Michigan Laws 550.1653 – Charitable purpose nonprofit corporation; receipt and administration of funds; articles of incorporation; grants; conflict with other provisions of law; social mission contributions; fund as private,
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Michigan Laws 550.1653
- Board: means the board of a health endowment fund corporation incorporated under this part. See Michigan Laws 550.1651
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fund: means a health endowment fund corporation organized as a nonprofit corporation under section 653. See Michigan Laws 550.1651
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) A charitable purpose nonprofit corporation may be incorporated on a nonstock, directorship basis, under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192 consistent with this part and, if incorporated under this section, shall be organized to receive and administer funds for the public welfare. The articles of incorporation must include the word “Michigan” and the phrase “health endowment fund” in the name of the fund. As soon as practicable after the incorporation of a fund under this subsection, the fund shall apply for and make its best effort to obtain tax-exempt status under section 501(c)(3) of the internal revenue code, 26 USC 501.
(2) The articles of incorporation of a fund must provide that the fund is organized for the following purposes:
(a) Supporting efforts that improve the quality of health care while reducing costs to residents of this state.
(b) Benefitting the health and wellness of minor children and seniors throughout this state with a significant focus in the following areas:
(i) Access to prenatal care and reduction of infant mortality rates.
(ii) Health services for foster and adopted children.
(iii) Access to healthy food.
(iv) Wellness programs and fitness programs.
(v) Access to mental health services.
(vi) Technology enhancements.
(vii) Health-related transportation needs.
(viii) Foodborne illness prevention.
(c) Awarding grants for a term not exceeding 3 years in duration for projects that will promote the purposes of the fund.
(d) Subsidizing the cost of individual medigap coverage to medicare-eligible individuals in this state who demonstrate a financial need in order to be able to purchase individual medigap coverage.
(3) The board shall establish a comprehensive and competitive process to award grants.
(4) The nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192, applies to a fund. If a provision relating to a fund under this part conflicts with other state law, this part controls.
(5) If a fund is eligible to receive social mission contributions under section 220(2), the eligible fund shall implement a program to disburse money to subsidize the cost of individual medigap coverage to medicare-eligible individuals in this state who demonstrate a financial need in order to be able to purchase individual medigap coverage. The commissioner shall develop a means test to be used to determine if a medicare-eligible individual applicant is eligible for the medigap coverage subsidy provided for in this subsection and shall submit the test developed to the attorney general for approval.
(6) If a fund is eligible to receive social mission contributions under section 220(2), beginning on the first day of the third August after the fund receives its initial social mission contribution, and ending on the thirty-first day of the eighth December after the fund receives its initial social mission contribution, the fund shall disburse $120,000,000.00 to subsidize the cost of individual medigap coverage purchased by medicare-eligible individuals in this state, subject to subsection (5).
(7) A fund is a private, nonprofit corporation organized for charitable purposes and is not a state agency, governmental agency, or other political subdivision of this state. Money of a fund is held by the fund for the purposes consistent with this part and is not money of this state or a political subdivision of this state and shall not be deposited in the state treasury. A member of a board is not a public officer of this state.