HB-5885, As Passed Senate, June 12, 2018
April 25, 2018, Introduced by Reps. Kosowski, Noble and Hammoud and referred to the Committee on Oversight.
A bill to amend 1987 PA 230, entitled
"Municipal health facilities corporations act,"
by amending section 305 (MCL 331.1305), as amended by 2002 PA 484.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 305. Subject to applicable licensing and other regulatory
requirements, a local governmental unit may do any or all of the
following:
(a) Acquire health care facilities by purchase, gift, devise,
lease, sublease, installment purchase agreement, land contract,
option, or other means; construct, add to, repair, remodel,
renovate,
equip, and re-equip reequip
health care facilities for
use, in whole or in part, by a corporation or a subsidiary
corporation; borrow money and issue bonds in accordance with 1923
PA 118, MCL 141.61 to 141.66; enter into contracts of lease under
1948 (1st Ex Sess) PA 31, MCL 123.951 to 123.965; or enter into
obligations under other applicable laws to acquire health care
facilities. However, whether or not otherwise permitted by law, a
local governmental unit shall not borrow funds, lease property, or
acquire property pursuant to a lease purchase agreement with a
local hospital authority incorporated under the hospital finance
authority act, 1969 PA 38, MCL 331.31 to 331.84, nor shall a local
governmental unit otherwise receive the proceeds of bonds issued by
a local hospital authority, except as consideration for property
transferred by the local governmental unit to a third party. Any
bonding proposal requiring approval of the electors of a local
governmental unit may be presented at the same election described
in sections 201 and 202 or sections 251 and 252.
(b) Transfer or make available health care facilities and
other real and personal property to a corporation or a subsidiary
corporation by sale, lease, sublease, installment sale agreement,
contract, or other means on terms, with or without monetary
consideration, approved by the county board of commissioners, city
council, or village council. A health care facility owned and
operated
by a corporation or a subsidiary corporation shall is not
be
considered to be owned or operated
by the local governmental
unit.
(c) Grant mortgages, security interests, and other liens in,
pledge or sell and lease back its interests in health care
facilities and other real and personal property to secure bonds,
notes, or other obligations of a corporation or subsidiary
corporation, upon terms approved by the county board of
commissioners, city council, or village council. The amount of the
bonds,
notes, or other obligations shall must not be included in
computing the net bonded indebtedness of the local governmental
unit for the purposes of debt limitations imposed by any
constitutional, statutory, or charter provision, unless the local
governmental unit pledges full faith and credit to the payment of
the bond, note, or other obligation.
(d) Guarantee any corporation obligation, bond, note, or other
obligation of a corporation or a subsidiary corporation on terms
approved by the county board of commissioners, city council, or
village council, and pledge specified revenues or assets of the
local governmental unit or the full faith and credit of the local
governmental unit to the payment of the guaranty. The resolution of
the county board of commissioners, city council, or village council
approving any guaranty which pledges the full faith and credit of
the
local governmental unit shall must
contain a proviso that the
resolution
shall must not become effective and binding upon the
local governmental unit until it has been approved by a majority of
the electors voting at a special or regular local governmental unit
election.
The election proceedings under this subdivision shall
must be conducted in accordance with the Michigan election law,
1954 PA 116, MCL 168.1 to 168.992. The amount of any bonds, notes,
or other obligations secured by a guaranty that pledges the full
faith
and credit of the local governmental unit shall must be
included in computing the net bonded indebtedness of the local
governmental unit for the purposes of debt limitations imposed by
any constitutional, statutory, or charter provision.
(e) Loan to a corporation or a subsidiary corporation money
from the general fund of the local governmental unit or from funds
not raised by taxation available to the local governmental unit for
the acquisition of or improvements to health care facilities,
operation of health services or for any other purpose of the
corporation or subsidiary corporation, and enter into agreements
with the borrowing corporation or subsidiary corporation for the
repayment of those loans over a term not to exceed 30 years, with
or without security.
(f) Appropriate money and transfer the money to 1 or more
corporations or subsidiary corporations established by the local
governmental unit for the acquisition of or improvements to health
care facilities, operation of health services, or any other purpose
of the corporations or subsidiary corporations. The total sums
appropriated for those purposes each year from the general fund of
the
local governmental unit shall must
be in addition to any taxes
and appropriations to satisfy local governmental unit indebtedness
under bonds, notes, or guaranties described in subdivisions (a) and
(d). Money may be appropriated from funds not raised by taxation
and available to the local governmental unit for those purposes
without limitation.
(g) Notwithstanding subdivision (f), a county with a county
public hospital organized and operated under 1945 PA 109, MCL
331.201
to 331.213, or 1925 PA 177, MCL 332.151 to 332.164, on
February 27, 1988 may assess taxes not to exceed in any 1 year 1
mill on each dollar of assessed valuation of the county for the
purpose of acquisition, construction, and operation of any health
care facilities without a vote of county electors, and may
appropriate money from its general fund for the acquisition,
construction, and operation of any health care facilities without
limitation.
(h) Enter into agreements or arrangements for a corporation or
a subsidiary corporation to provide health services to local
governmental unit employees, dependents of local governmental unit
employees, indigents, or others, providing for payment for health
services in any of the ways described in section 303(g).
(i) Sell, contract, or make available to corporations or
subsidiary corporations established by the local governmental unit,
administrative, management, and other services necessary or
convenient to fulfill the purposes of the corporation or subsidiary
corporation, and purchase the services from a corporation or
subsidiary corporation that may be required for any local
governmental unit purpose.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5884 (request no.
05296'18) of the 99th Legislature is enacted into law.