Bill Text: FL S1260 | 2022 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Independent Hospital Districts

Spectrum: Bipartisan Bill

Status: (Enrolled - Dead) 2022-03-08 - Ordered engrossed, then enrolled [S1260 Detail]

Download: Florida-2022-S1260-Engrossed.html

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       CS for SB 1260                             First Engrossed (ntc)
       
       
       
       
       
       
       
       
       20221260e1
       
    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 45 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.