Bill Text: MI SB1119 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Mental health: community mental health; retention of certain review information; require. Amends sec. 232a of 1974 PA 258 (MCL 330.1232a) & adds sec. 137b.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced) 2026-07-15 - Referred To Committee On Housing And Human Services [SB1119 Detail]
Download: Michigan-2025-SB1119-Introduced.html
SENATE BILL NO. 1119
A bill to amend 1974 PA 258, entitled
"Mental health code,"
by amending section 232a (MCL 330.1232a), as amended by 2012 PA 376, and by adding section 137b.
the people of the state of michigan enact:
Sec. 137b. (1) The department shall conduct an annual review of each psychiatric hospital's recipient rights system to ensure compliance with standards established under chapters 7 and 7a. For each annual review, the department shall demonstrate how the department's review of data obtained from the psychiatric hospital fulfills the department's duty to ensure that the psychiatric hospital is compliant with chapters 7 and 7a.
(2) The department shall conduct an on-site review once every 3 years. For each on-site review, the department shall produce a report that includes, but is not limited to, all of the following:
(a) Verification of the completeness of the psychiatric hospital's complaints and appeals log and a sample of complaints and appeals for review from the complaints and appeals log.
(b) A complete and legible summary of each complaint and appeal reviewed under subdivision (a).
(c) An assessment of applicable provider contract and policy information provided by the psychiatric hospital.
(d) An indication whether the department conducted an exit interview with any psychiatric hospital staff.
(e) An indication whether the psychiatric hospital provided the department a plan of correction or whether the department recommends a plan of correction to the psychiatric hospital.
(f) The dates that the department completed the on-site review.
(g) The criteria that the department uses to determine whether the psychiatric hospital is compliant with this section.
(h) The recipient rights invoked during the on-site review and the associated rule establishing that recipient right.
(i) Detailed scoring results by the department with recommendations or required action and a plan of correction submitted by the psychiatric hospital.
(3) The department shall develop, implement, and maintain an on-site review tool that demonstrates a report's compliance with subsection 2(a) to (i) in support of the report's conclusions.
(4) The department shall make each report prepared under subsection (2) publicly available on the department's website and provide a copy to the standing committees of the senate and house of representatives with jurisdiction over issues pertaining to behavioral health.
Sec. 232a. (1) Subject to section 114a, the department shall promulgate rules to establish standards for certification and the certification review process for community mental health services programs. The standards shall must include, but are not be limited to, all of the following:
(a) Matters of governance, resource management, quality improvement, service delivery, and safety management.
(b) Promotion and protection of recipient rights.
(2) After reviewing a community mental health services program, the department shall notify a community mental health services program that substantially complies with the standards established under this section that it the community mental health services program is certified by the department.
(3) The department may waive the certification review process in whole or in part and consider the community mental health services program to be in substantial compliance with the standards established under this section if the program has received accreditation from a national accrediting organization recognized by the department that includes review of matters described in subsection (1)(a).
(4) If the department certifies a community mental health services program despite some items of noncompliance with the standards established under this section, the notice of certification shall must identify the items of noncompliance and the community mental health services program shall correct the items of noncompliance. The department shall require the community mental health board to submit a plan to correct items of noncompliance before recertification or sooner at the department's discretion. of the department.
(5) Certification is effective for 3 years and is not transferable. Requests for recertification shall must be submitted to the department at least not less than 6 months before the expiration of a certification. Certification remains in effect after the submission of a renewal request until the department conducts a review and makes a redetermination.
(6) The department shall conduct an annual review of each community mental health services program's recipient rights system to ensure compliance with standards established under subsection (1)(b). For each annual review, the department shall demonstrate how the department's review of data obtained from the community mental health services program fulfills the department's duty to ensure the community mental health services program is compliant with subsection (1)(b).
(7) An The department shall conduct an on-site review shall be conducted once every 3 years. For each on-site review, the department shall produce a report that includes, but is not limited to, all of the following:
(a) Verification of the completeness of the community mental health services program's complaints and appeals log and a sample of complaints and appeals for review from the complaints and appeals log.
(b) A complete and legible summary of each complaint reviewed under subdivision (a).
(c) An assessment of applicable provider contract and policy information provided by the community mental health services program.
(d) An indication whether the department conducted an exit interview with any community mental health services program staff.
(e) An indication whether the community mental health services program provided the department a plan of correction or whether the department recommends a plan of correction to the community mental health services program.
(f) The dates that the department completed the on-site review.
(g) The criteria that the department uses to determine whether the community mental health services program is compliant with this section.
(h) The recipient rights invoked during the on-site review and the associated rule establishing that recipient right.
(i) Detailed scoring results by the department with recommendations or required action and a plan of correction submitted by the community mental health services program.
(8) Not less than 30 days before the department conducts an on-site review under subsection (7), a community mental health services program shall provide the department with a copy of all of the following:
(a) A complete complaints and appeals log.
(b) All documentation regarding the department's on-site visits.
(c) All documentation regarding staff training.
(9) The department shall make each report prepared under subsection (7) publicly available on the department's website and provide a copy to the standing committees of the senate and house of representatives with jurisdiction over issues pertaining to behavioral health.
(10) (7) The community mental health services program shall promptly notify the department of any changes that may affect continued certification.
(11) (8) The department may deny certification if the community mental health services program cannot demonstrate substantial compliance with the standards established under this section.
(12) (9) In lieu Instead of denying certification, the department may issue a provisional certification for a period of up to 6 months upon on receiving a plan of correction submitted by the community mental health services board. The department shall provide a copy of the review and the approved plan of correction to the board of commissioners of each county that established the county community mental health agency or created the community mental health organization or community mental health authority. A provisional certification may be extended, but the entire provisional period shall must not exceed 1 year. The department shall conduct an on-site review to determine the community mental health services program's compliance with the plan of correction at least not less than 30 days before the expiration of the provisional certification. A provisional certification automatically expires either on its the provisional certification's original expiration date or the expiration date of the extension granted.
(13) (10) If a community mental health services program is denied certification, fails to comply with an approved plan of correction before the expiration of a provisional certification, or fails to comply substantially with the standards established under this section, the department shall notify the community mental health services board and the board of commissioners of each county that established the community mental health agency or created the community mental health organization or community mental health authority of the department's intention to suspend, deny, or revoke certification. The notice shall must be sent by certified mail and shall set forth must state the particular reasons for the proposed action and offer an opportunity for a hearing with the director of the department's division that manages contracts with community mental health services programs. If it the community mental health services board desires a hearing, the community mental health services board shall request it in writing within not later than 60 days after receipt of the notice. The department shall hold the hearing not less than 30 days or more than 60 days from the date it the department receives the request for a hearing.
(14) (11) The director of the department's division that manages contracts with community mental health services programs shall make a decision regarding suspension, denial, or revocation of certification based on evidence presented at the hearing or on the default of the community mental health services board. A copy of the decision shall must be sent by certified mail within not later than 45 days after the close of the hearing to the community mental health services board and to the board of commissioners of each county that established the community mental health agency or created the community mental health organization or community mental health authority.
(15) (12) A community mental health services board may appeal a decision made under subsection (11) (14) as provided in chapter 4 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.287.
(16) (13) During the period of certification, the department may conduct an unannounced review of a certified community mental health services program. The department shall conduct an unannounced review of a certified community mental health services program in response to information that raises questions regarding recipient health or safety. If the department finds based on its the department's review that the community mental health services program does not substantially comply with the standards established under this section, the department shall provide notice and a hearing under subsections (10) (13) and (11).(14).
(17) (14) If a community mental health services program fails to obtain or retain certification as a result of the department's review, has exhausted the time period for provisional certification, is not engaged in the process of appeal or appeal has been unsuccessful, and if no agreement has been reached by the department with the community mental health services program to assure certification compliance within a specified time period, the department shall within 90 days do both of the following:
(a) Cancel the state funding commitment to the community mental health services board.
(b) Utilize Use the funds money previously provided to the community mental health services board to do 1 or more of the following:
(i) Secure services from other providers of mental health services that the department has determined can operate in substantial compliance with the standards established under this section and continue the delivery of services within the county or counties.
(ii) Provide the service.
(18) (15) If state funding is canceled under subsection (14) (17) and the community mental health services program is an a community mental health authority created under section 205, the county or counties that created the community mental health authority are financially liable only for the local match formula established for the community mental health authority under chapter 3. If state funding is canceled under subsection (14) (17) and the community mental health services program is a county community mental health agency or a community mental health organization, the county or counties that established the agency are financially liable for local match for all services contractually or directly provided by the department to residents of the county or counties in accordance with under chapter 3.
(19) (16) The department shall not utilize use the certification process under this section to require a community mental health services program to become a community mental health authority. Except as provided in section 204(4), community mental health authority status is voluntary as provided in section 205.
