HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 7011 PCB LFS 24-01 Inactive Special Districts
SPONSOR(S): State Affairs Committee, Local Administration, Federal Affairs & Special Districts
Subcommittee, Persons-Mulicka
TIED BILLS: IDEN./SIM. BILLS: SB 1052
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Local Administration, Federal Affairs 15 Y, 0 N Mwakyanjala Darden
& Special Districts Subcommittee
1) State Affairs Committee 20 Y, 0 N, As CS 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.
The Department of Commerce (department) must declare a special district inactive if it meets certain criteria.
Declaring a special district inactive does not dissolve the district or otherwise cease its legal existence.
Subsequent action is required to repeal the legal authority creating the district, whether by the Legislature or
the county or municipality that created the district.
The bill dissolves the following special districts created by special act, which have been declared inactive by
the department, and repeals their enabling laws:
Calhoun County Transportation Authority.
Dead Lakes Water Management District.
Highland View Water and Sewer District.
West Orange Airport Authority.
The bill also dissolves the Sunny Isles Reclamation and Water Control Board and repeals the judicial order
establishing the district.
The bill does not appear to have a fiscal impact on state or local governments.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 1/17/2024
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 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 the 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.4
A district is classified as “independent” if it does not meet one of the above criteria or is located in more
than one county, unless the district lies entirely within the boundaries of a single municipality.5
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 a 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.6
The Special District Accountability Program within the Department of Commerce (department) is
responsible for maintaining and electronically publishing the official list of all special districts.7 This list
includes all active special districts, as well as a separate list of those districts declared inactive.8
Inactive Special Districts
Whether dependent or independent, the department must declare a special district inactive if it meets
one of the following criteria:
The registered agent of the district, the chair of the district's governing body, or the governing
body of the appropriate county or municipality:
o Provides written notice to the department that the district has taken no action for two or
more years;
o Provides written notice to the department that the district has not had a governing body
or a sufficient number of governing body members to constitute a quorum for two or
more years; or
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 Nov. 28, 2023).
4 S. 189.012(2), F.S.
5 S. 189.012(3), F.S.
6 Art. VII, s. 9(a), Fla. Const.
7 S. 189.061, F.S.
8 Ss. 189.061 and 189.062(6), F.S.
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o Fails to respond to an inquiry by the department within 21 days. 9
The department determines the district failed to file certain specified reports,10 including
required financial reports.11
The district has not had a registered office or agent on file with the department for one or more
years.12
The governing body of the district provides documentation to the department that it has
unanimously adopted a resolution declaring the district inactive.13
After the department determines at least one of these criteria applies to the special district, a notice of
the proposed declaration of inactive status may be published by the department, the county or
municipality for the area where the district is located, or the district itself. The notice must be published
in a newspaper of general circulation in the county or municipality where the special district is located,
and a copy of the notice must be sent by certified mail to the registered agent or chair of the district’s
board.14 The notice must include the name of the district, the law under which the district was organized
and operating, a general description of the territory of the district, and a statement that any objections
to the declaration must be filed pursuant to chapter 120, F.S.,15 within 21 days after the publication
date. If no objection is filed within the 21-day period, the department declares the district inactive.16
After declaring a special district inactive, the department must send written notice of the declaration to
the authorities that created the district.17 This notification is intended to facilitate the process of
dissolving districts that have been declared inactive.18 For districts created by special act, the
declaration of inactive status fulfills the constitutional notice requirement for the repeal of those special
acts.19 Current law also provides that the special acts creating or amending the charter of an inactive
special district may be repealed by general law.20
A district declared inactive may not collect taxes, fees, or assessments until the declaration of invalid
status is withdrawn, revoked by the department, or invalidated in an administrative proceeding or civil
action.21 Any property and assets of a special district declared inactive must first be used to pay any
debts of the district,22 and any remaining property or assets then escheat to the county or municipality
in which the district is located. If the district’s property or assets are insufficient to pay its outstanding
debts, the county or municipality in which the district was located may assess and levy taxes within the
territory of the inactive district as necessary to pay the remaining debt.
Declaring a special district inactive does not dissolve the district or otherwise cease its legal existence.
Subsequent action is required to repeal the legal authority creating the district, whether by the
Legislature or the county or municipality that created the district.23
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
works and improvements necessary to execute the water control plan adopted by that district. 24 Prior to
July 1, 1980, the authority to create a WCD was delegated to circuit courts by statute, with WCDs
9 S. 189.062(1)(a)1.-3., F.S.
10 S. 189.066, F.S.
11 S. 189.062(1)(a)4., F.S. See ss. 189.016(9), 218.32, and 218.39, F.S.
12
S. 189.062(1)(a)5., F.S.
13 S. 189.062(1)(a)6., F.S.
14 S. 189.062(1)(b), F.S.
15 Chapter 120, F.S., is the Administrative Procedure Act.
16 S. 189.062(1)(c), F.S.
17 S. 189.062(3), F.S.
18 See ss. 189.071(3) and 189.072(3), F.S.
19 S. 189.062(3)(a), F.S.
20 Id.
21 S. 189.062(5), F.S.
22 S. 189.062(2), F.S.
23 S. 189.062(4), F.S.
24 S. 298.22, F.S.
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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. 25 Today, WCDs may be created
only by special act or county ordinance.26 The charter of a district that predates July 1, 1980, may only
be modified by special act.27
Effect of Proposed Changes
The bill dissolves the following special districts created by special act, which have been declared
inactive by the department, and repeals their enabling laws:
Calhoun County Transportation Authority.28
Dead Lakes Water Management District.29
Highland View Water and Sewer District.30
West Orange Airport Authority.31
Notwithstanding s. 189.072(3), F.S., the bill dissolves the Sunny Isles Reclamation and Water Control
Board and repeals the judicial order establishing the district. 32 This district was initially created pursuant
to authority delegated to circuit courts to create WCDs. As a district created by the petition process,
which process was repealed in 1980, the charter of the district would otherwise only be subject to
revision by special act.
B. SECTION DIRECTORY:
Section 1: Dissolves special districts created by special act that have been declared inactive by the
department and repeals their enabling laws.
Section 2: Dissolves the Sunny Isles Reclamation and Water Control Board and repeals the judicial
order establishing the district.
Section 3: Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
25 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 in 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).
26 S. 298.01, F.S.
27 See s. 298.76(5), F.S.
28 Ch. 76-341, Laws of Fla.
29 Ch. 57-1115, Laws of Fla.
30 Chs. 61-2212 and 85-417, Laws of Fla.
31 Chs. 99-482 and 2007-305, Laws of Fla.
32 Decree 66C-7402, entered by the circuit court in and for the Eleventh Circuit Court.
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2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
This bill neither provides authority for nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 17, 2024 the State Affairs Committee adopted an amendment and reported the bill favorably
as a committee substitute. The amendment removed the Emerald Coast Bridge Authority from the list of
special districts to be dissolved.
The analysis is drafted to the committee substitute as passed by the State Affairs Committee.
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