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 joint resolution of the governing bodies of each
178independent special district which endorses a proposed joint
179merger plan.
180     (b)  Joint merger plan by resolution.-The governing bodies
181of two or more contiguous independent special districts may, by
182joint resolution, endorse a proposed joint merger plan to
183commence proceedings to merge the districts pursuant to this
184subsection.
185     1.  The proposed joint merger plan must specify:
186     a.  The name of each component independent special district
187to be merged;
188     b.  The name of the proposed merged independent district;
189     c.  The rights, duties, and obligations of the proposed
190merged independent district;
191     d.  The territorial boundaries of the proposed merged
192independent district;
193     e.  The governmental organization of the proposed merged
194independent district insofar as it concerns elected and
195appointed officials and public employees, along with a
196transitional plan and schedule for elections and appointments of
197officials;
198     f.  A fiscal estimate of the potential cost or savings as a
199result of the merger;
200     g.  Each component independent special district's assets,
201including, but not limited to, real and personal property, and
202the current value thereof;
203     h.  Each component independent special district's
204liabilities and indebtedness, bonded and otherwise, and the
205current value thereof;
206     i.  Terms for the assumption and disposition of existing
207assets, liabilities, and indebtedness of each component
208independent special district jointly, separately, or in defined
209proportions;
210     j.  Terms for the common administration and uniform
211enforcement of existing laws within the proposed merged
212independent district;
213     k.  The times and places for public hearings on the
214proposed joint merger plan;
215     l.  The times and places for a referendum in each component
216independent special district on the proposed joint merger plan,
217along with the referendum language to be presented for approval;
218and
219     m.  The effective date of the proposed merger.
220     2.  The resolution endorsing the proposed joint merger plan
221must be approved by a majority vote of the governing bodies of
222each component independent special district and adopted at least
223business days before any general or special election on the
224proposed joint merger plan.
225     3.  Within 5 business days after the governing bodies
226approve the resolution endorsing the proposed joint merger plan,
227the governing bodies must:
228     a.  Cause a copy of the proposed joint merger plan, along
229with a descriptive summary of the plan, to be displayed and be
230readily accessible to the public for inspection in at least
231three public places within the territorial limits of each
232component independent special district, unless a component
233independent special district has fewer than three public places,
234in which case the plan must be accessible for inspection in all
235public places within the component independent special district;
236     b.  If applicable, cause the proposed joint merger plan,
237along with a descriptive summary of the plan and a reference to
238the public places within each component independent special
239district where a copy of the merger plan may be examined, to be
240displayed on a website maintained by each district or on a
241website maintained by the county or municipality in which the
242districts are located; and
243     c.  Arrange for a descriptive summary of the proposed joint
244merger plan, and a reference to the public places within the
245district where a copy may be examined, to be published in a
246newspaper of general circulation within the component
247independent special districts at least once each week for 4
248successive weeks.
249     4.  The governing body of each component independent
250special district shall set a time and place for one or more
251public hearings on the proposed joint merger plan. Each public
252hearing shall be held on a weekday at least 7 business days
253after the day the first advertisement is published on the
254proposed joint merger plan. The hearing or hearings may be held
255jointly or separately by the governing bodies of the component
256independent special districts. Any interested person residing in
257the respective district shall be given a reasonable opportunity
258to be heard on any aspect of the proposed merger at the public
259hearing.
260     a.  Notice of the public hearing addressing the resolution
261for the proposed joint merger plan must be published pursuant to
262the notice requirements in s. 189.417 and must provide a
263descriptive summary of the proposed joint merger plan and a
264reference to the public places within the component independent
265special districts where a copy of the plan may be examined.
266     b.  After the final public hearing, the governing bodies of
267each component independent special district may amend the
268proposed joint merger plan if the amended version complies with
269the notice and public hearing requirements provided in this
270subsection. Thereafter, the governing bodies may approve a final
271version of the joint merger plan or decline to proceed further
272with the merger. Approval by the governing bodies of the final
273version of the joint merger plan must occur within business days
274after the final hearing.
275     5.  After the final public hearing, the governing bodies
276shall notify the supervisors of elections of the applicable
277counties in which district lands are located of the adoption of
278the resolution by each governing body. The supervisors of
279elections shall schedule a separate referendum for each
280component independent special district. The referenda may be
281held in each district on the same day, or on different days, but
282no more than 20 days apart.
283     a.  Notice of a referendum on the merger of independent
284special districts must be provided pursuant to the notice
285requirements in s. 100.342. At a minimum, the notice must
286include:
287     (I)  A brief summary of the resolution and joint merger
288plan;
289     (II)  A statement as to where a copy of the resolution and
290joint merger plan may be examined;
291     (III)  The names of the component independent special
292districts to be merged and a description of their territory;
293     (IV)  The times and places at which the referendum will be
294held; and
295     (V)  Such other matters as may be necessary to call,
296provide for, and give notice of the referendum and to provide
297for the conduct thereof and the canvass of the returns.
298     b.  The referenda must be held in accordance with the
299Florida Election Code and may be held pursuant to ss. 101.6101-
300101.6107. All costs associated with the referenda shall be borne
301by the respective component independent special district.
302     c.  The ballot question in such referendum placed before
303the qualified electors of each component independent special
304district to be merged must be in substantially the following
305form:
306
307     "Shall (...name of component independent special
308district...) and (...name of component independent special
309district or districts...) be merged into (...name of newly
310merged independent district...)?
311     _____YES
312     _____NO"
313
314     d.  If the component independent special districts
315proposing to merge have disparate millage rates, the ballot
316question in the referendum placed before the qualified electors
317of each component independent special district must be in
318substantially the following form:
319
320     "Shall (...name of component independent special
321district...) and (...name of component independent special
322district or districts...) be merged into (...name of newly
323merged independent district...) if the voter-approved maximum
324millage rate within each independent special district will not
325increase absent a subsequent referendum?
326     _____YES
327     _____NO"
328
329     e.  In any referendum held pursuant to this subsection, the
330ballots shall be counted, returns made and canvassed, and
331results certified in the same manner as other elections or
332referenda for the component independent special districts.
333     f.  The merger may not take effect unless a majority of the
334votes cast in each component independent special district are in
335favor of the merger. If one of the component districts does not
336obtain a majority vote, the referendum fails, and merger does
337not take effect.
338     g.  If the merger is approved by a majority of the votes
339cast in each component independent special district, the merged
340independent district is created. Upon approval, the merged
341independent district shall notify the Special District
342Information Program pursuant to s. 189.418(2) and the local
343general-purpose governments in which any part of the component
344independent special districts is situated pursuant to s.
345189.418(7).
346     h.  If the referendum fails, the merger process under this
347paragraph may not be initiated for the same purpose within 2
348years after the date of the referendum.
349     6.  Component independent special districts merged pursuant
350to a joint merger plan by resolution shall continue to be
351governed as before the merger until the effective date specified
352in the adopted joint merger plan.
353     (c)  Qualified elector-initiated merger plan.-The qualified
354electors of two or more contiguous independent special districts
355may commence a merger proceeding by each filing a petition with
356the governing body of their respective independent special
357district proposing to be merged. The petition must contain the
358signatures of at least 40 percent of the qualified electors of
359each component independent special district and must be
360submitted to the appropriate component independent special
361district governing body no later than 1 year after the start of
362the qualified elector-initiated merger process.
363     1.  The petition must comply with, and be circulated in,
364the following form:
365
366     PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER
367
368     We, the undersigned electors and legal voters of (...name
369of independent special district...), qualified to vote at the
370next general or special election, respectfully petition that
371there be submitted to the electors and legal voters of (...name
372of independent special district or districts proposed to be
373merged...), for their approval or rejection at a referendum held
374for that purpose, a proposal to merge (...name of component
375independent special district...) and (...name of component
376independent special district or districts...).
377
378     In witness thereof, we have signed our names on the date
379indicated next to our signatures.
380
381     Date          Name (print under signature)          Home Address
382     ___________________________________________________________
383     ___________________________________________________________
384
385     2.  The petition must be validated by a signed statement by
386a witness who is a duly qualified elector of one of the
387component independent special districts, a notary public, or
388another person authorized to take acknowledgements.
389     a.  A statement that is signed by a witness who is a duly
390qualified elector of the respective district shall be accepted
391for all purposes as the equivalent of an affidavit. Such
392statement must be in substantially the following form:
393
394     "I, (...name of witness...), state that I am a duly
395qualified voter of (...name of independent special district...).
396Each of the (...insert number...) persons who have signed this
397petition sheet has signed his or her name in my presence on the
398dates indicated above and identified himself or herself to be
399the same person who signed the sheet. I understand that this
400statement will be accepted for all purposes as the equivalent of
401an affidavit and, if it contains a materially false statement,
402shall subject me to the penalties of perjury."
403
404     Date                     Signature of Witness
405
406     b.  A statement that is signed by a notary public or
407another person authorized to take acknowledgements must be in
408substantially the following form:
409
410     "On the date indicated above before me personally came each
411of the (...insert number...) electors and legal voters whose
412signatures appear on this petition sheet, who signed the
413petition in my presence and who, being by me duly sworn, each
414for himself or herself, identified himself or herself as the
415same person who signed the petition, and I declare that the
416foregoing information they provided was true."
417
418     Date                         Signature of Witness
419
420     c.  An alteration or correction of information appearing on
421a petition's signature line, other than an uninitialed signature
422and date, does not invalidate such signature. In matters of
423form, this paragraph shall be liberally construed, not
424inconsistent with substantial compliance thereto and the
425prevention of fraud.
426     d.  The appropriately signed petition must be filed with
427the governing body of each component independent special
428district. The petition must be submitted to the supervisors of
429elections of the counties in which the district lands are
430located. The supervisors shall, within 30 business days after
431receipt of the petitions, certify to the governing bodies the
432number of signatures of qualified electors contained on the
433petitions.
434     3.  Upon verification by the supervisors of elections of
435the counties within which component independent special district
436lands are located that 40 percent of the qualified electors have
437petitioned for merger and that all such petitions have been
438executed within 1 year after the date of the initiation of the
439qualified-elector merger process, the governing bodies of each
440component independent special district shall meet within 30
441business days to prepare and approve by resolution a proposed
442elector-initiated merger plan. The proposed plan must include:
443     a.  The name of each component independent special district
444to be merged;
445     b.  The name of the proposed merged independent district;
446     c.  The rights, duties, and obligations of the merged
447independent district;
448     d.  The territorial boundaries of the proposed merged
449independent district;
450     e.  The governmental organization of the proposed merged
451independent district insofar as it concerns elected and
452appointed officials and public employees, along with a
453transitional plan and schedule for elections and appointments of
454officials;
455     f.  A fiscal estimate of the potential cost or savings as a
456result of the merger;
457     g.  Each component independent special district's assets,
458including, but not limited to, real and personal property, and
459the current value thereof;
460     h.  Each component independent special district's
461liabilities and indebtedness, bonded and otherwise, and the
462current value thereof;
463     i.  Terms for the assumption and disposition of existing
464assets, liabilities, and indebtedness of each component
465independent special district, jointly, separately, or in defined
466proportions;
467     j.  Terms for the common administration and uniform
468enforcement of existing laws within the proposed merged
469independent district;
470     k.  The times and places for public hearings on the
471proposed joint merger plan; and
472     l.  The effective date of the proposed merger.
473     4.  The resolution endorsing the proposed elector-initiated
474merger plan must be approved by a majority vote of the governing
475bodies of each component independent special district and must
476be adopted at least 60 business days before any general or
477special election on the proposed elector-initiated plan.
478     5.  Within 5 business days after the governing bodies of
479each component independent special district approve the proposed
480elector-initiated merger plan, the governing bodies shall:
481     a.  Cause a copy of the proposed elector-initiated merger
482plan, along with a descriptive summary of the plan, to be
483displayed and be readily accessible to the public for inspection
484in at least three public places within the territorial limits of
485each component independent special district, unless a component
486independent special district has fewer than three public places,
487in which case the plan must be accessible for inspection in all
488public places within the component independent special district;
489     b.  If applicable, cause the proposed elector-initiated
490merger plan, along with a descriptive summary of the plan and a
491reference to the public places within each component independent
492special district where a copy of the merger plan may be
493examined, to be displayed on a website maintained by each
494district or otherwise on a website maintained by the county or
495municipality in which the districts are located; and
496     c.  Arrange for a descriptive summary of the proposed
497elector-initiated merger plan, and a reference to the public
498places within the district where a copy may be examined, to be
499published in a newspaper of general circulation within the
500component independent special districts at least once each week
501for 4 successive weeks.
502     6.  The governing body of each component independent
503special district shall set a time and place for one or more
504public hearings on the proposed elector-initiated merger plan.
505Each public hearing shall be held on a weekday at least 7
506business days after the day the first advertisement is published
507on the proposed elector-initiated merger plan. The hearing or
508hearings may be held jointly or separately by the governing
509bodies of the component independent special districts. Any
510interested person residing in the respective district shall be
511given a reasonable opportunity to be heard on any aspect of the
512proposed merger at the public hearing.
513     a.  Notice of the public hearing on the proposed elector-
514initiated merger plan must be published pursuant to the notice
515requirements in s. 189.417 and must provide a descriptive
516summary of the elector-initiated merger plan and a reference to
517the public places within the component independent special
518districts where a copy of the plan may be examined.
519     b.  After the final public hearing, the governing bodies of
520each component independent special district may amend the
521proposed elector-initiated merger plan if the amended version
522complies with the notice and public hearing requirements
523provided in this subsection. The governing bodies must approve a
524final version of the merger plan within 60 business days after
525the final hearing.
526     7.  After the final public hearing, the governing bodies
527shall notify the supervisors of elections of the applicable
528counties in which district lands are located of the adoption of
529the resolution by each governing body. The supervisors of
530elections shall schedule a date for the separate referenda for
531each district. The referenda may be held in each district on the
532same day, or on different days, but no more than 20 days apart.
533     a.  Notice of a referendum on the merger of the component
534independent special districts must be provided pursuant to the
535notice requirements in s. 100.342. At a minimum, the notice must
536include:
537     (I)  A brief summary of the resolution and elector-
538initiated merger plan;
539     (II)  A statement as to where a copy of the resolution and
540petition for merger may be examined;
541     (III)  The names of the component independent special
542districts to be merged and a description of their territory;
543     (IV)  The times and places at which the referendum will be
544held; and
545     (V)  Such other matters as may be necessary to call,
546provide for, and give notice of the referendum and to provide
547for the conduct thereof and the canvass of the returns.
548     b.  The referenda must be held in accordance with the
549Florida Election Code and may be held pursuant to ss. 101.6101-
550101.6107. All costs associated with the referenda shall be borne
551by the respective component independent special district.
552     c.  The ballot question in such referendum placed before
553the qualified electors of each component independent special
554district to be merged must be in substantially the following
555form:
556
557     "Shall (...name of component independent special
558district...) and (...name of component independent special
559district or districts...) be merged into (...name of newly
560merged independent district...)?
561     _____YES
562     _____NO"
563
564     d.  If the component independent special districts
565proposing to merge have disparate millage rates, the ballot
566question in the referendum placed before the qualified electors
567of each component independent special district must be in
568substantially the following form:
569
570     "Shall (...name of component independent special
571district...) and (...name of component independent special
572district or districts...) be merged into (...name of newly
573merged independent district...) if the voter-approved maximum
574millage rate within each independent special district will not
575increase absent a subsequent referendum?
576     _____YES
577     _____NO"
578
579     e.  In any referendum held pursuant to this subsection, the
580ballots shall be counted, returns made and canvassed, and
581results certified in the same manner as other elections or
582referenda for the component independent special districts.
583     f.  The merger may not take effect unless a majority of the
584votes cast in each component independent special district are in
585favor of the merger. If one of the component independent special
586districts does not obtain a majority vote, the referendum fails,
587and merger does not take effect.
588     g.  If the merger is approved by a majority of the votes
589cast in each component independent special district, the merged
590district shall notify the Special District Information Program
591pursuant to s. 189.418(2) and the local general-purpose
592governments in which any part of the component independent
593special districts is situated pursuant to s. 189.418(7).
594     h.  If the referendum fails, the merger process under this
595paragraph may not be initiated for the same purpose within 2
596years after the date of the referendum.
597     8.  Component independent special districts merged pursuant
598to an elector-initiated merger plan shall continue to be
599governed as before the merger until the effective date specified
600in the adopted elector-initiated merger plan.
601     (d)  Effective date.-The effective date of the merger shall
602be as provided in the joint merger plan or elector-initiated
603merger plan, as appropriate, and is not contingent upon the
604future act of the Legislature.
605     1.  However, as soon as practicable, the merged independent
606district shall, at its own expense, submit a unified charter for
607the merged district to the Legislature for approval. The unified
608charter must make the powers of the district consistent within
609the merged independent district and repeal the special acts of
610the districts which existed before the merger.
611     2.  Within 30 business days after the effective date of the
612merger, the merged independent district's governing body, as
613indicated in this subsection, shall hold an organizational
614meeting to implement the provisions of the joint merger plan or
615elector-initiated merger plan, as appropriate.
616     (e)  Restrictions during transition period.-Until the
617Legislature formally approves the unified charter pursuant to a
618special act, each component independent special district is
619considered a subunit of the merged independent district subject
620to the following restrictions:
621     1.  During the transition period, the merged independent
622district is limited in its powers and financing capabilities
623within each subunit to those powers that existed within the
624boundaries of each subunit which were previously granted to the
625component independent special district in its existing charter
626before the merger. The merged independent district may not,
627solely by reason of the merger, increase its powers or financing
628capability.
629     2.  During the transition period, the merged independent
630district shall exercise only the legislative authority to levy
631and collect revenues within the boundaries of each subunit which
632was previously granted to the component independent special
633district by its existing charter before the merger, including
634the authority to levy ad valorem taxes, non-ad valorem
635assessments, impact fees, and charges.
636     a.  The merged independent district may not, solely by
637reason of the merger, increase ad valorem taxes on property
638within the original limits of a subunit beyond the maximum ad
639valorem rate approved by the electors of the component
640independent special district. For purposes of s. 2, Art. VII of
641the State Constitution, each subunit may be considered a
642separate taxing unit. The merged independent district may levy
643an ad valorem millage rate within a subunit, if applicable, only
644up to the millage rate that was previously approved by the
645electors of the component independent special district unless an
646increase in the millage rate is approved pursuant to general
647law.
648     b.  The merged independent district may not, solely by
649reason of the merger, charge non-ad valorem assessments, impact
650fees, or other new fees within a subunit which were not
651otherwise previously authorized to be charged.
652     3.  During the transition period, each component
653independent special district of the merged independent district
654must continue to file all information and reports required under
655this chapter as subunits until the Legislature formally approves
656the unified charter pursuant to a special act.
657     4.  The intent of this section is to preserve and transfer
658to the merged independent district all authority that exists
659within each subunit and was previously granted by the
660Legislature and, if applicable, by referendum.
661     (f)  Effect of merger, generally.-On and after the
662effective date of the merger, the merged independent district
663shall be treated and considered for all purposes as one entity
664under the name and on the terms and conditions set forth in the
665joint merger plan or elector-initiated merger plan, as
666appropriate.
667     1.  All rights, privileges, and franchises of each
668component independent special district and all assets, real and
669personal property, books, records, papers, seals, and equipment,
670as well as other things in action, belonging to each component
671independent special district before the merger shall be deemed
672as transferred to and vested in the merged independent district
673without further act or deed.
674     2.  All property, rights-of-way, and other interests are as
675effectually the property of the merged independent district as
676they were of the component independent special district before
677the merger. The title to real estate, by deed or otherwise,
678under the laws of this state vested in any component independent
679special district before the merger may not be deemed to revert
680or be in any way impaired by reason of the merger.
681     3.  The merged independent district is in all respects
682subject to all obligations and liabilities imposed and possesses
683all the rights, powers, and privileges vested by law in other
684similar entities.
685     4.  Upon the effective date of the merger, the joint merger
686plan or elector-initiated merger plan, as appropriate, is
687subordinate in all respects to the contract rights of all
688holders of any securities or obligations of the component
689independent special districts outstanding at the effective date
690of the merger.
691     5.  The new registration of electors is not necessary as a
692result of the merger, but all elector registrations of the
693component independent special districts shall be transferred to
694the proper registration books of the merged independent
695district, and new registrations shall be made as provided by law
696as if no merger had taken place.
697     (g)  Governing body of merged independent district.-
698     1.  From the effective date of the merger until the next
699general election, the governing body of the merged independent
700district shall be comprised of the governing body members of
701each component independent special district, with such members
702serving until the governing body members elected at the next
703general election take office.
704     2.  Beginning with the next general election following the
705effective date of merger, the governing body of the merged
706independent district shall be comprised of five members. The
707office of each governing body member shall be designated by
708seat, which shall be distinguished from other body member seats
709by an assigned numeral: 1, 2, 3, 4, or 5. The governing body
710members that are elected in this initial election following the
711merger shall serve unequal terms of 2 and 4 years in order to
712create staggered membership of the governing body, with:
713     a.  Member seats 1, 3, and 5 being designated for 4-year
714terms; and
715     b.  Member seats 2 and 4 being designated for 2-year terms.
716     3.  In general elections thereafter, all governing body
717members shall serve 4-year terms.
718     (h)  Effect on employees.-Except as otherwise provided by
719law and except for those officials and employees protected by
720tenure of office, civil service provisions, or a collective
721bargaining agreement, upon the effective date of merger, all
722appointive offices and positions existing in all component
723independent special districts involved in the merger are subject
724to the terms of the joint merger plan or elector-initiated
725merger plan, as appropriate. Such plan may provide for instances
726in which there are duplications of positions and for other
727matters such as varying lengths of employee contracts, varying
728pay levels or benefits, different civil service regulations in
729the constituent entities, and differing ranks and position
730classifications for similar positions. For those employees who
731are members of a bargaining unit certified by the Public
732Employees Relations Commission, the requirements of chapter 447
733apply.
734     (i)  Effect on debts, liabilities, and obligations.-
735     1.  All valid and lawful debts and liabilities existing
736against a merged independent district, or which may arise or
737accrue against the merged independent district, which but for
738merger would be valid and lawful debts or liabilities against
739one or more of the component independent special districts, are
740debts against or liabilities of the merged independent district
741and accordingly shall be defrayed and answered to by the merged
742independent district to the same extent, and no further than,
743the component independent special districts would have been
744bound if a merger had not taken place.
745     2.  The rights of creditors and all liens upon the property
746of any of the component independent special districts shall be
747preserved unimpaired. The respective component districts shall
748be deemed to continue in existence to preserve such rights and
749liens, and all debts, liabilities, and duties of any of the
750component districts attach to the merged independent district.
751     3.  All bonds, contracts, and obligations of the component
752independent special districts which exist as legal obligations
753are obligations of the merged independent district, and all such
754obligations shall be issued or entered into by and in the name
755of the merged independent district.
756     (j)  Effect on actions and proceedings.-In any action or
757proceeding pending on the effective date of merger to which a
758component independent special district is a party, the merged
759independent district may be substituted in its place, and the
760action or proceeding may be prosecuted to judgment as if merger
761had not taken place. Suits may be brought and maintained against
762a merged independent district in any state court in the same
763manner as against any other independent special district.
764     (k)  Effect on annexation.-Chapter 171 continues to apply
765to all annexations by a city within the component independent
766special districts' boundaries after merger occurs. Any moneys
767owed to a component independent special district pursuant to s.
768171.093, or any interlocal service boundary agreement as a
769result of annexation predating the merger, shall be paid to the
770merged independent district after merger.
771     (l)  Determination of rights.-If any right, title,
772interest, or claim arises out of a merger or by reason thereof
773which is not determinable by reference to this subsection, the
774joint merger plan or elector-initiated merger plan, as
775appropriate, or otherwise under the laws of this state, the
776governing body of the merged independent district may provide
777therefor in a manner conforming to law.
778     (m)  Exemption.-This subsection does not apply to
779independent special districts whose governing bodies are elected
780by district landowners voting the acreage owned within the
781district.
782     (n)  Preemption.-This subsection preempts any special act
783to the contrary.
784     (6)  INVOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.-
785If a local general-purpose government seeks to merge an active
786independent special district or districts created and operating
787pursuant to a special act whose governing body or governing
788bodies object by resolution to the merger, the merger of the
789active independent special district or districts is not
790effective until the special act of the Legislature is approved
791at separate referenda of the impacted local governments by a
792majority of the resident electors or landowners voting in the
793same manner by which each independent special district's
794governing body is elected. The special act shall include a plan
795of merger that addresses transition issues such as the effective
796date of the merger, governance, administration, powers,
797pensions, and assumption of all assets and liabilities.
798     (a)  The political subdivisions proposing the involuntary
799merger of an active independent special district shall be
800responsible for payment of any expenses associated with the
801referendum required under this subsection.
802     (b)  An independent special district that meets any
803criteria for being declared inactive, or that has already been
804declared inactive, pursuant to s. 189.4044 may by merged by
805special act without a referendum.
806     (7)(3)  EXEMPTIONS.-The provisions of This section does
807shall not apply to community development districts implemented
808pursuant to chapter 190 or to water management districts created
809and operated pursuant to chapter 373.
810     Section 2.  Section 191.014, Florida Statutes, is amended
811to read:
812     191.014  District creation and, expansion, and merger.-
813     (1)  New districts may be created only by the Legislature
814under s. 189.404.
815     (2)  The boundaries of a district may be modified,
816extended, or enlarged upon approval or ratification by the
817Legislature.
818     (3)  The merger of a district with all or portions of other
819independent special districts or dependent fire control
820districts is effective only upon ratification by the
821Legislature. A district may not, solely by reason of a merger
822with another governmental entity, increase ad valorem taxes on
823property within the original limits of the district beyond the
824maximum established by the district's enabling legislation,
825unless approved by the electors of the district by referendum.
826     Section 3.  Paragraph (a) of subsection (1) and subsection
827(4) of section 189.4044, Florida Statutes, are amended to read:
828     189.4044  Special procedures for inactive districts.-
829     (1)  The department shall declare inactive any special
830district in this state by documenting that:
831     (a)  The special district meets one of the following
832criteria:
833     1.  The registered agent of the district, the chair of the
834governing body of the district, or the governing body of the
835appropriate local general-purpose government notifies the
836department in writing that the district has taken no action for
8372 or more years;
838     2.  Following an inquiry from the department, the
839registered agent of the district, the chair of the governing
840body of the district, or the governing body of the appropriate
841local general-purpose government notifies the department in
842writing that the district has not had a governing board or a
843sufficient number of governing board members to constitute a
844quorum for 2 or more years or the registered agent of the
845district, the chair of the governing body of the district, or
846the governing body of the appropriate local general-purpose
847government fails to respond to the department's inquiry within
84821 days; or
849     3.  The department determines, pursuant to s. 189.421, that
850the district has failed to file any of the reports listed in s.
851189.419; or
852     4.  The governing body of a special district provides
853documentation to the department that it has unanimously adopted
854a resolution declaring the special district inactive. The
855special district shall be responsible for payment of any
856expenses associated with its dissolution.
857     (4)  The entity that created a special district declared
858inactive under this section must dissolve the special district
859by repealing its enabling laws or by other appropriate means.
860Any special district declared inactive pursuant to subparagraph
861(1)(a)4. may be dissolved without a referendum.
862     Section 4.  This act shall take effect July 1, 2011.


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