Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1568
       
       
       
       
       
       
                                Barcode 413528                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/30/2012           .                                
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       The Committee on Community Affairs (Storms) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Section 155.40, Florida Statutes, is amended to
    7  read:
    8         155.40 Sale or lease of county, district, or municipal
    9  hospital; effect of sale.—
   10         (1) In the interest of providing quality health care
   11  services to the order that citizens and residents of this the
   12  state may receive quality health care, and notwithstanding any
   13  other provision of general or special law, a any county,
   14  district, or municipal hospital organized and existing under the
   15  laws of this state, acting by and through its governing board,
   16  may shall have the authority to sell or lease the such hospital
   17  to a for-profit or not-for-profit Florida entity corporation,
   18  and enter into leases or other contracts with a for-profit or
   19  not-for-profit Florida entity corporation for the purpose of
   20  operating the and managing such hospital and any or all of its
   21  facilities of whatsoever kind and nature. The term of any such
   22  lease, contract, or agreement and the conditions, covenants, and
   23  agreements to be contained therein shall be determined by the
   24  governing board of the such county, district, or municipal
   25  hospital. The governing board of the hospital must find that the
   26  sale, lease, or contract is in the best interests of the
   27  affected community public and must state the basis of that such
   28  finding. If the governing board of a county, district, or
   29  municipal hospital decides to lease the hospital, it must give
   30  notice in accordance with paragraph (4)(a) or paragraph (4)(b).
   31         (2) A Any such lease, contract, or agreement made pursuant
   32  hereto shall:
   33         (a) Provide that the articles of incorporation of the such
   34  for-profit or not-for-profit corporation be subject to the
   35  approval of the board of directors or board of trustees of the
   36  such hospital;
   37         (b) Require that any not-for-profit corporation become
   38  qualified under s. 501(c)(3) of the United States Internal
   39  Revenue Code;
   40         (c) Provide for the orderly transition of the operation and
   41  management of the such facilities;
   42         (d) Provide for the return of the such facility to the
   43  county, municipality, or district upon the termination of the
   44  such lease, contract, or agreement; and
   45         (e) Provide for the continued treatment of indigent
   46  patients pursuant to the Florida Health Care Responsibility Act
   47  and pursuant to chapter 87-92, Laws of Florida.
   48         (3) Any sale, lease, or contract entered into pursuant to
   49  this section before prior to the effective date of this act must
   50  have complied with the requirements of subsection (2) in effect
   51  at the time of the sale, lease, or contract. Any lease
   52  modification, renewal, or extension relating to a lease
   53  transaction that occurred before the effective date of this act
   54  is not subject to subsections (6)-(17). It is the intent of the
   55  Legislature that this section does not impose any further
   56  requirements with respect to the formation of any for-profit or
   57  not-for-profit Florida entity corporation, the composition of
   58  the board of directors of any Florida entity corporation, or the
   59  manner in which control of the hospital is transferred to the
   60  Florida entity corporation.
   61         (4) As used in this section, the term:
   62         (a) “Affected community” means those persons residing
   63  within the geographic boundaries defined by the charter of the
   64  county, district, or municipal hospital, or if the boundaries
   65  are not specifically defined by charter of the hospital, by the
   66  geographic area from which 75 percent of the county, district,
   67  or municipal hospital’s inpatient admissions are derived.
   68         (b)“Expression of interest” means a bona fide request from
   69  a for-profit or not-for-profit entity that is a qualified
   70  purchaser or lessee to the board of directors of a county,
   71  district, or municipal hospital to enter into negotiations to
   72  sell or lease the hospital or health care system on commercially
   73  reasonable terms.
   74         (c) “Fair market value” means the price that a seller or
   75  lessor is willing to accept and a buyer or lessee is willing to
   76  pay on the open market and in an arms-length transaction, or
   77  what an independent expert in hospital valuation determines the
   78  fair market value to be.
   79         (d)“Increase tax support” means a vote to increase ad
   80  valorem or other taxes that are used to support operations of
   81  the hospital or health care system or any vote to allow the ad
   82  valorem tax rate to remain the same in any year in which
   83  property values in the taxing district have increased on the
   84  average, resulting in an increase in ad valorem tax revenues to
   85  the hospital.
   86         (e) “Interested party” includes a person submitting a
   87  proposal for sale or lease of the county, district, or municipal
   88  hospital, as well as the governing board.
   89         (f) “Net operating expenses” means the total operating
   90  expenses of the hospital, excluding depreciation, interest,
   91  taxes, amortization, and nonoperating expenses.
   92         (g) “Net operating revenues” has the same meaning as
   93  provided in s. 395.701(1). The term does not include restricted
   94  donations and grants for indigent care or nonoperating revenues,
   95  including, but not limited to, local unrestricted tax revenues
   96  and appropriated funds from state and local governments or any
   97  other type of tax support, gain or loss from the sale of assets,
   98  or unrestricted contributions.
   99         (h)“Qualified purchaser or lessee” means an entity that
  100  demonstrates access to capital in an amount equal to or in
  101  excess of 25 percent of the net revenue generated in the
  102  immediately preceding fiscal year of the hospital or health care
  103  system that is the subject of the sale or lease. Such access to
  104  capital can be demonstrated by cash reserves, an existing line
  105  of credit, or a binding commitment to obtain a line of credit to
  106  finance the purchase in an amount that equals or exceeds 25
  107  percent of the net revenue generated by the hospital or health
  108  care system.
  109         (5)(a)The governing board of a county, district, or
  110  municipal hospital shall commence an evaluation of the possible
  111  benefits to an affected community from the sale or lease of
  112  hospital facilities owned by the board to a not-for-profit or
  113  for-profit entity within 60 calendar days after:
  114         1.The county, district, or municipal hospital or health
  115  care system receives a bona fide expression of interest by a
  116  qualified purchaser or lessee to buy or lease the county,
  117  district, or municipal hospital or health care system;
  118         2. The governing board of a county, district, or municipal
  119  hospital votes to increase the amount of tax support for the
  120  hospital or health care system;
  121         3.The county, district, or municipal hospital or health
  122  care system experiences operating deficits that result in net
  123  operating expenses that exceed net operating revenues by 10
  124  percent or more for 3 consecutive years;
  125         4.The county, district, or municipal hospital or health
  126  care system has had administrative complaint proceedings
  127  initiated against it by the Agency for Health Care
  128  Administration for licensure violations under chapter 395 in 3
  129  consecutive years;
  130         5. The county, district, or municipal hospital or health
  131  care system has been declared ineligible to participate in the
  132  Medicare or Medicaid program; or
  133         6.The county, district, or municipal hospital or health
  134  care system fails to achieve or loses accreditation by the Joint
  135  Commission on Accreditation of Healthcare Organizations.
  136         (b) In the course of evaluating the benefits of the sale or
  137  lease, the board shall:
  138         1. Conduct a public hearing to provide interested persons
  139  the opportunity to be heard on the matter.
  140         2. Publish notice of the public hearing in one or more
  141  newspapers of general circulation in the county in which the
  142  majority of the physical assets of the hospital are located and
  143  in the Florida Administrative Weekly at least 15 days before the
  144  hearing is scheduled to occur.
  145         3. Contract with a certified public accounting firm or
  146  other firm that has substantial expertise in the valuation of
  147  hospitals to render an independent valuation of the hospital’s
  148  fair market value. The firm chosen by the board must be
  149  agreeable to the qualified purchaser or lessee and the hospital
  150  or health care system. The firm’s valuation report shall be made
  151  available to the public 7 working days before the scheduled
  152  public hearing.
  153         4. Consider an objective operating comparison between a
  154  hospital or health care system operated by the district, county,
  155  or municipality and other similarly situated hospitals, both
  156  not-for-profit and for-profit, which have a similar service mix,
  157  in order to determine whether there is a difference in the cost
  158  of operation using publicly available data provided by the
  159  Agency for Health Care Administration and the quality metrics
  160  identified by the Centers for Medicare and Medicaid Services
  161  Core Measures. The comparison must determine whether it is more
  162  beneficial to taxpayers and the affected community for the
  163  hospital to be operated by a governmental entity, or whether the
  164  hospital can be operated by a not-for-profit or for-profit
  165  entity with similar or better cost-efficiencies or measurable
  166  outcomes identified by the Centers for Medicare and Medicaid
  167  Services Core Measures. The comparison must also determine
  168  whether there is a net benefit to the community to operate the
  169  hospital as a not-for-profit or for-profit entity and use the
  170  proceeds of the sale or lease for the purposes described in this
  171  section.
  172         5. Make publicly available all documents considered by the
  173  board in the course of such evaluation.
  174         (c)1.Within 160 days after the initiation of the process
  175  established in paragraphs (a) and (b), the governing board shall
  176  publish notice of the board’s findings in one or more newspapers
  177  of general circulation in the county in which the majority of
  178  the physical assets of the hospital are located and in the
  179  Florida Administrative Weekly.
  180         2. This evaluation is not required if a district, county,
  181  or municipal hospital has issued a public request for proposals
  182  for the sale or lease of a hospital on or before February 1,
  183  2012, for the purpose of receiving proposals from qualified
  184  purchasers or lessees, either not-for-profit or for-profit.
  185         3. The fair market valuation established in paragraph (b)
  186  shall be valid for a period of 12 months following the date of
  187  its issuance, unless there are material financial changes in the
  188  hospitals financial condition as determined by the outside
  189  independent certified public accounting firm for the hospital or
  190  health care system, the Agency for Health Care Administration,
  191  or the Auditor General.
  192         4. This subsection does not apply to any county, district
  193  or municipal hospital, or health care system that is under lease
  194  as of February 1, 2012, as long as that lease remains in effect
  195  in accordance with the terms of the lease or such lease is
  196  extended or renewed. Any such hospital or health care system,
  197  however, becomes subject to this subsection upon:
  198         a. Termination of the lease;
  199         b. Notification provided to the lessee of a planned
  200  termination of the lease in accordance with the lease terms;
  201         c. Notification to the lessee that the lessor plans to seek
  202  potential new lessees or buyers; or
  203         d. Notification to the lessee that the lessor plans to
  204  resume operation of the hospital or health care system at the
  205  termination of the lease.
  206  
  207  Any such hospital or health care system may not thereafter be
  208  sold, leased to another lessee, or operated by the owner without
  209  first complying with the provisions of subsections (5)-(16).
  210         (6)(4)If, upon completion of the evaluation of the
  211  benefits of the sale or lease, In the event the governing board
  212  of a county, district, or municipal hospital determines that it
  213  is no longer in the best interest of the affected community to
  214  own or operate a hospital or health care system and elects to
  215  consider a sale or lease of the hospital or health care system
  216  to a third party, the governing board must first determine
  217  whether there are any qualified purchasers or lessees. In the
  218  process of evaluating any qualified purchaser or lessee elects
  219  to sell or lease the hospital, the board shall:
  220         (a) Negotiate the terms of the sale or lease with a for
  221  profit or not-for-profit Florida corporation and Publicly
  222  advertise the meeting at which the proposed sale or lease will
  223  be considered by the governing board of the hospital in
  224  accordance with s. 286.0105; or
  225         (b) Publicly advertise the offer to accept proposals in
  226  accordance with s. 255.0525 and receive proposals from all
  227  interested and qualified purchasers and lessees.
  228  
  229  Any sale or lease must be for fair market value, or, if not for
  230  fair market value, the lease must be in the best interest of the
  231  affected community. A and any sale or lease must comply with all
  232  applicable state and federal antitrust laws.
  233         (7)If, upon completion of the evaluation of the benefits
  234  of the sale or lease, the governing board determines that it is
  235  in the best interest of the affected community to maintain
  236  ownership or operation of the hospital or health care system and
  237  elects not to consider a sale or lease of the hospital or health
  238  care system, the qualified purchaser or lessee shall pay 50
  239  percent of the final cost of the evaluation but not more than
  240  $100,000. If, however, the governing board and the qualified
  241  purchaser do not agree upon the firm chosen to evaluate the
  242  hospital or health care system, the governing board is
  243  responsible for the full cost of the evaluation.
  244         (8)A determination by the governing board to accept a
  245  proposal for sale or lease shall be made after consideration of
  246  all proposals received and negotiations with a qualified
  247  purchaser or lessee. The governing board’s determination must
  248  include, in writing, detailed findings of all reasons for
  249  accepting the proposal.
  250         (a)The governing board’s acceptance of a proposal for sale
  251  or lease must include a description of how the sale or lease
  252  satisfies each of the following requirements:
  253         1.The sale or lease represents fair market value, as
  254  determined by a certified public accounting firm or other
  255  qualified firm pursuant to paragraph (5)(b). If leased at less
  256  than fair market value, the governing board shall provide a
  257  detailed explanation of how the best interests of the affected
  258  community are served by the acceptance of less than fair market
  259  value for the lease of the hospital.
  260         2.Acceptance of the proposal will result in a reduction or
  261  elimination of ad valorem or other taxes for taxpayers in the
  262  district, if applicable.
  263         3.The proposal includes an enforceable commitment that
  264  programs and services and quality health care will continue to
  265  be provided to all residents of the affected community,
  266  particularly to the indigent, the uninsured, and the
  267  underinsured.
  268         4. Disclosure has been made of all conflicts of interest,
  269  including, but not limited to, whether the sale or lease of the
  270  hospital would result in a special private gain or loss to
  271  members of the governing board or key management employees or
  272  members of the medical staff of the county, district, or
  273  municipal hospital, or if governing board members will be
  274  serving on the board of any successor private corporation.
  275  Conflicts of interest, if any, with respect to experts retained
  276  by the governing board shall also be disclosed.
  277         5. Disclosure has been made by the seller or lessor of all
  278  contracts with physicians or other entities providing health
  279  care services through a contract with the seller or lessor,
  280  including all agreements or contracts that would be void or
  281  voidable upon the consummation of the sale or lease.
  282         6. The proposal is in compliance with subsections (9) and
  283  (10).
  284         (b)The findings must be accompanied by all information and
  285  documents relevant to the governing board’s determination,
  286  including, but not limited to:
  287         1.The names and addresses of all parties to the
  288  transaction.
  289         2.The location of the hospital and all related facilities.
  290         3.A description of the terms of all proposed agreements.
  291         4.A copy of the proposed sale or lease agreement and any
  292  related agreements, including, but not limited to, leases,
  293  management contracts, service contracts, and memoranda of
  294  understanding.
  295         5.The estimated total value associated with the proposed
  296  agreement and the proposed acquisition price.
  297         6.Any valuations of the hospital’s assets prepared during
  298  the 3 years immediately preceding the proposed transaction date.
  299         7.The fair market value analysis required by paragraph
  300  (5)(b), or any other valuation prepared at the request of the
  301  board, owner of the hospital or health care system, or managing
  302  entity of the hospital or health care system.
  303         8.Copies of all other proposals and bids that the
  304  governing board may have received or considered in compliance
  305  with subsection (6).
  306         (9)Within 120 days before the anticipated closing date of
  307  the proposed transaction, the governing board shall make
  308  publicly available all findings and documents required under
  309  subsection (8) and publish a notice of the proposed transaction
  310  in one or more newspapers of general circulation in the county
  311  in which the majority of the physical assets of the hospital are
  312  located. The notice must include the names of the parties
  313  involved and the means by which a person may submit written
  314  comments about the proposed transaction to the governing board
  315  and obtain copies of the findings and documents required under
  316  subsection (8).
  317         (10)Within 20 days after the date of publication of the
  318  public notice, any person may submit to the governing board
  319  written comments regarding the proposed transaction.
  320         (11)The sale or lease of the hospital is subject to
  321  approval by the Chief Financial Officer or his or her designee,
  322  except, if otherwise required by law, approval of the sale or
  323  lease shall exclusively be by majority vote of the registered
  324  voters in the county, district, or municipality in which the
  325  hospital is located.
  326         (a)The governing board shall file a petition with the
  327  state Chief Financial Officer seeking approval of the proposed
  328  transaction at least 30 days after publication of the notice of
  329  the proposed transaction.
  330         (b)The petition for approval filed by the governing board
  331  must include all findings and documents required under
  332  subsection (8) and certification by the governing board of
  333  compliance with all requirements of this section. The chair of
  334  the governing board must certify under oath and subject to the
  335  penalty of perjury on a form accompanying the petition that the
  336  contents of the petition and representations therein are true
  337  and correct.
  338         (12) Within 30 days of receiving the petition, the Chief
  339  Financial Officer or his or her designee shall issue a final
  340  order approving or denying the proposed transaction based solely
  341  upon consideration of whether the procedures contained within
  342  this section have been followed by the governing board of the
  343  county, district, or municipal hospital. The order shall require
  344  the governing board to accept or reject the proposal for the
  345  sale or lease of the county, district, or municipal hospital
  346  based upon a determination that:
  347         (a)The proposed transaction is permitted by law.
  348         (b)The proposed transaction does not unreasonably exclude
  349  a potential purchaser or lessee on the basis of being a for
  350  profit or a not-for-profit Florida corporation or other form of
  351  business organization, such as a partnership or limited
  352  liability company.
  353         (c)The governing board of the hospital publicly advertised
  354  the meeting at which the proposed transaction was considered by
  355  the board in compliance with s. 286.0105.
  356         (d)The governing board of the hospital publicly advertised
  357  the offer to accept proposals in compliance with s. 255.0525.
  358         (e)Any conflict of interest was disclosed, including, but
  359  not limited to, how the proposed transaction could result in a
  360  special private gain or loss to members of the governing board
  361  or key management employees of the county, district, or
  362  municipal hospital, or if governing board members will be
  363  serving on the board of any successor private corporation.
  364  Conflicts of interest, if any, with respect to experts retained
  365  by the governing board shall also be disclosed.
  366         (f)The seller or lessor documented that it will receive
  367  fair market value for the sale or lease of the assets as
  368  indicated in paragraph (5)(b) or, if leased at less than fair
  369  market value, the governing board provided a detailed
  370  explanation of how the best interests of the affected community
  371  are served by the acceptance of less than fair market value for
  372  the lease of the hospital.
  373         (g)The acquiring entity has made an enforceable commitment
  374  that programs and services and quality health care will continue
  375  to be provided to all residents of the affected community,
  376  particularly to the indigent, the uninsured, and the
  377  underinsured.
  378         (h)The governing board disclosed whether the sale or lease
  379  will result in a reduction or elimination of ad valorem or other
  380  taxes used to support the hospital.
  381         (13)Any interested party to the action has the right to
  382  seek judicial review of the decision in the appellate district
  383  where the hospital is located or in the First District Court of
  384  Appeal pursuant to s. 120.68.
  385         (a)All proceedings shall be instituted by filing a notice
  386  of appeal in accordance with the Florida Rules of Appellate
  387  Procedure within 30 days after the date of the final order.
  388         (b)In such judicial review, the appellate court shall
  389  affirm the decision of the Chief Financial Officer, unless the
  390  decision by the Chief Financial Officer is shown to be clearly
  391  erroneous.
  392         (14)All costs shall be paid by the governing board, unless
  393  an interested party contests the action, in which case the court
  394  may assign costs equitably to the parties.
  395         (15) If any provision of subsection (5), subsection (6), or
  396  subsection (8) is not followed, the contract for sale or lease
  397  is voidable by any party to the contract. If any member of the
  398  governing board negligently or willfully violates subsection
  399  (5), subsection (6), or subsection (7), as determined by the
  400  Commission on Ethics after receipt of a sworn complaint pursuant
  401  to s. 112.322, the member is subject to a penalty, as determined
  402  by the Commission on Ethics pursuant to s. 112.317.
  403         (16) If a county, district, or municipal hospital is sold
  404  or leased, the governing board shall:
  405         (a) Deposit 50 percent of the net proceeds of the sale or
  406  lease into a health care economic development trust fund, which
  407  shall be under the control of the county commission of the
  408  county in which the property is located. The use and
  409  distribution of the funds shall be at the discretion of a
  410  majority of the county commission, the members of which shall
  411  serve as trustees of the trust fund. The net proceeds in the
  412  health care economic development trust fund shall be
  413  distributed, in consultation with the Department of Economic
  414  Opportunity, to promote job creation in the health care sector
  415  of the economy through new or expanded health care business
  416  development, new or expanded health care services, or new or
  417  expanded health care education programs or commercialization of
  418  health care research within the affected community; and
  419         (b) Appropriate 50 percent of the net proceeds of the sale
  420  or lease for funding the delivery of indigent and uncompensated
  421  care on an equitable basis, based on the amount of indigent and
  422  uncompensated care provided, to all hospitals within the
  423  boundaries of the district.
  424  
  425  For the purposes of this subsection, the term “net proceeds”
  426  means the sale price after payment of all district debts and
  427  obligations.
  428         (17) If a county, district, or municipal hospital is sold
  429  or leased to a for-profit corporation or other business entity
  430  subject to local taxation, in addition to the distribution of
  431  funds as directed in subsection (16):
  432         (a) Fifty percent of the resulting county and municipal ad
  433  valorem tax revenue from the formerly tax-exempt property shall
  434  be distributed by the county commission of the county in which
  435  the property is located, in consultation with the Department of
  436  Economic Opportunity, for purposes set forth in subsection (16);
  437  and
  438         (b) Fifty percent of the resulting county and municipal ad
  439  valorem tax revenue from the formerly tax-exempt property shall
  440  be appropriated by the county commission for the sole purpose of
  441  enhancing education and law enforcement programs within the
  442  county.
  443         (18)(5)If In the event a hospital operated by a for-profit
  444  or not-for-profit Florida entity corporation receives annually
  445  more than $100,000 in revenues from the county, district, or
  446  municipality that owns the hospital, the Florida entity
  447  corporation must be accountable to the county, district, or
  448  municipality with respect to the manner in which the funds are
  449  expended by either:
  450         (a) Having the revenues subject to annual appropriations by
  451  the county, district, or municipality; or
  452         (b) Where there is a contract to provide revenues to the
  453  hospital, the term of which is longer than 12 months, the
  454  governing board of the county, district, or municipality must be
  455  able to modify the contract upon 12 months notice to the
  456  hospital.
  457  
  458  A not-for-profit entity corporation that is subject to this
  459  subsection and that does not currently comply with the
  460  accountability requirements in this subsection shall have 12
  461  months after the effective date of this act to modify any
  462  contracts with the county, district, or municipality in a manner
  463  that is consistent with this subsection.
  464         (19)(6) Unless otherwise expressly stated in the lease
  465  documents, the transaction involving the sale or lease of a
  466  hospital may shall not be construed as:
  467         (a) A transfer of a governmental function from the county,
  468  district, or municipality to the private purchaser or lessee;
  469         (b) Constituting a financial interest of the public lessor
  470  in the private lessee; or
  471         (c) Making a private lessee an integral part of the public
  472  lessor’s decisionmaking process.
  473         (20)(7) The lessee of a hospital, under this section or any
  474  special act of the Legislature, operating under a lease may
  475  shall not be construed to be “acting on behalf of” the lessor as
  476  that term is used in statute, unless the lease document
  477  expressly provides to the contrary.
  478         (21)(8)(a) If, whenever the sale of a public hospital by a
  479  public agency to a private corporation or other private entity
  480  pursuant to this section or pursuant to a special act of the
  481  Legislature reflects that:
  482         1. The private corporation or other private entity
  483  purchaser acquires 100 percent ownership in the hospital
  484  enterprise;
  485         2. The private corporation or other private entity
  486  purchases the physical plant of the hospital facility and has
  487  complete responsibility for the operation and maintenance of the
  488  facility, regardless of ownership of the underlying real
  489  property;
  490         3. The public agency seller retains no control over
  491  decisionmaking or policymaking for the hospital;
  492         4. The private corporation or other private entity
  493  purchaser receives no funding from the public agency seller
  494  other than by contract for services rendered to patients for
  495  whom the public agency seller has the responsibility to pay for
  496  hospital or medical care;
  497         5. The public agency seller makes no substantial investment
  498  in or loans to the private entity;
  499         6. The private corporation or other private entity
  500  purchaser was not created by the public entity seller; and
  501         7. The private corporation or other private entity
  502  purchaser operates primarily for its own financial interests and
  503  not primarily for the interests of the public agency,
  504  
  505  such a sale shall be considered a complete sale of the public
  506  agency’s interest in the hospital or health care system.
  507         (b) A complete sale of a hospital or health care system as
  508  described in this subsection may shall not be construed as:
  509         1. A transfer of a governmental function from the county,
  510  district, or municipality to the private corporation or other
  511  private entity purchaser;
  512         2. Constituting a financial interest of the public agency
  513  in the private corporation or other private entity purchaser;
  514         3. Making the private corporation or other private entity
  515  purchaser an “agency” as that term is used in statutes;
  516         4. Making the private corporation or other private entity
  517  purchaser an integral part of the public agency’s decisionmaking
  518  process; or
  519         5. Indicating that the private corporation or other private
  520  entity purchaser is “acting on behalf of a public agency” as
  521  that term is used in statute.
  522         (22)If the governing board elects to sell or lease any
  523  physical property of a county, district, or municipal hospital
  524  or health care system and such property generated less than 20
  525  percent of the hospital’s net revenue within the hospital’s or
  526  health care system’s most recent fiscal year, the sale or lease
  527  of such property is exempt from the requirements under
  528  subsections (6)-(17). However, the governing board shall
  529  publicly advertise the meeting at which the proposed sale or
  530  lease of such property will be considered by the governing board
  531  of the hospital in accordance with s. 286.0105 or publicly
  532  advertise the offer to accept proposals in accordance with s.
  533  255.0525 and receive proposals from all qualified purchasers and
  534  lessees. The sale or lease of the property must be for fair
  535  market value or, if a lease is for less than fair market value,
  536  the lease must be in the best interest of the affected
  537  community.
  538         (23)A county, district, or municipal hospital that has
  539  executed a letter of intent to sell or lease the hospital or
  540  health care system accepted at a properly noticed public
  541  meeting, and whose governing board has voted to approve the
  542  letter of intent before December 31, 2011, is not subject to
  543  subsections (6)-(17) as long as the final closing of the sale or
  544  lease transaction pursuant to the letter of intent occurs before
  545  December 31, 2012.
  546         Section 2. Section 155.401, Florida Statutes, is created to
  547  read:
  548         155.401Power of special taxing district to appropriate
  549  proceeds from sale or lease of hospital to economic development
  550  trust fund.—Notwithstanding any other general or special law,
  551  the purposes for which a special taxing district may appropriate
  552  funds from the sale or lease of a hospital to an economic
  553  development fund include the promotion and support of economic
  554  growth in such district and in the county in which such district
  555  is located and the furthering of the purposes of such district,
  556  as provided by law.
  557         Section 3. To the extent that any general or special law is
  558  inconsistent with or otherwise in conflict with this act, such
  559  conflicting provisions are specifically superseded by this act.
  560  A special tax district, public hospital, or municipal hospital
  561  is not exempt from this act.
  562         Section 4. Section 395.3036, Florida Statutes, is amended
  563  to read:
  564         395.3036 Confidentiality of records and meetings of
  565  entities corporations that lease public hospitals or other
  566  public health care facilities.—The records of a private entity
  567  corporation that leases a public hospital or other public health
  568  care facility are confidential and exempt from the provisions of
  569  s. 119.07(1) and s. 24(a), Art. I of the State Constitution, and
  570  the meetings of the governing board of a private entity
  571  corporation are exempt from s. 286.011 and s. 24(b), Art. I of
  572  the State Constitution if when the public lessor complies with
  573  the public finance accountability provisions of s. 155.40(18)
  574  155.40(5) with respect to the transfer of any public funds to
  575  the private lessee and if when the private lessee meets at least
  576  three of the five following criteria:
  577         (1) The public lessor that owns the public hospital or
  578  other public health care facility was not the incorporator or
  579  initial member of the private entity corporation that leases the
  580  public hospital or other health care facility.
  581         (2) The public lessor and the private lessee do not
  582  commingle any of their funds in any account maintained by either
  583  of them, other than the payment of the rent and administrative
  584  fees or the transfer of funds pursuant to subsection (5) (2).
  585         (3) Except as otherwise provided by law, the private lessee
  586  is not allowed to participate, except as a member of the public,
  587  in the decisionmaking process of the public lessor.
  588         (4) The lease agreement does not expressly require the
  589  lessee to comply with the requirements of ss. 119.07(1) and
  590  286.011.
  591         (5) The public lessor is not entitled to receive any
  592  revenues from the lessee, except for rental or administrative
  593  fees due under the lease, and the lessor is not responsible for
  594  the debts or other obligations of the lessee.
  595         Section 5. This act shall take effect upon becoming a law.
  596  
  597  ================= T I T L E  A M E N D M E N T ================
  598         And the title is amended as follows:
  599         Delete everything before the enacting clause
  600  and insert:
  601                        A bill to be entitled                      
  602         An act relating to the sale or lease of a county,
  603         district, or municipal hospital; amending s. 155.40,
  604         F.S.; defining the terms; requiring the governing
  605         board of a county, district, or municipal hospital to
  606         evaluate the possible benefits to an affected
  607         community from the sale or lease of a hospital
  608         facility owned by the board to a not-for-profit or
  609         for-profit entity within a specified time period;
  610         specifying the actions the board must take in
  611         evaluating whether to sell or lease the public
  612         hospital; requiring the board to determine whether
  613         qualified purchasers or lessees exist; specifying the
  614         factors that must be considered by the governing board
  615         before accepting a proposal to sell or lease the
  616         hospital; requiring the board to state in writing its
  617         detailed findings related to its decision to accept or
  618         reject the proposal; requiring the governing board to
  619         make public the required findings and documents and to
  620         publish a notice of the proposed transaction in one or
  621         more newspapers of general circulation in the county
  622         in which the majority of the physical assets of the
  623         hospital are located; allowing persons to submit
  624         written comments regarding the proposed transaction;
  625         providing that the sale or lease is subject to the
  626         approval of the Chief Financial Officer; requiring the
  627         governing board to file a petition with the Chief
  628         Financial Officer seeking approval of the proposed
  629         transaction within a specified time period; requiring
  630         the Chief Financial Officer or his or her designee to
  631         issue a final order approving or denying the proposed
  632         transaction; specifying the criteria upon which the
  633         Chief Financial Officer must base his or her decision;
  634         authorizing an interested party to appeal the decision
  635         of the Chief Financial Officer; providing that all
  636         costs be paid by the governing board unless an
  637         interested party contests the action, in which case
  638         the court may assign costs equitably to the parties;
  639         providing for the distribution of proceeds from the
  640         transaction; exempting the sale or lease of specified
  641         physical property of a county, district, or municipal
  642         hospital from processes required for the approval of a
  643         sale or lease of county, district, or municipal
  644         hospital property; providing an exemption from
  645         complying with the requirements of the act under
  646         certain circumstances; exempting application of the
  647         act to hospitals or health care systems for which a
  648         letter of intent to sell or lease is executed before a
  649         specified date; creating s. 155.401, F.S.; providing
  650         that the purposes for which a special taxing district
  651         may appropriate funds from the sale or lease of a
  652         hospital include the promotion and support of economic
  653         growth in the district and county in which the taxing
  654         district is located and the furthering of the purposes
  655         of the taxing district; providing that any general or
  656         special law that is inconsistent with or otherwise in
  657         conflict with the act is specifically superseded by
  658         the act; amending s. 395.3036, F.S.; conforming cross
  659         references; providing an effective date.