Senate Bill 1044c1

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    Florida Senate - 1998                           CS for SB 1044

    By the Committee on Health Care and Senator Williams





    317-1801-98

  1                      A bill to be entitled

  2         An act relating to public records and meetings;

  3         creating s. 395.3036, F.S.; providing that the

  4         records of a private corporation that leases a

  5         public hospital or other public health care

  6         facility are confidential and exempt from

  7         public records requirements, and the meetings

  8         of the governing board of such corporation are

  9         exempt from public meeting requirements, except

10         under specified circumstances; providing for

11         future review and repeal; subjecting certain

12         exempt private corporations to s. 155.40(5),

13         F.S.; providing for accountability for

14         expenditure of public funds; providing

15         applicability; providing a finding of public

16         necessity; providing for the continued

17         applicability of the Florida Rules of Civil

18         Procedure and statutory provisions relating to

19         discoverability in civil actions to records and

20         information made exempt in the act; providing

21         an effective date.

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23  Be It Enacted by the Legislature of the State of Florida:

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25         Section 1.  Section 395.3036, Florida Statutes, is

26  created to read:

27         395.3036  Confidentiality of records and meetings;

28  corporations that lease public hospitals and other public

29  health care facilities.--The records of a private corporation

30  that leases a public hospital or other public health care

31  facility are confidential and exempt from the provisions of s.

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    Florida Senate - 1998                           CS for SB 1044
    317-1801-98




  1  119.07(1) and s. 24(a), Art. I of the State Constitution, and

  2  the meetings of the governing board of such a private

  3  corporation are exempt from the provisions of s. 286.011 and

  4  s. 24(b), Art. I of the State Constitution unless:

  5         (1)  The governing board of the entity that owns the

  6  public hospital or other public health care facility was

  7  involved in the formation of the private corporation; or

  8         (2)  More than one-third of the members of the

  9  governing board of the private corporation are concurrently

10  members of the governing board of the entity that owns the

11  public hospital or other public health care facility.

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13  This section is subject to the Open Government Sunset Review

14  Act of 1995 in accordance with s. 119.15, and shall stand

15  repealed on October 2, 2003, unless reviewed and saved from

16  repeal through reenactment by the Legislature.

17         Section 2.  Any private corporation that is exempt from

18  the Public Records Law or Public Meetings Law under section

19  395.3036, Florida Statutes, is subject to the requirements of

20  subsection 155.40(5), Florida Statutes, relating to

21  accountability for the expenditure of public funds.

22         Section 3.  This act applies to all existing lease

23  arrangements with respect to public hospitals or other public

24  health care facilities and to all new lease arrangements that

25  meet the requirements of this act.

26         Section 4.  The Legislature finds that it is a public

27  necessity that all records of a private corporation and all

28  meetings of the governing board of the private corporation be

29  confidential and exempt from public records and public meeting

30  requirements when the private corporation leases a public

31  hospital or other public health care facility and the private

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    Florida Senate - 1998                           CS for SB 1044
    317-1801-98




  1  corporation is not owned or controlled by the public entity

  2  that owns the hospital or other facility. This exemption is a

  3  public necessity because:

  4         (1)  Public hospitals and other public health care

  5  facilities must be able to lease their facilities to private

  6  corporations in order to increase access to health care in

  7  Florida.

  8         (2)  In the absence of the ability to lease the

  9  facility to a private corporation, the public entity's only

10  choice is to sell the facility to a private corporation. Such

11  sales may result in a loss to the public.

12         (3)  The ability to lease the hospital or other health

13  care facility is often the more desirable option and often

14  leads to more income for the public entity that owns the

15  hospital. Without this exemption, public hospitals and other

16  public health care facilities will be unable to attract

17  private corporations to assume responsibility for the

18  operations of public hospitals or other public health care

19  facilities.

20         (4)  The privatization of hospitals and other health

21  care facilities, through lease arrangements, is critical to

22  the delivery of health care in Florida.

23         (5)  More than 20 public hospitals have been leased to

24  private corporations that were not formed by and are not

25  controlled by the public entity that owns the hospital. Those

26  leases were expressly authorized by section 155.40, Florida

27  Statutes, or by special acts of the Legislature.

28         Section 5.  This act does not change existing law

29  relating to discovery of records and information that are

30  otherwise discoverable under the Florida Rules of Civil

31  Procedure or any statutory provision allowing discovery or

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    Florida Senate - 1998                           CS for SB 1044
    317-1801-98




  1  presuit disclosure of such records and information for the

  2  purpose of civil actions.

  3         Section 6.  This act shall take effect upon becoming a

  4  law.

  5

  6          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  7                             SB 1044

  8

  9  This bill makes confidential and exempt from the statutory
    Public Records and Public Meetings Laws the records of a
10  private corporation that leases a public hospital or other
    public health care facility. The confidentiality and exemption
11  protections do not apply if the governing board of a public
    entity is involved in the formation of the private corporation
12  that leases the public facility or more than one-third of the
    members of the governing board members of the private
13  corporation are concurrently members of the governing board of
    the entity that owns the public facility. The exemptions are
14  scheduled for Sunset review or repeal by October 2, 2003. A
    private corporation that leases a public hospital or other
15  public health care facility and is exempted from the Public
    Records Law and the Public Meetings Law must participate in
16  the public entity's appropriations process to receive more
    than $100,000 from the public entity that owns such a
17  facility. The confidentiality and Public Records Law and
    Public Meetings Law exemptions are made to apply retroactively
18  and prospectively to all existing public health facility lease
    arrangements that meet the requirements of the act. A
19  statement of public necessity is provided. The applicability
    of current law relating to civil actions and the Florida Rules
20  of Civil Procedure continue for records and information made
    confidential and exempt in the bill.
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