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MI HB5633

Bill

Status

Introduced

2/22/2018

Primary Sponsor

John Chirkun

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Origin

House of Representatives

99th Legislature

AI Summary

  • Amends section 209 of the Nonprofit Corporation Act (MCL 450.2209) to modify liability provisions for volunteer directors and officers in nonprofit corporations.

  • Removes the requirement that corporations cannot assume liability for torts arising from ownership, maintenance, or use of motor vehicles under section 3135 of the Insurance Code, replacing it with a blanket exclusion for motor vehicle-related torts.

  • Allows nonprofit corporations to assume liability for volunteer directors, officers, and other volunteers for acts or omissions if the volunteer was acting within scope of authority, in good faith, without gross negligence or willful misconduct, without intentional tort, and without motor vehicle-related torts.

  • Changes language from "are met" to "apply" regarding conditions for limited liability provisions and clarifies that provisions filed before January 15, 2015 eliminating volunteer director liability are considered valid under the amended law.

  • Effective January 1, 2019, contingent upon enactment of Senate Bill No. ____ or House Bill No. 5627 (HB 5627'18).

Legislative Description

Businesses; nonprofit corporations; vicarious liability of nonprofit corporation for volunteers; revise to reflect elimination of mandatory automobile insurance. Amends sec. 209 of 1982 PA 162 (MCL 450.2209). TIE BAR WITH: HB 5627'18

Insurance: no-fault

Last Action

Bill Electronically Reproduced 02/22/2018

2/27/2018

Committee Referrals

Insurance2/22/2018

Full Bill Text

No bill text available