SB222 Alabama 2025 Session

Summary

Primary Sponsor

Kirk HatcherSenator

Democrat

Session

2025 Regular Session

Title

Medical clinic boards; certain boards authorized to readjust debts under federal bankruptcy laws

Summary

SB222 lets certain medical clinic boards use federal bankruptcy processes to readjust their debts, with new immunity protections for board members.

What This Bill Does

The bill creates a new section that lets eligible medical clinic boards readjust their debts under federal bankruptcy law. It applies to boards that lease property to a licensed acute care hospital or general health care provider that has voluntarily filed for Chapter 11, and it authorizes them to take steps under federal bankruptcy procedures to reorganize their debts. Board members receive immunity from lawsuits or liability for acts within the scope of their duties, with an exception for intentional misconduct, and this immunity remains even if the board purchases insurance. The act takes effect immediately.

Who It Affects

• Medical clinic boards that lease property to a licensed acute care hospital or general health care provider that files for Chapter 11 bankruptcy, enabling them to pursue debt readjustment under federal law.
• Board members and directors of those medical clinic boards, who gain immunity from suit and liability for acts within the scope of their duties (with exceptions for intentional misconduct).
• Hospitals or health care providers that voluntarily file for Chapter 11 bankruptcy and that are leasing from these boards, as they interact with the boards' new readjustment powers.

Key Provisions

• Adds Section 11-58-5.2 to authorize readjustment of debts under federal bankruptcy law for eligible medical clinic boards.
• Requires boards to lease property to a licensed acute care hospital or general health care provider that files for Chapter 11 to trigger eligibility and actions permitted by federal law.
• Grants boards the power to commence bankruptcy-related actions and other steps for debt readjustment, with Alabama giving assent to federal procedures.
• Provides immunity from suit and liability for board members for acts within the scope of employment, with an exemption for intentional, willful, or wanton misconduct, and states that insurance does not limit this immunity.
• Effective immediately.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health