SB243 Alabama 2016 Session

Summary

Primary Sponsor

Greg J. Reed

Republican

Session

Regular Session 2016

Title

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

Summary

SB243 creates a University Authority Act that lets public universities with medical schools form public authorities to own and operate health care facilities and related ventures, with broad powers and tax exemptions.

What This Bill Does

It lets a sponsoring university create an Authority to own or operate health care facilities and to form university affiliates. The Authority can borrow money, issue bonds, enter joint ventures, and exercise other powers to support health care and education. It provides antitrust immunity for the Authority’s activities, allows liens on revenues and assets, and grants tax exemptions for the Authority and its affiliates. It requires annual audits and allows incorporation or reincorporation of existing public health entities, while clarifying that obligations are not debts of the state.

Who It Affects

• Sponsoring public universities with medical schools, which would form and govern the Authority, appoint its board, and manage related assets and financing.
• Health care facilities, university affiliates, other health providers, and patients in Alabama, who could see new facilities or collaborations under the Authority, with potential changes in competition and access to tax exemptions and financing.

Key Provisions

• Authorizes public universities operating health science programs to form an Authority, a new public corporation, and to create university affiliates.
• Enumerates powers including owning/operating health care facilities, forming affiliates, eminent domain, and incurring debt or issuing bonds; allows participation in joint ventures and various business arrangements related to health care.
• Grants immunity from antitrust concerns for the Authority’s activities; allows liens on revenues and assets; provides tax exemptions for the Authority and its affiliates and for income from debt; makes obligations not debts of the state.
• Establishes governance by a board of directors (majority appointed by the sponsoring university), with ex-officio directors possible; requires bylaws, regular meetings, and annual audits to the sponsoring university.
• Allows the Authority to pledge revenues, mortgage assets, invest funds, and enter into contracts or arrange financing; clarifies debt terms, maturity limits, and remedies for default.
• Permits reincorporation of certain existing public health corporations as Authorities; provides dissolution procedures with asset transfer back to the sponsoring university; specifies the act is cumulative and severable.

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