This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1401b.LAV
DATE: 2/3/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1401 Municipal Contraction Procedures
SPONSOR(S): Local Administration & Veterans Affairs Subcommittee, Persons-Mulicka
TIED BILLS: IDEN./SIM. BILLS: SB 1876
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration & Veterans Affairs
Subcommittee
16 Y, 0 N, As CS Mwakyanjala Miller
2) Public Integrity & Elections Committee
3) State Affairs Committee
SUMMARY ANALYSIS
Municipalities may redraw their boundaries through the contraction process, sometimes referred to as
deannexation. The municipal governing body or the residents of an area may propose contraction, which may
be subject to a referendum in certain cases. An area may only be proposed for contraction if it would not meet
the criteria for annexation under current law.
If a municipality seeks to annex an area where at least 70 percent of the land is owned by owners who are not
registered to vote, or there are no resident voters, the annexation statues provide a process to confirm
landowner approval of the proposed annexation. Currently, there is no equivalent process to deannex similar
property.
The bill adds two subsections to the current statute on contraction. The first addition provides that before
contraction may proceed, the approval of owners of 50 percent of the total area of the land in the area is
needed if 70 percent of the land to be contracted is owned by individuals, corporations, or legal entities that are
not registered electors of the area. The second change provides that if the area proposed for contraction does
not have any registered electors residing in the area on the date the ordinance proposed for the contraction of
municipal boundaries is adopted, a vote of the electors of the area is not required but the owners of at least 50
percent of the total land in the area and the owners of 50 percent of the parcels in the area must consent to the
contraction.
The bill does not appear to have an impact on state or local revenues or expenses. STORAGE NAME: h1401b.LAV PAGE: 2
DATE: 2/3/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Municipal Contraction (Deannexation)
Municipalities may redraw their boundaries through the contraction process, also referred to as
deannexation.
1
An area may be considered for exclusion upon the passage of an ordinance by the
municipality proposing exclusion
2
or by the filing of a petition by 15 percent of the qualified voters of the
area requesting exclusion. For a contraction proposal initiated by petition, the governing body must
conduct a study on the feasibility of the proposal and, within six months, decide to initiate contraction
procedures or reject the petition and state the factual basis for such rejection.
3
Once the contraction proposal is initiated, the governing body must publish notice of the proposed
contraction ordinance at least once a week for two consecutive weeks in a newspaper of general
circulation in the municipality.
4
This notice must:
Include a description of the area to be excluded;
Show the area fails to meet the general criteria for annexation;
Set the time and place for the municipal governing body meeting at which the proposed
ordinance will be considered; and
Advise that all affected persons may be heard.
Voter approval of the contraction is required if the municipal governing body calls for a referendum
election on the question in the area proposed for exclusion or residents of that area submit a petition at
the public meeting signed by at least 15 percent of the area’s qualified voters. The date for the
referendum is determined by the method used to call for the referendum.
5
The municipal governing
body is required to publish notice of the referendum election at least once a week for two consecutive
weeks in a newspaper of general circulation in the municipality or in the area proposed to be excluded.
6
If a majority of electors voting in the referendum opposes deannexation, the municipality is prohibited
from proposing the exclusion of the area in a contraction ordinance for a period of least two years.
7
An area removed from a municipality must fail to meet the criteria for annexation.
8
Under these criteria,
an area to be annexed must be contiguous to the annexing municipality, must be reasonably compact,
and must not be located within the boundaries of another municipality.
9
For annexation, an area must
also meet one of the following criteria:
The area is developed for urban purposes;
10
1
S. 171.051, F.S.
2
S. 171.051(1), F.S.
3
S. 171.051(2), F.S.
4
S. 171.051(3), F.S.
5
S. 171.051(6), F.S. If a referendum is required due to the filing of a petition signed by at least 15 percent of the area’s qualified
voters, the referendum must occur at the next regularly scheduled election. If the referendum is called at the discretion of the
municipal governing body, a special election is called no sooner than 30 days after the verification of the petition or the passage of the
resolution or ordinance calling for a referendum.
6
S. 171.051(7), F.S.
7
S. 171.051(10), F.S.
8
S. 171.052(1), F.S.
9
S. 171.043(1), F.S.
10
S. 171.043(2), F.S. An area is considered “developed for urban purposes” if it has a population density of 2 persons per acre, a
population density of 1 person per ace and at least 60 percent of the total lots and tracts in the area are less than or equal to 1 acre in
size, or 60 percent of the total lots and tracts in the area would otherwise be considered used for urban purposes and at least 60 percent STORAGE NAME: h1401b.LAV PAGE: 3
DATE: 2/3/2022
The area links the municipality with areas developed for urban purposes;
11
or
At least 60 percent of the boundary of the area is adjacent to the municipal boundary and lands
developed for urban purposes.
12
As with municipal contraction, annexation requires the governing body of the municipality to advertise
and conduct public meetings on a proposed ordinance, which then must be approved by the registered
electors within the area proposed for annexation.
13
If more than 70 percent of the land in the area
proposed for annexation is owned by individuals or entities that are not registered electors of the area,
annexation requires the consent of the owners of more than 50 percent of the land in the area.
14
If the
area proposed for annexation has no registered voters on the date the annexation ordinance is finally
adopted, a referendum is not required. However, in addition to requiring the consent of the owners of
more than 50 percent of the land in the area, annexation of an area without registered electors also
requires the consent of owners of more than 50 percent of the parcels of land in the area.
15
Current law
provides no similar process for municipal contraction.
16
The results of the contraction must not separate any portion of the municipality from the rest of the
municipality.
17
The contracting ordinance must provide for apportionment of any prior existing debt and
property.
18
The county and the municipal governing body must reach an agreement determining which
debt or property will be transferred to the county, the fair value of the debt or property, and the manner
of transfer and financing.
19
An area that has been deannexed is no longer subject to municipal laws,
ordinances, or regulations and becomes subject to any laws, ordinances, or regulations of the county
as of the effective date of the deannexation.
20
Effect of the Bill
The bill adds subsections to the statutory municipal contract procedures to mirror the requirements in
the annexation procedures for landowner approval where at least 70 percent of the land is held by
owners who are not registered electors of the area or where the area has no registered electors.
21
New subsection (11) provides that before contraction may proceed, the approval of owners of more
than 50 percent of the total area of land in the area is needed if 70 percent of the land to be deannexed
is owned by individuals, corporations, or legal entities that are not registered electors of the area. The
parties proposing the contraction must obtain the consent of the owners before the referendum to be
held on the contraction occurs.
New subsection (12) provides that if the area proposed for deannexation does not have any registered
electors residing in the area on the date the ordinance proposing the contraction of municipal
boundaries is adopted, a vote of the electors of the area is not required. The area may only be
contracted with the consent of the owners of more than 50 percent of the land together with the owners
of more than 50 percent of the parcels of land in the area. If no referendum is held on the topic of
municipal contraction, the required consent of the property owners shall be obtained by the parties
proposing the contraction before the final adoption of the ordinance. The bill provides that the
ordinance shall become effective upon its adoption or as otherwise provided.
of the total acreage of the area, excluding areas used for nonresidential urban purposes, is lots and tracts less than or equal to 5 acres in
size.
11
S. 171.043(3)(a), F.S.
12
S. 171.043(3)(b), F.S.
13
S. 171.0413, F.S.
14
S. 171.0413(5), F.S.
15
S. 171.0413(6), F.S.
16
S. 171.051, F.S.
17
S. 171.052(1), F.S.
18
S. 171.052(2), F.S.
19
S. 171.061(2), F.S.
20
S. 171.062(3), F.S.
21
See ss. 171.0413(5) and (6), F.S. STORAGE NAME: h1401b.LAV PAGE: 4
DATE: 2/3/2022
B. SECTION DIRECTORY:
Section 1: Adds subsections (11) and (12) to s. 171.051, F.S., adding requirements for landowner
approval in particular situations before municipal contraction may proceed.
Section 2: Provides the bill shall take effect 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
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 neither requires nor provides authority for administrative agency rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None. STORAGE NAME: h1401b.LAV PAGE: 5
DATE: 2/3/2022
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 2, 2022, the Local Administration & Veterans Affairs Subcommittee adopted an amendment to
the bill and reported the bill favorably as a committee substitute. The amendment mirrors the language in s.
171.0413(5), F.S., the landowner voting requirements for certain municipal annexations.
This analysis is drafted to the committee substitute adopted by the Local Administration and Veterans
Affairs Subcommittee.