Michigan House Bill HB4313

Michigan 2023-2024 Regular Session

• Introduced: 3/21/23
• Refer: 3/21/23
• Report Pass: 10/25/23
• Engrossed: 2/20/24
• Refer: 2/21/24

Caption

Businesses: associations; conversion of summer resort associations into nonprofit corporations; authorize. Amends 1897 PA 230 (MCL 455.1 - 455.24) by adding sec. 19. TIE BAR WITH: HB 4312'23

Impact

The impact of HB 4313 on state laws is significant, as it introduces provisions that specifically cater to the unique nature of summer resort associations. By permitting these organizations to convert into nonprofits, the bill enables them to operate more effectively under the nonprofit framework, potentially enhancing their ability to manage resources and provide services to their communities. This legislative change is aimed at fostering growth within these organizations by allowing them to capitalize on the advantages that come with nonprofit status, such as tax exemptions and increased funding opportunities.

Summary

House Bill 4313 aims to amend Michigan's 1897 PA 230 to allow summer resort associations to transition into domestic nonprofit corporations. This change creates a legal pathway for summer resort associations, which are entities formed for maintaining leisure properties, to convert into nonprofit organizations by adhering to the relevant state statutes. Such amendments reflect a shift in the operational and organizational structure of these associations, thus modernizing existing laws to better fit contemporary needs for non-profit governance.

Sentiment

The general sentiment surrounding HB 4313 appears to be supportive among stakeholders involved in summer resort operations. Advocates view the bill as a progressive move that facilitates greater flexibility and sustainability for summer resort associations. They argue that the ability to become a nonprofit can help these associations align their operational goals with community interests, thereby enhancing their overall impact. However, concerns may arise from those skeptical of changes in organizational structure, prompting discussions around transparency and governance within non-profits.

Contention

Notable points of contention regarding HB 4313 stem from the implications of transitioning to a nonprofit model. Critics may raise questions about the accountability mechanisms of such organizations compared to traditional business associations. Concerns over governance structures, resource allocation, and the potential for increased oversight by state authorities may be debated. Additionally, the tie bar with House Bill 4312 suggests that the enactment of this bill is contingent upon the passage of related legislation, which may introduce further complexities in the legislative process.