Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 1260
Ì711064~Î711064
LEGISLATIVE ACTION
Senate . House
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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.