Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 1568
       
       
       
       
       
       
                                Barcode 712212                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/01/2012           .                                
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       The Committee on Budget Subcommittee on General Government
       Appropriations (Benacquisto) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. 155.40, Florida Statutes, is amended to read:
    6         155.40 Sale or lease of county, district, or municipal
    7  hospital; effect of sale.—
    8         (1) In the interest of providing quality health care
    9  services to the order that citizens and residents of this the
   10  state may receive quality health care, and notwithstanding any
   11  other provision of general or special law, a any county,
   12  district, or municipal hospital organized and existing under the
   13  laws of this state, acting by and through its governing board,
   14  may shall have the authority to sell or lease the such hospital
   15  to a for-profit or not-for-profit Florida entity corporation,
   16  and enter into leases or other contracts with a for-profit or
   17  not-for-profit Florida entity corporation for the purpose of
   18  operating the and managing such hospital and any or all of its
   19  facilities of whatsoever kind and nature. The term of any such
   20  lease, contract, or agreement and the conditions, covenants, and
   21  agreements to be contained therein shall be determined by the
   22  governing board of the such county, district, or municipal
   23  hospital. The governing board of the hospital must find that the
   24  sale, lease, or contract is in the best interests of the
   25  affected community public and must state the basis of that such
   26  finding. If the governing board of a county, district, or
   27  municipal hospital decides to lease the hospital, it must give
   28  notice in accordance with paragraph (4)(a) or paragraph (4)(b).
   29         (2) A Any such lease, contract, or agreement made pursuant
   30  hereto shall:
   31         (a) Provide that the articles of incorporation of the such
   32  for-profit or not-for-profit corporation be subject to the
   33  approval of the board of directors or board of trustees of the
   34  such hospital;
   35         (b) Require that any not-for-profit corporation become
   36  qualified under s. 501(c)(3) of the United States Internal
   37  Revenue Code;
   38         (c) Provide for the orderly transition of the operation and
   39  management of the such facilities;
   40         (d) Provide for the return of the such facility to the
   41  county, municipality, or district upon the termination of the
   42  such lease, contract, or agreement; and
   43         (e) Provide for the continued treatment of indigent
   44  patients pursuant to the Florida Health Care Responsibility Act
   45  and pursuant to chapter 87-92, Laws of Florida.
   46         (3) Any sale, lease, or contract entered into pursuant to
   47  this section before prior to the effective date of this act must
   48  have complied with the requirements of subsection (2) in effect
   49  at the time of the sale, lease, or contract. Any lease
   50  modification, renewal, or extension relating to a lease
   51  transaction that occurred before the effective date of this act
   52  is not subject to subsections (6)-(17). It is the intent of the
   53  Legislature that this section does not impose any further
   54  requirements with respect to the formation of any for-profit or
   55  not-for-profit Florida entity corporation, the composition of
   56  the board of directors of any Florida entity corporation, or the
   57  manner in which control of the hospital is transferred to the
   58  Florida entity corporation.
   59         (4) As used in this section, the term:
   60         (a) “Affected community” means those persons residing
   61  within the geographic boundaries defined by the charter of the
   62  county, district, or municipal hospital or health care system,
   63  or if the boundaries are not specifically defined by charter, by
   64  the geographic area from which 75 percent of the county,
   65  district, or municipal hospital’s or health care system’s
   66  inpatient admissions are derived.
   67         (b) “Fair market value” means the price that a seller or
   68  lessor is willing to accept and a buyer or lessee is willing to
   69  pay on the open market and in an arms-length transaction, or
   70  what an independent expert in hospital valuation determines the
   71  fair market value to be.
   72         (c) “Interested party” includes a person submitting a
   73  proposal for sale or lease of the county, district, or municipal
   74  hospital or health care system, as well as the governing board.
   75         (5)The governing board of a county, district, or municipal
   76  hospital or health care system shall commence an evaluation of
   77  the possible benefits to an affected community from the sale or
   78  lease of hospital facilities owned by the board to a not-for
   79  profit or for-profit entity no later than December 31, 2012. In
   80  the course of evaluating the benefits of the sale or lease, the
   81  board shall:
   82         (a) Conduct a public hearing to provide interested persons
   83  the opportunity to be heard on the matter.
   84         (b) Publish notice of the public hearing in one or more
   85  newspapers of general circulation in the county in which the
   86  majority of the physical assets of the hospital or health care
   87  system are located and in the Florida Administrative Weekly at
   88  least 15 days before the hearing is scheduled to occur.
   89         (c) Contract with a certified public accounting firm or
   90  other firm that has substantial expertise in the valuation of
   91  hospitals to render an independent valuation of the hospital’s
   92  fair market value.
   93         (d) Consider an objective operating comparison between a
   94  hospital or health care system operated by the district, county,
   95  or municipality and other similarly situated hospitals, both
   96  not-for-profit and for-profit, which have a similar service mix,
   97  in order to determine whether there is a difference in the cost
   98  of operation using publicly available data provided by the
   99  Agency for Health Care Administration and the quality metrics
  100  identified by the Centers for Medicare and Medicaid Services
  101  Core Measures. The comparison must determine whether it is more
  102  beneficial to taxpayers and the affected community for the
  103  hospital to be operated by a governmental entity, or whether the
  104  hospital can be operated by a not-for-profit or for-profit
  105  entity with similar or better cost-efficiencies or measurable
  106  outcomes identified by the Centers for Medicare and Medicaid
  107  Services Core Measures. The comparison must also determine
  108  whether there is a net benefit to the community to operate the
  109  hospital as a not-for-profit or for-profit entity and use the
  110  proceeds of the sale or lease for the purposes described in this
  111  section.
  112         (e) Make publicly available all documents considered by the
  113  board in the course of such evaluation.
  114         1.Within 160 days after the initiation of the process
  115  established in subsection (5), the governing board shall publish
  116  notice of the board’s findings in one or more newspapers of
  117  general circulation in the county in which the majority of the
  118  physical assets of the hospital are located and in the Florida
  119  Administrative Weekly.
  120         2. This evaluation is not required if a district, county,
  121  or municipal hospital has issued a public request for proposals
  122  for the sale or lease of a hospital on or before February 1,
  123  2012, for the purpose of receiving proposals from qualified
  124  purchasers or lessees, either not-for-profit or for-profit.
  125         (6)(4)If, upon completion of the evaluation of the
  126  benefits of the sale or lease, In the event the governing board
  127  of a county, district, or municipal hospital determines that it
  128  is no longer in the best interest of the affected community to
  129  own or operate a hospital or health care system and elects to
  130  consider a sale or lease of the hospital or health care system
  131  to a third party, the governing board must first determine
  132  whether there are any qualified purchasers or lessees. In the
  133  process of evaluating any qualified purchaser or lessee elects
  134  to sell or lease the hospital, the board shall:
  135         (a) Negotiate the terms of the sale or lease with a for
  136  profit or not-for-profit Florida corporation and Publicly
  137  advertise the meeting at which the proposed sale or lease will
  138  be considered by the governing board of the hospital in
  139  accordance with s. 286.0105; or
  140         (b) Publicly advertise the offer to accept proposals in
  141  accordance with s. 255.0525 and receive proposals from all
  142  interested and qualified purchasers and lessees.
  143  
  144  Any sale or lease must be for fair market value, or, if not for
  145  fair market value, the lease must be in the best interest of the
  146  affected community. A and any sale or lease must comply with all
  147  applicable state and federal antitrust laws.
  148         (7)A determination by the governing board to accept a
  149  proposal for sale or lease shall be made after consideration of
  150  all proposals received and negotiations with a qualified
  151  purchaser or lessee. The governing board’s determination must
  152  include, in writing, detailed findings of all reasons for
  153  accepting the proposal.
  154         (a)The governing board’s acceptance of a proposal for sale
  155  or lease must include a description of how the sale or lease
  156  satisfies each of the following requirements:
  157         1.The sale or lease represents fair market value, as
  158  determined by a certified public accounting firm or other
  159  qualified firm pursuant to subsection(5). If leased at less than
  160  fair market value, the governing board shall provide a detailed
  161  explanation of how the best interests of the affected community
  162  are served by the acceptance of less than fair market value for
  163  the lease of the hospital.
  164         2.Acceptance of the proposal will result in a reduction or
  165  elimination of ad valorem or other taxes for taxpayers in the
  166  district, if applicable.
  167         3.The proposal includes an enforceable commitment that
  168  programs and services and quality health care will continue to
  169  be provided to all residents of the affected community,
  170  particularly to the indigent, the uninsured, and the
  171  underinsured.
  172         4. Disclosure has been made of all conflicts of interest,
  173  including, but not limited to, whether the sale or lease of the
  174  hospital or health care system would result in a special private
  175  gain or loss to members of the governing board or key management
  176  employees or members of the medical staff of the county,
  177  district, or municipal hospital, or if governing board members
  178  will be serving on the board of any successor private
  179  corporation. Conflicts of interest, if any, with respect to
  180  experts retained by the governing board shall also be disclosed.
  181         5. Disclosure has been made by the seller or lessor of all
  182  contracts with physicians or other entities providing health
  183  care services through a contract with the seller or lessor,
  184  including all agreements or contracts that would be void or
  185  voidable upon the consummation of the sale or lease.
  186         6. The proposal is in compliance with subsections (8) and
  187  (9).
  188         (b)The findings must be accompanied by all information and
  189  documents relevant to the governing board’s determination,
  190  including, but not limited to:
  191         1.The names and addresses of all parties to the
  192  transaction.
  193         2.The location of the hospital or health care system and
  194  all related facilities.
  195         3.A description of the terms of all proposed agreements.
  196         4.A copy of the proposed sale or lease agreement and any
  197  related agreements, including, but not limited to, leases,
  198  management contracts, service contracts, and memoranda of
  199  understanding.
  200         5.The estimated total value associated with the proposed
  201  agreement and the proposed acquisition price.
  202         6.Any valuations of the hospital’s or health care system’s
  203  assets prepared during the 3 years immediately preceding the
  204  proposed transaction date.
  205         7.The fair market value analysis required by paragraph
  206  (5)(c), or any other valuation prepared at the request of the
  207  board, owner of the hospital or health care system, or managing
  208  entity of the hospital or health care system.
  209         8.Copies of all other proposals and bids that the
  210  governing board may have received or considered in compliance
  211  with subsection (6).
  212         (8)Within 120 days before the anticipated closing date of
  213  the proposed transaction, the governing board shall make
  214  publicly available all findings and documents required under
  215  subsection (7) and publish a notice of the proposed transaction
  216  in one or more newspapers of general circulation in the county
  217  in which the majority of the physical assets of the hospital or
  218  health care system are located. The notice must include the
  219  names of the parties involved and the means by which a person
  220  may submit written comments about the proposed transaction to
  221  the governing board and obtain copies of the findings and
  222  documents required under subsection (7).
  223         (9)Within 20 days after the date of publication of the
  224  public notice, any person may submit to the governing board
  225  written comments regarding the proposed transaction.
  226         (10)The sale or lease of the hospital or health care
  227  system is subject to approval by the Chief Financial Officer or
  228  his or her designee, except, if otherwise required by law,
  229  approval of the sale or lease shall exclusively be by majority
  230  vote of the registered voters in the county, district, or
  231  municipality in which the hospital or health care system is
  232  located.
  233         (a)The governing board shall file a petition with the
  234  state Chief Financial Officer seeking approval of the proposed
  235  transaction at least 30 days after publication of the notice of
  236  the proposed transaction.
  237         (b)The petition for approval filed by the governing board
  238  must include all findings and documents required under
  239  subsection (7) and certification by the governing board of
  240  compliance with all requirements of this section. The chair of
  241  the governing board must certify under oath and subject to the
  242  penalty of perjury on a form accompanying the petition that the
  243  contents of the petition and representations therein are true
  244  and correct.
  245         (11) Within 30 days of receiving the petition, the Chief
  246  Financial Officer or his or her designee shall issue a final
  247  order approving or denying the proposed transaction based solely
  248  upon consideration of whether the procedures contained within
  249  this section have been followed by the governing board of the
  250  county, district, or municipal hospital or health care system.
  251  The order shall require the governing board to accept or reject
  252  the proposal for the sale or lease of the county, district, or
  253  municipal hospital or health care system based upon a
  254  determination that:
  255         (a)The proposed transaction is permitted by law.
  256         (b)The proposed transaction does not unreasonably exclude
  257  a potential purchaser or lessee on the basis of being a for
  258  profit or a not-for-profit Florida corporation or other form of
  259  business organization, such as a partnership or limited
  260  liability company.
  261         (c)The governing board of the hospital or health care
  262  system publicly advertised the meeting at which the proposed
  263  transaction was considered by the board in compliance with s.
  264  286.0105.
  265         (d)The governing board of the hospital or health care
  266  system publicly advertised the offer to accept proposals in
  267  compliance with s. 255.0525.
  268         (e)Any conflict of interest was disclosed, including, but
  269  not limited to, how the proposed transaction could result in a
  270  special private gain or loss to members of the governing board
  271  or key management employees of the county, district, or
  272  municipal hospital, or if governing board members will be
  273  serving on the board of any successor private corporation.
  274  Conflicts of interest, if any, with respect to experts retained
  275  by the governing board shall also be disclosed.
  276         (f)The seller or lessor documented that it will receive
  277  fair market value for the sale or lease of the assets as
  278  indicated in paragraph (5)(c) or, if leased at less than fair
  279  market value, the governing board provided a detailed
  280  explanation of how the best interests of the affected community
  281  are served by the acceptance of less than fair market value for
  282  the lease of the hospital or health care system.
  283         (g)The acquiring entity has made an enforceable commitment
  284  that programs and services and quality health care will continue
  285  to be provided to all residents of the affected community,
  286  particularly to the indigent, the uninsured, and the
  287  underinsured.
  288         (h)The governing board disclosed whether the sale or lease
  289  will result in a reduction or elimination of ad valorem or other
  290  taxes used to support the hospital.
  291         (12)Any interested party to the action has the right to
  292  seek judicial review of the decision in the appellate district
  293  where the hospital is located or in the First District Court of
  294  Appeal pursuant to s. 120.68.
  295         (a)All proceedings shall be instituted by filing a notice
  296  of appeal in accordance with the Florida Rules of Appellate
  297  Procedure within 30 days after the date of the final order.
  298         (b)In such judicial review, the appellate court shall
  299  affirm the decision of the Chief Financial Officer, unless the
  300  decision by the Chief Financial Officer is shown to be clearly
  301  erroneous.
  302         (13)All costs shall be paid by the governing board, unless
  303  an interested party contests the action, in which case the court
  304  may assign costs equitably to the parties.
  305         (14) If any provision of subsection (5), subsection (6), or
  306  subsection (7) is not followed, the contract for sale or lease
  307  is voidable by any party to the contract. If any member of the
  308  governing board negligently or willfully violates subsection
  309  (5), subsection (6), or subsection (7), as determined by the
  310  Commission on Ethics after receipt of a sworn complaint pursuant
  311  to s. 112.322, the member is subject to a penalty, as determined
  312  by the Commission on Ethics pursuant to s. 112.317.
  313         (15)If a county, district, or municipal hospital is sold,
  314  any and all special district tax authority associated with the
  315  hospital subject to the sale shall cease on the effective date
  316  of the closing date of the sale. Any special law inconsistent
  317  with this subsection is superseded by this act.
  318         (16) If a county, district, or municipal hospital is sold
  319  or leased, the governing board shall:
  320         (a) Deposit 50 percent of the net proceeds of the sale or
  321  lease into a health care economic development trust fund, which
  322  shall be under the control of the county commission of the
  323  county in which the property is located, if the hospital is a
  324  county hospital or district hospital whose geographic boundaries
  325  extend beyond a single municipality, or, if the hospital is a
  326  municipal hospital or district hospital whose geographic
  327  boundaries lie entirely within a single municipality, under the
  328  control of the city or municipal government in which the
  329  hospital is located. The use and distribution of the funds shall
  330  be at the discretion of a majority of the county commission if
  331  the hospital is a county hospital or district hospital whose
  332  geographic boundaries extend beyond a single municipality, or,
  333  if the hospital is a municipal hospital or district hospital
  334  whose geographic boundaries lie entirely within a single
  335  municipality, at the discretion of a majority of the members of
  336  the municipal government. The members of the county commission
  337  or the municipal government, depending on the type of hospital
  338  being sold, shall serve as trustees of the trust fund. The net
  339  proceeds in the health care economic development trust fund
  340  shall be distributed, in consultation with the Department of
  341  Economic Opportunity, to promote job creation in the health care
  342  sector of the economy through new or expanded health care
  343  business development, new or expanded health care services, or
  344  new or expanded health care education programs or
  345  commercialization of health care research within the affected
  346  community; and
  347         (b) Appropriate 50 percent of the net proceeds of the sale
  348  or lease for funding the delivery of indigent care, including
  349  but not limited to primary care, physician specialty care, out
  350  patient care, in-patient care and behavioral health, to
  351  hospitals within the boundaries of the district with
  352  consideration given to the levels of indigent care provided.
  353  
  354  For the purposes of this subsection, the term “net proceeds”
  355  means the sale price after payment of all district debts and
  356  obligations.
  357         (17) If a county, district, or municipal hospital or health
  358  care system is sold or leased to a for-profit corporation or
  359  other business entity subject to local taxation, the resulting
  360  county and municipal ad valorem tax revenue from the formerly
  361  tax-exempt property shall be distributed by the county
  362  commission of the county in which the property is located, if
  363  the hospital is a county hospital or district hospital whose
  364  geographic boundaries extend beyond a single municipality, or,
  365  if the hospital is a municipal hospital or district hospital
  366  whose geographic boundaries lie entirely within a single
  367  municipality, such ad valorem tax revenues shall be distributed
  368  by the municipal government. The distribution of such ad valorem
  369  tax revenues shall be made in consultation with the Department
  370  of Economic Opportunity, for purposes set forth in subsection
  371  (16).
  372         (18)(5)If In the event a hospital operated by a for-profit
  373  or not-for-profit Florida entity corporation receives annually
  374  more than $100,000 in revenues from the county, district, or
  375  municipality that owns the hospital, the Florida entity
  376  corporation must be accountable to the county, district, or
  377  municipality with respect to the manner in which the funds are
  378  expended by either:
  379         (a) Having the revenues subject to annual appropriations by
  380  the county, district, or municipality; or
  381         (b) Where there is a contract to provide revenues to the
  382  hospital, the term of which is longer than 12 months, the
  383  governing board of the county, district, or municipality must be
  384  able to modify the contract upon 12 months notice to the
  385  hospital.
  386  
  387  A not-for-profit entity corporation that is subject to this
  388  subsection and that does not currently comply with the
  389  accountability requirements in this subsection shall have 12
  390  months after the effective date of this act to modify any
  391  contracts with the county, district, or municipality in a manner
  392  that is consistent with this subsection.
  393         (19)(6) Unless otherwise expressly stated in the lease
  394  documents, the transaction involving the sale or lease of a
  395  hospital may shall not be construed as:
  396         (a) A transfer of a governmental function from the county,
  397  district, or municipality to the private purchaser or lessee;
  398         (b) Constituting a financial interest of the public lessor
  399  in the private lessee; or
  400         (c) Making a private lessee an integral part of the public
  401  lessor’s decisionmaking process.
  402         (20)(7) The lessee of a hospital, under this section or any
  403  special act of the Legislature, operating under a lease may
  404  shall not be construed to be “acting on behalf of” the lessor as
  405  that term is used in statute, unless the lease document
  406  expressly provides to the contrary.
  407         (21)(8)(a) If, whenever the sale of a public hospital by a
  408  public agency to a private corporation or other private entity
  409  pursuant to this section or pursuant to a special act of the
  410  Legislature reflects that:
  411         1. The private corporation or other private entity
  412  purchaser acquires 100 percent ownership in the hospital
  413  enterprise;
  414         2. The private corporation or other private entity
  415  purchases the physical plant of the hospital facility and has
  416  complete responsibility for the operation and maintenance of the
  417  facility, regardless of ownership of the underlying real
  418  property;
  419         3. The public agency seller retains no control over
  420  decisionmaking or policymaking for the hospital;
  421         4. The private corporation or other private entity
  422  purchaser receives no funding from the public agency seller
  423  other than by contract for services rendered to patients for
  424  whom the public agency seller has the responsibility to pay for
  425  hospital or medical care;
  426         5. The public agency seller makes no substantial investment
  427  in or loans to the private entity;
  428         6. The private corporation or other private entity
  429  purchaser was not created by the public entity seller; and
  430         7. The private corporation or other private entity
  431  purchaser operates primarily for its own financial interests and
  432  not primarily for the interests of the public agency,
  433  
  434  such a sale shall be considered a complete sale of the public
  435  agency’s interest in the hospital or health care system.
  436         (b) A complete sale of a hospital or health care system as
  437  described in this subsection may shall not be construed as:
  438         1. A transfer of a governmental function from the county,
  439  district, or municipality to the private corporation or other
  440  private entity purchaser;
  441         2. Constituting a financial interest of the public agency
  442  in the private corporation or other private entity purchaser;
  443         3. Making the private corporation or other private entity
  444  purchaser an “agency” as that term is used in statutes;
  445         4. Making the private corporation or other private entity
  446  purchaser an integral part of the public agency’s decisionmaking
  447  process; or
  448         5. Indicating that the private corporation or other private
  449  entity purchaser is “acting on behalf of a public agency” as
  450  that term is used in statute.
  451         (22)If the governing board elects to sell or lease any
  452  physical property of a county, district, or municipal hospital
  453  or health care system and such property generated less than 20
  454  percent of the hospital’s net revenue within the hospital’s or
  455  health care system’s most recent fiscal year, the sale or lease
  456  of such property is exempt from the requirements under
  457  subsections (6)-(15). However, the governing board shall
  458  publicly advertise the meeting at which the proposed sale or
  459  lease of such property will be considered by the governing board
  460  of the hospital in accordance with s. 286.0105 or publicly
  461  advertise the offer to accept proposals in accordance with s.
  462  255.0525 and receive proposals from all qualified purchasers and
  463  lessees. The sale or lease of the property must be for fair
  464  market value or, if a lease is for less than fair market value,
  465  the lease must be in the best interest of the affected
  466  community.
  467         (23)A county, district or municipal hospital or health
  468  care system that is under lease as of the effective date of this
  469  act is not subject to subsections (5)-(16) as long as that lease
  470  remains in effect in accordance with the terms of the lease or
  471  such lease is modified, extended or renewed. Any such hospital
  472  or health care system, however, becomes subject to the
  473  provisions of this act upon:
  474         (a) Termination of the lease, unless the lease termination
  475  is the direct result of a new lease involving a partnership,
  476  transaction or contract in which both the existing lessor and
  477  lessee agree to the new lease between the lessor and another
  478  mutually agreed upon entity;
  479         (b) Notification provided to the lessee of a planned
  480  termination of the lease in accordance with the lease terms,
  481  unless the notification of lease termination is the direct
  482  result of a new lease involving a partnership, transaction or
  483  contract in which both the existing lessor and lessee agree to
  484  the new lease between the lessor and another mutually agreed
  485  upon entity;
  486         (c) Notification to the lessee that upon termination of the
  487  lease the lessor plans to seek potential new lessees or buyers;
  488  or
  489         (d) Notification to the lessee that the lessor plans to
  490  resume operation of the hospital or health care system at the
  491  termination of the lease.
  492  
  493  Any such hospital or health care system may not thereafter be
  494  sold, leased to another lessee, or operated by the owner without
  495  first complying with this act.
  496         (24)A county, district, or municipal hospital or health
  497  care system that has executed a letter of intent to sell or
  498  lease the hospital or health care system accepted at a properly
  499  noticed public meeting, and whose governing board has voted to
  500  approve the letter of intent before December 31, 2011, is not
  501  subject to subsections (6)-(17) as long as the final closing of
  502  the sale or lease transaction pursuant to the letter of intent
  503  occurs before December 31, 2012.
  504         Section 2. Section 155.401, Florida Statutes, is created to
  505  read:
  506         155.401Power of special taxing district to appropriate
  507  proceeds from sale or lease of hospital or health care system to
  508  economic development trust fund.—Notwithstanding any other
  509  general or special law, the purposes for which a special taxing
  510  district may appropriate funds from the sale or lease of a
  511  hospital or health care system to an economic development fund
  512  include the promotion and support of economic growth in such
  513  district and in the county in which such district is located and
  514  the furthering of the purposes of such district, as provided by
  515  law.
  516         Section 3. To the extent that any general or special law is
  517  inconsistent with or otherwise in conflict with this act, such
  518  conflicting provisions are specifically superseded by this act.
  519  A special tax district, public hospital, or municipal hospital
  520  is not exempt from this act.
  521         Section 4. Subsection (1) of section 395.002, Florida
  522  Statutes, is amended to read:
  523         395.002 Definitions.—As used in this chapter:
  524         (1) “Accrediting organizations” means national
  525  accreditation organizations that are approved by the Centers for
  526  Medicare and Medicaid Services and whose standards incorporate
  527  comparable licensure regulations required by the state the Joint
  528  Commission on Accreditation of Healthcare Organizations, the
  529  American Osteopathic Association, the Commission on
  530  Accreditation of Rehabilitation Facilities, and the
  531  Accreditation Association for Ambulatory Health Care, Inc.
  532         Section 5. For the purpose of incorporating the amendment
  533  made by this act to section 395.002, Florida Statutes, in a
  534  reference thereto, paragraph (c) of subsection (2) of section
  535  395.003, Florida Statutes, is reenacted to read:
  536         395.003 Licensure; denial, suspension, and revocation.—
  537         (2)
  538         (c) Intensive residential treatment programs for children
  539  and adolescents which have received accreditation from an
  540  accrediting organization as defined in s. 395.002(1) and which
  541  meet the minimum standards developed by rule of the agency for
  542  such programs shall be licensed by the agency under this part.
  543         Section 6. Section 395.3036, Florida Statutes, is amended
  544  to read:
  545         395.3036 Confidentiality of records and meetings of
  546  entities corporations that lease public hospitals or other
  547  public health care facilities.—The records of a private entity
  548  corporation that leases a public hospital or other public health
  549  care facility are confidential and exempt from the provisions of
  550  s. 119.07(1) and s. 24(a), Art. I of the State Constitution, and
  551  the meetings of the governing board of a private entity
  552  corporation are exempt from s. 286.011 and s. 24(b), Art. I of
  553  the State Constitution if when the public lessor complies with
  554  the public finance accountability provisions of s. 155.40(18)
  555  155.40(5) with respect to the transfer of any public funds to
  556  the private lessee and if when the private lessee meets at least
  557  three of the five following criteria:
  558         (1) The public lessor that owns the public hospital or
  559  other public health care facility was not the incorporator or
  560  initial member of the private entity corporation that leases the
  561  public hospital or other health care facility.
  562         (2) The public lessor and the private lessee do not
  563  commingle any of their funds in any account maintained by either
  564  of them, other than the payment of the rent and administrative
  565  fees or the transfer of funds pursuant to subsection (5) (2).
  566         (3) Except as otherwise provided by law, the private lessee
  567  is not allowed to participate, except as a member of the public,
  568  in the decisionmaking process of the public lessor.
  569         (4) The lease agreement does not expressly require the
  570  lessee to comply with the requirements of ss. 119.07(1) and
  571  286.011.
  572         (5) The public lessor is not entitled to receive any
  573  revenues from the lessee, except for rental or administrative
  574  fees due under the lease, and the lessor is not responsible for
  575  the debts or other obligations of the lessee.
  576         Section 7. This act shall take effect upon becoming a law.
  577  
  578  ================= T I T L E  A M E N D M E N T ================
  579  And the title is amended as follows:
  580  
  581         Delete everything before the enacting clause
  582  and insert:
  583                        A bill to be entitled                      
  584         An act relating to the sale or lease of a county,
  585         district, or municipal hospital; amending s. 155.40,
  586         F.S.; defining the terms; requiring that the governing
  587         board of a county, district, or municipal hospital
  588         evaluate the possible benefits to an affected
  589         community from the sale or lease of the hospital
  590         facility to a not-for-profit or for-profit entity
  591         within a specified time period; specifying the actions
  592         the board must take in evaluating whether to sell or
  593         lease the public hospital; requiring the board to
  594         determine whether qualified purchasers or lessees
  595         exist; specifying the factors that must be considered
  596         by the governing board before accepting a proposal to
  597         sell or lease the hospital; requiring the board to
  598         state in writing detailed findings related to its
  599         decision to accept or reject the proposal; requiring
  600         the governing board to make public the required
  601         findings and documents and to publish a notice of the
  602         proposed transaction in one or more newspapers of
  603         general circulation in the county in which the
  604         majority of the physical assets of the hospital are
  605         located; allowing persons to submit written comments
  606         regarding the proposed transaction; providing that the
  607         sale or lease is subject to the approval of the Chief
  608         Financial Officer; requiring the governing board to
  609         file a petition with the Chief Financial Officer
  610         seeking approval of the proposed transaction within a
  611         specified time period; requiring the Chief Financial
  612         Officer or his or her designee to issue a final order
  613         approving or denying the proposed transaction;
  614         specifying the criteria upon which the Chief Financial
  615         Officer must base his or her decision; authorizing an
  616         interested party to appeal the decision of the Chief
  617         Financial Officer; requiring that all costs be paid by
  618         the governing board unless an interested party
  619         contests the action, in which case the court may
  620         assign costs equitably to the parties; providing for
  621         the distribution of proceeds from the transaction;
  622         exempting the sale or lease of specified physical
  623         property of a county, district, or municipal hospital
  624         from processes required for the approval of a sale or
  625         lease of county, district, or municipal hospital
  626         property; providing an exemption from complying with
  627         the requirements of the act under certain
  628         circumstances; exempting application of the act to
  629         hospitals or health care systems for which a letter of
  630         intent to sell or lease is executed before a specified
  631         date; creating s. 155.401, F.S.; providing that the
  632         purposes for which a special taxing district may
  633         appropriate funds from the sale or lease of a hospital
  634         or health care system include the promotion and
  635         support of economic growth in the district and county
  636         in which the taxing district is located and the
  637         furthering of the purposes of the taxing district;
  638         providing that any general or special law that is
  639         inconsistent with or otherwise in conflict with the
  640         act is specifically superseded by the act; amending s.
  641         395.002, F.S.; revising the definition of the term
  642         “accrediting organizations”; reenacting s.
  643         395.003(2)(c), F.S., relating to licensure and
  644         regulation of hospitals, to incorporate the amendment
  645         made to s. 395.002, F.S., in a reference thereto;
  646         amending s. 395.3036, F.S.; conforming cross
  647         references; providing an effective date.