HB 0751 2003
1	CHAMBER ACTION
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6	The Committee on State Administration recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to the H. Lee Moffitt Cancer Center and
12	Research Institute and the Florida Alzheimer's Center and
13	Research Institute at the University of South Florida;
14	amending s. 1004.43, F.S.; authorizing the establishment
15	of for-profit subsidiaries of the governing corporation;
16	providing that the contract with the State Board of
17	Education shall permit the use of lands and facilities for
18	research, education, treatment, prevention, and early
19	detection of cancer; authorizing the governing corporation
20	and its subsidiaries to obtain their own property
21	insurance coverage; providing that certain appropriations
22	shall be paid directly to the board of directors of the
23	governing corporation; changing the appointing authority
24	for certain members of the council of scientific advisors;
25	amending s. 1004.445, F.S.; deleting obsolete language;
26	authorizing the establishment of for-profit subsidiaries
27	of the governing corporation; providing that the contract
28	with the State Board of Education shall permit the use of
29	lands and facilities for research, education, treatment,
30	prevention, and early detection of Alzheimer's disease;
31	authorizing the governing corporation and its subsidiaries
32	to obtain their own property insurance coverage; providing
33	that certain appropriations shall be paid directly to the
34	board of directors of the governing corporation; changing
35	the appointing authority for certain members of the
36	council of scientific advisors; providing an effective
37	date.
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39	Be It Enacted by the Legislature of the State of Florida:
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41	Section 1. Section 1004.43, Florida Statutes, is amended
42	to read:
43	1004.43 H. Lee Moffitt Cancer Center and Research
44	Institute.--There is established the H. Lee Moffitt Cancer
45	Center and Research Institute at the University of South
46	Florida.
47	(1) The State Board of Education shall enter into an
48	agreement for the utilization of the facilities on the campus of
49	the University of South Florida to be known as the H. Lee
50	Moffitt Cancer Center and Research Institute, including all
51	furnishings, equipment, and other chattels used in the operation
52	of said facilities, with a Florida not-for-profit corporation
53	organized solely for the purpose of governing and operating the
54	H. Lee Moffitt Cancer Center and Research Institute. This not-
55	for-profit corporation, acting as an instrumentality of the
56	State of Florida, shall govern and operate the H. Lee Moffitt
57	Cancer Center and Research Institute in accordance with the
58	terms of the agreement between the State Board of Education and
59	the not-for-profit corporation. The not-for-profit corporation
60	may, with the prior approval of the State Board of Education,
61	create not-for-profitcorporate subsidiaries to fulfill its
62	mission. The not-for-profit corporation and its subsidiaries are
63	authorized to receive, hold, invest, and administer property and
64	any moneys received from private, local, state, and federal
65	sources, as well as technical and professional income generated
66	or derived from practice activities of the institute, for the
67	benefit of the institute and the fulfillment of its mission. The
68	affairs of the corporation shall be managed by a board of
69	directors who shall serve without compensation. The President of
70	the University of South Florida and the chair of the State Board
71	of Education, or his or her designee, shall be directors of the
72	not-for-profit corporation, together with 5 representatives of
73	the state universities and no more than 14 nor fewer than 10
74	directors who are not medical doctors or state employees. Each
75	director shall have only one vote, shall serve a term of 3
76	years, and may be reelected to the board. Other than the
77	President of the University of South Florida and the chair of
78	the State Board of Education, directors shall be elected by a
79	majority vote of the board. The chair of the board of directors
80	shall be selected by majority vote of the directors.
81	(2) The State Board of Education shall provide in the
82	agreement with the not-for-profit corporation for the following:
83	(a) Approval of the articles of incorporation of the not-
84	for-profit corporation by the State Board of Education.
85	(b) Approval of the articles of incorporation of any not-
86	for-profit corporate subsidiary created by the not-for-profit
87	corporation.
88	(c) Utilization of lands,hospital facilities,and
89	personnel by the not-for-profit corporation and its subsidiaries
90	for research, education, treatment, prevention, and the early
91	detection of cancer andfor mutually approved teaching and
92	research programs conducted by the University of South Florida
93	or other accredited medical schools or research institutes.
94	(d) Preparation of an annual financial audit of the not-
95	for-profit corporation's accounts and records and the accounts
96	and records of any subsidiaries to be conducted by an
97	independent certified public accountant. The annual audit report
98	shall include a management letter, as defined in s. 11.45, and
99	shall be submitted to the Auditor General and the State Board of
100	Education. The State Board of Education, the Auditor General,
101	and the Office of Program Policy Analysis and Government
102	Accountability shall have the authority to require and receive
103	from the not-for-profit corporation and any subsidiaries or from
104	their independent auditor any detail or supplemental data
105	relative to the operation of the not-for-profit corporation or
106	subsidiary.
107	(e) Provision by the not-for-profit corporation and its
108	subsidiaries of equal employment opportunities to all persons
109	regardless of race, color, religion, sex, age, or national
110	origin.
111	(3) The State Board of Education is authorized to secure
112	comprehensive general liability protection, including
113	professional liability protection, for the not-for-profit
114	corporation and its subsidiaries pursuant to s. 1004.24. The
115	not-for-profit corporation and its subsidiaries shall be exempt
116	from any participation in any property insurance trust fund
117	established by law, including any property insurance trust fund
118	established pursuant to chapter 284, so long as the not-for-
119	profit corporation and its subsidiaries maintain property
120	insurance protection with comparable or greater coverage limits.
121	(4) In the event that the agreement between the not-for-
122	profit corporation and the State Board of Education is
123	terminated for any reason, the State Board of Education shall
124	resume governance and operation of said facilities.
125	(5) The institute shall be administered by a chief
126	executive officer who shall serve at the pleasure of the board
127	of directors of the not-for-profit corporation and who shall
128	have the following powers and duties subject to the approval of
129	the board of directors:
130	(a) The chief executive officer shall establish programs
131	which fulfill the mission of the institute in research,
132	education, treatment, prevention, and the early detection of
133	cancer; however, the chief executive officer shall not establish
134	academic programs for which academic credit is awarded and which
135	terminate in the conference of a degree without prior approval
136	of the State Board of Education.
137	(b) The chief executive officer shall have control over
138	the budget and the dollars appropriated or donated to the
139	institute from private, local, state, and federal sources, as
140	well as technical and professional income generated or derived
141	from practice activities of the institute. However, professional
142	income generated by university faculty from practice activities
143	at the institute shall be shared between the institute and the
144	university as determined by the chief executive officer and the
145	appropriate university dean or vice president.
146	(c) The chief executive officer shall appoint members to
147	carry out the research, patient care, and educational activities
148	of the institute and determine compensation, benefits, and terms
149	of service. Members of the institute shall be eligible to hold
150	concurrent appointments at affiliated academic institutions.
151	University faculty shall be eligible to hold concurrent
152	appointments at the institute.
153	(d) The chief executive officer shall have control over
154	the use and assignment of space and equipment within the
155	facilities.
156	(e) The chief executive officer shall have the power to
157	create the administrative structure necessary to carry out the
158	mission of the institute.
159	(f) The chief executive officer shall have a reporting
160	relationship to the Commissioner of Education.
161	(g) The chief executive officer shall provide a copy of
162	the institute's annual report to the Governor and Cabinet, the
163	President of the Senate, the Speaker of the House of
164	Representatives, and the chair of the State Board of Education.
165	(6) The board of directors of the not-for-profit
166	corporation shall create a council of scientific advisers to the
167	chief executive officer comprised of leading researchers,
168	physicians, and scientists. This council shall review programs
169	and recommend research priorities and initiatives so as to
170	maximize the state's investment in the institute. The council
171	shall be appointed by the board of directors of the not-for-
172	profit corporation and shall include five appointees of the
173	State Board of Education. Each member of the council shall be
174	appointed to serve a 2-year term and may be reappointed to the
175	council.
176	(7) In carrying out the provisions of this section, the
177	not-for-profit corporation and its subsidiaries are not
178	"agencies" within the meaning of s. 20.03(11).
179	(8)(a) Records of the not-for-profit corporation and of
180	its subsidiaries are public records unless made confidential or
181	exempt by law.
182	(b) Proprietary confidential business information is
183	confidential and exempt from the provisions of s. 119.07(1) and
184	s. 24(a), Art. I of the State Constitution. However, the Auditor
185	General, the Office of Program Policy Analysis and Government
186	Accountability, and the State Board of Education, pursuant to
187	their oversight and auditing functions, must be given access to
188	all proprietary confidential business information upon request
189	and without subpoena and must maintain the confidentiality of
190	information so received. As used in this paragraph, the term
191	"proprietary confidential business information" means
192	information, regardless of its form or characteristics, which is
193	owned or controlled by the not-for-profit corporation or its
194	subsidiaries; is intended to be and is treated by the not-for-
195	profit corporation or its subsidiaries as private and the
196	disclosure of which would harm the business operations of the
197	not-for-profit corporation or its subsidiaries; has not been
198	intentionally disclosed by the corporation or its subsidiaries
199	unless pursuant to law, an order of a court or administrative
200	body, a legislative proceeding pursuant to s. 5, Art. III of the
201	State Constitution, or a private agreement that provides that
202	the information may be released to the public; and which is
203	information concerning:
204	1. Internal auditing controls and reports of internal
205	auditors;
206	2. Matters reasonably encompassed in privileged attorney-
207	client communications;
208	3. Contracts for managed-care arrangements, including
209	preferred provider organization contracts, health maintenance
210	organization contracts, and exclusive provider organization
211	contracts, and any documents directly relating to the
212	negotiation, performance, and implementation of any such
213	contracts for managed-care arrangements;
214	4. Bids or other contractual data, banking records, and
215	credit agreements the disclosure of which would impair the
216	efforts of the not-for-profit corporation or its subsidiaries to
217	contract for goods or services on favorable terms;
218	5. Information relating to private contractual data, the
219	disclosure of which would impair the competitive interest of the
220	provider of the information;
221	6. Corporate officer and employee personnel information;
222	7. Information relating to the proceedings and records of
223	credentialing panels and committees and of the governing board
224	of the not-for-profit corporation or its subsidiaries relating
225	to credentialing;
226	8. Minutes of meetings of the governing board of the not-
227	for-profit corporation and its subsidiaries, except minutes of
228	meetings open to the public pursuant to subsection (9);
229	9. Information that reveals plans for marketing services
230	that the corporation or its subsidiaries reasonably expect to be
231	provided by competitors;
232	10. Trade secrets as defined in s. 688.002, including
233	reimbursement methodologies or rates; or
234	11. The identity of donors or prospective donors of
235	property who wish to remain anonymous or any information
236	identifying such donors or prospective donors. The anonymity of
237	these donors or prospective donors must be maintained in the
238	auditor's report.
239
240	As used in this paragraph, the term "managed care" means systems
241	or techniques generally used by third-party payors or their
242	agents to affect access to and control payment for health care
243	services. Managed-care techniques most often include one or more
244	of the following: prior, concurrent, and retrospective review of
245	the medical necessity and appropriateness of services or site of
246	services; contracts with selected health care providers;
247	financial incentives or disincentives related to the use of
248	specific providers, services, or service sites; controlled
249	access to and coordination of services by a case manager; and
250	payor efforts to identify treatment alternatives and modify
251	benefit restrictions for high-cost patient care.
252	(9) Meetings of the governing board of the not-for-profit
253	corporation and meetings of the subsidiaries of the not-for-
254	profit corporation at which the expenditure of dollars
255	appropriated to the not-for-profit corporation by the state are
256	discussed or reported must remain open to the public in
257	accordance with s. 286.011 and s. 24(b), Art. I of the State
258	Constitution, unless made confidential or exempt by law. Other
259	meetings of the governing board of the not-for-profit
260	corporation and of the subsidiaries of the not-for-profit
261	corporation are exempt from s. 286.011 and s. 24(b), Art. I of
262	the State Constitution.
263	(10) In addition to the continuing appropriation to the
264	institute provided in s. 210.20(2), any appropriation to the
265	institute provided in a general appropriations act shall be paid
266	directly to the board of directors of the not-for-profit
267	corporation by warrant drawn by the Chief Financial Officer from
268	the State Treasury.
269	Section 2. Section 1004.445, Florida Statutes, is amended
270	to read:
271	1004.445 Florida Alzheimer's Center and Research
272	Institute.--
273	(1) Effective July 1, 2002,The Florida Alzheimer's Center
274	and Research Institute is established at the University of South
275	Florida.
276	(2)(a) The State Board of Education shall enter into an
277	agreement for the utilization of the facilities on the campus of
278	the University of South Florida to be known as the Florida
279	Alzheimer's Center and Research Institute, including all
280	furnishings, equipment, and other chattels used in the operation
281	of those facilities, with a Florida not-for-profit corporation
282	organized solely for the purpose of governing and operating the
283	Florida Alzheimer's Center and Research Institute. This not-for-
284	profit corporation, acting as an instrumentality of the state,
285	shall govern and operate the Florida Alzheimer's Center and
286	Research Institute in accordance with the terms of the agreement
287	between the State Board of Education and the not-for-profit
288	corporation. The not-for-profit corporation may, with the prior
289	approval of the State Board of Education, create not-for-profit
290	corporate subsidiaries to fulfill its mission. The not-for-
291	profit corporation and its subsidiaries are authorized to
292	receive, hold, invest, and administer property and any moneys
293	acquired from private, local, state, and federal sources, as
294	well as technical and professional income generated or derived
295	from practice activities of the institute, for the benefit of
296	the institute and the fulfillment of its mission.
297	(b)1. The affairs of the not-for-profit corporation shall
298	be managed by a board of directors who shall serve without
299	compensation. The board of directors shall consist of the
300	President of the University of South Florida and the chair of
301	the State Board of Education, or their designees, 5
302	representatives of the state universities, and no fewer than 9
303	nor more than 14 representatives of the public who are neither
304	medical doctors nor state employees. Each director who is a
305	representative of a state university or of the public shall be
306	appointed to serve a term of 3 years. The chair of the board of
307	directors shall be selected by a majority vote of the directors.
308	Each director shall have only one vote.
309	2. The initial board of directors shall consist of the
310	President of the University of South Florida and the chair of
311	the State Board of Education, or their designees; the five
312	university representatives, of whom one shall be appointed by
313	the Governor, two by the President of the Senate, and two by the
314	Speaker of the House of Representatives; and nine public
315	representatives, of whom three shall be appointed by the
316	Governor, three by the President of the Senate, and three by the
317	Speaker of the House of Representatives. Upon the expiration of
318	the terms of the initial appointed directors, all directors
319	subject to 3-year terms of office under this paragraph shall be
320	appointed by a majority vote of the directors and the board may
321	be expanded to include additional public representative
322	directors up to the maximum number allowed. Any vacancy in
323	office shall be filled for the remainder of the term by majority
324	vote of the directors. Any director may be reappointed.
325	(3) The State Board of Education shall provide in the
326	agreement with the not-for-profit corporation for the following:
327	(a) Approval by the State Board of Education of the
328	articles of incorporation of the not-for-profit corporation.
329	(b) Approval by the State Board of Education of the
330	articles of incorporation of any not-for-profit corporate
331	subsidiary created by the not-for-profit corporation.
332	(c) Utilization of lands,hospital facilities,and
333	personnel by the not-for-profit corporation and its subsidiaries
334	for research, education, treatment, prevention, and the early
335	detection of Alzheimer’s disease andfor mutually approved
336	teaching and research programs conducted by the University of
337	South Florida or other accredited medical schools or research
338	institutes.
339	(d) Preparation of an annual postaudit of the not-for-
340	profit corporation's financial accounts and the financial
341	accounts of any subsidiaries to be conducted by an independent
342	certified public accountant. The annual audit report shall
343	include management letters and shall be submitted to the Auditor
344	General and the State Board of Education for review. The State
345	Board of Education, the Auditor General, and the Office of
346	Program Policy Analysis and Government Accountability shall have
347	the authority to require and receive from the not-for-profit
348	corporation and any subsidiaries, or from their independent
349	auditor, any detail or supplemental data relative to the
350	operation of the not-for-profit corporation or subsidiary.
351	(e) Provision by the not-for-profit corporation and its
352	subsidiaries of equal employment opportunities for all persons
353	regardless of race, color, religion, gender, age, or national
354	origin.
355	(4) The State Board of Education is authorized to secure
356	comprehensive general liability protection, including
357	professional liability protection, for the not-for-profit
358	corporation and its subsidiaries, pursuant to s. 1004.24. The
359	not-for-profit corporation and its subsidiaries shall be exempt
360	from any participation in any property insurance trust fund
361	established by law, including any property insurance trust fund
362	established pursuant to chapter 284, so long as the not-for-
363	profit corporation and its subsidiaries maintain property
364	insurance protection with comparable or greater coverage limits.
365	(5) In the event that the agreement between the not-for-
366	profit corporation and the State Board of Education is
367	terminated for any reason, the State Board of Education shall
368	assume governance and operation of the facilities.
369	(6) The institute shall be administered by a chief
370	executive officer, who shall be appointed by and serve at the
371	pleasure of the board of directors of the not-for-profit
372	corporation, and who shall exercise the following powers and
373	duties, subject to the approval of the board of directors:
374	(a) The chief executive officer shall establish programs
375	that fulfill the mission of the institute in research,
376	education, treatment, prevention, and early detection of
377	Alzheimer's disease; however, the chief executive officer may
378	not establish academic programs for which academic credit is
379	awarded and which culminate in the conferring of a degree,
380	without prior approval of the State Board of Education.
381	(b) The chief executive officer shall have control over
382	the budget and the moneys appropriated or donated to the
383	institute from private, local, state, and federal sources, as
384	well as technical and professional income generated or derived
385	from practice activities of the institute. However, professional
386	income generated by university faculty from practice activities
387	at the institute shall be shared between the institute and the
388	university as determined by the chief executive officer and the
389	appropriate university dean or vice president.
390	(c) The chief executive officer shall appoint
391	representatives of the institute to carry out the research,
392	patient care, and educational activities of the institute and
393	establish the compensation, benefits, and terms of service of
394	such representatives. Representatives of the institute shall be
395	eligible to hold concurrent appointments at affiliated academic
396	institutions. University faculty shall be eligible to hold
397	concurrent appointments at the institute.
398	(d) The chief executive officer shall have control over
399	the use and assignment of space and equipment within the
400	facilities.
401	(e) The chief executive officer shall have the power to
402	create the administrative structure necessary to carry out the
403	mission of the institute.
404	(f) The chief executive officer shall have a reporting
405	relationship to the Commissioner of Education.
406	(g) The chief executive officer shall provide a copy of
407	the institute's annual report to the Governor and Cabinet, the
408	President of the Senate, the Speaker of the House of
409	Representatives, and the chair of the State Board of Education.
410	(7) The board of directors of the not-for-profit
411	corporation shall create a council of scientific advisers to the
412	chief executive officer comprised of leading researchers,
413	physicians, and scientists. The council shall review programs
414	and recommend research priorities and initiatives to maximize
415	the state's investment in the institute. The members of the
416	council shall be appointed by the board of directors of the not-
417	for-profit corporation, except for five members who shall be
418	appointed by the State Board of Education. Each member of the
419	council shall be appointed to serve a 2-year term and may be
420	reappointed to the council.
421	(8) In carrying out the provisions of this section, the
422	not-for-profit corporation and its subsidiaries are not agencies
423	within the meaning of s. 20.03(11).
424	(9) The following information is confidential and exempt
425	from the provisions of s. 119.07(1) and s. 24, Art. I of the
426	State Constitution:
427	(a) Personal identifying information relating to clients
428	of programs created or funded through the Florida Alzheimer's
429	Center and Research Institute which is held by the institute,
430	University of South Florida, or State Board of Education or by
431	persons who provide services to clients of programs created or
432	funded through contracts with the Florida Alzheimer's Center and
433	Research Institute;
434	(b) Any medical or health records relating to patients
435	which may be created or received by the institute;
436	(c) Materials that relate to methods of manufacture or
437	production, potential trade secrets, potentially patentable
438	material, actual trade secrets as defined in s. 688.002, or
439	proprietary information received, generated, ascertained, or
440	discovered during the course of research conducted by or through
441	the institute and business transactions resulting from such
442	research;
443	(d) The identity of a donor or prospective donor to the
444	Florida Alzheimer's Center and Research Institute who wishes to
445	remain anonymous, and all information identifying such donor or
446	prospective donor;
447	(e) Any information received by the institute in the
448	performance of its duties and responsibilities which is
449	otherwise confidential and exempt by law; and
450	(f) Any information received by the institute from a
451	person from another state or nation or the Federal Government
452	which is otherwise confidential or exempt pursuant to that
453	state's or nation's laws or pursuant to federal law.
454
455	Any governmental entity that demonstrates a need to access such
456	confidential and exempt information in order to perform its
457	duties and responsibilities shall have access to such
458	information and shall otherwise keep such information
459	confidential and exempt. This section is subject to the Open
460	Government Sunset Review Act of 1995 in accordance with s.
461	119.15 and shall stand repealed on October 2, 2006, unless
462	reviewed and saved from repeal through reenactment by the
463	Legislature.
464	(10) Any appropriation to the institute provided in a
465	general appropriations act shall be paid directly to the board
466	of directors of the not-for-profit corporation by warrant drawn
467	by the Chief Financial Officer from the State Treasury.
468	Section 3. This act shall take effect upon becoming a law.
469