Bill Text: MI HB5978 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Economic development; other; incentives to invest in transit-oriented facilities and transit-oriented development; provide for. Amends sec. 3 of 1969 PA 38 (MCL 331.33).

Spectrum: Strong Partisan Bill (Democrat 11-1)

Status: (Introduced - Dead) 2010-03-24 - Printed Bill Filed 03/24/2010 [HB5978 Detail]

Download: Michigan-2009-HB5978-Introduced.html

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HOUSE BILL No. 5978

 

March 23, 2010, Introduced by Reps. Roy Schmidt, Byrnes, Liss, Wayne Schmidt, Stanley, Constan, Robert Jones, Bauer, Tlaib, Gonzales, Gregory and Smith and referred to the Committee on Intergovernmental and Regional Affairs.

 

     A bill to amend 1969 PA 38, entitled

 

"Hospital finance authority act,"

 

by amending section 3 (MCL 331.33), as amended by 2008 PA 294.

 

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 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. Hospital includes a

 

nonprofit corporation or other nonprofit 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 a

 

hospital or public corporation that operates or owns a hospital

 

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, 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, 1978 PA 368, MCL 333.20106.

 

     (B) "Nursing home" means that term as defined in section 20109

 

of the public health code, 1978 PA 368, MCL 333.20109.

 

     (iv) A transit-oriented facility.

 

     (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.

 

     (j) "Transit-oriented facility" means a facility that houses a

 

transit station in a manner that promotes transit ridership or

 

passenger rail use.