Florida Senate - 2022 COMMITTEE AMENDMENT Bill No. SB 1260 Ì711064~Î711064 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/02/2022 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Community Affairs (Gruters) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 189.0762, Florida Statutes, is created 6 to read: 7 189.0762 Conversion of an independent hospital district to 8 a nonprofit entity.— 9 (1) For purposes of this section, the term: 10 (a) “Independent hospital district” means an entity created 11 pursuant to a special act which operates one or more hospitals 12 licensed under chapter 395 and which is governed by the 13 governing body of a special district or by the board of trustees 14 of a public health trust created under s. 154.07. 15 (b) “Nonprofit entity” means a Florida not-for-profit 16 corporation operating under chapter 617. 17 (2) The governing body of an independent hospital district 18 may elect, by a majority vote plus one, to commence an 19 evaluation of the benefits to the residents of converting the 20 independent hospital district to a nonprofit entity if the 21 governing body of such district and each county within which any 22 part of the district’s boundaries are located execute an 23 agreement that meets the requirements of subsection (4). In 24 evaluating the benefits of converting the independent hospital 25 district to a nonprofit entity, the governing body of the 26 district must: 27 (a) Publish notice of and conduct a public hearing in 28 accordance with s. 189.015(1) to provide the residents of such 29 district the opportunity to publicly testify regarding the 30 conversion of the independent hospital district. The public 31 hearing must be held at a meeting other than a regularly noticed 32 meeting of the independent hospital district or an emergency 33 meeting of such district. 34 (b) Contract with an independent entity that has at least 5 35 years of experience conducting comparable evaluations of 36 hospital organizations similar in size and function to the 37 independent hospital district to conduct the evaluation 38 according to applicable industry best practices. The independent 39 entity may not have any affiliation with or financial 40 involvement in the district or with any member of the governing 41 body of such district. 42 (c) Publish all documents considered by the governing body 43 of the independent hospital district on the website of the 44 district. 45 (3) The evaluation must be completed and the final report 46 presented to the governing body of the independent hospital 47 district no later than 180 days after the date of the vote taken 48 by the governing body of such district to evaluate the 49 conversion. The final report must be published on the website of 50 the independent hospital district. The final report must include 51 a statement signed by the presiding officer of the governing 52 board of the independent hospital district and the chief 53 executive officer of the independent entity conducting the 54 evaluation that, upon each person’s reasonable knowledge and 55 belief, the contents and conclusions of the evaluation are true 56 and correct. 57 (4) No later than 120 days after the date the governing 58 body of the independent hospital district received the final 59 report, the governing body of such district must determine, by 60 majority vote plus one, whether the interests of the residents 61 of the district are best served by converting the independent 62 hospital district to a nonprofit entity. If the governing body 63 of the independent hospital district determines conversion is in 64 the best interest of the district, the independent hospital 65 district must negotiate and complete an agreement with the board 66 of county commissioners for each county in which any part of the 67 district boundaries are located before conversion may occur. 68 (5) An agreement between the governing body of the 69 independent hospital district and each county in which any part 70 of the district boundary is located must be completed no later 71 than 120 days after the date of the public meeting at which the 72 governing body of such district determines conversion of the 73 independent hospital district is in the best interest of its 74 residents. The agreement must be in writing, dispose of all 75 assets and liabilities of the independent hospital district, and 76 include: 77 (a) A description of each asset that will be transferred to 78 each county. 79 (b) A description of each liability that will be 80 transferred to each county. 81 (c) The estimated total value of the assets that will be 82 transferred to each county. 83 (d) The estimated total value of the liabilities that will 84 be transferred to each county. 85 (e) If the agreement is with more than one county, a 86 description of the methodology used to allocate the assets and 87 liabilities of the district between the counties. 88 (f) A description of all assets that will be transferred to 89 the succeeding nonprofit entity. 90 (g) A description of all liabilities that will be assumed 91 by the succeeding nonprofit entity. 92 (h) The estimated total value of the assets that will be 93 transferred to the succeeding nonprofit entity. 94 (i) The total value of the liabilities to be assumed by the 95 succeeding nonprofit entity. 96 (j) If any debts remain, how those debts will be resolved. 97 (k) An enforceable commitment that programs and services 98 provided by the district will continue to be provided to all 99 residents of the former district in perpetuity so long as the 100 nonprofit entity is in operation, or if otherwise agreed to 101 between the independent hospital district and the county or 102 counties party to the agreement, until the nonprofit entity has 103 otherwise met all obligations set forth in the agreement. 104 (l) A provision transferring the rights and obligations as 105 agreed to between the governing body of the independent hospital 106 district and the county or counties to the successor nonprofit 107 entity. 108 (m) Any other terms mutually agreed to between the 109 governing body of the independent hospital district and the 110 county or counties. 111 (6)(a) No member of the board of county commissioners for 112 any county that is a party to the agreement may serve on the 113 board of the successor nonprofit entity. 114 (b) Members of the governing body of the independent 115 hospital district may serve on the board of the successor 116 nonprofit entity. 117 (7) The members of the governing body of the independent 118 hospital district and of the board of county commissioners in 119 each county party to the agreement must disclose all conflicts 120 of interest as required by s. 112.313, including, but not 121 limited to: 122 (a) Whether the conversion of the independent hospital 123 district will result in a special private gain or loss to any 124 member of the governing body of the independent hospital 125 district or boards of county commissioners or to any senior 126 executives of the independent hospital district. 127 (b) If any member of the governing body of the independent 128 hospital district will serve on the board of the successor 129 nonprofit entity. Such intent to serve on the board of the 130 successor nonprofit entity does not disqualify any member from 131 voting on the proposed conversion. 132 (8) The evaluation, agreements, disclosures, and any other 133 supporting documents related to the conversion of the 134 independent hospital district must be published on the website 135 of the independent hospital district and each county that is a 136 party to the agreement for 20 days before the governing body of 137 the independent hospital district and the board of county 138 commissioners for each county may vote on the proposed 139 conversion. 140 (9)(a) In a public meeting noticed as required by 141 subsection (2), the governing body of the independent hospital 142 district may approve, by majority vote plus one, the conversion 143 of such district to a nonprofit entity and any agreements 144 related to the conversion. 145 (b) The agreement negotiated under this section must be 146 approved by each board of county commissioners for each affected 147 county in a properly noticed public meeting. 148 (c) If the governing body of the independent hospital 149 district and the board of county commissioners for each affected 150 county approve the proposed agreement, a referendum of the 151 qualified voters of the district must be conducted at the next 152 general election as required under s. 100.031 for independent 153 hospital districts that exercise ad valorem taxing powers. A 154 referendum is not required for independent hospital districts 155 that do not exercise ad valorem taxing powers. 156 (d) If approved by the qualified electors of the 157 independent hospital district voting in a referendum conducted 158 in accordance with paragraph (c), the agreement between the 159 independent hospital district and each board of county 160 commissioners for each affected county shall go into full force 161 and effect. The independent hospital district shall file a copy 162 of the agreement with the department no later than 10 days after 163 the date of the referendum approving the agreement and 164 conversion. 165 (10) No later than 30 days after the complete transfer of 166 assets and liabilities as provided in the agreement, the 167 independent hospital district shall notify the department. The 168 district shall be dissolved automatically upon receipt of the 169 notice by the department. 170 (11) If the governing body of the independent hospital 171 district and the board of county commissioners of each affected 172 county are unable to reach an agreement that would result in the 173 conversion of the independent hospital district to a nonprofit 174 entity, the district shall continue to exist. 175 Section 2. This act shall take effect July 1, 2022. 176 177 ================= T I T L E A M E N D M E N T ================ 178 And the title is amended as follows: 179 Delete everything before the enacting clause 180 and insert: 181 A bill to be entitled 182 An act relating to independent hospital districts; 183 creating s. 189.0762, F.S.; defining the terms 184 “independent hospital district” and “nonprofit 185 entity”; authorizing the governing body of an 186 independent hospital district to evaluate certain 187 benefits of the potential conversion of the 188 independent hospital district to a nonprofit entity 189 under certain circumstances; specifying requirements 190 for such evaluations; requiring that the evaluation be 191 completed and the final report be presented to the 192 governing body within a specified timeframe; requiring 193 the report to be published on the independent hospital 194 district’s website; providing requirements for the 195 report; requiring the governing body to make certain 196 determinations within a specified timeframe; requiring 197 the governing body to negotiate and complete an 198 agreement with the board of county commissioners for 199 each affected county before converting the independent 200 hospital district to a nonprofit entity; requiring 201 that such agreements be entered into within a 202 specified timeframe; providing requirements for such 203 agreements; prohibiting members of the board of county 204 commissioners for counties party to such agreements 205 from serving on the board of the successor nonprofit 206 entity; allowing members of the governing body of the 207 independent hospital district to serve on the board of 208 the successor nonprofit entity; requiring members of 209 the governing body and each board of county 210 commissioners party to the agreement to disclose all 211 conflicts of interest; requiring the evaluation, all 212 agreements and disclosures, and any other supporting 213 documents related to the conversion to be published on 214 the websites of the independent hospital district and 215 each county that is party to the agreement for a 216 specified timeframe before each county may vote on the 217 proposed conversion; providing for the conversion of 218 the independent hospital district to a nonprofit 219 entity; providing public meeting requirements; 220 requiring the independent hospital district to notify 221 the Department of Health of the transfer of assets and 222 liabilities to the nonprofit entity within a specified 223 timeframe; providing for dissolution of the district 224 upon the department’s receipt of such notification; 225 providing that an independent hospital district 226 continues to exist if the governing body and the board 227 of county commissioners for each affected county are 228 unable to reach an agreement; providing an effective 229 date.