HB 1269CS

CHAMBER ACTION



1The Committee on Future of Florida's Families recommends the
2following:
3
4     Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to nursing home firesafety; amending s.
8633.022, F.S.; requiring nursing homes to be protected by
9certain automatic sprinkler systems; providing a schedule;
10authorizing the Division of State Fire Marshal to grant
11certain time extensions; authorizing the division to adopt
12certain rules; providing for administrative sanctions
13under certain circumstances; creating s. 633.024, F.S.;
14providing legislative findings and intent; creating s.
15633.0245, F.S.; authorizing the State Fire Marshal to
16enter into an investment agreement with public
17depositories to establish the State Fire Marshal Nursing
18Home Fire Protection Loan Guarantee Program as a limited
19loan guarantee program to retrofit nursing homes with fire
20protection systems; providing investment and agreement
21limitations; requiring the State Fire Marshal to solicit
22requests for proposals; providing for application
23requirements and procedures; providing for review and
24approval by the State Fire Marshal; providing application
25requirements and procedures for program loans by public
26depositories; providing deadlines and limitations;
27limiting certain claims for loss under certain
28circumstances; providing a definition; authorizing the
29State Fire Marshal to adopt rules; providing an effective
30date.
31
32Be It Enacted by the Legislature of the State of Florida:
33
34     Section 1.  Subsection (4) is added to section 633.022,
35Florida Statutes, to read:
36     633.022  Uniform firesafety standards.--The Legislature
37hereby determines that to protect the public health, safety, and
38welfare it is necessary to provide for firesafety standards
39governing the construction and utilization of certain buildings
40and structures. The Legislature further determines that certain
41buildings or structures, due to their specialized use or to the
42special characteristics of the person utilizing or occupying
43these buildings or structures, should be subject to firesafety
44standards reflecting these special needs as may be appropriate.
45     (4)(a)  Notwithstanding any provision of law to the
46contrary, each nursing home licensed under part II of chapter
47400 shall be protected by an approved, supervised automatic
48sprinkler system in accordance with section 9 of National Fire
49Protection Association, Inc., Life Safety Code, in accordance
50with the following schedule:
51     1.  Each hazardous area of each nursing home shall be
52protected by an approved, supervised automatic sprinkler system
53by no later than December 31, 2007.
54     2.  Each entire nursing home shall be protected by an
55approved, supervised automatic sprinkler system by no later than
56December 31, 2009.
57     (b)  The division may grant up to two 1-year extensions of
58the time limits for compliance in subparagraph (a)2. if the
59division determines that the nursing home has been prevented
60from complying for reasons beyond its control.
61     (c)  The division is authorized to adopt any rule necessary
62for the implementation and enforcement of this subsection. The
63division shall enforce this subsection in accordance with the
64provisions of this chapter, and any nursing home licensed under
65part II of chapter 400 that is in violation of this subsection
66may be subject to administrative sanctions by the division
67pursuant to this chapter.
68     Section 2.  Section 633.024, Florida Statutes, is created
69to read:
70     633.024  Legislative findings and intent; ensuring
71effective fire protection of vulnerable nursing home residents
72essential; retrofit of existing nursing homes expedited by
73limited state loan guarantee; funding through Insurance
74Regulatory Trust Fund.--
75     (1)  It is the intent of the Legislature to promote the
76essential public purpose of ensuring effective fire protection
77for the safety and welfare of nursing home residents of this
78state who, because of their inability to protect themselves, are
79most vulnerable to catastrophic injury or death in the event of
80a fire. The Legislature finds that this purpose is served by
81requiring the installation of appropriate fire protection
82systems in all nursing home facilities in this state that do not
83currently have fire protection systems in operation for the
84protection of their residents. The Legislature finds that the
85high capital cost of retrofitting appropriate fire protection
86systems at nursing home facilities not originally designed with
87fire protection systems has discouraged the owners and operators
88of such facilities from doing so. The Legislature therefore
89finds that state action to provide a limited state guarantee of
90loans covering these capital costs will expedite the immediate
91installation of fire protection systems at facilities that lack
92such systems and thereby ensure effective protection for those
93nursing home populations that are now most vulnerable to the
94catastrophic effects of fire.
95     (2)  Because the Insurance Regulatory Trust Fund is funded
96by the proceeds of fire insurance premiums written in this
97state, the Legislature finds that it is in the public interest
98for moneys held in the Insurance Regulatory Trust Fund to be
99used to fund the limited loan guarantee program that mobilizes
100private funding for the retrofitting of fire protection systems
101at unprotected nursing homes located in this state.
102     Section 3.  Section 633.0245, Florida Statutes, is created
103to read:
104     633.0245  State Fire Marshal Nursing Home Fire Protection
105Loan Guarantee Program.--
106     (1)  The State Fire Marshal, with the assistance of the
107Division of Treasury of the Department of Financial Services,
108may enter into an investment agreement concerning the investment
109of certain funds held in the Insurance Regulatory Trust Fund for
110the purpose of establishing a limited loan guarantee program to
111be known as the State Fire Marshal Nursing Home Fire Protection
112Loan Guarantee Program. The investment must be limited as
113follows:
114     (a)  Not more than $4 million of the balance in the
115Insurance Regulatory Trust Fund in any fiscal year may be at
116risk at any time for the purpose of limited loan guarantees.
117     (b)  Such funds at risk at any time may not be used to
118guarantee any limited loan guarantee agreement for a period
119longer than 10 years.
120     (c)  No limited loan guarantee agreement based on invested
121funds may be entered into after December 1, 2005.
122     (2)  The State Fire Marshal may enter into limited loan
123guarantee agreements with one or more financial institutions
124qualified as public depositories in this state. Such agreements
125shall provide a limited guarantee by the State of Florida
126covering no more than 50 percent of the principal sum loaned by
127such financial institution to an eligible nursing home, as
128defined in subsection (10), for the sole purpose of the initial
129installation at such nursing home of a fire protection system,
130as defined in s. 633.021(8), approved by the State Fire Marshal
131as being in compliance with the provisions of s. 633.022 and
132rules adopted under such section.
133     (3)  The State Fire Marshal shall solicit requests for
134proposals from qualified financial institutions willing to fund
135loans to eligible nursing homes for the installation of fire
136protection systems approved by the State Fire Marshal under the
137State Fire Marshal Nursing Home Fire Protection Loan Guarantee
138Program. Each request for proposal shall specify the terms and
139conditions under which the responding institution is prepared to
140make loans under the program, including, but not limited to,
141applicable interest rates, repayment terms, credit policies,
142loan fees, and proposed security interests to be executed by the
143borrower. After evaluation of all requests for proposals, the
144State Fire Marshal shall select one or more responding
145institutions as designated lenders under the program.
146     (4)  The State Fire Marshal shall prescribe by rule an
147application form for participation in the State Fire Marshal
148Nursing Home Fire Protection Loan Guarantee Program to be
149submitted by each eligible nursing home that desires to install
150a fire protection system funded by a loan from a designated
151lender under the program. Nothing in this section shall be
152deemed to require an eligible nursing home to do business with a
153designated lender. At a minimum, the application shall require
154each applicant to provide the following information:
155     (a)  The name and address of the eligible nursing home.
156     (b)  The name and address of the owner of the nursing home
157or, if the owner is a partnership, the name and address of the
158general partner.
159     (c)  The lessee of the nursing home premises, if any.
160     (d)  A complete description of the structure or structures
161where the fire protection system is to be installed, including
162age, physical dimensions, overall square footage, a real extent
163of proposed coverage areas, and other relevant information
164concerning the premises.
165     (e)  Bed capacity of the nursing home, including beds
166eligible for Medicare or Medicaid reimbursement.
167     (f)  A statement regarding the availability to the
168applicant of third-party reimbursement for installation of the
169fire protection system.
170     (g)  The location of closest water mains and fire hydrants,
171if any.
172     (h)  Complete sealed drawings showing the fire protection
173system to be installed.
174     (i)  Cost documentation, with a separate breakdown of cost
175for labor and materials.
176     (j)  Verification of the application by the applicant.
177     (5)  The State Fire Marshal shall evaluate each application
178submitted under this section to determine whether the proposed
179fire protection system is feasible for installation as proposed
180and complies with all applicable firesafety code provisions. An
181application may not be approved without a positive determination
182by the State Fire Marshal under this subsection. If the State
183Fire Marshal is able to determine that the proposed fire
184protection system is feasible and complies with applicable
185firesafety codes, the application shall be approved for
186submission to one or more lenders for funding. If the
187application is insufficient, the State Fire Marshal shall notify
188the applicant in writing and identify areas of deficiency that
189must be corrected in order for the application to be approved.
190     (6)  As soon as practicable after approval, each approved
191application shall be submitted by the State Fire Marshal to one
192or more designated lenders for funding. Upon request of a
193designated lender, an approved applicant shall provide the
194lender with documentation of its credit history and financial
195status. If, after review of the applicant's documentation, a
196lender refuses to fund the application, the lender shall
197promptly notify the applicant and the State Fire Marshal in
198writing of any reasons for its action. If the lender agrees to
199fund the application, the lender shall notify the applicant and
200the State Fire Marshal and schedule a closing date for the loan.
201     (7)  At closing, the applicant shall execute appropriate
202documents necessary to provide the lender and the State Fire
203Marshal with a security interest in the property where the fire
204protection system is to be installed. The State Fire Marshal
205shall then execute a limited loan guarantee in favor of the
206lender guaranteeing no more than 50 percent of the face value of
207the loan.
208     (8)  A designated lender covered by a limited state
209guarantee for a loan under this section is not entitled to file
210a claim for loss pursuant to the guarantee unless all reasonable
211and normal remedies available and customary for lending
212institutions for resolving problems of loan repayments are
213exhausted. If the lender has received collateral security in
214connection with the loan, the lender must first exhaust all
215available remedies against the collateral security.
216     (9)  No application for participation in the State Fire
217Marshal Nursing Home Fire Protection Loan Guarantee Program may
218be accepted by the State Fire Marshal after June 30, 2005.
219     (10)  For purposes of this section, "eligible nursing home"
220home" means a nursing home facility providing nursing
221services as defined in chapter 464 licensed under part II of
222chapter 400
223that is certified by the Agency for Health Care Administration
224to lack an installed fire protection system as defined in s.
225633.021(8).
226     (11)  The State Fire Marshal may adopt any rules necessary
227to implement the provisions of this section.
228     Section 4.  This act shall take effect July 1, 2004.


CODING: Words stricken are deletions; words underlined are additions.