Florida 2022 Regular Session

Florida House Bill H0897 Compare Versions

Version 1 (Old)

Version 2 (New)

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10	10		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14		A bill to be entitled 1
15	15		An act relating to independent hospital districts; 2
16	16		creating s. 189.0762, F.S.; providing definitions; 3
17	17		providing requirements for the conversion of an 4
18	18		independent hospital district to a nonprofit entity; 5
19	19		requiring a certain evaluation by an independent 6
20	20		entity; providing qualifications for such independent 7
21	21		entity; providing for notice of public meetings and 8
22	22		publication of certain documents; requiring that the 9
23	23		evaluation of the conversion be completed and a final 10
24	24		report presented to the governing body of the d istrict 11
25	25		within a specified timeframe; requiring that the final 12
26	26		report be published on the district's website; 13
27	27		requiring certification of the final report; requiring 14
28	28		the governing body of the district to determine by a 15
29	29		supermajority vote whether conversion is in the best 16
30	30		interests of its residents within a specified 17
31	31		timeframe; providing for negotiation of an agreement 18
32	32		between each affected county and the independent 19
33	33		hospital district; providing requirements for such 20
34	34		agreement; providing for disposition of al l assets and 21
35	35		liabilities of the district; prohibiting members of 22
36	36		the board of commissioners for an affected county from 23
37	37		serving on the board of the succeeding nonprofit 24
38	38		entity; authorizing members of the governing body of 25
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47	47		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51	51		the independent hospital district to serve on the 26
52	52		board of the succeeding nonprofit entity; requiring 27
53	53		disclosure of all conflicts of interest; requiring 28
54	54		certain documents to be published on the websites of 29
55	55		the district and each county that is a party to the 30
56	56		agreement for a specified timefr ame; authorizing the 31
57	57		governing body of the independent hospital district to 32
58	58		approve by supermajority vote the conversion of the 33
59	59		district to a nonprofit entity; requiring each board 34
60	60		of commissioners for each affected county to approve 35
61	61		the agreement at a pub lic meeting; requiring a 36
62	62		referendum under certain circumstances; requiring the 37
63	63		independent hospital district to file a copy of the 38
64	64		agreement with and provide certain notification to the 39
65	65		Department of Economic Opportunity within a specified 40
66	66		timeframe; providing for dissolution of the district 41
67	67		within a specified timeframe; providing an effective 42
68	68		date. 43
69	69		44
70	70		Be It Enacted by the Legislature of the State of Florida: 45
71	71		46
72	72		Section 1. Section 189.0762, Florida Statutes, is created 47
73	73		to read: 48
74	74		189.0762 Conversion of an independent hospital district to 49
75	75		a nonprofit entity.— 50
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84	84		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88		(1) For purposes of this section, the term: 51
89	89		(a) "Independent hospital district" means an entity 52
90	90		created pursuant to a special act which operates one or more 53
91	91		hospitals licensed under chapter 395 a nd is governed by the 54
92	92		governing body of a special district or by the board of trustees 55
93	93		of a public health trust created under s. 154.07. 56
94	94		(b) "Nonprofit entity" means a Florida not -for-profit 57
95	95		corporation operating under chapter 617. 58
96	96		(2) The governing bo dy of an independent hospital district 59
97	97		may elect, by a majority vote plus one, to commence an 60
98	98		evaluation of the benefits to the residents of the district of 61
99	99		converting the independent hospital district to a nonprofit 62
100	100		entity if the governing body of the dis trict and each county 63
101	101		within which any part of the district's boundaries are located 64
102	102		execute an agreement that meets the requirements of subsection 65
103	103		(5). In evaluating the benefits of converting the independent 66
104	104		hospital district to a nonprofit entity, the g overning body of 67
105	105		the district must: 68
106	106		(a) Publish notice of and conduct a public meeting in 69
107	107		accordance with s. 189.015(1) to provide the residents of the 70
108	108		district with the opportunity to publicly testify regarding the 71
109	109		conversion. The public hearing must be held at a meeting other 72
110	110		than a regularly noticed meeting or an emergency meeting of the 73
111	111		independent hospital district. 74
112	112		(b) Contract with an independent entity that has at least 75
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121	121		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125	125		5 years of experience conducting comparable evaluations of 76
126	126		hospital organizations similar in size and function to the 77
127	127		independent hospital district to conduct the evaluation 78
128	128		according to applicable industry best practices. The independent 79
129	129		entity may not have any affiliation with or financial 80
130	130		involvement in the district or with any member of the governing 81
131	131		body of the district. 82
132	132		(c) Publish all documents considered by the governing body 83
133	133		of the independent hospital district on the website of the 84
134	134		district. 85
135	135		(3) The evaluation must be completed and a final report 86
136	136		presented to the gove rning body of the independent hospital 87
137	137		district no later than 180 days after the date on which the vote 88
138	138		is taken by the governing body of the district to evaluate the 89
139	139		conversion. The final report shall be published on the 90
140	140		district's website. The final repo rt must include a statement 91
141	141		signed by the presiding officer of the governing board of the 92
142	142		independent hospital district and the chief executive officer of 93
143	143		the independent entity conducting the evaluation that, based on 94
144	144		each person's reasonable knowledge an d belief, the contents and 95
145	145		conclusions of the evaluation are true and correct. 96
146	146		(4) No later than 120 days after the date on which the 97
147	147		governing body of the independent hospital district receives the 98
148	148		final report, the governing body of the district must d etermine, 99
149	149		by a majority vote plus one, whether the interests of the 100
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158	158		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162	162		residents of the district are best served by converting the 101
163	163		independent hospital district to a nonprofit entity. If the 102
164	164		governing body of the district determines conversion is in the 103
165	165		best interests of its residents, the independent hospital 104
166	166		district must negotiate and complete an agreement with the board 105
167	167		of county commissioners for each county in which any part of the 106
168	168		district's boundaries are located before conversion may occur. 107
169	169		(5) An agreement between the governing body of the 108
170	170		independent hospital district and each county in which any part 109
171	171		of the district's boundaries are located must be completed no 110
172	172		later than 120 days after the date on which the public meeting 111
173	173		is held to determine if conversion of the district is in the 112
174	174		best interests of its residents. The agreement must be in 113
175	175		writing, dispose of all assets and liabilities of the 114
176	176		independent hospital district, and include: 115
177	177		(a) A description of each asset that will be transferred 116
178	178		to each county. 117
179	179		(b) A description of each liability that will be 118
180	180		transferred to each county. 119
181	181		(c) The estimated total value of the assets that will be 120
182	182		transferred to each county. 121
183	183		(d) The estimated total value of the liabilities that will 122
184	184		be transferred to each county. 123
185	185		(e) If the agreement is with more than one county, a 124
186	186		description of the methodology used to allocate the assets and 125
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195	195		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199	199		liabilities of the district between the counties. 126
200	200		(f) A description of all assets that will be transferred 127
201	201		to the succeeding nonprofit entity. 128
202	202		(g) A description of all liabilities that will be assumed 129
203	203		by the succeeding nonprofit entity. 130
204	204		(h) The estimated total value of the assets that will be 131
205	205		transferred to the succeeding nonprofit entity. 132
206	206		(i) The total value of the li abilities to be assumed by 133
207	207		the succeeding nonprofit entity. 134
208	208		(j) If any debts remain, how those debts will be resolved. 135
209	209		(k) An enforceable commitment that programs and services 136
210	210		provided by the district will continue to be provided to all 137
211	211		residents of the former district in perpetuity so long as the 138
212	212		succeeding nonprofit entity is in operation or, if otherwise 139
213	213		agreed to by the independent hospital district and each county 140
214	214		that is a party to the agreement, until the succeeding nonprofit 141
215	215		entity has otherwise met all obligations set forth in the 142
216	216		agreement. 143
217	217		(l) A provision transferring the rights and obligations as 144
218	218		agreed to by the governing body of the independent hospital 145
219	219		district and each county that is a party to the agreement to the 146
220	220		succeeding nonprofit entity. 147
221	221		(m) Any other terms mutually agreed to by the governing 148
222	222		body of the independent hospital district and each county that 149
223	223		is a party to the agreement. 150
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232	232		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236	236		(6)(a) A member of the board of commissioners for any 151
237	237		county that is a party to the agreement ma y not serve on the 152
238	238		board of the succeeding nonprofit entity. 153
239	239		(b) A member of the governing body of the independent 154
240	240		hospital district may serve on the board of the succeeding 155
241	241		nonprofit entity. 156
242	242		(7) The members of the governing body of the independent 157
243	243		hospital district and the board of commissioners for each county 158
244	244		that is a party to the agreement must disclose all conflicts of 159
245	245		interest as required by s. 112.313, including, but not limited 160
246	246		to: 161
247	247		(a) Whether the conversion of the independent hospital 162
248	248		district will result in a special private gain or loss to any 163
249	249		member of the governing body of the independent hospital 164
250	250		district or boards of commissioners for the affected counties or 165
251	251		to any senior executive of the independent hospital district. 166
252	252		(b) If any member of the governing body of the independent 167
253	253		hospital district will serve on the board of the succeeding 168
254	254		nonprofit entity. Such intent to serve on the board of the 169
255	255		succeeding nonprofit entity does not disqualify any member from 170
256	256		voting on the proposed conve rsion. 171
257	257		(8) The evaluation, agreements, disclosures, and any other 172
258	258		supporting documents related to the conversion of the 173
259	259		independent hospital district must be published on the 174
260	260		district's website and the website of each county that is a 175
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269	269		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273		-	party to the agreement under subsection (5) for 45 days before 176
	273	+	party to the agreement under subsection (5) for 20 days before 176
274	274		the governing body of the independent hospital district and the 177
275	275		board of commissioners for each county that is a party to the 178
276	276		agreement may vote on the proposed conversion. 179
277	277		(9)(a) In a public meeting noticed as required pursuant to 180
278	278		subsection (2), the governing body of the independent hospital 181
279	279		district may approve, by a majority vote plus one, the 182
280	280		conversion of the district to a nonprofit entity and any 183
281	281		agreements related to the conversion. 184
282	282		(b) The agreement n egotiated under subsection (5) must be 185
283	283		approved by each board of commissioners for each affected county 186
284	284		in a properly noticed public meeting. 187
285	285		(c) If the governing body of the independent hospital 188
286	286		district and the board of commissioners for each affected county 189
287	287		approve the proposed agreement, and the district exercises ad 190
288	288		valorem taxing powers, a referendum of the qualified electors of 191
289	289		the district must be conducted at the next general election as 192
290	290		required pursuant to s. 100.031. A referendum is not requir ed 193
291		-	for independent hospital districts that ~~have~~ not ~~levied,~~ 194
292		-	~~collected, or received ad~~ valorem ~~taxes in the current fiscal~~ 195
293		-	~~year and~~ the ~~previous 5 fiscal years.~~ 196
294		-	~~(d) If approved by the qualified electors of the~~ 197
295		-	~~independent hospital district voting~~ in ~~a ref erendum conducted~~ 198
296		-	~~in accordance with paragraph (c),~~ the ~~agreement between the~~ 199
297		-	~~independent hospital district~~ and the ~~board of commissioners for~~ 200
	291	+	for independent hospital districts that do not exercise ad 194
	292	+	valorem taxing powers. 195
	293	+	(d) If approved by the qualified electors of the 196
	294	+	independent hospital district voting in a referendum conducted 197
	295	+	in accordance with paragraph (c), the agreement between t he 198
	296	+	independent hospital district and the board of commissioners for 199
	297	+	each affected county shall be in full force and effect. The 200
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310		-	each affected county shall be in full force and effect. The 201
311		-	independent hospital district shall file a copy of th e agreement 202
312		-	with the department no later than 10 days after the date on 203
313		-	which the referendum approving the agreement and conversion 204
314		-	occurs. 205
315		-	(10) No later than 30 days after the complete transfer of 206
316		-	assets and liabilities as provided in the agreement unde r 207
317		-	subsection (5), the independent hospital district shall notify 208
318		-	the department. The district shall be dissolved automatically 209
319		-	upon receipt of the notice by the department. 210
320		-	(11) If the governing body of the independent hospital 211
321		-	district and the board of commissioners for each county that is 212
322		-	a party to the agreement are unable to reach an agreement that 213
323		-	would result in the conversion of the independent hospital 214
324		-	district to a nonprofit entity, the district shall continue in 215
325		-	existence. 216
326		-	Section 2. This act shall take effect July 1, 2022. 217
	310	+	independent hospital district shall file a copy of the agreement 201
	311	+	with the department no later than 10 days after the date on 202
	312	+	which the referendum approving the agreement and conversion 203
	313	+	occurs. 204
	314	+	(10) No later than 30 days after the complete transfer of 205
	315	+	assets and liabilities as provided in the agreement under 206
	316	+	subsection (5), the independent hospital district shall notify 207
	317	+	the department. The district shall be dissolved automatically 208
	318	+	upon receipt of the notice by the department. 209
	319	+	(11) If the governing body of the independent hospital 210
	320	+	district and the board of commissioners for each county that is 211
	321	+	a party to the agreement are unable t o reach an agreement that 212
	322	+	would result in the conversion of the independent hospital 213
	323	+	district to a nonprofit entity, the district shall continue in 214
	324	+	existence. 215
	325	+	Section 2. This act shall take effect July 1, 2022. 216