Florida Senate - 2022 SB 1260 By Senator Gruters 23-01356-22 20221260__ 1 A bill to be entitled 2 An act relating to the conversion of a public health 3 care system; creating s. 155.42, F.S.; defining terms; 4 authorizing the governing body of a public health care 5 system to evaluate the potential conversion of the 6 public health care system to a nonprofit entity; 7 specifying requirements for such evaluation; requiring 8 such governing body to publish notice of its completed 9 evaluation in a specified manner; authorizing a public 10 health care system and local governing authority to 11 negotiate an agreement for such conversion; specifying 12 requirements for such agreement; authorizing the 13 governing body of the public health care system and 14 local governing authority to approve such conversion 15 subject to certain requirements; requiring members of 16 the governing body of the public health care system to 17 disclose whether they intend to serve on the board of 18 the successor nonprofit entity; requiring the public 19 health care system and local governing authority to 20 jointly submit a notice of completion of such 21 conversion to the Legislature after certain 22 requirements are met; providing that the public health 23 care system is dissolved as a matter of law on the 24 date that such notice is submitted to the Legislature; 25 providing an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Section 155.42, Florida Statutes, is created to 30 read: 31 155.42 Conversion of a public health care system.— 32 (1) For purposes of this section, the term: 33 (a) “Affected community” means those persons residing 34 within the geographic boundaries of the public health care 35 system. 36 (b) “Local governing authority” means the governing 37 authority of the county in which the public health care system 38 is primarily located and provides health care services. 39 (c) “Public health care system” means a county, district, 40 or municipal hospital or health care system created pursuant to 41 a special act. 42 (2)(a) The governing body of a public health care system 43 may elect, by a majority vote plus one, to evaluate the 44 potential conversion of the public health care system to a 45 nonprofit entity. 46 (b) If the governing body of a public health care system 47 elects to evaluate the potential conversion of the public health 48 care system as set forth in paragraph (a), the governing body 49 must evaluate the potential benefits to the affected community 50 of converting the public health care system to a nonprofit 51 entity and must: 52 1. Publish notice of and conduct a public hearing in 53 accordance with s. 189.015 to provide the affected community the 54 opportunity to publicly testify regarding the conversion of the 55 public health care system. 56 2. Contract with a certified public accounting firm or 57 other firm that has substantial expertise in the valuation of 58 the type of activities engaged in by the public health care 59 system to render an independent valuation of the public health 60 care system. The certified public accounting firm or other firm 61 shall certify its valuation of the public health care system. 62 3. Make publicly available on the public health care 63 system’s website all documents considered by the governing body 64 during its evaluation. 65 (c) After completing its evaluation, the governing body of 66 the public health care system shall publish notice of the 67 evaluation in the same manner as provided in s. 189.015(1). 68 (3)(a) Upon completing the evaluation of the benefits of 69 the conversion of the public health care system, if the 70 governing body of the public health care system determines that 71 it is in the best interest of the affected community to convert 72 the public health care system to a nonprofit entity, the public 73 health care system may negotiate an agreement with the local 74 governing authority which contains the terms and conditions by 75 which the nonprofit entity that is succeeding the public health 76 care system may acquire title and possession of property, 77 rights, and other appurtenances owned by the public health care 78 system and any other terms or conditions governing the 79 conversion. 80 (b) An agreement between the public health care system and 81 the local governing authority to convert the public health care 82 system to a nonprofit entity must be in writing and must include 83 all of the following terms and conditions: 84 1. A description of the terms and conditions of all 85 proposed agreements. 86 2. A description of the assets and liabilities, if any, 87 that will be transferred to the local governing authority upon 88 conversion of the public health care system. 89 3. The estimated total value of the assets and liabilities, 90 if any, that will be transferred to the local governing 91 authority upon conversion of the public health care system. 92 4. A description of the assets and liabilities, if any, 93 that will be transferred to the succeeding nonprofit entity upon 94 conversion of the public health care system. 95 5. The estimated total value of the assets and liabilities, 96 if any, that will be transferred to the succeeding nonprofit 97 entity upon conversion of the public health care system. 98 6. A provision that the remaining assets and liabilities, 99 if any, of the public health care system which are not 100 transferred to the local governing authority or the succeeding 101 nonprofit entity will be resolved upon conversion of the public 102 health care system. 103 7. An enforceable commitment that programs and services 104 provided by the public health care system will continue to be 105 provided to the affected community in perpetuity so long as the 106 nonprofit entity is in operation or, if otherwise agreed to by 107 the public health care system and the local governing authority, 108 until the nonprofit entity has otherwise met all obligations set 109 forth in the agreement. 110 8. A provision that transfers the rights and obligations 111 agreed to by the public health care system and the local 112 governing authority to the successor nonprofit entity upon 113 conversion of the public health care system. 114 9. A provision that prohibits a board member of the local 115 governing authority from serving on the board of the successor 116 nonprofit entity; however, the agreement may allow for members 117 of the governing body of the public health care system to serve 118 on the board of the successor nonprofit entity. 119 10. Any other terms or conditions mutually agreed upon by 120 the public health care system and the local governing authority. 121 (4) Upon completing the negotiation of the agreement as 122 provided in subsection (3), the governing body of the public 123 health care system and the local governing authority may elect, 124 by a majority vote plus one of each of the governing bodies, to 125 approve the conversion of the public health care system to a 126 nonprofit entity pursuant to the terms and conditions of the 127 agreement and subject to all of the following: 128 (a) The evaluations, agreements, disclosures, and all other 129 documents supporting the conversion must be published on the 130 websites of the public health care system and the local 131 governing authority and made publicly available for a period of 132 at least 20 days before the governing bodies of the public 133 health care system and the local governing authority may vote to 134 approve the conversion of the public health care system to a 135 nonprofit entity pursuant to the terms and conditions of the 136 agreement. 137 (b) The governing bodies of the public health care system 138 and the local governing authority may not vote to approve the 139 conversion of the public health care system unless the valuation 140 required in subparagraph (2)(b)2. was completed within the 141 preceding 18 months. 142 (5) A member of the governing body of the public health 143 care system must disclose whether he or she intends to serve on 144 the board of the successor nonprofit entity. 145 (6) After the assets and liabilities, if any, are 146 transferred to the succeeding nonprofit entity and all necessary 147 requirements to complete the conversion of the public health 148 care system to a nonprofit entity are met, the public health 149 care system and the local governing authority shall jointly 150 submit a notice of the completion of the conversion to the 151 President of the Senate and the Speaker of the House of 152 Representatives. The public health care system is deemed 153 dissolved as a matter of law effective on the date that such 154 notice is submitted to the Legislature. 155 Section 2. This act shall take effect July 1, 2022.