Florida 2023 2023 Regular Session

Florida House Bill H1169 Analysis / Analysis

Filed 07/10/2023

                     
This document does not reflect the intent or official position of the bill sponsor or House of Representatives. 
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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]