23 LC 33 9433S - 1 - The Senate Committee on Regulated Industries and Utilities offered the following substitute to SB 162: A BILL TO BE ENTITLED AN ACT To amend Title 31 of the Official Code of Georgia Annotated, relating to health, so as to1 repeal certificate of need; to provide for a special health care services license for other health2 care facilities and services; to provide for definitions; to provide for requirements; to provide3 for exceptions; to provide for applications; to provide for notice and timely objections; to4 require the provision of indigent and charity care and Medicaid services; to provide for5 revocation; to require annual reports; to provide for rules and regulations; to provide for6 transition and grandfather provisions; to provide for the posting of certain documents on7 hospital websites; to amend Code Section 50-18-70 of the Official Code of Georgia8 Annotated, relating to legislative intent and definitions relative to open records laws, so as9 to revise definitions; to amend other provisions in various titles of the Official Code of10 Georgia Annotated for purposes of conformity; to provide for related matters; to provide for11 effective dates; to repeal conflicting laws; and for other purposes.12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13 23 LC 33 9433S - 2 - PART I14 SECTION 1-1.15 Title 31 of the Official Code of Georgia Annotated, relating to health, is amended by16 repealing Chapter 6, relating to state health planning and development, and by designating17 such chapter as reserved.18 PART II19 SECTION 2-1.20 Said title is further amended by adding a new chapter to read as follows:21 "CHAPTER 6A22 31-6A-1.23 As used in this chapter, the term:24 (1) 'Ambulatory surgical center' means a public or private facility, not a part of a25 hospital, which meets the criteria contained in subparagraph (C) of paragraph (4) of Code26 Section 31-7-1; provided, however, that if a private facility, at least 51 percent must be27 owned directly or indirectly by a hospital or a physician or physicians licensed to practice28 in Georgia.29 (2) 'Bed capacity' means space used exclusively for inpatient care, including space30 designed or remodeled for inpatient beds even though temporarily not used for such31 purposes. The number of beds to be counted in any patient room shall be the maximum32 number for which adequate square footage is provided as established by rules of the33 department, except that single beds in single rooms shall be counted even if the room34 contains inadequate square footage.35 23 LC 33 9433S - 3 - (3) 'Board' means the Board of Community Health.36 (4) 'Clinical health services' means diagnostic, treatment, or rehabilitative services37 provided in a health care facility and includes, but is not limited to, the following:38 radiology and diagnostic imaging, such as magnetic resonance imaging and positron39 emission tomography (PET); radiation therapy; biliary lithotripsy; surgery; intensive care;40 coronary care; pediatrics; gynecology; obstetrics; general medical care; medical-surgical41 care; inpatient nursing care, whether intermediate, skilled, or extended care; cardiac42 catheterization; open heart surgery; inpatient rehabilitation; and alcohol, drug abuse, and43 mental health services.44 (5) 'Commissioner' means the commissioner of community health.45 (6) 'Department' means the Department of Community Health established under Chapter46 2 of this title.47 (7) 'Develop,' with reference to a project, means constructing, remodeling, installing, or48 proceeding with a project, or any part of a project, or a capital expenditure project, the49 cost estimate for which exceeds $10 million. Notwithstanding the provisions of this50 paragraph, the expenditure or commitment or incurring an obligation for the expenditure51 of funds to develop certificate of need applications, studies, reports, schematics,52 preliminary plans and specifications, or working drawings or to acquire, develop, or53 prepare sites shall not be considered to be the developing of a project.54 (8) 'Diagnostic imaging' means magnetic resonance imaging, computed tomography55 (CT) scanning, positron emission tomography (PET), positron emission56 tomography/computed tomography, X-rays, fluoroscopy, or ultrasound services, and57 other imaging services as defined by the department by rule.58 (9) 'Diagnostic, treatment, or rehabilitation center' means any professional or business59 undertaking, whether for profit or not for profit, which offers or proposes to offer any60 clinical health service in a setting which is not part of a hospital; provided, however, that61 any such diagnostic, treatment, or rehabilitation center that offers or proposes to offer62 23 LC 33 9433S - 4 - surgery in an operating room environment and to allow patients to remain more than 2363 hours shall be considered a hospital for purposes of this chapter.64 (10) 'Exception acknowledgment' means a written notice from the department confirming65 that a person is exempt from the requirements of this chapter pursuant to subsection (b)66 of Code Section 31-6A-3 or pursuant to subsection (b) or (d) of Code Section 31-6A-10.67 (11) 'General cancer hospital' means an institution which was an existing and approved68 destination cancer hospital as of January 1, 2019; has obtained final certificate of need69 approval for conversion from a destination cancer hospital to a general cancer hospital70 in accordance with the former provisions of Code Section 31-6-40.3, as they existed on71 December 31, 2023; and offers inpatient and outpatient diagnostic, therapeutic, treatment,72 and rehabilitative cancer care services or other services to diagnose or treat co-morbid73 medical conditions or diseases of cancer patients so long as such services do not result74 in the offering of any new or expanded clinical health service that would require a75 certificate of need under this chapter unless a certificate of need or letter of determination76 has been obtained for such new or expanded services.77 (12) 'Health care facility' means a hospital, specialty hospital, freestanding emergency78 department not located on a hospital's primary campus, single specialty ambulatory79 surgical center, skilled nursing facility; intermediate care facility, personal care home,80 and home health agency.81 (13) 'Health maintenance organization' means a public or private organization organized82 under the laws of this state which:83 (A) Provides or otherwise makes available to enrolled participants health care services,84 including at least the following basic health care services: usual physicians' services,85 hospitalization, laboratory, X-ray, emergency and preventive services, and out-of-area86 coverage;87 23 LC 33 9433S - 5 - (B) Is compensated, except for copayments, for the provision of the basic health care88 services listed in subparagraph (A) of this paragraph to enrolled participants on a89 predetermined periodic rate basis; and90 (C) Provides physicians' services primarily:91 (i) Directly through physicians who are either employees or partners of such92 organization; or93 (ii) Through arrangements with individual physicians organized on a group practice94 or individual practice basis.95 (14) 'Home health agency' means a public agency or private organization, or a96 subdivision of such an agency or organization, which is primarily engaged in providing97 to individuals who are under a written plan of care of a physician, on a visiting basis in98 the places of residence used as such individuals' homes, part-time or intermittent nursing99 care provided by or under the supervision of a registered professional nurse, and one or100 more of the following services:101 (A) Physical therapy;102 (B) Occupational therapy;103 (C) Speech therapy;104 (D) Medical social services under the direction of a physician; or105 (E) Part-time or intermittent services of a home health aide.106 (15) 'Hospital' means an institution which is primarily engaged in providing to inpatients,107 by or under the supervision of physicians, diagnostic services and therapeutic services for108 medical diagnosis, treatment, and care of injured, disabled, or sick persons or109 rehabilitation services for the rehabilitation of injured, disabled, or sick persons. Such110 term includes public, private, psychiatric, rehabilitative, geriatric, osteopathic,111 micro-hospitals, general cancer hospitals, and other specialty hospitals.112 (16) 'Intermediate care facility' means an institution which provides, on a regular basis,113 health related care and services to individuals who do not require the degree of care and114 23 LC 33 9433S - 6 - treatment which a hospital or skilled nursing facility is designed to provide but who,115 because of their mental or physical condition, require health related care and services116 beyond the provision of room and board.117 (17) 'Joint venture ambulatory surgical center' means a freestanding ambulatory surgical118 center that is jointly owned by a hospital in the same county as the center or a hospital in119 a contiguous county if there is no hospital in the same county as the center and a single120 group of physicians practicing in the center and that provides surgery or where121 cardiologists perform procedures in a single specialty as defined by the department;122 provided, however, that general surgery, a group practice which includes one or more123 physiatrists who perform services that are reasonably related to the surgical procedures124 performed in the center, and a group practice in orthopedics which includes plastic hand125 surgeons with a certificate of added qualifications in Surgery of the Hand from the126 American Board of Plastic and Reconstructive Surgery shall be considered a single127 specialty. The ownership interest of the hospital shall be no less than 30 percent and the128 collective ownership of the physicians or group of physicians shall be no less than 30129 percent.130 (18) 'Life plan community' means an organization, whether operated for profit or not,131 whose owner or operator undertakes to provide shelter, food, and either nursing care or132 personal services, whether such nursing care or personal services are provided in the133 facility or in another setting, and other services, as designated by agreement, to an134 individual not related by consanguinity or affinity to such owner or operator providing135 such care pursuant to an agreement for a fixed or variable fee, or for any other136 remuneration of any type, whether fixed or variable, for the period of care, payable in a137 lump sum, lump sum and monthly maintenance charges or in installments. Agreements138 to provide continuing care include agreements to provide care for any duration, including139 agreements that are terminable by either party.140 23 LC 33 9433S - 7 - (19) 'Micro-hospital' means a hospital in a rural county which has at least two and not141 more than seven inpatient beds and which provides emergency services seven days per142 week and 24 hours per day.143 (20) 'Multi-specialty ambulatory surgical center' means a multi-specialty physician group144 owning, operating, and utilizing no more than three specialty ambulatory surgical centers145 located in the same or different counties in which the group has provided medical146 services in a clinical office for at least five years and which limits each center to a single147 specialty which may be different single specialties; provided, however, that the specialty148 ambulatory surgical centers may be colocated.149 (21) 'Offer' means that the health care facility is open for the acceptance of patients or150 performance of services and has qualified personnel, equipment, and supplies necessary151 to provide specified clinical health services.152 (22) 'Operating room environment' means an environment which meets the minimum153 physical plant and operational standards specified in the rules of the department which154 shall consider and use the design and construction specifications as set forth in the155 Guidelines for Design and Construction of Health Care Facilities published by the156 American Institute of Architects.157 (23) 'Person' means any individual, trust or estate, partnership, limited liability company158 or partnership, corporation (including associations, joint-stock companies, and insurance159 companies), state, political subdivision, hospital authority, or instrumentality (including160 a municipal corporation) of a state as defined in the laws of this state. This term shall161 include all related parties, including individuals, business corporations, general162 partnerships, limited partnerships, limited liability companies, limited liability163 partnerships, joint ventures, nonprofit corporations, or any other for profit or not for profit164 entity that owns or controls, is owned or controlled by, or operates under common165 ownership or control with a person.166 23 LC 33 9433S - 8 - (24) 'Personal care home' means a residential facility that is certified as a provider of167 medical assistance for Medicaid purposes pursuant to Article 7 of Chapter 4 of Title 49168 having at least 25 beds and providing, for compensation, protective care and oversight169 of ambulatory, nonrelated persons who need a monitored environment but who do not170 have injuries or disabilities which require chronic or convalescent care, including171 medical, nursing, or intermediate care. Personal care homes include those facilities172 which monitor daily residents' functioning and location, have the capability for crisis173 intervention, and provide supervision in areas of nutrition, medication, and provision of174 transient medical care. Such term does not include:175 (A) Old age residences which are devoted to independent living units with kitchen176 facilities in which residents have the option of preparing and serving some or all of their177 own meals; or178 (B) Boarding facilities which do not provide personal care.179 (25) 'Primary campus' means the building at which the majority of a hospital's or a180 remote location of a hospital's licensed and operational inpatient hospital beds are181 located, and includes the health care facilities of such hospital within 1,000 yards of such182 building. Any health care facility operated under a hospital's license prior to July 1, 2019,183 but not on the hospital's primary campus shall remain part of such hospital but shall not184 constitute such hospital's primary campus unless otherwise meeting the requirements of185 this paragraph.186 (26) 'Project' means a proposal to take an action for which a special health care services187 license is required under this chapter. A project or proposed project may refer to the188 proposal from its earliest planning stages up through the point at which the new special189 health care services are offered.190 (27) 'Remote location of a hospital' means a hospital facility or organization that is191 either created by, or acquired by, a hospital that is the main provider for the purpose of192 23 LC 33 9433S - 9 - furnishing inpatient hospital services under the name, ownership, and financial and193 administrative control of the main provider.194 (28) 'Rural county' means a county having a population of less than 50,000 according to195 the United States decennial census of 2020 or any future such census.196 (29) 'Single specialty ambulatory surgical center' means an ambulatory surgical center197 where surgery is performed in the offices of an individual private physician or single198 group practice of private physicians if such surgery is performed in a facility that is199 owned, operated, and utilized by such physicians who also are of a single specialty;200 provided, however, that general surgery, a group practice which includes one or more201 physiatrists who perform services that are reasonably related to the surgical procedures202 performed in the center, and a group practice in orthopedics which includes plastic hand203 surgeons with a certificate of added qualifications in Surgery of the Hand from the204 American Board of Plastic and Reconstructive Surgery shall be considered a single205 specialty.206 (30) 'Skilled nursing facility' means public or private institution or a distinct part of an207 institution which is primarily engaged in providing inpatient skilled nursing care and208 related services for patients who require medical or nursing care or rehabilitation services209 for the rehabilitation of injured, disabled, or sick persons.210 (31) 'Special health care services' means any facilities or services described in211 paragraphs (1) through (4) of subsection (a) of Code Section 31-6A-3.212 (32) 'Specialty hospital' means a hospital that is primarily or exclusively engaged in the213 care and treatment of one of the following: patients with a cardiac condition, patients with214 an orthopedic condition, patients receiving a surgical procedure, or patients receiving any215 other specialized category of services defined by the department.216 (33) 'Uncompensated indigent or charity care' means the dollar amount of 'net217 uncompensated indigent or charity care after direct and indirect (all) compensation' as218 23 LC 33 9433S - 10 - defined by, and calculated in accordance with, the department's Hospital Financial Survey219 and related instructions.220 (34) 'Urban county' means a county having a population equal to or greater than 50,000221 according to the United States decennial census of 2020 or any future such census.222 31-6A-2.223 (a) On and after January 1, 2024, no person shall operate or provide any new special health224 care services without acquiring a special health care services license under this chapter225 unless such person has an exception acknowledgment from the department.226 (b) The department shall adopt rules to specify:227 (1) The minimal requirements for quality and safety for patients receiving each special228 health care service;229 (2) The procedure for applying for and maintaining a special health care services license,230 including, but not limited to, the frequency of licensing inspections, submission of231 information, and data to evaluate the performance and ongoing operation of services and232 enforcement under this chapter;233 (3) The fees for applying for and maintaining a special health care services license in234 order to fully offset the cost to the department, including consultant fees and other related235 expenses necessary to process the application, and for any ongoing expenses to the236 department for maintaining a special health care services license; and237 (4) The procedure and criteria for requesting and approving an exception238 acknowledgment.239 31-6A-3.240 (a) A special health care services license shall be required for:241 (1) The construction of a new health care facility;242 23 LC 33 9433S - 11 - (2) The construction of a replacement health care facility, if the bed capacity is increased243 by ten beds or 20 percent of bed capacity, whichever is greater; and244 (3) Conversion of a single specialty ambulatory surgical center to a multi-specialty245 venture ambulatory surgical center; provided the single specialty ambulatory surgical246 center demonstrates indigent and charity care services of 5 percent of revenue per year247 for the three years preceding the date of the application; and if the application for a248 conversion license is granted, the multi-specialty venture ambulatory surgical center shall249 provide indigent and charity care services totaling 2.5 percent of revenue per year and250 failure to do so shall be cause for immediate revocation of the license.251 (b) A special health care services license shall not be required for:252 (1) Adding new clinical health services;253 (2) A health care facility established on or after January 1, 2024, in a rural county, as254 defined in Code Section 31-8-9.1, that:255 (A) Provides inpatient hospital services;256 (B) Participates in both Medicaid and Medicare and accepts both Medicaid and257 Medicare patients;258 (C) Provides health care services to indigent patients;259 (D) Has at least 10 percent of its annual net revenue categorized as indigent care,260 charity care, or bad debt;261 (E) Annually files IRS Form 990, Return of Organization Exempt From Income Tax,262 with the department, or for any hospital not required to file IRS Form 990, the263 department will provide a form that collects the same information to be submitted to the264 department on an annual basis;265 (F) Is current with all audits and reports required by law; and266 (G) Has a three-year average patient margin, as a percent of expense, less than one267 standard deviation above the state-wide three-year average of organizations defined in268 subparagraphs (A) through (F) of this paragraph, as calculated by the department. For269 23 LC 33 9433S - 12 - purposes of this subparagraph, the term 'patient margin' means gross patient revenues270 less contractual adjustments, bad debt, indigent and charity care, other uncompensated271 care, and total expenses.272 In the event that the county in which a health care facility established in accordance with273 this paragraph is located no longer meets the definition of a rural county after such health274 care facility has commenced operations, the health care facility shall be deemed to275 continue to meet the requirements of this paragraph for as long as such health care facility276 continues to operate.277 (3) Infirmaries operated by educational institutions for the sole and exclusive benefit of278 students, faculty members, officers, or employees thereof;279 (4) Infirmaries or facilities operated by businesses for the sole and exclusive benefit of280 officers or employees thereof, provided that such infirmaries or facilities make no281 provision for overnight stay by persons receiving their services;282 (5) Institutions operated exclusively by the federal government or by any of its agencies;283 (6) Offices of private physicians or dentists whether for individual or group practice;284 (7) Religious, nonmedical health care institutions as defined in 42 U.S.C.285 Section 1395x(ss)(1), listed and certified by a national accrediting organization;286 (8) Site acquisitions for health care facilities or preparation or development costs for287 such sites prior to the decision to file an application for a special health care services288 license;289 (9) Expenditures related to adequate preparation and development of an application for290 a special health care services license;291 (10) The commitment of funds conditioned upon the obtaining of a special health care292 services license;293 (11) Expenditures for the restructuring or acquisition of existing health care facilities by294 stock or asset purchase, merger, consolidation, or other lawful means;295 23 LC 33 9433S - 13 - (12) The purchase of a closing hospital or of a hospital that has been closed for no more296 than 12 months by a hospital in a contiguous county to repurpose the facility as a297 micro-hospital;298 (13) Expenditures for the purchase, lease, replacement, upgrade, or repair of diagnostic299 imaging equipment, diagnostic or therapeutic equipment, or medical equipment or the300 provision of diagnostic imaging services;301 (14) Expenditures for nonclinical projects, including parking lots, parking decks, and302 other parking facilities; computer systems, software, and other information technology;303 medical office buildings; administrative office space; conference rooms; education304 facilities; lobbies; common spaces; clinical staff lounges and sleep areas; waiting rooms;305 bathrooms; cafeterias; hallways; engineering facilities; mechanical systems; roofs;306 grounds; signage; family meeting or lounge areas; other nonclinical physical plant307 renovations or upgrades that do not result in new or expanded clinical health services; and308 state mental health facilities;309 (15) Capital expenditures otherwise covered by this chapter required solely to eliminate310 or prevent safety hazards as defined by federal, state, or local fire, building,311 environmental, occupational health, or life safety codes or regulations, to comply with312 licensing requirements of the department, or to comply with accreditation standards of313 a nationally recognized health care accreditation body;314 (16) Cost overruns whose percentage of the cost of a project is equal to or less than the315 cumulative annual rate of increase in the composite construction index, published by the316 federal Bureau of the Census of the Department of Commerce, calculated from the date317 of approval of the project;318 (17) Transfers from one health care facility to another such facility of major medical319 equipment previously approved under or exempted from special health care services320 license review, except where such transfer results in the institution of a new clinical321 23 LC 33 9433S - 14 - health service for which a special health care services license is required in the facility322 acquiring said equipment;323 (18) New special health care services provided by or on behalf of health maintenance324 organizations or related health care facilities in circumstances defined by the department325 pursuant to federal law;326 (19) Increases in the bed capacity of a hospital up to ten beds or 20 percent of capacity,327 whichever is greater, in any consecutive two-year period, in a hospital that has328 maintained an overall occupancy rate greater than 60 percent for the previous 12 month329 period;330 (20) Expenditures for the minor or major repair of a health care facility or a facility that331 is exempt from the requirements of this chapter or parts thereof or services provided332 therein;333 (21) Life plan communities, provided that the skilled nursing component of the facility334 is for the exclusive use of residents of the life plan community and that a written335 exemption is obtained from the department; provided, however, that new sheltered336 nursing home beds may be used on a limited basis by persons who are not residents of337 the life plan community for a period up to five years after the date of issuance of the338 initial nursing home license, but such beds shall not be eligible for Medicaid339 reimbursement. For the first year, the life plan community sheltered nursing facility may340 utilize not more than 50 percent of its licensed beds for patients who are not residents of341 the life plan community. In the second year of operation, the life plan community shall342 allow not more than 40 percent of its licensed beds for new patients who are not residents343 of the life plan community. In the third year of operation, the life plan community shall344 allow not more than 30 percent of its licensed beds for new patients who are not residents345 of the life plan community. In the fourth year of operation, the life plan community shall346 allow not more than 20 percent of its licensed beds for new patients who are not residents347 of the life plan community. In the fifth year of operation, the life plan community shall348 23 LC 33 9433S - 15 - allow not more than 10 percent of its licensed beds for new patients who are not residents349 of the life plan community. At no time during the first five years shall the life plan350 community sheltered nursing facility occupy more than 50 percent of its licensed beds351 with patients who are not residents under contract with the life plan community. At the352 end of the five-year period, the life plan community sheltered nursing facility shall be353 utilized exclusively by residents of the life plan community, and at no time shall a354 resident of a life plan community be denied access to the sheltered nursing facility. At355 no time shall any existing patient be forced to leave the life plan community to comply356 with this paragraph. The department is authorized to promulgate rules and regulations357 regarding the use and definition of 'sheltered nursing facility' in a manner consistent with358 this Code section. Agreements to provide continuing care include agreements to provide359 care for any duration, including agreements that are terminable by either party;360 (22) Any specialty ambulatory surgical center that:361 (A) Has a hospital affiliation agreement with a hospital within a reasonable distance362 from the facility or the medical staff at the center has admitting privileges or other363 acceptable documented arrangements with such hospital to ensure the necessary backup364 for the center for medical complications. The center shall have the capability to transfer365 a patient immediately to a hospital within a reasonable distance from the facility with366 adequate emergency room services. Hospitals shall not unreasonably deny a transfer367 agreement or affiliation agreement to the center;368 (B) Provides care to Medicaid beneficiaries and, if the facility provides medical care369 and treatment to children, to PeachCare for Kids beneficiaries and provides370 uncompensated indigent and charity care in accordance with Code Section 31-6A-6;371 provided, however, that specialty ambulatory surgical centers owned by physicians in372 the practice of ophthalmology shall not be required to comply with this subparagraph;373 and374 23 LC 33 9433S - 16 - (C) Provides annual reports in the same manner and in accordance with Code375 Section 31-6A-7.376 Noncompliance with any condition of this paragraph shall result in a monetary penalty377 in the amount of the difference between the services which the center is required to378 provide and the amount actually provided and may be subject to revocation of its379 exemption status by the department for repeated failure to pay any fines or moneys due380 to the department or for repeated failure to produce data as required by Code381 Section 31-6A-7 after notice to the exemption holder and a fair hearing pursuant to382 Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.' Any penalty so383 recovered shall be dedicated and deposited by the department into the Indigent Care Trust384 Fund created pursuant to Code Section 31-8-152 for the purposes set out in Code385 Section 31-8-154, including expanding Medicaid eligibility and services; programs to386 support rural and other health care providers, primarily hospitals, who serve the medically387 indigent; and for primary health care programs for medically indigent citizens and388 children of this state;389 (23) Any joint venture ambulatory surgical center that:390 (A) Provides care to Medicaid beneficiaries and, if the facility provides medical care391 and treatment to children, to PeachCare for Kids beneficiaries and provides392 uncompensated indigent and charity care in accordance with Code Section 31-6A-6;393 and394 (B) Provides annual reports in the same manner and in accordance with Code395 Section 31-6A-7.396 Noncompliance with any condition of this paragraph shall result in a monetary penalty397 in the amount of the difference between the services which the center is required to398 provide and the amount actually provided and may be subject to revocation of its399 exemption status by the department for repeated failure to pay any fines or moneys due400 to the department or for repeated failure to produce data as required by Code401 23 LC 33 9433S - 17 - Section 31-6A-7 after notice to the exemption holder and a fair hearing pursuant to402 Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.' Any penalty so403 recovered shall be dedicated and deposited by the department into the Indigent Care Trust404 Fund created pursuant to Code Section 31-8-152 for the purposes set out in Code405 Section 31-8-154, including expanding Medicaid eligibility and services; programs to406 support rural and other health care providers, primarily hospitals, who serve the medically407 indigent; and for primary health care programs for medically indigent citizens and408 children of this state;409 (24) Diagnostic cardiac catheterization in a hospital setting on patients 15 years of age410 and older;411 (25) Therapeutic cardiac catheterization in hospitals selected by the department prior to412 July 1, 2008, to participate in the Atlantic Cardiovascular Patient Outcomes Research413 Team (C-PORT) Study and therapeutic cardiac catheterization in hospitals that, as414 determined by the department on an annual basis, meet the criteria to participate in the415 C-PORT Study but have not been selected for participation; provided, however, that if416 the criteria requires a transfer agreement to another hospital, no hospital shall417 unreasonably deny a transfer agreement to another hospital;418 (26) Infirmaries or facilities operated by, on behalf of, or under contract with the419 Department of Corrections or the Department of Juvenile Justice for the sole and420 exclusive purpose of providing health care services in a secure environment to prisoners421 within a penal institution, penitentiary, prison, detention center, or other secure422 correctional institution, including correctional institutions operated by private entities in423 this state which house inmates under the Department of Corrections or the Department424 of Juvenile Justice;425 (27) The relocation of any micro-hospital within the same county, any other health care426 facility in a rural county within the same county, and any other health care facility in an427 23 LC 33 9433S - 18 - urban county within a three-mile radius of the existing facility so long as the facility does428 not propose to offer any new or expanded clinical health services at the new location;429 (28) Facilities which are devoted to the provision of treatment and rehabilitative care for430 periods continuing for 24 hours or longer for persons who have traumatic brain injury,431 as defined in Code Section 37-3-1;432 (29) Capital expenditures for a project otherwise requiring a special health care services433 license if those expenditures are for a project to remodel, renovate, replace, or any434 combination thereof, a medical-surgical hospital and:435 (A) That hospital:436 (i) Has a bed capacity of not more than 50 beds;437 (ii) Is located in a county in which no other medical-surgical hospital is located;438 (iii) Has at any time been designated as a disproportionate share hospital by the439 department; and440 (iv) Has at least 45 percent of its patient revenues derived from medicare, Medicaid,441 or any combination thereof, for the immediately preceding three years; and442 (B) That project:443 (i) Does not result in any of the following:444 (I) The offering of any new clinical health services;445 (II) Any increase in bed capacity;446 (III) Any redistribution of existing beds among existing clinical health services; or447 (IV) Any increase in capacity of existing clinical health services;448 (ii) Has at least 80 percent of its capital expenditures financed by the proceeds of a449 special purpose county sales and use tax imposed pursuant to Article 3 of Chapter 8450 of Title 48; and451 (iii) Is located within a three-mile radius of and within the same county as the452 hospital's existing facility;453 23 LC 33 9433S - 19 - (30) The renovation, remodeling, refurbishment, or upgrading of a health care facility,454 so long as the project does not result in any of the following:455 (A) The offering of any new or expanded clinical health services;456 (B) Any increase in inpatient bed capacity;457 (C) Any redistribution of existing beds among existing clinical health services; or458 (D) A capital expenditure exceeding the threshold contained in paragraph (7) of Code459 Section 31-6A-1;460 (31) Other than for equipment used to provide positron emission tomography (PET)461 services, the acquisition of diagnostic, therapeutic, or other imaging equipment with a462 value of $3 million or less, by or on behalf of:463 (A) A hospital; or464 (B) An individual private physician or single group practice of physicians exclusively465 for use on patients of such private physician or single group practice of physicians and466 such private physician or member of such single group practice of physicians is467 physically present at the practice location where the diagnostic or other imaging468 equipment is located at least 75 percent of the time that the equipment is in use.469 The amount specified in this paragraph shall not include build-out costs, as defined by the470 department, but shall include all functionally related equipment, software, and any471 warranty and services contract costs for the first five years. The acquisition of one or more472 items of functionally related diagnostic or therapeutic equipment shall be considered as one473 project. The dollar amount specified in this paragraph and in paragraph (10) of this474 subsection shall be adjusted annually by an amount calculated by multiplying such dollar475 amounts (as adjusted for the preceding year) by the annual percentage of change in the476 consumer price index, or its successor or appropriate replacement index, if any, published477 by the United States Department of Labor for the preceding calendar year, commencing on478 July 1, 2010; and479 (32) A capital expenditure by a hospital at such hospital's primary campus for:480 23 LC 33 9433S - 20 - (A) The expansion or addition of the following clinical health services: operating481 rooms, other than dedicated outpatient operating rooms; medical-surgical services;482 gynecology; procedure rooms; intensive care; pharmaceutical services; pediatrics;483 cardiac care; or other general hospital services; provided, however, that such484 expenditure does not include the expansion or addition of inpatient beds or the485 conversion of one type of inpatient bed to another type of inpatient bed; or486 (B) The movement of clinical health services from one location on the hospital's487 primary campus to another location on such hospital's primary campus.488 31-6A-4.489 (a) An application for a special health care services license shall include:490 (1) Certification that the applicant is licensed or will seek licensure under Chapter 7 of491 this title, if subject to the requirements of such chapter;492 (2) Certification that the applicant has notified the public of the intent to file the493 application with a description of the facility or special health care services to be licensed494 by publishing a notice in a newspaper of general circulation covering the area where the495 service is to be located in at least two separate issues of the newspaper no less than ten496 business days prior to the filing of the application;497 (3) Certification that the applicant has given written notice of the intent to file the498 application by registered mail no less than ten business days prior to the filing of the499 application to the chief executive officer of each existing facility that:500 (A) Is located within a ten-mile radius of the applicant's proposed new facility or501 services;502 (B) Is the same type of facility or offers the same type of services as the proposed new503 facility or services; and504 (C) Has a special health care services license issued pursuant to this chapter; and505 (4) Any other information deemed necessary by the department.506 23 LC 33 9433S - 21 - (b) In addition to publication on the department's website, any application for a special507 health care services license shall be available for inspection and copying by any person508 immediately upon it being filed.509 (c) Any complete application for a special health care services license shall be approved510 by the department within 45 days of the filing of such application unless a timely objection511 in writing to such application is received by the department in accordance with512 subsection (a) of Code Section 31-6A-5.513 (d) No application for a special health care services license shall be considered if the514 applicant or any affiliate organization of the applicant has closed a health care facility515 under their ownership or reduced or ceased to provide health care services by more than516 25 percent at a facility under their or an affiliate organization's ownership within the517 previous ten years.518 31-6A-5.519 (a) A written objection to an application for a special health care services license may be520 submitted within 30 days of the filing of such application with the department, on the521 grounds that the application is not in the public interest of the community, only by an522 existing facility that:523 (1) Is located within a 35 mile radius of the applicant's proposed new facility; and524 (2) Has not closed a health care facility under their or an affiliate organization's525 ownership or reduced or ceased to provide health care services by more than 25 percent526 at a facility under their or an affiliate organization's ownership within the previous ten527 years.528 (b) No later than 30 days of receipt of a timely written objection pursuant to subsection (a)529 of this Code section, the commissioner shall conduct a public interest review and make a530 written determination as to whether the application is in the public interest of the531 community, taking into consideration any material adverse impact on the objecting party532 23 LC 33 9433S - 22 - or parties, unique health care needs of the community (not based on a numerical need533 formula), atypical barriers or factors, whether the new special health care services would534 foster competition or make services less costly or more accessible, and whether the535 applicant performs or proposes to perform activities outside of inpatient or outpatient care536 in the community for underserved populations. The commissioner may not deny an537 application based on an objection unless the objecting party shows by clear and convincing538 evidence that the project does not meet the criteria set forth in this subsection.539 (c) If the special health care services license is granted by the department over a timely540 objection, the person who objected shall have a right to request a fair hearing pursuant to541 Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'542 (d) If the special health care services license is denied by the department after a timely543 objection, the applicant shall have a right to request a fair hearing pursuant to Chapter 13544 of Title 50, the 'Georgia Administrative Procedure Act.'545 (e) Any party to the initial administrative appeal hearing, excluding the department, may546 seek judicial review of the final decision in accordance with the method set forth in547 Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'548 31-6A-6.549 (a) As a condition for special health care services licenses issued on and after550 January 1, 2024, the department shall require that an applicant or licensee agrees:551 (1) To provide uncompensated indigent or charity care in an amount which meets or552 exceeds the percentage of such applicant's adjusted gross revenues equivalent to:553 (A) The state-wide average of net uncompensated indigent and charity care provided554 based on the previous two most recent years if a nonprofit entity; or555 (B) The state-wide average of net uncompensated indigent and charity care provided556 based on the previous two most recent years less 3 percent if a for profit entity; and557 23 LC 33 9433S - 23 - (2) To participate as a provider of medical assistance for Medicaid purposes, and, if the558 facility provides medical care and treatment to children, to participate as a provider for559 PeachCare for Kids beneficiaries.560 (b) A grantee or successor in interest for a special health care services license or an561 authorization to operate under this chapter which violates such an agreement or violates562 any conditions imposed by the department relating to such services shall be liable to the563 department for a monetary penalty in the amount of 1 percent of its net revenue for every564 0.5 percent of uncompensated indigent and charity care not provided and may be subject565 to revocation of its special health care services license, in whole or in part, by the566 department pursuant to Code Section 31-6A-8. Any penalty so recovered shall be567 dedicated and deposited by the department into the Indigent Care Trust Fund created568 pursuant to Code Section 31-8-152 for the purposes set out in Code Section 31-8-154,569 including expanding Medicaid eligibility and services; programs to support rural and other570 health care providers, primarily hospitals, who serve the medically indigent; and for571 primary health care programs for medically indigent citizens and children of this state.572 (c) Penalties authorized under this Code section shall be subject to the same notices and573 hearing for the levy of fines under Code Section 31-6A-8.574 (d)(1) This Code section shall not apply to a hospital or any health care facilities owned575 by a hospital or health care system that has a payer mix of greater than 40 percent576 Medicaid recipients and uncompensated indigent and charity care of at least 2 percent;577 provided, however, that a hospital's cost gap between its Medicaid reimbursement rate578 and the Medicare reimbursement shall count toward such uncompensated indigent and579 charity care amount.580 (2) As used in this subsection, the term 'payer mix' means the proportionate share of581 itemized charges attributable to patients assignable to a specific payer classification to582 total itemized charges for all patients.583 23 LC 33 9433S - 24 - (e) The department may withhold all or any portion of disproportionate share hospital584 funds to any hospital that is subject to the requirements contained in paragraph (1) of585 subsection (a) of this Code section that fails to meet the minimum indigent and charity care586 requirements for two consecutive years.587 31-6A-7.588 (a) Each health care facility in this state that is required by the department to provide589 uncompensated indigent or charity care pursuant to Code Section 31-6A-6 shall submit an590 annual report of certain health care information to the department. The report shall be due591 on the last day of January and shall cover the 12 month period preceding each such592 calendar year.593 (b) The annual report required under subsection (a) of this Code section shall contain the594 following information:595 (1) Total gross revenues;596 (2) Bad debts;597 (3) Amounts of free care extended, excluding bad debts;598 (4) Contractual adjustments;599 (5) Amounts of care provided under a Hill-Burton commitment;600 (6) Amounts of charity care provided to indigent persons;601 (7) Amounts of outside sources of funding from governmental entities, philanthropic602 groups, or any other source, including the proportion of any such funding dedicated to the603 care of indigent persons; and604 (8) For cases involving indigent persons:605 (A) The number of persons treated;606 (B) The number of inpatients and outpatients;607 (C) Total patient days;608 (D) The number of patients categorized by county of residence; and609 23 LC 33 9433S - 25 - (E) The indigent care costs incurred by the health care facility by county of residence.610 As used in this subsection, the term 'indigent persons' means persons having as a maximum611 allowable income level an amount corresponding to 125 percent of the federal poverty612 guideline.613 (c) The department shall provide a form for the report required by this Code section and614 may provide in said form for further categorical divisions of the information listed in615 subsection (b) of this Code section.616 (d)(1) In the event the department does not receive an annual report from an institution,617 on or before the date such report was due or receives a timely but incomplete report, the618 department shall notify the institution regarding the deficiencies and shall be authorized619 to fine such institution an amount not to exceed $500.00 per day for every day up to 30620 days and $1,000.00 per day for every day over 30 days of such untimely or deficient621 report. Any fine so recovered shall be dedicated and deposited by the department into the622 Indigent Care Trust Fund created pursuant to Code Section 31-8-152 for the purposes set623 out in Code Section 31-8-154, including expanding Medicaid eligibility and services;624 programs to support rural and other health care providers, primarily hospitals, who serve625 the medically indigent; and for primary health care programs for medically indigent626 citizens and children of this state.627 (2) In the event the department does not receive an annual report from an institution628 within 180 days following the date such report was due or receives a timely but629 incomplete report which is not completed within such 180 days, the department shall be630 authorized to revoke such institution's permit in accordance with Code Section 31-7-4.631 31-6A-8.632 (a) The department may revoke a special health care services license, in whole or in part,633 after notice to the holder of the special health care services license and a fair hearing634 23 LC 33 9433S - 26 - pursuant to Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act,' for the635 following reasons:636 (1) Failure to comply with the provisions of this chapter;637 (2) The intentional provision of false information to the department by a licensee in that638 licensee's application;639 (3) Repeated failure to pay any fines or moneys due to the department;640 (4) Failure to maintain minimum quality of care standards that may be established by the641 department;642 (5) Failure to participate as a provider of medical assistance for Medicaid purposes or643 the PeachCare for Kids Program, if applicable; or644 (6) The failure to submit a timely or complete report within 180 days following the date645 the report is due pursuant to Code Section 31-6A-7.646 (b) In the event that a new special health care service is knowingly offered or developed647 without having obtained a special health care services license as required by this chapter,648 or the special health care services license for such service is revoked according to the649 provisions of this Code section, a facility or applicant may be fined an amount of $5,000.00650 per day up to 30 days, $10,000.00 per day from 31 days through 60 days, and $25,000.00651 per day after 60 days for each day that the violation of this chapter has existed and652 knowingly and willingly continues; provided, however, that the expenditure or653 commitment of or incurring an obligation for the expenditure of funds to take or perform654 actions not subject to this chapter or to acquire, develop, or prepare a health care facility655 site for which a special health care services license application is denied shall not be a656 violation of this chapter and shall not be subject to such a fine. The commissioner shall657 determine, after notice and a hearing, whether the fines provided in this Code section shall658 be levied. Any fine so recovered shall be dedicated and deposited by the department into659 the Indigent Care Trust Fund created pursuant to Code Section 31-8-152 for the purposes660 set out in Code Section 31-8-154, including expanding Medicaid eligibility and services;661 23 LC 33 9433S - 27 - programs to support rural and other health care providers, primarily hospitals, who serve662 the medically indigent; and for primary health care programs for medically indigent663 citizens and children of this state.664 (c) In addition, for purposes of this Code section, the State of Georgia, acting by and665 through the department, or any other interested person, shall have standing in any court of666 competent jurisdiction to maintain an action for injunctive relief to enforce the provisions667 of this chapter.668 (d) The department shall have the authority to make public or private investigations or669 examinations inside or outside of this state to determine whether any provisions of this670 chapter or any other law, rule, regulation, or formal order relating to the provision of671 special health care services has been violated. Such investigations may be initiated at any672 time in the discretion of the department and may continue during the pendency of any673 action initiated by the department pursuant to this Code section. For the purpose of674 conducting any investigation or inspection pursuant to this subsection, the department shall675 have the authority, upon providing reasonable notice, to require the production of any676 books, records, papers, or other information related to any special health care services677 license issue.678 31-6A-9.679 Any person who acquires a health care facility by stock or asset purchase, merger,680 consolidation, or other lawful means shall notify the department of such acquisition, the681 date thereof, and the name and address of the acquiring person. Such notification shall be682 made in writing to the department within 45 days following the acquisition and the683 acquiring person may be fined by the department in the amount of $500.00 for each day684 that such notification is late. Such fine shall be paid into the state treasury. Any fine so685 recovered shall be dedicated and deposited by the department into the Indigent Care Trust686 Fund created pursuant to Code Section 31-8-152 for the purposes set out in Code687 23 LC 33 9433S - 28 - Section 31-8-154, including expanding Medicaid eligibility and services; programs to688 support rural and other health care providers, primarily hospitals, who serve the medically689 indigent; and for primary health care programs for medically indigent citizens and children690 of this state.691 31-6A-10.692 (a) Except as provided in subsection (c) of this Code section, on and after January 1, 2024,693 health care facilities, as defined in Code Section 31-6A-1, shall not be subject to the former694 provisions of Chapter 6 of this title, as such existed on December 31, 2023, and shall not695 be required to obtain or retain a certificate of need in order to operate, but all such valid696 certificates of need in existence on December 31, 2023, shall be converted by operation of697 law to special health care services licenses and all such license holders shall be subject to698 the provisions of this chapter on and after such date; provided, however, that such health699 care facilities shall not be subject to the requirements of Code Section 31-6A-6 but shall700 instead be subject to any conditions previously imposed by the department relating to701 indigent or charity care and participation as a Medicaid provider that were in effect on702 December 31, 2023, pursuant to the former provisions of Chapter 6 of this title, as such703 existed on December 31, 2023. The department may withhold all or any portion of704 disproportionate share hospital funds to any hospital exempt pursuant to this subsection705 that fails to meet any conditions previously imposed by the department relating to indigent706 and charity care for two consecutive years. In the event a health care facility operating707 pursuant to this subsection receives any modification of its special health care services708 license, it shall immediately become subject to the requirements contained in Code Section709 31-6A-6 in lieu of the conditions previously imposed by the department relating to indigent710 or charity care and participation as a Medicaid provider or PeachCare for Kids Program711 provider that were in effect on December 31, 2023.712 23 LC 33 9433S - 29 - (b)(1) On and after January 1, 2024, any person who had a valid exemption from713 certificate of need requirements under the former provisions of Chapter 6 of this title, as714 such existed on December 31, 2023, shall not be required to obtain or retain a special715 health care services license under this chapter in order to operate, but any such valid716 exemption in existence on December 31, 2023, shall be converted by operation of law to717 an exemption to special health care services license requirements under this chapter but718 shall be subject to any conditions previously imposed pursuant to the former provisions719 of Chapter 6 of this title, as such existed on December 31, 2023.720 (2) In the event a person that is exempt pursuant to paragraph (1) of this subsection721 makes any modification to the special health care services it provides, it shall722 immediately become subject to the requirements contained in Code Section 31-6A-6 in723 lieu of the conditions previously imposed by the department relating to indigent or charity724 care and participation as a Medicaid provider or PeachCare for Kids Program provider725 that were in effect on December 31, 2023.726 (c)(1) On and after January 1, 2024, a destination cancer hospital that was granted a727 certificate of need pursuant to the former provisions of Chapter 6 of this title, as such728 existed on December 31, 2023, may convert to a hospital by notifying the department in729 writing as to the date of conversion. Upon such conversion, the hospital may continue730 to provide all institutional health services and other services it provided as of the date of731 such conversion, including, but not limited to, inpatient beds, outpatient services, surgery,732 radiation therapy, imaging, and positron emission tomography (PET) scanning, without733 any further approval from the department; provided, however, that upon such conversion,734 such hospital shall immediately become subject to the requirements of Code735 Section 31-6A-6. On and after the date of conversion, the hospital shall be classified as736 a hospital under this chapter and shall be subject to all requirements and conditions for737 any new special health care services license requirements, exemptions, and for all other738 purposes, except as otherwise provided herein.739 23 LC 33 9433S - 30 - (2) In the event that a destination cancer hospital does not convert to a hospital, it shall740 remain subject to all requirements and conditions previously in effect as of741 December 31, 2023, under the provisions of Chapter 6 of this title as they existed on such742 date.743 (d) Any outstanding appeals before the Certificate of Need Appeal Panel as of744 December 31, 2023, relating to health care facilities, as defined in Code Section 31-6A-1,745 shall be deemed moot and dismissed by operation of law as of January 1, 2024.746 31-6A-11.747 The department shall be authorized to promulgate rules and regulations to implement the748 provisions of this chapter."749 PART III750 SECTION 3-1.751 Said title is further amended in Article 2 of Chapter 7, relating to the Georgia Building752 Authority, by redesignating Code Section 31-7-24 as Code Section 31-7-25 and by adding753 a new Code section to the end of Article 1, relating to regulation of hospitals and related754 institutions, to read as follows:755 "31-7-24.756 (a) As used in this Code section, the term:757 (1) 'Hospital' shall have the same meaning as in Code Section 31-7-22.758 (2) 'Medical use rights' means rights or interests in real property in which the owner of759 the property has agreed not to sell or lease such real property for identified medical uses760 or purposes.761 (b) It shall be unlawful for any hospital to purchase, renew, extend, lease, maintain, or hold762 medical use rights.763 23 LC 33 9433S - 31 - (c) This Code section shall not be construed to impair any contracts in existence as of the764 effective date of this Code section."765 SECTION 3-2.766 Code Section 50-18-70 of the Official Code of Georgia Annotated, relating to legislative767 intent and definitions relative to open records laws, is amended by revising subsection (b)768 as follows:769 "(b) As used in this article, the term:770 (1) 'Agency' shall have the same meaning as in Code Section 50-14-1 and shall771 additionally include any association, corporation, or other similar organization that has772 a membership or ownership body composed primarily of counties, municipal773 corporations, or school districts of this state, their officers, or any combination thereof774 and derives more than 33 1/3 percent of its general operating budget from payments from775 such political subdivisions. Such term shall also include any nonprofit organization to776 which is leased and transferred hospital assets of a hospital authority through a corporate777 restructuring and any subsidiaries or foundations established by such nonprofit778 organization in furtherance of the public mission of the hospital authority.779 (2) 'Public record' means all documents, papers, letters, maps, books, tapes, photographs,780 computer based or generated information, data, data fields, or similar material prepared781 and maintained or received by an agency or by a private person or entity in the782 performance of a service or function for or on behalf of an agency or when such783 documents have been transferred to a private person or entity by an agency for storage784 or future governmental use, including, but not limited to, any such material in the785 possession or control of a nonprofit organization to which is leased and transferred786 hospital assets of a hospital authority through a corporate restructuring which are related787 to the operation of the hospital and other leased facilities in the performance of services788 on behalf of the hospital authority."789 23 LC 33 9433S - 32 - PART IV790 SECTION 4-1.791 Code Section 16-11-62 of the Official Code of Georgia Annotated, relating to eavesdropping,792 surveillance, or intercepting communication which invades privacy of another, and divulging793 private message, is amended by revising paragraph (8) as follows:794 "(8) Any person to intentionally and in a clandestine manner place, or direct someone795 else to place, a global positioning system monitoring device, or any other electronic796 monitoring device, on a motor vehicle owned or leased by another person without the797 consent of such person when such person has a protective order pursuant to Code Section798 17-17-16, 19-13-4, or 19-13A-4, or a protective order from another jurisdiction, against799 the person who places, or directs another to place, the global positioning system800 monitoring device or other electronic device. Nothing in this paragraph shall be801 construed to limit electronic monitoring as provided in Code Sections 31-7-12 and802 31-7-12.1, and 31-6-2; or"803 SECTION 4-2.804 Title 31 of the Official Code of Georgia Annotated, relating to health, is amended in Code805 Section 31-2-4, relating to the powers, duties, functions, and responsibilities of the806 Department of Community Health, by revising paragraph (13) of subsection (d) as follows:807 "(13) Shall request any necessary federal approval for and facilitate the application of808 certificates of need for facilities capable of providing long-term care services, with809 Medicaid as the primary funding source, to inmates who are eligible for such services and810 funding upon his or her their release from a public institution, as such term is defined in811 Code Section 49-4-31."812 23 LC 33 9433S - 33 - SECTION 4-3.813 Said title is further amended in Code Section 31-2-5, relating to the transfer of personnel and814 functions to the Department of Community Health, by revising subsection (c) as follows:815 "(c) The department shall succeed to all rules, regulations, policies, procedures, and816 administrative orders of the predecessor agency or unit which were in effect on June 30,817 2009, or scheduled to go into effect on or after July 1, 2009, and which relate to the818 functions transferred to the department by this chapter. Such rules, regulations, policies,819 procedures, and administrative orders shall remain in effect until amended, repealed,820 superseded, or nullified by proper authority or as otherwise provided by law. Rules of the821 department shall be adopted, promulgated, and implemented as provided in Chapter 13 of822 Title 50, the 'Georgia Administrative Procedure Act,.' except that only rules promulgated823 pursuant to Chapter 6 of this title shall be subject to the provisions of Code Section824 31-6-21.1."825 SECTION 4-4.826 Said title is further amended in Code Section 31-2-7, relating to rules and regulations and827 variances and waivers, by revising subsection (b) as follows:828 "(b) The department upon application or petition may grant variances and waivers to829 specific rules and regulations which establish standards for facilities or entities regulated830 by the department as follows:831 (1) The department may authorize departure from the literal requirements of a rule or832 regulation by granting a variance upon a showing by the applicant or petitioner that the833 particular rule or regulation that is the subject of the variance request should not be834 applied as written because strict application would cause undue hardship. The applicant835 or petitioner additionally must show that adequate standards affording protection of836 health, safety, and care exist and will be met in lieu of the exact requirements of the rule837 or regulation in question;838 23 LC 33 9433S - 34 - (2) The department may dispense entirely with the enforcement of a rule or regulation839 by granting a waiver upon a showing by the applicant or petitioner that the purpose of the840 rule or regulation is met through equivalent standards affording equivalent protection of841 health, safety, and care;842 (3) The department may grant waivers and variances to allow experimentation and843 demonstration of new and innovative approaches to delivery of services upon a showing844 by the applicant or petitioner that the intended protections afforded by the rule or845 regulation which is the subject of the request are met and that the innovative approach has846 the potential to improve service delivery;847 (4) Waivers or variances which affect an entire class of facilities may only be approved848 by the Board of Community Health and shall be for a time certain, as determined by the849 board. A notice of the proposed variance or waiver affecting an entire class of facilities850 shall be made in accordance with the requirements for notice of rule making in Chapter851 13 of Title 50, the 'Georgia Administrative Procedure Act'; or852 (5) Variances or waivers which affect only one facility in a class may be approved or853 denied by the department and shall be for a time certain, as determined by the854 department. The department shall maintain a record of such action and shall make this855 information available to the board and all other persons who request it.856 This subsection shall not apply to rules adopted by the department pursuant to Code857 Section 31-6-21.1."858 SECTION 4-5.859 Said title is further amended in Code Section 31-7-3, relating to requirements for permits to860 operate institutions, by revising subsection (a) as follows:861 "(a) Any person or persons responsible for the operation of any institution, or who may862 hereafter propose to establish and operate an institution and to provide specified clinical863 services, shall submit an application to the department for a permit to operate the institution864 23 LC 33 9433S - 35 - and provide such services, with such application to be made on forms prescribed by the865 department. No institution shall be operated in this state without such a permit, which shall866 be displayed in a conspicuous place on the premises. No clinical services shall be provided867 by an institution except as approved by the department in accordance with the rules and868 regulations established pursuant to Code Section 31-7-2.1. Failure or refusal to file an869 application for a permit shall constitute a violation of this chapter and shall be dealt with870 as provided for in Article 1 of Chapter 5 of this title. Following inspection and871 classification of the institution for which a permit is applied for, the department may issue872 or refuse to issue a permit or a provisional permit. Permits issued shall remain in force and873 effect until revoked or suspended; provisional permits issued shall remain in force and874 effect for such limited period of time as may be specified by the department. Upon875 conclusion of the Atlantic Cardiovascular Patient Outcomes Research Team (C-PORT)876 Study, the department shall consider and analyze the data and conclusions of the study and877 promulgate rules pursuant to Code Section 31-7-2.1 to regulate the quality of care for878 therapeutic cardiac catheterization. All hospitals that participated in the study and are were879 exempt from obtaining a certificate of need based on paragraph (22) of subsection (a) of880 former Code Section 31-6-47 as it existed on December 31, 2023, shall apply for a permit881 to continue providing therapeutic cardiac catheterization services once the department882 promulgates the rules required by this Code section."883 SECTION 4-6.884 Said title is further amended in Code Section 31-7-75, relating to the functions and powers885 of county and municipal hospital authorities, by revising paragraph (24) as follows:886 "(24) To provide management, consulting, and operating services including, but not887 limited to, administrative, operational, personnel, and maintenance services to another888 hospital authority, hospital, health care facility, as said term is defined in Chapter 6 of this889 title Code Section 31-6A-1, person, firm, corporation, or any other entity or any group890 23 LC 33 9433S - 36 - or groups of the foregoing; to enter into contracts alone or in conjunction with others to891 provide such services without regard to the location of the parties to such transactions;892 to receive management, consulting, and operating services including, but not limited to,893 administrative, operational, personnel, and maintenance services from another such894 hospital authority, hospital, health care facility, person, firm, corporation, or any other895 entity or any group or groups of the foregoing; and to enter into contracts alone or in896 conjunction with others to receive such services without regard to the location of the897 parties to such transactions;"898 SECTION 4-7.899 Said title is further amended in Code Section 31-7-94.1, the "Rural Hospital Organization900 Assistance Act," by revising paragraph (1) of subsection (e) as follows:901 "(1) Infrastructure development, including, without being limited to, health information902 technology, facility renovation, or equipment acquisition; provided, however, that the903 amount granted to any qualified hospital may not exceed the expenditure thresholds that904 would constitute a new institutional health service requiring a certificate of need under905 Chapter 6 of this title and the grant award may be conditioned upon obtaining local906 matching funds;"907 SECTION 4-8.908 Said title is further amended in Code Section 31-7-116, relating to provisions contained in909 obligations and security for obligations, procedures for issuance of bonds and bond910 anticipation notes, interest rates, and limitations and conditions, by revising subsection (i)911 as follows:912 "(i) No bonds or bond anticipation notes except refunding bonds shall be issued by an913 authority under this article unless its board of directors shall adopt adopts a resolution914 finding that the project for which such bonds or notes are to be issued will promote the915 23 LC 33 9433S - 37 - objectives stated in subsection (b) of Code Section 31-7-111 and will increase or maintain916 employment in the territorial area of such authority. Nothing contained in this Code917 section shall be construed as permitting any authority created under this article or any918 qualified sponsor to finance, construct, or operate any project without obtaining any919 certificate of need or other approval, permit, or license which, under the laws of this state,920 is required in connection therewith."921 SECTION 4-9.922 Said title is further amended by repealing and reserving Code Section 31-7-155, relating to923 certificates of need for new service or extending service area and exemption from certificate.924 SECTION 4-10.925 Said title is further amended by repealing in its entirety Code Section 31-7-179, relating to926 certificate of need not required for hospice care.927 SECTION 4-11.928 Said title is further amended by revising Code Section 31-7-307, relating to certificate of929 need not required of private home care provider licensees, as follows:930 "31-7-307.931 (a) A certificate of need issued pursuant to Chapter 6 of this title is not required for any932 person, business entity, corporation, or association, whether operated for profit or not for933 profit, which is operating as a private home care provider as long as such operation does934 not also constitute such person, entity, or organization operating as a home health agency935 or personal care home under this chapter.936 (b) A license issued under this article shall not entitle the licensee to operate as a home937 health agency, as defined in Code Section 31-7-150, under medicare Medicare or Medicaid938 guidelines."939 23 LC 33 9433S - 38 - SECTION 4-12.940 Said title is further amended by revising Code Section 31-8-153.1, relating to irrevocable941 transfer of funds to trust fund and provision for indigent patients, as follows:942 "31-8-153.1.943 After June 30, 1993, any hospital authority, county, municipality, or other state or local944 public or governmental entity is authorized to transfer moneys to the trust fund. Transfer945 of funds under the control of a hospital authority, county, municipality, or other state or946 local public or governmental entity shall be a valid public purpose for which those funds947 may be expended. The department is authorized to transfer to the trust fund moneys paid948 to the state by a health care facility as a monetary penalty for the violation of an agreement949 to provide a specified amount of clinical health services to indigent patients uncompensated950 indigent or charity care pursuant to a certificate of need license held by such facility. Such951 transfers shall be irrevocable and shall be used only for the purposes contained in Code952 Section 31-8-154."953 SECTION 4-13.954 Said title is further amended by revising Code Section 31-8-181, relating to individuals and955 hospitals excluded from application of article, as follows:956 "31-8-181.957 This article shall not apply to the following:958 (1) An individual licensed to practice medicine under the provisions of Chapter 34 of959 Title 43, and persons employed by such an individual, provided that any nursing home,960 personal care home as defined by Code Section 31-6-2 31-6A-1, hospice as defined by961 Code Section 31-7-172, respite care service as defined by Code Section 49-6-72, adult962 day program, or home health agency owned, operated, managed, or controlled by a963 person licensed to practice medicine under the provisions of Chapter 34 of Title 43 shall964 be subject to the provisions of this article; or965 23 LC 33 9433S - 39 - (2) A hospital. However, to the extent that a hospital's nursing home, personal care966 home as defined by Code Section 31-6-2 31-6A-1, hospice as defined by Code Section967 31-7-172, respite care service as defined by Code Section 49-6-72, adult day program,968 or home health agency holds itself out as providing care, treatment, or therapeutic969 activities for persons with Alzheimer's disease or Alzheimer's related dementia as part of970 a specialty unit, such nursing home, personal care home, hospice, respite care service,971 adult day program, or home health agency shall be subject to the provisions of this972 article."973 SECTION 4-14.974 Said title is further amended in Code Section 31-11-100, relating to definitions relative to the975 Georgia Trauma Care Network Commission, by revising paragraph (3) as follows:976 "(3) 'Trauma center' means a facility designated by the Department of Public Health as977 a Level I, II, III, or IV or burn trauma center. However, a burn trauma center shall not978 be considered or treated as a trauma center for purposes of certificate of need979 requirements under state law or regulations, including exceptions to need and adverse980 impact standards allowed by the department for trauma centers or for purposes of981 identifying safety net hospitals."982 SECTION 4-15.983 Code Section 33-45-1 of the Official Code of Georgia Annotated, relating to definitions984 relative to continuing care providers and facilities, is amended by revising paragraphs (1),985 (8), and (15) as follows:986 "(1) 'Continuing care' means furnishing pursuant to a continuing care agreement:987 (A) Lodging that is not:988 (i) In a skilled nursing facility, as such term is defined in Code Section 31-6-2 Code989 Section 31-6A-1;990 23 LC 33 9433S - 40 - (ii) An intermediate care facility, as such term is defined in Code Section 31-6-2991 Code Section 31-6A-1;992 (iii) An assisted living community, as such term is defined in Code Section993 31-7-12.2; or994 (iv) A personal care home, as such term is defined in Code Section 31-7-12;995 (B) Food; and996 (C) Nursing care provided in a facility or in another setting designated by the997 agreement for continuing care to an individual not related by consanguinity or affinity998 to the provider furnishing such care upon payment of an entrance fee including skilled999 or intermediate nursing services and, at the discretion of the continuing care provider,1000 personal care services including, without limitation, assisted living care services1001 designated by the continuing care agreement, including such services being provided1002 pursuant to a contract to ensure the availability of such services to an individual not1003 related by consanguinity or affinity to the provider furnishing such care upon payment1004 of an entrance fee.1005 Such term shall not include continuing care at home."1006 "(8) 'Limited continuing care' means furnishing pursuant to a continuing care agreement:1007 (A) Lodging that is not:1008 (i) In a skilled nursing facility, as such term is defined in Code Section 31-6-2 Code1009 Section 31-6A-1;1010 (ii) An intermediate care facility, as such term is defined in Code Section 31-6-21011 Code Section 31-6A-1;1012 (iii) An assisted living community, as such term is defined in Code Section1013 31-7-12.2; or1014 (iv) A personal care home, as such term is defined in Code Section 31-7-12;1015 (B) Food; and1016 23 LC 33 9433S - 41 - (C) Personal services, whether such personal services are provided in a facility such1017 as a personal care home or an assisted living community or in another setting1018 designated by the continuing care agreement, to an individual not related by1019 consanguinity or affinity to the provider furnishing such care upon payment of an1020 entrance fee.1021 Such term shall not include continuing care at home."1022 "(15) 'Residential unit' means a residence or apartment in which a resident lives that is1023 not a skilled nursing facility as defined in Code Section 31-6-2 Code Section 31-6A-1,1024 an intermediate care facility as defined in Code Section 31-6-2 Code Section 31-6A-1,1025 an assisted living community as defined in Code Section 31-7-12.2, or a personal care1026 home as defined in Code Section 31-7-12."1027 SECTION 4-16.1028 Code Section 33-45-3 of the Official Code of Georgia Annotated, relating to certificate of1029 authority required for operation of life plan facilities, is amended by revising subsections (b)1030 and (d) as follows:1031 "(b) Nothing in this chapter shall be construed so as to modify or limit in any way:1032 (1) Provisions of Article 3 of Chapter 6 of Title 31 and any rules and regulations1033 promulgated by the Department of Community Health pursuant to such article relating1034 to certificates of need for life plan communities or home health agencies, as such terms1035 are defined in Code Section 31-6-2; or1036 (2) Provisions provisions of Chapter 7 of Title 31 relating to licensure or permit1037 requirements and any rules and regulations promulgated by the Department of1038 Community Health pursuant to such chapter, including, without limitation, licensure or1039 permit requirements for nursing home care, assisted living care, personal care home1040 services, home health services, and private home care services."1041 23 LC 33 9433S - 42 - "(d) A provider of continuing care at home may contract with a licensed home health1042 agency to provide home health services to a resident. In order to provide home health1043 services directly, a provider of continuing care at home shall obtain a certificate of need for1044 a home health agency, as such term is defined in Code Section 31-6-2 31-6A-1, pursuant1045 to the same criteria and rules as are applicable to freestanding home health agencies that1046 are not components of life plan communities."1047 SECTION 4-17.1048 Code Section 33-45-7.1 of the Official Code of Georgia Annotated, relating to provider1049 authorized to offer continuing care when resident purchases resident owned living unit, is1050 amended as follows:1051 "33-45-7.1.1052 A provider which has obtained a certificate of authority pursuant to Code Section 33-45-51053 and the written approval of the Commissioner is authorized to offer, as a part of the1054 continuing care agreement, continuing care at home or continuing care in which the1055 resident purchases a resident owned living unit, subject to the provisions of Chapters 6 6A1056 and 7 of Title 31 and rules and regulations promulgated by the Department of Community1057 Health pursuant to such chapters chapter relating to certificate of need and licensure1058 requirements."1059 SECTION 4-18.1060 Code Section 37-1-29 of the Official Code of Georgia Annotated, relating to crisis1061 stabilization units, is amended by revising subsection (j) as follows:1062 "(j) Any program certified as a crisis stabilization unit pursuant to this Code section shall1063 be exempt from the requirements to obtain a certificate of need pursuant to Article 3 of1064 Chapter 6 of Title 31. Reserved."1065 23 LC 33 9433S - 43 - SECTION 4-19.1066 Code Section 43-26-7 of the Official Code of Georgia Annotated, relating to requirements1067 for licensure as a registered professional nurse, is amended by revising paragraph (4) of1068 subsection (c) as follows:1069 "(4)(A)(i) Meet continuing competency requirements as established by the board;1070 (B)(ii) If the applicant entered a nontraditional nursing education program as a1071 licensed practical nurse whose academic education as a licensed practical nurse1072 included clinical training in pediatrics, obstetrics and gynecology, medical-surgical,1073 and mental illness, have has practiced nursing as a registered professional nurse in a1074 health care facility for at least one year in the three years preceding the date of the1075 application, and such practice is documented by the applicant and approved by the1076 board; provided, however, that for an applicant who does not meet the experience1077 requirement of this subparagraph division, the board shall require the applicant to1078 complete a 320 hour postgraduate preceptorship arranged by the applicant under the1079 oversight of a registered nurse where such applicant is transitioned into the role of a1080 registered professional nurse. The preceptorship shall have prior approval of the1081 board, and successful completion of the preceptorship shall be verified in writing by1082 the preceptor; or1083 (C)(iii) If the applicant entered a nontraditional nursing education program as1084 anything other than a licensed practical nurse whose academic education as a licensed1085 practical nurse included clinical training in pediatrics, obstetrics and gynecology,1086 medical-surgical, and mental illness, have has graduated from such program and1087 practiced nursing as a registered professional nurse in a health care facility for at least1088 two years in the five years preceding the date of the application, and such practice is1089 documented by the applicant and approved by the board; provided, however, that for1090 an applicant who does not meet the experience requirement of this subparagraph1091 division, the board shall require the applicant to complete a postgraduate1092 preceptorship of at least 480 hours but not more than 640 hours, as determined by the1093 23 LC 33 9433S - 44 - board, arranged by the applicant under the oversight of a registered professional nurse1094 where such applicant is transitioned into the role of a registered professional nurse.1095 The preceptorship shall have prior approval of the board, and successful completion1096 of the preceptorship shall be verified in writing by the preceptor.1097 (B) For purposes of this paragraph, the term 'health care facility' means an acute care1098 inpatient facility, a long-term acute care facility, an ambulatory surgical center or1099 obstetrical facility as defined in Code Section 31-6-2 31-6A-1, and a skilled nursing1100 facility, so long as such skilled nursing facility has 100 beds or more and provides1101 health care to patients with similar health care needs as those patients in a long-term1102 acute care facility;"1103 SECTION 4-20.1104 Code Section 50-13-42 of the Official Code of Georgia Annotated, relating to the1105 applicability of the Administrative Procedure Act, is amended by revising subsection (a) as1106 follows:1107 "(a) In addition to those agencies expressly exempted from the operation of this chapter1108 under paragraph (1) of Code Section 50-13-2, this article shall not apply to the1109 Commissioner of Agriculture, the Public Service Commission, the Certificate of Need1110 Appeal Panel, or the Department of Community Health, unless specifically provided1111 otherwise for certain programs or in relation to specific laws, or to the Department of Labor1112 with respect to unemployment insurance benefit hearings conducted under the authority of1113 Chapter 8 of Title 34. Such exclusion does not prohibit such office or agencies from1114 contracting with the Office of State Administrative Hearings on a case-by-case basis."1115 SECTION 4-21.1116 Code Section 50-26-19 of the Official Code of Georgia Annotated, relating to financing1117 acquisition, construction, and equipping of health care facilities, is amended by repealing1118 subsection (c).1119 23 LC 33 9433S - 45 - SECTION 4-22.1120 Code Section 51-16-1 of the Official Code of Georgia Annotated, relating to definitions1121 relative to the COVID-19 Pandemic Business Safety Act, is amended by revising paragraph1122 (5) as follows:1123 "(5) 'Healthcare facility' shall have the same meaning as 'healthcare facility' as provided1124 for in paragraph (17) of Code Section 31-6-2, as it existed on December 30, 2023, and1125 all related parties; as 'institution' as provided for in subparagraphs (A) and (C) through1126 (G) of paragraph (4) and paragraph (5) of Code Section 31-7-1 and all related parties; as1127 'end stage renal disease' as provided for in paragraph (6) of Code Section 31-44-1 and all1128 related parties; and shall mean the recipient of a contract as authorized in paragraph (5)1129 of Code Section 37-1-20 and any clinical laboratory certified under the Clinical1130 Laboratory Improvement Amendments in Section 353 of the Public Health Service Act,1131 42 U.S.C. Section 263a. Such term shall not be construed to include premises."1132 PART V1133 SECTION 5-1.1134 For purposes of rule-making, this Act shall become effective upon its approval by the1135 Governor or upon its becoming law without such approval. For all other purposes, this Act1136 shall become effective on January 1, 2024.1137 SECTION 5-2.1138 All laws and parts of laws in conflict with this Act are repealed.1139