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SB 54 - Hospital Acquisition, Disposition - prov. on required analyses, reports

Madden, Eddie M (47th)	Gillis, Sr., Hugh M (20th)	Streat, Sr., Van (19th)
Ragan, Harold (11th)

Status Summary	SC:	H&HS	HC:	H&E	FR:	01/26/99	LA:	03/08/99	H - Read 2nd Time (CS )

First Reader Summary

A bill to amend Article 15 of Chapter 7 of Title 31 of the Official Code of Georgia Annotated, relating to acquisitions and dispositions of certain hospitals, so as to change the provisions relating to definitions and required analyses and reports; to delete certain fee and cost paying requirements but provide for paying certain other costs; to change certain certification requirements; to provide an exemption for the renewal of certain leases.

Code Sections - 31-7-409/ 31-7-412

SB 54  99                                         LC 11 9748S 
                                                       (SCS) 
      SENATE BILL 54 
 
      By:  Senators Madden of the 47th, Gillis of the 20th, 
           Streat of the 19th and Ragan of the 11th 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 15 of Chapter 7 of Title 31 of the Official 
  1- 2  Code of Georgia Annotated, relating to acquisitions and 
  1- 3  dispositions of certain hospitals, so as to provide an 
  1- 4  exemption for the renewal of certain leases; to change the 
  1- 5  provisions relating to fines; to provide for an effective 
  1- 6  date; to repeal conflicting laws; and for other purposes. 
 
  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 8                           SECTION 1. 
 
  1- 9  Article 15 of Chapter 7 of Title 31 of the Official Code of 
  1-10  Georgia Annotated, relating to acquisitions and dispositions 
  1-11  of certain hospitals, is amended by striking Code Section 
  1-12  31-7-409, relating to prospective operation of the article, 
  1-13  and inserting in its place the following Code section: 
 
  1-14    "31-7-409. 
 
  1-15    (a) Any transaction completed before October 31, 1997, or 
  1-16    any transaction that is subject to a pending definitive 
  1-17    agreement as of October 31, 1997, and which is either 
  1-18    conditioned only upon receipt of regulatory approval, or 
  1-19    is subject to a pending judicial proceeding as of April 1, 
  1-20    1997, is not subject to the requirements of this article. 
 
  1-21    (b) Any lease which is exempted from the operation of this 
  1-22    article pursuant to subsection (a) of this Code section 
  1-23    and which contained, on October 31, 1997, an option to 
  1-24    renew that lease upon its expiration shall not be subject 
  1-25    to this article upon any renewal on or after the date this 
  1-26    subsection becomes effective in 1999." 
 
  1-27                           SECTION 2. 
 
  1-28  Said article is further amended by striking Code Section 
  1-29  31-7-412, relating to fines, and inserting in its place the 
  1-30  following: 
 
 
 
 
 
                                 -1- 
 
 
 
  2- 1    "31-7-412. 
 
  2- 2    (a) Any disposition or acquisition of assets made in 
  2- 3    violation of the notice, disclosure, and certification 
  2- 4    requirements of this article shall be null and void, and 
  2- 5    each member of the governing bodies and the chief 
  2- 6    executive officers of the parties thereto nonprofit entity 
  2- 7    and acquiring entity engaging in such disposition or 
  2- 8    acquisition shall be subject to a fine of up to 
  2- 9    $50,000.00, the amount of which shall be determined by the 
  2-10    superior court in the county in which the main campus of 
  2-11    the hospital is located.  The Attorney General shall 
  2-12    institute proceedings to impose such fine within one year 
  2-13    of the unlawful disposition or acquisition. 
 
  2-14    (b) Any person knowingly and willfully making a false 
  2-15    statement in a certification under Code Section 31-7-403 
  2-16    or subsection (b) of Code Section 31-7-405, in addition to 
  2-17    any criminal penalty which may be imposed pursuant to Code 
  2-18    Section 16-10-71, shall be subject to a civil fine of up 
  2-19    to $50,000.00, the amount of which shall be determined by 
  2-20    the superior court in the county in which the main campus 
  2-21    of the hospital is located.  The Attorney General shall 
  2-22    institute proceedings to impose such fine within one year 
  2-23    of the date of the certification." 
 
  2-24                           SECTION 3. 
 
  2-25  This Act shall become effective upon its approval by the 
  2-26  Governor or upon its becoming law without such approval. 
 
  2-27                           SECTION 4. 
 
  2-28  All laws and parts of laws in conflict with this Act are 
  2-29  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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