HOUSE BILL No. 5882

 

May 12, 2004, Introduced by Reps. Newell, Richardville, Shackleton, Palsrok, Stahl, Voorhees, Amos, Taub, LaJoy, Meyer, Garfield, Nitz, DeRoche, Milosch, Pumford, Hummel, Koetje, Steil, Bisbee, Hune, Tabor, Shaffer, DeRossett, Ehardt, Gaffney, Caswell, Walker, Moolenaar, Acciavatti, Kooiman, Huizenga, Hoogendyk, Caul, Nofs and Sheen and referred to the Committee on Government Operations.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1979 PA 218, entitled                                             

                                                                                

    "Adult foster care facility licensing act,"                                 

                                                                                

    by amending section 13 (MCL 400.713), as amended by 2004 PA 59.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 13.  (1) A person, partnership, corporation,                           

                                                                                

2   association, or a department or agency of the state, county,                

                                                                                

3   city, or other political subdivision shall not establish or                 

                                                                                

4   maintain an adult foster care facility unless licensed by the               

                                                                                

5   department.                                                                 

                                                                                

6       (2) Application for a license shall be made on forms provided               

                                                                                

7   and in the manner prescribed by the department.  The application            

                                                                                

8   shall be accompanied by the fee prescribed in section 13a.                  

                                                                                

9       (3) Before issuing or renewing a license, the department                    

                                                                                

10  shall investigate the activities and standards of care of the               

                                                                                

11  applicant and shall make an on-site evaluation of the facility.             

                                                                                


                                                                                

1   On-site inspections conducted in response to the application may            

                                                                                

2   be conducted without prior notice to the applicant.  Subject to             

                                                                                

3   subsections (9), (10), and (11), the department shall issue or              

                                                                                

4   renew a license if satisfied as to all of the following:                    

                                                                                

5       (a) The financial stability of the facility.                                

                                                                                

6       (b) The applicant's compliance with this act and rules                      

                                                                                

7   promulgated under this act.                                                 

                                                                                

8       (c) The good moral character of the applicant, or owners,                   

                                                                                

9   partners, or directors of the facility, if other than an                    

                                                                                

10  individual.  Each of these persons shall be not less than 18                

                                                                                

11  years of age.                                                               

                                                                                

12      (d) The physical and emotional ability of the applicant, and                

                                                                                

13  the person responsible for the daily operation of the facility to           

                                                                                

14  operate an adult foster care facility.                                      

                                                                                

15      (e) The good moral character of the person responsible for                  

                                                                                

16  the daily operations of the facility and all employees of the               

                                                                                

17  facility.  The applicant shall be responsible for assessing the             

                                                                                

18  good moral character of the employees of the facility.  The                 

                                                                                

19  person responsible for the daily operation of the facility shall            

                                                                                

20  be not less than 18 years of age.                                           

                                                                                

21      (4) The department shall require an applicant or a licensee                 

                                                                                

22  to disclose the names, addresses, and official positions of all             

                                                                                

23  persons who have an ownership interest in the adult foster care             

                                                                                

24  facility.  If the adult foster care facility is located on or in            

                                                                                

25  real estate that is leased, the applicant or licensee shall                 

                                                                                

26  disclose the name of the lessor of the real estate and any direct           

                                                                                

27  or indirect interest that the applicant or licensee has in the              


                                                                                

1   lease other than as lessee.                                                 

                                                                                

2       (5) Each license shall state the maximum number of persons to               

                                                                                

3   be received for foster care at 1 time.                                      

                                                                                

4       (6) If applicable, a license shall state the type of                        

                                                                                

5   specialized program for which certification has been received               

                                                                                

6   from the department.                                                        

                                                                                

7       (7) A license shall be issued to a specific person for a                    

                                                                                

8   facility at a specific location,  shall be  is nontransferable,             

                                                                                

9   and  shall remain  remains the property of the department.  The             

                                                                                

10  prohibition against transfer of a license to another location               

                                                                                

11  does not apply if a licensee's adult foster care facility or home           

                                                                                

12  is closed as a result of eminent domain proceedings, if the                 

                                                                                

13  facility or home, as relocated, otherwise meets the requirements            

                                                                                

14  of this act and the rules promulgated under this act.                       

                                                                                

15      (8) An applicant or licensee proposing a sale of an adult                   

                                                                                

16  foster care facility or home to another owner shall provide the             

                                                                                

17  department with advance notice of the proposed sale in writing.             

                                                                                

18  The applicant or licensee and other parties to the sale shall               

                                                                                

19  arrange to meet with specified department representatives and               

                                                                                

20  shall obtain before the sale a determination of the items of                

                                                                                

21  noncompliance with applicable law and rules that shall be                   

                                                                                

22  corrected.  The department shall notify the respective parties of           

                                                                                

23  the items of noncompliance before the change of ownership, shall            

                                                                                

24  indicate that the items of noncompliance shall be corrected as a            

                                                                                

25  condition of issuance of a license to the new owner, and shall              

                                                                                

26  notify the prospective purchaser of all licensure requirements.             

                                                                                

27      (9) The department shall not issue a license to or renew the                


                                                                                

1   license of a person who has been convicted of a felony under this           

                                                                                

2   act or under chapter XXA of the Michigan penal code, 1931 PA 328,           

                                                                                

3   MCL 750.145m to 750.145r.  The department shall not issue a                 

                                                                                

4   license to or renew the license of a person who has been                    

                                                                                

5   convicted of a misdemeanor under this act or under chapter XXA of           

                                                                                

6   the Michigan penal code, 1931 PA 328, MCL 750.145m to 750.145r,             

                                                                                

7   for a period of 10 years after the conviction.                              

                                                                                

8       (10) If the department has revoked, suspended, or refused to                

                                                                                

9   renew a person's license for an adult foster care facility                  

                                                                                

10  according to section 22, the department may refuse to issue a               

                                                                                

11  license to or renew a license of that person for a period of 5              

                                                                                

12  years after the suspension, revocation, or nonrenewal of the                

                                                                                

13  license.                                                                    

                                                                                

14      (11) The department may refuse to issue a license to or renew               

                                                                                

15  the license of an applicant if the department determines that the           

                                                                                

16  applicant has a relationship with a former licensee whose license           

                                                                                

17  under this act has been suspended, revoked, or nonrenewed under             

                                                                                

18  subsection (9) or section 22 or a convicted person to whom a                

                                                                                

19  license has been denied under subsection (9).  This subsection              

                                                                                

20  applies for 5 years after the suspension, revocation, or                    

                                                                                

21  nonrenewal of the former licensee's license or the denial of the            

                                                                                

22  convicted person's license.  For purposes of this subsection, an            

                                                                                

23  applicant has a relationship with a former licensee or convicted            

                                                                                

24  person if the former licensee or convicted person is involved               

                                                                                

25  with the facility in 1 or more of the following ways:                       

                                                                                

26      (a) Participates in the administration or operation of the                  

                                                                                

27  facility.                                                                   


                                                                                

1       (b) Has a financial interest in the operation of the                        

                                                                                

2   facility.                                                                   

                                                                                

3       (c) Provides care to residents of the facility.                             

                                                                                

4       (d) Has contact with residents or staff on the premises of                  

                                                                                

5   the facility.                                                               

                                                                                

6       (e) Is employed by the facility.                                            

                                                                                

7       (f) Resides in the facility.                                                

                                                                                

8       (12) If the department determines that an unlicensed facility               

                                                                                

9   is an adult foster care facility, the department shall notify the           

                                                                                

10  owner or operator of the facility that it is required to be                 

                                                                                

11  licensed under this act.  A person receiving the notification               

                                                                                

12  required under this section who does not apply for a license                

                                                                                

13  within 30 days is subject to the penalties described in                     

                                                                                

14  subsection (13).                                                            

                                                                                

15      (13) Subject to subsection (12), a person who violates                      

                                                                                

16  subsection (1) is guilty of a misdemeanor, punishable by                    

                                                                                

17  imprisonment for not more than 2 years or a fine of not more than           

                                                                                

18  $50,000.00, or both.  A person who has been convicted of a                  

                                                                                

19  violation of subsection (1) who commits a second or subsequent              

                                                                                

20  violation is guilty of a felony, punishable by imprisonment for             

                                                                                

21  not more than 5 years or a fine of not more than $75,000.00, or             

                                                                                

22  both.                                                                       

                                                                                

23      (14) Beginning the effective date of the amendatory act that                

                                                                                

24  added this subsection, the department shall issue an initial or             

                                                                                

25  renewal license or registration not later than 180 days after the           

                                                                                

26  applicant files a completed application.  If the application is             

                                                                                

27  considered incomplete by the department, the department shall               


                                                                                

1   notify the applicant in writing within 10 days after receipt of             

                                                                                

2   the incomplete application, describing the deficiency and                   

                                                                                

3   requesting additional information.  If the department identifies            

                                                                                

4   a deficiency or requires the fulfillment of a corrective action             

                                                                                

5   plan, the 180-day period is tolled until either of the following            

                                                                                

6   occurs:                                                                     

                                                                                

7       (a) Upon notification by the department of a deficiency,                    

                                                                                

8   until the date the requested information is received by the                 

                                                                                

9   department.                                                                 

                                                                                

10      (b) Upon notification by the department that a corrective                   

                                                                                

11  action plan is required, until the date the department determines           

                                                                                

12  the requirements of the corrective action plan have been met.               

                                                                                

13      (15) If the department fails to issue or deny a license or                  

                                                                                

14  registration within the time required by this section, the                  

                                                                                

15  department shall return the license or registration fee and shall           

                                                                                

16  reduce the license or registration fee for the applicant's next             

                                                                                

17  renewal application, if any, by 15%.  The department shall not              

                                                                                

18  discriminate against an applicant in the processing of an                   

                                                                                

19  application based on the fact that the application fee was                  

                                                                                

20  refunded or discounted under this subsection.                               

                                                                                

21      (16) Beginning January 31, 2005, the director of the                        

                                                                                

22  department shall submit a report by January 31 of each year to              

                                                                                

23  the standing committees and appropriations subcommittees of the             

                                                                                

24  senate and house of representatives concerned with human services           

                                                                                

25  issues.  The director shall include all of the following                    

                                                                                

26  information in the report concerning the calendar year that ended           

                                                                                

27  the preceding December 31:                                                  


                                                                                

1       (a) The number of initial and renewal applications the                      

                                                                                

2   department received and completed within the 180-day time period            

                                                                                

3   described in subsection (14).                                               

                                                                                

4       (b) The number of applications requiring a request for                      

                                                                                

5   additional information.                                                     

                                                                                

6       (c) The average time for an applicant to respond to a request               

                                                                                

7   for additional information.                                                 

                                                                                

8       (d) The number of applications rejected, categorized by                     

                                                                                

9   reason for rejection.                                                       

                                                                                

10      (e) The amount of money returned to licensees and registrants               

                                                                                

11  under subsection (15).                                                      

                                                                                

12      (f) The number of licenses not issued within the 180-day                    

                                                                                

13  period.                                                                     

                                                                                

14      (g) The average processing time for initial and renewal                     

                                                                                

15  licenses granted after the 180-day period.