Bill Text: HB 0751

HB 0751

2003

CHAMBER ACTION

The Committee on State Administration recommends the following:

Committee Substitute

Remove the entire bill and insert:

A bill to be entitled

An act relating to the H. Lee Moffitt Cancer Center and

Research Institute; amending s. 1004.43, F.S.; authorizing

the establishment of for-profit subsidiaries of the

governing corporation; providing that the contract with

the State Board of Education shall permit the use of lands

and facilities for research, education, treatment,

prevention, and early detection of cancer; authorizing the

governing corporation and its subsidiaries to obtain their

own property insurance coverage; providing that certain

appropriations shall be paid directly to the board of

directors of the governing corporation; changing the

appointing authority for certain members of the council of

scientific advisors; providing an effective date.

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

Section 1. Section 1004.43, Florida Statutes, is amended

to read:

1004.43 H. Lee Moffitt Cancer Center and Research

Institute.--There is established the H. Lee Moffitt Cancer

Center and Research Institute at the University of South

Florida.

(1) The State Board of Education shall enter into an

agreement for the utilization of the facilities on the campus of

the University of South Florida to be known as the H. Lee

Moffitt Cancer Center and Research Institute, including all

furnishings, equipment, and other chattels used in the operation

of said facilities, with a Florida not-for-profit corporation

organized solely for the purpose of governing and operating the

H. Lee Moffitt Cancer Center and Research Institute. This not-

for-profit corporation, acting as an instrumentality of the

State of Florida, shall govern and operate the H. Lee Moffitt

Cancer Center and Research Institute in accordance with the

terms of the agreement between the State Board of Education and

the not-for-profit corporation. The not-for-profit corporation

may, with the prior approval of the State Board of Education,

create ~~not-for-profit~~corporate subsidiaries to fulfill its

mission. The not-for-profit corporation and its subsidiaries are

authorized to receive, hold, invest, and administer property and

any moneys received from private, local, state, and federal

sources, as well as technical and professional income generated

or derived from practice activities of the institute, for the

benefit of the institute and the fulfillment of its mission. The

affairs of the corporation shall be managed by a board of

directors who shall serve without compensation. The President of

the University of South Florida and the chair of the State Board

of Education, or his or her designee, shall be directors of the

not-for-profit corporation, together with 5 representatives of

the state universities and no more than 14 nor fewer than 10

directors who are not medical doctors or state employees. Each

director shall have only one vote, shall serve a term of 3

years, and may be reelected to the board. Other than the

President of the University of South Florida and the chair of

the State Board of Education, directors shall be elected by a

majority vote of the board. The chair of the board of directors

shall be selected by majority vote of the directors.

(2) The State Board of Education shall provide in the

agreement with the not-for-profit corporation for the following:

(a) Approval of the articles of incorporation of the not-

for-profit corporation by the State Board of Education.

(b) Approval of the articles of incorporation of any not-

for-profit corporate subsidiary created by the not-for-profit

corporation.

personnel by the not-for-profit corporation and its subsidiaries

for research, education, treatment, prevention, and the early

detection of cancer andfor mutually approved teaching and

research programs conducted by the University of South Florida

or other accredited medical schools or research institutes.

(d) Preparation of an annual financial audit of the not-

for-profit corporation's accounts and records and the accounts

and records of any subsidiaries to be conducted by an

independent certified public accountant. The annual audit report

shall include a management letter, as defined in s. 11.45, and

shall be submitted to the Auditor General and the State Board of

Education. The State Board of Education, the Auditor General,

and the Office of Program Policy Analysis and Government

Accountability shall have the authority to require and receive

from the not-for-profit corporation and any subsidiaries or from

their independent auditor any detail or supplemental data

relative to the operation of the not-for-profit corporation or

subsidiary.

(e) Provision by the not-for-profit corporation and its

subsidiaries of equal employment opportunities to all persons

regardless of race, color, religion, sex, age, or national

origin.

(3) The State Board of Education is authorized to secure

comprehensive general liability protection, including

professional liability protection, for the not-for-profit

100

corporation and its subsidiaries pursuant to s. 1004.24. The

101

not- for-profit corporation and its subsidiaries shall be exempt

102

from any participation in any property insurance trust fund

103

established by law, including any property insurance trust fund

104

established pursuant to chapter 284, so long as the not-for-

105

profit corporation and its subsidiaries maintain property

106

insurance protection with comparable or greater coverage limits.

107

(4) In the event that the agreement between the not-for-

108

profit corporation and the State Board of Education is

109

terminated for any reason, the State Board of Education shall

110

resume governance and operation of said facilities.

111

(5) The institute shall be administered by a chief

112

executive officer who shall serve at the pleasure of the board

113

of directors of the not-for-profit corporation and who shall

114

have the following powers and duties subject to the approval of

115

the board of directors:

116

(a) The chief executive officer shall establish programs

117

which fulfill the mission of the institute in research,

118

education, treatment, prevention, and the early detection of

119

cancer; however, the chief executive officer shall not establish

120

academic programs for which academic credit is awarded and which

121

terminate in the conference of a degree without prior approval

122

of the State Board of Education.

123

(b) The chief executive officer shall have control over

124

the budget and the dollars appropriated or donated to the

125

institute from private, local, state, and federal sources, as

126

well as technical and professional income generated or derived

127

from practice activities of the institute. However, professional

128

income generated by university faculty from practice activities

129

at the institute shall be shared between the institute and the

130

university as determined by the chief executive officer and the

131

appropriate university dean or vice president.

132

133

carry out the research, patient care, and educational activities

134

of the institute and determine compensation, benefits, and terms

135

of service. Members of the institute shall be eligible to hold

136

concurrent appointments at affiliated academic institutions.

137

University faculty shall be eligible to hold concurrent

138

appointments at the institute.

139

(d) The chief executive officer shall have control over

140

the use and assignment of space and equipment within the

141

facilities.

142

(e) The chief executive officer shall have the power to

143

create the administrative structure necessary to carry out the

144

mission of the institute.

145

(f) The chief executive officer shall have a reporting

146

relationship to the Commissioner of Education.

147

(g) The chief executive officer shall provide a copy of

148

the institute's annual report to the Governor and Cabinet, the

149

President of the Senate, the Speaker of the House of

150

Representatives, and the chair of the State Board of Education.

151

(6) The board of directors of the not-for-profit

152

corporation shall create a council of scientific advisers to the

153

chief executive officer comprised of leading researchers,

154

physicians, and scientists. This council shall review programs

155

and recommend research priorities and initiatives so as to

156

maximize the state's investment in the institute. The council

157

shall be appointed by the board of directors of the not-for-

158

profit corporation ~~and shall include five appointees of the~~

159

~~State Board of Education~~. Each member of the council shall be

160

appointed to serve a 2-year term and may be reappointed to the

161

council.

162

(7) In carrying out the provisions of this section, the

163

not-for-profit corporation and its subsidiaries are not

164

"agencies" within the meaning of s. 20.03(11).

165

(8)(a) Records of the not-for-profit corporation and of

166

its subsidiaries are public records unless made confidential or

167

exempt by law.

168

(b) Proprietary confidential business information is

169

confidential and exempt from the provisions of s. 119.07(1) and

170

s. 24(a), Art. I of the State Constitution. However, the Auditor

171

General, the Office of Program Policy Analysis and Government

172

Accountability, and the State Board of Education, pursuant to

173

their oversight and auditing functions, must be given access to

174

all proprietary confidential business information upon request

175

and without subpoena and must maintain the confidentiality of

176

information so received. As used in this paragraph, the term

177

"proprietary confidential business information" means

178

information, regardless of its form or characteristics, which is

179

owned or controlled by the not-for-profit corporation or its

180

subsidiaries; is intended to be and is treated by the not-for-

181

profit corporation or its subsidiaries as private and the

182

disclosure of which would harm the business operations of the

183

not-for-profit corporation or its subsidiaries; has not been

184

intentionally disclosed by the corporation or its subsidiaries

185

unless pursuant to law, an order of a court or administrative

186

body, a legislative proceeding pursuant to s. 5, Art. III of the

187

State Constitution, or a private agreement that provides that

188

the information may be released to the public; and which is

189

information concerning:

190

1. Internal auditing controls and reports of internal

191

auditors;

192

2. Matters reasonably encompassed in privileged attorney-

193

client communications;

194

3. Contracts for managed-care arrangements, including

195

preferred provider organization contracts, health maintenance

196

organization contracts, and exclusive provider organization

197

contracts, and any documents directly relating to the

198

negotiation, performance, and implementation of any such

199

contracts for managed-care arrangements;

200

4. Bids or other contractual data, banking records, and

201

credit agreements the disclosure of which would impair the

202

efforts of the not-for-profit corporation or its subsidiaries to

203

contract for goods or services on favorable terms;

204

5. Information relating to private contractual data, the

205

disclosure of which would impair the competitive interest of the

206

provider of the information;

207

6. Corporate officer and employee personnel information;

208

7. Information relating to the proceedings and records of

209

credentialing panels and committees and of the governing board

210

of the not-for-profit corporation or its subsidiaries relating

211

to credentialing;

212

8. Minutes of meetings of the governing board of the not-

213

for-profit corporation and its subsidiaries, except minutes of

214

meetings open to the public pursuant to subsection (9);

215

9. Information that reveals plans for marketing services

216

that the corporation or its subsidiaries reasonably expect to be

217

provided by competitors;

218

10. Trade secrets as defined in s. 688.002, including

219

reimbursement methodologies or rates; or

220

11. The identity of donors or prospective donors of

221

property who wish to remain anonymous or any information

222

identifying such donors or prospective donors. The anonymity of

223

these donors or prospective donors must be maintained in the

224

auditor's report.

225

226

As used in this paragraph, the term "managed care" means systems

227

or techniques generally used by third-party payors or their

228

agents to affect access to and control payment for health care

229

services. Managed-care techniques most often include one or more

230

of the following: prior, concurrent, and retrospective review of

231

the medical necessity and appropriateness of services or site of

232

services; contracts with selected health care providers;

233

financial incentives or disincentives related to the use of

234

specific providers, services, or service sites; controlled

235

access to and coordination of services by a case manager; and

236

payor efforts to identify treatment alternatives and modify

237

benefit restrictions for high-cost patient care.

238

(9) Meetings of the governing board of the not-for-profit

239

corporation and meetings of the subsidiaries of the not-for-

240

profit corporation at which the expenditure of dollars

241

appropriated to the not-for-profit corporation by the state are

242

discussed or reported must remain open to the public in

243

accordance with s. 286.011 and s. 24(b), Art. I of the State

244

Constitution, unless made confidential or exempt by law. Other

245

meetings of the governing board of the not-for-profit

246

corporation and of the subsidiaries of the not-for-profit

247

corporation are exempt from s. 286.011 and s. 24(b), Art. I of

248

the State Constitution.

249

(10) In addition to the continuing appropriation to the

250

institute provided in s. 210.20(2), any appropriation to the

251

institute provided in a general appropriations act shall be paid

252

directly to the board of directors of the not-for-profit

253

corporation by warrant drawn by the Chief Financial Officer from

254

the State Treasury.

255

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

256