HOUSE BILL No. 5515


     March 16, 2000, Introduced by Rep. Sheltrown and referred to the Committee on Local Government and Urban Policy.


        A bill to amend 1987 PA 230, entitled

   "Municipal health facilities corporations act,"

   by amending section 304 (MCL 331.1304), as amended by 1988 PA

   502.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 304.  Without limiting the powers described in  section

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      301 and elsewhere in  this act, each board of trustees and sub-

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      sidiary board, in furtherance of its purposes and consistent with

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      its articles of incorporation, but subject to applicable licens-

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      ing and other regulatory requirements, may do  any or all  1 OR

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      MORE of the following:

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           (a) Establish sites for its health care facilities inside or

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      outside the local governmental unit and relocate its health care

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      facilities in the same municipality or elsewhere.




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           (b) Acquire by purchase, gift, devise, lease, sublease,

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      installment purchase agreement, land contract, option, or by any

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      other means, hold, and own in its own name health care facilities

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      and interests  therein  IN HEALTH CARE FACILITIES and other real

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      and personal property, including, but not limited to, interests

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      in condominiums, and property subject to mortgages, security

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      interests, or other liens, necessary or convenient to fulfill its

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      purposes; and, for the purpose of condemnation, proceed under the

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      uniform condemnation procedures act,  Act No. 87 of the Public

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      Acts of 1980, being sections 213.51 to 213.77 of the Michigan

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      Compiled Laws  1980 PA 87, MCL 213.51 TO 213.75, or other appli-

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      cable statute.

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           (c) Construct, add to, repair, remodel, renovate, equip, and

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      re-equip health care facilities and establish rules, regulations,

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      or policies conforming with applicable law with respect to

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      requirements for competitive bidding, advertising, advertising

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      for bids, and  letting  AWARDING contracts.  However, in all

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      cases  ,  the right to reject any and all bids  shall be 
   IS

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      reserved.

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           (d) Dispose of its real and personal property by sale,

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      lease, sublease, installment sale agreement, land contract, or

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      other lawful means.

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           (e) Purchase, contract for, or acquire administrative, man-

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      agement, and other services necessary or convenient to the ful-

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      fillment of its purposes from the local governmental unit and

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      from other sources and sell these services to the local

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      governmental unit and to other public and private persons.



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           (f) Apply for, negotiate, receive, and accept gifts or

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      grants of money, property, services, or other aid offered or made

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      available to it, and comply, subject to the provisions of this

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      act and other applicable law, with the terms of  such  THOSE

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      gifts, grants, or other aid.

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           (g) Provide insurance  ,  OR reinsurance, obtain

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      indemnification, or establish programs or trusts for

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      self-insurance against loss in connection with its assets or any

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      liability in connection with its activities.  The insurance 

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      INSURANCE, reinsurance, indemnification, or self-insurance shall

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      be in  such forms and amounts,  THE FORM AND AMOUNT and from

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       such sources, as  THE SOURCE THAT it considers appropriate.

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           (h) Invest ITS funds not immediately required for its pur-

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      poses, funds accumulated to provide retirement or pension bene-

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      fits, endowment funds created for charitable or educational pur-

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      poses, and other funds in any manner  in which a local governmen-

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      tal unit may then lawfully invest such property  and loan its

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      funds in furtherance of its purposes.

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           (i) Borrow money from the local governmental unit in accord-

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      ance with section 305(e) and enter into agreements for the repay-

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      ment of the loans.

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           (j) Grant mortgages, security interests, and other liens in

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      its real and personal property, sell and lease back its real and

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      personal property, and pledge its REAL AND PERSONAL property or

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      ITS revenues in furtherance of its purposes.

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           (k) Guarantee, in whole or in part, bonds, notes, and other

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      obligations of the local governmental unit undertaken for its



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      benefit.  and grant  GRANT mortgages, security interests, and

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      other liens in its real and personal property and pledge its REAL

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      AND PERSONAL property or revenues to secure obligations of the

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      local governmental unit undertaken for its benefit, with or with-

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      out guaranteeing  such  THOSE obligations.

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           (l) Transfer real or personal property to subsidiary corpo-

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      rations or parent corporations in furtherance of its purposes or

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      the purposes of the subsidiary or parent corporations, with or

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      without monetary consideration, and transfer money and other real

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      and personal property not required to carry out its purposes to

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      the local governmental unit.

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           (m) Guarantee, in whole or in part, corporation obligations,

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      bonds, AND notes  ,  and other obligations of a subsidiary corpo-

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      ration or a parent corporation.

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           (n) Grant mortgages, security interests, or other liens in

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      its real and personal property and pledge its REAL AND PERSONAL

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      property or revenues to secure corporation obligations, bonds,

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      notes, or other obligations of 1 or more of its subsidiary corpo-

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      rations or its parent corporation, with or without guaranteeing

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       such  THOSE obligations.

















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