HB174 Alabama 2013 Session

Summary

Primary Sponsor

Jim McClendon

Republican

Co-Sponsor

Randy Davis

Session

Regular Session 2013

Title

Certificates of Need, health care facilities, transfer of ownership, includes legal entities, retro. effect, Secs. 22-21-260, 22-21-263, 22-21-270 am'd.

Summary

HB174 allows transferring a CON for an existing health care facility or HMO to another legal entity (like an LLC) through lease, sale, or other transaction without a new CON, and makes this retroactive to earlier law dating back to 1979.

What This Bill Does

It specifies that a CON transfer by lease to an LLC or other legal entity for an existing facility, HMO, or institutional health service does not require a new CON. The change is applied retroactively to prior interpretations and back to July 30, 1979. It also allows health care facilities and HMOs to be organized in LLCs and other legal entities under the CON framework. Additionally, transfers of stock interests, changes of name, or mergers involving a CON holder do not by themselves count as a CON transfer unless new health services or a new facility/HMO are involved, and SHPDA may require informational filings for transfers of control or ownership.

Who It Affects

• Health care facilities and health maintenance organizations that hold CONs, who could transfer ownership or control to another legal entity (e.g., an LLC) without needing a new CON.
• Investors, corporate owners, and other entities that might acquire or reorganize CON-held facilities, who would face fewer CON filing requirements unless the transaction adds new health services or a new facility or HMO.

Key Provisions

• Transfers of a CON by lease to an LLC or other legal entity for an existing health care facility, health maintenance organization, or institutional health service do not require a new CON.
• The act applies retroactively to prior amendments and to the period dating back to July 30, 1979.
• Health care facilities and health maintenance organizations may be organized in limited liability companies and other legal entities under the CON laws.
• Transfer of stock equity interests, change of name, or mergers involving a CON holder do not constitute a CON transfer unless the transaction also implements new institutional health services or creates a new facility or HMO.
• SHPDA may adopt rules requiring informational filings related to transfers of control or ownership interests.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health