Senate Bill 352 Alabama 2026 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

2026 Regular Session

Title

Health care authorities; to provide for creation of a new health care authority out of an existing health care authority and for a division of assets and obligations

Summary

SB352 would allow creating a new health care authority from an existing one, with a plan to divide assets, liabilities, and governance, and provide for arbitration if the parties can’t agree.

What This Bill Does

It lets counties or municipalities approve forming a new authority that serves part of an existing authority’s area. The existing and new authorities must negotiate a separation plan, including transferring facilities and assets and dividing liabilities and revenue. If they can’t agree, the bill provides binding arbitration under the judge of probate to settle the plan, with a final award enforceable by the courts.

Who It Affects

• Governing bodies of counties and municipalities inside the existing authority’s service area: they can authorize incorporation of a new authority and must cooperate in the separation.
• The existing health care authority and the new health care authority (including their boards, facilities, staff, and related health care providers): they must negotiate the separation plan, transfer assets and liabilities, allocate revenues, and may use arbitration if needed.

Key Provisions

• Adds Section 22-21-340.1 establishing a process to incorporate a new health care authority derived from an existing one, upon approval by a governing body.
• The new authority’s board must consist of members not currently serving on the existing authority’s board, with a majority appointed by the authorizing subdivision.
• Requires a certificate of incorporation for the new authority describing facilities and assets to be acquired; allows amending the existing authority’s certificate to remove the new service area; mandates notices to involved parties.
• Requires preparation of a separation plan addressing transfer of ownership of facilities/assets, changes in governance, assumption and distribution of liabilities and revenues, and handling of ongoing contracts and employment-related matters.
• Plan must be designed to avoid interruption of health care delivery and minimize disruption to employees and contractors; may involve outside experts and a mediator; the final plan is a binding contract enforceable by both authorities and affected facilities.
• Arbitration provisions allow disputes to be referred to arbitration by the judge of probate; an experienced arbitrator is appointed; the arbitrator’s award is reviewed and can be adopted, modified, or set aside by the judge of probate; the award is enforceable as part of the plan.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 10, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities, Boards, & Commissions