PERSON; MODIFY DEFINITION                                                                       S.B. 926:

                                                                                 SUMMARY OF INTRODUCED BILL

                                                                                                         IN COMMITTEE

Senate Bill 926 (as introduced 3-1-22)

Sponsor:  Senator Wayne A. Schmidt

Committee:  Economic and Small Business Development

Date Completed:  4-19-22

CONTENT

The bill would amend the Michigan Limited Liability Company Act to modify the definition of "person" to include a nonprofit corporation.

Generally, the Act governs the organization and regulation of limited liability companies. Among other things, the Act allows a person to organize a limited liability company by filing articles of organization with the Department of Licensing and Regulatory Affairs (LARA). The Act defines "person" as an individual, partnership, limited liability company, trust, custodian, estate, association, corporation, governmental entity, or any other legal entity. The bill would include a nonprofit corporation within the definition.

MCL 450.4102                                                     Legislative Analyst:  Tyler P. VanHuyse

FISCAL IMPACT

The bill likely would not have a significant fiscal impact on State or local units of government. Existing appropriations, as well as revenue obtained from fees collected because of the change in the definition of "person" in the bill, likely would adequately fund any additional work performed by LARA.

                                                                           Fiscal Analyst:  Elizabeth Raczkowski

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.