HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: CS/HB 755 Canaveral Port District, Brevard County
SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee, Sirois and Brackett
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special 15 Y, 0 N, As Mwakyanjala Darden
Districts Subcommittee CS
2) Ways & Means Committee 23 Y, 0 N Rexford Aldridge
3) State Affairs Committee 17 Y, 0 N Mwakyanjala Williamson
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. Special districts provide specific
municipal services in addition to, or in place of, those provided by a municipality or county.
Foreign-Trade Zones (FTZs) are secure free-trade zones subject to oversight by United States Customs and
Border Protection. A 2008 revision of the FTZ law created a new variety of FTZs known as an alternative site
framework (ASF). Port entities operating under the revised ASF provisions have a number of operating
advantages in terms of increased flexibility and predictability. The ASF also expands the range of available
FTZ sites to include locations within 60 miles of the port of entry.
The Canaveral Port District (Port) is an independent special district located in Brevard County. The Port is
currently the busiest cruise port in the world and conducts cruise and cargo services, leases an inland
warehouse and logistics center, and is home to U.S. Army, Navy, and Air Force facilities. Eighty percent of the
Port’s revenues is generated from cruise business. The Port does not currently levy ad valorem taxes.
The bill amends the Port’s charter to revise provisions concerning:
Noticing and recordkeeping guidelines.
Boundaries of FTZs.
Powers of the governing body of the Port.
The maximum amount of principle on revenue certificates and revenue bonds that the Port may levy
taxes to pay for in a single year.
Competitive solicitation procedures.
The bill adds provisions to the Port’s charter concerning support for the commercial space launch industry.
The Economic Impact Statement filed with the bill states that the bill is not expected to have a fiscal impact.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/7/2024
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 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
Foreign-Trade Zones
Foreign-Trade Zones (FTZs) are secure trade zones.8 FTZs are subject to United States Customs and
Border Protection supervision. The authority to establish FTZs was created by Congress in the Foreign-
Trade Zones Act of 1934 (FTZ Act).9 The FTZ Act is administered through two sets of regulations,10
which were revised in 200811 to create a new variety of FTZs known as an alternative site framework
(ASF). Port entities operating under the revised ASF provisions have a number of operating
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. 12, 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), 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 U.S. Customs and Border Protection, Ab out Foreign-Trade Zones and Contact Info, http://www.cbp.gov/border-security/ports-
entry/cargo-security/cargo-control/foreign-trade-zones/about (last visited Jan. 12, 2024).
9 19 U.S.C. 81a-81u.
10
The FTZ Regulations (15 CFR Part 400) and CBP Regulations (19 CFR Part 146).
11 International Trade Commission, 15 CFR Part 400- FTZ Regulations, http://enforcement.trade.gov/ftzpage/grantee/regs.html (last
visited Jan. 24, 2024).
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advantages in terms of increased flexibility and predictability. 12 The ASF allows FTZ sites administered
by port authorities to utilize the “minor boundary modification process” in order to extend FTZ benefits
to areas outside of existing zones through a shorter streamlined application process. The ASF also
expands the range of available FTZ sites to include locations within 60 miles of the port of entry.
Public Seaports in Florida
There are 16 public seaports in Florida that collectively generate nearly 900,000 direct and indirect jobs
and contribute $117.6 billion in economic value to the state through cargo cruise activities. Florida’s
public seaports account for approximately 13 percent of Florida’s gross domestic product while
contributing $4.2 billion in state and local taxes.13
Canaveral Port District
The Canaveral Port District (Port) is an independent special district located in Brevard County. The Port
was created by special act in 195314 and was subsequently recodified in 2014.15 Currently the world’s
busiest cruise port,16 the Port conducts cruise and cargo services, leases an inland warehouse and
logistics center, and is home to U.S. Army, Navy, and Air Force facilities. Eighty percent of the Port’s
revenues is generated from cruise business.17 For Fiscal Year 2024, the Port has projected operating
revenues of $187,148,710 and operating expenses of $122,581,830.18
The Port has the ability to levy ad valorem taxes at a rate not exceeding 3 mills for operating expenses
and debt service.19 The Port does not currently levy ad valorem taxes and has not since 1986. 20 The
Port can also levy taxes necessary to pay for the principal and interest on revenue bonds and
certificates not exceeding the aggregate sum of $7.5 million.21
The Port is operated by the Canaveral Port Authority (Authority). 22 The Authority consists of five Port
Commissioners, elected from single-member districts in which they reside.23 When the Authority is
required to give public notice, the notice must be published in the following methods:
Once a week for two consecutive weeks in a newspaper of general circulation published in
Brevard County.
On the Authority’s website.
In a manner no less than may be required by law. 24
12 U.S. Customs and Border Protection, Foreign-Trade Zones Manual (2011), 41-42,
https://www.cbp.gov/sites/default/files/documents/FTZmanual2011.pdf (last visited Jan. 24, 2024).
13 Florida Ports Council, The Florida System of Seaports, https://flaports.org/about/the-florida-system-of-seaports/ (last visited Jan. 24,
2024).
14 Ch. 28922, Laws of Fla. (1953).
15
Ch. 2014-241, Laws of Fla., Ch. 2014-241, s. 3, Laws of Fla. contains the charter of the Port. (hereinafter Port Charter).
16 Florida Ports Council, Port Canaveral Sees Record Year for Cargo and Cruise Operations, https://flaports.org/port-canaveral-sees-
record-year-for-cargo-and-cruise-operations/ (last visited Jan. 24, 2024).
17 Port Canaveral, Ab out Us, https://www.portcanaveral.com/about (last visited Jan. 24, 2024).
18 Canaveral Port Authority, Proposed Operating Budget for the year ending September 30, 2024,
https://www.portcanaveral.com/About/Financials/FY2024-BUDGET-SEPT-Commission-meeting.aspx (last visited Jan. 24, 2024).
19Port Charter, Art. VIII, s. 8.
20 Canaveral Port Authority, Financial Report, Septemb er 30, 2022, 14,
https://flauditor.gov/pages/specialdistricts_efile%20rpts/2022%20canaveral%20port%20district.pdf (last visited Jan. 24, 2024) .
21 Port Charter, Art. VIII, s. 1.
22
Port Charter, Art. III.
23 Port Charter, Art. V, s. 1.
24 Port Charter, Art. II, s. 2.
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Powers of the Authority include the ability to:
Apply to proper authorities of the U.S. government for the right to establish, operate, and
maintain an FTZ within the limits of Brevard County and to establish, operate, and maintain
such FTZ.25
Employ an attorney for a term of office prescribed by the Authority.26
Lease lands, personal properties, and facilities:
o For up to 30 years by majority vote at a public meeting.27
o For 30 to 50 years by majority vote at a public meeting and publishing public notice of
intent to enter into such a lease at least 30 days before the public meeting. 28
o For more than 50 years by a supermajority vote at two public meetings and publishing
public notice of intent to enter into such a least at least 60 days before the first public
meeting.29
Execute and deliver contracts necessary and convenient to carry out the powers expressed in
the Port’s charter.30 Contracts for any construction, improvement, repair, or building that exceed
$100,000 must go through a competitive solicitation process including advertisement for the
contract at least once a week for three consecutive weeks in a newspaper of general circulation
in the Port and Brevard County and on the Authority’s website. 31 If the cost of a contract is
reasonably expected to be greater than $10,000, but less than $100,000, the Chief Executive
Officer (CEO) of the Port must:
o Obtain at least three written bid offers to perform the contract from at least three
independent persons or business entities responsible in the subject business under
consideration.
o Make a record of the offers.
o After obtaining and recording such offers, award the contract to the most responsive,
responsible bidder.32
Effect of Proposed Changes
The bill amends the public notice provisions of the Port’s charter to allow the Authority to provide public
notice by publishing a notice to the Authority’s website for two consecutive weeks in a manner no less
than required by general law. The bill makes additional changes throughout the charter conforming with
current public notice provisions contained in ch. 50, F.S. 33
The bill removes from the charter the requirement that the FTZ exist within the limits of Brevard County
to allow the Authority the option to expand the FTZ, consistent with federal law and regulations
regarding FTZs and ASFs.
The bill revises the votes required for the Port to enter into leases of a certain term as follows:
A term of up to 30 years requires a majority vote at a public meeting.
A term of more than 30 years requires a vote of 75 percent of all members of the Authority
voting at two public meetings, with public notice of intent to enter the lease provided at least 60
days before the first meeting.
The bill increases the amount of revenue certificates and revenue bonds outstanding the Authority may
have for tax purposes from $7.5 million to $20 million.
The bill revises competitive solicitation procedures by allowing the Authority to publish its notice for
requests for contracts for any construction, improvement, repair, or building that exceeds $100,000 on
25 Port Charter, Art. IV, s. 3; the FTZ maintained by the Authority was reorganized as an ASF in 2012, Rates, Rules & Regulation s
Governing Foreign Trade Zone No. 136, Zone Schedule (portcanaveral.com) (last visited Jan. 24, 2024).
26
Port Charter, Art. IV, s. 9.
27 Port Charter, Art. IV, s. 16(b)1.
28 Port Charter, Art. IV, s. 16(b)2.
29 Port Charter, Art. IV, s. 16(b)3.
30 Id.
31
Port Charter, Art. XVII, s. 1.
32 Port Charter, Art. XVII, s. 2.
33 Chapter 50, F.S. prescribes the manner for publishing legal and official advertisements.
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the Authority’s website for at least 10 days, but not more than 90 days, before receiving bids. This
revised notice process is authorized in ch. 50, F.S. For contracts reasonably expected to be between
$25,000 and $100,000, the bill requires the CEO or his or her designee to request at least three written
bids and to award the contract to the most responsive, responsible, and qualified bidder.
The bill expands the types of purchases that are not subject to competitive bidding requirements of the
charter to include:
Purchases made through a contract issued by a federal, state, or local government or a school
board, or agency thereof, if such contract has been competitively bid;
Purchases made pursuant to the Consultant’s Competitive Negotiation Act; 34
Purchases of equipment, supplies, materials, or services from a federal General Services
Administration schedule or for a federal agency when required for Port operations;
Purchases of equipment, supplies, materials, or services when competitive solicitation and
award are excepted or exempted by general law;
Purchases of required equipment, supplies, materials, or services that are highly specialized or
proprietary, or when no other authorized vendor can supply the required equipment, supplies
materials, or services;
Emergency purchases necessary to mitigate a situation that threatens the safety of employees
or passengers, the operation of the Port, or the loss of Port property;
Purchases of certain mandatory, recurring, or day-to-day expenditures such as utilities,
government fees, or purchases of equipment, supplies, materials, or services provided through
interlocal governmental agreements;
Purchases of government surplus material and equipment;
Purchases of used equipment and material to be used for Port purposes, provided that two
independent appraisals are obtained and considered;
Purchases through the Port Authority’s Owner-Direct Purchase Program when the construction