Bill Text: NJ S1036 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires each hospital board of trustees to adopt a written policy governing conflicts of interest.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-02-08 - Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [S1036 Detail]
Download: New_Jersey-2016-S1036-Introduced.html
Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Requires each hospital board of trustees to adopt a written policy governing conflicts of interest.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning hospital boards of trustees and supplementing Title 26 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The board of trustees of a general hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) shall adopt a written policy and procedures governing conflicts of interest on the part of board members. Each general hospital shall maintain its board's written policy and procedures governing conflicts of interest in its administrative records, which policy and procedures shall be available to the Department of Health.
The written policy and procedures shall be updated annually.
Each general hospital shall post on its website its most current written policy and procedures governing conflicts of interest, and shall make them publicly available upon request.
b. The written policy and procedures adopted pursuant to subsection a. of this section shall include, at a minimum, requirements for:
(1) the disclosure by a board member of any perceived or actual conflict of interest on the member's part with respect to any matter pending before the board;
(2) a prohibition on the board member voting on any such matter, or participating in the discussion relating to the awarding of a contract concerning any such matter by the members of the board;
(3) the maintenance by the board of a record of the disclosure by the board member of the perceived or actual conflict of interest; and
(4) public disclosure of all actual conflicts of interest involving board members, and of any matter involving the awarding of a contract between a general hospital and a board member.
c. Each hospital board of trustees shall disseminate the written policy and procedures to all current board members upon its adoption and to each new board member upon appointment to the board.
d. In the case where a board member has an actual conflict of interest in a matter involving the awarding of a contract in an amount greater than $25,000, a general hospital shall solicit at least three bids or proposals, as appropriate, with respect to that contract.
e. Compliance with the provisions of this section shall be a condition of licensure pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
2. This act shall take
effect on the 180th day after enactment.
STATEMENT
This bill requires that each general hospital, as a condition of licensure, adopt a written policy and procedures governing conflicts of interest on the part of its board members.
Written policies and procedures established under the bill will be required to include, at a minimum, requirements for: disclosures by board members of any actual conflict of interest on the member's part with respect to any matter pending before the board; a prohibition on board members voting on, or participating in a discussion relating to, the awarding of a contract concerning any matter involving an actual conflict of interest; the board to maintain a record of disclosures by board members of actual conflicts of interest; and public disclosure of all actual conflicts of interest involving board members, and of any matter involving the awarding of a contract between a general hospital and a board member.
In the case where a board member has an actual conflict of interest in a matter involving the awarding of a contract in an amount greater than $25,000, the hospital will be required to solicit at least three bids or proposals with respect to that contract.
The hospital board of trustees will be required to disseminate the written policy and procedures to all current board members upon adoption of the written policy and procedures, and to each new board member upon the member's appointment to the board. In addition, the hospital will be required to maintain the policy and procedures in its administrative records, make the policy and procedures available to the Department of Health, post the policy and procedures on its Internet website, and make the policy and procedures publicly available upon request. The hospital's policy and procedures are to be updated annually.
Compliance with the requirements of the bill will be a condition of hospital licensure.
