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Bill > SB0450
MI SB0450
MI SB0450Businesses; nonprofit corporations; authorization to restructure municipal health facilities corporations; revise requirements. Amends sec. 305a of 1987 PA 230 (MCL 331.1305a).
summary
Introduced
06/14/2017
06/14/2017
In Committee
10/04/2017
10/04/2017
Crossed Over
07/12/2017
07/12/2017
Passed
10/17/2017
10/17/2017
Dead
Signed/Enacted/Adopted
11/07/2017
11/07/2017
Introduced Session
99th Legislature
Bill Summary
Public Acts of 2017 Approved by the Governor November 2, 2017 Filed with the Secretary of State November 2, 2017 EFFECTIVE DATE: November 2, 2017 STATE OF MICHIGAN 99TH LEGISLATURE REGULAR SESSION OF 2017 Introduced by Senator Shirkey ENROLLED SENATE BILL No. 450 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 2016 PA 45.
AI Summary
This bill amends Section 305a of the 1987 Public Act 230, which authorizes certain local governmental units to incorporate municipal health facilities corporations and subsidiary municipal health facilities corporations. The key provisions of this bill are:
1. It allows the board of trustees or subsidiary board of a corporation or subsidiary corporation located in a county with a population between 45,000 and 60,000 to restructure the corporation as a nonprofit corporation, subject to certain conditions and requirements.
2. The restructuring plan must include the terms and conditions of the proposed restructuring, as well as the proposed articles of incorporation and bylaws that will govern the restructured corporation.
3. The restructured corporation is considered a continuation of the original corporation, with all its liabilities, rights, and obligations transferred over without impairment.
4. The restructured corporation is subject to the Nonprofit Corporation Act and the provisions of the original Act, except as otherwise provided.
5. The restructuring requires prior approval from the county board of commissioners, city council, or village council, as applicable, and must not impair any outstanding obligations of the corporation.
Committee Categories
Business and Industry, Health and Social Services
Sponsors (1)
Last Action
Assigned Pa 0148'17 With Immediate Effect (on 11/07/2017)
Official Document
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