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Colorado Association of Public Employees v. Board of Regents of University of Colorado

12/24/1990

e corporation has the general powers conferred upon a nonprofit corporation pursuant to C.R.S. § 7-22-101, such as the right to sue and be sued, to purchase or lease real or personal property, to sell, convey, or pledge its property and assets, to hold interests in other corporations, partnerships or joint ventures, to make contracts, incur liabilities, borrow money and severally control its own affairs. For example, H.B. 1143 amends C.R.S. § 23-22-104, C.R.S., relating to the psychiatric hospital, to provide expressly:


The board of regents of the university of Colorado shall have full control and supervision of all the property and grounds and buildings of the hospital and shall have the entire government and management of the same exclusive of any property transferred to a private corporation pursuant to part 4 of article 21 of this title.


(emphasis added).


25. The Court finds that none of the restrictions upon the form of the nonprofit corporation and none of the conditions imposed upon the transfer of property to the corporation, deprive the corporation of its private nonprofit status.


26. Plaintiffs cite Queen v. West Virginia Univ. Hosps. Inc., 365 S.E.2d 375 (D.Va. 1987) in support of their contention that the reorganized Hospital is the state. On the contrary, Queen found that the reorganized West Virginia University Hospital was not a political subdivision of the state, a state agency, or a public corporation. See id. at 383, and id. at 383 n.5.


27. Queen did find that the reorganized West Virginia Hospital was a "public body" as defined in West Virginia's Freedom of Information Act, and that the reorganized West Virginia University Hospital was a "public actor" for due process purposes under the 14th Amendment of the United Constitution. However, the instant case challenges only the facial constitutionality of H.B. 1143, and does not raise any issue with respect to either the records of the reorganized Hospital or any alleged violation of due process. The issue of whether the reorganized University Hospital is a "state actor" for due process purposes, is not before this Court. The Court rejects Plaintiffs' contention, however, that because the reorganized Hospital might be a "state actor" for Fourteenth Amendment due process purposes, it must be deemed the "state" for all purposes, as being illogical and contrary to case law. See Queen.


28. The Court further finds that H.B. 1143 does not violate Article XV, Section 2 of the Colorado Constitution, prohibiting the creation of private corporations by special legislation. Article XV, Section 2 provides:


No charter of incorporation shall be granted, extended, changed or amended by special law, except for such municipal, charitable, educational, penal or reformatory corporations as are or may be under the control of the state; but the general assembly shall provide by general laws for the organization of corporations hereafter to be created.


West Virginia's constitution contains a mirror image of Colo. Const. art. XV, § 2:


The legislature shall provide for the organization of all corporations hereafter to be created . . . but no corporation shall be created by special law.


W. Va. Const. art. XI, § 1. Interpreting West Virginia's constitutional provision in the face of similar allegations, the West Virginia Supreme Court of Appeals states:


We think that a detailed analysis of the cited constitutional sections would not prove particularly helpful to us, since, from the records of the constitut

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