AGO 1996-090.

• Case Date: January 09, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-090. 1996-090January 9, 1996Honorable Robert S. Presto Attorney at Law Escambia County Commission P.O. Box 848 Brewton, AL 36427 Health Care Authorities - Ad Valorem Taxes - Exemptions - Leases The Escambia County Health Care Authority retains the tax-exempt status conferred upon it by and within _ 22-21-333, Code of Alabama 1975. Approval of the governing body of Escambia County was not necessary prior to entering into the LEASE AND ASSET TRANSFER AGREEMENT with Escambia County Alabama Community Hospitals, Inc. The Tax Collector of Escambia County, Alabama, should continue to pay and distribute county taxes to the Authority, in accordance with the laws and regulations now in effect.Dear Mr. Presto: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION I In view of the formation of Escambia County Alabama Community Hospitals, Inc., and the execution between that corporation and the Escambia County Health Care Authority on that certain LEASE AND ASSET TRANSFER AGREEMENT, dated April 27, 1995, does the Escambia County Health Care Authority retain the tax- exempt status conferred upon it by and within _ 22-21-333, Code of Alabama 1975? FACTS, LAW AND ANALYSIS The Escambia County Health Care Authority was organized with the consent of Escambia County, Alabama, pursuant to the provisions of Article 11, _ 22-21-310, et seq., Code of Alabama 1975. The Alabama legislature has made any hospital organized pursuant to this article a local government entity, and labeled such a hospital a "political subdivision of the state." Todorov v. DCH Healthcare Authority, 921 F.2d 1438 (11th Cir. 1991). Section 22-21-318(a)(7), Code of Alabama 1975, provides as follows: "To receive, acquire, take and hold (whether by purchase, gift, transfer, foreclosure, lease, devise, option or otherwise) real and personal property of every description, or any interest therein, and to manage, improve and dispose of the same by any form of legal conveyance or transfer; provided however, that the authority shall not, without the prior approval of the governing body of each authorizing subdivision, have the power to dispose of (i) substantially all its assets, or (ii) any health care facilities the disposition of which would materially and significantly reduce...