May 25, 2006, Introduced by Senators STAMAS, KUIPERS, CROPSEY, GARCIA, GOSCHKA, BARCIA, ALLEN and BROWN and referred to the Committee on Education.
A bill to amend 1931 PA 327, entitled
"An act to provide for the organization, regulation and
classification of corporations; to provide their rights, powers and
immunities; to prescribe the conditions on which corporations may
exercise their powers; to provide for the inclusion of certain
existing corporations within the provisions of this act; to
prescribe the terms and conditions upon which foreign corporations
may be admitted to do business within this state; to require
certain annual reports to be filed by corporations; to prescribe
penalties for the violations of the provisions of this act; and to
repeal certain acts and parts of acts relating to corporations,"
by amending sections 171 and 176 (MCL 450.171 and 450.176) and by
adding section 177a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 171. (1) For the purposes of this act, educational
corporations shall
be are classified as follows 1 of the
following:
(a) (w)
Those Class w: those having a capital of not less
than
$500,000.00. ;
(b) (x)
Those Class x: those having a capital of not less
than
$100,000.00 , and less than $500,000.00. ;
(c) (y)
Those Class y: those having a capital of
$1,000,000.00
or more. ;
(d) (z)
Those Class z: those instituted and maintained by
any
an ecclesiastical or religious order, society,
corporation, or
corporations ,
retaining that retain control of
such the
institution for denominational purposes.
(2) Every educational corporation, before being authorized to
file
its articles, shall be is required to present a
statement to
the Michigan corporation and securities commission department of
labor and economic growth in writing from the state board of
education
that (1) the confirms all of the following:
(a)
The housing space and administration
facilities which
that it possesses or proposes to provide for its declared field or
fields
of education are adequate. , (2) its
(b) Its proposed educational program leading to the diplomas
or
degrees which that
it proposes to offer is adequate. ,
(3)
its
(c) The laboratory, library, and other teaching facilities
which
that it possesses or proposes to provide are adequate. ,
(4)
it
(d) It has or proposes to employ an adequate staff, fully
trained,
for the instruction proposed. , and (5) at
(e) At least 50% of its capital, whether consisting of stock
or in gifts, devises, legacies, bequests or other contributions of
money
or property, has been paid in or reduced to is in its
possession.
(3) In determining whether any educational corporation
satisfies
the conditions specified in classes
(w), (x), (y) and
(z)
of this section subsection
(1), the state board of education
may
treat as a credit to the capital of
such the corporation
the
guaranteed annual income of that corporation to the extent that it
deems
such considers that guaranteed income the equivalent of all
or any part of the required endowment.
(4) The
Except as provided in
section 177a concerning
religious colleges, the use of the word "college" or "university"
in
the name of any group, organization, or association hereafter
formed in this state after September 18, 1931 is limited to those
educational corporations complying with the requirements for class
(w)
w or class
(y) y educational
corporations or to such any
educational
corporations of class (z) as shall z that satisfy the
requirements set
up established for class
(y) y corporations.
:
Provided, however, That the The
words "junior college" may be
used
by educational corporations of class
(x). Whenever x. If
this
provision is violated, it shall be is the duty of the
prosecuting
attorney, in the county where the
organization
educational corporation is located, to bring proceedings to enjoin
the
further use of such a
name in violation of this act
subsection.
(5) No
An educational corporation shall
be is not
permitted to expand its program beyond that specified in its
articles
of incorporation until it has presented to the Michigan
corporation
and securities commission department
of labor and
economic growth a statement in writing from the state board of
education approving the facilities, equipment, and staff or the
proposed facilities, equipment, and staff as adequate for the
offering of the additional educational program.
Sec.
176. Same; privileges of holders of diplomas, or
certificates.
Every A diploma, certificate of graduation, or other
evidence
of attendance at such institution, shall entitle an
educational corporation or a religious college described in section
177a
entitles the lawful recipient thereof
to all the privileges
and
immunities which that
by custom or usage are allowed to
holders of similar diplomas or certificates granted by similar
institutions
in this country. : Provided, That as to any However,
if an occupation or profession is regulated by statute as to the
requirements
and qualifications necessary to the practice thereof,
no
such of that occupation or
profession, the diploma or
certificate
of graduation shall does
not entitle the recipient to
any such
privilege or immunity where such if those statutory
requirements
or qualifications have not been are not complied
with.
Sec. 177a. (1) A church trustee corporation or ecclesiastical
corporation may organize and operate a postsecondary religious
college. A religious college organized and operated under this
section must meet all of the following criteria:
(a) The religious college is organized and operated by the
church trustee corporation or ecclesiastical corporation as an
unincorporated program of the church trustee corporation or
ecclesiastical corporation.
(b) The church trustee corporation or ecclesiastical
corporation retains control of the religious college for
denominational purposes.
(c) The educational programs of the religious college are
primarily designed for, directed toward, and attended by students
who seek to learn the particular religious faith or beliefs of the
church trustee corporation or ecclesiastical corporation.
(d) The purpose of the educational programs of the religious
college is to prepare students to assume leadership positions in,
or enter into some other vocation closely related to, the
particular faith of the church trustee corporation or
ecclesiastical corporation.
(2) A church trustee corporation or ecclesiastical corporation
may use the word "college" in the name of the religious college.
The church trustee corporation or ecclesiastical corporation may
file a certificate of assumed name for the name of the religious
college with the department of labor and economic growth.
(3) A religious college that provides its students with
college-level educational programs of similar duration to the
associate or bachelor's degree programs offered by other colleges
or universities in this state may award an associate or bachelor's
degree to a student who successfully completes his or her
educational program. However, the religious college shall state the
religious nature of the degree on the student's diploma or
certificate of graduation.
(4) A church trustee corporation or ecclesiastical corporation
is not required to obtain the approval of or a license from the
department of labor and economic growth to operate a religious
college under this section in this state and the operation of the
religious college and its educational programs is not subject to
the supervision of that department. A church trustee corporation or
ecclesiastical corporation organizing or operating a religious
college shall submit a sworn certification to the department of
labor and economic growth that certifies that the religious college
complies with the requirements of this section.