HB 5730

HOUSE BILL NO. 5730
A bill to amend 1987 PA 230, entitled
"Municipal health facilities corporations
act,"
by amending section 103 (MCL 331.1103), as amended by
2010 PA 331.
the people of the state of michigan enact:
Sec. 103. As used in this act:
(a) "Board of
trustees" means the board of trustees of a corporation created under or
governed by this act.
(b)
"City" means a city establishing a corporation incorporated under, or
governed by, this act.
(c) "City
public hospital" means a health care facility that is owned or operated by
a city.
(d)
"Corporation" means a municipal health facilities corporation
incorporated under this act or created under 1913 PA 350, MCL 331.151 to
331.169, or under 1945 PA 109, MCL 331.201 to 331.213, and governed by this
act. The term includes a restructured corporation.
(e)
"Corporation obligation" means a bond, note, or any other legal
instrument issued by a corporation or subsidiary corporation under chapter 4
that evidences indebtedness of a corporation or a subsidiary corporation,
including principal, interest, and premiums, if any, on that indebtedness.
Notes issued under section 401 are not considered corporation obligations.
(f)
"County" means a county establishing a corporation incorporated
under, or governed by, this act.
(g) "County
public hospital" means a public corporation organized and existing or
purportedly organized and existing under 1913
PA 350, MCL 331.151 to 331.169, or under 1945 PA 109, MCL 331.201 to 331.213,
on the effective date of this act.February 27, 1988.
(h) "Direct
provider of health care" means a person or organization whose primary
current activity is providing health services to individuals. The term includes
a all of the
following:
(i) A person or organization licensed,
certified, or registered under article 6 or 15
of the public health code, 1978 PA 368, MCL 333.6101
to 333.6523 and 333.16101 to 333.18838. , or a
(ii) A person
licensed or exempt from licensure under article 6 of the public health code,
1978 PA 368, MCL 333.6230 to 333.6251.
(iii) A professional corporation or other public
or private organization composed of or employing direct providers of health
care.
(i) "Health
care facilities" means buildings, structures, or equipment suitable and
intended for, or incidental or ancillary to, use in providing health services,
including, but not limited to, hospitals; hospital long-term care units;
infirmaries; sanatoria; nursing homes; medical care facilities; outpatient
clinics; ambulatory care facilities; surgical and diagnostic facilities;
hospices; clinical laboratories; shared service facilities; laundries; meeting
rooms; classrooms and other educational facilities; students', nurses',
interns', or physicians' residences; administration buildings; facilities for
use as or by health maintenance organizations; facilities for ambulance
operations, advanced mobile emergency care services, and limited advanced
mobile emergency care services; research facilities; facilities for the care of
dependent children; maintenance, storage, and utility facilities; parking lots
and structures; garages; office facilities not less than 80% of the net
leasable space of which is intended for lease to or other use by direct
providers of health care; facilities for the temporary lodging of outpatients
or families of patients; residential facilities for use by the aged or
disabled; and all necessary, useful, or related equipment, furnishings, and
appurtenances and all lands necessary or convenient as sites for the health
care facilities described in this subdivision.
(j) "Health
services" means 1 or more of the following:
(i) Diagnosis and medical and surgical
treatment by direct providers of health care of persons suffering from illness,
injury, and disability, including persons suffering from tuberculosis and other
contagious and infectious diseases, and persons requiring maternity care,
rehabilitation, psychiatric care, or substance abuse services; dentistry and
related services; podiatric medicine and surgery; optometric services;
psychological services; skilled, basic, and visiting nursing services and home
health services; ambulance operations; advanced mobile emergency care services
and limited advanced emergency services; physical, respiratory, and
occupational therapy; health maintenance services; services for the prevention
of illness, injury, and disability and for the promotion, maintenance, and
improvement of public health and welfare; food services and care for dependent
children, the disabled, and the elderly; and social work and chaplaincy
services provided in conjunction with other health services described in this
subparagraph.
(ii) Conduct of or participation in programs
for the education and training of health services personnel, including
undergraduate, internship, residency, postgraduate, and continuing education
programs for physicians; schools and other training programs for nurses,
technicians, therapists, pharmacists, and other health services personnel; and
in-service education of employees of health care facilities.
(iii) Research relating to the cause,
prevention, and treatment of illness, injury, and disability, and the
protection, promotion, or improvement of public health and welfare.
(k) "Local
governmental unit" means a county, city, or village.
(l) "Nonprofit health care
organization" means a public body organized and existing under the laws of
this state and authorized to provide health services, a nonprofit corporation
incorporated under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, or a not-for-profit corporation incorporated under the laws of
another state and qualified to do business in this state, that is organized and
operated exclusively for charitable, scientific, educational, or religious
purposes and authorized to provide health services, no part of the net earnings
of which inures to the benefit of any private shareholder or individual.
(m) "Project
costs" means the total of the reasonable or necessary costs incurred for
carrying out the acquisition, construction, repair, remodeling, equipping, or
re-equipping of health care facilities. The term includes, but is not limited
to, any of the following costs: studies, surveys, plans, and specifications;
architectural and engineering services; fees, charges, and expenses incurred in
obtaining permits, approvals, and licenses for the acquisition, and initial
operation of the health care construction, financing, facilities; legal,
organizational, marketing, and other special services; acquisition, demolition,
construction, equipment, and site development of new and rehabilitated
buildings; rehabilitation, construction, repair, or remodeling of existing
buildings; interest and carrying charges during construction and before full
earnings are achieved but for a period not to exceed 3 years after the date of
the corporation obligations; operating expenses before full earnings are
achieved, but for a period not to exceed 1 year following completion of
construction; and reasonable reserves for payment of principal and interest on
corporation obligations, not exceeding 15% of the principal amount of the
corporation obligations. Project costs shall also include reimbursement of a
corporation or a subsidiary corporation for any of the project costs described
in this section expended before the issuance and delivery of the corporation
obligations.
(n)
"Restructured corporation" means a corporation that has completed the
process described in section 305a.
(o)
"Restructured subsidiary corporation" means a subsidiary corporation
that has completed the process described in section 305a.
(p)
"Subsidiary board" means the board of trustees of a subsidiary
corporation.
(q)
"Subsidiary corporation" means a subsidiary municipal health
facilities corporation incorporated under this act. The term includes a
restructured subsidiary corporation.
(r)
"Trustee" means a person serving on a board of trustees or a
subsidiary board.
(s)
"Village" means a village establishing a corporation incorporated
under, or governed by, this act.
(t) "Village
public hospital" means a health care facility that is owned or operated by
a village.
Enacting section 1.
This amendatory act does not take effect unless House Bill No. 5729 (request
no. H03349'25) of the 103rd Legislature is enacted into law.