Bill Text: MI SB0396 | 2011-2012 | 96th Legislature | Chaptered
Bill Title: Higher education; private schools; charter of Albion college; revise composition of board and liability of trustees and other persons. Amends sec. 2 of 1857 PA 72 (MCL 390.702); adds secs. 1a, 7, 7a, 7b & 7c & repeals secs. 4 & 8 of 1857 PA 72 (MCL 390.704 & 390.708).
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-11-29 - Assigned Pa 0220'11 With Immediate Effect [SB0396 Detail]
Download: Michigan-2011-SB0396-Chaptered.html
Act No. 220
Public Acts of 2011
Approved by the Governor
November 15, 2011
Filed with the Secretary of State
November 15, 2011
EFFECTIVE DATE: November 15, 2011
STATE OF MICHIGAN
96TH LEGISLATURE
REGULAR SESSION OF 2011
Introduced by Senators Richardville and Nofs
ENROLLED SENATE BILL No. 396
AN ACT to amend 1857 PA 72, entitled “An act amendatory to the several acts in relation to the Wesleyan Seminary at Albion, and the Albion Female Collegiate Institute,” by amending section 2 (MCL 390.702) and by adding sections 1a, 7, 7a, 7b, and 7c; and to repeal acts and parts of acts.
The People of the State of Michigan enact:
Sec. 1a. As used in this act:
(a) “Board of trustees” means the board of trustees of Albion college created in section 1.
(b) “College” means Albion college, created in section 1.
(c) “Nontrustee volunteer” means an individual, other than a volunteer trustee, performing services for the college who does not receive compensation or any other type of consideration for the services other than reimbursement for expenses actually incurred.
(d) “Trustee” means a member of the board of trustees.
(e) “Volunteer trustee” means a trustee who does not receive anything of more than nominal value from the college for serving as a trustee other than reasonable per diem compensation and reimbursement for actual, reasonable, and necessary expenses incurred by a trustee in his or her capacity as a trustee.
Sec. 2. (1) The board of trustees of Albion college shall consist of not more than 33 trustees, consisting of the following:
(a) The president of the college.
(b) Not more than 6 trustees, the number to be determined by the board of trustees, appointed by the United Methodist Church.
(c) Not more than 2 trustees who are recent graduates of the college, the number to be determined by the board of trustees, appointed by the president of the college. Trustees appointed under this subdivision shall serve staggered 2-year terms.
(d) Not more than 6 trustees, the number to be determined by the board of trustees, appointed by the Albion college alumni association.
(e) Not more than 20 trustees, the number to be determined by the board of trustees, appointed by the trustees then in office.
(2) Unless otherwise provided in bylaws of the college adopted by the trustees under section 3, the term of office of a trustee appointed under subsection (1)(b), (d), or (e) is 3 years. The term of office of a trustee appointed under subsection (1)(c) is 2 years, except that the board of trustees may appoint an individual for a 1-year term so that the terms of office of board members appointed under subsection (1)(c) are staggered.
(3) The board of trustees may provide in bylaws adopted under section 3 a limitation on the number of consecutive terms an individual may serve as a trustee.
(4) A trustee appointed under subsection (1)(b), (c), (d), or (e) may serve in office only until the expiration of that trustee’s term, regardless of whether a successor has been appointed.
Sec. 7. A volunteer trustee or a nontrustee volunteer who is an officer of the college has no personal liability to the college for monetary damages for a breach of the trustee’s or officer’s fiduciary duty. This provision does not eliminate or limit the liability of a trustee or officer for any of the following:
(a) A breach of the trustee’s or officer’s duty of loyalty to the college.
(b) Acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law.
(c) Any distribution of assets of the college in violation of applicable law.
(d) A transaction from which the trustee or officer derived an improper personal benefit.
(e) An act or omission occurring before the effective date of this amendment.
(f) An act or omission that is grossly negligent.
Sec. 7a. During the time that the college is tax exempt under section 501(c)(3) of the internal revenue code, 26 USC 501, the college assumes all liability to any person other than the college for all acts or omissions of a volunteer trustee incurred in the good faith performance of the volunteer trustee’s duties.
Sec. 7b. The college assumes the liability for all acts or omissions of a person who is a volunteer trustee or nontrustee volunteer occurring on or after the effective date of the amendatory act that added this section if all of the following are met:
(a) The person was acting or reasonably believed he or she was acting within the scope of his or her authority.
(b) The volunteer was acting in good faith.
(c) The volunteer’s conduct did not amount to gross negligence or willful and wanton misconduct.
(d) The volunteer’s conduct was not an intentional tort.
(e) The volunteer’s conduct was not a tort arising out of the ownership, maintenance, or use of a motor vehicle for which tort liability may be imposed under section 3135 of the insurance code of 1956, 1956 PA 218, MCL 500.3135.
Sec. 7c. A claim for monetary damages for an act or omission of a volunteer trustee or a nontrustee volunteer shall not be brought or maintained against that volunteer trustee or nontrustee volunteer. The claim shall be brought and maintained against the college.
Enacting section 1. Sections 4 and 8 of 1857 PA 72, MCL 390.704 and 390.708, are repealed.
This act is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of Representatives
Approved
Governor
