This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h0821c.ISC DATE: 2/8/2024 HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS BILL #: CS/HB 821 Melbourne-Tillman Water Control District, Brevard County SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee, Altman TIED BILLS: IDEN./SIM. BILLS: SB 1180 REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF 1) Local Administration, Federal Affairs & Special Districts Subcommittee 15 Y, 0 N, As CS Mwakyanjala Darden 2) Infrastructure Strategies Committee 23 Y, 0 N Guy-Hudson Harrington 3) State Affairs Committee SUMMARY ANALYSIS Special districts are units 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 special district has only those powers expressly provided by, or reasonably implied from, the authority provided in the district’s charter. The Melbourne-Tillman Water Control District (District) was created in 1986 and its charter was recodified in 2001. The District provides a water management system to prevent damage from flooding, erosion, and excessive drainage. The District is funded by non-ad valorem user fees applied to each parcel within the District’s boundary based on property size and use. The District’s fees must be approved by both a majority of the entire membership of Brevard County Board of County Commissioners and the affirmative vote of each county commissioner whose district lies wholly or partially within the District. The District’s charter provides a limitation on both the annual rate at which the fee may increase, as well as maximum fee amount. The bill increases the maximum stormwater management user fee the District may charge. The Economic Impact Statement indicates that the bill will not have a fiscal impact. STORAGE NAME: h0821c.ISC PAGE: 2 DATE: 2/8/2024 FULL ANALYSIS I. SUBSTANTIVE ANALYSIS A. EFFECT OF PROPOSED 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 Special districts are 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. Special districts provide specific municipal services in addition to, or in place of, those provided by a municipality or county. 3 Special districts are funded through the imposition of ad valorem taxes, fees, or charges on the users of those services as authorized by law. 4 Special districts may be classified as dependent or independent based on their relationship with local general-purpose governments. A special district is classified as “dependent” if the governing body of a single county or municipality: Serves as governing body of the district; Appoints the governing body of the district; May remove members of the district’s governing body at-will during their unexpired terms; or Approves or can veto the budget of the district. 5 A district is classified as “independent” if it does not meet any of the above criteria or is located in more than one county, unless the district lies entirely within the boundaries of single municipality. 6 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. 7 Water Control Districts Chapter 298, F.S., governs the creation and operation of water control districts (WCD). A WCD has authority and responsibility to construct, complete, operate, maintain, repair, and replace any and all works and improvements necessary to execute the water control plan adopted by that district. 8 A WCD may build and construct any other works and improvements deemed necessary to preserve and maintain the works in or out of said district. A WCD also may acquire, construct, operate, maintain, use, purchase, sell, lease, convey, or transfer real or personal property, including pumping stations, pumping machinery, motive equipment, electric lines and all appurtenant or auxiliary machines, devices, or equipment. 9 As of January 18, 2024, there were 82 active water control districts. 10 1 See Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547 (Fla. 2019). 2 See ss. 189.02(1), 189.031(3), and. 190.005(1), F.S. See generally s. 189.012(6), F.S. 3 Local Administration, Federal Affairs & Special Districts Subcommittee, The Local Government Formation Manual, 62, available at https://myfloridahouse.gov/Sections/Committees/committeesdetail.aspx?CommitteeId=3227 (last visited Jan. 14, 2024). 4 The method of financing a district must be stated in its charter. Ss. 189.02(4)(g), 189.031(3), F.S. Independent special districts may be authorized to impose ad valorem taxes as well as non-ad valorem special assessments in the special acts comprising their charters. See, e.g., ch. 2023-335, s. 6 of s. 1, Laws of Fla. (East River Ranch Stewardship District). See also, e.g., ss. 190.021 (community development districts), 191.009 (independent fire control districts), 197.3631 (non-ad valorem assessments), 298.305 (water control districts), 388.221 (mosquito control), ch. 2004-397, s. 27 of s. 3, Laws of Fla. (South Broward Hospital District). 5 S. 189.012(2), F.S. 6 S. 189.012(3), F.S. 7 See, e.g., ch. 2006-354, Laws of Fla. (Argyle Fire District may impose special assessments, but has no ad valorem tax authority). 8 S. 298.22, F.S. 9 S. 298.22(3), F.S. 10 Dept. of Commerce, Special District Accountability Program, Official List of Special Districts, available at https://specialdistrictreports.floridajobs.org/OfficialList/CustomList (last visited Jan. 18, 2024). STORAGE NAME: h0821c.ISC PAGE: 3 DATE: 2/8/2024 Prior to July 1, 1980, WCDs were created by the submission of a petition signed by a majority of the landowners in the area of the proposed district to the circuit court that had jurisdiction over the area. 11 Today, WCDs may be created only by special act or by county ordinance. 12 Most WCDs are governed by a three-member board composed of landowners within the district who are also residents of the county where the district is located. 13 Landowners vote for the governing board of the district on a one-acre/one-vote basis, with the three persons receiving the highest number of votes elected in the initial election. 14 Landowners may vote in person or by a signed proxy statement. The landowners at the initial election determine the length of the term of office for the initial board, selecting one member to serve a one-, two-, or three-year term, respectively. All members subsequently elected serve a three-year term, with one member of the board elected by the landowners each year. 15 Melbourne-Tillman Water Control District The Melbourne-Tillman Water Control District (District) is a dependent special district created in 1986. 16 The District charter was recodified in 2001. 17 The District provides a water management system to prevent damage from flooding, erosion, and excessive drainage. 18 The District contains 100 square miles within its boundaries, and owns and maintains over 2,300 acres of canal rights-of-way in 163 miles of canals. 19 The District is governed by a seven-member board of directors, comprised of three members appointed by the Brevard County Board of County Commissioners, three members appointed by the City of Palm Bay City Council, and one member appointed by the City of West Melbourne City Council. 20 The District is funded by non-ad valorem user fees applied to each parcel within the District’s boundary based on property size and use. 21 The District’s charter provided an initial stormwater management fee rate structure per acre or portion thereof for the 1990-91 budget year: Residential - $10. Agricultural - $3.50. Commercial - $8.50. 22 The District’s charter limits any annual increase in the stormwater management fee to ten percent of the prior year’s fee for that type of parcel. Additionally, the charter provides a maximum stormwater management user fee per acre or portion thereof as follows: Residential – $25. Agricultural – $8.50. Commercial – $52.50. 23 11 See s. 298.01, F.S. (authorizing “water control districts established prior to July 1, 1980, pursuant to the process formerly contained in this section and former ss. 298.02 and 298.03, may continue to operate as outlined in this chapter.”) See also s. 298.01, F.S. (1980) and ch. 79-5, ss. 1-3, Laws of Fla. Originally, the Board of Drainage Commissioners for the State also had authority to prepare and file a petition to form a drainage district. See ch. 6458, s. 1, Laws of Fla. (1913). 12 S. 289.01, F.S. 13 S. 298.11(1), F.S. 14 S. 298.11(2), F.S. Landowners who own less than one acre receive one vote, while landowners who own more than one acre are entitled to additional votes for any fraction of an acre greater than one-half owned in addition to votes equal to the number of whole acres owned. 15 S. 298.12(1), F.S. 16 Ch. 86-418, Laws of Fla. 17 Ch. 2001-336, Laws of Fla. Ch. 2001-336, s. 3, Laws of Fla., amended by chs. 2003-334, 2010-253, and 2019-175, Laws of Fla., contain the charter of the district (hereinafter District Charter) 18 Melbourne-Tillman Water Control District, District Overview, http://www.melbournetillman.org/ (last visited Jan. 18, 2024). 19 Id. 20 District Charter, s. 4. 21 See Melbourne-Tillman Water Control District, FY 2023-2024 Budget, https://melbournetillman.org/wp- content/uploads/2023/09/Amended-Budget-FY-2023-2024.pdf (last visited Jan. 18, 2024). 22 District Charter, s. 8(12)(d). 23 Id. STORAGE NAME: h0821c.ISC PAGE: 4 DATE: 2/8/2024 The stormwater management fee levied by the District must be approved the Brevard County Board of County Commissioners after conducting a special public hearing within the boundaries of the District. 24 Approval of the fee requires both a majority vote of all members of the Brevard County Board of County Commissioners and an affirmative vote from each county commissioner whose district lies wholly or partially within the District. 25 Effect of the Bill The bill removes obsolete language from the District’s charter pertaining to initial stormwater management fees levied for the 1990-91 budget year. The bill also increases the maximum stormwater management user fee per acre or portion thereof the District may charge. The bill increases the fee maximums to: Residential – $50. Agricultural – $17. Commercial – $105. The Economic Impact Statement indicates that the bill will not have a fiscal impact. B. SECTION DIRECTORY: Section 1: Amends ch. 2001-336, Laws of Fla., as amended by chs. 2003-334, 2010-253, and 2019-175, Laws of Fla., relating to the Melbourne-Tillman Water Control District. Section 2: Provides an effective date of July 1, 2024. II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS A. NOTICE PUBLISHED? Yes [X] No [] IF YES, WHEN? November 8, 2023. WHERE? The Florida Today, a newspaper of general circulation in Brevard County. B. REFERENDUM(S) REQUIRED? Yes [] No [X] IF YES, WHEN? C. LOCAL BILL CERTIFICATION FILED? Yes [X] No [] D. ECONOMIC IMPACT STATEMENT FILED? Yes [X] No [] III. COMMENTS A. CONSTITUTIONAL ISSUES: None. B. RULE-MAKING AUTHORITY: The bill does not provide rulemaking authority or require executive branch rulemaking. C. DRAFTING ISSUES OR OTHER COMMENTS: None. 24 District Charter, s. 8(12)(b). 25 District Charter, s. 8(12)(c) STORAGE NAME: h0821c.ISC PAGE: 5 DATE: 2/8/2024 IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES On January 25, 2024, the Local Administration, Federal Affairs & Special Districts Subcommittee adopted an amendment and reported the bill favorably as a committee substitute. The amendment changed the effective date from upon becoming a law to July 1, 2024. The analysis is drafted to the committee substitute as approved by the Local Administration, Federal Affairs & Special Districts Subcommittee.