This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h0867a.LFS DATE: 1/10/2024 HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS BILL #: HB 867 North River Ranch Improvement Stewardship District, Manatee County SPONSOR(S): Robinson, W. TIED BILLS: IDEN./SIM. BILLS: REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF 1) Local Administration, Federal Affairs & Special Districts Subcommittee 16 Y, 0 N Roy Darden 2) State Affairs Committee SUMMARY ANALYSIS 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 special district has only those powers expressly provided by, or reasonably implied from, the authority provided in the district’s charter. The North River Ranch Improvement Stewardship District (NRRISD) is an independent special district in Manatee County created by special act in 2020. NRRISD provides community development systems, facilities, services, projects, improvements, and infrastructure to the area. The district is governed by a five-member board of supervisors elected on a one vote per acre basis for four-year terms. The District is authorized to impose ad valorem taxes and may levy user charges and fees, non-ad valorem maintenance taxes as authorized by general law, maintenance special assessments, and benefit special assessments. However, ad valorem taxes may be imposed only after all members of the board are elected on a popular vote basis and the levy of ad valorem taxes is approved by the district voters in a subsequent referendum. The bill expands the boundaries of NRRISD by approximately 111.27 acres to a total of 2,113.21 acres. The Economic Impact Statement filed with the bill indicates that the bill will raise an expected $500,000 in additional revenue, all of which is anticipated to be used for infrastructure and costs related to the jurisdictional expansion. STORAGE NAME: h0867a.LFS PAGE: 2 DATE: 1/10/2024 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 North River Ranch Improvement Stewardship District North River Ranch Improvement Stewardship District (NRRISD) is an independent special district created in 2020 by special act. 8 The NRRISD covers land in Manatee County and its purpose is to provide for a comprehensive community development approach that facilitates an integral relationship among regional transportation, land use, and urban design, creating a diverse mix of housing and regional employment and economic development opportunities, rather than fragmented development with underutilized infrastructure which is generally associated with urban sprawl. 9 The NRRISD is authorized to provide these services extraterritorially upon execution of an interlocal agreement. 10 The 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 Dec. 5, 2023). 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 Ch. 2020-191, Laws of Fla. 9 Ch. 2020-191, s. 1(2)(1)(b), Laws of Fla. 10 Ch. 2020-191, s. 1(3)(4), Laws of Fla. STORAGE NAME: h0867a.LFS PAGE: 3 DATE: 1/10/2024 district is governed by a five-member board of supervisors (board) elected to serve four-year terms either by the landowners or qualified electors residing in the district. 11 The NRRISD is authorized to impose ad valorem taxes and may levy user charges and fees, non-ad valorem maintenance taxes as authorized by general law, maintenance special assessments, and benefit special assessments. 12 However, ad valorem taxes may be imposed only after all members of the board are elected on a popular vote basis and the levy of ad valorem taxes is approved by the district voters in a subsequent referendum. 13 The district’s charter requires the board to obtain a resolution or other official statement from Manatee County stating the amendment is consistent with approved local government plans of the county and that the county has no objection to the amendment. 14 The district received this consent. 15 Effects of Proposed Changes The bill amends the charter of NRRISD in revising the boundary description and expanding the boundaries of the district. The bill adds three segments of the district totaling approximately 111.27 acres. The Economic Impact Statement filed with the bill indicates that the bill will raise an expected $500,000 in additional revenue, all of which is anticipated to be used for infrastructure and costs related to the jurisdictional expansion. B. SECTION DIRECTORY: Section 1: Amends ch. 2020-191, Laws of Fla., as amended, revising the boundaries of the North River Ranch Improvement Stewardship District. Section 2: Provides an effective date of upon becoming a law. II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS A. NOTICE PUBLISHED? Yes [x] No [] IF YES, WHEN? October 12, 2023 WHERE? The Bradenton Herald, a daily newspaper of general circulation published in Manatee County. B. REFERENDUM(S) REQUIRED? Yes [] No [x] IF YES, WHEN? 11 Ch. 2020-191, s. 1(5), Laws of Fla. As qualified electors move into the District, more members are chosen in an election of the qualified electorate rather than a landowners’ meeting. Once 15,000 qualified electors reside within the District, all five members will be elected by the qualified electorate. Ch. 2020-191, s.1(5)(3)(a)2.a(IV), Laws of Fla. 12 Ch. 2020-191, s. 1(6)(12), Laws of Fla. The District currently does not levy ad valorem taxes. The District may only levy ad valorem taxes subject to approval at a referendum held after the complete transition of the District’s board to election by the qualified electors of the District. 13 Ch. 2020-191, ss. 1(5)(3)(a)1. and 1(6)(12)(a), Laws of Fla. 14 Ch. 2021-191, s. 1(2)(3)(f), Laws of Fla. 15 See Manatee Cnty., Board of Cnty. Commissioners, Meeting Minutes for Sept. 26, 2023, available at https://www.mymanatee.org/government/board_of_county_commissioners/bcc_meetings_and_agendas (last visited Jan. 4, 2023). STORAGE NAME: h0867a.LFS PAGE: 4 DATE: 1/10/2024 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 neither provides authority for nor requires rulemaking by executive branch agencies. C. DRAFTING ISSUES OR OTHER COMMENTS: None. IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES None.