October 20, 2020
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HB 1269CS


1The Committee on Insurance recommends the following:
3     Committee Substitute
4     Remove the entire bill and insert:
A bill to be entitled
6An act relating to nursing home firesafety; amending s.
7633.022, F.S.; requiring nursing homes to be protected by
8certain automatic sprinkler systems; providing a schedule;
9authorizing the Division of State Fire Marshal to grant
10certain time extensions; authorizing the division to adopt
11certain rules; providing for administrative sanctions
12under certain circumstances; requiring adjustments to
13certain provider Medicaid rates for reimbursement for
14Medicaid's portion of costs to meet certain requirements;
15requiring funding for such adjustments to come from
16existing nursing home appropriations; creating s. 633.024,
17F.S.; providing legislative findings and intent; creating
18s. 633.0245, F.S.; authorizing the State Fire Marshal to
19enter into an investment agreement with public
20depositories to establish the State Fire Marshal Nursing
21Home Fire Protection Loan Guarantee Program as a limited
22loan guarantee program to retrofit nursing homes with fire
23protection systems; providing investment and agreement
24limitations; requiring the State Fire Marshal to solicit
25requests for proposals; providing for application
26requirements and procedures; providing for review and
27approval by the State Fire Marshal; providing application
28requirements and procedures for program loans by public
29depositories; providing deadlines and limitations;
30limiting certain claims for loss under certain
31circumstances; providing a definition; authorizing the
32State Fire Marshal to adopt rules; providing an effective
35Be It Enacted by the Legislature of the State of Florida:
37     Section 1.  Subsection (4) is added to section 633.022,
38Florida Statutes, to read:
39     633.022  Uniform firesafety standards.--The Legislature
40hereby determines that to protect the public health, safety, and
41welfare it is necessary to provide for firesafety standards
42governing the construction and utilization of certain buildings
43and structures. The Legislature further determines that certain
44buildings or structures, due to their specialized use or to the
45special characteristics of the person utilizing or occupying
46these buildings or structures, should be subject to firesafety
47standards reflecting these special needs as may be appropriate.
48     (4)(a)  Notwithstanding any provision of law to the
49contrary, each nursing home licensed under part II of chapter
50400 shall be protected by an approved, supervised automatic
51sprinkler system in accordance with section 9 of National Fire
52Protection Association, Inc., Life Safety Code, in accordance
53with the following schedule:
54     1.  Each hazardous area of each nursing home shall be
55protected by an approved, supervised automatic sprinkler system
56by no later than December 31, 2007.
57     2.  Each entire nursing home shall be protected by an
58approved, supervised automatic sprinkler system by no later than
59December 31, 2009.
60     (b)  The division may grant up to two 1-year extensions of
61the time limits for compliance in subparagraph (a)2. if the
62division determines that the nursing home has been prevented
63from complying for reasons beyond its control.
64     (c)  The division is authorized to adopt any rule necessary
65for the implementation and enforcement of this subsection. The
66division shall enforce this subsection in accordance with the
67provisions of this chapter, and any nursing home licensed under
68part II of chapter 400 that is in violation of this subsection
69may be subject to administrative sanctions by the division
70pursuant to this chapter.
71     (d)  Adjustments shall be made to the provider Medicaid
72rate to allow reimbursement over a 5-year period for Medicaid's
73Medicaid's portion of the costs incurred to meet the
74requirements of this subsection. Funding for this adjustment
75shall come from existing nursing home appropriations.
76     Section 2.  Section 633.024, Florida Statutes, is created
77to read:
78     633.024  Legislative findings and intent; ensuring
79effective fire protection of vulnerable nursing home residents
80essential; retrofit of existing nursing homes expedited by
81limited state loan guarantee; funding through Insurance
82Regulatory Trust Fund.--
83     (1)  It is the intent of the Legislature to promote the
84essential public purpose of ensuring effective fire protection
85for the safety and welfare of nursing home residents of this
86state who, because of their inability to protect themselves, are
87most vulnerable to catastrophic injury or death in the event of
88a fire. The Legislature finds that this purpose is served by
89requiring the installation of appropriate fire protection
90systems in all nursing home facilities in this state that do not
91currently have fire protection systems in operation for the
92protection of their residents. The Legislature finds that the
93high capital cost of retrofitting appropriate fire protection
94systems at nursing home facilities not originally designed with
95fire protection systems has discouraged the owners and operators
96of such facilities from doing so. The Legislature therefore
97finds that state action to provide a limited state guarantee of
98loans covering these capital costs will expedite the immediate
99installation of fire protection systems at facilities that lack
100such systems and thereby ensure effective protection for those
101nursing home populations that are now most vulnerable to the
102catastrophic effects of fire.
103     (2)  Because the Insurance Regulatory Trust Fund is funded
104by the proceeds of fire insurance premiums written in this
105state, the Legislature finds that it is in the public interest
106for moneys held in the Insurance Regulatory Trust Fund to be
107used to fund the limited loan guarantee program that mobilizes
108private funding for the retrofitting of fire protection systems
109at unprotected nursing homes located in this state.
110     Section 3.  Section 633.0245, Florida Statutes, is created
111to read:
112     633.0245  State Fire Marshal Nursing Home Fire Protection
113Loan Guarantee Program.--
114     (1)  The State Fire Marshal, with the assistance of the
115Division of Treasury of the Department of Financial Services,
116may enter into an investment agreement concerning the investment
117of certain funds held in the Insurance Regulatory Trust Fund for
118the purpose of establishing a limited loan guarantee program to
119be known as the State Fire Marshal Nursing Home Fire Protection
120Loan Guarantee Program. The investment must be limited as
122     (a)  Not more than $4 million of the balance in the
123Insurance Regulatory Trust Fund in any fiscal year may be at
124risk at any time for the purpose of limited loan guarantees.
125     (b)  Such funds at risk at any time may not be used to
126guarantee any limited loan guarantee agreement for a period
127longer than 10 years.
128     (c)  No limited loan guarantee agreement based on invested
129funds may be entered into after December 1, 2005.
130     (2)  The State Fire Marshal may enter into limited loan
131guarantee agreements with one or more financial institutions
132qualified as public depositories in this state. Such agreements
133shall provide a limited guarantee by the State of Florida
134covering no more than 50 percent of the principal sum loaned by
135such financial institution to an eligible nursing home, as
136defined in subsection (10), for the sole purpose of the initial
137installation at such nursing home of a fire protection system,
138as defined in s. 633.021(8), approved by the State Fire Marshal
139as being in compliance with the provisions of s. 633.022 and
140rules adopted under such section.
141     (3)  The State Fire Marshal shall solicit requests for
142proposals from qualified financial institutions willing to fund
143loans to eligible nursing homes for the installation of fire
144protection systems approved by the State Fire Marshal under the
145State Fire Marshal Nursing Home Fire Protection Loan Guarantee
146Program. Each request for proposal shall specify the terms and
147conditions under which the responding institution is prepared to
148make loans under the program, including, but not limited to,
149applicable interest rates, repayment terms, credit policies,
150loan fees, and proposed security interests to be executed by the
151borrower. After evaluation of all requests for proposals, the
152State Fire Marshal shall select one or more responding
153institutions as designated lenders under the program.
154     (4)  The State Fire Marshal shall prescribe by rule an
155application form for participation in the State Fire Marshal
156Nursing Home Fire Protection Loan Guarantee Program to be
157submitted by each eligible nursing home that desires to install
158a fire protection system funded by a loan from a designated
159lender under the program. Nothing in this section shall be
160deemed to require an eligible nursing home to do business with a
161designated lender. At a minimum, the application shall require
162each applicant to provide the following information:
163     (a)  The name and address of the eligible nursing home.
164     (b)  The name and address of the owner of the nursing home
165or, if the owner is a partnership, the name and address of the
166general partner.
167     (c)  The lessee of the nursing home premises, if any.
168     (d)  A complete description of the structure or structures
169where the fire protection system is to be installed, including
170age, physical dimensions, overall square footage, a real extent
171of proposed coverage areas, and other relevant information
172concerning the premises.
173     (e)  Bed capacity of the nursing home, including beds
174eligible for Medicare or Medicaid reimbursement.
175     (f)  A statement regarding the availability to the
176applicant of third-party reimbursement for installation of the
177fire protection system.
178     (g)  The location of closest water mains and fire hydrants,
179if any.
180     (h)  Complete sealed drawings showing the fire protection
181system to be installed.
182     (i)  Cost documentation, with a separate breakdown of cost
183for labor and materials.
184     (j)  Verification of the application by the applicant.
185     (5)  The State Fire Marshal shall evaluate each application
186submitted under this section to determine whether the proposed
187fire protection system is feasible for installation as proposed
188and complies with all applicable firesafety code provisions. An
189application may not be approved without a positive determination
190by the State Fire Marshal under this subsection. If the State
191Fire Marshal is able to determine that the proposed fire
192protection system is feasible and complies with applicable
193firesafety codes, the application shall be approved for
194submission to one or more lenders for funding. If the
195application is insufficient, the State Fire Marshal shall notify
196the applicant in writing and identify areas of deficiency that
197must be corrected in order for the application to be approved.
198     (6)  As soon as practicable after approval, each approved
199application shall be submitted by the State Fire Marshal to one
200or more designated lenders for funding. Upon request of a
201designated lender, an approved applicant shall provide the
202lender with documentation of its credit history and financial
203status. If, after review of the applicant's documentation, a
204lender refuses to fund the application, the lender shall
205promptly notify the applicant and the State Fire Marshal in
206writing of any reasons for its action. If the lender agrees to
207fund the application, the lender shall notify the applicant and
208the State Fire Marshal and schedule a closing date for the loan.
209     (7)  At closing, the applicant shall execute appropriate
210documents necessary to provide the lender and the State Fire
211Marshal with a security interest in the property where the fire
212protection system is to be installed. The State Fire Marshal
213shall then execute a limited loan guarantee in favor of the
214lender guaranteeing no more than 50 percent of the face value of
215the loan.
216     (8)  A designated lender covered by a limited state
217guarantee for a loan under this section is not entitled to file
218a claim for loss pursuant to the guarantee unless all reasonable
219and normal remedies available and customary for lending
220institutions for resolving problems of loan repayments are
221exhausted. If the lender has received collateral security in
222connection with the loan, the lender must first exhaust all
223available remedies against the collateral security.
224     (9)  No application for participation in the State Fire
225Marshal Nursing Home Fire Protection Loan Guarantee Program may
226be accepted by the State Fire Marshal after June 30, 2005.
227     (10)  For purposes of this section, "eligible nursing home"
228home" means a nursing home facility providing nursing
229services as defined in chapter 464 licensed under part II of
230chapter 400
231that is certified by the Agency for Health Care Administration
232to lack an installed fire protection system as defined in s.
234     (11)  The State Fire Marshal may adopt any rules necessary
235to implement the provisions of this section.
236     Section 4.  This act shall take effect July 1, 2004.

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