SB-1079, As Passed House, December 8, 2004

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1079

                                                                             A bill to amend 1974 PA 258, entitled                                             

"Mental health code,"                                                       

by amending section 232a (MCL 330.1232a), as amended by 2002 PA             

597.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 232a.  (1) Subject to section 114a, the department                     

2   shall promulgate rules to establish standards for certification             

3   and the certification review process for community mental health            

4   services programs.  The standards shall include but not be                  

5   limited to all of the following:                                            

6       (a) Matters of governance, resource management, quality                     

7   improvement, service delivery, and safety management.                       

8       (b) Promotion and protection of recipient rights.                           

9       (2) After reviewing a community mental health services                      

10  program, the department shall notify a program that substantially           

1   complies with the standards established under this section that             

2   it is certified by the department.                                          

3       (3) The department may waive the certification review process               

4   in whole or in part and consider the community mental health                

5   services program to be in substantial compliance with the                   

6   standards established under this section if the program has                 

7   received accreditation from a national accrediting organization             

8   recognized by the department that includes review of matters                

9   described in subsection (1)(a).                                             

10      (4) If the department certifies a community mental health                   

11  services program despite some items of noncompliance with the               

12  standards established under this section, the notice of                     

13  certification shall identify the items of noncompliance and the             

14  program shall correct the items of noncompliance.  The department           

15  shall require the community mental health board to submit a plan            

16  to correct items of noncompliance before recertification or                 

17  sooner at the discretion of the department.                                 

18      (5) Certification is effective for 3 years and is not                       

19  transferable.  Requests for recertification shall be submitted to           

20  the department at least 6 months before the expiration of                   

21  certification.  Certification remains in effect after the                   

22  submission of a renewal request until the department conducts a             

23  review and makes a redetermination.                                         

24      (6) The department shall conduct an annual review of each                   

25  community mental health services program's recipient rights                 

26  system to ensure compliance with standards established under                

27  subsection (1)(b).  An on-site review shall be conducted once               

1   every 3 years.                                                              

2       (7) The community mental health services program shall                      

3   promptly notify the department of any changes that may affect               

4   continued certification.                                                    

5       (8) The department may deny certification if the community                  

6   mental health services program cannot demonstrate substantial               

7   compliance with the standards established under this section.               

8       (9) In lieu of denying certification, the department may                    

9   issue a provisional certification for a period of up to 6 months            

10  upon receiving a plan of correction submitted by the community              

11  mental health services board.  The department shall provide a               

12  copy of the review and the approved plan of correction to the               

13  board of commissioners of each county that established the county           

14  community mental health agency or created the community mental              

15  health organization or community mental health authority.  A                

16  provisional certification may be extended, but the entire                   

17  provisional period shall not exceed 1 year.  The department shall           

18  conduct an on-site review to determine the community mental                 

19  health services program's compliance with the plan of correction            

20  at least 30 days before the expiration of the provisional                   

21  certification.  A provisional certification automatically expires           

22  either on its original expiration date or the expiration date of            

23  the extension granted.                                                      

24      (10) If a community mental health services program is denied                

25  certification, fails to comply with an approved plan of                     

26  correction before the expiration of a provisional certification,            

27  or fails to comply substantially with the standards established             

1   under this section, the department shall notify the community               

2   mental health services board and the board of commissioners of              

3   each county that established the agency or created the                      

4   organization or authority of the department's intention to                  

5   suspend, deny, or revoke certification.  The notice shall be sent           

6   by certified mail and shall set forth the particular reasons for            

7   the proposed action and offer an opportunity for a hearing with             

8   the director of the department's division that manages contracts            

9   with community mental health services programs.  If it desires a            

10  hearing, the community mental health services board shall request           

11  it in writing within 60 days after receipt of the notice.  The              

12  department shall hold the hearing not less than 30 days or more             

13  than 60 days from the date it receives the request for a                    

14  hearing.                                                                    

15      (11) The director of the department's division that manages                 

16  contracts with community mental health services programs shall              

17  make a decision regarding suspension, denial, or revocation of              

18  certification based on evidence presented at the hearing or on              

19  the default of the community mental health services board.  A               

20  copy of the decision shall be sent by certified mail within 45              

21  days after the close of the hearing to the community mental                 

22  health services board and to the board of commissioners of each             

23  county that established the agency or created the organization or           

24  authority.                                                                  

25      (12) A community mental health services board may appeal a                  

26  decision made under subsection (11) as provided in chapter 4 of             

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

1   Public Acts of 1969, being sections 24.271 to 24.287 of the                 

2   Michigan Compiled Laws 1969 PA 306, MCL 24.271 to 24.287.                  

3       (13) During the period of certification, the department may                 

4   conduct an unannounced review of a certified community mental               

5   health services program.  The department shall conduct an                   

6   unannounced review of a certified community mental health                   

7   services program in response to information that raises questions           

8   regarding recipient health or safety.  If the department finds              

9   based on its review that the community mental health services               

10  program does not substantially comply with the standards                    

11  established under this section, the department shall provide                

12  notice and a hearing under subsections (10) and (11).                       

13      (14) If a community mental health services program fails to                 

14  obtain or retain certification as a result of the department's              

15  review, has exhausted the time period for provisional                       

16  certification, is not engaged in the process of appeal or appeal            

17  has been unsuccessful, and if no agreement has been reached by              

18  the department with the community mental health services program            

19  to assure certification compliance within a specified time                  

20  period, the department shall within 90 days do both of the                  

21  following:                                                                  

22      (a) Cancel the state funding commitment to the community                    

23  mental health services board.                                               

24      (b) Utilize the funds previously provided to the community                  

25  mental health services board to do 1 or more of the following:              

26                                                                               (i) Secure services from other providers of mental health                           

27  services that the department has determined can operate in                  

1   substantial compliance with the standards established under this            

2   section and continue the delivery of services within the county             

3   or counties.                                                                

4       (ii) Provide the service.                                                    

5       (15) If state funding is canceled under subsection (14) and                 

6   the community mental health services program is an authority                

7   created under section 205, the county or counties that created              

8   the authority are financially liable only for the local match               

9   formula established for the authority under chapter 3.  If state            

10  funding is canceled under subsection (14) and the community                 

11  mental health services program is a county community mental                 

12  health agency or a community mental health organization, the                

13  county or counties that established the agency are financially              

14  liable for local match for all services contractually or directly           

15  provided by the department to residents of the county or counties           

16  in accordance with chapter 3.                                               

17      (16) The department shall not utilize the certification                     

18  process under this section to require a community mental health             

19  services program to become a community mental health authority.             

20  Community Except as provided in section 204(4), community

21  mental health authority status is voluntary as provided in                  

22  section 205.                                                                

23  (17) Subject to section 114a, the department shall submit                   

24  proposed rules for certification to public hearing within 6                 

25  months after the effective date of the amendatory act that added            

26  this section.