Bill Text: MI HB5772 | 2015-2016 | 98th Legislature | Introduced


Bill Title: Human services; other; reference to the various department names in the social welfare act; update. Amends title & secs. 1, 1c, 3, 6, 10, 11a, 11b, 12, 13, 14, 14b, 14f, 14g, 14h, 17, 18d, 18e, 19, 20, 24, 25, 32, 35, 36, 37, 38, 41, 43, 43b, 45, 46, 47, 50, 53, 55, 56i, 58, 58b, 58c, 59, 59a, 60, 61, 63a, 66, 66a, 66b, 66e, 66h, 66i, 66j, 67, 68, 68a, 69, 70, 71, 73a, 76, 77, 77a, 80, 83, 84, 85, 86, 90, 100, 105, 105a, 105b, 105c, 105d, 105e, 105f, 106, 106a, 106b, 107, 108, 109, 109c, 109e, 109f, 109g, 109h, 109k, 109l, 111a, 111i, 111k, 111l, 112b, 112c, 112e, 112g, 112i, 112j, 114, 115f, 115o, 115s, 116 & 117c of 1939 PA 280 (MCL 400.1 et seq.); adds sec. 1d & repeals secs. 2, 109i & 109j of 1939 PA 280 (MCL 400.2 et seq.).

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2016-09-07 - Referred To Second Reading [HB5772 Detail]

Download: Michigan-2015-HB5772-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5772

July 13, 2016, Introduced by Reps. LaFontaine, Kosowski, Darany, Santana, Heise, Cox and Inman and referred to the Committee on Families, Children, and Seniors.

 

     A bill to amend 1939 PA 280, entitled

 

"The social welfare act,"

 

by amending the title and sections 1, 1c, 3, 6, 10, 11a, 11b, 12,

 

13, 14, 14b, 14f, 14g, 14h, 17, 18d, 18e, 19, 20, 24, 25, 32, 35,

 

36, 37, 38, 41, 43, 43b, 45, 46, 47, 50, 53, 55, 56i, 58, 58b, 58c,

 

59, 59a, 60, 61, 63a, 66, 66a, 66b, 66e, 66h, 66i, 66j, 67, 68,

 

68a, 69, 70, 71, 73a, 76, 77, 77a, 80, 83, 84, 85, 86, 90, 100,

 

105, 105a, 105b, 105c, 105d, 105e, 105f, 106, 106a, 106b, 107, 108,

 

109, 109c, 109e, 109f, 109g, 109h, 109k, 109l, 111a, 111i, 111k,

 

111l, 112b, 112c, 112e, 112g, 112i, 112j, 114, 115f, 115o, 115s,

 

116, and 117c (MCL 400.1, 400.1c, 400.3, 400.6, 400.10, 400.11a,

 

400.11b, 400.12, 400.13, 400.14, 400.14b, 400.14f, 400.14g,

 

400.14h, 400.17, 400.18d, 400.18e, 400.19, 400.20, 400.24, 400.25,

 

400.32, 400.35, 400.36, 400.37, 400.38, 400.41, 400.43, 400.43b,

 


400.45, 400.46, 400.47, 400.50, 400.53, 400.55, 400.56i, 400.58,

 

400.58b, 400.58c, 400.59, 400.59a, 400.60, 400.61, 400.63a, 400.66,

 

400.66a, 400.66b, 400.66e, 400.66h, 400.66i, 400.66j, 400.67,

 

400.68, 400.68a, 400.69, 400.70, 400.71, 400.73a, 400.76, 400.77,

 

400.77a, 400.80, 400.83, 400.84, 400.85, 400.86, 400.90, 400.100,

 

400.105, 400.105a, 400.105b, 400.105c, 400.105d, 400.105e,

 

400.105f, 400.106, 400.106a, 400.106b, 400.107, 400.108, 400.109,

 

400.109c, 400.109e, 400.109f, 400.109g, 400.109h, 400.109k,

 

400.109l, 400.111a, 400.111i, 400.111k, 400.111l, 400.112b,

 

400.112c, 400.112e, 400.112g, 400.112i, 400.112j, 400.114,

 

400.115f, 400.115o, 400.115s, 400.116, and 400.117c), the title and

 

sections 14, 66, and 66i as amended and section 66j as added by

 

1987 PA 266, sections 1, 6, 17, 32, and 45 as amended and sections

 

14f, 14g, and 63a as added by 1995 PA 223, sections 3 and 10 as

 

amended by 1996 PA 483, section 11a as amended by 1990 PA 122,

 

section 11b as amended by 2012 PA 175, section 14h as added by 2001

 

PA 280, section 18e as added by 2004 PA 18, section 43b as added by

 

2002 PA 573, section 55 as amended by 2015 PA 90, section 56i as

 

added by 1997 PA 162, section 58 as amended by 2006 PA 200, section

 

60 as amended by 1999 PA 194, section 83 as amended by 1985 PA 161,

 

sections 105, 105a, 107, 108, and 109c as amended and sections

 

105c, 105d, 105e, and 105f as added by 2013 PA 107, section 105b as

 

added by 2007 PA 100, section 106 as amended and section 106b as

 

added by 2014 PA 452, section 106a as amended by 2014 PA 518,

 

section 109 as amended by 2012 PA 48, section 109e as added by 1996

 

PA 124, section 109f as amended by 2005 PA 84, section 109g as

 

added by 2000 PA 409, section 109h as added by 2004 PA 248, section

 


109k as added by 2012 PA 375, section 109l as added by 2014 PA 167,

 

section 111a as amended by 2012 PA 472, section 111i as added by

 

2000 PA 187, section 111k as added by 2004 PA 55, section 111l as

 

added by 2006 PA 286, sections 112b, 112c, and 112e as amended by

 

2006 PA 674, sections 112g, 112i, and 112j as added by 2007 PA 74,

 

section 115f as amended by 2014 PA 308, section 115o as added and

 

sections 116 and 117c as amended by 1998 PA 516, and section 115s

 

as added by 2002 PA 648, and by adding section 1d; and to repeal

 

acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to protect the welfare of the people of this state; to

 

provide general assistance, hospitalization, infirmary, and medical

 

care to poor or unfortunate persons; to provide for compliance by

 

this state with the social security act; to provide protection,

 

welfare and services to aged persons, dependent children, the

 

blind, and the permanently and totally disabled; to administer

 

programs and services for the prevention and treatment of

 

delinquency, dependency, and neglect of children; to create a state

 

department of social health and human services; to prescribe the

 

powers and duties of the department; to provide for the interstate

 

and intercounty transfer of dependents; to create county and

 

district departments; of social services; to create within certain

 

county departments, bureaus, of social aid and certain divisions,

 

and offices; thereunder; to prescribe the powers and duties of the

 

departments, bureaus, and officers; to provide for appeals in

 

certain cases; to prescribe the powers and duties of the state

 


department with respect to county and district departments; to

 

prescribe certain duties of certain other state departments,

 

officers, and agencies; to make an appropriation; to prescribe

 

penalties for the violation of the provisions of this act; and to

 

repeal certain parts of this act on specific dates.

 

     Sec. 1. (1) A department of state government is created that

 

shall be known and designated as the family independence agency,

 

and that shall possess department of health and human services,

 

which department possesses the powers granted and perform performs

 

the duties imposed in this act. The family independence agency

 

department shall consist of a director and the assistants and

 

employees appointed or employed in the family independence

 

agency.department.

 

     (2) The family independence agency department is responsible

 

for the operation and supervision of the institutions and

 

facilities established within the family independence

 

agency.department. The institutions and facilities may be operated

 

on a coeducational basis. The family independence agency department

 

shall make and enforce its own rules, not inconsistent with the law

 

governing the institutions or facilities under its control,

 

respecting the conduct of the institutions and facilities,

 

discipline in the institutions and facilities, the care of

 

property, and the welfare of the residents.

 

     (3) The family independence agency shall be, department is, in

 

all respects, the legal successor to the powers, duties and

 

responsibilities of the juvenile institute commission.

 

     (4) A reference in this act to "the state department of social

 


services", "the state department", or "department" means the family

 

independence agency.

 

     Sec. 1c. (1) A person employed by the department of social

 

services at the W.J. Maxey campus in Whitmore lake or any of its

 

affiliated facilities, at the Adrian training school in Adrian, the

 

Arbor Heights center in Ann Arbor, Camp Nokomis in Prudenville, at

 

Camp Shawano in Grayling, or a similar facility under the

 

jurisdiction of the department established or funded by the state

 

after the effective date of this section, May 4, 1978, who is

 

injured during the course of his or her employment as a result of

 

an assault by a recipient of social services shall receive his or

 

her full wages by the state department until worker's compensation

 

benefits begin and then shall receive in addition to worker's

 

compensation benefits a supplement from the state department which

 

that together with the worker's compensation benefits shall equal

 

but not exceed the weekly net wage of the employee at the time of

 

the injury. This supplement shall only apply applies while the

 

person is on the state department's payroll and is receiving

 

worker's compensation benefits and shall include includes an

 

employee who is currently receiving worker's compensation due to an

 

injury covered by this section. Fringe benefits normally received

 

by an employee shall be in effect during the time the employee

 

receives the supplement provided by this section from the

 

department.

 

     (2) Subsection (1) shall apply applies whether the employee

 

was directly assaulted or was assaulted as a result of aiding

 

another employee in subduing a recipient.

 


     Sec. 1d. As used in this act:

 

     (a) "Administrative procedures act of 1969" means the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (b) "Department" or "state department" means the department of

 

health and human services.

 

     (c) "Director" means the director of the department.

 

     (d) "Federal poverty guidelines" means the poverty guidelines

 

published annually in the Federal Register by the United States

 

Department of Health and Human Services under its authority to

 

revise the poverty line under section 673(2) of subtitle B of title

 

VI of the omnibus budget reconciliation act of 1981, 42 USC 9902.

 

     (e) "Medicaid" means the program of medical assistance

 

administered by the state under section 105.

 

     (f) "Public health code" means the public health code, 1978 PA

 

368, MCL 333.1101 to 333.25211.

 

     (g) "Social security act" means the federal social security

 

act, 42 USC 301 to 1397mm.

 

     (h) "Title XVI" means title XVI of the social security act, 42

 

USC 1381 to 1383f.

 

     (i) "Title XVIII" means title XVIII of the social security

 

act, 42 USC 1395 to 1395kkk-1.

 

     (j) "Title XIX" means title XIX of the social security act, 42

 

USC 1396 to 1396w-5.

 

     (k) "Title XX" means title XX of the social security act, 42

 

USC 1397 to 1397m-5.

 

     Sec. 3. (1) The director of the family independence agency

 


shall be appointed by the governor with the advice and consent of

 

the senate, and shall serve at the pleasure of the governor. The

 

director shall be the executive officer of the family independence

 

agency department and shall be responsible to the governor for

 

performing his or her duties.

 

     (2) The director shall receive such a salary as shall be

 

appropriated by the legislature, and shall receive actual and

 

necessary traveling and other expenses incurred in the discharge of

 

his or her official duties, to be paid in the same manner as

 

salaries and expenses of other state employees are paid.

 

     (3) Whenever reference is made in this act to the "bureau of

 

social security", or the "state bureau", reference shall be deemed

 

to be intended to be made to the family independence agency.

 

     (4) Whenever reference is made in this act to the "supervisor

 

of the state bureau", reference shall be deemed to be made to the

 

director of the family independence agency.

 

     (5) For counties having a population of 600,000 or less and

 

for all cities regardless of population, whenever reference is made

 

in this act to the "county bureau of social aid", reference shall

 

be deemed to be made to the county or city family independence

 

agency.

 

     Sec. 6. (1) The family independence agency department may

 

promulgate all rules necessary or desirable for the administration

 

of programs under this act. Rules shall be promulgated under the

 

administrative procedures act of 1969. , Act No. 306 of the Public

 

Acts of 1969, being sections 24.201 to 24.328 of the Michigan

 

Compiled Laws. Beginning 2 years after the effective date of

 


subsection (2), if the Michigan supreme court rules that sections

 

45 and 46 of Act No. 306 of the Public Acts of 1969, being sections

 

24.245 and 24.246 of the Michigan Compiled Laws, are

 

unconstitutional and a statute requiring legislative review of

 

administrative rules is not enacted within 90 days after the

 

Michigan supreme court ruling, this subsection does not apply.

 

     (2) The family independence agency department may develop

 

regulations to implement the goals and principles of assistance

 

programs created under this act, including all standards and

 

policies related to applicants and recipients that are necessary or

 

desirable to administer the programs. These regulations are

 

effective and binding on all those affected by the assistance

 

programs. Except for policies described in subsections (3) and (4),

 

regulations described in this subsection, setting standards and

 

policies necessary or desirable to administer the programs, are

 

exempt until the expiration of 12 months after the effective date

 

of this subsection from the rule promulgation requirements of the

 

administrative procedures act of 1969, Act No. 306 of the Public

 

Acts of 1969, being sections 24.201 to 24.328 of the Michigan

 

Compiled Laws. Upon the expiration of 12 months after the effective

 

date of this subsection, regulations described in this subsection

 

are not effective and binding unless processed as emergency rules

 

under section 48 of Act No. 306 of the Public Acts of 1969, being

 

section 24.248 of the Michigan Compiled Laws, or promulgated in

 

accordance with Act No. 306 of the Public Acts of 1969.

 

     (3) The family independence agency department may develop

 

policies to establish income and asset limits, types of income and

 


assets to be considered for eligibility, and payment standards for

 

assistance programs administered under this act. Policies developed

 

under this subsection are effective and binding on all those

 

affected by the assistance programs. Policies described in this

 

subsection are exempt from the rule promulgation requirements of

 

Act No. 306 of the Public Acts the administrative procedures act of

 

1969. Not less than 30 days before policies developed under this

 

subsection are implemented, they shall be submitted to the senate

 

and house standing committees and appropriation subcommittees with

 

oversight of human services.

 

     (4) The family independence agency department may develop

 

policies to implement requirements that are mandated by federal

 

statute or regulations as a condition of receipt of federal funds.

 

Policies developed under this subsection are effective and binding

 

on all those affected by the programs. Policies described in this

 

subsection are exempt from the rule promulgation requirements of

 

Act No. 306 of the Public Acts the administrative procedures act of

 

1969.

 

     (5) All rules, regulations, and policies established by the

 

family independence agency department shall be in writing, shall be

 

provided to the legislature, and shall be made available for

 

inspection by to any member of the public at all offices of the

 

family independence agency department during regular business

 

hours.

 

     (6) Until the expiration of 12 months after the effective date

 

of this subsection, a bipartisan task force of legislators

 

appointed in the same manner as members are appointed to standing

 


committees of the legislature shall meet regularly with the family

 

independence agency to review proposed policies and regulations for

 

the family independence program. Meetings of the bipartisan task

 

force are subject to the open meetings act, Act No. 267 of the

 

Public Acts of 1976, being sections 15.261 to 15.275 of the

 

Michigan Compiled Laws.

 

     (6) (7) Subsection (2) does not apply to standards and

 

policies related to the providers of services which that have a

 

written contractual relationship or are an enrolled medicaid

 

Medicaid provider with the family independence agency.department.

 

     Sec. 10. (1) The family independence agency department is

 

designated as the state agency to cooperate with the federal

 

government in the administration of the social security act. ,

 

chapter 531, 49 Stat. 620. The family independence agency

 

department may administer the food stamp act of 1977, Public Law

 

88-525, 7 U.S.C. 2011 to 2012 and 2013 to 2032, 2008, 7 USC 2011 to

 

2036c, and any other law which that the governor or the legislature

 

of the state may designate. The family independence agency

 

department may cooperate with the proper departments or agencies of

 

the federal government and with all other departments or agencies

 

of the state and local governments, and supervise the

 

administration by local governmental departments or agencies of any

 

plans established by the state in cooperation with the federal

 

government under these provisions and the rules promulgated

 

pursuant thereto. under these provisions. The director shall make

 

reports, in such the form and containing such the information,

 

required under the social security act, and shall comply with the

 


requirements made to assure ensure the correctness and verification

 

of the reports.

 

     (2) The director, with the approval of the governor, may

 

cooperate with the federal government, or any of its agencies or

 

instrumentalities, in handling the welfare and relief problems and

 

needs of the people of this state, to the extent authorized by the

 

laws of this state.

 

     (3) The director may adopt any plan required or desirable to

 

participate in the distribution of federal moneys money or the

 

assistance of the federal government, and may accept on behalf of

 

the state any allotment of federal moneys. money. The state

 

treasurer may forward state moneys money to the federal social

 

security administration Social Security Administration for federal

 

administration of the state supplemental program of the social

 

security act in accordance with an agreement pertaining thereto. to

 

administration of that program. The director may promulgate rules

 

and the director or his or her designee may enter into any

 

agreement or agreements with federal, state, or local units of

 

government or private agencies necessary to enable the state or

 

such those units to participate in any plan the director deems

 

considers desirable for the welfare of the people of this state.

 

     (4) For the purpose of assuring ensuring full federal approval

 

of the activities of the department and local departments with

 

respect to the operation of a plan, the director may do all things

 

reasonable and proper to conform with federal requirements

 

pertaining to methods and standards of administration. In making

 

rules with respect thereto, to that, there shall be included such

 


methods and standards of administration for the conduct of the work

 

of local units, including the necessary supervision thereof, of the

 

local units, as may be required for the receipt of aid from the

 

federal government.

 

     Sec. 11a. (1) A person who is employed, licensed, registered,

 

or certified to provide health care, educational, social welfare,

 

mental health, or other human services; an employee of an agency

 

licensed to provide health care, educational, social welfare,

 

mental health, or other human services; a law enforcement officer;

 

or an employee of the office of the county medical examiner who

 

suspects or has reasonable cause to believe that an adult has been

 

abused, neglected, or exploited shall make immediately, by

 

telephone or otherwise, an oral report to the county department of

 

social services of the county in which the abuse, neglect, or

 

exploitation is suspected of having or believed to have occurred.

 

After making the oral report, the reporting person may file a

 

written report with the county department. A person described in

 

this subsection who is also required to make a report pursuant to

 

under section 21771 of the public health code, Act No. 368 of the

 

Public Acts of 1978, as amended, being section 333.21771 of the

 

Michigan Compiled Laws MCL 333.21771, and who makes that report is

 

not required to make a duplicate report to the county department of

 

social services under this section.

 

     (2) A report made by a physician or other licensed health

 

professional pursuant to under subsection (1) shall is not be

 

considered a violation of any legally recognized privileged

 

communication or a violation of article 15 of the public health

 


code, Act No. 368 of the Public Acts of 1978, being sections

 

333.16101 to 333.18838 of the Michigan Compiled Laws.MCL 333.16101

 

to 333.18838.

 

     (3) In addition to those persons required to make an oral

 

report under subsection (1), any person who suspects that an adult

 

has been abused, neglected, or exploited may make a report to the

 

county department of social services of the county in which the

 

abuse, neglect, or exploitation is suspected of having occurred.

 

     (4) A report made under this section shall contain the name of

 

the adult and a description of the abuse, neglect, or exploitation.

 

If possible, the report shall contain the adult's age and the names

 

and addresses of the adult's guardian or next of kin, and of the

 

persons with whom the adult resides, including their relationship

 

to the adult. The report shall contain other information available

 

to the reporting person that may establish the cause of the abuse,

 

neglect, or exploitation and the manner in which the abuse,

 

neglect, or exploitation occurred or is occurring. The county

 

department shall reduce to put in writing the information provided

 

in an oral report received pursuant to under this section.

 

     (5) The county department shall report to a police agency any

 

criminal activity that it believes to be occurring, upon receipt of

 

the oral report.

 

     (6) This section shall does not be construed as limiting limit

 

the responsibilities of the police agency of a local unit of

 

government to enforce the laws of this state or as precluding

 

preclude the police agency from reporting and investigating, as

 

appropriate, alleged criminal conduct.

 


     Sec. 11b. (1) Within 24 hours after receiving a report made or

 

information obtained under section 11a, the county department shall

 

commence an investigation to determine whether the person suspected

 

of being or believed to be abused, neglected, or exploited is an

 

adult in need of protective services. A reasonable belief on the

 

part of the county department that the person is an adult in need

 

of protective services is a sufficient basis for investigation. If

 

an investigation pertains to an adult residing in an adult foster

 

care facility licensed by the department of human services,

 

licensing and regulatory affairs, the county department shall

 

provide the adult foster care licensee with the substance of the

 

abuse or neglect allegations as soon as practicable after the

 

beginning of the investigation. The licensee shall have the

 

opportunity to respond to the allegations, and the response shall

 

be included in the record.

 

     (2) Upon a request by the county department, local law

 

enforcement officers shall cooperate with the county department in

 

an investigation of suspected abuse, neglect, or exploitation.

 

However, the The investigation required by this section shall is

 

not be in place of an investigation by the appropriate police

 

agency regarding suspected criminal conduct arising from the

 

suspected abuse, neglect, or exploitation.

 

     (3) The investigation shall include a determination of the

 

nature, extent, and cause of the abuse, neglect, or exploitation;

 

examination of evidence; identification, if possible, of the person

 

responsible for the abuse, neglect, or exploitation; the names and

 

conditions of other adults in the place of residence; an evaluation

 


of the persons responsible for the care of the adult, if

 

appropriate; the environment of the residence; the relationship of

 

the adult to the person responsible for the adult's care; an

 

evaluation as to whether or not the adult would consent to

 

receiving protective services; and other pertinent data.

 

     (4) The investigation shall include an in-person interview

 

with the adult. The county department shall conduct the interview

 

by means of a personal visit with the adult in the adult's dwelling

 

or in the office of the county department. In attempting to conduct

 

a personal visit with the adult in the adult's dwelling, if

 

admission to the dwelling is denied, the county department may seek

 

to obtain a search warrant as provided in 1966 PA 189, MCL 780.651

 

to 780.659.

 

     (5) The investigation may include a medical, psychological,

 

social, vocational, and educational evaluation and review.

 

     (6) In the course of an investigation, the county department

 

shall determine if the adult is or was abused, neglected, or

 

exploited. The county department shall make available to the adult

 

the appropriate and least restrictive protective services, directly

 

or through the purchase of services from other agencies and

 

professions, and shall take necessary action to safeguard and

 

enhance the welfare of the adult, if possible. The county

 

department also shall collaborate with law enforcement officers,

 

courts of competent jurisdiction, and appropriate state and

 

community agencies providing human services, which services are

 

provided in relation to preventing, identifying, and treating adult

 

abuse, neglect, or exploitation. If the abuse, neglect, or

 


exploitation involves substance abuse, the county department shall

 

collaborate with the local substance abuse coordinating agency

 

department-designated community mental health entity as designated

 

by the office of substance abuse services in the department of

 

community health for a referral for substance abuse use disorder

 

services. The county department may petition for a finding of

 

incapacity and appointment of a guardian or temporary guardian as

 

provided in section 5303 or 5312 of the estates and protected

 

individuals code, 1998 PA 386, MCL 700.5303 and 700.5312, and may

 

petition for the appointment of a conservator as provided in

 

section 5401 of the estates and protected individuals code, 1998 PA

 

386, MCL 700.5401, for a vulnerable adult.

 

     (7) Upon completion of an investigation, the county department

 

shall prepare a written report of the investigation and its

 

findings. A copy of this written report shall be forwarded to the

 

state department of human services upon the state department's

 

request. of the department of human services.

 

     (8) The county department may provide a copy of the written

 

report to the prosecuting attorney for the county in which the

 

adult suspected of being or believed to be abused, neglected, or

 

exploited resides or is found.

 

     (9) A representative from the department, of human services,

 

the department of state police, the department of the attorney

 

general, and the office of services to the aging, and an individual

 

who is a representative of long-term care providers and is

 

designated by the state attorney general, shall meet and develop a

 

state model protocol for the investigation of vulnerable adult

 


abuse cases. This state model protocol shall be developed not more

 

than 1 year after the effective date of the amendatory act that

 

added this subsection. later than June 19, 2013. A county

 

prosecuting attorney, in cooperation with the local county

 

department and local law enforcement agencies, may adopt a local

 

protocol for the investigation of vulnerable adult abuse cases that

 

is based on the state model protocol.

 

     Sec. 12. All funds in the hands of held by the state treasurer

 

or on deposit to the credit of any of the departments, boards,

 

commissions, and offices which that are hereby abolished shall be

 

transferred to and are hereby appropriated for the state

 

department, of social welfare, and shall be disbursed on its order.

 

     Sec. 13. The commission department is hereby authorized,

 

subject to the approval of the attorney general, to enter into

 

reciprocal agreements with corresponding state agencies of other

 

states, regarding the interstate transportation of indigent

 

persons, and to arrange with the proper officials in this state for

 

the acceptance, transfer, and support of persons receiving any form

 

of public aid or relief in other states in accordance with the

 

terms of such a reciprocal agreement. : Provided, That this This

 

state shall not, nor shall any county or any county department of

 

social welfare, in this state, be committed to the support of

 

persons whom who the commission department determines are not

 

entitled to public support under the laws of this state. This

 

section shall be so interpreted and construed as to effectuate its

 

general purpose to make uniform laws of such states as that enact

 

similar legislation.

 


     Sec. 14. (1) The state department has all of the following

 

additional powers and duties:

 

     (a) To allocate and distribute to the county and district

 

departments, of social services, as provided in section 18, and in

 

accordance with the rules promulgated by the director, money

 

appropriated by the legislature, or received from the federal

 

government for the relief of destitution or unemployment within the

 

state , or a political subdivision of the state.

 

     (b) To distribute, as provided in this act, subject to federal

 

rules and regulations, and in accordance with the rules promulgated

 

by the director, money appropriated by the legislature, or received

 

from the federal government for the granting of aid to dependent

 

children temporary assistance for needy families and supplemental

 

security income; for medical, dental, optometric, nursing,

 

pharmaceutical, and burial relief; for services furnished by

 

professions under the public health code; , Act No. 368 of the

 

Public Acts of 1978, as amended, being sections 333.1101 to

 

333.25211 of the Michigan Compiled Laws; and for other relief or

 

welfare services provided by law.

 

     (c) To operate a day child care program in rural and urban

 

areas and assist in the development of sound programs and standards

 

for day child care by public organizations throughout the state. If

 

the director , commissioner, or those officials responsible for

 

enforcing a state or local building code determine that a dwelling

 

unit fails to meet the standards of that code through fault of the

 

landlord, the department may refuse to pay public assistance grants

 

authorized under this act for payment of rent on the dwelling unit.

 


A written notice of the refusal, stating the grounds for the

 

refusal and listing the defects to be corrected, shall be mailed

 

immediately to the landlord by certified mail. During the period of

 

refusal, the landlord may bring an action against the department in

 

the nature of quo warranto, but may not maintain an action for the

 

rent or possession of the premises. If the defects have been

 

corrected or if the department's refusal to pay is determined by a

 

court of competent jurisdiction to be wrongful, the department

 

shall pay the rent that is owed, but not more than the amount of

 

the grants withheld.

 

     (d) (g) To assist other departments, agencies, and

 

institutions of the federal and state governments, when so

 

requested, in performing services in conformity with the purposes

 

of this act. The director shall act as certifying agent for federal

 

departments or agencies in determining eligibility of applicants

 

for aid or service rendered by those departments or agencies. The

 

rules of the state departments under this subsection shall be are

 

binding upon the county departments. of social services.

 

     (e) (h) To collect and compile statistics, make special fact-

 

finding studies, and publish reports in reference to the field of

 

welfare, including a biennial report as provided in section 17.

 

     (f) (i) To arbitrate and decide disputed or contested claims

 

between 2 or more counties relative to the settlement or domicile

 

of a person or family given or in need of any form of public aid or

 

relief, and to determine and declare the county of settlement or

 

domicile in any instance when so requested or on the department's

 

own volition. All decisions and determinations made under this

 


subdivision shall be are binding upon the county departments. of

 

social services.

 

     (g) (j) To administer or supervise relief or welfare functions

 

vested in the department by law, and to provide for the progressive

 

codification of the laws governing relief and welfare problems.

 

     (h) (k) To inspect county infirmaries and places of detention

 

for juveniles for the purpose of obtaining facts pertaining to the

 

usefulness and proper management of the infirmaries and places of

 

detention, and of promoting proper, efficient, and humane

 

administration of those infirmaries and places of detention. A

 

reasonable order of the department fixing minimum standards of

 

sanitation, fire protection, food, and comfortable lodging may be

 

enforced, through mandamus or injunction in the circuit court for

 

the county where the county infirmary or place of detention for the

 

juveniles is located, through proper proceedings instituted by the

 

attorney general on behalf of the department. The burden of proof

 

shall be is on the department to establish the reasonableness of

 

the order.

 

     (i) (l) To promulgate by rules a recommended schedule of

 

payment for care and maintenance, pursuant according to the

 

administrative procedures act of 1969, Act No. 306 of the Public

 

Acts of 1969, as amended, being sections 24.201 to 24.328 of the

 

Michigan Compiled Laws, to be used, as provided by law, in

 

determining the amount of payment to be made by patients, their

 

guardians, or relatives who are liable for the care and maintenance

 

of persons entitled to treatment under the mental health code, Act

 

No. 258 of the Public Acts of 1974, as amended, being sections

 


330.1001 to 330.2106 of the Michigan Compiled Laws. 1974 PA 258,

 

MCL 330.1001 to 330.2106. The department in promulgating the

 

schedule may give consideration to the person's income, the number

 

of other persons he or she is obligated to support, his or her

 

estate, medical and other necessary expenses, and other relevant

 

matters.

 

     (j) (n) To provide or contract for legal services for persons

 

receiving assistance under this act in guardianship and support

 

proceedings.

 

     (k) (p) To provide services to adults and aging persons ,

 

which that shall include:

 

     (i) Services for the blind in accordance with the

 

rehabilitation act of 1973, 29 U.S.C. USC 701 to 796i.796l.

 

     (ii) Services authorized in title XX of the social security

 

act, 42 U.S.C. USC 1397 to 1397e.1397h.

 

     (l) (q) To license and regulate child care organizations and

 

programs as described in Act No. 116 of the Public Acts of 1973, as

 

amended, being sections 722.111 to 722.128 of the Michigan Compiled

 

Laws.1973 PA 116, MCL 722.111 to 722.128.

 

     (2) Other sections of this act notwithstanding, all powers and

 

duties of the county social services boards to develop, implement,

 

and administer a program of general public relief, are transferred

 

to the state department effective beginning with the first county

 

fiscal year following December 1, 1975. However, in In a county

 

that operates a patient care management system pursuant to under

 

section 66j, the county social services board may change the

 

eligibility standards and coverages for medical care for persons

 


eligible for services under a patient care management system

 

subject to the consent of the county board of commissioners, or, in

 

a charter county, subject to the consent of the county board of

 

commissioners and the county executive.

 

     Sec. 14b. The director, and under his or her supervision,

 

county, city, and district departments, of social welfare, may

 

provide written or oral notice to recipients of public assistance

 

of the availability of advice and treatment in family planning.

 

Such The notice shall include a statement that receipt of public

 

assistance is in no way dependent upon a request or nonrequest for

 

family planning services. No effort shall be made to suggest or

 

persuade recipients to request or not request family planning

 

services. The director, and under his or her supervision, county,

 

city, and district departments, of social welfare may make

 

available upon request of recipients of public assistance advice

 

and treatment in family planning by referral upon request of the

 

recipient to a licensed medical doctor, licensed osteopathic

 

physician, public agency, or, on a contractual basis, to a private

 

agency of the recipient's choice. Necessary drugs and recognized

 

medical appliances for use in family planning may also be made

 

available through licensed pharmacists upon prescription issued by

 

a licensed physician. Such The family planning services shall be

 

made available in accordance with rules and regulations promulgated

 

by the director under law.

 

     Sec. 14f. Subject to section 5 of article XI of the state

 

constitution of 1963, the family independence agency department may

 

contract with a private individual or agency to administer a

 


program created under this act or to perform a duty of the family

 

independence agency department under this act.

 

     Sec. 14g. In order to achieve more efficient and effective use

 

of funds for public assistance, to reduce dependency, or to improve

 

the living conditions and increase the incomes of individuals

 

receiving public assistance, the family independence agency

 

department may establish and conduct pilot projects in 1 or more

 

county or district offices. The family independence agency

 

department may apply different policies in the pilot programs than

 

it applies in the rest of the county or district offices, and may

 

conduct the pilot projects as long as is necessary to provide a

 

reasonable test of the policy being evaluated. Pilot projects shall

 

be consistent with principles and goals set forth in this act.

 

     Sec. 14h. (1) The family independence agency department shall

 

use an electronic benefit transfer system for food stamp

 

distribution of supplemental nutrition assistance program benefits.

 

     (2) To the extent that rules or parts of rules promulgated

 

under this act conflict with the provisions of this section, the

 

provisions of this section supersede those rules or parts of rules.

 

     (3) The following rules are rescinded:

 

     (a) R 400.3002 of the Michigan administrative

 

code.Administrative Code.

 

     (b) R 400.3003 of the Michigan administrative code.

 

Administrative Code.

 

     (c) R 400.3004 of the Michigan administrative code.

 

Administrative Code.

 

     (d) R 400.3007 of the Michigan administrative code.

 


Administrative Code.

 

     (e) R 400.3008 of the Michigan administrative code.

 

Administrative Code.

 

     (f) R 400.3012 of the Michigan administrative code.

 

Administrative Code.

 

     (g) R 400.3013 of the Michigan administrative code.

 

Administrative Code.

 

     (h) R 400.3125 of the Michigan administrative code.

 

Administrative Code.

 

     Sec. 17. (1) The family independence agency department shall

 

establish program goals consistent with section 57a. and shall

 

report these goals to the governor and the legislature within 6

 

months after the effective date of this subsection.

 

     (2) The family independence agency shall prepare and on or

 

before the fifteenth day of December in each even-numbered year

 

make a report to the governor, setting forth the operation of the

 

family independence agency department during the preceding fiscal

 

biennium of the state, reporting on progress toward the goals

 

established under subsection (1), and containing any findings and

 

recommendations of the family independence agency. department. The

 

report shall also be submitted to the legislature.

 

     Sec. 18d. The county department, of social welfare, upon

 

authorization of the county board of supervisors, may operate an

 

emergency receiving facility for the temporary care of homeless,

 

dependent, or neglected children for whom such that care is

 

necessary, pending foster care placement or restoration to their

 

own homes or any other plan deemed considered best for the health,

 


safety, and welfare of such the children. The county department

 

operating an emergency receiving facility shall maintain the

 

standards of the state department established in respect to places

 

of detention for juveniles under section 14. of this act.

 

     Sec. 18e. (1) The family independence agency department shall

 

establish and administer a state plan for foster care according to

 

the provisions of part E of title IV of the social security act, 42

 

USC 670 to 679b. 679c. The state plan shall include programs and

 

services that promote, implement, and support foster care focus

 

groups. When developing and annually reviewing the state plans to

 

carry out foster care policy and services, the family independence

 

agency department shall utilize input from locally-based locally

 

based foster care focus groups.

 

     (2) Foster care focus groups shall be composed of youth in

 

foster care or independent living programs, youth previously in

 

foster care, foster parents or relatives caring for youth in foster

 

care, and adults previously in foster care or independent living

 

programs. The majority of the focus group consists of youth in

 

foster care or independent living programs.

 

     (3) In order to inform the legislature, the executive office,

 

the judiciary, and the public of the needs and interests of youth

 

in foster care, foster parents, and relatives caring for youth in

 

foster care, the foster care focus groups are encouraged to be

 

established in both of the following:

 

     (a) Licensed child placing agencies with which the family

 

independence agency department contracts for youth foster care

 

services that have an annual average daily foster care caseload of

 


150 or more cases or that derives derive more than 50% of its their

 

operating budget from contracts with the family independence agency

 

department for youth foster care services.

 

     (b) Counties in which the family independence agency

 

department has an annual average daily foster care caseload of 150

 

or more cases.

 

     (4) State and federal funds appropriated to implement state

 

plans in compliance with part E of title IV of the social security

 

act, 42 USC 670 to 679b 679c, and state laws may be used to meet

 

the provisions of this section.

 

     Sec. 19. The powers and duties vested by law in the board of

 

corrections and charities and transferred to the state welfare

 

commission, in the state welfare department, in the director of the

 

state welfare department, in the state welfare commission and in

 

the state institute commission as relating to the Michigan

 

employment institution for the blind at Saginaw or a successor

 

agency, are hereby transferred to and vested in the state

 

department. of social welfare herein created. Immediately on the

 

taking effect of this act, the A reference made in any law of this

 

state to the departments, boards, commissions, and officers whose

 

powers and duties are hereby transferred shall be abolished, and,

 

whenever reference thereto is made in any law of the state,

 

reference shall be deemed to be intended to be made under this

 

section is considered to be a reference to the state department. of

 

social welfare.

 

     Sec. 20. All of the powers and duties prescribed in any law of

 

this state with respect to any subject matter vested in the state

 


department of social welfare shall be are transferred to and be

 

vested in said the department.

 

     Sec. 24. The state department, for programs financed in whole

 

or in part with federal funds, may make such rules as are necessary

 

for guiding and regulating the county departments. of social

 

services. The state department shall prepare and have printed all

 

blanks and books of record used in the county departments, of

 

social services, to the end that a uniform system shall be employed

 

in all counties. The state department shall establish eligibility

 

and financial standards for all forms of general public relief and

 

burial. Differential area standards may be established to

 

correspond to the characteristics of the community. Recommended

 

standards for general relief and burial shall annually be submitted

 

to the department by the Michigan county social services

 

association. County Social Services Association. A county social

 

services board which that is dissatisfied with general relief and

 

burial standards established for its county shall, within 30 days

 

after notification of those standards, be given the opportunity to

 

meet with the state director to review the determination.

 

Eligibility and financial standards shall not be affected by a

 

county decision to supplement individual payments to recipients of

 

general public relief.

 

     Sec. 25. An applicant for assistance or a third party acting

 

responsibly in his or her behalf shall deliver his or her

 

application in writing to the county department of social services

 

in the manner and form prescribed by the state department. All

 

statements in the application shall be over the signature or

 


witnessed mark of the applicant or such the third party and shall

 

include a declaration under the penalties of perjury that the

 

application has been examined by or read to the applicant or third

 

party, and, to the best of the applicant's or third party's

 

knowledge, that all facts are true in each material point and are

 

complete. ; and the The applicant or third party shall empower the

 

county department of social services and the state department to

 

obtain all necessary information concerning the recipient of social

 

services for whom the application is made and his or her resources

 

in order to determine the eligibility of the applicant. No

 

question, inquiry, or recommendation shall relate to the political

 

opinions or religious affiliations of any person, and no grant or

 

denial of aid under this act shall be in any manner affected or

 

influenced by such those opinions or affiliations.

 

     Sec. 32. (1) Subject to section 14g, a person qualified for

 

and receiving assistance under this act in any county in this state

 

who moves or is taken to another county in this state may continue

 

to receive assistance in the county to which the person has moved

 

or is taken, and the county family independence agency department

 

of the county from which the person has moved shall transfer all

 

necessary records relating to the person to the county family

 

independence agency department of the county to which the person

 

has moved.

 

     (2) For purposes of the family independence program and

 

medical assistance under this act, a resident of this state is a

 

person who is living in this state voluntarily with the intention

 

of making his or her home in this state and not for a temporary

 


purpose and who is not receiving assistance from another state. For

 

purposes of medical assistance, a resident of this state also

 

includes a person and the dependents of a person who, at the time

 

of application, is living in this state, is not receiving

 

assistance from another state, and entered the state with a job

 

commitment or seeking employment in this state. For purposes of

 

determining eligibility to receive assistance under this act,

 

excluding recipients of supplemental security income under title

 

XVI of the social security act, chapter 531, 49 Stat. 620, 42

 

U.S.C. USC 1381 to 1382, and 1383 to 1383d 1385, or state

 

supplementation under this act, the continued absence of a

 

recipient from this state, unless the absence is temporary or

 

intent to return is established as provided by applicable federal

 

regulations, shall constitute is abandonment by the recipient of

 

residence in this state. Any existing rule that has been

 

promulgated under this act that defines temporary absence for the

 

purpose of eligibility for family independence program assistance

 

or medical assistance, or that provides for continuation of

 

eligibility if the absence is not temporary, is not applicable.

 

     (3) For purposes of medical assistance eligibility the

 

requirements in subsection (2) apply except as otherwise provided

 

in federal regulations for the administration of the medical

 

assistance program under title XIX of the social security act, 42

 

U.S.C. USC 1396 to 1396g and 1396i to 1396v.1396w-5.

 

     (4) The residence of a husband shall not be 1 spouse is not

 

considered to be the residence of the wife other spouse if they are

 

living separate and apart. If a husband and wife the spouses are

 


living separate and apart, each may have a separate residence

 

dependent upon proof of the fact and not upon legal presumption.

 

This subsection shall does not be construed to prohibit a person

 

from acquiring or retaining a legal residence.

 

     Sec. 35. Notwithstanding section 2(6), records Records

 

relating to categorical assistance, including medical assistance,

 

shall be are confidential and shall are not be open to inspection

 

except as prescribed in section 64. The state department of social

 

services may promulgate and enforce rules for the use of the

 

records as may be necessary for purposes related to federal, state,

 

or local public assistance, pursuant according to Act No. 306 of

 

the Public Acts of 1969, as amended.the administrative procedures

 

act of 1969.

 

     Sec. 36. When assistance is given to any person under the

 

provisions of this act with respect to old age assistance, aid to

 

dependent children temporary assistance for needy families, aid to

 

the blind, and aid to the permanently and totally disabled, the

 

county department of social welfare shall comply with all

 

requirements of the state department.

 

     Sec. 37. Whenever an application is made for assistance, the

 

county department of social welfare shall make a thorough

 

investigation and report to the state department in the manner

 

prescribed by it, giving its recommendation of the amount of

 

assistance, if any, to be allowed. If the application be is

 

disallowed, or if the applicant is dissatisfied with the amount of

 

assistance he or she is receiving, or is to receive, he or she may

 

demand, in writing, a hearing of his or her case, as provided for

 


in section 9 or section 65. The applicant or recipient may appeal

 

to the circuit court of the county in which he or she resides,

 

which court shall have power to review questions of law involved in

 

any final decision or determination of the state department. Said

 

The petition shall be filed within 30 days of the receipt of such

 

the decision or determination. The petitioner shall is not be

 

required to furnish any bond and costs shall not be taxed against

 

him or her. If the court shall decide decides in favor of the

 

petitioner, assistance shall be paid from the first day of the

 

month following the date of the application therefor or of the date

 

of the original application for the relief in question.

 

     Sec. 38. Upon receipt of the recommendations of the county

 

department, of social services, the state department shall

 

determine the amount of categorical assistance to be allowed

 

monthly, if any, and the date for which the first payment shall be

 

made, to be payable as the state department shall decide. decides.

 

If a person has been authorized to receive a payment in respect to

 

his or her requirements for any month for categorical assistance,

 

no assistance shall be allowed nor shall eligibility exist for him

 

or her for that month for any other categorical assistance. The

 

state department shall cause to be made due record of all

 

authorizations of assistance with the address of the recipient and

 

shall furnish the county department of social services with a copy

 

thereof. of the record. Whenever payment of assistance is made,

 

warrants shall be drawn upon the appropriation made, therefor, or

 

other moneys money available for these forms of assistance, and

 

delivered to the recipients, or third parties acting responsibly in

 


their behalf or the providers of goods or services authorized by

 

the state department in accordance with such the regulations as may

 

be made by the state department.

 

     Sec. 41. If at any time after approval of a grant of

 

assistance the recipient, or the spouse of the recipient, becomes

 

possessed of any property or income of which the county department

 

of social welfare has no knowledge, it shall be the duty of the

 

recipient to shall notify said the county department, of social

 

welfare which shall report and make recommendations to the state

 

department, which in turn may cancel, suspend, or alter the

 

certificate of allowance.

 

     Sec. 43. All assistance granted under this act shall be

 

reconsidered from time to time, or as frequently as may be required

 

by the state department requires. After further investigation by

 

the county department, of social welfare, the amount and manner of

 

giving assistance may be changed, or the assistance may be

 

withdrawn if the state department finds that the recipient's

 

circumstances have changed sufficiently to warrant such that

 

action. It shall be within the power of the The state department

 

may, at any time, to cancel and revoke assistance for cause. , and

 

it The state department may, for cause, suspend payments for

 

assistance as it may deem considers proper, subject to appeal and

 

hearing by the recipient as provided for in section 9. The

 

provisions of this section shall be are mandatory only with respect

 

to old age assistance, aid to dependent children , temporary

 

assistance for needy families, aid to the blind, aid to the

 

permanently and totally disabled, or any other function financed in

 


whole or in part by federal funds.

 

     Sec. 43b. An office of inspector general is established as a

 

criminal justice agency in the family independence agency.

 

department. The primary duty of the inspector general is to

 

investigate cases of alleged fraud within the department. The

 

inspector general shall also perform the following activities:

 

     (a) Investigate fraud, waste, and abuse in the programs

 

administered by the family independence agency.department.

 

     (b) Make referrals for prosecution and disposition of

 

appropriate cases as determined by the inspector general.

 

     (c) Review administrative policies, practices, and procedures.

 

     (d) Make recommendations to improve program integrity and

 

accountability.

 

     Sec. 45. (1) A county family independence agency department is

 

created in each county of this state, which shall possess possesses

 

the powers granted and perform performs the duties imposed in this

 

act. The county family independence agency department shall consist

 

of a county family independence agency board and the director of

 

the county family independence agency, department, together with

 

assistants and employees as may be necessary to operate the county

 

department. family independence agency. As used in this act,

 

references to "county department of social services" or "county

 

department" mean the county family independence agency and

 

references to "county social services board" and "county board"

 

mean the county family independence agency board.

 

     (2) The powers and duties of the county family independence

 

agency board include all of the following:

 


     (a) Supervision of and responsibility for the administration

 

of the county infirmary and county medical care facility and child

 

caring institution, except as provided in sections 55(c) and 58.

 

     (b) Conduct, in conjunction with the family independence

 

agency, department, an annual review of social service programs

 

operating within the county.

 

     (c) Development of policy and supervision of the

 

administration of social service programs authorized by the county

 

board of commissioners or financed solely from county funds or

 

county administered funds.

 

     (d) Development and administration of employment programs and

 

work training projects complementary to and not in conflict with

 

state programs.

 

     (e) Review and submit recommendations on contracts involving

 

programs administered by the family independence agency department

 

proposed to be entered into between the family independence agency

 

department and public or private agencies within the county,

 

including proposed purchases of service contracts from applicant

 

agencies within the county eligible for funding under title XX of

 

the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. USC

 

1397 to 1397f. 1397m-5. A contract shall not be entered into

 

between the family independence agency department and a public or

 

private agency within the county until the board has been provided

 

an opportunity for review of the contract. The board shall be

 

advised by the family independence agency department within 30 days

 

after contracts have been signed with an explanation of the

 

differences between contracts recommended by the board and those

 


actually entered into.

 

     (f) Act as the agent for the county board of commissioners in

 

the development of coordinated or consolidated approaches to the

 

delivery of social services and cooperative service delivery

 

arrangements between the family independence agency department and

 

each public and private social service agency within the county.

 

     (g) Represent the county board of commissioners in all

 

negotiations between the county and the family independence

 

agency.department.

 

     (h) Make annual policy recommendations to the Michigan county

 

social services association County Social Services Association on

 

annual departmental appropriations, priorities for utilization of

 

title XX funds, eligibility standards for general public relief and

 

burial, employment programs, work training projects, and other

 

related issues.

 

     (3) The family independence agency department shall provide

 

suitable office accommodations for programs funded in whole or in

 

part with state funds. The county family independence agency board

 

shall review and recommend to the director proposed office sites

 

within the county. The director shall notify the board before final

 

site selection with an explanation of the selection of a site other

 

than that proposed by the board.

 

     (4) The salary and expenses of each member of the county board

 

shall be fixed by the county board of commissioners according to

 

the amount of time the member devotes to the performance of

 

official duties. A member of the county board may not serve as the

 

director or an employee of the county family independence agency.

 


department. The members of the county boards shall be appointed at

 

the annual October session of commissioners, and members shall

 

qualify by taking and filing the oath of office with the county

 

clerk, and shall assume their duties as prescribed by this act not

 

later than November 1 of the year appointed.

 

     (5) The director, employees, and assistants of the county

 

family independence agency department shall be appointed by the

 

family independence agency department from among persons certified

 

as qualified by the state civil service commission. The county

 

family independence agency board shall review the qualifications of

 

and interview each applicant for the position of county family

 

independence agency department director. The county director shall

 

be appointed from among persons certified as eligible and

 

recommended by the family independence agency department and by the

 

county board. These appointment provisions do not apply under

 

conditions of reduction in state work force, in which case the

 

administrative employment preference rules for bumping promulgated

 

by the Michigan civil service commission apply. The county board

 

shall advise and make recommendations to the state director

 

regarding the performance of the county director within 6 months

 

after the appointment of the county director and annually after

 

that time. A copy of each evaluation shall be provided to the

 

county director.

 

     (6) Except as prescribed in sections 35 and 64, a writing

 

prepared, owned, used, in the possession of, or retained by the

 

county family independence agency department in the performance of

 

an official function shall be made available to the public in

 


compliance with the freedom of information act, Act No. 442 of the

 

Public Acts of 1976, being sections 15.231 to 15.246 of the

 

Michigan Compiled Laws.1976 PA 442, MCL 15.231 to 15.246.

 

     Sec. 46. (1) The administration of the powers and duties of

 

the county department shall be are vested in a county social

 

services board of 3 members, appointed from persons residing within

 

the county and not holding an elective office, for 3-year terms as

 

follows: 2 members shall be appointed by the county board of

 

commissioners, and 1 member by the director of social services.

 

Members appointed before October 27, 1965, shall continue in office

 

until the expiration of their terms and until successors are

 

appointed and qualified. the department. Each member shall qualify

 

by taking and filing with the county clerk the constitutional oath

 

of office, and shall hold office until the appointment and

 

qualification of a successor. Vacancies in the membership of the

 

board shall be filled for the expiration of the unexpired term, in

 

the same manner as provided for appointment of the original

 

members.

 

     (2) The business which that the county social services board

 

may perform shall be conducted at a public meeting of the county

 

social services board held in compliance with Act No. 267 of the

 

Public Acts of 1976. the open meetings act, 1976 PA 267, MCL 15.261

 

to 15.275. Public notice of the time, date, and place of the

 

meeting shall be given in the manner required by Act No. 267 of the

 

Public Acts of 1976. the open meetings act, 1976 PA 267, MCL 15.261

 

to 15.275. A majority of the board constitutes a quorum for the

 

transaction of business. The board shall meet on the call of the

 


chairperson, or on a written request to the chairperson signed by 2

 

members of the board, or at times and places as prescribed by the

 

rules of the board. The board shall hold not less than 12 meetings

 

each fiscal year with an interval of not more than 5 weeks between

 

2 meetings.

 

     (3) At the first meeting following the appointment of a new

 

member to the board, the members shall choose 1 member as

 

chairperson, who shall continue to act as chairperson of the board

 

until the selection of a successor.

 

     (4) If a member of the county social services board, upon

 

receiving notification, fails to attend 3 consecutive regularly

 

scheduled meetings of the board, the county board of commissioners

 

after notification from the county social services board of the

 

failure of a member to attend without reasonable cause such as

 

illness or other circumstances beyond the member's control shall by

 

formal vote excuse the member or declare the office vacant. The

 

vacancy shall be filled for the remainder of the unexpired term in

 

the same manner as the original appointment was made.

 

     (5) Members of the board shall be reimbursed for necessary

 

travel and other expenses, and shall be paid such an amount as

 

shall be fixed by the board of commissioners or board of county

 

auditors.

 

     (6) Except as prescribed in sections 35 and 64, a writing

 

prepared, owned, used, in the possession of, or retained by the

 

county social services board in the performance of an official

 

function shall be made available to the public in compliance with

 

Act No. 442 of the Public Acts of 1976.the freedom of information

 


act, 1976 PA 442, MCL 15.231 to 15.246.

 

     Sec. 47. (1) Two or more counties may organize a district

 

department of social welfare and medical relief by a majority vote

 

of the members elect of the county board of commissioners of each

 

county. The administration of the powers and duties of the

 

department shall be vested in a district social welfare board and

 

medical advisory council. The district social welfare board and

 

medical advisory council shall consist of members appointed from

 

persons who are residents within the district, for 3-year terms as

 

follows: 1 member shall be appointed by the state social welfare

 

commission county department and the county board of commissioners

 

of each county included in the district shall each appoint 2

 

members. Of the members first appointed the member appointed by the

 

state social welfare commission shall be appointed for a term of 1

 

year; 1 member appointed by the county board of commissioners of

 

each county shall be appointed for the term of 2 years, and 1

 

member for the term of 3 years. A reference in this act to a county

 

department of social services or to a county social services board

 

, shall be deemed to apply applies to a district department of

 

social welfare or a district social welfare board, where a district

 

has been created as provided in this section. A member of a

 

district board shall not hold an elective office. The members of

 

the district social welfare board shall choose a chairperson as

 

provided in section 46.

 

     (2) The business which that a district social welfare board

 

may perform shall be conducted at a public meeting of the board

 

held in compliance with Act No. 267 of the Public Acts of 1976. the

 


open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice

 

of the time, date, and place of the meeting shall be given in the

 

manner required by Act No. 267 of the Public Acts of 1976.the open

 

meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (3) Except as prescribed in sections 35 and 64, a writing

 

prepared, owned, used, in the possession of, or retained by a

 

district department of social welfare or a district social welfare

 

board in the performance of an official function shall be made

 

available to the public in compliance with Act No. 442 of the

 

Public Acts of 1976.the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     Sec. 50. Any county employee or officer who transports,

 

brings, or causes to be transported or brought, any other person

 

receiving general relief, hospitalization, or infirmary care, or in

 

need of general relief, hospitalization, or infirmary care from any

 

county or from any city operating a separate department of social

 

welfare under this act into any other county or city operating a

 

separate department without legal authority and there leave leaves

 

the person there receiving general relief or in need of general

 

relief; or who induces such a person by threat or other means to

 

remove to another county or city operating a separate department,

 

with the intent to make the county or city to which the removal is

 

made chargeable with the support of the person receiving or in need

 

of public assistance, is guilty of a misdemeanor.

 

     Sec. 53. Said A board shall cooperate with the state

 

department of social welfare in handling the welfare and relief

 

problems and needs of the people of its county, and to such end may

 


adopt any plan or plans required or desirable in order to

 

participate in the distribution of federal or state moneys, money,

 

or in order to receive the assistance of the federal or state

 

governments. The board may adopt any rules and regulations or do

 

any act in order to enable participation of the county in any such

 

a plan or plans.

 

     Sec. 55. The county department shall administer a public

 

welfare program, as follows:

 

     (a) To grant general assistance, including medical care and

 

care in the county medical care facility, but not including

 

hospitalization and infirmary care except for care in the county

 

medical care facility or a county infirmary existing on January 1,

 

1981, to any person domiciled in the county who has a legal

 

settlement in this state. General assistance may also be granted to

 

a person who has a legal settlement in this state but no domicile

 

in the county, and a recoupment may be made when appropriate in the

 

manner provided in cases of emergency hospitalization under this

 

act. In a temporary emergency, general assistance may be given to

 

indigents without a settlement in this state as the county

 

department considers necessary, including, if other funds are not

 

available for the purpose, all necessary expenses in transporting

 

an indigent to his or her domicile in this state, or in another

 

state or nation, when information reasonably tends to show that the

 

person has a home available in his or her place of domicile in this

 

state or a legal residence in another state or nation. A legal

 

settlement in this state is acquired by an emancipated person who

 

has lived continuously in this state for 1 year with the intent to

 


make it his or her home and who, during the 1-year period has not

 

received public assistance, other than assistance received during

 

and as a direct result of a civil defense emergency, or support

 

from relatives. Time spent in a public institution shall not be

 

counted in determining settlement. A legal settlement shall be lost

 

by remaining away from this state for an uninterrupted period of 1

 

year except that absence from this state for labor or other special

 

or temporary purpose shall not occasion loss of settlement.

 

     (b) To administer categorical assistance including medical

 

care.

 

     (c) To supervise and be responsible for the operation of the

 

county infirmary and county medical care facility. In a county

 

having a population of 1,000,000 or more that maintains a county

 

infirmary or county hospital or a joint infirmary and hospital

 

providing for mental patients, the institution and the admissions

 

to the institution are subject to the control of a board to be

 

known as the board of county institutions. The board shall consist

 

of 5 members appointed by the county board of commissioners, except

 

that in a county having a board of county auditors, 3 members of

 

the board of county institutions shall be appointed by the county

 

board of commissioners and 2 members shall be appointed by the

 

board of county auditors. Each member of the board shall hold

 

office for a term and receive compensation as the county board of

 

commissioners provides by ordinance. In relation to the

 

administration of the institutions, the board has and succeeds to

 

all powers and duties formerly vested by law, general, local, or

 

special, in the superintendents of the poor in the county and the

 


board of county institutions as constituted on April 13, 1943. The

 

board of county institutions of the county may also maintain

 

outpatient facilities for the treatment of needy persons suffering

 

from mental disorders. illness. The board also has the same powers

 

as are given to the county board in section 78.

 

     (d) To furnish in all cases, insofar as practicable, care and

 

treatment that will tend to restore needy persons to a condition of

 

financial and social independence.

 

     (e) To require that each applicant shall furnish proof

 

satisfactory to the county board that the applicant is entitled to

 

the aid, assistance, or benefit sought.

 

     (f) To investigate, in respect to each application for any

 

form of public aid or assistance, the circumstances of the

 

applicant, both at the time of application and periodically during

 

the receipt of aid or assistance.

 

     (g) To maintain adequate social and financial records

 

pertaining to each recipient of aid or assistance and so far as is

 

practicable engage in the prevention of social disabilities.

 

     (h) Except as otherwise provided in this subdivision, to

 

investigate, when requested by the probate court or the family

 

division of circuit court, matters pertaining to dependent,

 

neglected, and delinquent children and wayward minors under the

 

court's jurisdiction, to provide supervision and foster care as

 

provided by court order, and to furnish the court, on request,

 

investigational service in respect to the hospitalization of

 

children under the program of services for children and youth with

 

special health care needs established under part 58 of the public

 


health code, 1978 PA 368, MCL 333.5801 to 333.5879, which services

 

shall include the follow-up investigation and continuing

 

observations. If the county is a county juvenile agency as defined

 

in section 2 of the county juvenile agency act, 1998 PA 518, MCL

 

45.622, the county department's obligations under this subdivision

 

are limited to public wards within the county's jurisdiction under

 

the youth rehabilitation services act, 1974 PA 150, MCL 803.301 to

 

803.309, and county juvenile agency services as defined in section

 

117a.

 

     (i) To assist other departments, agencies, and institutions of

 

the federal, state, and county governments, when requested, in

 

performing services in conformity with the purposes of this act.

 

     (j) To assist in the development of sound programs and

 

standards of child welfare, and promote programs and policies

 

looking toward the prevention of dependency, neglect, and

 

delinquency and other conditions affecting adversely the welfare of

 

families and children.

 

     (k) To create within the county department a division of

 

medical care. The county board may appoint a properly qualified and

 

licensed doctor of medicine as the head of the division and an

 

advisory committee. The advisory committee shall consist of 1

 

doctor of medicine, nominated by the county medical society; 1

 

dentist, nominated by the district dental society; and 1

 

pharmacist, nominated by the district pharmaceutical association,

 

to assist in formulating policies of medical care and auditing and

 

reviewing bills. "Medical care" as used in this act means medical

 

care rendered under the supervision of a licensed physician in an

 


organized out-patient outpatient department of a hospital licensed

 

by the department of community health under article 17 of the

 

public health code, 1978 PA 368, MCL 333.20101 to 333.22260, or

 

home and office attendance by a physician, osteopathic physician

 

and surgeon, or podiatrist licensed or otherwise authorized to

 

engage in practice under article 15 of the public health code, 1978

 

PA 368, MCL 333.16101 to 333.18838; and when prescribed by the

 

physician, osteopathic physician and surgeon, or podiatrist,

 

diagnostic services requiring the use of equipment not available in

 

his or her offices, if the services do not require overnight care,

 

dental service, optometric service, bedside nursing service in the

 

home, or pharmaceutical service. The private physician-patient

 

relationship shall be maintained. The normal relationships between

 

the recipients of dental, optometric, nursing, and pharmaceutical

 

services, and the services furnished by a physician, osteopathic

 

physician and surgeon, podiatrist, or a chiropractor licensed or

 

otherwise authorized to engage in practice under article 15 of the

 

public health code, 1978 PA 368, MCL 333.16101 to 333.18838, and

 

the persons furnishing these services shall be maintained. This

 

section does not affect the office of a city physician or city

 

pharmacist established under a city charter, a county health

 

officer, or the medical superintendent of a county hospital. This

 

section permits the use of a case management system, a patient care

 

management system, or other alternative system for providing

 

medical care.

 

     (l) To cause to be suitably buried the body of a deceased

 

indigent person who has a domicile in the county, when requested by

 


the person's relative or friend, or of a stranger, when requested

 

by a public official following an inquest.

 

     (m) To administer additional welfare functions as are vested

 

in the department, including hospitalization.

 

     (n) To act as an agent for the state department in matters

 

requested by the state department under the rules of the state

 

department.

 

     (o) To provide temporary general assistance for each family

 

found ineligible for family independence program assistance by

 

reason of unsuitable family home as provided in section 56.

 

     Sec. 56i. (1) The family independence agency department shall

 

establish and enforce standards and procedures to do all of the

 

following:

 

     (a) Screen and identify individuals who are receiving

 

assistance under section 57b who have a history of domestic

 

violence, while maintaining the confidentiality of that

 

information.

 

     (b) Refer those individuals identified under subdivision (a)

 

to counseling and supportive services.

 

     (c) In accordance with a determination of good cause, waive

 

certain program requirements of the family independence program

 

established in section 57a in cases where compliance with those

 

requirements would make it more difficult for individuals receiving

 

assistance to escape domestic violence or would unfairly penalize

 

individuals who are or have been victimized by domestic violence or

 

individuals who are at risk of further domestic violence.

 

     (2) The family independence agency department shall include in

 


the state plan required for federal temporary assistance for needy

 

families block grants a certification by the governor that the

 

state has established and is enforcing the standards and procedures

 

described in subsection (1).

 

     (3) The family independence agency department shall collect

 

and compile data regarding administration of the waiver authorized

 

under subsection (1)(c), including information regarding

 

individuals screened and identified under subsection (1)(a) and

 

information regarding individuals actually granted a waiver. The

 

family independence agency department shall annually report to the

 

legislature on the information collected and compiled under this

 

subsection.

 

     Sec. 58. (1) A county board may, with the approval of the

 

county board of commissioners, supervise and be responsible for the

 

operation of a county medical care facility in, auxiliary to, or

 

independent of the county infirmary. If a county has a board of

 

county institutions, a county medical care facility shall be

 

supervised and operated by the board of county institutions, and

 

all references in this section to the county board means, mean, for

 

that county, the board of county institutions. The county board in

 

a county that has established a county medical care facility may

 

collect from any available source for the cost of care given in the

 

facility, and the collections shall be deposited in the social

 

welfare fund created under section 73a. The facility shall provide

 

a program of planned and continuing medical treatment and nursing

 

care under the general direction and supervision of a licensed

 

physician employed full full-time or part-time who shall be known

 


as the medical director.

 

     (2) Medical treatment and nursing care provided in a county

 

medical care facility shall consist of services given to persons

 

suffering from prolonged illness, defect, infirmity, or senility,

 

or recovering from injury or illness. The services provided shall

 

include some or all of the procedures commonly employed, such as

 

physical examination, diagnosis, minor surgical treatment,

 

administration of medicines, providing special diets, giving

 

bedside care, and carrying out any required treatment prescribed by

 

a licensed physician that are within the ability of the facility to

 

provide.

 

     (3) Services provided in a county medical care facility shall

 

be consistent with the needs of the type of patient admitted and

 

cared for, professionally supervised and planned, and provided on a

 

continuing basis. A person shall not be admitted or retained for

 

care if he or she requires special medical or surgical treatment or

 

treatment for a psychosis, tuberculosis, or contagious disease,

 

except that the facility may contain a supervised psychiatric ward

 

for the temporary detention of mentally ill patients if the ward

 

has been inspected and approved by the department of community

 

health and certified by the department of community health to the

 

county board, and if no other facility for temporary detention of

 

mentally ill patients exists in the county. A county department may

 

provide for the support of poor persons who may be feeble-minded or

 

mentally ill at some other place or places and in a manner that

 

best promotes the interests of the county and the comfort and

 

recovery of such those persons, at the expense of the county.

 


     (4) A county board, in seeking approval to establish, extend,

 

and operate a county medical care facility in an existing building,

 

shall apply in writing to the department. The county board shall

 

include with the application a proposed plan with specifications,

 

including standards of operation, for the examination and

 

recommendations of the department.

 

     (5) A county board of commissioners may determine to erect a

 

county infirmary or county medical care facilities for the

 

reception and care of the poor and unfortunate of the county. The

 

county medical care facilities may be on different sites than the

 

county infirmary. On filing the determination with the county

 

clerk, the county board of commissioners may direct the county

 

board to purchase 1 or more tracts of land, not exceeding 320

 

acres, and to erect on the land 1 or more suitable buildings for

 

the county infirmary or county medical care facilities. Before any

 

county infirmary or county medical care facility is erected or any

 

existing buildings are remodeled, added to, or substantially

 

altered under this section, before plans for the county infirmary

 

or county medical care facilities are finally accepted, and before

 

any contract is entered into for construction, the plans shall be

 

submitted to the department for examination and approval. The

 

determination reached shall be certified to the county clerk and

 

presented to the county board of commissioners at the next regular

 

meeting of the county board of commissioners. A county infirmary or

 

county medical care facility shall not be constructed unless the

 

plans have been certified under this subsection. A contract for the

 

erection of a county infirmary or county medical care facility is

 


not valid or binding unless the plans referred to in the contract

 

and actually followed in the construction have been approved. Money

 

shall not be paid from county funds for construction until the

 

plans have been approved and the determination filed.

 

     (6) The department shall review the proposals and plans of a

 

county board submitted in connection with an application for the

 

establishment, extension, and operation of a county medical care

 

facility or county infirmary and shall consult with and give advice

 

to the county department as to plans, procedures, and programs

 

required for the proper establishment, extension, and operation of

 

the county medical care facility or county infirmary.

 

     (7) The department shall approve the county medical care

 

facilities by proper notice to the county department. After

 

approval, the department shall inspect the facility as frequently

 

as it considers necessary, but at least once each year. A county

 

department shall comply with any reasonable order issued by the

 

department. The county department may appeal an order in writing,

 

within 30 days of receiving the order, to the director of the

 

department.

 

     (8) Any reasonable order of the department for the

 

establishment, extension, operation, or closing of a county

 

infirmary or county medical care facility may be enforced by

 

mandamus or injunction in the circuit court for the county where

 

the facility is located in proceedings instituted by the attorney

 

general on behalf of the department.

 

     (9) A county medical care facility shall not be opened for

 

operation until it has been inspected and approved in writing to

 


the department by the bureau of fire services created in section 1b

 

of the fire protection prevention code, 1941 PA 207, MCL 29.1b, and

 

the department. of community health. The county department shall

 

comply with any reasonable directive issued by the bureau of fire

 

services or the department of community health with regard to the

 

fire safety and sanitation of the county infirmary or county

 

medical care facility. A directive may be enforced by the

 

department in the same manner as are orders of the department.

 

After receiving the approval of the department, the county

 

department shall represent the facility to the public as the county

 

medical care facility and shall make reasonable and continuing

 

effort to divorce the facility from an association in the public

 

mind with the words "poor house" or "poor farm".

 

     Sec. 58b. The state department in accordance with its rules

 

and regulations may pay for medical care that a recipient of aid to

 

the blind, aid to disabled, aid to dependent children, temporary

 

assistance for needy families, or old age assistance, receives in

 

the county medical care facility. Other persons admitted to care in

 

the facility shall be charged for the cost of their care to the

 

extent of their financial ability as determined by the county

 

department and such their financial ability shall does not preclude

 

their eligibility for such care. Prior consideration shall be given

 

to any person who comes within the definition of a "poor person"

 

set forth in section 1 of chapter 1 of Act No. 146 of the Public

 

Acts of 1925, as amended, being section 401.1 of the Compiled Laws

 

of 1948. 1925 PA 146, MCL 401.1. No poor persons as so person as

 

defined in section 1 of chapter 1 of 1925 PA 146, MCL 401.1, shall

 


be refused admittance to a county medical care facility if there

 

are then within such a county medical care facility persons who are

 

not senile and who are paying the total cost of their care.

 

     Any county department which shall accept that accepts state

 

financial aid for capital expenditures related to the

 

establishment, extension or improvement of its facilities shall

 

accept for care any patient eligible for admission as provided in

 

section 58a, and having a domicile in the county and any patient

 

for whom care is requested by the state department because of being

 

found in the county without either a known domicile in the state or

 

a place of residence outside the state to which he or she may be

 

returned.

 

     Direct state financial aid to meet part of the cost of capital

 

expenditures for the establishment, extension, or improvement of a

 

county medical care facility may be provided from the general funds

 

of the state or from such federal funds as may be made available in

 

the following manner: The county social welfare board with the

 

approval of the county board of supervisors will make an

 

application to the state department as otherwise provided in

 

section 58 but shall make in addition, a showing of need, in the

 

same manner as provided in section 18, that it is unable to meet

 

all of the capital expenses of a county medical care facility. The

 

state department shall determine the percentage of the total

 

capital cost of the facility which that the county will be unable

 

to meet and shall request from the legislature an appropriation

 

from the general fund of the state or such federal funds as may be

 

made available for this purpose to meet this amount. Requests of

 


the legislature from the state department for such these

 

appropriations shall be separate items for each medical care

 

facility. The amount of state aid actually granted the county by

 

the state department shall not exceed (1) the amount appropriated

 

by the legislature in respect to the amount of the item in the

 

budget, or (2) the percentage of state aid required as previously

 

determined by the state department, whichever is the lesser.

 

     To defray the cost of construction in the establishment or

 

extension of the medical care facility, the board of supervisors

 

may raise in any 1 year a sum not exceeding .1 mill of each dollar

 

of assessed valuation of the county, such the tax to shall be

 

regarded as a special tax collected in the same manner as other

 

county charges, and moneys money received therefrom from that tax

 

shall be transmitted to the treasurer of the county, who shall

 

deposit same in a special fund to be used solely for the purposes

 

for which the tax is spread. Money expended for construction in the

 

establishment or extension of the facility shall be paid out by the

 

county treasurer on the order of the county social welfare board.

 

     Sec. 58c. Notwithstanding any other provision of this act,

 

patients suffering from contagious diseases may be admitted to any

 

county medical care facility where the facility is constructed or

 

operated with the approval of the state department of social

 

welfare and is able to provide an isolated area for such care

 

approved by the state health commissioner.director.

 

     Sec. 59. All applications for aid, relief, or assistance

 

provided under this act shall be made to the county department of

 

social welfare in such the manner and upon such the forms as may be

 


prescribed by the state department. When any person applies for or

 

requires public aid as a poor person under this act other than

 

hospitalization or those forms of aid financed in whole or in part

 

by federal funds, the county department shall ascertain the legal

 

settlement and domicile of the person. The county department shall

 

ascertain the settlement and domicile of other persons when

 

requested by the county health department or by the state health

 

commissioner. director. Except as otherwise provided in this act,

 

general relief granted to persons with a legal settlement in this

 

state may be charged to the county of domicile. The sending of

 

notices, billings, and appeals in respect to charges to the county

 

of domicile , shall be made in accordance with regulations of the

 

commission. department. Wherever in this act a chargeback or return

 

to the county or city of "settlement" or "legal settlement" is

 

authorized, a chargeback or return to the county or city of

 

"domicile" shall be deemed considered to be intended. Hospitals,

 

jails, nursing homes, convalescent homes, homes for the aged, and

 

prisons are not places of domicile. General relief and

 

hospitalization granted to persons who, while receiving assistance

 

under this act, move into a county to receive care in a home for

 

the aged, convalescent home, or other institution shall be a charge

 

against the county of their domicile just prior to the move

 

regardless of other provisions of this act and even though domicile

 

in the home for the aged or other institutions is intended.

 

Temporary relief granted to persons with no settlement in this

 

state shall be at the expense of the county where found. In the

 

case of persons illegally brought or induced to come into the

 


county, necessary relief shall be a charge against the county where

 

they were living when transported or induced to move.

 

     Sec. 59a. The county or city department, of social welfare, as

 

part of its general relief program, may provide funds and necessary

 

attendants for the return of a person to his or her place of

 

residence as authorized in section 55, or to a new place of

 

residence under the conditions of sections section 59 or 59f. State

 

or county funds shall not be used for the return of a person to

 

another nation who may be deported under federal law.

 

     If the probable place of legal settlement is in Michigan this

 

state and the probable place of domicile is in some other county of

 

this state, the county department where application for aid was

 

made, within 60 calendar days following the application, shall give

 

notice and necessary information in writing to the county

 

department of the county of probable domicile on forms prescribed

 

for that purpose by the state department. If it appears that

 

domicile may lie in any 1 of 2 or more counties, notices shall be

 

sent to all such of those counties. If the notice is not given to

 

the county of probable domicile within 60 days following the

 

application for aid, the county granting relief to the applicant

 

shall have no claim whatsoever, irrespective of any other

 

provisions of this act, for reimbursement for the relief granted

 

the applicant prior to 60 calendar days preceding the date the

 

notice is given to the county of probable domicile.

 

     Sec. 60. (1) Any person who by means of willful false

 

statement or representation, by impersonation or other fraudulent

 

device, or by using an access device obtains or attempts to obtain,

 


or aids or abets any person to obtain or attempt to obtain , (a)

 

assistance or relief to which the person is not entitled ; or (b) a

 

larger amount of assistance or relief than that to which the person

 

is justly entitled; or any officer or employee of a county, city,

 

or district family independence agency department who authorizes or

 

recommends relief to persons known to the officer or employee to be

 

ineligible or to have fraudulently created their eligibility; or

 

any person who knowingly buys or aids or abets in buying or in

 

disposal of the property of a person receiving assistance or relief

 

without the consent of the director or supervisor of the state

 

department, shall, if the amount involved shall be is of the value

 

of $500.00 or less, be deemed is guilty of a misdemeanor and,

 

shall, if the amount involved shall be is of the value of more than

 

$500.00, be deemed is guilty of a felony, and upon conviction shall

 

be punished as provided by the laws of this state. The amount

 

involved as used in this subsection shall be defined as the

 

difference between the lawful amount of assistance or aid and the

 

amount of assistance or aid actually received. If anyone receives

 

assistance or relief through means enumerated in this section, in

 

which prosecution is deemed considered unnecessary, the state

 

department or county departments may take the necessary steps to

 

recover from the recipient the amount involved, plus interest at 5%

 

per annum. On conviction of the violation of the provisions of this

 

section of any officer or employee of any county, city, or district

 

department, of social welfare, the officer or employee shall be

 

removed or dismissed from office. For the purpose of this

 

subsection, "access device" means that term as it is defined in

 


section 300a of the Michigan penal code, 1931 PA 328, MCL 750.300a.

 

     (2) There is imposed upon every person receiving relief under

 

this act either upon the person's own application or by the

 

person's inclusion, to his or her knowledge, in the application of

 

another the continuing obligation to supply to the department

 

issuing the relief: (a) the complete circumstances in regard to the

 

person's income from employment or from any other source or the

 

existence of income, if known to the person, of other persons

 

receiving relief through the same application; (b) information

 

regarding each and every offer of employment for the person or, if

 

known to him or her, of the other persons receiving relief through

 

the same application; (c) information concerning changes in the

 

person's circumstances or those of other persons receiving relief

 

through the same application which that would decrease the need for

 

relief; and (d) the circumstances or whereabouts, known to the

 

person, of relatives legally responsible for the person's support

 

or for the support of other persons receiving relief through the

 

same application if changes in those circumstances or whereabouts

 

could affect the amount of assistance available from those

 

relatives or affect their legal liability to furnish support. Any

 

person who shall neglect or refuse neglects or refuses to submit to

 

the department issuing relief the information required by this

 

section, if the amount of relief granted as a result of the neglect

 

or refusal is less than $500.00, is guilty of a misdemeanor, and if

 

the amount of relief granted as a result of the neglect or refusal

 

is $500.00 or more, is guilty of a felony, and upon conviction

 

shall be punished as provided by the laws of this state.

 


     Sec. 61. (1) Except as provided in subsections (2) and (3), a

 

person who violates this act for which a penalty is not

 

specifically provided is guilty of a misdemeanor and, upon

 

conviction, shall be sentenced as provided in the laws of this

 

state. If a person receiving aid, relief, or assistance is

 

convicted of an offense under this act, or of another crime or

 

offense and punished by imprisonment for 1 month or longer, the

 

county board may direct that payments for aid, relief, or

 

assistance under this act shall cease and shall not be made during

 

the period of that person's imprisonment.

 

     (2) A member of the Michigan social welfare commission, a

 

county social services board , or the parole and review board who

 

intentionally violates section 2(3), 46(2) , or 121(2), shall be is

 

subject to the penalties prescribed in Act No. 267 of the Public

 

Acts of 1976.the open meetings act, 1976 PA 267, MCL 15.261 to

 

15.275.

 

     (3) If the Michigan social welfare commission, a county

 

department, of social services, a county social services board, a

 

district department, of social welfare, a district social welfare

 

board, or the parole and review board arbitrarily and capriciously

 

violates section 2(6), 45(6), 46(6), or 64(3), the commission,

 

department , or board shall be is subject to the penalties

 

prescribed in Act No. 442 of the Public Acts of 1976.the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246.

 

     Sec. 63a. The family independence agency department shall not

 

award contracts to specific organizations that have not been

 

competitively bid unless the award is permissible under state

 


contracting procedures.

 

     Sec. 66. As to those forms of relief which that are in no part

 

financed by state or federal funds, the decision of the county or

 

district department of social services as to the denial, granting,

 

form, and amount of that relief shall be is final, except as

 

provided in section 66i. In a county that establishes a patient

 

care management system under section 66j, the decision of the

 

county as to the denial, granting, form, and amount of medical care

 

shall be is final. This section does not prevent the state

 

department from making investigations, collecting statistics, and

 

otherwise gaining information concerning the administration of

 

welfare in any county or district as the state department considers

 

advisable.

 

     Sec. 66a. The county social welfare boards shall make

 

provision for hospitalization which that is necessary and not more

 

advantageously provided to the recipient under other law or

 

provided under other sections of this act for every person found in

 

their respective counties under rules of financial eligibility

 

established by the boards and shall be reimbursed 100% by the state

 

for the monthly net cost of the hospitalization for nonresidents of

 

the state. The county department, in its discretion, may direct

 

that the patient be conveyed to the university hospital at Ann

 

Arbor or any other hospital for hospitalization. As used in this

 

act, "hospitalization" means medical, surgical, or obstetrical care

 

in the university hospital or in a hospital licensed under article

 

17 of Act No. 368 of the Public Acts of 1978, as amended, being

 

sections 333.20101 to 333.22190 of the Michigan Compiled Laws, the

 


public health code, MCL 333.20101 to 333.22260, together with

 

necessary drugs, x-rays, physical therapy, prosthesis,

 

transportation, and nursing care incidental to the medical,

 

surgical, or obstetrical care. , but shall Hospitalization does not

 

include medical care as defined in section 55. Before a patient

 

shall be is admitted, except in an emergency, to any hospital other

 

than the university hospital, a definite agreement, statement, or

 

schedule of charges, expenses, and fees to be received by the

 

hospital and physicians or surgeons performing necessary services

 

under this act shall be filed with the county department of the

 

county in which the hospital is located and approved by the county

 

department, except as provided for in section 66i. The hospital

 

shall, at the conclusion of the treatment, make a report of the

 

treatment and an itemized statement of the expenses of the

 

treatment to the county department which that issued the order, but

 

charges for special nurses shall not be made without the consent of

 

the county social welfare director. The expenses for sending the

 

patient home or to other institutions after being discharged from

 

the hospital may be paid by the hospital and charged in the regular

 

bill for maintenance unless different instructions have been

 

received from the county department which that issued the order for

 

admission.

 

     Sec. 66b. The county social welfare board shall require the

 

county department to act promptly on all applications for

 

hospitalization and shall provide for retroactive authorizations

 

for emergency care in accordance with rules which that the board

 

shall establish including one a rule defining "emergency". When the

 


person hospitalized in an emergency is found to be eligible for

 

hospitalization at public expense under section 66a of this act and

 

is found to be a transient in the county with a domicile elsewhere

 

in the state, the county in which his or her domicile is located

 

shall be is responsible for the cost of hospitalization to the

 

county department which that has authorized the care. When a

 

patient is taken without authorization in an emergency across a

 

county line to a hospital in a county other than the county of

 

domicile of the patient, the county department in which the

 

emergency occurred shall be is responsible, in accordance with its

 

own rules governing emergency care, to the hospital for the expense

 

of the emergency care subject to reimbursement by the county of

 

domicile as provided by this section. The state department shall

 

provide rules governing intercounty payments and shall arbitrate

 

and decide disputes arising thereunder.under those rules.

 

     Sec. 66e. The admitting officer of the university hospital,

 

upon receiving a patient with an authorization issued by a county

 

department of social services under this act, may provide a bed in

 

the hospital and designate the clinic of the hospital to which such

 

the person shall be is assigned for treatment. The physician or

 

surgeon in charge of the patient shall proceed with proper care to

 

perform such the operation and bestow such treatment upon the

 

patient as in his or her judgment shall be is necessary. No

 

compensation shall be charged or received by the admitting officer,

 

or by the medical faculty or by the physician, surgeon, or nurses

 

of the university hospital, who shall treat treats and care cares

 

for the patients, other than the salaries received by them provided

 


by the board of regents of the university. If any such patient has

 

medical or surgical insurance coverage, the university hospital may

 

then charge for the service of its medical and surgical staff in

 

amounts not to exceed the amounts available from such insurance

 

coverage. The superintendent shall make and file with the county

 

board of social services an affidavit containing so as far as

 

possible an itemized statement of all expenses of hospitalization

 

incurred at said the hospital in care of patients admitted under

 

this act in accordance with the usual rates therefor fixed by the

 

regents of the university. He or she shall also make reports at

 

suitable intervals to the county department which that issued the

 

order, stating the condition of the patient and the expense

 

incurred. No county shall be is liable for expenses incurred after

 

the expiration date of the order of the county department unless a

 

new order is obtained.

 

     Sec. 66h. Nothing in this act shall be construed as empowering

 

empowers any physician or surgeon, or any officer or representative

 

of the state or county departments, of social welfare, in carrying

 

out the provisions of this act, to compel any person, either child

 

or adult, to undergo a surgical operation, or to accept any form of

 

medical treatment contrary to the wishes of said the person. If the

 

person for whom surgical or medical treatment is recommended is not

 

of sound mind, or is not in a condition to make decisions for

 

himself or herself, the written consent of such that person's

 

nearest relative, or legally appointed guardian, or person standing

 

in loco parentis, shall be secured before such medical or surgical

 

treatment is given. This provision is not intended to prevent

 


temporary first aid from being given in case of an accident or

 

sudden acute illness where the consent of those concerned cannot be

 

immediately obtained.

 

     Sec. 66i. (1) Except as provided in subsection (4), the state

 

department, on behalf of a county, shall reimburse the hospital in

 

accordance with established hospital reimbursement principles under

 

title XIX of the social security act. , 42 U.S.C. 1396 to 1396d,

 

1396f to 1396s. However, if If state law provides for a different

 

level of reimbursement, the state, on behalf of the county, shall

 

reimburse the hospital at that level of reimbursement.

 

Reimbursement will be based on eligibility information provided to

 

the state department by the county department.

 

     (2) Except as provided in subsection (4), a county department

 

of social services shall reimburse the state an amount equal to the

 

sum of the following:

 

     (a) The total amount the state department approves for payment

 

under subsection (1) to a hospital owned by that county.

 

     (b) The total amount the state department approves for payment

 

to all other hospitals, on behalf of the county, less either

 

$100.00 per day of hospital care or an amount per day established

 

by state law for the county, whichever is higher.

 

     (3) Subsection (2)(b) does not require a county department to

 

reimburse the state under that subdivision when the amount of

 

payments made to the hospitals described in subsection (2)(b), on

 

behalf of the county, is less than either $100.00 per day of

 

hospital care or an amount established by state law for the county,

 

whichever is higher. In addition, subsection (2) does not require

 


the county department to reimburse the state for the cost of the

 

hospitalization for nonresidents of this state.

 

     (4) If the total payments to hospitals by the state department

 

for hospitalization of persons determined by the county department

 

of a county to be eligible for hospitalization under section 66a

 

were less than $2,000,000.00 during the county's full fiscal year

 

immediately before October 1, 1982, the county department of social

 

services of that county may elect to reimburse hospitals directly

 

in accordance with reimbursement principles established by the

 

county department. A county department which that elects to

 

reimburse hospitals directly shall notify the state department

 

before the beginning of the county's fiscal year in which the

 

election is to become effective. If the county's fiscal year in

 

which the election is to become effective begins in 1983 or a

 

subsequent year, the notice to the state department shall be made

 

at least 60 days before the beginning of the county's fiscal year.

 

     (5) The rules of financial eligibility established pursuant to

 

under section 66a in a county on whose behalf the state makes

 

payments to hospitals under subsection (1) shall not be made less

 

restrictive than the rules in effect in the county during the

 

county department's fiscal year ending in 1979.

 

     Sec. 66j. (1) As an alternative to sections 55(k), 66a, and

 

66i, a county other than a county described in subsection (2) may

 

establish a patient care management system as described in this

 

section and sections 66k to 66p.66n.

 

     (2) If a county intending to establish a patient care

 

management system is one a county in which the total payments to

 


hospitals in the county for the county's resident county

 

hospitalization program was less than $10,000,000.00 during the

 

county's full fiscal year immediately preceding the effective date

 

of this section, December 28, 1987, the county shall apply to the

 

state department for certification of its proposed patient care

 

management system, and the state department shall approve or

 

disapprove the application based upon minimum standards that are

 

established by the state department for county patient care

 

management systems and are based upon on this section and sections

 

66k to 66n. The department shall submit recommended procedures to

 

the appropriate standing committees of the legislature for approval

 

in order to allow other counties to adopt a patient care management

 

system pursuant to under this act. Such procedures shall be

 

submitted by January 1, 1989. If a county's original application

 

for certification of a patient care management system is approved

 

under this section, the county shall apply to the state department

 

in each subsequent year for recertification of its patient care

 

management system according to the standards established under this

 

subsection. The application for recertification shall be submitted

 

not later than April 1 of each year, and shall be considered

 

automatically approved by the state department unless denied by the

 

state department, based upon the standards established under this

 

section, within 30 days after being received by the state

 

department. An approval or disapproval of a patient care management

 

system by the state department may be reversed by the legislature

 

by subsequent appropriations legislation or other legislation. An

 

original application for certification or an application for

 


recertification shall be in a form as prescribed by the department.

 

     (3) Under a patient care management system, a county shall

 

establish sufficient rates of reimbursement and appropriate length

 

of stay for inpatient treatments for hospitals and other health

 

care providers and shall contract with hospitals and other health

 

care providers for medical care of persons determined to be

 

eligible by the county. The county shall enter into sufficient

 

contracts to assure ensure that persons determined to be eligible

 

by the county have access to hospital services, physician services,

 

and other medical services considered appropriate by the county

 

board. of social services.

 

     (4) A county that establishes a patient care management system

 

annually shall annually submit a report to the state department

 

containing information on the number of patients served, the

 

services rendered for those patients, the amount of funds spent for

 

those services, and the terms of the contracts entered into

 

pursuant to under subsection (3). The report shall be submitted not

 

later than 90 days after the end of the county's fiscal year. A

 

county's expenditures for the operation and administration of a

 

patient care management system are subject to audit by the state.

 

     (5) A county that establishes a patient care management system

 

shall create a system to provide the data specified in subsection

 

(4) and to keep track of records of admissions, diagnoses,

 

treatments, and payment records for individuals eligible under the

 

patient care management system.

 

     Sec. 67. If any application for aid financed in whole or in

 

part by federal funds is not acted upon by the county department of

 


social welfare within a reasonable time after the filing of the

 

application, or is denied or revoked, in whole or in part, the

 

applicant may appeal to the state department in the manner and form

 

prescribed by the state department and an opportunity for a fair

 

hearing shall be granted by said the department as provided in

 

section 9. The state department may also, upon its own motion,

 

review any decision of a county department, of social welfare, and

 

may consider any such application upon which a decision has not

 

been made by the county department of social welfare within a

 

reasonable time. The state department may make such an additional

 

investigation as it may deem considers necessary, and shall make

 

such a decision as to the granting of aid financed in whole or in

 

part by federal funds and the amount thereof to be granted to the

 

applicant as in its opinion is justified and in conformity with the

 

laws of this state. In such those cases, the decisions of the state

 

department shall be are binding upon the county department of

 

social welfare involved and shall be complied with by such the

 

county department.

 

     Sec. 68. The county board shall apply to the state department

 

of social welfare at such a time, on such the forms, and in such

 

the manner, as the state department shall prescribe prescribes for

 

the allocation and distribution under section 18 of this act of

 

state or federal moneys money available for the several forms of

 

public aid and relief, and with respect to such the application

 

shall be governed by the requirements and rules and regulations of

 

the state department.

 

     Sec. 68a. The county department furnishing general relief,

 


including medical care, hospitalization, or infirmary care, to any

 

poor person at the expense of another county in this state, shall

 

present to the department of social welfare of the county liable

 

for the aid and infirmary care, from time to time as the case might

 

be, a sworn, itemized statement of the expense, which shall be

 

allowed and paid by the department of social welfare of the county

 

that is liable, therefor, within 60 days after being presented. No

 

item of the itemized statement of expense shall be a proper and

 

collectible charge against the county which that has been

 

determined to be or has agreed to be liable therefor unless

 

submitted within 180 days from the end of the month during which

 

services covered by the item were rendered. In the case of an item,

 

the exact amount of which the county department furnishing care is

 

unable to determine during the 180 days 180-day period or prior

 

thereto, to that, notice of the existence of such an item of

 

undetermined amount shall be given to the county liable during the

 

180 days, whereupon after which the county furnishing care shall

 

have has an additional 180 days in which to include the amount of

 

the item in an itemized statement.

 

     Sec. 69. The county social welfare board shall prepare and

 

submit to the county board of supervisors, at the annual meeting of

 

said the county board of supervisors or at such other another time

 

as the said county board of supervisors shall request, an estimate

 

of the funds necessary to carry out the provisions of this act,

 

including funds needed for the several institutions under the

 

jurisdiction of the county social welfare board. The county social

 

welfare board shall also render an account of all moneys money

 


received and expended by them. In the case of a district

 

department, of social welfare the district social welfare board

 

shall submit such an estimate to the county board of supervisors of

 

each county forming a part of such the district.

 

     Sec. 70. The county board of supervisors shall, within its

 

discretion, make such appropriations as are necessary to maintain

 

the various welfare human services within the county, as provided

 

in this act, and to defray the cost of administration of these

 

services. In the case of a district department, of social welfare

 

the county board of supervisors of each county forming a part of

 

said the district shall appropriate funds necessary to care for the

 

welfare human services of such that county, and the administrative

 

expenses of the district department shall be defrayed by all of the

 

counties in said the district in the proportion that the population

 

of each county, according to the last federal census, bears to the

 

population of the entire district.

 

     Sec. 71. Except in respect to a city maintaining a separate

 

department of social welfare under section 48, of this act, the

 

distinction between township, city, and county poor is abolished.

 

     Sec. 73a. (1) The county treasurer is designated as the

 

custodian of all moneys money provided for the use of the county

 

department. of social services. The treasurer shall create and

 

maintain a social welfare fund. The following moneys, money,

 

exclusive of funds which that must be deposited in the child care

 

fund, shall be deposited in the social welfare fund:

 

     (a) All moneys funds raised by the county for the use of the

 

county department. of social services.

 


     (b) All funds made available to the county department of

 

social services by the state and federal governments.

 

     (c) All refunds and collections arising out of reimbursements

 

to the county department. of social services.

 

     (d) All funds made available to the county department from any

 

other source. whatsoever.

 

     (2) Money in the social welfare fund shall remain separate and

 

apart from all other funds of the county and shall not be

 

transferred to or commingled with other funds of the county. The

 

fund shall be used exclusively for carrying out the purposes

 

authorized by this act.

 

     (3) The state department shall prescribe, with respect to the

 

social welfare fund, such subaccounts and expenditure

 

classifications as the state department deems considers suitable,

 

to comply with requirements to secure federal funds, to facilitate

 

uniform reporting, and for other purposes. The state department may

 

promulgate rules, plans, procedures, and controls with respect to

 

accounting, disbursements, and any other kind of element of

 

financial transactions in connection with the social welfare fund.

 

The county board of commissioners may establish further financial

 

practices not inconsistent with the above. The state department

 

shall prescribe the manner and extent to which the county

 

department shall keep on file vouchers or other authorizations to

 

show the items and reasons for which money is disbursed.

 

     Sec. 76. (1) This act shall does not be construed to relieve

 

the liability for support by relatives under the provisions of

 

chapter 1 of Act No. 146 of the Public Acts of 1925, as amended,

 


being sections 401.1 to 401.21 of the Compiled Laws of 1948, I of

 

1925 PA 146, MCL 401.1 to 401.9, but shall be construed as

 

superseding supersedes the definition of settlement contained in

 

section 1 of chapter 1. I of 1925 PA 146, MCL 401.1. The terms of

 

chapter 1 I of 1925 PA 146, MCL 401.1 to 401.9, with respect to

 

liability for support by relatives may be invoked in connection

 

with any form of public aid or relief administered under this act.

 

     (2) The social welfare county board of the county of legal

 

settlement of a recipient of any form of aid granted under this

 

act, or a social welfare county board granting aid, may maintain an

 

action in the circuit court for the county the board represents, or

 

the circuit court for the county in which the defendant resides or

 

is found: (a) Against the county, township, or city neglecting or

 

refusing to allow and pay a bill owing under this act and presented

 

more than 90 days prior to the commencement of the action; or (b)

 

Against a recipient of emergency hospitalization or his or her

 

relatives who are neglecting or refusing to acknowledge

 

responsibility for reimbursement of the county for the costs of the

 

emergency hospitalization; or (c) Against a recipient of

 

hospitalization or his or her relatives legally liable for his or

 

her support to enforce its agreement with the recipient or

 

relatives for reimbursement of the county for hospitalization

 

expenses.

 

     (3) The prosecuting attorney shall represent the county social

 

welfare board in such actions, service, or process of courts of

 

like jurisdiction in any county in this state, and such service and

 

return thereof of service in accordance with law shall give gives

 


the court in which the action is commenced full jurisdiction to

 

hear and determine the cause. If any legally responsible relative

 

of a poor person receiving or having received any form of public

 

welfare support in this state lives or can be found in some other

 

state which that has enacted a uniform reciprocal enforcement of

 

support law, suitable action may be initiated in Michigan this

 

state by the prosecuting attorney against the legally responsible

 

relative under the provisions of Act No. 8 of the Public Acts of

 

1952, as amended, being sections 780.151 to 780.172 of the Compiled

 

Laws of 1948.the revised uniform reciprocal enforcement of support

 

act, 1952 PA 8, MCL 780.151 to 780.183.

 

     Sec. 77. The county department of social welfare is hereby

 

authorized and empowered to collect and receive funds to reimburse

 

the county for expenditures made on behalf of recipients of any

 

form of aid or relief, or hospital care provided at county expense,

 

from such recipients, their relatives legally responsible under the

 

laws of this state for the support of such those recipients, or

 

from the estates of recipients, in accordance with the laws of this

 

state, and the rules and regulations of the state department, of

 

social welfare, which funds, reimbursed for direct relief, shall be

 

disbursed to carry out the provisions of this act. Agreements for

 

the reimbursement of the county department of social welfare for

 

relief granted to persons or families in their own homes may be

 

required in the cases of applicants whose need for relief is based

 

in whole or in part on inability to obtain funds, moneys, moneys

 

which money, money that may be received, income, or assets

 

unavailable at the time of application for or grant of relief, :

 


Provided, however, That if earnings from wages or salaries not due

 

or owing at the time of application for or grant of relief shall

 

are not be included in reimbursement agreements. Reimbursements for

 

any form of hospital care provided at county expense shall be

 

collected and paid over by the department of social welfare to the

 

county treasurer for deposit to the fund from which such the

 

expenditure was made, : Provided, That if no county department of

 

social welfare nor or any other agency of county government shall

 

collect or receive collects or receives reimbursements for

 

hospitalization or other treatment for tuberculosis, whether there

 

is an agreement to reimburse the county or not, unless such the

 

reimbursement has been ordered by the state commissioner of health

 

or is found acceptable by him or her as a voluntary reimbursement

 

as provided in section 3a of Act No. 314 of the Public Acts of

 

1927, as added, being section 329.403a of the Compiled Laws of

 

1948, former 1927 PA 314, MCL 329.403a, and no county department of

 

social welfare shall collect or receive collects or receives

 

reimbursements for hospitalization or other treatment for any other

 

communicable disease or diseases. Nothing in this This section

 

shall be construed to does not affect the civil service status, if

 

any, of county employees now engaged in collecting reimbursements

 

for the county for any form of aid, relief, or hospital care, under

 

the supervision of any other county department. All such of these

 

employees, and all collection records and files in the county on

 

cases investigated by the department of social welfare prior to the

 

effective date hereof, before September 23, 1949, shall be

 

transferred to and be under the supervision, control, and

 


jurisdiction of the county board of social welfare in such that

 

county.

 

     If a county has acknowledged liability or has reimbursed

 

another county for the cost of any form of aid, relief, or hospital

 

care provided at county expense, the county so that was reimbursed

 

shall credit or remit, as the case may be, to the paying county,

 

within 60 days, any additional collections thereon after that from

 

any other source. It shall be the duty of each Each county

 

department of social welfare to shall continue to collect according

 

to its best judgment and ability, if so requested by the county

 

which that has acknowledged or paid for any form of aid, relief, or

 

hospital care provided at county expense.

 

     Sec. 77a. Under such the rules and regulations as that the

 

state department of social welfare shall promulgate, promulgates,

 

inconsequential earnings shall not affect the determination of any

 

amount of assistance to be paid by the state for old age assistance

 

, aid to dependent children or temporary assistance for needy

 

families or matched by the state in connection with the granting of

 

welfare relief.

 

     Sec. 80. It shall be the duty of the The county social welfare

 

board to shall report to the state department monthly, and in such

 

a form as that the state department shall furnish and prescribe,

 

furnishes and prescribes, the activities of the county department.

 

The board shall also make such other and additional reports as

 

shall be required by the state department.

 

     Sec. 83. (1) The director of the state department of social

 

services or the director of any county department of social

 


services may demand and receive from any financial institution, the

 

Michigan department of treasury, the Michigan employment security

 

commission or a successor entity, employer, or former employer

 

doing business in this state, information with respect to the

 

transactions with any such financial institution, dates of

 

employment, number of hours worked, and rate of pay of an applicant

 

for or recipient of any form of aid or relief under this act. The

 

officers and employees of the institution or employer shall furnish

 

the information on the written demand of the director. A demand

 

directed to a financial institution or an employer shall be in the

 

form of a subpoena issued by the director under section 8 when the

 

identification of applicants and recipients to the financial

 

institution or employer is by means of computer tape or other data

 

process media. The financial institution or employer shall furnish

 

the information within 15 days after the demand or subpoena is

 

received by the financial institution or employer.

 

     (2) As used in this section, "financial institution" means a

 

state bank, a national banking association, a state or federal

 

savings and loan association, a federal savings bank, or a state or

 

federal credit union.

 

     (3) The director of the state department shall cooperate with

 

the Michigan employment security commission in the development of a

 

computer data matching system by which records of the department of

 

social services concerning applicants for, and recipients of,

 

assistance under this act shall be compared with claimant and wage

 

information requested on at least a quarterly basis from, and

 

furnished by, the Michigan employment security commission pursuant

 


to or a successor entity under sections 11 and 13 of the Michigan

 

employment security act, Act No. 1 of the Public Acts of the Extra

 

Session of 1936, being sections 421.11 and 421.13 of the Michigan

 

Compiled Laws. 1936 (Ex Sess) PA 1, MCL 421.11 and 421.13. The

 

computer data matching system shall be used only to determine or

 

verify eligibility of an individual for aid or assistance

 

administered under this act or the amount or type of assistance for

 

which the individual is eligible; to investigate or prosecute

 

instances of alleged fraud; or to establish and collect child

 

support obligations or locate individuals owing child support

 

obligations.

 

     (4) The information obtained under subsection (3) shall be

 

considered is confidential and shall not be disclosed by officers

 

or employees of the department of social services to any person or

 

agency except as provided in section 11(b)(2) of Act No. 1 of the

 

Public Acts of the Extra Session of 1936.the Michigan employment

 

security act, 1936 (Ex Sess) PA 1, MCL 421.11.

 

     Sec. 84. In respect to matters in which a district department

 

of social welfare differs from a county department, of social

 

welfare, the state department shall have has the power to

 

promulgate rules and regulations relating to organization,

 

operation, and procedure affecting such a district or city

 

department, which rules and regulations shall be are binding upon

 

all persons and authorities concerned.

 

     Sec. 85. The powers and duties now vested by law in the county

 

superintendents of the poor, except as otherwise provided in

 

subdivision (c) of section 55 of this act, section 55(c), are

 


hereby transferred to and vested in the several county departments.

 

of social welfare herein created. Whenever A reference is made to

 

the above offices in any law of the state, or whenever a reference

 

is made to the supervisor of any township or ward, or to the

 

director of poor of any city, with respect to the powers and duties

 

transferred to the county department, of social welfare, reference

 

shall be deemed to be intended to be made is a reference to the

 

said county board. of social welfare.

 

     Sec. 86. All of the powers and duties prescribed in any law of

 

this state incidental of the transfer of the powers and duties

 

herein provided for shall be in this section are transferred to and

 

be vested in the several county departments. of social welfare.

 

     Sec. 90. No member of the state commission or of any county

 

social welfare board and no executive official or employe employee

 

of the state or any county welfare department shall participate in

 

any form of political activity other than may be appropriate to the

 

exercise of the individual's rights, duties, and privileges or use

 

his or her official position for any political purpose. Any employe

 

employee of any department violating this provision shall be is

 

subject to discharge or such other disciplinary action as may be

 

provided by the rules and regulations of the state department.

 

     Sec. 100. Persons who were employees of a city or county

 

department of social welfare immediately prior to the effective

 

date of this amendatory act, before October 27, 1965, who (1) were

 

members of a city or county retirement system and (2) become

 

members of the state employees' retirement system, shall be are

 

entitled to benefits provided by Act No. 88 of the Public Acts of

 


1961, as amended, entitled "An act to provide for the preservation

 

and continuity of retirement system service credits for public

 

employees who transfer their employment between units of

 

government", the reciprocal retirement act, 1961 PA 88, MCL 38.1101

 

to 38.1106, notwithstanding that the city or county might not have

 

adopted the said Act No. 88. reciprocal retirement act, 1961 PA 88,

 

MCL 38.1101 to 38.1106. Whenever the service requirements for

 

benefits to be paid under Act No. 240 of the Public Acts of 1943,

 

as amended, the state employees' retirement act, 1943 PA 240, MCL

 

38.1 to 38.69, to the said persons who become members of the state

 

employees' retirement system are lower than the service

 

requirements in the said Act No. 88, reciprocal retirement act,

 

1961 PA 88, MCL 38.1101 to 38.1106, the provisions of the said Act

 

No. 240 shall state employees' retirement act, 1943 PA 240, MCL

 

38.1 to 38.69, apply with respect to the said those persons.

 

     Sec. 105. (1) The department of community health shall

 

establish a program for medical assistance for the medically

 

indigent under title XIX. The director of the department of

 

community health shall administer the program established by the

 

department of community health and shall be is responsible for

 

determining eligibility under this act. Except as otherwise

 

provided in this act, the director may delegate the authority to

 

perform a function necessary or appropriate for the proper

 

administration of the program.

 

     (2) As used in this section and sections 106 to 112: , "peer

 

     (a) "Peer review advisory committee" means an entity

 

comprising professionals and experts who are selected by the

 


director and nominated by an organization or association or

 

organizations or associations representing a class of providers.

 

     (b) (3) As used in sections 106 to 112, "professionally

 

"Professionally accepted standards" means those standards developed

 

by peer review advisory committees and professionals and experts

 

with whom the director is required to consult.

 

     (c) (4) As used in this section and sections 106 to 112,

 

"provider" "Provider means an individual, sole proprietorship,

 

partnership, association, corporation, institution, agency, or

 

other legal entity, who has entered into an agreement of enrollment

 

specified by the director under section 111b(4).

 

     Sec. 105a. (1) The department of community health shall

 

develop written information that sets forth the eligibility

 

requirements for participation in the program of medical assistance

 

administered under this act. The written information shall be

 

updated not less than every 2 years.

 

     (2) The department of community health shall provide copies of

 

the written information described in subsection (1) to all of the

 

following persons, agencies, and health facilities:

 

     (a) A person applying to the department of community health

 

for participation in the program of medical assistance administered

 

under this act who is considering institutionalization for the

 

person or person's family member in a nursing home or home for the

 

aged.

 

     (b) Each nursing home in the state.

 

     (c) Each hospital in the state.

 

     (d) Each adult foster care facility in the state.

 


     (e) Each area agency on aging.

 

     (f) The office of services to the aging.

 

     (g) Local health departments.

 

     (h) Community mental health boards.

 

     (i) Medicaid and medicare Medicare certified home health

 

agencies.

 

     (j) County medical care facilities.

 

     (k) Appropriate department of community health personnel.

 

     (l) Any other person, agency, or health facility determined to

 

be appropriate by the department. of community health.

 

     Sec. 105b. (1) The department of community health shall create

 

incentives for individual medical assistance recipients who

 

practice specified positive health behaviors. The incentives

 

described in this subsection may include, but are not limited to,

 

expanded benefits and incentives relating to premiums, co-pays, or

 

benefits. The positive health behaviors described in this

 

subsection may include, but are not limited to, participation in

 

health risk assessments and health screenings, compliance with

 

medical treatment, attendance at scheduled medical appointments,

 

participation in smoking cessation treatment, exercise, prenatal

 

visits, immunizations, and attendance at recommended educational

 

health programs.

 

     (2) The department of community health shall create pay-for-

 

performance incentives for contracted medicaid Medicaid health

 

maintenance organizations. The medicaid Medicaid health maintenance

 

organization contracts shall include incentives for meeting health

 

outcome targets for chronic disease states, increasing the number

 


of medical assistance recipients who practice positive health

 

behaviors, and meeting patient compliance targets established by

 

the department. of community health. Priority shall be given to

 

strategies that prevent and manage the 10 most prevalent and costly

 

ailments affecting medical assistance recipients.

 

     (3) The department of community health shall establish a

 

preferred product and service formulary program for durable medical

 

equipment. The department of community health shall work with the

 

centers Centers for medicare Medicare and medicaid services

 

Medicaid Services to determine if a joint partnership with medicare

 

Medicare is possible in establishing the program described in this

 

subsection as a means of achieving savings and efficiencies for

 

both the medicaid Medicaid and medicare Medicare programs. The

 

preferred product and service formulary program for durable medical

 

equipment shall require participation from the department of

 

community health and shall permit the contracted medicaid Medicaid

 

health maintenance organizations and provider organizations to

 

participate.

 

     (4) The department of community health shall seek financial

 

support for electronic health records, including, but not limited

 

to, personal health records, e-prescribing, web-based medical

 

records, and other health information technology initiatives using

 

medicaid Medicaid funds.

 

     (5) The department of community health shall include in any

 

federal waiver request that is submitted with the intent to secure

 

federal matching funds to cover the medically uninsured nonmedicaid

 

non-Medicaid population in the state language to allow the

 


department of community health to establish, at a minimum, the

 

programs required under subsections (1) and (2).

 

     (6) The department of community health shall not implement

 

incentives under this section that conflict with federal statute or

 

regulation.

 

     Sec. 105c. The director of the department of community health

 

shall submit a recommendation to the senate majority leader, the

 

speaker of the house, and the state budget office on how to most

 

effectively determine medicaid Medicaid eligibility and enrollment

 

for all applicants by January 1, 2015. The department of community

 

health may delegate this function to another state agency, perform

 

the function directly, or contract with a private or nonprofit

 

entity, consistent with state law.

 

     Sec. 105d. (1) The department of community health shall seek a

 

waiver from the United States department Department of health

 

Health and human services Human Services to do, without

 

jeopardizing federal match dollars or otherwise incurring federal

 

financial penalties, and upon approval of the waiver shall do, all

 

of the following:

 

     (a) Enroll individuals eligible under section

 

1396a(a)(10)(A)(i)(VIII) of title XIX who meet the citizenship

 

provisions of 42 CFR 435.406 and who are otherwise eligible for the

 

medical assistance program under this act into a contracted health

 

plan that provides for an account into which money from any source,

 

including, but not limited to, the enrollee, the enrollee's

 

employer, and private or public entities on the enrollee's behalf,

 

can be deposited to pay for incurred health expenses, including,

 


but not limited to, co-pays. The account shall be administered by

 

the department of community health and can be delegated to a

 

contracted health plan or a third party administrator, as

 

considered necessary. The department of community health shall not

 

begin enrollment of individuals eligible under this subdivision

 

until January 1, 2014 or until the waiver requested in this

 

subsection is approved by the United States department Department

 

of health Health and human services, Human Services, whichever is

 

later.

 

     (b) Ensure that contracted health plans track all enrollee co-

 

pays incurred for the first 6 months that an individual is enrolled

 

in the program described in subdivision (a) and calculate the

 

average monthly co-pay experience for the enrollee. The average co-

 

pay amount shall be adjusted at least annually to reflect changes

 

in the enrollee's co-pay experience. The department of community

 

health shall ensure that each enrollee receives quarterly

 

statements for his or her account that include expenditures from

 

the account, account balance, and the cost-sharing amount due for

 

the following 3 months. The enrollee shall be is required to remit

 

each month the average co-pay amount calculated by the contracted

 

health plan into the enrollee's account. The department of

 

community health shall pursue a range of consequences for enrollees

 

who consistently fail to meet their cost-sharing requirements,

 

including, but not limited to, using the MIChild program as a

 

template and closer oversight by health plans in access to

 

providers. The department of community health shall report its plan

 

of action for enrollees who consistently fail to meet their cost-

 


sharing requirements to the legislature by June 1, 2014.

 

     (c) Give enrollees described in subdivision (a) a choice in

 

choosing among contracted health plans.

 

     (d) Ensure that all enrollees described in subdivision (a)

 

have access to a primary care practitioner who is licensed,

 

registered, or otherwise authorized to engage in his or her health

 

care profession in this state and to preventive services. The

 

department of community health shall require that all new enrollees

 

be assigned and have scheduled an initial appointment with their

 

primary care practitioner within 60 days of initial enrollment. The

 

department of community health shall monitor and track contracted

 

health plans for compliance in this area and consider that

 

compliance in any health plan incentive programs. The department of

 

community health shall ensure that the contracted health plans have

 

procedures to ensure that the privacy of the enrollees' personal

 

information is protected in accordance with the health insurance

 

portability and accountability act of 1996, Public Law 104-191.

 

     (e) Require enrollees described in subdivision (a) with annual

 

incomes between 100% and 133% of the federal poverty guidelines to

 

contribute not more than 5% of income annually for cost-sharing

 

requirements. Cost-sharing includes co-pays and required

 

contributions made into the accounts authorized under subdivision

 

(a). Contributions required in this subdivision do not apply for

 

the first 6 months an individual described in subdivision (a) is

 

enrolled. Required contributions to an account used to pay for

 

incurred health expenses shall be 2% of income annually.

 

Notwithstanding this minimum, required contributions may be reduced

 


by the contracting health plan. The reductions may occur only if

 

healthy behaviors are being addressed as attested to by the

 

contracted health plan based on uniform standards developed by the

 

department of community health in consultation with the contracted

 

health plans. The uniform standards shall include healthy behaviors

 

that must include, but are not limited to, completing a department

 

of community health approved annual health risk assessment to

 

identify unhealthy characteristics, including alcohol use,

 

substance use disorders, tobacco use, obesity, and immunization

 

status. Co-pays can be reduced if healthy behaviors are met, but

 

not until annual accumulated co-pays reach 2% of income except co-

 

pays for specific services may be waived by the contracted health

 

plan if the desired outcome is to promote greater access to

 

services that prevent the progression of and complications related

 

to chronic diseases. If the enrollee described in subdivision (a)

 

becomes ineligible for medical assistance under the program

 

described in this section, the remaining balance in the account

 

described in subdivision (a) shall be returned to that enrollee in

 

the form of a voucher for the sole purpose of purchasing and paying

 

for private insurance.

 

     (f) By July 1, 2014, design and implement a co-pay structure

 

that encourages use of high-value services, while discouraging low-

 

value services such as nonurgent emergency department use.

 

     (g) During the enrollment process, inform enrollees described

 

in subdivision (a) about advance directives and require the

 

enrollees to complete a department of community health-approved

 

department-approved advance directive on a form that includes an

 


option to decline. The advance directives received from enrollees

 

as provided in this subdivision shall be transmitted to the peace

 

of mind registry organization to be placed on the peace of mind

 

registry.

 

     (h) By April 1, 2015, develop incentives for enrollees and

 

providers who assist the department of community health in

 

detecting fraud and abuse in the medical assistance program. The

 

department of community health shall provide an annual report that

 

includes the type of fraud detected, the amount saved, and the

 

outcome of the investigation to the legislature.

 

     (i) Allow for services provided by telemedicine from a

 

practitioner who is licensed, registered, or otherwise authorized

 

under section 16171 of the public health code, 1978 PA 368, MCL

 

333.16171, to engage in his or her health care profession in the

 

state where the patient is located.

 

     (2) For services rendered to an uninsured individual, a

 

hospital that participates in the medical assistance program under

 

this act shall accept 115% of medicare Medicare rates as payments

 

in full from an uninsured individual with an annual income level up

 

to 250% of the federal poverty guidelines. This subsection applies

 

whether or not either or both of the waivers requested under this

 

section are approved, the patient protection and affordable care

 

act is repealed, or the state terminates or opts out of the program

 

established under this section.

 

     (3) Not more than 7 calendar days after receiving each of the

 

official waiver-related written correspondence from the United

 

States department Department of health Health and human services

 


Human Services to implement the provisions of this section, the

 

department of community health shall submit a written copy of the

 

approved waiver provisions to the legislature for review.

 

     (4) By September 30, 2015, the department of community health

 

shall develop and implement a plan to enroll all existing fee-for-

 

service enrollees into contracted health plans if allowable by law,

 

if the medical assistance program is the primary payer and if that

 

enrollment is cost-effective. This includes all newly eligible

 

enrollees as described in subsection (1)(a). The department of

 

community health shall include contracted health plans as the

 

mandatory delivery system in its waiver request. The department of

 

community health also shall pursue any and all necessary waivers to

 

enroll persons eligible for both medicaid Medicaid and medicare

 

Medicare into the 4 integrated care demonstration regions beginning

 

July 1, 2014. By September 30, 2015, the department of community

 

health shall identify all remaining populations eligible for

 

managed care, develop plans for their integration into managed

 

care, and provide recommendations for a performance bonus incentive

 

plan mechanism for long-term care managed care providers that are

 

consistent with other managed care performance bonus incentive

 

plans. By September 30, 2015, the department of community health

 

shall make recommendations for a performance bonus incentive plan

 

for long-term care managed care providers of up to 3% of their

 

medicaid Medicaid capitation payments, consistent with other

 

managed care performance bonus incentive plans. These payments

 

shall comply with federal requirements and shall be based on

 

measures that identify the appropriate use of long-term care

 


services and that focus on consumer satisfaction, consumer choice,

 

and other appropriate quality measures applicable to community-

 

based and nursing home services. Where appropriate, these quality

 

measures shall be consistent with quality measures used for similar

 

services implemented by the integrated care for duals demonstration

 

project. This subsection applies whether or not either or both of

 

the waivers requested under this section are approved, the patient

 

protection and affordable care act is repealed, or the state

 

terminates or opts out of the program established under this

 

section.

 

     (5) By September 30, 2016, the department of community health

 

shall implement a pharmaceutical benefit that utilizes co-pays at

 

appropriate levels allowable by the centers Centers for medicare

 

Medicare and medicaid services Medicaid Services to encourage the

 

use of high-value, low-cost prescriptions, such as generic

 

prescriptions when such an alternative exists for a branded product

 

and 90-day prescription supplies, as recommended by the enrollee's

 

prescribing provider and as is consistent with section 109h and

 

sections 9701 to 9709 of the public health code, 1978 PA 368, MCL

 

333.9701 to 333.9709. This subsection applies whether or not either

 

or both of the waivers requested under this section are approved,

 

the patient protection and affordable care act is repealed, or the

 

state terminates or opts out of the program established under this

 

section.

 

     (6) The department of community health shall work with

 

providers, contracted health plans, and other departments as

 

necessary to create processes that reduce the amount of uncollected

 


cost-sharing and reduce the administrative cost of collecting cost-

 

sharing. To this end, a minimum 0.25% of payments to contracted

 

health plans shall be withheld for the purpose of establishing a

 

cost-sharing compliance bonus pool beginning October 1, 2015. The

 

distribution of funds from the cost-sharing compliance pool shall

 

be based on the contracted health plans' success in collecting

 

cost-sharing payments. The department of community health shall

 

develop the methodology for distribution of these funds. This

 

subsection applies whether or not either or both of the waivers

 

requested under this section are approved, the patient protection

 

and affordable care act is repealed, or the state terminates or

 

opts out of the program established under this section.

 

     (7) By June 1, 2014, the department of community health shall

 

develop a methodology that decreases the amount an enrollee's

 

required contribution may be reduced as described in subsection

 

(1)(e) based on, but not limited to, factors such as an enrollee's

 

failure to pay cost-sharing requirements and the enrollee's

 

inappropriate utilization of emergency departments.

 

     (8) The program described in this section is created in part

 

to extend health coverage to the state's low-income citizens and to

 

provide health insurance cost relief to individuals and to the

 

business community by reducing the cost shift attendant to

 

uncompensated care. Uncompensated care does not include courtesy

 

allowances or discounts given to patients. The medicaid Medicaid

 

hospital cost report shall be part of the uncompensated care

 

definition and calculation. In addition to the medicaid Medicaid

 

hospital cost report, the department of community health shall

 


collect and examine other relevant financial data for all hospitals

 

and evaluate the impact that providing medical coverage to the

 

expanded population of enrollees described in subsection (1)(a) has

 

had on the actual cost of uncompensated care. This shall be

 

reported for all hospitals in the state. By December 31, 2014, the

 

department of community health shall make an initial baseline

 

uncompensated care report containing at least the data described in

 

this subsection to the legislature and each December 31 after that

 

shall make a report regarding the preceding fiscal year's evidence

 

of the reduction in the amount of the actual cost of uncompensated

 

care compared to the initial baseline report. The baseline report

 

shall use fiscal year 2012-2013 data. Based on the evidence of the

 

reduction in the amount of the actual cost of uncompensated care

 

borne by the hospitals in this state, beginning April 1, 2015, the

 

department of community health shall proportionally reduce the

 

disproportionate share payments to all hospitals and hospital

 

systems for the purpose of producing general fund savings. The

 

department of community health shall recognize any savings from

 

this reduction by September 30, 2016. All the reports required

 

under this subsection shall be made available to the legislature

 

and shall be easily accessible on the department of community

 

health's department's website.

 

     (9) The department of insurance and financial services shall

 

examine the financial reports of health insurers and evaluate the

 

impact that providing medical coverage to the expanded population

 

of enrollees described in subsection (1)(a) has had on the cost of

 

uncompensated care as it relates to insurance rates and insurance

 


rate change filings, as well as its resulting net effect on rates

 

overall. The department of insurance and financial services shall

 

consider the evaluation described in this subsection in the annual

 

approval of rates. By December 31, 2014, the department of

 

insurance and financial services shall make an initial baseline

 

report to the legislature regarding rates and each December 31

 

after that shall make a report regarding the evidence of the change

 

in rates compared to the initial baseline report. All the reports

 

required under this subsection shall be made available to the

 

legislature and shall be made available and easily accessible on

 

the department of community health's department's website.

 

     (10) The department of community health shall explore and

 

develop a range of innovations and initiatives to improve the

 

effectiveness and performance of the medical assistance program and

 

to lower overall health care costs in this state. The department of

 

community health shall report the results of the efforts described

 

in this subsection to the legislature and to the house and senate

 

fiscal agencies by September 30, 2015. The report required under

 

this subsection shall also be made available and easily accessible

 

on the department of community health's department's website. The

 

department of community health shall pursue a broad range of

 

innovations and initiatives as time and resources allow that shall

 

include, at a minimum, all of the following:

 

     (a) The value and cost-effectiveness of optional medicaid

 

Medicaid benefits as described in federal statute.

 

     (b) The identification of private sector, primarily small

 

business, health coverage benefit differences compared to the

 


medical assistance program services and justification for the

 

differences.

 

     (c) The minimum measures and data sets required to effectively

 

measure the medical assistance program's return on investment for

 

taxpayers.

 

     (d) Review and evaluation of the effectiveness of current

 

incentives for contracted health plans, providers, and

 

beneficiaries with recommendations for expanding and refining

 

incentives to accelerate improvement in health outcomes, healthy

 

behaviors, and cost-effectiveness and review of the compliance of

 

required contributions and co-pays.

 

     (e) Review and evaluation of the current design principles

 

that serve as the foundation for the state's medical assistance

 

program to ensure that the program is cost-effective and that

 

appropriate incentive measures are utilized. The review shall

 

include, at a minimum, the auto-assignment algorithm and

 

performance bonus incentive pool. This subsection applies whether

 

or not either or both of the waivers requested under this section

 

are approved, the patient protection and affordable care act is

 

repealed, or the state terminates or opts out of the program

 

established under this section.

 

     (f) The identification of private sector initiatives used to

 

incent incentivize individuals to comply with medical advice.

 

     (11) By December 31, 2015, the department of community health

 

shall review and report to the legislature the feasibility of

 

programs recommended by multiple national organizations that

 

include, but are not limited to, the council Council of state

 


governments, State Governments, the national conference National

 

Conference of state legislatures, State Legislatures, and the

 

American legislative exchange council, Legislative Exchange

 

Council, on improving the cost-effectiveness of the medical

 

assistance program.

 

     (12) By January 1, 2014, the department of community health in

 

collaboration with the contracted health plans and providers shall

 

create financial incentives for all of the following:

 

     (a) Contracted health plans that meet specified population

 

improvement goals.

 

     (b) Providers who meet specified quality, cost, and

 

utilization targets.

 

     (c) Enrollees who demonstrate improved health outcomes or

 

maintain healthy behaviors as identified in a health risk

 

assessment as identified by their primary care practitioner who is

 

licensed, registered, or otherwise authorized to engage in his or

 

her health care profession in this state. This subsection applies

 

whether or not either or both of the waivers requested under this

 

section are approved, the patient protection and affordable care

 

act is repealed, or the state terminates or opts out of the program

 

established under this section.

 

     (13) By October 1, 2015, the performance bonus incentive pool

 

for contracted health plans that are not specialty prepaid health

 

plans shall include inappropriate utilization of emergency

 

departments, ambulatory care, contracted health plan all-cause

 

acute 30-day readmission rates, and generic drug utilization when

 

such an that alternative exists for a branded product and

 


consistent with section 109h and sections 9701 to 9709 of the

 

public health code, 1978 PA 368, MCL 333.9701 to 333.9709, as a

 

percentage of total. These measurement tools shall be considered

 

and weighed within the 6 highest factors used in the formula. This

 

subsection applies whether or not either or both of the waivers

 

requested under this section are approved, the patient protection

 

and affordable care act is repealed, or the state terminates or

 

opts out of the program established under this section.

 

     (14) The department of community health shall ensure that all

 

capitated payments made to contracted health plans are actuarially

 

sound. This subsection applies whether or not either or both of the

 

waivers requested under this section are approved, the patient

 

protection and affordable care act is repealed, or the state

 

terminates or opts out of the program established under this

 

section.

 

     (15) The department of community health shall maintain

 

administrative costs at a level of not more than 1% of the

 

department of community health's department's appropriation of the

 

state medical assistance program. These administrative costs shall

 

be capped at the total administrative costs for the fiscal year

 

ending September 30, 2016, except for inflation and project-related

 

costs required to achieve medical assistance net general fund

 

savings. This subsection applies whether or not either or both of

 

the waivers requested under this section are approved, the patient

 

protection and affordable care act is repealed, or the state

 

terminates or opts out of the program established under this

 

section.

 


     (16) By October 1, 2015, the department of community health

 

shall establish uniform procedures and compliance metrics for

 

utilization by the contracted health plans to ensure that cost-

 

sharing requirements are being met. This shall include

 

ramifications for the contracted health plans' failure to comply

 

with performance or compliance metrics. This subsection applies

 

whether or not either or both of the waivers requested under this

 

section are approved, the patient protection and affordable care

 

act is repealed, or the state terminates or opts out of the program

 

established under this section.

 

     (17) Beginning October 1, 2015, the department of community

 

health shall withhold, at a minimum, 0.75% of payments to

 

contracted health plans, except for specialty prepaid health plans,

 

for the purpose of expanding the existing performance bonus

 

incentive pool. Distribution of funds from the performance bonus

 

incentive pool is contingent on the contracted health plan's

 

completion of the required performance or compliance metrics. This

 

subsection applies whether or not either or both of the waivers

 

requested under this section are approved, the patient protection

 

and affordable care act is repealed, or the state terminates or

 

opts out of the program established under this section.

 

     (18) By October 1, 2015, the department of community health

 

shall withhold, at a minimum, 0.75% of payments to specialty

 

prepaid health plans for the purpose of establishing a performance

 

bonus incentive pool. Distribution of funds from the performance

 

bonus incentive pool is contingent on the specialty prepaid health

 

plan's completion of the required performance of compliance metrics

 


, which that shall include, at a minimum, partnering with other

 

contracted health plans to reduce nonemergent emergency department

 

utilization, increased participation in patient-centered medical

 

homes, increased use of electronic health records and data sharing

 

with other providers, and identification of enrollees who may be

 

eligible for services through the veterans administration. Veterans

 

Administration. This subsection applies whether or not either or

 

both of the waivers requested under this section are approved, the

 

patient protection and affordable care act is repealed, or the

 

state terminates or opts out of the program established under this

 

section.

 

     (19) The department of community health shall measure

 

contracted health plan or specialty prepaid health plan performance

 

metrics, as applicable, on application of standards of care as that

 

relates to appropriate treatment of substance use disorders and

 

efforts to reduce substance use disorders. This subsection applies

 

whether or not either or both of the waivers requested under this

 

section are approved, the patient protection and affordable care

 

act is repealed, or the state terminates or opts out of the program

 

established under this section.

 

     (20) By September 1, 2015, in addition to the waiver requested

 

in subsection (1), the department of community health shall seek an

 

additional waiver from the United States department Department of

 

health Health and human services Human Services that requires

 

individuals who are between 100% and 133% of the federal poverty

 

guidelines and who have had medical assistance coverage for 48

 

cumulative months beginning on the date of their enrollment into

 


the program described in subsection (1) to choose 1 of the

 

following options:

 

     (a) Change their medical assistance program eligibility

 

status, in accordance with federal law, to be considered eligible

 

for federal advance premium tax credit and cost-sharing subsidies

 

from the federal government to purchase private insurance coverage

 

through an American health benefit exchange without financial

 

penalty to the state.

 

     (b) Remain in the medical assistance program but increase

 

cost-sharing requirements up to 7% of income. Required

 

contributions shall be deposited into an account used to pay for

 

incurred health expenses for covered benefits and shall be 3.5% of

 

income but may be reduced as provided in subsection (1)(e). The

 

department of community health may reduce co-pays as provided in

 

subsection (1)(e), but not until annual accumulated co-pays reach

 

3% of income.

 

     (21) The department of community health shall notify enrollees

 

60 days before the end of the enrollee's forty-eighth month that

 

coverage under the current program is no longer available to them

 

and that, in order to continue coverage, the enrollee must choose

 

between the options described in subsection (20)(a) or (b).

 

     (22) The department of community health shall implement a

 

system for individuals who fail to choose an option described under

 

subsection (20)(a) or (b) within a specified time determined by the

 

department of community health that enrolls those individuals into

 

the option described in subsection (20)(b).

 

     (23) If the waiver requested under subsection (20) is not

 


approved by the United States department Department of health

 

Health and human services Human Services by December 31, 2015,

 

medical coverage for individuals described in subsection (1)(a)

 

shall no longer be provided. If the waiver is not approved by

 

December 31, 2015, then by January 31, 2016, the department of

 

community health shall notify enrollees that the program described

 

in subsection (1) shall be terminated on April 30, 2016. If a

 

waiver requested under subsection (1) or (20) is approved and is

 

required to be renewed at any time after approval, medical coverage

 

for individuals described in subsection (1)(a) shall no longer be

 

provided if either renewal request is not approved by the United

 

States department Department of health Health and human services

 

Human Services or if a waiver is canceled after approval. The

 

department of community health shall give enrollees 4 months'

 

advance notice before termination of coverage based on a renewal

 

request not being approved as described in this subsection. A

 

notification described in this subsection shall state that the

 

enrollment was terminated due to the failure of the United States

 

department Department of health Health and human services Human

 

Services to approve the waiver requested under subsection (20) or

 

renewal of a waiver described in this subsection.

 

     (24) Individuals described in 42 CFR 440.315 are not subject

 

to the provisions of the waiver described in subsection (20).

 

     (25) The department of community health shall make available

 

at least 3 years of state medical assistance program data, without

 

charge, to any vendor considered qualified by the department of

 

community health who indicates interest in submitting proposals to

 


contracted health plans in order to implement cost savings and

 

population health improvement opportunities through the use of

 

innovative information and data management technologies. Any

 

program or proposal to the contracted health plans must be

 

consistent with the state's goals of improving health, increasing

 

the quality, reliability, availability, and continuity of care, and

 

reducing the cost of care of the eligible population of enrollees

 

described in subsection (1)(a). The use of the data described in

 

this subsection for the purpose of assessing the potential

 

opportunity and subsequent development and submission of formal

 

proposals to contracted health plans is not a cost or contractual

 

obligation to the department of community health or the state.

 

     (26) If the department of community health does not receive

 

approval for both of the waivers required under this section before

 

December 31, 2015, the program described in this section is

 

terminated. The department of community health shall request

 

written documentation from the United States department Department

 

of health Health and human services Human Services that if the

 

waivers described in this section are rejected causing the medical

 

assistance program to revert back to the eligibility requirements

 

in effect on the effective date of the amendatory act that added

 

this section, March 14, 2014, excluding any waivers that have not

 

been renewed, there shall be no financial federal funding penalty

 

to the state associated with the implementation and subsequent

 

cancellation of the program created in this section. If the

 

department of community health does not receive this documentation

 

by December 31, 2013, the department of community health shall not

 


implement the program described in this section.

 

     (27) This section does not apply if either of the following

 

occurs:

 

     (a) If the department of community health is unable to obtain

 

either of the federal waivers requested in subsection (1) or (20).

 

     (b) If federal government matching funds for the program

 

described in this section are reduced below 100% and annual state

 

savings and other nonfederal net savings associated with the

 

implementation of that program are not sufficient to cover the

 

reduced federal match. The department of community health shall

 

determine and the state budget office shall approve how annual

 

state savings and other nonfederal net savings shall be calculated

 

by June 1, 2014. By September 1, 2014, the calculations and

 

methodology used to determine the state and other nonfederal net

 

savings shall be submitted to the legislature.

 

     (28) The department of community health shall develop,

 

administer, and coordinate with the department of treasury a

 

procedure for offsetting the state tax refunds of an enrollee who

 

owes a liability to the state of past due uncollected cost-sharing,

 

as allowable by the federal government. The procedure shall include

 

a guideline that the department of community health submit to the

 

department of treasury, not later than November 1 of each year, all

 

requests for the offset of state tax refunds claimed on returns

 

filed or to be filed for that tax year. For the purpose of this

 

subsection, any nonpayment of the cost-sharing required under this

 

section owed by the enrollee is considered a liability to the state

 

under section 30a(2)(b) of 1941 PA 122, MCL 205.30a.

 


     (29) For the purpose of this subsection, any nonpayment of the

 

cost-sharing required under this section owed by the enrollee is

 

considered a current liability to the state under section 32 of the

 

McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL

 

432.32, and shall be handled in accordance with the procedures for

 

handling a liability to the state under that section, as allowed by

 

the federal government.

 

     (30) By November 30, 2013, the department of community health

 

shall convene a symposium to examine the issues of emergency

 

department overutilization and improper usage. By December 31,

 

2014, the department of community health shall submit a report to

 

the legislature that identifies the causes of overutilization and

 

improper emergency service usage that includes specific best

 

practice recommendations for decreasing overutilization of

 

emergency departments and improper emergency service usage, as well

 

as how those best practices are being implemented. Both broad

 

recommendations and specific recommendations related to the

 

medicaid Medicaid program, enrollee behavior, and health plan

 

access issues shall be included.

 

     (31) The department of community health shall contract with an

 

independent third party vendor to review the reports required in

 

subsections (8) and (9) and other data as necessary, in order to

 

develop a methodology for measuring, tracking, and reporting

 

medical cost and uncompensated care cost reduction or rate of

 

increase reduction and their effect on health insurance rates along

 

with recommendations for ongoing annual review. The final report

 

and recommendations shall be submitted to the legislature by

 


September 30, 2015.

 

     (32) For the purposes of submitting reports and other

 

information or data required under this section only, "legislature"

 

means the senate majority leader, the speaker of the house of

 

representatives, the chairs of the senate and house of

 

representatives appropriations committees, the chairs of the senate

 

and house of representatives appropriations subcommittees on the

 

department of community health budget, and the chairs of the senate

 

and house of representatives standing committees on health policy.

 

     (33) As used in this section:

 

     (a) "Patient protection and affordable care act" means the

 

patient protection and affordable care act, Public Law 111-148, as

 

amended by the federal health care and education reconciliation act

 

of 2010, Public Law 111-152.

 

     (b) "Peace of mind registry" and "peace of mind registry

 

organization" mean those terms as defined in section 10301 of the

 

public health code, 1978 PA 368, MCL 333.10301.

 

     (c) "State savings" means any state fund net savings,

 

calculated as of the closing of the financial books for the

 

department of community health at the end of each fiscal year, that

 

result from the program described in this section. The savings

 

shall result in a reduction in spending from the following state

 

fund accounts: adult benefit waiver, non-medicaid non-Medicaid

 

community mental health, and prisoner health care. Any identified

 

savings from other state fund accounts shall be proposed to the

 

house of representatives and senate appropriations committees for

 

approval to include in that year's state savings calculation. It is

 


the intent of the legislature that for fiscal year ending September

 

30, 2014 only, $193,000,000.00 of the state savings shall be

 

deposited in the roads and risks reserve fund created in section

 

211b of article VIII of 2013 PA 59.

 

     (d) "Telemedicine" means that term as defined in section 3476

 

of the insurance code of 1956, 1956 PA 218, MCL 500.3476.

 

     Sec. 105e. (1) There is appropriated for the department of

 

community health and the department of corrections to supplement

 

appropriations for the fiscal year ending September 30, 2014 an

 

adjusted gross appropriation of $1,524,903,500.00 appropriated from

 

$1,704,523,500.00 in federal revenues, $13,145,000.00 in other

 

state restricted revenues and a negative appropriation of

 

$192,765,000.00 in state general fund/general purpose revenue.

 

     (2) There is appropriated for the department of community

 

health for medicaid Medicaid reform a gross appropriation of

 

$1,549,115,700.00 appropriated from $1,704,523,500.00 in federal

 

revenues, $13,145,000.00 in other state restricted revenues, and a

 

negative appropriation of $168,552,800.00 in state general

 

fund/general purpose revenue with $1,395,876,600.00 for medical

 

services reform, $288,646,900.00 for mental health reform, and

 

$40,000,000.00 for administration, and negative appropriations to

 

reflect savings with $1,072,200.00 for plan first family planning

 

waiver, $14,723,900.00 for medicaid Medicaid adult benefits waiver,

 

$6,680,600.00 for medicaid Medicaid adult benefits waiver (mental

 

health), and $152,931,100.00 for community mental health non-

 

medicaid non-Medicaid services.

 

     (3) There is appropriated for the department of corrections a

 


negative adjusted gross appropriation of $24,212,200.00 in state

 

general fund/general purpose revenue with a negative appropriation

 

of $3,566,600.00 for prison re-entry and community support,

 

including a negative $377,200.00 for prisoner re-entry local

 

service providers and a negative $3,189,400.00 for prisoner re-

 

entry department of corrections programs; a negative appropriation

 

of $8,066,100.00 for substance abuse use disorder testing and

 

treatment services in field operations administration; and a

 

negative appropriation of $12,579,500.00 for prisoner health care

 

services in health care.

 

     (4) The appropriations in subsections (1), (2), and (3) for

 

the department of community health for medicaid Medicaid reform are

 

not available for expenditure until approval of the federal waiver

 

in section 105d(1), except that the funds associated with

 

administrative expenses are available for immediate expenditure.

 

The administrative expenditures shall not exceed $20,000,000.00 in

 

general fund. The department of community health shall enter into

 

memoranda of understanding with departments that incur

 

administrative expenditures related to the program identified in

 

section 105d(1).

 

     Sec. 105f. (1) The director of the department of community

 

health and the director of the department of insurance and

 

financial services shall establish a Michigan health care cost and

 

quality advisory committee consisting of 8 or more members.

 

     (2) The director, of the department of community health, or

 

his or her designee, and 1 department of community health staff

 

member and the director of the department of insurance and

 


financial services, or his or her designee, and 1 department of

 

insurance and financial services staff member are members of the

 

committee established in subsection (1). The chairs and minority

 

vice chairs of the senate and house health policy committees or

 

their designees are members of the committee. The committee members

 

shall elect a chairperson and appoint additional members to the

 

advisory committee established in subsection (1) necessary to

 

perform the duties prescribed in this section.

 

     (3) The advisory committee established in subsection (1) shall

 

issue a report by December 31, 2014 with recommendations on the

 

creation of a database on health care costs and health care quality

 

in this state. This report shall be transmitted to the legislature

 

and made available on the department of community health's

 

department's and the department of insurance and financial

 

services' service's websites. The advisory committee shall include

 

in the report at least all of the following:

 

     (a) A review of existing efforts across the United States to

 

make health care cost and quality more transparent.

 

     (b) A review of proposed legislation in this state to make

 

health care cost and quality more transparent.

 

     (c) A review of any existing standards governing the operation

 

of similar databases.

 

     (d) A consideration of both price and quality of health care

 

services rendered in this state.

 

     (e) Transparency and privacy issues.

 

     (f) The possible impact of uncompensated care on commercial

 

insurance rates.

 


     (g) Other methods to accurately estimate the uncompensated

 

care impact on commercial insurance rates.

 

     (4) This section applies whether or not either or both of the

 

waivers requested under section 105d are approved, the patient

 

protection and affordable care act is repealed, or the state

 

terminates or opts out of the program established under this

 

section.

 

     Sec. 106. (1) A medically indigent individual is defined as:

 

     (a) An individual receiving family independence program

 

benefits or an individual receiving supplemental security income

 

under title XVI or state supplementation under title XVI subject to

 

limitations imposed by the director according to title XIX.

 

     (b) Except as provided in sections 106a and 106b, an

 

individual who meets all of the following conditions:

 

     (i) The individual has applied in the manner the department of

 

community health prescribes.

 

     (ii) The individual's need for the type of medical assistance

 

available under this act for which the individual applied has been

 

professionally established and payment for it is not available

 

through the legal obligation of a public or private contractor to

 

pay or provide for the care without regard to the income or

 

resources of the patient. The state department and the department

 

of community health are is subrogated to any right of recovery that

 

a patient may have for the cost of hospitalization, pharmaceutical

 

services, physician services, nursing services, and other medical

 

services not to exceed the amount of funds expended by the state

 

department or the department of community health for the care and

 


treatment of the patient. The patient or other person acting in the

 

patient's behalf shall execute and deliver an assignment of claim

 

or other authorizations as necessary to secure the right of

 

recovery to the department. or the department of community health.

 

A payment may be withheld under this act for medical assistance for

 

an injury or disability for which the individual is entitled to

 

medical care or reimbursement for the cost of medical care under

 

sections 3101 to 3179 chapter 31 of the insurance code of 1956,

 

1956 PA 218, MCL 500.3101 to 500.3179, or under another policy of

 

insurance providing medical or hospital benefits, or both, for the

 

individual unless the individual's entitlement to that medical care

 

or reimbursement is at issue. If a payment is made, the state

 

department, or the department of community health, to enforce its

 

subrogation right, may do either of the following: (a) intervene or

 

join in an action or proceeding brought by the injured, diseased,

 

or disabled individual, the individual's guardian, personal

 

representative, estate, dependents, or survivors, against the third

 

person who may be liable for the injury, disease, or disability, or

 

against contractors, public or private, who may be liable to pay or

 

provide medical care and services rendered to an injured, diseased,

 

or disabled individual; (b) institute and prosecute a legal

 

proceeding against a third person who may be liable for the injury,

 

disease, or disability, or against contractors, public or private,

 

who may be liable to pay or provide medical care and services

 

rendered to an injured, diseased, or disabled individual, in state

 

or federal court, either alone or in conjunction with the injured,

 

diseased, or disabled individual, the individual's guardian,

 


personal representative, estate, dependents, or survivors. The

 

state department may institute the proceedings in its own name or

 

in the name of the injured, diseased, or disabled individual, the

 

individual's guardian, personal representative, estate, dependents,

 

or survivors. As provided in section 6023 of the revised judicature

 

act of 1961, 1961 PA 236, MCL 600.6023, the state department, or

 

the department of community health, in enforcing its subrogation

 

right, shall not satisfy a judgment against the third person's

 

property that is exempt from levy and sale. The injured, diseased,

 

or disabled individual may proceed in his or her own name,

 

collecting the costs without the necessity of joining the state

 

department, the department of community health, or the state as a

 

named party. The injured, diseased, or disabled individual shall

 

notify the state department or the department of community health

 

of the action or proceeding entered into upon commencement of the

 

action or proceeding. An action taken by the state , the state

 

department, or the department of community health in connection

 

with the right of recovery afforded by this section does not deny

 

the injured, diseased, or disabled individual any part of the

 

recovery beyond the costs expended on the individual's behalf by

 

the state department or the department. of community health. The

 

costs of legal action initiated by the state shall be paid by the

 

state. A payment shall not be made under this act for medical

 

assistance for an injury, disease, or disability for which the

 

individual is entitled to medical care or the cost of medical care

 

under the worker's disability compensation act of 1969, 1969 PA

 

317, MCL 418.101 to 418.941; except that payment may be made if an

 


appropriate application for medical care or the cost of the medical

 

care has been made under the worker's disability compensation act

 

of 1969, 1969 PA 317, MCL 418.101 to 418.941, entitlement has not

 

been finally determined, and an arrangement satisfactory to the

 

state department or the department of community health has been

 

made for reimbursement if the claim under the worker's disability

 

compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941, is

 

finally sustained.

 

     (iii) The individual has an annual income that is below, or

 

subject to limitations imposed by the director and because of

 

medical expenses falls below, the protected basic maintenance

 

level. The protected basic maintenance level for 1-person and 2-

 

person families shall be at least 100% of the payment standards

 

generally used to determine eligibility in the family independence

 

program. For families of 3 or more persons, the protected basic

 

maintenance level shall be at least 100% of the payment standard

 

generally used to determine eligibility in the family independence

 

program. These levels shall recognize regional variations and shall

 

not exceed 133-1/3% of the payment standard generally used to

 

determine eligibility in the family independence program.

 

     (iv) The individual, if a family independence program related

 

individual and living alone, has liquid or marketable assets of not

 

more than $2,000.00 in value, or, if a 2-person family, the family

 

has liquid or marketable assets of not more than $3,000.00 in

 

value. The department of community health shall establish

 

comparable liquid or marketable asset amounts for larger family

 

groups. Excluded in making the determination of the value of liquid

 


or marketable assets are the values of: the homestead; clothing;

 

household effects; $1,000.00 of cash surrender value of life

 

insurance, except that if the health of the insured makes

 

continuance of the insurance desirable, the entire cash surrender

 

value of life insurance is excluded from consideration, up to the

 

maximum provided or allowed by federal regulations and in

 

accordance with department of community health rules; the fair

 

market value of tangible personal property used in earning income;

 

an amount paid as judgment or settlement for damages suffered as a

 

result of exposure to agent orange, Agent Orange, as defined in

 

section 5701 of the public health code, 1978 PA 368, MCL 333.5701;

 

and a space or plot purchased for the purposes of burial for the

 

person. For individuals related to the title XVI program, the

 

appropriate resource levels and property exemptions specified in

 

title XVI shall be used.

 

     (v) Except as provided in section 106b, the individual is not

 

an inmate of a public institution except as a patient in a medical

 

institution.

 

     (vi) The individual meets the eligibility standards for

 

supplemental security income under title XVI or for state

 

supplementation under the act, subject to limitations imposed by

 

the director of the department of community health according to

 

title XIX; or meets the eligibility standards for family

 

independence program benefits; or meets the eligibility standards

 

for optional eligibility groups under title XIX, subject to

 

limitations imposed by the director of the department of community

 

health according to title XIX.

 


     (c) An individual is eligible under section

 

1396a(a)(10)(A)(i)(VIII) of title XIX. This subdivision does not

 

apply if either of the following occurs:

 

     (i) If the department of community health is unable to obtain a

 

federal waiver as provided in section 105d(1) or (20).

 

     (ii) If federal government matching funds for the program

 

described in section 105d are reduced below 100% and annual state

 

savings and other nonfederal net savings associated with the

 

implementation of that program are not sufficient to cover the

 

reduced federal match. The department of community health shall

 

determine and the state budget office shall approve how annual

 

state savings and other nonfederal net savings shall be calculated

 

by June 1, 2014. By September 1, 2014, the calculations and

 

methodology used to determine the state and other nonfederal net

 

savings shall be submitted to the legislature.

 

     (2) As used in this act:

 

     (a) "Contracted health plan" means a managed care organization

 

with whom the state department or the department of community

 

health contracts to provide or arrange for the delivery of

 

comprehensive health care services as authorized under this act.

 

     (b) "Federal poverty guidelines" means the poverty guidelines

 

published annually in the federal register by the United States

 

department of health and human services under its authority to

 

revise the poverty line under section 673(2) of subtitle B of title

 

VI of the omnibus budget reconciliation act of 1981, 42 USC 9902.

 

     (b) (c) "Medical institution" means a state licensed or

 

approved hospital, nursing home, medical care facility, psychiatric

 


hospital, or other facility or identifiable unit of a listed

 

institution certified as meeting established standards for a

 

nursing home or hospital in accordance with the laws of this state.

 

     (d) "Title XVI" means title XVI of the social security act, 42

 

USC 1381 to 1383f.

 

     (3) An individual receiving medical assistance under this act

 

or his or her legal counsel shall notify the state department or

 

the department of community health when filing an action in which

 

the state department or the department of community health may have

 

a right to recover expenses paid under this act. If the individual

 

is enrolled in a contracted health plan, the individual or his or

 

her legal counsel shall provide notice to the contracted health

 

plan in addition to providing notice to the state department.

 

     (4) If a legal action in which the state department , the

 

department of community health, or a contracted health plan, or all

 

3 both, have a right to recover expenses paid under this act is

 

filed and settled after November 29, 2004 without notice to the

 

state department , the department of community health, or the

 

contracted health plan, the state department , the department of

 

community health, or the contracted health plan may file a legal

 

action against the individual or his or her legal counsel, or both,

 

to recover expenses paid under this act. The attorney general shall

 

recover any cost or attorney fees associated with a recovery under

 

this subsection.

 

     (5) The state department or the department of community health

 

has first priority against the proceeds of the net recovery from

 

the settlement or judgment in an action settled in which notice has

 


been provided under subsection (3). A contracted health plan has

 

priority immediately after the state department or the department

 

of community health in an action settled in which notice has been

 

provided under subsection (3). The state department , the

 

department of community health, and a contracted health plan shall

 

recover the full cost of expenses paid under this act unless the

 

state department , the department of community health, or the

 

contracted health plan agrees to accept an amount less than the

 

full amount. If the individual would recover less against the

 

proceeds of the net recovery than the expenses paid under this act,

 

the state department , the department of community health, or

 

contracted health plan , and the individual shall share equally in

 

the proceeds of the net recovery. As used in this subsection, "net

 

recovery" means the total settlement or judgment less the costs and

 

fees incurred by or on behalf of the individual who obtains the

 

settlement or judgment.

 

     Sec. 106a. (1) This section shall be known and may be cited as

 

the "Michigan freedom to work for individuals with disabilities

 

law".

 

     (2) The department of community health shall establish a

 

program to provide medical assistance to individuals who have

 

earned income and who meet all of the following initial eligibility

 

criteria:

 

     (a) The individual has been found to be disabled under the

 

federal supplemental security income program or the social security

 

disability income program, or would be found to be disabled except

 

for earnings in excess of the substantial gainful activity level as

 


established by the United States social security

 

administration.Social Security Administration.

 

     (b) The individual is at least 16 years of age and younger

 

than 65 years of age.

 

     (c) The individual has a countable income level of not more

 

than 250% of the current federal poverty guidelines for a family of

 

1.

 

     (d) The individual's assets meet the medicare Medicare part D

 

extra help low income subsidy (LIS) and medicare Medicare savings

 

program (MSP) asset limit, as adjusted annually.

 

     (e) The individual is employed on a regular and continuing

 

basis.

 

     (3) The program is limited to the medical assistance services

 

made available to recipients under the medical assistance program

 

administered under section 105.

 

     (4) Without losing eligibility for medical assistance, an

 

individual who qualifies for and is enrolled under this program is

 

permitted to do all of the following:

 

     (a) Accumulate personal savings and assets not to exceed

 

$75,000.00.

 

     (b) Accumulate unlimited retirement and individual retirement

 

accounts with income from employment while enrolled in the freedom

 

to work for individuals with disabilities program. Assets described

 

in this subdivision shall remain excluded from eligibility

 

consideration for other medicaid Medicaid programs for the

 

individual even if he or she loses eligibility under this section.

 

     (c) Have temporary breaks in employment that do not exceed 24

 


months if the temporary breaks are the result of an involuntary

 

layoff or are determined to be medically necessary or for

 

relocation necessary due to employment in this state.

 

     (d) Work and have income that exceeds the amount permitted

 

under section 106, but shall not have unearned income that exceeds

 

250% of the federal poverty guidelines.

 

     (5) The department of community health shall establish a

 

premium that is based on the enrolled individual's earned and

 

unearned income. An enrolled individual shall pay a sliding fee

 

scale monthly premium based on an annual review of total gross

 

income as follows:

 

     (a) No premium for individuals with gross income less than

 

138% of the federal poverty guidelines for a family of 1.

 

     (b) Beginning the effective date of the 2014 amendatory act

 

that amended this subdivision, January 14, 2015, a premium of up to

 

7.5% per month of gross income for individuals who have total gross

 

income between 138% of the federal poverty guidelines for a family

 

of 1 and $75,000.00 annual adjusted gross income.

 

     (c) A premium of 100% of the average freedom to work program

 

participant cost for an enrolled individual with adjusted gross

 

income over $75,000.00 annually.

 

     (d) The premium for an enrolled individual shall generally be

 

assessed on an annual basis based on the annual return required to

 

be filed under the internal revenue code of 1986 or other evidence

 

of earned income and shall be payable on a monthly basis. The

 

premium shall be adjusted during the year when a change in an

 

enrolled individual's rate of annual income changes.

 


     (6) Revenue received from premiums collected under this

 

section shall not exceed $3,000,000.00 per year.

 

     (7) If the terms of this section are inconsistent with federal

 

regulations governing federal financial participation in the

 

medical assistance program, the department of community health may,

 

to the extent necessary, waive any requirement set forth in

 

subsections (1) to (6).

 

     (8) As used in this section:

 

     (a) "Adjusted gross income" means that term as defined in

 

section 62 of the internal revenue code of 1986, 26 USC 62.

 

     (b) "Countable income", "earned income", and "unearned income"

 

mean those terms as used by the department in determining

 

eligibility for the medical assistance program administered under

 

this act.

 

     (c) "Federal poverty guidelines" means the poverty guidelines

 

published annually in the federal register by the United States

 

department of health and human services under its authority to

 

revise the poverty line under section 673(2) of subtitle B of title

 

VI of the omnibus budget reconciliation act of 1981, 42 USC 9902.

 

     Sec. 106b. (1) The state medicaid Medicaid plan shall require

 

the department of community health to suspend rather than terminate

 

an individual's medical assistance when either of the following

 

applies:

 

     (a) The individual becomes an inmate residing in a public

 

institution but otherwise remains eligible for medical assistance.

 

     (b) An inmate was not eligible for medical assistance when he

 

or she entered the public institution but is subsequently

 


determined to be eligible for medical assistance while in the

 

public institution.

 

     (2) The department of community health shall redetermine the

 

medical assistance eligibility of the individual.

 

     (3) Upon notification that an individual described in

 

subsection (1) is no longer an inmate residing in a public

 

institution, the department of community health shall reinstate the

 

individual's medical assistance if the individual is otherwise

 

eligible for medical assistance.

 

     (4) This section does not extend medical assistance

 

eligibility to an otherwise ineligible individual or extend medical

 

assistance to an individual if matching federal funds are not

 

available to pay for the medical assistance.

 

     (5) This section applies to the department, of community

 

health, a state agency to which the department of community health

 

has delegated these functions as provided under section 105c, or a

 

private or nonprofit entity with which the department of community

 

health has contracted to perform these functions as provided under

 

section 105c.

 

     (6) As used in this section:

 

     (a) "Public institution" means 1 of the following:

 

     (i) An inpatient program operated by the department of

 

community health for treatment of individuals with serious

 

emotional disturbance or serious mental illness.

 

     (ii) A local correctional facility as that term is defined in

 

section 2 of the local corrections officers training act, 2003 PA

 

125, MCL 791.532.

 


     (iii) A correctional facility as that term is defined in section

 

15 of the corrections code of 1953, 1953 PA 232, MCL 791.215.

 

     (iv) A youth correctional facility operated by the department

 

of corrections or a private vendor under section 20g of the

 

corrections code of 1953, 1953 PA 232, MCL 791.220g.

 

     (b) "Serious emotional disturbance" and "serious mental

 

illness" mean those terms as defined in section 100d of the mental

 

health code, 1974 PA 258, MCL 330.1100d.

 

     Sec. 107. (1) In establishing financial eligibility for the

 

medically indigent, income shall be disregarded in accordance with

 

standards established for the related categorical assistance

 

program. For medical assistance only, income shall include includes

 

the amount of contribution that an estranged spouse or parent for a

 

minor child is making to the applicant according to the standards

 

of the department, of community health, or according to a court

 

determination, if there is a court determination. Nothing in this

 

This section eliminates does not eliminate the responsibility of

 

support established in section 76 for cash assistance received

 

under this act.

 

     (2) The department of community health shall apply a modified

 

adjusted gross income methodology in determining if an individual's

 

annual income level is below 133% of the federal poverty

 

guidelines.

 

     Sec. 108. A medically indigent person as defined under section

 

106(1)(a) is entitled to all the services enumerated in section

 

109. A medically indigent person as defined under section 106(1)(b)

 

is entitled to medical services enumerated in section 109(1)(a),

 


(c), and (e). He or she is entitled to the services enumerated in

 

section 109(1)(b), (d), and (f) to the extent of appropriations

 

made available by the legislature for the fiscal year. Medical

 

services shall be rendered upon certification by the attending

 

licensed physician and dental services shall be rendered upon

 

certification of the attending licensed dentist that a service is

 

required for the treatment of an individual. The services of a

 

medical institution shall be rendered only after referral by a

 

licensed physician or dentist and certification by him or her that

 

the services of the medical institution are required for the

 

medical or dental treatment of the individual, except that referral

 

is not necessary in case of an emergency. Periodic recertification

 

that medical treatment that extends over a period of time is

 

required in accordance with regulations of the department of

 

community health is a condition of continuing eligibility to

 

receive medical assistance. To comply with federal statutes

 

governing medicaid, Medicaid, the department of community health

 

shall provide early and periodic screening, diagnostic, and

 

treatment services to eligible children as it considers necessary.

 

     Sec. 109. (1) The following medical services may be provided

 

under this act:

 

     (a) Hospital services that an eligible individual may receive

 

consist of medical, surgical, or obstetrical care, together with

 

necessary drugs, X-rays, physical therapy, prosthesis,

 

transportation, and nursing care incident to the medical, surgical,

 

or obstetrical care. The period of inpatient hospital service shall

 

be the minimum period necessary in this type of facility for the

 


proper care and treatment of the individual. Necessary

 

hospitalization to provide dental care shall be provided if

 

certified by the attending dentist with the approval of the

 

department. of community health. An individual who is receiving

 

medical treatment as an inpatient because of a diagnosis of

 

tuberculosis or mental disease may receive service under this

 

section, notwithstanding the mental health code, 1974 PA 258, MCL

 

330.1001 to 330.2106, and 1925 PA 177, MCL 332.151 to 332.164. The

 

department of community health shall pay for hospital services

 

according to the state plan for medical assistance adopted under

 

section 10 and approved by the United States department Department

 

of health Health and human services.Human Services.

 

     (b) An eligible individual may receive physician services

 

authorized by the department. of community health. The service may

 

be furnished in the physician's office, the eligible individual's

 

home, a medical institution, or elsewhere in case of emergency. A

 

physician shall be paid a reasonable charge for the service

 

rendered. Reasonable charges shall be determined by the department

 

of community health and shall not be more than those paid in this

 

state for services rendered under title XVIII.

 

     (c) An eligible individual may receive nursing home services

 

in a state licensed nursing home, a medical care facility, or other

 

facility or identifiable unit of that facility, certified by the

 

appropriate authority as meeting established standards for a

 

nursing home under the laws and rules of this state and the United

 

States department Department of health Health and human services,

 

Human Services, to the extent found necessary by the attending

 


physician, dentist, or certified Christian Science practitioner. An

 

eligible individual may receive nursing services in an extended

 

care services program established under section 22210 of the public

 

health code, 1978 PA 368, MCL 333.22210, to the extent found

 

necessary by the attending physician when the combined length of

 

stay in the acute care bed and short-term nursing care bed exceeds

 

the average length of stay for medicaid Medicaid hospital

 

diagnostic related group reimbursement. The department of community

 

health shall not make a final payment under title XIX for benefits

 

available under title XVIII without documentation that title XVIII

 

claims have been filed and denied. The department of community

 

health shall pay for nursing home services according to the state

 

plan for medical assistance adopted according to section 10 and

 

approved by the United States department Department of health

 

Health and human services. Human Services. A county shall reimburse

 

a county maintenance of effort rate determined on an annual basis

 

for each patient day of medicaid Medicaid nursing home services

 

provided to eligible individuals in long-term care facilities owned

 

by the county and licensed to provide nursing home services. For

 

purposes of determining rates and costs described in this

 

subdivision, all of the following apply:

 

     (i) For county owned facilities with per patient day updated

 

variable costs exceeding the variable cost limit for the county

 

facility, county maintenance of effort rate means 45% of the

 

difference between per patient day updated variable cost and the

 

concomitant nursing home-class variable cost limit, the quantity

 

offset by the difference between per patient day updated variable

 


cost and the concomitant variable cost limit for the county

 

facility. The county rate shall not be less than zero.

 

     (ii) For county owned facilities with per patient day updated

 

variable costs not exceeding the variable cost limit for the county

 

facility, county maintenance of effort rate means 45% of the

 

difference between per patient day updated variable cost and the

 

concomitant nursing home class variable cost limit.

 

     (iii) For county owned facilities with per patient day updated

 

variable costs not exceeding the concomitant nursing home class

 

variable cost limit, the county maintenance of effort rate shall

 

equal zero.

 

     (iv) For the purposes of this section: "per patient day updated

 

variable costs and the variable cost limit for the county facility"

 

shall be determined according to the state plan for medical

 

assistance; for freestanding county facilities the "nursing home

 

class variable cost limit" shall be determined according to the

 

state plan for medical assistance and for hospital attached county

 

facilities the "nursing class variable cost limit" shall be

 

determined pursuant to under the state plan for medical assistance

 

plus $5.00 per patient day; and "freestanding" and "hospital

 

attached" shall be determined according to the federal regulations.

 

     (v) If the county maintenance of effort rate computed under

 

this section exceeds the county maintenance of effort rate in

 

effect as of September 30, 1984, the rate in effect as of September

 

30, 1984 shall remain in effect until a time that the rate computed

 

under this section is less than the September 30, 1984 rate. This

 

limitation remains in effect until December 31, 2017. For each

 


subsequent county fiscal year the maintenance of effort may not

 

increase by more than $1.00 per patient day each year.

 

     (vi) For county owned facilities, reimbursement for plant costs

 

will continue to be based on interest expense and depreciation

 

allowance unless otherwise provided by law.

 

     (d) An eligible individual may receive pharmaceutical services

 

from a licensed pharmacist of the person's choice as prescribed by

 

a licensed physician or dentist and approved by the department. of

 

community health. In an emergency, but not routinely, the

 

individual may receive pharmaceutical services rendered personally

 

by a licensed physician or dentist on the same basis as approved

 

for pharmacists.

 

     (e) An eligible individual may receive other medical and

 

health services as authorized by the department. of community

 

health.

 

     (f) Psychiatric care may also be provided according to the

 

guidelines established by the department of community health to the

 

extent of appropriations made available by the legislature for the

 

fiscal year.

 

     (g) An eligible individual may receive screening, laboratory

 

services, diagnostic services, early intervention services, and

 

treatment for chronic kidney disease under guidelines established

 

by the department. of community health. A clinical laboratory

 

performing a creatinine test on an eligible individual under this

 

subdivision shall include in the lab report the glomerular

 

filtration rate (eGFR) of the individual and shall report it as a

 

percent of kidney function remaining.

 


     (2) The director shall provide notice to the public, according

 

to applicable federal regulations, and shall obtain the approval of

 

the committees on appropriations of the house of representatives

 

and senate of the legislature of this state, of a proposed change

 

in the statewide method or level of reimbursement for a service, if

 

the proposed change is expected to increase or decrease payments

 

for that service by 1% or more during the 12 months after the

 

effective date of the change.

 

     (3) As used in this act:

 

     (a) "Title XVIII" means title XVIII of the social security

 

act, 42 USC 1395 to 1395kkk-1.

 

     (b) "Title XIX" means title XIX of the social security act, 42

 

USC 1396 to 1396w-5.

 

     (c) "Title XX" means title XX of the social security act, 42

 

USC 1397 to 1397m-5.

 

     Sec. 109c. (1) The department of community health shall

 

include, as part of its program of medical services under this act,

 

home- or community-based services to eligible persons individuals

 

whom the department of community health determines would otherwise

 

require nursing home services or similar institutional care

 

services under section 109. The home- or community-based services

 

shall be offered to qualified eligible persons individuals who are

 

receiving inpatient hospital or nursing home services as an

 

alternative to those forms of care.

 

     (2) The home- or community-based services shall include

 

safeguards adequate to protect the health and welfare of

 

participating eligible persons, individuals, and shall be provided

 


according to a written plan of care for each person. individual.

 

The services available under the home- or community-based services

 

program shall include, at a minimum, all of the following:

 

     (a) Home delivered Home-delivered meals.

 

     (b) Chore services.

 

     (c) Homemaker services.

 

     (d) Respite care.

 

     (e) Personal care.

 

     (f) Adult day care.

 

     (g) Private duty nursing.

 

     (h) Mental health counseling.

 

     (i) Caregiver training.

 

     (j) Emergency response systems.

 

     (k) Home modification.

 

     (l) Transportation.

 

     (m) Medical equipment and supply services.

 

     (3) This section shall be implemented so that the average per

 

capita expenditure for home- or community-based services for

 

eligible persons individuals receiving those services does not

 

exceed the estimated average per capita expenditure that would have

 

been made for those persons individuals had they been receiving

 

nursing home services, inpatient hospital, or similar institutional

 

care services instead.

 

     (4) The department of community health shall seek a waiver

 

necessary to implement this program from the federal department

 

United States Department of health Health and human services, Human

 

Services, as provided in section 1915 of title XIX, 42 USC 1396n.

 


The department of community health shall request any modifications

 

of the waiver that are necessary in order to expand the program in

 

accordance with subsection (9).

 

     (5) The department of community health shall establish policy

 

for identifying the rules for persons individuals receiving

 

inpatient hospital or nursing home services who may qualify for

 

home- or community-based services. The rules shall contain, at a

 

minimum, a listing of diagnoses and patient conditions to which the

 

option of home- or community-based services may apply, and a

 

procedure to determine if the person individual qualifies for home-

 

or community-based services.

 

     (6) The department of community health shall provide to the

 

legislature and the governor an annual report showing the detail of

 

its home- and community-based case finding and placement

 

activities. At a minimum, the report shall contain each of the

 

following:

 

     (a) The number of persons individuals provided home- or

 

community-based services who would otherwise require inpatient

 

hospital services. This shall include a description of medical

 

conditions, services provided, and projected cost savings for these

 

persons.

 

     (b) The number of persons provided home- or community-based

 

services who would otherwise require nursing home services. This

 

shall include a description of medical conditions, services

 

provided, and projected cost savings for these persons.

 

     (c) The number of persons and the annual expenditure for

 

personal care services.

 


     (d) The number of hearings requested concerning home- or

 

community-based services and the outcome of each hearing which that

 

has been adjudicated during the year.

 

     (7) The written plan of care required under subsection (2) for

 

an eligible person individual shall not be changed unless the

 

change is prospective only, and the department of community health

 

does both of the following:

 

     (a) Not later than 30 days before making the change, except in

 

the case of emergency, consults with the eligible person individual

 

or, in the case of a child, with the child's parent or guardian.

 

     (b) Consults with each medical service provider involved in

 

the change. This consultation shall be documented in writing.

 

     (8) An eligible person individual who is receiving home- or

 

community-based services under this section, and who is

 

dissatisfied with a change in his or her plan of care or a denial

 

of any home- or community-based service, may demand a hearing as

 

provided in section 9, and subsequently may appeal the hearing

 

decision to circuit court as provided in section 37.

 

     (9) The department of community health shall expand the home-

 

and community-based services program by increasing the number of

 

counties in which it is available, in conformance with this

 

subsection. The program may be limited in total cost and in the

 

number of recipients per county who may receive services at 1 time.

 

Subject to obtaining the waiver and any modifications of the waiver

 

sought under subsection (4), the program shall be expanded as

 

follows:

 

     (a) Not later than July 14, 1995, home- and community-based

 


services shall be available to eligible applicants in those

 

counties that, when combined, contain at least 1/4 of the

 

population of this state.

 

     (b) Not later than July 14, 1996, home- and community-based

 

services shall be available to eligible applicants in those

 

counties that, when combined, contain at least 1/2 of the

 

population of this state.

 

     (c) Not later than July 14, 1997, home- and community-based

 

services shall be available to eligible applicants in those

 

counties that, when combined, contain at least 3/4 of the

 

population of this state.

 

     (d) Not later than July 14, 1998, home- and community-based

 

services shall be available to eligible applicants on a statewide

 

basis.

 

     (10) The department of community health shall work with the

 

office of services to the aging in implementing the home- and

 

community-based services program, including the provision of

 

preadmission screening, case management, and recipient access to

 

services.

 

     Sec. 109e. (1) As used in this section:

 

     (a) "Abortion" means the intentional use of an instrument,

 

drug, or other substance or device to terminate a woman's pregnancy

 

for a purpose other than to increase the probability of a live

 

birth, to preserve the life or health of the child after live

 

birth, or to remove a dead fetus. Abortion does not include the use

 

or prescription of a drug or device intended as a contraceptive.

 

     (b) "Health care professional" means an individual licensed or

 


registered under article 15 of the public health code, Act No. 368

 

of the Public Acts of 1978, being sections 333.16101 to 333.18838

 

of the Michigan Compiled Laws.MCL 333.16101 to 333.18838.

 

     (c) "Health facility or agency" means a health facility or

 

agency licensed under article 17 of Act No. 368 of the Public Acts

 

of 1978, being sections 333.20101 to 333.22260 of the Michigan

 

Compiled Laws.the public health code, MCL 333.20101 to 333.22260.

 

     (2) A health care professional or a health facility or agency

 

shall not seek or accept reimbursement for the performance of an

 

abortion knowing that public funds will be or have been used in

 

whole or in part for the reimbursement in violation of section

 

109a. of Act No. 280 of the Public Acts of 1939, being section

 

400.109a of the Michigan Compiled Laws, as added by Act No. 59 of

 

the Public Acts of 1987.

 

     (3) A person who violates this section is liable for a civil

 

fine of up to $10,000.00 per violation. The department of community

 

health shall investigate an alleged violation of this section and

 

the attorney general, in cooperation with the department, of

 

community health, may bring an action to enforce this section.

 

     (4) Nothing in this This section restricts does not restrict

 

the right of a health care professional to discuss abortion or

 

abortion services with a patient who is pregnant.

 

     (5) This section does not create a right to an abortion.

 

     (6) Notwithstanding any other provision of this section, a

 

person shall not perform an abortion that is prohibited by law.

 

     Sec. 109f. (1) The department of community health shall

 

support the use of medicaid Medicaid funds for specialty services

 


and supports for eligible medicaid Medicaid beneficiaries with a

 

serious mental illness, developmental disability, serious emotional

 

disturbance, or substance abuse use disorder. Medicaid-covered

 

specialty services and supports shall be managed and delivered by

 

specialty prepaid health plans chosen by the department of

 

community health with advice and recommendations from the specialty

 

services panel created in section 109g. The specialty services and

 

supports shall be carved out from the basic medicaid Medicaid

 

health care benefits package.

 

     (2) Specialty prepaid health plans shall be considered

 

medicaid Medicaid managed care organizations as described in

 

section 1903(m)(1)(A) of title XIX of the social security act, 42

 

USC 1396b, and shall be are responsible for providing defined

 

inpatient services, outpatient hospital services, physician

 

services, other specified medicaid Medicaid state plan services,

 

and additional services approved by the centers Centers for

 

medicare Medicare and medicaid services Medicaid Services under

 

section 1915(b)(3) of title XIX of the social security act, 42 USC

 

1396n. As medicaid Medicaid managed care organizations, specialty

 

prepaid health plans are subject to the quality assurance

 

assessment fee described in section 224b of the insurance code of

 

1956, 1956 PA 218, MCL 500.224b.section 3f of the use tax act, 1937

 

PA 94, MCL 205.93f.

 

     Sec. 109g. (1) The governor shall create a specialty services

 

panel within the department of community health to review and make

 

determinations regarding applications for participation submitted

 

by community mental health services programs or other managing

 


entities.

 

     (2) The specialty services panel shall consist of the

 

following members, appointed by the governor:

 

     (a) The director of the department of community health or his

 

or her representative.

 

     (b) Two members who represent the department, of community

 

health, excluding an individual appointed under subdivision (a).

 

     (c) The director of the department of technology, management,

 

and budget or his or her representative.

 

     (d) Four members who represent primary consumers or family

 

members.

 

     (e) Five members who represent other stakeholders, including,

 

but not limited to, 1 representative each from the statewide

 

advocacy organizations representing adults with serious mental

 

illness, children with serious emotional disturbance, individuals

 

with substance abuse use disorders, and individuals with

 

developmental disabilities. At least 1 member appointed under this

 

subdivision shall be a county commissioner.

 

     (3) No member appointed under subsection (2)(d) or (e) shall

 

provide direct services or represent providers who provide services

 

for reimbursement under this act to an individual who qualifies for

 

specialty services.

 

     (4) Members of the specialty services panel shall serve for

 

terms of 4 years or until a successor is appointed, whichever is

 

later, except that, of the members first appointed, 4 shall serve

 

for 1 year, 5 shall serve for 2 years, and 4 shall serve for 3

 

years.

 


     (5) If a vacancy occurs on the specialty services panel, the

 

governor shall make an appointment for the unexpired term in the

 

same manner as the original appointment.

 

     (6) A member of the specialty services panel shall make known

 

any matter in which that member has a potential conflict of

 

interest.

 

     (7) The specialty services panel shall remain in existence to

 

serve in an advisory capacity to the director of the department of

 

community health regarding performance and quality relating to

 

medicaid Medicaid specialty services and supports. The panel shall

 

meet no less than 2 times a year. The panel shall have access to

 

all aggregate quality management information gathered by the

 

department of community health relating to the managing entities.

 

     Sec. 109h. (1) If the department of community health develops

 

a prior authorization process for prescription drugs as part of the

 

pharmaceutical services offered under the medical assistance

 

program administered under this act, it shall not require prior

 

authorization for the following single source brand name, generic

 

equivalent of a multiple source brand name, or other prescription

 

drugs:

 

     (a) A central nervous system prescription drug that is

 

classified as an anticonvulsant, antidepressant, antipsychotic, or

 

a noncontrolled substance antianxiety drug in a generally accepted

 

standard medical reference.

 

     (b) A prescription drug that is cross-indicated for a central

 

nervous system drug exempted under subdivision (a) as documented in

 

a generally accepted standard medical reference.

 


     (c) Unless the prescription drug is a controlled substance or

 

the prescription drug is being prescribed to treat a condition that

 

is excluded from coverage under this act, a prescription drug that

 

is recognized in a generally accepted standard medical reference as

 

effective in the treatment of conditions specified in the most

 

recent diagnostic Diagnostic and statistical manual Statistical

 

Manual of mental disorders Mental Disorders published by the

 

American psychiatric association. Psychiatric Association. The

 

department or the department's agent shall not deny a request for

 

prior authorization of a controlled substance under this

 

subdivision unless the department or the department's agent

 

determines that the controlled substance or the dosage of the

 

controlled substance being prescribed is not consistent with its

 

licensed indications or with generally accepted medical practice as

 

documented in a standard medical reference.

 

     (d) A prescription drug that is recognized in a generally

 

accepted standard medical reference for the treatment of and is

 

being prescribed to a patient for the treatment of any of the

 

following:

 

     (i) Human immunodeficiency virus infections or the

 

complications of the human immunodeficiency virus or acquired

 

immunodeficiency syndrome.

 

     (ii) Cancer.

 

     (iii) Organ replacement therapy.

 

     (iv) Epilepsy or seizure disorder.

 

     (2) This section does not apply to drugs being provided under

 

a contract between the department and a health maintenance

 


organization.

 

     (3) As used in this section:

 

     (a) "Controlled substance" means that term as defined in

 

section 7104 of the public health code, 1978 PA 368, MCL 333.7104.

 

     (b) "Cross-indicated" means a drug which that is used for a

 

purpose generally held to be reasonable, appropriate, and within

 

community standards of practice even though the use is not included

 

in the federal food Food and drug administration's Drug

 

Administration's approved labeled indications for that drug.

 

     (c) "Department" means the department of community health.

 

     (c) (d) "Prescriber" means that term as defined in section

 

17708 of the public health code, 1978 PA 368, MCL 333.17708.

 

     (d) (e) "Prescription" or "prescription drug" means that term

 

as defined in section 17708 of the public health code, 1978 PA 368,

 

MCL 333.17708.

 

     (e) (f) "Prior authorization" means a process implemented by

 

the department of community health that conditions, delays, or

 

denies the delivery of particular pharmaceutical services to

 

medicaid Medicaid beneficiaries upon application of predetermined

 

criteria by the department or the department's agent for those

 

pharmaceutical services covered by the department on a fee-for-

 

service basis or pursuant according to a contract for those

 

services. The process may require a prescriber to verify with the

 

department or the department's agent that the proposed medical use

 

of a prescription drug being prescribed for a patient meets the

 

predetermined criteria for a prescription drug that is otherwise

 

covered under this act or require a prescriber to obtain

 


authorization from the department or the department's agent before

 

prescribing or dispensing a prescription drug that is not included

 

on a preferred drug list or that is subject to special access or

 

reimbursement restrictions.

 

     Sec. 109k. Effective October 1, 2013, a A community mental

 

health services program established by a single charter county that

 

has situated totally within that county a city having a population

 

of at least 500,000 shall comply with sections 204(4) and 205 of

 

the mental health code, 1974 PA 258, MCL 330.1204 and 330.1205,

 

before contracting with the department of community health as a

 

specialty prepaid health plan to provide specialty services and

 

supports.

 

     Sec. 109l. The department of community health and contracted

 

health plans shall utilize a process for maximum allowable cost

 

pricing reconsiderations that must be available and provided to

 

providers and pharmacists. This process must include identification

 

of 3 national drug codes, if there are 3 or more available, and or

 

all available national drug codes, if there are fewer than 3, for

 

the drug in question that are actually available and deliverable by

 

a Michigan licensed wholesaler or a Michigan licensed manufacturer

 

and would fall into the department of community health's

 

department's or contracted health plans' maximum allowable cost

 

pricing. The process must be completed in 10 business days, with

 

all notification to the pharmacy in either written or electronic

 

form. The department of community health and contracted health

 

plans cannot be held accountable for failing to provide information

 

for to which they do not have access.

 


     Sec. 111a. (1) The director, of the department of community

 

health, after appropriate consultation with affected providers and

 

the medical care advisory council established according to federal

 

regulations, may establish policies and procedures that he or she

 

considers appropriate, relating to the conditions of participation

 

and requirements for providers established by section 111b and to

 

applicable federal law and regulations, to assure ensure that the

 

implementation and enforcement of state and federal laws are all of

 

the following:

 

     (a) Reasonable, fair, effective, and efficient.

 

     (b) In conformance with law.

 

     (c) In conformance with the state plan for medical assistance

 

adopted under section 10 and approved by the United States

 

department Department of health Health and human services.Human

 

Services.

 

     (2) The consultation required by this section shall be

 

conducted in accordance with guidelines adopted by the state

 

department of community health according to section 24 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.224.

 

     (3) Except as otherwise provided in section 111i, the director

 

of the department of community health shall develop, after

 

appropriate consultation with affected providers in accordance with

 

guidelines, forms and instructions to be used in administering the

 

program. Forms developed by the director of the department of

 

community health shall be, to the extent administratively feasible,

 

compatible with forms providers are required to file with 1 or more

 

other third party payers or with 1 or more regulatory agencies and,

 


to the extent administratively feasible, shall be designed to

 

facilitate use of a single form to satisfy requirements imposed on

 

providers by more than 1 payer, agency, or other entity. The forms

 

and instructions shall relate, at a minimum, to standards of

 

performance by providers, conditions of participation, methods of

 

review of claims, and administrative requirements and procedures

 

that the director of the department of community health considers

 

reasonable and proper to assure ensure all of the following:

 

     (a) That claims against the program are timely, substantiated,

 

and not false, misleading, or deceptive.

 

     (b) That reimbursement is made for only medically appropriate

 

services.

 

     (c) That reimbursement is made for only covered services.

 

     (d) That reimbursement is not made to those providers whose

 

services, supplies, or equipment cost the program in excess of the

 

reasonable value received.

 

     (e) That the state is a prudent buyer.

 

     (f) That access and availability of services to the medically

 

indigent are reasonable.

 

     (4) As used in subsection (3), "prudent buyer" means a

 

purchaser who does 1 or more of the following:

 

     (a) Buys from only those providers of services, supplies, or

 

equipment to medically indigent individuals whose performance, in

 

terms of quality, quantity, cost, setting, and location is

 

appropriate to the specific needs of those individuals, and who, in

 

the case of providers who receive payment on the basis of costs,

 

comply with the prudent buyer concept of titles XVIII and XIX.

 


     (b) Pays for only those services, supplies, or equipment that

 

are needed or appropriate.

 

     (c) Seeks to economize by minimizing cost.

 

     (5) The director of the department of community health shall

 

select providers to participate in arrangements such as case

 

management, in supervision of services for recipients who

 

misutilize or abuse the medical services program, and in special

 

projects for the delivery of medical services to eligible

 

recipients. Providers shall be selected based upon criteria that

 

may include a comparison of services and related costs with those

 

of the provider's peers and a review of previous participation

 

warnings or sanctions undertaken against the provider or the

 

provider's employer, employees, related business entities, or

 

others who have a relationship to the provider, by the medicaid,

 

medicare, Medicaid, Medicare, or other health-related programs. The

 

director of the department of community health may consult with the

 

appropriate peer review advisory committees as appointed by the

 

department. of community health.

 

     (6) The director of the department of community health shall

 

give notice to each provider of a change in a policy, procedure,

 

form, or instruction established or developed under this section

 

that affects the provider. For a change that affects 1 or more

 

types of providers, a departmental bulletin or updating insert to a

 

departmental manual mailed 30 days before the effective date of the

 

change shall constitute constitutes sufficient notice. The

 

department of community health may provide notice required under

 

this subsection via United States mail or electronic mail.

 


     (7) The director of the department of community health may do

 

all of the following:

 

     (a) Enroll in the program for medical assistance only a

 

provider who has entered into an agreement of enrollment required

 

by section 111b(4), and enter into an agreement only with a

 

provider who satisfies the conditions of participation and

 

requirements for a provider established by sections 111b and 111i

 

and the administrative requirements established or developed under

 

subsections (1), (2), and (3) with the appropriate consultation

 

required by this section.

 

     (b) Enforce the requirements established under this act by

 

applying the procedures of sections 111c to 111f. If in these

 

procedures the director of the department of community health is

 

required to consult with professionals or experts before first

 

utilizing these individuals in the program, the director of the

 

department of community health shall have given the opportunity to

 

review their professional credentials to the appropriate medicaid

 

Medicaid peer review advisory committee.

 

     (c) Except as otherwise provided in section 111i, develop with

 

the appropriate consultation required by this section and require

 

the form or format for claims, applications, certifications, or

 

certifications and recertifications of medical necessity required

 

by section 108, and develop specifications for and require

 

supporting documentation that is compatible with the approved state

 

medical assistance plan under title XIX.

 

     (d) Recover payments to a provider in excess of the

 

reimbursement to which the provider is entitled. The department of

 


community health shall have a priority lien on any assets of a

 

provider for any overpayment, as a consequence of fraud or abuse,

 

that is not reimbursed to the department. of community health.

 

     (e) Notwithstanding any other provisions of this act, before

 

payment of claims, identify for examination for compliance with the

 

program of medical assistance, including but not limited to medical

 

necessity, the claims submitted by a particular provider based upon

 

a determination that the provider's claims for disputed services

 

exceed the average program dollar amount or volume of the same type

 

of services, submitted by the same type of provider, performed in

 

the same setting, and submitted during the same period. In order to

 

carry out the authority conferred by this subdivision, the director

 

of the department of community health shall notify the provider in

 

the form of registered mail, receipted by the addressee, or by

 

proof of service to the provider, or representative of the

 

provider, of the state department of community health's

 

department's intent to impose specific conditions and controls

 

before authorizing payment for specific claims for services. The

 

notice shall contain all of the following:

 

     (i) A list of the particular practice or practices disputed by

 

the state department of community health and a factual description

 

of the nature of the dispute.

 

     (ii) A request for specific medical records and any other

 

relevant supporting information that fully discloses the basis and

 

extent to which the disputed practice or practices were rendered.

 

     (iii) A date certain for an informal conference between the

 

provider or representative of the provider and the state department

 


of community health to resolve the differences surrounding the

 

disputed practice or practices.

 

     (iv) A statement that unless the provider or representative of

 

the provider demonstrates at the informal conference that the

 

disputed practice or practices are medically necessary, or are in

 

compliance with other program coverages, specific conditions and

 

controls may be imposed on future payments for the disputed

 

practice or practices, and claims may be rejected, beginning on the

 

sixteenth day after delivery of this notice.

 

     (8) For any provider who is subject to a notice of intent to

 

impose specific conditions and controls before authorizing payment

 

for specific claims for services, as specified in subsection

 

(7)(e), the state department of community health shall afford that

 

provider an opportunity for an informal conference before the

 

sixteenth day after delivery of the notice under subsection (7)(e).

 

If the provider fails to appear at the conference, or fails to

 

demonstrate that the disputed practice or practices are medically

 

necessary or are in compliance with program coverages, the state

 

department, of community health beginning on the sixteenth day

 

following receipt of notice by the provider, is authorized to

 

impose specific conditions and controls before payment for the

 

disputed practice or practices and may reject claims for payments

 

for the practice or practices. The state department, of community

 

health, within 5 days following the informal conference, shall

 

notify the provider of its decision regarding the imposition of

 

special conditions and controls before payment for the disputed

 

practice or practices. Upon the imposition of specific conditions

 


and controls before payment, the provider upon request shall be

 

entitled to an immediate hearing held in conformity with chapter 4

 

and chapter 6 of the administrative procedures act of 1969, 1969 PA

 

306, MCL 24.271 to 24.287 and 24.301 to 24.306, if any of the

 

following occurs:

 

     (a) The claim for services rendered is not paid within 30 days

 

of the provider's compliance with the conditions imposed.

 

     (b) The claim is rejected.

 

     (c) The provider notifies the state department of community

 

health by registered mail that the provider does not intend to

 

comply with the specific conditions and controls imposed, and the

 

claim for services rendered is not paid within 30 days after

 

delivery of this notice.

 

     (9) The hearing provided for under subsection (8) shall be

 

conducted in a prompt and expeditious manner. At the hearing, the

 

provider may contest the state department of community health's

 

department's decision to impose specific conditions and controls

 

before payment. Subsequent hearings may be conducted at the

 

provider's request only if the claims have not been considered at a

 

prior hearing and reflect issues that also have not been considered

 

at a prior hearing, or if a claim for services rendered is not paid

 

within 60 days after the provider's compliance with the conditions

 

imposed.

 

     (10) The authority conferred in subsection (8) with respect to

 

the claims submitted by a particular provider does not prohibit the

 

state department of community health from examining claims or

 

portions of claims before payment of the claims to determine their

 


compliance with the program of medical assistance program, in

 

compliance with law. The director of the department of community

 

health may take additional action under subsection (8) during the

 

pendency of an appeal taken under subsection (8).

 

     (11) If in the department of community health's department's

 

opinion, the provider shifts his or her claims from the disputed

 

services addressed under subsection (7)(e) to other claims that

 

fall under the purview of subsection (7)(e), the director of the

 

department of community health may impose the claims review process

 

of this section immediately upon delivery of the notice of that

 

imposition to the provider as provided in subsection (7)(e).

 

     (12) If in the department of community health's department's

 

opinion, claims similar to the disputed services addressed under

 

subsection (7)(e) are shifted to another provider in the same

 

corporation, partnership, clinic, provider group, or to another

 

provider in the employ of the same employer or contractor, the

 

director of the department of community health may impose the

 

claims review process of this section immediately upon delivery of

 

notice of that imposition to the new provider as provided in

 

subsection (7)(e). The department of community health shall afford

 

the new provider an opportunity for an immediate informal

 

conference within 7 days under subsection (8) after the initiation

 

of the claims process.

 

     (13) The director of the department of community health may

 

request a provider to open books and records in accordance with

 

section 111b(7) and may photocopy, at the state department of

 

community health's department's expense, the records of a medically

 


indigent individual. The records shall be confidential, and the

 

state department shall use the records only for purposes directly

 

and specifically related to the administration of the program. The

 

immunity from liability of a provider subject to the director of

 

the department of community health's director's authority under

 

this subsection is governed by section 111b(7).

 

     (14) The director of the department of community health shall

 

not pay for services, supplies, or equipment furnished by a

 

provider, or shall recover for payment made, during a period in

 

which the provider does not have on file with the state department

 

of community health disclosure forms as required by section

 

111b(19).

 

     (15) The director of the department of community health shall

 

make payments to, and collect overpayments from, the provider,

 

unless the provider and the provider's employer satisfy the

 

conditions prescribed in section 111b(25), (26), and (27), in which

 

case the director of the department of community health may make

 

payments directly to, and collect overpayments from, the provider's

 

employer.

 

     (16) The director, of the department of community health, with

 

the appropriate consultation required by this section, may develop

 

specifications for and require estimated cost and charge

 

information to be submitted by a provider under section 111b(13)

 

and the form or format for submission of the information.

 

     (17) If the director of the department of community health

 

decides that a payment under the program has been made to which a

 

provider is not or may not be entitled, or that the amount of a

 


payment is or may be greater or less than the amount to which the

 

provider is entitled, the director, of the department of community

 

health, except as otherwise provided in this subsection or under

 

other applicable law or regulation, shall promptly notify the

 

provider of this decision. The director of the department of

 

community health shall withhold notification to the provider of the

 

decision upon advice from the department of the attorney general or

 

other state or federal enforcement agency in a case where action by

 

the department of the attorney general or other state or federal

 

enforcement agency may be compromised by the notification. If the

 

director of the department of community health notifies a provider

 

of a decision that the provider has received an underpayment, the

 

state department of community health shall reimburse the provider,

 

either directly or through an adjustment of payments, in the amount

 

found to be due.

 

     Sec. 111i. (1) The commissioner of office of financial and

 

director of the department of insurance and financial services

 

shall establish a timely claims processing and payment procedure to

 

be used by health professionals and facilities in billing for, and

 

qualified health plans in processing and paying claims for,

 

medicaid Medicaid services rendered. The commissioner director of

 

the department of insurance and financial services shall consult

 

with the department, of community health, health professionals and

 

facilities, and qualified health plans in establishing this timely

 

payment procedure.

 

     (2) The timely claims processing and payment procedure

 

established by the commissioner director of the department of

 


insurance and financial services under subsection (1) shall provide

 

for all of the following:

 

     (a) That a "clean claim", for the purposes of this section,

 

means a claim that does at a minimum all of the following:

 

     (i) Identifies the health professional or health facility that

 

provided treatment or service, including a matching identifying

 

number.

 

     (ii) Identifies the patient and plan.

 

     (iii) Lists the date and place of service.

 

     (iv) Is for covered services.

 

     (v) Is certified pursuant according to section 111b(17) and

 

has the identifying information required under section 111b(21).

 

     (vi) If necessary, substantiates the medical necessity and

 

appropriateness of the care or service provided.

 

     (vii) If prior authorization is required for certain patient

 

care or services, includes any applicable authorization number, as

 

appropriate.

 

     (viii) Includes additional documentation based upon services

 

rendered as reasonably required by the payer.

 

     (b) A universal system of coding to be used on all medicaid

 

Medicaid claims submitted to qualified health plans.

 

     (c) That a claim must be transmitted electronically or as

 

otherwise specified by the commissioner director of the department

 

of insurance and financial services and a qualified health plan

 

must be able to receive a claim transmitted electronically.

 

     (d) That a health professional and facility must bill a

 

qualified health plan within 1 year after the date of service or

 


date of discharge from the health facility.

 

     (e) That after a health professional or facility has submitted

 

a claim to a qualified health plan, the health professional or

 

facility shall not resubmit the same claim to the qualified health

 

plan unless the time frame in subdivision (f) has passed or as

 

provided in subdivision (h).

 

     (f) Except as otherwise provided in this subdivision, that a

 

clean claim must be paid within 45 days after receipt of the claim

 

by the qualified health plan. For a pharmaceutical clean claim, the

 

clean claim must be paid within the industry standard time frame

 

for paying the claim as of the effective date of this subdivision

 

June 20, 2000, or within 45 days after receipt of the claim by the

 

qualified health plan, whichever is sooner. A clean claim that is

 

not paid within this time frame shall bear simple interest at a

 

rate of 12% per annum.

 

     (g) That a qualified health plan must state in writing to the

 

health professional or facility any defect in the claim within 30

 

days after receipt of the claim.

 

     (h) That a health professional and a health facility have 30

 

days after receipt of a notice that a claim or a portion of a claim

 

is defective within which to correct the defect. The qualified

 

health plan shall pay the claim within 30 days after the defect is

 

corrected.

 

     (i) That a qualified health plan must notify the health

 

professional or facility and the commissioner director of the

 

department of insurance and financial services of the defect if a

 

claim or a portion of a claim is returned from a health

 


professional or facility under subdivision (h) and remains

 

defective for the original reason or a new reason.

 

     (j) An external review procedure for adverse determinations of

 

payment as provided in subsections (4) and (5). The costs for the

 

external review procedure shall be assessed as determined by the

 

commissioner.director of the department of insurance and financial

 

services.

 

     (k) Penalties to be applied to health professionals, health

 

facilities, and qualified health plans for failing to adhere to the

 

timely claims processing and payment procedure established under

 

this section.

 

     (l) A system for notifying the licensing entity for health

 

maintenance organizations, qualified health plans, and other health

 

care insurers if a penalty is incurred under subdivision (k).

 

     (3) If a qualified health plan determines that 1 or more

 

covered services listed on a claim are payable, the qualified

 

health plan shall pay for those services and shall not deny the

 

entire claim because 1 or more other covered services listed on the

 

claim are defective or because 1 or more other services listed on

 

the claim are not covered services.

 

     (4) The commissioner director of the department of insurance

 

and financial services shall establish an external review procedure

 

as provided in this subsection and subsection (5). A health

 

professional or facility may request an external review by the

 

commissioner director of the department of insurance and financial

 

services of a qualified health plan's adverse determination if the

 

health professional or facility makes the request not later than 30

 


days after receipt of a notice under subsection (2)(i). Within 10

 

days after a request for an external review, the commissioner

 

director of the department of insurance and financial services

 

shall complete a preliminary review to determine whether the

 

external review may proceed or request more information from the

 

health professional, facility, or the qualified health plan. The

 

health professional, facility, or the qualified health plan shall

 

supply the commissioner director of the department of insurance and

 

financial services with the requested information not later than 10

 

business days after receipt of the request for information from the

 

commissioner. director of the department of insurance and financial

 

services. Not later than 5 business days after receipt of any

 

information requested by the commissioner, the commissioner

 

director of the department of insurance and financial services, he

 

or she shall complete a preliminary review to determine whether the

 

external review may proceed. If the commissioner director of the

 

department of insurance and financial services determines that the

 

external review may not proceed, the commissioner he or she shall

 

notify in writing the health professional or facility of the

 

specific reasons for the determination and may permit the health

 

professional or facility to reapply for a preliminary review by the

 

commissioner. director of the department of insurance and financial

 

services. If the commissioner director of the department of

 

insurance and financial services determines that the external

 

review may proceed, the commissioner he or she shall notify in

 

writing the health professional or facility and the qualified

 

health plan and shall require the qualified health plan to provide

 


not later than 7 business days after the notice any information

 

used by the qualified health plan in making the adverse

 

determination. Failure by a health professional or facility or

 

qualified health plan to provide the commissioner director of the

 

department of insurance and financial services with requested

 

information permits the commissioner him or her to terminate a

 

review and issue a decision reversing or affirming an adverse

 

determination.

 

     (5) If the commissioner director of the department of

 

insurance and financial services determines that an external review

 

may proceed, the commissioner he or she shall immediately assign an

 

independent review organization to conduct the external review.

 

Only an independent review organization meeting qualifications

 

established by the commissioner director of the department of

 

insurance and financial services shall be assigned to conduct an

 

external review. The independent review organization may request

 

the health professional or facility and the qualified health plan

 

to provide information and shall review all pertinent information

 

submitted by the health professional or facility and the qualified

 

health plan along with the terms of coverage under the medicaid

 

Medicaid plan. The independent review organization shall make a

 

written recommendation that includes the rationale and supporting

 

documentation and any recommendation for an assessment of interest

 

to the commissioner director of the department of insurance and

 

financial services not later than 30 days after being assigned as

 

the review organization. The commissioner director of the

 

department of insurance and financial services shall notify in

 


writing the health professional or facility and the qualified

 

health plan of his or her decision reversing or affirming the

 

qualified health plan's adverse determination and shall include the

 

principal reasons for the decision not later than 15 days after

 

receipt of the assigned independent review organization's

 

recommendation. If an adverse determination is reversed, the

 

qualified health plan shall immediately pay the claim and any

 

interest assessed by the commissioner.director of the department of

 

insurance and financial services.

 

     (6) Beginning not later than October 1, 2000 and continuing

 

thereafter, the The department of community health shall not enter

 

into or renew a contract with a qualified health plan unless the

 

qualified health plan agrees to follow the timely claims processing

 

and payment procedure established under this section and requires

 

health professionals and facilities under contract with the

 

qualified health plan to follow the timely claims processing and

 

payment procedure established under this section. The department of

 

community health shall not enter into or renew a contract with a

 

qualified health plan unless the commissioner director of the

 

department of insurance and financial services determines that the

 

qualified health plan satisfies all of the following:

 

     (a) Is a health maintenance organization licensed or issued a

 

certificate of authority in this state.

 

     (b) Uses standardized claims as outlined in the provider

 

contract and accepts claims submitted electronically in a generally

 

accepted format.

 

     (c) Demonstrates the ability to provide all required or

 


covered medicaid Medicaid services including covered specialty care

 

to the estimated number of enrollees on a regional basis.

 

     (d) Meets the criteria for delivering the comprehensive

 

package of services under the department of community health's

 

department's comprehensive health plan.

 

     (7) The commissioner shall report to the senate and house of

 

representatives appropriations subcommittees on community health by

 

October 1, 2001 on the timely claims processing and payment

 

procedure established under this section.

 

     (7) (8) It is not a fraudulent act for a health professional

 

or facility to submit a claim under this section that includes 1 or

 

more rendered services that are determined not covered services.

 

     (8) (9) As used in this section, :

 

     (a) "Medicaid" means the program of medical assistance

 

established under section 105.

 

     (b) "Qualified "qualified health plan" means, at a minimum, an

 

organization that meets the criteria for delivering the

 

comprehensive package of services under the department of community

 

health's department's comprehensive health plan.

 

     Sec. 111k. (1) Beginning October 1, 2007, the The department

 

of community health shall ensure that, as a condition of

 

participation and funding, all health professionals, facilities, or

 

health maintenance organizations receiving medicaid Medicaid

 

payments under this act are in substantial compliance with federal

 

standards for lead screening for children enrolled in

 

medicaid.Medicaid.

 

     (2) The department of community health shall determine the

 


statewide average of lead screening being performed on children who

 

are enrolled in medicaid Medicaid on October 1, 2007 and shall

 

determine whether the rate of children who are enrolled in medicaid

 

Medicaid receiving a lead screening is substantially in compliance

 

with the federal standards for lead screening for children enrolled

 

in medicaid. Medicaid. If the rate of children who are enrolled in

 

medicaid Medicaid receiving a lead screening is below 80%, the

 

director of the department of community health shall present to the

 

senate and house health policy committees a written report

 

detailing why the rate is not in substantial compliance with the

 

federally required standards for lead screening and the department

 

of community health's department's recommendations for improving

 

the rate. If the statewide lead screening testing rate does not

 

equal or exceed 80% for medicaid-enrolled Medicaid-enrolled

 

children by October 1, 2007, the department of community health

 

may, with funds appropriated for medicaid Medicaid managed care or

 

medicaid Medicaid fee for services, contract with community

 

agencies to provide the percentage of lead screening tests needed

 

to reach an 80% lead screening testing rate. A contracting

 

organization that meets or surpasses contract performance

 

requirements is entitled to share in financial bonuses awarded

 

under the performance bonus program and receive not less than 10%

 

of the beneficiaries who do not voluntarily select a specific

 

health plan at the time of managed care enrollment in addition to

 

any other auto assignments to which the contracting organization is

 

entitled.

 

     (3) As used in this section, "medicaid" means the program of

 


medical assistance administered by the state under section 105.

 

     Sec. 111l. Beginning October 1, 2006, the The department and

 

the department of community health shall require that all children

 

participants in the special supplemental food program for women,

 

infants, and children (WIC program) receive lead testing. Federal

 

funds provided for administration of the special supplemental food

 

program for women, infants, and children (WIC program) shall not be

 

used to implement or administer the provisions of this section.

 

     Sec. 112b. As used in this section and sections 112c to 112e:

 

     (a) "Asset disregard" means, with regard to the state's

 

medical assistance program, disregarding any assets or resources in

 

an amount equal to the insurance benefit payments that are made to

 

or on behalf of an individual who is a beneficiary under a

 

qualified long-term care insurance partnership policy.

 

     (b) "Long-term care insurance policy" means a policy described

 

in chapter 39 of the insurance code of 1956, 1956 PA 218, MCL

 

500.3901 to 500.3955.

 

     (c) "Long-term care partnership program" means a qualified

 

state long-term care insurance partnership as defined in section

 

1917(b) of the social security act, 42 USC 1396p.

 

     (d) "Long-term care partnership program policy" means a

 

qualified long-term care insurance policy that the commissioner of

 

the office of financial and insurance services director of the

 

department of insurance and financial services certifies as meeting

 

the requirements of section 1917(b) of the social security act, 42

 

USC 1396p, section 6021 of the federal deficit reduction act of

 

2005, Public Law 109-171, and any applicable federal regulations or

 


guidelines.

 

     (e) "Medicaid" means the program of medical assistance

 

established by the department of community health under section

 

105.

 

     Sec. 112c. (1) Subject to subsection (5), the department of

 

community health in conjunction with the office of financial and

 

insurance services and the department of human services department

 

of insurance and financial services shall establish a long-term

 

care partnership program in Michigan this state to provide for the

 

financing of long-term care through a combination of private

 

insurance and medicaid. Medicaid. It is the intent of the long-term

 

care partnership program to do all of the following:

 

     (a) Provide incentives for individuals to insure ensure

 

against the costs of providing for their long-term care needs.

 

     (b) Provide a mechanism for individuals to qualify for

 

coverage of the cost of their long-term care needs under medicaid

 

Medicaid without first being required to substantially exhaust

 

their resources.

 

     (c) Alleviate the financial burden on the state's medical

 

assistance program by encouraging the pursuit of private

 

initiatives.

 

     (2) An individual who is a beneficiary of a Michigan long-term

 

care partnership program policy is eligible for assistance under

 

the state's medical assistance program using the asset disregard as

 

provided under subsection (5).

 

     (3) The department of community health shall pursue reciprocal

 

agreements with other states to extend the asset disregard to

 


Michigan residents who purchased long-term care partnership

 

policies in other states that are compliant with title VI, section

 

6021 of the federal deficit reduction act of 2005, Public Law 109-

 

171, and any applicable federal regulations or guidelines.

 

     (4) Upon diminishment of assets below the anticipated

 

remaining benefits under a long-term care partnership program

 

policy, certain assets of an individual, as provided under

 

subsection (5), shall not be considered when determining any of the

 

following:

 

     (a) Medicaid eligibility.

 

     (b) The amount of any medicaid Medicaid payment.

 

     (c) Any subsequent recovery by the state of a payment for

 

medical services or long-term care services.

 

     (5) Not later than 270 days after the effective date of the

 

amendatory act that added this subsection, October 7, 2007, the

 

department of community health shall apply to the United States

 

department Department of health Health and human services Human

 

Services for an amendment to the state's medicaid Medicaid state

 

plan to establish that the assets an individual owns and may retain

 

under medicaid Medicaid and still qualify for benefits under

 

medicaid Medicaid at the time the individual applies for benefits

 

is are increased dollar-for-dollar for each dollar paid out under

 

the individual's long-term care insurance policy if the individual

 

is a beneficiary of a qualified long-term care partnership program

 

policy.

 

     (6) If the long-term care partnership program is discontinued,

 

an individual who purchased a Michigan long-term care partnership

 


program policy before the date the program was discontinued shall

 

be eligible to receive asset disregard if allowed as provided by

 

title VI, section 6021 of the federal deficit reduction act of

 

2005, Public Law 109-171.

 

     (7) The department of community health shall contract with the

 

Michigan medicare medicaid Medicare Medicaid assistance program or

 

department of community health designated department-designated

 

single point of entry agencies, or both, to provide counseling

 

services under the Michigan long-term care partnership program.

 

     (8) The department, of community health, in consultation with

 

the department of human services and the office of financial and

 

insurance and financial services, shall develop a notice to

 

consumers detailing in plain language the pertinent provisions of

 

qualified state long-term care insurance partnership policies as

 

they relate to medicaid Medicaid eligibility and shall determine

 

the appropriate distribution of the notice. The notice shall be

 

available in a printable form on the office of financial and

 

department of insurance and financial services's website.

 

     (9) The department , the department of community health, and

 

the office of financial and the department of insurance and

 

financial services shall post, on their respective websites,

 

information on how to access the national clearinghouse established

 

under the federal deficit reduction act of 2005, Public Law 109-

 

171, when the national clearinghouse becomes available to

 

consumers.

 

     Sec. 112e. The department, of community health, in

 

consultation with the department of human services and the office

 


of insurance and financial services, may promulgate rules pursuant

 

according to the administrative procedures act of 1969, 1969 PA

 

306, MCL 24.201 to 24.328, as necessary to implement the

 

partnership program in accordance with the requirements of section

 

1917(b) of the social security act, 42 USC 1396p, section 6021 of

 

the federal deficit reduction act of 2005, Public Law 109-171, and

 

applicable federal regulations or guidelines.

 

     Sec. 112g. (1) Subject to section 112c(5), the department of

 

community health shall establish and operate the Michigan medicaid

 

Medicaid estate recovery program to comply with requirements

 

contained in section 1917 of title XIX. The department of community

 

health shall work with the appropriate state and federal

 

departments and agencies to review options for development of a

 

voluntary estate preservation program. Beginning not later than 180

 

days after the effective date of the amendatory act that added this

 

section March 28, 2008 and every 180 days thereafter, after that,

 

the department of community health shall submit a report to the

 

senate and house appropriations subcommittees with jurisdiction

 

over department of community health matters and the senate and

 

house fiscal agencies regarding options for development of the

 

estate preservation program.

 

     (2) The department of community health shall establish an

 

estate recovery program including various estate recovery program

 

activities. These activities shall include, at a minimum, all of

 

the following:

 

     (a) Tracking assets and services of recipients of medical

 

assistance that are subject to estate recovery.

 


     (b) Actions necessary to collect amounts subject to estate

 

recovery for medical services as determined according to subsection

 

(3)(a) provided to recipients identified in subsection (3)(b).

 

Amounts subject to recovery shall not exceed the cost of providing

 

the medical services. Any settlements shall take into account the

 

best interests of the state and the spouse and heirs.

 

     (c) Other activities necessary to efficiently and effectively

 

administer the program.

 

     (3) The department of community health shall seek appropriate

 

changes to the Michigan medicaid Medicaid state plan and shall

 

apply for any necessary waivers and approvals from the federal

 

centers Centers for medicare Medicare and medicaid services

 

Medicaid Services to implement the Michigan medicaid Medicaid

 

estate recovery program. The department of community health shall

 

seek approval from the federal centers Centers for medicare

 

Medicare and medicaid Medicaid Services regarding all of the

 

following:

 

     (a) Which medical services are subject to estate recovery

 

under section 1917(b)(1)(B)(i) and (ii) of title XIX.

 

     (b) Which recipients of medical assistance are subject to

 

estate recovery under section 1917(a) and (b) of title XIX.

 

     (c) Under what circumstances the program shall pursue recovery

 

from the estates of spouses of recipients of medical assistance who

 

are subject to estate recovery under section 1917(b)(2) of title

 

XIX.

 

     (d) What actions may be taken to obtain funds from the estates

 

of recipients subject to recovery under section 1917 of title XIX,

 


including notice and hearing procedures that may be pursued to

 

contest actions taken under the Michigan medicaid Medicaid estate

 

recovery program.

 

     (e) Under what circumstances the estates of medical assistance

 

recipients will be are exempt from the Michigan medicaid Medicaid

 

estate recovery program because of a hardship. At the time an

 

individual enrolls in medicaid Medicaid for long-term care

 

services, the department of community health shall provide to the

 

individual written materials explaining the process for applying

 

for a waiver from estate recovery due to hardship. The department

 

of community health shall develop a definition of hardship

 

according to section 1917(b)(3) of title XIX that includes, but is

 

not limited to, the following:

 

     (i) An exemption for the portion of the value of the medical

 

assistance recipient's homestead that is equal to or less than 50%

 

of the average price of a home in the county in which the medicaid

 

Medicaid recipient's homestead is located as of the date of the

 

medical assistance recipient's death.

 

     (ii) An exemption for the portion of an estate that is the

 

primary income-producing asset of survivors, including, but not

 

limited to, a family farm or business.

 

     (iii) A rebuttable presumption that no hardship exists if the

 

hardship resulted from estate planning methods under which assets

 

were diverted in order to avoid estate recovery.

 

     (f) The circumstances under which the department of community

 

health may review requests for exemptions and provide exemptions

 

from the Michigan medicaid Medicaid estate recovery program for

 


cases that do not meet the definition of hardship developed by the

 

department. of community health.

 

     (g) Implementing the provisions of section 1396p(b)(3) of

 

title XIX to ensure that the heirs of persons subject to the

 

Michigan medicaid Medicaid estate recovery program will not be

 

unreasonably harmed by the provisions of this program.

 

     (4) The department of community health shall not seek medicaid

 

Medicaid estate recovery if the costs of recovery exceed the amount

 

of recovery available or if the recovery is not in the best

 

economic interest of the state.

 

     (5) The department of community health shall not implement a

 

Michigan medicaid Medicaid estate recovery program until approval

 

by the federal government is obtained.

 

     (6) The department of community health shall not recover

 

assets from the home of a medical assistance recipient if 1 or more

 

of the following individuals are lawfully residing in that home:

 

     (a) The medical assistance recipient's spouse.

 

     (b) The medical assistance recipient's child who is under the

 

age of 21 years, or is blind or permanently and totally disabled as

 

defined in section 1614 of the social security act, 42 USC 1382c.

 

     (c) The medical assistance recipient's caretaker relative who

 

was residing in the medical assistance recipient's home for a

 

period of at least 2 years immediately before the date of the

 

medical assistance recipient's admission to a medical institution

 

and who establishes that he or she provided care that permitted the

 

medical assistance recipient to reside at home rather than in an

 

institution. As used in this subdivision, "caretaker relative"

 


means any relation by blood, marriage, or adoption who is within

 

the fifth degree of kinship to the recipient.

 

     (d) The medical assistance recipient's sibling who has an

 

equity interest in the medical assistance recipient's home and who

 

was residing in the medical assistance recipient's home for a

 

period of at least 1 year immediately before the date of the

 

individual's admission to a medical institution.

 

     (7) The department of community health shall provide written

 

information to individuals seeking medicaid Medicaid eligibility

 

for long-term care services describing the provisions of the

 

Michigan medicaid Medicaid estate recovery program, including, but

 

not limited to, a statement that some or all of their estate may be

 

recovered.

 

     (8) The department of community health shall not charge

 

interest on the balance of any Michigan medicaid Medicaid estate

 

recovery payments.

 

     (9) The department of community health shall not place or

 

record a lien on qualifying property under the tax equity and

 

fiscal responsibility act of 1982, Public Law 97-424 97-248

 

(TEFRA).

 

     Sec. 112i. Revenue collected through Michigan medicaid

 

Medicaid estate recovery activities shall be used to fund the

 

activities of the Michigan medicaid Medicaid estate recovery

 

program. Any remaining balances shall be treated as an expenditure

 

credit for long-term care support and services in the medical

 

services appropriation unit of the annual department of community

 

health appropriation.

 


     Sec. 112j. (1) The department of community health may

 

promulgate rules for the Michigan medicaid Medicaid estate recovery

 

program according to the administrative procedures act of 1969. ,

 

1969 PA 306, MCL 24.201 to 24.328.

 

     (2) Not later than 1 year after implementation of the Michigan

 

medicaid Medicaid estate recovery program and each year after that,

 

the department of community health shall submit a report to the

 

senate and house appropriations subcommittees with jurisdiction

 

over department of community health matters and the senate and

 

house fiscal agencies regarding the cost to administer the Michigan

 

medicaid Medicaid estate recovery program and the amounts recovered

 

under the Michigan medicaid Medicaid estate recovery program.

 

     Sec. 114. (1) The office of children and youth services is

 

created as a single purpose single-purpose entity within the

 

department. of social services. The office shall be responsible for

 

the planning, development, implementation, and evaluation of

 

children and youth services conducted, administered, or purchased

 

by the department under the authority of sections 114 to 123.119b.

 

     (2) The director, of social services, after consultation with

 

the governor, shall appoint an executive director of the office.

 

The executive director shall be accountable directly to the

 

director. of social services. The executive director shall not be

 

within the classified civil service and shall receive compensation

 

as established by the legislature. The executive director shall do

 

the following:

 

     (a) Represent the department in all matters and hearings

 

pertaining to children and youth services and programs.

 


     (b) Serve as a special advisor to the governor on children and

 

youth services budgets and programs.

 

     (c) Advise the director of social services with respect to

 

children and youth services and programs conducted, administered,

 

or purchased by the department under the authority of sections 114

 

to 123, 119b, and make recommendations to the director for the

 

improvement of those services and programs.

 

     (d) Recommend to the governor and the legislature methods of

 

improving the effectiveness of public and private children and

 

youth services and programs.

 

     (e) Recommend to the governor and the legislature appropriate

 

allocations of public funds for children and youth services and

 

programs.

 

     (3) The department, in conjunction with the office, may

 

promulgate rules necessary to implement, administer, and enforce

 

its powers and duties as described in this act. The rules shall be

 

promulgated pursuant to Act No. 306 of the Public Acts of 1969, as

 

amended, being sections 24.201 to 24.315 of the Michigan Compiled

 

Laws.according to the administrative procedures act of 1969.

 

     Sec. 115f. As used in this section and sections 115g to 115t:

 

     (a) "Adoptee" means the child who is to be adopted or who is

 

adopted.

 

     (b) "Adoption assistance" means a support subsidy or a support

 

subsidy with medical assistance.

 

     (c) "Adoption assistance agreement" means an agreement between

 

the department and an adoptive parent regarding adoption

 

assistance.

 


     (d) "Adoption code" means the Michigan adoption code, chapter

 

X of the probate code of 1939, 1939 PA 288, MCL 710.21 to 710.70.

 

     (e) "Adoptive parent" means the parent or parents who adopt a

 

child under the adoption code.

 

     (f) "Certification" means a determination of eligibility by

 

the department that an adoptee is eligible for a support subsidy or

 

a medical subsidy, or both, or redetermined adoption assistance.

 

     (g) "Child with special needs" means an individual under the

 

age of 18 years for whom the state has determined all of the

 

following:

 

     (i) There is a specific judicial finding that the child cannot

 

or should not be returned to the home of the child's parents.

 

     (ii) A specific factor or condition, or a combination of

 

factors and conditions, exists before the adoption is finalized so

 

that it is reasonable to conclude that the child cannot be placed

 

with an adoptive parent without providing adoption assistance under

 

this act. The factors or conditions to be considered may include

 

ethnic or family background, age, membership in a minority or

 

sibling group, medical condition, physical, mental, or emotional

 

disability, or length of time the child has been waiting for an

 

adoptive home.

 

     (iii) A reasonable but unsuccessful effort was made to place the

 

adoptee with an appropriate adoptive parent without providing

 

adoption assistance under this act or a prospective placement is

 

the only placement in the best interest of the child.

 

     (h) "Compact" means the interstate compact on adoption and

 

medical assistance as enacted in sections 115r and 115s.

 


     (i) "Court" means the family division of circuit court.

 

     (j) "Department" means the department of human services.

 

     (j) (k) "Determination of care rate" means a supplemental

 

payment to the standard age appropriate foster care rate that may

 

be justified when extraordinary care or expense is required. The

 

supplemental payment shall be based on 1 or more of the following

 

for which extraordinary care is required of the foster care

 

provider or an extraordinary expense exists:

 

     (i) A physically disabled child for whom the foster care

 

provider must provide measurably greater supervision and care.

 

     (ii) A child with special psychological or psychiatric needs

 

that require extra time and a measurably greater amount of care and

 

attention by the foster care provider.

 

     (iii) A child requiring a special diet that is more expensive

 

than a normal diet and that requires extra time and effort by the

 

foster care provider to obtain and prepare.

 

     (iv) A child whose severe acting out or antisocial behavior

 

requires a measurably greater amount of care and attention of the

 

foster care provider.

 

     (v) Any other condition for which the department determines

 

that extraordinary care is required of the foster care provider or

 

an extraordinary expense exists.

 

     (k) (l) "Foster care" means placement of a child outside the

 

child's parental home under the department's supervision by a court

 

of competent jurisdiction.

 

     (l) (m) "Medical assistance" means the federally aided medical

 

assistance program under title XIX.

 


     (m) (n) "Medical subsidy" means a reimbursement program that

 

assists in paying for services for an adopted child who has an

 

identified physical, mental, or emotional condition that existed,

 

or the cause of which existed, before the adoption is finalized.

 

     (n) (o) "Medical subsidy agreement" means an agreement between

 

the department and an adoptive parent regarding a medical subsidy.

 

     (o) (p) "Nonrecurring adoption expenses" means reasonable and

 

necessary adoption fees, court costs, attorney fees, and other

 

expenses that are directly related to the legal adoption of a child

 

with special needs. Nonrecurring adoption expenses do not include

 

costs or expenses incurred in violation of state or federal law or

 

that have been reimbursed from other sources or funds.

 

     (p) (q) "Other expenses that are directly related to the legal

 

adoption of a child with special needs" means adoption costs

 

incurred by or on behalf of the adoptive parent and for which the

 

adoptive parent carries the ultimate liability for payment,

 

including the adoption study, health and psychological

 

examinations, supervision of the placement before adoption, and

 

transportation and reasonable costs of lodging and food for the

 

child or adoptive parent if necessary to complete the adoption or

 

placement process.

 

     (q) (r) "Party state" means a state that becomes a party to

 

the interstate compact on adoption and medical assistance.

 

     (r) (s) "Placement" means a placement or commitment, including

 

the necessity of removing the child from his or her parental home,

 

as approved by the court under an order of disposition issued under

 

section 2 of chapter XIIA of the probate code of 1939, 1939 PA 288,

 


MCL 712A.2.

 

     (s) (t) "Redetermined adoption assistance" means a payment as

 

determined by a certification that may be justified when

 

extraordinary care or expense is required for a condition that

 

existed or the cause of which existed before the adoption from

 

foster care was finalized.

 

     (t) (u) "Redetermined adoption assistance agreement" means a

 

written agreement regarding redetermined adoption assistance

 

between the department and the adoptive parent of a child.

 

     (u) (v) "Residence state" means the state in which the child

 

is a resident by virtue of the adoptive parent's residency.

 

     (v) (w) "Standard age appropriate foster care rate" means the

 

approved maintenance payment rate that is paid for a child in

 

foster family care.

 

     (w) (x) "State" means a state of the United States, the

 

District of Columbia, the Commonwealth of Puerto Rico, the Virgin

 

Islands, Guam, the Commonwealth of the Northern Mariana Islands, or

 

a territory or possession of the United States.

 

     (x) (y) "Support subsidy" means payment for support of a child

 

who has been placed for adoption from foster care.

 

     Sec. 115o. (1) Both of the following apply to residential care

 

bed space for juveniles who are within or likely to come within the

 

court's jurisdiction under section 2(a) or (d) of chapter XIIA of

 

1939 PA 288, MCL 712A.2, or committed to the department under the

 

youth rehabilitation services act, 1974 PA 150, MCL 803.301 to

 

803.309:

 

     (a) If 1 or more appropriate juvenile residential care

 


providers located or doing business in this state have bed space

 

available, the department shall use that space rather than a space

 

available by a provider located or doing business in another state.

 

This requirement does not apply if the provider located or doing

 

business in another state offers a specialized program that is not

 

available in this state.

 

     (b) If an excess of bed spaces is available within a security

 

level, the department shall use the bed spaces of private providers

 

with whom it has contracted and allow state owned bed spaces to go

 

unused first. However, in In applying this subdivision, a bed space

 

that is available because a facility refused to accept a juvenile

 

does not count toward a surplus.

 

     (2) As used in this section, "appropriate juvenile residential

 

care provider" means a private nonprofit entity domiciled in this

 

state that is licensed by the department of consumer and industry

 

services licensing and regulatory affairs and that entered into 1

 

or more contracts with the family independence agency department to

 

provide residential care services for juveniles on or before the

 

effective date of the amendatory act that added this

 

section.January 12, 1999.

 

     Sec. 115s. (1) The family independence agency is authorized to

 

department may negotiate and enter into interstate compacts with

 

agencies of other states for the provision of adoption assistance

 

for an adoptee who is a child with special needs, who moves into or

 

out of this state, and on behalf of whom adoption assistance is

 

being provided by this state or another state party to such a

 

compact.

 


     (2) When a compact is so entered into and for as long as it

 

remains in force, the compact has the force and effect of law.

 

     (3) A compact authorized under this act must include:

 

     (a) A provision making it available for joinder by all states.

 

     (b) A provision or provisions for withdrawal from the compact

 

upon written notice to the parties, but with a period of 1 year

 

between the date of the notice and effective date of the

 

withdrawal.

 

     (c) A requirement that the protections under the compact

 

continue in force for the duration of the adoption assistance and

 

are applicable to all children and their adoptive parents who on

 

the effective date of the withdrawal are receiving adoption

 

assistance from a party state other than the one state in which

 

they are resident and have their principal place of abode.

 

     (d) A requirement that each instance of adoption assistance to

 

which the compact applies be covered by an adoption assistance

 

agreement in writing between the adoptive parents and the state

 

child welfare agency of the state that undertakes to provide the

 

adoption assistance. An agreement required by this subdivision

 

shall be expressly for the benefit of the adopted child and be

 

enforceable by the adoptive parents and the state agency providing

 

the adoption assistance.

 

     (e) Other provisions as may be appropriate to implement the

 

proper administration of the compact.

 

     Sec. 116. (1) With respect to juvenile court probation staff

 

in a county that is not a county juvenile agency, the department

 

shall do all of the following:

 


     (a) Develop and recommend to the supreme court standards and

 

qualifications for employment and other criteria designed to

 

develop an adequate career service.

 

     (b) Maintain information as to court employment needs and

 

assist in recruiting qualified personnel.

 

     (c) Provide, with legislative approval, a statewide system of

 

preservice and inservice training, which may include full or part-

 

time scholarships.

 

     (d) Develop recommendations regarding the functions of the

 

office of county juvenile officer.

 

     (2) The department may provide consultation and assistance

 

services to the juvenile probation service of the court in a county

 

that is not a county juvenile agency.

 

     (3) The department shall develop a plan that permits the

 

voluntary transfer of county juvenile court probation staff in a

 

county that is not a county juvenile agency to the department by

 

the joint concurrence of the county board of commissioners or

 

county executive, as applicable, and the chief judge of the family

 

division of circuit court. The plan shall include procedures for

 

negotiations between the state, as represented by the department,

 

and the affected county board of commissioners or county executive,

 

the county family independence agency board, and the chief judge of

 

the family division of circuit court for that county. The plan

 

shall afford juvenile court probation staff transferred under the

 

plan the opportunity to be employed in the state classified civil

 

service in compliance with procedures established by the Michigan

 

civil service commission. The plan shall enable the court to

 


maintain sufficient staff to enforce court orders and to perform

 

the preliminary inquiry and monitoring of court wards required by

 

chapter XIIA of the probate code of 1939, 1939 PA 288, MCL 712A.1

 

to 712A.32. The plan shall be submitted to the legislature not

 

later than 18 months after the effective date of this subsection.

 

     (4) As used in this section, "county juvenile agency" means

 

that term as defined in section 2 of the county juvenile agency

 

act, 1998 PA 518, MCL 45.622.

 

     Sec. 117c. (1) The county treasurer is designated as the

 

custodian of all money provided for the use of the county family

 

independence agency, department, the family division of circuit

 

court, and the agency designated by the county board of

 

commissioners or, if a county has a county executive, chief

 

administrative officer, or county manager, that individual to

 

provide juvenile justice services. The county treasurer shall

 

create and maintain a child care fund. The following money shall be

 

deposited in the child care fund:

 

     (a) All money raised by the county for the use of the county

 

family independence agency department for the foster care of

 

children with respect to whom the family division of circuit court

 

has not taken jurisdiction.

 

     (b) Money for the foster care of children under the

 

jurisdiction of the family division of circuit court raised by the

 

county with the view of receiving supplementary funds for this

 

purpose from the state government as provided in section 117a.

 

     (c) All funds made available by the state government for

 

foster care of children.

 


     (d) All payments made in respect to support orders issued by

 

the family division of circuit court for the reimbursement of

 

government for expenditures made or to be made from the child care

 

fund for the foster care of children.

 

     (e) All prepayments and refunds for reimbursement of county

 

family independence agencies departments for the foster care of

 

children.

 

     (f) All funds made available to the county for the foster care

 

of children from any other source, except gifts that are

 

conditioned on a different disposition or reimbursements of the

 

general fund.

 

     (g) Money for the foster care of children under the

 

jurisdiction of the court of general criminal jurisdiction

 

committed to a county facility or a court facility for juveniles in

 

the county in which the court of general criminal jurisdiction is

 

located.

 

     (h) All payments made in respect to support orders issued by

 

the court of general criminal jurisdiction for the reimbursement of

 

government for expenditures made or to be made from the child care

 

fund for the foster care of children.

 

     (2) The child care fund shall be used for the costs of

 

providing foster care for children under sections 18c and 117a and

 

under the jurisdiction of the family division of circuit court or

 

court of general criminal jurisdiction.

 

     (3) The child care fund may be used to pay the county's share

 

of the cost of maintaining children at the Michigan children's

 

institute under 1935 PA 220, MCL 400.201 to 400.214, or public

 


wards under the youth rehabilitation services act, 1974 PA 150, MCL

 

803.301 to 803.309.

 

     (4) The account for the child care fund shall be maintained

 

separate and apart from all other accounts of county funds. The

 

fund shall be used exclusively for carrying out the purposes

 

authorized by this act. The county board of commissioners shall

 

distinguish in its appropriations for the child care fund the sums

 

of money to be used by the family division of circuit court, the

 

county family independence agency, department, and the agency

 

designated by the county board of commissioners or the county

 

executive to provide juvenile justice services. The county

 

treasurer shall keep these segregated in proper subaccounts.

 

     (5) A county annually shall develop and submit a plan and

 

budget for the funding of foster care services to the office for

 

approval. Funds shall not be distributed under section 117a except

 

for reimbursement of expenditures made under an approved plan and

 

budget. The office shall not approve plans and budget that exceed

 

the amount appropriated by the legislature.

 

     (6) A county shall make and preserve accurate records of its

 

juvenile justice services and expenditures. Upon the department's

 

request, the information contained in the records shall be

 

available to the office.

 

     (7) This section does not apply to a county that is a county

 

juvenile agency.

 

     Enacting section 1. Sections 2, 109i, and 109j of the social

 

welfare act, 1939 PA 280, MCL 400.2, 400.109i, and 400.109j, are

 

repealed.

 


     Enacting section 2. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

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