Bill Text: FL S1120 | 2011 | Regular Session | Comm Sub
Bill Title: Special Districts
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1120 Detail]
Download: Florida-2011-S1120-Comm_Sub.html
Florida Senate - 2011 CS for SB 1120 By the Committee on Community Affairs; and Senator Norman 578-02789A-11 20111120c1 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 contiguous 4 special districts; providing definitions; providing 5 that the merger or dissolution of dependent districts 6 created by special act may be effectuated only by the 7 Legislature; providing certain exemptions for inactive 8 dependent and independent special districts; requiring 9 involuntary dissolution procedures for independent 10 special districts to include referenda; providing that 11 the Legislature may merge independent special 12 districts created by special act; providing for the 13 voluntary merger of contiguous independent special 14 districts pursuant to a joint resolution of the 15 governing bodies of the districts or upon initiative 16 of the district electors; providing the procedures 17 that must be adhered to, including notice and public 18 hearings; requiring the development and adoption of a 19 merger plan; requiring a referendum; providing for the 20 effective date of the merger; providing that 21 legislative approval of the merger is not required but 22 that the charter of the new district must be submitted 23 for approval; providing restrictions on the merged 24 district until the charter is approved; providing that 25 the ad valorem millage rate in each component 26 independent special district is levied only up to the 27 millage rate previously approved by the electors of 28 the district; providing for the effect of the merger 29 on the property, employees, legal liabilities, and 30 annexations of the component districts; providing for 31 the election of the governing board of the merged 32 district; providing an exemption for independent 33 special districts whose governing bodies are elected 34 by district landowners voting the acreage owned within 35 the district; requiring involuntary merger procedures 36 for independent special districts to include 37 referenda; amending s. 191.014, F.S.; deleting a 38 provision relating to the merger of independent 39 special districts or dependent fire control districts; 40 amending s. 189.4044, F.S.; revising dissolution 41 procedures for special districts declared inactive by 42 a governing body; providing an effective date. 43 44 Be It Enacted by the Legislature of the State of Florida: 45 46 Section 1. Section 189.4042, Florida Statutes, is amended 47 to read: 48 189.4042 Merger and dissolution procedures.— 49 (1) DEFINITIONS.—As used in this section, the term: 50 (a) “Component independent special district” means an 51 independent special district that proposes to be merged into a 52 merged independent district, or an independent special district 53 as it existed before its merger into the merged independent 54 district of which it is now a part. 55 (b) “Elector-initiated merger plan” means the merger plan 56 of two or more independent special districts, a majority of 57 whose qualified electors have elected to merge, which outlines 58 the terms and agreements for the official merger of the 59 districts, and is finalized and approved by the governing bodies 60 of the districts pursuant to this section. 61 (c) “Governing body” means the governing body of the 62 independent special district in which the general legislative, 63 governmental, or public powers of the district are vested and by 64 authority of which the official business of the district is 65 conducted. 66 (d) “Initiative” means the filing of a petition containing 67 a proposal for a referendum to be placed on the ballot for 68 election. 69 (e) “Joint merger plan” means the merger plan that is 70 adopted by resolution of the governing bodies of two or more 71 independent special districts, that outlines the terms and 72 agreements for the official merger of the districts, and that is 73 finalized and approved by the governing bodies pursuant to this 74 section. 75 (f) “Merged independent district” means a single 76 independent special district that results from a successful 77 merger of two or more independent special districts pursuant to 78 this section. 79 (g) “Merger” means the combination of two or more 80 contiguous independent special districts that combine to become 81 a newly created merged independent district that assumes 82 jurisdiction over all of the component independent special 83 districts. 84 (h) “Merger plan” means a written document that contains 85 the terms, agreements, and information regarding the merger of 86 two or more independent special districts. 87 (i) “Proposed elector-initiated merger plan” means a 88 written document that contains the terms and information 89 regarding the merger of two or more independent special 90 districts and that accompanies the petition initiated by the 91 qualified electors of the districts, but that is not yet 92 finalized and approved by the governing bodies of each component 93 independent special district pursuant to this section. 94 (j) “Proposed joint merger plan” means a written document 95 that contains the terms and information regarding the merger of 96 two or more independent special districts and that has been 97 prepared pursuant to a resolution of the governing bodies of the 98 districts, but that is not yet finalized and approved by the 99 governing bodies of each component independent special district 100 pursuant to this section. 101 (k) “Qualified elector” means an individual at least 18 102 years of age who is a citizen of the United States, a permanent 103 resident of this state, and a resident of the district who 104 registers with the supervisor of elections of a county within 105 which the district lands are located when the registration books 106 are open. 107 (2) MERGER OR DISSOLUTION OF A DEPENDENT SPECIAL DISTRICT.— 108 (a) The merger or dissolution of a dependent special 109 districtdistrictsmay be effectuated by an ordinance of the 110 general-purpose local governmental entity wherein the 111 geographical area of the district or districts is located. 112 However, a county may not dissolve a special district that is 113 dependent to a municipality or vice versa, or a dependent 114 district created by special act. 115 (b) The merger or dissolution of a dependent district 116 created and operating pursuant to a special act may be 117 effectuated only by further act of the Legislature unless 118 otherwise provided by general law. 119 (c) Dependent special districts that meet any criteria for 120 being declared inactive, or that have already been declared 121 inactive, pursuant to s. 189.4044 may be dissolved or merged by 122 special act without a referendum. 123 (d)(b)A copy of any ordinance and of any changes to a 124 charter affecting the status or boundaries of one or more 125 special districts shall be filed with the Special District 126 Information Program within 30 days afterofsuch activity. 127 (3)(2)DISSOLUTION OF AN INDEPENDENT SPECIAL DISTRICT.— 128 (a) Voluntary dissolution.—The voluntarymerger or129 dissolution of an independent special districtor a dependent130districtcreated and operating pursuant to a special act may 131onlybe effectuated only by the Legislature unless otherwise 132 provided by general law. 133 (b) Involuntary dissolution.—If a local general-purpose 134 government seeks to dissolve an active independent special 135 district created and operating pursuant to a special act whose 136 board objects by resolution to the dissolution, the dissolution 137 of the active independent special district is not effective 138 until a special act of the Legislature is approved by a majority 139 of the resident electors of the district or landowners voting in 140 the same manner by which the independent special district’s 141 governing board is elected. This paragraph also applies if an 142 independent special district’s governing board elects to 143 dissolve the district by less than a supermajority vote of the 144 board. The political subdivisions proposing the involuntary 145 dissolution of an active independent special district shall be 146 responsible for payment of any expenses associated with the 147 referendum required under this paragraph. 148 (c) Inactive independent special districts.—Independent 149 special districts that meet any criteria for being declared 150 inactive, or that have already been declared inactive, pursuant 151 to s. 189.4044 may be dissolved by special act without a 152 referendum. If an inactive independent special district was 153 created by a county or municipality through a referendum, the 154 county or municipality that created the district may dissolve 155 the district after publishing notice as described in s. 156 189.4044. If an independent special district was created by a 157 county or municipality by referendum or any other procedure, the 158 county or municipality that created the district may merge or 159 dissolve the district pursuant to a referendum or any otherthe160sameprocedure by which the independent district was created. 161 However, if thefor anyindependent special districtthathas ad 162 valorem taxation powers, the same procedure required to grant 163 thesuchindependent district ad valorem taxation powers is 164shall also berequired to dissolveor mergethe district. 165 (d) Debts and assets.—Financial allocations of the assets 166 and indebtedness of a dissolved independent special district 167 shall be pursuant to s. 189.4045. 168 (4) LEGISLATIVE MERGER OF INDEPENDENT SPECIAL DISTRICTS. 169 The Legislature may merge independent special districts created 170 and operating pursuant to special act. 171 (5) VOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.—Two 172 or more contiguous independent special districts created by 173 special act which have similar functions and elected governing 174 bodies may elect to merge into a single independent district 175 through the act of merging the component independent special 176 districts 177 (a) Initiation.—Merger proceedings may commence by: 178 1. A joint resolution of the governing bodies of each 179 independent special district which endorses a proposed joint 180 merger plan; or 181 2. A qualified elector initiative. 182 (b) Joint merger plan by resolution.—The governing bodies 183 of two or more contiguous independent special districts may, by 184 joint resolution, endorse a proposed joint merger plan to 185 commence proceedings to merge the districts pursuant to this 186 subsection. 187 1. The proposed joint merger plan must specify: 188 a. The name of each component independent special district 189 to be merged; 190 b. The name of the proposed merged independent district; 191 c. The rights, duties, and obligations of the proposed 192 merged independent district; 193 d. The territorial boundaries of the proposed merged 194 independent district; 195 e. The governmental organization of the proposed merged 196 independent district insofar as it concerns elected and 197 appointed officials and public employees, along with a 198 transitional plan and schedule for elections and appointments of 199 officials; 200 f. A fiscal estimate of the potential cost or savings as a 201 result of the merger; 202 g. Each component independent special district’s assets, 203 including, but not limited to, real and personal property, and 204 the current value thereof; 205 h. Each component independent special district’s 206 liabilities and indebtedness, bonded and otherwise, and the 207 current value thereof; 208 i. Terms for the assumption and disposition of existing 209 assets, liabilities, and indebtedness of each component 210 independent special district jointly, separately, or in defined 211 proportions; 212 j. Terms for the common administration and uniform 213 enforcement of existing laws within the proposed merged 214 independent district; 215 k. The times and places for public hearings on the proposed 216 joint merger plan; 217 l. The times and places for a referendum in each component 218 independent special district on the proposed joint merger plan, 219 along with the referendum language to be presented for approval; 220 and 221 m. The effective date of the proposed merger. 222 2. The resolution endorsing the proposed joint merger plan 223 must be approved by a majority vote of the governing bodies of 224 each component independent special district and adopted at least 225 60 business days before any general or special election on the 226 proposed joint merger plan. 227 3. Within 5 business days after the governing bodies 228 approve the resolution endorsing the proposed joint merger plan, 229 the governing bodies must: 230 a. Cause a copy of the proposed joint merger plan, along 231 with a descriptive summary of the plan, to be displayed and be 232 readily accessible to the public for inspection in at least 233 three public places within the territorial limits of each 234 component independent special district, unless a component 235 district has fewer than three public places, in which case the 236 plan must be accessible for inspection in all public places 237 within the component independent special district; 238 b. If applicable, cause the proposed joint merger plan, 239 along with a descriptive summary of the plan and a reference to 240 the public places within each component independent special 241 district where a copy of the merger plan may be examined, to be 242 displayed on a website maintained by each district or on a 243 website maintained by the county or municipality in which the 244 districts are located; and 245 c. Arrange for a descriptive summary of the proposed joint 246 merger plan and a reference to the public places within the 247 district where a copy may be examined, to be published in a 248 newspaper of general circulation within the component 249 independent special districts at least once each week for 4 250 successive weeks. 251 4. The governing body of each component independent special 252 district shall set a time and place for one or more public 253 hearings on the proposed joint merger plan. The public hearing 254 shall be held on a weekday at least 7 business days after the 255 day the first advertisement is published on the proposed joint 256 merger plan. The hearings may be held jointly or separately by 257 the governing bodies of each component district. Any interested 258 person residing in the respective district shall be given a 259 reasonable opportunity to be heard on any aspect of the proposed 260 merger at the public hearing. 261 a. Notice of the public hearing addressing the resolution 262 for the proposed joint merger plan must be published pursuant to 263 the notice requirements under s. 189.417 and must provide a 264 descriptive summary of the proposed joint merger plan and a 265 reference to the public places within the component independent 266 special districts where a copy of the plan may be examined. 267 b. After the final public hearing, the governing bodies of 268 each component independent special district may amend the 269 proposed joint merger plan if the amended version complies with 270 the notice and public hearing requirements provided in this 271 subsection. Thereafter, the governing bodies may approve a final 272 version of the joint merger plan or decline to proceed further 273 with the merger. Approval by the governing bodies of the final 274 version of the joint merger plan must occur within 60 business 275 days after the final hearing. 276 5. After the final public hearing, the governing bodies 277 shall notify the supervisors of elections of the applicable 278 counties in which district lands are located of the adoption of 279 the resolution by each governing body. The supervisors of 280 elections shall schedule separate referendums for each component 281 independent special district. The referendums may be held in 282 each district on the same day, or on different days, but no more 283 than 20 days apart. 284 a. Notice of a referendum on the merger of independent 285 special districts must be provided pursuant to the notice 286 requirements in s. 100.342. At a minimum, the notice must 287 include: 288 (I) A brief summary of the resolution and joint merger 289 plan; 290 (II) A statement as to where a copy of the resolution and 291 joint merger plan may be examined; 292 (III) The names of the component independent special 293 districts and a description of their territory; 294 (IV) The times and places at which the referendum will be 295 held; and 296 (V) Such other matters as may be necessary to call, provide 297 for, and give notice of the referendum and to provide for the 298 conduct thereof and the canvass of the returns. 299 b. The referendums must be held in accordance with the 300 Florida Election Code and may be held pursuant to ss. 101.6101 301 101.6107. All costs associated with the referendums shall be 302 borne by the respective component independent special district. 303 c. The ballot question in such referendum placed before the 304 qualified electors of each component independent special 305 district to be merged must be in substantially the following 306 form: 307 308 “Shall (...name of component independent special 309 district...) and (...name of component independent special 310 district or districts...) be merged into (...name of new merged 311 independent district...)? 312 _____YES 313 _____NO” 314 315 d. If the component independent special districts have 316 disparate millage rates, the ballot question in the referendum 317 placed before the qualified electors of each component district 318 must be in substantially the following form: 319 320 “Shall (...name of component independent special 321 district...) and (...name of component independent special 322 district or districts...) be merged into (...name of new merged 323 independent district...), if the voter-approved maximum millage 324 rate within each independent special district will not increase 325 absent a subsequent referendum? 326 _____YES 327 _____NO” 328 329 e. In any referendum held pursuant to this subsection, the 330 ballots shall be counted, returns made and canvassed, and 331 results certified in the same manner as other elections or 332 referendums for the component independent special districts. 333 f. The merger may not take effect unless a majority of the 334 votes cast in each component independent special district are in 335 favor of the merger. If one of the component districts does not 336 obtain a majority vote, the referendum fails, and merger does 337 not take effect. 338 g. If merger is approved by a majority of the votes cast in 339 each component independent special district, the merged 340 independent district is created. Upon approval, the merged 341 district shall notify the Special District Information Program 342 pursuant to s. 189.418(2) and the local general-purpose 343 governments in which any part of the component districts is 344 situated pursuant to s. 189.418(7). 345 h. If the referendum fails, the merger process under this 346 paragraph may not be initiated for the same purpose within 2 347 years after the date of the referendum. 348 6. Component independent special districts merged pursuant 349 to a joint merger plan by resolution shall continue to be 350 governed as before the merger until the effective date specified 351 in the adopted joint merger plan. 352 (c) Qualified elector-initiated merger plan.—The qualified 353 electors of two or more contiguous independent special districts 354 may commence a merger proceeding by each filing a petition with 355 the governing bodies of each independent special district 356 proposing to be merged. The petition must contain the signatures 357 of at least 20 percent of the qualified electors of each 358 component independent special district. 359 1. The petition must comply with, and be circulated in, the 360 following form: 361 362 PETITION FOR INDEPENDENT SPECIAL DISTRICT MERGER 363 364 We, the undersigned electors and legal voters of (...name 365 of independent special district...), qualified to vote at the 366 next general or special election, respectfully petition that 367 there be submitted to the electors and legal voters of (...name 368 of independent special district or districts proposed to be 369 merged...), for their approval or rejection at a referendum held 370 for that purpose, a proposal to merge (...name of component 371 independent special district...) and (...name of component 372 independent special district or districts...) 373 374 In witness thereof, we have signed our names on the date 375 indicated next to our signatures. 376 377 Date Name (print under signature) Home Address 378 ___________________________________________________________ 379 ___________________________________________________________ 380 381 2. The petition must be validated by a signed statement by 382 a witness who is a duly qualified elector of one of the 383 component independent special districts, a notary public, or 384 another person authorized to take acknowledgements. 385 a. A statement that is signed by a witness who is a duly 386 qualified elector of the respective district shall be accepted 387 for all purposes as the equivalent of an affidavit. Such 388 statement must be in substantially the following form: 389 390 “I, (...name of witness...), state that I am a duly 391 qualified voter of (...name of independent special district...). 392 Each of the (...insert number...) persons who have signed this 393 petition sheet has signed his or her name in my presence on the 394 dates indicated above and identified himself or herself to be 395 the same person who signed the sheet. I understand that this 396 statement will be accepted for all purposes as the equivalent of 397 an affidavit, and if it contains a materially false statement, 398 shall subject me to the penalties of perjury.” 399 400 Date Signature of Witness 401 402 b. A statement that is signed be a notary public or another 403 person authorized to take acknowledgements must be in 404 substantially the following form: 405 406 “On the date indicated above before me personally came each 407 of the (...insert number...) electors and legal voters whose 408 signatures appear on this petition sheet, who signed the 409 petition in my presence and who, being by me duly sworn, each 410 for himself or herself, identified himself or herself as the 411 same person who signed the petition, and I declare that the 412 foregoing information they provided was true.” 413 414 Date Signature of Witness 415 416 c. An alteration or correction of information appearing on 417 a petition’s signature line, other than an uninitialed signature 418 and date, does not invalidate such signature. In matters of 419 form, this paragraph shall be liberally construed, not 420 inconsistent with substantial compliance thereto and the 421 prevention of fraud. 422 d. The appropriately signed petition must be filed with the 423 governing board of each component independent special district. 424 The petition must be submitted to the supervisors of elections 425 of the counties in which the district lands are located. The 426 supervisors shall, within 30 business days after receipt of the 427 petitions, certify to the governing boards the number of 428 signatures of qualified electors contained on the petitions. 429 3. Upon verification by the supervisors of election of the 430 counties within which component independent special district 431 lands are located that 20 percent of the qualified electors have 432 petitioned for merger, the governing bodies of each component 433 district shall meet within 30 business days to prepare and 434 approve by resolution a proposed elector-initiated merger plan. 435 The proposed plan must include: 436 a. The name of each component independent special district 437 to be merged; 438 b. The name of the proposed merged independent district; 439 c. The rights, duties, and obligations of the merged 440 independent district; 441 d. The territorial boundaries of the proposed merged 442 independent district; 443 e. The governmental organization of the proposed merged 444 independent district insofar as it concerns elected and 445 appointed officials and public employees, along with a 446 transitional plan and schedule for elections and appointments of 447 officials; 448 f. A fiscal estimate of the potential cost or savings as a 449 result of the merger; 450 g. Each component independent special district’s assets, 451 including, but not limited to, real and personal property, and 452 the current value thereof; 453 h. Each component independent special district’s 454 liabilities and indebtedness, bonded and otherwise, and the 455 current value thereof; 456 i. Terms for the assumption and disposition of existing 457 assets, liabilities, and indebtedness of each component 458 independent special district, jointly, separately, or in defined 459 proportions; 460 j. Terms for the common administration and uniform 461 enforcement of existing laws within the proposed merged 462 independent district; 463 k. The times and places for public hearings on the proposed 464 joint merger plan; and 465 l. The effective date of the proposed merger. 466 4. The resolution endorsing the proposed elector-initiated 467 merger plan must be approved by a majority vote of the governing 468 bodies of each component independent special district and must 469 be adopted at least 60 business days before any general or 470 special election on the proposed elector-initiated plan. 471 5. Within 5 business days after the governing bodies of 472 each component independent special district approve the proposed 473 elector-initiated merger plan, the governing bodies shall: 474 a. Cause a copy of the proposed elector-initiated merger 475 plan, along with a descriptive summary of the plan, to be 476 displayed and be readily accessible to the public for inspection 477 in at least three public places within the territorial limits of 478 each component independent special district, unless a component 479 district has fewer than three public places, in which case the 480 plan must be accessible for inspection in all public places 481 within the component independent special district; 482 b. If applicable, cause the proposed elector-initiated 483 merger plan, along with a descriptive summary of the plan and a 484 reference to the public places within each component independent 485 special district where a copy of the merger plan may be 486 examined, to be displayed on a website maintained by each 487 district or otherwise on a website maintained by the county or 488 municipality in which the districts are located; and 489 c. Arrange a descriptive summary of the proposed elector 490 initiated merger plan and a reference to the public places 491 within the district where a copy may be examined, to be 492 published in a newspaper of general circulation within the 493 component independent special districts at least once each week 494 for 4 successive weeks. 495 6. The governing body of each component independent special 496 district shall set the time and place for one or more public 497 hearings on the proposed elector-initiated merger plan. The 498 public hearing shall be held on a weekday at least 7 business 499 days after the day the first advertisement is published on the 500 proposed elector-initiated merger plan. The hearing or hearings 501 may be held jointly or separately by the governing bodies of 502 each component independent special district. Any interested 503 person residing in the respective district shall be given a 504 reasonable opportunity to be heard on any aspect of the proposed 505 merger at the public hearing. 506 a. Notice of the public hearing on the proposed elector 507 initiated merger plan must be published pursuant to the notice 508 requirements provided in s. 189.417 and must provide a 509 descriptive summary of the elector-initiated merger plan and a 510 reference to the places within the component independent special 511 districts where a copy of the plan may be examined. 512 b. After the final public hearing, the governing bodies of 513 each component independent special district may amend the 514 proposed elector-initiated merger plan if the amended version 515 complies with the notice and public hearing requirements 516 provided in this subsection. The governing bodies must approve a 517 final version of the merger plan within 60 business days after 518 the final hearing. 519 7. After the final public hearing, the governing bodies 520 shall notify the supervisors of elections of the applicable 521 counties in which district lands are located of the adoption of 522 the resolution by each component independent special district. 523 The supervisors of elections shall schedule a date for the 524 separate referendums for each district. The referendums may be 525 held in each district on the same day, or on different days, but 526 no more than 20 days apart. 527 a. Notice of a referendum on the merger of the component 528 independent special districts must be provided pursuant to the 529 notice requirements in s. 100.342. At a minimum, the notice must 530 include: 531 (I) A brief summary of the resolution and elector-initiated 532 merger plan; 533 (II) A statement as to where a copy of the resolution and 534 petition for merger may be examined; 535 (III) The names of the component independent special 536 districts to be merged and a description of their territory; 537 (IV) The times and places at which the referendum will be 538 held; and 539 (V) Such other matters as may be necessary to call, provide 540 for, and give notice of the referendum and to provide for the 541 conduct thereof and the canvass of the returns. 542 b. The referendums must be held in accordance to the 543 Florida Election Code and may be held pursuant to ss. 101.6101 544 101.6107. All costs associated with the referendums shall be 545 borne by the respective component independent special district. 546 c. The ballot question in such referendum placed before the 547 qualified electors of each component independent special 548 district must be in substantially the following form: 549 550 “Shall (...name of component independent special 551 district...) and (...name of component independent special 552 district or districts...) be merged into (...name of new merged 553 independent district...)? 554 _____YES 555 _____NO” 556 557 d. If the component independent special districts proposing 558 to merge have disparate millage rates, the ballot question in 559 such referendum placed before the qualified electors of each 560 component special district must be in substantially the 561 following form: 562 563 “Shall (...name of component independent special 564 district...) and (...name of component independent special 565 district or districts...) be merged into (...name of new merged 566 independent district...), if the voter-approved maximum millage 567 rate within each independent special district will not increase 568 absent a subsequent referendum? 569 570 _____YES 571 _____NO” 572 573 e. In any referendum held pursuant to this subsection, the 574 ballots shall be counted, returns made and canvassed, and 575 results certified in the same manner as other elections or 576 referendums for the component independent special districts. 577 f. The merger may not take effect unless a majority of the 578 votes cast in each component independent special district are in 579 favor of the merger. If one of the component independent special 580 districts does not obtain a majority vote, the referendum fails, 581 and merger does not take effect. 582 g. If merger is approved by a majority of the votes cast in 583 each component independent special district, the merged district 584 shall notify the Special District Information Program pursuant 585 to s. 189.418(2) and the local general-purpose governments in 586 which any part of the component independent special districts is 587 situated pursuant to s. 189.418(7). 588 h. If the referendum fails, the merger process specified by 589 this paragraph may not be initiated for the same purpose within 590 2 years after the date of the referendum. 591 8. Component independent special districts merged pursuant 592 to an elector-initiated merger plan shall continue to be 593 governed as before the merger until the effective date specified 594 in the adopted elector-initiated merger plan. 595 (d) Effective date.—The effective date of the merger shall 596 be as provided in the joint merger plan or elector-initiated 597 merger plan, as appropriate, and is not contingent upon the 598 future act of the Legislature. 599 1. However, as soon as practicable, the merged independent 600 district shall, at its own expense, submit a unified charter for 601 the merged district to the Legislature for approval. The unified 602 charter must make the powers of the district consistent within 603 the merged independent district and repeal the special acts of 604 the districts which existed before the merger. 605 2. Within 30 business days after the effective date of the 606 merger, the merged independent district’s governing board, as 607 indicated in this subsection, shall hold an organizational 608 meeting to implement the provisions of the joint merger plan or 609 elector-initiated merger plan, as appropriate. 610 (e) Restrictions during transition period.—Until the 611 Legislature formally approves the unified charter pursuant to a 612 special act, each component independent special district is 613 considered a subunit of the merged independent district subject 614 to the following restrictions: 615 1. During the transition period, the merged independent 616 district is limited in its powers and financing capabilities 617 within each subunit to those powers that existed within the 618 boundaries of each subunit which were previously granted to the 619 component independent special district in its existing charter 620 before the merger. The merged independent district may not, 621 solely by reason of the merger, increase its powers or financing 622 capability. 623 2. During the transition period, the merged independent 624 district shall exercise only the legislative authority to levy 625 and collect revenues within the boundaries of each subunit which 626 was previously granted to the component independent special 627 district by its existing charter before the merger, including 628 the authority to levy ad valorem taxes, non-ad valorem 629 assessments, impact fees, and charges. 630 a. The merged independent district may not, solely by 631 reason of the merger, increase ad valorem taxes on property 632 within the original limits of a subunit beyond the maximum ad 633 valorem rate approved by the electors of the component 634 independent special district. For purposes of s. 2, Art. VII of 635 the State Constitution, each subunit may be considered a 636 separate taxing unit. The merged independent district may levy 637 an ad valorem millage rate within a subunit, if applicable, only 638 up to the millage rate that was previously approved by the 639 electors of the component independent special district unless an 640 increase in the millage rate is approved pursuant to state law. 641 b. The merged independent district may not, solely by 642 reason of the merger, charge non-ad valorem assessments, impact 643 fees, or other new fees within a subunit which were not 644 otherwise previously authorized to be charged. 645 3. During the transition period, each component independent 646 special district of the merged independent district must 647 continue to file all information and reports required under this 648 chapter as subunits until the Legislature formally approves the 649 unified charter pursuant to a special act. 650 4. The intent of this section is to preserve and transfer 651 all authority to the merged independent district which exists 652 within each subunit and was previously granted by the 653 Legislature and, if applicable, by referendum. 654 (f) Effect of merger, generally.—On and after the effective 655 date of the merger, the merged independent district shall be 656 treated and considered for all purposes as one entity under the 657 name and on the terms and conditions set for in the joint merger 658 plan or elector-initiated merger plan, as appropriate. 659 1. All rights, privileges, and franchises of each component 660 independent special district and all assets, real and personal 661 property, books, records, papers, seals and equipment, as well 662 as other things in action, belonging to each component 663 independent special district before merger, shall be deemed as 664 transferred to and vested in the merged independent district 665 without further act or deed. 666 2. All property, rights-of-way, and other interests are as 667 effectually the property of the merged independent district as 668 they were of the component independent special district before 669 the merger. The title to real estate, by deed or otherwise, 670 under the laws of this state vested in any component independent 671 special district before the merger, may not be deemed to revert 672 or be in any way impaired by reason of the merger. 673 3. The merged independent district is in all respects 674 subject to all obligations and liabilities imposed and possess 675 all the rights, powers, and privileges vested by law in other 676 similar entities. 677 4. Upon the effective date of the merger, the joint merger 678 plan or elector-initiated merger plan, as appropriate, is 679 subordinate in all respects to the contract rights of all 680 holders of any securities or obligations of the component 681 independent special districts outstanding at the effective date 682 of the merger. 683 5. The new registration of electors is not necessary as a 684 result of the merger, but all elector registrations of the 685 component independent special districts shall be transferred to 686 the proper registration books of the merged independent 687 district, and new registrations shall be made as provided by law 688 as if no merger had taken place. 689 (g) Governing board of merged independent district.— 690 1. From the effective date of the merger until the next 691 general election, the governing board of the merged independent 692 district shall be comprised of the governing board members of 693 each component independent special district, with such members 694 serving until the governing board members elected at the next 695 general election take office. 696 2. Beginning with the next general election following the 697 effective date of merger, the governing board of the merged 698 independent district shall be comprised of five members. The 699 office of each governing board member shall be designated by 700 seat, which shall be distinguished from other board member seats 701 by an assigned numeral: 1, 2, 3, 4, or 5. The governing board 702 members that are elected in this initial election following the 703 merger shall serve unequal terms of 2 and 4 years in order to 704 create staggered membership of the governing board, with: 705 a. Board member seats 1, 3, and 5 being designated for 4 706 year terms; and 707 b. Board member seats 2 and 4 being designated for 2-year 708 terms. 709 3. In general elections thereafter, all governing board 710 members shall serve 4-year terms. 711 (h) Effect on employees.—Except as otherwise provided by 712 law and except for those officials and employees protected by 713 tenure of office, civil service provisions, or a collective 714 bargaining agreement, upon the effective date of merger, all 715 appointive offices and positions existing in all component 716 independent special districts involved in the merger are subject 717 to the terms of the joint merger plan or elector-initiated 718 merger plan, as appropriate. Such plan may provide for instances 719 in which there are duplications of positions, and for other 720 matters such as varying lengths of employee contracts, varying 721 pay levels or benefits, different civil service regulations in 722 the constituent entities, and differing ranks and position 723 classifications for similar positions. For those employees who 724 are members of a bargaining unit certified by the Public 725 Employees Relations Commission, the requirements of chapter 447 726 apply. 727 (i) Debts, liabilities, and obligations.— 728 1. All valid and lawful debts and liabilities existing 729 against a merged independent district, or which may arise or 730 accrue against the merged independent district, which but for 731 merger would be valid and lawful debts or liabilities against 732 one or more of the component independent special districts, are 733 debts against or liabilities of the merged independent district 734 and accordingly shall be defrayed and answered to by the merged 735 independent district to the same extent, and no further than, 736 the component independent special districts would have been 737 bound if a merger had not taken place. 738 2. The rights of creditors and all liens upon the property 739 of any of the component independent special districts shall be 740 preserved unimpaired. The respective component districts shall 741 be deemed to continue in existence to preserve such rights and 742 liens, and all debts, liabilities, and duties of any of the 743 component districts attach to the merged independent district. 744 3. All bonds, contracts, and obligations of the component 745 independent special districts which exist as legal obligations 746 are obligations of the merged independent district, and all such 747 obligations shall be issued or entered into by and in the name 748 of the merged independent district. 749 (j) Effect on actions and proceedings.—In any action or 750 proceeding pending on the effective date of merger to which a 751 component independent special district is a party, the merged 752 independent district may be substituted in its place, and the 753 action or proceeding may be prosecuted to judgment as if merger 754 had not taken place. Suits may be brought and maintained against 755 a merged independent district in any state court in the same 756 manner as against any other independent special district. 757 (k) Annexation.—Chapter 171 continues to apply to all 758 annexations by a city within the component independent special 759 districts’ boundaries after merger occurs. Any moneys owed to a 760 component district pursuant to s. 171.093, or any interlocal 761 service boundary agreement as a result of annexation predating 762 the merger, shall be paid to the merged independent district 763 after merger. 764 (l) Determination of rights.—If any right, title, interest, 765 or claim arises out of a merger or by reason thereof which is 766 not determinable by reference to the provisions in this 767 subsection, the joint merger plan or elector-initiated merger 768 plan, as appropriate, or otherwise under the laws of this state, 769 the governing body of the merged independent district may 770 provide therefor in a manner conforming to law. 771 (m) Exemption.—This subsection does not apply to 772 independent special districts whose governing bodies are elected 773 by district landowners voting the acreage owned within the 774 district. 775 (n) Preemption.—This subsection preempts any special act to 776 the contrary. 777 (6) INVOLUNTARY MERGER OF INDEPENDENT SPECIAL DISTRICTS.—If 778 a local general-purpose government seeks to merge an active 779 independent special district or districts created and operating 780 pursuant to a special act whose board or boards object by 781 resolution to the merger, the merger of the active independent 782 special district or districts is not effective until the special 783 act of the Legislature is approved at separate referenda of the 784 impacted local governments by a majority of the resident 785 electors or landowners voting in the same manner by which each 786 independent special district’s governing board is elected. The 787 special act shall include a plan of merger that addresses 788 transition issues such as the effective date of the merger, 789 governance, administration, powers, pensions, and assumption of 790 all assets and liabilities. 791 (a) The political subdivisions proposing the involuntary 792 merger of an active independent special district shall be 793 responsible for payment of any expenses associated with the 794 referendum required under this subsection. 795 (b) Independent special districts that meet any criteria 796 for being declared inactive, or that have already been declared 797 inactive, pursuant to s. 189.4044 may by merged by special act 798 without a referendum. 799 (7)(3)EXEMPTIONS.—The provisions ofThis section does 800shallnot apply to community development districts implemented 801 pursuant to chapter 190 or to water management districts created 802 and operated pursuant to chapter 373. 803 Section 2. Section 191.014, Florida Statutes, is amended to 804 read: 805 191.014 District creation and,expansion, and merger.— 806 (1) New districts may be created only by the Legislature 807 under s. 189.404. 808 (2) The boundaries of a district may be modified, extended, 809 or enlarged upon approval or ratification by the Legislature. 810(3) The merger of a district with all or portions of other811independent special districts or dependent fire control812districts is effective only upon ratification by the813Legislature. A district may not, solely by reason of a merger814with another governmental entity, increase ad valorem taxes on815property within the original limits of the district beyond the816maximum established by the district’s enabling legislation,817unless approved by the electors of the district by referendum.818 Section 3. Paragraph (a) of subsection (1) and subsection 819 (4) of section 189.4044, Florida Statutes, are amended to read: 820 189.4044 Special procedures for inactive districts.— 821 (1) The department shall declare inactive any special 822 district in this state by documenting that: 823 (a) The special district meets one of the following 824 criteria: 825 1. The registered agent of the district, the chair of the 826 governing body of the district, or the governing body of the 827 appropriate local general-purpose government notifies the 828 department in writing that the district has taken no action for 829 2 or more years; 830 2. Following an inquiry from the department, the registered 831 agent of the district, the chair of the governing body of the 832 district, or the governing body of the appropriate local 833 general-purpose government notifies the department in writing 834 that the district has not had a governing board or a sufficient 835 number of governing board members to constitute a quorum for 2 836 or more years or the registered agent of the district, the chair 837 of the governing body of the district, or the governing body of 838 the appropriate local general-purpose government fails to 839 respond to the department’s inquiry within 21 days; or 840 3. The department determines, pursuant to s. 189.421, that 841 the district has failed to file any of the reports listed in s. 842 189.419. 843 4. The governing body of a special district provides 844 documentation to the Department that it has unanimously adopted 845 a resolution declaring the special district inactive. The 846 special district shall be responsible for payment of any 847 expenses associated with its dissolution. 848 (4) The entity that created a special district declared 849 inactive under this section must dissolve the special district 850 by repealing its enabling laws or by other appropriate means. 851 Any special district declared inactive pursuant to subparagraph 852 (1)(a)4., may be dissolved without a referendum. 853 Section 4. This act shall take effect July 1, 2011.