Georgia 2023-2024 Regular Session

Georgia House Bill HB1490 Compare Versions

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11 24 LC 33 9659
22 House Bill 1490
33 By: Representative Newton of the 127
44 th
55
66 A BILL TO BE ENTITLED
77 AN ACT
88 To amend Article 4 of Chapter 8 of Title 13 of the Official Code of Georgia Annotated,
99 1
1010 relating to restrictive covenants in contracts, so as to prohibit the enforcement of certain2
1111 covenants and restrictions on physicians in employment or partnership contracts or3
1212 agreements; to delineate covenants not to compete which are valid and enforceable; to4
1313 provide for statutory construction; to provide for adjudication; to provide for an effective5
1414 date and applicability; to provide for related matters; to repeal conflicting laws; and for other6
1515 purposes.7
1616 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
1717 SECTION 1.9
1818 Article 4 of Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to10
1919 restrictive covenants in contracts, is amended by adding a new Code section to read as11
2020 follows:12
2121 "13-8-60.
2222 13
2323 (a) Any contract or agreement that creates or establishes the terms of a partnership,14
2424 employment, or any other form of professional relationship with a physician licensed to15
2525 practice medicine that includes any restriction of the right of such physician to practice16
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2828 medicine in Georgia shall be void and unenforceable with respect to said restriction. 17
2929 Restrictions rendered void under this subsection shall include, but shall not be limited to:18
3030 (1) The right to practice medicine in any geographic area for any period of time after the19
3131 termination of such partnership, employment, or professional relationship;20
3232 (2) The right of such physician to provide treatment, advise, consult with, or establish21
3333 a physician/patient relationship with any current patient of the former employer, partner,22
3434 or healthcare professional/entity; and23
3535 (3) The right of such physician to solicit or seek to establish a physician/patient24
3636 relationship with any current patient of the former employer, partner, or healthcare25
3737 professional/entity.26
3838 (b) Notwithstanding subsection (a) of this Code section, a covenant not to compete shall27
3939 be valid and enforceable if:28
4040 (1) The covenant not to compete is agreed upon during the sale of a business. The29
4141 person selling the business and the partners, members, or shareholders, and the buyer of30
4242 the business may agree on a temporary and geographically restricted covenant not to31
4343 compete that will prohibit the seller of the business from carrying on a similar business32
4444 within a reasonable geographic area and for a reasonable length of time; or33
4545 (2) The covenant not to compete is agreed upon in anticipation of the dissolution of a34
4646 business. The partners, members, or shareholders, upon or in anticipation of a dissolution35
4747 of a partnership, limited liability company, or corporation, may agree that all or any36
4848 number of the parties will not carry on a similar business within a reasonable geographic37
4949 area where the business has been transacted.38
5050 (c) Nothing in this Code section shall be construed to render void or unenforceable any39
5151 other provisions in a contract or agreement containing a void and unenforceable covenant40
5252 not to compete.41
5353 (d) A provision in an agreement for clinical healthcare services to be rendered by a42
5454 physician in Georgia is void, unenforceable, and against public policy if the provision:43
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5757 (1) Makes the agreement subject to the laws of another state;44
5858 (2) Requires any litigation or adjudication arising out of the agreement to be conducted45
5959 in another state; or46
6060 (3) Deprives the physician of the substantive protection of Georgia law with respect to47
6161 a controversy arising in Georgia.48
6262 (e) Any provision of a contract or agreement that violates the provisions of this Code49
6363 section is voidable at any time by the physician, and if a provision is rendered void at the50
6464 request of the physician, the matter shall be adjudicated in Georgia and Georgia law shall51
6565 govern the dispute. In addition to injunctive relief and any other remedies available, a52
6666 court may award a physician who is enforcing rights under this Code section reasonable53
6767 attorney fees. For purposes of this Code section, adjudication includes litigation and54
6868 arbitration. This subsection applies only to claims arising under this Code section."55
6969 SECTION 2.56
7070 This Act shall become effective on July 1, 2024, and shall apply to all contracts and other57
7171 agreements entered into on or after January 1, 2011.58
7272 SECTION 3.59
7373 All laws and parts of laws in conflict with this Act are repealed.60
7474 H. B. 1490
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