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         155.42Conversion 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.