hb1299_SCSFA_to_HB_1299_13.html
08 HB1299/SCSFA/1

SENATE SUBSTITUTE TO HB 1299

AS PASSED SENATE

A BILL TO BE ENTITLED
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.