The bill introduces a new section, 11-58-5.2, to the Code of Alabama 1975, which authorizes medical clinic boards to readjust their debts in accordance with federal bankruptcy law under specific circumstances. This provision applies to medical clinic boards that lease property to licensed acute care hospitals or general health care providers that have voluntarily filed for Chapter 11 bankruptcy. The bill grants these boards the authority to take necessary actions related to the readjustment of municipal indebtedness, including the initiation of bankruptcy proceedings, with the State of Alabama's assent.

Additionally, the bill provides immunity to the members of the board of directors of the medical clinic boards when pursuing debt readjustment, protecting them from personal liability for claims related to their official duties, except in cases of intentional misconduct. It clarifies that obtaining insurance does not affect this immunity. The act is set to take effect immediately upon passage.