08 LC 38
0655S
The
House Special Committee on Grady offers the following substitute to HB
1299:
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 that a hospital authority that is not in compliance
shall not receive trauma funding; 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
that the Georgia Trauma Care Network Commission shall withhold trauma funds from
a hospital authority which does not contract with a nonprofit organization; 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 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 or more counties shall provide, by contract,
for the management and operation by a nonprofit hospital management corporation
of any hospital which it owns.
(c)
A hospital authority subject to the requirements of subsection (b) of this Code
section which is not in compliance with such subsection shall not be eligible to
receive any funds from the Georgia Trauma Trust Fund created pursuant to Code
Section 31-11-103 until such time as the hospital authority comes into
compliance and may be subject to forfeiture of such funds in accordance with
paragraph (4.1) of Code Section 31-11-102;
(d)
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 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.
(e)
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 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.
Said
title is further amended in Code Section 31-11-102, relating to duties and
responsibilities of the Georgia Trauma Care Network Commission, by adding a new
paragraph to read as follows:
"(4.1)
To withhold distribution of all funds to a trauma center operated by a hospital
authority which is not in compliance with Code Section 31-7-74.4 until such time
as the hospital authority comes into compliance with such Code section. In the
event a hospital authority does not come into compliance with such Code section
prior to the end of a fiscal year, the commission shall be authorized to
redirect the funds allotted to such hospital authority to other recipients
pursuant to this Code section, and the noncompliant hospital authority shall
forfeit any further rights to such funds;"
SECTION
4.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.