HOUSE BILL No. 5389


     December 2, 1997, Introduced by Rep. Profit and referred to the Committee on Local Government.


        A bill to amend 1921 PA 136, entitled

   "An act to authorize and facilitate the acquisition and disposal
   of public library property by public corporations empowered to
   maintain public libraries,"

   by amending section 1 (MCL 397.381).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1.  (1)  Any  SUBJECT TO SUBSECTION (2), A board of

 2    education, library commission, or other public corporation empow-

 3    ered to maintain a public library may receive and accept gifts

 4    and donations of REAL OR PERSONAL property,  real or personal, 

 5    for the  purpose of such  library, and shall hold, use, and apply

 6    the property  so  received for the purposes, IN ACCORDANCE WITH

 7    THE PROVISIONS, AND SUBJECT TO THE CONDITIONS AND LIMITATIONS, IF

 8    ANY, set forth in the instrument of gift.  and in accordance with

 9     the provisions of such instrument and subject to the conditions

10     and limitations, if any, therein expressed. 


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 1         (2) A BOARD OF EDUCATION, LIBRARY COMMISSION, OR OTHER

 2    PUBLIC CORPORATION EMPOWERED TO MAINTAIN A PUBLIC LIBRARY MAY

 3    TRANSFER A GIFT, OTHER THAN A FEDERAL OR STATE GRANT, DESCRIBED

 4    IN SUBSECTION (1), OR THE PROCEEDS FROM THAT GIFT TO A COMMUNITY

 5    FOUNDATION.  IF A GIFT RECEIVED BY A BOARD OF EDUCATION, LIBRARY

 6    COMMISSION, OR OTHER PUBLIC CORPORATION EMPOWERED TO MAINTAIN A

 7    PUBLIC LIBRARY WAS SUBJECT TO CERTAIN CONDITIONS, LIMITATIONS, OR

 8    REQUIREMENTS, THE TRANSFER MUST BE TO A COMPONENT FUND WITHIN THE

 9    COMMUNITY FOUNDATION THAT INCORPORATES CONDITIONS, LIMITATIONS,

10    OR REQUIREMENTS THAT ARE SUBSTANTIALLY SIMILAR.  IF A GIFT WAS

11    NOT SUBJECT TO CONDITIONS, LIMITATIONS, OR REQUIREMENTS, THE

12    TRANSFER MUST BE TO A COMPONENT FUND OF THE COMMUNITY FOUNDATION

13    THAT IMPOSES CONDITIONS, LIMITATIONS, OR REQUIREMENTS ON THE USE

14    OF THE PROPERTY FOR THE PURPOSE OF MAINTAINING THE PUBLIC

15    LIBRARY.

16         (3) A TRANSFER OF A GIFT DESCRIBED IN SUBSECTION (1) BY A

17    BOARD OF EDUCATION, LIBRARY COMMISSION, OR OTHER PUBLIC CORPORA-

18    TION EMPOWERED TO MAINTAIN A PUBLIC LIBRARY TO A COMPONENT FUND

19    WITHIN A COMMUNITY FOUNDATION THAT SATISFIES THE CONDITIONS UNDER

20    SUBSECTION (2), BEFORE THE EFFECTIVE DATE OF THE AMENDATORY ACT

21    THAT AMENDED THIS SECTION, IS VALID.

22         (4) AS USED IN THIS SECTION:

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

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

25    206.261.

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

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



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