The Florida Senate

155.01  County commissioners may act as trustees of stock of hospitals.

155.02  Rule against perpetuities inapplicable.

155.03  Duties of county commissioners.

155.04  County hospitals; petition; election; establishment.

155.05  County hospitals; establishment without election.

155.06  County hospitals; trustees; appointment, terms.

155.07  County hospitals; organization; officers; powers; bonds; travel expenses.

155.08  County hospitals; seal; evidence.

155.09  County hospitals; secretary and treasurer; minutes; accounts; public inspection; bond.

155.10  County hospitals; rules and regulations.

155.11  County hospitals; deposit of moneys; payments.

155.12  County hospitals; general powers of trustees; duties; tax levies; etc.

155.13  County hospitals; vacancies in trustees.

155.14  County hospitals; bonds; maturities; interest; etc.

155.15  County hospitals; procuring lands for hospital.

155.16  County hospitals; residents; nonresidents; fees; contagious diseases; etc.

155.17  County hospitals; rules for physicians, nurses, etc.

155.18  County hospitals; discrimination against doctors; etc.

155.19  County hospitals; training school for nurses.

155.20  County hospitals; charity patients; hospital charges.

155.21  County hospitals; donations; etc.

155.22  County hospitals; purposes are public.

155.23  County hospitals; federal loans, aid, etc.

155.24  County hospitals; additional funds.

155.25  Levy authorized for county hospital purposes.

155.40  Sale or lease of county, district, or municipal hospital; effect of sale.

155.41  Exceptions for sales or leases.

155.45  Retirement annuities authorized.

155.01  County commissioners may act as trustees of stock of hospitals.--Whenever the owners of a majority of the outstanding capital stock of a corporation created for and engaged solely in the operation of a hospital shall execute a trust deed, or deeds, conveying a majority of the capital stock of such corporation to the board of county commissioners of the county in which such hospital is located, in trust to be held and administered by such board of county commissioners as trustees with authority to vote said stock at all meetings of the stockholders of such corporation and to expend all dividends declared upon such stock in the hospitalization of the indigent citizens of the county who need hospital treatment, with provisions that should the properties of such corporation cease for a period of 6 months to be used primarily for hospital purposes or should the hospital so maintained be not maintained open to the practice of all duly licensed physicians and surgeons resident in the county where the same is located that the trust shall then, but not before, be terminated and the ownership of the stock so placed in trust shall revert to the respective persons executing the trust deed, or deeds, their heirs, legatees or assigns; the board of county commissioners may accept such trust and act as trustee thereunder.

History.--s. 1, ch. 17834, 1937; CGL 1940 Supp. 2934(28).

155.02  Rule against perpetuities inapplicable.--No such trust shall be invalid by reason of the rule against perpetuities nor shall the rights of the persons creating the same, their heirs, legatees or assigns, to receive back their stock upon the termination of said trust be impaired or denied by reason of any application of the statutes of uses or the rule against perpetuities.

History.--s. 2, ch. 17834, 1937; CGL 1940 Supp. 2934(29).

155.03  Duties of county commissioners.--Should the board of county commissioners accept such trust, it shall administer the same until the termination of the trust; providing, however, that nothing herein shall require the board of county commissioners to expend any funds of the county in the maintenance of such hospital or the administration of such trust.

History.--s. 3, ch. 17834, 1937; CGL 1940 Supp. 2934(30).

155.04  County hospitals; petition; election; establishment.--

(1)  Whenever the board of county commissioners of any county in the state shall be presented with a petition signed by 5 percent of the resident freeholders of such county, asking that an annual tax may be levied for the establishment and maintenance of a public hospital at a place in the county named therein, and shall specify in said petition the maximum amount of money proposed to be expended in purchasing or building said hospital, such board of county commissioners shall submit the question to the qualified electors of the county who are freeholders at the next general election to be held in the county, or at a special election called for that purpose, first giving 30 days' notice thereof in one or more newspapers published in the county, if any be published therein, or posting written or printed notices in each precinct of the county, which notice shall include the text of the petition and state the amount of the tax to be levied upon the assessed property of the said county which tax shall not exceed 5 mills on the dollar, and be for the issue of the county bonds, to provide funds for the purchase of the site, or sites, and the erection thereon of a public hospital and hospital buildings, and for the support of same, which bonds shall be payable within 30 years, which said election shall be held at the usual places in such county for voting upon county officers, and shall be canvassed in the same manner as the vote for the county officers is canvassed. The ballots to be used in any election at which such hospital question is submitted, shall be printed with a statement substantially as follows:

For a _____ mill tax for a bond issue for a public hospital, and for maintenance of same:

YES _____

NO _____

(2)  If a majority of the freeholders who are qualified electors shall participate in said election and a majority of the votes cast at such election on the proposition so submitted shall be in favor of said tax for such bond issue, the board of county commissioners shall levy a tax so authorized, which shall be collected in the same manner as other taxes are collected, and credited to the hospital fund, and shall be paid out on the order of the hospital trustees for the purposes authorized by this law, and for no other purposes whatever.

History.--s. 1, ch. 20905, 1941; s. 1, ch. 26513, 1951.

155.05  County hospitals; establishment without election.--If the county commissioners of any such county, by reason of funds on hand, or donations, or otherwise, are able to build and establish a public hospital without issuing bonds as provided in s. 155.04, then such board of county commissioners is hereby authorized and empowered to establish such public hospital and, without any election, to levy an annual tax for the maintenance thereof, such tax not to exceed 5 mills on the dollar and to be collected in the same manner as the tax provided for in s. 155.04.

History.--s. 2, ch. 20905, 1941.

155.06  County hospitals; trustees; appointment, terms.--Should a majority of all votes cast upon the question be in favor of establishing such county public hospital, or should the board of county commissioners of any county establish a county public hospital as provided in s. 155.05, the Governor of the state shall immediately proceed to appoint five trustees chosen from the citizens at large from such county, with reference to their fitness for such office, who shall constitute a board of trustees for said public hospital. On the original appointment of said trustees, two of said trustees shall be appointed for a term of 1 year, one for a term of 2 years, one for a term of 3 years, and one for a term of 4 years; and thereafter upon the expiration of said original appointments, their successors shall be appointed by the Governor of the state for terms of 4 years.

History.--s. 3, ch. 20905, 1941.

155.07  County hospitals; organization; officers; powers; bonds; travel expenses.--The said trustees shall, within 10 days after their appointment, qualify by taking the oath of office and organize a board of hospital trustees by the election of one of their members as chair and one as secretary and treasurer and by the election of such other officers as they deem necessary. Such chair shall be executive officer of the board of trustees and shall enforce and carry out all the orders of the board of trustees contained in resolutions duly adopted and entered on the minute books of the meetings of the board of trustees. The chair shall preside at all meetings and countersign all vouchers and warrants issued by the secretary and treasurer hereinafter provided for. In the absence of the chair, vouchers and warrants may be countersigned by any other member of the board of trustees selected by the members of the board of trustees as chair pro tem. In the absence of the chair and chair pro tem, vouchers and warrants may be countersigned by the hospital administrator or another full-time employee of the hospital as designated by the members of the board of trustees. The chair, chair pro tem, and such other full-time employees as may be designated by the members of the board of trustees to countersign warrants or vouchers shall give bonds in a sum to be fixed by the board of county commissioners for the faithful performance of their duties in some reputable bonding company authorized to do business in the state, and said bonds shall be made payable to the Governor of Florida and the Governor's successors in office. No member of said board of trustees shall receive any compensation for services as such trustee, but shall be reimbursed for travel expenses as provided in s. 112.061.

History.--s. 4, ch. 20905, 1941; s. 19, ch. 63-400; s. 1, ch. 76-21; s. 876, ch. 95-147.

155.08  County hospitals; seal; evidence.--The board of trustees as herein constituted shall adopt a common seal, and certification under the seal of the board of hospital trustees, signed by the chair and attested by the secretary and treasurer, shall constitute sufficient evidence.

History.--s. 5, ch. 20905, 1941; s. 877, ch. 95-147.

155.09  County hospitals; secretary and treasurer; minutes; accounts; public inspection; bond.--The board of trustees shall elect from its members a secretary and treasurer whose duties it shall be to keep full and correct minutes of all the proceedings of the board of trustees, and keep a separate itemized account of all the expenditures and disbursements by said board of trustees. Said minutes and accounts shall be open to public inspection at any time on demand of any taxpayer in such district. The secretary and treasurer shall give bond in a sum to be fixed by the board of county commissioners for the faithful performance of his or her duties in some reputable bonding company authorized to do business in the state, and said bond shall be made payable to the Governor of Florida and the Governor's successors in office.

History.--s. 6, ch. 20905, 1941; s. 878, ch. 95-147.

155.10  County hospitals; rules and regulations.--The board of trustees shall make and adopt such bylaws and rules and regulations for their own guidance and for the government of the hospital as may be deemed expedient for the economic and equitable conduct thereof, not inconsistent with this law, or the ordinance of the city or town wherein such hospital is located. They shall have exclusive control of the expenditures of all moneys collected to the credit of the hospital fund.

History.--s. 7, ch. 20905, 1941.

155.11  County hospitals; deposit of moneys; payments.--

(1)  All moneys received for such hospital shall be deposited in any bank designated by the said board of trustees, and placed to the credit of the hospital fund and can be paid out only as bills for material supplies, equipment, wages, salaries, or other items of expense whatsoever shall have been audited by the secretary and treasurer and approved by a majority of the members of the board of trustees in regular session. When so approved by a majority of said members, upon vouchers issued by the secretary and treasurer, warrant may be drawn for same and when countersigned by the chair of said board of trustees or an individual designated by s. 155.07, shall be authenticated. Provided, it shall be unlawful to pay any money out of said hospital fund until the provisions of this section have been complied with.

(2)  For the purpose of providing for the direct deposit of funds under the circumstances herein specified, the board of trustees is authorized to establish the form or forms of warrants, which are to be issued and countersigned as provided in this chapter, for payment or disbursement of moneys out of the hospital depository, and to change the form thereof from time to time as the board of trustees deems appropriate. If authorized in writing by the payee, county hospital warrants may provide for the direct deposit of funds to the account of the payee in any financial institution which is designated in writing by the payee and which has lawful authority to accept such deposits. The written authorization of the payee shall be filed with the board of trustees. Direct deposit of funds may be by any electronic or other medium approved by the board of trustees for such purpose.

(3)  Notwithstanding any other provision of law, the board of trustees or any agent authorized by the board who has the authority to deposit or withdraw funds is authorized to transfer funds from one depository to another or within a depository or to another institution, and may transfer funds wherein the transfer does not represent an expenditure, advance, or reduction of cash assets. Such transfer may be made by electronic, telephonic, or other medium; and each transfer shall be confirmed in writing and signed by the designee of the board.

History.--s. 8, ch. 20905, 1941; s. 1, ch. 76-21; s. 7, ch. 78-406; s. 2, ch. 82-104; s. 879, ch. 95-147.

155.12  County hospitals; general powers of trustees; duties; tax levies; etc.--The board of hospital trustees shall have power to appoint a suitable superintendent or matron, or both, and necessary assistants, and fix their compensation and shall also have power to remove such appointees and shall in general carry out the spirit and intent of this law in establishing and maintaining a county hospital. The board of hospital trustees shall hold meetings at least once each month and keep a complete record of all its transactions. Three members of said board shall be required to constitute a quorum for the transaction of business and two or more of said trustees shall visit and examine said hospital twice each month. The board shall, prior to July 1 of each year, file with the board of county commissioners of said county a report of their proceedings with reference to such hospital and a statement of all receipts and expenditures made during the year and shall certify to the said board of county commissioners the amount necessary for the improvement and maintenance of such public hospital, so established, during the ensuing year, and the said board of county commissioners shall, at its annual meeting for the purpose of determining the amount to be raised for all county purposes, levy a sufficient tax upon all the assessed value of the taxable property in the county as will produce the sum required by the said board of trustees' report, but said hospital levy, together with the levy necessary to liquidate the bonds aforesaid, shall not exceed 10 mills on the assessed valuation. No trustee shall have a personal, pecuniary interest, either directly or indirectly, in the purchase of any supplies for said hospital, unless the same are purchased by competitive bidding.

History.--s. 9, ch. 20905, 1941; s. 1, ch. 61-321; s. 2, ch. 76-21.

155.13  County hospitals; vacancies in trustees.--Vacancies in the board of trustees occasioned by resignations, removal, or otherwise, shall be reported to the Governor of the state, who shall fill such vacancies in a like manner as the original appointments; appointees shall hold office for the remainder of the term in which the vacancy occurred.

History.--s. 10, ch. 20905, 1941.

155.14  County hospitals; bonds; maturities; interest; etc.--Whenever any county in this state shall have provided for the appointment of hospital trustees and has voted a tax for hospital purposes, as authorized by law, the said county shall issue bonds in anticipation of the collection of such tax in such sum and amounts as the board of hospital trustees shall certify to the board of county commissioners of said county to be necessary for the purpose contemplated by such tax, but such funds in the aggregate shall not exceed the amount which might be realized by said tax based on the amount which may be yielded on the property valuation of the year in which the tax is voted, and such bonds shall mature in not to exceed 30 years from date and shall be in sums of not less than $100, nor more than $1,000, drawing interest at a rate not exceeding 7.5 percent per annum, payable annually or semiannually; said bonds shall be payable at the pleasure of the county after 5 years and each of said bonds shall provide that it is subject to this condition and shall not be sold for less than provided by law for other county bonds and shall be substantially in the form provided for county bonds, but subject to changes that will conform them to the provisions of this law, and be numbered consecutively and redeemable in the order of their issue.

History.--s. 11, ch. 20905, 1941; s. 2, ch. 26513, 1951; s. 8, ch. 73-302.

155.15  County hospitals; procuring lands for hospital.--If the board of hospital trustees and the owners of any property desired by them for hospital purposes, cannot agree as to the price to be paid therefor, they shall report the facts to the board of county commissioners and condemnation proceedings shall be instituted by the said board of county commissioners and prosecuted in the name of the county by the attorney for the county commissioners of such county.

History.--s. 12, ch. 20905, 1941.

155.16  County hospitals; residents; nonresidents; fees; contagious diseases; etc.--Every hospital established under this law shall be for the benefit of the inhabitants of such county and of any person falling sick or being injured or maimed within its limits, but the board of hospital trustees may extend the privileges and use of such hospital to persons residing outside of such county upon terms and conditions as such board of trustees may from time to time, by its rules and regulations, prescribe. Every such inhabitant or person who is not a pauper shall pay to such board or such officer as it shall designate, a reasonable compensation for occupancy, nursing, care, medicine, and attendance, according to the rules and regulations prescribed by the said board. Such hospital always shall be subject to such rules and regulations as said board may adopt in order to render the use of said hospital of the greatest benefit to the greatest number; and said board may exclude from treatment and care any indigent or pay case having a communicable or contagious disease where such disease may be a detriment to the best interest of such hospital and a source of contagion or infection to the patient in its care, and all inhabitants and persons who shall willfully violate any rules and regulations of such hospital.

History.--s. 13, ch. 20905, 1941.

155.17  County hospitals; rules for physicians, nurses, etc.--When such hospital is established, the physician, nurses, attendants, the person sick therein and all persons approaching or coming within the limits of same, and all furniture and other articles used or brought there shall be subject to such rules and regulations as said board of trustees may prescribe.

History.--s. 14, ch. 20905, 1941.

155.18  County hospitals; discrimination against doctors; etc.--The board of trustees of any hospital organized under this chapter is authorized to promulgate rules and regulations governing the granting and revoking of privileges to treat patients in the hospital. Such rules shall provide that only those persons licensed to practice medicine and surgery, i.e., medical doctors and osteopathic physicians, may be granted privileges to treat patients in the hospital. Such doctors and physicians may retain their privileges so long as they comply with the rules and regulations of the board of trustees.

History.--s. 15, ch. 20905, 1941; s. 1, ch. 61-378.

155.19  County hospitals; training school for nurses.--The board of trustees may establish and maintain in connection with such hospital and as part thereof, a training school for nurses, and upon completion of the prescribed course of training shall give to such nurses who satisfactorily complete the said course, a diploma.

History.--s. 16, ch. 20905, 1941.

155.20  County hospitals; charity patients; hospital charges.--The board of hospital trustees shall have power to determine whether or not patients presented to such public hospital for treatment are subjects of charity, and shall fix the charges for occupancy, nursing, care, medicine, and attendance, other than medical or surgical attendance, of those persons able to pay for same, as the board of trustees may deem just and proper, the receipts therefor to be paid by him or her to the hospital fund.

History.--s. 17, ch. 20905, 1941; s. 880, ch. 95-147.

155.21  County hospitals; donations; etc.--Any person or persons, firm, organization, corporation or society, public or private, desiring to make donations of money, personal property, or real estate for the benefit of such hospital shall have the right to vest title of the money, personal property, or real estate so donated in said county, to be controlled when accepted by the board of hospital trustees of said hospital, according to the terms of the deed, gift, devise, or bequest of such property.

History.--s. 18, ch. 20905, 1941.

155.22  County hospitals; purposes are public.--The purpose for which any county hospital established under the provisions of this law shall be used are hereby declared public purposes. Such purposes shall include the operation and maintenance of ambulance service in any county where the board of county commissioners so authorizes.

History.--s. 19, ch. 20905, 1941; s. 1, ch. 67-373.

155.23  County hospitals; federal loans, aid, etc.--The board of county commissioners of any county desiring to establish and maintain a hospital under the provisions of this law shall be and are hereby authorized and empowered to negotiate and make agreements with any federal agency lending or granting money for the purpose of erecting public hospitals and may match any funds so loaned or granted by such federal agency for the purpose of establishing or constructing a public hospital under the provisions of this law.

History.--s. 20, ch. 20905, 1941.

155.24  County hospitals; additional funds.--In addition to the tax which may be levied under the provisions of this law, the board of county commissioners may allocate to the hospital funds any other public moneys in possession of said board of county commissioners, not otherwise appropriated or allocated to other uses.

History.--s. 21, ch. 20905, 1941.

155.25  Levy authorized for county hospital purposes.--

(1)  Whenever any board of county commissioners shall deem it necessary to erect, equip, or repair a public hospital in the county or erect and equip an addition or additions to any public hospital, they shall give notice at least once each week for 2 consecutive weeks in some newspaper published in said county, or in some newspaper published in the judicial circuit, if there be none published in the county, that at the next regular meeting of the board after the publication of said notice, such question or questions will be acted upon by said board. If, at said meeting, a majority of said board shall determine that it is necessary to erect, equip, repair, or build an addition or additions to such public hospital, they may levy a hospital building, repair, and equipment tax not exceeding 5 mills per annum, for not more than 15 consecutive years. The tax shall be assessed and collected at the same time and in the same manner as other state and county taxes are levied and collected.

(2)  The tax, levied, assessed, and collected as aforesaid, shall be accumulated from year to year until utilized and expended for the public hospital purposes aforesaid.

(3)  The provisions hereof shall be cumulative and in addition to all the other provisions of this chapter, and nothing herein contained shall be held to repeal, alter, or amend any of the provisions of this chapter nor repeal, alter, or amend any of the provisions of any special or local law.

(4)  The provisions of this section shall not apply to Okaloosa County nor shall the provisions hereof confer the authority hereinabove provided for upon or to the county commissioners of said county.

History.--ss. 1, 2, 3, 4, ch. 57-393; s. 6, ch. 90-279.

¹155.40  Sale or lease of county, district, or municipal hospital; effect of sale.--

(1)  In order that citizens and residents of the state may receive quality health care, any county, district, or municipal hospital organized and existing under the laws of this state, acting by and through its governing board, shall have the authority to sell or lease such hospital to a for-profit or not-for-profit Florida corporation, and enter into leases or other contracts with a for-profit or not-for-profit Florida corporation for the purpose of operating and managing such hospital and any or all of its facilities of whatsoever kind and nature. The term of any such lease, contract, or agreement and the conditions, covenants, and agreements to be contained therein shall be determined by the governing board of such county, district, or municipal hospital. The governing board of the hospital must find that the sale, lease, or contract is in the best interests of the public and must state the basis of such finding. If the governing board of a county, district, or municipal hospital decides to lease the hospital, it must give notice in accordance with paragraph (4)(a) or paragraph (4)(b).

(2)  Any such lease, contract, or agreement made pursuant hereto shall:

(a)  Provide that the articles of incorporation of such for-profit or not-for-profit corporation be subject to the approval of the board of directors or board of trustees of such hospital;

(b)  Require that any not-for-profit corporation become qualified under s. 501(c)(3) of the United States Internal Revenue Code;

(c)  Provide for the orderly transition of the operation and management of such facilities;

(d)  Provide for the return of such facility to the county, municipality, or district upon the termination of such lease, contract, or agreement; and

(e)  Provide for the continued treatment of indigent patients pursuant to the Florida Health Care Responsibility Act and pursuant to chapter 87-92, Laws of Florida.

(3)  Any sale, lease, or contract entered into pursuant to this section prior to the effective date of this act must have complied with the requirements of subsection (2) in effect at the time of the sale, lease, or contract. It is the intent of the Legislature that this section does not impose any further requirements with respect to the formation of any for-profit or not-for-profit Florida corporation, the composition of the board of directors of any Florida corporation, or the manner in which control of the hospital is transferred to the Florida corporation.

(4)  In the event the governing board of a county, district, or municipal hospital elects to sell or lease the hospital, the board shall:

(a)  Negotiate the terms of the sale or lease with a for-profit or not-for-profit Florida corporation and publicly advertise the meeting at which the proposed sale or lease will be considered by the governing board of the hospital in accordance with s. 286.0105; or

(b)  Publicly advertise the offer to accept proposals in accordance with s. 255.0525 and receive proposals from all interested and qualified purchasers.

Any sale must be for fair market value, and any sale or lease must comply with all applicable state and federal antitrust laws.

(5)  In the event a hospital operated by a for-profit or not-for-profit Florida corporation receives annually more than $100,000 in revenues from the county, district, or municipality that owns the hospital, the Florida corporation must be accountable to the county, district, or municipality with respect to the manner in which the funds are expended by either:

(a)  Having the revenues subject to annual appropriations by the county, district, or municipality; or

(b)  Where there is a contract to provide revenues to the hospital, the term of which is longer than 12 months, the governing board of the county, district, or municipality must be able to modify the contract upon 12 months notice to the hospital.

A not-for-profit corporation that is subject to this subsection and that does not currently comply with the accountability requirements in this subsection shall have 12 months after the effective date of this act to modify any contracts with the county, district, or municipality in a manner that is consistent with this subsection.

(6)  Unless otherwise expressly stated in the lease documents, the transaction involving the sale or lease of a hospital shall not be construed as:

(a)  A transfer of a governmental function from the county, district, or municipality to the private purchaser or lessee;

(b)  Constituting a financial interest of the public lessor in the private lessee; or

(c)  Making a private lessee an integral part of the public lessor's decisionmaking process.

(7)  The lessee of a hospital, under this section or any special act of the Legislature, operating under a lease shall not be construed to be "acting on behalf of" the lessor as that term is used in statute, unless the lease document expressly provides to the contrary.

(8)(a)  If, whenever the sale of a public hospital by a public agency to a private corporation or other private entity pursuant to this section or pursuant to a special act of the Legislature reflects that:

1.  The private corporation or other private entity purchaser acquires 100 percent ownership in the hospital enterprise;

2.  The private corporation or other private entity purchases the physical plant of the hospital facility and has complete responsibility for the operation and maintenance of the facility, regardless of ownership of the underlying real property;

3.  The public agency seller retains no control over decisionmaking or policymaking for the hospital;

4.  The private corporation or other private entity purchaser receives no funding from the public agency seller other than by contract for services rendered to patients for whom the public agency seller has the responsibility to pay for hospital or medical care;

5.  The public agency seller makes no substantial investment in or loans to the private entity;

6.  The private corporation or other private entity purchaser was not created by the public entity seller; and

7.  The private corporation or other private entity purchaser operates primarily for its own financial interests and not primarily for the interests of the public agency,

such a sale shall be considered a complete sale of the public agency's interest in the hospital.

(b)  A complete sale of a hospital as described in this subsection shall not be construed as:

1.  A transfer of a governmental function from the county, district, or municipality to the private corporation or other private entity purchaser;

2.  Constituting a financial interest of the public agency in the private corporation or other private entity purchaser;

3.  Making the private corporation or other private entity purchaser an "agency" as that term is used in statutes;

4.  Making the private corporation or other private entity purchaser an integral part of the public agency's decisionmaking process; or

5.  Indicating that the private corporation or other private entity purchaser is "acting on behalf of a public agency" as that term is used in statute.

History.--s. 3, ch. 82-147; s. 1, ch. 83-158; s. 1, ch. 84-98; s. 6, ch. 87-92; s. 1, ch. 96-304; s. 6, ch. 99-356; s. 1, ch. 2006-170.

¹Note.--

A.  Section 3, ch. 2006-170, provides that "[t]his act shall take effect [June 12, 2006,] and shall apply to each private corporation or other private entity that has purchased a public hospital regardless of whether such purchase occurred prior to [June 12, 2006]."

B.  Section 2, ch. 2006-170, provides that "[t]he Legislature finds that it is necessary to clarify that a public agency may sell its interest in a public hospital to a private corporation or other private entity and to establish that such a sale results in the privatization of the hospital enterprise. The Legislature finds that the sale of a hospital by a public agency to a private corporation or other private entity purchaser under this section is a complete sale when: the public agency retains no ownership interest in the hospital enterprise or the hospital facility, regardless of who owns the underlying property; the private corporation or other private entity has the complete responsibility for operation and maintenance of the hospital facility; the private corporation or other private entity receives no funds from the public agency seller other than by contract for services provided to patients for whom the public agency has responsibility to pay for medical or hospital services; the public agency makes no substantial investment or loan to the private corporation or other private entity; the private corporation or other private entity is not created by the public agency; and the private corporation or other private entity operates primarily for its own financial interests as opposed to those of the public agency. The Legislature further finds that a complete sale of the hospital under such circumstances eliminates any argument that the private corporation or other private entity continues to perform any governmental or public function; that the public agency retains any financial interest in the private purchaser or the hospital; that the private purchaser is an integral part in the public agency's decisionmaking process or that the private entity is an 'agency' or is 'acting on behalf of a public agency' as those terms are used in statute. The Legislature further finds that the recognition of such sales as being complete sales of the formerly public hospital to a private corporation or other private entity is a public necessity so that private entities that purchase public hospitals are allowed to operate without unnecessary public interference. Some recent court decisions, however, have found that a private corporation or other private entity that purchases a public hospital is still a public agency for some purposes and have failed to recognize that the public agency does not retain any control over the private entity or the formerly public hospital following the complete sale of a public hospital to a private corporation or other private entity. Therefore, the Legislature finds that it is a necessity to confirm its intent that a private corporation or other private entity that purchases a formerly public hospital through a complete sale is not a public agency for any purpose. To find otherwise would place such a private corporation or other private entity that purchases a public hospital at a competitive disadvantage compared to other private entities that own private hospitals that were not formerly public hospitals and would serve as a disincentive for the purchase of a public hospital. Public agencies choose to sell their public hospitals to private corporations or other private entities when the public entity is no longer able to operate the hospital in a fiscally responsible manner and when taxpayers would otherwise be required to finance the operations of the hospital beyond indigent care. If a private corporation or other private entity that purchases a public hospital is treated as a public agency, then public agencies may find it difficult, if not impossible, to find a private corporation or other private entity that is willing to purchase a public hospital. This could force the public agency to close the hospital, which would result in a reduction in health care services to the public, or continue operating the hospital using public tax dollars to subsidize recurring losses. Neither of these options is in the best interest of the public. Thus, the Legislature finds that a private corporation or other private entity that purchases a public hospital and the purchase agreement for that hospital meets the requirements established herein, regardless of whether the corporation had previously leased that public hospital, that private corporation or other private entity is not a public agency for any purpose and does not act on behalf of the public agency."

155.41  Exceptions for sales or leases.--Subsection (3) of s. 155.40, as created by this act, shall apply retroactively to all sales, leases, or other contracts entered into pursuant to this section prior to the effective date of this act, except for:

(1)  Any not-for-profit corporation if the lease or financial support agreement has been declared invalid in a final, nonappealable court order entered prior to April 1, 1996;

(2)  Any sale, lease, or contract that has been declared valid in a final, nonappealable court order entered prior to April 1, 1996; or

(3)  Any public hospital leased by a not-for-profit corporation that filed for protection under the Federal Bankruptcy Code prior to March 1, 1993.

History.--s. 2, ch. 96-304.

155.45  Retirement annuities authorized.--A hospital which provides retirement coverage under the Florida Retirement System and which is terminating coverage because the hospital is closing is authorized to purchase annuities for all personnel with 25 or more years of creditable service who have reached age 55 and who have applied for retirement under the Florida Retirement System. No such annuity shall provide for more than the total difference in retirement income between the retirement benefit based on average monthly compensation and creditable service as of the member's early retirement date and the early retirement benefit. Hospitals as described in this section are authorized to invest funds, purchase annuities, or provide local supplemental retirement programs for purposes of providing annuities for their personnel. All retirement annuities shall comply with s. 14, Art. X of the State Constitution.

History.--s. 1, ch. 88-77.