HB 7141

1
A bill to be entitled
2An act relating to the licensure of health care providers;
3creating pts. I, II, III, and IV of ch. 408, F.S.;
4creating s. 408.801, F.S.; providing a short title;
5providing legislative findings and purpose; creating s.
6408.802, F.S.; providing applicability; creating s.
7408.803, F.S.; providing definitions; creating s. 408.804,
8F.S.; requiring providers to have and display a license;
9providing limitations; creating s. 408.805, F.S.;
10establishing license fees and conditions for assessment
11thereof; providing a method for calculating annual
12adjustment of fees; providing for inspection fees;
13providing that fees are nonrefundable; creating s.
14408.806, F.S.; providing a license application process;
15requiring specified information to be included on the
16application; requiring payment of late fees under certain
17circumstances; requiring inspections; providing an
18exception; authorizing the Agency for Health Care
19Administration to establish procedures and rules for
20electronic transmission of required information; creating
21s. 408.807, F.S.; providing procedures for change of
22ownership; requiring the transferor to notify the agency
23in writing within a specified time period; providing for
24duties and liability of the transferor; providing for
25maintenance of certain records; creating s. 408.808, F.S.;
26providing license categories and requirements therefor;
27creating s. 408.809, F.S.; requiring background screening
28of specified employees; providing for submission of proof
29of compliance, under certain circumstances; providing
30conditions for granting provisional and standard licenses;
31providing an exception to screening requirements; creating
32s. 408.810, F.S.; providing minimum licensure
33requirements; providing procedures for discontinuance of
34operation and surrender of license; requiring forwarding
35of client records; requiring publication of a notice of
36discontinuance of operation of a provider; providing for
37statewide toll-free telephone numbers for reporting
38complaints and abusive, neglectful, and exploitative
39practices; requiring proof of legal right to occupy
40property, proof of insurance, and proof of financial
41viability, under certain circumstances; requiring
42disclosure of information relating to financial
43instability; providing a penalty; prohibiting the agency
44from licensing a health care provider that does not have a
45certificate of need or an exemption; creating s. 408.811,
46F.S.; providing for inspections and investigations to
47determine compliance; providing that inspection reports
48are public records; requiring retention of records for a
49specified period of time; creating s. 408.812, F.S.;
50prohibiting certain unlicensed activity by a provider;
51requiring unlicensed providers to cease activity;
52providing penalties; requiring reporting of unlicensed
53providers; creating s. 408.813, F.S.; authorizing the
54agency to impose administrative fines; creating s.
55408.814, F.S.; providing conditions for the agency to
56impose a moratorium or emergency suspension on a provider;
57requiring notice; creating s. 408.815, F.S.; providing
58grounds for denial or revocation of a license or change-
59of-ownership application; providing conditions to continue
60operation; exempting renewal applications from provisions
61requiring the agency to approve or deny an application
62within a specified period of time, under certain
63circumstances; creating s. 408.816, F.S.; authorizing the
64agency to institute injunction proceedings, under certain
65circumstances; creating s. 408.817, F.S.; providing basis
66for review of administrative proceedings challenging
67agency licensure enforcement action; creating s. 408.818,
68F.S.; requiring fees and fines related to health care
69licensing to be deposited into the Health Care Trust Fund;
70creating s. 408.819, F.S.; authorizing the agency to adopt
71rules; providing a timeframe for compliance; creating s.
72408.820, F.S.; providing exemptions from specified
73requirements of pt. II of ch. 408, F.S.; amending s.
74400.801, F.S.; providing that the definition of homes for
75special services applies to sites licensed by the agency
76after a certain date; amending s. 400.9905, F.S.;
77excluding certain entities from the definition of
78"clinic"; amending s. 408.036, F.S.; exempting a nursing
79home created by combining certain licensed beds from
80requirements for obtaining a certificate of need from the
81agency; providing for future repeal; amending s. 408.831,
82F.S.; revising provisions relating to agency action to
83deny, suspend, or revoke a license, registration,
84certificate, or application; conforming cross-references;
85providing for priority of application in case of conflict;
86authorizing the agency to adjust annual licensure fees to
87provide biennial licensure fees; requesting interim
88assistance of the Division of Statutory Revision to
89prepare conforming legislation for the 2007 Regular
90Session; authorizing the agency to issue licenses for less
91than a specified time period and providing conditions
92therefor; providing an effective date.
93
94Be It Enacted by the Legislature of the State of Florida:
95
96     Section 1.  Part I of chapter 408, Florida Statutes,
97consisting of sections 408.031, 408.032, 408.033, 408.034,
98408.035, 408.036, 408.0361, 408.037, 408.038, 408.039, 408.040,
99408.041, 408.042, 408.043, 408.044, 408.045, 408.0455, 408.05,
100408.061, 408.062, 408.063, 408.07, 408.08, 408.09, 408.10,
101408.15, 408.16, 408.18, 408.185, 408.20, 408.301, 408.302,
102408.40, 408.50, 408.70, 408.7056, 408.7057, and 408.7071,
103Florida Statutes, is created and entitled "Health Facility and
104Services Planning."
105     Section 2.  Part II of chapter 408, Florida Statutes,
106consisting of sections 408.801, 408.802, 408.803, 408.804,
107408.805, 408.806, 408.807, 408.808, 408.809, 408.810, 408.811,
108408.812, 408.813, 408.814, 408.815, 408.816, 408.817, 408.818,
109408.819, 408.820, and 408.831, Florida Statutes, is created and
110entitled "Health Care Licensing: General Provisions."
111     Section 3.  Part III of chapter 408, Florida Statutes,
112consisting of sections 408.90, 408.901, 408.902, 408.903,
113408.904, 408.905, 408.906, 408.907, 408.908, and 408.909,
114Florida Statutes, is created and entitled "Health Insurance
115Access."
116     Section 4.  Part IV of chapter 408, Florida Statutes,
117consisting of sections 408.911, 408.913, 408.914, 408.915,
118408.916, 408.917, and 408.918, Florida Statutes, is created and
119entitled "Health and Human Services Eligibility Access System."
120     Section 5.  Sections 408.801, 408.802, 408.803, 408.804,
121408.805, 408.806, 408.807, 408.808, 408.809, 408.810, 408.811,
122408.812, 408.813, 408.814, 408.815, 408.816, 408.817, 408.818,
123408.819, and 408.820, Florida Statutes, are created to read:
124     408.801  Short title; purpose.--
125     (1)  This part may be cited as the "Health Care Licensing
126Procedures Act."
127     (2)  The Legislature finds that there is unnecessary
128duplication and variation in the requirements for licensure by
129the agency. It is the intent of the Legislature to provide a
130streamlined and consistent set of basic licensing requirements
131for all such providers in order to minimize confusion,
132standardize terminology, and include issues that are otherwise
133not adequately addressed in the Florida Statutes pertaining to
134specific providers.
135     408.802  Applicability.--The provisions of this part apply
136to the provision of services that require licensure as defined
137in this part and to the following entities licensed, registered,
138or certified by the agency, as described in chapters 112, 383,
139390, 394, 395, 400, 440, 483, and 765:
140     (1)  Laboratories authorized to perform testing under the
141Drug-Free Workplace Act, as provided under ss. 112.0455 and
142440.102.
143     (2)  Birth centers, as provided under chapter 383.
144     (3)  Abortion clinics, as provided under chapter 390.
145     (4)  Crisis stabilization units, as provided under parts I
146and IV of chapter 394.
147     (5)  Short-term residential treatment facilities, as
148provided under parts I and IV of chapter 394.
149     (6)  Residential treatment facilities, as provided under
150part IV of chapter 394.
151     (7)  Residential treatment centers for children and
152adolescents, as provided under part IV of chapter 394.
153     (8)  Hospitals, as provided under part I of chapter 395.
154     (9)  Ambulatory surgical centers, as provided under part I
155of chapter 395.
156     (10)  Mobile surgical facilities, as provided under part I
157of chapter 395.
158     (11)  Private review agents, as provided under part I of
159chapter 395.
160     (12)  Health care risk managers, as provided under part I
161of chapter 395.
162     (13)  Nursing homes, as provided under part II of chapter
163400.
164     (14)  Assisted living facilities, as provided under part
165III of chapter 400.
166     (15)  Home health agencies, as provided under part IV of
167chapter 400.
168     (16)  Nurse registries, as provided under part IV of
169chapter 400.
170     (17)  Companion services or homemaker services providers,
171as provided under part IV of chapter 400.
172     (18)  Adult day care centers, as provided under part V of
173chapter 400.
174     (19)  Hospices, as provided under part VI of chapter 400.
175     (20)  Adult family-care homes, as provided under part VII
176of chapter 400.
177     (21)  Homes for special services, as provided under part
178VIII of chapter 400.
179     (22)  Transitional living facilities, as provided under
180part VIII of chapter 400.
181     (23)  Prescribed pediatric extended care centers, as
182provided under part IX of chapter 400.
183     (24)  Home medical equipment providers, as provided under
184part X of chapter 400.
185     (25)  Intermediate care facilities for persons with
186developmental disabilities, as provided under part XI of chapter
187400.
188     (26)  Health care services pools, as provided under part
189XII of chapter 400.
190     (27)  Health care clinics, as provided under part XIII of
191chapter 400.
192     (28)  Clinical laboratories, as provided under part I of
193chapter 483.
194     (29)  Multiphasic health testing centers, as provided under
195part II of chapter 483.
196     (30)  Organ and tissue procurement agencies, as provided
197under chapter 765.
198     408.803  Definitions.--As used in this part, the term:
199     (1)  "Agency" means the Agency for Health Care
200Administration, which is the licensing agency under this part.
201     (2)  "Applicant" means an individual, corporation,
202partnership, firm, association, or governmental entity that
203submits an application for a license to the agency.
204     (3)  "Authorizing statute" means the statute authorizing
205the licensed operation of a provider listed in s. 408.802 and
206includes chapters 112, 383, 390, 394, 395, 400, 440, 483, and
207765.
208     (4)  "Certification" means certification as a Medicare or
209Medicaid provider of the services that require licensure, or
210certification pursuant to the federal Clinical Laboratory
211Improvement Amendment (CLIA).
212     (5)  "Change of ownership" means an event in which the
213licensee changes to a different legal entity or in which 45
214percent or more of the ownership, voting shares, or controlling
215interest in a corporation whose shares are not publicly traded
216on a recognized stock exchange is transferred or assigned,
217including the final transfer or assignment of multiple transfers
218or assignments over a 2-year period that cumulatively total 45
219percent or greater. A change solely in the management company or
220board of directors is not a change of ownership.
221     (6)  "Client" means any person receiving services from a
222provider listed in s. 408.802.
223     (7)  "Controlling interest" means:
224     (a)  The applicant or licensee;
225     (b)  A person or entity that serves as an officer of, is on
226the board of directors of, or has a 5-percent or greater
227ownership interest in the applicant or licensee; or
228     (c)  A person or entity that serves as an officer of, is on
229the board of directors of, or has a 5-percent or greater
230ownership interest in the management company or other entity,
231related or unrelated, with which the applicant or licensee
232contracts to manage the provider.
233
234The term does not include a voluntary board member.
235     (8)  "License" means any permit, registration, certificate,
236or license issued by the agency.
237     (9)  "Licensee" means an individual, corporation,
238partnership, firm, association, or governmental entity that is
239issued a permit, registration, certificate, or license by the
240agency. The licensee is legally responsible for all aspects of
241the provider operation.
242     (10)  "Moratorium" means a prohibition on the acceptance of
243new clients.
244     (11)  "Provider" means any activity, service, agency, or
245facility regulated by the agency and listed in s. 408.802.
246     (12)  "Services that require licensure" means those
247services, including residential services, that require a valid
248license before those services may be provided in accordance with
249authorizing statutes and agency rules.
250     (13)  "Voluntary board member" means a board member of a
251not-for-profit corporation or organization who serves solely in
252a voluntary capacity, does not receive any remuneration for his
253or her services on the board of directors, and has no financial
254interest in the corporation or organization. The agency shall
255recognize a person as a voluntary board member following
256submission of a statement to the agency by the board member and
257the not-for-profit corporation or organization that affirms that
258the board member conforms to this definition. The statement
259affirming the status of the board member must be submitted to
260the agency on a form provided by the agency.
261     408.804  License required; display.--
262     (1)  It is unlawful to provide services that require
263licensure, or operate or maintain a provider that offers or
264provides services that require licensure, without first
265obtaining from the agency a license authorizing the provision of
266such services or the operation or maintenance of such provider.
267     (2)  A license must be displayed in a conspicuous place
268readily visible to clients who enter at the address that appears
269on the license and is valid only in the hands of the licensee to
270whom it is issued and may not be sold, assigned, or otherwise
271transferred, voluntarily or involuntarily. The license is valid
272only for the licensee, provider, and location for which the
273license is issued.
274     408.805  Fees required; adjustments.--Unless otherwise
275limited by authorizing statutes, license fees must be reasonably
276calculated by the agency to cover its costs in carrying out its
277responsibilities under this part, authorizing statutes, and
278applicable rules, including the cost of licensure, inspection,
279and regulation of providers.
280     (1)  Licensure fees shall be adjusted to provide for
281biennial licensure under agency rules.
282     (2)  The agency shall annually adjust licensure fees,
283including fees paid per bed, by not more than the change in the
284Consumer Price Index based on the 12 months immediately
285preceding the increase.
286     (3)  An inspection fee must be paid as required in
287authorizing statutes.
288     (4)  Fees are nonrefundable.
289     (5)  When a change is reported that requires issuance of a
290license, a fee may be assessed. The fee must be based on the
291actual cost of processing and issuing the license.
292     (6)  A fee may be charged to a licensee requesting a
293duplicate license. The fee may not exceed the actual cost of
294duplication and postage.
295     (7)  Total fees collected may not exceed the cost of
296administering this part, authorizing statutes, and applicable
297rules.
298     408.806  License application process.--
299     (1)  An application for licensure must be made to the
300agency on forms furnished by the agency, submitted under oath,
301and accompanied by the appropriate fee in order to be accepted
302and considered timely. The application must contain information
303required by authorizing statutes and applicable rules and must
304include:
305     (a)  The name, address, and social security number of the
306applicant and each controlling interest if the applicant or
307controlling interest is an individual.
308     (b)  The name, address, and federal employer identification
309number or taxpayer identification number of the applicant and
310each controlling interest if the applicant or controlling
311interest is not an individual.
312     (c)  The name by which the provider is to be known.
313     (d)  The total number of beds or capacity requested, as
314applicable.
315     (e)  The name of the person or persons under whose
316management or supervision the provider will operate and the name
317of the administrator, if required.
318     (f)  If the applicant offers continuing care agreements as
319defined in chapter 651, proof shall be furnished that the
320applicant has obtained a certificate of authority as required
321for operation under chapter 651.
322     (g)  Other information, including satisfactory inspection
323results, that the agency finds necessary to determine the
324ability of the applicant to carry out its responsibilities under
325this part, authorizing statutes, and applicable rules.
326     (2)(a)  The applicant for a renewal license must submit an
327application that must be received by the agency at least 60 days
328prior to the expiration of the current license. If the renewal
329application and fee are received prior to the license expiration
330date, the license shall not be deemed to have expired if the
331license expiration date occurs during the agency's review of the
332renewal application.
333     (b)  The applicant for initial licensure due to a change of
334ownership must submit an application that must be received by
335the agency at least 60 days prior to the date of change of
336ownership.
337     (c)  For any other application or request, the applicant
338must submit an application or request that must be received by
339the agency at least 60 days prior to the requested effective
340date, unless otherwise specified in authorizing statutes or
341applicable rules.
342     (d)  The agency shall notify the licensee by mail or
343electronically at least 90 days prior to the expiration of a
344license that a renewal license is necessary to continue
345operation. The failure to timely submit a renewal application
346and license fee shall result in a $50 per day late fee charged
347to the licensee by the agency; however, the aggregate amount of
348the late fee may not exceed 50 percent of the licensure fee or
349$500, whichever is less. If an application is received after the
350required filing date and exhibits a hand-canceled postmark
351obtained from a United States post office dated on or before the
352required filing date, no fine will be levied.
353     (3)(a)  Upon receipt of an application for a license, the
354agency shall examine the application and, within 30 days after
355receipt, notify the applicant in writing of any apparent errors
356or omissions and request any additional information required.
357     (b)  Requested information omitted from an application for
358licensure, license renewal, or change of ownership, other than
359an inspection, must be filed with the agency within 21 days
360after the agency's request for omitted information or the
361application shall be deemed incomplete and shall be withdrawn
362from further consideration and the fees shall be forfeited.
363     (c)  Within 60 days after the receipt of a complete
364application, the agency shall approve or deny the application.
365     (4)(a)  Licensees subject to the provisions of this part
366shall be issued biennial licenses unless conditions of the
367license category specify a shorter license period.
368     (b)  Each license issued shall indicate the name of the
369licensee, the type of provider or service that the licensee is
370required or authorized to operate or offer, the date the license
371is effective, the expiration date of the license, the maximum
372capacity of the licensed premises, if applicable, and any other
373information required or deemed necessary by the agency.
374     (5)  In accordance with authorizing statutes and applicable
375rules, proof of compliance with s. 408.810 must be submitted
376with an application for licensure.
377     (6)  The agency may not issue an initial license to a
378health care provider subject to the certificate-of-need
379provisions in part I of this chapter if the licensee has not
380been issued a certificate of need or certificate-of-need
381exemption, when applicable. Failure to apply for the renewal of
382a license prior to the expiration date renders the license void.
383     (7)(a)  An applicant must demonstrate compliance with the
384requirements in this part, authorizing statutes, and applicable
385rules during an inspection pursuant to s. 408.811, as required
386by authorizing statutes.
387     (b)  An initial inspection is not required for companion
388services or homemaker services providers, as provided under part
389IV of chapter 400, or for health care services pools, as
390provided under part XII of chapter 400.
391     (c)  If an inspection is required by the authorizing
392statute for a license application other than an initial
393application, the inspection must be unannounced. This paragraph
394does not apply to inspections required pursuant to ss. 383.324,
395395.0161(4), and 483.061(2).
396     (d)  If a provider is not available when an inspection is
397attempted, the application shall be denied.
398     (8)  The agency may establish procedures for the electronic
399notification and submission of required information, including,
400but not limited to:
401     (a)  Licensure applications.
402     (b)  Required signatures.
403     (c)  Payment of fees.
404     (d)  Notarization of applications.
405
406Requirements for electronic submission of any documents required
407by this part or authorizing statutes may be established by rule.
408     408.807  Change of ownership.--Whenever a change of
409ownership occurs:
410     (1)  The transferor shall notify the agency in writing at
411least 60 days before the anticipated date of the change of
412ownership.
413     (2)  The transferee shall make application to the agency
414for a license within the timeframes required in s. 408.806.
415     (3)  The transferor shall be responsible and liable for:
416     (a)  The lawful operation of the provider and the welfare
417of the clients served until the date the transferee is licensed
418by the agency.
419     (b)  Any and all penalties imposed against the transferor
420for violations occurring before the date of change of ownership.
421     (4)  Any restriction on licensure, including a conditional
422license existing at the time of a change of ownership, shall
423remain in effect until the agency determines that the grounds
424for the restriction are corrected.
425     (5)  The transferee shall maintain records of the
426transferor as required in this part, authorizing statutes, and
427applicable rules, including:
428     (a)  All client records.
429     (b)  Inspection reports.
430     (c)  All records required to be maintained pursuant to s.
431409.913, if applicable.
432     408.808  License categories.--
433     (1)  STANDARD LICENSE.--A standard license may be issued to
434an applicant at the time of initial licensure, license renewal,
435or change of ownership. A standard license shall be issued when
436the applicant is in compliance with all statutory requirements
437and agency rules. Unless sooner revoked, a standard license
438expires 2 years after the date of issue.
439     (2)  PROVISIONAL LICENSE.--A provisional license may be
440issued to an applicant pursuant to s. 408.809(3). An applicant
441against whom a proceeding denying or revoking a license is
442pending at the time of license renewal may be issued a
443provisional license effective until final action not subject to
444further appeal.
445     (3)  INACTIVE LICENSE.--An inactive license may be issued
446to a health care provider subject to the certificate-of-need
447provisions in part I of this chapter when the provider is
448currently licensed, does not have a provisional license, and
449will be temporarily unable to provide services but is reasonably
450expected to resume services within 12 months. Such designation
451may be made for a period not to exceed 12 months but may be
452renewed by the agency for up to 12 additional months upon
453demonstration by the licensee of the provider's progress toward
454reopening. A request by a licensee for an inactive license or to
455extend the previously approved inactive period must be submitted
456to the agency and must include a written justification for the
457inactive license with the beginning and ending dates of
458inactivity specified, a plan for the transfer of any clients to
459other providers, and the appropriate licensure fees. The agency
460may not accept a request that is submitted after initiating
461closure, after any suspension of service, or after notifying
462clients of closure or suspension of service, unless the action
463is a result of a disaster at the licensed premises. For the
464purposes of this section, the term "disaster" means a sudden
465emergency occurrence beyond the control of the licensee, whether
466natural, technological, or manmade, which renders the provider
467inoperable at the premises. Upon agency approval, the provider
468shall notify clients of any necessary discharge or transfer as
469required by authorizing statutes or applicable rules. The
470beginning of the inactive license period is the date the
471provider ceases operations. The end of the inactive license
472period shall become the license expiration date. All licensure
473fees must be current, must be paid in full, and may be prorated.
474Reactivation of an inactive license requires the approval of a
475renewal application, including payment of licensure fees and
476agency inspections indicating compliance with all requirements
477of this part, authorizing statutes, and applicable rules.
478     (4)  OTHER LICENSES.--Other types of license categories may
479be issued pursuant to authorizing statutes or applicable rules.
480     408.809  Background screening; prohibited offenses.--
481     (1)  Level 2 background screening pursuant to chapter 435
482must be conducted through the agency on each of the following
483persons, who shall be considered an employee for the purposes of
484conducting screening under chapter 435:
485     (a)  The licensee, if an individual.
486     (b)  The administrator or a similarly titled person who is
487responsible for the day-to-day operation of the provider.
488     (c)  The financial officer or similarly titled individual
489who is responsible for the financial operation of the licensee
490or provider.
491     (d)  Any person who is a controlling interest if the agency
492has reason to believe that such person has been convicted of any
493offense prohibited by s. 435.04. For each controlling interest
494who has been convicted of any such offense, the licensee shall
495submit to the agency a description and explanation of the
496conviction at the time of license application.
497     (2)  Proof of compliance with level 2 screening standards
498submitted within the previous 5 years to meet any provider or
499professional licensure requirements of the agency, the
500Department of Health, the Agency for Persons with Disabilities,
501or the Department of Children and Family Services satisfies the
502requirements of this section, provided that such proof is
503accompanied, under penalty of perjury, by an affidavit of
504compliance with the provisions of chapter 435 using forms
505provided by the agency. Proof of compliance with the background
506screening requirements of the Department of Financial Services
507submitted within the previous 5 years for an applicant for a
508certificate of authority to operate a continuing care retirement
509community under chapter 651 satisfies the Department of Law
510Enforcement and Federal Bureau of Investigation portions of a
511level 2 background check.
512     (3)  A provisional license may be granted to an applicant
513when each individual required by this section to undergo
514background screening has met the standards for the Department of
515Law Enforcement background check but the agency has not yet
516received background screening results from the Federal Bureau of
517Investigation. A standard license may be granted to the licensee
518upon the agency's receipt of a report of the results of the
519Federal Bureau of Investigation background screening for each
520individual required by this section to undergo background
521screening that confirms that all standards have been met or upon
522the granting of an exemption from disqualification by the agency
523as set forth in chapter 435.
524     (4)  When a person is newly employed in a capacity that
525requires screening under this section, the licensee must notify
526the agency of the change within the time period specified in the
527authorizing statute or rules and must submit to the agency
528information necessary to conduct level 2 screening or provide
529evidence of compliance with background screening requirements of
530this section. The person may serve in his or her capacity
531pending the agency's receipt of the report from the Federal
532Bureau of Investigation if he or she has met the standards for
533the Department of Law Enforcement background check. However, the
534person may not continue to serve in his or her capacity if the
535report indicates any violation of background screening standards
536unless an exemption from disqualification has been granted by
537the agency as set forth in chapter 435.
538     (5)  Background screening is not required to obtain a
539certificate of exemption issued under s. 483.106.
540     408.810  Minimum licensure requirements.--In addition to
541the licensure requirements specified in this part, authorizing
542statutes, and applicable rules, each applicant and licensee must
543comply with the requirements of this section in order to obtain
544and maintain a license.
545     (1)  An applicant for licensure must comply with the
546background screening requirements of s. 408.809.
547     (2)  An applicant for licensure must provide a description
548and explanation of any exclusions, suspensions, or terminations
549of the applicant from the Medicare, Medicaid, or federal
550Clinical Laboratory Improvement Amendment (CLIA) programs.
551     (3)  Unless otherwise specified in this part, authorizing
552statutes, or applicable rules, any information required to be
553reported to the agency must be submitted within 21 calendar days
554after the report period or effective date of the information.
555     (4)  Whenever a licensee discontinues operation of a
556provider:
557     (a)  The licensee must inform the agency not less than 30
558days prior to the discontinuance of operation and inform clients
559of such discontinuance as required by authorizing statutes.
560Immediately upon discontinuance of operation by a provider, the
561licensee shall surrender the license to the agency and the
562license shall be canceled.
563     (b)  The licensee shall remain responsible for retaining
564and appropriately distributing all records within the timeframes
565prescribed in authorizing statutes and applicable rules. In
566addition, the licensee or, in the event of death or dissolution
567of a licensee, the estate or agent of the licensee shall:
568     1.  Make arrangements to forward records for each client to
569one of the following, based upon the client's choice: the client
570or the client's legal representative, the client's attending
571physician, or the health care provider where the client
572currently receives services; or
573     2.  Cause a notice to be published in the newspaper of
574greatest general circulation in the county in which the provider
575was located that advises clients of the discontinuance of the
576provider operation. The notice must inform clients that they may
577obtain copies of their records and specify the name, address,
578and telephone number of the person from whom the copies of
579records may be obtained. The notice must appear at least once a
580week for 4 consecutive weeks.
581     (5)(a)  On or before the first day services are provided to
582a client, a licensee must inform the client and his or her
583immediate family or representative, if appropriate, of the right
584to report:
585     1.  Complaints. The statewide toll-free telephone number
586for reporting complaints to the agency must be provided to
587clients in a manner that is clearly legible and must include the
588words: "To report a complaint regarding the services you
589receive, please call toll-free (phone number)."
590     2.  Abusive, neglectful, or exploitative practices. The
591statewide toll-free telephone number for the central abuse
592hotline must be provided to clients in a manner that is clearly
593legible and must include the words: "To report abuse, neglect,
594or exploitation, please call toll-free (phone number)." The
595agency shall publish a minimum of a 90-day advance notice of a
596change in the toll-free telephone numbers.
597     (b)  Each licensee shall establish appropriate policies and
598procedures for providing such notice to clients.
599     (6)  An applicant must provide the agency with proof of the
600applicant's legal right to occupy the property before a license
601may be issued. Proof may include, but need not be limited to,
602copies of warranty deeds, lease or rental agreements, contracts
603for deeds, quitclaim deeds, or other such documentation.
604     (7)  If proof of insurance is required by the authorizing
605statute, that insurance must be in compliance with chapter 624,
606chapter 626, chapter 627, or chapter 628 and with agency rules.
607     (8)  Upon application for initial licensure or change of
608ownership licensure, the applicant shall furnish satisfactory
609proof of the applicant's financial ability to operate in
610accordance with the requirements of this part, authorizing
611statutes, and applicable rules. The agency shall establish
612standards for this purpose, including information concerning the
613applicant's controlling interests. The agency shall also
614establish documentation requirements, to be completed by each
615applicant, that show anticipated provider revenues and
616expenditures, the basis for financing the anticipated cash-flow
617requirements of the provider, and an applicant's access to
618contingency financing. A current certificate of authority,
619pursuant to chapter 651, may be provided as proof of financial
620ability to operate. The agency may require a licensee to provide
621proof of financial ability to operate at any time if there is
622evidence of financial instability, including, but not limited
623to, unpaid expenses necessary for the basic operations of the
624provider.
625     (9)  A controlling interest may not withhold from the
626agency any evidence of financial instability, including, but not
627limited to, checks returned due to insufficient funds,
628delinquent accounts, nonpayment of withholding taxes, unpaid
629utility expenses, nonpayment for essential services, or adverse
630court action concerning the financial viability of the provider
631or any other provider licensed under this part that is under the
632control of the controlling interest. Any person who violates
633this subsection commits a misdemeanor of the second degree,
634punishable as provided in s. 775.082 or s. 775.083. Each day of
635continuing violation is a separate offense.
636     (10)  The agency may not issue a license to a health care
637provider subject to the certificate-of-need provisions in part I
638of this chapter if the health care provider has not been issued
639a certificate of need or an exemption. Upon initial licensure of
640any such provider, the authorization contained in the
641certificate of need shall be considered fully implemented and
642merged into the license and shall have no force and effect upon
643termination of the license for any reason.
644     408.811  Right of inspection; copies; inspection reports.--
645     (1)  An authorized officer or employee of the agency may
646make or cause to be made any inspection or investigation deemed
647necessary by the agency to determine the state of compliance
648with this part, authorizing statutes, and applicable rules. The
649right of inspection extends to any business that the agency has
650reason to believe is being operated as a provider without a
651license, but inspection of any business suspected of being
652operated without the appropriate license may not be made without
653the permission of the owner or person in charge unless a warrant
654is first obtained from a circuit court. Any application for a
655license issued under this part, authorizing statutes, or
656applicable rules constitutes permission for an appropriate
657inspection to verify the information submitted on or in
658connection with the application.
659     (a)  All inspections shall be unannounced, except as
660specified in s. 408.806.
661     (b)  Inspections for relicensure shall be conducted
662biennially unless otherwise specified by authorizing statutes or
663applicable rules.
664     (2)  Inspections conducted in conjunction with
665certification may be accepted in lieu of a complete licensure
666inspection. However, a licensure inspection may also be
667conducted to review any licensure requirements that are not also
668requirements for certification.
669     (3)  The agency shall have access to and the licensee shall
670provide copies of all provider records required during an
671inspection at no cost to the agency.
672     (4)(a)  Each licensee shall maintain as public information,
673available upon request, records of all inspection reports
674pertaining to that provider that have been filed by the agency
675unless those reports are exempt from or contain information that
676is exempt from s. 119.07(1) and s. 24(a), Art. I of the State
677Constitution or is otherwise made confidential by law. Effective
678October 1, 2006, copies of such reports shall be retained in the
679records of the provider for at least 3 years following the date
680the reports are filed and issued, regardless of a change of
681ownership.
682     (b)  A licensee shall, upon the request of any person who
683has completed a written application with intent to be admitted
684by such provider, any person who is a client of such provider,
685or any relative, spouse, or guardian of any such person, furnish
686to the requester a copy of the last inspection report pertaining
687to the licensed provider that was issued by the agency or by an
688accrediting organization if such report is used in lieu of a
689licensure inspection.
690     408.812  Unlicensed activity.--
691     (1)  A person or entity may not offer or advertise services
692that require licensure as defined by this part, authorizing
693statutes, or applicable rules to the public without obtaining a
694valid license from the agency. A licenseholder may not advertise
695or hold out to the public that he or she holds a license for
696other than that for which he or she actually holds the license.
697     (2)  The operation or maintenance of an unlicensed provider
698or the performance of any services that require licensure
699without proper licensure is a violation of this part and
700authorizing statutes. Unlicensed activity constitutes harm that
701materially affects the health, safety, and welfare of clients.
702The agency or any state attorney may, in addition to other
703remedies provided in this part, bring an action for an
704injunction to restrain such violation, or to enjoin the future
705operation or maintenance of the unlicensed provider or the
706performance of any services in violation of this part and
707authorizing statutes, until compliance with this part,
708authorizing statutes, and agency rules has been demonstrated to
709the satisfaction of the agency.
710     (3)  It is unlawful for any person or entity to own,
711operate, or maintain an unlicensed provider. If after receiving
712notification from the agency, such person or entity fails to
713cease operation and apply for a license under this part and
714authorizing statutes, the person or entity shall be subject to
715penalties as prescribed by authorizing statutes and applicable
716rules. Each day of continued operation is a separate offense.
717     (4)  Any person or entity that fails to cease operation
718after agency notification may be fined $1,000 for each day of
719noncompliance.
720     (5)  When a controlling interest or licensee has an
721interest in more than one provider and fails to license a
722provider rendering services that require licensure, the agency
723may revoke all licenses and impose actions under s. 408.814 and
724a fine of $1,000 per day, unless otherwise specified by
725authorizing statutes, against each licensee until such time as
726the appropriate license is obtained for the unlicensed
727operation.
728     (6)  In addition to granting injunctive relief pursuant to
729subsection (2), if the agency determines that a person or entity
730is operating or maintaining a provider without obtaining a
731license and determines that a condition exists that poses a
732threat to the health, safety, or welfare of a client of the
733provider, the person or entity is subject to the same actions
734and fines imposed against a licensee as specified in this part,
735authorizing statutes, and agency rules.
736     (7)  Any person aware of the operation of an unlicensed
737provider must report that provider to the agency.
738     408.813  Administrative fines.--As a penalty for any
739violation of this part, authorizing statutes, or applicable
740rules, the agency may impose an administrative fine. Unless the
741amount or aggregate limitation of the fine is prescribed by
742authorizing statutes or applicable rules, the agency may
743establish criteria by rule for the amount or aggregate
744limitation of administrative fines applicable to this part,
745authorizing statutes, and applicable rules. Each day of
746violation constitutes a separate violation and is subject to a
747separate fine. For fines imposed by final order of the agency
748and not subject to further appeal, the violator shall pay the
749fine plus interest at the rate specified in s. 55.03 for each
750day beyond the date set by the agency for payment of the fine.
751     408.814  Moratorium; emergency suspension.--
752     (1)  The agency may impose an immediate moratorium or
753emergency suspension as defined in s. 120.60 on any provider if
754the agency determines that any condition related to the provider
755or licensee presents a threat to the health, safety, or welfare
756of a client.
757     (2)  A provider or licensee, the license of which is denied
758or revoked, may be subject to immediate imposition of a
759moratorium or emergency suspension to run concurrently with
760licensure denial, revocation, or injunction.
761     (3)  A moratorium or emergency suspension remains in effect
762after a change of ownership, unless the agency has determined
763that the conditions that created the moratorium, emergency
764suspension, or denial of licensure have been corrected.
765     (4)  When a moratorium or emergency suspension is placed on
766a provider or licensee, notice of the action shall be posted and
767visible to the public at the location of the provider until the
768action is lifted.
769     408.815  License or application denial; revocation.--
770     (1)  In addition to the grounds provided in authorizing
771statutes, grounds that may be used by the agency for denying and
772revoking a license or change of ownership application include
773any of the following actions by a controlling interest:
774     (a)  False representation of a material fact in the license
775application or omission of any material fact from the
776application.
777     (b)  An intentional or negligent act materially affecting
778the health or safety of a client of the provider.
779     (c)  A violation of this part, authorizing statutes, or
780applicable rules.
781     (d)  A demonstrated pattern of deficient performance.
782     (e)  The applicant, licensee, or controlling interest has
783been or is currently excluded, suspended, or terminated from
784participation in the state Medicaid program, the Medicaid
785program of any other state, or the Medicare program.
786     (2)  If a licensee lawfully continues to operate while a
787denial or revocation is pending in litigation, the licensee must
788continue to meet all other requirements of this part,
789authorizing statutes, and applicable rules and must file
790subsequent renewal applications for licensure and pay all
791licensure fees. The provisions of ss. 120.60(1) and
792408.806(3)(c) shall not apply to renewal applications filed
793during the time period in which the litigation of the denial or
794revocation is pending until that litigation is final.
795     (3)  An action under s. 408.814 or denial of the license of
796the transferor may be grounds for denial of a change of
797ownership application of the transferee.
798     408.816  Injunctions.--
799     (1)  In addition to the other powers provided by this part,
800authorizing statutes, and applicable rules, the agency may
801institute injunction proceedings in a court of competent
802jurisdiction to:
803     (a)  Restrain or prevent the establishment or operation of
804a provider that does not have a license or is in violation of
805any provision of this part, authorizing statutes, or applicable
806rules. The agency may also institute injunction proceedings in a
807court of competent jurisdiction when a violation of this part,
808authorizing statutes, or applicable rules constitutes an
809emergency affecting the immediate health and safety of a client.
810     (b)  Enforce the provisions of this part, authorizing
811statutes, or any minimum standard, rule, or order issued or
812entered into pursuant thereto when the attempt by the agency to
813correct a violation through administrative sanctions has failed
814or when the violation materially affects the health, safety, or
815welfare of clients or involves any operation of an unlicensed
816provider.
817     (c)  Terminate the operation of a provider when a violation
818of any provision of this part, authorizing statutes, or any
819standard or rule adopted pursuant thereto exists that materially
820affects the health, safety, or welfare of a client.
821
822Such injunctive relief may be temporary or permanent.
823     (2)  If action is necessary to protect clients of providers
824from immediate, life-threatening situations, the court may allow
825a temporary injunction without bond upon proper proofs being
826made. If it appears by competent evidence or a sworn,
827substantiated affidavit that a temporary injunction should be
828issued, the court, pending the determination on final hearing,
829shall enjoin the operation of the provider.
830     408.817  Administrative proceedings.--Administrative
831proceedings challenging agency licensure enforcement action
832shall be reviewed on the basis of the facts and conditions that
833resulted in the agency action.
834     408.818  Health Care Trust Fund.--Unless otherwise
835prescribed by authorizing statutes, all fees and fines collected
836under this part, authorizing statutes, and applicable rules
837shall be deposited into the Health Care Trust Fund, created in
838s. 408.16, and used to pay the costs of the agency in
839administering the provider program paying the fees or fines.
840     408.819  Rules.--The agency is authorized to adopt rules as
841necessary to administer this part. Any licensed provider that is
842in operation at the time of adoption of any applicable rule
843under this part or authorizing statutes shall be given a
844reasonable time under the particular circumstances, not to
845exceed 6 months after the date of such adoption, within which to
846comply with such rule, unless otherwise specified by rule.
847     408.820  Exemptions.--Except as prescribed in authorizing
848statutes, the following exemptions shall apply to specified
849requirements of this part:
850     (1)  Laboratories authorized to perform testing under the
851Drug-Free Workplace Act, as provided under ss. 112.0455 and
852440.102, are exempt from s. 408.810(5)-(10).
853     (2)  Birth centers, as provided under chapter 383, are
854exempt from s. 408.810(7)-(10).
855     (3)  Abortion clinics, as provided under chapter 390, are
856exempt from s. 408.810(7)-(10).
857     (4)  Crisis stabilization units, as provided under parts I
858and IV of chapter 394, are exempt from s. 408.810(8)-(10).
859     (5)  Short-term residential treatment facilities, as
860provided under parts I and IV of chapter 394, are exempt from s.
861408.810(8)-(10).
862     (6)  Residential treatment facilities, as provided under
863part IV of chapter 394, are exempt from s. 408.810(8)-(10).
864     (7)  Residential treatment centers for children and
865adolescents, as provided under part IV of chapter 394, are
866exempt from s. 408.810(8)-(10).
867     (8)  Hospitals, as provided under part I of chapter 395,
868are exempt from s. 408.810(7)-(9).
869     (9)  Ambulatory surgical centers, as provided under part I
870of chapter 395, are exempt from s. 408.810(7)-(10).
871     (10)  Mobile surgical facilities, as provided under part I
872of chapter 395, are exempt from s. 408.810(7)-(10).
873     (11)  Private review agents, as provided under part I of
874chapter 395, are exempt from ss. 408.806(7), 408.810, and
875408.811.
876     (12)  Health care risk managers, as provided under part I
877of chapter 395, are exempt from ss. 408.806(7), 408.810, and
878408.811.
879     (13)  Nursing homes, as provided under part II of chapter
880400, are exempt from s. 408.810(7).
881     (14)  Assisted living facilities, as provided under part
882III of chapter 400, are exempt from s. 408.810(10).
883     (15)  Home health agencies, as provided under part IV of
884chapter 400, are exempt from s. 408.810(10).
885     (16)  Nurse registries, as provided under part IV of
886chapter 400, are exempt from s. 408.810(6) and (10).
887     (17)  Companion services or homemaker services providers,
888as provided under part IV of chapter 400, are exempt from s.
889408.810(6)-(10).
890     (18)  Adult day care centers, as provided under part V of
891chapter 400, are exempt from s. 408.810(10).
892     (19)  Adult family-care homes, as provided under part VII
893of chapter 400, are exempt from s. 408.810(7)-(10).
894     (20)  Homes for special services, as provided under part
895VIII of chapter 400, are exempt from s. 408.810(7)-(10).
896     (21)  Transitional living facilities, as provided under
897part VIII of chapter 400, are exempt from s. 408.810(7)-(10).
898     (22)  Prescribed pediatric extended care centers, as
899provided under part IX of chapter 400, are exempt from s.
900408.810(10).
901     (23)  Home medical equipment providers, as provided under
902part X of chapter 400, are exempt from s. 408.810(10).
903     (24)  Intermediate care facilities for persons with
904developmental disabilities, as provided under part XI of chapter
905400, are exempt from s. 408.810(7).
906     (25)  Health care services pools, as provided under part
907XII of chapter 400, are exempt from s. 408.810(6)-(10).
908     (26)  Health care clinics, as provided under part XIII of
909chapter 400, are exempt from ss. 408.809 and 408.810(1), (6),
910(7), and (10).
911     (27)  Clinical laboratories, as provided under part I of
912chapter 483, are exempt from s. 408.810(5)-(10).
913     (28)  Multiphasic health testing centers, as provided under
914part II of chapter 483, are exempt from s. 408.810(5)-(10).
915     (29)  Organ and tissue procurement agencies, as provided
916under chapter 765, are exempt from s. 408.810(5)-(10).
917     Section 6.  Paragraph (b) of subsection (1) of section
918400.801, Florida Statutes, is amended to read:
919     400.801  Homes for special services.--
920     (1)  As used in this section, the term:
921     (b)  "Home for special services" means a site licensed by
922the agency prior to January 1, 2006, where specialized health
923care services are provided, including personal and custodial
924care, but not continuous nursing services.
925     Section 7.  Paragraphs (e) and (i) of subsection (4) of
926section 400.9905, Florida Statutes, are amended, and paragraph
927(k) is added to that subsection, to read:
928     400.9905  Definitions.--
929     (4)  "Clinic" means an entity at which health care services
930are provided to individuals and which tenders charges for
931reimbursement for such services, including a mobile clinic and a
932portable equipment provider. For purposes of this part, the term
933does not include and the licensure requirements of this part do
934not apply to:
935     (e)  An entity that is exempt from federal taxation under
93626 U.S.C. s. 501(c)(3) or s. 501(c)(4), an employee stock
937ownership plan under 26 U.S.C. s. 409 that has a board of
938trustees not less than two-thirds of which are Florida-licensed
939health care practitioners and provides only physical therapy
940services under physician orders, any community college or
941university clinic, and any entity owned or operated by the
942federal or state government, including agencies, subdivisions,
943or municipalities thereof.
944     (i)  Entities that provide only oncology or radiation
945therapy services by physicians licensed under chapter 458 or
946chapter 459 or entities that provide oncology or radiation
947therapy services by physicians licensed under chapter 458 or
948chapter 459 which are owned by a corporation whose shares are
949publicly traded on a recognized stock exchange.
950     (k)  Entities that provide licensed practitioners to staff
951emergency departments or to deliver anesthesia services in
952facilities licensed under chapter 395 and that derive at least
95390 percent of their gross annual revenues from the provision of
954such services. Entities claiming an exemption from licensure
955under this paragraph must provide documentation demonstrating
956compliance.
957     Section 8.  Paragraphs (f) through (s) of subsection (3) of
958section 408.036, Florida Statutes, are redesignated as
959paragraphs (g) through (t), respectively, and a new paragraph
960(f) is added to that subsection to read:
961     408.036  Projects subject to review; exemptions.--
962     (3)  EXEMPTIONS.--Upon request, the following projects are
963subject to exemption from the provisions of subsection (1):
964     (f)  For the creation of a single nursing home within a
965district by combining licensed beds from two or more licensed
966nursing homes within such district, regardless of subdistrict
967boundaries, if 50 percent of the beds in the created nursing
968home are transferred from the only nursing home in a county and
969its utilization data demonstrate that it had an occupancy rate
970of less than 75 percent for the 12-month period ending 90 days
971before the request for the exemption. This paragraph is repealed
972upon the expiration of the moratorium established in s.
973651.1185(1).
974     Section 9.  Subsections (1) and (3) of section 408.831,
975Florida Statutes, are amended to read:
976     408.831  Denial, suspension, or revocation of a license,
977registration, certificate, or application.--
978     (1)  In addition to any other remedies provided by law, the
979agency may deny each application or suspend or revoke each
980license, registration, or certificate of entities regulated or
981licensed by it:
982     (a)  If the applicant, licensee, or a licensee subject to
983this part which shares a common controlling interest with the
984applicant registrant, or certificateholder, or, in the case of a
985corporation, partnership, or other business entity, if any
986officer, director, agent, or managing employee of that business
987entity or any affiliated person, partner, or shareholder having
988an ownership interest equal to 5 percent or greater in that
989business entity, has failed to pay all outstanding fines, liens,
990or overpayments assessed by final order of the agency or final
991order of the Centers for Medicare and Medicaid Services, not
992subject to further appeal, unless a repayment plan is approved
993by the agency; or
994     (b)  For failure to comply with any repayment plan.
995     (3)  This section provides standards of enforcement
996applicable to all entities licensed or regulated by the Agency
997for Health Care Administration. This section controls over any
998conflicting provisions of chapters 39, 381, 383, 390, 391, 393,
999394, 395, 400, 408, 468, 483, and 765 641 or rules adopted
1000pursuant to those chapters.
1001     Section 10.  In case of conflict between the provisions of
1002part II of chapter 408, Florida Statutes, and the authorizing
1003statutes governing the licensure of health care providers by the
1004Agency for Health Care Administration found in s. 112.0455 and
1005chapters 383, 390, 394, 395, 400, 440, 483, and 765, Florida
1006Statutes, the provisions of part II of chapter 408, Florida
1007Statutes, shall prevail.
1008     Section 11.  All provisions that apply to the entities
1009specified in s. 408.802, Florida Statutes, as created by this
1010act, in effect on October 1, 2006, that provide for annual
1011licensure fees are hereby adjusted to provide for biennial
1012licensure fees with a corresponding doubling of the amount.
1013     Section 12.  The Legislature recognizes that there is a
1014need to conform the Florida Statutes to the policy decisions
1015reflected in this act and that there may be a need to resolve
1016apparent conflicts between any changes or additions to the
1017authorizing statutes, as defined in s. 408.803, Florida
1018Statutes, or any other legislation that has been or may be
1019enacted during 2006 and this chapter 408, Florida Statutes, as
1020amended by this act. Therefore, in the interim between this act
1021becoming a law and the 2007 Regular Session of the Legislature
1022or an earlier special session addressing this issue, the
1023Division of Statutory Revision shall provide the relevant
1024substantive committees of the Senate and the House of
1025Representatives with assistance, upon request, to enable such
1026committees to prepare draft legislation to conform the Florida
1027Statutes and any legislation enacted during 2006 to the
1028provisions of this act.
1029     Section 13.  For the purpose of staggering license
1030expiration dates, the Agency for Health Care Administration may
1031issue a license for less than a 2-year period to those providers
1032making the transition from annual to biennial licensure as
1033authorized in this act. The agency shall charge a prorated
1034licensure fee for this shortened period. This authority shall
1035expire September 30, 2008.
1036     Section 14.  This act shall take effect October 1, 2006.


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