Florida Senate - 2009 CS for SB 1926 By the Committee on Health Regulation; and Senator Lawson 588-04065-09 20091926c1 1 A bill to be entitled 2 An act relating to inactive licenses and certificates 3 of need for health care providers; amending s. 4 408.040, F.S.; extending the period that a certificate 5 of need is valid; amending s. 408.808, F.S.; allowing 6 a health care provider to extend the inactive period 7 beyond 12 months and renew the inactive designation 8 under certain circumstances; requiring commencement of 9 construction or proof of certain enforceable capital 10 expenditures if the request is for a second renewal; 11 providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Paragraph (a) of subsection (2) of section 16 408.040, Florida Statutes, is amended to read: 17 408.040 Conditions and monitoring.— 18 (2)(a) Unless the applicant has commenced construction, if 19 the project provides for construction, unless the applicant has 20 incurred an enforceable capital expenditure commitment for a 21 project, if the project does not provide for construction, or 22 unless subject to paragraph (b), a certificate of need shall 23 terminate 3 years18 monthsafter the date of issuance. The 24 agency shall monitor the progress of the holder of the 25 certificate of need in meeting the timetable for project 26 development specified in the application, and may revoke the 27 certificate of need, if the holder of the certificate is not 28 meeting such timetable and is not making a good-faith effort, as 29 defined by rule, to meet it. 30 Section 2. Subsection (3) of section 408.808, Florida 31 Statutes, is amended to read: 32 408.808 License categories.— 33 (3) INACTIVE LICENSE.—An inactive license may be issued to 34 a health care provider subject to the certificate-of-need 35 provisions in part I of this chapter when the provider is 36 currently licensed, does not have a provisional license, and 37 will be temporarily unable to provide services but is reasonably 38 expected to resume services within 12 months. Such designation 39 may be made for a period not to exceed 12 months but may be 40 renewed by the agency for up to 12 additional months upon 41 demonstration by the licensee of the provider’s progress toward 42 reopening. However, if after 20 months in an inactive license 43 status, a rural hospital, as defined in s. 395.602, has 44 demonstrated progress toward reopening but is not able to reopen 45 before the expiration date of its inactive license, the inactive 46 designation may be renewed again by the agency for up to 12 47 additional months. For purposes of the second renewal of an 48 inactive license of a rural hospital, if construction or 49 renovation is required, the licensee must have had plans 50 approved by the agency and construction must have already 51 commenced pursuant to s. 408.032(4), or, if construction or 52 renovation is not required, the licensee must provide proof of 53 having made an enforceable capital expenditure greater than 25 54 percent of the total costs associated with the hiring of staff 55 and the purchase of equipment and supplies needed to operate the 56 facility upon opening. A request by a licensee for an inactive 57 license or to extend the previously approved inactive period 58 must be submitted to the agency and must include a written 59 justification for the inactive license with the beginning and 60 ending dates of inactivity specified, a plan for the transfer of 61 any clients to other providers, and the appropriate licensure 62 fees. The agency may not accept a request that is submitted 63 after initiating closure, after any suspension of service, or 64 after notifying clients of closure or suspension of service, 65 unless the action is a result of a disaster at the licensed 66 premises. For the purposes of this section, the term “disaster” 67 means a sudden emergency occurrence beyond the control of the 68 licensee, whether natural, technological, or manmade, which 69 renders the provider inoperable at the premises. Upon agency 70 approval, the provider shall notify clients of any necessary 71 discharge or transfer as required by authorizing statutes or 72 applicable rules. The beginning of the inactive license period 73 is the date the provider ceases operations. The end of the 74 inactive license period shall become the license expiration 75 date. All licensure fees must be current, must be paid in full, 76 and may be prorated. Reactivation of an inactive license 77 requires the approval of a renewal application, including 78 payment of licensure fees and agency inspections indicating 79 compliance with all requirements of this part, authorizing 80 statutes, and applicable rules. 81 Section 3. This act shall take effect upon becoming a law.