TITLE 31 HEALTH

Section 7. Regulation and Construction of Hospitals and Other Health Care Facilities, 31-7-1 through 31-7-412.

ARTICLE 4 COUNTY AND MUNICIPAL HOSPITAL AUTHORITIES

31-7-74.1. Definitions; disclosures required; prohibited transactions; exceptions; sanctioning; sanctioning of members violating prohibition; authorization of authority to make stricter rules; preemption of other laws; applicability.

1. As used in this Code section, the term:
   1. "Family" means spouse, child, or sibling.
   2. "Financial interest" means the direct or indirect ownership of any assets or stock of any business.
   3. "Substantial interest" means the direct or indirect ownership of more than 25 percent of the assets or stock of any business.
   4. "Transact business" or "transact any business" or "transaction" means any sale or lease of any personal property, real property, or services on behalf of oneself or on behalf of any third party as an agent, broker, dealer, or representative.
2. Each member of a hospital authority shall disclose upon his or her selection as a member, and at least annually thereafter, the following described interests and relationships:
   1. Any financial interest held by the member or the member's family, or held by an entity in which the member or the member's family owns a financial interest, in any health care provider, any managed care provider or network, or any entity which sells products or services to the authority;
   2. Any position held by the member or the member's family as an officer, director, or employee of a hospital, hospital holding company, other health care provider, or managed care network; and
   3. Any contract which exists between the member or the member's family, or any entity in which the member or the member's family owns a financial interest, and the authority, including, but not limited to, supply contracts, service contracts, and leases.
3. Except as otherwise provided in this Code section, no authority member, no hospital chief executive, and no hospital system chief executive officer shall, for such person or for any entity in which such person or such person's family has a substantial interest, transact any business with such authority.
4. The prohibition of subsection (c) of this Code section shall not apply to:
   1. Any relationship whereunder a person licensed under Title 43 provides to such authority or its medical facilities any services;
   2. Any officer or employee of a trust company or bank which has been selected to be the depository of the funds of such nonprofit corporation; or
   3. Any transaction by a board member or a board member's family where the amount of all transactions between the parties is $1,000.00 or less in any one year.
5. A transaction in which any member of an authority has a financial interest or relationship described in subsection (b) of this Code section which does not constitute a substantial interest may be approved if, at the time of such approval:
   1. The material facts of the transaction and the member's financial interest are disclosed or known to the authority's board;
   2. The interested member is absent from any portion of a meeting which discusses or votes upon said transaction; and
   3. The members approving the transaction in good faith reasonably believe that the transaction is fair to the authority.
6. Notwithstanding the provisions of subsection (c) of this Code section, a transaction in which any member of an authority has a substantial interest may be approved if:
   1. The transaction was submitted to a competitive process for requests for proposals, which includes but is not limited to consideration of all submitted proposals for price, quality, and appropriateness; and
   2. Notice of the transaction was published in the official county organ not less than two weeks prior to the approval of the board;
   3. Opportunity for public comment concerning the proposed transaction was provided at a meeting of the board;
   4. At the time of approval, the members approving the transaction in good faith reasonably believe that the transaction is fair and is in the best interests of the authority; and
   5. The interested member is absent from any portion of a meeting which discusses or votes upon said transaction.
7. For purposes of this Code section, a transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the members on the board present and voting who have no financial interest in the transaction. A majority, but not less than two, of all the noninterested members on the board present and voting constitutes a quorum for purposes of action that complies with this Code section.
8. Any action by an authority which is taken in compliance with the applicable requirements of this Code section may not be enjoined, set aside, or give rise to an award of damages or other sanctions against the authority or any member or officer on the ground of a member's or officer's interest in such transaction. For any action by an authority not in compliance with such requirements, any member knowingly violating such requirements shall be immediately sanctioned, which may include, but not be limited to, reprimand, temporary suspension, or permanent removal from the authority after appropriate notice and hearing. The entity having appointed such member shall have the authority to impose any sanction.
9. Nothing in this Code section shall prevent an authority from having stricter rules relating to interests or relationships than what is provided in this Code section.
10. To the extent the provisions of this Code section conflict with the provisions of any other law, the provisions of this Code section shall govern.
11. The provisions of this Code section shall apply to those individuals serving as members of an authority who are appointed or reappointed on or after July 1, 1997. However, this Code section shall apply to all members of an authority, regardless of appointment date, serving on or after July 1, 1998.

(Code 1981, §31-7-74.1, enacted by Ga. L. 1997, p. 1404, § 3.)