HOUSE BILL No. 5992

 

December 2, 2014, Introduced by Rep. Haines and referred to the Committee on Local Government.

 

     A bill to amend 1987 PA 230, entitled

 

"Municipal health facilities corporations act,"

 

by amending sections 206, 207, 255, and 256 (MCL 331.1206,

 

331.1207, 331.1255, and 331.1256), section 206 as amended by 1994

 

PA 398, sections 207 and 256 as amended by 2010 PA 331, and section

 

255 as added by 1988 PA 502.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 206. (1) Except as provided in section 203, the

 

incorporation of a corporation by a county shall be is accomplished

 

by approval of articles of incorporation by resolution of the

 

county board of commissioners. The incorporation of a subsidiary

 

corporation by a county shall be is accomplished by approval of

 

articles of incorporation by resolution of the county board of

 

commissioners.


 

     (2) The articles of incorporation of a corporation or

 

subsidiary corporation established by a county shall set forth the

 

include all of the following:

 

     (a) The name of the corporation or subsidiary corporation. ;

 

the

 

     (b) The purposes for which it the corporation or subsidiary

 

corporation is created, which may include all of the purposes for

 

which a corporation or subsidiary corporation may be organized

 

under this act. ; the

 

     (c) The number, terms, and manner of selection of the officers

 

of its the board of trustees of the corporation or subsidiary board

 

of the subsidiary corporation, as applicable, which shall include a

 

chairperson and a secretary, and a general description of their

 

respective powers and duties. ; the

 

     (d) The date upon on which the incorporation becomes of the

 

corporation or subsidiary corporation is effective. ; and the

 

     (e) The name of the newspaper in which or link to the website

 

where the county clerk is publishing or posting the articles of

 

incorporation shall be published. under section 207(1).

 

     (3) The articles of incorporation of a subsidiary corporation

 

shall also contain the name of the corporation acting as its parent

 

, and shall specify the size of the subsidiary board in accordance

 

with section 209(1).

 

     (4) The articles of incorporation of a corporation established

 

by a county may specify transactions otherwise within the powers of

 

its board of trustees which shall require approval by resolution of

 

the county board of commissioners, and may also contain other


 

matters provisions considered expedient to be included for

 

inclusion in the articles of incorporation.

 

     (5) The articles of incorporation of a subsidiary corporation

 

incorporated by a county may specify transactions otherwise within

 

the powers of its subsidiary board which shall require approval by

 

resolution of the board of trustees of its designated parent

 

corporation, and may also contain other matters provisions

 

considered expedient to be included for inclusion in the articles

 

of incorporation.

 

     Sec. 207. (1) The articles of incorporation of a corporation

 

incorporated by a county shall be executed in duplicate by the

 

chairperson of the county board of commissioners or other

 

commissioner designated by the county board of commissioners. The

 

articles of incorporation of a subsidiary corporation of a

 

corporation incorporated by a county shall be executed in duplicate

 

by the chairperson of the board of trustees of the parent

 

corporation, or other trustee designated by the board of trustees.

 

The articles of incorporation shall then be delivered to the county

 

clerk who shall file 1 copy in his or her office and the other with

 

the secretary of the corporation or subsidiary corporation when a

 

secretary is selected. The county clerk shall cause provide public

 

notice of the incorporation of the corporation or subsidiary

 

corporation by meeting 1 of the following:

 

     (a) Before January 1, 2015, publishing a copy of the articles

 

of incorporation to be published once in a newspaper designated in

 

the articles of incorporation and circulating within the county,

 

accompanied by a statement that the right exists to question the


 

validity of the incorporation in court as provided in this section.

 

     (b) Beginning January 1, 2015, providing public notice of the

 

incorporation by publishing or posting the articles of

 

incorporation and the statement described in subdivision (a) in the

 

same manner that tier B public notice with a link is provided under

 

the local government public notice act.

 

     (2) The county clerk shall file 1 printed copy of articles of

 

incorporation delivered to him or her under subsection (1) with the

 

secretary of state and 1 printed copy in his or her office. The

 

county clerk shall attach to each of the printed copies his or her

 

certificate setting forth that the copy is a true and complete copy

 

of the original articles of incorporation on file in his or her

 

office.

 

     (3) The incorporation of a corporation or a subsidiary

 

corporation described in this section is effective at the time

 

provided in the articles of incorporation.

 

     (4) The validity of the incorporation of a corporation or a

 

subsidiary corporation described in this section is conclusively

 

presumed unless questioned in a court of competent jurisdiction

 

within 60 days after the certified copy of the articles of

 

incorporation of that corporation or subsidiary corporation is

 

filed with the secretary of state under subsection (2).

 

     (5) This section does not apply to articles of incorporation

 

of a restructured corporation or restructured subsidiary

 

corporation described in section 305a.

 

     Sec. 255. (1) The incorporation of a corporation by a city or

 

village shall be is accomplished by approval of articles of


 

incorporation by resolution of the city council or village council.

 

The incorporation of a subsidiary corporation shall be is

 

accomplished by approval of articles of incorporation by resolution

 

of the city council or village council.

 

     (2) The articles of incorporation shall set forth the include

 

all of the following:

 

     (a) The name of the corporation or subsidiary corporation. ;

 

the

 

     (b) The purposes for which it the corporation or subsidiary

 

corporation is created, which may include all of the purposes for

 

which a corporation or subsidiary corporation may be organized

 

under this act. ; the

 

     (c) The number, terms, and manner of selection of the officers

 

of its the board of trustees of the corporation or subsidiary board

 

of the subsidiary corporation, as applicable, which shall include a

 

chairperson and a secretary, and a general description of their

 

respective powers and duties. ; the

 

     (d) The date upon on which the incorporation shall become of

 

the corporation or subsidiary corporation is effective. ; and the

 

     (e) The name of the newspaper in which or link to the website

 

where the city clerk or village clerk is publishing or posting the

 

articles of incorporation shall be published. under section 256(1).

 

     (3) The articles of incorporation of a subsidiary corporation

 

shall also contain the name of the corporation acting as its parent

 

, and shall specify the size of the subsidiary board in accordance

 

with section 258(2).

 

     (4) The articles of incorporation of a corporation may specify


 

transactions otherwise within the powers of its board of trustees

 

which shall require approval by resolution of the city council or

 

village council, and may also contain other matters provisions

 

considered expedient to be included for inclusion in the articles

 

of incorporation.

 

     (5) The articles of incorporation of a subsidiary corporation

 

may specify transactions otherwise within the powers of its

 

subsidiary board which shall require approval by resolution of the

 

board of trustees of its designated parent corporation, and may

 

also contain other matters provisions considered expedient to be

 

included for inclusion in the articles of incorporation.

 

     Sec. 256. (1) The articles of incorporation of a corporation

 

incorporated by a city or village shall be executed in duplicate by

 

the chairperson of the city council or the president of the village

 

council or other member of the city council or village council

 

designated by the city council or village council. The articles of

 

incorporation of a subsidiary corporation of a corporation

 

incorporated by a city or village shall be executed in duplicate by

 

the chairperson of the board of trustees of the parent corporation,

 

or other trustee designated by the board of trustees. The articles

 

of incorporation shall then be delivered to the city clerk or

 

village clerk who shall file 1 copy in his or her office and the

 

other with the secretary of the corporation or subsidiary

 

corporation when a secretary is selected. The city clerk or village

 

clerk shall cause provide public notice of the incorporation of the

 

corporation or subsidiary corporation by meeting 1 of the

 

following:


 

     (a) Before January 1, 2015, publishing a copy of the articles

 

of incorporation to be published once in a newspaper designated in

 

the articles of incorporation and circulating within the city or

 

village, accompanied by a statement that the right exists to

 

question the validity of the incorporation in court as provided in

 

this section.

 

     (b) Beginning January 1, 2015, providing public notice of the

 

incorporation by publishing or posting the articles of

 

incorporation and the statement described in subdivision (a) in the

 

same manner that tier B public notice with a link is provided under

 

the local government public notice act.

 

     (2) The city clerk or village clerk shall file 1 printed copy

 

of articles of incorporation delivered to him or her under

 

subsection (1) with the secretary of state and 1 printed copy in

 

his or her office. The city clerk or village clerk shall attach to

 

each of the printed copies his or her certificate setting forth

 

that the copy is a true and complete copy of the original articles

 

of incorporation on file in his or her office.

 

     (3) The incorporation of a corporation or a subsidiary

 

corporation described in this section is effective at the time

 

provided in the articles of incorporation, but not before approval

 

of the question of incorporation by the city or village electors

 

under section 251.

 

     (4) The validity of the incorporation of a corporation or a

 

subsidiary corporation described in this section is conclusively

 

presumed unless questioned in a court of competent jurisdiction

 

within 60 days after the certified copy of the articles of


 

incorporation of that corporation or subsidiary corporation is

 

filed with the secretary of state under subsection (2).

 

     (5) This section does not apply to articles of incorporation

 

of a restructured corporation or restructured subsidiary

 

corporation described in section 305a.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 5560 of the 97th Legislature is enacted into

 

law.