SB429 Alabama 2015 Session

Summary

Primary Sponsor

Greg J. Reed

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

SB429 creates the University Authority Act, allowing public universities with medical schools to form public authorities to own, operate, or collaborate on health care facilities.

What This Bill Does

It lets a sponsoring public university create an 'authority' to own and operate health care facilities or partner with other providers. It sets up how these authorities are incorporated, governed by a board, and how they can form university affiliates and engage in partnerships. It also grants broad powers to borrow money, own assets, and pursue collaborations, along with tax exemptions and required annual audits, plus dissolution and reincorporation procedures as needed.

Who It Affects

• Sponsoring public universities with medical schools, which would gain authority to form and control Health Care Authorities, appoint directors, manage assets, and dissolve or reincorporate them.
• Health care facilities and providers that may be owned, financed, or operated by these authorities or their affiliates, with potential for debt, revenue pledges, eminent domain, tax exemptions, and collaborative ventures (though for-profit partners cannot be university affiliates).

Key Provisions

• Public universities that operate medical schools may form authorities (public corporations) to own or operate health care facilities or collaborate with other providers, and may create university affiliates.
• Authorities have broad powers (borrowing, pledging revenues, eminent domain, forming subsidiaries/affiliates, joint ventures, tax exemptions, audits) and are overseen by a board appointed by the sponsoring university, with dissolution and reincorporation processes included.

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