The proposed bill, Substitute Bill No. 7208, establishes a new legal framework for municipalities regarding the sale of municipal authorities, departments, agencies, or their assets, as well as the privatization of municipal services or functions. Effective July 1, 2025, the bill allows for a petition to be filed by five percent or more of the electors in a municipality to request a referendum on any legislative body authorization for such sales or privatizations. This petition must be submitted within thirty days of the legislative body's authorization, and until the petition period expires, the municipality cannot finalize any agreements related to the proposed actions. If the petition is validated, a referendum will be held at the next regular election to determine if the electors approve the legislative body's authorization.

Additionally, the bill includes a provision for municipalities operating under special acts, charters, or home rule ordinances that allow for a different percentage of electors to file a petition. In such cases, the existing provisions of those special acts or charters will take precedence over the new requirements outlined in the bill. The bill does not delete any existing legal language but introduces new regulations to enhance the democratic process surrounding municipal decisions on privatization and asset sales.