Title 31, Chapter 7, Section 74.1
(a) 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.
(b) 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.
(c) 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.
(d) The prohibition of subsection (c) of this Code section shall not
(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
(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.
(e) 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
(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.
(f) 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
(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.
(g) 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.
(h) 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.
(i) 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.
(j) To the extent the provisions of this Code section conflict with
the provisions of any other law, the provisions of this Code section
(k) 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.