Florida Senate - 2012                             CS for SB 1884
       
       
       
       By the Committee on Health Regulation; and Senator Garcia
       
       
       
       
       588-02736A-12                                         20121884c1
    1                        A bill to be entitled                      
    2         An act relating to health regulation by the Agency for
    3         Health Care Administration; amending s. 83.42, F.S.,
    4         relating to exclusions from part II of ch. 83, F.S.,
    5         the Florida Residential Landlord and Tenant Act;
    6         clarifying that the procedures in s. 400.0255, F.S.,
    7         for transfers and discharges are exclusive to
    8         residents of a nursing home licensed under part II of
    9         ch. 400, F.S.; amending s. 112.0455, F.S., relating to
   10         the Drug-Free Workplace Act; deleting a provision
   11         regarding retroactivity of the act; deleting a
   12         provision specifying that the act does not abrogate
   13         the right of an employer under state law to conduct
   14         drug tests before a certain date; deleting a provision
   15         that requires a laboratory to submit to the Agency for
   16         Health Care Administration a monthly report containing
   17         statistical information regarding the testing of
   18         employees and job applicants; amending s. 318.21,
   19         F.S.; providing that a portion of the additional fines
   20         assessed for traffic violations within an enhanced
   21         penalty zone be remitted to the Department of Revenue
   22         and deposited into the Brain and Spinal Cord Injury
   23         Trust Fund of the Department of Health to serve
   24         certain Medicaid recipients; repealing s. 383.325,
   25         F.S., relating to confidentiality of inspection
   26         reports of licensed birth center facilities; creating
   27         s. 385.2031, F.S.; designating the Florida
   28         Hospital/Sandford-Burnham Translational Research
   29         Institute for Metabolism and Diabetes as a resource
   30         for research in the prevention and treatment of
   31         diabetes; amending s. 395.002, F.S.; redefining the
   32         term “accrediting organizations” as it applies to the
   33         regulation of hospitals and other licensed facilities;
   34         conforming a cross-reference; amending s. 395.003,
   35         F.S.; deleting an obsolete provision; authorizing a
   36         specialty–licensed children’s hospital that has at
   37         least a specified number of licensed neonatal
   38         intensive care unit beds to provide obstetrical
   39         services that are restricted to the diagnosis, care,
   40         and treatment of certain pregnant women; authorizing
   41         the Agency for Health Care Administration to adopt
   42         rules; amending s. 395.0161, F.S.; deleting a
   43         requirement that facilities licensed under part I of
   44         ch. 395, F.S., pay licensing fees at the time of
   45         inspection; amending s. 395.0193, F.S.; requiring a
   46         licensed facility to report certain peer review
   47         information and final disciplinary actions to the
   48         Division of Medical Quality Assurance of the
   49         Department of Health rather than the Division of
   50         Health Quality Assurance of the Agency for Health Care
   51         Administration; amending s. 395.1023, F.S.; providing
   52         for the Department of Children and Family Services
   53         rather than the Department of Health to perform
   54         certain functions with respect to child protection
   55         cases; requiring certain hospitals to notify the
   56         Department of Children and Family Services of
   57         compliance; amending s. 395.1041, F.S., relating to
   58         hospital emergency services and care; deleting
   59         obsolete provisions; repealing s. 395.1046, F.S.,
   60         relating to complaint investigation procedures;
   61         amending s. 395.1055, F.S.; requiring that licensed
   62         facility beds conform to standards specified by the
   63         Agency for Health Care Administration, the Florida
   64         Building Code, and the Florida Fire Prevention Code;
   65         amending s. 395.3025, F.S.; authorizing the disclosure
   66         of patient records to the Department of Health rather
   67         than the Agency for Health Care Administration in
   68         accordance with an issued subpoena; requiring the
   69         department, rather than the agency, to make available,
   70         upon written request by a practitioner against whom
   71         probable cause has been found, any patient records
   72         that form the basis of the determination of probable
   73         cause; amending s. 395.3036, F.S.; correcting a cross
   74         reference; repealing s. 395.3037, F.S., relating to
   75         redundant definitions for the Department of Health and
   76         the Agency for Health Care Administration; amending s.
   77         395.602, F.S.; revising the definition of the term
   78         “rural hospital” to delete an obsolete provision;
   79         amending s. 400.021, F.S.; revising the definitions of
   80         the terms “geriatric outpatient clinic” and “resident
   81         care plan”; amending s. 400.275, F.S.; revising agency
   82         duties with regard to training nursing home surveyor
   83         teams; revising requirements for team members;
   84         amending s. 400.474, F.S.; revising the requirements
   85         for a quarterly report submitted to the Agency for
   86         Health Care Administration by each home health agency;
   87         amending s. 400.484, F.S.; revising the classification
   88         of violations by a home health agency for which the
   89         agency imposes an administrative fine; amending and
   90         reenacting s. 400.506, F.S., relating to licensure of
   91         nurse registries, to incorporate the amendment made to
   92         s. 400.509, F.S., in a reference thereto; authorizing
   93         an administrator to manage up to five nurse registries
   94         under certain circumstances; requiring an
   95         administrator to designate, in writing, for each
   96         licensed entity, a qualified alternate administrator
   97         to serve during the administrator’s absence; amending
   98         s. 400.509, F.S.; providing that organizations that
   99         provide companion services only to persons with
  100         developmental disabilities, under contract with the
  101         Agency for Persons with Disabilities, are exempt from
  102         registration with the Agency for Health Care
  103         Administration; amending s. 400.601, F.S.; redefining
  104         the term “hospice” to include a limited liability
  105         company as it relates to nursing homes and related
  106         health care facilities; amending s. 400.606, F.S.;
  107         revising the content requirements of the plan
  108         accompanying an initial or change-of-ownership
  109         application for licensure of a hospice; revising
  110         requirements relating to certificates of need for
  111         certain hospice facilities; amending s. 400.915, F.S.;
  112         correcting an obsolete cross-reference to
  113         administrative rules; amending s. 400.931, F.S.;
  114         requiring each applicant for initial licensure, change
  115         of ownership, or license renewal to operate a licensed
  116         home medical equipment provider at a location outside
  117         the state to submit documentation of accreditation, or
  118         an application for accreditation, from an accrediting
  119         organization that is recognized by the Agency for
  120         Health Care Administration; requiring an applicant
  121         that has applied for accreditation to provide proof of
  122         accreditation within a specified time; deleting a
  123         requirement that an applicant for a home medical
  124         equipment provider license submit a surety bond to the
  125         agency; amending s. 400.967, F.S.; revising the
  126         classification of violations by intermediate care
  127         facilities for the developmentally disabled; providing
  128         a penalty for certain violations; amending s.
  129         400.9905, F.S.; revising the definitions of the terms
  130         “clinic” and “portable equipment provider”;
  131         authorizing the Agency for Health Care Administration
  132         to deny or revoke an exemption from licensure based on
  133         certain criteria if a health care clinic receives
  134         payment for health care services under personal injury
  135         protection insurance coverage; including health
  136         services provided at multiple locations within the
  137         definition of the term “portable health service or
  138         equipment provider”; amending s. 400.991, F.S.;
  139         conforming terminology; revising application
  140         requirements relating to documentation of financial
  141         ability to operate a mobile clinic; amending s.
  142         408.033, F.S.; providing that fees assessed on
  143         selected health care facilities and organizations may
  144         be collected prospectively at the time of licensure
  145         renewal and prorated for the licensing period;
  146         amending s. 408.034, F.S.; revising agency authority
  147         relating to licensing of intermediate care facilities
  148         for the developmentally disabled; amending s. 408.036,
  149         F.S.; deleting an exemption from certain certificate
  150         of-need review requirements for a hospice or a hospice
  151         inpatient facility; amending s. 408.037, F.S.;
  152         revising requirements for the financial information to
  153         be included in an application for a certificate of
  154         need; amending s. 408.043, F.S.; revising requirements
  155         for certain freestanding inpatient hospice care
  156         facilities to obtain a certificate of need; amending
  157         s. 408.061, F.S.; revising data reporting requirements
  158         for health care facilities; amending s. 408.07, F.S.;
  159         deleting a cross-reference; amending s. 408.10, F.S.;
  160         removing agency authority to investigate certain
  161         consumer complaints; amending s. 408.7056, F.S.;
  162         providing that the Subscriber Assistance Program
  163         applies to health plans that meet certain
  164         requirements; repealing s. 408.802(11), F.S.; removing
  165         applicability of part II of ch. 408, F.S., relating to
  166         general licensure requirements, to private review
  167         agents; amending s. 408.804, F.S.; providing penalties
  168         for altering, defacing, or falsifying a license
  169         certificate issued by the agency or displaying such an
  170         altered, defaced, or falsified certificate; amending
  171         s. 408.806, F.S.; revising agency responsibilities for
  172         notification of licensees of impending expiration of a
  173         license; requiring payment of a late fee for a license
  174         application to be considered complete under certain
  175         circumstances; amending s. 408.8065, F.S.; revising
  176         the requirements for becoming licensed as a home
  177         health agency, home medical equipment provider, or
  178         health care clinic; amending s. 408.809, F.S.;
  179         revising provisions to include a schedule for
  180         background rescreenings of certain employees; amending
  181         s. 408.810, F.S.; requiring that the controlling
  182         interest of a health care licensee notify the agency
  183         of certain court proceedings; providing a penalty;
  184         amending s. 408.813, F.S.; authorizing the agency to
  185         impose fines for unclassified violations of part II of
  186         ch. 408, F.S.; amending s. 409.912, F.S.; revising the
  187         components of the Medicaid prescribed-drug spending
  188         control program; amending s. 409.91195, F.S.; revising
  189         the membership of the Medicaid Pharmaceutical and
  190         Therapeutics Committee; providing the requirements for
  191         the members; providing terms of membership; requiring
  192         the Agency for Health Care Administration to serve as
  193         staff for the committee and assist the committee with
  194         its duties; providing additional requirements for
  195         presenting public testimony to include a product on a
  196         preferred drug list; requiring that the committee be
  197         informed in writing of the agency’s action when the
  198         agency does not follow the recommendation of the
  199         committee; amending s. 409.975, F.S.; providing that
  200         an essential provider and a hospital that is necessary
  201         for a managed care plan to demonstrate an adequate
  202         network as determined by the Agency for Health Care
  203         Administration is part of that managed care plan’s
  204         network for purposes of the provider’s or hospital’s
  205         application for enrollment or expansion in the
  206         Medicaid program; requiring that a managed care plan’s
  207         payment under this provision to an essential provider
  208         be made in accordance with s. 409.975, F.S., regarding
  209         managed care plan accountability; repealing s.
  210         429.11(6), F.S., relating to provisional licenses for
  211         assisted living facilities; amending s. 429.294, F.S.;
  212         revising a cross-reference; amending s. 429.71, F.S.;
  213         revising the classification of violations; amending s.
  214         429.915, F.S.; revising agency responsibilities
  215         regarding the issuance of conditional licenses;
  216         amending ss. 430.80 and 430.81, F.S.; conforming
  217         cross-references; repealing s. 440.102(9)(d), F.S.,
  218         relating to a requirement that laboratories submit to
  219         the Agency for Health Care Administration a monthly
  220         report containing statistical information regarding
  221         the testing of employees and job applicants; amending
  222         s. 483.035, F.S.; providing for a clinical laboratory
  223         to be operated by certain nurses; amending s. 483.051,
  224         F.S.; requiring the Agency for Health Care
  225         Administration to provide for biennial licensure of
  226         all nonwaived laboratories that meet certain
  227         requirements; requiring the agency to prescribe
  228         qualifications for such licensure; defining nonwaived
  229         laboratories as laboratories that do not have a
  230         certificate of waiver from the Centers for Medicare
  231         and Medicaid Services; deleting requirements for the
  232         registration of an alternate site testing location
  233         when the clinical laboratory applies to renew its
  234         license; amending s. 483.245, F.S.; prohibiting a
  235         clinical laboratory from placing a specimen collector
  236         or other personnel in any physician’s office, unless
  237         the clinical lab and the physician’s office are owned
  238         and operated by the same entity; authorizing a person
  239         who is aggrieved by a violation to bring a civil
  240         action for appropriate relief; amending s. 483.294,
  241         F.S.; revising the frequency of agency inspections of
  242         multiphasic health testing centers; amending s.
  243         499.003, F.S.; redefining the term “wholesale
  244         distribution” with regard to the Florida Drug and
  245         Cosmetic Act to remove certain requirements governing
  246         prescription drug inventories; amending and creating,
  247         respectively, ss. 627.602 and 627.6513, F.S.;
  248         providing that the Uniform Health Carrier External
  249         Review Model Act and the Employee Retirement Income
  250         Security Act apply to individual and group health
  251         insurance policies except those subject to the
  252         Subscriber Assistance Program under s. 408.7056, F.S.;
  253         creating s. 641.312, F.S.; requiring the Office of
  254         Insurance Regulation within the Department of
  255         Financial Services to administer the National
  256         Association of Insurance Commissioners’ Uniform Health
  257         Carrier External Review Model Act; providing that the
  258         Uniform Health Carrier External Review Model Act does
  259         not apply to a health maintenance contract that is
  260         subject to the Subscriber Assistance Program under s.
  261         408.7056, F.S.; amending s. 651.118, F.S.; conforming
  262         a cross-reference; providing a directive to the
  263         Division of Statutory Revision; providing effective
  264         dates.
  265  
  266  Be It Enacted by the Legislature of the State of Florida:
  267  
  268         Section 1. Subsection (1) of section 83.42, Florida
  269  Statutes, is amended to read:
  270         83.42 Exclusions from application of part.—This part does
  271  not apply to:
  272         (1) Residency or detention in a facility, whether public or
  273  private, when residence or detention is incidental to the
  274  provision of medical, geriatric, educational, counseling,
  275  religious, or similar services. For residents of a facility
  276  licensed under part II of chapter 400, the provisions of s.
  277  400.0255 are the exclusive procedures for all transfers and
  278  discharges.
  279         Section 2. Present paragraphs (f) through (k) of subsection
  280  (10) of section 112.0455, Florida Statutes, are redesignated as
  281  paragraphs (e) through (j), respectively, and present paragraph
  282  (e) of subsection (10), subsection (12), and paragraph (e) of
  283  subsection (14) of that section are amended to read:
  284         112.0455 Drug-Free Workplace Act.—
  285         (10) EMPLOYER PROTECTION.—
  286         (e) Nothing in this section shall be construed to operate
  287  retroactively, and nothing in this section shall abrogate the
  288  right of an employer under state law to conduct drug tests prior
  289  to January 1, 1990. A drug test conducted by an employer prior
  290  to January 1, 1990, is not subject to this section.
  291         (12) DRUG-TESTING STANDARDS; LABORATORIES.—
  292         (a) The requirements of part II of chapter 408 apply to the
  293  provision of services that require licensure pursuant to this
  294  section and part II of chapter 408 and to entities licensed by
  295  or applying for such licensure from the Agency for Health Care
  296  Administration pursuant to this section. A license issued by the
  297  agency is required in order to operate a laboratory.
  298         (b) A laboratory may analyze initial or confirmation drug
  299  specimens only if:
  300         1. The laboratory is licensed and approved by the Agency
  301  for Health Care Administration using criteria established by the
  302  United States Department of Health and Human Services as general
  303  guidelines for modeling the state drug testing program and in
  304  accordance with part II of chapter 408. Each applicant for
  305  licensure and licensee must comply with all requirements of part
  306  II of chapter 408.
  307         2. The laboratory has written procedures to ensure chain of
  308  custody.
  309         3. The laboratory follows proper quality control
  310  procedures, including, but not limited to:
  311         a. The use of internal quality controls including the use
  312  of samples of known concentrations which are used to check the
  313  performance and calibration of testing equipment, and periodic
  314  use of blind samples for overall accuracy.
  315         b. An internal review and certification process for drug
  316  test results, conducted by a person qualified to perform that
  317  function in the testing laboratory.
  318         c. Security measures implemented by the testing laboratory
  319  to preclude adulteration of specimens and drug test results.
  320         d. Other necessary and proper actions taken to ensure
  321  reliable and accurate drug test results.
  322         (c) A laboratory shall disclose to the employer a written
  323  test result report within 7 working days after receipt of the
  324  sample. All laboratory reports of a drug test result shall, at a
  325  minimum, state:
  326         1. The name and address of the laboratory which performed
  327  the test and the positive identification of the person tested.
  328         2. Positive results on confirmation tests only, or negative
  329  results, as applicable.
  330         3. A list of the drugs for which the drug analyses were
  331  conducted.
  332         4. The type of tests conducted for both initial and
  333  confirmation tests and the minimum cutoff levels of the tests.
  334         5. Any correlation between medication reported by the
  335  employee or job applicant pursuant to subparagraph (8)(b)2. and
  336  a positive confirmed drug test result.
  337  
  338  A No report may not shall disclose the presence or absence of
  339  any drug other than a specific drug and its metabolites listed
  340  pursuant to this section.
  341         (d) The laboratory shall submit to the Agency for Health
  342  Care Administration a monthly report with statistical
  343  information regarding the testing of employees and job
  344  applicants. The reports shall include information on the methods
  345  of analyses conducted, the drugs tested for, the number of
  346  positive and negative results for both initial and confirmation
  347  tests, and any other information deemed appropriate by the
  348  Agency for Health Care Administration. No monthly report shall
  349  identify specific employees or job applicants.
  350         (d)(e) Laboratories shall provide technical assistance to
  351  the employer, employee, or job applicant for the purpose of
  352  interpreting any positive confirmed test results which could
  353  have been caused by prescription or nonprescription medication
  354  taken by the employee or job applicant.
  355         (14) DISCIPLINE REMEDIES.—
  356         (e) Upon resolving an appeal filed pursuant to paragraph
  357  (c), and finding a violation of this section, the commission may
  358  order the following relief:
  359         1. Rescind the disciplinary action, expunge related records
  360  from the personnel file of the employee or job applicant and
  361  reinstate the employee.
  362         2. Order compliance with paragraph (10)(f) (10)(g).
  363         3. Award back pay and benefits.
  364         4. Award the prevailing employee or job applicant the
  365  necessary costs of the appeal, reasonable attorney’s fees, and
  366  expert witness fees.
  367         Section 3. Subsection (15) of section 318.21, Florida
  368  Statutes, is amended to read:
  369         318.21 Disposition of civil penalties by county courts.—All
  370  civil penalties received by a county court pursuant to the
  371  provisions of this chapter shall be distributed and paid monthly
  372  as follows:
  373         (15) Of the additional fine assessed under s. 318.18(3)(e)
  374  for a violation of s. 316.1893, 50 percent of the moneys
  375  received from the fines shall be remitted to the Department of
  376  Revenue and deposited into the Brain and Spinal Cord Injury
  377  Trust Fund of Department of Health and appropriated to the
  378  Department of Health Agency for Health Care Administration as
  379  general revenue to provide an enhanced Medicaid payment to
  380  nursing homes that serve Medicaid recipients who have with brain
  381  and spinal cord injuries that are medically complex and who are
  382  technologically and respiratory dependent. The remaining 50
  383  percent of the moneys received from the enhanced fine imposed
  384  under s. 318.18(3)(e) shall be remitted to the Department of
  385  Revenue and deposited into the Department of Health Emergency
  386  Medical Services Trust Fund to provide financial support to
  387  certified trauma centers in the counties where enhanced penalty
  388  zones are established to ensure the availability and
  389  accessibility of trauma services. Funds deposited into the
  390  Emergency Medical Services Trust Fund under this subsection
  391  shall be allocated as follows:
  392         (a) Fifty percent shall be allocated equally among all
  393  Level I, Level II, and pediatric trauma centers in recognition
  394  of readiness costs for maintaining trauma services.
  395         (b) Fifty percent shall be allocated among Level I, Level
  396  II, and pediatric trauma centers based on each center’s relative
  397  volume of trauma cases as reported in the Department of Health
  398  Trauma Registry.
  399         Section 4. Section 383.325, Florida Statutes, is repealed.
  400         Section 5. Section 385.2031, Florida Statutes, is created
  401  to read:
  402         385.2031Resource for research in the prevention and
  403  treatment of diabetes.—The Florida Hospital/Sanford-Burnham
  404  Translational Research Institute for Metabolism and Diabetes is
  405  designated as a resource in this state for research in the
  406  prevention and treatment of diabetes.
  407         Section 6. Subsection (1) of section 395.002, Florida
  408  Statutes, is amended to read:
  409         395.002 Definitions.—As used in this chapter:
  410         (1) “Accrediting organizations” means national
  411  accreditation organizations that are approved by the Centers for
  412  Medicare and Medicaid Services and whose standards incorporate
  413  comparable licensure regulations required by the state the Joint
  414  Commission on Accreditation of Healthcare Organizations, the
  415  American Osteopathic Association, the Commission on
  416  Accreditation of Rehabilitation Facilities, and the
  417  Accreditation Association for Ambulatory Health Care, Inc.
  418         Section 7. Paragraph (c) of subsection (1) and subsection
  419  (6) of section 395.003, Florida Statutes, are amended to read:
  420         395.003 Licensure; denial, suspension, and revocation.—
  421         (1)
  422         (c) Until July 1, 2006, additional emergency departments
  423  located off the premises of licensed hospitals may not be
  424  authorized by the agency.
  425         (6) A specialty hospital may not provide any service or
  426  regularly serve any population group beyond those services or
  427  groups specified in its license. A specialty-licensed children’s
  428  hospital that is authorized to provide pediatric cardiac
  429  catheterization and pediatric open-heart surgery services may
  430  provide cardiovascular service to adults who, as children, were
  431  previously served by the hospital for congenital heart disease,
  432  or to those patients who are referred for a specialized
  433  procedure only for congenital heart disease by an adult
  434  hospital, without obtaining additional licensure as a provider
  435  of adult cardiovascular services. The agency may request
  436  documentation as needed to support patient selection and
  437  treatment. This subsection does not apply to a specialty
  438  licensed children’s hospital that is already licensed to provide
  439  adult cardiovascular services. A specialty–licensed children’s
  440  hospital that has at least 50 licensed neonatal intensive care
  441  unit beds may provide obstetrical services, including labor and
  442  delivery, which are restricted to the diagnosis, care, and
  443  treatment of pregnant women of any age who have:
  444         (a) At least one maternal or fetal characteristic or
  445  condition that would characterize the pregnancy or delivery as
  446  high-risk; or
  447         (b) Received medical advice or a diagnosis indicating their
  448  fetus will require at least one perinatal intervention.
  449  
  450  The agency shall adopt rules that establish standards and
  451  guidelines for admission to any program that qualifies under
  452  this subsection.
  453         Section 8. Subsection (3) of section 395.0161, Florida
  454  Statutes, is amended to read:
  455         395.0161 Licensure inspection.—
  456         (3) In accordance with s. 408.805, an applicant or licensee
  457  shall pay a fee for each license application submitted under
  458  this part, part II of chapter 408, and applicable rules. With
  459  the exception of state-operated licensed facilities, each
  460  facility licensed under this part shall pay to the agency, at
  461  the time of inspection, the following fees:
  462         (a) Inspection for licensure.—A fee shall be paid which is
  463  not less than $8 per hospital bed, nor more than $12 per
  464  hospital bed, except that the minimum fee shall be $400 per
  465  facility.
  466         (b) Inspection for lifesafety only.—A fee shall be paid
  467  which is not less than 75 cents per hospital bed, nor more than
  468  $1.50 per hospital bed, except that the minimum fee shall be $40
  469  per facility.
  470         Section 9. Subsections (2) and (4) of section 395.0193,
  471  Florida Statutes, are amended to read:
  472         395.0193 Licensed facilities; peer review; disciplinary
  473  powers; agency or partnership with physicians.—
  474         (2) Each licensed facility, as a condition of licensure,
  475  shall provide for peer review of physicians who deliver health
  476  care services at the facility. Each licensed facility shall
  477  develop written, binding procedures by which such peer review
  478  shall be conducted. Such procedures must shall include:
  479         (a) Mechanism for choosing the membership of the body or
  480  bodies that conduct peer review.
  481         (b) Adoption of rules of order for the peer review process.
  482         (c) Fair review of the case with the physician involved.
  483         (d) Mechanism to identify and avoid conflict of interest on
  484  the part of the peer review panel members.
  485         (e) Recording of agendas and minutes which do not contain
  486  confidential material, for review by the Division of Medical
  487  Quality Assurance of the department Health Quality Assurance of
  488  the agency.
  489         (f) Review, at least annually, of the peer review
  490  procedures by the governing board of the licensed facility.
  491         (g) Focus of the peer review process on review of
  492  professional practices at the facility to reduce morbidity and
  493  mortality and to improve patient care.
  494         (4) Pursuant to ss. 458.337 and 459.016, any disciplinary
  495  actions taken under subsection (3) shall be reported in writing
  496  to the Division of Medical Quality Assurance of the department
  497  Health Quality Assurance of the agency within 30 working days
  498  after its initial occurrence, regardless of the pendency of
  499  appeals to the governing board of the hospital. The notification
  500  shall identify the disciplined practitioner, the action taken,
  501  and the reason for such action. All final disciplinary actions
  502  taken under subsection (3), if different from those which were
  503  reported to the department agency within 30 days after the
  504  initial occurrence, shall be reported within 10 working days to
  505  the Division of Medical Quality Assurance of the department
  506  Health Quality Assurance of the agency in writing and shall
  507  specify the disciplinary action taken and the specific grounds
  508  therefor. The division shall review each report and determine
  509  whether it potentially involved conduct by the licensee that is
  510  subject to disciplinary action, in which case s. 456.073 shall
  511  apply. The reports are not subject to inspection under s.
  512  119.07(1) even if the division’s investigation results in a
  513  finding of probable cause.
  514         Section 10. Section 395.1023, Florida Statutes, is amended
  515  to read:
  516         395.1023 Child abuse and neglect cases; duties.—Each
  517  licensed facility shall adopt a protocol that, at a minimum,
  518  requires the facility to:
  519         (1) Incorporate a facility policy that every staff member
  520  has an affirmative duty to report, pursuant to chapter 39, any
  521  actual or suspected case of child abuse, abandonment, or
  522  neglect; and
  523         (2) In any case involving suspected child abuse,
  524  abandonment, or neglect, designate, at the request of the
  525  Department of Children and Family Services, a staff physician to
  526  act as a liaison between the hospital and the Department of
  527  Children and Family Services office which is investigating the
  528  suspected abuse, abandonment, or neglect, and the child
  529  protection team, as defined in s. 39.01, when the case is
  530  referred to such a team.
  531  
  532  Each general hospital and appropriate specialty hospital shall
  533  comply with the provisions of this section and shall notify the
  534  agency and the Department of Children and Family Services of its
  535  compliance by sending a copy of its policy to the agency and the
  536  Department of Children and Family Services as required by rule.
  537  The failure by a general hospital or appropriate specialty
  538  hospital to comply shall be punished by a fine not exceeding
  539  $1,000, to be fixed, imposed, and collected by the agency. Each
  540  day in violation is considered a separate offense.
  541         Section 11. Subsection (2) and paragraph (d) of subsection
  542  (3) of section 395.1041, Florida Statutes, are amended to read:
  543         395.1041 Access to emergency services and care.—
  544         (2) INVENTORY OF HOSPITAL EMERGENCY SERVICES.—The agency
  545  shall establish and maintain an inventory of hospitals with
  546  emergency services. The inventory shall list all services within
  547  the service capability of the hospital, and such services shall
  548  appear on the face of the hospital license. Each hospital having
  549  emergency services shall notify the agency of its service
  550  capability in the manner and form prescribed by the agency. The
  551  agency shall use the inventory to assist emergency medical
  552  services providers and others in locating appropriate emergency
  553  medical care. The inventory shall also be made available to the
  554  general public. On or before August 1, 1992, the agency shall
  555  request that each hospital identify the services which are
  556  within its service capability. On or before November 1, 1992,
  557  the agency shall notify each hospital of the service capability
  558  to be included in the inventory. The hospital has 15 days from
  559  the date of receipt to respond to the notice. By December 1,
  560  1992, the agency shall publish a final inventory. Each hospital
  561  shall reaffirm its service capability when its license is
  562  renewed and shall notify the agency of the addition of a new
  563  service or the termination of a service prior to a change in its
  564  service capability.
  565         (3) EMERGENCY SERVICES; DISCRIMINATION; LIABILITY OF
  566  FACILITY OR HEALTH CARE PERSONNEL.—
  567         (d)1. Every hospital shall ensure the provision of services
  568  within the service capability of the hospital, at all times,
  569  either directly or indirectly through an arrangement with
  570  another hospital, through an arrangement with one or more
  571  physicians, or as otherwise made through prior arrangements. A
  572  hospital may enter into an agreement with another hospital for
  573  purposes of meeting its service capability requirement, and
  574  appropriate compensation or other reasonable conditions may be
  575  negotiated for these backup services.
  576         2. If any arrangement requires the provision of emergency
  577  medical transportation, such arrangement must be made in
  578  consultation with the applicable provider and may not require
  579  the emergency medical service provider to provide transportation
  580  that is outside the routine service area of that provider or in
  581  a manner that impairs the ability of the emergency medical
  582  service provider to timely respond to prehospital emergency
  583  calls.
  584         3. A hospital is shall not be required to ensure service
  585  capability at all times as required in subparagraph 1. if, prior
  586  to the receiving of any patient needing such service capability,
  587  such hospital has demonstrated to the agency that it lacks the
  588  ability to ensure such capability and it has exhausted all
  589  reasonable efforts to ensure such capability through backup
  590  arrangements. In reviewing a hospital’s demonstration of lack of
  591  ability to ensure service capability, the agency shall consider
  592  factors relevant to the particular case, including the
  593  following:
  594         a. Number and proximity of hospitals with the same service
  595  capability.
  596         b. Number, type, credentials, and privileges of
  597  specialists.
  598         c. Frequency of procedures.
  599         d. Size of hospital.
  600         4. The agency shall publish proposed rules implementing a
  601  reasonable exemption procedure by November 1, 1992. Subparagraph
  602  1. shall become effective upon the effective date of said rules
  603  or January 31, 1993, whichever is earlier. For a period not to
  604  exceed 1 year from the effective date of subparagraph 1., a
  605  hospital requesting an exemption shall be deemed to be exempt
  606  from offering the service until the agency initially acts to
  607  deny or grant the original request. The agency has 45 days after
  608  from the date of receipt of the request to approve or deny the
  609  request. After the first year from the effective date of
  610  subparagraph 1., If the agency fails to initially act within
  611  that the time period, the hospital is deemed to be exempt from
  612  offering the service until the agency initially acts to deny the
  613  request.
  614         Section 12. Section 395.1046, Florida Statutes, is
  615  repealed.
  616         Section 13. Paragraph (e) of subsection (1) of section
  617  395.1055, Florida Statutes, is amended to read:
  618         395.1055 Rules and enforcement.—
  619         (1) The agency shall adopt rules pursuant to ss. 120.536(1)
  620  and 120.54 to implement the provisions of this part, which shall
  621  include reasonable and fair minimum standards for ensuring that:
  622         (e) Licensed facility beds conform to minimum space,
  623  equipment, and furnishings standards as specified by the agency,
  624  the Florida Building Code, and the Florida Fire Prevention Code
  625  department.
  626         Section 14. Paragraph (e) of subsection (4) of section
  627  395.3025, Florida Statutes, is amended to read:
  628         395.3025 Patient and personnel records; copies;
  629  examination.—
  630         (4) Patient records are confidential and must not be
  631  disclosed without the consent of the patient or his or her legal
  632  representative, but appropriate disclosure may be made without
  633  such consent to:
  634         (e) The department agency upon subpoena issued pursuant to
  635  s. 456.071., but The records obtained thereby must be used
  636  solely for the purpose of the agency, the department, and the
  637  appropriate professional board in an its investigation,
  638  prosecution, and appeal of disciplinary proceedings. If the
  639  department agency requests copies of the records, the facility
  640  shall charge a fee pursuant to this section no more than its
  641  actual copying costs, including reasonable staff time. The
  642  records must be sealed and must not be available to the public
  643  pursuant to s. 119.07(1) or any other statute providing access
  644  to records, nor may they be available to the public as part of
  645  the record of investigation for and prosecution in disciplinary
  646  proceedings made available to the public by the agency, the
  647  department, or the appropriate regulatory board. However, the
  648  department agency must make available, upon written request by a
  649  practitioner against whom probable cause has been found, any
  650  such records that form the basis of the determination of
  651  probable cause.
  652         Section 15. Subsection (2) of section 395.3036, Florida
  653  Statutes, is amended to read:
  654         395.3036 Confidentiality of records and meetings of
  655  corporations that lease public hospitals or other public health
  656  care facilities.—The records of a private corporation that
  657  leases a public hospital or other public health care facility
  658  are confidential and exempt from the provisions of s. 119.07(1)
  659  and s. 24(a), Art. I of the State Constitution, and the meetings
  660  of the governing board of a private corporation are exempt from
  661  s. 286.011 and s. 24(b), Art. I of the State Constitution when
  662  the public lessor complies with the public finance
  663  accountability provisions of s. 155.40(5) with respect to the
  664  transfer of any public funds to the private lessee and when the
  665  private lessee meets at least three of the five following
  666  criteria:
  667         (2) The public lessor and the private lessee do not
  668  commingle any of their funds in any account maintained by either
  669  of them, other than the payment of the rent and administrative
  670  fees or the transfer of funds pursuant to s. 155.40 subsection
  671  (2).
  672         Section 16. Section 395.3037, Florida Statutes, is
  673  repealed.
  674         Section 17. Paragraph (e) of subsection (2) of section
  675  395.602, Florida Statutes, is amended to read:
  676         395.602 Rural hospitals.—
  677         (2) DEFINITIONS.—As used in this part:
  678         (e) “Rural hospital” means an acute care hospital licensed
  679  under this chapter, having 100 or fewer licensed beds and an
  680  emergency room, which is:
  681         1. The sole provider within a county with a population
  682  density of no greater than 100 persons per square mile;
  683         2. An acute care hospital, in a county with a population
  684  density of no greater than 100 persons per square mile, which is
  685  at least 30 minutes of travel time, on normally traveled roads
  686  under normal traffic conditions, from any other acute care
  687  hospital within the same county;
  688         3. A hospital supported by a tax district or subdistrict
  689  whose boundaries encompass a population of 100 persons or fewer
  690  per square mile;
  691         4. A hospital in a constitutional charter county with a
  692  population of over 1 million persons that has imposed a local
  693  option health service tax pursuant to law and in an area that
  694  was directly impacted by a catastrophic event on August 24,
  695  1992, for which the Governor of Florida declared a state of
  696  emergency pursuant to chapter 125, and has 120 beds or less that
  697  serves an agricultural community with an emergency room
  698  utilization of no less than 20,000 visits and a Medicaid
  699  inpatient utilization rate greater than 15 percent;
  700         4.5. A hospital with a service area that has a population
  701  of 100 persons or fewer per square mile. As used in this
  702  subparagraph, the term “service area” means the fewest number of
  703  zip codes that account for 75 percent of the hospital’s
  704  discharges for the most recent 5-year period, based on
  705  information available from the hospital inpatient discharge
  706  database in the Florida Center for Health Information and Policy
  707  Analysis at the Agency for Health Care Administration; or
  708         5.6. A hospital designated as a critical access hospital,
  709  as defined in s. 408.07(15).
  710  
  711  Population densities used in this paragraph must be based upon
  712  the most recently completed United States census. A hospital
  713  that received funds under s. 409.9116 for a quarter beginning no
  714  later than July 1, 2002, is deemed to have been and shall
  715  continue to be a rural hospital from that date through June 30,
  716  2015, if the hospital continues to have 100 or fewer licensed
  717  beds and an emergency room, or meets the criteria of
  718  subparagraph 4. An acute care hospital that has not previously
  719  been designated as a rural hospital and that meets the criteria
  720  of this paragraph shall be granted such designation upon
  721  application, including supporting documentation to the Agency
  722  for Health Care Administration.
  723         Section 18. Subsections (8) and (16) of section 400.021,
  724  Florida Statutes, are amended to read:
  725         400.021 Definitions.—When used in this part, unless the
  726  context otherwise requires, the term:
  727         (8) “Geriatric outpatient clinic” means a site for
  728  providing outpatient health care to persons 60 years of age or
  729  older, which is staffed by a registered nurse or a physician
  730  assistant, or by a licensed practical nurse who is under the
  731  direct supervision of a registered nurse, an advanced registered
  732  nurse practitioner, a physician assistant, or a physician.
  733         (16) “Resident care plan” means a written plan developed,
  734  maintained, and reviewed not less than quarterly by a registered
  735  nurse, with participation from other facility staff and the
  736  resident or his or her designee or legal representative, which
  737  includes a comprehensive assessment of the needs of an
  738  individual resident; the type and frequency of services required
  739  to provide the necessary care for the resident to attain or
  740  maintain the highest practicable physical, mental, and
  741  psychosocial well-being; a listing of services provided within
  742  or outside the facility to meet those needs; and an explanation
  743  of service goals. The resident care plan must be signed by the
  744  director of nursing or another registered nurse employed by the
  745  facility to whom institutional responsibilities have been
  746  delegated and by the resident, the resident’s designee, or the
  747  resident’s legal representative. The facility may not use an
  748  agency or temporary registered nurse to satisfy the foregoing
  749  requirement and must document the institutional responsibilities
  750  that have been delegated to the registered nurse.
  751         Section 19. Subsection (1) of section 400.275, Florida
  752  Statutes, is amended to read:
  753         400.275 Agency duties.—
  754         (1) The agency shall ensure that each newly hired nursing
  755  home surveyor, as a part of basic training, is assigned full
  756  time to a licensed nursing home for at least 2 days within a 7
  757  day period to observe facility operations outside of the survey
  758  process before the surveyor begins survey responsibilities. Such
  759  observations may not be the sole basis of a deficiency citation
  760  against the facility. The agency may not assign an individual to
  761  be a member of a survey team for purposes of a survey,
  762  evaluation, or consultation visit at a nursing home facility in
  763  which the surveyor was an employee within the preceding 2 5
  764  years.
  765         Section 20. Subsection (6) of section 400.474, Florida
  766  Statutes, is amended, present subsection (7) is redesignated as
  767  subsection (8), and a new subsection (7) is added to that
  768  section, to read:
  769         400.474 Administrative penalties.—
  770         (6) The agency may deny, revoke, or suspend the license of
  771  a home health agency and shall impose a fine of $5,000 against a
  772  home health agency that:
  773         (a) Gives remuneration for staffing services to:
  774         1. Another home health agency with which it has formal or
  775  informal patient-referral transactions or arrangements; or
  776         2. A health services pool with which it has formal or
  777  informal patient-referral transactions or arrangements,
  778  
  779  unless the home health agency has activated its comprehensive
  780  emergency management plan in accordance with s. 400.492. This
  781  paragraph does not apply to a Medicare-certified home health
  782  agency that provides fair market value remuneration for staffing
  783  services to a non-Medicare-certified home health agency that is
  784  part of a continuing care facility licensed under chapter 651
  785  for providing services to its own residents if each resident
  786  receiving home health services pursuant to this arrangement
  787  attests in writing that he or she made a decision without
  788  influence from staff of the facility to select, from a list of
  789  Medicare-certified home health agencies provided by the
  790  facility, that Medicare-certified home health agency to provide
  791  the services.
  792         (b) Provides services to residents in an assisted living
  793  facility for which the home health agency does not receive fair
  794  market value remuneration.
  795         (c) Provides staffing to an assisted living facility for
  796  which the home health agency does not receive fair market value
  797  remuneration.
  798         (d) Fails to provide the agency, upon request, with copies
  799  of all contracts with assisted living facilities which were
  800  executed within 5 years before the request.
  801         (e) Gives remuneration to a case manager, discharge
  802  planner, facility-based staff member, or third-party vendor who
  803  is involved in the discharge planning process of a facility
  804  licensed under chapter 395, chapter 429, or this chapter from
  805  whom the home health agency receives referrals.
  806         (f) Fails to submit to the agency, within 15 days after the
  807  end of each calendar quarter, a written report that includes the
  808  following data based on data as it existed on the last day of
  809  the quarter:
  810         1. The number of insulin-dependent diabetic patients
  811  receiving insulin-injection services from the home health
  812  agency;
  813         2. The number of patients receiving both home health
  814  services from the home health agency and hospice services;
  815         3. The number of patients receiving home health services
  816  from that home health agency; and
  817         4. The names and license numbers of nurses whose primary
  818  job responsibility is to provide home health services to
  819  patients and who received remuneration from the home health
  820  agency in excess of $25,000 during the calendar quarter.
  821         (f)(g) Gives cash, or its equivalent, to a Medicare or
  822  Medicaid beneficiary.
  823         (g)(h) Has more than one medical director contract in
  824  effect at one time or more than one medical director contract
  825  and one contract with a physician-specialist whose services are
  826  mandated for the home health agency in order to qualify to
  827  participate in a federal or state health care program at one
  828  time.
  829         (h)(i) Gives remuneration to a physician without a medical
  830  director contract being in effect. The contract must:
  831         1. Be in writing and signed by both parties;
  832         2. Provide for remuneration that is at fair market value
  833  for an hourly rate, which must be supported by invoices
  834  submitted by the medical director describing the work performed,
  835  the dates on which that work was performed, and the duration of
  836  that work; and
  837         3. Be for a term of at least 1 year.
  838  
  839  The hourly rate specified in the contract may not be increased
  840  during the term of the contract. The home health agency may not
  841  execute a subsequent contract with that physician which has an
  842  increased hourly rate and covers any portion of the term that
  843  was in the original contract.
  844         (i)(j) Gives remuneration to:
  845         1. A physician, and the home health agency is in violation
  846  of paragraph (g) (h) or paragraph (h) (i);
  847         2. A member of the physician’s office staff; or
  848         3. An immediate family member of the physician,
  849  
  850  if the home health agency has received a patient referral in the
  851  preceding 12 months from that physician or physician’s office
  852  staff.
  853         (j)(k) Fails to provide to the agency, upon request, copies
  854  of all contracts with a medical director which were executed
  855  within 5 years before the request.
  856         (k)(l) Demonstrates a pattern of billing the Medicaid
  857  program for services to Medicaid recipients which are medically
  858  unnecessary as determined by a final order. A pattern may be
  859  demonstrated by a showing of at least two such medically
  860  unnecessary services within one Medicaid program integrity audit
  861  period.
  862  
  863  Nothing in paragraph (e) or paragraph (i) (j) shall be
  864  interpreted as applying to or precluding any discount,
  865  compensation, waiver of payment, or payment practice permitted
  866  by 42 U.S.C. s. 1320a-7(b) or regulations adopted thereunder,
  867  including 42 C.F.R. s. 1001.952 or s. 1395nn or regulations
  868  adopted thereunder.
  869         (7) Each home health agency shall submit to the agency,
  870  within 15 days after the end of each calendar quarter, a written
  871  report that includes the following data as it existed on the
  872  last day of the quarter:
  873         (a)The number of insulin-dependent diabetic patients
  874  receiving insulin-injection services from the home health
  875  agency.
  876         (b) The number of patients receiving home health services
  877  from the home health agency who are also receiving hospice
  878  services.
  879         (c)The number of patients receiving home health services
  880  from the home health agency.
  881         (d)The names and license numbers of nurses whose primary
  882  job responsibility is to provide home health services to
  883  patients and who received remuneration from the home health
  884  agency in excess of $25,000 during the calendar quarter.
  885         (e)The number of physicians who were paid by the home
  886  health agency for professional services of any kind during the
  887  calendar quarter, the amount paid to each physician, and the
  888  number of hours each physician spent performing those services.
  889  
  890  If the quarterly report is not received by the agency on or
  891  before the deadline, the agency shall impose a fine in the
  892  amount of $200 for each day that the report is late, which may
  893  not exceed $5,000 per quarter.
  894         Section 21. Section 400.484, Florida Statutes, is amended
  895  to read:
  896         400.484 Right of inspection; violations deficiencies;
  897  fines.—
  898         (1) In addition to the requirements of s. 408.811, the
  899  agency may make such inspections and investigations as are
  900  necessary in order to determine the state of compliance with
  901  this part, part II of chapter 408, and applicable rules.
  902         (2) The agency shall impose fines for various classes of
  903  violations deficiencies in accordance with the following
  904  schedule:
  905         (a) A class I violation is defined in s. 408.813 deficiency
  906  is any act, omission, or practice that results in a patient’s
  907  death, disablement, or permanent injury, or places a patient at
  908  imminent risk of death, disablement, or permanent injury. Upon
  909  finding a class I violation deficiency, the agency shall impose
  910  an administrative fine in the amount of $15,000 for each
  911  occurrence and each day that the violation deficiency exists.
  912         (b) A class II violation is defined in s. 408.813
  913  deficiency is any act, omission, or practice that has a direct
  914  adverse effect on the health, safety, or security of a patient.
  915  Upon finding a class II violation deficiency, the agency shall
  916  impose an administrative fine in the amount of $5,000 for each
  917  occurrence and each day that the violation deficiency exists.
  918         (c) A class III violation is defined in s. 408.813
  919  deficiency is any act, omission, or practice that has an
  920  indirect, adverse effect on the health, safety, or security of a
  921  patient. Upon finding an uncorrected or repeated class III
  922  violation deficiency, the agency shall impose an administrative
  923  fine not to exceed $1,000 for each occurrence and each day that
  924  the uncorrected or repeated violation deficiency exists.
  925         (d) A class IV violation is defined in s. 408.813
  926  deficiency is any act, omission, or practice related to required
  927  reports, forms, or documents which does not have the potential
  928  of negatively affecting patients. These violations are of a type
  929  that the agency determines do not threaten the health, safety,
  930  or security of patients. Upon finding an uncorrected or repeated
  931  class IV violation deficiency, the agency shall impose an
  932  administrative fine not to exceed $500 for each occurrence and
  933  each day that the uncorrected or repeated violation deficiency
  934  exists.
  935         (3) In addition to any other penalties imposed pursuant to
  936  this section or part, the agency may assess costs related to an
  937  investigation that results in a successful prosecution,
  938  excluding costs associated with an attorney’s time.
  939         Section 22. For the purpose of incorporating the amendment
  940  made by this act to section 400.509, Florida Statutes, in a
  941  reference thereto, paragraph (a) of subsection (6) of section
  942  400.506 is reenacted, present subsection (17) of that section is
  943  renumbered as subsection (18), and a new subsection (17) is
  944  added to that section, to read:
  945         400.506 Licensure of nurse registries; requirements;
  946  penalties.—
  947         (6)(a) A nurse registry may refer for contract in private
  948  residences registered nurses and licensed practical nurses
  949  registered and licensed under part I of chapter 464, certified
  950  nursing assistants certified under part II of chapter 464, home
  951  health aides who present documented proof of successful
  952  completion of the training required by rule of the agency, and
  953  companions or homemakers for the purposes of providing those
  954  services authorized under s. 400.509(1). A licensed nurse
  955  registry shall ensure that each certified nursing assistant
  956  referred for contract by the nurse registry and each home health
  957  aide referred for contract by the nurse registry is adequately
  958  trained to perform the tasks of a home health aide in the home
  959  setting. Each person referred by a nurse registry must provide
  960  current documentation that he or she is free from communicable
  961  diseases.
  962         (17) An administrator may manage only one nurse registry,
  963  except that an administrator may manage up to five registries if
  964  all five registries have identical controlling interests as
  965  defined in s. 408.803 and are located within one agency
  966  geographic service area or within an immediately contiguous
  967  county. An administrator shall designate, in writing, for each
  968  licensed entity, a qualified alternate administrator to serve
  969  during the administrator’s absence.
  970         Section 23. Subsection (1) of section 400.509, Florida
  971  Statutes, is amended to read:
  972         400.509 Registration of particular service providers exempt
  973  from licensure; certificate of registration; regulation of
  974  registrants.—
  975         (1) Any organization that provides companion services or
  976  homemaker services and does not provide a home health service to
  977  a person is exempt from licensure under this part. However, any
  978  organization that provides companion services or homemaker
  979  services must register with the agency. An organization under
  980  contract with the Agency for Persons with Disabilities which
  981  provides companion services only for persons with a
  982  developmental disability, as defined in s. 393.063, is exempt
  983  from registration.
  984         Section 24. Subsection (3) of section 400.601, Florida
  985  Statutes, is amended to read:
  986         400.601 Definitions.—As used in this part, the term:
  987         (3) “Hospice” means a centrally administered corporation or
  988  a limited liability company that provides providing a continuum
  989  of palliative and supportive care for the terminally ill patient
  990  and his or her family.
  991         Section 25. Paragraph (i) of subsection (1) and subsection
  992  (4) of section 400.606, Florida Statutes, are amended to read:
  993         400.606 License; application; renewal; conditional license
  994  or permit; certificate of need.—
  995         (1) In addition to the requirements of part II of chapter
  996  408, the initial application and change of ownership application
  997  must be accompanied by a plan for the delivery of home,
  998  residential, and homelike inpatient hospice services to
  999  terminally ill persons and their families. Such plan must
 1000  contain, but need not be limited to:
 1001         (i) The projected annual operating cost of the hospice.
 1002  
 1003  If the applicant is an existing licensed health care provider,
 1004  the application must be accompanied by a copy of the most recent
 1005  profit-loss statement and, if applicable, the most recent
 1006  licensure inspection report.
 1007         (4) A freestanding hospice facility that is primarily
 1008  engaged in providing inpatient and related services and that is
 1009  not otherwise licensed as a health care facility shall be
 1010  required to obtain a certificate of need. However, a
 1011  freestanding hospice facility that has with six or fewer beds is
 1012  shall not be required to comply with institutional standards
 1013  such as, but not limited to, standards requiring sprinkler
 1014  systems, emergency electrical systems, or special lavatory
 1015  devices.
 1016         Section 26. Section 400.915, Florida Statutes, is amended
 1017  to read:
 1018         400.915 Construction and renovation; requirements.—The
 1019  requirements for the construction or renovation of a PPEC center
 1020  shall comply with:
 1021         (1) The provisions of chapter 553, which pertain to
 1022  building construction standards, including plumbing, electrical
 1023  code, glass, manufactured buildings, accessibility for the
 1024  physically disabled;
 1025         (2) The provisions of s. 633.022 and applicable rules
 1026  pertaining to physical minimum standards for nonresidential
 1027  child care physical facilities in rule 10M-12.003, Florida
 1028  Administrative Code, Child Care Standards; and
 1029         (3) The standards or rules adopted pursuant to this part
 1030  and part II of chapter 408.
 1031         Section 27. Section 400.931, Florida Statutes, is amended
 1032  to read:
 1033         400.931 Application for license; fee; provisional license;
 1034  temporary permit.—
 1035         (1) In addition to the requirements of part II of chapter
 1036  408, the applicant must file with the application satisfactory
 1037  proof that the home medical equipment provider is in compliance
 1038  with this part and applicable rules, including:
 1039         (a) A report, by category, of the equipment to be provided,
 1040  indicating those offered either directly by the applicant or
 1041  through contractual arrangements with existing providers.
 1042  Categories of equipment include:
 1043         1. Respiratory modalities.
 1044         2. Ambulation aids.
 1045         3. Mobility aids.
 1046         4. Sickroom setup.
 1047         5. Disposables.
 1048         (b) A report, by category, of the services to be provided,
 1049  indicating those offered either directly by the applicant or
 1050  through contractual arrangements with existing providers.
 1051  Categories of services include:
 1052         1. Intake.
 1053         2. Equipment selection.
 1054         3. Delivery.
 1055         4. Setup and installation.
 1056         5. Patient training.
 1057         6. Ongoing service and maintenance.
 1058         7. Retrieval.
 1059         (c) A listing of those with whom the applicant contracts,
 1060  both the providers the applicant uses to provide equipment or
 1061  services to its consumers and the providers for whom the
 1062  applicant provides services or equipment.
 1063         (2) An applicant for initial licensure, change of
 1064  ownership, or license renewal to operate a licensed home medical
 1065  equipment provider at a location outside the state must submit
 1066  documentation of accreditation or an application for
 1067  accreditation from an accrediting organization that is
 1068  recognized by the agency. An applicant that has applied for
 1069  accreditation must provide proof of accreditation that is not
 1070  conditional or provisional within 120 days after the date the
 1071  agency receives the application for licensure or the application
 1072  shall be withdrawn from further consideration. Such
 1073  accreditation must be maintained by the home medical equipment
 1074  provider in order to maintain licensure. As an alternative to
 1075  submitting proof of financial ability to operate as required in
 1076  s. 408.810(8), the applicant may submit a $50,000 surety bond to
 1077  the agency.
 1078         (3) As specified in part II of chapter 408, the home
 1079  medical equipment provider must also obtain and maintain
 1080  professional and commercial liability insurance. Proof of
 1081  liability insurance, as defined in s. 624.605, must be submitted
 1082  with the application. The agency shall set the required amounts
 1083  of liability insurance by rule, but the required amount must not
 1084  be less than $250,000 per claim. In the case of contracted
 1085  services, it is required that the contractor have liability
 1086  insurance not less than $250,000 per claim.
 1087         (4) When a change of the general manager of a home medical
 1088  equipment provider occurs, the licensee must notify the agency
 1089  of the change within 45 days.
 1090         (5) In accordance with s. 408.805, an applicant or a
 1091  licensee shall pay a fee for each license application submitted
 1092  under this part, part II of chapter 408, and applicable rules.
 1093  The amount of the fee shall be established by rule and may not
 1094  exceed $300 per biennium. The agency shall set the fees in an
 1095  amount that is sufficient to cover its costs in carrying out its
 1096  responsibilities under this part. However, state, county, or
 1097  municipal governments applying for licenses under this part are
 1098  exempt from the payment of license fees.
 1099         (6) An applicant for initial licensure, renewal, or change
 1100  of ownership shall also pay an inspection fee not to exceed
 1101  $400, which shall be paid by all applicants except those not
 1102  subject to licensure inspection by the agency as described in s.
 1103  400.933.
 1104         Section 28. Section 400.967, Florida Statutes, is amended
 1105  to read:
 1106         400.967 Rules and classification of violations
 1107  deficiencies.—
 1108         (1) It is the intent of the Legislature that rules adopted
 1109  and enforced under this part and part II of chapter 408 include
 1110  criteria by which a reasonable and consistent quality of
 1111  resident care may be ensured, the results of such resident care
 1112  can be demonstrated, and safe and sanitary facilities can be
 1113  provided.
 1114         (2) Pursuant to the intention of the Legislature, the
 1115  agency, in consultation with the Agency for Persons with
 1116  Disabilities and the Department of Elderly Affairs, shall adopt
 1117  and enforce rules to administer this part and part II of chapter
 1118  408, which shall include reasonable and fair criteria governing:
 1119         (a) The location and construction of the facility;
 1120  including fire and life safety, plumbing, heating, cooling,
 1121  lighting, ventilation, and other housing conditions that ensure
 1122  the health, safety, and comfort of residents. The agency shall
 1123  establish standards for facilities and equipment to increase the
 1124  extent to which new facilities and a new wing or floor added to
 1125  an existing facility after July 1, 2000, are structurally
 1126  capable of serving as shelters only for residents, staff, and
 1127  families of residents and staff, and equipped to be self
 1128  supporting during and immediately following disasters. The
 1129  agency shall update or revise the criteria as the need arises.
 1130  All facilities must comply with those lifesafety code
 1131  requirements and building code standards applicable at the time
 1132  of approval of their construction plans. The agency may require
 1133  alterations to a building if it determines that an existing
 1134  condition constitutes a distinct hazard to life, health, or
 1135  safety. The agency shall adopt fair and reasonable rules setting
 1136  forth conditions under which existing facilities undergoing
 1137  additions, alterations, conversions, renovations, or repairs are
 1138  required to comply with the most recent updated or revised
 1139  standards.
 1140         (b) The number and qualifications of all personnel,
 1141  including management, medical nursing, and other personnel,
 1142  having responsibility for any part of the care given to
 1143  residents.
 1144         (c) All sanitary conditions within the facility and its
 1145  surroundings, including water supply, sewage disposal, food
 1146  handling, and general hygiene, which will ensure the health and
 1147  comfort of residents.
 1148         (d) The equipment essential to the health and welfare of
 1149  the residents.
 1150         (e) A uniform accounting system.
 1151         (f) The care, treatment, and maintenance of residents and
 1152  measurement of the quality and adequacy thereof.
 1153         (g) The preparation and annual update of a comprehensive
 1154  emergency management plan. The agency shall adopt rules
 1155  establishing minimum criteria for the plan after consultation
 1156  with the Division of Emergency Management. At a minimum, the
 1157  rules must provide for plan components that address emergency
 1158  evacuation transportation; adequate sheltering arrangements;
 1159  postdisaster activities, including emergency power, food, and
 1160  water; postdisaster transportation; supplies; staffing;
 1161  emergency equipment; individual identification of residents and
 1162  transfer of records; and responding to family inquiries. The
 1163  comprehensive emergency management plan is subject to review and
 1164  approval by the local emergency management agency. During its
 1165  review, the local emergency management agency shall ensure that
 1166  the following agencies, at a minimum, are given the opportunity
 1167  to review the plan: the Department of Elderly Affairs, the
 1168  Agency for Persons with Disabilities, the Agency for Health Care
 1169  Administration, and the Division of Emergency Management. Also,
 1170  appropriate volunteer organizations must be given the
 1171  opportunity to review the plan. The local emergency management
 1172  agency shall complete its review within 60 days and either
 1173  approve the plan or advise the facility of necessary revisions.
 1174         (h) The use of restraint and seclusion. Such rules must be
 1175  consistent with recognized best practices; prohibit inherently
 1176  dangerous restraint or seclusion procedures; establish
 1177  limitations on the use and duration of restraint and seclusion;
 1178  establish measures to ensure the safety of clients and staff
 1179  during an incident of restraint or seclusion; establish
 1180  procedures for staff to follow before, during, and after
 1181  incidents of restraint or seclusion, including individualized
 1182  plans for the use of restraints or seclusion in emergency
 1183  situations; establish professional qualifications of and
 1184  training for staff who may order or be engaged in the use of
 1185  restraint or seclusion; establish requirements for facility data
 1186  collection and reporting relating to the use of restraint and
 1187  seclusion; and establish procedures relating to the
 1188  documentation of the use of restraint or seclusion in the
 1189  client’s facility or program record.
 1190         (3) The agency shall adopt rules to provide that, when the
 1191  criteria established under this part and part II of chapter 408
 1192  are not met, such violations deficiencies shall be classified
 1193  according to the nature of the violation deficiency. The agency
 1194  shall indicate the classification on the face of the notice of
 1195  violation deficiencies as follows:
 1196         (a) A class I violation is defined in s. 408.813
 1197  deficiencies are those which the agency determines present an
 1198  imminent danger to the residents or guests of the facility or a
 1199  substantial probability that death or serious physical harm
 1200  would result therefrom. The condition or practice constituting a
 1201  class I violation must be abated or eliminated immediately,
 1202  unless a fixed period of time, as determined by the agency, is
 1203  required for correction. A class I violation deficiency is
 1204  subject to a civil penalty in an amount not less than $5,000 and
 1205  not exceeding $10,000 for each violation deficiency. A fine may
 1206  be levied notwithstanding the correction of the violation
 1207  deficiency.
 1208         (b) A class II violation is defined in s. 408.813
 1209  deficiencies are those which the agency determines have a direct
 1210  or immediate relationship to the health, safety, or security of
 1211  the facility residents, other than class I deficiencies. A class
 1212  II violation deficiency is subject to a civil penalty in an
 1213  amount not less than $1,000 and not exceeding $5,000 for each
 1214  violation deficiency. A citation for a class II violation
 1215  deficiency shall specify the time within which the violation
 1216  deficiency must be corrected. If a class II violation deficiency
 1217  is corrected within the time specified, no civil penalty shall
 1218  be imposed, unless it is a repeated offense.
 1219         (c) A class III violation is defined in s. 408.813
 1220  deficiencies are those which the agency determines to have an
 1221  indirect or potential relationship to the health, safety, or
 1222  security of the facility residents, other than class I or class
 1223  II deficiencies. A class III violation deficiency is subject to
 1224  a civil penalty of not less than $500 and not exceeding $1,000
 1225  for each violation deficiency. A citation for a class III
 1226  violation deficiency shall specify the time within which the
 1227  violation deficiency must be corrected. If a class III violation
 1228  deficiency is corrected within the time specified, no civil
 1229  penalty shall be imposed, unless it is a repeated offense.
 1230         (d)A class IV violation is defined in s. 408.813. Upon
 1231  finding an uncorrected or repeated class IV violation, the
 1232  agency shall impose an administrative fine not to exceed $500
 1233  for each occurrence and each day that the uncorrected or
 1234  repeated violation exists.
 1235         (4) The agency shall approve or disapprove the plans and
 1236  specifications within 60 days after receipt of the final plans
 1237  and specifications. The agency may be granted one 15-day
 1238  extension for the review period, if the secretary of the agency
 1239  so approves. If the agency fails to act within the specified
 1240  time, it is deemed to have approved the plans and
 1241  specifications. When the agency disapproves plans and
 1242  specifications, it must set forth in writing the reasons for
 1243  disapproval. Conferences and consultations may be provided as
 1244  necessary.
 1245         (5) The agency may charge an initial fee of $2,000 for
 1246  review of plans and construction on all projects, no part of
 1247  which is refundable. The agency may also collect a fee, not to
 1248  exceed 1 percent of the estimated construction cost or the
 1249  actual cost of review, whichever is less, for the portion of the
 1250  review which encompasses initial review through the initial
 1251  revised construction document review. The agency may collect its
 1252  actual costs on all subsequent portions of the review and
 1253  construction inspections. Initial fee payment must accompany the
 1254  initial submission of plans and specifications. Any subsequent
 1255  payment that is due is payable upon receipt of the invoice from
 1256  the agency. Notwithstanding any other provision of law, all
 1257  money received by the agency under this section shall be deemed
 1258  to be trust funds, to be held and applied solely for the
 1259  operations required under this section.
 1260         Section 29. Subsections (4) and (7) of section 400.9905,
 1261  Florida Statutes, are amended to read:
 1262         400.9905 Definitions.—
 1263         (4) “Clinic” means an entity at which health care services
 1264  are provided to individuals and which tenders charges for
 1265  reimbursement for such services, including a mobile clinic and a
 1266  portable health service or equipment provider. For purposes of
 1267  this part, the term does not include and the licensure
 1268  requirements of this part do not apply to:
 1269         (a) Entities licensed or registered by the state under
 1270  chapter 395; or entities licensed or registered by the state and
 1271  providing only health care services within the scope of services
 1272  authorized under their respective licenses granted under ss.
 1273  383.30-383.335, chapter 390, chapter 394, chapter 397, this
 1274  chapter except part X, chapter 429, chapter 463, chapter 465,
 1275  chapter 466, chapter 478, part I of chapter 483, chapter 484, or
 1276  chapter 651; end-stage renal disease providers authorized under
 1277  42 C.F.R. part 405, subpart U; or providers certified under 42
 1278  C.F.R. part 485, subpart B or subpart H; or any entity that
 1279  provides neonatal or pediatric hospital-based health care
 1280  services or other health care services by licensed practitioners
 1281  solely within a hospital licensed under chapter 395.
 1282         (b) Entities that own, directly or indirectly, entities
 1283  licensed or registered by the state pursuant to chapter 395; or
 1284  entities that own, directly or indirectly, entities licensed or
 1285  registered by the state and providing only health care services
 1286  within the scope of services authorized pursuant to their
 1287  respective licenses granted under ss. 383.30-383.335, chapter
 1288  390, chapter 394, chapter 397, this chapter except part X,
 1289  chapter 429, chapter 463, chapter 465, chapter 466, chapter 478,
 1290  part I of chapter 483, chapter 484, chapter 651; end-stage renal
 1291  disease providers authorized under 42 C.F.R. part 405, subpart
 1292  U; or providers certified under 42 C.F.R. part 485, subpart B or
 1293  subpart H; or any entity that provides neonatal or pediatric
 1294  hospital-based health care services by licensed practitioners
 1295  solely within a hospital licensed under chapter 395.
 1296         (c) Entities that are owned, directly or indirectly, by an
 1297  entity licensed or registered by the state pursuant to chapter
 1298  395; or entities that are owned, directly or indirectly, by an
 1299  entity licensed or registered by the state and providing only
 1300  health care services within the scope of services authorized
 1301  pursuant to their respective licenses granted under ss. 383.30
 1302  383.335, chapter 390, chapter 394, chapter 397, this chapter
 1303  except part X, chapter 429, chapter 463, chapter 465, chapter
 1304  466, chapter 478, part I of chapter 483, chapter 484, or chapter
 1305  651; end-stage renal disease providers authorized under 42
 1306  C.F.R. part 405, subpart U; or providers certified under 42
 1307  C.F.R. part 485, subpart B or subpart H; or any entity that
 1308  provides neonatal or pediatric hospital-based health care
 1309  services by licensed practitioners solely within a hospital
 1310  under chapter 395.
 1311         (d) Entities that are under common ownership, directly or
 1312  indirectly, with an entity licensed or registered by the state
 1313  pursuant to chapter 395; or entities that are under common
 1314  ownership, directly or indirectly, with an entity licensed or
 1315  registered by the state and providing only health care services
 1316  within the scope of services authorized pursuant to their
 1317  respective licenses granted under ss. 383.30-383.335, chapter
 1318  390, chapter 394, chapter 397, this chapter except part X,
 1319  chapter 429, chapter 463, chapter 465, chapter 466, chapter 478,
 1320  part I of chapter 483, chapter 484, or chapter 651; end-stage
 1321  renal disease providers authorized under 42 C.F.R. part 405,
 1322  subpart U; or providers certified under 42 C.F.R. part 485,
 1323  subpart B or subpart H; or any entity that provides neonatal or
 1324  pediatric hospital-based health care services by licensed
 1325  practitioners solely within a hospital licensed under chapter
 1326  395.
 1327         (e) An entity that is exempt from federal taxation under 26
 1328  U.S.C. s. 501(c)(3) or (4), an employee stock ownership plan
 1329  under 26 U.S.C. s. 409 that has a board of trustees not less
 1330  than two-thirds of which are Florida-licensed health care
 1331  practitioners and provides only physical therapy services under
 1332  physician orders, any community college or university clinic,
 1333  and any entity owned or operated by the federal or state
 1334  government, including agencies, subdivisions, or municipalities
 1335  thereof.
 1336         (f) A sole proprietorship, group practice, partnership, or
 1337  corporation that provides health care services by physicians
 1338  covered by s. 627.419, that is directly supervised by one or
 1339  more of such physicians, and that is wholly owned by one or more
 1340  of those physicians or by a physician and the spouse, parent,
 1341  child, or sibling of that physician.
 1342         (g) A sole proprietorship, group practice, partnership, or
 1343  corporation that provides health care services by licensed
 1344  health care practitioners under chapter 457, chapter 458,
 1345  chapter 459, chapter 460, chapter 461, chapter 462, chapter 463,
 1346  chapter 466, chapter 467, chapter 480, chapter 484, chapter 486,
 1347  chapter 490, chapter 491, or part I, part III, part X, part
 1348  XIII, or part XIV of chapter 468, or s. 464.012, which are
 1349  wholly owned by one or more licensed health care practitioners,
 1350  or the licensed health care practitioners set forth in this
 1351  paragraph and the spouse, parent, child, or sibling of a
 1352  licensed health care practitioner, so long as one of the owners
 1353  who is a licensed health care practitioner is supervising the
 1354  business activities and is legally responsible for the entity’s
 1355  compliance with all federal and state laws. However, a health
 1356  care practitioner may not supervise services beyond the scope of
 1357  the practitioner’s license, except that, for the purposes of
 1358  this part, a clinic owned by a licensee in s. 456.053(3)(b) that
 1359  provides only services authorized pursuant to s. 456.053(3)(b)
 1360  may be supervised by a licensee specified in s. 456.053(3)(b).
 1361         (h) Clinical facilities affiliated with an accredited
 1362  medical school at which training is provided for medical
 1363  students, residents, or fellows.
 1364         (i) Entities that provide only oncology or radiation
 1365  therapy services by physicians licensed under chapter 458 or
 1366  chapter 459 or entities that provide oncology or radiation
 1367  therapy services by physicians licensed under chapter 458 or
 1368  chapter 459 which are owned by a corporation whose shares are
 1369  publicly traded on a recognized stock exchange.
 1370         (j) Clinical facilities affiliated with a college of
 1371  chiropractic accredited by the Council on Chiropractic Education
 1372  at which training is provided for chiropractic students.
 1373         (k) Entities that provide licensed practitioners to staff
 1374  emergency departments or to deliver anesthesia services in
 1375  facilities licensed under chapter 395 and that derive at least
 1376  90 percent of their gross annual revenues from the provision of
 1377  such services. Entities claiming an exemption from licensure
 1378  under this paragraph must provide documentation demonstrating
 1379  compliance.
 1380         (l) Orthotic, or prosthetic, pediatric cardiology, or
 1381  perinatology clinical facilities or anesthesia clinical
 1382  facilities that are not otherwise exempt under paragraph (a) or
 1383  paragraph (k) and that are a publicly traded corporation or that
 1384  are wholly owned, directly or indirectly, by a publicly traded
 1385  corporation. As used in this paragraph, a publicly traded
 1386  corporation is a corporation that issues securities traded on an
 1387  exchange registered with the United States Securities and
 1388  Exchange Commission as a national securities exchange.
 1389         (m)Entities that are owned or controlled, directly or
 1390  indirectly, by a publicly traded entity with $100 million or
 1391  more, in the aggregate, in total annual revenues derived from
 1392  providing health care services by licensed health care
 1393  practitioners that are employed or contracted by an entity
 1394  described in this paragraph.
 1395         (n)Entities that are owned by a corporation that has $250
 1396  million or more in total annual sales of health care services
 1397  provided by licensed health care practitioners if one or more of
 1398  the owners of the entity is a health care practitioner who is
 1399  licensed in this state, is responsible for supervising the
 1400  business activities of the entity, and is legally responsible
 1401  for the entity’s compliance with state law for purposes of this
 1402  section.
 1403         (o)Entities that employ 50 or more health care
 1404  practitioners who are licensed under chapter 458 or chapter 459
 1405  if the billing for medical services is under a single corporate
 1406  tax identification number. The application for exemption under
 1407  this paragraph must contain information that includes the name,
 1408  residence address, business address, and telephone number of the
 1409  entity that owns the practice; a complete list of the names and
 1410  contact information of all the officers and directors of the
 1411  entity; the name, residence address, business address, and
 1412  medical license number of each health care practitioner who is
 1413  licensed to practice in this state and employed by the entity;
 1414  the corporate tax identification number of the entity seeking an
 1415  exemption; a listing of health care services to be provided by
 1416  the entity at the health care clinics owned or operated by the
 1417  entity; and a certified statement prepared by an independent
 1418  certified public accountant which states that the entity and the
 1419  health care clinics owned or operated by the entity have not
 1420  received payment for health care services under insurance
 1421  coverage for personal injury protection for the preceding year.
 1422  If the agency determines that an entity that is exempt under
 1423  this paragraph has received payments for medical services for
 1424  insurance coverage for personal injury protection, the agency
 1425  may deny or revoke the exemption from licensure under this
 1426  paragraph.
 1427         (7) “Portable health service or equipment provider” means
 1428  an entity that contracts with or employs persons to provide
 1429  portable health services at or equipment to multiple locations
 1430  performing treatment or diagnostic testing of individuals, that
 1431  bills third-party payors for those services, and that otherwise
 1432  meets the definition of a clinic in subsection (4).
 1433         Section 30. Paragraph (b) of subsection (1) and subsection
 1434  (4) of section 400.991, Florida Statutes, are amended to read:
 1435         400.991 License requirements; background screenings;
 1436  prohibitions.—
 1437         (1)
 1438         (b) Each mobile clinic must obtain a separate health care
 1439  clinic license and must provide to the agency, at least
 1440  quarterly, its projected street location to enable the agency to
 1441  locate and inspect such clinic. A portable health service or
 1442  equipment provider must obtain a health care clinic license for
 1443  a single administrative office and is not required to submit
 1444  quarterly projected street locations.
 1445         (4) In addition to the requirements of part II of chapter
 1446  408, the applicant must file with the application satisfactory
 1447  proof that the clinic is in compliance with this part and
 1448  applicable rules, including:
 1449         (a) A listing of services to be provided either directly by
 1450  the applicant or through contractual arrangements with existing
 1451  providers;
 1452         (b) The number and discipline of each professional staff
 1453  member to be employed; and
 1454         (c) Proof of financial ability to operate as required under
 1455  ss. s. 408.810(8) and 408.8065. As an alternative to submitting
 1456  proof of financial ability to operate as required under s.
 1457  408.810(8), the applicant may file a surety bond of at least
 1458  $500,000 which guarantees that the clinic will act in full
 1459  conformity with all legal requirements for operating a clinic,
 1460  payable to the agency. The agency may adopt rules to specify
 1461  related requirements for such surety bond.
 1462         Section 31. Paragraph (a) of subsection (2) of section
 1463  408.033, Florida Statutes, is amended to read:
 1464         408.033 Local and state health planning.—
 1465         (2) FUNDING.—
 1466         (a) The Legislature intends that the cost of local health
 1467  councils be borne by assessments on selected health care
 1468  facilities subject to facility licensure by the Agency for
 1469  Health Care Administration, including abortion clinics, assisted
 1470  living facilities, ambulatory surgical centers, birthing
 1471  centers, clinical laboratories except community nonprofit blood
 1472  banks and clinical laboratories operated by practitioners for
 1473  exclusive use regulated under s. 483.035, home health agencies,
 1474  hospices, hospitals, intermediate care facilities for the
 1475  developmentally disabled, nursing homes, health care clinics,
 1476  and multiphasic testing centers and by assessments on
 1477  organizations subject to certification by the agency pursuant to
 1478  chapter 641, part III, including health maintenance
 1479  organizations and prepaid health clinics. Fees assessed may be
 1480  collected prospectively at the time of licensure renewal and
 1481  prorated for the licensure period.
 1482         Section 32. Subsection (2) of section 408.034, Florida
 1483  Statutes, is amended to read:
 1484         408.034 Duties and responsibilities of agency; rules.—
 1485         (2) In the exercise of its authority to issue licenses to
 1486  health care facilities and health service providers, as provided
 1487  under chapters 393 and 395 and parts II, and IV, and VIII of
 1488  chapter 400, the agency may not issue a license to any health
 1489  care facility or health service provider that fails to receive a
 1490  certificate of need or an exemption for the licensed facility or
 1491  service.
 1492         Section 33. Paragraph (d) of subsection (1) of section
 1493  408.036, Florida Statutes, is amended to read:
 1494         408.036 Projects subject to review; exemptions.—
 1495         (1) APPLICABILITY.—Unless exempt under subsection (3), all
 1496  health-care-related projects, as described in paragraphs (a)
 1497  (g), are subject to review and must file an application for a
 1498  certificate of need with the agency. The agency is exclusively
 1499  responsible for determining whether a health-care-related
 1500  project is subject to review under ss. 408.031-408.045.
 1501         (d) The establishment of a hospice or hospice inpatient
 1502  facility, except as provided in s. 408.043.
 1503         Section 34. Paragraph (c) of subsection (1) of section
 1504  408.037, Florida Statutes, is amended to read:
 1505         408.037 Application content.—
 1506         (1) Except as provided in subsection (2) for a general
 1507  hospital, an application for a certificate of need must contain:
 1508         (c) An audited financial statement of the applicant or the
 1509  applicant’s parent corporation if audited financial statements
 1510  of the applicant do not exist. In an application submitted by an
 1511  existing health care facility, health maintenance organization,
 1512  or hospice, financial condition documentation must include, but
 1513  need not be limited to, a balance sheet and a profit-and-loss
 1514  statement of the 2 previous fiscal years’ operation.
 1515         Section 35. Subsection (2) of section 408.043, Florida
 1516  Statutes, is amended to read:
 1517         408.043 Special provisions.—
 1518         (2) HOSPICES.—When an application is made for a certificate
 1519  of need to establish or to expand a hospice, the need for such
 1520  hospice shall be determined on the basis of the need for and
 1521  availability of hospice services in the community. The formula
 1522  on which the certificate of need is based shall discourage
 1523  regional monopolies and promote competition. The inpatient
 1524  hospice care component of a hospice which is a freestanding
 1525  facility, or a part of a facility, which is primarily engaged in
 1526  providing inpatient care and related services and is not
 1527  licensed as a health care facility shall also be required to
 1528  obtain a certificate of need. Provision of hospice care by any
 1529  current provider of health care is a significant change in
 1530  service and therefore requires a certificate of need for such
 1531  services.
 1532         Section 36. Paragraph (a) of subsection (1) of section
 1533  408.061, Florida Statutes, is amended to read:
 1534         408.061 Data collection; uniform systems of financial
 1535  reporting; information relating to physician charges;
 1536  confidential information; immunity.—
 1537         (1) The agency shall require the submission by health care
 1538  facilities, health care providers, and health insurers of data
 1539  necessary to carry out the agency’s duties. Specifications for
 1540  data to be collected under this section shall be developed by
 1541  the agency with the assistance of technical advisory panels
 1542  including representatives of affected entities, consumers,
 1543  purchasers, and such other interested parties as may be
 1544  determined by the agency.
 1545         (a) Data submitted by health care facilities, including the
 1546  facilities as defined in chapter 395, shall include, but are not
 1547  limited to: case-mix data, patient admission and discharge data,
 1548  hospital emergency department data which shall include the
 1549  number of patients treated in the emergency department of a
 1550  licensed hospital reported by patient acuity level, data on
 1551  hospital-acquired infections as specified by rule, data on
 1552  complications as specified by rule, data on readmissions as
 1553  specified by rule, with patient and provider-specific
 1554  identifiers included, actual charge data by diagnostic groups,
 1555  financial data, accounting data, operating expenses, expenses
 1556  incurred for rendering services to patients who cannot or do not
 1557  pay, interest charges, depreciation expenses based on the
 1558  expected useful life of the property and equipment involved, and
 1559  demographic data. The agency shall adopt nationally recognized
 1560  risk adjustment methodologies or software consistent with the
 1561  standards of the Agency for Healthcare Research and Quality and
 1562  as selected by the agency for all data submitted as required by
 1563  this section. Data may be obtained from documents such as, but
 1564  not limited to: leases, contracts, debt instruments, itemized
 1565  patient bills, medical record abstracts, and related diagnostic
 1566  information. Reported data elements shall be reported
 1567  electronically and in accordance with rule 59E-7.012, Florida
 1568  Administrative Code. Data submitted shall be certified by the
 1569  chief executive officer or an appropriate and duly authorized
 1570  representative or employee of the licensed facility that the
 1571  information submitted is true and accurate.
 1572         Section 37. Subsection (43) of section 408.07, Florida
 1573  Statutes, is amended to read:
 1574         408.07 Definitions.—As used in this chapter, with the
 1575  exception of ss. 408.031-408.045, the term:
 1576         (43) “Rural hospital” means an acute care hospital licensed
 1577  under chapter 395, having 100 or fewer licensed beds and an
 1578  emergency room, and which is:
 1579         (a) The sole provider within a county with a population
 1580  density of no greater than 100 persons per square mile;
 1581         (b) An acute care hospital, in a county with a population
 1582  density of no greater than 100 persons per square mile, which is
 1583  at least 30 minutes of travel time, on normally traveled roads
 1584  under normal traffic conditions, from another acute care
 1585  hospital within the same county;
 1586         (c) A hospital supported by a tax district or subdistrict
 1587  whose boundaries encompass a population of 100 persons or fewer
 1588  per square mile;
 1589         (d) A hospital with a service area that has a population of
 1590  100 persons or fewer per square mile. As used in this paragraph,
 1591  the term “service area” means the fewest number of zip codes
 1592  that account for 75 percent of the hospital’s discharges for the
 1593  most recent 5-year period, based on information available from
 1594  the hospital inpatient discharge database in the Florida Center
 1595  for Health Information and Policy Analysis at the Agency for
 1596  Health Care Administration; or
 1597         (e) A critical access hospital.
 1598  
 1599  Population densities used in this subsection must be based upon
 1600  the most recently completed United States census. A hospital
 1601  that received funds under s. 409.9116 for a quarter beginning no
 1602  later than July 1, 2002, is deemed to have been and shall
 1603  continue to be a rural hospital from that date through June 30,
 1604  2015, if the hospital continues to have 100 or fewer licensed
 1605  beds and an emergency room, or meets the criteria of s.
 1606  395.602(2)(e)4. An acute care hospital that has not previously
 1607  been designated as a rural hospital and that meets the criteria
 1608  of this subsection shall be granted such designation upon
 1609  application, including supporting documentation, to the Agency
 1610  for Health Care Administration.
 1611         Section 38. Section 408.10, Florida Statutes, is amended to
 1612  read:
 1613         408.10 Consumer complaints.—The agency shall:
 1614         (1) publish and make available to the public a toll-free
 1615  telephone number for the purpose of handling consumer complaints
 1616  and shall serve as a liaison between consumer entities and other
 1617  private entities and governmental entities for the disposition
 1618  of problems identified by consumers of health care.
 1619         (2) Be empowered to investigate consumer complaints
 1620  relating to problems with health care facilities’ billing
 1621  practices and issue reports to be made public in any cases where
 1622  the agency determines the health care facility has engaged in
 1623  billing practices which are unreasonable and unfair to the
 1624  consumer.
 1625         Section 39. Effective May 1, 2012, subsection (15) is added
 1626  to section 408.7056, Florida Statutes, to read:
 1627         408.7056 Subscriber Assistance Program.—
 1628         (15) This section applies only to prepaid health clinics
 1629  certified under chapter 641, Florida Healthy Kids health plans,
 1630  and health plans that meet the requirements of 45 C.F.R.
 1631  147.140.
 1632         Section 40. Subsection (11) of section 408.802, Florida
 1633  Statutes, is repealed.
 1634         Section 41. Subsection (3) is added to section 408.804,
 1635  Florida Statutes, to read:
 1636         408.804 License required; display.—
 1637         (3) Any person who knowingly alters, defaces, or falsifies
 1638  a license certificate issued by the agency, or causes or
 1639  procures any person to commit such an offense, commits a
 1640  misdemeanor of the second degree, punishable as provided in s.
 1641  775.082 or s. 775.083. Any licensee or provider who displays an
 1642  altered, defaced, or falsified license certificate is subject to
 1643  the penalties set forth in s. 408.815 and an administrative fine
 1644  of $1,000 for each day of illegal display.
 1645         Section 42. Paragraph (d) of subsection (2) of section
 1646  408.806, Florida Statutes, is amended, and paragraph (e) is
 1647  added to that subsection, to read:
 1648         408.806 License application process.—
 1649         (2)
 1650         (d) The agency shall notify the licensee by mail or
 1651  electronically at least 90 days before the expiration of a
 1652  license that a renewal license is necessary to continue
 1653  operation. The licensee’s failure to timely file submit a
 1654  renewal application and license application fee with the agency
 1655  shall result in a $50 per day late fee charged to the licensee
 1656  by the agency; however, the aggregate amount of the late fee may
 1657  not exceed 50 percent of the licensure fee or $500, whichever is
 1658  less. The agency shall provide a courtesy notice to the licensee
 1659  by United States mail, electronically, or by any other manner at
 1660  its address of record or mailing address, if provided, at least
 1661  90 days before the expiration of a license. This courtesy notice
 1662  must inform the licensee of the expiration of the license. If
 1663  the agency does not provide the courtesy notice or the licensee
 1664  does not receive the courtesy notice, the licensee continues to
 1665  be legally obligated to timely file the renewal application and
 1666  license application fee with the agency and is not excused from
 1667  the payment of a late fee. If an application is received after
 1668  the required filing date and exhibits a hand-canceled postmark
 1669  obtained from a United States post office dated on or before the
 1670  required filing date, no fine will be levied.
 1671         (e) The applicant must pay the late fee before a late
 1672  application is considered complete and failure to pay the late
 1673  fee is considered an omission from the application for licensure
 1674  pursuant to paragraph (3)(b).
 1675         Section 43. Paragraph (b) of subsection (1) of section
 1676  408.8065, Florida Statutes, is amended to read:
 1677         408.8065 Additional licensure requirements for home health
 1678  agencies, home medical equipment providers, and health care
 1679  clinics.—
 1680         (1) An applicant for initial licensure, or initial
 1681  licensure due to a change of ownership, as a home health agency,
 1682  home medical equipment provider, or health care clinic shall:
 1683         (b) Submit projected pro forma financial statements,
 1684  including a balance sheet, income and expense statement, and a
 1685  statement of cash flows for the first 2 years of operation which
 1686  provide evidence that the applicant has sufficient assets,
 1687  credit, and projected revenues to cover liabilities and
 1688  expenses.
 1689  
 1690  All documents required under this subsection must be prepared in
 1691  accordance with generally accepted accounting principles and may
 1692  be in a compilation form. The financial statements must be
 1693  signed by a certified public accountant.
 1694         Section 44. Section 408.809, Florida Statutes, is amended
 1695  to read:
 1696         408.809 Background screening; prohibited offenses.—
 1697         (1) Level 2 background screening pursuant to chapter 435
 1698  must be conducted through the agency on each of the following
 1699  persons, who are considered employees for the purposes of
 1700  conducting screening under chapter 435:
 1701         (a) The licensee, if an individual.
 1702         (b) The administrator or a similarly titled person who is
 1703  responsible for the day-to-day operation of the provider.
 1704         (c) The financial officer or similarly titled individual
 1705  who is responsible for the financial operation of the licensee
 1706  or provider.
 1707         (d) Any person who is a controlling interest if the agency
 1708  has reason to believe that such person has been convicted of any
 1709  offense prohibited by s. 435.04. For each controlling interest
 1710  who has been convicted of any such offense, the licensee shall
 1711  submit to the agency a description and explanation of the
 1712  conviction at the time of license application.
 1713         (e) Any person, as required by authorizing statutes,
 1714  seeking employment with a licensee or provider who is expected
 1715  to, or whose responsibilities may require him or her to, provide
 1716  personal care or services directly to clients or have access to
 1717  client funds, personal property, or living areas; and any
 1718  person, as required by authorizing statutes, contracting with a
 1719  licensee or provider whose responsibilities require him or her
 1720  to provide personal care or personal services directly to
 1721  clients. Evidence of contractor screening may be retained by the
 1722  contractor’s employer or the licensee.
 1723         (2) Every 5 years following his or her licensure,
 1724  employment, or entry into a contract in a capacity that under
 1725  subsection (1) would require level 2 background screening under
 1726  chapter 435, each such person must submit to level 2 background
 1727  rescreening as a condition of retaining such license or
 1728  continuing in such employment or contractual status. For any
 1729  such rescreening, the agency shall request the Department of Law
 1730  Enforcement to forward the person’s fingerprints to the Federal
 1731  Bureau of Investigation for a national criminal history record
 1732  check. If the fingerprints of such a person are not retained by
 1733  the Department of Law Enforcement under s. 943.05(2)(g), the
 1734  person must file a complete set of fingerprints with the agency
 1735  and the agency shall forward the fingerprints to the Department
 1736  of Law Enforcement for state processing, and the Department of
 1737  Law Enforcement shall forward the fingerprints to the Federal
 1738  Bureau of Investigation for a national criminal history record
 1739  check. The fingerprints may be retained by the Department of Law
 1740  Enforcement under s. 943.05(2)(g). The cost of the state and
 1741  national criminal history records checks required by level 2
 1742  screening may be borne by the licensee or the person
 1743  fingerprinted. Proof of compliance with level 2 screening
 1744  standards submitted within the previous 5 years to meet any
 1745  provider or professional licensure requirements of the Agency,
 1746  the Department of Health, the Agency for Persons with
 1747  Disabilities, the Department of Children and Family Services,
 1748  the Department of Elderly Affairs, or the Department of
 1749  Financial Services for an applicant for a certificate of
 1750  authority or provisional certificate of authority to operate a
 1751  continuing care retirement community under chapter 651 satisfies
 1752  the requirements of this section if the screening standards and
 1753  disqualifying offenses are equivalent to those specified in s.
 1754  453.04 and this section, and the person subject to screening has
 1755  not been unemployed for more than 90 days and such proof is
 1756  accompanied, under penalty of perjury, by an affidavit of
 1757  compliance with the provisions of chapter 435 and this section
 1758  using forms provided by the agency.
 1759         (3) All fingerprints must be provided in electronic format.
 1760  Screening results shall be reviewed by the agency with respect
 1761  to the offenses specified in s. 435.04 and this section, and the
 1762  qualifying or disqualifying status of the person named in the
 1763  request shall be maintained in a database. The qualifying or
 1764  disqualifying status of the person named in the request shall be
 1765  posted on a secure website for retrieval by the licensee or
 1766  designated agent on the licensee’s behalf.
 1767         (4) In addition to the offenses listed in s. 435.04, all
 1768  persons required to undergo background screening pursuant to
 1769  this part or authorizing statutes must not have an arrest
 1770  awaiting final disposition for, must not have been found guilty
 1771  of, regardless of adjudication, or entered a plea of nolo
 1772  contendere or guilty to, and must not have been adjudicated
 1773  delinquent and the record not have been sealed or expunged for
 1774  any of the following offenses or any similar offense of another
 1775  jurisdiction:
 1776         (a) Any authorizing statutes, if the offense was a felony.
 1777         (b) This chapter, if the offense was a felony.
 1778         (c) Section 409.920, relating to Medicaid provider fraud.
 1779         (d) Section 409.9201, relating to Medicaid fraud.
 1780         (e) Section 741.28, relating to domestic violence.
 1781         (f) Section 817.034, relating to fraudulent acts through
 1782  mail, wire, radio, electromagnetic, photoelectronic, or
 1783  photooptical systems.
 1784         (g) Section 817.234, relating to false and fraudulent
 1785  insurance claims.
 1786         (h) Section 817.505, relating to patient brokering.
 1787         (i) Section 817.568, relating to criminal use of personal
 1788  identification information.
 1789         (j) Section 817.60, relating to obtaining a credit card
 1790  through fraudulent means.
 1791         (k) Section 817.61, relating to fraudulent use of credit
 1792  cards, if the offense was a felony.
 1793         (l) Section 831.01, relating to forgery.
 1794         (m) Section 831.02, relating to uttering forged
 1795  instruments.
 1796         (n) Section 831.07, relating to forging bank bills, checks,
 1797  drafts, or promissory notes.
 1798         (o) Section 831.09, relating to uttering forged bank bills,
 1799  checks, drafts, or promissory notes.
 1800         (p) Section 831.30, relating to fraud in obtaining
 1801  medicinal drugs.
 1802         (q) Section 831.31, relating to the sale, manufacture,
 1803  delivery, or possession with the intent to sell, manufacture, or
 1804  deliver any counterfeit controlled substance, if the offense was
 1805  a felony.
 1806         (5) A person who serves as a controlling interest of, is
 1807  employed by, or contracts with a licensee on July 31, 2010, who
 1808  has been screened and qualified according to standards specified
 1809  in s. 435.03 or s. 435.04 must be rescreened by July 31, 2015,
 1810  in accordance with the schedule provided in paragraphs (a)-(c).
 1811  The agency may adopt rules to establish a schedule to stagger
 1812  the implementation of the required rescreening over the 5-year
 1813  period, beginning July 31, 2010, through July 31, 2015. If, upon
 1814  rescreening, such person has a disqualifying offense that was
 1815  not a disqualifying offense at the time of the last screening,
 1816  but is a current disqualifying offense and was committed before
 1817  the last screening, he or she may apply for an exemption from
 1818  the appropriate licensing agency and, if agreed to by the
 1819  employer, may continue to perform his or her duties until the
 1820  licensing agency renders a decision on the application for
 1821  exemption if the person is eligible to apply for an exemption
 1822  and the exemption request is received by the agency within 30
 1823  days after receipt of the rescreening results by the person. The
 1824  rescreening schedule shall be as follows:
 1825         (a)Individuals whose last screening was conducted before
 1826  December 31, 2003, must be rescreened by July 31, 2013.
 1827         (b)Individuals whose last screening was conducted between
 1828  January 1, 2004, through December 31, 2007, must be rescreened
 1829  by July 31, 2014.
 1830         (c)Individuals whose last screening was conducted between
 1831  January 1, 2008, through July 31, 2010, must be rescreened by
 1832  July 31, 2015.
 1833         (6)(5) The costs associated with obtaining the required
 1834  screening must be borne by the licensee or the person subject to
 1835  screening. Licensees may reimburse persons for these costs. The
 1836  Department of Law Enforcement shall charge the agency for
 1837  screening pursuant to s. 943.053(3). The agency shall establish
 1838  a schedule of fees to cover the costs of screening.
 1839         (7)(6)(a) As provided in chapter 435, the agency may grant
 1840  an exemption from disqualification to a person who is subject to
 1841  this section and who:
 1842         1. Does not have an active professional license or
 1843  certification from the Department of Health; or
 1844         2. Has an active professional license or certification from
 1845  the Department of Health but is not providing a service within
 1846  the scope of that license or certification.
 1847         (b) As provided in chapter 435, the appropriate regulatory
 1848  board within the Department of Health, or the department itself
 1849  if there is no board, may grant an exemption from
 1850  disqualification to a person who is subject to this section and
 1851  who has received a professional license or certification from
 1852  the Department of Health or a regulatory board within that
 1853  department and that person is providing a service within the
 1854  scope of his or her licensed or certified practice.
 1855         (8)(7) The agency and the Department of Health may adopt
 1856  rules pursuant to ss. 120.536(1) and 120.54 to implement this
 1857  section, chapter 435, and authorizing statutes requiring
 1858  background screening and to implement and adopt criteria
 1859  relating to retaining fingerprints pursuant to s. 943.05(2).
 1860         (9)(8) There is no unemployment compensation or other
 1861  monetary liability on the part of, and no cause of action for
 1862  damages arising against, an employer that, upon notice of a
 1863  disqualifying offense listed under chapter 435 or this section,
 1864  terminates the person against whom the report was issued,
 1865  whether or not that person has filed for an exemption with the
 1866  Department of Health or the agency.
 1867         Section 45. Subsection (9) of section 408.810, Florida
 1868  Statutes, is amended to read:
 1869         408.810 Minimum licensure requirements.—In addition to the
 1870  licensure requirements specified in this part, authorizing
 1871  statutes, and applicable rules, each applicant and licensee must
 1872  comply with the requirements of this section in order to obtain
 1873  and maintain a license.
 1874         (9) A controlling interest may not withhold from the agency
 1875  any evidence of financial instability, including, but not
 1876  limited to, checks returned due to insufficient funds,
 1877  delinquent accounts, nonpayment of withholding taxes, unpaid
 1878  utility expenses, nonpayment for essential services, or adverse
 1879  court action concerning the financial viability of the provider
 1880  or any other provider licensed under this part that is under the
 1881  control of the controlling interest. A controlling interest
 1882  shall notify the agency within 10 days after a court action to
 1883  initiate bankruptcy, foreclosure, or eviction proceedings
 1884  concerning the provider in which the controlling interest is a
 1885  petitioner or defendant. Any person who violates this subsection
 1886  commits a misdemeanor of the second degree, punishable as
 1887  provided in s. 775.082 or s. 775.083. Each day of continuing
 1888  violation is a separate offense.
 1889         Section 46. Subsection (3) is added to section 408.813,
 1890  Florida Statutes, to read:
 1891         408.813 Administrative fines; violations.—As a penalty for
 1892  any violation of this part, authorizing statutes, or applicable
 1893  rules, the agency may impose an administrative fine.
 1894         (3) The agency may impose an administrative fine for a
 1895  violation that is not designated as a class I, class II, class
 1896  III, or class IV violation. Unless otherwise specified by law,
 1897  the amount of the fine may not exceed $500 for each violation.
 1898  Unclassified violations include:
 1899         (a)Violating any term or condition of a license.
 1900         (b)Violating any provision of this part, authorizing
 1901  statutes, or applicable rules.
 1902         (c)Exceeding licensed capacity.
 1903         (d)Providing services beyond the scope of the license.
 1904         (e)Violating a moratorium imposed pursuant to s. 408.814.
 1905         Section 47. Paragraph (a) of subsection (37) of section
 1906  409.912, Florida Statutes, is amended to read:
 1907         409.912 Cost-effective purchasing of health care.—The
 1908  agency shall purchase goods and services for Medicaid recipients
 1909  in the most cost-effective manner consistent with the delivery
 1910  of quality medical care. To ensure that medical services are
 1911  effectively utilized, the agency may, in any case, require a
 1912  confirmation or second physician’s opinion of the correct
 1913  diagnosis for purposes of authorizing future services under the
 1914  Medicaid program. This section does not restrict access to
 1915  emergency services or poststabilization care services as defined
 1916  in 42 C.F.R. part 438.114. Such confirmation or second opinion
 1917  shall be rendered in a manner approved by the agency. The agency
 1918  shall maximize the use of prepaid per capita and prepaid
 1919  aggregate fixed-sum basis services when appropriate and other
 1920  alternative service delivery and reimbursement methodologies,
 1921  including competitive bidding pursuant to s. 287.057, designed
 1922  to facilitate the cost-effective purchase of a case-managed
 1923  continuum of care. The agency shall also require providers to
 1924  minimize the exposure of recipients to the need for acute
 1925  inpatient, custodial, and other institutional care and the
 1926  inappropriate or unnecessary use of high-cost services. The
 1927  agency shall contract with a vendor to monitor and evaluate the
 1928  clinical practice patterns of providers in order to identify
 1929  trends that are outside the normal practice patterns of a
 1930  provider’s professional peers or the national guidelines of a
 1931  provider’s professional association. The vendor must be able to
 1932  provide information and counseling to a provider whose practice
 1933  patterns are outside the norms, in consultation with the agency,
 1934  to improve patient care and reduce inappropriate utilization.
 1935  The agency may mandate prior authorization, drug therapy
 1936  management, or disease management participation for certain
 1937  populations of Medicaid beneficiaries, certain drug classes, or
 1938  particular drugs to prevent fraud, abuse, overuse, and possible
 1939  dangerous drug interactions. The Pharmaceutical and Therapeutics
 1940  Committee shall make recommendations to the agency on drugs for
 1941  which prior authorization is required. The agency shall inform
 1942  the Pharmaceutical and Therapeutics Committee of its decisions
 1943  regarding drugs subject to prior authorization. The agency is
 1944  authorized to limit the entities it contracts with or enrolls as
 1945  Medicaid providers by developing a provider network through
 1946  provider credentialing. The agency may competitively bid single
 1947  source-provider contracts if procurement of goods or services
 1948  results in demonstrated cost savings to the state without
 1949  limiting access to care. The agency may limit its network based
 1950  on the assessment of beneficiary access to care, provider
 1951  availability, provider quality standards, time and distance
 1952  standards for access to care, the cultural competence of the
 1953  provider network, demographic characteristics of Medicaid
 1954  beneficiaries, practice and provider-to-beneficiary standards,
 1955  appointment wait times, beneficiary use of services, provider
 1956  turnover, provider profiling, provider licensure history,
 1957  previous program integrity investigations and findings, peer
 1958  review, provider Medicaid policy and billing compliance records,
 1959  clinical and medical record audits, and other factors. Providers
 1960  are not entitled to enrollment in the Medicaid provider network.
 1961  The agency shall determine instances in which allowing Medicaid
 1962  beneficiaries to purchase durable medical equipment and other
 1963  goods is less expensive to the Medicaid program than long-term
 1964  rental of the equipment or goods. The agency may establish rules
 1965  to facilitate purchases in lieu of long-term rentals in order to
 1966  protect against fraud and abuse in the Medicaid program as
 1967  defined in s. 409.913. The agency may seek federal waivers
 1968  necessary to administer these policies.
 1969         (37)(a) The agency shall implement a Medicaid prescribed
 1970  drug spending-control program that includes the following
 1971  components:
 1972         1. A Medicaid preferred drug list, which shall be a listing
 1973  of cost-effective therapeutic options recommended by the
 1974  Medicaid Pharmacy and Therapeutics Committee established
 1975  pursuant to s. 409.91195 and adopted by the agency for each
 1976  therapeutic class on the preferred drug list. At the discretion
 1977  of the committee, and when feasible, the preferred drug list
 1978  should include at least two products in a therapeutic class. The
 1979  agency may post the preferred drug list and updates to the list
 1980  on an Internet website without following the rulemaking
 1981  procedures of chapter 120. Antiretroviral agents are excluded
 1982  from the preferred drug list. The agency shall also limit the
 1983  amount of a prescribed drug dispensed to no more than a 34-day
 1984  supply unless the drug products’ smallest marketed package is
 1985  greater than a 34-day supply, or the drug is determined by the
 1986  agency to be a maintenance drug in which case a 100-day maximum
 1987  supply may be authorized. The agency may seek any federal
 1988  waivers necessary to implement these cost-control programs and
 1989  to continue participation in the federal Medicaid rebate
 1990  program, or alternatively to negotiate state-only manufacturer
 1991  rebates. The agency may adopt rules to administer this
 1992  subparagraph. The agency shall continue to provide unlimited
 1993  contraceptive drugs and items. The agency must establish
 1994  procedures to ensure that:
 1995         a. There is a response to a request for prior consultation
 1996  by telephone or other telecommunication device within 24 hours
 1997  after receipt of a request for prior consultation; and
 1998         b. A 72-hour supply of the drug prescribed is provided in
 1999  an emergency or when the agency does not provide a response
 2000  within 24 hours as required by sub-subparagraph a.
 2001         2. Reimbursement to pharmacies for Medicaid prescribed
 2002  drugs shall be set at the lowest of: the average wholesale price
 2003  (AWP) minus 16.4 percent, the wholesaler acquisition cost (WAC)
 2004  plus 1.5 percent, the federal upper limit (FUL), the state
 2005  maximum allowable cost (SMAC), or the usual and customary (UAC)
 2006  charge billed by the provider.
 2007         3. The agency shall develop and implement a process for
 2008  managing the drug therapies of Medicaid recipients who are using
 2009  significant numbers of prescribed drugs each month. The
 2010  management process may include, but is not limited to,
 2011  comprehensive, physician-directed medical-record reviews, claims
 2012  analyses, and case evaluations to determine the medical
 2013  necessity and appropriateness of a patient’s treatment plan and
 2014  drug therapies. The agency may contract with a private
 2015  organization to provide drug-program-management services. The
 2016  Medicaid drug benefit management program shall include
 2017  initiatives to manage drug therapies for HIV/AIDS patients,
 2018  patients using 20 or more unique prescriptions in a 180-day
 2019  period, and the top 1,000 patients in annual spending. The
 2020  agency shall enroll any Medicaid recipient in the drug benefit
 2021  management program if he or she meets the specifications of this
 2022  provision and is not enrolled in a Medicaid health maintenance
 2023  organization.
 2024         4. The agency may limit the size of its pharmacy network
 2025  based on need, competitive bidding, price negotiations,
 2026  credentialing, or similar criteria. The agency shall give
 2027  special consideration to rural areas in determining the size and
 2028  location of pharmacies included in the Medicaid pharmacy
 2029  network. A pharmacy credentialing process may include criteria
 2030  such as a pharmacy’s full-service status, location, size,
 2031  patient educational programs, patient consultation, disease
 2032  management services, and other characteristics. The agency may
 2033  impose a moratorium on Medicaid pharmacy enrollment if it is
 2034  determined that it has a sufficient number of Medicaid
 2035  participating providers. The agency must allow dispensing
 2036  practitioners to participate as a part of the Medicaid pharmacy
 2037  network regardless of the practitioner’s proximity to any other
 2038  entity that is dispensing prescription drugs under the Medicaid
 2039  program. A dispensing practitioner must meet all credentialing
 2040  requirements applicable to his or her practice, as determined by
 2041  the agency.
 2042         5. The agency shall develop and implement a program that
 2043  requires Medicaid practitioners who prescribe drugs to use a
 2044  counterfeit-proof prescription pad for Medicaid prescriptions.
 2045  The agency shall require the use of standardized counterfeit
 2046  proof prescription pads by Medicaid-participating prescribers or
 2047  prescribers who write prescriptions for Medicaid recipients. The
 2048  agency may implement the program in targeted geographic areas or
 2049  statewide.
 2050         6. The agency may enter into arrangements that require
 2051  manufacturers of generic drugs prescribed to Medicaid recipients
 2052  to provide rebates of at least 15.1 percent of the average
 2053  manufacturer price for the manufacturer’s generic products.
 2054  These arrangements shall require that if a generic-drug
 2055  manufacturer pays federal rebates for Medicaid-reimbursed drugs
 2056  at a level below 15.1 percent, the manufacturer must provide a
 2057  supplemental rebate to the state in an amount necessary to
 2058  achieve a 15.1-percent rebate level.
 2059         7. The agency may establish a preferred drug list as
 2060  described in this subsection, and, pursuant to the establishment
 2061  of such preferred drug list, negotiate supplemental rebates from
 2062  manufacturers that are in addition to those required by Title
 2063  XIX of the Social Security Act and at no less than 14 percent of
 2064  the average manufacturer price as defined in 42 U.S.C. s. 1936
 2065  on the last day of a quarter unless the federal or supplemental
 2066  rebate, or both, equals or exceeds 29 percent. There is no upper
 2067  limit on the supplemental rebates the agency may negotiate. The
 2068  agency may determine that specific products, brand-name or
 2069  generic, are competitive at lower rebate percentages. Agreement
 2070  to pay the minimum supplemental rebate percentage guarantees a
 2071  manufacturer that the Medicaid Pharmaceutical and Therapeutics
 2072  Committee will consider a product for inclusion on the preferred
 2073  drug list. However, a pharmaceutical manufacturer is not
 2074  guaranteed placement on the preferred drug list by simply paying
 2075  the minimum supplemental rebate. Agency decisions will be made
 2076  on the clinical efficacy of a drug and recommendations of the
 2077  Medicaid Pharmaceutical and Therapeutics Committee, as well as
 2078  the price of competing products minus federal and state rebates.
 2079  The agency may contract with an outside agency or contractor to
 2080  conduct negotiations for supplemental rebates. For the purposes
 2081  of this section, the term “supplemental rebates” means cash
 2082  rebates. Value-added programs as a substitution for supplemental
 2083  rebates are prohibited. The agency may seek any federal waivers
 2084  to implement this initiative.
 2085         8. The agency shall expand home delivery of pharmacy
 2086  products. The agency may amend the state plan and issue a
 2087  procurement, as necessary, in order to implement this program.
 2088  The procurements must include agreements with a pharmacy or
 2089  pharmacies located in the state to provide mail order delivery
 2090  services at no cost to the recipients who elect to receive home
 2091  delivery of pharmacy products. The procurement must focus on
 2092  serving recipients with chronic diseases for which pharmacy
 2093  expenditures represent a significant portion of Medicaid
 2094  pharmacy expenditures or which impact a significant portion of
 2095  the Medicaid population. The agency may seek and implement any
 2096  federal waivers necessary to implement this subparagraph.
 2097         9. The agency shall limit to one dose per month any drug
 2098  prescribed to treat erectile dysfunction.
 2099         10.a. The agency may implement a Medicaid behavioral drug
 2100  management system. The agency may contract with a vendor that
 2101  has experience in operating behavioral drug management systems
 2102  to implement this program. The agency may seek federal waivers
 2103  to implement this program.
 2104         b. The agency, in conjunction with the Department of
 2105  Children and Family Services, may implement the Medicaid
 2106  behavioral drug management system that is designed to improve
 2107  the quality of care and behavioral health prescribing practices
 2108  based on best practice guidelines, improve patient adherence to
 2109  medication plans, reduce clinical risk, and lower prescribed
 2110  drug costs and the rate of inappropriate spending on Medicaid
 2111  behavioral drugs. The program may include the following
 2112  elements:
 2113         (I) Provide for the development and adoption of best
 2114  practice guidelines for behavioral health-related drugs such as
 2115  antipsychotics, antidepressants, and medications for treating
 2116  bipolar disorders and other behavioral conditions; translate
 2117  them into practice; review behavioral health prescribers and
 2118  compare their prescribing patterns to a number of indicators
 2119  that are based on national standards; and determine deviations
 2120  from best practice guidelines.
 2121         (II) Implement processes for providing feedback to and
 2122  educating prescribers using best practice educational materials
 2123  and peer-to-peer consultation.
 2124         (III) Assess Medicaid beneficiaries who are outliers in
 2125  their use of behavioral health drugs with regard to the numbers
 2126  and types of drugs taken, drug dosages, combination drug
 2127  therapies, and other indicators of improper use of behavioral
 2128  health drugs.
 2129         (IV) Alert prescribers to patients who fail to refill
 2130  prescriptions in a timely fashion, are prescribed multiple same
 2131  class behavioral health drugs, and may have other potential
 2132  medication problems.
 2133         (V) Track spending trends for behavioral health drugs and
 2134  deviation from best practice guidelines.
 2135         (VI) Use educational and technological approaches to
 2136  promote best practices, educate consumers, and train prescribers
 2137  in the use of practice guidelines.
 2138         (VII) Disseminate electronic and published materials.
 2139         (VIII) Hold statewide and regional conferences.
 2140         (IX) Implement a disease management program with a model
 2141  quality-based medication component for severely mentally ill
 2142  individuals and emotionally disturbed children who are high
 2143  users of care.
 2144         11. The agency shall implement a Medicaid prescription drug
 2145  management system.
 2146         a. The agency may contract with a vendor that has
 2147  experience in operating prescription drug management systems in
 2148  order to implement this system. Any management system that is
 2149  implemented in accordance with this subparagraph must rely on
 2150  cooperation between physicians and pharmacists to determine
 2151  appropriate practice patterns and clinical guidelines to improve
 2152  the prescribing, dispensing, and use of drugs in the Medicaid
 2153  program. The agency may seek federal waivers to implement this
 2154  program.
 2155         b. The drug management system must be designed to improve
 2156  the quality of care and prescribing practices based on best
 2157  practice guidelines, improve patient adherence to medication
 2158  plans, reduce clinical risk, and lower prescribed drug costs and
 2159  the rate of inappropriate spending on Medicaid prescription
 2160  drugs. The program must:
 2161         (I) Provide for the adoption of best practice guidelines
 2162  for the prescribing and use of drugs in the Medicaid program,
 2163  including translating best practice guidelines into practice;
 2164  reviewing prescriber patterns and comparing them to indicators
 2165  that are based on national standards and practice patterns of
 2166  clinical peers in their community, statewide, and nationally;
 2167  and determine deviations from best practice guidelines.
 2168         (II) Implement processes for providing feedback to and
 2169  educating prescribers using best practice educational materials
 2170  and peer-to-peer consultation.
 2171         (III) Assess Medicaid recipients who are outliers in their
 2172  use of a single or multiple prescription drugs with regard to
 2173  the numbers and types of drugs taken, drug dosages, combination
 2174  drug therapies, and other indicators of improper use of
 2175  prescription drugs.
 2176         (IV) Alert prescribers to recipients who fail to refill
 2177  prescriptions in a timely fashion, are prescribed multiple drugs
 2178  that may be redundant or contraindicated, or may have other
 2179  potential medication problems.
 2180         12. The agency may contract for drug rebate administration,
 2181  including, but not limited to, calculating rebate amounts,
 2182  invoicing manufacturers, negotiating disputes with
 2183  manufacturers, and maintaining a database of rebate collections.
 2184         13. The agency may specify the preferred daily dosing form
 2185  or strength for the purpose of promoting best practices with
 2186  regard to the prescribing of certain drugs as specified in the
 2187  General Appropriations Act and ensuring cost-effective
 2188  prescribing practices.
 2189         14. The agency may require prior authorization for
 2190  Medicaid-covered prescribed drugs. The agency may prior
 2191  authorize the use of a product:
 2192         a. For an indication not approved in labeling;
 2193         b. To comply with certain clinical guidelines; or
 2194         c. If the product has the potential for overuse, misuse, or
 2195  abuse.
 2196  
 2197  The agency may require the prescribing professional to provide
 2198  information about the rationale and supporting medical evidence
 2199  for the use of a drug. The agency may post prior authorization
 2200  and step-edit criteria, and protocol, and updates to the list of
 2201  drugs that are subject to prior authorization on the agency’s an
 2202  Internet website within 21 days after the prior authorization
 2203  criteria, protocol, or updates are approved by the agency
 2204  without amending its rule or engaging in additional rulemaking.
 2205         15. The agency, in conjunction with the Pharmaceutical and
 2206  Therapeutics Committee, may require age-related prior
 2207  authorizations for certain prescribed drugs. The agency may
 2208  preauthorize the use of a drug for a recipient who may not meet
 2209  the age requirement or may exceed the length of therapy for use
 2210  of this product as recommended by the manufacturer and approved
 2211  by the Food and Drug Administration. Prior authorization may
 2212  require the prescribing professional to provide information
 2213  about the rationale and supporting medical evidence for the use
 2214  of a drug.
 2215         16. The agency shall implement a step-therapy prior
 2216  authorization approval process for medications excluded from the
 2217  preferred drug list. Medications listed on the preferred drug
 2218  list must be used within the previous 12 months before the
 2219  alternative medications that are not listed. The step-therapy
 2220  prior authorization may require the prescriber to use the
 2221  medications of a similar drug class or for a similar medical
 2222  indication unless contraindicated in the Food and Drug
 2223  Administration labeling. The trial period between the specified
 2224  steps may vary according to the medical indication. The step
 2225  therapy approval process shall be developed in accordance with
 2226  the committee as stated in s. 409.91195(7) and (8). A drug
 2227  product may be approved without meeting the step-therapy prior
 2228  authorization criteria if the prescribing physician provides the
 2229  agency with additional written medical or clinical documentation
 2230  that the product is medically necessary because:
 2231         a. There is not a drug on the preferred drug list to treat
 2232  the disease or medical condition which is an acceptable clinical
 2233  alternative;
 2234         b. The alternatives have been ineffective in the treatment
 2235  of the beneficiary’s disease; or
 2236         c. Based on historic evidence and known characteristics of
 2237  the patient and the drug, the drug is likely to be ineffective,
 2238  or the number of doses have been ineffective.
 2239  
 2240  The agency shall work with the physician to determine the best
 2241  alternative for the patient. The agency may adopt rules waiving
 2242  the requirements for written clinical documentation for specific
 2243  drugs in limited clinical situations.
 2244         17. The agency shall implement a return and reuse program
 2245  for drugs dispensed by pharmacies to institutional recipients,
 2246  which includes payment of a $5 restocking fee for the
 2247  implementation and operation of the program. The return and
 2248  reuse program shall be implemented electronically and in a
 2249  manner that promotes efficiency. The program must permit a
 2250  pharmacy to exclude drugs from the program if it is not
 2251  practical or cost-effective for the drug to be included and must
 2252  provide for the return to inventory of drugs that cannot be
 2253  credited or returned in a cost-effective manner. The agency
 2254  shall determine if the program has reduced the amount of
 2255  Medicaid prescription drugs which are destroyed on an annual
 2256  basis and if there are additional ways to ensure more
 2257  prescription drugs are not destroyed which could safely be
 2258  reused.
 2259         Section 48. Subsections (1), (7), and (8) of section
 2260  409.91195, Florida Statutes, are amended to read:
 2261         409.91195 Medicaid Pharmaceutical and Therapeutics
 2262  Committee.—There is created a Medicaid Pharmaceutical and
 2263  Therapeutics Committee within the agency for the purpose of
 2264  developing a Medicaid preferred drug list.
 2265         (1)(a) The committee shall be composed of 11 members
 2266  appointed by the Governor as follows: one member licensed under
 2267  chapter 458 or chapter 459 who is nominated by the Florida
 2268  Medical Association; one member licensed under chapter 459 who
 2269  is nominated by the Florida Osteopathic Medical Association; one
 2270  member licensed under chapter 458 or chapter 459 who is
 2271  nominated by the American Academy of Family Physicians, Florida
 2272  Chapter; one member licensed under chapter 458 or chapter 459
 2273  who is nominated by the American Academy of Pediatrics, Florida
 2274  Chapter; one member licensed under chapter 458 or chapter 459
 2275  nominated by the Florida Psychiatric Society; one member
 2276  licensed under chapter 465 who is nominated by the Florida
 2277  Pharmacy Association; one member licensed under chapter 465 who
 2278  is nominated by the Florida Society of Health System
 2279  Pharmacists, Inc.; one member licensed under chapter 465 who is
 2280  nominated by the Florida Retail Federation; one member licensed
 2281  under chapter 465 who works in a retail setting for an
 2282  independent, nonchain pharmacy; one member licensed under
 2283  chapter 458 or chapter 459 who is nominated by the Florida
 2284  Academy of Physician Assistants; and one consumer representative
 2285  who represents a patient advocacy group.
 2286         (b) Each member of the committee, except the consumer
 2287  representative, must practice in this state and participate in
 2288  the Florida Medicaid Fee for Service Pharmacy Program.
 2289         (c) The Governor shall appoint the members for 2-year
 2290  terms. Members may be appointed to more than one term. The
 2291  agency shall serve as staff for the committee and assist the
 2292  members with administrative duties. Four members shall be
 2293  physicians, licensed under chapter 458; one member licensed
 2294  under chapter 459; five members shall be pharmacists licensed
 2295  under chapter 465; and one member shall be a consumer
 2296  representative. The members shall be appointed to serve for
 2297  terms of 2 years from the date of their appointment. Members may
 2298  be appointed to more than one term. The agency shall serve as
 2299  staff for the committee and assist them with all ministerial
 2300  duties. The Governor shall ensure that at least some of the
 2301  members of the committee represent Medicaid participating
 2302  physicians and pharmacies serving all segments and diversity of
 2303  the Medicaid population, and have experience in either
 2304  developing or practicing under a preferred drug list. At least
 2305  one of the members shall represent the interests of
 2306  pharmaceutical manufacturers.
 2307         (7) The committee shall ensure that interested parties,
 2308  including pharmaceutical manufacturers agreeing to provide a
 2309  supplemental rebate as outlined in this chapter, have an
 2310  opportunity to present public testimony to the committee with
 2311  information or evidence supporting inclusion of a product on the
 2312  preferred drug list. Such public testimony shall occur prior to
 2313  any recommendations made by the committee for inclusion or
 2314  exclusion from the preferred drug list, allow for members of the
 2315  committee to ask questions of the presenters of the public
 2316  testimony, and allow for 3 minutes of testimony for each drug
 2317  reviewed. The agency may not limit the number of interested
 2318  parties that provide public testimony. Upon timely notice, the
 2319  agency shall ensure that any drug that has been approved or had
 2320  any of its particular uses approved by the United States Food
 2321  and Drug Administration under a priority review classification
 2322  will be reviewed by the committee at the next regularly
 2323  scheduled meeting following 3 months of distribution of the drug
 2324  to the general public.
 2325         (8) The committee shall develop its preferred drug list
 2326  recommendations by considering the clinical efficacy, safety,
 2327  and cost-effectiveness of a product. If the agency does not
 2328  follow a recommendation of the committee, the committee members
 2329  must be informed in writing of the agency’s action at the next
 2330  meeting of the committee following the reversal of its
 2331  recommendation.
 2332         Section 49. Effective upon this act becoming a law,
 2333  paragraph (e) is added to subsection (1) of section 409.975,
 2334  Florida Statutes, to read:
 2335         409.975 Managed care plan accountability.—In addition to
 2336  the requirements of s. 409.967, plans and providers
 2337  participating in the managed medical assistance program shall
 2338  comply with the requirements of this section.
 2339         (1) PROVIDER NETWORKS.—Managed care plans must develop and
 2340  maintain provider networks that meet the medical needs of their
 2341  enrollees in accordance with standards established pursuant to
 2342  s. 409.967(2)(b). Except as provided in this section, managed
 2343  care plans may limit the providers in their networks based on
 2344  credentials, quality indicators, and price.
 2345         (e)Before the selection of managed care plans as specified
 2346  in s. 409.966, each essential provider and each hospital that
 2347  are necessary in order for a managed care plan to demonstrate an
 2348  adequate network, as determined by the agency, are a part of
 2349  that managed care plan’s network for purposes of the provider’s
 2350  or hospital’s application for enrollment or expansion in the
 2351  Medicaid program. A managed care plan’s payment under this
 2352  section to an essential provider must be made in accordance with
 2353  this section.
 2354         Section 50. Subsection (6) of section 429.11, Florida
 2355  Statutes, is repealed.
 2356         Section 51. Subsection (1) of section 429.294, Florida
 2357  Statutes is amended to read:
 2358         429.294 Availability of facility records for investigation
 2359  of resident’s rights violations and defenses; penalty.—
 2360         (1) Failure to provide complete copies of a resident’s
 2361  records, including, but not limited to, all medical records and
 2362  the resident’s chart, within the control or possession of the
 2363  facility within 10 days, in accordance with the provisions of s.
 2364  400.141(3)400.145, shall constitute evidence of failure of that
 2365  party to comply with good faith discovery requirements and shall
 2366  waive the good faith certificate and presuit notice requirements
 2367  under this part by the requesting party.
 2368         Section 52. Subsections (1) and (5) of section 429.71,
 2369  Florida Statutes, are amended to read:
 2370         429.71 Classification of violations deficiencies;
 2371  administrative fines.—
 2372         (1) In addition to the requirements of part II of chapter
 2373  408 and in addition to any other liability or penalty provided
 2374  by law, the agency may impose an administrative fine on a
 2375  provider according to the following classification:
 2376         (a) Class I violations are defined in s. 408.813 those
 2377  conditions or practices related to the operation and maintenance
 2378  of an adult family-care home or to the care of residents which
 2379  the agency determines present an imminent danger to the
 2380  residents or guests of the facility or a substantial probability
 2381  that death or serious physical or emotional harm would result
 2382  therefrom. The condition or practice that constitutes a class I
 2383  violation must be abated or eliminated within 24 hours, unless a
 2384  fixed period, as determined by the agency, is required for
 2385  correction. A class I violation deficiency is subject to an
 2386  administrative fine in an amount not less than $500 and not
 2387  exceeding $1,000 for each violation. A fine may be levied
 2388  notwithstanding the correction of the deficiency.
 2389         (b) Class II violations are defined in s. 408.813 those
 2390  conditions or practices related to the operation and maintenance
 2391  of an adult family-care home or to the care of residents which
 2392  the agency determines directly threaten the physical or
 2393  emotional health, safety, or security of the residents, other
 2394  than class I violations. A class II violation is subject to an
 2395  administrative fine in an amount not less than $250 and not
 2396  exceeding $500 for each violation. A citation for a class II
 2397  violation must specify the time within which the violation is
 2398  required to be corrected. If a class II violation is corrected
 2399  within the time specified, no civil penalty shall be imposed,
 2400  unless it is a repeated offense.
 2401         (c) Class III violations are defined in s. 408.813 those
 2402  conditions or practices related to the operation and maintenance
 2403  of an adult family-care home or to the care of residents which
 2404  the agency determines indirectly or potentially threaten the
 2405  physical or emotional health, safety, or security of residents,
 2406  other than class I or class II violations. A class III violation
 2407  is subject to an administrative fine in an amount not less than
 2408  $100 and not exceeding $250 for each violation. A citation for a
 2409  class III violation shall specify the time within which the
 2410  violation is required to be corrected. If a class III violation
 2411  is corrected within the time specified, no civil penalty shall
 2412  be imposed, unless it is a repeated violation offense.
 2413         (d) Class IV violations are defined in s. 408.813 those
 2414  conditions or occurrences related to the operation and
 2415  maintenance of an adult family-care home, or related to the
 2416  required reports, forms, or documents, which do not have the
 2417  potential of negatively affecting the residents. A provider that
 2418  does not correct A class IV violation within the time limit
 2419  specified by the agency is subject to an administrative fine in
 2420  an amount not less than $50 and not exceeding $100 for each
 2421  violation. Any class IV violation that is corrected during the
 2422  time the agency survey is conducted will be identified as an
 2423  agency finding and not as a violation, unless it is a repeat
 2424  violation.
 2425         (5) As an alternative to or in conjunction with an
 2426  administrative action against a provider, the agency may request
 2427  a plan of corrective action that demonstrates a good faith
 2428  effort to remedy each violation by a specific date, subject to
 2429  the approval of the agency.
 2430         Section 53. Section 429.915, Florida Statutes, is amended
 2431  to read:
 2432         429.915 Conditional license.—In addition to the license
 2433  categories available in part II of chapter 408, the agency may
 2434  issue a conditional license to an applicant for license renewal
 2435  or change of ownership if the applicant fails to meet all
 2436  standards and requirements for licensure. A conditional license
 2437  issued under this subsection must be limited to a specific
 2438  period not exceeding 6 months, as determined by the agency, and
 2439  must be accompanied by an approved plan of correction.
 2440         Section 54. Subsection (3) of section 430.80, Florida
 2441  Statutes, is amended to read:
 2442         430.80 Implementation of a teaching nursing home pilot
 2443  project.—
 2444         (3) To be designated as a teaching nursing home, a nursing
 2445  home licensee must, at a minimum:
 2446         (a) Provide a comprehensive program of integrated senior
 2447  services that include institutional services and community-based
 2448  services;
 2449         (b) Participate in a nationally recognized accreditation
 2450  program and hold a valid accreditation, such as the
 2451  accreditation awarded by the Joint Commission on Accreditation
 2452  of Healthcare Organizations, or, at the time of initial
 2453  designation, possess a Gold Seal Award as conferred by the state
 2454  on its licensed nursing home;
 2455         (c) Have been in business in this state for a minimum of 10
 2456  consecutive years;
 2457         (d) Demonstrate an active program in multidisciplinary
 2458  education and research that relates to gerontology;
 2459         (e) Have a formalized contractual relationship with at
 2460  least one accredited health profession education program located
 2461  in this state;
 2462         (f) Have senior staff members who hold formal faculty
 2463  appointments at universities, which must include at least one
 2464  accredited health profession education program; and
 2465         (g) Maintain insurance coverage pursuant to s.
 2466  400.141(1)(q) s. 400.141(1)(s) or proof of financial
 2467  responsibility in a minimum amount of $750,000. Such proof of
 2468  financial responsibility may include:
 2469         1. Maintaining an escrow account consisting of cash or
 2470  assets eligible for deposit in accordance with s. 625.52; or
 2471         2. Obtaining and maintaining pursuant to chapter 675 an
 2472  unexpired, irrevocable, nontransferable and nonassignable letter
 2473  of credit issued by any bank or savings association organized
 2474  and existing under the laws of this state or any bank or savings
 2475  association organized under the laws of the United States that
 2476  has its principal place of business in this state or has a
 2477  branch office which is authorized to receive deposits in this
 2478  state. The letter of credit shall be used to satisfy the
 2479  obligation of the facility to the claimant upon presentment of a
 2480  final judgment indicating liability and awarding damages to be
 2481  paid by the facility or upon presentment of a settlement
 2482  agreement signed by all parties to the agreement when such final
 2483  judgment or settlement is a result of a liability claim against
 2484  the facility.
 2485         Section 55. Paragraph (h) of subsection (2) of section
 2486  430.81, Florida Statutes, is amended to read:
 2487         430.81 Implementation of a teaching agency for home and
 2488  community-based care.—
 2489         (2) The Department of Elderly Affairs may designate a home
 2490  health agency as a teaching agency for home and community-based
 2491  care if the home health agency:
 2492         (h) Maintains insurance coverage pursuant to s.
 2493  400.141(1)(q) s. 400.141(1)(s) or proof of financial
 2494  responsibility in a minimum amount of $750,000. Such proof of
 2495  financial responsibility may include:
 2496         1. Maintaining an escrow account consisting of cash or
 2497  assets eligible for deposit in accordance with s. 625.52; or
 2498         2. Obtaining and maintaining, pursuant to chapter 675, an
 2499  unexpired, irrevocable, nontransferable, and nonassignable
 2500  letter of credit issued by any bank or savings association
 2501  authorized to do business in this state. This letter of credit
 2502  shall be used to satisfy the obligation of the agency to the
 2503  claimant upon presentation of a final judgment indicating
 2504  liability and awarding damages to be paid by the facility or
 2505  upon presentment of a settlement agreement signed by all parties
 2506  to the agreement when such final judgment or settlement is a
 2507  result of a liability claim against the agency.
 2508         Section 56. Paragraph (d) of subsection (9) of section
 2509  440.102, Florida Statutes, is repealed.
 2510         Section 57. Subsection (1) of section 483.035, Florida
 2511  Statutes, is amended to read:
 2512         483.035 Clinical laboratories operated by practitioners for
 2513  exclusive use; licensure and regulation.—
 2514         (1) A clinical laboratory operated by one or more
 2515  practitioners licensed under chapter 458, chapter 459, chapter
 2516  460, chapter 461, chapter 462, or chapter 466, or as an advanced
 2517  registered nurse practitioner licensed under part I in chapter
 2518  464, exclusively in connection with the diagnosis and treatment
 2519  of their own patients, must be licensed under this part and must
 2520  comply with the provisions of this part, except that the agency
 2521  shall adopt rules for staffing, for personnel, including
 2522  education and training of personnel, for proficiency testing,
 2523  and for construction standards relating to the licensure and
 2524  operation of the laboratory based upon and not exceeding the
 2525  same standards contained in the federal Clinical Laboratory
 2526  Improvement Amendments of 1988 and the federal regulations
 2527  adopted thereunder.
 2528         Section 58. Subsections (1) and (9) of section 483.051,
 2529  Florida Statutes, are amended to read:
 2530         483.051 Powers and duties of the agency.—The agency shall
 2531  adopt rules to implement this part, which rules must include,
 2532  but are not limited to, the following:
 2533         (1) LICENSING; QUALIFICATIONS.—The agency shall provide for
 2534  biennial licensure of all nonwaived clinical laboratories
 2535  meeting the requirements of this part and shall prescribe the
 2536  qualifications necessary for such licensure, including, but not
 2537  limited to, application for or proof of a federal Clinical
 2538  Laboratory Improvement Amendment (CLIA) certificate. For
 2539  purposes of this section, the term “nonwaived clinical
 2540  laboratories” means laboratories that perform any test that the
 2541  Centers for Medicare and Medicaid Services has determined does
 2542  not qualify for a certificate of waiver under the Clinical
 2543  Laboratory Improvement Amendments of 1988 and the federal rules
 2544  adopted thereunder.
 2545         (9) ALTERNATE-SITE TESTING.—The agency, in consultation
 2546  with the Board of Clinical Laboratory Personnel, shall adopt, by
 2547  rule, the criteria for alternate-site testing to be performed
 2548  under the supervision of a clinical laboratory director. The
 2549  elements to be addressed in the rule include, but are not
 2550  limited to: a hospital internal needs assessment; a protocol of
 2551  implementation including tests to be performed and who will
 2552  perform the tests; criteria to be used in selecting the method
 2553  of testing to be used for alternate-site testing; minimum
 2554  training and education requirements for those who will perform
 2555  alternate-site testing, such as documented training, licensure,
 2556  certification, or other medical professional background not
 2557  limited to laboratory professionals; documented inservice
 2558  training as well as initial and ongoing competency validation;
 2559  an appropriate internal and external quality control protocol;
 2560  an internal mechanism for identifying and tracking alternate
 2561  site testing by the central laboratory; and recordkeeping
 2562  requirements. Alternate-site testing locations must register
 2563  when the clinical laboratory applies to renew its license. For
 2564  purposes of this subsection, the term “alternate-site testing”
 2565  means any laboratory testing done under the administrative
 2566  control of a hospital, but performed out of the physical or
 2567  administrative confines of the central laboratory.
 2568         Section 59. Section 483.245, Florida Statutes, is amended
 2569  to read:
 2570         483.245 Rebates prohibited; penalties; private action.—
 2571         (1) It is unlawful for any person to pay or receive any
 2572  commission, bonus, kickback, or rebate or engage in any split
 2573  fee arrangement in any form whatsoever with any dialysis
 2574  facility, physician, surgeon, organization, agency, or person,
 2575  either directly or indirectly, for patients referred to a
 2576  clinical laboratory licensed under this part. A clinical
 2577  laboratory licensed under this part is prohibited from placing,
 2578  directly or indirectly, through an independent staffing company
 2579  or lease arrangement, or otherwise, a specimen collector or
 2580  other personnel in any physician’s office, unless the clinical
 2581  lab and the physician’s office are owned and operated by the
 2582  same entity.
 2583         (2) The agency shall adopt rules that assess administrative
 2584  penalties for acts prohibited by subsection (1). In the case of
 2585  an entity licensed by the agency, such penalties may include any
 2586  disciplinary action available to the agency under the
 2587  appropriate licensing laws. In the case of an entity not
 2588  licensed by the agency, such penalties may include:
 2589         (a) A fine not to exceed $1,000;
 2590         (b) If applicable, a recommendation by the agency to the
 2591  appropriate licensing board that disciplinary action be taken.
 2592         (3) Any person aggrieved by a violation of this section may
 2593  bring a civil action for appropriate relief, including an action
 2594  for a declaratory judgment, injunctive relief, and actual
 2595  damages.
 2596         Section 60. Section 483.294, Florida Statutes, is amended
 2597  to read:
 2598         483.294 Inspection of centers.—In accordance with s.
 2599  408.811, the agency shall biennially, at least once annually,
 2600  inspect the premises and operations of all centers subject to
 2601  licensure under this part.
 2602         Section 61. Paragraph (a) of subsection (54) of section
 2603  499.003, Florida Statutes, is amended to read:
 2604         499.003 Definitions of terms used in this part.—As used in
 2605  this part, the term:
 2606         (54) “Wholesale distribution” means distribution of
 2607  prescription drugs to persons other than a consumer or patient,
 2608  but does not include:
 2609         (a) Any of the following activities, which is not a
 2610  violation of s. 499.005(21) if such activity is conducted in
 2611  accordance with s. 499.01(2)(g):
 2612         1. The purchase or other acquisition by a hospital or other
 2613  health care entity that is a member of a group purchasing
 2614  organization of a prescription drug for its own use from the
 2615  group purchasing organization or from other hospitals or health
 2616  care entities that are members of that organization.
 2617         2. The sale, purchase, or trade of a prescription drug or
 2618  an offer to sell, purchase, or trade a prescription drug by a
 2619  charitable organization described in s. 501(c)(3) of the
 2620  Internal Revenue Code of 1986, as amended and revised, to a
 2621  nonprofit affiliate of the organization to the extent otherwise
 2622  permitted by law.
 2623         3. The sale, purchase, or trade of a prescription drug or
 2624  an offer to sell, purchase, or trade a prescription drug among
 2625  hospitals or other health care entities that are under common
 2626  control. For purposes of this subparagraph, “common control”
 2627  means the power to direct or cause the direction of the
 2628  management and policies of a person or an organization, whether
 2629  by ownership of stock, by voting rights, by contract, or
 2630  otherwise.
 2631         4. The sale, purchase, trade, or other transfer of a
 2632  prescription drug from or for any federal, state, or local
 2633  government agency or any entity eligible to purchase
 2634  prescription drugs at public health services prices pursuant to
 2635  Pub. L. No. 102-585, s. 602 to a contract provider or its
 2636  subcontractor for eligible patients of the agency or entity
 2637  under the following conditions:
 2638         a. The agency or entity must obtain written authorization
 2639  for the sale, purchase, trade, or other transfer of a
 2640  prescription drug under this subparagraph from the State Surgeon
 2641  General or his or her designee.
 2642         b. The contract provider or subcontractor must be
 2643  authorized by law to administer or dispense prescription drugs.
 2644         c. In the case of a subcontractor, the agency or entity
 2645  must be a party to and execute the subcontract.
 2646         d. A contract provider or subcontractor must maintain
 2647  separate and apart from other prescription drug inventory any
 2648  prescription drugs of the agency or entity in its possession.
 2649         d.e. The contract provider and subcontractor must maintain
 2650  and produce immediately for inspection all records of movement
 2651  or transfer of all the prescription drugs belonging to the
 2652  agency or entity, including, but not limited to, the records of
 2653  receipt and disposition of prescription drugs. Each contractor
 2654  and subcontractor dispensing or administering these drugs must
 2655  maintain and produce records documenting the dispensing or
 2656  administration. Records that are required to be maintained
 2657  include, but are not limited to, a perpetual inventory itemizing
 2658  drugs received and drugs dispensed by prescription number or
 2659  administered by patient identifier, which must be submitted to
 2660  the agency or entity quarterly.
 2661         e.f. The contract provider or subcontractor may administer
 2662  or dispense the prescription drugs only to the eligible patients
 2663  of the agency or entity or must return the prescription drugs
 2664  for or to the agency or entity. The contract provider or
 2665  subcontractor must require proof from each person seeking to
 2666  fill a prescription or obtain treatment that the person is an
 2667  eligible patient of the agency or entity and must, at a minimum,
 2668  maintain a copy of this proof as part of the records of the
 2669  contractor or subcontractor required under sub-subparagraph e.
 2670         f.g. In addition to the departmental inspection authority
 2671  set forth in s. 499.051, the establishment of the contract
 2672  provider and subcontractor and all records pertaining to
 2673  prescription drugs subject to this subparagraph shall be subject
 2674  to inspection by the agency or entity. All records relating to
 2675  prescription drugs of a manufacturer under this subparagraph
 2676  shall be subject to audit by the manufacturer of those drugs,
 2677  without identifying individual patient information.
 2678         Section 62. Effective May 1, 2012, paragraph (h) is added
 2679  to subsection (1) of section 627.602, Florida Statutes, to read:
 2680         627.602 Scope, format of policy.—
 2681         (1) Each health insurance policy delivered or issued for
 2682  delivery to any person in this state must comply with all
 2683  applicable provisions of this code and all of the following
 2684  requirements:
 2685         (h) Section 641.312 and the provisions of the Employee
 2686  Retirement Income Security Act of 1974, as implemented by 29
 2687  C.F.R. s. 2560.503-1, relating to internal grievances. This
 2688  paragraph does not apply to a health insurance policy that is
 2689  subject to the Subscriber Assistance Program in s. 408.7056.
 2690         Section 63. Effective May 1, 2012, section 627.6513,
 2691  Florida Statutes, is created to read:
 2692         627.6513Section 641.312 and the provisions of the Employee
 2693  Retirement Income Security Act of 1974, as implemented by 29
 2694  C.F.R. s. 2560.503-1, relating to internal grievances, apply to
 2695  all group health insurance policies issued under this part. This
 2696  section does not apply to a group health insurance policy that
 2697  is subject to the Subscriber Assistance Program in s. 408.7056.
 2698         Section 64. Effective May 1, 2012, section 641.312, Florida
 2699  Statutes, is created to read:
 2700         641.312The Office of Insurance Regulation within the
 2701  Department of Financial Services shall adopt rules to administer
 2702  the provisions of the National Association of Insurance
 2703  Commissioners’ Uniform Health Carrier External Review Model Act,
 2704  dated April 2010. This section does not apply to a health
 2705  maintenance contract that is subject to the Subscriber
 2706  Assistance Program in s. 408.7056.
 2707         Section 65. Subsection (13) of section 651.118, Florida
 2708  Statutes, is amended to read:
 2709         651.118 Agency for Health Care Administration; certificates
 2710  of need; sheltered beds; community beds.—
 2711         (13) Residents, as defined in this chapter, are not
 2712  considered new admissions for the purpose of s. 400 141(1)(n)1.d
 2713  s. 400.141(1)(o)1.d.
 2714         Section 66. In the interim between this act becoming law
 2715  and the 2013 Regular Session of the Legislature, the Division of
 2716  Statutory Revision shall provide the relevant substantive
 2717  committees of the Senate and the House of Representatives with
 2718  assistance, upon request, to enable such committees to prepare
 2719  draft legislation to correct the names of accrediting
 2720  organizations in the related Florida Statutes.
 2721         Section 67. Except as otherwise expressly provided in this
 2722  act, and except for this section, which shall take effect upon
 2723  this act becoming a law, this act shall take effect July 1,
 2724  2012.