PROVIDE FOR SUMMER RESORT ASSOCIATION

TO BECOME NONPROFIT

House Bill 5508 as introduced

House Bill 5509 (substitute H-1)

Sponsor:  Rep. Larry C. Inman

Committee:  Commerce and Trade

Complete to 3-13-18

SUMMARY:

House Bill 5508 would amend Public Act 230 of 1897, one of the acts that allows for the incorporation of summer resort associations, to allow an association formed under the act to convert into a domestic nonprofit corporation, as long as the association meets the conversion requirements applicable to business organizations under the Nonprofit Corporation Act.

Proposed MCL 455.19

House Bill 5509 would amend the Nonprofit Corporation Act to add a summer resort association formed under Public Act 230 of 1897 to the list of corporations to which the Nonprofit Corporation Act applies. Currently there are eight types of corporations which generally fall under the provisions of the Act, to the extent not inconsistent with the statute under which the corporation was formed.

Corporation is defined in the Nonprofit Corporation Act as a nonprofit corporation that is formed under the act or that is formed under any other Michigan statute and subject to the act under particular sections.

MCL 450.2123

The bills are tie-barred to one another, meaning that neither could take effect unless both were enacted into law. The bills would each take effect 90 days after being enacted.

FISCAL IMPACT:

House Bills 5508 and 5509 would not have a significant fiscal impact on any units of state or local government.

                                                                                         Legislative Analyst:   Patrick Morris

                                                                                                 Fiscal Analyst:   Marcus Coffin

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.