This document does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h0867z1.LFS.docx DATE: 7/2/2024 HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS BILL #: CS/HB 867 North River Ranch Improvement Stewardship District, Manatee County SPONSOR(S): State Affairs Committee; Robinson, W. TIED BILLS: IDEN./SIM. BILLS: FINAL HOUSE FLOOR ACTION: 115 Y’s 0 N’s GOVERNOR’S ACTION: Approved SUMMARY ANALYSIS CS/HB 867 passed the House on February 22, 2024, and subsequently passed the Senate on March 7, 2024. 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 or district) is an independent special district in Manatee County created in 2020. The NRRISD provides infrastructure using 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. 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 but 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. In addition, the NRRISD may levy user charges and fees, non-ad valorem maintenance taxes as authorized by general law, maintenance special assessments, and benefit special assessments. The bill revises the boundaries of the NRRISD to add additional parcels and remove land purchased by Manatee County for the construction of a school and public roadway. The net change in the total size of the district is approximately 111.27 acres, bringing the district to a total of 2,113.21 acres. The Economic Impact Statement indicates 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. The bill was approved by the Governor on May 16, 2024, ch. 2024-287, L.O.F., and became effective on that date. STORAGE NAME: h0867z1.LFS.docx PAGE: 2 DATE: 7/2/2024 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 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 a 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 or district) is an independent special district created in 2020. 8 The NRRISD covers land in Manatee County and its purpose is to provide infrastructure 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 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. 16, 2024). 4 The method of financing a district must be stated in its charter. Ss. 189.02(4)(g) and 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), and 388.221, F.S. (mosquito control), and 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. STORAGE NAME: h0867z1.LFS.docx PAGE: 3 DATE: 7/2/2024 NRRISD is authorized to provide district services extraterritorially upon execution of an interlocal agreement. 10 The district is governed by a five-member board of supervisors (board) elected by the landowners on a one-acre, one-vote basis to serve four-year terms. 11 As qualified electors move into the district, members will be chosen in an election of the qualified electorate rather than at a landowners’ meeting, and once 15,000 qualified electors reside within the district, all five members will be elected by the qualified electorate. 12 The NRRISD is authorized to levy ad valorem taxes but 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 In addition, the NRRISD may levy user charges and fees, non-ad valorem maintenance taxes as authorized by general law, maintenance special assessments, and benefit special assessments. 14 The district’s charter provides that the charter may only be amended by special act of the Legislature. However, the board may not ask the Legislature to amend its charter without first obtaining a resolution or 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. 15 The district received this consent. 16 Effect of the Bill The bill amends the charter of the NRRISD by revising the boundary description to add additional parcels to the district and remove land purchased by Manatee County for the construction of a school and public roadway. The net change in the total size of the district is approximately 111.27 acres, bringing the district to a total of 2,113.21 acres. II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT A. FISCAL IMPACT ON STATE GOVERNMENT: 1. Revenues: None. 2. Expenditures: None. 10 Ch. 2020-191, s. 1(3)(4), Laws of Fla. 11 Ch. 2020-191, s. 1(5), Laws of Fla. 12 Ch. 2020-191, s.1(5)(3)(a)2.a(IV), Laws of Fla. 13 Ch. 2020-191, ss. 1(5)(3)(a)1. and 1(6)(12)(a), Laws of Fla. The district currently does not levy ad valorem taxes. 14 Ch. 2020-191, ss. 1(6)(6)(j) and 1(6)(12), Laws of Fla. 15 Ch. 2020-191, s. 1(2)(3)(f), Laws of Fla. See also s. 189.031(2)(e)4., F.S. 16 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. 16, 2024). STORAGE NAME: h0867z1.LFS.docx PAGE: 4 DATE: 7/2/2024 B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 1. Revenues: The Economic Impact Statement indicates 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. 2. Expenditures: None. C. ECONOMIC IMPACT STATEMENT FILED? Yes [X] No [] D. 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. E. REFERENDUM(S) REQUIRED? Yes [] No [X] IF YES, WHEN?