Ch. 413 COUNCIL FOR THE BLIND Ch. 413

CHAPTER 413

COUNCIL FOR THE BLIND

413.011 Council for the blind. 413.012 Confidential records disclosure pro­

hibited; exemptions. 413.013 Destruction of records. 413.021 Products and services by blind persons;

sale, exhibition regulated. 413.031 Products, purchase by state agencies

and institutions. 413.041 Needy blind persons; placement in

vending stands in public places. 413.051 Needy blind persons; powers of govern­

ing bodies. 413.061 Solicitation of funds; prohibition; ex­

ceptions.

413.011 Council for the blind.-The council for the blind, a state agency, shall consist of five members appointed by the governor, for terms of four years; one member of the coun­cil may be a member of the state welfare board and one member shall be by preference a blind person. Nothing herein shall be construed to affect the terms of the present members of said council. No person or persons in the em­ploy of the state shall be eligible for member­ship on the council. Each member of the coun­cil shall have been a citizen and elector of this state for not less than five years immediately preceding the date of his appointment. Each member shall furnish a surety bond, payable to the governor and his successors in office, in the sum of ten thousand dollars. Members shall receive no compensation for their serv­ices, but shall be reimbursed for traveling ex­penses as provided in §112.061 and the cost of premiums on qualifying bonds and fees for the issuance of their commissions. No federal, state, county, or municipal officer or employee shall be eligible to serve as a member of the council during his term as such official. The council for the blind shall advise, consult and cooperate with the state department of public welfare in the administration of assistance to the needy blind, and in addition, shall plan, supervise and carry out the following activi­ties:

(1) Appoint all personnel as may be neces­sary to carry out the purposes of this section;

(2) Cause to be compiled and maintained a complete register of the blind in the state, which shall describe the condition, cause of blindness, and capacity for education and in­dustrial training, with such other facts as may l'!eem to the council to be of value;

(3) Inquire into the cause of blindness, in­augurate preventative measures, and provide for the examination and treatment of the blind or those threatened with blindness for the benefit of such persons, and shall pay therefor, including necessary incidental expenses;

( 4) Aid the blind in finding employment, teach them trades and occupations within their capacities, assist them in disposing of products made by them in home industries, and do such things as will contribute to the efficiency of self-support of the blind;

413.062 Application for permit. 413.063 Permit. 413.064 Rules and regulations. 413.065 Notice of approval. 413.066 Revocation of permit. 413.067 Penalty. 413.068 Legislative intent. 413.069 Exemptions. 413.07 Traffic regulations to assist blind per-

413.08 sons.

"Dog guide" to accompany blind mas­ter into hotels, restaurants, eating establishments; unlawful to prohibit or interfere with.

(5) May establish one or more training schools and workshops for the employment of suitable blind persons; make expenditures of funds for such purposes; receive moneys from sales of commodities involved in such activities and from such funds make payments of wages, repairs, insurance premiums and replacements of equipment; provided, further, that all of the activities provided for in this section may be carried on in cooperation with private work­shops for the blind, except that all tools and equipment furnished by the council shall re­main the property of the state;

(6) Provide special services and benefits for the blind for developing their social life through community activities and recreational facilities;

(7) Undertake such other activities as may ameliorate the condition of blind citizens of this state;

(8) Cooperate with other agencies, public or private, especially the vocational rehabilita­tion section of the State Department of Educa­tion and the Florida Library and Historical Commission to provide library service to the blind and other handicapped persons, in carry­ing out any or all of the provisions of this law;

(9) Make contracts and agreements with federal, state, county, municipal and private corporations and individuals, sue and be sued and have all corporate powers necessary to properly carry out the provisions of this law; provided, that the council shall present to the state board for vocational education a state­ment of the council's general plans for any vocational training contemplated under §§409.-17, 413.041 and 413.051, and such plans shall not provide for duplicating any of the voca­tional services now being conducted under said board with the aid of federal funds;

(10) Receive moneys or properties by gift or bequest from any person, firm, corporation or organization for any of the purposes herein set out but without authority to bind the state to any expenditure or policy except such as may be specifically authorized by law. All such moneys or properties so received by gift or bequest as herein authorized, may be disbursed and expended by the council upon its own warrant for any of the purposes herein set forth, and such moneys or properties shall not

2051 .

Ch. 413 COUNCIL FOR THE BLIND Ch. 413

constitute or be considered a part of any legis­lative appropriation made by the state for the purpose of carrying out the provisions of this law·

(il) Shall, on June 30 of each year, make an annual written report to the governor. Such report shall contain a complete accounting for all funds received and disbursed under the supervision of the council, including any mon­eys received through gift or bequest as au­thorized by this law.

Blstory.-§1, ch. 20714, 1941; §1, ch. 21779, 1943; §§20, 34, ch. 26937, 1951; fl, ch. 61-210; §19, ch. 63-400; §1, ch. 67-463.

Note.-Formerly §409.26. cf.-§17.26 Cancellation of state warrants.

413.012 Confidential records disclosure pro­hibited; exemptions.-

(!) All records furnished the Florida coun­cil for the blind in connection with state or local vocational rehabilitation programs con­taining. information as to personal facts given or made available to the state or local voca­tional rehabilitation agency, its representatives or its employees in the course of the adminis­tration of the program, including lists of names and addresses and records of agency evaluation shall be held to be confidential.

(2) It is unlawful for any person to dis­close, authorize the disclosure, solicit, receive or make use of any list of names and ad­dresses, or any record containing any informa­tion set forth in subsection (1) and maintained in the office of the Florida council for the blind. The prohibition provided for in this sub­section shall not apply to the use of such in­formation for purposes directly connected with the administration of the vocational rehabilita­tion program.

(3) Any person who violates a provision of this section is guilty of a misdemeanor and upon conviction shall be subject to imprison­ment for a period not to exceed 6 months or a fine in an amount not to exceed $500.00 or to both such imprisonment and fine.

Blstory.-§1, ch. 65-507.

413.013 Destru.ction of records.-The Flor­ida council for the blind may authorize the destruction of any correspondence, documents or other records where the subject matter involved has been closed or terminated and their pres­ervation is not required by federal or state law, rule or regulation. No such material shall be destroyed unless specific authority is given by a resolution duly adopted by the Florida council for the blind and provided that said records have been in the possession of the Florida council for the blind five or more years prior to their destruction.

Blstory.-§1, ch. 65-508.

413.021 Products and services by blind per­sons; sale, exhibition regulated.-

( I) When appearing in the Florida Stat­utes "blind person" shall mean an individual having central visual acuity 20/200 or less in the better eye with correcting glasses, or a dis­qualifying field defect in which the peripheral 1fela has contracted to such an extent that the

widest diameter or visual field subtends an angular distance no greater than twenty de­grees.

(2) For the purposes of the Florida Statutes no representation shall be made that a product or service is "blind-made" unless the manufac­turer employs blind persons to an extent con­stituting not less than seventy-five per cent of the total hours worked by personnel engaged in the direct labor of production of manufactured blind-made products, or services. Direct labor production shall mean all work required for the preparation, processing and packing but not including supervision, administration, inspec­tion and shipping, or the production of the materials from which the finished product is manufactured.

(3) No person or organization shall sell, dis­tribute or exhibit any product or service which purports or is advertised to be "blind-made" unless the Florida state council for the blind shall certify that such prodU<;t or service com­plies with the provisions of subsection (2).

(4) Any person, including the officers, own­ers or members of any corporation or organiza­tion that violates the provisions of this section shall be punished by fine of not exceeding $500.00 or imprisonment not exceeding one year or by both such fine and imprisonment.

Blstory.-§§1-4, ch. 28029, 1953; §2, ch. 61-210. Note.-Formerly §§413.09, 409.261.

413.031 Products, purchase by state agen­cies and institutions.-

(!) DEFINITIONS.-When used in this section:

(a) "Accredited nonprofit workshop" means a Florida workshop which has been certified by either the Florida council for the blind for workshops concerned with blind persons, or the division of vocational rehabilitation where other handicapped persons are concerned, and such workshop means a place where any manufac­tured article or handwork is carried on and which is operated for the primary purpose of providing employment to severely handicapped individuals, including the blind, who cannot be readily absorbed in the competitive labor mar­ket.

(b) "Handicapped" means an individual so severely disabled physically, or mentally, as to be unable to enter private industry on a com­petitive basis, but who can be made employ­able through an accredited nonprofit-making agency for the handicapped, and which indi­vidual is over the age of sixteen years.

(2) State institutions and agencies shall, where possible, purchase brooms, mops, rugs, rubber mats and other supplies (other than the products of prison labor) from sheltered Florida workshops operated by accredited non­profit corporations, provided that such goods and supplies are of standard quality and price.

(3) When convenience or emergency re­quires it, the executive director of the Florida council for the blind and the director of the division of vocational rehabilitation of the state department of education, may upon re-

2052

Ch. 413 COUNCIL FOR THE BLIND Ch. 413

quest of the purchasing officer of any insti­tution or agency relieve him from the obliga­tion of this section.

(4) No state agency or institution shall pur­chase products or supplies purporting to be made by physically-handicapped persons in workshops not certified under the t>rovisions of this section.

(5) Any purchasing officer who violates the provisions of this section shall be guilty of a misdemeanor and punished according to law.

Hlstory.-§1, ch. 29663, 1955; §2, ch. 61-210. N ote.-Formerly §409.262.

413.041 Needy blind persons; placement in vending stands in public places.-For the pur­pose of assisting blind persons to become self­supporting, the Florida council for the blind is hereby authorized to carry on activities to pro­mote the employment of needy blind persons, in­cluding the licensing and establishment of such persons as operators of vending stands on public property. The said council may cooperate with any agency of the federal government in the fur­therance of the provisions of the act of congress entitled "An Act to authorize the operation of stands in federal buildings by blind persons, to enlarge the economic opportunities of the blind and for other purposes," public law 732, 74th congress, and the said council may cooperate in the furtherance of the provisions of any other act of congress providing for the rehabilitation of the blind that may now be in effect or may here­after be enacted by congress.

Hlstory.-§1, ch. 22681, 1945; 1§21, 34, ch. 26937, 1951; 12, ch. 61-210.

Note.-Formerly §409.271.

413.051 Needy blind persons; powers of gov­erning bodies.-

(1) The board of county commissioners of any county, and the board, council, commission or officials in charge of any public state, coun­ty, or municipal building or property in this state may permit the operation of vending stands by needy blind persons by the Florida council for the blind for the benefit of needy blind persons, on such state, county or munici­pal property under their respective jurisdic­tion; provided, however, that the establish­ment of such vending stands or automatic vend­ing machines on public property shall not un­duly interfere with the use of the public prop­erty for public purposes; and provided fur­ther that all blind operators of such vending stands on such public property be licensed by the Florida council for the blind and that the stands be operated by, or under the supervi­sion and direction of said council. In authoriz­ing the operation of vending stands on public property, where the service requirements of the location fall within the physical capabilities of the needy blind, preference shall be given to the greatest extent feasible to blind persons li­censed by the Florida council for the blind as provided in this chapter.

(2) It is the legislative intent that this sec­tion shall not apply, or operate, in any manner,

to divest any person, or organization, presently operating vending stands or automatic vend­ing machines in state, county or municipal buildings or on state, county or municipal prop­erty, from continuing to do so.

Hlstory.-§2, ch. 22681, 1945 ; §1, ch. 25141, 1949 ; §§22, 34, ch. 26937, 1951 ; §10, ch. 27991, 1953; §2, ch. 61-210; §U, 2, ch. 65-227.

Note.-Formerly §409.272.

413.061 Solicitation of funds; prohibition; exceptions.-The solicitation of funds or any­thing of value, by any means, including the sale of merchandise or any form of entertain­ment, for the use and benefit of blind persons is prohibited unless prior approval for such so­licitation is obtained as prescribed in §§413.061-413.068; provided, these sections shall not ap­ply to civic clubs of international affiliation, one of the main objects of which is the conser­vation of vision and service to the blind.

Wstory.-§1, ch. 29989, 1955; §2, ch. 61-210. Note.-Formerly §409.281.

413.062 Application for permit.-Any per­son, agency or organization desiring to solicit funds or anything of value for the benefit of blind persons, shall file a written application with the Florida council for the blind. The ap­plication shall set forth the time, place and type of the proposed solicitation; proposed use of the receipts from said solicitation; names and addresses of persons who will be respon­sible for the proper custody and disposition of receipts; and any other information the Florida council for the blind may determine to be necessary.

Hlstory.-§1, ch. 29989, 1955; §2, ch. 61-210. Note.-Formerly §409.282.

413.063 Permit.-The Florida council for the blind shall make a thorough investigation of the applicant and of the facts alleged in his application. If the applicant is found to be re­sponsible and the purposes and method of the proposed solicitation are determined to be in the best interests of blind persons and public welfare, the Florida council for the blind shall issue to the applicant a written permit author­izing him to conduct the proposed solicitation. Such permit shall be signed by the executive director of the Florida council for the blind and shall be limited to a period of one year. It shall set forth the specified method, purpose and organization of the solicitation which is approved and shall list the names of persons responsible for its conduct.

Blstory.-§1, ch. 29989, 1955; §2, ch. 61-210. Note.-Formerly §409.283.

413.064 Rules and regulations.-The Florida council for the blind shall make all necessary rules and regulations pertaining to the conduct of solicitations for the benefit of blind persons and shall determine the amount of compensa­tion and expen11e money which may be retained by any person or organization from the pro­ceeds of any solicitation within the meaning of §§413.061-413.068.

Hlstory.-§1, ch. 29989, 1955; f3, ch. 61-210. Note.-Formerly §409.284.

2053

Ch. 413 COUNCIL F OR THE BLIND Ch. 413

413.065 Notice of approval.-Every person who holds a permit under the provisions of §§413.061-413.068, shall cause to appear upon every ticket, advertisement, subscription, form, placard, article or other bit of property used in direct connection with the promotion of such solicitation, and shall post in a conspicuous place near the entrance to any building or structure where any entertainment or sale is held hereunder, a statement that such solicita­tion activity has been approved by the Florida council for the blind.

History.-§1, ch. 29989, 1955; §3, ch. 61-210. Note.-Formerly §409 .285 .

413.066 Revocation of permit.-Any failure on the part of any person or organization hold­ing a permit under the provisions of §§413.061-413.068, to comply with the law or with all rules and regulations promulgated by the Flor­ida council for the blind as authorized by §413.064, shall constitute grounds for a revo­cation of said permit by the Florida council for the blind.

History.-§1, ch. 29989, 1955; §3, ch. 61-210. Note.-Formerly §409.286.

413.067 Penalty.-Any person who violates the provisions of §§413.061-413.068, or any rule or regulation promulgated by the Florida coun­cil for the blind pursuant to the authority hereof is guilty of a misdemeanor and shall be punished by a fine of not more than $500.00 or by imprisonment in the county jail for not more than 6 months, or by both such fine and imprisonment.

History.-§1, ch. 29989, 1955; §3, ch. 61-210. Note.-Formerly §409.287.

413.068 Legislative intent.-It is the intent of the legislature that the securing of a permit from the Florida council for the blind shall be a condition precedent to the solicitation of funds for the benefit of the blind in this state except as otherwise provided in §§413.061-413.068, and said sections shall supersede the provisions of any county or city law regulating the solicitation of such funds which do not require such a permit.

History.- §1, ch. 29989, 1955; §3, ch. 61-210. Note.-Formerly §409 .288.

413.069 Exemptions.-Provided that nothing contained in §§413.061-413.068, shall interfere with the activities of the Florida federation of the blind, provided that organization files an annual report with the secretary of state show­ing total receipts and disbursements by subject.

History.-§1, ch . 29989, 1955; §3, ch. 61-210. Note.-For merly §409.289.

413.07 Traffic regulations to assist blind persons.-

(1) It is unlawful for any person, unless

totally or partially blind or otherwise incapaci­tated, while on any public street or highway, to carry in a raised or extended position a cane or walking stick which is white in color or white tipped with red.

(2) Whenever a pedestrian is crossing or attempting to cross a public street or highway, guided by a guide dog or carrying in a raised or extended position a cane or walking stick which is white in color or white tipped with red, the driver of every vehicle approaching the intersection, or place where such pedestrian is attempting to cross, shall bring his vehicle to a full stop before arriving at such inter­section or place of crossing, and before pro­ceeding shall take such precautions as may be necessary to avoid injuring such pedestrian.

(3) Nothing contained in this section shall be construed to deprive any totally or partially blind or otherwise incapacitated person, not carrying such a cane or walking stick or not being guided by a dog, of the rights and privi­leges conferred by law upon pedestrians cross­ing streets or highways, nor shall the failure of such tota lly or partially blind or otherwise in­capacitated person to carry a cane or walking stick, or to be guided by a guide dog upon the streets, highways or sidewalks of this state, be held to constitute nor be evidence of con­tributory negligence.

( 4) Any person who violates any provision of this section, shall upon summary conviction thereof, be sentenced to pay a fine not exceed­ing twenty-five dollars and costs of prosecu­tion, and in default of payment thereof, shall undergo imprisonment not exceeding ten days.

Wstory.-§§ 1-4, ch. 25269, 1949; (3) §10, cb. 26484, 1951.

. 413.08 "Dog guide" to accompany blind master into hotels, restaurants, eating estab­lishments; unlawful to prohibit or interfere with.-

(1) It shall be lawful for any "dog guide" to accompany his blind master into any hotel, restaurant or eating establishment, and it shall be unlawful for any person, directly or indi­rectly, either to prohibit, hinder or interfere with his doing so; provided the said blind master otherwise complies with the limitations applicable to sighted persons.

(2) Any person violating the provisions ·of this section shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine, not exceeding one hundred dollars, or by imprisonment in the county jail for a period not exceeding sixty days, or by both such fine and imprisonment.

History.-§1, ch . 25268, 1949; (1) §1, ch. 61-217.

2054

Ch. 414 POOR MOTHERS WITH DEPENDENT CHILDREN Ch. 414

CHAPTER 414

POOR MOTHERS WITH DEPENDENT CHILDREN

414.01 County aid for poor mothers. 414.02 Allowance authorized. 414.03 Condition of allowance. 414.04 When allowances shall cease. 414.05 Female relative. 414.06 How carried into effect. 414.07 History of each case. 414.08 How families are to be investigated.

414.01 County aid for poor mothers.-The county commissioners of the several counties of the state may provide in the annual budget of the general revenue fund an appropria­tion sufficient to meet the purposes of this law for the support of women of insufficient income, who have dependent upon them for food, raiment, and education, orphans, or half-orphan children under sixteen years of age, including any woman whose husband is dead or is an inmate of some state institution, or whose husband is divorced from her, or whose husband has been prosecuted for desertion or non-support and has been ad­judicated by the court where prosecuted to be wholly unable to support his wife and children, or whose husband is permanently incapacitated for work by reason of any mental or physical infirmity, and any woman who is the mother of a child if her own support and the support of the child depend wholly or partially upon her labor, shall be entitled to the assistance as pro­vided for in this chapter for the support of her­self and for her child.

Hlstory.-§1, ch. 13769, 1929; CGL 1936 Supp. 8727(1).

414.02 Allowance authorized.- The allow­ance for the aid of such women shall not exceed twenty-five dollars a month when she has but one child under sixteen years of age. If she has more than one child under the age of sixteen years it shall not exceed twenty-five dollars for the first child, and eight dollars a month for each of the other children.

Hlstory.-§2, ch. 13769, 1929; CGL 1936 Supp. 8727(2).

414.03 Condition of allowance.-The county commissioners of their respective counties may levy a tax of not more than one mill on all tax­able property of their respective counties for the purpose of supplying funds to carry this chapter into effect, and provide means for the same, provided the condition of allowance of said allotment shall be made by the county commis­sioners after due investigation of each case by and through such agency as the board of county commissioners shall deem advisable, and only upon the following conditions:

(1) The child for whose benefit the allowance is made, must be living with the mother of such child, or other relative within the second degree, or guardian approved by the proper authorities.

(2) The mother must, in the judgment of the county commissioners of such county, which body shall finally pass upon all applications for aid under this chapter, be a proper person morally, physically and mentally fitted for the bringing

414.09 Other persons may be appointed to car-ry law into effect.

414.10 Where child may reside. 414.11 Require attendance at school. 414.12 County commissioners may designate

county welfare board to carry law into effect.

up of the child, and shall be in actual need of the aid provided by this chapter.

(3) Said allowance shall, in the judgment of the county commissioners, be necessary to save the child from neglect.

(4) No person shall receive the benefit of this chapter who shall not have been a resident of the state for at least two years and a resident of the county in which the allowance is given, for at least one year next before the making of the application for aid in such county.

Hlstory.-§3, ch. 13769, 1929; CGL 1936 Supp. 3727(3).

414.04 When allowances shall cease.-When­ever any child shall reach the age of sixteen years, or the mother shall remarry, the allowance to the mother or the children shall cease ; provided, however, that if it is made to appear to the board of county commissioners, after an investi­gation, that there exists some special reason that it is for the best interest of any child, as well as for society, to continue said allowance for a longer period of time such allowance may be continued for such time as the justice of the case may demand. In all cases, however, when the mother remarries all allowances shall cease.

Hlstory.-§4, ch. 13769, 1929; CGL 1936 Supp. 3727(4).

414.05 Female relative.-The provisions of this chapter shall also be extended for the bene­fit of orphan children who are dependent on some female relative unable to support them, or to any children under guardianship who are dependents or paupers and have no means of support.

Hlstory.-§5, ch. 13759, 1929; CGL 1936 Supp. 8727(6).

414.06 How carried into effect.-In order to carry the provisions of this chapter into effect, the board of county commissioners shall have di­rect supervision of the investigation of all cases and they may, in their discretion, use all county agencies for purposes of such investigation, and shall have the assistance of the state boards of health, public instruction and public welfare, in investigating all persons entitled to the pro­visions of this chapter in the gathering of data and the history, and making a report on each case, and to this end the necessary blanks will be provided, and the state board of public wel­fare shall provide uniform blanks to be printed and paid for by the counties to be used in gather­ing and recording the history of each case.

Hlstory.-§6, ch. 13769, 1929; CGL 1936 Supp, 8727(6).

414.07 History of each case.-The history of each case, when investigated by the agency or agencies used by the board of county commis­sioners, shall be made up in duplicate, the original

2055

Ch. 414 POOR MOTHERS WITH DEPENDENT CHILDREN Ch. 414

to be filed with the board of county commis· sioners of the county, and one copy to be for­warded to and filed with the state board of public welfare.

History.-§7, ch. 13759, 1929; CGL 1936 Supp. 3727(7).

414.08 How families are to be investigated. -The board of county commissioners of each county shall require the persons or agencies used for making the required investigation, to care­fully and speedily investigate the condition of any and all poor mothers' children, orphan and half-orphan children, whose needs may be brought to their attention, and after having gathered the history of each case and recorded such history upon the blanks as hereinbefore required to be provided, to immediately place such report of such case before the board of county commissioners of such county for im­mediate action, and the said board of county commissioners shall examine such report and immediately take up such application and grant or reject such application, as the board of county commissioners in their judgment shall find the applicant entitled by this chapter.

History.-§8, ch. 13759, 1929; CGL 1936 Supp. 3727(8),

414.09 Other persons may be appointed to carry law into effect.-In making the investi­gations of cases, as required by this chapter, the board of county commissioners shall use, so far as possible, some employee of the county trained in such work, who shall not receive any addition­al compensation therefor, or in the absence of such employee the board of county commissioners shall appoint three capable women, residents of such county, who will be willing to accept such appointment and serve without compensation, to investigate and report such case or cases as may be submitted to them of poor mothers, orphans and half-orphan children entitled to the provisions of this chapter, and such persons so appointed shall individually or collectively make their in-

vestigation of the case submitted to them as provided for in §414.08.

History.-§9. ch. 13769, 1929; CGL 1936 Supp. 3727(9).

414.10 Where child may reside.-The child to whom the allowance is made under this chapter must be living with the mother, or other female guardian of such child, unless special privilege of separation is authorized by the board of coun­ty commissioners, such separation to be granted where advantageous for the sake of the child's education or general welfare.

History.-§10, ch. 13769, 1929; CGL 1936 Supp. 3727(10).

414.11 Require attendance at school.-All children receiving aid under the provisions of this chapter, if of school age and physically and mentally qualified, shall be required to attend the schools of the county during the whole term or terms of such schools, and upon failure of such children to attend schools for the whole term or terms thereof, the aid herein provided for such mothers and children shall cease with­out notice. No aid shall be paid for those of school age except upon the monthly certificate of the principal or head of the school or schools attended by such children that they have regu­larly attended the schools during the month in question or have been duly excused by him.

History.-§12, ch. 13769, 1929; CGL 1936 Supp. 3727(12).

414.12 County commissioners may designate county welfare board to carry law into effect.­In those counties having county welfare boards, the board of county commissioners may designate such welfare board, and it shall be the duty of such board, to make the investigation of all cases, and to pass upon all applications for aid; to pay the benefits authorized by this chapter; and the board of county commissioners is authorized, from the appropriation and tax levy authorized by this chapter, to disburse same to such welfare board for administration.

History.-§1, ch. 22716, 1945.

2056

Ch. 416 DETENTION HOMES AND SCHOOLS FOR DELINQUENT CHILDREN Ch. 416

CHAPTER 416

DETENTION HOMES AND SCHOOLS FOR DELINQUENT CHILDREN

416.01 County commissioners authorized to es­tablish; who may be placed in de­tention homes.

416.02 Counties maintaining no detention home.

416.03 Judge of juvenile court may parole. 416.04 Literary and industrial training. 416.05 Certain counties may unite in maintain-

ing homes; board of trustees; pro­visos.

416.01 County commissioners authorized to establish; who may be placed in detention homes.-In all counties of this state the board of county commissioners may provide and main­tain at public expense a detention room, or house of detention, separated or removed from any common jail or lockup, to be in charge of a matron or other person of good moral char­acter, wherein all the delinquent children with­in the provisions of chapter 39, shall, when necessary, be detained. In all counties main­taining detention homes, no children guilty of minor offenses shall be committed to the Flor­ida industrial school for boys except it be deemed necessary after a trial term in said detention home. Such terms shall never be longer than one year. Children under twelve years of age shall not be committed to the Florida industrial school for boys, from any county unless after probation care it is found necessary.

History.-§1, ch. 6841, 1915; RGS 2344; CGL 3740. cf.-Chs. Y55 and 956, Florida schools for boys and girls.

416.02 Counties maintaining no detention home.-In all counties having a population of less than ten thousand and which do not unite with a city or other county or counties, as hereinafter provided, the children detained un­der this chapter may be transferred to some county maintaining a detention home and their maintenance shall be paid for from the general funds of the county in which the commitment is made; and commitment to the Florida. in­dustrial school for boys by said last named counties shall only be made when necessary as above set out.

Hlstory.-§1, ch. 6841, 1915; RGS 2345; CGL 8741.

416.03 Judge of juvenile court may parole. -The judge of the juvenile court in any county maintaining a detention home may parule on good behavior any children committed to a de­tention home, and return them to their homes on parole to a probation officer whether they be from his own or some other county. But he shall first give notice to and confer with the judge who made the commitment.

Hlstory.-U, ch. 6841, 1915; RGS 2346; CGL 3742. cf.-Ch. 39, Juvenile courts.

416.06 County commissioners authorized to ac­quire land for home; increase millage of taxation; superintendent; other employees.

416.07 County board of visitors; term of office. 416.08 Duties of board of visitors; compensa­

tion.

provided for by the board of county commis­sioners for the benefit of children who are de­tained in its detention home. In counties hav­ing no city of ten thousand or over and which do not unite with a city or other county or counties as hereinafter provided, the children committed shall be transferred as soon as possible after commitment to some county maintaining a literary and industrial school training in its detention home, and their main­tenance shall be provided for from the general funds of the county in which the commitment is made.

History.-§2, ch. 6841, 1915; RGS 2347; CGL 3743.

416.05 Certain counties may unite in main­taining homes; board of trustees; provisos.-

(1) A county having a population of less than ten thousand, or a population of ten thou­sand or over, but having no city of ten thou­sand, according to the last United States cen­sus, may unite with one, or two or three adja­cent counties, or unite with a city within that county, in maintaining a detention home and industrial school.

(2) When the board of county commission­ers and the city council, or the boards of county commissioners of the two, three or four adja­cent counties shall agree to unite, the legisla­tive bodies of the several counties or of the city and county so uniting, shall elect a board of trustees for the joint detention home and school, to consist of five or seven members who shall be chosen from the membership of the boards of the counties so uniting, or from the membership of the board of the county and of the city council so uniting in the ap­proximate proportion to the census, children between six and seventeen years of age in the territories uniting.

(3) The members so appointed shall serve for the remainder of the term of office for which they were elected on their respective boards of commissioners or council, and when vacan­cies occur on said board of trustees of joint detention homes, they shall be filled by the board or council making the original appoint­ment.

( 4) All powers and duties by any section of 416.04 Literary and industrial training.-In this chapter conferred or imposed upon the

any county which has a city of ten thousand boards of county commissioners are hereby con­population or over, as given by the last United ferred upon these boards of trustees for the States census, a regular literary and industrial support of a joint detention home; provided, school training at the public expense shall be however, that in estimating the expense for

2057

Ch. 416 DETENTION HOMES AND SCHOOLS FOR DELINQUENT CHILDREN Ch. 416

maintenance of a joint detention home, the amount of money needed for the payment of teachers' salaries and for the furnishing of school supplies, shall be included in the esti­mate of expenses; and provided further, that the estimate shall be transmitted to the boards of county commissioners, or to the boards of commissioners and the city council, of terri­tory so uniting.

History.-§3, ch. 6841, 1915; RGS 2348; CGL 3744.

416.06 County commissioners authorized to acquire land for home; increase millage of tax­ation; superintendent; other employees.-The board of county commissioners of every county may accept as a gift, or may purchase, the land necessary for said detention home, and may increase the millage of taxation for the purpose of establishing and maintaining same. A detention home shall not be deemed to be, nor treated as a penal institution, but a home. The board of county commissioners must also provide for a suitable superintendent or ma­tron, or both, to have charge of such detention home, and for such other employees as may be needed in the efficient management of such de­tention home and provide for the payment out of the general funds of the county for suitable salaries for such superintendent and matron and other employees as may be necessary; and the superintendent and matron and other need­ed employees shall be appointed by said board on the nomination of the county board of visi­tors hereinafter provided, and the approval of the judge of the juvenile court. The superin­tendent, matron and other needed employees shall be appointed on merit and may at any time be removed by the county board of visitors in its discretion, with the approval of the ju­venile judge, after charges have been duly pre­ferred and hearings given.

History.-§4, ch. 6841, 1915; RGS 2349; COL 3745; §9, ch. 65-420.

416.07 County board of visitors; term of office.-The judge of the juvenile court in and for each county of the state, shall, by an order entered in the minutes of the court, ap­point seven discreet citizens of good moral character, without regard to politics, three or more of whom shall be women, to be known as the county board of visitors, and shall fill all vacancies occurring in such committee. The judge shall immediately notify each person appointed on said committee, and thereupon said persons shall appear before the judge of the juvenile court and qualify by taking oath, which shall be entered in said juvenile court record, to faithfully perform the duties of a member of said county board 'Of visitors. The members of such visiting committee shall hold office for four years and until their succ.essors are appointed and qualify; pro­vided, that of those first appointed, one shall

hold office for one year, two for two years, two for three years, and two for four years; the terms for which the respective members shall hold office to be determined by lot as soon after their appointment as may be. When any vacancy occurs in any visiting commit­tee by expiration of the term of office of any member thereof, his successor shall be appointed to hold office for the term of four years; when any vacancy occurs for any other reason, the appointee shall hold office for the unexpired term of his predecessor.

H istory.-§5, ch. 6841, 1915; RGS 2350; CGL 3746.

416.08 Duties of board of visitors; com­pensation.-

(1) The county board of visitors shall visit, without previous notice, not less than four times a year, all persons, institutions, societies, and associations, except state insti­tutions receiving children under this chapter; said visits shall be made by not less than two members of the board who shall go together, or shall make a joint report; said board of visitors shall repcrt to the juvenile court from time to time the condition of children re­ceived by, or in charge of such persons, as­sociations or institutions, and shall make an annual report in writing to the judge of the juvenile court, and on request, to the board of county commissioners, in such form as the court may prescribe, on the qualifications and management of such persons, associations and institutions, and in such report may make such suggestions or comments as to them may seem fit; such report to be filed in the office of the juvenile court prior to the first day in November.

(2) Such persons, associations or institu­tions shall make reports to said visiting board showing their condition, management and com­petency to adequately ·Care for such children as may be committed to them, and such other facts as said board may require.

(3) The court shall in no case commit a child to any person, association or institution whose standing, conduct, or care of children is not satisfactory to the court.

( 4) Said board of visitors shall also have the control and management of the internal af­fairs of any detention home or school estab­lished by the board of commissioners of their county, and the board of county commissioners shall provide for the proper equipment of the home and for the payment of such employees as may be needed in the efficient management of such detention home.

(5) Said committee shall serve without com­pensation, but shall be reimbursed for traveling expenses as provided in §112.061 by the board of county commissioners upon a written order for the amount of such expenses endorsed by the judge of the juvenile court.

Hlstor:r.-§5, ch. 6841, 1915; RGS 2351; CGL 3747; §19, ch. 63-400.

2058

Ch. 417 CHILD WELFARE Ch. 417

CHAPTER 417

CHILD WELFARE

417.01 Florida children's commission; mem­bers; term of office of commission­ers ; meetings.

417.02 Duties.

417.01 Florida children's commission; mem­bers; term of office of commissioners; meet­ings.-That there is hereby created the Florida children's commission, which shall consist of not less than fifteen nor more than twenty-one members all to be appointed by the governor of Florida. The membership of the commission shall include the state superintendent of public instruction, the state health officer, the state welfare commissioner and the chairman of the crippled children's commission. One-third of the members shall be appointed for the term of four years, one-third for the term of three years, and one-third for the term of two years, and· thereafter the terms of office of each member shall be four years. The members shall serve without compensation, but shall be reimbursed for traveling expenses as provided in §112.061 in attending meetings of the commission. The members shall be selected because of their broad interests and knowledge, and their abil­ity to make contributions in specialized fields and their concern for children. The members shall, each year, select one of their own num­ber as chairman. There shall be no less than three meetings of the commission each year; one of which shall be held in July, at which time the chairman shall be selected. The com­mission shall supersede and take over the duties of the present Florida children's committee.

His tory.-§1, ch. 23810, 1947; §11, ch. 25035, 1949; §19, ch. 63-400 . ct.-ch. 391, Florida crippled children's commission.

417.02 Duties.-The duties of the Florida children's commission shall be:

(1) To ascertain the facts concerning the needs of children and youth in the state through adequate research studies; such research to be carried on whenever possible through the de­partments or agencies of the state government responsible for providing services in the fields of health, education, social welfare, employment and related services, but where such research cannot be done within the established state agencies, it shall be carried out by this commis­sion.

(2) To review legislation pertaining to chil­dren and youth and appropriations made for services in their behalf in such fields as health, child guidance, social service, education, recrea­tion, child labor, juvenile courts, probation, and parole service, and detention facilities, and to consider and present revisions and additions needed, and report to the governor of this state and the legislature regarding such legislation.

(3) To appraise the availability, adequacy, and accessibility of all services for children and youth within the state.

(4) To maintain contacts with local, state and federal officials and agencies concerned with planning for children and youth.

417.03 County committee. 417.04 Employment of director and other per­

sonnel.

(5) To encourage and ~oster local com­munity action in behalf of children through the local county children's committees.

Hl.story.-§2, ch. 23810, 1947.

417.03 County committee.-The governor shall appoint, in each county in the state, a com­mittee of not less than nine persons charged with the duty and responsibility of developing such information as the Florida children's com­mission shall require concerning the needs of children within the respective counties, and sub­mitting to the Florida children's commission plans and proposals for meeting the needs of children in the several counties. The county committees shall include the judge of the juve­nile court, or the county judge in counties hav­ing no juvenile court judge, a member of the district welfare board, a member of the board of county commissioners, the county school superintendent or a member of the county school board, and the director of the county health unit where one exists. The other members shall be selected because of their interest in the needs of children, their effectiveness in promo~ ing child welfare within the county, and their knowledge of local conditions, and the chairman shall be elected from the nonofficial members of the committee. One of the nonofficial members of the county committees shall be appointed for four years, two for three .years, where five non­official members are appomted, and two for two years, and thereafter their successors shall be appointed for terms of four years. The mem­bers of the county committees shall receive no compensation for their services.

Hlstory.-§3, ch. 23810, 1947. Am. §11, ch. 25035, 1949.

417.04 Employment of director an~ o~her personnel.-In order to carry out the obJectives of the Florida children's commission, the com­mission shall select and employ a director as follows:

(1) The director shall haye the professi.onal training of recognized grade m one of the fields of work for children, social work, education, youth service, or child health, with at least five years of recent experience in o?e of the~e field.s with a minimum of three to five years experi­ence in a supervisory or consultative position.

(2) The director t? th~ FloridlJ: chpdren's commission shall assist m coordmatmg the programs of all state youth serving agencies; shall plan organize and coordinate the activi­ties of th~ county children's committees; shall make state-wide surveys of factors contributing to juvenile delinquency, and of the resources, facilities and services available within the counties and from the state to counteract

2059

Ch. 417 CHILD WELFARE Ch. 417

juvenile delinquency; shall secure statistical data from the county committees and from state and local agencies; shall arrange for the exchunge of information, plans and programs between public and private groups interested in youth guidance; shall prepare art~cles, ;epor~s and bulletins for the use of the Flonda children s commission and county committees and agencies and for general publication; and shall keep and maintain records and reports and conduct corre-

spondence relative to the work of the commis­sion.

(3) The commission may employ such cleri­cal and other assistants to the director as shall be necessary to earry out the provisions of this section subject to the rules and regulations of the state personnel board council as adopted by the state personnel board.

History.-H. ch. 23810, 1947; (1), (2) A. (3) N. by §1, ell. 57-168; §1, ch. 67-437.

2060

Ch. 418 PLAYGROUNDS AND RECREATION CENTERS Ch. 418

CHAPTER 418

PLAYGROUNDS AND RECREATION CENTERS

418.01 Scope of chapter; definition. 418.02 Recreation centers; use and acquisi­

tion of land; equipment and main­tenance.

418.03 Supervision. 418.04 Playground and recreation board. 418.05 Cooperation with other units and

boards.

418.01 Scope of chapter; definition.-This chapter shall apply to all cities, towns and counties of the state. The term "such munici­pality or county" as used in this chapter refers to and means any city, town or county of the state.

Hlstory.-§1, ch. 10100, 1925; CGL 3728.

418.02 Recreation centers; use and acquisi­tion of land; equipment and maintenance.­The governing body of any such municipality or county may dedicate and set apart for use as playgrounds and recreation centers and other recreation purposes, any lands or buildings, or both, owned or leased by such munici­pality or county and not dedicated or de­voted to another or inconsistent public use; and such municipality or county, may, in such manner as may now or hereafter be author­ized or provided by law for the acquisition of lands or buildings for public purposes by such municipality or county, acquire or lease lands or buildings, or both, within or beyond the corporate limits of such municipality or county, for playgrounds, recreation centers and other recreational purposes and when the governing body of the municipality or county so dedicates, sets apart, acquires or leases lands or buildings for such purposes, it may, on its own initiative, provide for their con­duct, equipment, and maintenance according to provisions of this chapter, by making an appropriation from the general municipal or county funds.

H,lstory.-§2, ch. 10100, 1925; CGL 3729.

418.03 Supervision.-The governing body of any such municipality or county may establish a system of supervised recreation and it may, by resolution or ordinance, vest the power to provide, maintain and conduct playgrounds, recreation centers and other recreational activi­ties and facilities in the school board, park board, or other existing body or in a play­ground and recreation board as the govern­ing body may determine. Any board so desig­nated shall have the power to maintain and equip playgrounds, recreation centers and the buildings thereon, and it may, for the pur­pose of carrying out the provisions of this chapter, employ play leaders, playground di­rectors, supervisors, recreation superinten­dents or such other officers or employees as they deem proper.

Hlstory.-§3, ch. 10100, 1925; CGL 3730.

418.04 Playground and recreation board.­If the governing body of any such munici-

418.06 Gifts, grants, devises and bequests. 418.07 Issuance of bonds. 418.08 Petition for referendum. 418.09 Resolution or ordinance providing for

recreation system. 418.10 Tax levy. 418.11 Payment of expenses and custody of

funds.

pality or county shall determine that the power to provide, establish, conduct and main­tain a recreation system as aforesaid shall be exercised by a playground and recreation board, such governing body shali, by resolu­tion or ordinance, establish in such munici­pality or county a playground and recrea­tion board which shall possess all the powers and be subject to all the responsibilities of local authorities under this chapter. Such board, when established, shall consist of five persons serving without pay, to be appointed by the mayor or presiding officer of such municipality or county. The term of office shall be for five years, or until their successors are appointed and qualified, except that the mem­bers of such board first appointed shall be appointed for such terms that the term of one member shall expire annually thereafter. Im­mediately after their appointment, they shall meet and organize by electing one of their members president and such other officers as may be necessary; vacancies in such boards occurring otherwise than by expiration of term shall be filled by the mayor or presiding officer of the governing body only for the unexpired term.

Hlstory.-§4, ch. 10100, 1925; CGL 3731.

418.05 Cooperation with other units and boards.-Any two or more municipalities or counties may jointly provide, establish, main­tain and conduct a recreation system and acquire property for and establish and main­tain playgrounds, recreation centers and other recreational facilities and activities. Any school board may join with any municipality in conducting and maintaining a recreation system.

Hlstory.-§5, ch. 10100, 1925; CGL 8732.

418.06 Gifts, grants, devises and bequests.­(!) A playground and recreation board or

other authority in which is vested the power to provide, establish, maintain and conduct such supervised recreation system may accept any grant or devise of real estate or any gift or bequest of money or other personal property or any donation to be applied, principal or income, for either temporary or permanent use for play grounds or recreation purposes, but if the acceptance thereof for such pur­poses will subject such municipality or county to additional expense for improvement, main­tenance or renewal, the acceptance of any grant or devise of real estate shall be subject

2061

Ch. 418 PLAYGROUNDS AND RECREATION CENTERS Ch. 418

to the approval of the governing body of such municipality or county.

(2) Money received for such purpose, unless otherwise provided by the terms of the gift or bequest, shall be deposited with the treas~ urer of such municipality or county to the account of the playground and recreation board or commission or other body having charge of such work, and the same may be withdrawn and paid out by such body in the same man­ner as money appropriated for recreation purposes.

Hlstory,-§6, ch. 10100, 1925; CGL 8738.

418.07 Issuance of bonds.-The governing · body of such municipality or county may, pursuant to law and in conformity with the constitution of this state, provide that the bonds of such municipality or county may be issued in the manner provided by law for the issuance of bonds for other purposes, for the purpose of acquiring lands or buildings for playgrounds, recreation centers and other recreational purposes and for the equipment thereof.

Hlstory.-§7, ch. 10100, 1925; CGL 8734.

418.08 Petition for referendum.-Whenever a petition signed by at least five per cent of the qualified and registered electors in such mu­nicipality or county shall be filed with the gov­erning body of such municipality or county, requesting the governing body of such munic­ipality or county to provide, establish, main­tain and conduct a supervised recreation sys­tem and to levy an annual tax for the conduct and maintenance thereof of not more than one mill on each dollar of assessed valuation of all taxable property within the corporate limits or boundaries of such municipality or county, the governing body of such municipality or county shall cause the question of the establishment, maintenance and conduct of such supervised recreation system to be submitted to the qual­ified electors who are freeholders, to be voted upon at the next general or special election of such municipality or county; provided, how­ever, that such question shall not be voted upon at the next general or special election un­less such petition shall have been filed at least thirty days prior to the date of such election.

Bistory.-§8, ch. 10100, 1925; COL 3735; §1, ch. 63-489. cf.-§ 193.32 Annual tax levies, limitations.

418.09 Resolution or ordinance providing for recreation system.-Upon the adoption of such proposition by a majority of those vot­ing on it at an election, the governing body of such municipality or county shall, by ap­propriate resolution or ordinance, provide for the establishment, maintenance and conduct of such supervised recreation system as they may deem advisable and practicable to provide and maintain out of the tax money thus voted. The said governing body may designate, by appropriate resolution or ordinance, the board or commission to be vested with the powers, duties and obligations necessary for the estab­lishment, maintenance and conduct of such recreation system as provided for in this chapter.

Hlstory,-§9, ch. 10100, 1925; CGL 8736.

418.10 Tax levy.-The governing body of such municipality or county adopting the provisions of this chapter at an election and until revoked at an election by a majority of the qualified voters who are freeholders, shall thereafter annually levy and collect a tax of not less than the minimum nor more than the maximum amount set out in the said pe­tition for such election, which tax shall be designated as the "playground and recreation tax" and shall be levied and collected in like manner as the general tax of such municipality or county.

Hlstory.-§10, ch. 10100, 1925; CGL 8737.

418.11 Payment of expenses and custody of funds.-The cost and expense of the estab­lishment, maintenance and conduct of a sup­ervised recreation system of playgrounds, recreation centers and other recreational fa­cilities and activities shall be paid out of taxes or money received for this purpose, and the playground and recreation board or com­mission, or other authority in which is vested the power to provide, establish, conduct and maintain a supervised recreation system and facilities as aforesaid, shall have exclusive control of all moneys collected or donated to the credit of the playground and recreation fund.

Hlstory.-§11, ch. 10100, 1926; CGL 8738,

2062

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

CHAPTER 421

HOUSING AUTHORITIES LAW

421.01 421.02 421.03 421.04 421.05

421.06 421.07 421.08 421.09 421.091 421.10 421.11}1

421.11 421.12 421.13 421.14 421.15 421.16

Short title. Finding and declaration of necessity. Definitions. Creation of housing authorities. Appointment, qualifications and tenure

of commissioners. Interested commissioners or employees. Removal of commissioners. Powers of authority. Operation not for profit. Financial accounting and investments. Rentals and tenant selection. False representations to obtain lower

rent in housing accommodations; penalty.

Cooperation of authorities. Eminent domain. Planning, zoning and building laws. Debentures. Form and sale of debentures. Provisions of debentures and trust in-

dentures. 421.17 Validation of debentures and proceed­

ings. 421.18 Remedies of an obligee of authority. 421.19 Additional remedies conferrable by au­

thority. 421.20 Exemption of property from execution

.sale. 421.21 Aid from federal government; tax ex-

emptions. Reports. Liabilities of authority. Organization and establishment. Contracts and undertakings. Notes and bonds.

421.22 421.23 421.24 421.25 421.26 421.261 Continuance of municipal housing au­

thorities when municipality abol­ished; counties in excess of 400,000.

421.27 Housing authorities in counties. 421.28 Creation of regional housing authority.

421.01 Short title.-This chapter may be re­ferred to as the "Housing Authorities Law."

Hlstoey.-§1, ch. 17981, 1987; CGL 1940 Supp. 7100(8-a).

421.02 Finding and declaration of necessity. -It is hereby declared that:

(1) There exist in the state insanitary or unsafe dwelling accommodations and that persons of low income are forced to reside in such insanitary or unsafe accommodations; that within the state there is a shortage of safe or sanitary dwelling accommodations available at rents which persons of low in­come can afford and that such persons are forced to occupy overcrowded and congested dwelling accommodations; that the aforesaid conditions cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals and welfare of the residents of the state and impair economic values; that these conditions necessitate ex­cessive and disproportionate expenditures of public funds for crime prevention and punish-

421.29 Area of operation of regional housing authority.

421.30 Commissioners of regional authorities. 421.31 Powers of regional housing authority;

definitions. 421.32 Rural housing projects. 421.321 Execution of mortgages. 421.33 Housing applications by farmers. 421.34 Additional definitions. 421.35 Supplemental nature of sections. 421.36 Short title. 421.37 Defense housing; finding and declara­

tion of necessity. 421.38 Defense housing by authorities. 421.39 Acting for federal government on de­

fense housing. 421.40 Cooperation by public bodies on de­

fense housing. 421.41 Bonds for defense housing legal invest­

ments. 421.42 Defense housing contracts validated. 421.43 Removal of restrictions for defense

housing. 421.44 Defense housing; definitions. 421.45 Provisions supplemental. 421.46 Organization and establishment of

housing authorities validated. 421.47 Contracts and undertakings of housing

authorities validated . 421.48 Notes and bonds of housing authorities

validated. 421.49 Area of operation of housing authori­

ties for defense housing. 421.50 Decreasing area of operation of region­

al authority. 421.51 Authority for county excluded from re­

gional authority. 421.52 Authorities; creation, obligations, etc.,

validated. 421.53 Housing authority, Pinellas county;

limitation.

ment, public health, welfare and safety, fire and accident protection, and other public ser­vices and facilities;

(2) Slum areas in the state cannot be cleared, nor can the shortage of safe and sani­tary dwellings for persons of low income be re- . lieved, through the operation of private enter­prise, and that the construction of housing projects for persons of low income (as herein defined) would therefore not be competitive with private enterprise;

(3) The clearance, replanning and recon­struction of the areas in which insanitary or un­safe housing conditions exist and the provid­ing of safe and sanitary dwelling accommoda­tions for persons of low income (including the acquisition by a housing authority of property to be used for or in connection with housing projects or appurtenant thereto) are exclusive­ly public uses and purposes for which public money may be spent and private property ac­quired and are governmental functions of pub­lic concern;

2063

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

( 4) The necessity in the public interest for the provis ions hereinafter enacted, is hereby declared as a matter of legislative determina­tion.

History.-§2, ch. 17981, 1937; CGL 1940 Supp. 7100(3-b).

421.03 Definitions.- The following terms, wherever used or referred to in this chapter, shall have the following respective meanings for the purposes of this chapter, unless a dif­ferent meaning clearly appears from the con­text:

(1) "Authority" or "housing authority" shall mean any of the public corporations creat­ed by §421.04.

(2) "City" shall mean any city or town of the state having a population of more than two thousand five hundred (according to the last preceding federal or state census). "The city" shall mean the particular city for which a par­ticular housing authority is created.

(3) "Governing body" shall mean the city council, the commission, or other legislative body charged with governing the city (as the case may be).

(4) "Mayor" shall mean the mayor of the city or the officer thereof charged with the du­ties customarily imposed on the mayor or ex­ecutive head of the city.

(5) "Clerk" shall mean the clerk of the city or the officer of the city charged with the du­ties customarily imposed on the clerk thereof

(6) "Area of operation": (a) In the case of a housing authority of a

city having a population of less than twenty­five thousand, shall include such city and the area within five miles of the territorial bound­aries thereof; and

(b) In the case of a housing authority of a city having a population of twenty-five thou­sand or more shall include such city and the area within ten miles from the territorial boundaries thereof; provided however, that the area of operation of a housing authority of any city shall not include any area which lies within the territorial boundaries of some other city as herein defined; and further pro­vided that the area of operation shall not ex­tend outside of the boundaries of the county in which the city is located and no housing authority shall have any power or jurisdiction outside of the county in which the city is located.

(7) "Federal government" shall include the United States, the Federal Emergency Admin­istration of Public Works or any other agency or instrumentality, corporate or otherwise, of the United St .. tes.

(8) "Slum" shall mean any area where dwellings predominate which, by reason of di­lapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitary facilities, or any combin!ltion of these factors, are detrimental to safety, health and morals.

(9) "Housing project" shall mean any work or undertaking:

(a) To demolish, clear or remove buildings from any slum area; such work or undertaking may embrace the adaption of such area to pub-

lie purposes, including parks or other recrea­tional or community purposes; or

(b) To provide decent, safe and sanitary urban or rural dwellings, apartments or other living accommodations for persons of low in­come; such work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, con­venient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare or other pur­poses; or

(c) To accomplish a combination of the foregoing. The term "housing project" also may be applied to the planning of the build­ings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection therewith.

(10) "Persons of low income" shall mean persons or families who lack the amount of in­come which is necessary (as determined by the authority undertaking the housing project) to enable them, without financial assistance, to live in decent, safe and sanitary dwellings, without overcrowding.

(11) "Debentures" shall mean any notes, in­terim certificates, debentures, revenue certifi­cates, or other obligations issued by an author­ity pursuant to this chapter.

(12) "Real property" shall include all lands, including improvements and fixtures thereon, and property of any nature appurtenant there­to, or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens.

(13) "Obligee of the authority" or "obligee" shall include any holder of debentures, trustee or trustees for any such holders, or lessor de­mising to the authority property used in con­nection with a housing project, or any asaignee or assignees of such lessor's interest or any part thereof, and the federal government when it is a party to any contract with the authority.

Hlotory.-§3, ch. 17981, 1937; CGL 1940 Supp. 7100(3-c); §1, cb. 20219, 1941; §1, cb. 28061, 1953; §24, ch. 57-1; §1, ch. 67-566.

421.04 Creation of housing authorities.-( I) In each city (as herein defined) there is

hereby created a public body corporate and politic to be known as the "Housing Author­ity" of the city; provided, however, that such authority shall not transact any business or exercise its powers hereunder until or unless the governing body of the city by proper resolution shall declare that there is need for an authority to function in such city. The de­termination as to whether there is such need for an authority to function:

(a) May be made by the governing body on its own motion; or

(b) Shall be made by the governing body upon the filing of a petition signed by twenty­five residents of the eity asserting that there is need for an authority to function in sueh city

2064

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

and requesting that the governing body so de­clare.

(2) The governing body may adopt a reso­lution declaring that there is need for a hous­ing authority in the city if it shall find that:

(a) Insanitary or unsafe inhabited dwelling accommodations exist in such city; or

(b) There is a shortage of safe or sanitary dwelling accommodations in such city available to persons of low income at rentals they can afford. In determining whether dwelling accom­modations are unsafe or insanitary said govern­ing body may take into consideration the degree of overcrowding, the percentage of land cover­age, the light, air, space and access available to the inhabitants of such dwelling accommoda­tions, the size and arrangement of the rooms, the sanitary facilities, and the extent to which conditions exist in such buildings which en­danger life or property by fire or other causes.

(3) In any suit, action or proceeding involv­ing the validity or enforcement of or relating to any contract of the authority, the authority shall be conclusively deemed to have become established and authorized to transact busi­ness and exercise its powers hereunder upon proof of the adoption of a resolution by the governing body declaring the need for the authority. Such resolution or resolutions shall be sufficient if it declares that there is such need for an authority and finds in substantially the foregoing terms (no further detail being necessary) that either or both of the above enumerated conditions exist in the city. A copy of such resolution duly certified by the clerk shall be admissible in evidence in any suit, action or proceeding.

Hlstory.-§4, ch. 17981, 1937; CGL 1940 Supp. 7100(3-d). ct.-§1.01 for general definitions.

§421.52, Agreements and contracts.

421.05 Appointment, qualifications and ten­ure of commissioners.-

(!) When the governing body of a city adopts a resolution as aforesaid, the mayor with the approval of the governing body shall promptly appoint five persons as commissioners of the authority created for said city. Three of the ·Commissioners who are first appointed shall be designated to serve for terms of one, two and three years respectively; and the remaining two of such commissioners shall be designated to serve for terms of four years each, from the date of their appointment. Thereafter commissioners shall be appointed as aforesaid for a term of office of four years except that all vacancies shall be filled for the unexpired term. No commissioner of an auth­ority may be an officer or employee of the city for which the authority is created. A commis­sioner shall hold office until his successor has been appointed and has qualified. A certifi­cate of the appointment or reappointment of any commissioner shall be filed with the clerk and such certificate shall be conclusive evi­dence of the due and proper appointment of such commissioner. A commissioner shall re­ceive no compensation for his services, but he shall be entitled to the necessary expenses, in-

eluding traveling expenses, incurred in the dis· charge of his duties.

(2) The powers of each authority shall be vested in the commissioners thereof in office from time to time. Three commissioners shall constitute a quorum of the authority for the purpose of conducting its business and exercis­ing its powers and for all other purposes. Ac­tion may be taken by the authority upon a vote of a majority of the commissioners present, unless in any case the bylaws of the authority shall require a larger number. The mayor with the concurrence of the governing body shall designate which of the commissioners appointed shall be the first chairman, but when the office of the chairman of the authority thereafter becomes vacant, the authority shall select a chairman from among its commissioners. An authority shall select from among its commis­sioners a vice-chairman, and it may employ a secretary (who shall be executive director), technical experts and such other officers, agenta and employees, permanent and temporary, as it may require, and shall determine their quali­fications, duties and compensation. For such legal services as it may require, an authority may call upon the chief law officer of the city or may employ its own counsel and legal staff. An authority may delegate to one or more of its agents or employees such powers or duties as it may deem proper.

History.-§5, ch. 17981, 1937; CGL 1940 Supp. 7100(3-e). §1, ch. 59-413.

421.06 Interested commissioners or em­ployees.-N o commissioner or employee of an authority shall acquire any interest, direct or indirect, in any housing project or in any prop­erty included or planned to be included in any project, nor shall he have any interest, direct or indirect, in any contract or proposed con­tract for materials or services to be furnished or used in connection with any housing pro­ject. If any commissioner or employee of an authority owns or controls an interest, direct or indirect, in any property included or plan­ned to be included in any housing project, he shall immediately disclose the same in writing to the authority and such disclosure shall be entered upon the minutes of the authority. Failure so to disclose such interest shall con­stitute misconduct in office.

Hlstory.-§6, ch. 17981, 1937; CGL 1940 Supp. 7100(3-t).

421.07 Removal of commissioners.-For in­efficiency or neglect of duty or misconduct in office, a commissioner of an authority may be removed by the mayor with the concurrence of the governing body, but a commissioner shall be removed only after he shall hava been given a copy of the charges at least ten days prior to the hearing thereon and had an op­portunity to be heard in person or by counsel. In the event of the removal of any commis­sioner, a record of the proceedings, together with the charges and findings thereon, shall be filed in the office of the clerk.

History.-§7, ch. 17981, 1937; CGL 1940 Supp. 7100(3-g). §2, ch. 59-413.

2065

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

421.08 Powers of authority.-An authority or personal property; to purchase, lease, ob­shall constitute a public body corporate and tain options upon, acquire by gift, grant, be­politic, exercising the public and essential gov- quest, devise, or otherwise any real or personal ernmental functions set forth in this chapter, property or any interest therein; to acquire and having all the powers necessary or con- by the exercise of the power of eminent do­venient to carry out and effectuate the pur- main any real property; to sell, lease, exchange, pose and provisions of this chapter, including transfer, assign, pledge or dispose of any real the following powers in addition to others here- or personal property or any interest therein; in granted: to insure or provide for the insurance of any

(1) To sue and be sued; to have a seal and real or personal property or operations of the to alter the same at pleasure; to have perpet- authority against any risks or hazards; to pro­ual succession; to make and execute contracts cure or agree to the procurement of insurance and other instruments necessary or convenient or guarantees from the federal government of to the exercise of the powers of the author- the payment of any such debts or parts thereof ity; and to make and from time to time amend (whether or not incurred by said authority), and repeal by-laws, rules and regulations, not including the power to pay premiums on any inconsistent with this chapter, to carry into ef- such insurance. feet the powers and purposes of the author- (5) To invest any funds held in reserves ity. or sinking funds, or any funds not required

(2) Within its area of operation, to pre- for immediate disbursement, in property or pare, carry out, acquire, lease and operate hous- securities in which savings banks may legally ing projects; to provide for the construction, invest funds subject to their control; to pur­reconstruction, improvement, alteration or re- chase its debentures at a price not more than pair of any housing project or any part thereof. the principal amount thereof and accrued in-

(3) To arrange or contract for the furnish- terest, all debentures so purchased to be can­ing by any person or agency, public or private, celed. of services, privileges, works, or facilities for, ( 6) Within its area of operation: to inves­or in connection with, a housing project or the tigate into living, dwelling and housing condi­occupants thereof; provided, however, that not- tions and into the means and methods of im­withstanding any other power or provision in proving such conditions; to determine where this chapter, the authority shall not construct. slum areas exist or where there is a shortage lease, control, purchase or otherwise establish of decent, safe and sanitary dwelling accommo­in connection with or as a part of any housing dations for persons of low income; to make project or any other real or any other property studies and recommendations relating to the under its control, any system, work, facilities, problem of clearing, replanning and recon­plants or other equipment for the purpose of struction of slum areas, and the problem of furnishing utility service of any kind to such providing dwelling accommodations for per­projects or to any tenant or occupant thereof sons of low income, and to cooperate with the in the event that a system, work, facility, plant city, the county, the state or any political sub­or other equipment for the furnishing of the division thereof in action taken in connection same utility service is being actually operated with such problems; and to engage in research, by a municipality or private concern in the studies and experimentation on the subject of area of operation or the city or the territory housing. immediately adjacent thereto; provided, fur- (7) Acting through one or more commis­ther, that nothing herein shall be construed to sioners or other person or persons designated prohibit the construction or acquisition by the by the authority; to conduct examinations and authority of any system, work, facilities O!" investigations and to hear testimony and take other equipment for the sole and only purpose proof under oath at public or private hearings of receiving utility services from any such mu- on any matter material for its information; to nicipality or such private concern and then administer oaths, issue subpoenas requiring distributing such utility services to the pro- the attendance of witnesses or the production ject and to the tenants and occupants thereof; of books and papers and to issue commission11 and (notwithstanding anything to the contrary for the examination of witnesses who are out­contained in this chapter or in any other pro- side of the state or unable to attend before the vision of law) to include in any contract let in authority, or excused from attendance; to make connection with a project, stipulations requir- available to appropriate agencies (including ing that the contractor and any subcontractors those charged with the duty of abating or re­comply with requirements as to minimum wages quiring the correction of nuisances or like con­and maximum hours of labor, and comply with ditions, or of demolishing unsafe or insanitary any conditions which the federal government structure within its area of operation) its find­may have attached to its financial aid of the ings and recommendations with :regard to any project. building or property where conditions exist

( 4) To lease or rent any dwellings, houses, which are dangerous to the public health, mor­accommodations, lands, buildings, structures or als, safety or welfare. facilities embraced in any housing project and (8) To exercise all or any part or combina­(subject to the limitations contained in this tion of powers herein granted. No provisions chapter) to establish and revise the rents or of law with respect to acquisition, operation charges therefor; to own, hold and improve real or disposition of property by other public bod-

2066

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

ies shall be applicable to an authority unless the legislature shall specifically so state.

Hlstory.-§8, ch. 17981, 1937; CGL 1940 Supp. 7100(3-h). cf.-§§421.24, 421 .47, 421.52, Validation, etc., of acts .

See: Adams v . Housing authority or city of Daytona Beach, 60 So. 2d 663.

421.09 Operation not for profit.-It is the policy of this state that each housing author­ity shall manage and operate its housing pr<?­jects in an efficient manne: so as to enabl.e 1t to fix the rentals for dwelhng accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that no housing author­ity shall construct or operate any such project for profit, or as a source of revenue to the city. To this end an authority shall fix the rentals for dwellings in its project at no higher rate than it shall find to be necessary in order to produce revenues which (together with all other available moneys, revenue, income and receipts of the authority from whatever sources derived) will be sufficient:

(1) To pay, as the same shall become due, the principal and interest on the debentures of the authority;

(2) To meet the cost of, and to provide for, maintaining and operating the projects (includ­ing the cost of any insurance) and the adminis­trative expenses of the authority; and

(3) To create (during not less than the six years immediately succeeding its issuance of any debentures) a reserve sufficient to meet the largest principal and interest payments which will be due on such debentures in any one year thereafter, and to maintain such reserve.

Hlstory.-§9, ch. 17981, 1937; CGL 1940 Supp. 7100(3-1).

421.091 Financial accounting and invest­ments.-A complete and full financial account­ing and audit shall be made annually by a certi­fied public accountant, and a copy of said re­port shall be filed with the governing body not less than ninety days after the close of each fiscal year. Provided, however, that it shall not be necessary to make a financial ac­counting and audit of federal funds furnished housing authorities by the federal government and which are audited annually by said federal government if a copy of such federal audit is furnished to the governing body.

History.-§3, ch. 59-413.

421.10 Rentals and tenant selection.-(!) In the operation or management of

housing projects an authority shall at all times observe the following duties with respect to rentals and tenants selection:

(a) It may rent or lease the dwelling ac­commodations therein only to persons of low income and at rentals within the financial reach of such persons of low income;

(b) It may rent or lease to a tenant dwell­ing accommodations consisting of the number of rooms (but no greater number) which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding; and

(c) It shall not accept any person as a ten-

ant in any housing project if the person or per­sons who would occupy the dwelling accommo­dations have an annual net income in excess of five times an annual rental of the quarters to be furnished such person or persons, except that in case of families with three or more minor dependents, such ratio shall not exceed six to one; in computing the rental for this purpose of selecting tenants, there shall be in­cluded in the rental the average annual cost (as determined by the authority) to occupants of heat, water, electricity, gas, cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental.

(2) Nothing contained in this section or §421.09, shall be construed as limiting the power of an authority to vest in an obligee the right, in the event of a default by the au­thority, to take possession of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by this or the preceding section.

(3) This section shall not apply to housing facilities financed by loans made for the pur­pose of providing such facilities for domestic farm labor pursuant to §514 of the federal housing act of 1949.

Hlstory.-§10, ch. 17981, 1937; 11, ch. 19510, 1939; CGL 1940 Supp. 7100(3-j); §7, ch. 22858, 1945; §1, ch. 65-223.

421.101 False representations to obtain low­er rent in housing accommodations; penalty.­Whoever makes a false statement or represen­tation, knowing it to be false, or knowingly fails to disclose a material fact in order to obtain a lower rent for housing accommoda­tions in a low rent housing development op­erated pursuant to chapter 421, than the rental such person is required to pay pursuant to federal or state statutes, schedule of rents or rules and regulations as determined and fixed by housing authorities created pursuant to chapter 421, aforesaid, shall be punished by a fine of not less than $50.00 nor more than $500.00, or by imprisonment for not more than six months in the county jail, or both such fine and imprisonment; and each such false statement or representation or failure to dis­close a material fact as aforesaid shall con­stitute a separate offense.

Hlstory.-§1, ch. 61-468.

421.11 Cooperation of authorities.-Any two or more housing authorities may join or cooper­ate with one another in the exercise, either jointly or otherwise, of any or all of their powers for the purpose of financing (including the is­suance of bonds, debentures, notes or other ob­ligations and giving security therefor), planning, undertaking, owning, constructing, operating or contracting with respect to a housing project or projects located within the area of operation of any one or more of said authorities. For such purpose, an authority may by resolution pre­scribe and authorize any other housing authority or authorities, so joining or cooperating with it, to act on its behalf with respect to any or all such powers. Any authorities joining or cooper-

2067

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

ating with one another may by resolutions ap­point from among the commissioners of such au­thorities an executive committee with full power to act on behalf of such authorities with respect to any or all of their powers, as prescribed by resolutions of such authorities.

Hlstory.-§ll, ch. 17981, 1937; CGL 1940 Supp. 7100(3-k); am. §1, ch. 21699, 1943.

421.12 Eminent domain.-An authority shall have the right to acquire by the exercise of the power of eminent domain any real prop­erty which it may deem necessary for its pur­poses under this chapter after the adoption by it of a resolution declaring that the acquisi­tion of the real property described therein is necessary for such purposes. An authority may exercise the power of eminent domain in the manner provided in chapters 73 and 74. Prop­erty already devoted to a public use may be acquired in like manner, provided that no real property belonging to the city, the county, the state or any political subdivision thereof may be acquired without its consent.

Hlstory.-§12, ch. 17981, 1937; CGL 1940 Supp. 7100(3-1).

421.13 Planning, zoning and building laws. -All housing projects of an authority shall be subject to the planning, zoning, sanitary and building laws, ordinances and regulations ap­plicable to the locality in which the housing project is situated. In the planning and lo­cation of any housing project, an authority shall take into consideration the relationship of the project to any larger plan or long-range program for the development of the area in which the housing authority functions.

Hlatory.-§13, ch. 17981, 1937; CGL 1940 Supp. 7100(8-x).

421.14 Debentures.-(!) An authority may issue debentures from

time to time in its discretion, for any of its corporate purposes. An authority may also is­sue refunding debentures for the purpose of paying or retiring debentures previously issued by it. An authority may issue such types of debentures as it may determine, including de­bentures on which the principal and interest are payable:

(a) Exclusively from the income and reve­nues of the housing project financed with the proceeds of such debentures, or with such pro­ceeds together with a grant from the federal government in aid of such project;

(b) Exclusively from the income and reve­nues of certain designated housing projects whether or not they were financed in whole or in part with the proceeds of such debentures; or

(c) From its revenues generally. Any of such debentures may be additionally secured by a pledge of any revenues of any housing proj­ect, projects or other property of the authority.

(2) Neither the commissioners of an author­ity nor any person executing the debentures shall be liable personally on the debentures by reason of the issuance thereof. The debentures and other obligations of an authority (and such debentures and obligations shall so state on

their face) shall not be a debt of the city, the county, the state or any political subdivision thereof, and neither the city or the county, nor the state or any political subdivision there­of shall be liable thereon, nor in any event shall such debentures or obligations be pay­able out of any funds or properties other than those of said authority. The debentures shall not constitute an indebtedness within the mean­ing of any constitutional or statutory debt or bond limitatiqn or restriction.

mstory.-§14, ch. 17981, 1937; COL 1940 Supp. 7100(3-y).

421.15 Form. and sale of debentures.-(!) Debentures of an authority shall be au­

thorized by its resolution and may be issued in one or more series and shall bear such dates, mature at such times, bear interest at such rates, not exceeding six per cent per annum, be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or pri­ority, be executed in such manner, be payable in such medium of payment, at such places and be subject to such terms of redemption (with or without premium) as such resolution or its trust indenture may provide.

(2) The debentures may be sold at not less than par at public sale held after notice pub­lished once at least five days prior to such sale in a newspaper having a general circulation in the city and in a financial newspaper published in the city of Chicago, Illinois, or in the city of New York, New York, provided, however, thai such debentures may be sold at not less than par to the federal government at private sale without any public advertisement.

(3) In case any of the commissioners or of­ficers of the authority whose signatures appear on any debentures or coupons shall cease to be such commissioners or officers before the de­livery of such debentures, such signatures shall, nevertheless, be valid and sufficier,t for all purposes, the same as if such commission­ers or officers had remained in office until such delivery. Any provision of any law to the con­trary notwithstanding, any debentures issued pursuant to this chapter shall be fully nego­tiable.

(4) In any suit, action or proceedings in­volving the validity or enforceability of any de­benture of an authority or the security therefor, any such debenture reciting in substance that it has been issued by the authority to aid in fin­ancing a housing project to provide dwelling accommodations for persons of low income shall be conclusively deemed to have been is­sued for a housing project of such character and said project shall be conclusively deemed to have been planned, located and constructed in accordance with the purposes and provisions of this chapter.

Hlstory.-§16, ch. 17981, 1937; CGL 1940 Supp. 7100(3-s).

421.16 Provisions of debentures and trust indentures.-In connection with the issuance of debentures or the incurring of obligations under leases and in order to secure the pay-

2068

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

ment of such indentures or obligations, an authority, in addition to its other powers, shall have power:

(1) To pledge all or any part of its gross or net rents, gross or net fees or gross or net revenues to which its right then exists or may thereafter come into existence.

(2) To covenant against pledging all or any part of its rents, fees and revenues, or against mortgaging all or any part of its real or personal property, to which its right or title then exists or may thereafter come into exist­ence or against permitting or suffering any lien on such revenues or property; to covenant with respect to limitations on its rights to sell, lease or to otherwise dispose of any housing project or any part thereof; and to covenant as to what other, or additional debts or obliga­tions may be incurred by it.

(3) To covenant as to the debentures to be issued and as to the issuance of such deben­tures in escrow or otherwise, and as to the use and disposition of the proceeds thereof; to provide for the replacement of lost, destroyed or mutilated debentures; to covenant against extending the time for the payment of its de­bentures or interest thereon; and to redeem the debentures, and to covenant for their re­demption and to provide the terms and condi­tions thereof.

( 4) To covenant (subject to the limitations contained in this chapter) as to the rents and fees to be charged in the operation of a hous­ing project or projects, the amount to be raised each year or other period of time by rents, fees and other revenues, and as to the use and disposition to be made thereof; to create or to authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserves, or other purposes, and to covenant as to the use and disposition of the moneys held in such funds.

(5) To prescribe the procedure, if any, by which the terms of any contract with the hold­ers of debentures may be amended or abro­gated, the amount of debentures the holders of which must consent thereto, and the manner in which such consent may be given.

(6) To covenant as to the use of any or all of its real or personal property; and to coven­ant as to the maintenance of its real and per­sonal property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys.

(7) To covenant as to the rights, liabilities, powers and duties arising upon the breacli by it of any covenant, condition, or obligation, and to covenant and prescribe as to events of de­fault and terms and conditions upon which any or all of its debentures or obligations shall become or may be declared due before matur­ity, and as to the terms and conditions upon which such declaration and its consequences may be waived.

(8) To vest in a trustee or trustees or the holders of debentures or any proportion of them the right to enforce the payment of the debentures or any covenants securing or relat-

ing to the debentures; to vest in a trustee or trustees the right, in the event of a default by said authority, to take possession and use, op­erate and manage any housing project or part thereof, and to collect the rents and revenues arising therefrom and to dispose of such mon­eys in accordance with the agreement of the authority with said trustee; to provide for the powers and duties of a trustee or trustees and to limit the liabilities thereof; and to provide the terms and conditions upon which the trus­tee or trustees or the holders of debentures or any proportion of them may enforce any covenant or rights securing or relating to the debentures.

(9) To exercise all or any part or combina­tion of the powers herein granted.

Hlstory,-§16, ch. 17981, 1937 ; CGL 1940 Supp. 7100(3-aa),

421.17 Validation of debentures and pro­ceedings.-

(1) A housing authority shall have the right, if it deems it expedient, to determme its authority to issue any debentures, and the legality of all proceedings had or taken in connection therewith, in the same manner and to the same extent (except as otherwise provided in this section) as provided in chap­ter 75 for the determination by a county, mu­nicipality, taxing district, or other political district or subdivision of its authority to incur bonded debt or to issue certificates of in­debtedness and of the legality of all proceed­ings had or taken in connection therewith.

(2) The petition to validate such deben­tures, and the proceedings had or taken in con­nection therewith, shall be filed by the housing authority in the circuit court for the county in which is located the city for which said housing authority was created, except that whenever it appears that a housing authority is empowered to function in more than one county the circuit court of any county in the whole or any part of which the housing au­thority is empowered to function shall have jurisdiction of the cause in the same manner as provided in said chapter whenever a mu­nicipality, taxing district or other political district or subdivision shall extend into more than one county.

(3) The notice required by §75.06 shall be addressed to the taxpayers and citizens of the city for which such housing authority has been created and of the county (or counties, in the event such housing authority is em­powered to function in more than one county) in the whole or any part of which the housing authority is empowered to function; and by the publication of such notice as required by said chapter 75 all taxpayers and citizens of such city and such county or counties, as the case may be, shall be considered as parties defendant to such proceedings, and the cir­cuit court in which the proceeding is brought shall have jurisdiction of all of the same as if they were named defendants in the peti­tion filed pursuant to said chapter and per­sonally served with process.

2069

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

( 4) In the event no appeal is taken within the time prescribed by said chapter, or if taken, and the decree validating said debentures is affirmed by the supreme court, the decree of the circuit court validating and confirming the issuance of the debentures of the housing authority shall be forever conclusive as to the validity of said debentures against the hous­ing authority and against all taxpayers and citizens of the city for which said housing authority was created and of the county or counties in the whole or part of which the housing authority is empowered to function; and the validity of said debentures shall never be called in question in any court in this state. Debentures of a housing authority, when issued under the provisions of said chapter, shall have stamped or written thereon by the proper officers of the housing authority issu­ing the same, the words: "Validated and con­firmed by decree of the circuit court" (speci­fying the date when such decree was rendered and the court in which it was rendered), which shall be signed by the clerk of the circuit court in which the decree was rendered, which entry shall be original evidence of said decree in any court in this state.

History.-§17. ch. 17981, 1937; CGL 1940 Supp. 7100(3-bb). cf.-§§421.26, 421.48, 421.52, Notes, bonds, debentures; vall­

dation, etc.

421.18 Remedies of an obligee of authority. -An obligee of an authority shall have the right in addition to all other rights which may be conferred on such obligee, subject only to any contractual restrictions binding upon such obligee:

(1) By mandamus, suit, action or proceed­ing at law or in equity to compel said au­thority and the commissioners, officers, agents or employees thereof to perform each and every term, provision and covenant contained in any contract of said authority with or for the benefit of such obligee, and to require the carrying out of any or all such covenants and agreements of said authority and the ful­fillment of all duties imposed upon said author­ity by this chapter.

(2) By suit, action or proceeding in equity, to enjoin any acts or things which may be unlawful, or the violation of any of the rights of such obligee of said authority.

Hlstory.-§18, ch. 17!181, 1937; CGL 1940 Supp. 7100(3-cc) .

421.19 Additional remedies conferrable by authority.-An authority shall have power by its resolution, trust indenture, lease or other contract to confer upon any obligee holding or representing a specified amount in deben­tures, or holding a lease, the right (in addi­tion to all rights that may otherwise be con­ferred), upon the happening of an event of default as defined in such resolution or in­strument, by suit, action or proceeding in any court of competent jurisdiction:

(1) To cause possession of any housing project or any part thereof to be surrendered to any such obligee.

(2) To obtain the appointment of a re-

ceiver of any housing project of said authority or any part thereof and of the rents and profits therefrom. If such receiver be ap­pointed, he may enter and take possession of such housing project or any part thereof and operate and maintain same, and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom, and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligation of said authority as the court shall direct.

(3) To require said authority and the com­missioners thereof to account as if it and they were the trustees of an express trust.

Hlstory.-§19, ch. 17981. 1937; CGL 1940 Supp. 7100(3-dd).

421.20 Exemption of property from execu­tion sale.-

(1) All real property of an authority shall be exempt from levy and sale by virtue of an execution, and no execution or other ju­dicial process shall issue against the same nor shall any judgment against an authority be a charge or lien upon its real property; provided, however, tha:t the provisions of this section shall not apply to or limit the right of obligee to pursue any remedies for the enforcement of any pledge given by an authority on its rents, fees or revenues.

(2) This section shall not apply to housing facilities financed by loans made for the pur­pose of providing such facilities for domestic farm labor pursuant to §514 of the federal housing act of 1949.

Bistory.-§20, ch. 17981, 1937; COL 1940 Supp. 7100(3-ee); §2, ch. 65-223.

421.21 Aid from federal government; tax exemptions.-

( I) In addition to the powers conferred upon an authority by other provisions of this chapter, an authority is empowered to borrow money or accept grants or other financial as­sistance from the federal government for or in aid of any housing project within its area of op­eration, to take over or lease or manage any housing project or undertaking constructed or owned by the federal government, and to these ends, to comply with such conditions and enter into such trust indentures, leases or agreements as may be necessary, convenient or desirable. It is the purpose and intent of this chapter to authorize every authority to do any and all things necessary or desirable to secure the financial aid or cooperation of the federal government in the undertaking, construction, maintenance or operation of any housing project by such authority.

(2) In addition to the powers conferred upon an authority by subsection (1) and other provisions of this chapter, an authority is em­powered to borrow money or accept grants or other financial assistance from the federal government under section 202 of the housing act of 1959 (P. L. 86-372, 86th congress) or any law or program of the housing and home fi­nance agency, which provides for direct federal

2070

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

loans in the maximum amount, as defined there­in, for the purpose of assisting certain non­profit corporations to provide housing and re­lated facilities for elderly families and elderly persons.

(a) Housing authorities created under this section are authorized to execute mortgages, notes, bills or other forms of indebtedness to­gether with any agreements, contracts or other instruments required by the housing and home finance agency of the United States govern­ment in connection with loans made for the purposes set forth in subsection (2).

(b) This provision relating to housing fa­cilities for the elderly is cumulative and in addition to the powers given to housing au­thorities under this chapter. All powers grant­ed generally by law to housing authorities in Florida relating to issuance of trust inden­tures, debentures and other methods of raising capital shall apply also to housing authori­ties in connection with their participation in programs of the housing and home finance agency.

(3) It is the legislative intent that the tax exemption of housing authorities provided by chapter 423, shall specifically apply to any housing authority created under this section.

History.-§21, ch. 17981, 1937; COL 1940 Supp. 7100(3-f!); § §1, 2, ch. 61-197.

421.22 Reports.-At least once a year, an authority shall file with the clerk a report of its activities for the preceding year, and shall make recommendations with reference to such additional legislation or other action as it deems necessary in order to carry out the purposes of this chapter.

History.-§22, ch. 17981, 1937; CGL 1940 Supp. 7100(3-gg).

421.23 Liabilities of authority.-In no event shall the liabilities, whether ex contractu or ex delicto, of an authority arising from the op­eration of its housing projects, be payable from any funds other than the rents, fees or revenues of such projects and any grants or subsidies paid to such authority by the federal government.

History.-§23, ch. 17981, 1937; CGL 1940 Supp. 7100(3-hh); am. §7, ch. 22858, 1945.

421.24 Organization and establishment. -The establishment and organization of housing authorities in the state under the provisions of the housing authorities law of this state, together with all proceedings, acts and things heretofore undertaken, performed or done with reference thereto, are hereby validated, rati­fied, confirmed, approved and declared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.

History.-§1, ch. 19511, 1939; CGL 1940 Supp. 7100(3-kk).

421.25 Contracts and undertakings. - All contracts, agreements, obligations, and under­takings of such housing authorities heretofore entered into relating to financing or aiding in the development, construction, maintenance or

operation of any housing project or projects or to obtaining aid therefor from the United States Housing Authority, including (without limiting the generality of the foregoing) loan and annual contributions, contracts and leases with the United States Housing Authority, agreements with municipalities or other public bodies (including those which are pledged or authorized to be pledged for the protection of the holders of any notes or bonds issued by such housing authorities or which are other­wise made a part of the contract with such holders of notes or bonds) relating to coopera­tion and contributions in aid of housing pro­jects, payments (if any) in lieu of taxes, fur­nishing of municipal services and facilities, and the elimination of unsafe and insanitary dwellings, and contracts for the construction of housing projects, together with all proceed­ings, acts and things heretofore undertaken, performed or done with reference thereto, are hereby validated, ratified, confirmed, approved and declared legal in all respects, notwithstand­ing any defect or irregularity therein or any want of statutory authority.

History.-§2, ch. 19511, 1939; CGL 1940 Supp. 7100(3-11).

421.26 Notes and bonds.-All proceedings, acts and things heretofore undertaken, per­formed or done in or for the authorization, issuance, execution and delivery of notes and bonds by housing authorities for the purpos~; of financing or aiding in the development or construction of a housing project or projects, and all notes and bonds heretofore issued by housing authorities are hereby validated, rati­fied, confirmed, approved and declared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.

History.-§3, ch. 19511, 1939; CGL 1940 Supp. 7100(3-mm).

421.261 Continuance of municipal housing authorities when municipality abolished; coun­ties in excess of 400,000.-Whenever a munici­pality in any county having a population in excess of four hundred thousand according to the most recent official census has been or hereafter shall be abolished, wherein at the time of such abolishment a housing authority of such municipality was or is in existence, such housing authority shall continue to function in all respects; provided, however, that the name of such housing authority shall thenceforth be such as may be determined by the county com­missioners of the county wherein it functions. Each such housing authority and the commis­sioners thereof, within the area of operation of such housing authority as hereinafter defined, shall have the same functions, rights, powers, duties, immunities and privileges provided for housing authorities created for cities. Each such housing authority shall continue to oper­ate and prosecute all projects operated or initi­ated by it prior to the abolishment of the municipality, and shall be entitled to all bene­fits and privileges thereafter conferred upon housing authorities for cities. The commis-

2071

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

sioners of each such housing authority shall commissioners," the term "city" as used therein continue in office after the abolishment of the shall be construed as meaning "county," and the particular municipality for the remainder of term "clerk" as used therein shall be construed their respective terms. Their successors shall as meaning "county clerk" (as herein defined), be appointed by resolution of the commissioners unless a different meaning clearly appears from of the county. As used in the housing authori- the context; and provided further that the gov­ties law, the terms "mayor" and "governing ernor may appoint any persons as commissioners body" shall be construed as meaning "county of a housing authority created for a county who commissioners", the term "city" as used therein are qualified electors in such county; and pro­shall be construed as meaning "county", and vided further that such commissioners may be the term "clerk" as used therein shall be con- removed or suspended in the same manner and strued as meaning "clerk of the circuit court for the same reasons as other officers appointed of the county", unless different meanings clear- by the governor. ly appear from the contents. The area of oper- (3) The area of operation of a housing au­ation of any such housing authority shall con- thority created for a county shall include all of tinue to be the same as that before the abolish- the county for which it is created except that ment of the municipality, unless extended by portion of the county which lies within the ter­resolution of the county commissioners, pro- ritorial boundaries of any city as defined in the vided that no such extension shall include any Housing Authorities Law, as amended. territory lying within a city as defined in the Hlstory.-§1, (27) ch. 20220, 1941.

housing authorities law. 421.28 Creation of regional housing au-mstor;r.-comp. §1, cb. 28305, 1953. thority.-421.27 Housing authorities in counties.- (1) If the governing body of each of (1) In each county of the state there is two or more contiguous counties by resolution

hereby created a public body corporate and declares that there is a need for one housing au­politic to be known as the "housing authority" thority to be created for all of such counties to of the county; provided, however, that such exercise powers and other functions herein pre­housing authority shall not transact any busi- scribed in such counties, a public body corporate ness or exercise its powers hereunder until or and politic to be known as a regional housing unless the governing body of such county, by authority shall thereupon exist for all of such proper resolution shall declare at any time counties and exercise its powers and other tunc­hereafter that there is need for a housing au- tions in such counties; and thereupon each hous­thority to function in and for such county, ing authority created by §421.27 for each which declaration shall be made by such gov- of such counties shall cease to exist except for erning body for such county in the same man- the purpose of winding up its affairs and ex­ner and subject to the same conditions as the ecuting a deed to the regional housing authority declaration of the governing body of a city as hereafter provided; provided that the gov­required by §421.04 for the purpose of autho- erning body of a county shall not adopt a reso­rizing a housing authority created for a city to lution as aforesaid if there is a housing author­transact business and exercise its powers (ex- ity created for such county which has any obli­cept that the petition referred to in said gations outstanding unless first: §421.04 shall be signed by twenty-five resi- (a) All obligees of such county housing au-dents of such county). thority and parties to the contracts, bonds,

(2) Upon notification of the adoption of notes and other obligations of such county hous­such resolution the commissioners of a housing ing authority agree with such county housing authority created for a county (who shall be authority to the substitution of such regional qualified electors of such county) shall be ap- housing authority in lieu of such county hous­pointed by the governor in the same manner as ing authority on all such contracts, bonds, the commissioners of a housing authority ere- notes or other obligations; and ated for a city may be appointed by the mayor; (b) The commissioners of such county hous­and except as otherwise provided herein, each ing authority adopt a resolution consentinll: to housing authority created for a county and the the transfer of all the rights, contracts, obliga­commissioners thereof, within the area of opera- tions and property, real and personal, of such tion of such housing authority as hereinafter county housing authority to such reg-ional hous­defined, shall have the same functions, rights, ing authority as hereinafter provided; powers, duties, immunities and privileges pro- and provided further that when the above two vided for housing authorities created for cities conditions are complied with and such regional and the commissioners of such housing authori- housing authority is created and authorized to ties, in the same manner as though all the pro- exercise its powers and other functions, all visions of law applicable to housing authorities rights, ·contracts, agreements, oblig-ations and created for cities were applicable to property of such county housing authority shall housing authorities created for counties; pro- be in the name of and vest in such regional vided, that for such purposes the term "mayor" housing authority, and all obligations of such as used in the Housing Authorities Law shall county housing authority shall be the obliga­be construed as meaning "governor," the tions of such regional housing authority and all term "governing body" as used therein rights and remedies of any person against such shall be construed as meaning "county county housing authority may be asserted, en-

2072

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

forced and prosecuted against such regional housing authority to the same extent as they may have been asserted, enforced and prose­cuted against such county housing authority.

(2) When any real property of a county housing authority vests in a regional housing authority as provided above, the county housing authority shall execute a deed of such property to the regional housing authority which there­upon shall file such deed with the recorder of deeds of the county where such real property is, provided that nothing contained in this sen­tence shaH affect the vesting of property in the regional housing authority as provided above.

(3) The governing body of each of two or more contiguous counties shall by resolution declare that there is a need for one regional housing authority to be created for all of such counties to exercise powers and other functions herein prescribed in such counties, if such gov­erning body finds (and only if it finds):

(a) That insanitary or unsafe inhabited dwelling accommodations exist in such county or there is a shortage of safe and sanitary dwelling accommodations in such county avail­able to persons of low income at rentals they can afford; and

(b) That a regional housing authority would be a more efficient or economical administrative unit than the housing authority of such county to carry out the purposes of this Housing Au­thorities Law in such county.

(4) In any suit, action or proceeding involv­ing the validity or enforcement of or relating to any contract of the regional housing authority, the regional housing authority shall be conclu­sively deemed to have become created as a public body corporate and politic and to have become established and authorized to transact business and exercise its powers hereunder upon proof of the adoption of a resolution by the governing body of each of the counties cresting the re­gional housing authority declaring the need for the regional housing authority. Each such reso­lution shall be deemed sufficient if it declares that there is need for a regional housing author­ity and finds in substantially the foregoing terms (no further detail being necessary) that the con­ditions enumerated above in (a) and (b) of sub­section (3) exist. A copy of such resolution of the governing body of a county, duly certified by the county clerk of such county, shall be admissible in evidence in any suit, action or pro­ceeding.

Hlstory.-§1, (28) ch. 20220, 1941.

421.29 Area of operation of regional housing authority.-

(!) The area of operation of a re­gional hou sing authority shall include all of the coun.ties. for which such regional housing au­thor~ty IS created and established except such portions of the counties which lie within the territorial boundaries of cities, as defined in the housing authorities law, as amended.

(2) The area of operation of a regional housing authority shall be increased from time to time to include one or more additional coun-

ties not already within a regional housing au­thority (except such portion or portions of such additional county or counties which lie within the territorial boundaries of any city, as de­fined) if the governing body of each of the coun­ties then inclqded in the area of operation of such regional housing authority, the commis­sioners of the regional housing authority and the governing body of each such additional county or counties each adopt a resolution de­claring that there is a need for the inclusion of such additional county or counties in the area of operation of such regional housing authority. Upon the adoption of such resolu­tions, the county housing authority created by §421.27 for each such additional county shall cease to exist except for the purpose of winding up its affairs and executing a deed to the regional housing authority as hereinafter provided; provided, however, that such resolu­tions shall not be adopted if there is a county housing authority created for any such addi­tional county which has any obligations out­standing unless first:

(a) All obligees of any such county housing authority and parties to the contracts, bonds, notes and other obligations of any such county housing authority agree with such county hous­ing authority and the regional housing authority to the substitution of such regional housing authority in lieu of such county housing authority on all such contracts, bonds, notes or other obligations, and second:

(b) The commissioners of such county hous­ing authority and the commissioners of such re­gional housing authority adopt resolutions con­senting to the transfer of all the rights, con­tracts, obligations and property, real and per­sonal, of such county housing authority to such regional housing authority as herein­after provided, and provided further, that when the above two conditions are compliea with and the area of operation of such regional hous­ing authority is increased to include such addi­tional county, as hereinabove provided, all rights, contracts, agreements, obligations and property of such county housing authority shall be in the name of and vest in such regional housing au­thority, all obligations of such county housing authority shall be the obligations of such re­gional housing authority and all rights and rem­edies of any person against such county housing authority may be asserted, enforced and prose­cuted against such regional housing authority to the same extent as they may have been as­serted, enforced and prosecuted against such county housing authority.

(3) When any real property o:i' a county housing authority vests in a regiona l housing authority as provided above, the county housing authority shall execute a deed of such property to the regional housing authority which there­upon shall file such deed with the recorder of deeds of the county where such real property is, provided that nothing containP.cl in this sentence shall affect the vesting of property in the re­gional housing authority as provided above.

(4) The governing body of each of the coun-

2073

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

ties in the regional housing authority, the com­missioners of the regional housing authority and the governing body of each such additional county or counties shall by resolution declare that there is a need for the addition of such county or counties to the regional housing au­thority, if:

(a) The governing body of each of such additional county or counties finds that insanitary or unsafe inhabited dwelling accom­modations exist in such county or there is a shortage of safe or sanitary dwelling accommo­dations in such county available to persons of low income as rentals they can afford; and

(b) The governing body of each of the coun­ties then included in the area of operation of the regional housing authority, the commission­ers of the regional housing authority and the governing body of each such additional county or counties find that the regional housing au­thority would be a more efficient or economical administrative unit to carry out the purposes of this housing authorities law if the area of op­eration of the regional housing authority shall be increased to include such additional county or counties.

(5) In determining whether dwelling accom­modations are unsafe or insanitary under this or the preceding section, the governing body of a county shall take into consideration the safety and sanitation of the dwellings, the light and air space available to the inhabitants of such dwell­ings, the degree of overcrowding, the size and arrangement of the rooms and the extent to which conditions exist in such buildings which endanger life or property by fire or other causes.

(6) In connection with the issuance of bonds or the incurring of other obligations a regional housing authority may covenant as to limita­tions on its right to adopt resolutions relating to the increase of its area of operation.

(7) No governing body of a county shall adopt any resolution authorized by this or the preceding section unless a public hearing has first been held. The clerk of such county shall give notice of the time, place and purpose of the public hearing at least ten days prior to the day on which the hearing is to be held, in a newspaper published in such county, or if there is no newspaper published in such county, then in a newspaper published in the state and having a general circulation in such county. Upon the date fixed for such public hearing an opportunity to be heard shall be granted to all residents of such county and to all other interested persons.

Hlstory.-§1, (29) ch. 20220, 1941.

421.30 Commissioners of regional authori­ties.-

(1) When a regional housing authority has been created as provided above, the governor shall thereupon appoint one qualified elector from each county included in such regional housing authority as a commissioner of the re­gional housing authority. When the area of op­eration of a regional housing authority is in­creased to include an additional county or coun-

ties as herein provided, the governor shall there­upon appoint one qualified elector from each such additional county as a commissioner of the re­gional housing authority. If any county is ex­cluded from the area of operation of a regional housing authority, the office of the commissioner of such regional housing authority appointed as provided above for such county, shall be thereupon abolished.

(2) If the area of operation of a regional housing authority consists at any time of an even number of counties, the governor shall appoint one additional commissioner (who shall be a qualified elector from one of the counties in such area of operation) whose term of office shall be as herein provided for a commissioner of a regional housing authority, except that such term shall end at any earlier time that the area of operation of the regional housing authority shall be changed to consist of an odd number of counties.

(3) A certificate of the appointment of any commissioner of a regional housing authority shall be filed with the county clerk of the county from which the commissioner is appointed, and such certificate shall be conclusive evidence of the due and proper appointment of such commis­sioner. The commissioners of a regional housing authority shall be appointed for terms of four years, except that all vacancies shall be filled for the unexpired terms. Each commissioner shall hold office until his successor has been ap­pointed and has qualified, except as otherwise provided herein. The governor shall thereafter appoint the successor of each commissioner of a regional housing authority.

( 4) The commissioners appointed as afore­said shall constitute the regional housing author­ity, and the powers of such authority shall be vested in such commissioners in office from time to time.

(5) The commissioners of a regional housing authority shall elect a chairman from among the commissioners and shall have power to select or employ such other officers and employees as the regional housing authority may require. A majority of the commissioners of a regional housing authority shall constitute a quorum of such authority for the purpose of conducting its business and exercising its powers and for all other purposes.

Hlstory.-§1, (SO) ch. 20220, 1941; am. §2, ch. 21699, 1948.

421.31 Powers of regional housing au­thority; definitions.-Except as otherwise pro­vided herein, a regional housing authority and the commissioners thereof shall, within the area of operation of such regional housing authority, have the same functions, rights, powers, duties, privileges and immunities provided for housing authorities created for cities or counties and the commissioners of such housing authorities in the same manner as though all the provisions of law applicable to housing authorities created for cities or counties were applicable to regional housing authorities; provided that for such pur­posP.S the term "mayor" as used in the housing

2074

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

authorities law shall be construed as meaning "governor," the term "governing body" as used therein shall be construed as meaning "county commissioners," the term "city" as used therein shall be construed as meaning "county" and the term "clerk" as used therein shall be construed as meaning "county clerk" (as herein defined), unless a different meaning clearly appears from the context; and provided further that the gov­ernor may appoint any person as commissioner of a regional housing authority who is a quali­fied elector in the county from which he is ap­pointed; and provided further that any com­missioner of a regional housing authority may be removed or suspended in the same manner and for the same reason as other officers ap­pointed by the governor. A regional housing authority shall have power to select any ap­propriate corporate name.

Hlstory.-§1, (31) ch. 20220, 1941.

421.32 Rural housing projects.-County housing authorities and regional housing au­thorities are specifically empowered and au­thorized to borrow money, accept grants and exercise their other powers to provide housing for farmers of low income and domestic farm labor as defined in §514 of the federal hous­ing act of 1949. In connection with such proj­ects, any such housing authority may enter into such leases or purchase agreements, accept such conveyances and rent or sell dwellings forming part of such projects to or for farmers of low income, as such housing authority deems neces­sary in order to assure the achievement of the objectives of this law. Such leases, agreements or conveyances may include such covenants as the housing authority deems appropriate re­garding such dwellings and the tracts of land described in any such instrument, which cov­enants shall be deemed to run with the land where the housing authority deems it necessary and the parties to such instrument so stipulate. In providing housing for farmers of low in­come, county housing authorities and regional housing authorities shall not be subject to the limitations provided in §421.08 (3), and of §421.10(3). Nothing contained in this section shall be construed as limiting any other pow­ers of any housing authority. History~§1, (32) ch. 20220, 1941; §3, cb. 65-223.

421.321 Execution of mortgages.-County and regional housing authorities organized un­der this chapter are authorized to execute mortgages encumbering real property as se­curity for loans made for providing facilities for domestic farm labor pursuant to §514 of the federal housing act of 1949.

History.-§4, ch. 65-223.

421.33 Housing applications by farmers.­The owner of any farm operated, or worked upon, by farmers of low income in need of safe and sanitary housing may file an application with a housing authority created for a county or a regional housing authority requesting that it provide for a safe and sanitary dwelling or

dwellings for occupancy by such farmers of low income. Such applications shall be received and examined by housing authorities in connection with the formulation of projects or programs to provide housing for farmers of low income. Provided, however, that if it becomes necessary for an applicant under this paragraph to convey any portion of his then homestead in order to take advantages as provided herein, then in that event, the parting with title to a portion of said homestead shall not affect the remaining portion of same, but all rights that said owner may have in and to same under and by virtue of the constitution of the state or any law passed pursuant thereto, shall be deemed and held to apply to such remaining portion of said land, the title of which remains in said appli­cant; it being the intention of the legislature to permit the owner of any farm operated or worked upon by farmers of low income in need of safe and sanitary housing to take advantage of the provisions of this law without jeopardiz­ing their rights in their then homestead by rea­son of any requirement that may be necessary in order for them to receive the benefits herein provided; and no court shall ever construe that an applicant who has taken advantage of this law has in any manner, shape or form abandoned his rights in any property that is his then home­stead by virtue of such action upon his part, but it shall be held, construed and deemed that such action upon the part of any applicant here­under was not any abandonment of his then homestead, and that all rights that he then had therein shall be and remain as provided by the constitution and any law enacted pursuant thereto.

Hletory.-§1, (38), ch. 20220, 1941; am. §7, ch. 22868, 1945.

421.34 Additional definitions.-(!) "Farmers of low income," as used in

this law, shall mean persons or families who at the time of their admission to occupancy in a dwelling of a housing authority:

(a) Live under unsafe or insanitary hous­ing conditions;

(b) Derive their principal income from op­erating or working upon a farm; and

(c) Had an aggregate average annual net income for the three years preceding their ad­mission that was less than the amount deter­mined by the housing authority to be necessary, within its area of operation, to enable them, without financial assistance, to obtain decent, safe and sanitary housing without overcrowd­ing; provided, however, that this definition shall not apply to persons using facilities the construc­tion of which was financed with proceeds of loans made pursuant to §514 of the federal housing act of 1949.

(2) "Governing body," as used in this law with regard to a county, shall mean the county commissioners or other legislative body of the county.

(3) "Clerk," as used in this law with regard to a county or county authority, shall mean the

2075

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

clerk and accountant of the board of county commissioners or the officer having duties cus­tomarily imposed on such clerk.

History.-§1, (34) ch. 20220, 1941; (1) §5, ch. 65-223.

421.35 Supplemental nature of sections.­The powers conferred by § ~421.27-421.34 shall be in addition and supplemental to the powers conferred by any other law.

History .-§2, ch. 20220, 1941.

421.36 Short title.-Sections 421.27-421.35 may be cited and referred to as the "Rural Housing Authorities Law of Florida."

Hlstory.-§1, ch. 20220, 1941.

421.37 Defense housing; finding and decla­ration of necessity.-lt is hereby found and de­clared that the national defense program involves large increases in the military forces and per­sonnel of this state, a great increase in the num­ber of workers in already established manufac­turing centers and the bringing of a large num­ber of workers and their families to new centers of defense industries in the state; that there is an acute shortage of safe and sanitary dwellings available to such persons and their families in this state which impedes the national defense program; that it is imperative that action be taken immediately to assure the availability of safe and sanitary dwellings for such persons to enable the rapid expansion of national defense activities in this state and to avoid a large labor turnover in defense industries which would seri­ously hamper their production; that the provi­sions hereinafter enacted are necessary to as­sure the availability of safe and sanitary dwell­ings for persons engaged in national defense ac­tivities which otherwise would not be provided at this time; and that such provisions are for the public use and purpose of facilitating the na­tional defense program in this state.. It is fur­ther declared to be the purpose of this law to 'authorize housing authorities to do any and all things necessary or desirable to secure the finan­cial aid of the federal government, or to cooper­ate with or act as agent of the federal govern­ment, in the expeditious development and the administration of projects to assure the avail­ability when needed of safe and sanitary dwell­ings for persons engaged in national defense ac­tivities.

Hlstory.-§1, ch. 20221, 1941.

421.38 Defense housing by authorities.­(!) Any housing authority may undertake

the development and administration of projects to assure the availability of safe and sanitary dwellings for persons engaged in national de­fense activities whom the housing authority de­termines would not otherwise be able to secure safe and sanitary dwellings within the vicinity thereof, but no housing authority shall initiate the development of any such project pursuant to this law after the termination of the existing war by the signing of a definitive treaty of peace, or by the proclamation of the President of the United States that hostilities have ceased or that the emergency in justification of extra-

ordinary wartime powers no longer exists, which­ever shall first occur.

(2) In the ownership, development or admin­istration of such projects, a housing authority shall have all the rights, powers, privileges and immunities that such authority has under any provision of law relating to the ownership, de­velopment or administration of slum clearance and housing projects for persons of low income, in the same manner as though all the provisions of law applicable to slum clearance and housing projects for persons of low income were appli­cable to projects developed or administered to assure the availability of safe and sanitary dwell­ings for persons engaged in national defense ac­tivities as provided in this law, and housing projects developed or administered hereunder shall constitute "housing projects" under the housing authorities law, as that term is used therein; provided, that during the period (herein called the "national defense period") that a housing authority finds (which finding shall be conclusive in any suit, action or proceeding) that within its area of operation (as defined in the housing authorities law), or any part there­of, there is an acute shortage of safe and sani­tary dwellings which impedes the national de­fense activities, any project developed or admin­istered by such housing authority (or by any housing a,uthority cooperating with it) in such area pursuant to this law, with the financial aid of the federal government (or as agents for the federal government as hereinafter provided), shall not be subject to the limitations provided in §421.10 and the second sentence of §421.09; and provided, further, that during the national defense period, a housing authority may make payments in such amounts as it finds necessary or desirable for any services, facilities, works, privpeges or improvements furnished for or in connection with any such projects. After the na­tional defense period, any such projects owned and administered by a housing authority shall be administered for the purposes and in accord­ance with the provisions of the housing author­ities law.

Hlstory.-§2, ch. 20221, 1941; am. §1, ch. 21697, 1943.

421.39 Acting for federal government on defense housing. - A housing authority may exercise any or all of its powers for the purpose of cooperating with, or acting as 2.gent for, the federal government in the development or ad­ministration of projects by the federal govern­ment to assure the availability of safe and sani­ta ry dwellings for persons engaged in national defense activities and may undertake the de­velopment or administration of any such project for the federal government. In order to assure the availability of safe and sanitary housing for persons engaged in national defense activi­ties, a housing authority may sell (in whole or in part) to the federal government any housing project developed for persons of low income but not yet occupied by such persons; such sale shall be at such price and upon such terms as the housing authority shall prescribe and shall in-

2076

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

elude provision for the satisfaction of all debts and. liabilities of the authority relating to such proJect.

History ~§3, ch. 20221, 1941.

421.40 Cooperation by public bodies on de­fense. housing.-~ny state public body, as de­fined m the Housmg Cooperation Law shall have the ~arne right.s. and powers to cooperate with housmg .authonties, or with the federal govern­~ent, .with respect to the development or admin­Istration of projects to assure the availability of safe. and s.anitary dwellings for persons en­gaged m natwnal defense activities that such state public body has pursuant to such law for th.e purp~se of assisting the development or ad­mimstratwn of slum clearance or housing proj­ects for persons of low income.

Hlstory.-§4, ch. 20221, 1941.

421.41 Bonds for defense housing legal in­vestments.-Bonds or other obligations issued by a housing authority for a project developed or administered pursuant to this law shall be security for public deposits and legal invest­ments to the same extent and for the same per­sons, institutions, associations, corporations ~odies and officers as bonds or other obligation~ Issued pursuant to the housing authorities law for the development of a slum clearance or hous­ing project for persons of low income.

Hlstory.-§5, ch. 20221, 1941.

421.42 Defense housing contracts validated. -All bonds, notes, contracts, agreements and obligations of housing authorities heretofore is­sued or entered into relating to financing or undertaking (including cooperating with or act­ing as agent of the federal government in) the development or administration of any project to as~ure the availability of safe and sanitary dwellmgs for persons engaged in national de­fense activities, are hereby validated and de­clared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.

History .-§6, ch. 20221, 1941.

421.43 Removal of restrictions for defense housing.-This law shall constitute an inde­pendent authorization for a housing authority to undertake the development or administration of projects to assure the availability of safe and sanitary dwellings for persons engaged in na­tional defense activities as provided in this law and for a housing authority to cooperate with, or act as agent for, the federal government in the development or administration of similar projects J:>y the fe~er~l government. In acting under this authorization, a housing authority shall not be subject to any limitations restric­tions or reQuirements of other laws' (except those relating to land acquisition) prescribing the procedure or action to be taken in the de­yelop~ent or administration of any public works, mcludmg slum clearance and housing projects for persons of low income or undertakings or projects of municipal or public corporations or political subdivisions or agencies of the state.

A housing authority may do any and all things necessary or desirable to cooperate with, or act as agent for, the federal government, or to se­cure financial aid, in the expeditious develop­ment or in the administration of projects to assur.e the availability of safe and sanitary dwellmgs for persons engaged in national defense activities and to effectuate the purposes of this law.

Hlstory.-§7, ch. 20221, 1941.

421.44 Defense housing; definitions.-(!) "Persons engaged in national defense

activities," as used in this law, shall include: Enlisted men in the military and naval services of the United States and employees of the war and navy departments assigned to duty at mili­tary or naval reservations, posts or bases; and workers engaged or to be engaged in any indus­tries connected with and essential to the national defense program; and shall include the families of the aforesaid persons who are living with them.

(2) "Persons of low income," as used in this law, shall mean persons or families who lack tlie amount of income which is necessary (as determined by the housing authority undertak­ing the housing project) to enable them, with­out financial assistance, to live in decent, safe and sanitary dwellings, without overcrowding.

(3) "Development," as used in this law, shall mean any and all undertakings necessary for the planning, land acquisition, demolition, financing, construction or equipment in connection with a project (including the negotiaticn or award of contracts therefor), and shall include the acqui­sition of any project (in whole or in part) from the federal government.

( 4) "Administration," as used in this law, shall mean any and all undertakings necessary for management, operation or maintenance, in connection with any project, and shall include the leasing of any project (in whole or in part) from the federal government.

(5) "Federal government," as used in this law, shall mean the United States or any agency or instrumentality, corporate or otherwise, of the United States.

(6) The development of a project shall be deemed to be "initiated," within the meaning of this law, if a housing authority has issued any bonds, notes or other obligations with re­spect to financing the development of such proj­ect of the authority, or has contracted with the federal government with respect to the exercise of powers hereunder in the development of such project of the federal government for which an allocation of funds has been made prior to the termination of the existing war by the signing of a definitive treaty of peace, or by the proclama­tion of the President of the United States that hostilities have ceased or that the emergency in justification of extraordinary wartime powers no longer exists, whichever shall first occur.

(7) "Housing authority," as used in this law, shall mean any housing authority estab-

2077

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

Iished or hereafter established pursuant to the housing authorities law.

Hlsto17.-§8, ch. 20221, 1941; am. §2, ch. 21697, 1943. §7, ch. 22858, 1945; (6) by §24, ch. 57-1.

421.45 Provisions supplemental.-The pow­ers conferred by §§421.37-421.44 shall be in addition and supplemental to the powers con­ferred by any other law, and nothing contained therein shall be construed as limiting any other powers of a housing authority.

Hl&to!7.-§9, ch. 20221, 1941.

421.46 Organization and establishment of housing authorities validated.-The establish­ment and organization of housing authorities under the provisions of the Housing Authorities Law of this state together with all proceedings, acts and things heretofore undertaken, performed or done with reference thereto, are hereby vali­dated, ratified, confirmed, approved and declared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.

History .-§1, ch. 20222, 194L

421.4 7 Contracts and undertakings of hous­ing authorities validated.-All contracts, agree­ments, obligations, and undertakings of such housing authorities heretofore entered into re­lating to financing or aiding in the development, construction, maintenance or operation of any housing project or projects or to obtaining aid therefor from the United States Housing Author­ity, including (without limiting the generality of the foregoing) loan and annual contributions contracts and leases with the United States Housing Authority, agreements with municipal­ities or other public bodies (including those which are pledged or authorized to be pledged for the protection of the holders of any notes or bonds issued by such housing authorities or which are otherwise made a part of the contract with such holders of notes or bonds) relating to cooperation and contributions in aid of housing projects, payments (if any) in lieu of taxes, fur­nishing of municipal services and facilities, and the elimination of unsafe and insanitary dwell­ings, and contracts for the construction of hous­ing projects, together with all proceedings, acts and things heretofore undertaken, performed or done with reference thereto, are hereby validated, ratified, confirmed, approved and declared legal in all respects, notwithstanding any defect or irregularity therein or any want of statutory authority.

Hlstory.-§2, ch. 20222. 1941.

421.48 Notes and bonds of housing authori­ties validated. - All proceedings, laws and things heretofore undertaken, performed or done in or for the authorization, issuance, execution and delivery of notes and bonds by housing au­thorities for the purpose of financing or aiding in the development or construction of a housing project or projects, and all notes and bonds here­tofore issued by housing authorities are hereby validated, ratified, confirmed, approved and de­clared legal in all respects, notwithstanding any

defect or irregularity therein or any want of statutory authority.

Hlstory.-§3, ch. 20222, 194L

421.49 Area of operation of housing authori­ties for defense housing.-In the development or the administration of projects, under §§421.37-421.48, to assure the availability of safe and sanitary dwellings for persons engaged in national defense activities or in otherwise carrying out the purposes of such law, or in the administration of such projects in accordance with the provisions ·of the housing authorities law, a housing authority of a city may exercise its powers within the territorial boundaries of said city and an area within ten miles from said boundaries, excluding the area within the ter­ritorial boundaries of any other city which has heretofore established a housing authority.

Hlstory.-§1, ch. 20249, 1941.

421.50 Decreasing area of operation of re­gional authority.-

(!) The area of operation of a regional housing authority shall be decreased from time to time to exclude one or more counties from such area if the governing body of each of the counties in such area and the commissioners of the regional housing authority each adopt a res­olution declaring that there is a need for ex­cluding such county or counties from such area· provided, that no action may be taken pursuant to this section if the regional housing authority has outstanding any bonds, debentures or notes unless first, all holders of such bonds, debentures or notes consent in writing to such action; and provided, further, that if such action decreases the ar~a of operation of the regional housing authority to only one county, such authority shall thereupon constitute and become a housing authority for such county, in the same manner as though such authority were created by and au­thorized to transact business and exercise its powers pursuant to §421.04 or §421.27, and the commissioners of such authority shall be there­upon appointed as provided for the appointment of commissioners of a housing authority cre­ated for a county. The governing body of each of the counties in the area of opera­tion of the regional housing authority and the commissioners of the regional housing au­thority shall adopt a resolution declaring that there is a need for excluding a county or counties from such area only if each such governing body and the commissioners of the re­gional housing authority find that (because of facts arising or determined subsequent to the time when such area first included the county or counties to be excluded) the regional housing authority would be a more efficient or economi­cal administrative unit if such county or coun­ties were excluded from such area.

(2) The governing body of a county shall not adopt any resolution authorized by this sec­tion unless a public hearing has first been held in accordance with the provisions of the hous­ing authorities law.

(3) A certificate of the appointment of any

2078

Ch. 421 HOUSING AUTHORITIES LAW Ch. 421

commiSSioner of a regional housing authority shall be filed with the county clerk of the coun­ty from which the commissioner is appointed, and such certificate shall be conclusive evidence of the due and proper appointment of such corn­missioner. The commissioners of a regional hous­ing authority shall be appointed for terms of four years, except that all vacancies shall be filled for the unexpired terms. Each commissioner shall hold office until his successor has been appointed and has qualified, except as otherwise provided herein. The governor shall thereafter appoint the successor of each commissioner of a regional housing authority.

( 4) The commissioners appointed as afore­said shall constitute the regional housing author­ity, and the powers of such authority shall be vested in such commissioners in office from time to time.

( 5) The commissioners of a regional housing authority shall elect a chairman from among the commissioners and shall have power to select or employ such other officers and employees as the regional housing authority may require. A majority of the commissioners of a regional hous­ing authority shall constitute a quorum of such authority for the purpose of conducting its bus­iness and exercising its powers and for all other purposes.

Hlstory.-§3. ch. 21699, 1943.

421.51 Authority for county excluded from regional authority.-At any time after a coun­ty or counties is excluded from the area of opera­tion of a regional housing authority as provided above, the governing body of any such county may adopt a resolution declaring that there is a need for a housing authority in the county, if the governing body shall declare and find such need according to the provisions of the housing authorities law. Thereupon a public body cor­porate and politic, to be known as the housing authority of the county, shall exist for such county and may transact business and exercise its powers in the same manner as though cre­ated by the housing authorities law. Nothing contained herein shall be construed as preventing such county from thereafter being included with­in the area of operation of a regional housing authority as provided in §421.28 ·or §421.29.

History .-§4, ch. 21699, 1943.

42i.52 Authorities; creation, obligations, etc., validated.-

( I) The creation, establishment and organi­zation of housing authorities under the provi­sions of chapter 17981, laws of 1937, as amended, or chapter 20220, laws of 1941 (§§421.01-421.36), together with all proceedings, acts and things heretofore undertaken or done with reference thereto, are hereby validated and declared legal in all respects.

(2) All agreements and undertakings of such housing authorities heretofore entered into, relating to financing, or aiding in the develop­ment or operation of any housing projects, including (without limiting the generality of the foregoing) loan and annual contributions con­tracts, agency contracts, and leases, agreements with municipalities or other public bodies (in­cluding those which are pledged or authorized to be pledged for the protection of the holders of any notes or debentures issued by such housing authorities or which are otherwise made a part of the contract with such holders of notes or debentures) relating to cooperation in aid of housing projects, payments to public bodies in the state, furnishing of municipal services and facilities and the elimination of unsafe and in­sanitary dwellings, and contracts for the con­struction of housing projects, together with all proceedings, acts and things heretofore under­taken or done with reference thereto, are hereby validated and declared legal in all respects.

(3) All proceedings, acts and things hereto­fore undertaken or done in or for the authoriza­tion, issuance, execution and delivery of notes and debentures by housing authorities for the purpose of financing or aiding in the development or construction of a housing project or projects, and all notes and debentures heretofore issued by housing authorities are hereby validated and declared legal in all respects.

Hlstory.-§§1-3, ch. 21698, 1948.

421.53 Housing authority, Pinellas county; lirnitation.-Any housing authority created within Pinellas county by §421.04, shall con­struct or contract to construct any housing project only upon the approval by a majority of the freeholders voting in a referendum election to be held in the area for which the housing authority is created. Such election shall be called by the governing body of such area.

History.-§1, ch. 63-557.

2079

Ch. 422 HOUSING COOPERATION LAW Ch. 422

CHAPTER 422

HOUSING COOPERATION LAW

422.01 Short title. 422.02 Finding and declaration of necessity. 422.03 Definitions. 422.04 Cooperation in undertaking housing

projects.

422.01 Short title.-This chapter may be referred to as the "Housing Cooperation Law."

Hlstory.-§1, ch. 17982, 1937; CGL 1940 Supp. 7100(3-oo).

422.02 Finding and declaration of necessity. -It has been found and declared in the hous­ing authorities law that there exist in the state unsafe and insanitary housing conditions and a shortage of safe and sanitary dwelling ac­commodations for persons of low income; that these conditions necessitate excessive and dis­proportionate expenditures of public funds for crime prevention and punishment, public health, welfare and safety, fire and accident protection, and other public services and facili­ties; a~d that the public interest requires the remedymg of these conditions. It is hereby found and declared that the assistance herein provided for the remedying of the conditions set forth in the housing authorities law con­stit~tes a public use and purpose and an es­sential governmental function for which public moneys may be spent and other aid given; that it is a proper public purpose for any state pub­lic body to aid any housing authority operating within its boundaries or jurisdiction or any housing project located therein, as the state public body derives immediate benefits and ad­vantages from sue~ .an authority or project; and that the provisions hereinafter enacted are necessary in the public interest.

Hlstory.-§2, ch. 17982, 1937; CGL 1940 Supp. 7100(3-pp).

422.03 Definitions. - The following terms, whenever used or referred to in this chapter shall have the following respective meanings unless a different meaning clearly appear~ from the context:

(1) "Housing authority" shall mean any housing authority created pursuant to the hous­ing authorities law of this state.

(2) "Housing project" shall mean any work or undertaking of a housing authority pur­S!Ia?t to the housing authorities law or any similar work or undertaking of the federal government.

(3) "State publi~ ?ody" shall m~an any city, t<;>wn, c.ou~ty, mumcipal corporatiOn, commis­SIOn, district, authonty, other subdivision or public body of the state.

( 4) "Governing body" shall mean the coun­cil, commission, board of supervisors or trus­tees, or other board or body having charge of the fiscal affairs of the state public body.

(5) "Federal government" shall mean the United States, the Federal Emergency Admin­istr.ation of Pub!ic Works, or any other agency or mstrumentahty, corporate or otherwise of the United States. '

mstor:r.-§3, ch. 17982, 1937; COL 1940 Bupp. 7100(3-qq). cf.-§1.01 tor general detlnltlona.

422.05 Contracts for payments for services. 422.06 Advances to housing authority. 422.07 Procedure for exercising powers. 422.08 Supplemental nature of chapter.

4~2.04 Cooperation in undertaking housing proJects.-

(1) . For. the purpos~ of aiding and co­operat.mg m the P.lanmng, undertaking, con­structlo? ~r operatiOn of housing projects lo­cated Withm the area in which it is authorized to act, any state public body may upon such terms, with or without consideration as it may determine: . ' . (a) Dedicate, sell, convey or lease any of Its property to a housing authority or the fed· eral government;

(b) Cause parks, playgrounds, recreational community, educational, water, sewer or drain: age facilities or any other works, which it is otherwise empowered to undertake to be fur­nished adjacent to or in connection' with hous­ing projects;

(c) Furnish, dedicate, close, pave, install, grade, regrade, plan or replan streets roads roadways, alleys, sidewalks or other' place~ which it is otherwise empowered to undertake·

(d) Plan or repl~n, zone or rezone any part of such state pubhc body; make exceptions from building regulations and ordinances· any city or town also may change its map; '

(e) Enter into agreements, (which may ex­t~n.d over any period, notwithstanding any pro­VISion or rule of law to the contrary) with a housing authority or the federal government respecting action to be taken by such state public body pursuant to any of the powers granted by this chapter;

(f) _Do any .and all things, necessary or c?nvement to ~Id and coope~ate in the plan­mug, undertakmg, constructiOn or operation of such housing projects;

(g) Purchase or legally invest in any of the debentures of a housing authority and exercise all of the rights of any holder of such debentures;

C!t) With r~spect to ~my housing project which a housmg authority has acquired or taken over £rom the federal government and which the housing authority by resolution has found and declared to have been constructed in a manner that will promote the public in­terest and afford necessary safety, sanitation and ?ther protection, no state public body shall require any changes to be made in the hous­ing project or the manner of its construction or take any other action relating to such con­struction;

(i) In connection with any public improve­ments made by a state public body in exercis­ing the powers herein granted, such state pub­lic body may incur the entire expense thereof.

(2) Any law or statute to the contrary not­withstanding, any sale, conveyance, lease or

2080

Ch. 422 HOUSING COOPERATION LAW Ch.' 422

agreement provided for in this section may be made by a state public body without ap­praisal, public notice, advertisement or public bidding.

Hlstory.-§4, ch. 17982, 1937; CGL 1940 Supp. 7100(3-rr). I

422.05 Contracts for payments for services. -In connection with any housing project lo­cated wholly or partly within the area in which it is authorized to act, any state public body may contract with a housing authority or the federal government with respect to the sum or sums (if any) which the housing authority or the federal government may agree to pay, during any year or period of years, to the state public body for the improvements, services and facilities to be furnished by it for the benefit of said housing project, but in no event shall the amount of such payments exceed the estimated cost to the state public body of the improvements, services or facilities to be so furnished; provided, however, that the absence of a contract for such payments shall in no way relieve any state public body from the duty to furnish, for the benefit of said housing project, customary improvements and such ser­vices and facilities as such state public body usually furnishes without a service fee.

Hlstory.-§5, ch. 17982, 1937; CGL 1940 Supp. 7100(3-ss).

422.06 Advances to housing authority.­When any housing authority which is created for any city becomes authorized to transact business and exercise its powers therein, the governing body of the city, shall immediately

make an estimate of the amount of money necessary for the administrative expenses and overhead of such housing authority during the first year thereafter, and shall appropriate such amount to the authority out of any moneys in such city treasury not appropriated to some other purposes. The moneys so appropriated shall be paid to the authority as a donation. Any city, town or county located in whole or in part within the area of operation of a hous­ing authority shall have the power from time to time to lend or donate money to the au­thority or to agree to take such action. The housing authority, when it has money available therefor, shall make reimbursements for all such loans made to it.

Hlstory.-§6, ch. 17982, 1937; CGL 1940 Supp. 7100(3-tt).

422.07 Procedure for exercising powers.­The exercise by a state public body of the pow­ers herein granted may be authorized by reso­lution of the governing body of such state public body adopted by a majority of the mem­bers of its governing body present at a meet­ing of said governing body, which resolution may be adopted at the meeting at which such resolution is introduced. Such a resolution Ol' resolutions shall take effect immediately and need not be laid over or published or posted:

Hlstory.-§7, ch. 17982, 1937; CGL 1940 Supp. 7100(3-uu).

422.08 Supplemental nature of chapter.­The powers conferred by this chapter shall be in addition and supplemental to the powers conferred by any other law.

Hlstory.-§8, ch. 17982, 1937; CGL 1940 Supp. 7100(3-vv).

2081

Ch. 423 TAX EXEMPTION OF HOUSING AUTHORITIES Ch. 423

CHAPTER 423

TAX EXEMPTION OF HOUSING AUTHORITIES

423.01 Finding and declaration of property of · 423.03 tax exemption for housing authori-

Housing debentures exempted from taxation.

ties. 423.02 Housing projects exempted from taxes

and assessments; payments in lieu thereof.

423.01 Finding and declaration of property of tax exemption for housing authorities.-It has been found and declared in the housing authorities law and the housing cooperation law that:

(1) There exist in the state housing conditions which constitute a menace to the health, safety, morals and welfare of the resi­dents of the state;

(2) These conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health, welfare and safety, fire and ac­cident prevention, and other public services and facilities;

(3) The public interest requires the remedy­ing of these conditions by the creation of hous­ing authorities to undertake projects for slum clearance and for providing safe and sanitary dwelling accommodations for persons who lack sufficient income to enable them to live in de­cent, safe and sanitary dwellings without over­crowding; and

( 4) Such housing projects (including all property of a housing authority used for or in connection therewith or appurtenant there­to) are exclusively for public uses and munici­pal purposes and not for profit, and are govern­mental functions of state concern. As a matter of legislative determination, it is hereby found

and declared that the property and debentures of a housing authority are of such character as may be exempt from taxation.

Hlato17.-§1, ch. 17983, 1937; CGL 1940 Supp. 7100(3-xx).

423.02 Housing projects exempted from taxes and assessments; payments in lieu there­of.-The housing projects (including all prop­erty of housing authorities used for or in connection therewith or appurtenant thereto) of housing authorities shall be exempt from all taxes and special assessments of the state or any city, town, county, or political subdivision of the state, provided, however, that in lieu of such taxes or special assessments a housing authority may agree to make payments to any city, town, county or political subdivision of the state for services, improvements or facilities furnished by such city, town, county or political subdivison for the benefit of a housing project owned by the housing authority, but iii no event shall such payments exceed the estimated cost to such city, town, county or political subdi­vision of the services, improvements or facili-· ties to be so furnished.

Hlato17.-§2, ch. 17983, 1937; CGL 1940 Supp. 7100(8-yy).

423.03 Housing debentures exempted from taxation.-The debentures of a housing au­thority, together with interest thereon and in­come therefrom, shall be exempt from all taxes.

Hlsto17.-§8, ch. 17983, 1937; CGL 1940 Supp. 7100(3-zz).

2082

Ch. 424 LIMITED DIVIDEND HOUSING COMPANIES Ch. 424

CHAPTER 424

LIMITED DIVIDEND HOUSING COMPANIES

424.01 Short title. 424.02 Finding and declaration of necessity. 424.03 Purpose, intent, and construction of

chapter. 424.04 State housing board. 424.05 Investigations by board. 424.06 Specific powers of state housing board. 424.07 Housing projects must have approval

of board. 424.08 Board to fix maximum prices; basis of

determination. 424.09 Actions by board for violations. 424.10 Incorporation; purpose; shares; ar­

ticles. 424.11 Dividends limited. 424.12 No free securities to be issued.

424.01 Short title.-This chapter shall be known as "Florida State Housing Law."

History.-§1, ch. 16028, 1933; CGL 1936 Supp. 4151(132).

424.02 Finding and declaration of necessity. -It is hereby found and declared by the legis­lature to be necessary to provide housing for families of low income and in providing for such housing, being now otherwise impossible, that provision be made by law for the invest­ment of private and public funds at low in­terest rates, acquisition at fair prices, of ade­quate parcels of land, and the construction of new housing facilities under public super­vision in accord with proper standards of sanitation and safety, at a cost which will permit the rental or sale at prices which families of low income can afford to pay, to effectuate which there are created and estab­lished the agencies and instrumentalities here­inafter prescribed which are declared to be the agencies and instrumentalities of the state for

, the purpose of attaining the ends herein re­cited, and their necessity in the public interest is hereby declared a matter of legislative de­termination.

Hlstory.-§2, ch. 16028, 1933; CGL 1936 Supp. 4151(133).

424.03 Purpose, intent, and construction of chapter.-The purpose and intention of the leg­islature in the enactment of this chapter is to provide the necessary legislation for the crea­tion of adequate facilities to make available to persons in Florida the benefits of the laws of the United States creating the Reconstruc­tion Finance Corporation and vesting it with power to make loans and advances for housing facilities and it shall be liberally construed as vesting in said "state housing board" all neces­sary authority to enable the said board to make rules and regulations for the control, super­vision, regulation and promotion of the activi­ties of housing companies in such manner as to be in accord with the requirements of the Reconstruction Finance Corporation and the laws of the United States.

Hlstory.-§3, ch. 16028, 1933; CGL 1936 Supp. 4151(134). cf.-§421.21, Federal ald.

424.13 Income debenture certificates; ex­change for stock.

424.14 Limitations on powers of housing com­panies.

424.15 Bonds and mortgages of housing com­panies.

424.16 Surplus; accumulation and disposition. 424.17 Reduction of rentals with excess earn­

ings. 424.18 Foreclosure actions; judicial sales. 424.19 Purchase of property of other limited

dividend housing corporations. 424.20 Sales under judgments against hous­

ing companies. 424.21 Fees for services of state housing

board. 424.22 Duration of corporate existence.

424.04 State housing board.-The governor of the state, comptroller, state treasurer, at­torney general, and the commissioner of agri­culture shall constitute a state board to be known as the "State Housing Board," to have and exercise power to control, regulate and supervise, in accordance with the terms and provisions of this chapter all housing companies authorized to be created, and which may come into existence under this chapter, and to secure the construction of new housing facilities under public supervision, in accord with proper standards of sanitation and safety, at a cost which will permit the rental or sale of such housing facilities, at prices which families of low income can afford to pay.

Hlstory.-§4, ch. 16028, 1933; CGL 1936 Supp. 4151(135).

424.05 Investigations by board.-The board shall have power to investigate into the affairs of limited dividend housing companies, incor­porated under this chapter, and into the deal­ings, transactions or relationships of such com­panies with other persons. Any of the investi­gations provided for in this chapter may be conducted by the board or by a committee to be appointed by the board consisting of one or more members of the board. Each member of the board or a committee thereof may ad­minister oaths, take affidavits and make per­sonal inspections of all places to which their duties relate. The board or a committee there­of may subpoena and require the attendance of witnesses and the production of books and papers relating to the investigations and in­quiries authorized in this chapter, and to examine them in relation to any matter it has power to investigate, and issue commissions for the examination of witnesses who are out of the state or are unable to attend before the board or excused from attendance.

Hlstory.-§5, ch. 16028, 1933; CGL 1936 Supp. 4161(186).

424.06 Specific powers of state housing board.-In pursuance of its power and authori­ty to supervise and regulate the operations of limited dividend housing companies incor­porated under this chapter the board may:

2083

Ch. 424 LIMITED DIVIDEND HOUSING COMPANIES Ch. 424

(1) Order any such corporation to make, at its expense, such repa\rs and improvements as will preserve or promote the health and safety of the occupants of buildings and struc­tures owned or operated by such corporations;

(2) Order all such corporations to do such acts as may be necessary to comply with the provisions of the law, the rules and regulations adopted by the board or by the terms of any project approved by the board, or to refrain from doing any acts in violation thereof;

(3) Examine all such corporations and keep informed as to their general condition, their capitalization and the manner in which their property is constructed, leased, operated or managed;

( 4) Either through its members or agents duly authorized by it, enter in or upon and inspect the property, equipment, buildings, plants, offices, apparatus and devices of any such corporation, examine all books, contracts, records, documents and papers of any such corporation and by subpoena duces tecum com­pel the production thereof;

(5) In its discretion prescribe uniform methods and forms of keeping accounts, rec­ords and books to be observed by such com-

basis of the actual final cost of the project so as to secure, together with all other income of the corporation, a sufficient income to meet all necessary payments to be made by said cor­porations, as hereinafter prescribed, and such rental or purchase price shall be subject to revi­sion by the board from time to time. The pay­ments to be made by such corporations shall be:

(1) All fixed charges, and all operating main­tenance charges and expenses which shall in­clude taxes, assessments, insurance, amortiza­tion charges in amounts approved by the board to amortize the mortgage indebtedness in whole or in part, depreciation charges if, when and to the extent deemed necessary by the board; reserves, sinking funds and corporate expenses essential to operation and management of the project in amounts approved by the board.

(2) A dividend not exceeding the maximum fixed by this chapter upon the stock of th& corporation allotted to the project by the board.

(3) Where feasible in the discretion of the board, a sinking fund in an amount to be fixed by the board for the gradual retirement of stock, and income debentures of the corpora­tion to the extent permitted by this chapter.

Hlstory.-§7, ch. 16028, 1933; CGL 1936 Supp. 4151(139).

panies and to prescribe by order accounts in 424.09 Actions by board for violations.-which particular outlays and receipts shall be (1) Whenever the board shall be of the entered, charged or credited; opinion that any such limited dividend housing

(6) Require every such corporation to file company is failing or omitting, or about to fail with the board an annual report setting forth or omit to do anything required of it by law such information as the board may require or by order of the board and is doing or about verified by the oath of the president and gen- to do anything, or permitting anything or about eral manager or receiver if any thereof or by to permit anything to be done, contrary to or the person required to file the same. Such re- in violation of law of or of any order of the port shall be in the form, cover the period and board, or which is improvident or prejudicial to be filed at the time prescribed by the board. the interests of the public, the lienholders or The board may further require specific answers the stockholders, it may commence an action to questions upon which the board may desire or proceeding in the court of chancery of the information and may also require such corpora- county in which the said company is located, tion to file periodic reports in the form cover- in the name of the board for the purpose of ing the period and at the time prescribed by having such violations or threatened violations the board; stopped and prevented by mandatory injunc-

(7) From time to time make, amend and tion. The board shall begin such action or repeal rules and regulations for carrying into proceeding by a petition and complaint to the effect the provisions of this chapter. said court of chancery, alleging the violation

Hlstory.-§6, ch. 16028, 1933; CGL 1936 Supp. 4151(137). complained of and praying for appropriate re­lief by way of mandatory injunction. It shall

424.07 Housing projects must have approval thereupon be the duty of the court to specify of board.-N o housing project proposed by a the time, not exceeding twenty days after serv­limited dividend housing corporation incor- ice of a copy of the petition and complaint, porated under this chapter shall be undertaken within which the corporation complained of and no building or other construction shall be must answer the petition and complaint. placed under contract or started without the approval of the board. No housing project (2) In case of default in answer or after shall be approved by the board unless the cor- answer the court shall immediately inquire into poration agrees to accept a designee of the the facts and circumstances in such manner as board of housing as a member of the board the court shall direct without other or formal of directors of said corporation. pleadings, and without respect to any technical

Histor,-.-§6, ch. 16028, 1933; CGL 1936 supp. 4151(188). requirements. Such other persons or corpora­tions as it shall seem to the court necessary or

424.08 Board to fix maximum prices; basis proper to join as parties in order to make its of determination.-The board shall fix the max- order or judgment effective, may be joined as imum rental or purchase price to be charged parties. The final judgment in any such action for the housing accommodations furnished by or proceeding shall either dismiss the action such corporation. Such maximum rental or or proceeding or direct that a mandatory in­purchase price shall be determined upon the junction be issued as prayed for in the petition

2084

Ch. 424 LIMITED DIVIDEND HOUSING COMPANIES Ch. 424

and complaint or in such modified or other form as the court may determine will afford appropriate relief.

History.-§8, ch. 16028, 1933; CGL 1936 Supp. 4151(140).

424.10 Incorporation; purpose; shares; articles.-Any number of natural persons not less than three, a majority of whom are citizens of the United States, may become a corporation by subscribing, acknowledging and filing in the office of the secretary of state, articles of incorporation, hereinafter called "articles," setting forth the information required by §608.03, except as herein modified or changed.

(I) The purpose for which a limited divi­dend housing company is to be formed shall be as follows: To acquire, construct, main­tain and operate housing projects when au­thorized by and subject to the supervision of the board of housing.

(2) The shares of which the capital shall consist shall have a par value.

(3) Articles of incorporation shall contain a declaration that the corporation has been organized to serve a public purpose and that it shall remain at all times subject to the super­vision and control of the board or of other appropriate state authority; that all real estate acquired by it and all structures erected by it, shall be deemed to be acquired for the purpose of promoting the public health and safety and subject to the provisions of the state housing law and that the stockholders of this corpora­tion shall be deemed, when they subscribe to and receive the stock thereof, to have agreed that they shall at no time receive or accept from the company, in repayment of their in­vestment in its stock, any sums in excess of the par value of the stock together with cumula­tive dividends at the rate of six per cent per annum, and that any surplus in excess of such amount if said company shall be dissolved, shall revert to the state.

History.-§9, ch. 16028, 1933; CGL 1936 Supp. 4151(141).

424.11 Dividends limited.-N o stockholder in any company formed hereunder shall re­ceive any dividend, or other distribution based on stock ownership, in any one year in excess of six per cent per annum except that when in any preceding year dividends in the amount prescribed in the articles of incorporation shall not have been paid on the said stock, the stock­holders may be paid such deficiency without interest out of any surplus earned in any suc­ceeding years.

History.-§10, ch. 16028, 1933; CGL 1936 Supp. 4151(142).

424.12 No free securities to be issued.-No limited dividend housing company incorporated under this chapter shall issue stock, bonds or income debentures, except for money, services or property actually received for the use and lawful purpose of the corporation. No stock, bonds or income debentures shall be issued for property or services except upon a valuation approved by the board of housing and such valuation shall be used in computing actual or estimated cost.

Hiatory.-§11, ch. 16028, 1933; CGL 1936 Supp. 4151(143).

424.13 Income debenture certificates; ex­change for stock.-The articles of incorpora­tion may authorize the issuance of income debenture certificates bearing no greater in­terest than six per cent per annum. After the incorporation of a limited dividend housing company, the directors thereof may, with the consent of two-thirds of the holders of any preferred stock that may be issued and out­standing, offer to the stockholders of the com­pany the privilege of exchanging their prefer­red and common stock in such quantities and at such times as may be approved by the board of housing for such income debenture certifi­cates, whose face value shall not exceed the par value of the stock exchanged therefor.

Hlstory.-§12, ch. 16028, 1933; CGL 1936 Supp. 4151(144).

424.14 Limitations on powers of housing companies.-No limited dividend housing com­pany incorporated under this chapter shall:

(1) Acquire any real property or interest therein unless it shall first have obtained from the board a certificate that such acquisition is necessary or convenient for the public pur­pose defined in this chapter.

(2) Sell, transfer, assign or lease any real property without first having obtained the con­sent of the board, provided, however, that leases conforming to the regulations and rules of the board and for actual occupancy by the lessees may be made without the consent of the board. Any conveyance, incumbrance, lease or sub­lease made in violation of the provisions of this section and any transfer or assignment thereof shall be void.

(3) Pay interest returns on its mortgag-3 indebtedness and its income debenture certifi­cates at a higher rate than six per cent per annum.

( 4) Issue its stock, debentures and bonds covering any project undertaken by it in an amount greater in the aggregate than the total actual final cost of such project, including th43 lands, improvements, charges for financing and supervision approved by the board and interest and other carrying charges during construc­tion.

(5) Mortgage any real property without first having obtained the consent of the board.

(6) Issue any securities or evidences of indebtedness without first having obtained the approval of the board.

(7) Use any building erected or acquired by it for other than housing purposes, except that when permitted by law the story of the building above the cellar or basement and the space below such story may be used for stores, commercial, cooperative or community pur­poses, and when permitted by law the roof may be used for cooperative or community purposes.

(8) Charge or accept any rental, purchase price or other charge in excess of the amounts prescribed by the board.

(9) Enter into contracts for the construc­tion of housing projects, or for the payments of salaries to officers or employees except sub­ject to the inspection and revision of the board

2085

Ch. 424 LIMITED DIVIDEND HOUSING COMPANIES Ch. 424

under such regulations as the board from time to time may prescribe.

(10) Voluntarily dissolve without first hav­ing obtained the consent of the board.

(11) Make any guaranty without approval of the board.

Hlstory.-§13, ch. 16028, 1933; CGL 1936 Supp. 4151(145), cf.-ch. 608 Corporation law.

424.15 Bonds and mortgages of housing companies.-Any company formed under this chapter may, subject to the approval of the board, borrow funds and secure the repayment thereof by bonds and mortgages or by an issue of bonds under trust indenture. The bonds so issued and secured and the mortgage or trust indentures relating thereto, may cre­ate a first or senior lien and a second or junior lien upon the real property embraced in any project. Such bonds and mortgages may con­tain such other clauses and provisions as shall be approved by the board, including the right to assignment of rents and entry into the pos­session in case of default; but the operation of the housing projects in the event of such entry by mortgagee or receiver shall be subject to the regulations of the board under this chapter. Provisions for the amortization of the bonded indebtedness of companies formed under this chapter shall be subject to the approval of the board.

Hlstory.-§14, ch. 16028, 1933; CGL 1936 Supp. 4151(146).

424.16 Surplus; accumulation and disposi­tion.-The amount of net earnings transferable to surplus in any year after making or provid­ing for the payments specified in subsections (1), (2) and (3) of §424.08 shall be subject to the approval of the board. The amount of such surplus shall not exceed fifteen per cent of the outstanding capital stock and income debentures of the corporation, but the surplus so limited shall not be deemed to include any increase in assets due to the reduction of mortgage or amortization or similar payments. On dissolution of any limited dividend housing company, the stockholders and income deben­ture certificate holders shall in no event re­ceive more than the par value of their stock and debentures plus accumulated, accrued and unpaid dividends or interest, less any payments or distributions theretofore made other than by dividends provided in §424 .. 11, .and any re­maining surplus or other undistributed earn­ings shall be paid into the general fund of the state or shall be disposed of in such other man~er as the board may direct and the then governor may approve.

History.-§15, ch. 16028, 1933; CGL 1936 Supp. 4151(147).

424.17 Reduction of rentals with excess earnings.-If in any calendar or fiscal year the gross receipts of any company formed here­under should exceed the payments or charges specified in §424.08, the sums necessary to pay dividends interest accrued or unpaid on any stock or iiicome debentures, and the authorized transfer to surplus, the balance shall, unless the board of directors with the approval of the board of housing shall deem such balance

too small for the purposes, be applied to the reduction of rentals.

Hlstory.-§16, ch. 16028, 1933; CGL 1936 Supp. 4151(148).

424.18 Foreclosure actions; judicial sales.­(1) In any foreclosure action the board shall

be made a party defendant; and such board shall take all steps in such action necessary to protect the interest of the public therein, and no costs shall be awarded against the board. Foreclosure shall not be decreed unless the court to whicl). application therefor is made shall be satisfied that the interests of the lien­holder or holders cannot be adequately secured or safeguarded except by the sale of the prop­erty. In any such proceeding, the court may make an order increasing the rental to be charged for the housing accommodations in the project involved in such foreclosure, or appoint a receiver of the property or grant such other and further relief as may be reasonable and proper. In the event of a foreclosure sale or other judicial sale, the property shall, except as provided in the next succeeding paragraph of this section, be sold to a limited dividend housing corporation organized under this chap­ter, provided such corporation shall bid and pay a price for the property sufficient to pay court costs and all liens on the property with interest. Otherwise the property shall be sold free of aU restrictions imposed by this chai>ter.

(2) Notwithstanding the foregoing provi­sion of this section, wherever it shall appear that a corporation, subject to the supervision either of the state insurance department or state banking department, or the federal gov­ernment or any agency or department of the federal government, shall have loaned on a mortgage which is a lien upon any such proper­ty, such corporation shall have all the remedies available to a mortgagee under the laws of the state, free from any restrictions contained in this section, except that the board shall be made a party defendant and that such board shall take all steps necessary to protect the interest of the public and no costs shall be awarded against it.

History.-§17, ch. 16028, 1933; CGL 1936 Supp. 4161(149).

424.19 Purchase of property of other limit­ed dividend housing corporations.-Before any limited dividend housing corporation incor­porated under this chapter shall purchase the property of any other limited dividend housing corporation, it shall file an application with the board in the manner hereinbefore provided as for a new project and shall obtain the con­sent of the board to the purchase and agree to be bound by the provisions of this chapter, and the board shall not give its consent unless it is shown to the satisfaction of the board that the project is one that can be successfully operated according to the provisions of this chapter.

Hlstory.-§18, ch. 16028, 1933; CGL 1936 Supp. 4151(160).

424.20 Sales under judgments against hous­ing companies.-In the event of a judgment against a limited dividend housing corporation in any action not pertaining to the collection

2086

Ch. 424 LIMITED DIVIDEND HOUSING COMPANIES Ch. 424

of a mortage indebtedness, there shall be no sale of any of the real property of such cor­poration except upon sixty days' written notice to the board. Upon receipt of such notice the board shall take such steps as in its judgment may be necessary to protect the rights of aD parties.

History.-§19, ch. 16028. 1933; CGL 1936 Supp. 4151(151).

424.21 Fees for services of state housing board.-The board may charge and collect from a limited dividend housing corporation, incor­porated under this chapter, reasonable fees in accordance with rates to be established by the rules of the board for the examination of plans and specifications and the supervision of con­struction in an amount not to exceed one-half of one per cent of the cost of the project; for the holding of a public hearing upon applica­tion of a housing corporation an amount suf­ficient to meet the reasonable cost of advertis­ing the notice thereof and of the transcript of testimony taken thereat; for any examination or investigation made upon application of a housing corporation and for any act done by

the board, or any of its employees, in per­formance of their duties under this chapter an amount reasonably calculated to meet the ex­pense of the board incurred in connection there­with. In no event shall any part of the ex­penses of the board ever be paid out of the state treasury. The board may authorize a housing corporation to include such fees as part of the cost of a project, or as part of the charges specified in §424.08 pursuant to rules to be established by the board.

Hiatory.-§20, ch. 16028, 1933; CGL 1936 Supp. 4151(152).

424.22 Duration of corporate existence.­The corporate existence of any corporation au­thorized hereunder shall not extend beyond twenty-five years from the date of incorpora­tion, and promptly upon such termination the corporation shall be liquidated and its assets distributed as provided herein, unless the in­corporation board, by approval of the state board of housing, should grant an extension for an additional period of time.

Hlstor;or.-§22, ch. 16028, 1983; CGL 1986 Supp. 4151(154).

2087

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

CHAPTER 425

RURAL ELECTRIC COOPERATIVE LAW

425.01 425.02 425.03 425.04 425.05 425.06 425.07 425.08 425.09 425.10 425.11 425.12 425.13

Short title. Purpose. Definitions. Powers. Name. Incorporators. Articles of incorporation. By-laws. Members. Board of trustees. Voting districts. Officers. Amendment of articles of incorpora­

tion. 425.14 Consolidation. 425.15 Merger.

425.01 Short title.-This chapter may be cited as the "Rural Electric Cooperative Law."

Hlstory.-§1, ch. 19138, 1939; CGL 1940 Supp. 6494(43).

425.02 Purpose. - Cooperative, non-profit, membership corporations may be organized under this chapter for the purpose of supply­ing electric energy and promoting and extend­ing the use thereof in rural areas. Corpora­tions organized under this chapter and cor­porations which become subject to this chapter in the manner hereinafter provided are here­inafter referred to as "cooperatives."

Hlstory.-§2, ch. 19138, 1939; CGL 1940 Stipp. 6494(46). ct.-ch. 619, Nonprofit cooperative associations.

425.03 Definitions.-In this chapter, unless the context otherwise requires:

(1) "Rural area" means any area not in­cluded within the boundaries of any incor­porated or unincorporated city, town, village, or borough having a population in excess of twenty-five hundred persons;

(2) "Person" includes any natural person, firm, association, corporation, business trust, partnership, federal agency, state or political subdivision or agency thereof, or any body politic; and

(3) "Member" means each incorporator of a cooperative and each person admitted to and retaining membership therein, and shall in­clude a husband and wife admitted to joint membership.

Hlstory.-§29, ch. 19138, 1939; CGL 1940 Supp. 6494(44). cf.-§1.01 for general definitions.

425.04 Powers.-A cooperative shall have power:

(1) To sue and be sued, in its corporate name;

(2) To have perpetual existence; (3) To adopt a corporate seal and alter the

same at pleasure; ( 4) To generate, manufacture, purchase,

acquire, accumulate and transmit electric energy, and to distribute, sell, supply, and dispose of electric energy in rural areas to its members, to governmental agencies and political subdivisions, and to other persons not in excess of ten per cent of the number

425.16 425.17 425.18 425.19 425.20 425.21 425.22 425.23

425.24 425.25 425.26 425.27 425.28 425.29

Effect of consolidation or merger. Conversion of existing corporations. Initiative by members. Dissolution. Filing of articles. Refunds to members. Disposition of property. Nonliability of members for debts of

cooperative. Recordation of mortgages. Waiver of notice. Trustees, officers or members, notaries. Foreign corporations. Fees. Exemption from uniform sale of secur-

ities law.

of its members; provided, however, that no cooperative shall distribute or sell any elec­tricity, or electric energy to any person re­siding within any town, city or area which person is receiving adequate central station service or who at the time of commencing such service, or offer to serve, by a cooperative, is receiving adequate central station service from any utility agency, privately or munici­pally owned individual partnership or cor­poration;

( 5) To make loans to persons to whom elec­tric energy is or will be supplied by the co­operative for the purpose of, and otherwise to assist such person in, wiring their premises and installing therein electric and plumbing fixtures, appliances, apparatus and equipment of any and all kinds and character, and in con­nection therewith, to purchase, acquire, lease, sell, distribute, install and repair such electric and plumbing fixtures, appliances, apparatus and equipment, and to accept or otherwise ac­quire, and to sell, assign, transfer, endorse, pledge, hypothecate and otherwise dispose of notes, bonds and other evidences of indebted­ness and any and all types of security therefor;

(6) To make loans to persons to whom elec­tric energy is or will be supplied by the co­operative for the purpose of, and otherwise to assist such persons in, constructing, maintain­ing and operating electric refrigeration plants;

(7) To become a member in one or more other cooperatives or corporations or to own stock therein;

(8) To construct, purchase, take, receive, lease as lessee, or otherwise acquire, and to own, hold, use, equip, maintain, and operate, and to sell, assign, transfer, convey, exchange, lease as lessor, mortgage, pledge, or otherwise dispose of or encumber, electric transmission and distribution lines or systems, electric gen­erating plants, electric refrigeration plants, lands, buildings, structures, dams, plants and equipment, and any and all kinds and classes of real or personal property whatsoever. which shall be deemed necessary, convenient or ap- . propriate to accomplish the purpose for which the cooperative is organized;

2088

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

(9) To purchase or otherwise acquire, and to own, hold, use and exercise and to sell, assign, transfer, convey, mortgage, pledge, hypothecate, or otherwise dispose of or en­cumber, franchises, rights, privileges, licenses, rights of way and easement;

(10) To borrow money and otherwise con­tract indebtedness, and to issue notes, bonds, and other evidences of indebtedness therefor, and to secure the payment thereof by mortgage, pledge, deed of trust, or any other encumbrance upon any or all of its then owned or after­acquired real or personal property, assets, fran­chises, revenues or income;

(11) To construct, maintain, and operate electric transmission and distribution lines along, upon, under and across all public thor­oughfares, including without limitation, all roads, highways, streets, alleys, bridges and causeways, and upon, under and across all publicly owned lands, subject, however, to the requirements in respect of the use of such thoroughfares and lands that are imposed by the respective authorities having jurisdiction thereof upon corporations constructing or op­erating electric transmission and distribution lines or systems;

(12) To exercise the power of eminent do­main in the manner provided by the laws of this state for the exercise of that power by corporations constructing or operating electric transmission and distribution lines or systems;

(13) To conduct its business and exercise any or all of its powers within or without this state;

(14) To adopt, amend and repeal by-laws; and

(15) To do and perform any and all other acts and things, and to have and exercise any and all other powers which may be necessary, convenient or appropriate to accomplish the purpose for which the-cooperative is organized.

Hlstory.-§3, ch. 19138, 1939; CGL 1940 Supp. 6494(46),

425.05 Name.-The name of each coopera­tive shall include the words "electric" and "co­operative" and the abbreviation "inc."; pro­vided, however, such limitation shall not apply if, in an affidavit made by the president or vice­president of a cooperative and filed with the secretary of state, it shall appear that the cooperative desires to transact business in an­other state and is precluded therefrom by rea­son of its name. The name of a cooperative shall distinguish it from the name of any other corporation organized under the laws of, or authorized to transact business in, this state. The words "electric" and "cooperative" shall not both be used in the name of any corporation organized under the laws of, or authorized to transact business in, this state, except a cooperative or a corporation trans­acting business in this state pursuant to the provisions of this chapter.

Hlstory.-§4, ch. 19138, 1939; CGL 1940 Supp. 6494(47),

425.06 Incorporators. - Five or more nat­ural persons or two or more cooperatives, may

organize a cooperative in the manner herein­after provided.

Hlstory.-§5, ch. 19138, 1939 ; CGL 1940 Supp. 6494(48),

425.07 Articles of incorporation.-(!) The articles of incorporation of a co­

operative shall recite in the caption that they are executed pursuant to this chapter, shall be signed and acknowledged by each of the in­corporators, and shall state:

(a) The name of the cooperative; (b) The address of its principal office; (c) The names and addresses of the incor­

porators; (d) The names and addresses of the persons

who shall constitute its first board of trustees; and

(e) Any provisions not inconsistent with this chapter deemed necessary or advisable for the conduct of its business and affairs. It shall not be necessary to set forth in the arti­cles of incorporation of a ·cooperative the pur­pose for which it is organized or any of the corporate powers vested in a cooperative under this chapter.

(2) Such articles of incorporation shall be submitted to the secretary of state for filing as provided in this chapter.

Hlstory.-§6, ch. 19138, 1939; CGL 1940 Supp, 6494(49).

425.08 By-laws.-The original by-laws of a cooperative, and the first by-laws for a cor­poration after the effective date of the con­version thereof into a cooperative, pursuant to §425.17, shall be adopted by its board of trustees. Thereafter, by-laws shall be adopted, amended or repealed by its members. The by­laws shall set forth the rights and duties of members and trustees and may contain other provisions for the regulation and management of the affairs of the cooperative not incon­sistent with this chapter or with its articles of incorporation.

Hlstory.-§7, ch. 19138, 1939; CGL 1940 Supp. 6494(50).

425.09 Members.-(1) No person who is not an incorporator

shall become a member of a cooperative un­less such person shall agree to use electric energy furnished by the cooperative when such electric energy shall be available through its facilities. The by-laws of a cooperative may provide that any person, including an incor­porator, shall cease to be a member thereof if he shall fail or refuse to use electric en­ergy made available by the cooperative or if electric energy shall not be made available to such person by the cooperative within a specified time after such person shall have become a member thereof. Membership in the cooperative shall not be transferable, except as provided in the by-laws. The by-laws may prescribe additional qualifications and limita­tions in respect to membership.

(2) An annual meeting of the members shall be held at such time as shaH be provided in the by-laws.

(3) Special meeting of the members may be called by the board of trustees, by any

2089

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

three trustees, by not less than ten per cent of the members, or by the president.

( 4) Meetings of members shall be held at such place as may be provided in the by-laws. In the absence of any such provision, all meetings shall be held in the city or town in which the principal office of the cooperative is located.

( 5) Except as hereinafter otherwise pro­vided, written or printed notice stating the time and place of each meeting of members and, in the case of a special meeting, the pur­pose or purposes for which the meeting is called, shall be given to each member, either personally or by mail, not less than ten nor more than twenty-five days before the date of the meeting.

(6) Five per cent of all members, present in person, shall constitute a quorum for the transaction of business at all meetings of the members, unless the by-laws prescribe the pres­ence of a greater percentage of the members for a quorum. If less than a quorum is pres­ent at any meeting, a majority of those present in person may adjourn the meeting from time to time without further notice.

(7) Each member shall be entitled to one vote on each matter submitted to a vote at a meeting. Voting shall be in person, but, if the by-laws so provide, may also be by proxy or by mail, or both. If the by-laws provide for voting by proxy or by mail, they shall also prescribe the conditions under which proxy or mail voting shall be exercised. In any event, no person shall vote as proxy for more than three members at any meeting of the members.

Hlstory.-§8, ch. 19138, 1939; CGL 1940 Supp. 6494(51).

425.10 Board of trustees.-(!) The business and affairs of a coopera­

tive shall be managed by a board of not less than five trustees, each of whom shall be a member of the cooperative or of another co­operative which shall be a member thereof. The by-laws shall prescribe the number of trustees, their qualifications, other than those provided for in this chapter, the manner of holding meetings of the board of trustees and of the election of successors to trustees who shall resign, die, or otherwise be incapable of acting. The by-laws may also provide for the removal of trustees from office and for the election of their successors. Without ap­proval of the members, trustees shall not re­ceive any salaries for their services as trus­tees and, except in emergencies, shall not be employed by the cooperative in any capacity involving compensation. The by-laws may, however, provide that a fixed fee and expenses of attendance, if any, may be allowed to each trustee for attendance at each meeting of the board of trustees.

(2) The trustees of a cooperative named in any articles of incorporation, consolidation, merger or conversion, as the case may be, shall hold office until the next following an­nual meeting of the members or until their successors shall have been elected and quali­fied. At each annual meeting or, in case of

failure to hold the annual meeting as speci­fied in the by-laws, at a special meeting called for that purpose, the members shall elect trustees to hold office until the next following annual meeting of the members, except as hereinafter otherwise provided. Each trustee shall hold office for the term for which he is elected or until his successor shall have been elected and qualified.

(3) The by-laws may provide that, in lieu of electing the whole number of trustees an­nually, the trustees may be divided into three classes at the first or any subsequent annual meeting, each class to be as nearly equal in number as possible, with the term of office of the trustees of the first class to expire at the next succeeding annual meet­ing and the term of the second class to expire at the second succeeding annual meeting and the term of the third class to expire at the third succeeding annual meeting. At each annual meeting after such classification a number of Trustees equal to the number of the class whose term expires at the time of such meeting shall be elected to hold office until the third succeed­ing annual meeting.

( 4) A majority of the board of trustees shall constitute a quorum.

(5) If a husband and wife hold a joint membership in a cooperative, either one, but not both, may be elected a trustee.

( 6) The board of trustees may exercise all of the powers of a cooperative except such as are conferred upon the members by this chap­ter, or its articles of incorporation or by-laws.

Hlstory.-§9, ch. 19138, 1939; CGL 1940 Supp. 6494(52). Sub. § (3) am. §1, ch. 28053, 1953.

425.11 Voting districts. - Notwithstanding any other provision of this chapter, the by­laws may provide that the territory in which a cooperative supplies electric energy to its members shall be divided into two or more voting districts and that, in respect of each such voting district:

(1) A designated number of trustees shall be elected by the members residing therein; or

(2) A designated number of delegates shall be elected by such members; or

(3) Both such trustees and delegates shall be elected by such members. In any such case the bylaws shall prescribe the manner in which such voting districts and the members thereof, and the delegates and trustees, if any, elected therefrom shall func­tion and the powers of the delegates, which may include the power to elect trustees. No member at any voting district meeting and no delegate at any meeting shall vote by proxy or by mail.

Hlstory.-§10, ch. 19138, 1939; CGL 1940 Supp. 6494(53).

425.12 Officers.-The officers of a coopera­tive shall consist of a president, vice-president, secretary and treasurer, who shall be elected annually by and from the board of trustees. No person shall continue to hold any of the above offices after he shall have ceased to be a trustee. The offices of secretary and of

2090

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

treasurer may be held by the same person. The board of trustees may also elect or appoint such other officers, agents, or employees as it shall deem necessary or advisable and shall prescribe the powers and duties thereof. Any officer may be removed from office and his successor elected in the manner prel'!cribed in the by-laws.

Hlstory.-§11, ch. 19138, 1939; CGL 1940 Supp. 6494(54).

425.13 Amendment of articles of incorpora­tion.-A cooperative may amend its articles of inco~poration by complying with the following requirements:

(1) The proposed amendment shall first be approved by the board of trustees and shall then be submitted to a vote of the members at any annual or special meeting thereof, the notice of which shall set forth the proposed amendment. The proposed amendment, with such changes as the members shall choose to make therein, shall be deemed to be approved on the affirmative vote of not less than two­thirds of those members voting thereon at such meeting; and

(2) Upon such approval by the members, articles of amendment shall be executed and acknowledged on behalf of the cooperative by its president or vice-president and its cor­porate seal shall be affixed thereto and at­tested by its secretary. The articles of amend­ment shall recite in the caption that they are executed pursuant to this chapter and shall state:

(a) The name of the cooperative; (b) The address of its principal office; (c) The date of the filing of its articles of

incorporation in the office of the secretary of state; and

(d) The amendment to its articles of incor­poration. The president or vice-president executing such articles of amendment shall also make and annex thereto an affidavit stating that the provisions of this section were duly oomplied with. Such articles of amendment and affidavit shall ~e submitt~d to. the secretary of state for fihng as provided m this chapter. . (3) . A coope:ative ma~, without amending Its articles of mcorporation, upon authoriza­tion of its board of trustees, change the lo­cation of its principal office by filing a certifi­cate of change of principal office executed and acknowledged by its president or vice presi­dent under its seal attested by its secretary !n the office of the secretary of state and als~ m each county office in which its articles of incorpor.ation or any prior certificate of change of prmcipal office of such cooperative has been filed. Such cooperative shall also, within thirty days after the filing of such certificate of change of principal office in any county office file therein certified copies of its articles of incorporation and all amendments thereto, if the same are not already on file therein.

Hlstory.-§12, ch. 19138, 1939; CGL 1940 Supp. 6494(55).

425.14 Consolidation. -Any two or more cooperatives, each of which is hereinafter des-

ignated a "consolidating cooperative", may consolidate into a new cooperative, hereinafter designated the "new cooperative," by compi.y­ing with the following reauirements:

(1) The proposition for the consolidation of the consolidating cooperatives into the new cooperative and proposed articles of consoli­dation to give effect thereto shall be first approved by the board of trustees of each con­solidating cooperative. The proposed articles of consolidation shall recite in the caption that they are executed pursuant to this chapter and shall state:

(a) The name of each consolidating coop­erative, the address of its principal office, and the date of the filing of its articles of incor­poration in the office of the secretary of state;

(b) The name of the new cooperative and the address of its principal office;

(c) The names and addresses of the persons who shall constitute the first board of trustees of the new cooperative;

(d) The terms and conditions of the con­solidation and the mode of carrying the same into effect, including the manner and basis of converting membership in each consolidating cooperative into memberships in the new coop­erative and the issuance of certificates of mem­bership in respect of such converted member­ships; and

(e) Any provisions not inconsistent with this chapter deemed necessary or advisable for the conduct of the business and affairs of the new cooperative;

(2) The proposition for the consolidation of the consolidating cooperatives into the new cooperative and the proposed articles of con­. soli dation approved by the board of trustees of each consolidating cooperative shall then be submitted to a vote of the members thereof at ~my annu~l or special meeting thereof, the notice of which shall set forth full particulars concerning the proposed consolidation. The proposed consolidation and the proposed ar­ticles of consolidation shall be deemed to be approved upon the affirmative vote of not less than two-thirds of those members of each consolidating cooperative voting thereon at such meeting; and ·

(3) Upon such approval by the members of the respective consolidating cooperatives articles of consolidation in the form approved shall be executed and acknowledged on behalf of each consolidating cooperative by its presi­dent or vice-president and its seal shall be affixed thereto and attested by its secretary. The president or vice-president of each con­solidating cooperative executing such articles of consolidation shall also make and annex thereto an affidavit stating that the provisions of this section were duly complied with by such cooperative. Such articles of consolida­tion and affidavits shall be submitted to the secretary of state for filing as provided in this chapter.

Hlstory.-§13, ch. 19138, 1939; CGL 1940 Supp. 6494(56).

425.15 Merger.-Any one or .more coopera-

2091

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

tives, each of which is hereinafter designated davits shall_ be submitted to the secretary of a "merging cooperative," may merge into an- state for filmg as provided in this chapter. other cooperative, hereinafter designated the Htstory.-§14, ch. 19138, 1939; CGL 1940 Supp. 6494 (57). "surviving cooperative," by complying with the following requirements: 425.16 Effect of consolidation or merger.

(1) The proposition for the merger of the -The effect of consolidation or merger shall merging cooperatives into the surviving coop- be as follows: erative and proposed articles of merger to give (1) . Th~ several cooperatives, parties to the effect thereto shall be first approved by the consol~datwn _or ~erger, shall be a single co­board of trustees of each merging cooperative operative, wh1ch, m the case of a consolida­and by the board of trustees of the surviving ~Ion, shall ~e the new cooperative provided for cooperative. The proposed articles of merger m the articles of consolidation, and, in the shall recite in the caption that they are exe- case of a merger, shall be that cooperative cuted pursuant to this chapter and shall state: d~s!gned in the_ articles of merger as the sur-

(a) The name of each merging cooperative, Vlvmg cooperative, and the separate existence the address of its principal office, the date of the of all cooperatives, parties to the consolidation filing of its articles of incorporation in the or merger, except the new or surviving co-office of the secretary of state; operative, shall cease;

(b) The name of the surviving cooperative (2) Such new or surviving cooperative shall and the address of its principal office; have all the rights, privil~ges, immunities, and . (c) A statement that the merging coopera- powers and shall be subJect to all the duties

bves elect to be merged into the surviving co- and liabilities of a cooperative organized under operative; _ the provisions of this chapter, and shall pos-

(d) The names and addresses of the persons sess al~ the rights, privileges, immunities, and who shall ·Constitute the board of trustees of franchises, as well of a public as of a private the surviving cooperative until the next follow- nature, and all property, real and personal ing annual meeting of the members thereof. applications for membership, all debts due 0~

(e) The terms and conditions of the m~rger whatever account, and all other choses in ~nd th_e mode of carrying the same into effect, action, of each of the consolidating or merging mcludmg the _ma-':mer and b::sis of converting cooperatives, and furthermore all and every the mem~ers~1ps m the mergmg cooperative or , interest of, or belonging or due to, each of the cooperat~ves mto me~berships in the surviving cooperatives so consolidated or merged, shall cooperative and the Issuance of certificates of be taken and deemed to be transferred to and membership in respect of such converted mem- vested in such new or surviving cooperative berships; and without further act or deed; and the title

_(f) Any provisions not inconsistent with to any real estate, or any interest therein, th1s chapter deemed necessary or advisable for under the laws of this state vested in any the conduct of the business and affairs of the such cooperatives shall not revert or be in surviving cooperatives; · · any way impaired by reason of such consoli-

(2)_ The propos!tion for the merger of the dation or merger; mergu~g cooperatives into the surviving co- (3) Such new or surviving cooperative shall operative and the proposed articles of merger thenceforth be responsible and liable for all approved by the board of trustees of the re- of the liabilities and obligations of each of spective cooperatives, parties to the proposed . the cooperatives so consolidated or merged merger, shall then be submitted to a vote of and any claim existing, or action or proceeding the members of each such cooperative at any impending, by or against any of such co­annua;l or special meeting thereof, the notice operatives may be prosecuted as if such con­of which shall set forth full particulars concern- solidation or merger had not taken place but ing the proposed merger. The proposed merger such new or surviving cooperative may be' sub­and the proposed articles of merger shall be stituted in its place; deemed to be approved upon the affirmative ( 4) Neither the rights of creditors nor any vote of not less than two-thirds of those mem- liens upon the property of any of such co­hers of each cooperative voting thereon at such operatives shall be impaired by such consoli-meeting; and dation or merger; and

(3) Upon such approval by the members (5) In the case of a consolidation, the ar-of the respective cooperatives, parties to the ticles of consolidation shall be deemed to be proposed merger, articles of merger in the the articles of incorporation of the new co­form approved shall be executed and acknowl- operative; and in the case of a merger the ~dged o~ behalf of_ each such cooperative by articles of incorporation of the surviving co­lts president or v1ce-president and its seal operative shall be deemed to be amended to shall be affixed thereto and attested by its the extent, if any, that changes therein are secretary. The president or vice-president of provided for in the articles of merger. each cooperative executing such articles of History.-§15, ch. 19138, 1939; CGL 1940 Supp. 6494(58).

merger shall also make and annex thereto an 425.17 Conversion of existing corporations. affidavit stating that the provisions of this -Any corporation organized under the laws section were duly complied with by such co- of this state for the purpose, among others, of operative. Such articles of merger and affi- supplying electric energy in rural areas may

2092

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

be converted into a cooperative and become subject to this chapter with the same effect as if originally organized under this chapter by complying with the following requirements:

(1) The proposition for the conversion of such corporation into a cooperative and pro­posed articles of conversion to give effect thereto shall be first approved by the board of trustees or the board of directors as th~o>. case may be, of such corporation. The proposed articles of conversion shall recite in the cap­tion that they are executed pursuant to this chapter and shall state:

(a) The name of the corporation prior to its conversion into a cooperative;

(b) The address of the principal office of such corporation;

(c) The date of the filing the articles of in­corporation of such corporation in the office of the secretary of state;

(d) The statute under which such corpora­tion was organized;

(e) The name assumed by such corporation; (f) A statement that such corporation elects

to become a cooperative, nonprofit, membership corporation subject to this chapter;

(g) The names and addresses of the persons who shall constitute the board of trustees of such corporation after the completion of the conversion thereof until the next following an­nual meeting of its members;

(h) The manner and basis of converting ei­ther memberships in or shares of stock of such corporation into memberships therein after completion of the conversion; and

(i) Any provisions not inconsistent with this chapter deemed necessary or advisable for the conduct of the business and affairs of such cor­poration;

(2) The proposition for the conversion of such corporation into a cooperative and the proposed articles of conversion approved by the board of trustees or board of directors, as the case may be, of such corporation shall then be submitted to a vote of the members or stockholders, as the case may be, of such corporation at any duly held annual or special meeting thereof, the notice of which shall set forth full particulars concerning the pro­posed conversion. The proposition for the conversion of such corporation into a coop­erative and the proposed articles of conver­sion, with such amendments thereto as the members or stockholders of such corporation shall choose to make, shall be deemed to be approved upon the affirmative vote of not less than two-thirds of those members of such corporation voting thereon at such meeting, or, if such corporation is a stock corporation, upon the affirmative vote of the holders of not less than two-thirds of the capital stock of such corporation represented at such meeting;

(3) Upon such approval by the members or stockholders of such corporation, articles of conversion in the form approved by such members or stockholders ~:~hall be executed and acknowledged on behalf of such corpora-

tion by its president or vice-president and its corporate seal shall be affixed thereto and at­tested by its secretary. The president or vice­president executing such articles of conver­sion on behalf of such corporation shall also make and annex thereto an affidavit stating that the provisions of this section with re­spect to the approval of its trustees or di­rectors and its members or stockholders, of the proposition for the conversion of such corp"lration into a cooperative and such ar­ticles of conversion were duly complied with. Such articles of conversion and affidavit shall be submitted to the secretary of state for filing as provided in this chapter. The term "articles of incorporation" as used in this chapter shall be deemed to include the articles of conversion of a converted corporation.

Hlstory.-§16, ch. 19138, 1939; CGL 1940 Supp. 6494(69).

425.18 Initiative by members. - Notwith­standing any other provision of this chapter, any proposition embodied in a petition signed by not less than ten per cent of the members of a cooperative, together with any document submitted with such petition to give effect to the proposition, shall be submitted to the members of a cooperative, either at a special meeting of the members held within forty-five days after the presentation of such petition or, if the date of the next annual meeting of members falls within ninety days after such presentation or if the petition so requests, at such annual meeting. The approval of the board of trustees shall not be required in respect of any proposition or document sub­mitted to the members pursuant to this section and approved by them, but such proposition or document shall be subject to all other ap­plicable provisions of this chapter. Any af­fidavit or affidavits required to be filed with any such document pursuant to applicable pro­visions of this chapter shall, in such case, be modified to show compliance with the provisions of this section.

Hlstory,-§17, ch. 19138, 1939; CGL 1940 Supp. 6494(60).

425.19 Dissolution.-(!) A cooperative which has not commenced

business may dissolve voluntarily by delivering to the secretary of state articles of dissolution, executed and acknowledged on behalf of the co­operative by a majority of the incorporators, which shall state:

(a) The name of the cooperative; (b) The address of its principal office; (c) The date of its incorporation; (d) That the cooperative has not com­

menced business; (e) That the amount, if any, actually paid

in on account of membership fees, less any part thereof disbursed for necessary expenses, has been returned to those entitled thereto and that all easements shall have been released to the grantors;

(f) That no debt of the cooperative remains unpaid; and

(g) That a majority of the incorporators

2093

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

elect that the cooperative be dissolved. Such aggregate patronage of each such member articles of dissolution shall be submitted to the during the seven years next preceding the date secretary of state for filing as provided in this of such filing of the certificate, or, if the co­chapter; operative shall not have been in existence for

(2) A cooperative which has commenced such period, during the period of its existence; business may dissolve voluntarily and wind up and its affairs in the following manner: (f) When all debts, liabilities and obliga-

(a) The board of trustees shall first recom- tions of the cooperative have been paid and mend that the cooperative be dissolved volun- discharged or adequate provision shall have tarily and thereafter the proposition that the been made therefor, and all of the remaining cooperative be dissolved shall be submitted to property and assets of the cooperative shall the members of the cooperative at any annual or have been distributed to the members pursuant special meeting the notice of which shall set to the provisions of this section, the board forth such proposition. The proposed voluntary of trustees shall authorize the execution of dissolution shall be deemed to be approved upon articles of dissolution which shall thereupon the affirmative vote of not less than two-thirds be executed and acknowledged on behalf of of those members voting thereon at such meet- the cooperative by its president or vice-pres­ing; ident, and its corporate seal shall be affixed

(b) Upon such approval, a certificate of thereto and attested by its secretary. Such election to dissolve, hereinafter designated the articles of dissolution shall recite in the cap­"certificate", shall be executed and acknowl- tion that they are executed pursuant to this edged on behalf of the cooperative by its chapter and shall state: president or vice-president, and its corporate 1. The name of the cooperative; seal shall be affixed thereto and attested by 2. The address of the principal office of the its secretary. The certificate shall state: cooperative;

1. The name of the cooperative; 3. That the cooperative has heretofore de-2. The address of its principal office; livered to the secretary of state a certificate of 3. The names and addresses of its trustees; election to dissolve and the date on which the

and certificate was filed by the secretary of state in 4. The total number of members of the coop- the records of his office;

erative and the number of members who voted 4. That all debts, obligations and liabilities for and against the voluntary dissolution of the of the cooperative have been paid and dis­cooperative. The president or vice-president charged or that adequate provision has been executing the certificate shall also · make and made therefor; annex thereto an affidavit stating that the pro- 5. That all the remaining property and as­visions of this subsection were duly complied sets of the cooperative have been distributed with. Such certificate and affidavit shall be sub- among the members in accordance with the pro­mitted to the secretary of state for filing as visions of this section; and provided in this chapter; 6. That there are no actions or suits pending

(c) Upon the filing of the certificate and against the cooperative. The president or vice­affidavit by the secretary of state, the coopera- president executing the articles of dissolution tive shall cease to carry on its business except shall also make and annex thereto an affidavit insofar as may be necessary for the winding stating that the provisions of this subsection up thereof, but its corporate existence shall were duly complied with. continue until articles of dissolution have been Such articles of dissolution and affidavit ac­filed by the secretary of state; companied by proof of the publication required

(d) After the filing of the certificate and in this subsection, shall be submitted to the affidavit by the secretary of state the board secretary of state for filing as provided in this of trustees shall immediately cause notice chapter. of the winding up proceedings to be Hlstory.-§18, ch. 19188, 1939; CGL 1940 Supp. 6494(61); mailed to each known creditor and claimant am. §7, ch. 22858, 1945.

and to be published once a week for two sue- 425.20 Filing of articles.-Articles of incor­cessive weeks in a newspaper of general circu- poration, amendment, consolidation, merger, lation in the county in which the principal conversion, or dissolution, as the case may be, office of the cooperative is located; when executed and acknowledged and accom-

(e) The board of trustees shall have full panied by such affidavits as may be required power to wind up and settle the affairs of the by applicable provisions of this chapter, shall cooperative and shall proceed to collect the be presented to the secretary of state for filing debts owing to the cooperative, convey and dis- in the records of his office. If the secretary of pose of its property and assets, pay, satisfy, and state shall find that the articles presented con­discharge its debts, obligations, and liabiiities, form to the requirements of this chapter, he and do all other things required to liquidate shall upon the payment of the fees as in this its business and affairs, and after paying or chapter provided, file the articles so presented adequately providing for the payment of all in the records of his office and upon such filing its debts, obligations and liabilities, shall dis- the incorporation, amendment, consolidation, tribute the remainder of its property and merger, conversion, or dissolution provided for assets among its members in proportion to the therein shall be in effect. The secretary of

2094

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

state immediately upon the filing in his office of any articles pursuant to this chapter shall transmit a certified copy thereof to the county clerk of the county in which the principal of­fice of each cooperative or corporation affected by such incorporation, amendment, consolida­tion, merger, conversion, or dissolution shall be located. The clerk of any county, upon re­ceipt of any such certified copy, shall file and index the same in the records of his office, but the failure of the secretary of state or of a clerk of a county to comply with the provisions of this section shall not invalidate such articles. The provisions of this section shall also apply to certificates of election to dissolve and affi­davits of compliance executed pursuant to sub­section (2) (b) of §425.19.

Hlstory.-§19, ch. 19138, 1939; CGL 1940 Supp. 8494(62).

425.21 Refunds to members.-Revenues of a cooperative for any fiscal year in excess of the amount thereof necessary:

(1) To defray expenses of the cooperative and of the operation and maintenance of its facilities during such fiscal year;

(2) To pay interest and principal obliga­tions of the cooperative coming due in such fiscal year;

(3) To finance, or to provide a reserve for the financing of, the construction or acquisition by the cooperative of additional facilities to the extent determined by the board of trustees;

( 4) To provide a reasonable reserve for working capital;

(5) To provide a reserve for the payment of indebtedness of the cooperative maturing more than one year after the date of the incurrence of such indebtedness in an amount not less than the total of the interest and principal payments in respect thereof required to be made during the next following fiscal year; and

(6) To provide a fund for education in co­operation and for the dissemination of informa­tion ·Concerning the effective use of electric energy and other services made available by the cooperative, shall, unless otherwise determined by a vote of the members, be distributed by the cooperative to its members as patronage refunds in ac­cordance with the patronage of the cooperative by the respective members paid for during such fiscal year. Nothing herein contained shall be construed to prohibit the payment by a cooperative of a ll or any part of its indebt­edness prior to the date when the same shall become due.

Hlstory.-§20, ch. 19138, 1939; CGL 1940 Supp. 6494(63).

425.22 Disposition of property.-A coopera­tive may not sell, mortgage, lease or otherwise dispose of or encumber all or any substantial portion of its property unless such sale, mort­gage, lease, or other disposition or encumbrance is authorized at a duly held meeting of the members thereof by the affirmative vote of not less than two-thirds of all of the members of the cooperative, and unless the notice of such proposed sale, mortgage, lease or other dis­position or encumbrance shall have been con-

tained in the notice of the meeting; provided, however, that notwithstanding anything herein contained, or any other provisions of law, the board of trustees of a cooperative, without au­thorization by the members thereof, shall have full power and authority to authorize the exe­cution and delivery of a mortgage or mortgages or deed or deeds of trust upon, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises and permits of the cooperative, whether ac­quired or to be acquired, and wherever situ­ated, as well as the revenues and income there­from, all upon such 'terms and conditions as the board of trustees shall determine, to secure any indebtedness of the cooperative to the United States or any instrumentality or agency thereof.

Hlstory.-§21, ch. 19138, 1939; CGL 1940 Supp. 6494(64).

425.23 Nonliability of members for debts of cooperative.-The private property of the mem­bers of a cooperative shall be exempt from exe­cution for the debts of the cooperative and no member shall be liable or responsible for any debts of the cooperative.

Blstory.-§22, ch. 19138, 1939; CGL 1940 Supp, 6494(65).

425.24 Recordation of mortgages. - A n y mortgage, deed of trust, or other instrument executed by a cooperative or foreign corpora­tion transacting business in this state pursuant to this chapter, which, by its terms, creates a lien upon real and personal property then own­ed or after-acquired, and which is recorded as a mortgage of real property in any county in which such property is located or is to be located shall have the same force and effect as if the mortgage, deed of trust or other in­strument were also recorded or filed in the proper office of such county as a mortgage on personal property. Recordation of any such mortgage, deed of trust or other instrument shall cause the lien thereof to attach to all after-acquired property of the mortgagor of the nature therein described as being mort­gaged or pledged thereby immediately upon the acquisition of such property by the mort­gagor, and such lien shall be superior to all claims of creditors of the mortgagor and pur­chasers of such property and to all other liens, except liens of prior record and tax liens, af­fecting such property.

Hlstory.-§23, ch. 19138, 1939; CGL 1940 Supp. 6494(66).

425.25 Waiver of notice.-Whenever any notice is required to be given under the pro­visions of this chapter or under the provisions of the articles of incorporation or by-laws of a cooperative, waiver thereof in writing, signed by the person or persons entitled to such notice whether before or after the time fixed for the giving of such notice, shall be deemed equival­ent to such notice. If a person or persons entitled to notice of a meeting shall attend such meeting, such attendance shall constitute a waiver of notice of the meeting, except in case the attendance is for the express purpose of objecting to the transaction of any business

2095

Ch. 425 RURAL ELECTRIC COOPERATIVE LAW Ch. 425

because the meeting shall not have been law­fully called or convened.

Hlstory.-§24, ch. 19138, 1939; CGL 1940 Supp. 6494(67).

425.26 Trustees, officers or members, no­taries.-No person who is authorized to take acknowledgment under the laws of this state shall be disqualified from taking acknowledg­ments of instruments executed in favor of a cooperative or to which it is a party, by reason of being an officer, director or member of such cooperative. _

Hletory.-§25, ch. 19138, 1939; CGL 1940 Supp. 6494(68).

425.27 Foreign corporations.-Any corpora­tion organized under the laws of another state on a nonprofit or a cooperative basis for the purpose of supplying electri? energy .in rural areas and owning and operatmg electnc trans­mission or distribution lines in a state adjace~t to this state, shall be allowed to transact _busi­ness in this state and shall have the same nghts, powers, and privileges as a cooper~th·e _?rgan­ized under this chapter upon the fihng w1th the secretary of state of a certified copy of its charter or articles of incorporation and upon payment of the filing fee in this chapter pro­vided.

Hlatory.-§26, ch. 19138, 1989; CGL 1940 Supp. 6494(69).

425.28 Fees.-The secretary of state shall charge and collect for:

(1) Filing articles of incorporation ten dollars;

(2) Filing articles of amendment five dol­lars;

(3) Filing articles of consolidation or mer­ger five dollars;

( 4) Filing articles of conversion five dol­lars;

(5) Filing certificate of election to dissolve five dollars;

(6) Filing articles of dissolution five dol­lars;

(7) Filing certificate of change of principal office two dollars; and

(8) Filing certified copy of charter or articles of incorporation of foreign corpora­tion pursuant to §425.27 ten dollars.

Hletory.-§27, ch. 19138, 1939; CGL 1940 Supp. 6494(70).

425.29 Exemption from uniform sale of se­curities law.-The provisions of the uniform sale of securities law shall not apply to any note bond or other evidence of indebtedness issu~d by any cooperative or foreign corpora­tion transacting business in this state pur­suant to this chapter to the United States or any agency or instrumentality thereof, or to any mortgage or deed of trust executed to se­cure the same. The provisions of said uniform sale of securities law shall not apply to the issuance of membership certificates by any cooperative or any such foreign corporation.

Hletory.-§28, ch. 19138, 1939; CGL 1940 Supp. 6494(71),

2096

TITLE XXIX LABOR

CHAPTER 440

440.01 Short title. 440.02 Definitions. 440.03 Application.

WORKMEN'S COMPENSATION LAW

440.30 Depositions. 440.31 Witness fees.

440.04 Waiver of exemption. 440.05 Notice of nonacceptance and waiver

of exemption. 440.06 When employer rejects chapter; effect. 440.07 When employee rejects chapter; effect. 440.08 When employer and employee reject

chapter; effect. 440.09 Coverage. 440.10 Liability for compensation. 440.11 Exclusiveness of liability. 440.12 Time for commencement and limits on

weekly rate of compensation. 440.13 Medical services and supplies; penalty

for violations; limitations. 440.14 Determination of pay. 440.15 Compensation for disability. 440.151 Occupational diseases. 440.152 Commission to make study of occupa-

tional diseases, etc. 440.16 Compensation for death. 440.17 Guardian for minor or incompetent. 440.18 Notice of injury or death. 440.19 Time and procedure for filing claims. 440.20 Payment of compensation. 440.21 Invalid agreements; penalty. 440.22 Assignment and exemption from claims

of creditors. 440.23 Compensation a lien against assets. 440.24 Enforcement of compensation orders;

penalties. 440.25 Procedure in respect to claims. 440.26 Presumptions. 440.27 Review of compensation orders. 440.28 Modification of orders. 440.29 Procedure before the commission.

440.01 Short title.-This chapter may be cited as "Workmen's Compensation Law."

Wstory.-§1, ch. 17481, 1935; COL 1936 Supp. 5966(1).

440.02 Definitions.-When used in this chapter, unless the context clearly requir~s otherwise-

(!) "Employment." (a) "Employment," subject to the other pro­

vision s of this chapter, means any service per­formed by an employee for the person employ­ing him.

(b) The term "employment" shall include: 1. Employment by the state and all political

subdivisions thereof and all public and quasi­public corporations therein; and

440.32 Cost in proceedings brought without reasonable grounds.

440.33 Powers of commission. 440.34 Attorney's fees; costs; penalty for vio-

lations. 440.35 Record of injury or death. 440.36 Reports; penalties for violations. 440.37 Misrepresentation; penalty. 440.38 Security for compensation. 440.39 Compensation for injuries where third

persons are liable. 440.40 Compensation notice. 440.41 Substitution of carrier for employer. 440.42 Insurance policies; liability. 440.43 Penalty for failure to secure payment

of compensation. 440.44 Industrial commission. 440.45 Judges of industrial claims; delega­

tion of authority. 440.46 Investigations by the commission; re-

fusal to admit, penalty. 440.47 Traveling expenses. 440.48 Annual report. 440.49 Rehabilitation of injured employees;

special disability trust fund. 440.50 Workmen's compensation administra-

tion trust fund. 440.51 Expenses of administration. 440.52 Registration of insurance companies. 440.53 Effect of unconstitutionality. 440.54 Violation of child labor law. 440.55 Proceedings against state. 440.56 Safety rules and provisions; penalty. 440.57 Pooling liabilities. 440.58 Self-insurer members; payment of de­

linquent premiums and assessments.

2. All private employments in which three or more employees are employed by the same employer. ·

(c) The term "employment" shall not in-clude service performed by or as:

1. Officers 'elected at the polls; 2. Domestic servants in private homes; 3. Agricultural labor performed on a farm

in the employ of a bona fide farmer or associa­tion of farmers. The term "farm" includes stock, dairy, poultry, fruit, fur-bearing animals and truck farms, ranches, nurseries and or­chards.

4. Professional athletes, such as profession­al boxers and wrestlers and baseball, football,

2097

Ch. 440 WORKMEN'S COMPENSATION LAW Ch. 440

basketball, hockey, polo, tennis, jai alai and similar players, and all referees, judges, um­pires, trainers, masseurs and similar performers or attendants incident to professional exhibi­tions and performances of athletic games, sports and contests; or

5. Turpentine labor, labor in processing gum-spirits-of-turpentine, crude gum, oleorosin and gum rosin.

(2) "Employee." (a) "Employee" means every person en­

gaged in any employment under any appoint­ment or contract of hire or apprenticeship, ex­press or implied, oral or written, including aliens, and also including minors whether law­fully or unlawfully emolo:ved.

(b) The term "employee" shall include any person who is an officer of a corporation and who performs services for remuneration for such corporation within this state, whether or not such services are continuous. Services shall be presumed to have been rendered the cor­poration in cases where such officer is com­pensated by other than dividends upon shares of stock of such corporation owned by him.

(c) The term "employee" shall not include: 1. Independent contractors; or 2. Persons whose employment is both casual

and not in the course of the trade, business, profession or occupation of the employer.

(3) The term "casual" as used in this sec­tion shall be taken to refer only to employments where the work contemplated is to be completed in not exceeding ten working days, without re­gard to the number of men employed, and where the total labor cost of such work is less than one hundred dollars.

( 4) The term "employer" means the state and all political subdivisions thereof, all pub­lic and quasi-public corporations therein, every person carrying on any employment, and the legal representative of a deceased person or the receiver or trustees of any person.

(5) The term "person" means individual, partnership, association or corporation, in­cluding any public service corporation.

(6) The term "injury" means personal in­jury or death by accident arising out of and in the course of employment, and such diseases or infection as naturally or unavoidably result from such injury.

(7) The term "carrier" means any person or fund authorized under §440.38 to insure under this chapter and includes self-insurers.

(8) The term "commission" means the Flor­ida Industrial Commission or any duly author­ized judge of industrial cla4ms, inspector, agent or representative; the term "judge of industrial claims" means those persons ap­pointed under §440.45.

(9) "Disability" means incapacity because of the injury to earn in the same or any other employment the wages which the employee was receiving at the time of the injury.

(10) "Death" as a basis for a right to com­pensation means only death resulting from an

lowance payable to an employee or to his de­pendents as provided for in this chapter.

(12) "Wages" means the money rate at which the service rendered is recompensed under the contract of hiring in force at the time of the injury, including the reasonable value of board, rent, housing, lodging, or sim­ilar advantage received from the employer, and gratuities received in the course of employment from others than the employer, only when such gratuities are received with the knowledge of the employer. In employment where an em­ployee receives consideration other than cash as a portion of this compensation the value of such compensation shall be subject to the de­termination of the commission.

(13) "Child" shall include a posthumous child, a child legally adopted prior to the in­jury of the employee, and a step-child or acknowledged illegitimate child dependent up­on the deceased, but does not include married children unless wholly dependent on him. "Grandchild" means a child as above defined of a child as above defined. "Brother" and "sister" include step-brothers and step-sisters, half-brothers and half-sisters, and brothers and sisters by adoption, but does not include mar­ried brothers nor married sisters unless wholly dependent on the employee. "Child," "grand­child," "brother" and "sister" includes only persons who at the time of the death of the deceased employees are under eighteen years of age.

(14) The term "parent" includes step-par­ents and parents by adoption, parents-in-law, and any persons who for more than three years prior to the death of the deceased employee stood in the place of a parent to him, and were dependent on the injured employee.

(15) The term "widow" includes only the decedent's wife, living with him at the time of his injury and death, or dependent for support upon him and living apart at said time for justifiable cause.

(16) The term "widower" includes only the decedent's husband who at the time of her death lived with her and was dependent for support upon her, and was not capacitated to support himself.

(17) The term "adoption" or "adopted" means legal adoption prior to the time of the injury.

(18) The term "time of injury" means the time of the occurrence of the accident result­ing in the injury.

(19) "Accident" means only an unexpected or unusual event or result, happening suddenly. A mental or nervous injury due to fright or ex­citement only or disability or death due to the accidental acceleration or aggravation of a ve­nereal disease or of a disease due to the habit­ual use of alcohol or narcotic drugs, shall be deemed not to be an injury by accident arising out of the employment. Where a pre-existing di­sease or anomaly is accelerated or aggravated by accident arising out of and in the course of employment, only acceleration of death or injury.

(11) "Compensation" means the money al- the acceleration or aggravation of disability

209&

Ch. 440 WORKMEN'S COMPENSATION LAW Ch. 440

reasonably attributable to the accident shall be compensable with respect to permanent dis­ability or death. Compensation for temporary disability and medical benefits provided by this chapter shall not be subject to apportion­ment under this subsection.

(20) The term "registered mail" includes certified mail and any mail service which pro­vides for a receipt to the sender and a record of delivery at the office of address.

mstor7.-§2, ch. 17481, 1935; §1, ch. 17482, 1935; §1, ch. 17483, 1935; COL 1936 Supp. 5966(2); §1, ch. 18413, 1937; §1, ch. 20672, 1941; §1, ch. 28238, 1953; §1, ch. 29778, 1955; §1, ch. 57-155, §1, ch. 57-225 ; §1, ch. 59-100; §l, ch. 65-184; §1, ch. 67-554. cf.-§1.01 For general definitions.

440.03 Application.-Every employer and ~very employee, unless otherwise specifically provided, shall be presumed to have accepted the provisions of this chapter, respectively to pay and accept compensation for injury or death, arising out of and in the course of em­ployment, and shall be bound thereby, unless he shall have given prior to the injury, notice­to the contrary as provided in §440.05.

Wstor7.-•3• ch. 17481, 1935; COL 1936 Supp. 5966(3).

440.04 Waiver of exemption.-(1) An employer or employee who has ex­

empted himself by proper notice from the oper­atio:u of this chapter may at any time waive such exemption and thereby accept the provi­sions of this chapter by giving notice as pro­vided in §440.05.

(2) Every employer having in his employ­ment any employee not included in the defini­tion "employee" or excluded or exempted from the operation of this chapter may at any time waive such exclusion or exemption and accept the provisions of this chapter by giving notice thereof as provided in §440.05, and by so doing be as fully protected and covered by the pro­visions of this chapter as if such exclusion or exemption had not been contained herein.

(3) When any policy or contract of insur­ance specifically secures the benefits of this chapter to any person not included in the defi­nition of "employee" or whose services are not included in the definition of "employment" or who is otherwise excluded or exempted from the operation of this chapter, the acceptance of such policy or contract of insurance by the insured and the writing of same by the car­rier shall constitute a waiver of such exclusion or exemption and an acceptance of the provi­sions of this chapter with respect to such per­son, notwithstanding the provision of §440.05 with respect to notice.

mstor7.-§4, ch. 17481, 1935; COL 1936 Supp. 5966(4); §2, ch. 18413, 1937 ; sub § (3) comp. §2, ch. 29778, 1955.

440.05 Notice of nonacceptance and waiver of exemption.-N otice of nonacceptance of this chapter and notice of waiver of exemption here­tofore referred to shall be given in accordance with the following provisions:

(1) Every employer who elects not to ac­cept the provisions of this chapter or who waives such exemption as the case may be, shall post and keep posted in a conspicuous place or places m ·and about his place or places

of business typewritten or printed notices to such effect in accordance with a form to be prescribed by the commission. He shall file a duplicate of such notice with the commission.

(2) Every employee who elects not to accept the provisions of this chapter or who waives such exemption, as the case may be, shall deliver to the employer or shall send to him by mail addressed to him at his office, notice to such effect in accordance with a form to be prescribed by the commission. He shall file a duplicate of such notice with the commission.

(3) Such notice shall be given thirty days prior to any injury, provided, however, that if the injury occurs less than thirty days after the date of employment, such notice given at the time of employment shall be sufficient notice.

Wsto..,..-§5, ch. 17481, 1935; COL 1936 Supp. 6966(5).

440.06 When employer rejects chapter; ef­fect.-Every employer who elects not to operate under this chapter by giving proper notice as provided in §440.05 may not, in any suit brought against him by an employee subject to this chapter to recover damages for injury or death, defend such a suit on the grounds that the in­jury was caused by the negligence of a fellow servant, nor that the employee assumed the risk of his employment, nor that the injury was due to the contributory negligence of the employee.

mstor7.-§6, ch. 17481, 1935; COL 1936 Bupp. 5966(6).

440.07 When employee rejects chapter; ef­fect.-Every employee who elects not to operate under this chapter, in any action to recover damages for injury or death brought against an employer who accepts the provisions of this chapter shall proceed as at common law and the employer in such suit may avail himself of the defense of negligence of fellow servant, assumption of risk and contributory negligence, as such defense exists at common law.

mstor7.-§7, ch. 17481, 1935; COL 1936 Bupp. 5966(7).

440.08 When employer and employee reject chapter; effect.-When both employer and em­ployee elect not to operate under this chapter the liability of the employer shall be the same as though he alone rejected the terms of this chapter and in any action brought against him by such employee, he may not plead as a de­fense that the injury was caused by the neg­ligence of a fellow servant, nor that the em­ployee assumed the risk of his employment, nor that the injury was due to contributory neg­ligence of the employee.

Wstor7.-§8, ch. 17481, 1935; COL 1936 Bupp. 6966(8).

440.09 Coverage.-(1) Compensation shall be payable under

this chapter in respect of disability or death of an employee if the disability or death results from an injury arising out of and in the course of employment. Death resulting from an opera­tion by a surgeon furnished by the employer for the cure of hernia as required in §440.15(6) shall for the purpose of this chapter be considered as a death resulting from the ac­cident causing the hernia. Where an accident happens while the employee is employed else-

2099

Ch. 440 WORKMEN'S COMPENSATION LAW Ch. 440

where than in this state, which would entitle him or his dependents to compensation if it had happened in this state, the employee or his de­pendents shall be entitled to compensation, if the contract of employment was made in this state, and if the employer's place of business is in this state or if the residence of the em­ployee is in this state, provided, his contract of employment was not expressly for service ex­clusively outside of the state; provided, how­ever, that if an employee shall receive compen­sation or damages under the laws of any other state, nothing herein contained shall be con­strued so as to permit a total compensation for the same injury greater than is provided herein.

(2) No compensation shall be payable in respect of the disability or death of any em­ployee of a common carrier by railroad or ex­press company engaged in intrastate, interstate or foreign commerce.

(3) No compensation shall be payable if the injury was occasioned primarily by th: in­toxication of the employee or by the willful intention of the employee to injure or kill him­self or another. Where injury is caused by the willful refusal of the employee to use a safety appliance or observe a safety rule required by statute or lawfully required or approved by the commission, and brought prior to the accident to his knowledge, the compensation as provided in this chapter shall be reduced twenty-five per cent.

the payment to his employees of the compensa­tion payable under §§440.13, 440.15 and 440.16. In case a contractor sublets any part or parts of his contract work to a subcontractor or sub­contractors, all of the employees of such con­tractor and subcontractor or subcontractors engaged on such contract work shall be deemed to be employed in one and the same business or establishment, and the contractor shall be liable for and shall secure the payment of com­pensation to all such employees, except to em­ployees of a subcontractor who has secured such payment.

(2) Compensation shall be payable irrespec­tive of fault as a cause for the injury, except as provided in §440.09(3).

Blstory.-§10, ch. 17481, 1935; COL 1938 Bupp. 5981(11) : .~. ch. 18413, 1937.

440.11 Exclusiveness of liability.-The lia­bility of an employer prescribed in §440.10 shall be exclusive and in place of all other liability of such employer to the employee, his legal representative, husband or wife, parents, dependents, next of kin, and anyone otherwise entitled to recover damages from such em­ployer at law or in admiralty on account of such injury or death, except that if an employer fails to secure payment of compensation as re­quired by this chapter an injured employee, or his legal representative, in case death result. from the injury, may elect to claim compensa­tion under this chapter, or to maintain an action at law or in admiralty for damages on account of such injury or death. In such action the de­fendant may not plead as a defense that the injury was caused by negligence of a fellow ·servant, nor that the employee assumed the risk of his employment, nor that the injury was due to the contributory negligence of the employee.

Blator;y.-111, ch. 17~81, 1935; COL 1938 Bupp. 5988(11).

( 4) When any employee of the state or of any political subdivision thereof or of any pub­lic or quasi-public corporation therein, or any person entitled thereto on account of depend­ency upon such employee, receives compensa­tion under the provisions of this chapter by reason of the disability or death of such em­ployee resulting from an injury arising out of and in the course of employment with such employer, and such employee or dependent is 440.12 Time for commencement and limits entitled to receive any sum from any pension on weekly rate of compensation.-or other benefit fund to which the same employ- (1) No compensation shall be allowed for er may contribute, the amount of any payment the first seven days of the disability, except from such pension or benefit fund allocable to benefits provided for in §440.13; provided, how­any week with respect to which such employee ever, that if the injury results in disability of or dependent receives compensation under this more than twenty-one days compensation shall chapter shall be reduced by the amount of the be allowed from the commencement of the compensation for such week; provided that if disability. the amount of the payment from such pension or (2) Compensation for disability resulting benefit fund allocable to any week is less than from injuries which occur after December 31, the amount of such compensation for such week 1967, shall not exceed forty-nine dollars per only the amount of the pension or benefit pay- week nor be less than eight dollars per week; ment allocable to such week shall be affected provided, however, that if the employee's wages and the amount of the difference between the at the time of injury are less than eight dol­compensation and the pension or benefit pay- Iars per week he shall receive his full weekly ment allocable to one week shall not reduce wages.

f . t II bl t (3) The provisions of this section as the pension or bene It paymen a oca e 0 any amended effective July 1, 1951, shall govern subsequent week. · · f

Blstor:r.-§9, ch. 17.a1, 1835; COL 1938 eupp. 5988 <9>; fl, with respect to disability due to inJunes su -ch. 18413, 1937; aub. 1 <~> am. 11, ch. 28236, 1953; (3) bJ 11, ch. fered prior to July 1, 1959; and the provisions 57-293. of this section as amended effective July 1,

440.10 Liability for compensation.- 1959, shall govern with respect to disability (1) Every employer coming within the pro- due to injuries suffered after June 30, 1959,

visions of this chapter, including any brought and prior to January 1, 1968. • h' h h t b ' f 1 ' or of Blstor:r~§12, ch. 17481, 1935; COL 1936 Bupp. 5866(12); wit In t e c ap er Y waiver o exc usion §5, ch. 18413, 1937; 11, ch. 21824, 1943; 111, 3, ch. 26876, 1951;

exemption, shall be liable for and shall secure 11, ch. 59-151; u. ch. 67-239.

2100