08 LC 33
2575S
House
Bill 1299 (RULES COMMITTEE SUBSTITUTE)
By:
Representatives Jacobs of the
80th,
Cooper of the
41st,
Willard of the
49th,
Geisinger of the
48th,
Lindsey of the
54th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 31 of the Official Code of Georgia Annotated, relating to health, so
as to require that certain hospital authorities contract with nonprofit
corporations for the operation and management of its hospitals; to provide for
definitions; to provide for the composition and appointment of the nonprofit
corporation board; to provide for enforcement; to provide that failure to
contract with a nonprofit organization shall be considered a minimum function of
a hospital authority for purposes of removal of members; to provide for related
matters; to provide for an effective date; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
31 of the Official Code of Georgia Annotated, relating to health, is amended in
Article 4 of Chapter 7, relating to county and municipal hospital authorities,
by adding a new Code section to read as follows:
"31-7-74.4.
(a)
As used in this Code section, the term:
(1)
'Nonprofit corporation' means any nonprofit corporation qualified as exempt or
which has submitted an application for exemption from federal income taxation
under Section 501(c) of the Internal Revenue Code.
(2)
'Nonprofit hospital management corporation' means a nonprofit corporation
created to manage and operate a public hospital under contract with a hospital
authority pursuant to Code Section 31-7-74.3 or other applicable
laws.
(b)
A hospital authority created by two counties shall provide, by contract, for the
management and operation by a nonprofit hospital management corporation of any
hospital which it owns. The board of the nonprofit hospital management
corporation shall consist of 17 members. The initial board members shall be
appointed as follows:
(1)
The Governor shall appoint four members as follows:
(A)
One individual, who shall serve a term of one year;
(B)
Two individuals, who shall each serve a term of two years; and
(C)
One individual, who shall serve a term of three years;
(2)
The Lieutenant Governor shall appoint four members as follows:
(A)
One individual, who shall serve a term of one year;
(B)
One individual, who shall serve a term of two years; and
(C)
Two individuals, who shall each serve a term of three years;
(3)
The Speaker of the House of Representatives shall appoint four members as
follows:
(A)
One individual, who shall serve a term of one year;
(B)
One individual, who shall serve a term of two years; and
(C)
Two individuals, who shall each serve a term of three years;
(4)
The governing authority of the larger county, as determined by population, which
created the hospital authority shall appoint three members as
follows:
(A)
One individual, who shall serve a term of one year;
(B)
One individual, who shall serve a term of two years; and
(C)
One individual, who shall serve a term of three years; and
(5)
The governing authority of the smaller county, as determined by population,
which created the hospital authority shall appoint two members as
follows:
(A)
One individual, who shall serve a term of one year; and
(B)
One individual, who shall serve a term of two years.
A
member shall serve until his or her successor has been duly appointed.
Following the terms of the initial members, all successors shall be appointed by
a majority of the remaining board for terms of three years and until their
respective successors are duly appointed and qualified. Successor members shall
have any qualifications deemed appropriate by the board.
(c)
A hospital authority subject to the requirements of subsection (b) of this Code
section which is not in compliance with such subsection shall be subject to one
or more of the following:
(1)
A mandamus action by the Attorney General or by any resident of any
participating county of such hospital authority pursuant to Article 2 of Chapter
6 of Title 9 to compel the hospital authority to comply with this Code
section;
(2)
A petition by any resident of any participating county of such hospital
authority or the governing authority of such participating county of such
hospital authority may be submitted to the superior court of the county wherein
the hospital authority operates a hospital to require the hospital authority to
comply with subsection (b) of this Code section. The judge of such court shall
set a time for the hearing on such petition and after notice to the hospital
authority shall hear and determine the petition. If it is determined that the
hospital authority has failed to comply with the requirements of subsection (b)
of this Code section, the judge shall pass such orders as are necessary to
effectuate compliance with such requirements. In the event the hospital
authority fails to comply with subsection (b) of this Code section as required
by court order, the members of the authority shall be subject to contempt
proceedings by the court as provided by law; and
(3)
Potential removal from office of members of the hospital authority pursuant to
Code Section 31-7-76 for failure to perform minimum functions required for the
operation and maintenance of a public hospital.
(d)
No state funds shall be provided to or for a hospital authority that is subject
to the requirements of subsection (b) of this Code section which is not in
compliance with such subsection. This subsection shall not apply to any
Medicaid or PeachCare for Kids reimbursement funds or any funds provided by the
state for medical education pursuant to Code Section 31-7-95."
SECTION
2.
Said
title is further amended in Code Section 31-7-76, relating to procedures in the
event of the failure of a hospital authority to perform minimum functions, by
revising subsection (d) as follows:
"(d)
At each hearing held as provided in subsection (c) of this Code section, the
judge, sitting without a jury, shall inquire into and determine the question of
whether the authority has ceased to perform the minimum functions required for
the continued operation and maintenance of needed health care facilities in the
county or municipality. In making
his
the
determination the judge shall consider, but shall not be limited by, whether the
authority has:
(1)
Failed to establish and enforce rates and charges as provided in Code Section
31-7-77;
(2)
Failed to take any reasonable action when the failure has the effect of
jeopardizing repayment of principal or interest, when due, on revenue
anticipation certificates issued by the authority;
(3)
Failed to take any reasonable action when the failure has the effect of
breaching a contract providing for continued maintenance and use of the
authority´s facilities and entered into with a county or municipality as
provided in Code Section 31-7-85;
(4)
Failed to make plans for unmet needs of the community as authorized by paragraph
(22) of Code Section 31-7-75;
(5)
Failed to make and file its annual report as provided in Code Section
31-7-90;
(6)
Failed to adopt an annual budget as provided in Code Section
31-7-90;
(7)
Failed to conduct the annual audit as provided in Code Section
31-7-91;
(8)
Failed to report or publish the annual audit as provided in Code Section
31-7-92;
(9)
Failed to hold at least one meeting in the preceding calendar quarter;
or
(10)
Failed to provide, by contract, for the management and operation by a nonprofit
corporation of its hospitals in accordance with Code Section 31-7-74.4, if
applicable; or
(10)(11)
Failed to take any other action required pursuant to this
article."
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.