Michigan House Bill HB4977

Michigan 2023-2024 Regular Session

• Introduced: 9/13/23
• Refer: 9/13/23
• Report Pass: 10/25/23
• Engrossed: 3/5/24
• Refer: 3/6/24

Caption

Businesses: nonprofit corporations; conversion of summer resort and assembly associations into domestic nonprofit corporations; authorize. Amends 1889 PA 39 (MCL 455.51 - 455.72) by adding sec. 12a. TIE BAR WITH: HB 4978'23

Impact

The passage of HB 4977 will have a notable impact on existing state laws surrounding the formation and regulation of nonprofit organizations in Michigan. By facilitating the conversion of summer resort and assembly associations into domestic nonprofit corporations, the bill is expected to empower these groups to engage more effectively in community service, enhance fundraising capabilities, and possibly expand their programming. Such a change may aid in the sustainability and growth of community-centric initiatives that these associations typically champion.

Summary

House Bill 4977 seeks to amend the 1889 Public Act 39, which allows for the formation of corporations aimed primarily at summer homes and camp meetings. This bill specifically introduces Section 12a, allowing associations created under this act to convert into domestic nonprofit corporations, provided they meet the requisite criteria for such conversions as specified in the nonprofit corporation act of 1982. This legislative change aims to modernize the framework governing these associations, creating a more streamlined pathway to nonprofit status that may enhance operational capacity and legal recognition for these organizations.

Sentiment

The sentiment surrounding HB 4977 appears largely supportive, especially among stakeholders in the nonprofit sector who recognize the benefits of clear frameworks for organizational conversion. Supporters argue that the bill encourages local engagement and revitalization of community activities. However, there may be some opposition regarding the bureaucratic implications and the additional regulatory environment that could arise from these conversions, which some may view as overreach or unnecessary for certain associations.

Contention

A notable point of contention in the discussions of HB 4977 revolves around the extent of regulatory oversight following the conversion process. While advocates for the bill highlight the benefits of nonprofit status in fostering community involvement, critics may raise concerns about the potential complications that could arise in adhering to new legal obligations and regulations. Additionally, there is the anticipation that the bill’s enactment may necessitate further legislative adjustments or additional support mechanisms for effectively managing the transition for various associations across the state.