HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: CS/HB 9B Reedy Creek Improvement District, Orange and Osceola Counties
SPONSOR(S): State Affairs Committee, Hawkins
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) State Affairs Committee 17 Y, 3 N, As Darden Williamson
CS
SUMMARY ANALYSIS
The Reedy Creek Improvement District (RCID) is an independent special district initially created in 1966 as the
Reedy Creek Drainage District by a decree of the Ninth Judicial Circuit and subsequently ratified and approved
by a special act in 1967. The RCID covers approximately 25,000 acres in Orange and Osceola Counties.
Virtually all privately-held land in the district is owned by the Walt Disney World Company. RCID works to
support and administer certain aspects of the economic development and tourism within district boundaries.
According to the RCID’s annual budget for Fiscal Year 2022-2023, the district will collect $183,016,143 in
general and debt service fund revenues, almost exclusively from an ad valorem tax levy of 13.9000 mills.
Additionally, the RCID’s utilities division is projected to generate $219 million in total revenues. As of the most
recent disclosure by the district, RCID has $1.176 billion in bond debt.
The bill ratifies and confirms the continued existence of the district under a new name, the Central Florida
Tourism Oversight District, and provides legislative intent concerning the district’s authority to raise revenue
and pay outstanding bonds and other obligations without interruption pursuant to transitional provisions of the
Florida Constitution for pre-1968 special districts. The bill retains the district’s necessary authority related to
taxation and the issuance of bonds. The bill makes extensive revisions to the District’s charter, including, but
not limited to:
Replacing the landowner-elected board of the district with a five-member board appointed by the
Governor, subject to Senate confirmation, and provides limitations on appointment to ensure
independence from operators of any theme park or entertainment complex;
Removing the district’s ability to amend its own boundaries without a special act;
Providing reporting requirements for the district, including a periodic review of the district’s powers;
Removing the district’s ability to own and operate airport facilities, certain types of recreational facilities
(such as stadiums, civic centers, and convention halls), and “novel and experimental” facilities (such as
a nuclear fission power plant);
Removing the district’s ability to spend public funds to advertise businesses, facilities, and attractions
within the district, and to levy tolls;
Retaining the district’s power to adopt its own planning, zoning, building, and safety codes, while
clarifying the application of general law to those codes and requiring any building and safety codes to
be substantially similar or provide more stringent standards than the Florida Building Code and Florida
Fire Prevention Code;
Removing sections of the charter that duplicate provisions of general law applicable to the district; and
Updating or removing, as applicable, cross-references and archaic terminology.
The bill provides that the district is not dissolved as of June 1, 2023, but continues in full force and effect under
its new name.
According to House Rule 5.5(b), a local bill providing an exemption from general law may not be placed
on the Special Order Calendar for expedited consideration. The provisions of House Rule 5.5(b) may
apply to this bill.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0009Ba.SAC
DATE: 2/8/2023
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 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 independent special districts 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 p ossess 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, availab le at
https://myfloridahouse.gov/Sections/Committees/committeesdetail.aspx?CommitteeId=3227 (last visited Feb. 5, 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,”
http://specialdistrictreports.floridajobs.org/webreports/criteria.aspx (last visited Feb. 5, 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 dis trict, 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 re-established 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
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
10
Art. XII, ss. 2, 15, Fla. Const. See also art. IX, s. 2, Fla. Const. (1885), amended b y 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 Hillsb orough 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,”
http://specialdistrictreports.floridajobs.org/webreports/criteria.aspx (last visited Feb. 5, 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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works and improvements necessary to execute the water control plan adopted by that district. 22 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.23
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.24
Today, WCDs may be created only by special act or by county ordinance. 25
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. 26 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.27 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.28
Reedy Creek Improvement District
The Reedy Creek Improvement District (RCID) is an independent special district initially created in
1966 as the Reedy Creek Drainage District by a decree of the Ninth Judicial Circuit 29 and subsequently
ratified and approved by a special act in 1967.30 The district covers 24,969 acres in Orange and
Osceola Counties that are primarily owned by the Walt Disney World Company.31 RCID works to
“support and administer certain aspects of the economic development and tourism within district
boundaries.”32
According to the RCID’s annual budget for Fiscal Year (FY) 2022-2023, the district will collect
$183,016,143 in general and debt service fund revenues, almost exclusively from an ad valorem tax
levy of 13.9000 mills.33 Additionally, the RCID’s utilities division is projected to generate $219 million in
total revenues.34 As of the district’s most recent continuing disclosure to bondholders (FY 2020-2021),
the district has $1.176 billion in bond debt, $962 million supported by ad valorem taxation and $214
million supported by utility revenues.35 Both ad valorem and utility revenue bonds issued by the district
have payments scheduled until 2038.
The RCID board of supervisors consists of five members, each elected by the landowners to a four-
year term.36 Members of the board must be residents of Orange County, Osceola County, or any
adjoining county and are required to own land within the district. Board members historically have
22 S. 298.22, F.S.
23
S. 298.22(3), F.S.
24 See s. 298.01, F.S. (authorizing “water control districts established prior to July 1, 1980, pursuant to the process formerly con tained
in this section and former ss. 298.02 and 298.03, may continue to operate as outlined i n 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).
25
S. 289.01, F.S.
26
S. 298.11(1), F.S.
27 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.
28 S. 298.12(1), F.S.
29
In re: Reedy Creek Drainage District, Chancery No. 66-1061 (Fla. 9th Cir. Ct. May 13, 1966).
30 Ch. 67-764, s. 1, Laws of Fla.
31 OPPAGA, Central Florida’s Reedy Creek Improvement District Has Wide-Ranging Authority 2 (Report No. 04-81, Dec. 2004).
32 Reedy Creek Improvement District, Reedy Creek Improvement District, https://www.rcid.org/ (last visited Feb. 5, 2023).
33 Reedy Creek Improvement District, 2023 RCID Final Annual Budget, https://www.rcid.org/documents/ (last visited Feb. 5, 2023).
34 Reedy Creek Improvement District, 2023 Utilities Budget, https://www.rcid.org/documents/ (last visited Feb. 5, 2023).
35 Reedy Creek Improvement District, 2021 Continuing Disclosure, https://www.rcid.org/documents/ (last visited Feb. 5, 2023).
36 Ch. 67-764, s. 4(1), Laws of Fl