Senate Bill sb0666e1

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    SB 666                                         First Engrossed



  1                      A bill to be entitled

  2         An act relating to fiscal intermediary services

  3         organizations; amending s. 641.316, F.S.;

  4         redefining the term "fiscal intermediary

  5         services organization" for purposes of

  6         provisions governing organizations that manage

  7         the business affairs of health care

  8         professionals; providing an exception from the

  9         requirement to obtain a bond; revising

10         compliance requirements for registration as a

11         fiscal intermediary services organization;

12         providing an effective date.

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14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  Paragraph (b) of subsection (2), subsection

17  (4), and subsection (6) of section 641.316, Florida Statutes,

18  are amended to read:

19         641.316  Fiscal intermediary services.--

20         (2)

21         (b)  The term "fiscal intermediary services

22  organization" means a person or entity that which performs

23  fiduciary or fiscal intermediary services to health care

24  professionals who contract with health maintenance

25  organizations other than a fiscal intermediary services

26  organization owned, operated, or controlled by a hospital

27  licensed under chapter 395, an insurer licensed under chapter

28  624, a third-party administrator licensed under chapter 626, a

29  prepaid limited health service organization licensed under

30  chapter 636, a health maintenance organization licensed under

31  this chapter, or a physician group practice practices as


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    SB 666                                         First Engrossed



 1  defined in s. 456.053(3)(h) which provides services under the

 2  scope of licenses of the members of the group practice.

 3         (4)  A fiscal intermediary services organization, as

 4  described in subsection (3), shall secure and maintain a

 5  surety bond on file with the office, naming the intermediary

 6  as principal. The bond must be obtained from a company

 7  authorized to write surety insurance in the state, and the

 8  office shall be obligee on behalf of itself and third parties.

 9  The penal sum of the bond may not be less than 5 percent of

10  the funds handled by the intermediary in connection with its

11  fiscal and fiduciary services during the prior year or

12  $250,000, whichever is less. The minimum bond amount must be

13  $10,000. The condition of the bond must be that the

14  intermediary shall register with the office and shall not

15  misappropriate funds within its control or custody as a fiscal

16  intermediary or fiduciary. The aggregate liability of the

17  surety for any and all breaches of the conditions of the bond

18  may not exceed the penal sum of the bond. The bond must be

19  continuous in form, must be renewed annually by a continuation

20  certificate, and may be terminated by the surety upon its

21  giving 30 days' written notice of termination to the office.

22  This subsection does not apply to a fiscal intermediary

23  services organization that is owned, operated, or controlled

24  by a third-party administrator holding a certificate of

25  authority under part VII of chapter 626.

26         (6)  Any fiscal intermediary services organization,

27  other than a fiscal intermediary services organization owned,

28  operated, or controlled by a hospital licensed under chapter

29  395, an insurer licensed under chapter 624, a third-party

30  administrator licensed under chapter 626, a prepaid limited

31  health service organization licensed under chapter 636, a


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    SB 666                                         First Engrossed



 1  health maintenance organization licensed under this chapter, a

 2  not-for-profit corporation that provides health care services

 3  directly to patients through employed, salaried physicians and

 4  that is affiliated with an accredited hospital licensed in

 5  this state, or a physician group practice practices as defined

 6  in s. 456.053(3)(h) which provides services under the scope of

 7  licenses of the members of the group practice, must register

 8  with the office and meet the requirements of this section. In

 9  order to register as a fiscal intermediary services

10  organization, the organization must comply with ss.

11  641.21(1)(c), and (d), and (j), and 641.22(6), and 641.27. The

12  fiscal intermediary services organization must also comply

13  with the provisions of ss. 641.3155, 641.3156, and 641.51(4).

14  Should the office determine that the fiscal intermediary

15  services organization does not meet the requirements of this

16  section, the registration shall be denied. If In the event

17  that the registrant fails to maintain compliance with the

18  provisions of this section, the office may revoke or suspend

19  the registration. In lieu of revocation or suspension of the

20  registration, the office may levy an administrative penalty in

21  accordance with s. 641.25.

22         Section 2.  This act shall take effect October 1, 2007.

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