Bill Text: MI SB0671 | 2019-2020 | 100th Legislature | Enrolled
Bill Title: Health facilities: certificate of need; certificate of need commission; modify members and require department to prepare a report on access to certain psychiatric beds. Amends secs. 22211 & 22215 of 1978 PA 368 (MCL 333.22211 & 333.22215). TIE BAR WITH: SB 0669'19, SB 0672'19
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2020-12-30 - Pocket Veto 01/05/2021 [SB0671 Detail]
Download: Michigan-2019-SB0671-Enrolled.html
state of michigan
100th Legislature
Regular session of 2020
Introduced by Senators
Theis and VanderWall
ENROLLED SENATE BILL No. 671
AN ACT to amend 1978 PA 368, entitled “An act to protect and promote the public health; to codify, revise, consolidate, classify, and add to the laws relating to public health; to provide for the prevention and control of diseases and disabilities; to provide for the classification, administration, regulation, financing, and maintenance of personal, environmental, and other health services and activities; to create or continue, and prescribe the powers and duties of, departments, boards, commissions, councils, committees, task forces, and other agencies; to prescribe the powers and duties of governmental entities and officials; to regulate occupations, facilities, and agencies affecting the public health; to regulate health maintenance organizations and certain third party administrators and insurers; to provide for the imposition of a regulatory fee; to provide for the levy of taxes against certain health facilities or agencies; to promote the efficient and economical delivery of health care services, to provide for the appropriate utilization of health care facilities and services, and to provide for the closure of hospitals or consolidation of hospitals or services; to provide for the collection and use of data and information; to provide for the transfer of property; to provide certain immunity from liability; to regulate and prohibit the sale and offering for sale of drug paraphernalia under certain circumstances; to provide for the implementation of federal law; to provide for penalties and remedies; to provide for sanctions for violations of this act and local ordinances; to provide for an appropriation and supplements; to repeal certain acts and parts of acts; to repeal certain parts of this act; and to repeal certain parts of this act on specific dates,” by amending sections 22211 and 22215 (MCL 333.22211 and 333.22215), section 22211 as amended by 2014 PA 107 and section 22215 as amended by 2002 PA 619.
The People of the State of Michigan enact:
Sec. 22211. (1) The certificate of need commission is created in the department. The governor shall appoint members to the commission with the advice and consent of the senate. The governor shall not appoint more than 6 members from the same major political party and shall appoint 5 members from another major political party. The commission consists of the following 13 members:
(a) Two individuals representing hospitals.
(b) One individual representing physicians licensed under part 170 to engage in the practice of medicine.
(c) One individual representing physicians licensed under part 175 to engage in the practice of osteopathic medicine and surgery.
(d) One individual who is a physician licensed under part 170 or 175 representing a school of medicine or osteopathic medicine.
(e) One individual representing nursing homes.
(f) One individual representing nurses.
(g) One individual representing a company that is self-insured for health coverage.
(h) One individual representing a company that is not self-insured for health coverage.
(i) One individual representing a nonprofit health care corporation operating pursuant to the nonprofit health care corporation reform act, 1980 PA 350, MCL 550.1101 to 550.1704, or a nonprofit mutual disability insurer into which a nonprofit health care corporation has merged as provided in section 5805(1) of the insurance code of 1956, 1956 PA 218, MCL 500.5805.
(j) One individual representing organized labor unions in this state.
(k) Two individuals representing the general public, 1 of whom is from a county with a population of less than 40,000.
(2) In making appointments, the governor shall, to the extent feasible, ensure that the membership of the commission is broadly representative of the interests of all of the people of this state and of the various geographic regions.
(3) A member of the commission shall serve for a term of 3 years or until a successor is appointed. A vacancy on the commission must be filled for the remainder of the unexpired term in the same manner as the original appointment.
(4) Commission members are subject to the following:
(a) 1968 PA 317, MCL 15.321 to 15.330.
(b) 1973 PA 196, MCL 15.341 to 15.348.
(c) 1978 PA 472, MCL 4.411 to 4.431.
Sec. 22215. (1) The commission shall do all of the
following:
(a) If determined
necessary by the commission, revise, add to, or delete 1 or more of the covered
clinical services listed in section 22203. If the commission proposes to add to
the covered clinical services listed in section 22203, the commission shall
develop proposed review standards and make the review standards available to
the public not less than 30 days before conducting a hearing under subsection
(3).
(b) Develop,
approve, disapprove, or revise certificate of need review standards that
establish for purposes of section 22225 the need, if any, for the initiation,
replacement, or expansion of covered clinical services, the acquisition or beginning
the operation of a health facility, making changes in bed capacity, or making
covered capital expenditures, including conditions, standards, assurances, or
information that must be met, demonstrated, or provided by a person who applies
for a certificate of need. A certificate of need review standard may also
establish ongoing quality assurance requirements including any or all of the
requirements specified in section 22225(2)(c). Except for nursing home and
hospital long-term care unit bed review standards, the certificate of need
review standards must include a requirement that each applicant participate in
title XIX.
(c) Direct the
department to prepare and submit recommendations regarding commission duties
and functions that are of interest to the commission including, but not limited
to, specific modifications of proposed actions considered under this section.
(d) Approve,
disapprove, or revise proposed criteria for determining health facility
viability under section 22225.
(e) Annually
assess the operations and effectiveness of the certificate of need program
based on periodic reports from the department and other information available
to the commission.
(f) By January 1
of every odd
year, make
recommendations to the joint committee regarding statutory changes to improve
or eliminate the certificate of need program.
(g) On submission by the
department, approve, disapprove, or revise standards to be used by the department
in designating a regional certificate of need review agency under section 22226.
(h) Develop,
approve, disapprove, or revise certificate of need review standards governing
the acquisition of new technology.
(i) In accordance
with section 22255, approve, disapprove, or revise proposed procedural rules
for the certificate of need program.
(j) Consider the
recommendations of the department and the department of attorney general as to
the administrative feasibility and legality of proposed actions under
subdivisions (a), (b), and (c).
(k) Consider the
impact of a proposed restriction on the acquisition of or availability of
covered clinical services on the quality, availability, and cost of health
services in this state. By January 1, 2026, direct the department to
prepare and submit a report to the commission on access to inpatient
psychiatric beds in counties with a population of 40,000 or less based on the
most recent federal decennial census. The report must identify key factors
impacting access to inpatient psychiatric beds. Within 30 days after receiving
the report, the commission shall provide a copy of the report to the standing
committees in the senate and house of representatives that consider issues
pertaining to health policy.
(l) If the commission
determines it necessary, appoint standard advisory committees to assist in the
development of proposed certificate of need review standards. A standard
advisory committee shall complete its duties under this subdivision and submit
its recommendations to the commission within 6 months unless a shorter period
of time is specified by the commission when the standard advisory committee is
appointed. An individual shall serve on no more than 2 standard advisory
committees in any 2-year period. The composition of a standard advisory
committee must not include a lobbyist
registered under 1978 PA 472, MCL 4.411 to 4.431, but must include the following:
(i) Experts with professional competence in the subject matter
of the proposed standard, who must constitute
at least 2/3 majority of the standard
advisory committee.
(ii) At least 1 representative of health
care provider organizations concerned with licensed health facilities or
licensed health professions.
(iii) At least 1 representative of
organizations concerned with health care consumers, or the purchasers or
payers of health care services.
(m) In addition to
subdivision (b), review and, if necessary, revise each set of certificate of need
review standards at least every 3 years.
(n) If a standard
advisory committee is not appointed by the commission and the commission
determines it necessary, submit a request to the department to engage the
services of private consultants or request the department to contract with any
private organization for professional and technical assistance and advice or
other services to assist the commission in carrying out its duties and
functions under this part.
(2) The commission shall
exercise its duties under this part to promote and ensure all of the following:
(a) The availability and
accessibility of quality health services at a reasonable cost and within a
reasonable geographic proximity for all people in this state.
(b) Appropriate
differential consideration of the health care needs of residents in rural
counties in ways that do not compromise the quality and affordability of health
care services for those residents.
(3) Not less than 30
days before final action is taken by the commission under subsection (1)(a),
(b), (d), or (h), the commission shall conduct a
public hearing on its proposed action. In addition, not less than 30 days
before final action is taken by the commission under subsection (1)(a), (b),
(d), or (h), the commission chairperson
shall submit the proposed action and a concise summary of the expected impact
of the proposed action for comment to each member of the joint committee. The
commission shall inform the joint committee of the date, time, and location of
the next meeting regarding the proposed action. The joint committee shall
promptly review the proposed action and submit its recommendations and concerns
to the commission.
(4) The commission
chairperson shall submit the proposed final action including a concise summary
of the expected impact of the proposed final action to the governor and each
member of the joint committee. The governor or the legislature may disapprove
the proposed final action within 45 days after the date of submission. If the
proposed final action is not submitted on a legislative session day, the 45
days commence on the first legislative session day after the proposed final
action is submitted. The 45 days must include
not less than 9 legislative session days. Legislative disapproval must be expressed by concurrent resolution which must be adopted by each house of the legislature. The concurrent
resolution must state specific
objections to the proposed final action. A proposed final action by the
commission under subsection (1)(a), (b), (d), or (h)
is not effective if it has been disapproved under this
subsection. If the proposed final action is not disapproved under this
subsection, it is effective and binding on all persons affected by this part
upon the expiration of the 45-day period or on a later date specified in the
proposed final action. As used in this subsection, “legislative session day”
means each day in which a quorum of either the house of representatives or the
senate, following a call to order, officially convenes in Lansing to conduct
legislative business.
(5) The commission shall
not develop, approve, or revise a certificate of need review standard that
requires the payment of money or goods or the provision of services unrelated
to the proposed project as a condition that must be satisfied by a person
seeking a certificate of need for the initiation, replacement, or expansion of
covered clinical services, the acquisition or beginning the operation of a
health facility, making changes in bed capacity, or making covered capital
expenditures. This subsection does not preclude a requirement that each
applicant participate in title XIX, or a
requirement that each applicant provide covered clinical services to all
patients regardless of his or her ability to pay.
(6) If the reports
received under section 22221(f) indicate that the certificate of need
application fees collected under section 20161 have not been within 10% of 3/4
the cost to the department of implementing this part, the commission shall make
recommendations regarding the revision of those fees so that the certificate of
need application fees collected equal approximately 3/4 of the cost to the
department of implementing this part.
(7) As used in this section, “joint committee” means the
joint committee created under section 22219.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:
(a) Senate Bill No. 669.
(b) Senate Bill No. 672.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor
