Bill Text: FL S1568 | 2012 | Regular Session | Comm Sub
Bill Title: Sale or Lease of a County, District, or Municipal Hospital
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-07 - Laid on Table, refer to CS/CS/CS/HB 711 -SJ 940 [S1568 Detail]
Download: Florida-2012-S1568-Comm_Sub.html
Florida Senate - 2012 CS for CS for CS for SB 1568
By the Committees on Budget Subcommittee on General Government
Appropriations; Community Affairs; and Health Regulation; and
Senators Gaetz and Garcia
601-04256-12 20121568c3
1 A bill to be entitled
2 An act relating to the sale or lease of a county,
3 district, or municipal hospital; amending s. 155.40,
4 F.S.; defining the terms; requiring that the governing
5 board of a county, district, or municipal hospital
6 evaluate the possible benefits to an affected
7 community from the sale or lease of the hospital
8 facility to a not-for-profit or for-profit entity
9 within a specified time period; specifying the actions
10 the board must take in evaluating whether to sell or
11 lease the public hospital; requiring the board to
12 determine whether qualified purchasers or lessees
13 exist; specifying the factors that must be considered
14 by the governing board before accepting a proposal to
15 sell or lease the hospital; requiring the board to
16 state in writing detailed findings related to its
17 decision to accept or reject the proposal; requiring
18 the governing board to make public the required
19 findings and documents and to publish a notice of the
20 proposed transaction in one or more newspapers of
21 general circulation in the county in which the
22 majority of the physical assets of the hospital are
23 located; allowing persons to submit written comments
24 regarding the proposed transaction; providing that the
25 sale or lease is subject to the approval of the Chief
26 Financial Officer; requiring the governing board to
27 file a petition with the Chief Financial Officer
28 seeking approval of the proposed transaction within a
29 specified time period; requiring the Chief Financial
30 Officer or his or her designee to issue a final order
31 approving or denying the proposed transaction;
32 specifying the criteria upon which the Chief Financial
33 Officer must base his or her decision; authorizing an
34 interested party to appeal the decision of the Chief
35 Financial Officer; requiring that all costs be paid by
36 the governing board unless an interested party
37 contests the action, in which case the court may
38 assign costs equitably to the parties; providing for
39 the distribution of proceeds from the transaction;
40 exempting the sale or lease of specified physical
41 property of a county, district, or municipal hospital
42 from processes required for the approval of a sale or
43 lease of county, district, or municipal hospital
44 property; providing an exemption from complying with
45 the requirements of the act under certain
46 circumstances; exempting application of the act to
47 hospitals or health care systems for which a letter of
48 intent to sell or lease is executed before a specified
49 date; creating s. 155.401, F.S.; providing that the
50 purposes for which a special taxing district may
51 appropriate funds from the sale or lease of a hospital
52 or health care system include the promotion and
53 support of economic growth in the district and county
54 in which the taxing district is located and the
55 furthering of the purposes of the taxing district;
56 providing that any general or special law that is
57 inconsistent with or otherwise in conflict with the
58 act is specifically superseded by the act; amending s.
59 395.002, F.S.; revising the definition of the term
60 “accrediting organizations”; reenacting s.
61 395.003(2)(c), F.S., relating to licensure and
62 regulation of hospitals, to incorporate the amendment
63 made to s. 395.002, F.S., in a reference thereto;
64 amending s. 395.3036, F.S.; conforming cross
65 references; providing an effective date.
66
67 Be It Enacted by the Legislature of the State of Florida:
68
69 Section 1. 155.40, Florida Statutes, is amended to read:
70 155.40 Sale or lease of county, district, or municipal
71 hospital; effect of sale.—
72 (1) In the interest of providing quality health care
73 services to the order that citizens and residents of this the
74 state may receive quality health care, and notwithstanding any
75 other provision of general or special law, a any county,
76 district, or municipal hospital organized and existing under the
77 laws of this state, acting by and through its governing board,
78 may shall have the authority to sell or lease the such hospital
79 to a for-profit or not-for-profit Florida entity corporation,
80 and enter into leases or other contracts with a for-profit or
81 not-for-profit Florida entity corporation for the purpose of
82 operating the and managing such hospital and any or all of its
83 facilities of whatsoever kind and nature. The term of any such
84 lease, contract, or agreement and the conditions, covenants, and
85 agreements to be contained therein shall be determined by the
86 governing board of the such county, district, or municipal
87 hospital. The governing board of the hospital must find that the
88 sale, lease, or contract is in the best interests of the
89 affected community public and must state the basis of that such
90 finding. If the governing board of a county, district, or
91 municipal hospital decides to lease the hospital, it must give
92 notice in accordance with paragraph (4)(a) or paragraph (4)(b).
93 (2) A Any such lease, contract, or agreement made pursuant
94 hereto shall:
95 (a) Provide that the articles of incorporation of the such
96 for-profit or not-for-profit corporation be subject to the
97 approval of the board of directors or board of trustees of the
98 such hospital;
99 (b) Require that any not-for-profit corporation become
100 qualified under s. 501(c)(3) of the United States Internal
101 Revenue Code;
102 (c) Provide for the orderly transition of the operation and
103 management of the such facilities;
104 (d) Provide for the return of the such facility to the
105 county, municipality, or district upon the termination of the
106 such lease, contract, or agreement; and
107 (e) Provide for the continued treatment of indigent
108 patients pursuant to the Florida Health Care Responsibility Act
109 and pursuant to chapter 87-92, Laws of Florida.
110 (3) Any sale, lease, or contract entered into pursuant to
111 this section before prior to the effective date of this act must
112 have complied with the requirements of subsection (2) in effect
113 at the time of the sale, lease, or contract. Any lease
114 modification, renewal, or extension relating to a lease
115 transaction that occurred before the effective date of this act
116 is not subject to subsections (6)-(17). It is the intent of the
117 Legislature that this section does not impose any further
118 requirements with respect to the formation of any for-profit or
119 not-for-profit Florida entity corporation, the composition of
120 the board of directors of any Florida entity corporation, or the
121 manner in which control of the hospital is transferred to the
122 Florida entity corporation.
123 (4) As used in this section, the term:
124 (a) “Affected community” means those persons residing
125 within the geographic boundaries defined by the charter of the
126 county, district, or municipal hospital or health care system,
127 or if the boundaries are not specifically defined by charter, by
128 the geographic area from which 75 percent of the county,
129 district, or municipal hospital’s or health care system’s
130 inpatient admissions are derived.
131 (b) “Fair market value” means the price that a seller or
132 lessor is willing to accept and a buyer or lessee is willing to
133 pay on the open market and in an arms-length transaction, or
134 what an independent expert in hospital valuation determines the
135 fair market value to be.
136 (c) “Interested party” includes a person submitting a
137 proposal for sale or lease of the county, district, or municipal
138 hospital or health care system, as well as the governing board.
139 (5) The governing board of a county, district, or municipal
140 hospital or health care system shall commence an evaluation of
141 the possible benefits to an affected community from the sale or
142 lease of hospital facilities owned by the board to a not-for
143 profit or for-profit entity no later than December 31, 2012. In
144 the course of evaluating the benefits of the sale or lease, the
145 board shall:
146 (a) Conduct a public hearing to provide interested persons
147 the opportunity to be heard on the matter.
148 (b) Publish notice of the public hearing in one or more
149 newspapers of general circulation in the county in which the
150 majority of the physical assets of the hospital or health care
151 system are located and in the Florida Administrative Weekly at
152 least 15 days before the hearing is scheduled to occur.
153 (c) Contract with a certified public accounting firm or
154 other firm that has substantial expertise in the valuation of
155 hospitals to render an independent valuation of the hospital’s
156 fair market value.
157 (d) Consider an objective operating comparison between a
158 hospital or health care system operated by the district, county,
159 or municipality and other similarly situated hospitals, both
160 not-for-profit and for-profit, which have a similar service mix,
161 in order to determine whether there is a difference in the cost
162 of operation using publicly available data provided by the
163 Agency for Health Care Administration and the quality metrics
164 identified by the Centers for Medicare and Medicaid Services
165 Core Measures. The comparison must determine whether it is more
166 beneficial to taxpayers and the affected community for the
167 hospital to be operated by a governmental entity, or whether the
168 hospital can be operated by a not-for-profit or for-profit
169 entity with similar or better cost-efficiencies or measurable
170 outcomes identified by the Centers for Medicare and Medicaid
171 Services Core Measures. The comparison must also determine
172 whether there is a net benefit to the community to operate the
173 hospital as a not-for-profit or for-profit entity and use the
174 proceeds of the sale or lease for the purposes described in this
175 section.
176 (e) Make publicly available all documents considered by the
177 board in the course of such evaluation.
178 1. Within 160 days after the initiation of the process
179 established in subsection (5), the governing board shall publish
180 notice of the board’s findings in one or more newspapers of
181 general circulation in the county in which the majority of the
182 physical assets of the hospital are located and in the Florida
183 Administrative Weekly.
184 2. This evaluation is not required if a district, county,
185 or municipal hospital has issued a public request for proposals
186 for the sale or lease of a hospital on or before February 1,
187 2012, for the purpose of receiving proposals from qualified
188 purchasers or lessees, either not-for-profit or for-profit.
189 (6)(4) If, upon completion of the evaluation of the
190 benefits of the sale or lease, In the event the governing board
191 of a county, district, or municipal hospital determines that it
192 is no longer in the best interest of the affected community to
193 own or operate a hospital or health care system and elects to
194 consider a sale or lease of the hospital or health care system
195 to a third party, the governing board must first determine
196 whether there are any qualified purchasers or lessees. In the
197 process of evaluating any qualified purchaser or lessee elects
198 to sell or lease the hospital, the board shall:
199 (a) Negotiate the terms of the sale or lease with a for
200 profit or not-for-profit Florida corporation and Publicly
201 advertise the meeting at which the proposed sale or lease will
202 be considered by the governing board of the hospital in
203 accordance with s. 286.0105; or
204 (b) Publicly advertise the offer to accept proposals in
205 accordance with s. 255.0525 and receive proposals from all
206 interested and qualified purchasers and lessees.
207
208 Any sale or lease must be for fair market value, or, if not for
209 fair market value, the lease must be in the best interest of the
210 affected community. A and any sale or lease must comply with all
211 applicable state and federal antitrust laws.
212 (7) A determination by the governing board to accept a
213 proposal for sale or lease shall be made after consideration of
214 all proposals received and negotiations with a qualified
215 purchaser or lessee. The governing board’s determination must
216 include, in writing, detailed findings of all reasons for
217 accepting the proposal.
218 (a) The governing board’s acceptance of a proposal for sale
219 or lease must include a description of how the sale or lease
220 satisfies each of the following requirements:
221 1. The sale or lease represents fair market value, as
222 determined by a certified public accounting firm or other
223 qualified firm pursuant to subsection(5). If leased at less than
224 fair market value, the governing board shall provide a detailed
225 explanation of how the best interests of the affected community
226 are served by the acceptance of less than fair market value for
227 the lease of the hospital.
228 2. Acceptance of the proposal will result in a reduction or
229 elimination of ad valorem or other taxes for taxpayers in the
230 district, if applicable.
231 3. The proposal includes an enforceable commitment that
232 programs and services and quality health care will continue to
233 be provided to all residents of the affected community,
234 particularly to the indigent, the uninsured, and the
235 underinsured.
236 4. Disclosure has been made of all conflicts of interest,
237 including, but not limited to, whether the sale or lease of the
238 hospital or health care system would result in a special private
239 gain or loss to members of the governing board or key management
240 employees or members of the medical staff of the county,
241 district, or municipal hospital, or if governing board members
242 will be serving on the board of any successor private
243 corporation. Conflicts of interest, if any, with respect to
244 experts retained by the governing board shall also be disclosed.
245 5. Disclosure has been made by the seller or lessor of all
246 contracts with physicians or other entities providing health
247 care services through a contract with the seller or lessor,
248 including all agreements or contracts that would be void or
249 voidable upon the consummation of the sale or lease.
250 6. The proposal is in compliance with subsections (8) and
251 (9).
252 (b) The findings must be accompanied by all information and
253 documents relevant to the governing board’s determination,
254 including, but not limited to:
255 1. The names and addresses of all parties to the
256 transaction.
257 2. The location of the hospital or health care system and
258 all related facilities.
259 3. A description of the terms of all proposed agreements.
260 4. A copy of the proposed sale or lease agreement and any
261 related agreements, including, but not limited to, leases,
262 management contracts, service contracts, and memoranda of
263 understanding.
264 5. The estimated total value associated with the proposed
265 agreement and the proposed acquisition price.
266 6. Any valuations of the hospital’s or health care system’s
267 assets prepared during the 3 years immediately preceding the
268 proposed transaction date.
269 7. The fair market value analysis required by paragraph
270 (5)(c), or any other valuation prepared at the request of the
271 board, owner of the hospital or health care system, or managing
272 entity of the hospital or health care system.
273 8. Copies of all other proposals and bids that the
274 governing board may have received or considered in compliance
275 with subsection (6).
276 (8) Within 120 days before the anticipated closing date of
277 the proposed transaction, the governing board shall make
278 publicly available all findings and documents required under
279 subsection (7) and publish a notice of the proposed transaction
280 in one or more newspapers of general circulation in the county
281 in which the majority of the physical assets of the hospital or
282 health care system are located. The notice must include the
283 names of the parties involved and the means by which a person
284 may submit written comments about the proposed transaction to
285 the governing board and obtain copies of the findings and
286 documents required under subsection (7).
287 (9) Within 20 days after the date of publication of the
288 public notice, any person may submit to the governing board
289 written comments regarding the proposed transaction.
290 (10) The sale or lease of the hospital or health care
291 system is subject to approval by the Chief Financial Officer or
292 his or her designee, except, if otherwise required by law,
293 approval of the sale or lease shall exclusively be by majority
294 vote of the registered voters in the county, district, or
295 municipality in which the hospital or health care system is
296 located.
297 (a) The governing board shall file a petition with the
298 state Chief Financial Officer seeking approval of the proposed
299 transaction at least 30 days after publication of the notice of
300 the proposed transaction.
301 (b) The petition for approval filed by the governing board
302 must include all findings and documents required under
303 subsection (7) and certification by the governing board of
304 compliance with all requirements of this section. The chair of
305 the governing board must certify under oath and subject to the
306 penalty of perjury on a form accompanying the petition that the
307 contents of the petition and representations therein are true
308 and correct.
309 (11) Within 30 days of receiving the petition, the Chief
310 Financial Officer or his or her designee shall issue a final
311 order approving or denying the proposed transaction based solely
312 upon consideration of whether the procedures contained within
313 this section have been followed by the governing board of the
314 county, district, or municipal hospital or health care system.
315 The order shall require the governing board to accept or reject
316 the proposal for the sale or lease of the county, district, or
317 municipal hospital or health care system based upon a
318 determination that:
319 (a) The proposed transaction is permitted by law.
320 (b) The proposed transaction does not unreasonably exclude
321 a potential purchaser or lessee on the basis of being a for
322 profit or a not-for-profit Florida corporation or other form of
323 business organization, such as a partnership or limited
324 liability company.
325 (c) The governing board of the hospital or health care
326 system publicly advertised the meeting at which the proposed
327 transaction was considered by the board in compliance with s.
328 286.0105.
329 (d) The governing board of the hospital or health care
330 system publicly advertised the offer to accept proposals in
331 compliance with s. 255.0525.
332 (e) Any conflict of interest was disclosed, including, but
333 not limited to, how the proposed transaction could result in a
334 special private gain or loss to members of the governing board
335 or key management employees of the county, district, or
336 municipal hospital, or if governing board members will be
337 serving on the board of any successor private corporation.
338 Conflicts of interest, if any, with respect to experts retained
339 by the governing board shall also be disclosed.
340 (f) The seller or lessor documented that it will receive
341 fair market value for the sale or lease of the assets as
342 indicated in paragraph (5)(c) or, if leased at less than fair
343 market value, the governing board provided a detailed
344 explanation of how the best interests of the affected community
345 are served by the acceptance of less than fair market value for
346 the lease of the hospital or health care system.
347 (g) The acquiring entity has made an enforceable commitment
348 that programs and services and quality health care will continue
349 to be provided to all residents of the affected community,
350 particularly to the indigent, the uninsured, and the
351 underinsured.
352 (h) The governing board disclosed whether the sale or lease
353 will result in a reduction or elimination of ad valorem or other
354 taxes used to support the hospital.
355 (12) Any interested party to the action has the right to
356 seek judicial review of the decision in the appellate district
357 where the hospital is located or in the First District Court of
358 Appeal pursuant to s. 120.68.
359 (a) All proceedings shall be instituted by filing a notice
360 of appeal in accordance with the Florida Rules of Appellate
361 Procedure within 30 days after the date of the final order.
362 (b) In such judicial review, the appellate court shall
363 affirm the decision of the Chief Financial Officer, unless the
364 decision by the Chief Financial Officer is shown to be clearly
365 erroneous.
366 (13) All costs shall be paid by the governing board, unless
367 an interested party contests the action, in which case the court
368 may assign costs equitably to the parties.
369 (14) If any provision of subsection (5), subsection (6), or
370 subsection (7) is not followed, the contract for sale or lease
371 is voidable by any party to the contract. If any member of the
372 governing board negligently or willfully violates subsection
373 (5), subsection (6), or subsection (7), as determined by the
374 Commission on Ethics after receipt of a sworn complaint pursuant
375 to s. 112.322, the member is subject to a penalty, as determined
376 by the Commission on Ethics pursuant to s. 112.317.
377 (15) If a county, district, or municipal hospital is sold,
378 any and all special district tax authority associated with the
379 hospital subject to the sale shall cease on the effective date
380 of the closing date of the sale. Any special law inconsistent
381 with this subsection is superseded by this act.
382 (16) If a county, district, or municipal hospital is sold
383 or leased, the governing board shall:
384 (a) Deposit 50 percent of the net proceeds of the sale or
385 lease into a health care economic development trust fund, which
386 shall be under the control of the county commission of the
387 county in which the property is located, if the hospital is a
388 county hospital or district hospital whose geographic boundaries
389 extend beyond a single municipality, or, if the hospital is a
390 municipal hospital or district hospital whose geographic
391 boundaries lie entirely within a single municipality, under the
392 control of the city or municipal government in which the
393 hospital is located. The use and distribution of the funds shall
394 be at the discretion of a majority of the county commission if
395 the hospital is a county hospital or district hospital whose
396 geographic boundaries extend beyond a single municipality, or,
397 if the hospital is a municipal hospital or district hospital
398 whose geographic boundaries lie entirely within a single
399 municipality, at the discretion of a majority of the members of
400 the municipal government. The members of the county commission
401 or the municipal government, depending on the type of hospital
402 being sold, shall serve as trustees of the trust fund. The net
403 proceeds in the health care economic development trust fund
404 shall be distributed, in consultation with the Department of
405 Economic Opportunity, to promote job creation in the health care
406 sector of the economy through new or expanded health care
407 business development, new or expanded health care services, or
408 new or expanded health care education programs or
409 commercialization of health care research within the affected
410 community; and
411 (b) Appropriate 50 percent of the net proceeds of the sale
412 or lease for funding the delivery of indigent care, including
413 but not limited to primary care, physician specialty care, out
414 patient care, in-patient care and behavioral health, to
415 hospitals within the boundaries of the district with
416 consideration given to the levels of indigent care provided.
417
418 For the purposes of this subsection, the term “net proceeds”
419 means the sale price after payment of all district debts and
420 obligations.
421 (17) If a county, district, or municipal hospital or health
422 care system is sold or leased to a for-profit corporation or
423 other business entity subject to local taxation, the resulting
424 county and municipal ad valorem tax revenue from the formerly
425 tax-exempt property shall be distributed by the county
426 commission of the county in which the property is located, if
427 the hospital is a county hospital or district hospital whose
428 geographic boundaries extend beyond a single municipality, or,
429 if the hospital is a municipal hospital or district hospital
430 whose geographic boundaries lie entirely within a single
431 municipality, such ad valorem tax revenues shall be distributed
432 by the municipal government. The distribution of such ad valorem
433 tax revenues shall be made in consultation with the Department
434 of Economic Opportunity, for purposes set forth in subsection
435 (16).
436 (18)(5) If In the event a hospital operated by a for-profit
437 or not-for-profit Florida entity corporation receives annually
438 more than $100,000 in revenues from the county, district, or
439 municipality that owns the hospital, the Florida entity
440 corporation must be accountable to the county, district, or
441 municipality with respect to the manner in which the funds are
442 expended by either:
443 (a) Having the revenues subject to annual appropriations by
444 the county, district, or municipality; or
445 (b) Where there is a contract to provide revenues to the
446 hospital, the term of which is longer than 12 months, the
447 governing board of the county, district, or municipality must be
448 able to modify the contract upon 12 months notice to the
449 hospital.
450
451 A not-for-profit entity corporation that is subject to this
452 subsection and that does not currently comply with the
453 accountability requirements in this subsection shall have 12
454 months after the effective date of this act to modify any
455 contracts with the county, district, or municipality in a manner
456 that is consistent with this subsection.
457 (19)(6) Unless otherwise expressly stated in the lease
458 documents, the transaction involving the sale or lease of a
459 hospital may shall not be construed as:
460 (a) A transfer of a governmental function from the county,
461 district, or municipality to the private purchaser or lessee;
462 (b) Constituting a financial interest of the public lessor
463 in the private lessee; or
464 (c) Making a private lessee an integral part of the public
465 lessor’s decisionmaking process.
466 (20)(7) The lessee of a hospital, under this section or any
467 special act of the Legislature, operating under a lease may
468 shall not be construed to be “acting on behalf of” the lessor as
469 that term is used in statute, unless the lease document
470 expressly provides to the contrary.
471 (21)(8)(a) If, whenever the sale of a public hospital by a
472 public agency to a private corporation or other private entity
473 pursuant to this section or pursuant to a special act of the
474 Legislature reflects that:
475 1. The private corporation or other private entity
476 purchaser acquires 100 percent ownership in the hospital
477 enterprise;
478 2. The private corporation or other private entity
479 purchases the physical plant of the hospital facility and has
480 complete responsibility for the operation and maintenance of the
481 facility, regardless of ownership of the underlying real
482 property;
483 3. The public agency seller retains no control over
484 decisionmaking or policymaking for the hospital;
485 4. The private corporation or other private entity
486 purchaser receives no funding from the public agency seller
487 other than by contract for services rendered to patients for
488 whom the public agency seller has the responsibility to pay for
489 hospital or medical care;
490 5. The public agency seller makes no substantial investment
491 in or loans to the private entity;
492 6. The private corporation or other private entity
493 purchaser was not created by the public entity seller; and
494 7. The private corporation or other private entity
495 purchaser operates primarily for its own financial interests and
496 not primarily for the interests of the public agency,
497
498 such a sale shall be considered a complete sale of the public
499 agency’s interest in the hospital or health care system.
500 (b) A complete sale of a hospital or health care system as
501 described in this subsection may shall not be construed as:
502 1. A transfer of a governmental function from the county,
503 district, or municipality to the private corporation or other
504 private entity purchaser;
505 2. Constituting a financial interest of the public agency
506 in the private corporation or other private entity purchaser;
507 3. Making the private corporation or other private entity
508 purchaser an “agency” as that term is used in statutes;
509 4. Making the private corporation or other private entity
510 purchaser an integral part of the public agency’s decisionmaking
511 process; or
512 5. Indicating that the private corporation or other private
513 entity purchaser is “acting on behalf of a public agency” as
514 that term is used in statute.
515 (22) If the governing board elects to sell or lease any
516 physical property of a county, district, or municipal hospital
517 or health care system and such property generated less than 20
518 percent of the hospital’s net revenue within the hospital’s or
519 health care system’s most recent fiscal year, the sale or lease
520 of such property is exempt from the requirements under
521 subsections (6)-(15). However, the governing board shall
522 publicly advertise the meeting at which the proposed sale or
523 lease of such property will be considered by the governing board
524 of the hospital in accordance with s. 286.0105 or publicly
525 advertise the offer to accept proposals in accordance with s.
526 255.0525 and receive proposals from all qualified purchasers and
527 lessees. The sale or lease of the property must be for fair
528 market value or, if a lease is for less than fair market value,
529 the lease must be in the best interest of the affected
530 community.
531 (23) A county, district or municipal hospital or health
532 care system that is under lease as of the effective date of this
533 act is not subject to subsections (5)-(16) as long as that lease
534 remains in effect in accordance with the terms of the lease or
535 such lease is modified, extended or renewed. Any such hospital
536 or health care system, however, becomes subject to the
537 provisions of this act upon:
538 (a) Termination of the lease, unless the lease termination
539 is the direct result of a new lease involving a partnership,
540 transaction or contract in which both the existing lessor and
541 lessee agree to the new lease between the lessor and another
542 mutually agreed upon entity;
543 (b) Notification provided to the lessee of a planned
544 termination of the lease in accordance with the lease terms,
545 unless the notification of lease termination is the direct
546 result of a new lease involving a partnership, transaction or
547 contract in which both the existing lessor and lessee agree to
548 the new lease between the lessor and another mutually agreed
549 upon entity;
550 (c) Notification to the lessee that upon termination of the
551 lease the lessor plans to seek potential new lessees or buyers;
552 or
553 (d) Notification to the lessee that the lessor plans to
554 resume operation of the hospital or health care system at the
555 termination of the lease.
556
557 Any such hospital or health care system may not thereafter be
558 sold, leased to another lessee, or operated by the owner without
559 first complying with this act.
560 (24) A county, district, or municipal hospital or health
561 care system that has executed a letter of intent to sell or
562 lease the hospital or health care system accepted at a properly
563 noticed public meeting, and whose governing board has voted to
564 approve the letter of intent before December 31, 2011, is not
565 subject to subsections (6)-(17) as long as the final closing of
566 the sale or lease transaction pursuant to the letter of intent
567 occurs before December 31, 2012.
568 Section 2. Section 155.401, Florida Statutes, is created to
569 read:
570 155.401 Power of special taxing district to appropriate
571 proceeds from sale or lease of hospital or health care system to
572 economic development trust fund.—Notwithstanding any other
573 general or special law, the purposes for which a special taxing
574 district may appropriate funds from the sale or lease of a
575 hospital or health care system to an economic development fund
576 include the promotion and support of economic growth in such
577 district and in the county in which such district is located and
578 the furthering of the purposes of such district, as provided by
579 law.
580 Section 3. To the extent that any general or special law is
581 inconsistent with or otherwise in conflict with this act, such
582 conflicting provisions are specifically superseded by this act.
583 A special tax district, public hospital, or municipal hospital
584 is not exempt from this act.
585 Section 4. Subsection (1) of section 395.002, Florida
586 Statutes, is amended to read:
587 395.002 Definitions.—As used in this chapter:
588 (1) “Accrediting organizations” means national
589 accreditation organizations that are approved by the Centers for
590 Medicare and Medicaid Services and whose standards incorporate
591 comparable licensure regulations required by the state the Joint
592 Commission on Accreditation of Healthcare Organizations, the
593 American Osteopathic Association, the Commission on
594 Accreditation of Rehabilitation Facilities, and the
595 Accreditation Association for Ambulatory Health Care, Inc.
596 Section 5. For the purpose of incorporating the amendment
597 made by this act to section 395.002, Florida Statutes, in a
598 reference thereto, paragraph (c) of subsection (2) of section
599 395.003, Florida Statutes, is reenacted to read:
600 395.003 Licensure; denial, suspension, and revocation.—
601 (2)
602 (c) Intensive residential treatment programs for children
603 and adolescents which have received accreditation from an
604 accrediting organization as defined in s. 395.002(1) and which
605 meet the minimum standards developed by rule of the agency for
606 such programs shall be licensed by the agency under this part.
607 Section 6. Section 395.3036, Florida Statutes, is amended
608 to read:
609 395.3036 Confidentiality of records and meetings of
610 entities corporations that lease public hospitals or other
611 public health care facilities.—The records of a private entity
612 corporation that leases a public hospital or other public health
613 care facility are confidential and exempt from the provisions of
614 s. 119.07(1) and s. 24(a), Art. I of the State Constitution, and
615 the meetings of the governing board of a private entity
616 corporation are exempt from s. 286.011 and s. 24(b), Art. I of
617 the State Constitution if when the public lessor complies with
618 the public finance accountability provisions of s. 155.40(18)
619 155.40(5) with respect to the transfer of any public funds to
620 the private lessee and if when the private lessee meets at least
621 three of the five following criteria:
622 (1) The public lessor that owns the public hospital or
623 other public health care facility was not the incorporator or
624 initial member of the private entity corporation that leases the
625 public hospital or other health care facility.
626 (2) The public lessor and the private lessee do not
627 commingle any of their funds in any account maintained by either
628 of them, other than the payment of the rent and administrative
629 fees or the transfer of funds pursuant to subsection (5) (2).
630 (3) Except as otherwise provided by law, the private lessee
631 is not allowed to participate, except as a member of the public,
632 in the decisionmaking process of the public lessor.
633 (4) The lease agreement does not expressly require the
634 lessee to comply with the requirements of ss. 119.07(1) and
635 286.011.
636 (5) The public lessor is not entitled to receive any
637 revenues from the lessee, except for rental or administrative
638 fees due under the lease, and the lessor is not responsible for
639 the debts or other obligations of the lessee.
640 Section 7. This act shall take effect upon becoming a law.
