(1) There is hereby created the university of Colorado hospital authority, which shall be a body corporate and a political subdivision of the state, which shall not be an agency of state government, and which shall not be subject to administrative direction or control by the regents or by any department, commission, board, bureau, or agency of the state.
(2) (a) The authority shall be governed by a board of directors who shall be appointed by the regents. The board of directors shall control the day-to-day operation of university hospital.
(b) The board consists of the following members:
(I) One director appointed from each congressional district; and
(II) Three directors appointed from the state at large.
(c) Of all the directors appointed to the board, one director must reside west of the continental divide, and not more than one-third of the directors shall be employees of the university of Colorado or of the authority.
(d) The appointment of the directors from the congressional districts is subject to the advice and consent of the senate. The term of office for appointed members is four years; except that the terms shall be staggered so that no more than a minimum majority of members' terms expire in the same year.
(e) Nothing in this subsection (2) shall be construed to limit the power of the regents to appoint persons as directors of the authority who are directors of the part 4 corporation. Each director appointed from a congressional district, whether appointed for an unexpired term or a full term, shall be deemed duly appointed and qualified until the appointment of the director is approved or rejected by the senate. If the general assembly is not in regular session at the time the appointment is made or is in regular session but does not consider the appointment before adjourning, the appointment shall be submitted to the senate for its approval or rejection during the next regular session of the general assembly following the appointment.
(3) Each member of the board of directors shall hold office for such member's term and until a successor is appointed and qualified. Any member shall be eligible for reappointment, but members shall not be eligible to serve more than two consecutive full terms. Members of the board shall receive no compensation for such services but shall be reimbursed for their necessary expenses while serving as a member of the board. Any vacancy shall be filled by the regents.
(4) Any member of the board of directors may be removed by the regents for malfeasance in office, failure to regularly attend meetings, or for any cause which renders said member incapable of or unfit to discharge the duties of director.
(5) No part of the revenues or assets of the authority shall inure to the benefit of, or be distributed to, its board of directors or officers or any other private person or entity; except that the authority may make reasonable payments for expenses incurred on its behalf relating to any of its lawful purposes and the authority shall be authorized and empowered to pay reasonable compensation for services rendered to or for its benefit relating to any of its lawful purposes.
(6) The authority and its corporate existence shall continue until terminated by law; except that no such law shall take effect so long as the authority has bonds, notes, or other obligations outstanding, unless adequate provision has been made for the payment thereof.
Source: L. 91: Entire part added, p. 558, � 2, effective June 1. L. 2008: (2) amended, p. 28, � 1, effective August 5. L. 2022: (2) amended, (SB 22-013), ch. 2, p. 33, � 42, effective February 25.
Cross references: For the provisions that designate the university of Colorado hospital authority as a special purpose authority for the purposes of section 20 of article X of the Colorado constitution, see � 24-77-102 (15).
23-21-504. Mission of the authority - obligation to provide uncompensated care - action of the board of directors. (1) The mission of the authority shall be the operation of university hospital as a state of the art teaching and research hospital providing comprehensive medical care, including tertiary care, and patient care of limited availability. The authority shall also provide space and facilities as necessary for the operation of the clinical programs of the health sciences schools at the health sciences center together with the university of Colorado psychiatric hospital.
(2) The board of directors shall award hospital privileges only to health-care providers who are faculty members of the health sciences schools of the university of Colorado.
(3) The board of directors shall not transfer the authority's assets or the hospital's assets to any person or entity except the regents.
(4) Upon the dissolution of the authority, all assets of the authority, after the satisfaction of creditors, shall revert to the regents.
(5) The business activities of the authority, including any joint ventures, shall be primarily in furtherance or in support of the mission of the hospital as the same is specified in subsection (1) of this section.
Source: L. 91: Entire part added, p. 560, � 2, effective June 1. L. 2006: (1) amended, p. 2006, � 67, effective July 1. L. 2024: (1) amended, (HB 24-1399), ch. 76, p. 255, � 13, effective July 1, 2025.
23-21-505. Authorization for transfer of hospital assets and liabilities to authority. (1) Following the creation of the authority and on the transfer date under this part 5, the regents shall have the authority to lease, convey, or otherwise transfer to the authority some or all hospital assets, except land which may be leased to the authority for a term not to exceed ninety-nine years. Any such lease, conveyance, or transfer shall be on such terms as may be approved by the regents and in consideration of the authority's agreement to assume the hospital liabilities and to continue to support the education, research, patient care, care to the medically indigent, and public service activities of the university of Colorado.
(2) Any transfer of hospital assets to the authority pursuant to this section shall be conditioned upon the existence of a binding agreement between the regents and the authority which provides that, effective on the transfer date under this part 5 and thereafter, the authority shall assume responsibility for and shall defend, indemnify, and hold harmless the regents and the state and the part 4 corporation and its officers and directors with respect to:
(a) All liabilities and duties of the regents pursuant to contracts, agreements, and leases for commodities, services, and supplies utilized by university hospital, including real property leases;
(b) All claims related to the employment relationship between employees of the authority and the authority on and after the transfer date under this part 5;
(c) All claims for breach of contract resulting from the authority's action or failure to act on and after the transfer date under this part 5;
(d) All claims related to the authority's errors and omissions including, but not limited to: Medical malpractice; directors and officers liability; workers' compensation; automobile liability; and premises, completed operations, and products liability; and
(e) All claims related to the part 4 corporation's errors and omissions prior to the transfer date under this part 5, including, but not limited to: Medical malpractice; directors and officers liability; workers' compensation; automobile liability; and premises, completed operations, and products liability.
(3) Any transfer of hospital assets to the authority shall be further conditioned upon the existence of a binding agreement between the regents and the authority by which the authority shall accept and agree to abide by the provisions set forth in section 23-21-504 concerning the mission of the authority, the provisions in sections 23-21-507 and 23-21-508, and the provisions of part 6 of this article concerning employees of university hospital, the part 4 corporation, and the authority.
Source: L. 91: Entire part added, p. 560, � 2, effective June 1.