Florida Senate - 2025                               CS for SB 68
       
       
        
       By the Committee on Health Policy; and Senator Martin
       
       
       
       
       
       588-02855-25                                            202568c1
    1                        A bill to be entitled                      
    2         An act relating to health facilities authorities;
    3         amending s. 154.205, F.S.; revising the definition of
    4         the term “health facility” to include other entities
    5         and associations organized not for profit; amending s.
    6         154.209, F.S.; revising the powers of health
    7         facilities authorities to include the power to issue
    8         certain loans and execute related loan agreements;
    9         amending s. 154.213, F.S.; specifying requirements for
   10         projects financed by loan agreements issued by a
   11         health facilities authority; specifying provisions
   12         that may be included in such loan agreements; amending
   13         ss. 154.219, 154.221, 154.225, 154.235, and 154.247,
   14         F.S.; conforming provisions to changes made by the
   15         act; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Subsection (8) of section 154.205, Florida
   20  Statutes, is amended to read:
   21         154.205 Definitions.—The following terms, whenever used in
   22  this part, shall have the following meanings unless a different
   23  meaning clearly appears from the context:
   24         (8) “Health facility” means any private corporation or
   25  other entity or association organized not for profit, including,
   26  but not limited to, a limited liability company that is
   27  organized as a not-for-profit organization and controlled
   28  directly or indirectly by one or more not-for-profit
   29  organizations, and authorized by law to provide:
   30         (a) Hospital services in accordance with chapter 395;
   31         (b) Nursing home care services in accordance with chapter
   32  400;
   33         (c) Life care services in accordance with chapter 651;
   34         (d) Services for the developmentally disabled under chapter
   35  393;
   36         (e) Services for the mentally ill under chapter 394;
   37         (f) Assisted living services in accordance with chapter
   38  429; or
   39         (g) Hospice services in accordance with chapter 400.
   40  
   41  The term also includes any private corporation or other entity
   42  or association organized not for profit which offers independent
   43  living facilities and services as part of a retirement community
   44  that provides nursing home care services or assisted living
   45  services on the same campus.
   46         Section 2. Present subsection (19) of section 154.209,
   47  Florida Statutes, is redesignated as subsection (21), a new
   48  subsection (19) and subsection (20) are added to that section,
   49  and subsections (6), (8), (9), (13), and (18) of that section
   50  are amended, to read:
   51         154.209 Powers of authority.—The purpose of the authority
   52  shall be to assist health facilities in the acquisition,
   53  construction, financing, and refinancing of projects in any
   54  incorporated or unincorporated area within the geographical
   55  limits of the local agency. For this purpose, the authority is
   56  authorized and empowered:
   57         (6) To make and execute agreements of lease, contracts,
   58  deeds, loan agreements, mortgages, notes, and other instruments
   59  necessary or convenient in the exercise of its powers and
   60  functions under this part.
   61         (8) To pledge or assign any money, rents, loan payments,
   62  charges, fees, or other revenues and any proceeds derived from
   63  sales of property, insurance, or condemnation awards.
   64         (9) To fix, charge, and collect rents, loan payments, fees,
   65  and charges for the use of any project.
   66         (13) To acquire existing projects and to refund outstanding
   67  bonds, obligations, mortgages, or advances issued, made, or
   68  given by or on behalf of a health facility for the cost of such
   69  project.
   70         (18) To participate in and issue bonds and other forms of
   71  indebtedness for the purpose of establishing and maintaining an
   72  accounts receivable program on behalf of a health facility or
   73  group of health facilities. Notwithstanding any other provisions
   74  of this part, the structuring and financing of an accounts
   75  receivable program pursuant to this subsection shall constitute
   76  a project and may be structured for the benefit of health
   77  facilities within or outside the geographical limits of the
   78  local agency. An accounts receivable program may include the
   79  financing of accounts receivable acquired by a health facility
   80  from other not-for-profit health care organizations
   81  corporations, whether or not controlled by or affiliated with
   82  the health facility and regardless of location within or outside
   83  the geographical limits of this state.
   84         (19)To make mortgage or other secured or unsecured loans
   85  to or for the benefit of any health facility for the cost of a
   86  project in accordance with an agreement between the authority
   87  and the health facility. Such loans may be made to any entity
   88  affiliated with a health facility that undertakes such
   89  financing, if the proceeds of such loan are made available to or
   90  applied for the benefit of such health facility.
   91         (20)To make mortgage or other secured or unsecured loans
   92  to or for the benefit of a health facility in accordance with an
   93  agreement between the authority and the health facility to
   94  refund or refinance outstanding bonds, obligations, loans,
   95  indebtedness, or advances issued, made, given, or incurred by or
   96  for the benefit of such health facility for the cost of a
   97  project. Such loans may be made to any entity affiliated with a
   98  health facility that undertakes such refunding or refinancing,
   99  if the proceeds of such loan are made available to or applied
  100  for the benefit of such health facility.
  101         Section 3. Section 154.213, Florida Statutes, is amended to
  102  read:
  103         154.213 Agreements of lease; loan agreements.—In
  104  undertaking any project pursuant to this part, the authority
  105  shall first obtain a valid certificate of need evidencing need
  106  for the project and a statement that the project serves a public
  107  purpose by advancing the commerce, welfare, and prosperity of
  108  the local agency and its people. A No project financed under the
  109  provisions of this part may not shall be operated by the
  110  authority or any other governmental agency; however, the
  111  authority may temporarily operate or cause to be operated all or
  112  any part of a project to protect its interest therein pending
  113  any leasing of such project in accordance with the provisions of
  114  this part. The authority may lease a project or projects to a
  115  health facility for operation and maintenance in such manner as
  116  to effectuate the purposes of this part under an agreement of
  117  lease in form and substance not inconsistent herewith. Projects
  118  financed or refinanced by the authority with the proceeds of
  119  bonds issued for the benefit of a health facility pursuant to s.
  120  154.209(19) or (20) shall be governed by one or more loan
  121  agreements made between the authority and a health facility, or
  122  between the authority and an entity affiliated with a health
  123  facility that undertakes such financing, if the proceeds of such
  124  loan are made available to or applied for the benefit of such
  125  health facility.
  126         (1) Any such agreement of lease or loan agreement may
  127  provide, among other provisions, that:
  128         (a) The lessee under an agreement of lease or an obligor
  129  under a loan agreement shall at its own expense operate, repair,
  130  and maintain the project or projects financed or refinanced
  131  leased thereunder.
  132         (b) The rent payable under the agreement of lease or the
  133  loan payments made pursuant to the loan agreement shall in the
  134  aggregate be not less than an amount sufficient to pay all of
  135  the interest, principal, and redemption premiums, if any, on the
  136  bonds that are shall be issued by the authority to pay the cost
  137  of the project or projects financed or refinanced leased
  138  thereunder.
  139         (c) The lessee under an agreement of lease or the obligor
  140  under a loan agreement shall pay all costs incurred by the
  141  authority in connection with the acquisition, financing,
  142  construction, and administration of the project or projects
  143  financed or refinanced leased, except as may be paid out of the
  144  proceeds of bonds or otherwise, including, but not without being
  145  limited to,: insurance costs, the cost of administering the bond
  146  resolution authorizing such bonds and any trust agreement
  147  securing the bonds, and the fees and expenses of trustees,
  148  paying agents, attorneys, consultants, and others.
  149         (d) The terms of the agreement of lease or loan agreement
  150  shall terminate not earlier than the date on which all such
  151  bonds and all other obligations incurred by the authority in
  152  connection with the project or projects financed or refinanced
  153  leased thereunder are shall be paid in full, including interest,
  154  principal, and redemption premiums, if any, or adequate funds
  155  for such payment are shall be deposited in trust.
  156         (e) The lessee’s obligation to pay rent under the agreement
  157  of lease and the obligor’s obligation to make loan payments
  158  under a loan agreement may shall not be subject to cancellation,
  159  termination, or abatement by the lessee or the obligor until
  160  such payment of the bonds or provision for such payment is shall
  161  be made.
  162         (2) Such agreement of lease or loan agreement may contain
  163  such additional provisions as in the determination of the
  164  authority are necessary or convenient to effectuate the purposes
  165  of this part, including provisions for extensions of the term
  166  and renewals of the lease or loan agreement and vesting in the
  167  lessee an option to purchase the project leased thereunder
  168  pursuant to such terms and conditions consistent with this part
  169  as shall be prescribed in the lease. Except as may otherwise be
  170  expressly stated in the agreement of lease or loan agreement, to
  171  provide for any contingencies involving the damaging,
  172  destruction, or condemnation of the project financed or
  173  refinanced leased or any substantial portion thereof, such
  174  option to purchase may not be exercised unless all bonds issued
  175  for such project, including all principal, interest, and
  176  redemption premiums, if any, and all other obligations incurred
  177  by the authority in connection with such project, shall have
  178  been paid in full or sufficient funds shall have been deposited
  179  in trust for such payment. The purchase price of such project
  180  shall not be less than an amount sufficient to pay in full all
  181  of the bonds, including all principal, interest, and redemption
  182  premiums, if any, issued for the project then outstanding and
  183  all other obligations incurred by the authority in connection
  184  with such project.
  185         Section 4. Paragraph (b) of subsection (4) of section
  186  154.219, Florida Statutes, is amended to read:
  187         154.219 Revenue bonds.—
  188         (4) Any resolution or resolutions authorizing any revenue
  189  bonds or any issue of revenue bonds may contain provisions which
  190  shall be a part of the contract with the holders of the revenue
  191  bonds to be authorized, as to:
  192         (b) The rentals, loan payments, fees, and other charges to
  193  be charged, the amounts to be raised in each year thereby, and
  194  the use and disposition of the revenues.
  195         Section 5. Section 154.221, Florida Statutes, is amended to
  196  read:
  197         154.221 Security of bondholders.—In the discretion of the
  198  authority, any bonds issued under the provisions of this part
  199  may be secured by a trust agreement by and between the authority
  200  and a corporate trustee, which may be any trust company or bank
  201  having the powers of a trust company within or outside without
  202  the state. Such trust agreement or resolution providing for the
  203  issuance of such bonds may pledge or assign the fees, rents,
  204  charges, or proceeds from the sale of any project or part
  205  thereof, insurance proceeds, condemnation awards, and other
  206  funds and revenues to be received therefor, and may provide for
  207  the mortgaging of any project or any part thereof as security
  208  for repayment of the bonds. Such trust agreement or resolution
  209  providing for the issuance of such bonds shall contain such
  210  provisions for protecting and enforcing the rights and remedies
  211  of the bondholders as may be reasonable and proper and not in
  212  violation of law, including covenants setting forth the duties
  213  of the authority in relation to the acquisition of property and
  214  the construction, improvement, maintenance, repair, operation,
  215  and insurance of the project or projects in connection with
  216  which such bonds shall have been authorized; the fees, rents,
  217  loan payments, and other charges to be fixed and collected; the
  218  sale of any project, or part thereof, or other property; the
  219  terms and conditions for the issuance of additional bonds; and
  220  the custody, safeguarding, and application of all moneys. It
  221  shall be lawful for any bank or trust company incorporated under
  222  the laws of the state which may act as depositary of the
  223  proceeds of bonds, revenues, or other money hereunder to furnish
  224  such indemnifying bonds or to pledge such securities as may be
  225  required by the authority. Any such trust agreement or
  226  resolution shall set forth the rights and remedies of the
  227  bondholders and of the trustee and may restrict the individual
  228  right of action by bondholders. In addition to the foregoing,
  229  any such trust agreement or resolution may contain such other
  230  provisions as the authority may deem reasonable and proper for
  231  the security of the bondholders. All expenses incurred in
  232  carrying out the provisions of such trust agreement or
  233  resolution may be treated as a part of the cost of the project
  234  or projects in connection with which bonds are issued or as an
  235  expense of administration of such projects, as the case may be.
  236         Section 6. Section 154.225, Florida Statutes, is amended to
  237  read:
  238         154.225 Revenues.—
  239         (1) The authority is hereby authorized to fix and to
  240  collect fees, rents, loan payments, and charges for the use of
  241  any project or projects and any part or section thereof. The
  242  authority may require that the health facility operating any
  243  project or any part thereof financed or refinanced under this
  244  chapter or the lessee of any project or part thereof shall
  245  operate, repair, and maintain the project and bear the cost
  246  thereof and other costs of the authority in connection with the
  247  project or projects financed or refinanced leased as may be
  248  provided in the agreement of lease, loan agreement, or other
  249  contract with the authority, in addition to other obligations
  250  imposed under such agreement or contract.
  251         (2) The fees, rents, loan payments, and charges shall be so
  252  fixed as to provide a fund sufficient to pay the principal of,
  253  and the interest on, such bonds as the same shall become due and
  254  payable and to create reserves, if any, deemed by the authority
  255  to be necessary for such purposes. The fees, rents, loan
  256  payments, charges, and all other revenues and proceeds derived
  257  from the project or projects in connection with which the bonds
  258  of any issue shall have been issued, except such part thereof as
  259  may be necessary for such reserves or any expenditures as may be
  260  provided in the resolution authorizing the issuance of such
  261  bonds or in the trust agreement securing the same, shall be set
  262  aside at such regular intervals as may be specified in such
  263  resolution or such trust agreement in a sinking fund which is
  264  hereby pledged to, and charged with, the payment of the
  265  principal of and the interest on such bonds as the same shall
  266  become due and the redemption price or the purchase price of
  267  bonds retired by call or purchase as therein provided. Such
  268  pledge shall be valid and binding from the time when the pledge
  269  is made. The fees, rents, loan payments, charges, and other
  270  revenues and moneys so pledged and thereafter received by the
  271  authority shall immediately be subject to the lien of such
  272  pledge without any physical delivery thereof or further act, and
  273  the lien of any such pledge shall be valid and binding as
  274  against all parties having claims of any kind in tort, contract,
  275  or otherwise against the authority, irrespective of whether such
  276  parties have notice thereof. The use and disposition of money to
  277  the credit of such sinking fund shall be subject to the
  278  provisions of the resolution authorizing the issuance of such
  279  bonds or of such trust agreement. Except as may otherwise be
  280  provided in the resolution or the trust agreement, the sinking
  281  fund shall be a fund for all such bonds without distinction or
  282  priority of one over another.
  283         Section 7. Subsection (1) of section 154.235, Florida
  284  Statutes, is amended to read:
  285         154.235 Refunding bonds.—
  286         (1) The authority is hereby authorized to provide for the
  287  issuance of revenue bonds for the purpose of refunding:
  288         (a) Any of its revenue bonds then outstanding; and
  289         (b)Revenue bonds of other issuers, the proceeds of which
  290  were used to finance or refinance projects of one or more health
  291  facilities.
  292  
  293  Such refunds may include, including the payment of any
  294  redemption premium thereon and any interest accrued or to accrue
  295  to the earliest or subsequent date of redemption, purchase, or
  296  maturity of such revenue bonds.
  297         Section 8. Section 154.247, Florida Statutes, is amended to
  298  read:
  299         154.247 Financing of projects located outside of local
  300  agency.—Notwithstanding any provision of this part to the
  301  contrary, an authority may, if it finds that there will be a
  302  benefit or a cost savings to a health facility located within
  303  its jurisdiction, issue bonds for such health facility to
  304  finance projects for such health facility, or for another
  305  private corporation or other entity or association organized
  306  not-for-profit corporation under common control with such health
  307  facility, located outside the geographical limits of the local
  308  agency or outside this state.
  309         Section 9. This act shall take effect July 1, 2025.