  418  assets, liabilities, and indebtedness of each component
  419  independent special district, jointly, separately, or in defined
  420  proportions;
  421         j. Terms for the common administration and uniform
  422  enforcement of existing laws within the proposed merged
  423  independent district;
  424         k. The times and places for public hearings on the proposed
  425  joint merger plan; and
  426         l. The effective date of the proposed merger.
  427         4. The resolution endorsing the proposed elector-initiated
  428  merger plan must be approved by a majority vote of the governing
  429  bodies of each component independent special district and must
  430  be adopted at least 60 business days before any general or
  431  special election on the proposed elector-initiated plan.
  432         5. Within 5 business days after the governing bodies of
  433  each component independent special district approve the proposed
  434  elector-initiated merger plan, the governing bodies shall:
  435         a. Cause a copy of the proposed elector-initiated merger
  436  plan, along with a descriptive summary of the plan, to be
  437  displayed and be readily accessible to the public for inspection
  438  in at least three public places within the territorial limits of
  439  each component independent special district, unless a component
  440  district has fewer than three public places, in which case the
  441  plan must be accessible for inspection in all public places
  442  within the component independent special district;
  443         b. If applicable, cause the proposed elector-initiated
  444  merger plan, along with a descriptive summary of the plan and a
  445  reference to the public places within each component independent
  446  special district where a copy of the merger plan may be
  447  examined, to be displayed on a website maintained by each
  448  district or otherwise on a website maintained by the county or
  449  municipality in which the districts are located; and
  450         c. Arrange a descriptive summary of the proposed elector
  451  initiated merger plan and a reference to the public places
  452  within the district where a copy may be examined, to be
  453  published in a newspaper of general circulation within the
  454  component independent special districts at least once each week
  455  for 4 successive weeks.
  456         6. The governing body of each component independent special
  457  district shall set the time and place for one or more public
  458  hearings on the proposed elector-initiated merger plan. The
  459  public hearing shall be held on a weekday at least 7 business
  460  days after the day the first advertisement is published on the
  461  proposed elector-initiated merger plan. The hearing or hearings
  462  may be held jointly or separately by the governing bodies of
  463  each component independent special district. Any interested
  464  person residing in the respective district shall be given a
  465  reasonable opportunity to be heard on any aspect of the proposed
  466  merger at the public hearing.
  467         a. Notice of the public hearing on the proposed elector
  468  initiated merger plan must be published pursuant to the notice
  469  requirements provided in s. 189.417 and must provide a
  470  descriptive summary of the elector-initiated merger plan and a
  471  reference to the places within the component independent special
  472  districts where a copy of the plan may be examined.
  473         b. After the final public hearing, the governing bodies of
  474  each component independent special district may amend the
  475  proposed elector-initiated merger plan if the amended version
  476  complies with the notice and public hearing requirements
  477  provided in this subsection. The governing bodies must approve a
  478  final version of the merger plan within 60 business days after
  479  the final hearing.
  480         7. After the final public hearing, the governing bodies
  481  shall notify the supervisors of elections of the applicable
  482  counties in which district lands are located of the adoption of
  483  the resolution by each component independent special district.
  484  The supervisors of elections shall schedule a date for the
  485  separate referendums for each district. The referendums may be
  486  held in each district on the same day, or on different days, but
  487  no more than 20 days apart.
  488         a. Notice of a referendum on the merger of the component
  489  independent special districts must be provided pursuant to the
  490  notice requirements in s. 100.342. At a minimum, the notice must
  491  include:
  492         (I) A brief summary of the resolution and elector-initiated
  493  merger plan;
  494         (II) A statement as to where a copy of the resolution and
  495  petition for merger may be examined;
  496         (III) The names of the component independent special
  497  districts to be merged and a description of their territory;
  498         (IV) The times and places at which the referendum will be
  499  held; and
  500         (V) Such other matters as may be necessary to call, provide
  501  for, and give notice of the referendum and to provide for the
  502  conduct thereof and the canvass of the returns.
  503         b. The referendums must be held in accordance to the
  504  Florida Election Code and may be held pursuant to ss. 101.6101
  505  101.6107. All costs associated with the referendums shall be
  506  borne by the respective component independent special district.
  507         c. The ballot question in such referendum placed before the
  508  qualified electors of each component independent special
  509  district must be in substantially the following form:
  510  
  511         “Shall (...name of component independent special
  512  district...) and (...name of component independent special
  513  district or districts...) be merged into (...name of new merged
  514  independent district...)?
  515         _____YES
  516         _____NO”
  517  
  518         d. If the component independent special districts proposing
  519  to merge have disparate millage rates, the ballot question in
  520  such referendum placed before the qualified electors of each
  521  component special district must be in substantially the
  522  following form:
  523  
  524         “Shall (...name of component independent special
  525  district...) and (...name of component independent special
  526  district or districts...) be merged into (...name of new merged
  527  independent district...), if the voter-approved maximum millage
  528  rate within each independent special district will not increase
  529  absent a subsequent referendum?
  530  
  531         _____YES
  532         _____NO”
  533  
  534         e. In any referendum held pursuant to this subsection, the
  535  ballots shall be counted, returns made and canvassed, and
  536  results certified in the same manner as other elections or
  537  referendums for the component independent special districts.
  538         f. The merger may not take effect unless a majority of the
  539  votes cast in each component independent special district are in
  540  favor of the merger. If one of the component independent special
  541  districts does not obtain a majority vote, the referendum fails,
  542  and merger does not take effect.
  543         g. If merger is approved by a majority of the votes cast in
  544  each component independent special district, the merged district
  545  shall notify the Special District Information Program pursuant
  546  to s. 189.418(2) and the local general-purpose governments in
  547  which any part of the component independent special districts is
  548  situated pursuant to s. 189.418(7).
  549         h. If the referendum fails, the merger process specified by
  550  this paragraph may not be initiated for the same purpose within
  551  2 years after the date of the referendum.
  552         8. Component independent special districts merged pursuant
  553  to an elector-initiated merger plan shall continue to be
  554  governed as before the merger until the effective date specified
  555  in the adopted elector-initiated merger plan.
  556         (d) Effective date.—The effective date of the merger shall
  557  be as provided in the joint merger plan or elector-initiated
  558  merger plan, as appropriate, and is not contingent upon the
  559  future act of the Legislature.
  560         1. However, as soon as practicable, the merged independent
  561  district shall, at its own expense, submit a unified charter for
  562  the merged district to the Legislature for approval. The unified
  563  charter must make the powers of the district consistent within
  564  the merged independent district and repeal the special acts of
  565  the districts which existed before the merger.
  566         2. Within 30 business days after the effective date of the
  567  merger, the merged independent district’s governing board, as
  568  indicated in this subsection, shall hold an organizational
  569  meeting to implement the provisions of the joint merger plan or
  570  elector-initiated merger plan, as appropriate.
  571         (e) Restrictions during transition period.—Until the
  572  Legislature formally approves the unified charter pursuant to a
  573  special act, each component independent special district is
  574  considered a subunit of the merged independent district subject
  575  to the following restrictions:
  576         1. During the transition period, the merged independent
  577  district is limited in its powers and financing capabilities
  578  within each subunit to those powers that existed within the
  579  boundaries of each subunit which were previously granted to the
  580  component independent special district in its existing charter
  581  before the merger. The merged independent district may not,
  582  solely by reason of the merger, increase its powers or financing
  583  capability.
  584         2. During the transition period, the merged independent
  585  district shall exercise only the legislative authority to levy
  586  and collect revenues within the boundaries of each subunit which
  587  was previously granted to the component independent special
  588  district by its existing charter before the merger, including
  589  the authority to levy ad valorem taxes, non-ad valorem
  590  assessments, impact fees, and charges.
  591         a. The merged independent district may not, solely by
  592  reason of the merger, increase ad valorem taxes on property
  593  within the original limits of a subunit beyond the maximum ad
  594  valorem rate approved by the electors of the component
  595  independent special district. For purposes of s. 2, Art. VII of
  596  the State Constitution, each subunit may be considered a
  597  separate taxing unit. The merged independent district may levy
  598  an ad valorem millage rate within a subunit, if applicable, only
  599  up to the millage rate that was previously approved by the
  600  electors of the component independent special district unless an
  601  increase in the millage rate is approved pursuant to state law.
  602         b. The merged independent district may not, solely by
  603  reason of the merger, charge non-ad valorem assessments, impact
  604  fees, or other new fees within a subunit which were not
  605  otherwise previously authorized to be charged.
  606         3. During the transition period, each component independent
  607  special district of the merged independent district must
  608  continue to file all information and reports required under this
  609  chapter as subunits until the Legislature formally approves the
  610  unified charter pursuant to a special act.
  611         4. The intent of this section is to preserve and transfer
  612  all authority to the merged independent district which exists
  613  within each subunit and was previously granted by the
  614  Legislature and, if applicable, by referendum.
  615         (f) Effect of merger, generally.—On and after the effective
  616  date of the merger, the merged independent district shall be
  617  treated and considered for all purposes as one entity under the
  618  name and on the terms and conditions set for in the joint merger
  619  plan or elector-initiated merger plan, as appropriate.
  620         1. All rights, privileges, and franchises of each component
  621  independent special district and all assets, real and personal
  622  property, books, records, papers, seals and equipment, as well
  623  as other things in action, belonging to each component
  624  independent special district before merger, shall be deemed as
  625  transferred to and vested in the merged independent district
  626  without further act or deed.
  627         2. All property, rights-of-way, and other interests are as
  628  effectually the property of the merged independent district as
  629  they were of the component independent special district before
  630  the merger. The title to real estate, by deed or otherwise,
  631  under the laws of this state vested in any component independent
  632  special district before the merger, may not be deemed to revert
  633  or be in any way impaired by reason of the merger.
  634         3. The merged independent district is in all respects
  635  subject to all obligations and liabilities imposed and possess
  636  all the rights, powers, and privileges vested by law in other
  637  similar entities.
  638         4. Upon the effective date of the merger, the joint merger
  639  plan or elector-initiated merger plan, as appropriate, is
  640  subordinate in all respects to the contract rights of all
  641  holders of any securities or obligations of the component
  642  independent special districts outstanding at the effective date
  643  of the merger.
  644         5. The new registration of electors is not necessary as a
  645  result of the merger, but all elector registrations of the
  646  component independent special districts shall be transferred to
  647  the proper registration books of the merged independent
  648  district, and new registrations shall be made as provided by law
  649  as if no merger had taken place.
  650         (g) Governing board of merged independent district.
  651         1. From the effective date of the merger until the next
  652  general election, the governing board of the merged independent
  653  district shall be comprised of the governing board members of
  654  each component independent special district, with such members
  655  serving until the governing board members elected at the next
  656  general election take office.
  657         2. Beginning with the next general election following the
  658  effective date of merger, the governing board of the merged
  659  independent district shall be comprised of five members. The
  660  office of each governing board member shall be designated by
  661  seat, which shall be distinguished from other board member seats
  662  by an assigned numeral: 1, 2, 3, 4, or 5. The governing board
  663  members that are elected in this initial election following the
  664  merger shall serve unequal terms of 2 and 4 years in order to
  665  create staggered membership of the governing board, with:
  666         a. Board member seats 1, 3, and 5 being designated for 4
  667  year terms; and
  668         b. Board member seats 2 and 4 being designated for 2-year
  669  terms.
  670         3. In general elections thereafter, all governing board
  671  members shall serve 4-year terms.
  672         (h) Effect on employees.—Except as otherwise provided by
  673  law and except for those officials and employees protected by
  674  tenure of office, civil service provisions, or a collective
  675  bargaining agreement, upon the effective date of merger, all
  676  appointive offices and positions existing in all component
  677  independent special districts involved in the merger are subject
  678  to the terms of the joint merger plan or elector-initiated
  679  merger plan, as appropriate. Such plan may provide for instances
  680  in which there are duplications of positions, and for other
  681  matters such as varying lengths of employee contracts, varying
  682  pay levels or benefits, different civil service regulations in
  683  the constituent entities, and differing ranks and position
  684  classifications for similar positions. For those employees who
  685  are members of a bargaining unit certified by the Public
  686  Employees Relations Commission, the requirements of chapter 447
  687  apply.
  688         (i) Debts, liabilities, and obligations.
  689         1. All valid and lawful debts and liabilities existing
  690  against a merged independent district, or which may arise or
  691  accrue against the merged independent district, which but for
  692  merger would be valid and lawful debts or liabilities against
  693  one or more of the component independent special districts, are
  694  debts against or liabilities of the merged independent district
  695  and accordingly shall be defrayed and answered to by the merged
  696  independent district to the same extent, and no further than,
  697  the component independent special districts would have been
  698  bound if a merger had not taken place.
  699         2. The rights of creditors and all liens upon the property
  700  of any of the component independent special districts shall be
  701  preserved unimpaired. The respective component districts shall
  702  be deemed to continue in existence to preserve such rights and
  703  liens, and all debts, liabilities, and duties of any of the
  704  component districts attach to the merged independent district.
  705         3. All bonds, contracts, and obligations of the component
  706  independent special districts which exist as legal obligations
  707  are obligations of the merged independent district, and all such
  708  obligations shall be issued or entered into by and in the name
  709  of the merged independent district.
  710         (j) Effect on actions and proceedings.—In any action or
  711  proceeding pending on the effective date of merger to which a
  712  component independent special district is a party, the merged
  713  independent district may be substituted in its place, and the
  714  action or proceeding may be prosecuted to judgment as if merger
  715  had not taken place. Suits may be brought and maintained against
  716  a merged independent district in any state court in the same
  717  manner as against any other independent special district.
  718         (k) Annexation.—Chapter 171 continues to apply to all
  719  annexations by a city within the component independent special
  720  districts’ boundaries after merger occurs. Any moneys owed to a
  721  component district pursuant to s. 171.093, or any interlocal
  722  service boundary agreement as a result of annexation predating
  723  the merger, shall be paid to the merged independent district
  724  after merger.
  725         (l) Determination of rights.—If any right, title, interest,
  726  or claim arises out of a merger or by reason thereof which is
  727  not determinable by reference to the provisions in this
  728  subsection, the joint merger plan or elector-initiated merger
  729  plan, as appropriate, or otherwise under the laws of this state,
  730  the governing body of the merged independent district may
  731  provide therefor in a manner conforming to law.
  732         (m) Exemption.—This subsection does not apply to
  733  independent special districts whose governing bodies are elected
  734  on a one-acre/one-vote basis.
  735         (n) Preemption.This subsection preempts any special act to
  736  the contrary.
  737         (6)(3)EXEMPTIONS.—The provisions of This section does
  738  shall not apply to community development districts implemented
  739  pursuant to chapter 190 or to water management districts created
  740  and operated pursuant to chapter 373.
  741         Section 2. Section 191.014, Florida Statutes, is amended to
  742  read:
  743         191.014 District creation and, expansion, and merger.—
  744         (1) New districts may be created only by the Legislature
  745  under s. 189.404.
  746         (2) The boundaries of a district may be modified, extended,
  747  or enlarged upon approval or ratification by the Legislature.
  748         (3) The merger of a district with all or portions of other
  749  independent special districts or dependent fire control
  750  districts is effective only upon ratification by the
  751  Legislature. A district may not, solely by reason of a merger
  752  with another governmental entity, increase ad valorem taxes on
  753  property within the original limits of the district beyond the
  754  maximum established by the district’s enabling legislation,
  755  unless approved by the electors of the district by referendum.
  756         Section 3. This act shall take effect July 1, 2011.