HB 7141CS

CHAMBER ACTION




1The Health & Families Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to the licensure of health care providers;
7creating pts. I, II, III, and IV of ch. 408, F.S.;
8creating s. 408.801, F.S.; providing a short title;
9providing legislative findings and purpose; creating s.
10408.802, F.S.; providing applicability; creating s.
11408.803, F.S.; providing definitions; creating s. 408.804,
12F.S.; requiring providers to have and display a license;
13providing limitations; creating s. 408.805, F.S.;
14establishing license fees and conditions for assessment
15thereof; providing a method for calculating annual
16adjustment of fees; providing for inspection fees;
17providing that fees are nonrefundable; creating s.
18408.806, F.S.; providing a license application process;
19requiring specified information to be included on the
20application; requiring payment of late fees under certain
21circumstances; requiring inspections; providing an
22exception; authorizing the Agency for Health Care
23Administration to establish procedures and rules for
24electronic transmission of required information; creating
25s. 408.807, F.S.; providing procedures for change of
26ownership; requiring the transferor to notify the agency
27in writing within a specified time period; providing for
28duties and liability of the transferor; providing for
29maintenance of certain records; creating s. 408.808, F.S.;
30providing license categories and requirements therefor;
31creating s. 408.809, F.S.; requiring background screening
32of specified employees; providing for submission of proof
33of compliance, under certain circumstances; providing
34conditions for granting provisional and standard licenses;
35providing an exception to screening requirements; creating
36s. 408.810, F.S.; providing minimum licensure
37requirements; providing procedures for discontinuance of
38operation and surrender of license; requiring forwarding
39of client records; requiring publication of a notice of
40discontinuance of operation of a provider; providing for
41statewide toll-free telephone numbers for reporting
42complaints and abusive, neglectful, and exploitative
43practices; requiring proof of legal right to occupy
44property, proof of insurance, and proof of financial
45viability, under certain circumstances; requiring
46disclosure of information relating to financial
47instability; providing a penalty; prohibiting the agency
48from licensing a health care provider that does not have a
49certificate of need or an exemption; creating s. 408.811,
50F.S.; providing for inspections and investigations to
51determine compliance; providing that inspection reports
52are public records; requiring retention of records for a
53specified period of time; creating s. 408.812, F.S.;
54prohibiting certain unlicensed activity by a provider;
55requiring unlicensed providers to cease activity;
56providing penalties; requiring reporting of unlicensed
57providers; creating s. 408.813, F.S.; authorizing the
58agency to impose administrative fines; creating s.
59408.814, F.S.; providing conditions for the agency to
60impose a moratorium or emergency suspension on a provider;
61requiring notice; creating s. 408.815, F.S.; providing
62grounds for denial or revocation of a license or change-
63of-ownership application; providing conditions to continue
64operation; exempting renewal applications from provisions
65requiring the agency to approve or deny an application
66within a specified period of time, under certain
67circumstances; creating s. 408.816, F.S.; authorizing the
68agency to institute injunction proceedings, under certain
69circumstances; creating s. 408.817, F.S.; providing basis
70for review of administrative proceedings challenging
71agency licensure enforcement action; creating s. 408.818,
72F.S.; requiring fees and fines related to health care
73licensing to be deposited into the Health Care Trust Fund;
74creating s. 408.819, F.S.; authorizing the agency to adopt
75rules; providing a timeframe for compliance; creating s.
76408.820, F.S.; providing exemptions from specified
77requirements of pt. II of ch. 408, F.S.; amending s.
78400.801, F.S.; providing that the definition of homes for
79special services applies to sites licensed by the agency
80after a certain date; amending s. 400.9905, F.S.;
81excluding certain entities from the definition of
82"clinic"; amending s. 408.036, F.S.; exempting a nursing
83home created by combining certain licensed beds from
84requirements for obtaining a certificate of need from the
85agency; providing for future repeal; amending s. 408.831,
86F.S.; revising provisions relating to agency action to
87deny, suspend, or revoke a license, registration,
88certificate, or application; conforming cross-references;
89providing for priority of application in case of conflict;
90authorizing the agency to adjust annual licensure fees to
91provide biennial licensure fees; requesting interim
92assistance of the Division of Statutory Revision to
93prepare conforming legislation for the 2007 Regular
94Session; authorizing the agency to issue licenses for less
95than a specified time period and providing conditions
96therefor; providing an effective date.
97
98Be It Enacted by the Legislature of the State of Florida:
99
100     Section 1.  Part I of chapter 408, Florida Statutes,
101consisting of sections 408.031, 408.032, 408.033, 408.034,
102408.035, 408.036, 408.0361, 408.037, 408.038, 408.039, 408.040,
103408.041, 408.042, 408.043, 408.044, 408.045, 408.0455, 408.05,
104408.061, 408.062, 408.063, 408.07, 408.08, 408.09, 408.10,
105408.15, 408.16, 408.18, 408.185, 408.20, 408.301, 408.302,
106408.40, 408.50, 408.70, 408.7056, 408.7057, and 408.7071,
107Florida Statutes, is created and entitled "Health Facility and
108Services Planning."
109     Section 2.  Part II of chapter 408, Florida Statutes,
110consisting of sections 408.801, 408.802, 408.803, 408.804,
111408.805, 408.806, 408.807, 408.808, 408.809, 408.810, 408.811,
112408.812, 408.813, 408.814, 408.815, 408.816, 408.817, 408.818,
113408.819, 408.820, and 408.831, Florida Statutes, is created and
114entitled "Health Care Licensing: General Provisions."
115     Section 3.  Part III of chapter 408, Florida Statutes,
116consisting of sections 408.90, 408.901, 408.902, 408.903,
117408.904, 408.905, 408.906, 408.907, 408.908, and 408.909,
118Florida Statutes, is created and entitled "Health Insurance
119Access."
120     Section 4.  Part IV of chapter 408, Florida Statutes,
121consisting of sections 408.911, 408.913, 408.914, 408.915,
122408.916, 408.917, and 408.918, Florida Statutes, is created and
123entitled "Health and Human Services Eligibility Access System."
124     Section 5.  Sections 408.801, 408.802, 408.803, 408.804,
125408.805, 408.806, 408.807, 408.808, 408.809, 408.810, 408.811,
126408.812, 408.813, 408.814, 408.815, 408.816, 408.817, 408.818,
127408.819, and 408.820, Florida Statutes, are created to read:
128     408.801  Short title; purpose.--
129     (1)  This part may be cited as the "Health Care Licensing
130Procedures Act."
131     (2)  The Legislature finds that there is unnecessary
132duplication and variation in the requirements for licensure by
133the agency. It is the intent of the Legislature to provide a
134streamlined and consistent set of basic licensing requirements
135for all such providers in order to minimize confusion,
136standardize terminology, and include issues that are otherwise
137not adequately addressed in the Florida Statutes pertaining to
138specific providers.
139     408.802  Applicability.--The provisions of this part apply
140to the provision of services that require licensure as defined
141in this part and to the following entities licensed, registered,
142or certified by the agency, as described in chapters 112, 383,
143390, 394, 395, 400, 440, 483, and 765:
144     (1)  Laboratories authorized to perform testing under the
145Drug-Free Workplace Act, as provided under ss. 112.0455 and
146440.102.
147     (2)  Birth centers, as provided under chapter 383.
148     (3)  Abortion clinics, as provided under chapter 390.
149     (4)  Crisis stabilization units, as provided under parts I
150and IV of chapter 394.
151     (5)  Short-term residential treatment facilities, as
152provided under parts I and IV of chapter 394.
153     (6)  Residential treatment facilities, as provided under
154part IV of chapter 394.
155     (7)  Residential treatment centers for children and
156adolescents, as provided under part IV of chapter 394.
157     (8)  Hospitals, as provided under part I of chapter 395.
158     (9)  Ambulatory surgical centers, as provided under part I
159of chapter 395.
160     (10)  Mobile surgical facilities, as provided under part I
161of chapter 395.
162     (11)  Private review agents, as provided under part I of
163chapter 395.
164     (12)  Health care risk managers, as provided under part I
165of chapter 395.
166     (13)  Nursing homes, as provided under part II of chapter
167400.
168     (14)  Assisted living facilities, as provided under part
169III of chapter 400.
170     (15)  Home health agencies, as provided under part IV of
171chapter 400.
172     (16)  Nurse registries, as provided under part IV of
173chapter 400.
174     (17)  Companion services or homemaker services providers,
175as provided under part IV of chapter 400.
176     (18)  Adult day care centers, as provided under part V of
177chapter 400.
178     (19)  Hospices, as provided under part VI of chapter 400.
179     (20)  Adult family-care homes, as provided under part VII
180of chapter 400.
181     (21)  Homes for special services, as provided under part
182VIII of chapter 400.
183     (22)  Transitional living facilities, as provided under
184part VIII of chapter 400.
185     (23)  Prescribed pediatric extended care centers, as
186provided under part IX of chapter 400.
187     (24)  Home medical equipment providers, as provided under
188part X of chapter 400.
189     (25)  Intermediate care facilities for persons with
190developmental disabilities, as provided under part XI of chapter
191400.
192     (26)  Health care services pools, as provided under part
193XII of chapter 400.
194     (27)  Health care clinics, as provided under part XIII of
195chapter 400.
196     (28)  Clinical laboratories, as provided under part I of
197chapter 483.
198     (29)  Multiphasic health testing centers, as provided under
199part II of chapter 483.
200     (30)  Organ and tissue procurement agencies, as provided
201under chapter 765.
202     408.803  Definitions.--As used in this part, the term:
203     (1)  "Agency" means the Agency for Health Care
204Administration, which is the licensing agency under this part.
205     (2)  "Applicant" means an individual, corporation,
206partnership, firm, association, or governmental entity that
207submits an application for a license to the agency.
208     (3)  "Authorizing statute" means the statute authorizing
209the licensed operation of a provider listed in s. 408.802 and
210includes chapters 112, 383, 390, 394, 395, 400, 440, 483, and
211765.
212     (4)  "Certification" means certification as a Medicare or
213Medicaid provider of the services that require licensure, or
214certification pursuant to the federal Clinical Laboratory
215Improvement Amendment (CLIA).
216     (5)  "Change of ownership" means an event in which the
217licensee changes to a different legal entity or in which 45
218percent or more of the ownership, voting shares, or controlling
219interest in a corporation whose shares are not publicly traded
220on a recognized stock exchange is transferred or assigned,
221including the final transfer or assignment of multiple transfers
222or assignments over a 2-year period that cumulatively total 45
223percent or greater. A change solely in the management company or
224board of directors is not a change of ownership.
225     (6)  "Client" means any person receiving services from a
226provider listed in s. 408.802.
227     (7)  "Controlling interest" means:
228     (a)  The applicant or licensee;
229     (b)  A person or entity that serves as an officer of, is on
230the board of directors of, or has a 5-percent or greater
231ownership interest in the applicant or licensee; or
232     (c)  A person or entity that serves as an officer of, is on
233the board of directors of, or has a 5-percent or greater
234ownership interest in the management company or other entity,
235related or unrelated, with which the applicant or licensee
236contracts to manage the provider.
237
238The term does not include a voluntary board member.
239     (8)  "License" means any permit, registration, certificate,
240or license issued by the agency.
241     (9)  "Licensee" means an individual, corporation,
242partnership, firm, association, or governmental entity that is
243issued a permit, registration, certificate, or license by the
244agency. The licensee is legally responsible for all aspects of
245the provider operation.
246     (10)  "Moratorium" means a prohibition on the acceptance of
247new clients.
248     (11)  "Provider" means any activity, service, agency, or
249facility regulated by the agency and listed in s. 408.802.
250     (12)  "Services that require licensure" means those
251services, including residential services, that require a valid
252license before those services may be provided in accordance with
253authorizing statutes and agency rules.
254     (13)  "Voluntary board member" means a board member of a
255not-for-profit corporation or organization who serves solely in
256a voluntary capacity, does not receive any remuneration for his
257or her services on the board of directors, and has no financial
258interest in the corporation or organization. The agency shall
259recognize a person as a voluntary board member following
260submission of a statement to the agency by the board member and
261the not-for-profit corporation or organization that affirms that
262the board member conforms to this definition. The statement
263affirming the status of the board member must be submitted to
264the agency on a form provided by the agency.
265     408.804  License required; display.--
266     (1)  It is unlawful to provide services that require
267licensure, or operate or maintain a provider that offers or
268provides services that require licensure, without first
269obtaining from the agency a license authorizing the provision of
270such services or the operation or maintenance of such provider.
271     (2)  A license must be displayed in a conspicuous place
272readily visible to clients who enter at the address that appears
273on the license and is valid only in the hands of the licensee to
274whom it is issued and may not be sold, assigned, or otherwise
275transferred, voluntarily or involuntarily. The license is valid
276only for the licensee, provider, and location for which the
277license is issued.
278     408.805  Fees required; adjustments.--Unless otherwise
279limited by authorizing statutes, license fees must be reasonably
280calculated by the agency to cover its costs in carrying out its
281responsibilities under this part, authorizing statutes, and
282applicable rules, including the cost of licensure, inspection,
283and regulation of providers.
284     (1)  Licensure fees shall be adjusted to provide for
285biennial licensure under agency rules.
286     (2)  The agency shall annually adjust licensure fees,
287including fees paid per bed, by not more than the change in the
288Consumer Price Index based on the 12 months immediately
289preceding the increase.
290     (3)  The agency may, by rule, adjust licensure fees to
291cover the cost of administering this part, authorizing statutes,
292and applicable rules.
293     (4)  An inspection fee must be paid as required in
294authorizing statutes.
295     (5)  Fees are nonrefundable.
296     (6)  When a change is reported that requires issuance of a
297license, a fee may be assessed. The fee must be based on the
298actual cost of processing and issuing the license.
299     (7)  A fee may be charged to a licensee requesting a
300duplicate license. The fee may not exceed the actual cost of
301duplication and postage.
302     (8)  Total fees collected may not exceed the cost of
303administering this part, authorizing statutes, and applicable
304rules.
305     408.806  License application process.--
306     (1)  An application for licensure must be made to the
307agency on forms furnished by the agency, submitted under oath,
308and accompanied by the appropriate fee in order to be accepted
309and considered timely. The application must contain information
310required by authorizing statutes and applicable rules and must
311include:
312     (a)  The name, address, and social security number of the
313applicant and each controlling interest if the applicant or
314controlling interest is an individual.
315     (b)  The name, address, and federal employer identification
316number or taxpayer identification number of the applicant and
317each controlling interest if the applicant or controlling
318interest is not an individual.
319     (c)  The name by which the provider is to be known.
320     (d)  The total number of beds or capacity requested, as
321applicable.
322     (e)  The name of the person or persons under whose
323management or supervision the provider will operate and the name
324of the administrator, if required.
325     (f)  If the applicant offers continuing care agreements as
326defined in chapter 651, proof shall be furnished that the
327applicant has obtained a certificate of authority as required
328for operation under chapter 651.
329     (g)  Other information, including satisfactory inspection
330results, that the agency finds necessary to determine the
331ability of the applicant to carry out its responsibilities under
332this part, authorizing statutes, and applicable rules.
333     (2)(a)  The applicant for a renewal license must submit an
334application that must be received by the agency at least 60 days
335prior to the expiration of the current license. If the renewal
336application and fee are received prior to the license expiration
337date, the license shall not be deemed to have expired if the
338license expiration date occurs during the agency's review of the
339renewal application.
340     (b)  The applicant for initial licensure due to a change of
341ownership must submit an application that must be received by
342the agency at least 60 days prior to the date of change of
343ownership.
344     (c)  For any other application or request, the applicant
345must submit an application or request that must be received by
346the agency at least 60 days prior to the requested effective
347date, unless otherwise specified in authorizing statutes or
348applicable rules.
349     (d)  The agency shall notify the licensee by mail or
350electronically at least 90 days prior to the expiration of a
351license that a renewal license is necessary to continue
352operation. The failure to timely submit a renewal application
353and license fee shall result in a $50 per day late fee charged
354to the licensee by the agency; however, the aggregate amount of
355the late fee may not exceed 50 percent of the licensure fee or
356$500, whichever is less. If an application is received after the
357required filing date and exhibits a hand-canceled postmark
358obtained from a United States post office dated on or before the
359required filing date, no fine will be levied.
360     (3)(a)  Upon receipt of an application for a license, the
361agency shall examine the application and, within 30 days after
362receipt, notify the applicant in writing of any apparent errors
363or omissions and request any additional information required.
364     (b)  Requested information omitted from an application for
365licensure, license renewal, or change of ownership, other than
366an inspection, must be filed with the agency within 21 days
367after the agency's request for omitted information or the
368application shall be deemed incomplete and shall be withdrawn
369from further consideration and the fees shall be forfeited.
370     (c)  Within 60 days after the receipt of a complete
371application, the agency shall approve or deny the application.
372     (4)(a)  Licensees subject to the provisions of this part
373shall be issued biennial licenses unless conditions of the
374license category specify a shorter license period.
375     (b)  Each license issued shall indicate the name of the
376licensee, the type of provider or service that the licensee is
377required or authorized to operate or offer, the date the license
378is effective, the expiration date of the license, the maximum
379capacity of the licensed premises, if applicable, and any other
380information required or deemed necessary by the agency.
381     (5)  In accordance with authorizing statutes and applicable
382rules, proof of compliance with s. 408.810 must be submitted
383with an application for licensure.
384     (6)  The agency may not issue an initial license to a
385health care provider subject to the certificate-of-need
386provisions in part I of this chapter if the licensee has not
387been issued a certificate of need or certificate-of-need
388exemption, when applicable. Failure to apply for the renewal of
389a license prior to the expiration date renders the license void.
390     (7)(a)  An applicant must demonstrate compliance with the
391requirements in this part, authorizing statutes, and applicable
392rules during an inspection pursuant to s. 408.811, as required
393by authorizing statutes.
394     (b)  An initial inspection is not required for companion
395services or homemaker services providers, as provided under part
396IV of chapter 400, or for health care services pools, as
397provided under part XII of chapter 400.
398     (c)  If an inspection is required by the authorizing
399statute for a license application other than an initial
400application, the inspection must be unannounced. This paragraph
401does not apply to inspections required pursuant to ss. 383.324,
402395.0161(4), and 483.061(2).
403     (d)  If a provider is not available when an inspection is
404attempted, the application shall be denied.
405     (8)  The agency may establish procedures for the electronic
406notification and submission of required information, including,
407but not limited to:
408     (a)  Licensure applications.
409     (b)  Required signatures.
410     (c)  Payment of fees.
411     (d)  Notarization of applications.
412
413Requirements for electronic submission of any documents required
414by this part or authorizing statutes may be established by rule.
415     408.807  Change of ownership.--Whenever a change of
416ownership occurs:
417     (1)  The transferor shall notify the agency in writing at
418least 60 days before the anticipated date of the change of
419ownership.
420     (2)  The transferee shall make application to the agency
421for a license within the timeframes required in s. 408.806.
422     (3)  The transferor shall be responsible and liable for:
423     (a)  The lawful operation of the provider and the welfare
424of the clients served until the date the transferee is licensed
425by the agency.
426     (b)  Any and all penalties imposed against the transferor
427for violations occurring before the date of change of ownership.
428     (4)  Any restriction on licensure, including a conditional
429license existing at the time of a change of ownership, shall
430remain in effect until the agency determines that the grounds
431for the restriction are corrected.
432     (5)  The transferee shall maintain records of the
433transferor as required in this part, authorizing statutes, and
434applicable rules, including:
435     (a)  All client records.
436     (b)  Inspection reports.
437     (c)  All records required to be maintained pursuant to s.
438409.913, if applicable.
439     408.808  License categories.--
440     (1)  STANDARD LICENSE.--A standard license may be issued to
441an applicant at the time of initial licensure, license renewal,
442or change of ownership. A standard license shall be issued when
443the applicant is in compliance with all statutory requirements
444and agency rules. Unless sooner revoked, a standard license
445expires 2 years after the date of issue.
446     (2)  PROVISIONAL LICENSE.--A provisional license may be
447issued to an applicant pursuant to s. 408.809(3). An applicant
448against whom a proceeding denying or revoking a license is
449pending at the time of license renewal may be issued a
450provisional license effective until final action not subject to
451further appeal.
452     (3)  INACTIVE LICENSE.--An inactive license may be issued
453to a health care provider subject to the certificate-of-need
454provisions in part I of this chapter when the provider is
455currently licensed, does not have a provisional license, and
456will be temporarily unable to provide services but is reasonably
457expected to resume services within 12 months. Such designation
458may be made for a period not to exceed 12 months but may be
459renewed by the agency for up to 12 additional months upon
460demonstration by the licensee of the provider's progress toward
461reopening. A request by a licensee for an inactive license or to
462extend the previously approved inactive period must be submitted
463to the agency and must include a written justification for the
464inactive license with the beginning and ending dates of
465inactivity specified, a plan for the transfer of any clients to
466other providers, and the appropriate licensure fees. The agency
467may not accept a request that is submitted after initiating
468closure, after any suspension of service, or after notifying
469clients of closure or suspension of service, unless the action
470is a result of a disaster at the licensed premises. For the
471purposes of this section, the term "disaster" means a sudden
472emergency occurrence beyond the control of the licensee, whether
473natural, technological, or manmade, which renders the provider
474inoperable at the premises. Upon agency approval, the provider
475shall notify clients of any necessary discharge or transfer as
476required by authorizing statutes or applicable rules. The
477beginning of the inactive license period is the date the
478provider ceases operations. The end of the inactive license
479period shall become the license expiration date. All licensure
480fees must be current, must be paid in full, and may be prorated.
481Reactivation of an inactive license requires the approval of a
482renewal application, including payment of licensure fees and
483agency inspections indicating compliance with all requirements
484of this part, authorizing statutes, and applicable rules.
485     (4)  OTHER LICENSES.--Other types of license categories may
486be issued pursuant to authorizing statutes or applicable rules.
487     408.809  Background screening; prohibited offenses.--
488     (1)  Level 2 background screening pursuant to chapter 435
489must be conducted through the agency on each of the following
490persons, who shall be considered an employee for the purposes of
491conducting screening under chapter 435:
492     (a)  The licensee, if an individual.
493     (b)  The administrator or a similarly titled person who is
494responsible for the day-to-day operation of the provider.
495     (c)  The financial officer or similarly titled individual
496who is responsible for the financial operation of the licensee
497or provider.
498     (d)  Any person who is a controlling interest if the agency
499has reason to believe that such person has been convicted of any
500offense prohibited by s. 435.04. For each controlling interest
501who has been convicted of any such offense, the licensee shall
502submit to the agency a description and explanation of the
503conviction at the time of license application.
504     (2)  Proof of compliance with level 2 screening standards
505submitted within the previous 5 years to meet any provider or
506professional licensure requirements of the agency, the
507Department of Health, the Agency for Persons with Disabilities,
508or the Department of Children and Family Services satisfies the
509requirements of this section, provided that such proof is
510accompanied, under penalty of perjury, by an affidavit of
511compliance with the provisions of chapter 435 using forms
512provided by the agency. Proof of compliance with the background
513screening requirements of the Department of Financial Services
514submitted within the previous 5 years for an applicant for a
515certificate of authority to operate a continuing care retirement
516community under chapter 651 satisfies the Department of Law
517Enforcement and Federal Bureau of Investigation portions of a
518level 2 background check.
519     (3)  A provisional license may be granted to an applicant
520when each individual required by this section to undergo
521background screening has met the standards for the Department of
522Law Enforcement background check but the agency has not yet
523received background screening results from the Federal Bureau of
524Investigation. A standard license may be granted to the licensee
525upon the agency's receipt of a report of the results of the
526Federal Bureau of Investigation background screening for each
527individual required by this section to undergo background
528screening that confirms that all standards have been met or upon
529the granting of an exemption from disqualification by the agency
530as set forth in chapter 435.
531     (4)  When a person is newly employed in a capacity that
532requires screening under this section, the licensee must notify
533the agency of the change within the time period specified in the
534authorizing statute or rules and must submit to the agency
535information necessary to conduct level 2 screening or provide
536evidence of compliance with background screening requirements of
537this section. The person may serve in his or her capacity
538pending the agency's receipt of the report from the Federal
539Bureau of Investigation if he or she has met the standards for
540the Department of Law Enforcement background check. However, the
541person may not continue to serve in his or her capacity if the
542report indicates any violation of background screening standards
543unless an exemption from disqualification has been granted by
544the agency as set forth in chapter 435.
545     (5)  Background screening is not required to obtain a
546certificate of exemption issued under s. 483.106.
547     408.810  Minimum licensure requirements.--In addition to
548the licensure requirements specified in this part, authorizing
549statutes, and applicable rules, each applicant and licensee must
550comply with the requirements of this section in order to obtain
551and maintain a license.
552     (1)  An applicant for licensure must comply with the
553background screening requirements of s. 408.809.
554     (2)  An applicant for licensure must provide a description
555and explanation of any exclusions, suspensions, or terminations
556of the applicant from the Medicare, Medicaid, or federal
557Clinical Laboratory Improvement Amendment (CLIA) programs.
558     (3)  Unless otherwise specified in this part, authorizing
559statutes, or applicable rules, any information required to be
560reported to the agency must be submitted within 21 calendar days
561after the report period or effective date of the information.
562     (4)  Whenever a licensee discontinues operation of a
563provider:
564     (a)  The licensee must inform the agency not less than 30
565days prior to the discontinuance of operation and inform clients
566of such discontinuance as required by authorizing statutes.
567Immediately upon discontinuance of operation by a provider, the
568licensee shall surrender the license to the agency and the
569license shall be canceled.
570     (b)  The licensee shall remain responsible for retaining
571and appropriately distributing all records within the timeframes
572prescribed in authorizing statutes and applicable rules. In
573addition, the licensee or, in the event of death or dissolution
574of a licensee, the estate or agent of the licensee shall:
575     1.  Make arrangements to forward records for each client to
576one of the following, based upon the client's choice: the client
577or the client's legal representative, the client's attending
578physician, or the health care provider where the client
579currently receives services; or
580     2.  Cause a notice to be published in the newspaper of
581greatest general circulation in the county in which the provider
582was located that advises clients of the discontinuance of the
583provider operation. The notice must inform clients that they may
584obtain copies of their records and specify the name, address,
585and telephone number of the person from whom the copies of
586records may be obtained. The notice must appear at least once a
587week for 4 consecutive weeks.
588     (5)(a)  On or before the first day services are provided to
589a client, a licensee must inform the client and his or her
590immediate family or representative, if appropriate, of the right
591to report:
592     1.  Complaints. The statewide toll-free telephone number
593for reporting complaints to the agency must be provided to
594clients in a manner that is clearly legible and must include the
595words: "To report a complaint regarding the services you
596receive, please call toll-free (phone number)."
597     2.  Abusive, neglectful, or exploitative practices. The
598statewide toll-free telephone number for the central abuse
599hotline must be provided to clients in a manner that is clearly
600legible and must include the words: "To report abuse, neglect,
601or exploitation, please call toll-free (phone number)." The
602agency shall publish a minimum of a 90-day advance notice of a
603change in the toll-free telephone numbers.
604     (b)  Each licensee shall establish appropriate policies and
605procedures for providing such notice to clients.
606     (6)  An applicant must provide the agency with proof of the
607applicant's legal right to occupy the property before a license
608may be issued. Proof may include, but need not be limited to,
609copies of warranty deeds, lease or rental agreements, contracts
610for deeds, quitclaim deeds, or other such documentation.
611     (7)  If proof of insurance is required by the authorizing
612statute, that insurance must be in compliance with chapter 624,
613chapter 626, chapter 627, or chapter 628 and with agency rules.
614     (8)  Upon application for initial licensure or change of
615ownership licensure, the applicant shall furnish satisfactory
616proof of the applicant's financial ability to operate in
617accordance with the requirements of this part, authorizing
618statutes, and applicable rules. The agency shall establish
619standards for this purpose, including information concerning the
620applicant's controlling interests. The agency shall also
621establish documentation requirements, to be completed by each
622applicant, that show anticipated provider revenues and
623expenditures, the basis for financing the anticipated cash-flow
624requirements of the provider, and an applicant's access to
625contingency financing. A current certificate of authority,
626pursuant to chapter 651, may be provided as proof of financial
627ability to operate. The agency may require a licensee to provide
628proof of financial ability to operate at any time if there is
629evidence of financial instability, including, but not limited
630to, unpaid expenses necessary for the basic operations of the
631provider.
632     (9)  A controlling interest may not withhold from the
633agency any evidence of financial instability, including, but not
634limited to, checks returned due to insufficient funds,
635delinquent accounts, nonpayment of withholding taxes, unpaid
636utility expenses, nonpayment for essential services, or adverse
637court action concerning the financial viability of the provider
638or any other provider licensed under this part that is under the
639control of the controlling interest. Any person who violates
640this subsection commits a misdemeanor of the second degree,
641punishable as provided in s. 775.082 or s. 775.083. Each day of
642continuing violation is a separate offense.
643     (10)  The agency may not issue a license to a health care
644provider subject to the certificate-of-need provisions in part I
645of this chapter if the health care provider has not been issued
646a certificate of need or an exemption. Upon initial licensure of
647any such provider, the authorization contained in the
648certificate of need shall be considered fully implemented and
649merged into the license and shall have no force and effect upon
650termination of the license for any reason.
651     408.811  Right of inspection; copies; inspection reports.--
652     (1)  An authorized officer or employee of the agency may
653make or cause to be made any inspection or investigation deemed
654necessary by the agency to determine the state of compliance
655with this part, authorizing statutes, and applicable rules. The
656right of inspection extends to any business that the agency has
657reason to believe is being operated as a provider without a
658license, but inspection of any business suspected of being
659operated without the appropriate license may not be made without
660the permission of the owner or person in charge unless a warrant
661is first obtained from a circuit court. Any application for a
662license issued under this part, authorizing statutes, or
663applicable rules constitutes permission for an appropriate
664inspection to verify the information submitted on or in
665connection with the application.
666     (a)  All inspections shall be unannounced, except as
667specified in s. 408.806.
668     (b)  Inspections for relicensure shall be conducted
669biennially unless otherwise specified by authorizing statutes or
670applicable rules.
671     (2)  Inspections conducted in conjunction with
672certification may be accepted in lieu of a complete licensure
673inspection. However, a licensure inspection may also be
674conducted to review any licensure requirements that are not also
675requirements for certification.
676     (3)  The agency shall have access to and the licensee shall
677provide copies of all provider records required during an
678inspection at no cost to the agency.
679     (4)(a)  Each licensee shall maintain as public information,
680available upon request, records of all inspection reports
681pertaining to that provider that have been filed by the agency
682unless those reports are exempt from or contain information that
683is exempt from s. 119.07(1) and s. 24(a), Art. I of the State
684Constitution or is otherwise made confidential by law. Effective
685October 1, 2006, copies of such reports shall be retained in the
686records of the provider for at least 3 years following the date
687the reports are filed and issued, regardless of a change of
688ownership.
689     (b)  A licensee shall, upon the request of any person who
690has completed a written application with intent to be admitted
691by such provider, any person who is a client of such provider,
692or any relative, spouse, or guardian of any such person, furnish
693to the requester a copy of the last inspection report pertaining
694to the licensed provider that was issued by the agency or by an
695accrediting organization if such report is used in lieu of a
696licensure inspection.
697     408.812  Unlicensed activity.--
698     (1)  A person or entity may not offer or advertise services
699that require licensure as defined by this part, authorizing
700statutes, or applicable rules to the public without obtaining a
701valid license from the agency. A licenseholder may not advertise
702or hold out to the public that he or she holds a license for
703other than that for which he or she actually holds the license.
704     (2)  The operation or maintenance of an unlicensed provider
705or the performance of any services that require licensure
706without proper licensure is a violation of this part and
707authorizing statutes. Unlicensed activity constitutes harm that
708materially affects the health, safety, and welfare of clients.
709The agency or any state attorney may, in addition to other
710remedies provided in this part, bring an action for an
711injunction to restrain such violation, or to enjoin the future
712operation or maintenance of the unlicensed provider or the
713performance of any services in violation of this part and
714authorizing statutes, until compliance with this part,
715authorizing statutes, and agency rules has been demonstrated to
716the satisfaction of the agency.
717     (3)  It is unlawful for any person or entity to own,
718operate, or maintain an unlicensed provider. If after receiving
719notification from the agency, such person or entity fails to
720cease operation and apply for a license under this part and
721authorizing statutes, the person or entity shall be subject to
722penalties as prescribed by authorizing statutes and applicable
723rules. Each day of continued operation is a separate offense.
724     (4)  Any person or entity that fails to cease operation
725after agency notification may be fined $1,000 for each day of
726noncompliance.
727     (5)  When a controlling interest or licensee has an
728interest in more than one provider and fails to license a
729provider rendering services that require licensure, the agency
730may revoke all licenses and impose actions under s. 408.814 and
731a fine of $1,000 per day, unless otherwise specified by
732authorizing statutes, against each licensee until such time as
733the appropriate license is obtained for the unlicensed
734operation.
735     (6)  In addition to granting injunctive relief pursuant to
736subsection (2), if the agency determines that a person or entity
737is operating or maintaining a provider without obtaining a
738license and determines that a condition exists that poses a
739threat to the health, safety, or welfare of a client of the
740provider, the person or entity is subject to the same actions
741and fines imposed against a licensee as specified in this part,
742authorizing statutes, and agency rules.
743     (7)  Any person aware of the operation of an unlicensed
744provider must report that provider to the agency.
745     408.813  Administrative fines.--As a penalty for any
746violation of this part, authorizing statutes, or applicable
747rules, the agency may impose an administrative fine. Unless the
748amount or aggregate limitation of the fine is prescribed by
749authorizing statutes or applicable rules, the agency may
750establish criteria by rule for the amount or aggregate
751limitation of administrative fines applicable to this part,
752authorizing statutes, and applicable rules. Each day of
753violation constitutes a separate violation and is subject to a
754separate fine. For fines imposed by final order of the agency
755and not subject to further appeal, the violator shall pay the
756fine plus interest at the rate specified in s. 55.03 for each
757day beyond the date set by the agency for payment of the fine.
758     408.814  Moratorium; emergency suspension.--
759     (1)  The agency may impose an immediate moratorium or
760emergency suspension as defined in s. 120.60 on any provider if
761the agency determines that any condition related to the provider
762or licensee presents a threat to the health, safety, or welfare
763of a client.
764     (2)  A provider or licensee, the license of which is denied
765or revoked, may be subject to immediate imposition of a
766moratorium or emergency suspension to run concurrently with
767licensure denial, revocation, or injunction.
768     (3)  A moratorium or emergency suspension remains in effect
769after a change of ownership, unless the agency has determined
770that the conditions that created the moratorium, emergency
771suspension, or denial of licensure have been corrected.
772     (4)  When a moratorium or emergency suspension is placed on
773a provider or licensee, notice of the action shall be posted and
774visible to the public at the location of the provider until the
775action is lifted.
776     408.815  License or application denial; revocation.--
777     (1)  In addition to the grounds provided in authorizing
778statutes, grounds that may be used by the agency for denying and
779revoking a license or change of ownership application include
780any of the following actions by a controlling interest:
781     (a)  False representation of a material fact in the license
782application or omission of any material fact from the
783application.
784     (b)  An intentional or negligent act materially affecting
785the health or safety of a client of the provider.
786     (c)  A violation of this part, authorizing statutes, or
787applicable rules.
788     (d)  A demonstrated pattern of deficient performance.
789     (e)  The applicant, licensee, or controlling interest has
790been or is currently excluded, suspended, or terminated from
791participation in the state Medicaid program, the Medicaid
792program of any other state, or the Medicare program.
793     (2)  If a licensee lawfully continues to operate while a
794denial or revocation is pending in litigation, the licensee must
795continue to meet all other requirements of this part,
796authorizing statutes, and applicable rules and must file
797subsequent renewal applications for licensure and pay all
798licensure fees. The provisions of ss. 120.60(1) and
799408.806(3)(c) shall not apply to renewal applications filed
800during the time period in which the litigation of the denial or
801revocation is pending until that litigation is final.
802     (3)  An action under s. 408.814 or denial of the license of
803the transferor may be grounds for denial of a change of
804ownership application of the transferee.
805     408.816  Injunctions.--
806     (1)  In addition to the other powers provided by this part,
807authorizing statutes, and applicable rules, the agency may
808institute injunction proceedings in a court of competent
809jurisdiction to:
810     (a)  Restrain or prevent the establishment or operation of
811a provider that does not have a license or is in violation of
812any provision of this part, authorizing statutes, or applicable
813rules. The agency may also institute injunction proceedings in a
814court of competent jurisdiction when a violation of this part,
815authorizing statutes, or applicable rules constitutes an
816emergency affecting the immediate health and safety of a client.
817     (b)  Enforce the provisions of this part, authorizing
818statutes, or any minimum standard, rule, or order issued or
819entered into pursuant thereto when the attempt by the agency to
820correct a violation through administrative sanctions has failed
821or when the violation materially affects the health, safety, or
822welfare of clients or involves any operation of an unlicensed
823provider.
824     (c)  Terminate the operation of a provider when a violation
825of any provision of this part, authorizing statutes, or any
826standard or rule adopted pursuant thereto exists that materially
827affects the health, safety, or welfare of a client.
828
829Such injunctive relief may be temporary or permanent.
830     (2)  If action is necessary to protect clients of providers
831from immediate, life-threatening situations, the court may allow
832a temporary injunction without bond upon proper proofs being
833made. If it appears by competent evidence or a sworn,
834substantiated affidavit that a temporary injunction should be
835issued, the court, pending the determination on final hearing,
836shall enjoin the operation of the provider.
837     408.817  Administrative proceedings.--Administrative
838proceedings challenging agency licensure enforcement action
839shall be reviewed on the basis of the facts and conditions that
840resulted in the agency action.
841     408.818  Health Care Trust Fund.--Unless otherwise
842prescribed by authorizing statutes, all fees and fines collected
843under this part, authorizing statutes, and applicable rules
844shall be deposited into the Health Care Trust Fund, created in
845s. 408.16, and used to pay the costs of the agency in
846administering the provider program paying the fees or fines.
847     408.819  Rules.--The agency is authorized to adopt rules as
848necessary to administer this part. Any licensed provider that is
849in operation at the time of adoption of any applicable rule
850under this part or authorizing statutes shall be given a
851reasonable time under the particular circumstances, not to
852exceed 6 months after the date of such adoption, within which to
853comply with such rule, unless otherwise specified by rule.
854     408.820  Exemptions.--Except as prescribed in authorizing
855statutes, the following exemptions shall apply to specified
856requirements of this part:
857     (1)  Laboratories authorized to perform testing under the
858Drug-Free Workplace Act, as provided under ss. 112.0455 and
859440.102, are exempt from s. 408.810(5)-(10).
860     (2)  Birth centers, as provided under chapter 383, are
861exempt from s. 408.810(7)-(10).
862     (3)  Abortion clinics, as provided under chapter 390, are
863exempt from s. 408.810(7)-(10).
864     (4)  Crisis stabilization units, as provided under parts I
865and IV of chapter 394, are exempt from s. 408.810(8)-(10).
866     (5)  Short-term residential treatment facilities, as
867provided under parts I and IV of chapter 394, are exempt from s.
868408.810(8)-(10).
869     (6)  Residential treatment facilities, as provided under
870part IV of chapter 394, are exempt from s. 408.810(8)-(10).
871     (7)  Residential treatment centers for children and
872adolescents, as provided under part IV of chapter 394, are
873exempt from s. 408.810(8)-(10).
874     (8)  Hospitals, as provided under part I of chapter 395,
875are exempt from s. 408.810(7)-(9).
876     (9)  Ambulatory surgical centers, as provided under part I
877of chapter 395, are exempt from s. 408.810(7)-(10).
878     (10)  Mobile surgical facilities, as provided under part I
879of chapter 395, are exempt from s. 408.810(7)-(10).
880     (11)  Private review agents, as provided under part I of
881chapter 395, are exempt from ss. 408.806(7), 408.810, and
882408.811.
883     (12)  Health care risk managers, as provided under part I
884of chapter 395, are exempt from ss. 408.806(7), 408.810, and
885408.811.
886     (13)  Nursing homes, as provided under part II of chapter
887400, are exempt from s. 408.810(7).
888     (14)  Assisted living facilities, as provided under part
889III of chapter 400, are exempt from s. 408.810(10).
890     (15)  Home health agencies, as provided under part IV of
891chapter 400, are exempt from s. 408.810(10).
892     (16)  Nurse registries, as provided under part IV of
893chapter 400, are exempt from s. 408.810(6) and (10).
894     (17)  Companion services or homemaker services providers,
895as provided under part IV of chapter 400, are exempt from s.
896408.810(6)-(10).
897     (18)  Adult day care centers, as provided under part V of
898chapter 400, are exempt from s. 408.810(10).
899     (19)  Adult family-care homes, as provided under part VII
900of chapter 400, are exempt from s. 408.810(7)-(10).
901     (20)  Homes for special services, as provided under part
902VIII of chapter 400, are exempt from s. 408.810(7)-(10).
903     (21)  Transitional living facilities, as provided under
904part VIII of chapter 400, are exempt from s. 408.810(7)-(10).
905     (22)  Prescribed pediatric extended care centers, as
906provided under part IX of chapter 400, are exempt from s.
907408.810(10).
908     (23)  Home medical equipment providers, as provided under
909part X of chapter 400, are exempt from s. 408.810(10).
910     (24)  Intermediate care facilities for persons with
911developmental disabilities, as provided under part XI of chapter
912400, are exempt from s. 408.810(7).
913     (25)  Health care services pools, as provided under part
914XII of chapter 400, are exempt from s. 408.810(6)-(10).
915     (26)  Health care clinics, as provided under part XIII of
916chapter 400, are exempt from ss. 408.809 and 408.810(1), (6),
917(7), and (10).
918     (27)  Clinical laboratories, as provided under part I of
919chapter 483, are exempt from s. 408.810(5)-(10).
920     (28)  Multiphasic health testing centers, as provided under
921part II of chapter 483, are exempt from s. 408.810(5)-(10).
922     (29)  Organ and tissue procurement agencies, as provided
923under chapter 765, are exempt from s. 408.810(5)-(10).
924     Section 6.  Paragraph (b) of subsection (1) of section
925400.801, Florida Statutes, is amended to read:
926     400.801  Homes for special services.--
927     (1)  As used in this section, the term:
928     (b)  "Home for special services" means a site licensed by
929the agency prior to January 1, 2006, where specialized health
930care services are provided, including personal and custodial
931care, but not continuous nursing services.
932     Section 7.  Paragraphs (e) and (i) of subsection (4) of
933section 400.9905, Florida Statutes, are amended, and paragraph
934(k) is added to that subsection, to read:
935     400.9905  Definitions.--
936     (4)  "Clinic" means an entity at which health care services
937are provided to individuals and which tenders charges for
938reimbursement for such services, including a mobile clinic and a
939portable equipment provider. For purposes of this part, the term
940does not include and the licensure requirements of this part do
941not apply to:
942     (e)  An entity that is exempt from federal taxation under
94326 U.S.C. s. 501(c)(3) or s. 501(c)(4), an employee stock
944ownership plan under 26 U.S.C. s. 409 that has a board of
945trustees not less than two-thirds of which are Florida-licensed
946health care practitioners and provides only physical therapy
947services under physician orders, any community college or
948university clinic, and any entity owned or operated by the
949federal or state government, including agencies, subdivisions,
950or municipalities thereof.
951     (i)  Entities that provide only oncology or radiation
952therapy services by physicians licensed under chapter 458 or
953chapter 459 which are owned by a corporation whose shares are
954publicly traded on a recognized stock exchange.
955     (k)  Entities that provide licensed practitioners to staff
956emergency departments or to deliver anesthesia services in
957facilities licensed under chapter 395 and that derive at least
95890 percent of their gross annual revenues from the provision of
959such services. Entities claiming an exemption from licensure
960under this paragraph must provide documentation demonstrating
961compliance.
962     Section 8.  Paragraphs (f) through (s) of subsection (3) of
963section 408.036, Florida Statutes, are redesignated as
964paragraphs (g) through (t), respectively, and a new paragraph
965(f) is added to that subsection to read:
966     408.036  Projects subject to review; exemptions.--
967     (3)  EXEMPTIONS.--Upon request, the following projects are
968subject to exemption from the provisions of subsection (1):
969     (f)  For the creation of a single nursing home within a
970district by combining licensed beds from two or more licensed
971nursing homes within such district, regardless of subdistrict
972boundaries, if 50 percent of the beds in the created nursing
973home are transferred from the only nursing home in a county and
974its utilization data demonstrate that it had an occupancy rate
975of less than 75 percent for the 12-month period ending 90 days
976before the request for the exemption. This paragraph is repealed
977upon the expiration of the moratorium established in s.
978651.1185(1).
979     Section 9.  Subsections (1) and (3) of section 408.831,
980Florida Statutes, are amended to read:
981     408.831  Denial, suspension, or revocation of a license,
982registration, certificate, or application.--
983     (1)  In addition to any other remedies provided by law, the
984agency may deny each application or suspend or revoke each
985license, registration, or certificate of entities regulated or
986licensed by it:
987     (a)  If the applicant, licensee, or a licensee subject to
988this part which shares a common controlling interest with the
989applicant registrant, or certificateholder, or, in the case of a
990corporation, partnership, or other business entity, if any
991officer, director, agent, or managing employee of that business
992entity or any affiliated person, partner, or shareholder having
993an ownership interest equal to 5 percent or greater in that
994business entity, has failed to pay all outstanding fines, liens,
995or overpayments assessed by final order of the agency or final
996order of the Centers for Medicare and Medicaid Services, not
997subject to further appeal, unless a repayment plan is approved
998by the agency; or
999     (b)  For failure to comply with any repayment plan.
1000     (3)  This section provides standards of enforcement
1001applicable to all entities licensed or regulated by the Agency
1002for Health Care Administration. This section controls over any
1003conflicting provisions of chapters 39, 381, 383, 390, 391, 393,
1004394, 395, 400, 408, 468, 483, and 765 641 or rules adopted
1005pursuant to those chapters.
1006     Section 10.  In case of conflict between the provisions of
1007part II of chapter 408, Florida Statutes, and the authorizing
1008statutes governing the licensure of health care providers by the
1009Agency for Health Care Administration found in s. 112.0455 and
1010chapters 383, 390, 394, 395, 400, 440, 483, and 765, Florida
1011Statutes, the provisions of part II of chapter 408, Florida
1012Statutes, shall prevail.
1013     Section 11.  All provisions that apply to the entities
1014specified in s. 408.802, Florida Statutes, as created by this
1015act, in effect on October 1, 2006, that provide for annual
1016licensure fees are hereby adjusted to provide for biennial
1017licensure fees with a corresponding doubling of the amount.
1018     Section 12.  The Legislature recognizes that there is a
1019need to conform the Florida Statutes to the policy decisions
1020reflected in this act and that there may be a need to resolve
1021apparent conflicts between any changes or additions to the
1022authorizing statutes, as defined in s. 408.803, Florida
1023Statutes, or any other legislation that has been or may be
1024enacted during 2006 and this chapter 408, Florida Statutes, as
1025amended by this act. Therefore, in the interim between this act
1026becoming a law and the 2007 Regular Session of the Legislature
1027or an earlier special session addressing this issue, the
1028Division of Statutory Revision shall provide the relevant
1029substantive committees of the Senate and the House of
1030Representatives with assistance, upon request, to enable such
1031committees to prepare draft legislation to conform the Florida
1032Statutes and any legislation enacted during 2006 to the
1033provisions of this act.
1034     Section 13.  For the purpose of staggering license
1035expiration dates, the Agency for Health Care Administration may
1036issue a license for less than a 2-year period to those providers
1037making the transition from annual to biennial licensure as
1038authorized in this act. The agency shall charge a prorated
1039licensure fee for this shortened period. This authority shall
1040expire September 30, 2008.
1041     Section 14.  This act shall take effect October 1, 2006.


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