REAL ESTATE SALE; HORT. ASSC.                                                         S.B. 1018 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 1018 (Substitute S-1 as reported)

Sponsor:  Senator Dale W. Zorn

Committee:  Agriculture

CONTENT

The bill would amend Public Act 80 of 1855, which authorizes the formation of local agricultural and horticultural societies, to allow a society to sell its real estate if notice of its intention to do so were provided to its members by mail or email before the meeting in which the decision to sell would be made and if the sale were approved by two-thirds of the society's board of directors.

The Act allows 10 or more residents who wish to do so to form a local agricultural or horticultural society in any county, township, city, or village (or two or more of them). Among other things, incorporation of this type allows the association to acquire real property, exempt from taxation, for horticultural or agricultural society purposes.

The Act allows a society to sell all or part of its real estate if authorized by a vote of its members at an annual meeting or a special meeting called for that purpose. Before the meeting, notice of the intention to vote on the question of the sale must be published in a newspaper published in the county, if one is published in that county. If no newspaper is published in that county, the notice must be included in a newspaper published in an adjoining county. The notice must be published once a week for three weeks immediately preceding the meeting.

The bill would eliminate the current meeting and notice publication requirements, and instead allow a society to sell its real estate if both of the following occurred:

-- Notice of the intention to sell were provided to the society members by mail or email before the meeting in which the decision to sell would be made.

-- The sale was approved by a two-thirds vote of the society's board of directors.

MCL 453.236                                                                  Legislative Analyst:  Jeff Mann

FISCAL IMPACT

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

Date Completed:  6-30-22                                                Fiscal Analyst:  Bruce R. Baker

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.