Florida Senate - 2025 CS for SB 68 By the Committee on Health Policy; and Senator Martin 588-02855-25 202568c1 1 A bill to be entitled 2 An act relating to health facilities authorities; 3 amending s. 154.205, F.S.; revising the definition of 4 the term health facility to include other entities 5 and associations organized not for profit; amending s. 6 154.209, F.S.; revising the powers of health 7 facilities authorities to include the power to issue 8 certain loans and execute related loan agreements; 9 amending s. 154.213, F.S.; specifying requirements for 10 projects financed by loan agreements issued by a 11 health facilities authority; specifying provisions 12 that may be included in such loan agreements; amending 13 ss. 154.219, 154.221, 154.225, 154.235, and 154.247, 14 F.S.; conforming provisions to changes made by the 15 act; providing an effective date. 16 17 Be It Enacted by the Legislature of the State of Florida: 18 19 Section 1.Subsection (8) of section 154.205, Florida 20 Statutes, is amended to read: 21 154.205Definitions.The following terms, whenever used in 22 this part, shall have the following meanings unless a different 23 meaning clearly appears from the context: 24 (8)Health facility means any private corporation or 25 other entity or association organized not for profit, including, 26 but not limited to, a limited liability company that is 27 organized as a not-for-profit organization and controlled 28 directly or indirectly by one or more not-for-profit 29 organizations, and authorized by law to provide: 30 (a)Hospital services in accordance with chapter 395; 31 (b)Nursing home care services in accordance with chapter 32 400; 33 (c)Life care services in accordance with chapter 651; 34 (d)Services for the developmentally disabled under chapter 35 393; 36 (e)Services for the mentally ill under chapter 394; 37 (f)Assisted living services in accordance with chapter 38 429; or 39 (g)Hospice services in accordance with chapter 400. 40 41 The term also includes any private corporation or other entity 42 or association organized not for profit which offers independent 43 living facilities and services as part of a retirement community 44 that provides nursing home care services or assisted living 45 services on the same campus. 46 Section 2.Present subsection (19) of section 154.209, 47 Florida Statutes, is redesignated as subsection (21), a new 48 subsection (19) and subsection (20) are added to that section, 49 and subsections (6), (8), (9), (13), and (18) of that section 50 are amended, to read: 51 154.209Powers of authority.The purpose of the authority 52 shall be to assist health facilities in the acquisition, 53 construction, financing, and refinancing of projects in any 54 incorporated or unincorporated area within the geographical 55 limits of the local agency. For this purpose, the authority is 56 authorized and empowered: 57 (6)To make and execute agreements of lease, contracts, 58 deeds, loan agreements, mortgages, notes, and other instruments 59 necessary or convenient in the exercise of its powers and 60 functions under this part. 61 (8)To pledge or assign any money, rents, loan payments, 62 charges, fees, or other revenues and any proceeds derived from 63 sales of property, insurance, or condemnation awards. 64 (9)To fix, charge, and collect rents, loan payments, fees, 65 and charges for the use of any project. 66 (13)To acquire existing projects and to refund outstanding 67 bonds, obligations, mortgages, or advances issued, made, or 68 given by or on behalf of a health facility for the cost of such 69 project. 70 (18)To participate in and issue bonds and other forms of 71 indebtedness for the purpose of establishing and maintaining an 72 accounts receivable program on behalf of a health facility or 73 group of health facilities. Notwithstanding any other provisions 74 of this part, the structuring and financing of an accounts 75 receivable program pursuant to this subsection shall constitute 76 a project and may be structured for the benefit of health 77 facilities within or outside the geographical limits of the 78 local agency. An accounts receivable program may include the 79 financing of accounts receivable acquired by a health facility 80 from other not-for-profit health care organizations 81 corporations, whether or not controlled by or affiliated with 82 the health facility and regardless of location within or outside 83 the geographical limits of this state. 84 (19)To make mortgage or other secured or unsecured loans 85 to or for the benefit of any health facility for the cost of a 86 project in accordance with an agreement between the authority 87 and the health facility. Such loans may be made to any entity 88 affiliated with a health facility that undertakes such 89 financing, if the proceeds of such loan are made available to or 90 applied for the benefit of such health facility. 91 (20)To make mortgage or other secured or unsecured loans 92 to or for the benefit of a health facility in accordance with an 93 agreement between the authority and the health facility to 94 refund or refinance outstanding bonds, obligations, loans, 95 indebtedness, or advances issued, made, given, or incurred by or 96 for the benefit of such health facility for the cost of a 97 project. Such loans may be made to any entity affiliated with a 98 health facility that undertakes such refunding or refinancing, 99 if the proceeds of such loan are made available to or applied 100 for the benefit of such health facility. 101 Section 3.Section 154.213, Florida Statutes, is amended to 102 read: 103 154.213Agreements of lease; loan agreements.In 104 undertaking any project pursuant to this part, the authority 105 shall first obtain a valid certificate of need evidencing need 106 for the project and a statement that the project serves a public 107 purpose by advancing the commerce, welfare, and prosperity of 108 the local agency and its people. A No project financed under the 109 provisions of this part may not shall be operated by the 110 authority or any other governmental agency; however, the 111 authority may temporarily operate or cause to be operated all or 112 any part of a project to protect its interest therein pending 113 any leasing of such project in accordance with the provisions of 114 this part. The authority may lease a project or projects to a 115 health facility for operation and maintenance in such manner as 116 to effectuate the purposes of this part under an agreement of 117 lease in form and substance not inconsistent herewith. Projects 118 financed or refinanced by the authority with the proceeds of 119 bonds issued for the benefit of a health facility pursuant to s. 120 154.209(19) or (20) shall be governed by one or more loan 121 agreements made between the authority and a health facility, or 122 between the authority and an entity affiliated with a health 123 facility that undertakes such financing, if the proceeds of such 124 loan are made available to or applied for the benefit of such 125 health facility. 126 (1)Any such agreement of lease or loan agreement may 127 provide, among other provisions, that: 128 (a)The lessee under an agreement of lease or an obligor 129 under a loan agreement shall at its own expense operate, repair, 130 and maintain the project or projects financed or refinanced 131 leased thereunder. 132 (b)The rent payable under the agreement of lease or the 133 loan payments made pursuant to the loan agreement shall in the 134 aggregate be not less than an amount sufficient to pay all of 135 the interest, principal, and redemption premiums, if any, on the 136 bonds that are shall be issued by the authority to pay the cost 137 of the project or projects financed or refinanced leased 138 thereunder. 139 (c)The lessee under an agreement of lease or the obligor 140 under a loan agreement shall pay all costs incurred by the 141 authority in connection with the acquisition, financing, 142 construction, and administration of the project or projects 143 financed or refinanced leased, except as may be paid out of the 144 proceeds of bonds or otherwise, including, but not without being 145 limited to,: insurance costs, the cost of administering the bond 146 resolution authorizing such bonds and any trust agreement 147 securing the bonds, and the fees and expenses of trustees, 148 paying agents, attorneys, consultants, and others. 149 (d)The terms of the agreement of lease or loan agreement 150 shall terminate not earlier than the date on which all such 151 bonds and all other obligations incurred by the authority in 152 connection with the project or projects financed or refinanced 153 leased thereunder are shall be paid in full, including interest, 154 principal, and redemption premiums, if any, or adequate funds 155 for such payment are shall be deposited in trust. 156 (e)The lessees obligation to pay rent under the agreement 157 of lease and the obligors obligation to make loan payments 158 under a loan agreement may shall not be subject to cancellation, 159 termination, or abatement by the lessee or the obligor until 160 such payment of the bonds or provision for such payment is shall 161 be made. 162 (2)Such agreement of lease or loan agreement may contain 163 such additional provisions as in the determination of the 164 authority are necessary or convenient to effectuate the purposes 165 of this part, including provisions for extensions of the term 166 and renewals of the lease or loan agreement and vesting in the 167 lessee an option to purchase the project leased thereunder 168 pursuant to such terms and conditions consistent with this part 169 as shall be prescribed in the lease. Except as may otherwise be 170 expressly stated in the agreement of lease or loan agreement, to 171 provide for any contingencies involving the damaging, 172 destruction, or condemnation of the project financed or 173 refinanced leased or any substantial portion thereof, such 174 option to purchase may not be exercised unless all bonds issued 175 for such project, including all principal, interest, and 176 redemption premiums, if any, and all other obligations incurred 177 by the authority in connection with such project, shall have 178 been paid in full or sufficient funds shall have been deposited 179 in trust for such payment. The purchase price of such project 180 shall not be less than an amount sufficient to pay in full all 181 of the bonds, including all principal, interest, and redemption 182 premiums, if any, issued for the project then outstanding and 183 all other obligations incurred by the authority in connection 184 with such project. 185 Section 4.Paragraph (b) of subsection (4) of section 186 154.219, Florida Statutes, is amended to read: 187 154.219Revenue bonds. 188 (4)Any resolution or resolutions authorizing any revenue 189 bonds or any issue of revenue bonds may contain provisions which 190 shall be a part of the contract with the holders of the revenue 191 bonds to be authorized, as to: 192 (b)The rentals, loan payments, fees, and other charges to 193 be charged, the amounts to be raised in each year thereby, and 194 the use and disposition of the revenues. 195 Section 5.Section 154.221, Florida Statutes, is amended to 196 read: 197 154.221Security of bondholders.In the discretion of the 198 authority, any bonds issued under the provisions of this part 199 may be secured by a trust agreement by and between the authority 200 and a corporate trustee, which may be any trust company or bank 201 having the powers of a trust company within or outside without 202 the state. Such trust agreement or resolution providing for the 203 issuance of such bonds may pledge or assign the fees, rents, 204 charges, or proceeds from the sale of any project or part 205 thereof, insurance proceeds, condemnation awards, and other 206 funds and revenues to be received therefor, and may provide for 207 the mortgaging of any project or any part thereof as security 208 for repayment of the bonds. Such trust agreement or resolution 209 providing for the issuance of such bonds shall contain such 210 provisions for protecting and enforcing the rights and remedies 211 of the bondholders as may be reasonable and proper and not in 212 violation of law, including covenants setting forth the duties 213 of the authority in relation to the acquisition of property and 214 the construction, improvement, maintenance, repair, operation, 215 and insurance of the project or projects in connection with 216 which such bonds shall have been authorized; the fees, rents, 217 loan payments, and other charges to be fixed and collected; the 218 sale of any project, or part thereof, or other property; the 219 terms and conditions for the issuance of additional bonds; and 220 the custody, safeguarding, and application of all moneys. It 221 shall be lawful for any bank or trust company incorporated under 222 the laws of the state which may act as depositary of the 223 proceeds of bonds, revenues, or other money hereunder to furnish 224 such indemnifying bonds or to pledge such securities as may be 225 required by the authority. Any such trust agreement or 226 resolution shall set forth the rights and remedies of the 227 bondholders and of the trustee and may restrict the individual 228 right of action by bondholders. In addition to the foregoing, 229 any such trust agreement or resolution may contain such other 230 provisions as the authority may deem reasonable and proper for 231 the security of the bondholders. All expenses incurred in 232 carrying out the provisions of such trust agreement or 233 resolution may be treated as a part of the cost of the project 234 or projects in connection with which bonds are issued or as an 235 expense of administration of such projects, as the case may be. 236 Section 6.Section 154.225, Florida Statutes, is amended to 237 read: 238 154.225Revenues. 239 (1)The authority is hereby authorized to fix and to 240 collect fees, rents, loan payments, and charges for the use of 241 any project or projects and any part or section thereof. The 242 authority may require that the health facility operating any 243 project or any part thereof financed or refinanced under this 244 chapter or the lessee of any project or part thereof shall 245 operate, repair, and maintain the project and bear the cost 246 thereof and other costs of the authority in connection with the 247 project or projects financed or refinanced leased as may be 248 provided in the agreement of lease, loan agreement, or other 249 contract with the authority, in addition to other obligations 250 imposed under such agreement or contract. 251 (2)The fees, rents, loan payments, and charges shall be so 252 fixed as to provide a fund sufficient to pay the principal of, 253 and the interest on, such bonds as the same shall become due and 254 payable and to create reserves, if any, deemed by the authority 255 to be necessary for such purposes. The fees, rents, loan 256 payments, charges, and all other revenues and proceeds derived 257 from the project or projects in connection with which the bonds 258 of any issue shall have been issued, except such part thereof as 259 may be necessary for such reserves or any expenditures as may be 260 provided in the resolution authorizing the issuance of such 261 bonds or in the trust agreement securing the same, shall be set 262 aside at such regular intervals as may be specified in such 263 resolution or such trust agreement in a sinking fund which is 264 hereby pledged to, and charged with, the payment of the 265 principal of and the interest on such bonds as the same shall 266 become due and the redemption price or the purchase price of 267 bonds retired by call or purchase as therein provided. Such 268 pledge shall be valid and binding from the time when the pledge 269 is made. The fees, rents, loan payments, charges, and other 270 revenues and moneys so pledged and thereafter received by the 271 authority shall immediately be subject to the lien of such 272 pledge without any physical delivery thereof or further act, and 273 the lien of any such pledge shall be valid and binding as 274 against all parties having claims of any kind in tort, contract, 275 or otherwise against the authority, irrespective of whether such 276 parties have notice thereof. The use and disposition of money to 277 the credit of such sinking fund shall be subject to the 278 provisions of the resolution authorizing the issuance of such 279 bonds or of such trust agreement. Except as may otherwise be 280 provided in the resolution or the trust agreement, the sinking 281 fund shall be a fund for all such bonds without distinction or 282 priority of one over another. 283 Section 7.Subsection (1) of section 154.235, Florida 284 Statutes, is amended to read: 285 154.235Refunding bonds. 286 (1)The authority is hereby authorized to provide for the 287 issuance of revenue bonds for the purpose of refunding: 288 (a)Any of its revenue bonds then outstanding; and 289 (b)Revenue bonds of other issuers, the proceeds of which 290 were used to finance or refinance projects of one or more health 291 facilities. 292 293 Such refunds may include, including the payment of any 294 redemption premium thereon and any interest accrued or to accrue 295 to the earliest or subsequent date of redemption, purchase, or 296 maturity of such revenue bonds. 297 Section 8.Section 154.247, Florida Statutes, is amended to 298 read: 299 154.247Financing of projects located outside of local 300 agency.Notwithstanding any provision of this part to the 301 contrary, an authority may, if it finds that there will be a 302 benefit or a cost savings to a health facility located within 303 its jurisdiction, issue bonds for such health facility to 304 finance projects for such health facility, or for another 305 private corporation or other entity or association organized 306 not-for-profit corporation under common control with such health 307 facility, located outside the geographical limits of the local 308 agency or outside this state. 309 Section 9.This act shall take effect July 1, 2025.