MI SB0513

Allows municipal health facilities corporations in counties with populations between 5,000 and 7,500 to restructure as nonprofit corporations under the Nonprofit Corporation Act.

Restructuring must be completed before June 30, 2025, and requires adoption of a plan detailing terms, proposed articles of incorporation, and bylaws compliant with nonprofit law.

Restructuring requires prior approval from the parent corporation's board of trustees (if applicable) and majority approval from the county board of commissioners, city council, or village council.

Restructured corporation remains the same legal entity with all prior liabilities, property rights, and obligations preserved; prior articles of incorporation with county/city/village clerk are terminated and replaced with nonprofit articles.

Restructuring cannot proceed if it impairs any outstanding obligations, bonds, notes, or contracts of the corporation.