HB582 Alabama 2015 Session

Summary

Primary Sponsor

April WeaverSenator

Republican

Session

Regular Session 2015

Title

Universities that operate medical school, authorized to incorporate authorities to own and operate health care facilities, University Authority Act

Summary

HB582 would let public universities with medical schools form authorities to own or operate health care facilities or to collaborate with other providers.

What This Bill Does

The bill authorizes sponsoring universities to create public authorities (public corporations) to own or operate health care facilities or to collaborate with other health care providers. It establishes how these authorities are formed, governed by a board of directors, and how they can be dissolved or reincorporated. Authorities would have broad powers, including borrowing money, owning and operating facilities, entering contracts, creating subsidiaries, and joining joint ventures or collaborations with other providers (including some partnerships with for-profit entities, though those may not qualify as university affiliates). It also grants tax exemptions, immunity from certain laws (antitrust to the extent allowed, sovereign immunity), and exemptions from some ethics, meeting, and bidding rules to support their public health mission.

Who It Affects

• Sponsoring public universities in Alabama with medical schools, who could form and govern authorities to own or operate health care facilities and to collaborate with other health care providers.
• Alabama residents and patients who would receive health care services from facilities operated by these authorities, potentially benefiting from expanded facilities, collaborations, and charity care.

Key Provisions

• Authorizes a sponsoring public university with a medical school to organize and establish public authorities to own and operate health care facilities or collaborate with other providers.
• Creates governance rules, including a board of directors, articles of incorporation, and procedures for incorporation, amendment, reincorporation, and dissolution of authorities.
• Grants authorities broad powers similar to nonprofit corporations, plus additional powers such as eminent domain, financing (indebtedness and bonds), loans, investment, and the creation of subsidiaries or joint ventures; allows collaboration with various types of health care providers with some affiliate restrictions.
• Allows transfer or conveyance of health care facilities, assets, and related funds from government entities or the state to authorities; designates certain authorities as hospital corporations and enables related funding through public hospital taxes.
• Provides tax exemptions for indebtedness and property, allows authority-related investments, and shields authorities from certain state laws (ethics, public meetings, bidding) to support their operations.
• Immunizes authorities and university affiliates from antitrust liability to the fullest extent permitted by law, and treats them as state agencies or instrumentalities with related sovereign immunity and damage limitations.
• Requires annual audits by certified public accountants, with audits submitted to the sponsoring university; outlines dissolution procedures and asset transfer back to the sponsor upon dissolution.
• Allows reincorporation of existing public health corporations as authorities and sets out steps for reincorporation, including asset and license transfers and creditor protections.

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

Subjects

Colleges and Universities