Senate Bill 1394c1

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    Florida Senate - 2000                           CS for SB 1394

    By the Committee on Comprehensive Planning, Local and Military
    Affairs; and Senator Mitchell




    316-1948-00

  1                      A bill to be entitled

  2         An act relating to discretionary sales

  3         surtaxes; amending s. 212.055, F.S.; expanding

  4         the authorized use of the indigent care surtax

  5         to include trauma centers; renaming the surtax;

  6         requiring the plan set out in the ordinance to

  7         include additional provisions concerning Level

  8         I trauma centers; providing requirements for

  9         annual disbursements to hospitals on October 1

10         to be in recognition of the Level I trauma

11         status and to be in addition to a base contract

12         amount plus any negotiated additions to

13         indigent care funding; authorizing certain

14         counties to levy a voter-approved indigent care

15         surtax; providing for the surtax to be

16         conditioned upon approval by a majority vote of

17         the electors; limiting the rate of the surtax;

18         providing requirements for the ordinance

19         adopted by the governing body of the county

20         which imposes the surtax; providing for

21         proceeds of the surtax to be used to provide

22         health care services to qualified residents;

23         defining the term "qualified resident";

24         providing for the administration of proceeds

25         collected pursuant to the surtax; limiting the

26         total amount of certain local option sales

27         surtaxes that may be imposed by a county;

28         providing an effective date.

29

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

31

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1         Section 1.  Subsection (4) of section 212.055, Florida

  2  Statutes, is amended, and subsection (7) is added to that

  3  section, to read:

  4         212.055  Discretionary sales surtaxes; legislative

  5  intent; authorization and use of proceeds.--It is the

  6  legislative intent that any authorization for imposition of a

  7  discretionary sales surtax shall be published in the Florida

  8  Statutes as a subsection of this section, irrespective of the

  9  duration of the levy.  Each enactment shall specify the types

10  of counties authorized to levy; the rate or rates which may be

11  imposed; the maximum length of time the surtax may be imposed,

12  if any; the procedure which must be followed to secure voter

13  approval, if required; the purpose for which the proceeds may

14  be expended; and such other requirements as the Legislature

15  may provide.  Taxable transactions and administrative

16  procedures shall be as provided in s. 212.054.

17         (4)  INDIGENT CARE AND TRAUMA CENTER SURTAX.--

18         (a)  The governing body in each county the government

19  of which is not consolidated with that of one or more

20  municipalities, which has a population of at least 800,000

21  residents and is not authorized to levy a surtax under

22  subsection (5) or subsection (6), may levy, pursuant to an

23  ordinance either approved by an extraordinary vote of the

24  governing body or conditioned to take effect only upon

25  approval by a majority vote of the electors of the county

26  voting in a referendum, a discretionary sales surtax at a rate

27  that may not exceed 0.5 percent.

28         (b)  If the ordinance is conditioned on a referendum, a

29  statement that includes a brief and general description of the

30  purposes to be funded by the surtax and that conforms to the

31  requirements of s. 101.161 shall be placed on the ballot by

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1  the governing body of the county.  The following questions

  2  shall be placed on the ballot:

  3

  4                     FOR THE. . . .CENTS TAX

  5                   AGAINST THE. . . .CENTS TAX

  6

  7         (c)  The ordinance adopted by the governing body

  8  providing for the imposition of the surtax shall set forth a

  9  plan for providing health care services to qualified

10  residents, as defined in paragraph (d).  Such plan and

11  subsequent amendments to it shall fund a broad range of health

12  care services for both indigent persons and the medically

13  poor, including, but not limited to, primary care and

14  preventive care as well as hospital care. The plan must also

15  address the services to be provided by the Level I trauma

16  center. It shall emphasize a continuity of care in the most

17  cost-effective setting, taking into consideration both a high

18  quality of care and geographic access.  Where consistent with

19  these objectives, it shall include, without limitation,

20  services rendered by physicians, clinics, community hospitals,

21  mental health centers, and alternative delivery sites, as well

22  as at least one regional referral hospital where appropriate.

23  It shall provide that agreements negotiated between the county

24  and providers, including hospitals with a Level I trauma

25  center, will include reimbursement methodologies that take

26  into account the cost of services rendered to eligible

27  patients, recognize hospitals that render a disproportionate

28  share of indigent care, provide other incentives to promote

29  the delivery of charity care, promote the advancement of

30  technology in medical services, recognize the level of

31  responsiveness to medical needs in trauma cases, and require

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1  cost containment including, but not limited to, case

  2  management. It must also provide that any hospitals that are

  3  owned and operated by government entities on May 21, 1991,

  4  must, as a condition of receiving funds under this subsection,

  5  afford public access equal to that provided under s. 286.011

  6  as to meetings of the governing board, the subject of which is

  7  budgeting resources for the rendition of charity care as that

  8  term is defined in the Florida Hospital Uniform Reporting

  9  System (FHURS) manual referenced in s. 408.07.  The plan shall

10  also include innovative health care programs that provide

11  cost-effective alternatives to traditional methods of service

12  delivery and funding.

13         (d)  For the purpose of this subsection, the term

14  "qualified resident" means residents of the authorizing county

15  who are:

16         1.  Qualified as indigent persons as certified by the

17  authorizing county;

18         2.  Certified by the authorizing county as meeting the

19  definition of the medically poor, defined as persons having

20  insufficient income, resources, and assets to provide the

21  needed medical care without using resources required to meet

22  basic needs for shelter, food, clothing, and personal

23  expenses; or not being eligible for any other state or federal

24  program, or having medical needs that are not covered by any

25  such program; or having insufficient third-party insurance

26  coverage.  In all cases, the authorizing county is intended to

27  serve as the payor of last resort; or

28         3.  Participating in innovative, cost-effective

29  programs approved by the authorizing county.

30         (e)  Moneys collected pursuant to this subsection

31  remain the property of the state and shall be distributed by

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1  the Department of Revenue on a regular and periodic basis to

  2  the clerk of the circuit court as ex officio custodian of the

  3  funds of the authorizing county. The clerk of the circuit

  4  court shall:

  5         1.  Maintain the moneys in an indigent health care

  6  trust fund;

  7         2.  Invest any funds held on deposit in the trust fund

  8  pursuant to general law; and

  9         3.  Disburse the funds, including any interest earned,

10  to any provider of health care services, as provided in

11  paragraphs (c) and (d), upon directive from the authorizing

12  county. However, if a county has a population of at least

13  800,000 residents and has levied the surtax authorized in this

14  subsection, notwithstanding any directive from the authorizing

15  county, on October 1 of each calendar year, the clerk of the

16  court shall issue a check in the amount of $6 million to a

17  hospital in its jurisdiction that has a Level I trauma center

18  or shall issue a check in the amount of $3 million to a

19  hospital in its jurisdiction that has a Level I trauma center

20  if that county enacts and implements a hospital lien law in

21  accordance with chapter 98-499, Laws of Florida. The issuance

22  of the checks on October 1 of each year is provided in

23  recognition of the Level I trauma center status and shall be

24  in addition to the base contract amount received during fiscal

25  year 1999-2000 and any additional amount negotiated to the

26  base contract.

27         (f)  Notwithstanding any other provision of this

28  section, a county shall not levy local option sales surtaxes

29  authorized in this subsection and subsections (2) and (3) in

30  excess of a combined rate of 1 percent.

31         (g)  This subsection expires October 1, 2005.

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1         (7)  VOTER-APPROVED INDIGENT CARE SURTAX.--

  2         (a)  The governing body in each county that has a

  3  population of less than 800,000 residents may levy an indigent

  4  care surtax pursuant to an ordinance conditioned to take

  5  effect only upon approval by a majority vote of the electors

  6  of the county voting in a referendum. The surtax may be levied

  7  at a rate not to exceed 0.5 percent.

  8         (b)  A statement that includes a brief and general

  9  description of the purposes to be funded by the surtax and

10  that conforms to the requirements of s. 101.161 shall be

11  placed on the ballot by the governing body of the county. The

12  following questions shall be placed on the ballot:

13

14                     FOR THE. . . .CENTS TAX

15                   AGAINST THE. . . .CENTS TAX

16

17         (c)  The ordinance adopted by the governing body

18  providing for the imposition of the surtax must set forth a

19  plan for providing health care services to qualified

20  residents, as defined in paragraph (d). The plan and

21  subsequent amendments to it shall fund a broad range of health

22  care services for indigent persons and the medically poor,

23  including, but not limited to, primary care and preventive

24  care, as well as hospital care. It shall emphasize a

25  continuity of care in the most cost-effective setting, taking

26  into consideration a high quality of care and geographic

27  access. Where consistent with these objectives, it shall

28  include, without limitation, services rendered by physicians,

29  clinics, community hospitals, mental health centers, and

30  alternative delivery sites, as well as at least one regional

31  referral hospital where appropriate. It shall provide that

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1  agreements negotiated between the county and providers will

  2  include reimbursement methodologies that take into account the

  3  cost of services rendered to eligible patients, recognize

  4  hospitals that render a disproportionate share of indigent

  5  care, provide other incentives to promote the delivery of

  6  charity care, and require cost containment including, but not

  7  limited to, case management. The plan must also include

  8  innovative health care programs that provide cost-effective

  9  alternatives to traditional methods of service delivery and

10  funding.

11         (d)  For the purpose of this subsection, the term

12  "qualified resident" means residents of the authorizing county

13  who are:

14         1.  Qualified as indigent persons as certified by the

15  authorizing county;

16         2.  Certified by the authorizing county as meeting the

17  definition of the medically poor, defined as persons having

18  insufficient income, resources, and assets to provide the

19  needed medical care without using resources required to meet

20  basic needs for shelter, food, clothing, and personal

21  expenses; not being eligible for any other state or federal

22  program or having medical needs that are not covered by any

23  such program; or having insufficient third-party insurance

24  coverage. In all cases, the authorizing county shall serve as

25  the payor of last resort; or

26         3.  Participating in innovative, cost-effective

27  programs approved by the authorizing county.

28         (e)  Moneys collected pursuant to this subsection

29  remain the property of the state and shall be distributed by

30  the Department of Revenue on a regular and periodic basis to

31  the clerk of the circuit court as ex officio custodian of the

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    Florida Senate - 2000                           CS for SB 1394
    316-1948-00




  1  funds of the authorizing county. The clerk of the circuit

  2  court shall:

  3         1.  Maintain the moneys in an indigent health care

  4  trust fund;

  5         2.  Invest any funds held on deposit in the trust fund

  6  pursuant to general law; and

  7         3.  Disburse the funds, including any interest earned,

  8  to any provider of health care services, as provided in

  9  paragraphs (c) and (d), upon directive from the authorizing

10  county.

11         (f)  Notwithstanding any other provision of this

12  section, a county may not levy local option sales surtaxes

13  authorized in this subsection and subsections (2) and (3) in

14  excess of a combined rate of 1 percent.

15         Section 2.  This act shall take effect upon becoming a

16  law.

17

18          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
19                             SB 1394

20

21  The CS differs from the bill as filed in the following ways:

22  The CS creates a new "VOTER-APPROVED INDIGENT CARE SURTAX."
    Counties with less than 800,000 residents could impose the
23  surtax, with referendum approval.

24  The CS also renames the INDIGENT CARE SURTAX as the INDIGENT
    CARE AND TRAUMA CENTER SURTAX, and requires tax proceeds be
25  provided to a hospital with a Level I trauma center in the
    county.
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