HB 0561 2004
1	A bill to be entitled
2	An act relating to the H. Lee Moffitt Cancer Center and
3	Research Institute and the Johnnie B. Byrd, Sr.,
4	Alzheimer's Center and Research Institute at the
5	University of South Florida; amending s. 1004.43, F.S.;
6	authorizing the establishment of for-profit subsidiaries
7	of the governing corporation; prohibiting certain
8	activities by such for-profit subsidiaries; providing that
9	the contract with the State Board of Education shall
10	permit the use of lands and facilities for research,
11	education, treatment, prevention, and early detection of
12	cancer; authorizing the governing corporation and its
13	subsidiaries to obtain their own property insurance
14	coverage; providing that certain appropriations shall be
15	paid directly to the board of directors of the governing
16	corporation; changing the appointing authority for certain
17	members of the council of scientific advisers; amending s.
18	1004.445, F.S.; renaming the Florida Alzheimer's Center
19	and Research Institute as the Johnnie B. Byrd, Sr.,
20	Alzheimer's Center and Research Institute; deleting
21	obsolete language; authorizing the establishment of for-
22	profit subsidiaries of the governing corporation;
23	providing that the contract with the State Board of
24	Education shall permit the use of lands and facilities for
25	research, education, treatment, prevention, and early
26	detection of Alzheimer's disease; authorizing the
27	governing corporation and its subsidiaries to obtain their
28	own property insurance coverage; providing that certain
29	appropriations shall be paid directly to the board of
30	directors of the governing corporation; changing the
31	appointing authority for certain members of the council of
32	scientific advisers; providing an effective date.
33
34	Be It Enacted by the Legislature of the State of Florida:
35
36	Section 1. Section 1004.43, Florida Statutes, is amended
37	to read:
38	1004.43 H. Lee Moffitt Cancer Center and Research
39	Institute.--There is established the H. Lee Moffitt Cancer
40	Center and Research Institute at the University of South
41	Florida.
42	(1) The State Board of Education shall enter into an
43	agreement for the utilization of the facilities on the campus of
44	the University of South Florida to be known as the H. Lee
45	Moffitt Cancer Center and Research Institute, including all
46	furnishings, equipment, and other chattels used in the operation
47	of said facilities, with a Florida not-for-profit corporation
48	organized solely for the purpose of governing and operating the
49	H. Lee Moffitt Cancer Center and Research Institute. This not-
50	for-profit corporation, acting as an instrumentality of the
51	State of Florida, shall govern and operate the H. Lee Moffitt
52	Cancer Center and Research Institute in accordance with the
53	terms of the agreement between the State Board of Education and
54	the not-for-profit corporation. The not-for-profit corporation
55	may, with the prior approval of the State Board of Education,
56	create either for-profit ornot-for-profit corporate
57	subsidiaries, or both, to fulfill its mission. For-profit
58	subsidiaries of the not-for-profit corporation may not compete
59	with for-profit health care providers in the delivery of
60	radiation therapy services to patients.The not-for-profit
61	corporation and its subsidiaries are authorized to receive,
62	hold, invest, and administer property and any moneys received
63	from private, local, state, and federal sources, as well as
64	technical and professional income generated or derived from
65	practice activities of the institute, for the benefit of the
66	institute and the fulfillment of its mission. The affairs of the
67	corporation shall be managed by a board of directors who shall
68	serve without compensation. The President of the University of
69	South Florida and the chair of the State Board of Education, or
70	his or her designee, shall be directors of the not-for-profit
71	corporation, together with 5 representatives of the state
72	universities and no more than 14 nor fewer than 10 directors who
73	are not medical doctors or state employees. Each director shall
74	have only one vote, shall serve a term of 3 years, and may be
75	reelected to the board. Other than the President of the
76	University of South Florida and the chair of the State Board of
77	Education, directors shall be elected by a majority vote of the
78	board. The chair of the board of directors shall be selected by
79	majority vote of the directors.
80	(2) The State Board of Education shall provide in the
81	agreement with the not-for-profit corporation for the following:
82	(a) Approval of the articles of incorporation of the not-
83	for-profit corporation by the State Board of Education.
84	(b) Approval of the articles of incorporation of any not-
85	for-profit corporate subsidiary created by the not-for-profit
86	corporation.
87	(c) Utilization of lands, hospital facilities,and
88	personnel by the not-for-profit corporation and its subsidiaries
89	for research, education, treatment, prevention, and the early
90	detection of cancer andfor mutually approved teaching and
91	research programs conducted by the University of South Florida
92	or other accredited medical schools or research institutes.
93	(d) Preparation of an annual financial audit of the not-
94	for-profit corporation's accounts and records and the accounts
95	and records of any subsidiaries to be conducted by an
96	independent certified public accountant. The annual audit report
97	shall include a management letter, as defined in s. 11.45, and
98	shall be submitted to the Auditor General and the State Board of
99	Education. The State Board of Education, the Auditor General,
100	and the Office of Program Policy Analysis and Government
101	Accountability shall have the authority to require and receive
102	from the not-for-profit corporation and any subsidiaries or from
103	their independent auditor any detail or supplemental data
104	relative to the operation of the not-for-profit corporation or
105	subsidiary.
106	(e) Provision by the not-for-profit corporation and its
107	subsidiaries of equal employment opportunities to all persons
108	regardless of race, color, religion, sex, age, or national
109	origin.
110	(3) The State Board of Education is authorized to secure
111	comprehensive general liability protection, including
112	professional liability protection, for the not-for-profit
113	corporation and its subsidiaries pursuant to s. 1004.24. The
114	not-for-profit corporation and its subsidiaries shall be exempt
115	from any participation in any property insurance trust fund
116	established by law, including any property insurance trust fund
117	established pursuant to chapter 284, so long as the not-for-
118	profit corporation and its subsidiaries maintain property
119	insurance protection with comparable or greater coverage limits.
120	(4) In the event that the agreement between the not-for-
121	profit corporation and the State Board of Education is
122	terminated for any reason, the State Board of Education shall
123	resume governance and operation of said facilities.
124	(5) The institute shall be administered by a chief
125	executive officer who shall serve at the pleasure of the board
126	of directors of the not-for-profit corporation and who shall
127	have the following powers and duties subject to the approval of
128	the board of directors:
129	(a) The chief executive officer shall establish programs
130	which fulfill the mission of the institute in research,
131	education, treatment, prevention, and the early detection of
132	cancer; however, the chief executive officer shall not establish
133	academic programs for which academic credit is awarded and which
134	terminate in the conference of a degree without prior approval
135	of the State Board of Education.
136	(b) The chief executive officer shall have control over
137	the budget and the dollars appropriated or donated to the
138	institute from private, local, state, and federal sources, as
139	well as technical and professional income generated or derived
140	from practice activities of the institute. However, professional
141	income generated by university faculty from practice activities
142	at the institute shall be shared between the institute and the
143	university as determined by the chief executive officer and the
144	appropriate university dean or vice president.
145	(c) The chief executive officer shall appoint members to
146	carry out the research, patient care, and educational activities
147	of the institute and determine compensation, benefits, and terms
148	of service. Members of the institute shall be eligible to hold
149	concurrent appointments at affiliated academic institutions.
150	University faculty shall be eligible to hold concurrent
151	appointments at the institute.
152	(d) The chief executive officer shall have control over
153	the use and assignment of space and equipment within the
154	facilities.
155	(e) The chief executive officer shall have the power to
156	create the administrative structure necessary to carry out the
157	mission of the institute.
158	(f) The chief executive officer shall have a reporting
159	relationship to the Commissioner of Education.
160	(g) The chief executive officer shall provide a copy of
161	the institute's annual report to the Governor and Cabinet, the
162	President of the Senate, the Speaker of the House of
163	Representatives, and the chair of the State Board of Education.
164	(6) The board of directors of the not-for-profit
165	corporation shall create a council of scientific advisers to the
166	chief executive officer comprised of leading researchers,
167	physicians, and scientists. This council shall review programs
168	and recommend research priorities and initiatives so as to
169	maximize the state's investment in the institute. The council
170	shall be appointed by the board of directors of the not-for-
171	profit corporation and shall include five appointees of the
172	State Board of Education. Each member of the council shall be
173	appointed to serve a 2-year term and may be reappointed to the
174	council.
175	(7) In carrying out the provisions of this section, the
176	not-for-profit corporation and its subsidiaries are not
177	"agencies" within the meaning of s. 20.03(11).
178	(8)(a) Records of the not-for-profit corporation and of
179	its subsidiaries are public records unless made confidential or
180	exempt by law.
181	(b) Proprietary confidential business information is
182	confidential and exempt from the provisions of s. 119.07(1) and
183	s. 24(a), Art. I of the State Constitution. However, the Auditor
184	General, the Office of Program Policy Analysis and Government
185	Accountability, and the State Board of Education, pursuant to
186	their oversight and auditing functions, must be given access to
187	all proprietary confidential business information upon request
188	and without subpoena and must maintain the confidentiality of
189	information so received. As used in this paragraph, the term
190	"proprietary confidential business information" means
191	information, regardless of its form or characteristics, which is
192	owned or controlled by the not-for-profit corporation or its
193	subsidiaries; is intended to be and is treated by the not-for-
194	profit corporation or its subsidiaries as private and the
195	disclosure of which would harm the business operations of the
196	not-for-profit corporation or its subsidiaries; has not been
197	intentionally disclosed by the corporation or its subsidiaries
198	unless pursuant to law, an order of a court or administrative
199	body, a legislative proceeding pursuant to s. 5, Art. III of the
200	State Constitution, or a private agreement that provides that
201	the information may be released to the public; and which is
202	information concerning:
203	1. Internal auditing controls and reports of internal
204	auditors;
205	2. Matters reasonably encompassed in privileged attorney-
206	client communications;
207	3. Contracts for managed-care arrangements, including
208	preferred provider organization contracts, health maintenance
209	organization contracts, and exclusive provider organization
210	contracts, and any documents directly relating to the
211	negotiation, performance, and implementation of any such
212	contracts for managed-care arrangements;
213	4. Bids or other contractual data, banking records, and
214	credit agreements the disclosure of which would impair the
215	efforts of the not-for-profit corporation or its subsidiaries to
216	contract for goods or services on favorable terms;
217	5. Information relating to private contractual data, the
218	disclosure of which would impair the competitive interest of the
219	provider of the information;
220	6. Corporate officer and employee personnel information;
221	7. Information relating to the proceedings and records of
222	credentialing panels and committees and of the governing board
223	of the not-for-profit corporation or its subsidiaries relating
224	to credentialing;
225	8. Minutes of meetings of the governing board of the not-
226	for-profit corporation and its subsidiaries, except minutes of
227	meetings open to the public pursuant to subsection (9);
228	9. Information that reveals plans for marketing services
229	that the corporation or its subsidiaries reasonably expect to be
230	provided by competitors;
231	10. Trade secrets as defined in s. 688.002, including
232	reimbursement methodologies or rates; or
233	11. The identity of donors or prospective donors of
234	property who wish to remain anonymous or any information
235	identifying such donors or prospective donors. The anonymity of
236	these donors or prospective donors must be maintained in the
237	auditor's report.
238
239	As used in this paragraph, the term "managed care" means systems
240	or techniques generally used by third-party payors or their
241	agents to affect access to and control payment for health care
242	services. Managed-care techniques most often include one or more
243	of the following: prior, concurrent, and retrospective review of
244	the medical necessity and appropriateness of services or site of
245	services; contracts with selected health care providers;
246	financial incentives or disincentives related to the use of
247	specific providers, services, or service sites; controlled
248	access to and coordination of services by a case manager; and
249	payor efforts to identify treatment alternatives and modify
250	benefit restrictions for high-cost patient care.
251	(9) Meetings of the governing board of the not-for-profit
252	corporation and meetings of the subsidiaries of the not-for-
253	profit corporation at which the expenditure of dollars
254	appropriated to the not-for-profit corporation by the state are
255	discussed or reported must remain open to the public in
256	accordance with s. 286.011 and s. 24(b), Art. I of the State
257	Constitution, unless made confidential or exempt by law. Other
258	meetings of the governing board of the not-for-profit
259	corporation and of the subsidiaries of the not-for-profit
260	corporation are exempt from s. 286.011 and s. 24(b), Art. I of
261	the State Constitution.
262	(10) In addition to the continuing appropriation to the
263	institute provided in s. 210.20(2), any appropriation to the
264	institute provided in a general appropriations act shall be paid
265	directly to the board of directors of the not-for-profit
266	corporation by warrant drawn by the Chief Financial Officer from
267	the State Treasury.
268	Section 2. Section 1004.445, Florida Statutes, is amended
269	to read:
270	1004.445 Johnnie B. Byrd, Sr., FloridaAlzheimer's Center
271	and Research Institute.--
272	(1) Effective July 1, 2002, The Johnnie B. Byrd, Sr.,
273	FloridaAlzheimer's Center and Research Institute is established
274	at the University of South Florida.
275	(2)(a) The State Board of Education shall enter into an
276	agreement for the utilization of the facilities on the campus of
277	the University of South Florida to be known as the Johnnie B.
278	Byrd, Sr., FloridaAlzheimer's Center and Research Institute,
279	including all furnishings, equipment, and other chattels used in
280	the operation of those facilities, with a Florida not-for-profit
281	corporation organized solely for the purpose of governing and
282	operating the Johnnie B. Byrd, Sr., FloridaAlzheimer's Center
283	and Research Institute. This not-for-profit corporation, acting
284	as an instrumentality of the state, shall govern and operate the
285	Johnnie B. Byrd, Sr., FloridaAlzheimer's Center and Research
286	Institute in accordance with the terms of the agreement between
287	the State Board of Education and the not-for-profit corporation.
288	The not-for-profit corporation may, with the prior approval of
289	the State Board of Education, create either for-profit ornot-
290	for-profit corporate subsidiaries, or both,to fulfill its
291	mission. The not-for-profit corporation and its subsidiaries are
292	authorized to receive, hold, invest, and administer property and
293	any moneys acquired from private, local, state, and federal
294	sources, as well as technical and professional income generated
295	or derived from practice activities of the institute, for the
296	benefit of 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 Johnnie B. Byrd, Sr.,
429	FloridaAlzheimer's Center and Research Institute which is held
430	by the institute, University of South Florida, or State Board of
431	Education or by persons who provide services to clients of
432	programs created or funded through contracts with the Johnnie B.
433	Byrd, Sr., FloridaAlzheimer's Center and 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	Johnnie B. Byrd, Sr., FloridaAlzheimer's Center and Research
445	Institute who wishes to remain anonymous, and all information
446	identifying such donor or 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.