HOUSE BILL No. 5386


     November 13, 1997, Introduced by Reps. Profit and Palamara and referred to the Committee on Local Government.


        A bill to amend 1913 PA 380, entitled

   "An act to regulate gifts of real and personal property to
   cities, villages, townships, and counties, and the use of the
   those gifts; and to validate all such gifts made before the
   enactment of this act,"

   (MCL 123.871 to 123.873) by adding section 4.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4.  (1) A CITY, VILLAGE, TOWNSHIP, OR COUNTY MAY TRANS-

 2    FER ANY GIFT RECEIVED PURSUANT TO SECTION 1 OR THE PROCEEDS OF

 3    ANY GIFT RECEIVED PURSUANT TO SECTION 1 TO A COMMUNITY

 4    FOUNDATION.  IF A GIFT RECEIVED BY A CITY, VILLAGE, TOWNSHIP, OR

 5    COUNTY PURSUANT TO SECTION 1 WAS SUBJECT TO CONDITIONS, LIMITA-

 6    TIONS, OR REQUIREMENTS, THE TRANSFER MUST BE TO A COMPONENT FUND

 7    WITHIN THE COMMUNITY FOUNDATION THAT INCORPORATES CONDITIONS,

 8    LIMITATIONS, OR REQUIREMENTS THAT ARE SUBSTANTIALLY SIMILAR TO

 9    THOSE THE GIFT WAS SUBJECT TO.  IF A GIFT WAS NOT SUBJECT TO



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 1    CONDITIONS, LIMITATIONS, OR REQUIREMENTS, THE TRANSFER MUST BE TO

 2    A COMPONENT FUND WITHIN THE COMMUNITY FOUNDATION THAT IMPOSES

 3    CONDITIONS, LIMITATIONS, OR REQUIREMENTS ON THE USE OF THE GIFT

 4    PROPERTY FOR 1 OR MORE PURPOSES PROVIDED IN SECTION 1.

 5         (2) A TRANSFER OF A GIFT IN ACCORDANCE WITH THIS SECTION

 6    THAT OCCURRED BEFORE THE EFFECTIVE DATE OF THE AMENDATORY ACT

 7    THAT ADDED THIS SECTION IS RATIFIED AND CONFIRMED AND THE TRANS-

 8    FER IS CONSIDERED VALID AS IF IT HAD BEEN MADE UNDER THIS

 9    SUBSECTION.

10         (3) AS USED IN THIS SECTION:

11         (A) "COMMUNITY FOUNDATION" MEANS THAT TERM AS DEFINED IN

12    SECTION 261 OF THE INCOME TAX ACT OF 1967, 1967 PA 281, MCL

13    206.261.

14         (B) "COMPONENT FUND" MEANS A COMPONENT PART OF A COMMUNITY

15    TRUST AS DESCRIBED IN 26 C.F.R. 1.170A-9.

16         (C) "GIFT" DOES NOT INCLUDE A GRANT FROM STATE OR FEDERAL

17    SOURCES.























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