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Bill > SB0513
MI SB0513
MI SB0513Businesses: nonprofit corporations; ability of a hospital to convert from a county hospital to a nonprofit hospital; allow. Amends sec. 305a of 1987 PA 230 (MCL 331.1305a).
summary
Introduced
09/20/2023
09/20/2023
In Committee
10/19/2023
10/19/2023
Crossed Over
10/04/2023
10/04/2023
Passed
11/02/2023
11/02/2023
Dead
Signed/Enacted/Adopted
12/29/2023
12/29/2023
Introduced Session
102nd Legislature
Bill Summary
AN ACT to amend 1987 PA 230, entitled ?An act to authorize certain local governmental units to incorporate municipal health facilities corporations and subsidiary municipal health facilities corporations for establishing, modifying, operating, and managing health services and acquiring, constructing, adding to, repairing, remodeling, renovating, equipping, and re-equipping hospitals and other health care facilities and related purposes; to provide for the application of this act to existing municipal hospitals and for the transfer of ownership of hospital funds and personal property; to validate and ratify the existence, organization, actions, proceedings, and board membership of existing organizations acting as county public hospitals; to provide for the appointment of trustees; to grant certain powers of a public body corporate to health facilities corporations and subsidiary health facilities corporations; to empower certain local governmental units to encumber property for the benefit of, transfer or make property available to, issue bonds to construct facilities to be used by, appropriate funds for, and levy a tax for, municipal health facilities corporations and subsidiary municipal health facilities corporations; to empower certain local governmental units to guarantee obligations of municipal health facilities corporations and subsidiary municipal health facilities corporations and to permit certain local governmental units to pledge their full faith and credit to pay such guaranties; to provide for transfer of ownership or operation of health care facilities and health services to nonprofit health care organizations; to authorize municipal health facilities corporations and subsidiary municipal health facilities corporations to borrow money and issue notes for the purposes of meeting expenses of operation and to issue corporation obligations for the purpose of acquisition, construction, repair, remodeling, equipping or re-equipping of health care facilities and for the refinancing, refunding, or refunding in advance of indebtedness of the municipal health facilities corporations or the subsidiary municipal health facilities corporations or of indebtedness of certain local governmental units undertaken on their behalf; to authorize municipal health facilities corporations and subsidiary municipal health facilities corporations to enter into mortgages, deeds of trust, and other agreements for security which may include provisions for the appointment of receivers; to exempt obligations and property of municipal health facilities corporations and subsidiary municipal health facilities corporations from taxation; and to provide other rights, powers, and duties of municipal health facilities corporations and subsidiary municipal health facilities corporations,? by amending section 305a (MCL 331.1305a), as amended by 2017 PA 148.
AI Summary
This bill amends a 1987 law that authorizes certain local governments to create municipal health facilities corporations. The key provisions of this bill are:
1. It allows a hospital that is part of a county hospital corporation to restructure as a nonprofit corporation, as long as the county had a population between 5,000 and 7,500 as of the most recent census and the restructuring is completed by June 30, 2025.
2. The hospital's board of trustees must approve a restructuring plan that includes the terms and conditions of the restructuring as well as the proposed articles of incorporation and bylaws for the new nonprofit corporation.
3. The restructured nonprofit corporation is considered a continuation of the original county hospital corporation, with all its liabilities, debts, and obligations carrying over.
4. The restructuring requires prior approval from the county board of commissioners, city council, or village council, as applicable, and cannot impair any existing obligations or contracts of the original corporation.
Committee Categories
Health and Social Services
Sponsors (3)
Last Action
Assigned Pa 0319'23 With Immediate Effect (on 12/29/2023)
Official Document
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