Bill Text: FL S1260 | 2022 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Independent Hospital Districts
Spectrum: Bipartisan Bill
Status: (Enrolled - Dead) 2022-03-08 - Ordered engrossed, then enrolled [S1260 Detail]
Download: Florida-2022-S1260-Comm_Sub.html
Bill Title: Independent Hospital Districts
Spectrum: Bipartisan Bill
Status: (Enrolled - Dead) 2022-03-08 - Ordered engrossed, then enrolled [S1260 Detail]
Download: Florida-2022-S1260-Comm_Sub.html
Florida Senate - 2022 CS for SB 1260 By the Committee on Community Affairs; and Senator Gruters 578-02648-22 20221260c1 1 A bill to be entitled 2 An act relating to independent hospital districts; 3 creating s. 189.0762, F.S.; defining the terms 4 “independent hospital district” and “nonprofit 5 entity”; authorizing the governing body of an 6 independent hospital district to evaluate certain 7 benefits of the potential conversion of the 8 independent hospital district to a nonprofit entity 9 under certain circumstances; specifying requirements 10 for such evaluations; requiring that the evaluation be 11 completed and the final report be presented to the 12 governing body within a specified timeframe; requiring 13 the report to be published on the independent hospital 14 district’s website; providing requirements for the 15 report; requiring the governing body to make certain 16 determinations within a specified timeframe; requiring 17 the governing body to negotiate and complete an 18 agreement with the board of county commissioners for 19 each affected county before converting the independent 20 hospital district to a nonprofit entity; requiring 21 that such agreements be entered into within a 22 specified timeframe; providing requirements for such 23 agreements; prohibiting members of the board of county 24 commissioners for counties party to such agreements 25 from serving on the board of the successor nonprofit 26 entity; allowing members of the governing body of the 27 independent hospital district to serve on the board of 28 the successor nonprofit entity; requiring members of 29 the governing body and each board of county 30 commissioners party to the agreement to disclose all 31 conflicts of interest; requiring the evaluation, all 32 agreements and disclosures, and any other supporting 33 documents related to the conversion to be published on 34 the websites of the independent hospital district and 35 each county that is party to the agreement for a 36 specified timeframe before the district and each 37 county may vote on the proposed conversion; providing 38 for the conversion of the independent hospital 39 district to a nonprofit entity; providing public 40 meeting requirements; requiring the independent 41 hospital district to notify the Department of Health 42 of the transfer of assets and liabilities to the 43 nonprofit entity within a specified timeframe; 44 providing for dissolution of the district upon the 45 department’s receipt of such notification; providing 46 that an independent hospital district continues to 47 exist if the governing body and the board of county 48 commissioners for each affected county are unable to 49 reach an agreement; providing an effective date. 50 51 Be It Enacted by the Legislature of the State of Florida: 52 53 Section 1. Section 189.0762, Florida Statutes, is created 54 to read: 55 189.0762 Conversion of an independent hospital district to 56 a nonprofit entity.— 57 (1) For purposes of this section, the term: 58 (a) “Independent hospital district” means an entity created 59 pursuant to a special act which operates one or more hospitals 60 licensed under chapter 395 and which is governed by the 61 governing body of a special district or by the board of trustees 62 of a public health trust created under s. 154.07. 63 (b) “Nonprofit entity” means a Florida not-for-profit 64 corporation operating under chapter 617. 65 (2) The governing body of an independent hospital district 66 may elect, by a majority vote plus one, to commence an 67 evaluation of the benefits to the residents of converting the 68 independent hospital district to a nonprofit entity if the 69 governing body of such district and each county within which any 70 part of the district’s boundaries are located execute an 71 agreement that meets the requirements of subsection (4). In 72 evaluating the benefits of converting the independent hospital 73 district to a nonprofit entity, the governing body of the 74 district must: 75 (a) Publish notice of and conduct a public hearing in 76 accordance with s. 189.015(1) to provide the residents of such 77 district the opportunity to publicly testify regarding the 78 conversion of the independent hospital district. The public 79 hearing must be held at a meeting other than a regularly noticed 80 meeting of the independent hospital district or an emergency 81 meeting of such district. 82 (b) Contract with an independent entity that has at least 5 83 years of experience conducting comparable evaluations of 84 hospital organizations similar in size and function to the 85 independent hospital district to conduct the evaluation 86 according to applicable industry best practices. The independent 87 entity may not have any affiliation with or financial 88 involvement in the district or with any member of the governing 89 body of such district. 90 (c) Publish all documents considered by the governing body 91 of the independent hospital district on the website of the 92 district. 93 (3) The evaluation must be completed and the final report 94 presented to the governing body of the independent hospital 95 district no later than 180 days after the date of the vote taken 96 by the governing body of such district to evaluate the 97 conversion. The final report must be published on the website of 98 the independent hospital district. The final report must include 99 a statement signed by the presiding officer of the governing 100 board of the independent hospital district and the chief 101 executive officer of the independent entity conducting the 102 evaluation that, upon each person’s reasonable knowledge and 103 belief, the contents and conclusions of the evaluation are true 104 and correct. 105 (4) No later than 120 days after the date the governing 106 body of the independent hospital district received the final 107 report, the governing body of such district must determine, by 108 majority vote plus one, whether the interests of the residents 109 of the district are best served by converting the independent 110 hospital district to a nonprofit entity. If the governing body 111 of the independent hospital district determines conversion is in 112 the best interest of the district, the independent hospital 113 district must negotiate and complete an agreement with the board 114 of county commissioners for each county in which any part of the 115 district boundaries are located before conversion may occur. 116 (5) An agreement between the governing body of the 117 independent hospital district and each county in which any part 118 of the district boundary is located must be completed no later 119 than 120 days after the date of the public meeting at which the 120 governing body of such district determines conversion of the 121 independent hospital district is in the best interest of its 122 residents. The agreement must be in writing, dispose of all 123 assets and liabilities of the independent hospital district, and 124 include: 125 (a) A description of each asset that will be transferred to 126 each county. 127 (b) A description of each liability that will be 128 transferred to each county. 129 (c) The estimated total value of the assets that will be 130 transferred to each county. 131 (d) The estimated total value of the liabilities that will 132 be transferred to each county. 133 (e) If the agreement is with more than one county, a 134 description of the methodology used to allocate the assets and 135 liabilities of the district between the counties. 136 (f) A description of all assets that will be transferred to 137 the succeeding nonprofit entity. 138 (g) A description of all liabilities that will be assumed 139 by the succeeding nonprofit entity. 140 (h) The estimated total value of the assets that will be 141 transferred to the succeeding nonprofit entity. 142 (i) The total value of the liabilities to be assumed by the 143 succeeding nonprofit entity. 144 (j) If any debts remain, how those debts will be resolved. 145 (k) An enforceable commitment that programs and services 146 provided by the district will continue to be provided to all 147 residents of the former district in perpetuity so long as the 148 nonprofit entity is in operation, or if otherwise agreed to 149 between the independent hospital district and the county or 150 counties party to the agreement, until the nonprofit entity has 151 otherwise met all obligations set forth in the agreement. 152 (l) A provision transferring the rights and obligations as 153 agreed to between the governing body of the independent hospital 154 district and the county or counties to the successor nonprofit 155 entity. 156 (m) Any other terms mutually agreed to between the 157 governing body of the independent hospital district and the 158 county or counties. 159 (6)(a) No member of the board of county commissioners for 160 any county that is a party to the agreement may serve on the 161 board of the successor nonprofit entity. 162 (b) Members of the governing body of the independent 163 hospital district may serve on the board of the successor 164 nonprofit entity. 165 (7) The members of the governing body of the independent 166 hospital district and of the board of county commissioners in 167 each county party to the agreement must disclose all conflicts 168 of interest as required by s. 112.313, including, but not 169 limited to: 170 (a) Whether the conversion of the independent hospital 171 district will result in a special private gain or loss to any 172 member of the governing body of the independent hospital 173 district or boards of county commissioners or to any senior 174 executives of the independent hospital district. 175 (b) If any member of the governing body of the independent 176 hospital district will serve on the board of the successor 177 nonprofit entity. Such intent to serve on the board of the 178 successor nonprofit entity does not disqualify any member from 179 voting on the proposed conversion. 180 (8) The evaluation, agreements, disclosures, and any other 181 supporting documents related to the conversion of the 182 independent hospital district must be published on the website 183 of the independent hospital district and each county that is a 184 party to the agreement for 20 days before the governing body of 185 the independent hospital district and the board of county 186 commissioners for each county may vote on the proposed 187 conversion. 188 (9)(a) In a public meeting noticed as required by 189 subsection (2), the governing body of the independent hospital 190 district may approve, by majority vote plus one, the conversion 191 of such district to a nonprofit entity and any agreements 192 related to the conversion. 193 (b) The agreement negotiated under this section must be 194 approved by each board of county commissioners for each affected 195 county in a properly noticed public meeting. 196 (c) If the governing body of the independent hospital 197 district and the board of county commissioners for each affected 198 county approve the proposed agreement, a referendum of the 199 qualified voters of the district must be conducted at the next 200 general election as required under s. 100.031 for independent 201 hospital districts that exercise ad valorem taxing powers. A 202 referendum is not required for independent hospital districts 203 that do not exercise ad valorem taxing powers. 204 (d) If approved by the qualified electors of the 205 independent hospital district voting in a referendum conducted 206 in accordance with paragraph (c), the agreement between the 207 independent hospital district and each board of county 208 commissioners for each affected county shall go into full force 209 and effect. The independent hospital district shall file a copy 210 of the agreement with the department no later than 10 days after 211 the date of the referendum approving the agreement and 212 conversion. 213 (10) No later than 30 days after the complete transfer of 214 assets and liabilities as provided in the agreement, the 215 independent hospital district shall notify the department. The 216 district shall be dissolved automatically upon receipt of the 217 notice by the department. 218 (11) If the governing body of the independent hospital 219 district and the board of county commissioners of each affected 220 county are unable to reach an agreement that would result in the 221 conversion of the independent hospital district to a nonprofit 222 entity, the district shall continue to exist. 223 Section 2. This act shall take effect July 1, 2022.