AL SB352

Counties or municipalities may authorize incorporation of a new health care authority from within the service area of an existing health care authority under Alabama's Health Care Authorities Act of 1982

Boards of directors from both the existing and new authorities must negotiate a separation plan within 12 months covering transfer of facilities, fair division of assets and liabilities, revenue allocation, and distribution of contracts

Separation plans must address outstanding debts (indentures, securities, loans), revenue streams (taxes, grants, fees), and operational contracts (physician services, equipment, staffing, IT systems)

Binding arbitration under the Judge of Probate's jurisdiction resolves disputes if the two authorities cannot reach agreement, with arbitration awards becoming enforceable court orders

Effective date: October 1, 2026