This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1035.LAV
DATE: 1/14/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1035 Incorporation of Municipalities
SPONSOR(S): Williamson
TIED BILLS: IDEN./SIM. BILLS: SB 1554
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration & Veterans Affairs
Subcommittee
Darden Miller
2) Public Integrity & Elections Committee
3) State Affairs Committee
SUMMARY ANALYSIS
The Florida Constitution provides municipalities may be established or abolished and their charters amended
pursuant to general or special law. To facilitate this process, the Legislature passed the Formation of
Municipalities Act, governing the formation and dissolution of municipal governments in order to provide for:
Orderly patterns of urban growth and land use;
Adequate quality and quantity of local public services;
Financial integrity of municipalities;
The elimination or reduction of avoidable and undesirable differentials in fiscal capacity among
neighboring local governmental jurisdictions; and
Equity in the financing of municipal services.
As part of the incorporation process, a proposed municipality must submit a feasibility study to the Legislature
no later than the first Monday after September 1 of the year before the regular legislative session during which
the municipal charter would be enacted. The feasibility study must include:
The boundaries of the proposed municipality;
Information concerning land use, zoning, and proposed development;
Information concerning other public agencies and providers of services within the boundaries of the
proposed municipality;
A list of services to be provided with the proposed incorporation area;
The names and addresses of three officers or persons submitting the proposal;
Evidence of fiscal capacity, including information of revenue sources available to the proposed
municipality upon incorporation and a five-year operational plan that includes proposed staffing,
building acquisition, construction, debt issuance, and budgets;
Data and analysis to support the conclusion that incorporation is necessary and financially feasible,
including population projections and population density calculations, and an explanation concerning
methodologies used for such analysis;
An evaluation of the alternatives available to the area to address its policy concerns, and
Evidence that the proposed municipality meets the standards for incorporation in statute.
The bill:
Changes the deadline to submit a feasibility study for a proposed municipality from the first Monday
after September 1 to August 31 of the year before the regular legislative session during which the
municipal charter would be enacted; and
Requires the feasibility study document the passage of a non-binding referendum, conducted at a
primary or general election, indicating support for the proposed municipal incorporation by at least 60
percent of the electors within the area of the proposed municipality voting in the referendum. STORAGE NAME: h1035.LAV PAGE: 2
DATE: 1/14/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Municipal Incorporation
Constitutional Provisions
Municipalities may be established or abolished and their charters amended pursuant to general or
special law.
1
Municipalities are granted all governmental, corporate, and proprietary powers necessary
to conduct municipal government, perform municipal functions, and render municipal services.
Additionally, municipalities are authorized to exercise any power for municipal purposes except when
expressly prohibited by general or special law.
2
The power to tax is granted only by general law.
3
The
legislative body of a municipal government must be elected.
4
Municipal Home Rule Powers Act
The Municipal Home Rule Powers Act structures the use of the constitutional powers authorized for
municipalities.
5
A special law forming a municipality or a municipal charter may not be amended without
a referendum of the affected voters if the change impacts:
The exercise of extraterritorial powers;
An area that includes lands within and without a municipality;
The creation or existence of a municipality;
The terms of elected officers and their manner of election, except for the selection of election
dates and qualifying periods for candidates and for changes in terms necessitated by change in
election dates;
The distribution of powers among elected officers;
Matters prescribed by charter relating to appointive boards;
Any change in form of government; or
Any rights of municipal employees.
6
Formation of Municipalities Act
The Formation of Municipalities Act (Formation Act) governs the formation and dissolution of municipal
governments.
7
The stated purpose of the Formation Act is to provide standards, direction, and
procedures for the incorporation, merger, and dissolution of municipalities so as to achieve:
Orderly patterns of urban growth and land use;
Adequate quality and quantity of local public services;
Financial integrity of municipalities;
The elimination or reduction of avoidable and undesirable differentials in fiscal capacity among
neighboring local governmental jurisdictions; and
Equity in the financing of municipal services.
8
Under the Formation Act, a municipal government may be established where no such government
exists only if the Legislature adopts the municipal charter by special act after determining the
1
Art. VIII, s. 2(a), Fla. Const. A municipality is a local government entity, located within a county that is created to perform additional
functions and provide additional services for the particular benefit of the population within the municipality. The term “municipality” can
be used interchangeably with the terms “city,” “town,” and “village.”
2
Art. VIII, s. 2(b), Fla. Const.
3
Art. VII, s. 9(a), Fla. Const.
4
Art. VIII, s. 2(b), Fla. Const.
5
Ch. 166, F.S.
6
S. 166.021(4), F.S. The charter of a municipality may be amended by a referendum called pursuant to s. 166.031, F.S.
7
Ch. 165, F.S.
8
S. 165.021, F.S. STORAGE NAME: h1035.LAV PAGE: 3
DATE: 1/14/2022
appropriate standards have been met.
9
With certain exceptions, the Legislature has chosen to create
the charter for a new municipality only by special act.
10
Requirements for Municipal Incorporation
Standards for Incorporation
The area proposed for incorporation must meet the following conditions in order to be eligible for
incorporation:
11
Be compact, contiguous, and amenable to separate municipal government.
Have a total population, as determined in the latest official state census, special census, or
estimate of population, of at least 1,500 persons in counties with a population of 75,000 or less,
and of at least 5,000 persons in counties with a population of more than 75,000.
Have an average population density of at least 1.5 persons per acre or have extraordinary
conditions requiring the establishment of a municipal corporation with less existing density.
Have a minimum distance of at least two miles from the boundaries of any existing municipality
within the county or have an extraordinary natural boundary that requires separate municipal
governments.
Have a proposed municipal charter that prescribes the form of government and clearly defines
the responsibility for legislative and executive functions, and does not prohibit the legislative
body from exercising its power to levy any tax authorized by the Florida Constitution or general
law.
Have a plan for incorporation that honors existing contracts for solid waste collection services in
the affected areas for the shorter of five years or the remainder of the contract term.
12
Special Act
Special acts for municipal incorporation are initiated as local bills. A local bill is legislation relating to (or
designed to operate only in) a specifically indicated part of the state or purporting to operate within a
classified territory when such classification is not permissible or legal in a general bill.
13
To incorporate
a municipality, the special act must include a proposed municipal charter prescribing the form of
government and clearly defining the legislative and executive functions of city government. The special
act may not prohibit or limit tax levies otherwise authorized by law.
14
A bill proposing creation of a
municipality is reviewed based on the statutory standards for municipal incorporation.
15
Because municipal incorporation creates a new local government within an area, the Legislature has
made such special acts subject to approval by a referendum of the affected voters.
16
Feasibility Study
A feasibility study and a local bill proposing the municipal government charter must be submitted to the
Legislature for consideration of incorporation. The feasibility study is a detailed report about the
proposed area to be incorporated. The purpose of the study is to inform the Legislature as to whether
9
S. 165.022, F.S. An exception to this principle is the home rule authority of Miami-Dade County, where the board of county
commissioners has been granted the exclusive power to create municipalities within that county through the Florida Constitution. See s.
165.022, F.S., and art. VIII, s. 6(e), Fla. Const. Adopted in 1957, the Miami-Dade County Home Rule Charter provides for the creation
of new municipalities at art. 6, s. 6.05.
10
S. 165.041(1)(a), F.S. Municipalities in Miami-Dade County are created only by the Miami-Dade County Commission. See art. VIII, s.
6(e), Fla. Const., incorporating art. VIII, s. 11, Fla. Const. (1885, as amended); s. 165.22, F.S. (conversion of certain independent
special districts to a municipality is by petition and referendum of the district electors). See s. 165.0615, F.S.
11
S. 165.061(1), F.S.
12
See art. I, s. 10, Fla. Const.
13
State ex rel. Landis v. Harris, 163 So. 237, 240 (Fla. 1934).
14
S. 165.061(1)(e)2., F.S.
15
S. 165.061, F.S.
16
See, e.g., ch. 2014-249, Laws of Fla. (authorizing referendum to create the Village of Estero), ch, 2015-182, Laws of Fla. (authorizing
referendum to create the City of Panacea), ch. 2017-195, Laws of Fla. (authorizing referendum to create the Village of Indiantown), and
ch. 2018-166, Laws of Fla. (authorizing referendum to create the Town of Hobe Sound). STORAGE NAME: h1035.LAV PAGE: 4
DATE: 1/14/2022
the area meets the statutory requirements for incorporation and if incorporation is financially feasible.
The feasibility study must be completed and submitted to the Legislature no later than the first Monday
after September 1 of the year before the regular legislative session during which the municipal charter
would be enacted.
17
In 1999, the Legislature adopted detailed requirements for the preparation of the required feasibility
study for any area requesting incorporation.
18
Specifically, the study must include:
The general location of territory subject to a boundary change and a map of the area that
identifies the proposed change.
The major reasons for proposing the boundary change.
The following characteristics of the area:
o A list of the current land use designations applied to the subject area in the county
comprehensive plan.
o A list of the current county zoning designations applied to the subject area.
o A general statement of present land use characteristics of the area.
o A description of development being proposed for the territory, if any, and a statement of
when actual development is expected to begin, if known.
A list of all public agencies, such as local governments, school districts, and special districts,
whose current boundaries fall within the boundary of the territory proposed for the change or
reorganization.
A list of current services being provided within the proposed incorporation area, including, but
not limited to, water, sewer, solid waste, transportation, public works, law enforcement, fire and
rescue, zoning, street lighting, parks and recreation, and library and cultural facilities, and the
estimated costs for each current service.
A list of proposed services to be provided within the proposed incorporation area, and the
estimated cost of such proposed services.
The names and addresses of three officers or persons submitting the proposal.
Evidence of fiscal capacity and an organizational plan that, at a minimum, includes:
o Existing tax bases, including ad valorem taxable value, utility taxes, sales and use taxes,
franchise taxes, license and permit fees, charges for services, fines and forfeitures, and
other revenue sources, as appropriate.
o A five-year operational plan that, at a minimum, includes proposed staffing, building
acquisition and construction, debt issuance, and budgets.
Data and analysis to support the conclusion that incorporation is necessary and financially
feasible, including population projections and population density calculations, and an
explanation concerning methodologies used for such analysis.
Evaluation of the alternatives available to the area to address its policy concerns.
Evidence that the proposed municipality meets the statutory standards for incorporation.
19
In counties that have adopted a municipal overlay for municipal incorporation, such information must
also be submitted in the feasibility study.
20
17
S. 165.041(1)(b), F.S.
18
S. 165.041, F.S.
19
See s. 165.061, F.S.
20
S. 165.041(1)(c), F.S. Municipal overlays are adopted pursuant to s. 163.3217, F.S. STORAGE NAME: h1035.LAV PAGE: 5
DATE: 1/14/2022
Referenda
A county or municipality may, by enabling ordinance or resolution, submit a referendum on a matter of
public importance to the electors of the county or municipality.
21
The enabling ordinance or resolution
must contain a ballot summary of no more than 75 words and the title to appear on the ballot. The
ballot summary must be printed in clear and unambiguous language such that a “yes” vote will indicate
approval of the proposal and a “no” vote will indicate rejection.
Effect of Proposed Changes
The bill changes the deadline to submit a feasibility study for a proposed municipality from the first
Monday after September 1 of the year before the regular legislative session during which the municipal
charter would be enacted to August 31 of that year.
The bill would also require that the feasibility study contain evidence documenting the passage of a
non-binding referendum, conducted at a primary or general election, indicating support for the
proposed new municipality by at least 60 percent of the electors within the affected area voting in the
referendum.
B. SECTION DIRECTORY:
Section 1: Amends s. 165.041, F.S., revising submission deadline for feasibility studies for
proposed municipalities and requiring evidence of voter support in a non-binding
referendum.
Section 2: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
21
See s. 101.161(1), F.S. STORAGE NAME: h1035.LAV PAGE: 6
DATE: 1/14/2022
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not provide rulemaking authority or require executive branch rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES