(a) The general assembly finds and declares as fact, with regard to ambulatory surgical treatment centers that terminate pregnancies, that:

(1) Over twenty-one thousand (21,000) abortions are performed annually in Tennessee;

(2) The majority of these abortions are performed in ambulatory surgical treatment centers;

(3) Gross negligence, unethical conduct and unprofessional administration of some centers have been documented by the department, including conditions such as:

(A) The existence of unsterile and unsanitary conditions;

(B) Fire and safety violations, electrical code violations and inadequate ventilation;

(C) Improper disposal of infectious waste;

(D) Allowing patients to leave too soon after the abortion procedure;

(E) Lack of records on patients and complications;

(F) Doctors practicing without a license or without local hospital privileges; and

(G) Surgical procedures performed without a nurse in attendance;

(4) Such centers are the only medical facilities in the state that regularly perform surgery on minors without the knowledge or consent of the parents, guardian or custodian; and yet the parents, guardian or custodian are not relieved of their financial liability and familial responsibilities;

(5) Such centers should be held to similarly applicable standards as other health care related facilities;

(6) The state has a legitimate interest in protecting its citizens from exploitation, the spread of infectious diseases, and ensuring that its citizens utilizing such centers are provided with quality health care as is required in all health care facilities licensed and regulated by the state; and

(7) Many such centers do not carry or maintain adequate health care liability insurance, if any, and the state has an interest in ensuring that those persons utilizing such centers have an adequate recourse to recover financially if a health care liability action arises from the use of such facilities.

(b)

(1) In addition to complying with the rules and regulations promulgated by the board for ambulatory surgical treatment centers, no ambulatory surgical treatment center that terminates pregnancies shall be granted a license, renewal of a license or be authorized to continue operation under this chapter, unless it complies in full with all of the following requirements:

(A) Maintenance of at least two million dollars ($2,000,000) of health care liability insurance in force, annually submitting to the department proof of such insurance coverage;

(B) Satisfaction of all applicable regulations and requirements of the board for compliance with state and local building codes, including electrical, plumbing, fire and other building and safety codes, except where the board determines that a waiver is appropriate;

(C) Is not in violation of department regulations that directly impact the health care of multiple patients with such scope and magnitude as to clearly show consistent and willful neglect of the regulations, fundamental flaws in the facility's operation, or knowing failure to comply with departmental regulations;

(D)

(i) The administrator of such facility shall be:

(a) A licensed physician, licensed practical nurse, registered nurse, or have a college degree from a four-year accredited institution and experience in a health-related field; and

(b) Of good moral character.

(ii) For purposes of subdivision (b)(1)(D)(i), “administrator” means the person who is responsible for the operation of the medical facility where pregnancies are terminated;

(E) No employee providing direct patient care, officer, director, or owner of the facility, or if a corporation, a stockholder who owns fifty-one percent (51%) or more of the stock in the corporation, shall have been convicted of or pleaded nolo contendere to a felony or any crime involving moral turpitude within five (5) years immediately preceding the date of application; and

(F) No employee providing direct patient care, officer, director, or owner of the facility, or if a corporation, a stockholder who owns fifty-one percent (51%) or more of the stock in the corporation, shall have been convicted of or pleaded nolo contendere to any violation of this chapter.

(2) The board shall suspend or revoke a license of such center if a violation of this subsection (b) occurs following the issuance or renewal of a license.

(3) In addition to any other lawful disciplinary action under this part, the board may assess a civil penalty not exceeding two thousand dollars ($2,000) for each violation of this subsection (b).