This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1169z1.LFS.docx
DATE: 7/10/2023
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: HB 1169 Hamilton County
SPONSOR(S): Shoaf
TIED BILLS: IDEN./SIM. BILLS:
FINAL HOUSE FLOOR ACTION: 113 Y’s
0 N’s GOVERNOR’S ACTION: Approved
SUMMARY ANALYSIS
HB 1169 passed the House on March 31, 2023, and subsequently passed the Senate on May 4, 2023.
A “special district” is a unit of local government created for a particular purpose, with jurisdiction to operate
within a limited geographic boundary. Special districts are created by general law, special act, local ordinance,
or rule of the Governor and Cabinet. A “dependent special district” is a special district subject to significant
control by the governing body of a single county or municipality.
The Hamilton County Development Authority (Authority) is an independent special district created by a special
act in 1959. The Authority assists the growth of existing businesses in Hamilton County and encourages new
investments and industry for the community. The Authority is governed by an eight-member board of
supervisors made up of qualified electors appointed by the Governor to serve three-year terms. The Authority’s
proposed budget for Fiscal Year 2021-22 was $3.5 million, primarily funded by the phosphate rock severance
tax. The Authority will be dissolved on June 1, 2023, per general law, unless reestablished on or after that
date.
The bill reestablishes the Authority and provides a new charter. The new charter largely mirrors the existing
charter, except that the new chapter:
Specifies that the boundaries of the district are coextensive with boundaries of Hamilton County; and
Provides for a seven-member governing board serving four-year terms, with five members appointed
by the Governor, one from each county commission district, and two members appointed by the
Hamilton County Board of County Commissioners.
The bill does not appear to create any additional fiscal impact on the District.
The bill was approved by the Governor on May 31, 2023, ch. 2023-336, L.O.F., and will become effective on
June 1, 2023.
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I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
Present Situation
Special Districts
A “special district” is a unit of local government created for a particular purpose, with jurisdiction to
operate within a limited geographic boundary.
1
A special district may be created by general law, special
act, local ordinance, or rule of the Governor and Cabinet.
2
A special district has only those powers
expressly provided by, or reasonably implied from, the authority provided in the district’s charter.
3
Special districts provide specific municipal services in addition to, or in place of, those provided by a
municipality or county.
4
A “dependent special district” is a special district meeting at least one of the following criteria:
The membership of the district’s governing body is identical to the governing body of a single
county or municipality;
All members of the district’s governing body are appointed by the governing body of a single
county or municipality;
Members of the district’s governing body are removable at will by the governing body of a single
county or municipality; or
The district’s budget is subject to approval by the governing body of a single county or
municipality.
5
An “independent special district” is any district that is not a dependent special district or one that
includes more than one county unless the district lies wholly within a single municipality.
6
According to the Department of Economic Opportunity’s (DEO) Special District Accountability Program
Official List of Special Districts (Official List of Districts), there are 1,918 special districts, including
1,303 independent special districts and 615 dependent districts.
7
Special districts do not possess “home rule” powers and may impose only those taxes, assessments, or
fees authorized by special or general law. The special act creating an independent special district may
provide for funding from a variety of sources while prohibiting others. For example, ad valorem tax
authority is not mandatory for a special district.
8
Generally, the maximum millage rate for an independent special district is the millage rate authorized
by law and approved by the electors of the district in a referendum.
9
The 1968 Florida Constitution,
however, provides that an independent special district with ad valorem tax authority established by law
1
S. 189.012(6), F.S. See also Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547-48 (Fla. 2019).
2
S. 189.012(6), F.S.
3
See ss. 189.02(4)-(5) and 189.031(3), F.S. Counties and municipalities have “home rule” powers allowing them to enact ordinances
not inconsistent with general or special law for governmental, corporate, or proprietary purposes. Special districts do not possess home
rule powers and are permitted to impose only those taxes, assessments, or fees authorized by special or general law. See art. VIII, ss.
1(f) and (g), 2(b), s. 6(e), Fla. Const. and ss. 125.01 and 166.021, F.S. See also Local Gov’t Formation Manual 62, available at
https://myfloridahouse.gov/Sections/Committees/committeesdetail.aspx?CommitteeId=3227 (last visited March 3, 2023).
4
Local Gov’t Formation Manual at 62.
5
S. 189.012(2), F.S.
6
S. 189.012(3), F.S. Independent special districts are created by the Legislature, unless another mechanism is authorized by general
law. See, e.g. s. 190.005, F.S. (community development districts may be created by a county, municipality, or the Florida Land and
Water Adjudicatory Commission, depending on the size and location of the district).
7
Dept. of Economic Opportunity, Special Dist. Accountability Program, “Official List of Special Districts,”
https://specialdistrictreports.floridajobs.org/OfficialList/DistrictWebsitePDF (last visited March 3, 2023).
8
See art. VII, s. 9(a), Fla. Const.
9
See art. VII, s. 9(b), Fla. Const.
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before its effective date may continue to exercise that authority, but that the authority may be restricted
or withdrawn by law unless such power is necessary to pay outstanding debts.
10
Formation and Charter of an Independent Special District
With the exception of community development districts,
11
the charter for an independent special district
must include the minimum elements required by ch. 189, F.S.
12
Charters of independent special
districts must address and include a list of required provisions, including the purpose of the district, its
geographical boundaries, taxing authority, bond authority, and selection procedures for the members of
its governing body.
13
Independent Special District Dissolution
Generally, an independent special district may be dissolved in one of the four following ways:
Voluntary dissolution by a majority vote plus one of the district’s board;
14
For districts created by special act, the passage of a special act dissolving the district, subject to
approval by a majority vote of the residents or landowners of the district;
15
For districts created by a local government, voter approval of a referendum dissolving the
district or by the procedure used to create the district;
16
or
For districts that have been declared inactive by DEO, by special act or ordinance without a
referendum.
17
Additionally, s. 189.0311(2), F.S., provides for the dissolution of all independent special districts created
by special act prior to the ratification of the Florida Constitution on November 5, 1968, if those districts
are not reestablished, re-ratified, or otherwise reconstituted by a special act or general law after that
date.
18
Such districts dissolve on June 1, 2023, unless reestablished pursuant to the requirements and
limitations of ch. 189, F.S., on or after that date. According to the Official List of Districts, 132 active
independent special districts were created by special act before November 5, 1968,
19
and of those
districts, six do not operate under a charter that was reestablished, re-ratified, or otherwise
reconstituted by a special act or general law after November 5, 1968.
20
Unless otherwise provided by law or ordinance, all assets and liabilities of a dissolved independent
special district are transferred to the local general-purpose government having jurisdiction over the
territory of the district.
21
10
Art. XII, ss. 2, 15, Fla. Const. See also art. IX, s. 2, Fla. Const. (1885), amended by SJR 69 (1939) (approved by the voters Nov. 5,
1940) (prohibition on state levy of ad valorem taxes for state purposes). Bailey v. Ponce de Leon Port Authority, 398 So. 2d 812 (Fla.
1981); see also Hillsborough County v. Tampa Port Authority, 563 So. 2d 1108 (Fla. 2d DCA 1990).
11
S. 189.0311, F.S.; see s. 190.004, F.S. (providing that ch. 190, F.S., governs the functions and powers of independent community
development districts).
12
Ss. 189.031(1) and (3), F.S., sets forth the minimum charter requirements for an independent special district.
13
S. 189.031(3), F.S. (setting forth the minimum charter requirements).
14
S. 189.072(1), F.S. If the district was created by special act, dissolution also requires a special act of the Legislature to take effect.
15
S. 189.072(2)(a), F.S.
16
S. 189.072(2)(b), F.S. If the district has the power to levy ad valorem taxes, a referendum is required for dissolution. See Art. VII, s.
9(b), Fla. Const.
17
S. 189.072(3), F.S.
18
Created by ch. 2022-266, Laws of Fla.
19
Dept. of Economic Opportunity, Special Dist. Accountability Program, “Official List of Special Districts,”
https://specialdistrictreports.floridajobs.org/OfficialList/DistrictWebsitePDF (last visited March 3, 2023).
20
Bradford County Development Authority, Bradford County; Eastpoint Water and Sewer District, Franklin County; Hamilton County
Development Authority, Hamilton County; Marion County Law Library, Marion County; Reedy Creek Improvement District, Orange and
Osceola Counties; and Sunshine Water Control District, Broward County will dissolve on June 1, 2023, unless re-established pursuant
to the requirements and limitations of ch. 189, F.S., on or after that date. Of those scheduled to sunset, Eastpoint Water and Sewer
District, Reedy Creek Improvement District, and Sunshine Water Control District have debt obligations.
21
Ss. 189.072(4) and 189.076(2), F.S.
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Hamilton County Development Authority
The Hamilton County Development Authority (Authority) is an independent special district created by a
special act in 1959.
22
The Authority assists existing local businesses in Hamilton County and
encourages investments and industry in the community.
23
The Authority is governed by an eight-
member board of supervisors made up of qualified electors appointed by the Governor to serve three-
year terms.
24
The Authority’s proposed budget for Fiscal Year 2021-22 was $3.5 million,
25
primarily
funded by the phosphate rock severance tax.
26
Effect of the Bill
The bill reestablishes the Authority, effective June 1, 2023, and provides a new charter for the district.
The new charter for the Authority largely mirrors the existing charter, while removing provisions that are
now provided for in general law. The new charter differs from the existing charter in two ways:
Specifies the boundaries of the authority are coextensive with the boundaries of Hamilton
County; and
Provides for a seven-member governing board serving four-year terms, with five members
appointed by the Governor, one from each county commission district, and two members
appointed by the Hamilton County Board of County Commissioners.
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. ECONOMIC IMPACT STATEMENT FILED? Yes [X] No []
22
Ch. 59-1322, Laws of Fla.
23
Hamilton County Development Authority, About HCDA, https://www.hamiltoncda.org/about-hcda/ (last visited Mar. 3, 2023).
24
Ch. 59-1322, s. 4, Laws of Fla.
25
2021 Hamilton County Development Authority Financial Statements 23, available at
https://flauditor.gov/pages/specialdistricts_efile%20rpts/2021%20hamilton%20county%20development%20authority.pdf (last visited
Mar. 3, 2023).
26
2021 Hamilton County Development Authority Financial Statements 10, available at
https://flauditor.gov/pages/specialdistricts_efile%20rpts/2021%20hamilton%20county%20development%20authority.pdf (last visited
Mar. 3, 2023).
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D. NOTICE PUBLISHED? Yes [X] No []
IF YES, WHEN? January 25, 2023
WHERE? The Riverbend News, a weekly newspaper in Suwannee, Lafayette, and Hamilton
Counties.
C. REFERENDUM(S) REQUIRED? Yes [] No [X]