HR592: HR592 House Study Committee on Noncompete Clauses in Physician Contracts; create

26 LC 46 1467S The House Committee on Health offers the following substitute to HR 592: A RESOLUTION Creating the House Study Committee on Noncompete Clauses in Physician Contracts; and1 for other purposes.2 WHEREAS, a noncompete clause in a physician contract, also know n as a restrictive3 covenant, restricts a doctor from practicing medicine within a specific geographic area for4 a certain period of time after leaving employment; and5 WHEREAS, critics argue noncompete clauses can limit patient access to care by restricting6 where a physician can practice, potentially disrupting continuity of care; and7 WHEREAS, the American Medical Association (AMA) generally oppos es noncompete8 clauses for physicians, believing they hinder career advancement and can negatively impact9 patient care; and10 WHEREAS, while AMA policy doesn't support a total ban on noncom pete provisions, an11 AMA policy was adopted in 2023 to support banning noncompete contracts for physicians12 in clinical practice who are employed by for-profit or nonprofit hospitals, hospital systems,13 or staffing company employers; and14 H. R. 592 (SUB) - 1 - 26 LC 46 1467S WHEREAS, Georgia law does not prohibit restrictive covenants in physician contracts,15 although Georgia courts will review the breadth of restrictions imposed, such as duration,16 territory, and scope; and17 WHEREAS, it would be beneficial to conduct a study to evaluate the effect on patient care18 and our state healthcare system by noncompete clauses in physician contracts and whether19 any changes to current law may be warranted.20 NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES:21 (1) Creation of House study committee. There is created the House Study Committee22 on Noncompete Clauses in Physician Contracts.23 (2) Members and officers. The committee shall be composed of five members of the24 House of Representatives to be appointed by the Speaker of the House of25 Representatives. The Speaker shall designate a member of the committee as chairperson26 of the committee.27 (3) Powers and duties. The committee shall undertake a study of the conditions, needs,28 issues, and problems mentioned above or related thereto and recommend any action or29 legislation which the committee deems necessary or appropriate.30 (4) Meetings. The chairperson shall call all meetings of the committee. The committee31 may conduct such meetings at such places and at such times as it may deem necessary or32 convenient to enable it to exercise fully and effectively its powers, perform its duties, and33 accomplish the objectives and purposes of this resolution. 34 (5) Allowances and funding. The legislative members of the committee shall receive35 the allowances provided for in Code Section 28-1-8 of the Offic ial Code of Georgia36 Annotated. The allowances authorized by this resolution shall not be received by any37 member of the committee for more than five days unless additional days are authorized. 38 H. R. 592 (SUB) - 2 - 26 LC 46 1467S Funds necessary to carry out the provisions of this resolution shall come from funds39 appropriated to the House of Representatives.40 (6) Report.41 (A) In the event the committee adopts any specific findings or recommendations that42 include suggestions for proposed legislation, the chairperson shall file a report of the43 same prior to the date of abolishment specified in this resolut ion, subject to44 subparagraph (C) of this paragraph.45 (B) In the event the committee adopts a report that does not i nclude suggestions for46 proposed legislation, the chairperson shall file the report subject to subparagraph (C)47 of this paragraph.48 (C) No report shall be filed unless the same has been approved prior to the date of49 abolishment specified in this resolution by majority vote of a quorum of the committee.50 A report so approved shall be signed by the chairperson of the committee and filed with51 the Clerk of the House of Representatives.52 (D) In the absence of an approved report, the chairperson may file with the Clerk of the53 House of Representatives a copy of the minutes of the meetings of the committee in lieu54 thereof.55 (7) Abolishment. The committee shall stand abolished on December 1, 2026.56 H. R. 592 (SUB) - 3 -