H.B. 5687 (H-1): COMMITTEE SUMMARY - MUNICIPAL HEALTH FACILITIES

House Bill 5687 (Substitute H-1 as passed by the House)

Sponsor: Representative Tom Alley

House Committee: Health Policy

Senate Committee: Local, Urban and State Affairs

Date Completed: 11-18-98

CONTENT

The bill would amend the Municipal Health Facilities Corporations Act to delete a provision under which a corporation's board of trustees or subsidiary board may invest certain funds in any manner in which a local government may lawfully invest similar property. The bill would retain a board's authority to invest the funds in any manner.

Under the Act, a board of trustees or subsidiary board may invest funds not immediately required for its purposes, funds accumulated to provide retirement or pension benefits, endowment funds created for charitable or educational purposes, and other funds and loan its funds to further its purposes.

MCL 331.1304 - Legislative Analyst: L. Arasim

FISCAL IMPACT

Local units of government would alter their revenues according to the results of any change in their investment decisions. The bill would have no State fiscal impact.

- Fiscal Analyst: R. RossS9798\S5687SA

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.