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LTC 300-2023 Impact of Florida Senate Bill 718 on Referendum Requirements in City CharterM IAM I BEACH OFFICE OF THE CITY ATTORNEY LTC# LETTER TO COMMISSION TO: Mayor Dan Gelber and Members of the City Commission FROM: Rafael A. Paz, City Attorney DATE: June 30, 2023 SUBJECT: Impact of Florida Senate Bill 718 on the Referendum Requirements in City Charter Sections 1.03(c) and 1.06 The purpose of this Letter to Commission ("LTC") is to advise the City Commission of the impact of Senate Bill 718, which Governor Ron Desantis signed into law on June 28, 2023 (the "New Law"). A copy of the New Law, which takes effect on July 1, 2023, is attached to this L TC. The New Law impacts the referendum requirements in the following City Charter provisions: (1) Charter Section 1.03(c), which requires voter approval prior to any increase to the "zoned floor area ratio" of any property within the City, and (2) Charter Section 1.06, which requires voter approval prior to enacting any Ordinance that reduces the powers and duties of the Historic Preservation Board, or creates less stringent historic preservation standards or regulations. The New Law, which, in pertinent part, comes down to a single sentence, is plain and unambiguous in its simplicity: An initiative or referendum process in regard to any land development regulation is prohibited. See Sec. 163.3167(b), Fla. Stat. (2023). Under what circumstances is a referendum now prohibited? • As explained in this L TC, the New Law, as applied to the City, broadly prohibits a referendum process on any land development regulation that results in an FAR increase (except for a map amendment, i.e., rezoning), or creates a less stringent historic preservation standard or regulation. A referendum on a comprehensive plan amendment that increases FAR would also be prohibited under existing State law, as the City Charter contains no such requirement. 300-2023 2 Which referendum requirements in the City Charter remain enforceable? • Under State law, and given that Charter Section 1.03(c) was adopted prior to June 1, 2011, referendum approval is still required for any map amendment (or rezoning) that increases FAR. • The New Law has no impact whatsoever on City Charter provisions requiring voter referendum approval for the sale or lease of certain City-owned property, including the referendum requirements set forth in Sections 1.03(b), 1.03(d), or 1.03(e) of the City Charter.1 • The New Law will also have no impact on the referendum requirement, approved by the voters in August 2022, for any vacation of a right-of-way that results in the aggregation of floor area across unified abutting parcels. As the sale or lease of City property, or a vacation of a City right-of-way, is not accomplished via adoption of a land development regulation, the above-referenced Charter provisions, which involve the City’s proprietary decisions regarding the disposition of City-owned property, are not impacted by the New Law, and remain fully enforceable. I. SUMMARY OF EXISTING LAW A. City Charter Section 1.03(c), Requiring Voter Approval to Increase FAR Floor area ratio (“FAR”) is the measure used by the City to regulate the overall size of a building. Floor area ratio is defined in the City’s Resiliency Code as “the floor area of the building or buildings on any lot divided by the area of the lot.” Generally speaking, the term “floor area” is defined as “the sum of the gross horizontal areas of the floors of a building or buildings . . . ,” subject to a list of enumerated exceptions. The Resiliency Code establishes a maximum FAR for each zoning district in Miami Beach. In 1997, following a petition drive by an advocacy group known as “Save Miami Beach,” the City’s voters approved an amendment to the City Charter, requiring voter approval for future FAR increases—specifically, for any property “adjacent to the waterfront.” See Resolution No. 97- 22413. In 2003, the City’s residents voted to expand the referendum requirement to include all property within the City’s limits. See Resolution No. 2003-25441. The current text of Charter Section 1.03(c) reads, in pertinent part, as follows: The floor area ratio of any property or street end within the City of Miami Beach shall not be increased by zoning, transfer, or any other means from its current zoned floor area ratio as it exists on the date 1 For the sale or lease of 10 years or longer of any City property not specifically subject to a referendum requirement, the Charter, at Section 1.03(b)(4), requires approval by 4/7ths of the Planning Board and 6/7ths of the City Commission. This provision is also not impacted by the New Law. Also not impacted is Charter Sec. 1.03(f), which requires 4/7ths approval of the Planning Board and 6/7ths approval of the City Commission for a management agreement or concession agreement, for a term of 10 years or longer, relating to City property. 3 of adoption of this Charter Amendment [November 7, 2001], including any limitations on floor area ratios which are in effect by virtue of development agreements through the full term of such agreements, unless any such increase in zoned floor area ratio for any such property shall first be approved by a vote of the electors of the City of Miami Beach. Section 1.03(c) requires a voter referendum prior to any legislative action that would result in an increase to a property's zoned FAR as it existed on November 7, 2001. Since the initial adoption of the referendum requirement in 1997, the City has submitted a total of 12 proposed FAR increases to the voters. A summary of these measures is as follows: • November 2022: Increase FAR to allow conversion of existing hotels in RPS-4 District in the South of Fifth neighborhood to residential use (approved by the voters) • November 2022: Increase FAR to incentivize office/residential in the First Street Overlay, along 1st Street and Washington Avenue (approved by the voters) • November 2022: Increase FAR for North Beach Oceanside Resort Overlay area (Deauville Hotel) (rejected by the voters) • August 2022: Increase FAR to incentivize conversion of apartment hotels to residential use in RPS-1 and RPS-2 Districts in the South of Fifth neighborhood (approved by the voters) • August 2022: Increase FAR in Alton Road Gateway Overlay to facilitate community health center (approved by the voters) • November 2020: Increase FAR by allowing reconstruction of original floorplates in historic buildings (approved by the voters) • November 2020: Increase FAR for Wolfsonian Arts District (approved by the voters) • November 2020: Increase FAR by excluding certain areas of building from calculation of floor area (approved by the voters) • November 2019: Increase FAR for CD-2 zoning districts along Washington Avenue and Alton Road (rejected by the voters) • November 2019: Allow new floor area within historic buildings for adaptive reuse (rejected by the voters) • November 2017: Increase FAR as part of rezoning the North Beach Town Center (approved by the voters) • November 2015: Increase FAR for Ocean Terrace Overlay (rejected by the voters) 4 B. The Community Planning Act (Chapter 163, Florida Statutes) The Community Planning Act, formerly known as the Growth Management Act, governs the field of comprehensive planning and land development regulation by cities and counties throughout Florida. Among these provisions are certain restrictions on local initiatives or referenda concerning specified land use matters (also known as “zoning by referendum”). See Sec. 163.3167(8), Fla. Stat. The City Charter is not absolute, and a local ordinance or charter provision may not be construed in a manner that would conflict with State law. See Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880, 888 (Fla. 2010); see also City of Miami Beach v. Rocio Corp., 404 So. 2d 1066, 1069 (Fla. 3d DCA 1981). As City Attorneys have advised since at least 1997, the “zoning by referendum” provisions of the Community Planning Act restrict the application of the referendum requirement in Miami Beach Charter Section 1.03(c). The City may not call a referendum ostensibly required by the City Charter if the referendum would be prohibited by State law. 1. Initiative or Referendum on a Development Order Even before the adoption of SB 718 this year, the "zoning by referendum" provisions of the Community Planning Act have limited the City's authority to submit proposed FAR increases to the voters. Section 163.3167(8)(a), Florida Statutes, broadly prohibits “[a]n initiative or referendum process in regard to any development order.”2 As applied to the City, a “development order” includes a building permit, design review approval (for properties outside of historic districts), Certificate of Appropriateness (for properties within local historic districts or individually designated historic sites), lot split approval, variance, Board of Adjustment order, or site-specific rezoning. To hold a referendum on the City’s issuance on any of these approvals is strictly prohibited under existing provisions of the Community Planning Act. 2. Initiative or Referendum on a Comprehensive Plan Amendment or Map Amendments (i.e. Rezoning) The Community Planning Act also prohibits an initiative or referendum process “in regard to any local comprehensive plan amendment or map amendment.” However, the Act exempts, and specifically permits, a referendum process on a “local comprehensive plan amendment or map amendment” that is “expressly authorized by specific language in a local government charter that was lawful and in effect on June 1, 2011.” See Sec. 163.3167(8)(b), Fla. Stat. The City Charter does not qualify for the exception as to comprehensive plan amendments, because the Charter does not contain any language requiring referendum approval for a comprehensive plan amendment. Therefore, the City is prohibited, under State law, from submitting a comprehensive plan amendment to the voters. 2 State law defines a “[d]evelopment order” as “any order granting, denying, or granting with conditions an application for a development permit.” “Development permit” is defined as “any building permit, zoning permit, subdivision approval, rezoning, certification, special exception, variance, or any other official action of local government having the effect of permitting the development of land.” Sec. 163.3164(15) and (16), Florida Statutes. 5 However, the City Charter does qualify for the exception as to map amendments. Charter Section 1.03(c) requires voter approval to increase FAR by “zoning” (i.e. by adoption of a map amendment or rezoning). By way of example, a map amendment to rezone a defined area of the City from RM-1 (with an FAR of 1.25) to RM-2 (with an FAR of 2.0) would require voter approval. This particular provision has been in place since November 7, 2001, i.e. prior to the June 1, 2011 cutoff date in the statute. Accordingly, Charter Section 1.03(c) qualifies for the exception in Section 163.3167(8)(b) and, therefore, the City’s referendum requirement remains enforceable, but solely as to map amendments or rezonings involving an increase in FAR. C. City Charter Section 1.06, relating to the Historic Preservation Board and the City’s Historic Preservation Ordinance Charter Section 1.06 requires voter approval prior to the adoption of any Ordinance which "reduces the powers and duties of the City's Historic Preservation Board, or creates less stringent historic preservation standards or regulations . . . ." This provision was approved by the City's voters on November 6, 2012, by a vote of 61.29%. In the nearly 11 years since the adoption of this section, no measure has been submitted to the voters which would reduce the powers and duties of the HPB or create a less stringent historic preservation standard or regulation. II. EFFECT OF SENATE BILL 718 ON THE CITY CHARTER A. Impact on Charter Section 1.03(c), relating to FAR Increases The New Law amends the Community Planning Act to provide that “[a]n initiative or referendum process in regard to any land development regulation is prohibited.” “Land development regulations” are defined in Section 163.3164, Florida Statutes, as “ordinances enacted by governing bodies for the regulation of any aspect of development and includes any local government zoning, rezoning, subdivision, building construction, or sign regulations or any other regulations controlling the development of land, . . . .” As summarized in Section I.A of this LTC, the vast majority of FAR increases submitted to the City’s voters since the adoption of Charter Sec. 1.03(c) have involved the enactment of a land development regulation (sometimes referred to informally as a “text amendment,” as opposed to a map amendment or rezoning). 1. Overlays One example of an FAR increase effectuated through a land development regulation is the creation of an overlay. An overlay involves adopting narrowly tailored development standards for a defined geographic area, without changing the underlying zoning district classification, and accordingly, without changing any of the other requirements or allowances that apply to the zoning district. Examples include FAR incentives for the First Street Overlay (adopted in November 2022), the Alton Road Gateway Overlay (August 2022), and the Wolfsonian Arts District (adopted in November 2020). A referendum on the adoption of an overlay is now prohibited. 6 In contrast, a rezoning to a district with a greater FAR would generally permit more intense uses, increased density (regulated as dwelling units per acre) and increased building height. As explained in this LTC, a referendum on a rezoning that increases FAR remains required. 2. Specific, targeted incentives for specific uses, or developments meeting defined benchmarks FAR increases implemented as land development regulations also include incentives for properties meeting certain geographic or use criteria (e.g., incentive for the conversion of existing hotels in the RPS-4 district to residential use, or conversion of apartment hotels in RPS-1 and RPS-2 to residential use). To the extent that these overlays or targeted incentives have been effectuated as amendments to the City’s land development regulations, the New Law, which prohibits a “referendum process in regard to any land development regulation,” would now bar the City from submitting these measures, or any future similar measure, to the voters by referendum. 3. Map amendments or rezonings However, the New Law leaves intact the exception for local charter provisions which, as of June 1, 2011, contain express language as to “map amendments.” Therefore, to the extent a proposed map amendment would result in an FAR increase, the referendum requirement in Charter Section 1.03(c) would continue to apply. As noted above, a rezoning to a more intense district classification not only involves an increase in FAR, but also an increase in intensity (including additional allowable uses) and density (regulated as dwelling units per acre). For instance, in 2017, the City’s voters approved an FAR increase for the North Beach Town Center, which was effectuated as a rezoning of TC-1, TC-2, and TC-3 districts to the newly created TC-C, "Town Center Core" district. Because this measure was effectuated as a “map amendment,” even after the adoption of SB 718, referendum approval would still be required for a similar measure. Given that the New Law broadly prohibits a referendum on the adoption of a land development regulation, the foregoing interpretation as to map amendments may be subject to challenge. Any such challenge is one we would take on in good faith, as we will continue to give effect to the City Charter to the fullest extent permitted under State law. Specifically, based on the statutory exception set forth in Section 163.3167(8)(c), it is our opinion that the new provision in Section 163.3167(8)(b) does not preempt Charter Section 1.03(c) in its entirety, as the new prohibition in subsection 8(b) must be read in pari materia with the existing provisions of subsection (8)(c), which expressly permit a “referendum process in regard to any . . . map amendment” that is “expressly authorized by specific language in a local government charter that was lawful and in effect on June 1, 2011.” The City Charter was adopted prior to 2011 and qualifies for this exception, and accordingly, referendum approval remains intact, but solely for any map amendment that would result in an increase to a property’s zoned FAR. B. Impact on Charter Section 1.06, relating to Historic Preservation As the City’s historic preservation standards and regulations meet the definition of “land development regulations” in Chapter 163, a referendum to adopt a less stringent amendment is now prohibited. However, with respect to the “powers and duties” of the HPB, the City Attorney’s Office would need to carefully review any future amendment to determine whether a referendum 7 would be required, as an amendment to the powers or duties of a land use board is unlikely to satisfy the statutory definition of a “land development regulation.” To this end, it must be noted that not a single amendment to reduce the powers and duties of the HPB or create a less stringent historic preservation standard or regulation has been presented to the voters for consideration since this Charter requirement was adopted nearly 11 years ago. Accordingly, we will evaluate this issue further if the City Commission ever desires to enact any such ordinance. At the request of Commissioner Steven Meiner and Commissioner Alex Fernandez, the City Commission has recently referred items to the Land Use and Sustainability Committee, Planning Board, and Charter Review Board to consider amending the Resiliency Code to require a 6/7ths vote prior to any future FAR increase. In light of these referrals, the City Commission may also wish to consider adopting a 6/7ths vot ing requirement for any Ordinance that would reduce the powers and duties of the HPB, or enact a less stringent historic preservation standard or regulation. III. CONCLUSION The New Law further limits the City's authority to call a referendum on land use or zoning matters beyond existing provisions of the Community Planning Act, which prohibit an initiative or referendum on a development order and, as applied to the City, on a comprehensive plan amendment. Effective July 1, 2023, and except as specified herein, the City is barred from calling a referendum on any land development regulation, including a land development regulation that increases a property’s FAR or creates a less stringent historic preservation standard or regulation. The New Law does not, however, render invalid the entirety of Sections 1.03(c) or 1.06 of the City Charter. Because Charter Section 1.03(c) has been in place since before June 1, 2011, referendum approval is still required for any map amendment (or rezoning) that would result in an increase to a property’s zoned FAR. In addition, to the extent an amendment to the powers and duties of the HPB is not a land development regulation, then Charter Sec. 1.06 would still require voter approval. However, except in these two limited circumstances, the City Charter must yield to State law, and a referendum process in regard to a land development regulation is otherwise prohibited. CHAPTER 2023-305 Committee Substitute for Committee Substitute for Senate Bill No.718 An act relating to local government;amending s.163.3167,F.S.;prohibiting an initiative or referendum process in regard to any land development regulation;reordering and amending s.171.031,F.S.;defining the term “feasibility study”;amending s.171.0413,F.S.;specifying the measure- ment of land during annexation procedures;amending s.171.042,F.S.; replacing the term “report”with the term “feasibility study”;amending s. 171.051,F.S.;revising contraction procedures when qualified voters desire to be excluded from municipal boundaries;prohibiting contraction under certain circumstances;providing construction and applicability; amending s.171.204,F.S.;conforming a cross-reference;providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1.Subsection (8)of section 163.3167,Florida Statutes,is amended to read: 163.3167 Scope of act.— (8)(a)An initiative or referendum process in regard to any development order is prohibited. (b)An initiative or referendum process in regard to any land develop- ment regulation is prohibited. (c)(b)An initiative or referendum process in regard to any local comprehensive plan amendment or map amendment is prohibited unless it is expressly authorized by specific language in a local government charter that was lawful and in effect on June 1,2011.A general local government charter provision for an initiative or referendum process is not sufficient. (d)(c)It is the intent of the Legislature that initiative and referendum be prohibited in regard to any development order or land development regulation.It is the intent of the Legislature that initiative and referendum be prohibited in regard to any local comprehensive plan amendment or map amendment,except as specifically and narrowly allowed by paragraph (c) (b).Therefore,the prohibition on initiative and referendum stated in paragraphs (a)and (c)(b)is remedial in nature and applies retroactively to any initiative or referendum process commenced after June 1,2011,and any such initiative or referendum process commenced or completed there- after is deemed null and void and of no legal force and effect. Section 2.Section 171.031,Florida Statutes,is reordered and amended to read: 1 CODING:Language stricken has been vetoed by the Governor 171.031 Definitions.—As used in this chapter,the following words and terms have the following meanings unless some other meaning is plainly indicated: (1)“Annexation”means the adding of real property to the boundaries of an incorporated municipality,such addition making such real property in every way a part of the municipality. (4)(2)“Contraction”means the reversion of real property within muni- cipal boundaries to an unincorporated status. (7)(3)“Municipality”means a municipality created pursuant to general or special law authorized or recognized pursuant to s.2 or s.6,Art.VIII of the State Constitution. (8)(4)“Newspaper of general circulation”means a newspaper printed in the language most commonly spoken in the area within which it circulates, which is readily available for purchase by all inhabitants in its area of circulation,but does not include a newspaper intended primarily for members of a particular professional or occupational group,a newspaper whose primary function is to carry legal notices,or a newspaper that is given away primarily to distribute advertising. (9)(5)“Parties affected”means any persons or firms owning property in, or residing in,either a municipality proposing annexation or contraction or owning property that is proposed for annexation to a municipality or any governmental unit with jurisdiction over such area. (6)“Feasibility study”means an analysis conducted by qualified staff or consultants of the economic,market,technical,financial,and management feasibility of the proposed annexation or contraction,as applicable. (10)“Qualified voter”means any person registered to vote in accordance with law. (11)(7)“Sufficiency of petition”means the verification of the signatures and addresses of all signers of a petition with the voting list maintained by the county supervisor of elections and certification that the number of valid signatures represents the required percentage of the total number of qualified voters in the area affected by a proposed annexation. (12)(8)“Urban in character”means an area used intensively for residential,urban recreational or conservation parklands,commercial, industrial,institutional,or governmental purposes or an area undergoing development for any of these purposes. (14)(9)“Urban services”means any services offered by a municipality, either directly or by contract,to any of its present residents. (13)(10)“Urban purposes”means that land is used intensively for residential,commercial,industrial,institutional,and governmental Ch.2023-305 LAWS OF FLORIDA Ch.2023-305 2 CODING:Language stricken has been vetoed by the Governor purposes,including any parcels of land retained in their natural state or kept free of development as dedicated greenbelt areas. (3)(11)“Contiguous”means that a substantial part of a boundary of the territory sought to be annexed by a municipality is coterminous with a part of the boundary of the municipality.The separation of the territory sought to be annexed from the annexing municipality by a publicly owned county park; a right-of-way for a highway,road,railroad,canal,or utility;or a body of water,watercourse,or other minor geographical division of a similar nature, running parallel with and between the territory sought to be annexed and the annexing municipality,may shall not prevent annexation under this act, provided the presence of such a division does not,as a practical matter, prevent the territory sought to be annexed and the annexing municipality from becoming a unified whole with respect to municipal services or prevent their inhabitants from fully associating and trading with each other,socially and economically.However,nothing in this subsection may herein shall be construed to allow local rights-of-way,utility easements,railroad rights-of- way,or like entities to be annexed in a corridor fashion to gain contiguity; and when any provision or provisions of any special law prohibits or laws prohibit the annexation of territory that is separated from the annexing municipality by a body of water or watercourse,then that law shall prevent annexation under this act. (2)(12)“Compactness”means concentration of a piece of property in a single area and precludes any action which would create enclaves,pockets, or finger areas in serpentine patterns.Any annexation proceeding in any county in this the state must shall be designed in such a manner as to ensure that the area will be reasonably compact. (5)(13)“Enclave”means: (a)Any unincorporated improved or developed area that is enclosed within and bounded on all sides by a single municipality;or (b)Any unincorporated improved or developed area that is enclosed within and bounded by a single municipality and a natural or manmade obstacle that allows the passage of vehicular traffic to that unincorporated area only through the municipality. Section 3.Subsection (5)of section 171.0413,Florida Statutes,is amended to read: 171.0413 Annexation procedures.—Any municipality may annex con- tiguous,compact,unincorporated territory in the following manner: (5)If more than 70 percent of the acres of land in an area proposed to be annexed is owned by individuals,corporations,or legal entities which are not registered electors of such area,such area may shall not be annexed unless the owners of more than 50 percent of the acres of land in such area consent to such annexation.Such consent must shall be obtained by the Ch.2023-305 LAWS OF FLORIDA Ch.2023-305 3 CODING:Language stricken has been vetoed by the Governor parties proposing the annexation before prior to the referendum to be held on the annexation. Section 4.Subsections (1)and (2)of section 171.042,Florida Statutes, are amended to read: 171.042 Prerequisites to annexation.— (1)Before Prior to commencing the annexation procedures under s. 171.0413,the governing body of the municipality shall prepare a feasibility study report setting forth the plans to provide urban services to any area to be annexed,and the feasibility study must report shall include the following: (a)A map or maps of the municipality and adjacent territory showing the present and proposed municipal boundaries,the present major trunk water mains and sewer interceptors and outfalls,the proposed extensions of such mains and outfalls,as required in paragraph (c),and the general land use pattern in the area to be annexed. (b)A statement certifying that the area to be annexed meets the criteria in s.171.043. (c)A statement setting forth the plans of the municipality for extending to the area to be annexed each major municipal service performed within the municipality at the time of annexation.Specifically,such plans must shall: 1.Provide for extending urban services except as otherwise provided in this subsection herein to the area to be annexed on the date of annexation on substantially the same basis and in the same manner as such services are provided within the rest of the municipality before prior to annexation. 2.Provide for the extension of existing municipal water and sewer services into the area to be annexed so that,when such services are provided, property owners in the area to be annexed will be able to secure public water and sewer service according to the policies in effect in such municipality for extending water and sewer lines to individual lots or subdivisions. 3.If extension of major trunk water mains and sewer mains into the area to be annexed is necessary,set forth a proposed timetable for construction of such mains as soon as possible following the effective date of annexation. 4.Set forth the method under which the municipality plans to finance extension of services into the area to be annexed. (2)Not fewer than 15 days before prior to commencing the annexation procedures under s.171.0413,the governing body of the municipality shall file a copy of the feasibility study report required by this section with the board of county commissioners of the county in which wherein the municipality is located.Failure to timely file the feasibility study report as required in this subsection may be the basis for a cause of action to invalidate invalidating the annexation. Ch.2023-305 LAWS OF FLORIDA Ch.2023-305 4 CODING:Language stricken has been vetoed by the Governor Section 5.Subsections (2)and (4)of section 171.051,Florida Statutes, are amended,and subsection (11)is added to that section,to read: 171.051 Contraction procedures.—Any municipality may initiate the contraction of municipal boundaries in the following manner: (2)A petition of 15 percent of the qualified voters in an area desiring to be excluded from the municipal boundaries,filed with the clerk of the municipal governing body,may propose such an ordinance.The municipality to which such petition is directed shall immediately undertake a feasibility study of the feasibility of such proposal and the governing body shall,within 6 months,evaluate the feasibility study of such proposal and either initiate proceedings under subsection (1)by introducing a contraction ordinance or reject the petition as a legislative decision,specifically stating the facts upon which the rejection is based. (4)If,at the meeting held for the such purpose of considering the contraction ordinance introduced by the governing body,a petition is filed and signed by at least 15 percent of the qualified voters resident in the area proposed for contraction requesting a referendum on the question,the governing body shall,upon verification,paid for by the municipality,of the sufficiency of the petition,and before passing such ordinance,submit the question of contraction to a vote of the qualified voters of the area proposed for contraction,or the governing body may vote not to contract the municipal boundaries. (11)If more than 70 percent of the acres of land in an area proposed to be contracted is owned by individuals,corporations,or legal entities that are not registered electors of such area,such area may not be contracted unless the owners of more than 50 percent of the acres of land in such area consent to such contraction. Section 6.The amendments made by this act to s.171.051,Florida Statutes,are intended to be prospective in nature and apply only to petitions filed on or after July 1,2023. Section 7.Section 171.204,Florida Statutes,is amended to read: 171.204 Prerequisites to annexation under this part.—The interlocal service boundary agreement may describe the character of land that may be annexed under this part and may provide that the restrictions on the character of land that may be annexed pursuant to part I are not restrictions on land that may be annexed pursuant to this part.As determined in the interlocal service boundary agreement,any character of land may be annexed,including,but not limited to,an annexation of land not contiguous to the boundaries of the annexing municipality,an annexation that creates an enclave,or an annexation where the annexed area is not reasonably compact;however,such area must be “urban in character”as defined in s. 171.031 s.171.031(8).The interlocal service boundary agreement may not allow for annexation of land within a municipality that is not a party to the Ch.2023-305 LAWS OF FLORIDA Ch.2023-305 5 CODING:Language stricken has been vetoed by the Governor agreement or of land that is within another county.Before annexation of land that is not contiguous to the boundaries of the annexing municipality, an annexation that creates an enclave,or an annexation of land that is not currently served by water or sewer utilities,one of the following options must be followed: (1)The municipality shall transmit a comprehensive plan amendment that proposes specific amendments relating to the property anticipated for annexation to the Department of Economic Opportunity for review under chapter 163.After considering the department’s review,the municipality may approve the annexation and comprehensive plan amendment concur- rently.The local government must adopt the annexation and the compre- hensive plan amendment as separate and distinct actions but may take such actions at a single public hearing;or (2)A municipality and county shall enter into a joint planning agree- ment under s.163.3171,which is adopted into the municipal comprehensive plan.The joint planning agreement must identify the geographic areas anticipated for annexation,the future land uses that the municipality would seek to establish,necessary public facilities and services,including transportation and school facilities and how they will be provided,and natural resources,including surface water and groundwater resources,and how they will be protected.An amendment to the future land use map of a comprehensive plan which is consistent with the joint planning agreement must be considered a small scale amendment. Section 8.This act shall take effect July 1,2023. Approved by the Governor June 28,2023. Filed in Office Secretary of State June 28,2023. Ch.2023-305 LAWS OF FLORIDA Ch.2023-305 6 CODING:Language stricken has been vetoed by the Governor