Florida Senate - 2012 (NP) SB 2016 By Senator Dockery 15-01757-12 20122016__ 1 A bill to be entitled 2 An act relating to the North Lake County Hospital 3 District, Lake County; codifying special laws relating 4 to the district; providing legislative intent; 5 amending, codifying, reenacting, and repealing 6 chapters 2002-348 and 2004-460, Laws of Florida, 7 relating to the district; re-creating the district and 8 re-creating and reenacting the charter; providing 9 definitions; providing a public purpose; prohibiting a 10 person from seeking election to the board of trustees 11 if the person has previously served on the board of 12 directors of certain entities within a specified time; 13 requiring publication of the annual meeting notice on 14 a publicly accessible website; providing general 15 powers of the district, including the power to levy an 16 ad valorem tax not to exceed a specified millage; 17 establishing permitted uses of tax funds; providing 18 restrictions on the district board’s activities; 19 prescribing requirements of the board for fiscal 20 responsibility, transparency, and accountability; 21 providing financial disclosure requirements and 22 reporting, notice, and public meeting provisions for 23 the board; providing for sovereign immunity; providing 24 for expiration of the district at a specified time 25 without further legislative action and permitting 26 continuation of the district by referendum at the end 27 of 10-year intervals; providing for a referendum; 28 providing an effective date. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1. This act constitutes the codification of all 33 special acts relating to the North Lake County Hospital 34 District. It is the intent of the Legislature in enacting this 35 law to provide a single, comprehensive special act charter for 36 the district, including all current authority granted to the 37 district by its several legislative enactments and any 38 additional authority granted by this act. 39 Section 2. Chapters 2002-348 and 2004-460, Laws of Florida, 40 relating to the North Lake County Hospital District, are 41 codified, reenacted, amended, and repealed as provided in this 42 act. 43 Section 3. The North Lake County Hospital District is re 44 created, and the charter is re-created and reenacted to read: 45 Section 1. ESTABLISHMENT OF DISTRICT; BOUNDARIES.— 46 A. This act may be cited as the “North Lake County Hospital 47 District Act.” 48 B. There is created and established as an independent 49 special taxing district of the state a hospital district in Lake 50 County to be known as the “North Lake County Hospital District,” 51 which shall comprise and include the territory within Lake 52 County described as follows: 53 54 Beginning at the range line dividing ranges 26 and 27 55 east at its intersection with the township line 56 separating townships 20 and 21 south of the 57 Tallahassee meridian; thence north on said range line 58 to the township line dividing townships 19 and 20 59 south; thence east on said township line to the Wekiva 60 River; thence north along the thread of the said 61 Wekiva River to the St. Johns River; thence in a 62 northerly and northwesterly direction through the 63 thread of the St. Johns River to the southwest shore 64 of Lake George; thence north along the west shore of 65 Lake George to the range line dividing ranges 26 and 66 27 east; thence south on said range line to the 67 township line dividing townships 17 and 18 south; 68 thence west on said township line to the northeast 69 corner of section 1, township 18 south, range 25 east; 70 thence run south along the east range line for range 71 25 to the southeast corner of section 36, township 18 72 south, range 25 east; thence run east along the North 73 boundary of section 6, township 19 south, range 26 74 east, to the waters of Lake Eustis; thence 75 southwesterly along the waters of Lake Eustis to the 76 center of the mouth of Dead River; thence 77 southwesterly along the center of Dead River to an 78 extension of the west boundary of section 24, township 79 19 south, range 25 east, extended south into Lake 80 Harris; thence run southwesterly across Lake Harris to 81 the intersection of the eastern boundary of section 82 12, township 20 south, range 24 east, with the waters 83 of Lake Harris; thence run southeasterly and 84 south/southeasterly along the shoreline of Lake Harris 85 and Little Lake Harris to the south boundary line of 86 section 24, township 20 south, range 25 east; thence 87 run west to the northwest corner of section 27, 88 township 20 south, range 25 east; thence run south to 89 the southwest corner of section 34, township 20 south, 90 range 25 east; thence run east along the township line 91 separating townships 20 and 21 south, to the 92 Tallahassee Meridian to the point of beginning 93 (hereinafter the “Northeast Territory”). 94 95 and 96 97 Begin at the northwest (NW) corner of section 6, in 98 township 18 south, range 24 east, and run east along 99 the north township line of township 18 south, to the 100 northeast corner of section 1, township 18 south, 101 range 25 east; thence run south along the east range 102 line of range 25 to the southeast corner of section 103 36, township 18 south, range 25 east; thence run east 104 along the north boundary of section 6, township 29 105 south, range 26 east, to the waters of Lake Eustis; 106 thence southwesterly along the waters of Lake Eustis 107 to the center of the mouth of Dead River; thence 108 southwesterly along the center of Dead River to an 109 extension of the west boundary of section 24, township 110 19 south, range 25 east, extended south into Lake 111 Harris; thence run southwesterly across Lake Harris to 112 the point that the eastern boundary of section 12, 113 township 20 south, range 24 east intersects with the 114 waters of Lake Harris; thence run in a general 115 southeasterly direction along the waters of Lake 116 Harris to the point that the southern boundary of 117 section 24, township 20 south, range 25 east, and the 118 waters of Lake Harris intersect; thence run west along 119 the south boundary of sections 24, 23, and 22, 120 township 20 south, range 25 east, to the southwest 121 (SW) corner of said section 22, township 20 south, 122 range 25 east; thence run south along the west 123 boundary of sections 27 and 34, township 20 south, 124 range 25 east to the southwest (SW) corner of section 125 34, township 20 south, range 25 east; thence run west 126 along the south line of said township 20 to western 127 boundary of Lake County, and west boundary of range 24 128 east; thence north along the west boundary of said 129 range 24 to the point of beginning (hereinafter the 130 “Northwest Territory”). 131 Section 2. DEFINITIONS.—As used in this act and for 132 purposes of this act, the term: 133 A. “Board of trustees” and “board” mean the Board of 134 Trustees of the North Lake County Hospital District. 135 B. “District” means the North Lake County Hospital 136 District. 137 C. “Indigent care” means medically necessary health care 138 provided to residents of the North Lake County Hospital District 139 who are determined to be qualified pursuant to the provisions of 140 the Florida Health Care Responsibility Act, section 154.304(9), 141 Florida Statues, and the Florida Health Care Indigency 142 Eligibility Certification Standards, Florida Administrative 143 Code, rule 59H-1.0035(30). 144 D. “Provider” means a licensed hospital or primary care 145 clinic physically located in the district. 146 Section 3. PUBLIC PURPOSE OF THE DISTRICT.—The public 147 purpose of the district is to provide a means to pay for 148 indigent care provided in accordance with this act. Indigent 149 care may be provided to residents of the district in accordance 150 with this act through the use of health care facilities not 151 owned and operated by the board of trustees. The provision of 152 such indigent care is found and declared to be a public purpose 153 and necessary for the preservation of the public health of the 154 residents of the district. 155 Section 4. MEMBERSHIP AND ORGANIZATION OF THE GOVERNING 156 BOARD OF THE DISTRICT.— 157 A. General.— 158 1. The district shall be governed by a board of trustees 159 composed of six persons to be elected by the electors residing 160 within the district in a general election. The trustees 161 currently serving on the board shall continue in their capacity 162 to the completion of their terms. The term of office of each 163 trustee shall be 4 years and a trustee may not serve more than 164 two terms for a maximum of 8 years. The term of office shall 165 expire on the date of the general election held 4 years after 166 the date on which that trustee was elected. All elections for 167 the office of trustee shall be conducted in the same manner as 168 elections for county commissioners. 169 2. The members of the board of trustees shall serve without 170 pay. Each member shall give a bond to the Board of County 171 Commissioners of Lake County and its successors in office for 172 the use and benefit of the district for the faithful performance 173 of his or her duties in the sum of $1,000 with a surety company 174 qualified to do business in this state as surety, which bond 175 shall be approved and accepted by the Clerk of the Circuit Court 176 of Lake County. The premiums on such bond shall be paid by the 177 district as part of the expenses of the district. 178 3. Four of the trustees shall constitute a quorum, and a 179 vote of at least four of the trustees is necessary for the 180 transaction of any business of the district. The board of 181 trustees may select from among its membership a chair, vice 182 chair, secretary, and treasurer. The board of trustees shall 183 cause true and accurate minutes and records to be kept of all 184 business transacted by them and shall keep full, true, and 185 complete books of account and minutes, which minutes and books 186 shall be open and subject to the inspection of the residents of 187 the district at all reasonable times during normal business 188 hours. Any person desiring to do so may obtain a copy of the 189 minutes and books of account or such portions thereof as he or 190 she may desire upon payment of the costs of reproduction. 191 B. Election of the board of trustees.— 192 1. Registration of electors.—Any person who is a resident 193 of the district, at least 18 years of age, and registered with 194 the Supervisor of Elections for Lake County is eligible to vote 195 for the election of members of the board of trustees. 196 2. Qualifications of candidate.—All trustees must be duly 197 qualified electors who reside in the district. Three trustees 198 must reside in the Northeast Territory and three trustees must 199 reside in the Northwest Territory. Beginning with the general 200 election in 2014 and in each general election thereafter, a 201 person is not eligible to seek election to the board of trustees 202 if that person served, within the previous 4 years before the 203 election, as an officer or member of a board of directors of a 204 hospital physically located in the district, a parent 205 corporation of such a hospital, or a foundation of such a 206 hospital. 207 3. Vacancies.—Vacant trustee seats shall be filled through 208 appointment by the Governor; appointees shall serve until the 209 expiration of the term for which they are appointed. 210 C. Annual meeting.—The annual meeting shall be held before 211 January 31 of each year at such time and place within the 212 district as is determined by the board of trustees. Notice of 213 the date, time, and place of the annual meeting shall be 214 published online on a publicly accessible website maintained by 215 the district and in a daily newspaper of general circulation, in 216 a section other than the legal ad or classified ad sections, in 217 the district once per week for 2 consecutive weeks. The date of 218 the first publication of such notice must be at least 15, and 219 not more than 30, days before the annual meeting. The agenda at 220 the annual meeting of the board of trustees shall include, but 221 is not limited to: 222 1. Call to order. 223 2. Presentation and approval of minutes of the last annual 224 meeting and of any special meeting held since that meeting. 225 3. Financial report. 226 4. Presentation of the annual report of the board of 227 trustees. 228 5. Transaction of any business that may properly be brought 229 before the board. 230 6. Election of officers of the board of trustees. 231 D. Special meetings.—Special meetings of the board of 232 trustees may be called at any time by the chair or upon the 233 written request of four members of the board of trustees. 234 Notices of special meetings of the board of trustees shall be 235 published online on a publicly accessible website maintained by 236 the district and by publication in a daily newspaper of general 237 circulation in the district at least 7 days before such meeting, 238 stating the date and place and general matters of the business 239 to be considered. 240 E. Removal of members from the board of trustees.—Any 241 member of the board of trustees may be removed by the Governor 242 at any time, for cause, in which event such vacancy or vacancies 243 thereby occurring shall be filled through appointment by the 244 Governor for the unexpired term. 245 Section 5. POWERS, FUNCTIONS, AND DUTIES.— 246 A. General powers.—The district may: 247 1. Adopt an official seal and alter it at pleasure. 248 2. Maintain an office within the district’s geographical 249 territory at a place it may designate. 250 3. Sue and be sued in its own name and plead and be 251 impleaded, but with all sovereign immunity and limitations 252 provided by the State Constitution and general law. 253 4. Make and execute agreements of lease, contracts, and 254 other instruments necessary in the exercise of its powers and 255 functions under this act. 256 5. Lease as lessor or lessee to or from any person, firm, 257 corporation, association, or body, public or private, any 258 facilities or property for the use of the district to carry out 259 the purpose of the district in its reasonable judgment. 260 6. Employ attorneys, accountants, and such other employees 261 and agents as may be necessary, in its reasonable judgment, to 262 carry out the purpose of the district, and fix their reasonable 263 compensation. 264 7. Levy an ad valorem tax in the district not to exceed 1 265 mill on the dollar of the value of all nonexempt property within 266 that area of Lake County which comprises the district. Such tax 267 shall be paid into the district fund. 268 8. Cooperate with, apply for and receive grants from, or 269 contract with other governmental agencies or private individuals 270 or entities as may be necessary, convenient, or proper in 271 connection with any of the powers and duties authorized by this 272 act and to carry out the public purpose of the district in its 273 reasonable judgment. 274 9. Adopt and promulgate policies, rules, and procedures for 275 the efficient and effective operation of the district and to 276 ensure the proper implementation of this act. 277 10. Do all things necessary to carry out the purpose of the 278 district and to ensure the proper implementation of this act. 279 B. Collection of taxes.—It is the duty of the Property 280 Appraiser of Lake County to assess, and the Tax Collector of 281 Lake County to collect, the ad valorem tax levied by the board 282 of trustees upon the taxable property in the district. The tax 283 collector shall collect such tax as levied by the board of 284 trustees in the same manner as other taxes are collected and 285 shall pay the same over to the board of trustees within the time 286 and in the manner prescribed by law for the payment of the Tax 287 Collector of Lake County taxes to the county depository. It is 288 the duty of the Department of Revenue to assess all such 289 property in accordance with section 193.085, Florida Statutes. 290 The amount of each county or state taxes and the taxes for the 291 district shall be assessed by the officer respectively as are 292 county taxes upon such property, and such tax shall be remitted 293 by the collecting officer to the board of trustees. All such 294 taxes shall be held by the board of trustees and paid out by 295 them for purposes of this act. 296 C. Liens and foreclosures.—Liens and foreclosure of liens 297 resulting from failure to pay ad valorem taxation shall be 298 treated as liens and foreclosures resulting from other ad 299 valorem taxes. 300 Section 6. PERMITTED USES OF TAX FUNDS.—Consistent with the 301 public purpose of the district, the use of funds received 302 through the district’s taxing power and any interest thereon may 303 be used: 304 A. For reasonable expenses incurred by the district to 305 administer and enforce this act, including the use of private 306 vendors. 307 B. To pay for indigent care provided by licensed hospitals 308 physically located in the district according to policies and 309 procedures adopted by the board of trustees pursuant to and 310 consistent with this act. 311 C. To pay for indigent care provided by licensed primary 312 care clinics physically located in the district that are 313 approved by the board of trustees, if the care does not overlap 314 or duplicate care available through other public health clinics 315 physically located in the district and serving medically 316 indigent residents of the district. 317 D. To maximize public or private grant or matching funds 318 available for indigent care, including, but not limited to, 319 Medicaid Supplemental Hospital Funding Programs, the Low-Income 320 Pool Program, the Disproportionate Share Hospital Program, and 321 similar programs. 322 E. To contract with the Lake County Board of County 323 Commissioners for services performed for the district by 324 personnel employed by the county, as well as logistical and 325 technical support, to carry out, in its reasonable judgment, the 326 purpose of the district. 327 F. To lower the millage rate in succeeding years. 328 Section 7. RESTRICTIONS.— 329 A. The district board may not issue bonds, raise tax 330 revenue from any other source, or impose non-ad valorem 331 assessments. 332 B. Funds received through the district’s taxing power and 333 any interest thereon may not be used: 334 1. To compensate for a provider’s inability to collect 335 debts arising from serving persons who are not eligible for 336 indigent care under this act. 337 2. To cover shortfalls or deficiencies in the amounts paid 338 by Medicare or private insurance from patients who are not 339 eligible for indigent care under this act. 340 3. To compensate for normal business overhead or expenses. 341 4. For capital expenditures incurred by or for a provider. 342 5. For indigent care based on assumptions, models, studies, 343 or expert analyses or opinions. 344 6. For indigent care in excess of the actual cost of 345 providing such care; however, the payment for indigent care 346 provided may not exceed the amount payable by the Medicare 347 program for identical or substantially similar care in the 348 territory of the district. 349 Section 8. FISCAL RESPONSIBILITY, TRANSPARENCY, AND 350 ACCOUNTABILITY.— 351 A. The board of trustees shall annually determine and 352 approve a balanced district budget and millage in accordance 353 with chapter 200, Florida Statues, this act, and generally 354 accepted accounting principles. 355 B. At least once each year, the board of trustees shall 356 post online on a publicly accessible website maintained by the 357 district and publish once in a daily newspaper of general 358 circulation in the district a complete detailed statement of all 359 moneys received and disbursed by it since the creation of the 360 district as to the first published statement and since the last 361 published statement as to any other year. The statement must 362 include the sources from which the funds were received, the 363 balance on hand at the time of the published statement, and a 364 complete statement of the financial condition of the district. 365 C. Any provider receiving funds from the district is 366 subject to an audit of its records relative to the patients for 367 whom payment is sought in order to ensure compliance with this 368 act. All auditors must contractually agree to comply with 369 applicable patient confidentiality rules, including the Health 370 Insurance Portability and Accountability Act of 1996 (HIPAA; 371 Pub. L. No. 104-191, 110 Stat. 1936) and rules implementing that 372 act. 373 D. The district must conduct financial integrity and 374 compliance audits of providers receiving payments in any one 375 fiscal year in excess of 10 percent of the district’s tax 376 revenue in that year, and may initiate other audits of any 377 provider at any time, to ensure compliance with this act and to 378 provide transparency and accountability to the taxpayers. All 379 audit reports become public records upon acceptance by the board 380 of trustees. If, upon completion of an audit, it is determined 381 that payment was made by the district that was not in compliance 382 with this act, a rebuttable presumption is created that the 383 district is entitled to a recoupment of the amounts in question. 384 Notice to the provider and an opportunity to go forward with 385 evidence rebutting the presumption in an informal setting shall 386 be provided. Pending any judicial determination, the district 387 may set off the amounts in question against any other amounts 388 owed or to be owed to the provider. If informal resolution 389 cannot be reached between the parties, a formal mediation 390 conference is required and is a condition precedent to the 391 filing of a lawsuit. Venue for any legal proceedings is in the 392 Circuit Court of Lake County. 393 E. The board of trustees shall adopt and promulgate 394 eligibility verification criteria and procedures designed to 395 ensure that all recipients of indigent care for which payment is 396 sought under this act are qualified by the provider as medically 397 indigent persons and residents of the district. 398 F. Any indigent care for which payment is requested in 399 whole or in part from the district must be certified by the 400 provider as medically necessary. 401 G. A provider requesting payment under this act must 402 certify, under penalty of perjury, that the eligibility 403 verification procedures adopted by the board of trustees have 404 been complied with and that he or she, in good faith, believes 405 that the person is qualified to receive indigent care under this 406 act. 407 H. If estimated payments are made to a provider eligible to 408 receive payment from the district, to ensure public oversight, 409 accountability, and public benefit, the hospital or clinic shall 410 maintain such funds in a separate accounting fund and document 411 each payment or draw down from that account so that a complete 412 audit record is established. The separate account and all direct 413 support documentation that is part of the audit record is 414 subject to disclosure as provided in chapter 119, Florida 415 Statutes. 416 I. Annual financial statements.—All hospitals receiving any 417 payments from the district in a given fiscal year, and their 418 parent corporations and foundations, shall each file annual 419 audited financial statements with the district. 420 J. The board of trustees shall timely provide to each 421 member of the Lake County Legislative Delegation: 422 1. All financial statements and reports of the district. 423 2. All audit reports of the district and of all providers 424 that are the subjects of audits initiated by the district. 425 3. By January 31 of each year, an annual report for the 426 previous fiscal year providing a detailed review of the 427 performance of the district containing actual data and analyses 428 of patients served, the names and types of providers used, the 429 ratio of administrative to direct patient expenditures, problems 430 encountered, and recommendations for improvement, including 431 proposed legislative changes to this act. 432 Section 9. FINANCIAL DISCLOSURE AND NOTICE.— 433 A. Members of the board of trustees are subject to the 434 financial disclosure requirements provided in general law. 435 B. Except as otherwise expressly required in this act, the 436 board of trustees is subject to the reporting, notice, and 437 public meetings requirements of sections 189.415, 189.417, and 438 189.418, Florida Statutes. All meeting and workshop notices and 439 minutes of meetings and workshops shall be posted online on a 440 publicly accessible website maintained by the district. 441 Section 10. AMENDMENTS TO THE CHARTER.—This act may not be 442 amended except by action of the Legislature. 443 Section 11. SOVEREIGN IMMUNITY.—For purposes of sovereign 444 immunity pursuant to section 768.28(2), Florida Statutes, any 445 primary care clinic physically located in the district the main 446 purpose of which is to provide indigent care and which directly 447 delivers that care for compensation from the district as 448 provided in this act, and any health care provider who 449 volunteers his or her services to the primary care clinics to 450 provide indigent care without receiving personal financial 451 compensation, shall be conclusively deemed to be primarily 452 acting as an instrumentality of the state. 453 Section 12. COMPREHENSIVE PLANNING.—Except as may otherwise 454 be required by general law, comprehensive planning is not 455 required by this act. 456 Section 13. ESTABLISHMENT AND DISSOLUTION OF THE DISTRICT. 457 The district, established pursuant to section 189.4042, Florida 458 Statutes, is reestablished by this act as a special district 459 under chapter 189, Florida Statutes. The district may be 460 dissolved by action of the Legislature. 461 Section 14. DURATION AND CONTINUATION.—The district expires 462 and shall be dissolved at the end of its fiscal year in 2017 463 without further action by the Legislature. However, the district 464 may be continued at the end of that period for 10 years if in 465 the general election in 2016 a majority of the electors voting 466 in a referendum called for that purpose approve its 467 continuation. The district is subject to a continuation vote in 468 like manner every 10 years thereafter. If the district is 469 dissolved without further action by the Legislature as provided 470 in this act, all property owned by the district is transferred 471 to, and all indebtedness of the district is assumed by, the Lake 472 County Board of County Commissioners effective upon such 473 dissolution. 474 Section 15. REFERENDUM.—The Board of County Commissioners 475 of Lake County shall call, and the Supervisor of Elections of 476 Lake County shall conduct, in conjunction with the general 477 election to be held on November 8, 2016, or such other general 478 election date as provided by general law, a referendum as 479 follows: 480 481 CONTINUATION OF THE NORTH LAKE COUNTY HOSPITAL DISTRICT 482 483 Shall the independent special district known as the 484 North Lake County Hospital District with authority to 485 levy each year an ad valorem tax not to exceed 1 mill 486 to fund indigent care to qualified residents of the 487 district be continued for another 10 years? 488 489 Yes___ 490 491 No____ 492 493 Section 4. Chapters 2002-348 and 2004-460, Laws of Florida, 494 are repealed. 495 Section 5. This act shall take effect upon becoming a law.