08 HB1299/SCSFA/1
SENATE
SUBSTITUTE TO HB 1299
AS
PASSED SENATE
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 4 of Chapter 7 of Title 31 of the Official Code of Georgia
Annotated, relating to county and municipal hospital authorities, so as to enact
the "Public Hospital Integrity Act"; to provide for a short title; to provide
definitions; to prohibit certain conflicts of interest; to prohibit a public
hospital from entering into or enforcing confidential settlement agreements with
a federally or state protected whistleblower; to provide for legislative
findings; to provide that any such agreements are void and unenforceable; to
provide for applicability of open meetings and open records laws; to provide for
limitations on the provision of abortions by public hospitals; to provide for
related matters; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
This
Act shall be known and may be referred to as the "Public Hospital Integrity
Act."
SECTION
2.
Article
4 of Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating
to county and municipal hospital authorities, is amended by adding new Code
sections to read as follows:
"31-7-75.3.
(a)
As used in this Code section, Code Section 31-7-75.4, and Code Section
31-7-75.5, the term:
(1)
'Competitor' means any hospital licensed as a general hospital by the
department, including a critical access hospital, which is operating within five
miles of a public hospital.
(2)
'Governing capacity' means service as a member of a hospital authority or a
director of a nonprofit hospital management corporation.
(3)
'Immediate family member' means spouse, parent, sibling, or child.
(4)
'Major vendor of the public hospital' means any person or entity which receives
more than $10,000.00 per year in payments from the public hospital other than
for public utilities; provided, however, that this term shall not include the
chief executive officer of the public hospital who receives payments limited to
compensation and benefits.
(5)
'Nonprofit hospital management corporation' means a nonprofit corporation
qualified as exempt or which has submitted an application for exemption from
federal income taxation under Section 501(c)(3) of the Internal Revenue Code
created to manage a public hospital under contract with a hospital authority
pursuant to Code Section 31-7-74.3 or other applicable laws.
(6)
'Public hospital' means a hospital organized under this article by a resolution
or ordinance of the governing bodies of two or more counties.
(b)
No individual shall be eligible to serve in a governing capacity of a public
hospital if that individual or any immediate family member of such individual is
an employee or independent contractor of the public hospital; provided, however,
that the chief executive officer of the public hospital may serve in a governing
capacity of the public hospital so long as said individual recuses himself or
herself from all formal participation, including voting or discussion, in any
matter before the hospital authority or nonprofit hospital management
corporation related to the hiring, retention, discipline, compensation, or other
employment matter related to the chief executive officer of the public hospital
and does not communicate in any manner with any member of the hospital authority
or the nonprofit hospital management corporation regarding any such
matter.
(c)
No individual shall be eligible to serve in a governing capacity of a public
hospital if that individual is an employee or director of a major vendor of the
public hospital or has a financial interest in a major vendor of the public
hospital.
(d)
No individual shall be eligible to serve in a governing capacity of a public
hospital if that individual is an employee or director of a competitor of the
public hospital or has a financial interest in a competitor of the public
hospital; provided, however, that an individual with such a financial interest
serving in such a governing capacity as of July 1, 2008, may continue to serve
so long as said individual recuses himself or herself from all formal
participation, including voting or discussion, in any matter before the hospital
authority or nonprofit hospital management corporation related to the competitor
of the public hospital and does not communicate in any manner with any member of
the hospital authority or the nonprofit hospital management corporation
regarding any such matter.
(e)
This Code section shall be cumulative to:
(1)
Any conflict of interest provisions applicable to members of hospital
authorities contained in this article;
(2)
Any conflict of interest provisions applicable to directors of nonprofit
corporations contained in Chapter 3 of Title 14, the 'Georgia Nonprofit
Corporation Code'; and
(3)
Any other conflict of interest provisions adopted by the hospital authority or
nonprofit hospital management corporation.
31-7-75.4.
(a)
The General Assembly finds that:
(1)
It has long been the practice and policy of the Attorney General to not litigate
or settle any matter involving the State of Georgia or any state agency under
seal;
(2)
Confidential or secret settlements involving government agencies violate public
policy and undermine the principles of open government; and
(3)
The use of confidential or secret settlement agreements to obtain or enforce the
silence of federally or state protected whistleblowers is an especially
egregious violation of public policy.
(b)
No public hospital may enter into a secret or confidential settlement agreement
with any individual who is protected under the federal Whistleblower Protection
Act of 1989 or Code Section 45-1-4 or participate in any effort to enforce such
an agreement.
(c)
No public hospital may enter into an agreement with any individual who is
protected under the federal Whistleblower Protection Act of 1989 or Code Section
45-1-4 under which payment is made to said individual in consideration of any
promise of secrecy, confidentiality, nondisclosure, nonpublication, or
nondisparagement. No public hospital may participate in any effort to enforce
such an agreement.
(d)
Any agreement entered into in contravention of this Code section shall be void
and unenforceable.
31-7-75.5.
A
nonprofit hospital management corporation, as defined in Code Section 31-7-75.3,
shall be subject to Chapter 14 of Title 50, relating to open and public
meetings, and Article 4 of Chapter 18 of Title 50, relating to inspection of
public records.
31-7-75.6.
No
public hospital as defined by Code Section 31-7-75.3 (a) (6) shall authorize or
permit the performance of an abortion procedure in violation of federal or state
law or that is not covered for reimbursement by Medicaid."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.