Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 1260
       
       
       
       
       
       
                                Ì711064~Î711064                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/02/2022           .                                
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       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.