MICHIGAN COMMUNITY FOUNDATION ACT                                                        S.B. 102:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 102 (as reported without amendment)

Sponsor:  Senator Wayne Schmidt

Committee:  Local Government

CONTENT

The bill would create the "Michigan Community Foundation Act" to repeal, re-enact, and consolidate various provisions relating to a municipality's, school district's, or library's authority to receive certain gifts and to transfer property to a community foundation. The bill would do the following:

-- Authorize a municipality (a city, village, township, or county), a school board, and a public library to accept certain gifts of property.

-- Authorize those public entities to sell and dispose of the property, when it was no longer needed for its stated purpose.

-- Specify that a municipality, school board, or public library could transfer property to a community foundation.

-- Require a community foundation to which property was transferred to return it to the entity that transferred it if certain conditions occurred.

-- Allow a municipality, school board, or public library transferring property to a community foundation to request that the foundation establish a donor advisory committee, and specify actions the advisory committee could take.

Sections of various statutes authorize a municipality, the school board of a school district or intermediate school district, and a public library to accept gifts of real or personal property under certain circumstances, sell and dispose of the property, and transfer property to a community foundation. The bill would repeal those sections (MCL 123.871 & 123.874; 380.15 & 380.602: and 397.381 & 397.382).

That authority would be consolidated in the proposed Act, which also would refer to accepting gifts of intangible personal property, selling or disposing of such property, and transferring it to a community foundation.

The bill would apply to community foundations with assets of at least $5.0 million. (The provisions that would be repealed apply to foundations with assets of at least $10.0 million.)

                                                                            Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  2-21-17                                                  Fiscal Analyst:  Elizabeth Pratt

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.