HB-5895, As Passed House, June 29, 2004                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 5895                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1978 PA 368, entitled                                             

                                                                                

    "Public health code,"                                                       

                                                                                

    by amending section 20162 (MCL 333.20162) and by adding section             

                                                                                

    20935.                                                                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 20162.  (1)  Upon  Beginning on the effective date of                  

                                                                                

2   the amendatory act that added section 20935, upon a determination           

                                                                                

3   that a health facility or agency is in compliance with this                 

                                                                                

4   article and the rules promulgated under this article, the                   

                                                                                

5   department shall issue  a  an initial or renewal license within 6           

                                                                                

6   months after the applicant files a completed application.                   

                                                                                

7   Receipt of the application is considered the date the application           

                                                                                

8   is received by any agency or department of this state. If the               

                                                                                

9   application is considered incomplete by the department, the                 

                                                                                

10  department shall notify the applicant in writing or make the                

                                                                                


                                                                                

1   notice electronically available within 30 days after receipt of             

                                                                                

2   the incomplete application, describing the deficiency and                   

                                                                                

3   requesting additional information. If the department identifies a           

                                                                                

4   deficiency or requires the fulfillment of a corrective action               

                                                                                

5   plan, the 6-month period is tolled until either of the following            

                                                                                

6   occurs:                                                                     

                                                                                

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

                                                                                

8   until the date the requested information is received by the                 

                                                                                

9   department.                                                                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13      (2) The determination of the completeness of an application                 

                                                                                

14  does not operate as an approval of the application for the                  

                                                                                

15  license and does not confer eligibility of an applicant                     

                                                                                

16  determined otherwise ineligible for issuance of a license.                  

                                                                                

17      (3)  (2)  Except as otherwise provided in this subsection,                  

                                                                                

18  if the department fails to issue or deny a license within the               

                                                                                

19  time period required by this section, the department shall return           

                                                                                

20  the license fee and shall reduce the license fee for the                    

                                                                                

21  applicant's next licensure or renewal application, if any, by               

                                                                                

22  15%.  Failure to issue or deny a license within the time period             

                                                                                

23  required under this section does not allow the department to                

                                                                                

24  otherwise delay processing an application.  The completed                   

                                                                                

25  application shall be placed in sequence with other completed                

                                                                                

26  applications received at that same time.  The department shall              

                                                                                

27  not discriminate against an applicant in the processing of the              


                                                                                

1   application based upon the fact that the application fee was                

                                                                                

2   refunded or discounted under this subsection. The department may            

                                                                                

3   issue a nonrenewable temporary permit for not more than 6 months            

                                                                                

4   if additional time is needed to make a proper investigation or to           

                                                                                

5   permit the applicant to undertake remedial action related to                

                                                                                

6   operational or procedural deficiencies or items of                          

                                                                                

7   noncompliance.  A temporary permit shall not be issued to cover             

                                                                                

8   deficiencies in physical plant requirements.                                

                                                                                

9       (4)  (3)  Except as provided in part 217, the department may                

                                                                                

10  issue a provisional license for not more than 3 consecutive years           

                                                                                

11  to an applicant who temporarily is unable to comply with the                

                                                                                

12  rules as to the physical plant owned, maintained, or operated by            

                                                                                

13  a health facility or agency except as otherwise provided in this            

                                                                                

14  article.  A provisional license shall not be issued to a new                

                                                                                

15  health facility or agency or a facility or agency whose ownership           

                                                                                

16  is transferred after  the effective date of this article                    

                                                                                

17  September 30, 1978, unless the facility or agency was licensed              

                                                                                

18  and operating under this article or a prior law for not less than           

                                                                                

19  5 years.  Provisional licensure under acts repealed by this code            

                                                                                

20  shall be counted against the 3-year maximum for licensure.                  

                                                                                

21      (5)  (4)  The department, in order to protect the people of                 

                                                                                

22  this state, shall provide a procedure for the orderly closing of            

                                                                                

23  a facility if it is unable to maintain its license under this               

                                                                                

24  section.                                                                    

                                                                                

25      (6)  (5)  Except as provided in part 217, the department,                   

                                                                                

26  upon finding that a health facility or agency is not operating in           

                                                                                

27  accord with the requirements of its license, may:                           


                                                                                

1       (a) Issue an order directing the licensee to:                               

                                                                                

2                                                                                (i) Discontinue admissions.                                                         

                                                                                

3       (ii) Transfer selected patients out of the facility.                         

                                                                                

4       (iii) Reduce its licensed capacity.                                          

                                                                                

5       (iv) Comply with specific requirements for licensure or                      

                                                                                

6   certification as appropriate.                                               

                                                                                

7       (b) Through the office of the attorney general, initiate                    

                                                                                

8   misdemeanor proceedings against the licensee as provided in                 

                                                                                

9   section 20199(1).                                                           

                                                                                

10      (7)  (6)  An order issued under subsection  (5)  (6) shall                  

                                                                                

11  be governed by the notice and hearing requirements of section               

                                                                                

12  20168(1) and the status requirements of section 20168(2).                   

                                                                                

13      (8) Beginning October 1, 2005, the director of the                          

                                                                                

14  department shall submit a report by December 1 of each year to              

                                                                                

15  the standing committees and appropriations subcommittees of the             

                                                                                

16  senate and house of representatives concerned with public health            

                                                                                

17  issues.  The director shall include all of the following                    

                                                                                

18  information in the report concerning the preceding fiscal year:             

                                                                                

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

                                                                                

20  department received and completed within the 6-month time period            

                                                                                

21  required under subsection (1).                                              

                                                                                

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

                                                                                

23  additional information.                                                     

                                                                                

24      (c) The number of applications denied.                                      

                                                                                

25      (d) The average processing time for initial and renewal                     

                                                                                

26  licenses granted after the 6-month period.                                  

                                                                                

27      (e) The number of temporary permits issued under subsection                 


                                                                                

1   (3).                                                                        

                                                                                

2       (f) The number of initial and renewal license applications                  

                                                                                

3   not issued within the 6-month period and the amount of money                

                                                                                

4   returned to applicants under subsection (3).                                

                                                                                

5       (9) As used in this section, "completed application" means                  

                                                                                

6   an application complete on its face and submitted with any                  

                                                                                

7   applicable licensing fees as well as any other information,                 

                                                                                

8   records, approval, security, or similar item required by law or             

                                                                                

9   rule from a local unit of government, a federal agency, or a                

                                                                                

10  private entity but not from another department or agency of this            

                                                                                

11  state.                                                                      

                                                                                

12      Sec. 20935.  (1) Subject to subsection (3), beginning on the                

                                                                                

13  effective date of the amendatory act that added this section, the           

                                                                                

14  department shall approve or reject an initial or renewal license            

                                                                                

15  application for an ambulance operation, nontransport prehospital            

                                                                                

16  life support operation, aircraft transport operation, or medical            

                                                                                

17  first response service within 6 months after the applicant files            

                                                                                

18  a completed application as required under this part.  Receipt of            

                                                                                

19  the application is considered the date the application is                   

                                                                                

20  received by any agency or department of this state.                         

                                                                                

21      (2) If an initial or renewal license application for an                     

                                                                                

22  ambulance operation, nontransport prehospital life support                  

                                                                                

23  operation, aircraft transport operation, or medical first                   

                                                                                

24  response service is considered incomplete by the department, the            

                                                                                

25  department shall notify the applicant in writing or make the                

                                                                                

26  notice electronically available within 30 days after receipt of             

                                                                                

27  the incomplete application, describing the deficiency and                   


                                                                                

1   requesting additional information.                                          

                                                                                

2       (3) If the department identifies a deficiency or requires                   

                                                                                

3   the fulfillment of a corrective action plan, the 6-month period             

                                                                                

4   is tolled until either of the following occurs:                             

                                                                                

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

                                                                                

6   until the date the requested information is received by the                 

                                                                                

7   department.                                                                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

11      (4) The determination of the completeness of an application                 

                                                                                

12  does not operate as an approval of the application for the                  

                                                                                

13  license and does not confer eligibility of an applicant                     

                                                                                

14  determined otherwise ineligible for issuance of a license.                  

                                                                                

15      (5) If the department fails to approve or reject an initial                 

                                                                                

16  or renewal license application within the time period required              

                                                                                

17  under this section, the department shall return the license fee             

                                                                                

18  and shall reduce the license fee for the applicant's next                   

                                                                                

19  licensure or renewal application, if any, by 15%.  Failure to               

                                                                                

20  issue or deny a license within the time period required under               

                                                                                

21  this section does not allow the department to otherwise delay               

                                                                                

22  processing an application.  The completed application shall be              

                                                                                

23  placed in sequence with other completed applications received at            

                                                                                

24  that same time.  The department shall not discriminate against an           

                                                                                

25  applicant in the processing of the application based upon the               

                                                                                

26  fact that the application fee was refunded or discounted under              

                                                                                

27  this subsection.                                                            


                                                                                

1       (6) Beginning October 1, 2005, the director of the                          

                                                                                

2   department shall submit a report by December 1 of each year to              

                                                                                

3   the standing committees and appropriations subcommittees of the             

                                                                                

4   senate and house of representatives concerned with public health            

                                                                                

5   issues.  The director shall include all of the following                    

                                                                                

6   information in the report concerning the preceding fiscal year:             

                                                                                

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

                                                                                

8   department received and completed within the 6-month time period            

                                                                                

9   required under subsection (1).                                              

                                                                                

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

                                                                                

11  additional information.                                                     

                                                                                

12      (c) The number of applications denied.                                      

                                                                                

13      (d) The average processing time for initial and renewal                     

                                                                                

14  licenses granted after the 6-month period.                                  

                                                                                

15      (e) The number of initial and renewal license applications                  

                                                                                

16  not issued within the 6-month period and the amount of money                

                                                                                

17  returned to applicants under subsection (5).                                

                                                                                

18      (7) As used in this section, "completed application" means                  

                                                                                

19  an application complete on its face and submitted with any                  

                                                                                

20  applicable licensing fees as well as any other information,                 

                                                                                

21  records, approval, security, or similar item required by law or             

                                                                                

22  rule from a local unit of government, a federal agency, or a                

                                                                                

23  private entity but not from another department or agency of this            

                                                                                

24  state.