Bill Text: FL S2752 | 2010 | Regular Session | Engrossed
Bill Title: Citrus County [EPSC]
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2010-04-30 - Died on Calendar [S2752 Detail]
Download: Florida-2010-S2752-Engrossed.html
CS for SB 2752 First Engrossed 20102752e1 1 A bill to be entitled 2 An act relating to Citrus County; providing for 3 codification of special laws relating to the Citrus 4 County Hospital Board, an independent special district 5 in Citrus County; providing legislative intent; 6 codifying, amending, and reenacting chapter 99-442, 7 Laws of Florida, as amended, as the “Citrus County 8 Hospital and Medical Nursing and Convalescent Home 9 Act”; deleting obsolete provisions; making technical 10 revisions; repealing prior special acts relating to 11 board; authorizing the board to enter into a lease or 12 contract with a not-for-profit corporation for the 13 purpose of operating and managing the hospital and its 14 facilities; providing requirements for such lease or 15 contract; declaring a need for governance authority to 16 fulfill the hospital board’s public responsibilities; 17 providing for a board of directors; providing for 18 membership; requiring that the not-for-profit 19 corporation conform all governance documents to 20 certain requirements, if necessary; providing for 21 committees; requiring that the not-for-profit 22 corporation’s executive committee resolve medical 23 liability issues; requiring that the not-for-profit 24 corporation separately account for the expenditure of 25 all ad valorem tax moneys provided by the Citrus 26 County Hospital Board; requiring that the expenditure 27 of all public tax funds be approved in a public 28 meeting and maintained in a separate account; 29 providing for the hospital board’s approval or 30 rejection of the not-for-profit corporation’s Articles 31 of Incorporation or Bylaws, selection of a new chief 32 executive officer or renewal of his or her employment 33 contract, the annual operating and capital budgets, 34 additional loan indebtedness or leases in excess of a 35 specified amount, and the not-for-profit corporation’s 36 policies for travel reimbursements and contract bid 37 procedures; providing that all records of the not-for 38 profit corporation are public records unless exempt; 39 providing that any dispute between the hospital board 40 and the not-for-profit corporation is subject to court 41 action; providing for interpretation and 42 implementation of the act and for court enforcement; 43 repealing chapters 99-442 and 2001-308, Laws of 44 Florida, relating to the Citrus County Hospital Board; 45 providing for severability; providing for application 46 of the act; providing an effective date. 47 48 WHEREAS, the Citrus County Hospital Board was created by 49 the Legislature in 1949 as a special taxing district and a 50 public nonprofit corporation for the purpose of operating public 51 hospitals, medical nursing homes, and convalescent homes in 52 Citrus County, and 53 WHEREAS, in 1987 the hospital board incorporated a not-for 54 profit management corporation, and in 1990 entered into a lease 55 agreement with the not-for-profit corporation pursuant to s. 56 155.40, Florida Statutes, leasing all public assets, operations, 57 and management of Citrus Memorial Hospital, and 58 WHEREAS, meaningful oversight by the hospital board is 59 necessitated in light of the not-for-profit corporation’s status 60 as an instrumentality of the hospital district, and 61 WHEREAS, restoration of the hospital board’s representation 62 on the board of the lessee corporation, and implementation of 63 appropriate accountability and oversight by the hospital board, 64 are necessitated in order to ensure corporate sovereign immunity 65 status of the not-for-profit corporation as an instrumentality 66 of the hospital district, and 67 WHEREAS, the ability of the hospital board to continue to 68 act in the public interest on behalf of the taxpayers of Citrus 69 County requires mechanisms to ensure adherence to the hospital 70 board’s public responsibilities, as well as express authority 71 for judicial interpretation and enforcement of this act through 72 declaratory proceedings and other appropriate judicial remedies, 73 and 74 WHEREAS, this act provides an appropriate and effective 75 means of addressing the lessee’s performance of its 76 responsibilities to the public and to the taxpayers of Citrus 77 County, NOW, THEREFORE, 78 79 Be It Enacted by the Legislature of the State of Florida: 80 81 Section 1. This act constitutes the codification of all 82 special acts relating to the Citrus County Hospital Board. It is 83 the intent of the Legislature in enacting this law to provide a 84 single comprehensive special act charter for the district, 85 including all current authority granted to the district by its 86 several legislative enactments. 87 Section 2. Chapters 99-442 and 2001-308, Laws of Florida, 88 relating to the Citrus County Hospital Board, are codified, 89 reenacted, and amended to read: 90 Section 1. This act shall be known and may be cited as the 91 “Citrus County Hospital and Medical Nursing and Convalescent 92 Home Act.” 93 Section 2. As used in this act, the words and terms shall 94 have the following meanings: 95 (a) The term “Citrus County Hospital Board” or the word 96 “board” shall mean the Citrus County Hospital Board. 97 (b) The word “county” shall mean the County of Citrus, in 98 the State of Florida. 99 (c) The word “state” shall mean the State of Florida. 100 (d) The word “property” shall mean the real and personal 101 property of every nature whatsoever. 102 (e) The word “operate” shall include build, construct, 103 maintain, repair, alter, expand, equip, lease, pursuant to and 104 consistent with section 17 of this act, finance, and operate. 105 (f) The words “county hospital and medical nursing and 106 convalescent homes” shall include hospitals, medical care 107 facilities, clinics, and other allied medical care units. 108 Section 3. (a) There is hereby created the Citrus County 109 Hospital Board, an independent special district, and by that 110 name the board may sue and be sued, plead and be impleaded, 111 contract and be contracted with, acquire and dispose of property 112 or any interest therein, and have an official seal. The board is 113 created as a public nonprofit corporation without stock and is 114 composed of and governed by the five (5) members herein provided 115 for, to be known as trustees. The hospital board is hereby 116 constituted and declared to be an agency of the county and 117 incorporated for the purpose of operating hospitals, medical 118 nursing homes, and convalescent homes in the county. The 119 hospital board shall consist of five (5) trustees appointed by 120 the Governor and, upon this act becoming a law, the present 121 members will automatically become trustees and shall constitute 122 the board. Their respective terms of office shall be the term 123 each member is presently serving. All subsequent appointments, 124 upon the expiration of the present terms, shall be for the term 125 of four (4) years. Upon the expiration of the term of each 126 trustee, the successor shall be appointed by the Governor. 127 Likewise, any vacancy occurring shall be filled by appointment 128 by the Governor for the unexpired term. Each appointment by the 129 Governor is subject to approval and confirmation by the Florida 130 Senate. 131 (b) The trustees of said board shall elect from its members 132 a chair, a vice chair, and a secretary-treasurer who shall each 133 hold office for a period of one (1) year. Each trustee shall 134 execute a bond in the penal sum of five thousand dollars 135 ($5,000) with two (2) good and sufficient sureties of a surety 136 company authorized under the laws of the state to become surety, 137 payable to the Citrus County Hospital Board, conditioned upon 138 the faithful performance of the duties of the officer, which 139 bonds shall be approved by the remaining trustees of the board 140 and which shall be filed with the Board of County Commissioners 141 of Citrus County. The premiums on said bonds shall be paid by 142 the hospital board. 143 (c) The hospital board shall comply with the applicable 144 requirements of Florida Security for Public Deposits Act, 145 chapter 280, Florida Statutes, and the Investment of Local 146 Government Surplus Funds Act, part IV of chapter 218, Florida 147 Statutes. 148 (d) Any and all funds so deposited shall be withdrawn by a 149 check or warrant signed by two (2) trustees of the hospital 150 board, of which one (1) shall be the chair, vice chair, or 151 secretary-treasurer. No check or warrant shall be delivered to 152 the payee without approval thereof shown in the minutes of the 153 hospital board. 154 Section 4. The trustees of the board shall receive no 155 compensation for their services. Three trustees shall constitute 156 a quorum of the hospital board for the purpose of conducting its 157 business and exercising its powers and for all other purposes. 158 Action may be taken by the board only upon a vote in the 159 affirmative of three trustees thereof. 160 Section 5. The Citrus County Hospital Board as hereby 161 created shall be for the purpose of operating, in the County of 162 Citrus, public hospitals, medical nursing homes, and 163 convalescent homes, primarily and chiefly for the benefit of the 164 citizens and residents of Citrus County. Authority is hereby 165 given to said board to build, erect, expand, equip, maintain, 166 operate, alter, change, lease, pursuant to and consistent with 167 section 17 of this act, and repair public hospitals, medical 168 nursing homes, and convalescent homes in Citrus County. The 169 corporation is authorized, when rooms and services are 170 available, without detriment or deprivation to the citizens and 171 residents of Citrus County, to extend the hospitalization and 172 medical nursing home and convalescent home services provided by 173 said hospitals, medical nursing homes, and convalescent homes to 174 patients from adjoining and other counties of Florida and from 175 other states, upon the payment of the cost of such 176 hospitalization, medical nursing home services, and convalescent 177 home services as may be determined by the trustees of the 178 hospital board. The board shall have the power and authority to 179 operate an ambulance system and ambulance services. The board 180 shall have the authority to charge all patients for all services 181 rendered in any facility owned or operated by the hospital 182 board, including the ambulance facility. The board may charge 183 patients interest on the patient’s account; may sell, discount, 184 or assign said account to a bank, finance company, collection 185 agency, or other type of collection facility; may accept 186 promissory notes or other types of debt obligations from a 187 patient; may assign or discount said accounts receivable, notes, 188 or other obligations; may require a patient to guarantee the 189 payment of an existing account or note; may require a guarantee 190 of payment before admitting a patient; and may receive and 191 assign any assignment of all types of insurance proceeds. 192 Section 6. The board may provide for the annual levy of an 193 ad valorem tax upon all taxable property within the district to 194 pay for the principal of and interest on promissory notes, 195 mortgages, or ad valorem bonds; and may pay for the erecting, 196 building, equipping, maintaining, changing, altering, repairing, 197 leasing, and operating the public hospital. However, the millage 198 rate may not exceed 3 mills per year. The board shall comply 199 with the applicable provisions of chapter 200, Florida Statutes. 200 Section 7. The hospital board is hereby authorized and 201 empowered to own and acquire property by purchase, lease, gift, 202 grant, or transfer from the county, the state, or the Federal 203 Government, or any subdivision or agency thereof, any 204 municipality, person, partnership, or corporation, and to 205 acquire, construct, maintain, operate, expand, alter, repair, 206 change, lease, finance, and equip hospitals, medical nursing 207 homes, convalescent homes, medical care facilities, and clinics 208 in the county. 209 Section 8. The hospital board is authorized and empowered 210 to enter into contracts with individuals, partnerships, 211 corporations, municipalities, the county, the state or any 212 subdivision or agency thereof, and the United States of America 213 or any subdivision or agency thereof to carry out the purposes 214 of this act. 215 Section 9. The hospital board is empowered to and shall 216 adopt all necessary rules and regulations and bylaws for the 217 operation of hospitals, medical nursing homes, and convalescent 218 homes; to provide for the admission thereto and treatment of 219 such charity patients who are citizens of Florida and residents 220 of Citrus County for the last two (2) preceding years; to set 221 the fees and charges to be made for the admission and treatment 222 therein of all patients; and to establish the qualifications for 223 members of the medical profession to be entitled to practice 224 therein. 225 Section 10. The hospital board shall have the power to 226 purchase any and all equipment that may be needed for the 227 operation of hospitals, medical nursing homes, and convalescent 228 homes, and shall have the power to appoint and hire such agent 229 or agents, technical experts, attorneys, and all other employees 230 as are necessary for carrying out the purposes of this act, and 231 to prescribe their salaries and duties. The board shall have the 232 power to discharge all employees or agents when it shall be 233 deemed by the board necessary for the carrying out of the 234 purposes of this act. 235 Section 11. At the end of each fiscal year thereafter, the 236 Citrus County Hospital Board shall within thirty (30) days file 237 with the Clerk of the Circuit Court of Citrus County a full, 238 complete, and detailed accounting of the preceding year and at 239 the same time shall file a certified copy of said financial 240 report with the Board of County Commissioners of Citrus County, 241 which report shall be recorded in the minutes of the board of 242 county commissioners. The board of county commissioners at its 243 discretion and at the expense of the county may publish and 244 report an accounting in a newspaper of general circulation in 245 Citrus County. 246 Section 12. In addition to all other implied and express 247 powers contained herein, the board shall have the express 248 authority to negotiate loans to borrow money from any state or 249 federal agency for the purpose or purposes of constructing, 250 maintaining, repairing, altering, expanding, equipping, leasing, 251 and operating county hospitals, medical nursing homes, 252 convalescent homes, medical care facilities, clinics, and all 253 other types of allied medical care units. 254 Section 13. In addition to all other implied and express 255 powers contained herein, the board shall have the express 256 authority to borrow money, with or without issuing notes 257 therefor, for the purpose or purposes of constructing, 258 maintaining, repairing, altering, expanding, equipping, leasing, 259 and operating county hospitals, medical nursing homes, 260 convalescent homes, medical care facilities, clinics, and all 261 other types of allied medical care units. The board’s authority 262 to borrow money, with or without issuing notes, shall be subject 263 to the conditions of this act, applying to the board’s right to 264 issue revenue bonds. 265 Section 14. Said board shall have express authority to 266 issue bonds, subject to approval by a referendum of the voters 267 of said county, and to issue revenue bonds, without a referendum 268 of the voters of said county, the proceeds of which shall be 269 used for erecting, equipping, building, expanding, altering, 270 changing, maintaining, operating, leasing, and repairing said 271 hospitals, medical nursing homes, and convalescent homes. 272 Section 15. (a) Said bonds, federal or state hospital 273 loans, notes, or revenue bonds shall mature within thirty (30) 274 years from the year in which they are issued or made, and shall 275 be payable in such years and amounts as shall be approved by the 276 board. 277 (b) The board shall determine the form of the loans, notes, 278 bonds, and revenue bonds, including any interest coupons to be 279 attached thereto, and the manner of executing it, shall fix the 280 denomination or denominations thereof and the place or places of 281 payment of principal and interest which may be at any bank or 282 trust company within or without the state. In case an officer 283 whose signature or a facsimile of whose signature shall appear 284 on any loan, note, bond, or revenue certificate or coupon shall 285 cease to be such officer before the delivery thereof, such 286 signature or facsimile shall nevertheless be valid and 287 sufficient for all purposes the same as if the officer had 288 remained in office until such delivery. All loan agreements, 289 notes, bonds, and revenue bonds issued hereunder shall have and 290 are hereby declared to have all the qualities and incidents of 291 negotiable instruments under the negotiable instruments law of 292 the state. 293 (c) Whenever the board shall pass a resolution approving 294 the issuance of said bonds, the board shall call for an election 295 and, subject to said election, permit the repayment of the bonds 296 out of an annual levy not to exceed one and one-half (1 1/2) 297 mills per year. Said millage is included in the maximum millage 298 of three (3) mills per year. Subject to such limitations, said 299 bonds shall be payable from the full faith and credit of the 300 board. 301 (d) The loans, notes, and revenue bonds, together with the 302 interest, shall be payable from gross or net receipts of the 303 hospital board or any portion thereof. 304 (e) Said loans, notes, bonds, or revenue bonds shall not 305 bear interest in excess of the maximum rate permitted by the 306 laws of the State of Florida. 307 (f) The board may sell bonds, loans, notes, or revenue 308 bonds in such manner, either at public or private sale, and for 309 such price as it may determine to be for the best interest of 310 the hospital board. 311 Section 16. The total amount of outstanding bonds of said 312 hospital payable from ad valorem taxation at any one time shall 313 not exceed an amount equal to six (6) times the annual hospital 314 tax, assuming said tax is based upon the yearly millage of three 315 (3) mills. 316 Section 17. The Citrus County Hospital Board shall have the 317 authority to enter into leases or contracts with a not-for 318 profit Florida corporation for the purpose of operating and 319 managing the hospital and any or all of its facilities of any 320 kind and nature. To ensure public oversight, accountability, and 321 public benefit, in addition to the requirements for any such 322 lease set forth in s. 155.40, Florida Statutes: 323 (a) The Citrus County Hospital Board shall be the sole 324 member of the not-for-profit corporation. 325 (b) The not-for-profit corporation shall have an eleven 326 (11) member board of directors consisting of three (3) classes. 327 The first class shall consist of the five (5) Citrus County 328 Hospital Board trustees. The second class shall consist of five 329 (5) private not-for-profit directors who shall be selected 330 initially by the sitting private not-for-profit directors of the 331 not-for-profit corporation in existence on the effective date of 332 this act and thereafter by the board of directors when the 333 nominating committee presents the nominees for the board of 334 directors. The third class shall be the chief of the hospital’s 335 medical staff. The chief of the hospital’s medical staff shall 336 not have a financial or business relationship with the hospital, 337 a competing hospital, or a competing medical provider. All 338 eleven (11) members shall have voting rights and a quorum shall 339 consist of a minimum of six (6) members. To the extent that any 340 governance documents of the not-for-profit corporation do not so 341 presently provide for the requisite governance structure, the 342 not-for-profit corporation shall take all steps necessary to 343 bring them into conformity with the requirements herein. 344 (c) The hospital board shall independently approve any plan 345 of merger or dissolution of the not-for-profit corporation 346 pursuant to sections 617.1103 and 617.1402, Florida Statutes. 347 (d) All members of the hospital board shall be voting 348 directors of the not-for-profit board of directors. 349 (e) The not-for-profit corporation’s committees shall 350 consist of two (2) trustees and two (2) private not-for-profit 351 members. The Audit and Conflict Committees may expand membership 352 with persons from neither class. Each class of directors shall 353 select its representatives for each committee. The not-for 354 profit corporation’s executive committee shall retain authority 355 to resolve medical liability issues. All other matters shall be 356 approved by the board of directors. 357 (f) The not-for-profit corporation shall separately account 358 for the expenditure of all ad valorem tax moneys provided to it 359 by the Citrus County Hospital Board, including maintaining them 360 in a separate accounting fund. The expenditure for all such 361 public tax funds shall be approved in a public meeting and 362 separately accounted for annually by the not-for-profit 363 corporation in a report provided to the Citrus County Hospital 364 Board. 365 (g) The Citrus County Hospital Board shall have the right 366 to approve or reject the following: 367 (1) Adoption, amendment, modification, or restatement of 368 the not-for-profit corporation’s Articles of Incorporation or 369 Bylaws, including those required by this act and any such 370 amendments not heretofore approved; 371 (2) Upon expiration of the contract in effect on January 1, 372 2010, selection of a new chief executive officer or renewal of 373 his or her employment contract; 374 (3)a. The annual operating and capital budgets of the not 375 for-profit corporation, considering each budget separately and 376 without line item veto authority. To reject any budget shall 377 require the affirmative vote of four (4) hospital board 378 trustees. 379 b. Subject to the annual approved budget, the Citrus County 380 Hospital Board shall reimburse the not-for-profit corporation 381 for indigent care at the prevailing Medicaid per diem rate 382 pursuant to state and federal law. 383 (4) Additional loan indebtedness or leases in excess of 384 $1,250,000 per instrument or contract; and 385 (5) The not-for-profit corporation policies governing 386 travel reimbursements and contract bid procedures. 387 (h) All records of the not-for-profit corporation are 388 public records unless exempt by law. 389 (i) Any dispute between the Citrus County Hospital Board 390 and the not-for-profit corporation shall be subject to any court 391 actions pursuant to sections 164.101-164.1065, Florida Statutes. 392 Section 18. In order to ensure public oversight, 393 accountability, and public benefit, the provisions in this act 394 and the hospital board’s lease with the not-for-profit 395 corporation: 396 (a) Shall be construed and interpreted as furthering the 397 public health and welfare, and the open-government requirements 398 of s. 24, Article I of the State Constitution and ss. 119.01 and 399 286.011, Florida Statutes; and 400 (b) Except as provided for in section 17(i), may be 401 enforced by a court of competent jurisdiction in declaratory 402 proceedings under chapter 86, Florida Statutes, by injunction, 403 or by any other appropriate form of judicial relief. 404 Section 3. Chapter 99-442, Laws of Florida, and chapter 405 2001-308, Laws of Florida, are repealed. 406 Section 4. If any provision of this act or its application 407 to any person or circumstance is held invalid, the invalidity 408 does not affect other provisions or applications of the act 409 which can be given effect without the invalid provision or 410 application, and to this end the provisions of this act are 411 severable. 412 Section 5. This act shall take effect July 1, 2010, and 413 shall apply to existing and future leases and amendments, 414 revisions, and restatements thereto, and to existing and future 415 agreements for hospital care and amendments, revisions, and 416 restatements thereto; however, this act shall not apply to the 417 term of any existing contract entered into by the not-for-profit 418 corporation with a third-party, to any existing contract for the 419 borrowing of money in excess of $100,000 for which the hospital 420 board has not previously given its approval, or to any existing 421 contract for a capital project in excess of $250,000 for which 422 the hospital board has not previously given its approval.
