Senate Bill sb2426

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2002                                  SB 2426

    By Senator Cowin





    11-1404-02

  1                      A bill to be entitled

  2         An act relating to state university boards of

  3         trustees; amending s. 240.213, F.S.; describing

  4         powers and duties of boards of trustees to

  5         procure liability insurance; deleting

  6         provisions relating to the Board of Regents;

  7         amending s. 766.112, F.S.; prescribing

  8         applicability of provisions relating to

  9         comparative fault to boards of trustees;

10         amending s. 768.28, F.S.; providing venue in

11         actions brought against boards of trustees;

12         providing applicability of provisions relating

13         to waiver of sovereign immunity to boards of

14         trustees; amending s. 240.215, F.S.; providing

15         for payment of costs in civil actions against

16         employees, officers, agents, and members of

17         boards of trustees; amending s. 240.513, F.S.;

18         providing organization and governance of the J.

19         Hillis Miller Health Center; amending s.

20         240.5135, F.S.; providing authority of the

21         University of Florida board of trustees with

22         respect to procurement of insurance for Shands

23         Jacksonville Healthcare, Inc.; amending s.

24         626.852, F.S.; providing inapplicability of

25         provisions relating to insurance adjusters to

26         employees and agents of a board of trustees;

27         amending s. 627.912, F.S.; requiring certain

28         reports with respect to actions for damages

29         caused by employees or agents of a board of

30         trustees; providing an effective date.

31

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  Be It Enacted by the Legislature of the State of Florida:

  2

  3         Section 1.  Section 240.213, Florida Statutes, is

  4  amended to read:

  5         240.213  Boards of trustees Board authorized to secure

  6  liability insurance.--

  7         (1)  A board of trustees of a state university The

  8  Board of Regents is authorized to secure, or otherwise provide

  9  as a self-insurer, or by a combination thereof, comprehensive

10  general liability insurance, including professional liability

11  for health care and veterinary sciences, for:

12         (a)  The board of trustees.

13         (b)  The officers and members of the board of trustees

14  students and faculty of any university within the State

15  University System.

16         (c)  The faculty and other officers, employees and, or

17  agents of the board of trustees.

18         (d)  The students of a state university professional

19  practitioners practicing a profession within, or by virtue of

20  employment by, any university in the State University System.

21         (e)  A state university or any college, school,

22  institute, center, or program thereof Any of the universities

23  in the State University System or subdivisions thereof.

24         (f)  Any not-for-profit corporation organized pursuant

25  to chapter 617, and the directors, officers, employees, and

26  agents thereof, which is affiliated with a state university in

27  the State University System, if the corporation is operated

28  for the benefit of the a state university in a manner

29  consistent with the best interests of the state, and if such

30  participation is approved by a self-insurance program the

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  appropriate insurance trust fund council, university

  2  president, and the board of trustees Regents.

  3

  4  The Board of Regents is authorized to delegate to the

  5  universities, as appropriate, the authority to secure any

  6  liability insurance for the above.

  7         (2)  In the event a the board of trustees Regents

  8  adopts a self-insurance program, a governing council chaired

  9  by the vice president for health affairs or his or her

10  academic equivalent shall be established to administer the

11  program and its duties and responsibilities, including the

12  administration of self-insurance program assets and

13  expenditure policies, which shall be defined in rules as

14  authorized by this section. The council shall have an annual

15  actuary review performed to establish funding requirements to

16  maintain the fiscal integrity of the self-insurance program.

17  the necessary trust funds in the State Treasury may be

18  established pursuant to law.  Provided that the annual

19  actuarial report to the self-insurance trust fund council is

20  provided each year to the Auditor General within 60 days after

21  acceptance by the council, The assets of a self-insurance

22  program shall may be deposited outside the State Treasury and,

23  at the option of the Board of Regents, in accounts established

24  pursuant to law for that purpose. Self-insurance program trust

25  funds shall be administered in accordance with rules as

26  authorized by this section established by the Board of

27  Regents.

28         (3)  Any self-insurance program created under this

29  section shall be funded by the entities and individuals

30  protected by such program. There shall be no funds

31  appropriated directly to any self-insurance program insurance

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  trust fund. The assets of the self-insurance program shall be

  2  the property of the university board of trustees and shall be

  3  used only to pay the administrative expenses of the

  4  self-insurance program and to pay any claim, judgment, or

  5  claims bill arising out of activities for which the

  6  self-insurance program was created. Investment income that is

  7  in excess of that income necessary to ensure the solvency of a

  8  self-insurance program as established by a casualty actuary

  9  may be used to defray the annual contribution paid into the

10  program by the entities and individuals protected by the

11  program. The Board of Regents is authorized to accept any

12  payments, receipts, gifts, or donations made for the purposes

13  of this section and deposit such funds in the appropriate

14  insurance trust fund.

15         (4)  No self-insurance program adopted by a the board

16  of trustees Regents may sue or be sued.  The Board of Regents

17  shall pay, out of the assets of a trust fund established

18  pursuant to this section, any claim or judgment for which the

19  self-insurance trust funds were created and which is rendered

20  against the board.  The claims files of any such program are

21  privileged and confidential, exempt from the provisions of s.

22  119.07(1), and are only for the use of the program in

23  fulfilling its duties. Any self-insurance trust fund and

24  revenues generated by that fund shall only be used to pay

25  claims and administration expenses.

26         (5)  Each self-insurance program council shall make

27  provision for an annual postaudit of its financial accounts to

28  be conducted by an independent certified public accountant in

29  accordance with rules to be adopted by the board of trustees.

30  The annual audit report must include a management letter and

31  shall be submitted to the board of trustees for review. The

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  university board of trustees shall have the authority to

  2  require and receive from the self-insurance program council or

  3  from its independent auditor any detail or supplemental data

  4  relative to the operation of the self-insurance program.

  5         (6)(5)  The university boards of trustees are Board of

  6  Regents is authorized and empowered to make such rules as may

  7  be necessary to carry out the provisions of this section,

  8  including the delegation of authority, other than rulemaking

  9  authority, to appropriate levels of administration within the

10  State University System.

11         Section 2.  Subsection (2) of section 766.112, Florida

12  Statutes, is amended to read:

13         766.112  Comparative fault.--

14         (2)  In an action for damages for personal injury or

15  wrongful death arising out of medical malpractice, whether in

16  contract or tort, when an apportionment of damages pursuant to

17  s. 768.81 is attributed to a the board of trustees of a state

18  university Regents, the court shall enter judgment against the

19  board of trustees Regents on the basis of the board's such

20  party's percentage of fault and not on the basis of the

21  doctrine of joint and several liability. No amount of any

22  judgment attributed to a board of trustees shall be assessed

23  against any other party, including a codefendant of the board

24  of trustees. The sole remedy available to a claimant to

25  collect a judgment against a board of trustees damages,

26  subject to the provisions of this subsection, against the

27  Board of Regents shall be pursuant to s. 768.28.

28         Section 3.  Subsections (1) and (2) of section 768.28,

29  Florida Statutes, are amended to read:

30         768.28  Waiver of sovereign immunity in tort actions;

31  recovery limits; limitation on attorney fees; statute of

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  limitations; exclusions; indemnification; risk management

  2  programs.--

  3         (1)  In accordance with s. 13, Art. X of the State

  4  Constitution, the state, for itself and for its agencies or

  5  subdivisions, hereby waives sovereign immunity for liability

  6  for torts, but only to the extent specified in this act.

  7  Actions at law against the state or any of its agencies or

  8  subdivisions to recover damages in tort for money damages

  9  against the state or its agencies or subdivisions for injury

10  or loss of property, personal injury, or death caused by the

11  negligent or wrongful act or omission of any employee of the

12  agency or subdivision while acting within the scope of the

13  employee's office or employment under circumstances in which

14  the state or such agency or subdivision, if a private person,

15  would be liable to the claimant, in accordance with the

16  general laws of this state, may be prosecuted subject to the

17  limitations specified in this act. Other than an action

18  against a state university board of trustees, which must be

19  brought in the county in which that university's main campus

20  is located, any such action may be brought in the county where

21  the property in litigation is located or, if the affected

22  agency or subdivision has an office in such county for the

23  transaction of its customary business, where the cause of

24  action accrued.

25         (2)  As used in this act, "state agencies or

26  subdivisions" include the executive departments, the

27  Legislature, the judicial branch (including public defenders),

28  and the independent establishments of the state, including

29  state university boards of trustees; counties and

30  municipalities; and corporations primarily acting as

31

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  instrumentalities or agencies of the state, counties, or

  2  municipalities, including the Spaceport Florida Authority.

  3         Section 4.  Section 240.215, Florida Statutes, is

  4  amended to read:

  5         240.215  Payment of costs of civil action against

  6  officers, agents, employees, or members of state university

  7  the board of trustees Regents.--

  8         (1)  Whenever any civil action has been brought against

  9  any officers, agents, employees, or members of a state

10  university board of trustees board member or employee for any

11  act or omission arising out of and in the course of the

12  performance of his or her duties and responsibilities, the

13  board of trustees Regents may defray all costs of defending

14  such action, including reasonable attorney's fees and expenses

15  together with costs of appeal, and may save harmless and

16  protect such person from any financial loss resulting from the

17  lawful performance of his or her duties and responsibilities.

18  Claims based on such actions or omissions may, in the

19  discretion of the board of trustees Regents, be settled prior

20  to or after the filing of suit thereon.  The board of trustees

21  Regents may arrange for and pay the premium for appropriate

22  insurance to cover all such losses and expenses.

23         (2)  An employee or agent under the right of control of

24  the board of trustees Regents who, pursuant to board of

25  Regents' policies or rules, renders medical care or treatment

26  at any hospital or health care facility with which the board

27  of trustees Regents maintains an affiliation agreement whereby

28  the hospital or health care facility provides to the board of

29  trustees Regents a clinical setting for health care education,

30  research, and services, shall not be deemed to be an agent of

31  any person other than the Board of Regents in any civil action

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  resulting from any act or omission of the employee or agent

  2  while rendering said medical care or treatment.  For this

  3  subsection to apply, the patient shall be provided separate

  4  written conspicuous notice by the board of trustees Regents or

  5  by the hospital or health care facility, and shall acknowledge

  6  receipt of this notice, in writing, unless impractical by

  7  reason of an emergency, either personally or through another

  8  person authorized to give consent for him or her, that he or

  9  she will receive care provided by board of trustees' Regents'

10  employees and liability, if any, that may arise from that care

11  is limited as provided by law.  Compliance by a hospital or

12  health care facility with the requirements of chapter 395 or

13  s. 766.110(1) shall not be used as evidence in any civil

14  action to establish an employment or agency relationship

15  between the hospital or health care facility and an employee

16  or agent of the board of trustees Regents providing services

17  within the hospital or health care facility.

18         (3)  All faculty physicians employed by the board of

19  trustees Regents who are subject to the requirements of s.

20  456.013 shall complete their risk management continuing

21  education on issues specific to academic medicine. Such

22  continuing education shall include instruction for the

23  supervision of resident physicians as required by the

24  Accreditation Council for Graduate Medical Education.  The

25  boards described in s. 456.013 shall adopt rules to implement

26  the provisions of this subsection.

27         (4)  The board of trustees may use There are

28  appropriated out of any funds available in the university

29  system, not subject to the obligation of contract, covenant,

30  or trust in, the amounts necessary to carry out the purposes

31  of this section.

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1         (5)  Failure of the board of trustees Regents or an

  2  affiliated health care provider to do any act authorized by

  3  this section shall not constitute a cause of action against

  4  the board of trustees Regents, or an affiliated health care

  5  provider, or any of their members, officers, agents, or

  6  employees.

  7         Section 5.  Subsection (1), paragraph (a) of subsection

  8  (3), and subsection (4) of section 240.513, Florida Statutes,

  9  are amended to read:

10         240.513  University of Florida; J. Hillis Miller Health

11  Center.--

12         (1)  There is established the J. Hillis Miller Health

13  Center at the University of Florida, including campuses at

14  Gainesville and Jacksonville and affiliated teaching hospitals

15  which shall include the following colleges:

16         (a)  College of Dentistry.

17         (b)  College of Health Health-Related Professions.

18         (c)  College of Medicine.

19         (d)  College of Nursing.

20         (e)  College of Pharmacy.

21         (f)  College of Veterinary Medicine and related

22  teaching hospitals.

23         (3)(a)  The University of Florida Health Center

24  Operations and Maintenance Trust Fund shall is hereby created,

25  to be administered by the board of trustees for the University

26  of Florida Department of Education.  Funds shall be credited

27  to the trust fund from the sale of goods and services

28  performed by the University of Florida Veterinary Medicine

29  Teaching Hospitals Hospital.  The purpose of the trust fund is

30  to support the instruction, research, and service missions of

31  the University of Florida College of Veterinary Medicine.

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1         (4)(a)  The State Board of Education shall lease the

  2  hospital facilities of the health center, known as the Shands

  3  Teaching Hospital and Clinics, and consisting of Building 446

  4  and parts of Buildings 204 and 205 on the campus of the

  5  University of Florida and all furnishings, equipment, and

  6  other chattels or choses in action used in the operation of

  7  the hospital, to a private not-for-profit nonprofit

  8  corporation organized solely for the purpose of operating the

  9  hospital and ancillary health care facilities of the health

10  center and other health care facilities and programs

11  determined to be necessary by the board of the not-for-profit

12  nonprofit corporation.  The rental for the hospital facilities

13  shall be an amount equal to the debt service on bonds or

14  revenue certificates issued solely for capital improvements to

15  the hospital facilities or as otherwise provided by law. The

16  board shall request recommendations from the Board of Regents

17  of the State University System as to the terms of the lease

18  not otherwise provided for in this act.

19         (b)  The board of trustees for the University of

20  Florida shall provide in the lease or by separate contract or

21  agreement with the not-for-profit nonprofit corporation for

22  the following:

23         1.  Approval of the articles of incorporation of the

24  not-for-profit nonprofit corporation by the board of trustees

25  for the University of Florida Regents and the governance of

26  the not-for-profit nonprofit corporation by a board of

27  directors appointed by the President of the University of

28  Florida and chaired by the Vice President for Health Affairs

29  of the University of Florida.

30

31

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1         2.  The orderly and just transition of hospital

  2  employees from state to corporate employment with the same or

  3  equivalent seniority, earnings, and benefits.

  4         2.3.  The appropriate use of hospital facilities and

  5  personnel in support of the research programs and of the

  6  teaching role of the health center.

  7         4.  The continued recognition of the collective

  8  bargaining units and collective bargaining agreements as

  9  currently composed and recognition of the certified labor

10  organizations representing those units and agreements.

11         5.  The use of hospital facilities and personnel in

12  connection with research programs conducted by the health

13  center.

14         3.6.  Reimbursement to the hospital for indigent

15  patients, state-mandated programs, underfunded state programs,

16  and costs to the hospital for support of the teaching and

17  research programs of the health center.  Such reimbursement

18  shall be appropriated to either the health center or the

19  hospital each year by the Legislature after review and

20  approval of the request for funds.

21         7.  The transfer of funds appropriated for and

22  accumulated from the operation of the hospital to the health

23  center to be used to fund contracts for services with the

24  hospital.

25         (c)  The board of trustees for the University of

26  Florida may, with the approval of the Legislature, increase

27  the hospital facilities or remodel or renovate them, provided

28  that the rental paid by the hospital for such new, remodeled,

29  or renovated facilities is sufficient to amortize the costs

30  thereof over a reasonable period of time or fund the debt

31

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1  service for any bonds or revenue certificates issued to

  2  finance such improvements.

  3         (d)  The board of trustees for the University of

  4  Florida Regents is authorized to provide to the not-for-profit

  5  nonprofit corporation leasing the hospital facilities, and its

  6  not-for-profit subsidiaries, comprehensive general liability

  7  insurance including professional liability from a the

  8  self-insurance program trust fund established pursuant to s.

  9  240.213.

10         (e)  In the event that the lease of the hospital

11  facilities to the not-for-profit nonprofit corporation is

12  terminated for any reason, the board of trustees for the

13  University of Florida Regents shall resume management and

14  operation of the hospital facilities.  In such event, the

15  Administration Commission is authorized to appropriate

16  revenues generated from the operation of the hospital

17  facilities to the board of trustees for the University of

18  Florida Regents to pay the costs and expenses of operating the

19  hospital facility for the remainder of the fiscal year in

20  which such termination occurs.

21         Section 6.  Section 240.5135, Florida Statutes, is

22  amended to read:

23         240.5135  Shands Jacksonville Healthcare, Inc.; board

24  of trustees Regents authorized to provide insurance.--The

25  board of trustees for the University of Florida Regents is

26  authorized to provide to Shands Jacksonville Healthcare, Inc.,

27  and its not-for-profit subsidiaries and affiliates and any

28  successor corporation that acts in support of the board of

29  trustees Regents, comprehensive general liability coverage,

30  including professional liability, from the self-insurance

31  programs established pursuant to s. 240.213.

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1         Section 7.  Subsection (5) of section 626.852, Florida

  2  Statutes, is amended to read:

  3         626.852  Scope of this part.--

  4         (5)  This part does not apply to any employee or agent

  5  of a state university the board of trustees Regents providing

  6  services in support of any self-insurance program created

  7  under s. 240.213 adopted by such Board of Regents.

  8         Section 8.  Subsection (5) of section 627.912, Florida

  9  Statutes, is amended to read:

10         627.912  Professional liability claims and actions;

11  reports by insurers.--

12         (5)  Any self-insurance program established under s.

13  240.213 shall report in duplicate to the Department of

14  Insurance any claim or action for damages for personal

15  injuries claimed to have been caused by error, omission, or

16  negligence in the performance of professional services

17  provided by a state university the board of trustees Regents

18  through an employee or agent of the board of trustees Regents,

19  including practitioners of medicine licensed under chapter

20  458, practitioners of osteopathic medicine licensed under

21  chapter 459, podiatric physicians licensed under chapter 461,

22  and dentists licensed under chapter 466, or based on a claimed

23  performance of professional services without consent if the

24  claim resulted in a final judgment in any amount, or a

25  settlement in any amount. The reports required by this

26  subsection shall contain the information required by

27  subsection (3) and the name, address, and specialty of the

28  employee or agent of a the board of trustees Regents whose

29  performance or professional services is alleged in the claim

30  or action to have caused personal injury.

31         Section 9.  This act shall take effect July 1, 2002.

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2426
    11-1404-02




  1            *****************************************

  2                          SENATE SUMMARY

  3    Imposes several powers and responsibilities relating to
      insurance and tort liability and formerly applicable to
  4    the Board of Regents on state university boards of
      trustees. Provides for the organization and structure of
  5    the J. Hillis Miller Health Center. (See bill for
      details.)
  6

  7

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  14

CODING: Words stricken are deletions; words underlined are additions.