2023 Senate Bill 513 / Public Act 319

Businesses: nonprofit corporations; ability of a hospital to convert from a county hospital to a nonprofit hospital; allow.

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.

House Fiscal Agency Analysis

Senate Bill 513 would amend the Municipal Health Facilities Corporations Act (MHFCA) to revise provisions that allow a municipal health facilities corporation established under the act to restructure as a nonprofit corporation if it meets certain criteria. Among other requirements, the restructuring would have to be approved by the corporation’s board of trustees and the governing body of the applicable local unit of government.

Introduced in the Senate

Sept. 20, 2023

Introduced by Sen. Ed McBroom (R-38) and two co-sponsors

Co-sponsored by Sens. Veronica Klinefelt (D-11) and John Damoose (R-37)

Referred to the Committee on Health Policy

Sept. 27, 2023

Reported without amendment

Sept. 28, 2023

Referred to the Committee of the Whole

Oct. 3, 2023

Reported without amendment

Oct. 4, 2023

Passed in the Senate 38 to 0 (details)

Received in the House

Oct. 4, 2023

Referred to the Committee on Health Policy

Oct. 19, 2023

Reported without amendment

Nov. 1, 2023

Passed in the House 104 to 6 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Nov. 2, 2023

Motion to give immediate effect by Sen. Sam Singh (D-28)

The motion prevailed by voice vote

Signed by Gov. Gretchen Whitmer

Dec. 14, 2023