Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1190
Barcode 551812
CHAMBER ACTION
Senate House
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03/22/2006 05:33 PM .
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11 The Committee on Health Care (Atwater) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 155.40, Florida Statutes, is
19 amended to read:
20 155.40 Sale or lease of county, district, or municipal
21 hospital; effect of sale.--
22 (1) In order that citizens and residents of the state
23 may receive quality health care, any county, district, or
24 municipal hospital organized and existing under the laws of
25 this state, acting by and through its governing board, shall
26 have the authority to sell or lease such hospital to a
27 for-profit or not-for-profit Florida corporation, and enter
28 into leases or other contracts with a for-profit or
29 not-for-profit Florida corporation for the purpose of
30 operating and managing such hospital and any or all of its
31 facilities of whatsoever kind and nature. The term of any
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1190
Barcode 551812
1 such lease, contract, or agreement and the conditions,
2 covenants, and agreements to be contained therein shall be
3 determined by the governing board of such county, district, or
4 municipal hospital. The governing board of the hospital must
5 find that the sale, lease, or contract is in the best
6 interests of the public and must state the basis of such
7 finding. If the governing board of a county, district, or
8 municipal hospital decides to lease the hospital, it must give
9 notice in accordance with paragraph (4)(a) or paragraph
10 (4)(b).
11 (2) Any such lease, contract, or agreement made
12 pursuant hereto shall:
13 (a) Provide that the articles of incorporation of such
14 for-profit or not-for-profit corporation be subject to the
15 approval of the board of directors or board of trustees of
16 such hospital;
17 (b) Require that any not-for-profit corporation become
18 qualified under s. 501(c)(3) of the United States Internal
19 Revenue Code;
20 (c) Provide for the orderly transition of the
21 operation and management of such facilities;
22 (d) Provide for the return of such facility to the
23 county, municipality, or district upon the termination of such
24 lease, contract, or agreement; and
25 (e) Provide for the continued treatment of indigent
26 patients pursuant to the Florida Health Care Responsibility
27 Act and pursuant to chapter 87-92, Laws of Florida.
28 (3) Any sale, lease, or contract entered into pursuant
29 to this section prior to the effective date of this act must
30 have complied with the requirements of subsection (2) in
31 effect at the time of the sale, lease, or contract. It is the
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1190
Barcode 551812
1 intent of the Legislature that this section does not impose
2 any further requirements with respect to the formation of any
3 for-profit or not-for-profit Florida corporation, the
4 composition of the board of directors of any Florida
5 corporation, or the manner in which control of the hospital is
6 transferred to the Florida corporation.
7 (4) In the event the governing board of a county,
8 district, or municipal hospital elects to sell or lease the
9 hospital, the board shall:
10 (a) Negotiate the terms of the sale or lease with a
11 for-profit or not-for-profit Florida corporation and publicly
12 advertise the meeting at which the proposed sale or lease will
13 be considered by the governing board of the hospital in
14 accordance with s. 286.0105; or
15 (b) Publicly advertise the offer to accept proposals
16 in accordance with s. 255.0525 and receive proposals from all
17 interested and qualified purchasers.
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19 Any sale must be for fair market value, and any sale or lease
20 must comply with all applicable state and federal antitrust
21 laws.
22 (5) In the event a hospital operated by a for-profit
23 or not-for-profit Florida corporation receives annually more
24 than $100,000 in revenues from the county, district, or
25 municipality that owns the hospital, the Florida corporation
26 must be accountable to the county, district, or municipality
27 with respect to the manner in which the funds are expended by
28 either:
29 (a) Having the revenues subject to annual
30 appropriations by the county, district, or municipality; or
31 (b) Where there is a contract to provide revenues to
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1190
Barcode 551812
1 the hospital, the term of which is longer than 12 months, the
2 governing board of the county, district, or municipality must
3 be able to modify the contract upon 12 months notice to the
4 hospital.
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6 A not-for-profit corporation that is subject to this
7 subsection and that does not currently comply with the
8 accountability requirements in this subsection shall have 12
9 months after the effective date of this act to modify any
10 contracts with the county, district, or municipality in a
11 manner that is consistent with this subsection.
12 (6) Unless otherwise expressly stated in the lease
13 documents, the transaction involving the sale or lease of a
14 hospital shall not be construed as:
15 (a) A transfer of a governmental function from the
16 county, district, or municipality to the private purchaser or
17 lessee;
18 (b) Constituting a financial interest of the public
19 lessor in the private lessee; or
20 (c) Making a private lessee an integral part of the
21 public lessor's decisionmaking process.
22 (7) The lessee of a hospital, under pursuant to this
23 section or any special act of the Legislature, operating under
24 a lease is shall not be construed to be "acting on behalf of"
25 the lessor as that term is used in statute, unless the lease
26 document expressly provides to the contrary.
27 (8) Unless otherwise expressly stated in the sale
28 documents, the transaction involving the sale of a hospital
29 shall not be construed as:
30 (a) A transfer of a governmental function from the
31 county, district, or municipality to the private purchaser;
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1190
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1 (b) Constituting a financial interest of the public
2 seller in the private purchaser; or
3 (c) Making a private purchaser an integral part of the
4 public seller's decisionmaking process.
5 (9)(a) The purchaser of a hospital, under this section
6 or any special act of the Legislature, operating after a sale
7 of the hospital is not "acting on behalf of" the seller as
8 that term is used in statute, unless the sale document
9 expressly provides to the contrary.
10 (b) The purchaser of a hospital, under this section or
11 any special act of the Legislature, operating after a sale of
12 the hospital shall not be construed as an "agency" within the
13 meaning of s. 119.011(2), unless the sale document expressly
14 provides to the contrary.
15 Section 2. This act shall take effect July 1, 2006.
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18 ================ T I T L E A M E N D M E N T ===============
19 And the title is amended as follows:
20 Delete everything before the enacting clause
21
22 and insert:
23 A bill to be entitled
24 An act relating to the sale or lease of a
25 county, district, or municipal hospital;
26 amending s. 155.40, F.S.; providing for the
27 effect of the sale of a public hospital to a
28 private purchaser; providing that the purchaser
29 of a public hospital is not acting on behalf of
30 the public entity seller and is not an agency
31 within the meaning of ch. 119, F.S., unless the
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1190
Barcode 551812
1 sale document expressly provides to the
2 contrary; providing an effective date.
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