May 7, 2008, Introduced by Senators STAMAS, GARCIA and BIRKHOLZ and referred to the Committee on Health Policy.
A bill to amend 1969 PA 38, entitled
"Hospital finance authority act,"
by amending section 3 (MCL 331.33), as amended by 1994 PA 428.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "State authority" means the hospital finance authority
created by this act.
(b) "Local authority" means a public municipal corporation
incorporated under this act.
(c) "Incorporating unit" means a county, city, village, or
township
or a combination thereof of
1 or more counties, cities,
villages, or townships incorporating a local authority pursuant to
this act.
(d) "Governing body" means the board charged with the
governing of the incorporating unit.
(e) Except as provided in subdivision (f)(iii), "hospital" means
a public or nonpublic corporation, association, institution, or
establishment located within this state for the care of the sick or
wounded or of those who require medical treatment or nursing care
or home for the aged or which provides retirement housing
facilities described in subdivision (f)(iii) operated without profit
to
an individual, corporation, or association. It Hospital includes
a
nonprofit corporations corporation or other nonprofit
organizations
organization engaged in some phase of hospital,
nursing care, home for the aged, or, to the extent described in
subdivision (f)(iii), retirement housing activity or in owning,
controlling,
or providing a supporting service to hospitals a
hospital
or public corporations corporation that operate or own
operates
or owns a hospital facilities
facility.
Hospital does not
include a health facility or agency located in a correctional
institution, a veterans facility operated by this state or the
federal government, or a facility owned and operated by the
department of community health.
(f) "Hospital facilities" means any of the following:
(i) A building or structure suitable and intended for, or
incidental or ancillary to, use by a hospital and includes nursing
homes, homes for the aged, outpatient clinics, laboratories,
laundries, nurses', doctors', or interns' residences,
administration buildings, facilities for research directly involved
with hospital care, maintenance, storage, or utility facilities,
parking lots, and garages and all necessary, useful, or related
equipment, furnishings, and appurtenances and all lands necessary
or convenient as a site for these facilities.
(ii) An office facility not less than 80% of which is intended
for lease to direct providers of health care, and that has been
determined by the department of public health to meet a
demonstrated need and to be geographically or functionally related
to 1 or more other hospital facilities, if the authority that is
issuing the bonds determines the financing of the office facility
is necessary to accomplish the purposes and objectives of this act.
(iii) For the purpose of refinancing or refunding debt described
in this subdivision only, retirement housing facilities owned by a
nonpublic, nonprofit organization on September 1, 1994, placed in
service on or before September 1, 1994, and for which there was
outstanding on September 1, 1994 debt incurred for the construction
or acquisition of the retirement housing facilities, which debt is
not eligible for refinancing by the Michigan state housing
development authority solely by reason of the provisions of section
44c(2)
of the state housing development authority act of 1966, Act
No.
346 of the Public Acts of 1966, being section 125.1444c of the
Michigan Compiled Laws 1966 PA 346, MCL 125.1444c;
provided that
the refinancing debt, incurred with an authority created by or
incorporated under this act to refinance the retirement housing
facilities, is debt that a nonprofit hospital or nonprofit nursing
home or a nonprofit entity which owns or controls or is owned or
controlled by a nonprofit hospital or nonprofit nursing home is
obligated to repay and that no allocation of the state volume
limitation on tax exempt obligations is required with respect to
the refinancing debt or obligations issued by an authority created
by or incorporated under this act to fund that refinancing debt. As
used in this subparagraph:
(A) "Hospital" means that term as defined in section 20106 of
the
public health code, Act No. 368 of the Public Acts of 1978,
being
section 333.20106 of the Michigan Compiled Laws 1978 PA 368,
MCL 333.20106.
(B) "Nursing home" means that term as defined in section 20109
of
Act No. 368 of the Public Acts of 1978, being section 333.20109
of
the Michigan Compiled Laws the public health code, 1978 PA 368,
MCL 333.20109.
(g) "Hospital loan" means a loan made by the state authority
or a local authority to a hospital.
(h) "Project costs" means the total of the reasonable or
necessary costs incurred for carrying out the works and
undertakings for the acquisition or construction of hospital
facilities under this act. These include the costs of studies and
surveys; plans and specifications; architectural and engineering
services; legal, organization, marketing, or other special
services; financing, acquisition, demolition, construction,
equipment, and site development of new and rehabilitated buildings;
rehabilitation, reconstruction, repair, or remodeling of existing
buildings; interest and carrying charges during construction and
before full earnings are achieved and operating expenses before
full earnings are achieved or a period of 1 year following the
completion of construction, whichever occurs first; and a
reasonable reserve for payment of principal and interest on bonds
or notes of the authority. Project costs include reimbursement of a
hospital for the costs described in this subdivision expended by a
hospital either from its own funds or from money borrowed by the
hospital for such purposes before issuance and delivery of bonds by
the authority for the purpose of providing funds to pay the project
costs. Project costs also includes the refinancing of any existing
debt of a hospital necessary in order to permit the hospital to
borrow or lease from the authority and give adequate security for
the loan or lease. The determination of the authority with respect
to the necessity of refinancing and adequate security for a loan or
lease is conclusive except with respect to the approval of the
municipal finance commission or its successor agency when prior
approval is required.
(i) "Direct provider of health care" means a person or
organization whose primary current activity is the provision of
health care to individuals, and includes a licensed or certified
physician, dentist, nurse, podiatrist, physician's assistant, or an
organization comprised of these health professionals or employing
these health professionals.