| 13 | 11 | | |
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| 14 | 12 | | A bill to be entitled 1 |
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| 15 | 13 | | An act relating to the North Brevard County Hospital 2 |
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| 16 | 14 | | District, Brevard County; amending chapter 2003 -362, 3 |
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| 17 | 15 | | Laws of Florida; revising the appointment and 4 |
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| 18 | 16 | | membership of the district board; requiring the board 5 |
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| 19 | 17 | | to determine the operating budget and estimated 6 |
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| 20 | 18 | | revenues of the district; removing provisions relating 7 |
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| 21 | 19 | | to ad valorem taxation; revising disposition of assets 8 |
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| 22 | 20 | | and liabilities in the event of dissolution of the 9 |
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| 23 | 21 | | district; requiring the district to conduct a 10 |
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| 24 | 22 | | valuation; requiring the district to solicit bids for 11 |
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| 25 | 23 | | the sale of district assets; providing for transfer; 12 |
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| 26 | 24 | | providing for dissolution of the district; providing 13 |
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| 27 | 25 | | that offices and terms of members of the bo ard shall 14 |
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| 28 | 26 | | end on a certain date; providing an exception; 15 |
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| 29 | 27 | | prohibiting certain actions relating to district 16 |
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| 30 | 28 | | assets; providing an effective date. 17 |
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| 31 | 29 | | 18 |
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| 32 | 30 | | Be It Enacted by the Legislature of the State of Florida: 19 |
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| 33 | 31 | | 20 |
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| 34 | 32 | | Section 1. Sections 2, 6, and 17 of section 3 of chapter 21 |
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| 35 | 33 | | 2003-362, Laws of Florida, are amended, and section 24 is added 22 |
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| 36 | 34 | | to that section, to read: 23 |
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| 37 | 35 | | Section 2. The governing body authority of the district 24 |
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| 38 | 36 | | shall be known as the North Brevard County Hospital District 25 |
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| 39 | 37 | | |
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| 50 | 46 | | |
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| 51 | 47 | | Board. The board shall constitute a body politic and a body 26 |
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| 52 | 48 | | corporate; it may adopt and use a common seal; it may contract 27 |
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| 53 | 49 | | and be contracted with; and it may sue and be sued in its 28 |
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| 54 | 50 | | corporate name or in the corporate name of the district. 29 |
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| 55 | 51 | | 30 |
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| 56 | 52 | | The board shall be composed of five nine members appointed 31 |
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| 57 | 53 | | by the Governor. All members shall be qualified electors of the 32 |
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| 58 | 54 | | district. The Governor shall issue a public notice soliciting 33 |
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| 59 | 55 | | citizen nominations for board members within 120 days after the 34 |
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| 60 | 56 | | effective date of this act. The nomination solicitation period 35 |
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| 61 | 57 | | shall remain open for at least 30 days after the date of the 36 |
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| 62 | 58 | | public notice. The Governor shall appoint initial members to the 37 |
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| 63 | 59 | | board from among the nominees within 60 days after the close of 38 |
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| 64 | 60 | | the nomination solicitation period. The initial terms of of fice 39 |
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| 65 | 61 | | for the five members shall commence at upon their appointment, 40 |
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| 66 | 62 | | with terms designated as follows: three members shall serve 41 |
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| 67 | 63 | | until October 1, 2026, and two members shall serve until October 42 |
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| 68 | 64 | | 1, 2028. The Governor shall have a citizen nomination 43 |
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| 69 | 65 | | solicitation period for at least 30 days and appoint members for 44 |
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| 70 | 66 | | subsequent terms from among the nominees. Members appointed for 45 |
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| 71 | 67 | | subsequent terms shall be appointed for 4 -year terms commencing 46 |
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| 72 | 68 | | on October 1 of the year in which they are appointed. If a 47 |
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| 73 | 69 | | member is appointed to complete an unexpired term, the member's 48 |
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| 74 | 70 | | term shall commence at the time of appointment and shall 49 |
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| 75 | 71 | | continue through the remainder of the unexpired term. The 50 |
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| 76 | 72 | | |
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| 87 | 81 | | |
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| 88 | 82 | | Governor shall fill any vacancy for the unexpired portion of a 51 |
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| 89 | 83 | | term within 60 days after t he vacancy occurs if the remainder of 52 |
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| 90 | 84 | | the term exceeds 90 days . The office of each member shall be 53 |
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| 91 | 85 | | designated specifically by number as member one through nine. 54 |
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| 92 | 86 | | The office of each member shall be for a term of 4 years 55 |
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| 93 | 87 | | beginning on the first day of January. Each member shall serve 56 |
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| 94 | 88 | | until his or her successor is appointed by the appropriate 57 |
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| 95 | 89 | | governing body as hereinafter provided. Any vacancy occurring in 58 |
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| 96 | 90 | | any office of a member shall be filled by the appropriate 59 |
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| 97 | 91 | | governing body in the manner provided herein for regular 60 |
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| 98 | 92 | | appointments for the remainder of the unexpired term of office. 61 |
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| 99 | 93 | | All board members shall reside within the boundaries of the 62 |
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| 100 | 94 | | district. 63 |
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| 101 | 95 | | 64 |
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| 102 | 96 | | Board members one, two, and three shall be appointed by the 65 |
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| 103 | 97 | | City Council of the City of Titusville. 66 |
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| 104 | 98 | | 67 |
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| 105 | 99 | | Board members four, five, and seven shall be appointed by 68 |
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| 106 | 100 | | the Board of County Commissioners of Brevard County. 69 |
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| 107 | 101 | | 70 |
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| 108 | 102 | | Board members six, eight, and nine shall be appointed by 71 |
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| 109 | 103 | | the Board of County Commissioners of Brevard County subject to 72 |
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| 110 | 104 | | confirmation by the City Council of the City of Titusville. 73 |
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| 111 | 105 | | 74 |
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| 112 | 106 | | In the event any board member ceases to reside within the 75 |
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| 113 | 107 | | |
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| 124 | 116 | | |
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| 125 | 117 | | boundaries of the district, the office of such member shall be 76 |
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| 126 | 118 | | deemed vacant as of the date of such change in residence. 77 |
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| 127 | 119 | | 78 |
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| 128 | 120 | | Any board member may be removed from office in the event a 79 |
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| 129 | 121 | | request for removal for violation of policies and procedures 80 |
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| 130 | 122 | | established by the board is approved by two -thirds of the 81 |
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| 131 | 123 | | membership of the board and in the event the majority of the 82 |
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| 132 | 124 | | governing body responsible for appointing such member approves 83 |
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| 133 | 125 | | of such removal without the necessity of any requirement of 84 |
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| 134 | 126 | | advice and consent as provided herein for an appointment. 85 |
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| 135 | 127 | | Section 6. It shall be the duty of the board, no not later 86 |
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| 136 | 128 | | than July 15, to determine the operating budget and estimated 87 |
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| 137 | 129 | | revenues for amount required during the ensuing fiscal year for 88 |
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| 138 | 130 | | the purpose of establishing, constructing, equipping, operating, 89 |
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| 139 | 131 | | maintaining, repairing, or leasing of the hospital or hospitals, 90 |
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| 140 | 132 | | or for the payment of debt service and reserves on bonds, notes, 91 |
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| 141 | 133 | | or other obligations issued by the district, or reserves 92 |
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| 142 | 134 | | therefor, or for any one or more of the above purposes. Such 93 |
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| 143 | 135 | | determination shall be by resolution of the board and it shall 94 |
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| 144 | 136 | | be the duty of the chair and the secretary of the board to 95 |
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| 145 | 137 | | certify to the Board of Co unty Commissioners of Brevard County 96 |
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| 146 | 138 | | the amount required, which shall be provided by an ad valorem 97 |
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| 147 | 139 | | tax levied by the Board of County Commissioners of Brevard 98 |
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| 148 | 140 | | County on all taxable real and personal property in the district 99 |
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| 149 | 141 | | for the ensuing fiscal year for t he hospital fund. The Board of 100 |
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| 150 | 142 | | |
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| 161 | 151 | | |
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| 162 | 152 | | County Commissioners of Brevard County, upon being furnished a 101 |
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| 163 | 153 | | certified copy of the resolution of the board regarding the 102 |
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| 164 | 154 | | amount required for its stated purposes, shall levy the 103 |
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| 165 | 155 | | necessary ad valorem taxes on all the taxable real and personal 104 |
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| 166 | 156 | | property within the district to raise the required amount, 105 |
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| 167 | 157 | | provided such millage shall not exceed 5 mills on the dollar of 106 |
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| 168 | 158 | | the assessed valuation of the taxable real and personal property 107 |
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| 169 | 159 | | situated in the district in Brevard County, less a ll such 108 |
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| 170 | 160 | | property exempt from taxation by the Florida Constitution; and 109 |
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| 171 | 161 | | further provided that the board, in issuing any bonds, notes, or 110 |
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| 172 | 162 | | other obligations as hereinafter provided, may covenant with the 111 |
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| 173 | 163 | | holders of such bonds, notes, or other obligations that such 112 |
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| 174 | 164 | | holders shall have a first lien on all such ad valorem taxes 113 |
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| 175 | 165 | | levied for the payment of such bonds, notes, or other 114 |
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| 176 | 166 | | obligations. The resolution of the board above shall be adopted 115 |
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| 177 | 167 | | and a certified copy thereof shall be filed with the Board of 116 |
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| 178 | 168 | | County Commissioners of Brevard County no later not less than 10 117 |
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| 179 | 169 | | days from the adoption of the resolution prior to the time fixed 118 |
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| 180 | 170 | | by law for the levy of general county taxes . 119 |
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| 181 | 171 | | Section 17. In the event of dissolution of the district, 120 |
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| 182 | 172 | | the residual assets and liabilities of the district shall may 121 |
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| 183 | 173 | | only be transferred to one or more organizations which are 122 |
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| 184 | 174 | | exempt organizations as described in Section 501(c)(3) or 123 |
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| 185 | 175 | | Section 170(c)(2) of the Internal Revenue Code of 1986 (or any 124 |
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| 186 | 176 | | other corresponding provisions of any futur e Internal Revenue 125 |
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| 187 | 177 | | |
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| 198 | 186 | | |
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| 199 | 187 | | Law) and which shall have as their primary purpose those same 126 |
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| 200 | 188 | | health care responsibilities as then performed by the district, 127 |
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| 201 | 189 | | together with other public needs of the district, and shall be 128 |
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| 202 | 190 | | required to provide the same annual percentage o f charity care, 129 |
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| 203 | 191 | | indigent care, and Medicaid care, based on gross revenues, that 130 |
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| 204 | 192 | | was provided by the public hospital and reported to the Health 131 |
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| 205 | 193 | | Care Cost Containment Board in its most recent reporting cycle, 132 |
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| 206 | 194 | | and which shall be jointly approved by the distri ct One (1) 133 |
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| 207 | 195 | | Commissioner of the Brevard County Board of County Commissioners 134 |
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| 208 | 196 | | and four-fifths vote of the City Council of the City of 135 |
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| 209 | 197 | | Titusville. 136 |
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| 210 | 198 | | 137 |
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| 211 | 199 | | Notwithstanding the foregoing, in no event shall the board 138 |
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| 212 | 200 | | sell the hospital facilities without first receivin g the 139 |
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| 213 | 201 | | approval by a majority vote of the duly qualified electors who 140 |
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| 214 | 202 | | reside within the district and who vote in the election. Prior 141 |
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| 215 | 203 | | to any such sale, such qualified electors shall, by affirmative 142 |
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| 216 | 204 | | vote, consent to such sale of the hospital facilities, which 143 |
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| 217 | 205 | | consent must also approve the terms and conditions of the sale, 144 |
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| 218 | 206 | | and the disposition of the sale proceeds. The vote on this issue 145 |
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| 219 | 207 | | may be received at a general or special election to be held 146 |
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| 220 | 208 | | within the district, which shall not be called until notice 147 |
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| 221 | 209 | | thereof has been published in a newspaper of general circulation 148 |
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| 222 | 210 | | within the district once a week for 4 consecutive weeks next 149 |
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| 223 | 211 | | prior to the week during which the general or special election 150 |
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| 224 | 212 | | |
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| 235 | 221 | | |
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| 236 | 222 | | will be held. If a majority of the electors who vote in the 151 |
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| 237 | 223 | | general or special election vote in favor of the sale of the 152 |
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| 238 | 224 | | hospital facilities and if they approve the terms and conditions 153 |
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| 239 | 225 | | of the sale, then in that event, the board shall have the 154 |
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| 240 | 226 | | authority to consummate the sale upon the terms and conditions 155 |
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| 241 | 227 | | thus approved by the e lectors. In the event that the duly 156 |
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| 242 | 228 | | qualified electors do not ratify and approve the sale along with 157 |
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| 243 | 229 | | its terms and conditions, the board shall not have the authority 158 |
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| 244 | 230 | | to consummate the sale of the hospital facilities. 159 |
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| 245 | 231 | | Section 24. (a) On or after Octobe r 1, 2024, the board 160 |
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| 246 | 232 | | shall adopt a resolution to commence a valuation of the 161 |
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| 247 | 233 | | district's assets. The board shall contract with an independent 162 |
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| 248 | 234 | | entity that has at least 5 years of experience conducting 163 |
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| 249 | 235 | | comparable evaluations of hospital organizations similar in size 164 |
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| 250 | 236 | | and function to conduct the valuation according to applicable 165 |
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| 251 | 237 | | industry best practices. The independent entity may not have any 166 |
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| 252 | 238 | | current affiliation with or financial involvement in the 167 |
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| 253 | 239 | | district, any support corporation of the district, the Jess 168 |
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| 254 | 240 | | Parrish Medical Foundation, Inc., or any member of the board. 169 |
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| 255 | 241 | | The valuation must be completed and a final report presented to 170 |
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| 256 | 242 | | the board no later than 180 days after the date on which the 171 |
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| 257 | 243 | | valuation is commenced. The final report shall be published on 172 |
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| 258 | 244 | | the district's website. The final report must include a 173 |
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| 259 | 245 | | statement signed by the chair of the board and the chief 174 |
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| 260 | 246 | | executive officer of the independent entity conducting the 175 |
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| 261 | 247 | | |
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| 272 | 256 | | |
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| 273 | 257 | | valuation that, based on each person's reasonable knowledge and 176 |
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| 274 | 258 | | belief, the contents and concl usions of the valuation are true 177 |
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| 275 | 259 | | and correct. 178 |
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| 276 | 260 | | (b) No later than 30 days after the date on which the 179 |
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| 277 | 261 | | board receives the final report, the board must adopt a 180 |
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| 278 | 262 | | resolution commencing the process of soliciting bids for the 181 |
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| 279 | 263 | | district's assets. The resolution mus t be made available 182 |
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| 280 | 264 | | simultaneously to all potential bidders, must include the time 183 |
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| 281 | 265 | | and date for the receipt of bids and of the public opening, and 184 |
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| 282 | 266 | | must include all applicable contractual terms and conditions, 185 |
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| 283 | 267 | | including the criteria to be used in determinin g acceptability 186 |
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| 284 | 268 | | and relative merit of the bid. The resolution shall establish a 187 |
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| 285 | 269 | | minimum acceptable bid for the district's assets based on a 188 |
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| 286 | 270 | | commercially reasonable value and require bidders to enter into 189 |
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| 287 | 271 | | an enforceable commitment that programs and services provided by 190 |
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| 288 | 272 | | the district for indigent care must be continued in perpetuity, 191 |
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| 289 | 273 | | unless otherwise agreed to by the Board of County Commissioners 192 |
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| 290 | 274 | | of Brevard County. 193 |
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| 291 | 275 | | (c) Upon completion of the sale of the district's assets, 194 |
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| 292 | 276 | | all liabilities and any proceeds fro m the sale shall be 195 |
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| 293 | 277 | | transferred to the Board of County Commissioners of Brevard 196 |
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| 294 | 278 | | County. Proceeds received by the board of county commissioners 197 |
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| 295 | 279 | | pursuant to this section shall first be used to satisfy all 198 |
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| 296 | 280 | | liabilities of the former district. 199 |
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| 297 | 281 | | (d) No later than 30 days after the complete transfer of 200 |
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| 298 | 282 | | |
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| 314 | 296 | | Section 2. The offices and terms of all members of the 205 |
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| 315 | 297 | | North Brevard County Hospital District Board existing as of the 206 |
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| 316 | 298 | | effective date of this act shall end as of the effective date of 207 |
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| 317 | 299 | | this act, but such members may continue to serve unt il a 208 |
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| 318 | 300 | | successor in office is appointed and qualified. Until successors 209 |
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| 319 | 301 | | are appointed and qualified to replace all of the members of the 210 |
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| 320 | 302 | | board existing as of the effective date of this act, board 211 |
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| 321 | 303 | | members, officers, and employees of the district may not sell, 212 |
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| 322 | 304 | | dispose of, encumber, transfer, or expend the assets of the 213 |
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| 323 | 305 | | district as such assets existed as of October 1, 2023, other 214 |
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| 324 | 306 | | than in the ordinary course of business. 215 |
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| 325 | 307 | | Section 3. This act shall take effect upon becoming a law. 216 |
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