Bill Text: FL S1712 | 2019 | Regular Session | Comm Sub
Bill Title: Hospital Licensure
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2019-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 21 (Ch. 2019-136) [S1712 Detail]
Download: Florida-2019-S1712-Comm_Sub.html
Florida Senate - 2019 CS for CS for SB 1712 By the Committees on Appropriations; and Health Policy; and Senator Harrell 576-04593-19 20191712c2 1 A bill to be entitled 2 An act relating to hospital licensure; amending s. 3 395.003, F.S.; deleting provisions relating to the 4 licensure of certain hospitals; amending s. 395.0191, 5 F.S.; deleting provisions relating to certificate of 6 need applications; amending s. 395.1055, F.S.; 7 revising the Agency for Health Care Administration’s 8 rulemaking authority with respect to minimum standards 9 for hospitals; requiring hospitals that provide 10 certain services to meet specified licensure 11 requirements; conforming provisions to changes made by 12 the act; amending s. 395.1065, F.S.; conforming a 13 cross-reference; repealing s. 395.6025, F.S., relating 14 to rural hospital replacement facilities; amending s. 15 408.032, F.S.; revising and deleting definitions; 16 amending s. 408.033, F.S.; conforming provisions to 17 changes made by the act; amending s. 408.034, F.S.; 18 authorizing the agency to issue a license to a general 19 hospital that has not been issued a certificate of 20 need under certain circumstances; revising duties and 21 responsibilities of the agency relating to issuance of 22 licenses to health care facilities and health service 23 providers; conforming provisions to changes made by 24 the act; amending s. 408.035, F.S.; deleting 25 provisions related to the agency’s consideration and 26 review of applications for certificates of need for 27 general hospitals and health services; amending s. 28 408.036, F.S.; providing an exception from certificate 29 of need review requirements for the construction or 30 establishment of a general hospital and the conversion 31 of a specialty hospital to a general hospital; 32 revising health-care-related projects subject to 33 agency review for a certificate of need and exemptions 34 therefrom; deleting provisions requiring health care 35 facilities and providers to provide certain notice to 36 the agency upon termination of a health care service 37 or the addition or delicensure of beds; conforming a 38 provision to changes made by the act; repealing s. 39 408.0361, F.S., relating to cardiovascular services 40 and burn unit licensure; amending ss. 408.037 and 41 408.039, F.S.; deleting provisions relating to 42 certificate of need applications for general 43 hospitals; amending s. 408.043, F.S.; deleting 44 provisions relating to certificates of need for 45 osteopathic acute care hospitals; amending s. 408.808, 46 F.S.; authorizing the agency to issue an inactive 47 license to a certain hospital under certain 48 circumstances; providing effective dates. 49 50 Be It Enacted by the Legislature of the State of Florida: 51 52 Section 1. Effective July 1, 2024, subsections (8), (9), 53 and (10) of section 395.003, Florida Statutes, are amended to 54 read: 55 395.003 Licensure; denial, suspension, and revocation.— 56(8) A hospital may not be licensed or relicensed if:57(a) The diagnosis-related groups for 65 percent or more of58the discharges from the hospital, in the most recent year for59which data is available to the Agency for Health Care60Administration pursuant to s. 408.061, are for diagnosis, care,61and treatment of patients who have:621. Cardiac-related diseases and disorders classified as63diagnosis-related groups in major diagnostic category 5;642. Orthopedic-related diseases and disorders classified as65diagnosis-related groups in major diagnostic category 8;663. Cancer-related diseases and disorders classified as67discharges in which the principal diagnosis is neoplasm or68carcinoma or is for an admission for radiotherapy or69antineoplastic chemotherapy or immunotherapy; or704. Any combination of the above discharges.71(b) The hospital restricts its medical and surgical72services to primarily or exclusively cardiac, orthopedic,73surgical, or oncology specialties.74(c) A hospital classified as an exempt cancer center75hospital pursuant to 42 C.F.R. s. 412.23(f) as of December 31,762005, is exempt from the licensure restrictions of this77subsection.78(9) A hospital licensed as of June 1, 2004, shall be exempt79from subsection (8) as long as the hospital maintains the same80ownership, facility street address, and range of services that81were in existence on June 1, 2004. Any transfer of beds, or82other agreements that result in the establishment of a hospital83or hospital services within the intent of this section, shall be84subject to subsection (8). Unless the hospital is otherwise85exempt under subsection (8), the agency shall deny or revoke the86license of a hospital that violates any of the criteria set87forth in that subsection.88(10) The agency may adopt rules implementing the licensure89requirements set forth in subsection (8). Within 14 days after90rendering its decision on a license application or revocation,91the agency shall publish its proposed decision in the Florida92Administrative Register. Within 21 days after publication of the93agency’s decision, any authorized person may file a request for94an administrative hearing. In administrative proceedings95challenging the approval, denial, or revocation of a license96pursuant to subsection (8), the hearing must be based on the97facts and law existing at the time of the agency’s proposed98agency action. Existing hospitals may initiate or intervene in99an administrative hearing to approve, deny, or revoke licensure100under subsection (8) based upon a showing that an established101program will be substantially affected by the issuance or102renewal of a license to a hospital within the same district or103service area.104 Section 2. Effective July 1, 2024, subsection (10) of 105 section 395.0191, Florida Statutes, is amended to read: 106 395.0191 Staff membership and clinical privileges.— 107(10) Nothing herein shall be construed by the agency as108requiring an applicant for a certificate of need to establish109proof of discrimination in the granting of or denial of hospital110staff membership or clinical privileges as a precondition to111obtaining such certificate of need under the provisions of s.112408.043.113 Section 3. Effective July 1, 2024, present subsection (12) 114 of section 395.1055, Florida Statutes, is redesignated as 115 subsection (15), and a new subsection (12) and subsections (13) 116 and (14) are added to that section, and paragraph (f) of 117 subsection (1) and paragraph (b) of subsection (9) of that 118 section are amended, to read: 119 395.1055 Rules and enforcement.— 120 (1) The agency shall adopt rules pursuant to ss. 120.536(1) 121 and 120.54 to implement the provisions of this part, which shall 122 include reasonable and fair minimum standards for ensuring that: 123(f) All hospitals submit such data as necessary to conduct124certificate-of-need reviews required under part I of chapter125408. Such data shall include, but shall not be limited to,126patient origin data, hospital utilization data, type of service127reporting, and facility staffing data. The agency may not128collect data that identifies or could disclose the identity of129individual patients. The agency shall utilize existing uniform130statewide data sources when available and shall minimize131reporting costs to hospitals.132 (9) The agency shall establish a technical advisory panel, 133 pursuant to s. 20.052, to develop procedures and standards for 134 measuring outcomes of pediatric cardiac catheterization programs 135 and pediatric cardiovascular surgery programs. 136 (b) Voting members of the panel shall include: 3 at-large 137 members, including 1 cardiologist who is board certified in 138 caring for adults with congenital heart disease and 2 board 139 certified pediatric cardiologists, neither of whom may be 140 employed by any of the hospitals specified in subparagraphs 1. 141 10. or their affiliates, each of whom is appointed by the 142 Secretary of Health Care Administration, and 10 members, and an 143 alternate for each member, each of whom is a pediatric 144 cardiologist or a pediatric cardiovascular surgeon, each 145 appointed by the chief executive officer of the following 146 hospitals: 147 1. Johns Hopkins All Children’s Hospital in St. Petersburg. 148 2. Arnold Palmer Hospital for Children in Orlando. 149 3. Joe DiMaggio Children’s Hospital in Hollywood. 150 4. Nicklaus Children’s Hospital in Miami. 151 5. St. Joseph’s Children’s Hospital in Tampa. 152 6. University of Florida Health Shands Hospital in 153 Gainesville. 154 7. University of Miami Holtz Children’s Hospital in Miami. 155 8. Wolfson Children’s Hospital in Jacksonville. 156 9. Florida Hospital for Children in Orlando. 157 10. Nemours Children’s Hospital in Orlando. 158 159 Appointments made under subparagraphs 1.-10. are contingent upon 160the hospital’s maintenance of pediatric certificates of need and161 the hospital’s compliance with this section and rules adopted 162 thereunder, as determined by the Secretary of Health Care 163 Administration. A member appointed under subparagraphs 1.-10. 164 whose hospital fails tomaintain such certificates orcomply 165 with such standards may serve only as a nonvoting member until 166 the hospitalrestores such certificates orcomplies with such 167 standards. 168 (12) Each provider of diagnostic cardiac catheterization 169 services shall comply with rules adopted by the agency which 170 establish licensure standards governing the operation of adult 171 inpatient diagnostic cardiac catheterization programs. The rules 172 must ensure that such programs: 173 (a) Comply with the most recent guidelines of the American 174 College of Cardiology and American Heart Association Guidelines 175 for Cardiac Catheterization and Cardiac Catheterization 176 Laboratories. 177 (b) Perform only adult inpatient diagnostic cardiac 178 catheterization services and will not provide therapeutic 179 cardiac catheterization or any other cardiology services. 180 (c) Maintain sufficient appropriate equipment and health 181 care personnel to ensure quality and safety. 182 (d) Maintain appropriate times of operation and protocols 183 to ensure availability and appropriate referrals in the event of 184 emergencies. 185 (e) Demonstrate a plan to provide services to Medicaid and 186 charity care patients. 187 (13) Each provider of adult cardiovascular services or 188 operator of a burn unit shall comply with rules adopted by the 189 agency which establish licensure standards that govern the 190 provision of adult cardiovascular services or the operation of a 191 burn unit. Such rules shall consider, at a minimum, staffing, 192 equipment, physical plant, operating protocols, the provision of 193 services to Medicaid and charity care patients, accreditation, 194 licensure period and fees, and enforcement of minimum standards. 195 (14) In establishing rules for adult cardiovascular 196 services, the agency shall include provisions that allow for: 197 (a) Establishment of two hospital program licensure levels: 198 a Level I program authorizing the performance of adult 199 percutaneous cardiac intervention without onsite cardiac surgery 200 and a Level II program authorizing the performance of 201 percutaneous cardiac intervention with onsite cardiac surgery. 202 (b)1. For a hospital seeking a Level I program, 203 demonstration that, for the most recent 12-month period as 204 reported to the agency, the hospital has provided a minimum of 205 300 adult inpatient and outpatient diagnostic cardiac 206 catheterizations or, for the most recent 12-month period, has 207 discharged or transferred at least 300 patients with the 208 principal diagnosis of ischemic heart disease and that it has a 209 formalized, written transfer agreement with a hospital that has 210 a Level II program, including written transport protocols to 211 ensure safe and efficient transfer of a patient within 60 212 minutes. 213 2.a. A hospital located more than 100 road miles from the 214 closest Level II adult cardiovascular services program does not 215 need to meet the diagnostic cardiac catheterization volume and 216 ischemic heart disease diagnosis volume requirements in 217 subparagraph 1. if the hospital demonstrates that it has, for 218 the most recent 12-month period as reported to the agency, 219 provided a minimum of 100 adult inpatient and outpatient 220 diagnostic cardiac catheterizations or that, for the most recent 221 12-month period, it has discharged or transferred at least 300 222 patients with the principal diagnosis of ischemic heart disease. 223 b. A hospital located more than 100 road miles from the 224 closest Level II adult cardiovascular services program does not 225 need to meet the 60-minute transfer time protocol requirement in 226 subparagraph 1. if the hospital demonstrates that it has a 227 formalized, written transfer agreement with a hospital that has 228 a Level II program. The agreement must include written transport 229 protocols to ensure the safe and efficient transfer of a 230 patient, taking into consideration the patient’s clinical and 231 physical characteristics, road and weather conditions, and 232 viability of ground and air ambulance service to transfer the 233 patient. 234 3. At a minimum, the rules for adult cardiovascular 235 services must require nursing and technical staff to have 236 demonstrated experience in handling acutely ill patients 237 requiring intervention, based on the staff member’s previous 238 experience in dedicated cardiac interventional laboratories or 239 surgical centers. If a staff member’s previous experience is in 240 a dedicated cardiac interventional laboratory at a hospital that 241 does not have an approved adult open heart surgery program, the 242 staff member’s previous experience qualifies only if, at the 243 time the staff member acquired his or her experience, the 244 dedicated cardiac interventional laboratory: 245 a. Had an annual volume of 500 or more percutaneous cardiac 246 intervention procedures. 247 b. Achieved a demonstrated success rate of 95 percent or 248 greater for percutaneous cardiac intervention procedures. 249 c. Experienced a complication rate of less than 5 percent 250 for percutaneous cardiac intervention procedures. 251 d. Performed diverse cardiac procedures, including, but not 252 limited to, balloon angioplasty and stenting, rotational 253 atherectomy, cutting balloon atheroma remodeling, and procedures 254 relating to left ventricular support capability. 255 (c) For a hospital seeking a Level II program, 256 demonstration that, for the most recent 12-month period as 257 reported to the agency, the hospital has performed a minimum of 258 1,100 adult inpatient and outpatient cardiac catheterizations, 259 of which at least 400 must be therapeutic catheterizations, or, 260 for the most recent 12-month period, has discharged at least 800 261 patients with the principal diagnosis of ischemic heart disease. 262 (d) Compliance with the most recent guidelines of the 263 American College of Cardiology and American Heart Association 264 guidelines for staffing, physician training and experience, 265 operating procedures, equipment, physical plant, and patient 266 selection criteria to ensure patient quality and safety. 267 (e) Establishment of appropriate hours of operation and 268 protocols to ensure availability and timely referral in the 269 event of emergencies. 270 (f) Demonstration of a plan to provide services to Medicaid 271 and charity care patients. 272 Section 4. Effective July 1, 2024, subsection (5) of 273 section 395.1065, Florida Statutes, is amended to read: 274 395.1065 Criminal and administrative penalties; 275 moratorium.— 276 (5) The agency shall impose a fine of $500 for each 277 instance of the facility’s failure to provide the information 278 required by rules adopted pursuant to s. 395.1055(1)(g)s.279395.1055(1)(h). 280 Section 5. Section 395.6025, Florida Statutes, is repealed. 281 Section 6. Subsections (8) and (13) of section 408.032, 282 Florida Statutes, are amended to read: 283 408.032 Definitions relating to Health Facility and 284 Services Development Act.—As used in ss. 408.031-408.045, the 285 term: 286 (8) “Health care facility” means a hospital,long-term care287hospital,skilled nursing facility, hospice, or intermediate 288 care facility for the developmentally disabled. A facility 289 relying solely on spiritual means through prayer for healing is 290 not included as a health care facility. 291(13) “Long-term care hospital” means a hospital licensed292under chapter 395 which meets the requirements of 42 C.F.R. s.293412.23(e) and seeks exclusion from the acute care Medicare294prospective payment system for inpatient hospital services.295 Section 7. Effective July 1, 2024, subsections (8) through 296 (16) of section 408.032, Florida Statutes, as amended by this 297 act, are amended to read: 298 408.032 Definitions relating to Health Facility and 299 Services Development Act.—As used in ss. 408.031-408.045, the 300 term: 301 (8) “Health care facility” means ahospital,skilled 302 nursing facility, hospice, or intermediate care facility for the 303 developmentally disabled. A facility relying solely on spiritual 304 means through prayer for healing is not included as a health 305 care facility. 306(9)“Health services” means inpatient diagnostic, curative,307or comprehensive medical rehabilitative services and includes308mental health services. Obstetric services are not health309services for purposes of ss. 408.031-408.045.310 (9)(10)“Hospice” or “hospice program” means a hospice as 311 defined in part IV of chapter 400. 312(11)“Hospital” means a health care facility licensed under313chapter 395.314 (10)(12)“Intermediate care facility for the 315 developmentally disabled” means a residential facility licensed 316 under part VIII of chapter 400. 317(13)“Mental health services” means inpatient services318provided in a hospital licensed under chapter 395 and listed on319the hospital license as psychiatric beds for adults; psychiatric320beds for children and adolescents; intensive residential321treatment beds for children and adolescents; substance abuse322beds for adults; or substance abuse beds for children and323adolescents.324 (11)(14)“Nursing home geographically underserved area” 325 means: 326 (a) A county in which there is no existing or approved 327 nursing home; 328 (b) An area with a radius of at least 20 miles in which 329 there is no existing or approved nursing home; or 330 (c) An area with a radius of at least 20 miles in which all 331 existing nursing homes have maintained at least a 95 percent 332 occupancy rate for the most recent 6 months or a 90 percent 333 occupancy rate for the most recent 12 months. 334 (12)(15)“Skilled nursing facility” means an institution, 335 or a distinct part of an institution, which is primarily engaged 336 in providing, to inpatients, skilled nursing care and related 337 services for patients who require medical or nursing care, or 338 rehabilitation services for the rehabilitation of injured, 339 disabled, or sick persons. 340(16)“Tertiary health service” means a health service341which, due to its high level of intensity, complexity,342specialized or limited applicability, and cost, should be343limited to, and concentrated in, a limited number of hospitals344to ensure the quality, availability, and cost-effectiveness of345such service. Examples of such service include, but are not346limited to, pediatric cardiac catheterization, pediatric open347heart surgery, organ transplantation, neonatal intensive care348units, comprehensive rehabilitation, and medical or surgical349services which are experimental or developmental in nature to350the extent that the provision of such services is not yet351contemplated within the commonly accepted course of diagnosis or352treatment for the condition addressed by a given service. The353agency shall establish by rule a list of all tertiary health354services.355 Section 8. Effective July 1, 2024, paragraph (b) of 356 subsection (1) of section 408.033, Florida Statutes, is amended 357 to read: 358 408.033 Local and state health planning.— 359 (1) LOCAL HEALTH COUNCILS.— 360 (b) Each local health council may: 361 1. Develop a district area health plan that permits each 362 local health council to develop strategies and set priorities 363 for implementation based on its unique local health needs. 364 2. Advise the agency on health care issues and resource 365 allocations. 366 3. Promote public awareness of community health needs, 367 emphasizing health promotion and cost-effective health service 368 selection. 369 4. Collect data and conduct analyses and studies related to 370 health care needs of the district, including the needs of 371 medically indigent persons, and assist the agency and other 372 state agencies in carrying out data collection activities that 373 relate to the functions in this subsection. 374 5. Monitor the onsite construction progress, if any, of 375 certificate-of-need approved projects and report council 376 findings to the agency on forms provided by the agency. 377 6. Advise and assist any regional planning councils within 378 each district that have elected to address health issues in 379 their strategic regional policy plans with the development of 380 the health element of the plans to address the health goals and 381 policies in the State Comprehensive Plan. 382 7. Advise and assist local governments within each district 383 on the development of an optional health plan element of the 384 comprehensive plan provided in chapter 163, to assure 385 compatibility with the health goals and policies in the State 386 Comprehensive Plan and district health plan. To facilitate the 387 implementation of this section, the local health council shall 388 annually provide the local governments in its service area, upon 389 request, with: 390 a. A copy and appropriate updates of the district health 391 plan; 392 b. A report of health facilityhospitaland nursing home 393 utilization statistics for facilities within the local 394 government jurisdiction; and 395 c. Applicable agency rules and calculated need 396 methodologies for health facilities and services regulated under 397 s. 408.034 for the district served by the local health council. 398 8. Monitor and evaluate the adequacy, appropriateness, and 399 effectiveness, within the district, of local, state, federal, 400 and private funds distributed to meet the needs of the medically 401 indigent and other underserved population groups. 402 9. In conjunction with the Department of Health, plan for 403 services at the local level for persons infected with the human 404 immunodeficiency virus. 405 10. Provide technical assistance to encourage and support 406 activities by providers, purchasers, consumers, and local, 407 regional, and state agencies in meeting the health care goals, 408 objectives, and policies adopted by the local health council. 409 11. Provide the agency with data required by rule for the 410 review of certificate-of-need applications and the projection of 411 need for healthservices andfacilities in the district. 412 Section 9. Subsection (2) of section 408.034, Florida 413 Statutes, is amended to read: 414 408.034 Duties and responsibilities of agency; rules.— 415 (2) In the exercise of its authority to issue licenses to 416 health care facilities and health service providers, as provided 417 under chapters 393 and 395 and parts II, IV, and VIII of chapter 418 400, the agency may not issue a license to any health care 419 facility or health service provider that fails to receive a 420 certificate of need or an exemption for the licensed facility or 421 service, except that the agency may issue a license to a general 422 hospital that has not been issued a certificate of need. 423 Section 10. Effective July 1, 2024, subsection (2), as 424 amended by this act, and subsection (3) of section 408.034, 425 Florida Statutes, are amended to read: 426 408.034 Duties and responsibilities of agency; rules.— 427 (2) In the exercise of its authority to issue licenses to 428 health care facilities and health service providers, as provided 429 under chapterchapters393and 395and parts II, IV, and VIII of 430 chapter 400, the agency may not issue a license to any health 431 care facility or health service provider that fails to receive a 432 certificate of need or an exemption for the licensed facility or 433 service, except that the agency may issue a license to a general434hospital that has not been issued a certificate of need. 435 (3) The agency shall establish, by rule, uniform need 436 methodologies forhealth services andhealth facilities. In 437 developing uniform need methodologies, the agency shall, at a 438 minimum, consider the demographic characteristics of the 439 population, the health status of the population, service use 440 patterns, standards and trends, geographic accessibility, and 441 market economics. 442 Section 11. Section 408.035, Florida Statutes, is amended 443 to read: 444 408.035 Review criteria.— 445(1)The agency shall determine the reviewability of 446 applications and shall review applications for certificate-of 447 need determinations for health care facilities and health 448 services in context with the following criteria, except for449general hospitals as defined in s. 395.002: 450 (1)(a)The need for the health care facilities and health 451 services being proposed. 452 (2)(b)The availability, quality of care, accessibility, 453 and extent of utilization of existing health care facilities and 454 health services in the service district of the applicant. 455 (3)(c)The ability of the applicant to provide quality of 456 care and the applicant’s record of providing quality of care. 457 (4)(d)The availability of resources, including health 458 personnel, management personnel, and funds for capital and 459 operating expenditures, for project accomplishment and 460 operation. 461 (5)(e)The extent to which the proposed services will 462 enhance access to health care for residents of the service 463 district. 464 (6)(f)The immediate and long-term financial feasibility of 465 the proposal. 466 (7)(g)The extent to which the proposal will foster 467 competition that promotes quality and cost-effectiveness. 468 (8)(h)The costs and methods of the proposed construction, 469 including the costs and methods of energy provision and the 470 availability of alternative, less costly, or more effective 471 methods of construction. 472 (9)(i)The applicant’s past and proposed provision of 473 health care services to Medicaid patients and the medically 474 indigent. 475 (10)(j)The applicant’s designation as a Gold Seal Program 476 nursing facility pursuant to s. 400.235, when the applicant is 477 requesting additional nursing home beds at that facility. 478(2) For a general hospital, the agency shall consider only479the criteria specified in paragraph (1)(a), paragraph (1)(b),480except for quality of care in paragraph (1)(b), and paragraphs481(1)(e), (g), and (i).482 Section 12. Effective July 1, 2024, section 408.035, 483 Florida Statutes, as amended by this act, is amended to read: 484 408.035 Review criteria.—The agency shall determine the 485 reviewability of applications and shall review applications for 486 certificate-of-need determinations for health care facilities 487and health servicesin context with the following criteria: 488 (1) The need for the health care facilitiesand health489servicesbeing proposed. 490 (2) The availability, quality of care, accessibility, and 491 extent of utilization of existing health care facilitiesand492health servicesin the service district of the applicant. 493 (3) The ability of the applicant to provide quality of care 494 and the applicant’s record of providing quality of care. 495 (4) The availability of resources, including health 496 personnel, management personnel, and funds for capital and 497 operating expenditures, for project accomplishment and 498 operation. 499 (5) The extent to which the proposed services will enhance 500 access to health care for residents of the service district. 501 (6) The immediate and long-term financial feasibility of 502 the proposal. 503 (7) The extent to which the proposal will foster 504 competition that promotes quality and cost-effectiveness. 505 (8) The costs and methods of the proposed construction, 506 including the costs and methods of energy provision and the 507 availability of alternative, less costly, or more effective 508 methods of construction. 509 (9) The applicant’s past and proposed provision of health 510 care services to Medicaid patients and the medically indigent. 511 (10) The applicant’s designation as a Gold Seal Program 512 nursing facility pursuant to s. 400.235, when the applicant is 513 requesting additional nursing home beds at that facility. 514 Section 13. Paragraphs (b) and (c) of subsection (1) of 515 section 408.036, Florida Statutes, are amended to read: 516 408.036 Projects subject to review; exemptions.— 517 (1) APPLICABILITY.—Unless exempt under subsection (3), all 518 health-care-related projects, as described in paragraphs (a) 519 (f), are subject to review and must file an application for a 520 certificate of need with the agency. The agency is exclusively 521 responsible for determining whether a health-care-related 522 project is subject to review under ss. 408.031-408.045. 523 (b) The new construction or establishment of additional 524 health care facilities, except for the construction of or 525 establishment of a general hospital orincludinga replacement 526 health care facility when the proposed project site isnot527 located on the same site as or within 1 mile of the existing 528 health care facility,if the number of beds in each licensed bed 529 category will not increase. 530 (c) The conversion from one type of health care facility to 531 another, including the conversion from a general hospital or,a 532 specialty hospital, except that the conversion of a specialty 533 hospital to a general hospital is not subject to reviewor a534long-term care hospital. 535 Section 14. Effective July 1, 2024, section 408.036, 536 Florida Statutes, as amended by this act, is amended to read: 537 408.036 Projects subject to review; exemptions.— 538 (1) APPLICABILITY.—Unless exempt under subsection (3), all 539 health-care-related projects, as described in this subsection 540paragraphs (a)-(f), are subject to review and must file an 541 application for a certificate of need with the agency. The 542 agency is exclusively responsible for determining whether a 543 health-care-related project is subject to review under ss. 544 408.031-408.045. 545 (a) The addition of beds in community nursing homes or 546 intermediate care facilities for the developmentally disabled by 547 new construction or alteration. 548 (b) The new construction or establishment of additional 549 health care facilities, except forthe construction of or550establishment of a general hospital ora replacement health care 551 facility when the proposed project site is located on the same 552 site as or within 1 mile of the existing health care facility if 553 the number of beds in each licensed bed category will not 554 increase. 555 (c) The conversion from one type of health care facility to 556 another, including the conversion from a general hospital or a557specialtyhospitalexcept that the conversion ofa specialty558hospitaltoageneralhospitalis not subject to review. 559 (d) The establishment of a hospice or hospice inpatient 560 facility, except as provided in s. 408.043. 561(e)An increase in the number of beds for comprehensive562rehabilitation.563(f)The establishment of tertiary health services,564including inpatient comprehensive rehabilitation services.565 (2) PROJECTS SUBJECT TO EXPEDITED REVIEW.—Unless exempt 566 pursuant to subsection (3), the following projects are subject 567 to expedited review: 568 (a) Transfer of a certificate of need, except that when an569existing hospital is acquired by a purchaser, all certificates570of need issued to the hospital which are not yet operational571shall be acquired by the purchaser without need for a transfer. 572 (b) Replacement of a nursing home, if the proposed project 573 site is within a 30-mile radius of the replaced nursing home. If 574 the proposed project site is outside the subdistrict where the 575 replaced nursing home is located, the prior 6-month occupancy 576 rate for licensed community nursing homes in the proposed 577 subdistrict must be at least 85 percent in accordance with the 578 agency’s most recently published inventory. 579 (c) Replacement of a nursing home within the same district, 580 if the proposed project site is outside a 30-mile radius of the 581 replaced nursing home but within the same subdistrict or a 582 geographically contiguous subdistrict. If the proposed project 583 site is in the geographically contiguous subdistrict, the prior 584 6-month occupancy rate for licensed community nursing homes for 585 that subdistrict must be at least 85 percent in accordance with 586 the agency’s most recently published inventory. 587 (d) Relocation of a portion of a nursing home’s licensed 588 beds to another facility or to establish a new facility within 589 the same district or within a geographically contiguous 590 district, if the relocation is within a 30-mile radius of the 591 existing facility and the total number of nursing home beds in 592 the state does not increase. 593 (e) New construction of a community nursing home in a 594 retirement community as further provided in this paragraph. 595 1. Expedited review under this paragraph is available if 596 all of the following criteria are met: 597 a. The residential use area of the retirement community is 598 deed-restricted as housing for older persons as defined in s. 599 760.29(4)(b). 600 b. The retirement community is located in a county in which 601 25 percent or more of its population is age 65 and older. 602 c. The retirement community is located in a county that has 603 a rate of no more than 16.1 beds per 1,000 persons age 65 years 604 or older. The rate shall be determined by using the current 605 number of licensed and approved community nursing home beds in 606 the county per the agency’s most recent published inventory. 607 d. The retirement community has a population of at least 608 8,000 residents within the county, based on a population data 609 source accepted by the agency. 610 e. The number of proposed community nursing home beds in an 611 application does not exceed the projected bed need after 612 applying the rate of 16.1 beds per 1,000 persons aged 65 years 613 and older projected for the county 3 years into the future using 614 the estimates adopted by the agency reduced by the agency’s most 615 recently published inventory of licensed and approved community 616 nursing home beds in the county. 617 2. No more than 120 community nursing home beds shall be 618 approved for a qualified retirement community under each request 619 for expedited review. Subsequent requests for expedited review 620 under this process may not be made until 2 years after 621 construction of the facility has commenced or 1 year after the 622 beds approved through the initial request are licensed, 623 whichever occurs first. 624 3. The total number of community nursing home beds which 625 may be approved for any single deed-restricted community 626 pursuant to this paragraph may not exceed 240, regardless of 627 whether the retirement community is located in more than one 628 qualifying county. 629 4. Each nursing home facility approved under this paragraph 630 must be dually certified for participation in the Medicare and 631 Medicaid programs. 632 5. Each nursing home facility approved under this paragraph 633 must be at least 1 mile, as measured over publicly owned 634 roadways, from an existing approved and licensed community 635 nursing home. 636 6. A retirement community requesting expedited review under 637 this paragraph shall submit a written request to the agency for 638 expedited review. The request must include the number of beds to 639 be added and provide evidence of compliance with the criteria 640 specified in subparagraph 1. 641 7. After verifying that the retirement community meets the 642 criteria for expedited review specified in subparagraph 1., the 643 agency shall publicly notice in the Florida Administrative 644 Register that a request for an expedited review has been 645 submitted by a qualifying retirement community and that the 646 qualifying retirement community intends to make land available 647 for the construction and operation of a community nursing home. 648 The agency’s notice must identify where potential applicants can 649 obtain information describing the sales price of, or terms of 650 the land lease for, the property on which the project will be 651 located and the requirements established by the retirement 652 community. The agency notice must also specify the deadline for 653 submission of the certificate-of-need application, which may not 654 be earlier than the 91st day or later than the 125th day after 655 the date the notice appears in the Florida Administrative 656 Register. 657 8. The qualified retirement community shall make land 658 available to applicants it deems to have met its requirements 659 for the construction and operation of a community nursing home 660 but may sell or lease the land only to the applicant that is 661 issued a certificate of need by the agency under this paragraph. 662 a. A certificate-of-need application submitted under this 663 paragraph must identify the intended site for the project within 664 the retirement community and the anticipated costs for the 665 project based on that site. The application must also include 666 written evidence that the retirement community has determined 667 that both the provider submitting the application and the 668 project satisfy its requirements for the project. 669 b. If the retirement community determines that more than 670 one provider satisfies its requirements for the project, it may 671 notify the agency of the provider it prefers. 672 9. The agency shall review each submitted application. If 673 multiple applications are submitted for a project published 674 pursuant to subparagraph 7., the agency shall review the 675 competing applications. 676 677 The agency shall develop rules to implement the expedited review 678 process, including time schedule, application content that may 679 be reduced from the full requirements of s. 408.037(1), and 680 application processing. 681 (3) EXEMPTIONS.—Upon request, the following projects are 682 subject to exemption fromthe provisions ofsubsection (1): 683 (a) For hospice servicesor for swing beds in a rural684hospital, as defined in s. 395.602, in a number that does not685exceed one-half of its licensed beds,or for a hospice program 686 established by an entity that shares a controlling interest, as 687 defined in s. 408.803, with a not-for-profit retirement 688 community that offers independent living, assisted living, and 689 skilled nursing services provided in a facility on the same 690 premises and designated by the agency as a teaching nursing home 691 for a minimum of 5 years, in accordance with s. 430.80. Only one 692 hospice program per teaching nursing home may be established 693 under the exemption in this paragraph, and such program shall be 694 limited to serving patients residing in communities located 695 within the not-for-profit retirement community, including home 696 and community-based service providers. 697(b)For the conversion of licensed acute care hospital beds698to Medicare and Medicaid certified skilled nursing beds in a699rural hospital, as defined in s. 395.602, so long as the700conversion of the beds does not involve the construction of new701facilities. The total number of skilled nursing beds, including702swing beds, may not exceed one-half of the total number of703licensed beds in the rural hospital as of July 1, 1993.704Certified skilled nursing beds designated under this paragraph,705excluding swing beds, shall be included in the community nursing706home bed inventory. A rural hospital that subsequently707decertifies any acute care beds exempted under this paragraph708shall notify the agency of the decertification, and the agency709shall adjust the community nursing home bed inventory710accordingly.711 (b)(c)For the addition of nursing home beds at a skilled 712 nursing facility that is part of a retirement community that 713 provides a variety of residential settings and supportive 714 services and that has been incorporated and operated in this 715 state for at least 65 years on or before July 1, 1994. All 716 nursing home beds must not be available to the public but must 717 be for the exclusive use of the community residents. 718 (c)(d)For an inmate health care facility built by or for 719 the exclusive use of the Department of Corrections as provided 720 in chapter 945. This exemption expires when such facility is 721 converted to other uses. 722 (d)(e)For the addition of nursing home beds licensed under 723 chapter 400 in a number not exceeding 30 total beds or 25 724 percent of the number of beds licensed in the facility being 725 replaced under paragraph (2)(b), paragraph (2)(c), or paragraph 726 (i)(m), whichever is less. 727 (e)(f)For state veterans’ nursing homes operated by or on 728 behalf of the Florida Department of Veterans’ Affairs in 729 accordance with part II of chapter 296 for which at least 50 730 percent of the construction cost is federally funded and for 731 which the Federal Government pays a per diem rate not to exceed 732 one-half of the cost of the veterans’ care in such state nursing 733 homes. These beds shall not be included in the nursing home bed 734 inventory. 735 (f)(g)For combination within one nursing home facility of 736 the beds or services authorized by two or more certificates of 737 need issued in the same planning subdistrict. An exemption 738 granted under this paragraph shall extend the validity period of 739 the certificates of need to be consolidated by the length of the 740 period beginning upon submission of the exemption request and 741 ending with issuance of the exemption. The longest validity 742 period among the certificates shall be applicable to each of the 743 combined certificates. 744 (g)(h)For division into two or more nursing home 745 facilities of beds or services authorized by one certificate of 746 need issued in the same planning subdistrict. An exemption 747 granted under this paragraph shall extend the validity period of 748 the certificate of need to be divided by the length of the 749 period beginning upon submission of the exemption request and 750 ending with issuance of the exemption. 751(i)For the addition of hospital beds licensed under752chapter 395 for comprehensive rehabilitation in a number that753may not exceed 10 total beds or 10 percent of the licensed754capacity, whichever is greater.7551.In addition to any other documentation otherwise756required by the agency, a request for exemption submitted under757this paragraph must:758a.Certify that the prior 12-month average occupancy rate759for the licensed beds being expanded meets or exceeds 80760percent.761b.Certify that the beds have been licensed and operational762for at least 12 months.7632.The timeframes and monitoring process specified in s.764408.040(2)(a)-(c) apply to any exemption issued under this765paragraph.7663.The agency shall count beds authorized under this767paragraph as approved beds in the published inventory of768hospital beds until the beds are licensed.769 (h)(j)For the addition of nursing home beds licensed under 770 chapter 400 in a number not exceeding 10 total beds or 10 771 percent of the number of beds licensed in the facility being 772 expanded, whichever is greater; or, for the addition of nursing 773 home beds licensed under chapter 400 at a facility that has been 774 designated as a Gold Seal nursing home under s. 400.235 in a 775 number not exceeding 20 total beds or 10 percent of the number 776 of licensed beds in the facility being expanded, whichever is 777 greater. 778 1. In addition to any other documentation required by the 779 agency, a request for exemption submitted under this paragraph 780 must certify that: 781 a. The facility has not had any class I or class II 782 deficiencies within the 30 months preceding the request. 783 b. The prior 12-month average occupancy rate for the 784 nursing home beds at the facility meets or exceeds 94 percent. 785 c. Any beds authorized for the facility under this 786 paragraph before the date of the current request for an 787 exemption have been licensed and operational for at least 12 788 months. 789 2. The timeframes and monitoring process specified in s. 790 408.040(2)(a)-(c) apply to any exemption issued under this 791 paragraph. 792 3. The agency shall count beds authorized under this 793 paragraph as approved beds in the published inventory of nursing 794 home beds until the beds are licensed. 795(k)For the establishment of:7961.A Level II neonatal intensive care unit with at least 10797beds, upon documentation to the agency that the applicant798hospital had a minimum of 1,500 births during the previous 12799months;8002.A Level III neonatal intensive care unit with at least80115 beds, upon documentation to the agency that the applicant802hospital has a Level II neonatal intensive care unit of at least80310 beds and had a minimum of 3,500 births during the previous 12804months; or8053.A Level III neonatal intensive care unit with at least 5806beds, upon documentation to the agency that the applicant807hospital is a verified trauma center pursuant to s.808395.4001(15), and has a Level II neonatal intensive care unit,809 810if the applicant demonstrates that it meets the requirements for811quality of care, nurse staffing, physician staffing, physical812plant, equipment, emergency transportation, and data reporting813found in agency certificate-of-need rules for Level II and Level814III neonatal intensive care units and if the applicant commits815to the provision of services to Medicaid and charity patients at816a level equal to or greater than the district average. Such a817commitment is subject to s. 408.040.818(l)For the addition of mental health services or beds if819the applicant commits to providing services to Medicaid or820charity care patients at a level equal to or greater than the821district average. Such a commitment is subject to s. 408.040.822 (i)(m)For replacement of a licensed nursing home on the 823 same site, or within 5 miles of the same site if within the same 824 subdistrict, if the number of licensed beds does not increase 825 except as permitted under paragraph (d)(e). 826 (j)(n)For consolidation or combination of licensed nursing 827 homes or transfer of beds between licensed nursing homes within 828 the same planning district, by nursing homes with any shared 829 controlled interest within that planning district, if there is 830 no increase in the planning district total number of nursing 831 home beds and the site of the relocation is not more than 30 832 miles from the original location. 833 (k)(o)For beds in state mental health treatment facilities 834 defined in s. 394.455 and state mental health forensic 835 facilities operated under chapter 916. 836 (l)(p)For beds in state developmental disabilities centers 837 as defined in s. 393.063. 838 (m)(q)For the establishment of a health care facility or 839 project that meets all of the following criteria: 840 1. The applicant was previously licensed within the past 21 841 days as a health care facility or provider that is subject to 842 subsection (1). 843 2. The applicant failed to submit a renewal application and 844 the license expired on or after January 1, 2015. 845 3. The applicant does not have a license denial or 846 revocation action pending with the agency at the time of the 847 request. 848 4. The applicant’s request is for the same service type, 849 district, service area, and site for which the applicant was 850 previously licensed. 851 5. The applicant’s request, if applicable, includes the 852 same number and type of beds as were previously licensed. 853 6. The applicant agrees to the same conditions that were 854 previously imposed on the certificate of need or on an exemption 855 related to the applicant’s previously licensed health care 856 facility or project. 857 7. The applicant applies for initial licensure as required 858 under s. 408.806 within 21 days after the agency approves the 859 exemption request. If the applicant fails to apply in a timely 860 manner, the exemption expires on the 22nd day following the 861 agency’s approval of the exemption. 862 863Notwithstanding subparagraph 1., an applicant whose license864expired between January 1, 2015, and the effective date of this865act may apply for an exemption within 30 days of this act866becoming law.867 (4) REQUESTS FOR EXEMPTION.—A request for exemption under 868 subsection (3) may be made at any time and is not subject to the 869 batching requirements of this section. The request shall be 870 supported by such documentation as the agency requires by rule. 871 The agency shall assess a fee of $250 for each request for 872 exemption submitted under subsection (3). 873 (5) NOTIFICATION.—Health care facilities and providers must 874 provide to the agency notification of:875(a)replacement of a health care facility when the proposed 876 project site is located in the same district and on the existing 877 site or within a 1-mile radius of the replaced health care 878 facility, if the number and type of beds do not increase. 879(b)The termination of a health care service, upon 30 days’880written notice to the agency.881(c)The addition or delicensure of beds.Notificationunder882this subsectionmay be made by electronic, facsimile, or written 883 means at any time before the described action has been taken. 884 Section 15. Effective July 1, 2024, section 408.0361, 885 Florida Statutes, is repealed. 886 Section 16. Section 408.037, Florida Statutes, is amended 887 to read: 888 408.037 Application content.— 889 (1)Except as provided in subsection (2) for a general890hospital,An application for a certificate of need must contain: 891 (a) A detailed description of the proposed project and 892 statement of its purpose and need in relation to the district 893 health plan. 894 (b) A statement of the financial resources needed by and 895 available to the applicant to accomplish the proposed project. 896 This statement must include: 897 1. A complete listing of all capital projects, including 898 new health facility development projects and health facility 899 acquisitions applied for, pending, approved, or underway in any 900 state at the time of application, regardless of whether or not 901 that state has a certificate-of-need program or a capital 902 expenditure review program pursuant to s. 1122 of the Social 903 Security Act. The agency may, by rule, require less-detailed 904 information from major health care providers. This listing must 905 include the applicant’s actual or proposed financial commitment 906 to those projects and an assessment of their impact on the 907 applicant’s ability to provide the proposed project. 908 2. A detailed listing of the needed capital expenditures, 909 including sources of funds. 910 3. A detailed financial projection, including a statement 911 of the projected revenue and expenses for the first 2 years of 912 operation after completion of the proposed project. This 913 statement must include a detailed evaluation of the impact of 914 the proposed project on the cost of other services provided by 915 the applicant. 916 (c) An audited financial statement of the applicant or the 917 applicant’s parent corporation if audited financial statements 918 of the applicant do not exist. In an application submitted by an 919 existing health care facility, health maintenance organization, 920 or hospice, financial condition documentation must include, but 921 need not be limited to, a balance sheet and a profit-and-loss 922 statement of the 2 previous fiscal years’ operation. 923(2) An application for a certificate of need for a general924hospital must contain a detailed description of the proposed925general hospital project and a statement of its purpose and the926needs it will meet. The proposed project’s location, as well as927its primary and secondary service areas, must be identified by928zip code. Primary service area is defined as the zip codes from929which the applicant projects that it will draw 75 percent of its930discharges. Secondary service area is defined as the zip codes931from which the applicant projects that it will draw its932remaining discharges. If, subsequent to issuance of a final933order approving the certificate of need, the proposed location934of the general hospital changes or the primary service area935materially changes, the agency shall revoke the certificate of936need. However, if the agency determines that such changes are937deemed to enhance access to hospital services in the service938district, the agency may permit such changes to occur. A party939participating in the administrative hearing regarding the940issuance of the certificate of need for a general hospital has941standing to participate in any subsequent proceeding regarding942the revocation of the certificate of need for a hospital for943which the location has changed or for which the primary service944area has materially changed. In addition, the application for945the certificate of need for a general hospital must include a946statement of intent that, if approved by final order of the947agency, the applicant shall within 120 days after issuance of948the final order or, if there is an appeal of the final order,949within 120 days after the issuance of the court’s mandate on950appeal, furnish satisfactory proof of the applicant’s financial951ability to operate. The agency shall establish documentation952requirements, to be completed by each applicant, which show953anticipated provider revenues and expenditures, the basis for954financing the anticipated cash-flow requirements of the955provider, and an applicant’s access to contingency financing. A956party participating in the administrative hearing regarding the957issuance of the certificate of need for a general hospital may958provide written comments concerning the adequacy of the959financial information provided, but such party does not have960standing to participate in an administrative proceeding961regarding proof of the applicant’s financial ability to operate.962The agency may require a licensee to provide proof of financial963ability to operate at any time if there is evidence of financial964instability, including, but not limited to, unpaid expenses965necessary for the basic operations of the provider.966 (2)(3)The applicant must certify that it will license and 967 operate the health care facility. For an existing health care 968 facility, the applicant must be the licenseholder of the 969 facility. 970 Section 17. Paragraphs (c) and (d) of subsection (3), 971 paragraphs (b) and (c) of subsection (5), and paragraph (d) of 972 subsection (6) of section 408.039, Florida Statutes, are amended 973 to read: 974 408.039 Review process.—The review process for certificates 975 of need shall be as follows: 976 (3) APPLICATION PROCESSING.— 977(c) Except for competing applicants, in order to be978eligible to challenge the agency decision on a general hospital979application under review pursuant to paragraph (5)(c), existing980hospitals must submit a detailed written statement of opposition981to the agency and to the applicant. The detailed written982statement must be received by the agency and the applicant983within 21 days after the general hospital application is deemed984complete and made available to the public.985(d) In those cases where a written statement of opposition986has been timely filed regarding a certificate of need987application for a general hospital, the applicant for the988general hospital may submit a written response to the agency.989Such response must be received by the agency within 10 days of990the written statement due date.991 (5) ADMINISTRATIVE HEARINGS.— 992 (b) Hearings shall be held in Tallahassee unless the 993 administrative law judge determines that changing the location 994 will facilitate the proceedings. The agency shall assign 995 proceedings requiring hearings to the Division of Administrative 996 Hearings of the Department of Management Services within 10 days 997 after the time has expired for requesting a hearing. Except upon 998 unanimous consent of the parties or upon the granting by the 999 administrative law judge of a motion of continuance, hearings 1000 shall commence within 60 days after the administrative law judge 1001 has been assigned.For an application for a general hospital,1002administrative hearings shall commence within 6 months after the1003administrative law judge has been assigned, and a continuance1004may not be granted absent a finding of extraordinary1005circumstances by the administrative law judge.All parties, 1006 except the agency, shall bear their own expense of preparing a 1007 transcript. In any application for a certificate of need which 1008 is referred to the Division of Administrative Hearings for 1009 hearing, the administrative law judge shall complete and submit 1010 to the parties a recommended order as provided in ss. 120.569 1011 and 120.57. The recommended order shall be issued within 30 days 1012 after the receipt of the proposed recommended orders or the 1013 deadline for submission of such proposed recommended orders, 1014 whichever is earlier. The division shall adopt procedures for 1015 administrative hearings which shall maximize the use of 1016 stipulated facts and shall provide for the admission of prepared 1017 testimony. 1018 (c) In administrative proceedings challenging the issuance 1019 or denial of a certificate of need, only applicants considered 1020 by the agency in the same batching cycle are entitled to a 1021 comparative hearing on their applications. Existing health care 1022 facilities may initiate or intervene in an administrative 1023 hearing upon a showing that an established program will be 1024 substantially affected by the issuance of any certificate of 1025 need, whether reviewed under s. 408.036(1) or (2), to a 1026 competing proposed facility or program within the same district. 1027With respect to an application for a general hospital, competing1028applicants and only those existing hospitals that submitted a1029detailed written statement of opposition to an application as1030provided in this paragraph may initiate or intervene in an1031administrative hearing. Such challenges to a general hospital1032application shall be limited in scope to the issues raised in1033the detailed written statement of opposition that was provided1034to the agency. The administrative law judge may, upon a motion1035showing good cause, expand the scope of the issues to be heard1036at the hearing. Such motion shall include substantial and1037detailed facts and reasons for failure to include such issues in1038the original written statement of opposition.1039 (6) JUDICIAL REVIEW.— 1040(d) The party appealing a final order that grants a general1041hospital certificate of need shall pay the appellee’s attorney’s1042fees and costs, in an amount up to $1 million, from the1043beginning of the original administrative action if the appealing1044party loses the appeal, subject to the following limitations and1045requirements:10461. The party appealing a final order must post a bond in1047the amount of $1 million in order to maintain the appeal.10482. Except as provided under s. 120.595(5), in no event1049shall the agency be held liable for any other party’s attorney’s1050fees or costs.1051 Section 18. Subsection (1) of section 408.043, Florida 1052 Statutes, is amended to read: 1053 408.043 Special provisions.— 1054(1) OSTEOPATHIC ACUTE CARE HOSPITALS.—When an application1055is made for a certificate of need to construct or to expand an1056osteopathic acute care hospital, the need for such hospital1057shall be determined on the basis of the need for and1058availability of osteopathic services and osteopathic acute care1059hospitals in the district. When a prior certificate of need to1060establish an osteopathic acute care hospital has been issued in1061a district, and the facility is no longer used for that purpose,1062the agency may continue to count such facility and beds as an1063existing osteopathic facility in any subsequent application for1064construction of an osteopathic acute care hospital.1065 Section 19. Subsection (3) of section 408.808, Florida 1066 Statutes, is amended to read: 1067 408.808 License categories.— 1068 (3) INACTIVE LICENSE.—An inactive license may be issued to 1069 a hospital or a health care provider subject to the certificate 1070 of-need provisions in part I of this chapter when the provider 1071 is currently licensed, does not have a provisional license, and 1072 will be temporarily unable to provide services but is reasonably 1073 expected to resume services within 12 months. Such designation 1074 may be made for a period not to exceed 12 months but may be 1075 renewed by the agency for up to 12 additional months upon 1076 demonstration by the licensee of the provider’s progress toward 1077 reopening. However, if after 20 months in an inactive license 1078 status, a statutory rural hospital, as defined in s. 395.602, 1079 has demonstrated progress toward reopening, but may not be able 1080 to reopen prior to the inactive license expiration date, the 1081 inactive designation may be renewed again by the agency for up 1082 to 12 additional months. For purposes of such a second renewal, 1083 if construction or renovation is required, the licensee must 1084 have had plans approved by the agency and construction must have 1085 already commenced pursuant to s. 408.032(4); however, if 1086 construction or renovation is not required, the licensee must 1087 provide proof of having made an enforceable capital expenditure 1088 greater than 25 percent of the total costs associated with the 1089 hiring of staff and the purchase of equipment and supplies 1090 needed to operate the facility upon opening. A request by a 1091 licensee for an inactive license or to extend the previously 1092 approved inactive period must be submitted to the agency and 1093 must include a written justification for the inactive license 1094 with the beginning and ending dates of inactivity specified, a 1095 plan for the transfer of any clients to other providers, and the 1096 appropriate licensure fees. The agency may not accept a request 1097 that is submitted after initiating closure, after any suspension 1098 of service, or after notifying clients of closure or suspension 1099 of service, unless the action is a result of a disaster at the 1100 licensed premises. For the purposes of this section, the term 1101 “disaster” means a sudden emergency occurrence beyond the 1102 control of the licensee, whether natural, technological, or 1103 manmade, which renders the provider inoperable at the premises. 1104 Upon agency approval, the provider shall notify clients of any 1105 necessary discharge or transfer as required by authorizing 1106 statutes or applicable rules. The beginning of the inactive 1107 license period is the date the provider ceases operations. The 1108 end of the inactive license period shall become the license 1109 expiration date. All licensure fees must be current, must be 1110 paid in full, and may be prorated. Reactivation of an inactive 1111 license requires the approval of a renewal application, 1112 including payment of licensure fees and agency inspections 1113 indicating compliance with all requirements of this part, 1114 authorizing statutes, and applicable rules. 1115 Section 20. Except as otherwise expressly provided in this 1116 act, this act shall take effect July 1, 2021.