HB-4831, As Passed House, June 9, 2005
SUBSTITUTE FOR
HOUSE BILL NO. 4831
[A bill to make, supplement, adjust, and consolidate
appropriations for various state departments and agencies, the
judicial branch, and the legislative branch for the fiscal year
ending September 30, 2006; to provide for certain conditions on
appropriations; and to provide for the expenditure of the
appropriations.]
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
ARTICLE 1
DEPARTMENT OF AGRICULTURE
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this article,
the amounts listed in this part are appropriated for the department
of agriculture for the fiscal year ending September 30, 2006, from
the funds indicated in this part. The following is a summary of the
appropriations in this part:
DEPARTMENT OF AGRICULTURE
APPROPRIATION SUMMARY:
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 694.0
GROSS APPROPRIATION.................................... $ 120,384,200
Interdepartmental grant revenues:
IDG from MDCH, local public health operations.......... 8,878,700
IDG from MDLEG (LCC), liquor quality testing fees...... 185,900
IDG from MDEQ, aquifer protection and dispute
resolution........................................... 50,000
IDG from MDEQ, biosolids............................... 87,300
IDG from MDEQ, MAEAP................................... 150,000
IDG from MDEQ, type II well survey..................... 16,300
IDG from MDNR, district forestry and wildlife program.. 1,000,000
Total interdepartmental grants and intradepartmental
transfers............................................ 10,368,200
ADJUSTED GROSS APPROPRIATION........................... $ 110,016,000
Federal revenues:
HHS-FDA................................................ 349,600
DAG, multiple grants................................... 29,795,800
EPA, multiple grants................................... 2,436,300
Total federal revenues................................. 32,581,700
Special revenue funds:
Total local revenues................................... 0
Private - slow-the-spread foundation................... 138,700
Total private revenues................................. 138,700
Agricultural pollution prevention fund................. 100
Agricultural preservation fund......................... 900,000
Agriculture equine industry development fund........... 17,390,500
Civil penalties........................................ 45,700
Commodity inspection fees.............................. 888,300
Gasoline inspection and testing fund................... 2,468,700
Groundwater and freshwater protection fund............. 4,936,800
Horticulture fund...................................... 74,700
Industry support funds................................. 534,500
Licensing and inspection fees.......................... 6,689,400
Refined petroleum fund................................. 3,191,100
Nonretail liquor fees.................................. 625,200
Pseudorabies and swine brucellosis fund................ 15,600
State services fee fund................................ 8,535,600
Testing fees........................................... 405,000
Upper Peninsula state fair revenue..................... 1,338,400
Weights and measures regulation fees................... 624,300
Total other state restricted revenues.................. 48,663,900
State general fund/general purpose..................... $ 28,631,700
Sec. 102. EXECUTIVE (HEALTH)
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........... 52.0
Commissions and boards................................. $ 47,300
Unclassified positions--6.0 FTE positions.............. 354,000
Executive direction--10.0 FTE positions................ 1,050,500
Human resource optimization user charges............... 29,500
Management services--35.5 FTE positions................ 2,997,300
Statistical reporting service--4.0 FTE positions....... 348,000
Emergency management--2.5 FTE positions................ 226,200
GROSS APPROPRIATION.................................... $ 5,052,800
Appropriated from:
Special revenue funds:
Gasoline inspection and testing fund................... 55,000
Industry support funds................................. 30,000
Nonretail liquor fees.................................. 8,800
Refined petroleum fund................................. 221,500
State services fee fund................................ 561,300
Upper Peninsula state fair revenue..................... 9,000
State general fund/general purpose..................... $ 4,167,200
Sec. 103. DEPARTMENTWIDE (HEALTH)
Rent and building occupancy charges.................... $ 1,463,400
GROSS APPROPRIATION.................................... $ 1,463,400
Appropriated from:
Federal revenues:
DAG, multiple grants................................... 100,500
EPA, multiple grants................................... 61,200
HHS-FDA................................................ 13,100
Special revenue funds:
Agricultural preservation fund......................... 23,900
Groundwater and freshwater protection fund............. 9,500
Licensing and inspection fees.......................... 59,700
Nonretail liquor fees.................................. 7,900
Refined petroleum fund................................. 114,000
State services fee fund................................ 304,600
State general fund/general purpose..................... $ 769,000
Sec. 104. FOOD AND DAIRY (HEALTH)
Full-time equated classified positions.......... 107.0
Food safety and quality assurance--107.0 FTE positions. $ 10,873,700
Local public health operations......................... 8,878,700
GROSS APPROPRIATION.................................... $ 19,752,400
Appropriated from:
Interdepartmental grant revenues:
IDG from MDCH, local public health operations.......... 8,878,700
Federal revenues:
DAG, multiple grants................................... 24,800
HHS-FDA................................................ 203,700
Special revenue funds:
Civil penalties........................................ 45,700
Licensing and inspection fees.......................... 3,187,900
State general fund/general purpose..................... $ 7,411,600
Sec. 105. ANIMAL INDUSTRY (HEALTH)
Full-time equated classified positions........... 52.0
Animal health and welfare--25.5 FTE positions.......... $ 2,407,900
Bovine tuberculosis program--26.5 FTE positions........ 5,747,900
GROSS APPROPRIATION.................................... $ 8,155,800
Appropriated from:
Federal revenues:
DAG, multiple grants................................... 1,251,000
HHS-FDA................................................ 68,800
Special revenue funds:
Agriculture equine industry development fund........... 2,804,300
Licensing and inspection fees.......................... 102,000
Pseudorabies and swine brucellosis fund................ 15,600
State general fund/general purpose..................... $ 3,914,100
Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT
(HEALTH)
Full-time equated classified positions.......... 231.8
Pesticide and plant pest management--119.8 FTE
positions............................................ $ 12,704,600
Emerald ash borer control program--112.0 FTE positions. 23,660,600
Michigan State University.............................. 210,000
GROSS APPROPRIATION.................................... $ 36,575,200
Appropriated from:
Federal revenues:
DAG, multiple grants................................... 25,809,100
EPA, multiple grants................................... 1,610,600
HHS-FDA................................................ 64,000
Special revenue funds:
Private - slow-the-spread foundation................... 138,700
Commodity inspection fees.............................. 888,300
Horticulture fund...................................... 74,700
Industry support funds................................. 319,900
Licensing and inspection fees.......................... 3,220,500
State general fund/general purpose..................... $ 4,449,400
Sec. 107. ENVIRONMENTAL STEWARDSHIP (RESOURCE
CONSERVATION)
Full-time equated classified positions........... 47.0
Environmental stewardship--32.7 FTE positions.......... $ 2,704,500
Groundwater and freshwater protection program--8.3 FTE
positions............................................ 5,026,600
Farmland and open space preservation--6.0 FTE
positions............................................ 902,500
Agriculture pollution prevention program............... 400,100
Cooperative resources management initiative program.... 1,000,000
Local conservation districts........................... 1,516,800
Rural partners of Michigan............................. 25,000
Migrant labor housing.................................. 100
Aquifer protection program............................. 50,000
GROSS APPROPRIATION.................................... $ 11,625,600
Appropriated from:
Interdepartmental grant revenues:
IDG from MDEQ, aquifer protection and dispute
resolution........................................... 50,000
IDG from MDEQ, biosolids............................... 87,300
IDG from MDEQ, type II well survey..................... 16,300
IDG from MDNR, district forestry and wildlife program.. 1,000,000
IDG from MDEQ, right to farm........................... 150,000
Federal revenues:
DAG, multiple grants................................... 400,000
EPA, multiple grants................................... 424,500
Special revenue funds:
Agricultural pollution prevention fund................. 100
Agricultural preservation fund......................... 875,900
Agriculture equine industry development fund........... 25,000
Groundwater and freshwater protection fund............. 4,927,200
State general fund/general purpose..................... $ 3,669,300
Sec. 108. LABORATORY PROGRAM (HEALTH)
Full-time equated classified positions.......... 148.0
Laboratory services--60.5 FTE positions................ $ 5,438,000
USDA monitoring--18.0 FTE positions.................... 1,990,000
Consumer protection program--69.5 FTE positions........ 4,883,800
GROSS APPROPRIATION.................................... $ 12,311,800
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLEG (LCC), liquor quality testing fees...... 183,100
Federal revenues:
DAG, multiple programs................................. 2,011,400
EPA, multiple programs................................. 340,000
Special revenue funds:
Gasoline inspection and testing fund................... 2,386,700
Refined petroleum fund................................. 2,855,600
State services fee fund................................ 503,200
Testing fees........................................... 405,000
Weights and measures regulation fees................... 624,300
State general fund/general purpose..................... $ 3,002,500
Sec. 109. AGRICULTURE DEVELOPMENT (THRIVING
ECONOMY)
Full-time equated classified positions............ 8.0
Agriculture development--5.0 FTE positions............. $ 873,300
Grape and wine program--3.0 FTE positions.............. 662,600
Export market development program...................... 50,000
Michigan agricultural surplus system................... 630,500
FFA/Michigan 4-H foundation............................ 100,000
GROSS APPROPRIATION.................................... $ 2,316,400
Appropriated from:
Federal revenues:
DAG, multiple grants................................... 199,000
Special revenue funds:
Agriculture equine industry development fund........... 100,000
Industry support funds................................. 154,600
Nonretail liquor fees.................................. 608,000
State services fee fund................................ 350,700
State general fund/general purpose..................... $ 904,100
Sec. 110. FAIRS AND EXPOSITIONS (THRIVING ECONOMY)
Full-time equated classified positions........... 16.5
Upper Peninsula state fair--7.0 FTE positions.......... $ 1,328,500
Fairs, racing and producer security--9.5 FTE positions. 1,057,400
Building and track improvement - county and state
fairs................................................ 963,200
Distribution of outstanding winning tickets............ 500,000
Licensed tracks - light horse racing................... 118,600
Premiums - county and state fairs...................... 1,614,000
Purses and supplements - fairs/licensed tracks......... 4,020,800
Quarterhorse programs.................................. 61,400
Standardbred breeders' awards.......................... 1,908,900
Standardbred purses and supplements - licensed tracks.. 427,600
Standardbred sire stakes............................... 1,599,300
Standardbred training and stabling..................... 67,600
Thoroughbred owners' awards............................ 240,700
Thoroughbred program................................... 2,798,900
Thoroughbred sire stakes............................... 1,599,300
GROSS APPROPRIATION.................................... $ 18,306,200
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund........... 14,306,300
Industry support funds................................. 30,000
Licensing and inspection fees.......................... 119,300
State services fee fund................................ 2,522,100
Upper Peninsula state fair revenue..................... 1,328,500
State general fund/general purpose..................... $ 0
Sec. 111. OFFICE OF RACING COMMISSIONER (THRIVING
ECONOMY)
Full-time equated classified positions........... 31.7
Office of racing commissioner--31.7 FTE positions...... $ 3,296,400
GROSS APPROPRIATION.................................... $ 3,296,400
Appropriated from:
Special revenue funds:
State services fee fund................................ 3,296,400
State general fund/general purpose..................... $ 0
Sec. 112. INFORMATION AND TECHNOLOGY (HEALTH)
Information technology services and projects........... $ 1,528,200
GROSS APPROPRIATION.................................... $ 1,528,200
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLEG (LCC), liquor quality testing fees...... 2,800
Special revenue funds:
Groundwater and freshwater protection fund............. 100
Agriculture equine industry development fund........... 154,900
Agricultural preservation fund......................... 200
State services fee fund................................ 997,300
Upper Peninsula state fair revenue..................... 900
Gasoline inspection testing fund....................... 27,000
Nonretail liquor fees.................................. 500
State general fund/general purpose..................... $ 344,500
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2005-2006 is $77,295,600.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2005-2006 is $3,316,800.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF AGRICULTURE
Groundwater and freshwater protection program.......... $ 1,800,000
Local conservation districts........................... 1,516,800
TOTAL.................................................. $ 3,316,800
Sec. 202. The appropriations authorized under this article are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this article:
(a) "DAG" means the United States department of agriculture.
(b) "Department" means the department of agriculture.
(c) "Director" means the director of the department.
(d) "EPA" means the United States environmental protection
agency.
(e) "FTE" means full-time equated.
(f) "HHS-FDA" means the United States department of health and
human services - food and drug administration.
(g) "IDG" means interdepartmental grant.
(h) "MAEAP" means the Michigan agriculture environmental
assurance program.
(i) "MDCH" means the Michigan department of community health.
(j) "MDLEG (LCC)" means the Michigan department of labor and
economic growth - liquor control commission.
(k) "MDEQ" means the Michigan department of environmental
quality.
(l) "MDNR" means the Michigan department of natural resources.
Sec. 204. The department of civil service shall bill
departments and agencies at the end of the first fiscal quarter for
the 1% charge authorized by section 5 of article XI of the state
constitution of 1963. Payments shall be made for the total amount
of the billing by the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on the state
classified civil service. State departments and agencies are
prohibited from hiring any new classified civil service employees
and prohibited from filling any vacant state classified civil
service positions. This hiring freeze does not apply to internal
transfers of classified employees from 1 position to another within
a department.
(2) The hiring freeze described in subsection (1) does not
apply to any classified state civil service position that meets any
of the following criteria:
(a) Filling the vacant position will directly prevent the loss
of federal funding.
(b) The vacant position deals directly with the direct
provision of public safety services including prison officers, law
enforcement officers, and child services enforcement workers.
(c) The vacant position provides direct health care services
including physicians, nurses, and other direct health care
providers.
(3) The state budget director shall report quarterly to the
chairpersons of the senate and house of representatives standing
committees on appropriations the number of new state classified
civil service employees hired during the previous quarter and the
reasons to justify the hiring.
Sec. 208. Unless otherwise specified, the department shall use
the Internet to fulfill the reporting requirements of this article.
This shall include transmission of reports via electronic mail to
the recipients identified for each reporting requirement and shall
include placement of reports on an Internet or Intranet site.
Sec. 209. (1) Funds appropriated in part 1 shall not be used
House Bill No. 4831 (H-1) as amended June 9, 2005
for the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods or
services, or both, are available.
(2) In addition to the requirements in subsection (1), the
purchase of goods or services, or both, if competitively priced and
of comparable quality shall be Michigan goods or services, or both,
if available. The department shall also encourage the use of
Michigan produced agricultural products by all state agencies and
departments if competitively priced and of comparable quality and
if available.
[Sec. 210. The director of each department receiving
opriations in part 1 shall take all reasonable steps to ensure
nesses in deprived and depressed communities compete for and
orm contracts to provide services or supplies, or both. Each
tor shall strongly encourage firms with which the department
racts to subcontract with certified businesses in depressed and
ived communities for services, supplies, or both.]
Sec. 211. (1) The unexpended and unobligated balance of any
state restricted fund or account remaining at the end of the fiscal
year shall revert back to the state restricted fund or account from
which appropriated and be available for appropriation for the next
fiscal year. Appropriations that revert to a state restricted fund
or account pursuant to this section shall not revert to the general
fund of this state.
(2) A state restricted revenue fund or account that receives
revenues in excess of expenditures made from that state restricted
revenue fund or account shall not have the excess revenue revert to
the general fund of this state.
Sec. 212. (1) Of the funds appropriated in part 1, the
department may provide for indemnity as provided for pursuant to
the animal industry act of 1987, 1988 PA 466, MCL 287.701 to
287.745, not to exceed $100,000.00 per order from any line item for
the fiscal year ending September 30, 2006. Before the department
provides for an indemnification under this section, the department
shall report the reason for the indemnification, the amount of the
indemnification, and to whom the indemnification is to be paid. The
report shall be given to each member of the house and senate
appropriations subcommittees on agriculture and to the senate and
house fiscal agencies and the state budget director.
(2) The department of agriculture shall make an
indemnification payment for the fair market value of livestock
killed by a wolf or coyote, if the kill is verified by the
department of natural resources. The fair market value of the
livestock shall be determined pursuant to the indemnification
procedures prescribed in the animal industry act, 1988 PA 466, MCL
287.701 to 287.745. In addition to the funds appropriated in part
1, the department of agriculture is authorized to expend the funds
received from the department of natural resources to reimburse the
department of agriculture for all indemnification payments made
pursuant to this subsection.
Sec. 214. Of the funds appropriated in part 1 that are other
than line-item grants, the department shall not provide grants to
local government agencies, institutions of higher education, or
nonprofit organizations unless the department provides notice of
the grant to the house and senate appropriations subcommittees on
agriculture at least 10 days before the grant is issued. The grants
shall be used to support research or other related activities for
the purpose of enhancing the agricultural industries in this state.
Sec. 216. The unexpended and unencumbered balance of revenue
deposited pursuant to section 20 of the horse racing law of 1995,
1995 PA 279, MCL 431.320, for the fiscal year ending September 30,
2006, shall be appropriated to the Michigan agriculture equine
industry development fund for distribution as set forth in section
20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.
Sec. 219. The department of information technology shall
annually publish a schedule of rates, user fees, and charges or
assessments for standard services and information system support
requirements to be made to departments for technology-related
services and projects. This schedule, as well as copies of related
interagency agreements, shall be provided to the state budget
office and the house and senate committees on appropriations before
October 15, 2005. The department of agriculture shall not process
any payments or fund transfers to the department of information
technology until 30 days after the 2005-2006 fiscal year schedule
of rates, user fees, and assessments is provided to the
legislature, pursuant to this section.
Sec. 220. Amounts appropriated in part 1 for information
technology may be designated as work projects and carried forward
to support technology projects under the direction of the
department of information technology. Funds designated in this
manner are not available for expenditure until approved as work
projects under section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a.
Sec. 221. From the funds appropriated in part 1 for
information technology, departments and agencies shall pay user
fees to the department of information technology for technology-
related services and projects not to exceed the appropriation in
section 112 of part 1. The user fees shall be subject to provisions
of an interagency agreement between the departments and agencies
and the department of information technology.
Sec. 223. (1) Due to the current budgetary problems in this
state, out-of-state travel for the fiscal year ending September 30,
2006 shall be limited to situations in which 1 or more of the
following conditions apply:
(a) The travel is required by legal mandate or court order or
for law enforcement purposes.
(b) The travel is necessary to protect the health or safety of
Michigan citizens or visitors or to assist other states in similar
circumstances.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, including protecting existing federal
funds or securing additional federal funds.
(d) The travel is necessary to comply with federal
requirements.
(e) The travel is necessary to secure specialized training for
staff that is not available within this state.
(f) The travel is financed entirely by federal or nonstate
funds.
(2) If out-of-state travel is necessary but does not meet 1 or
more of the conditions in subsection (1), the state budget director
may grant an exception to allow the travel. Any exceptions granted
by the state budget director shall be reported on a monthly basis
to the house and senate appropriations committees.
(3) Not later than January 1 of each year, each department
shall prepare a travel report listing all travel by classified and
unclassified employees outside this state in the immediately
preceding fiscal year that was funded in whole or in part with
funds appropriated in the department's budget. The report shall be
submitted to the chairs and members of the house and senate
appropriations committees, the fiscal agencies, and the state
budget director. The report shall include the following
information:
(a) The name of each person receiving reimbursement for travel
outside this state or whose travel costs were paid by this state.
(b) The destination of each travel occurrence.
(c) The dates of each travel occurrence.
(d) A brief statement of the reason for each travel
occurrence.
(e) The transportation and related costs of each travel
occurrence, including the proportion funded with state general
fund/general purpose revenues, the proportion funded with state
restricted revenues, the proportion funded with federal revenues,
and the proportion funded with other revenues.
(f) A total of all out-of-state travel funded for the
immediately preceding fiscal year.
EXECUTIVE
Sec. 301. Per diem rates for commodity committees established
in the agriculture commodities marketing act, 1965 PA 232, MCL
290.651 to 290.674, 1970 PA 29, MCL 290.421 to 290.430, 1965 PA
114, MCL 290.551 to 290.568, and the beef industry commission act,
1972 PA 291, MCL 287.601 to 287.610, will be set based upon levels
established in section 301 of 2002 PA 516.
Sec. 302. (1) The department may receive and expend revenue
and use that revenue to cover necessary expenses related to
publications, audit and licensing functions, livestock sales,
certification of nursery stock, bean inspection services, and
laboratory analyses as specified in the following:
(a) Management services publications.
(b) Management services audit and licensing functions.
(c) Pesticide and plant pest management propagation and
certification of virus free foundation stock.
(d) Pesticide and plant pest management bean inspection and
grading services.
(e) Laboratory support testing for testing horses in draft
horse pulling contests at county fairs when local jurisdictions
request state assistance.
(f) Laboratory support analyses to determine foreign
substances in horses engaged in racing or pulling contests at
tracks.
(g) Laboratory support analysis of food, livestock, and
agricultural products for disease, foreign products for disease,
toxic materials, foreign substances, and quality standards.
(h) Laboratory support test samples for other agencies and
organizations.
(i) Fruit and vegetable inspection at shipping and termination
points and processing plants.
(2) The department shall notify the senate and house of
representatives appropriations subcommittees on agriculture and the
senate and house fiscal agencies 60 days prior to the effective
date of any proposed changes to the fees authorized under this
section.
(3) Annually, before February 1, the department shall provide
a report to the senate and house of representatives appropriations
subcommittees on agriculture and the senate and house fiscal
agencies detailing all the fees charged by the department under the
authorization provided in this section, including, but not limited
to, rates, number of individuals paying each fee, and the revenue
generated by each fee in the previous fiscal year.
Sec. 303. Of the funds appropriated in part 1 for statistical
reporting service, $90,000.00 shall be used for surveys including,
but not limited to, fruit, vegetables, and nursery stock including
Christmas trees and ornamental plants. The director may include
other agricultural surveys such as turfgrass in the 3- to 5-year
rotation. The survey shall include information such as existing
plantings/acreage, new plantings/acreage, production, and number of
growers.
Sec. 304. From the funds appropriated in part 1, section 108,
not less than $3,800,000.00 shall be used for the motor fuel
quality inspection program to ensure motor fuel quality and the
accuracy of fuel pumps at Michigan service stations.
Notwithstanding the provisions of section 205, the department shall
hire additional field and laboratory staff for the motor fuel
quality inspection program.
FOOD AND DAIRY
Sec. 401. (1) The department shall monitor restaurant
inspection and licensing functions carried out by local health
departments to ensure uniform application and enforcement of
minimum program requirements. On or before April 1, 2006, the
department shall report to the senate and house appropriations
subcommittees on agriculture, the senate and house fiscal agencies,
and the state budget director on local health department
conformance with minimum program requirements.
(2) If a local unit of government incurs additional costs
resulting from its efforts to control a significant food-borne
outbreak, the director shall seek additional resources to reimburse
the local unit of government for these additional costs. The
director shall involve the local health officer of the jurisdiction
affected in all aspects of the control of any food-borne outbreak.
Sec. 402. Not later than April 1, 2006, the department shall
provide a report to the house and senate appropriations
subcommittees on agriculture and the house and senate fiscal
agencies describing significant food-borne outbreaks and
emergencies including any enforcement actions taken related to food
safety during the 2004-2005 fiscal year.
Sec. 403. The department, in conjunction with the department
of community health, shall assure that a process is in place that
requires a local unit of government to obtain prior approval from
the department before any reallocation or redistribution of program
funds appropriated in section 104.
ANIMAL INDUSTRY
Sec. 450. From the funds appropriated in section 105 for the
bovine tuberculosis program, the department shall reimburse the
department of natural resources for those costs associated with
monitoring and testing wildlife for bovine tuberculosis that are
necessary to support the department goals and are jointly agreed to
by the department and the department of natural resources to be in
excess of efforts necessary to effectively plan and execute the
eradication of bovine tuberculosis from Michigan's wild free-
ranging deer herd.
Sec. 451. From the funds appropriated in section 105 for
bovine tuberculosis, the department shall pay for all whole herd
testing costs and individual animal testing costs in the modified
accredited zone to maintain split-state status requirements. These
costs include indemnity and compensation for injury causing death
or downer to animals.
Sec. 452. In the event of a significant animal or plant health
outbreak, the director shall seek additional state and federal
resources to cover the additional costs associated with addressing
the outbreak.
PESTICIDE AND PLANT PEST MANAGEMENT
Sec. 501. Of the funds appropriated in section 106 to the
pesticide and plant pest management division, up to $100,000.00 may
be made available to the Michigan cooperative extension service to
train applicators. Reimbursement shall be based on actual
expenditures and revenue availability.
ENVIRONMENTAL STEWARDSHIP
Sec. 603. The department shall apply for all federal funds for
which it is eligible that can be used to support the migrant labor
housing program.
Sec. 604. The appropriation in section 107 for local
conservation districts shall be allocated in the following manner:
(a) Of the total appropriation, each local conservation
district meeting the minimum grant requirements shall receive a
grant of $19,200.00 to support basic operations, unless the
district resides in a county consisting of multiple districts, in
which case a $19,200.00 grant shall be divided equally among the
districts in that county. The amount of money allocated under this
subdivision shall not be used by local conservation districts to
replace any money received from local sources.
(b) Any amount remaining from the appropriation after
distributions under subdivision (a) shall be allocated for local
conservation district training.
Sec. 605. The appropriation in part 1, section 107, for Rural
Partners of Michigan shall be used to support projects and programs
of the Rural Partners of Michigan, a nonprofit Michigan
corporation.
AGRICULTURE DEVELOPMENT
Sec. 701. Within the appropriations in part 1 for agriculture
development, $662,600.00 is for the grape and wine industry
council, from which the department may provide grants for the
purposes as described in section 303 of the Michigan liquor control
code of 1998, 1998 PA 58, MCL 436.1303.
Sec. 702. In any given year when insufficient amounts of
Michigan surplus products are offered to the food bank council and
accepted for distribution, unused funds may be applied by the food
bank council for the direct purchase of foods from Michigan
growers, manufacturers, or wholesalers.
Sec. 704. Indirect costs may not be charged against the FFA
grant in section 109 by any administering agency.
Sec. 705. The appropriation in section 109 for the export
market development program shall be used to coordinate state
participation in the federal market access program and to leverage
federal funds for the purpose of developing new and enhancing
existing export markets for Michigan agricultural products.
Sec. 706. From the appropriation in part 1 for agriculture
development, $30,000.00 shall be provided to the northwest Michigan
horticultural research station.
Sec. 707. Of the funds appropriated in part 1, section 109 for
FFA/Michigan 4-H, $80,000.00 shall be distributed to the FFA
foundation for awards and leadership activities which encourage
farming and agriculture as a career and $20,000.00 shall be
distributed to the Michigan 4-H foundation to support Michigan 4-H
foundation projects and programs.
FAIRS AND EXPOSITIONS
Sec. 801. The department shall submit a report each quarter to
the state budget director, the senate and house appropriations
subcommittees on agriculture, and the senate and house fiscal
agencies that states the simulcasting revenues generated in the
preceding month by each licensed track and the amount received from
license fees.
Sec. 802. (1) The appropriation in section 110 for
standardbred purses and supplements - licensed tracks is intended
to provide state purse supplements for 4 races at state licensed
pari-mutuel horse racing tracks. The purse supplements are to be
used for races comprised only of Michigan-bred horses segregated
into a 4-year-old colt trot division, a 4-year-old filly trot
division, a 4-year-old colt pace division, and a 4-year-old filly
pace division.
(2) The appropriation in section 110 for licensed tracks -
light horse racing shall be allocated as follows:
Arabian and Appaloosa horse racing..................... $ 29,700
Quarter horse racing................................... 88,900
Sec. 803. Included in the appropriation made in section 110
for the thoroughbred program is $30,500.00 for the Michigan united
thoroughbred breeders and owners association to conduct a
thoroughbred yearling show. The Michigan united thoroughbred
breeders and owners association shall submit to the department an
itemized list of expenses showing that the expenses of the yearling
show were paid.
Sec. 804. From the funds appropriated in section 110 for
thoroughbred owners' awards, awards shall be distributed pursuant
to section 20 of the horse racing law of 1995, 1995 PA 279, MCL
431.320.
Sec. 805. The department shall notify the senate and house
appropriations subcommittees and the fiscal agencies of any planned
reductions in appropriations, allocations, or expenditures from the
agriculture equine industry development fund no less than 10 days
before such reductions are implemented.
Sec. 806. A county fair, district fair, 4-H fair, or state
fair receiving funds in section 110 to be used for prizes or
awards, in whole or in part, as a condition precedent to the
receiving of the funds for those purposes, shall publish the rules
relative to the prizes, awards, and deadlines for entries eligible
for the funds in their official premium books or lists relative to
the prizes or awards. An aggrieved exhibitor may make a written
complaint to the fair within 10 days after the fair ends. If the
fair has not satisfactorily settled the grievance within 45 days
after it is submitted to the fair, the aggrieved person may file
the complaint with the department and the department shall
investigate the complaint and make a finding of fact regarding the
complaint and take appropriate action regarding the complaint.
Sec. 807. Of the amount appropriated in section 110 for purses
and supplements - fairs/licensed tracks, a sufficient amount is
appropriated to provide for overnight purse supplements pursuant to
the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.
Sec. 808. Of the amount appropriated in section 110 for
premiums - county and state fairs, $91,400.00 shall be expended to
reimburse up to 75% of premiums paid to large livestock and equine
exhibitors in shows or exhibitions held by statewide associations
as defined by the department. Livestock expositions shall be
limited to participation in this program and prohibited from
participation in any state-funded premium programs. The Michigan
horse show association fall youth show shall be included.
Sec. 809. From the appropriations for premiums - county and
state fairs in section 110, $40,000.00 shall be awarded through a
competitive grant program to local, regional, or state fairs or
youth education programs to promote youth involvement and adult
exhibitions in the animal agriculture industry.
Sec. 811. The funds appropriated in section 110 for
distribution of outstanding winning tickets are not available for
expenditure until they are deposited in the Michigan agriculture
equine industry development fund pursuant to section 2 of 1951 PA
90, MCL 431.252. These funds shall be expended in accordance with
section 2 of 1951 PA 90, MCL 431.252. The department shall provide
notice to the house and senate appropriations subcommittees on
agriculture and the state budget director at least 10 days before
the funds are expended. This notice shall include the amount that
each program receives from the outstanding winning ticket revenue
deposited in the Michigan agriculture equine industry development
fund.
Sec. 813. (1) On or before March 29, 2006, the department,
together with the senate and house fiscal agencies and the
department of management and budget, shall estimate the unreserved
and unencumbered closing balance of the Michigan agriculture equine
industry development fund for the fiscal year ending September 30,
2005. The estimate shall consider lapsed appropriations from the
fund and any carryforward amounts designated for appropriation in
the fiscal year ending September 30, 2005.
(2) On or before April 5, 2006, the department shall request a
legislative transfer in accordance with section 393 of the
management and budget act, 1984 PA 431, MCL 18.1393, to appropriate
any estimated unreserved and unencumbered Michigan agriculture
equine industry development fund balance in excess of $250,000.00.
The appropriations included in the transfer request shall be in
accordance with the requirements of section 20 of the horse racing
law of 1995, 1995 PA 279, MCL 431.320. At the same time the
department forwards its transfer request to the department of
management and budget, the department shall submit copies of the
transfer request to the senate and house appropriations
subcommittees on agriculture and the senate and house fiscal
agencies.
Sec. 816. From the appropriation in section 110 for fairs,
racing and producer security, $20,000.00 shall be granted to the
communications alliance to network thoroughbred ex-racehorses
(CANTER) to support racehorse rehabilitation programs.
OFFICE OF RACING COMMISSIONER
Sec. 901. The racing commissioner may pay rewards of not more
than $5,800.00 to a person who provides information that results in
the arrest and conviction on a felony or misdemeanor charge for a
crime that involves the horse racing industry. A reward paid
pursuant to this section shall be paid out of the office of racing
commissioner line item.
ARTICLE 2
COMMUNITY COLLEGES
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this article,
the amounts listed in this part are appropriated for community
colleges and certain other state purposes relating to education for
the fiscal year ending September 30, 2006, from the funds indicated
in this part. The following is a summary of the appropriations in
this part:
COMMUNITY COLLEGES
APPROPRIATION SUMMARY:
GROSS APPROPRIATION.................................... $ 281,327,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 281,327,400
Total federal revenues................................. 0
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 281,327,400
Sec. 102. OPERATIONS (PREPARED FOR JOBS)
Alpena Community College............................... $ 4,777,100
Bay de Noc Community College........................... 4,618,500
Delta College.......................................... 12,917,100
Glen Oaks Community College............................ 2,167,100
Gogebic Community College.............................. 3,951,500
Grand Rapids Community College......................... 16,247,500
Henry Ford Community College........................... 19,800,700
Jackson Community College.............................. 10,960,800
Kalamazoo Valley Community College..................... 11,183,600
Kellogg Community College.............................. 8,786,700
Kirtland Community College............................. 2,666,800
Lake Michigan College.................................. 4,728,900
Lansing Community College.............................. 28,097,100
Macomb Community College............................... 29,978,600
Mid Michigan Community College......................... 3,999,100
Monroe County Community College........................ 3,890,800
Montcalm Community College............................. 2,814,300
C.S. Mott Community College............................ 14,205,400
Muskegon Community College............................. 8,083,900
North Central Michigan College......................... 2,738,100
Northwestern Michigan College.......................... 8,248,900
Oakland Community College.............................. 18,910,900
St. Clair County Community College..................... 6,334,300
Schoolcraft College.................................... 11,098,900
Southwestern Michigan College.......................... 5,958,000
Washtenaw Community College............................ 11,280,600
Wayne County Community College......................... 14,582,200
West Shore Community College........................... 2,077,300
GROSS APPROPRIATION.................................... $ 275,104,700
Appropriated from:
State general fund/general purpose..................... $ 275,104,700
Sec. 103. GRANTS (PREPARED FOR JOBS)
At-risk student success program........................ $ 3,322,700
Renaissance zone tax reimbursement funding............. 2,900,000
GROSS APPROPRIATION.................................... $ 6,222,700
Appropriated from:
State general fund/general purpose..................... $ 6,222,700
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2005-2006 is $281,327,400.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2005-2006 is $281,327,400.00. The
itemized statement below identifies appropriations from which
spending to local units of government will occur:
Operations............................................. $ 275,104,700
At-risk student success program........................ 3,322,700
Renaissance zone tax reimbursement program............. 2,900,000
TOTAL.................................................. $ 281,327,400
Sec. 202. The appropriations authorized under this article are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. Unless otherwise specified, a community college
receiving appropriations in part 1 and the department of labor and
economic growth shall use the Internet to fulfill the reporting
requirements of this article. This requirement may include
transmission of reports via electronic mail to the recipients
identified for each reporting requirement or it may include
placement of reports on an Internet or Intranet site.
Sec. 208. The department of labor and economic growth shall
work collaboratively with community colleges to develop an
accelerated entrepreneurship curriculum, including an associate
degree, to provide students with the skills and knowledge needed
for creating their own businesses. The department shall annually
submit a report on the results of its work with the community
colleges under this section to the house and senate appropriations
subcommittees on community colleges, the house and senate fiscal
agencies, and the state budget director.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and comparable quality American goods or
services, or both, are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
House Bill No. 4831 (H-1) as amended June 9, 2005
quality.
[Sec. 210. The principal executive officer of each community
ege receiving appropriations in part 1 shall take all
onable steps to ensure businesses in deprived and depressed
unities compete for and perform contracts to provide services
, or both. Each principal executive officer shall
ngly encourage firms with which the community college contracts
with certified businesses in depressed and deprived
nities for services or supplies, or both. ]
Sec. 211. (1) The money appropriated in this article is
appropriated for community colleges with fiscal years ending June
30, 2006, and shall be paid out of the state treasury and
distributed by the state treasurer to the respective community
colleges in 11 monthly installments on the sixteenth of each month,
or the next succeeding business day, beginning with October 16,
2005. Each community college shall accrue its July and August 2006
payments to its institutional fiscal year ending June 30, 2006.
However, if a community college fails to submit all verified
Michigan community colleges activities classification structure
data for school year 2004-2005 to the department of labor and
economic growth by November 1, 2005, the monthly installments shall
be withheld from that community college until those data are
submitted. The amount from the money appropriated in part 1 that is
allocated to address the special needs of at-risk students shall be
paid in full by the state treasurer by November 1, 2005. The amount
distributed to a community college or department shall not exceed
the net state allocation authorized by this article.
(2) Except as otherwise provided by law, each of the amounts
appropriated shall be used solely for the respective purposes
stated in this article. The money appropriated by this article may
be used to match the cost of any available programs under the Carl
D. Perkins vocational and applied technology education act, 20 USC
2301 to 2415, including local administration.
Sec. 216. (1) A community college shall pay the employer's
contributions to the Michigan public school employees' retirement
system created by the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of
receiving money appropriated under this article.
(2) A community college shall not pay an employer's
contribution to more than 1 retirement fund providing benefits for
an employee.
Sec. 217. Money appropriated in part 1 shall not be used to
pay for the construction or maintenance of a self-liquidating
project. Any construction, renovation, or other capital outlay
project that exceeds $1,000,000.00 requires the approval of a use
and finance statement by the joint capital outlay subcommittee
(JCOS) pursuant to JCOS policy.
Sec. 220. It is the intent of the legislature that the
legislature restore the infrastructure, technology, equipment, and
maintenance (ITEM) funding provided in previous fiscal years. In
addition, it is the intent of the legislature that the legislature,
in cooperation with the Michigan community college association,
develop proposals and financing alternatives for special
maintenance projects at community colleges that otherwise would not
qualify for financing under the state building authority.
Sec. 224. Recognizing the critical importance of education in
strengthening Michigan's workforce, the legislature encourages the
state's public community colleges to explore ways of increasing
collaboration and cooperation with 4-year universities,
particularly in the areas related to training, instruction, and
program articulation.
Sec. 230. (1) A community college shall not expend money
appropriated under this article to provide health care coverage for
community college employees or their dependents for abortion
services, other than for spontaneous abortion or to prevent the
death of the woman upon whom the abortion is performed. A community
college shall not approve a collective bargaining agreement or
enter into any other employment contract that includes health care
coverage for abortion services other than spontaneous abortion or
to prevent the death of the woman upon whom the abortion is
performed.
(2) If a community college expends money appropriated under
this article in violation of subsection (1), the community college
shall repay to this state an amount equal to the amount of money
spent in violation of subsection (1).
Sec. 231. In light of sections 1, 3, and 4 of 1846 RS 83, MCL
551.1, 551.3, and 551.4, and section 1 of 1939 PA 168, MCL 551.271,
the legislature intends that a community college receiving funding
under this article shall not use part 1 money to extend employee
benefits to the unmarried partners of the community college's
employees except for pre- and post-natal costs.
Sec. 234. Community colleges shall do the following:
(a) Undertake active measures to promote equal opportunities,
eliminate discrimination, and foster a diverse student body and
administration among all people including, but not limited to,
women, minorities, seniors, veterans, and people with disabilities.
(b) Review, analyze, and eradicate activities that may tend to
discriminate.
Sec. 235. It is the intent of the legislature that a workgroup
be formed to evaluate, discuss, and make recommendations for future
action regarding state university admission and enrollment policies
that specifically address the acceptance and application of college
credits earned by students through the postsecondary enrollment
options act, 1996 PA 160, MCL 388.511 to 388.524. The Michigan
community college association may create and administer the
workgroup and is encouraged to include members representing
university and K-12 school organizations. The workgroup shall
submit a report containing its findings and recommendations to the
house and senate appropriations subcommittees on community
colleges, the house and senate fiscal agencies, and the state
budget director by March 1, 2006.
Sec. 236. (1) It is the intent of the legislature that any
existing or new reciprocal tuition agreements entered into under
1972 PA 251, MCL 390.501 to 390.506, be submitted for review and
approval by the house and senate appropriations committees at least
once every 3 years.
(2) It is the intent of the legislature that, under any
reciprocal tuition agreement approved by the house and senate
appropriations committees, out-of-state students pay the in-state,
out-of-district tuition and fee rate at any Michigan community
college participating in the agreement.
Sec. 237. It is the intent of the legislature that a workgroup
that includes members of the legislature and the Michigan community
colleges association be formed to evaluate, discuss, and make
recommendations regarding the possibility of state payments in lieu
of taxes to community colleges whose districts contain land owned
by state, federal, or local governments or land that is otherwise
nontaxable. The workgroup shall submit a report containing its
findings and recommendations to the house and senate appropriations
subcommittees on community colleges, the house and senate fiscal
agencies, and the state budget director by March 1, 2006.
Sec. 238. It is the intent of the legislature that a workgroup
that includes members of the legislature and the Michigan community
colleges association be formed to evaluate, discuss, and make
recommendations regarding the impact of expanding eligibility for
the optional retirement plan established in section 3 of the
optional retirement act of 1967, 1967 PA 156, MCL 38.383, to
include faculty employed by community colleges on a part-time
basis. The workgroup shall submit a report containing its findings
and recommendations to the house and senate appropriations
subcommittees on community colleges, the house and senate fiscal
agencies, and the state budget director by March 1, 2006.
Sec. 239. The legislature intends that any executive or
legislative proposal or action, subsequent to the adoption of a
recommendation for appropriations for community colleges for the
fiscal year ending September 30, 2006, to increase appropriations
to state-supported 4-year universities in excess of the governor's
original recommendation for the fiscal year ending September 30,
2006, will be accompanied by a similar action or proposal for
state-supported community colleges.
Sec. 240. The legislature intends that not less than 70% of
the economic development job training grant money be awarded to
community colleges or a consortium of community colleges and other
eligible applicants as provided in the budget that appropriated the
economic development job training grant money. Further, the
legislature intends that at least a portion of the total
appropriation for economic development job training grants be
awarded to community colleges that offer certified programs that
are bureau of apprenticeship training certified. The Michigan
economic development corporation shall report by November 1 of each
year to the house and senate appropriations subcommittees on
community colleges and the senate and house fiscal agencies the
names of the community colleges awarded grant money under this
section, the amount of the grants awarded, and the percentage
awarded to bureau of apprenticeship training certified programs.
Sec. 241. (1) A task force shall be formed by October 15, 2005
to review, evaluate, discuss, and make recommendations regarding
performance indicators to be utilized in future budget years to
guide decisions regarding state funding to community colleges. The
task force shall consist of the following members:
(a) Two members of the Michigan house of representatives. One
member shall be designated by the speaker of the house, and 1
member shall be designated by the house minority leader.
(b) Two members of the Michigan senate. One member shall be
designated by the senate majority leader, and 1 member shall be
designated by the senate minority leader.
(c) The state budget director or his or her designee.
(d) The director of the department of labor and economic
growth or his or her designee.
(e) Four representatives of Michigan public community
colleges. The Michigan community colleges association shall
designate 1 representative from each of the 4 groups described in
the activities classification structure data book published by the
department of labor and economic growth under section 501.
(f) One individual designated by the governor to represent the
business community.
(g) One individual designated by the governor to represent
community college students.
(h) One individual designated by the governor to represent
community college faculty members.
(2) The task force described in subsection (1) shall consider
at least all of the following performance indicators for community
colleges in performing its duties under subsection (1):
(a) Total number of degrees and certificates awarded and
subtotals of degrees and certificates awarded in high-cost areas.
(b) Total number of student contact hours provided and
subtotals of student contact hours provided in high-cost areas.
(c) Expenditures for administration as a percentage of total
operating fund expenditures.
(d) Licensure, certification, and registry exam pass rates and
the number of individuals obtaining licensure or certification or
passing a registry exam.
(e) Degree and certificate completion rates.
(f) Student transfer rates.
(g) Performance at transfer institutions.
(h) Student goal attainment.
(i) Placement and wage rates.
(j) Number of dual enrollment participants.
(k) Number of individuals participating in employer-sponsored
training.
(3) The task force described in subsection (1) shall submit a
report containing its findings and recommendations on the following
topics to the house and senate appropriations subcommittees on
community colleges, the house and senate fiscal agencies, and the
state budget director by February 1, 2006:
(a) The most appropriate and reliable performance indicators
to be utilized to guide decisions on state funding to community
colleges.
(b) The most efficient methodology for connecting state
funding to those indicators.
(4) The department of labor and economic growth shall work
with the task force to establish mechanisms to collect and verify
data for any indicators that the task force recommends but for
which reliable data are not currently available.
(5) It is the intent of the legislature that state funding to
community colleges will be based partially or wholly on performance
indicators in future budget years.
STATE AID - OPERATIONS
Sec. 301. Unless otherwise stated, all data items used in
determining state aid in this article are as defined in the 2001
Manual for Uniform Financial Reporting, Michigan Public Community
Colleges, which shall be the basis for reporting data, and the 2003
Activities Classification Structure Manual for Michigan Community
Colleges, which shall be used to document financial needs of the
community colleges.
Sec. 302. A community college shall not include in the
enrollment data reported for determining state aid under this
article any student credit hours or student contact hours for a
student incarcerated in a Michigan penal institution. Exclusion of
these students is intended to avoid the payment of state aid under
this article for the same individuals for whom reimbursement is
provided by the state correctional system.
Sec. 303. A community college selected for audit under section
502 whose audited activities classification structure data is
significantly different than the data used to determine state aid
under this article shall return any overappropriated money as
provided in this subsection. The department of labor and economic
growth shall compare formula computations for the audited colleges
using pre- and post-audit data. If the state allocation is 2% or
more than the post-audit allocation amount, the college shall
return the excess money. The returned money shall be redistributed
to all 28 community colleges, prorated on the base appropriations
contained in part 1.
Sec. 304. It is the intent of the legislature to achieve full
funding of the Gast-Mathieu fairness in funding formula.
GRANTS
Sec. 401. (1) The community college at-risk student success
program is continued. The funding shall be prorated among community
colleges based on the number of student contact hours for
developmental and preparatory instruction reported by each
community college to the department of labor and economic growth
pursuant to the 2003 Activities Classification Structure Manual for
Michigan Community Colleges. Of the amount appropriated in part 1
for the at-risk student success program, $1,120,000.00 is allocated
for base grants of $40,000.00 each, to address the special needs of
at-risk students at community colleges or the acquisition or
upgrade of technology-related equipment and software.
(2) Of the amount appropriated in part 1 for the at-risk
student success program, the balance of the appropriated money
shall be distributed on a proration utilizing the sum of the most
recent 3 years developmental/preparatory contact hours divided by
the sum of the 3-year total contact hours at each college. Each
community college's percentage shall be divided by the sum of all
the percentages systemwide to obtain each community college's
prorated grant amount.
(3) For the fiscal year ending September 30, 2006, the at-risk
student success program money is allocated as follows:
Alpena Community College............................... $ 76,300
Bay de Noc Community College........................... 91,300
Delta College.......................................... 97,100
Glen Oaks Community College............................ 123,600
Gogebic Community College.............................. 66,200
Grand Rapids Community College......................... 117,200
Henry Ford Community College........................... 146,300
Jackson Community College.............................. 102,000
Kalamazoo Valley Community College..................... 89,700
Kellogg Community College.............................. 155,100
Kirtland Community College............................. 125,800
Lake Michigan College.................................. 154,900
Lansing Community College.............................. 139,800
Macomb Community College............................... 83,600
Mid Michigan Community College......................... 134,400
Monroe County Community College........................ 94,000
Montcalm Community College............................. 66,700
C.S. Mott Community College............................ 102,600
Muskegon Community College............................. 149,700
North Central Michigan College......................... 115,900
Northwestern Michigan College.......................... 123,100
Oakland Community College.............................. 144,600
St. Clair Community College............................ 93,400
Schoolcraft College.................................... 129,000
Southwestern Michigan College.......................... 134,800
Washtenaw Community College............................ 161,700
Wayne County Community College......................... 174,900
West Shore Community College........................... 129,000
(4) As used in this article, "at-risk students" means students
who meet 1 or more of the following criteria:
(a) Are initially placed in 1 or more developmental courses as
a result of standardized testing or as a result of failure to make
satisfactory academic progress.
(b) Are diagnosed as learning disabled.
(c) Require English as a second language (ESL) assistance.
(5) Grant funding under this section shall be utilized to
address the special needs of at-risk students or for equipment or
upgrade of information technology hardware or software. Activities
related to services provided to at-risk students include, but are
not limited to, pretesting for academic ability, counseling
contacts, and special programs. Equipment or information technology
hardware or software purchased under this section need not be
associated with the operation of a program designed to address the
needs of at-risk students.
(6) Grant funding under this section shall not be used for
indirect costs including, but not limited to, rent, utilities, or,
except as provided in this section, college administration.
(7) Each community college shall report to the department of
labor and economic growth a summary of all accomplishments under,
expenditures for, and compliance with the intent of this program,
including the number of at-risk students served. The report is
subject to audit as provided for in section 502(1). The report
shall be submitted not later than 90 days after the end of the
state's fiscal year.
Sec. 404. The appropriation in part 1 for renaissance zone
reimbursements shall be made to each eligible recipient no later
than 60 days after the department of treasury certifies to the
state budget director that it has received all necessary
information to properly determine the amounts due each eligible
recipient under section 12 of the Michigan renaissance zone act,
1996 PA 376, MCL 125.2692.
REPORTS AND AUDITS
Sec. 501. The department of labor and economic growth shall
publish the activities classification structure data book for
Michigan community colleges on or before March 1, 2006, for use by
the legislature during budget development for the fiscal year
ending September 30, 2007.
Sec. 502. (1) The auditor general or an independent public
accounting firm appointed by the auditor general shall audit data
for the fiscal year ending on June 30, 2005, as submitted to the
department of labor and economic growth by 7 to 10 randomly
selected community colleges, selected by the auditor general. A
community college shall maintain and provide those records
necessary for the auditor general or certified public accountant
appointed by the auditor general to determine the accuracy of the
reported data. The audits shall be based upon the definitions and
requirements contained in the 2001 Manual for Uniform Financial
Reporting, Michigan Public Community Colleges and the 2003
Activities Classification Structure Manual for Michigan Community
Colleges. Before the submission of a final audit report, a
community college may appeal the findings of the preliminary report
under an appeal process to be established by the auditor general.
The auditor general shall submit a report of the findings to the
house and senate appropriations committees, the department of labor
and economic growth, and the state budget director before June 1,
2006.
(2) The auditor general or a certified public accountant
appointed by the auditor general may conduct performance audits of
community colleges as the auditor general considers necessary.
(3) Not more than 60 days after an audit report is released by
the office of the auditor general, the principal executive officer
of the community college that was audited shall submit to the house
and senate appropriations committees, the house and senate fiscal
agencies, the department of labor and economic growth, the auditor
general, and the state budget director a plan to comply with audit
recommendations. The plan shall contain projected dates and
resources required, if any, to achieve compliance with the audit
recommendations, or a documented explanation of the college's
noncompliance with the audit recommendations concerning the matters
on which the audited community college and office of the auditor
general disagree.
Sec. 503. The department of labor and economic growth shall
review the taxonomy of the 7 to 10 community colleges selected for
the audit under section 502 that is based on the 2003 Activities
Classification Structure Manual for Michigan Community Colleges.
Sec. 504. (1) A community college shall retain certified class
summaries, class lists, registration documents, and student
transcripts that are consistent with the taxonomy of courses. For
each enrollment period during the fiscal year, these certified
documents shall identify clearly by course the number of in-
district and out-of-district student credit and contact hours. The
class summaries and class lists shall be consistent with each other
and shall include the course prefix and numbers, course title,
course credit and contact hours, credit and contact hours generated
by each student, and activity classifications consistent with the
taxonomy. An auditable process shall be used by the community
college to determine the unduplicated head count for in-district
students, out-of-district students, and prisoners for each
enrollment period during the fiscal year.
(2) Contracts between the community college and agencies that
reimburse the community college for the costs of instruction shall
be retained for audit purposes.
Sec. 505. Each community college shall have an annual audit of
all income and expenditures performed by an independent auditor and
shall furnish the independent auditor's management letter and an
annual audited accounting of all general and current funds income
and expenditures including audits of college foundations to the
members of the senate and house appropriations subcommittees on
community colleges, the senate and house fiscal agencies, the
auditor general, the department of labor and economic growth, and
the state budget director before November 15, 2005. If a community
college fails to furnish the audit materials, the monthly state aid
installments shall be withheld from that college until the
information is submitted. All reporting shall conform to the
requirements set forth in the 2001 Manual for Uniform Financial
Reporting, Michigan Public Community Colleges.
Sec. 506. (1) Each community college shall report the
following to the department of labor and economic growth no later
than November 1, 2005:
(a) The number of North American Indian students enrolled each
term for the previous fiscal year, using guidelines and procedures
developed by the department of labor and economic growth and the
Michigan commission on Indian affairs.
(b) The number of Indian tuition waivers granted each term,
and the monetary value of the waivers for the previous fiscal year.
(2) Colleges shall use the criteria cited in 1976 PA 174, MCL
390.1251 to 390.1253, to determine eligibility for tuition waivers,
and shall grant those waivers to individuals who meet the criteria
and request tuition waivers.
(3) The department of labor and economic growth shall compile
the information received under subsection (1) and shall submit this
compilation to the house and senate appropriations subcommittees on
community colleges, the senate and house fiscal agencies, and the
state budget director by January 7, 2006.
Sec. 507. Upon request, a community college shall inform
interested Michigan high schools of the aggregate academic status
of its students for the prior academic year, in a manner prescribed
by the Michigan community college association and in cooperation
with the Michigan association of secondary school principals.
Sec. 508. (1) Each community college shall report to the house
and senate fiscal agencies, the state budget director, and the
department of labor and economic growth by August 31, 2005, the
tuition and mandatory fees paid by a full-time in-district student
and a full-time out-of-district student as established by the
college governing board for the 2005-2006 academic year. This
report should also include the annual cost of attendance based on a
full-time course load of 30 credits. Each community college shall
also report any revisions to the reported 2005-2006 academic year
tuition and mandatory fees adopted by the college governing board
to the house and senate fiscal agencies, the state budget director,
and the department of labor and economic growth within 15 days of
being adopted.
(2) The department of labor and economic growth shall prepare
and provide to community colleges a standard format for reporting
tuition and fees pursuant to subsection (1).
Sec. 509. (1) Each community college shall report to the
department of labor and economic growth the numbers and type of
associate degrees and other certificates awarded during the
previous fiscal year. The report shall be made not later than
November 15, 2005.
(2) The department of labor and economic growth shall compile
the information received under subsection (1) and shall submit this
compilation to the house and senate appropriations subcommittees on
community colleges, the senate and house fiscal agencies, and the
state budget director by January 7, 2006.
Sec. 510. A community college receiving funding under this
article and also subject to the student right-to-know and campus
security act, Public Law 101-542, 104 Stat. 2381, shall make a copy
of all material prepared in accordance with the public information
reporting requirements under the crime awareness and campus
security act of 1990, title II of the student right-to-know and
campus security act, Public Law 101-542, 104 Stat. 2384, available
in hard copy and electronic format accessible through the Internet
for school districts, parents, and students.
Sec. 511. (1) It is the intent of the legislature that the
frequency and scope of on-site visits, evaluations, audits, and
similar activities be limited to that which is reasonably necessary
to monitor the performance of community colleges and confirm the
accuracy of reported data. On-site visits, evaluations, audits, and
similar activities conducted to comply with the state plan approved
by the United States department of education under the Perkins act
shall be limited to those necessary to meet the requirements of the
state plan.
(2) In developing and implementing audit and reporting
requirements, including those included in current and proposed
state plans under the Perkins act, the department of labor and
economic growth shall consult with community colleges, the
legislative auditor general, and independent auditors in an effort
to coordinate activities and minimize duplication of audit and
reporting requirements imposed on community colleges.
(3) At least 30 days before submission of a new state plan to
the United States department of education for approval under the
Perkins act, the department of labor and economic growth shall
provide copies of the proposed plan to the members of the senate
and house appropriations subcommittees on community colleges for
their review and comment. Copies of the proposed plan shall be
provided to the senate and house fiscal agencies and the state
budget director at the same time that they are provided to the
senate and house subcommittees.
(4) The Perkins grant application process and content shall be
streamlined to the extent possible.
(5) As used in this section, "Perkins act" means the Carl D.
Perkins vocational and applied technology education act, 20 USC
2301 to 2415.
Sec. 513. The department of treasury shall annually collect
and compile data on the tax revenue losses to community colleges
resulting from tax increment financing authorities (TIFA) and tax
abatements. The department of treasury shall produce a report
detailing the data. The report shall be completed and presented to
the house and senate appropriations subcommittees on community
colleges, the department of career development, and the department
of management and budget not later than March 1, 2006. The report
shall include, but is not limited to, the following:
(a) Estimated revenue losses for each community college for
the calendar year 2005.
(b) Confirmed revenue losses for each community college for
the calendar years 2003 and 2004.
(c) Other requirements requested by the house and senate
appropriations subcommittees on community colleges.
ARTICLE 3
DEPARTMENT OF COMMUNITY HEALTH
PART 1
House Bill No. 4831 (H-1) as amended June 9, 2005
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this article,
the amounts listed in this part are appropriated for the department
of community health for the fiscal year ending September 30, 2006,
from the funds indicated in this part. The following is a summary
of the appropriations in this part:
DEPARTMENT OF COMMUNITY HEALTH
APPROPRIATION SUMMARY:
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........ 4,680.6
Average population............................ 1,135.0
GROSS APPROPRIATION.................................... $ [9,879,064,600]
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 32,794,800
ADJUSTED GROSS APPROPRIATION........................... $ [9,846,269,800]
Federal revenues:
Total federal revenues................................. 5,283,772,000
Special revenue funds:
Total local revenues................................... 231,352,700
Total private revenues................................. 59,467,500
Merit award trust fund................................. 50,300,000
Tobacco settlement trust fund.......................... 72,000,000
Total other state restricted revenues.................. [1,306,778,000]
State general fund/general purpose..................... $ [2,842,599,600]
Sec. 102. DEPARTMENTWIDE ADMINISTRATION (HEALTH)
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 220.0
Director and other unclassified--6.0 FTE positions..... $ 556,500
Community health advisory council...................... 7,000
Departmental administration and management--210.0 FTE
positions............................................ 21,726,800
Worker's compensation program.......................... 8,558,700
Rent and building occupancy............................ 8,700,400
Developmental disabilities council and projects--10.0
FTE positions........................................ 2,644,400
GROSS APPROPRIATION.................................... $ 42,193,800
Appropriated from:
Federal revenues:
Total federal revenues................................. 11,293,400
Special revenue funds:
Total private revenues................................. 35,900
Total other state restricted revenues.................. 3,376,300
State general fund/general purpose..................... $ 27,488,200
Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES
ADMINISTRATION AND SPECIAL PROJECTS (HEALTH)
Full-time equated classified positions.......... 112.0
Mental health/substance abuse program administration--
111.0 FTE positions.................................. $ 12,160,900
Gambling addiction--1.0 FTE position................... 3,500,000
Protection and advocacy services support............... 777,400
Mental health initiatives for older persons............ 1,049,200
Community residential and support services............. 2,971,200
House Bill No. 4831 (H-1) as amended June 9, 2005
Highway safety projects................................ 750,000
Federal and other special projects..................... 3,895,400
Family support subsidy................................. 17,935,000
Housing and support services........................... 7,237,200
GROSS APPROPRIATION.................................... $ 50,276,300
Appropriated from:
Federal revenues:
Total federal revenues................................. 32,202,200
Special revenue funds:
Total private revenues................................. 190,000
Total other state restricted revenues.................. 4,127,900
State general fund/general purpose..................... $ 13,756,200
Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE
SERVICES PROGRAMS (HEALTH)
Full-time equated classified positions............ 9.5
Medicaid mental health services........................ $ 1,569,659,400
Community mental health non-Medicaid services.......... 292,598,300
Medicaid adult benefits waiver......................... 40,000,000
Multicultural services................................. [3,563,800]
Medicaid substance abuse services...................... 33,321,400
Respite services....................................... 1,000,000
CMHSP, purchase of state services contracts............ 125,706,500
Civil service charges.................................. 1,765,500
Federal mental health block grant--2.5 FTE positions... 15,335,900
State disability assistance program substance abuse
services............................................. 2,259,800
Community substance abuse prevention, education, and
House Bill No. 4831 (H-1) as amended June 9, 2005
treatment programs................................... 84,719,100
Children's waiver home care program.................... 19,549,800
Omnibus reconciliation act implementation--7.0 FTE
positions............................................ 13,446,700
GROSS APPROPRIATION.................................... $ [2,202,926,200]
Appropriated from:
Federal revenues:
Total federal revenues................................. 1,037,378,300
Special revenue funds:
Total local revenues................................... 26,072,100
Total other state restricted revenues.................. 90,533,900
State general fund/general purpose..................... $ [1,048,941,900]
Sec. 105. STATE PSYCHIATRIC HOSPITALS, CENTERS FOR
PERSONS WITH DEVELOPMENTAL DISABILITIES, AND FORENSIC
AND PRISON MENTAL HEALTH SERVICES (HEALTH)
Total average population...................... 1,135.0
Full-time equated classified positions........ 2,976.2
Caro regional mental health center - psychiatric
hospital - adult--475.7 FTE positions................ $ 39,732,000
Average population.............................. 205.0
Kalamazoo psychiatric hospital - adult--518.1 FTE
positions............................................ 40,697,600
Average population.............................. 200.0
Walter P. Reuther psychiatric hospital - adult--444.6
FTE positions........................................ 40,403,500
Average population.............................. 240.0
Hawthorn center - psychiatric hospital - children and
adolescents--224.4 FTE positions..................... 20,202,600
Average population............................... 66.0
Mount Pleasant center - developmental disabilities--
496.0 FTE positions.................................. 38,271,500
Average population.............................. 199.0
Center for forensic psychiatry--493.0 FTE positions.... 46,075,800
Average population.............................. 225.0
Forensic mental health services provided to the
department of corrections--313.4 FTE positions....... 31,570,800
Revenue recapture...................................... 750,000
IDEA, federal special education........................ 120,000
Special maintenance and equipment...................... 335,300
Purchase of medical services for residents of
hospitals and centers................................ 2,045,600
Closed site, transition, and related costs--11.0 FTE
positions............................................ 621,200
Severance pay.......................................... 216,900
Gifts and bequests for patient living and treatment
environment.......................................... 1,000,000
GROSS APPROPRIATION.................................... $ 262,042,800
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of
corrections.......................................... 31,570,800
Federal revenues:
Total federal revenues................................. 33,418,600
Special revenue funds:
CMHSP, purchase of state services contracts............ 125,706,500
Other local revenues................................... 14,845,300
Total private revenues................................. 1,000,000
Total other state restricted revenues.................. 9,966,400
State general fund/general purpose..................... $ 45,535,200
Sec. 106. PUBLIC HEALTH ADMINISTRATION (HEALTH)
Full-time equated classified positions........... 83.4
Public health administration--11.0 FTE positions....... $ 1,448,400
Minority health grants and contracts................... 650,000
Vital records and health statistics--72.4 FTE
positions............................................ 7,317,600
GROSS APPROPRIATION.................................... $ 9,416,000
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of human
services............................................. 699,800
Federal revenues:
Total federal revenues................................. 2,730,800
Special revenue funds:
Total other state restricted revenues.................. 4,821,200
State general fund/general purpose..................... $ 1,164,200
Sec. 107. HEALTH POLICY, REGULATION, AND PROFESSIONS
(HEALTH)
Full-time equated classified positions.......... 395.2
Health systems administration--193.6 FTE positions..... $ 20,202,800
Emergency medical services program state staff--8.5
FTE positions........................................ 1,322,400
Radiological health administration--25.0 FTE positions. 2,295,600
Substance abuse program administration--4.0 FTE
positions............................................ 423,800
Emergency medical services grants and services......... 702,900
Health professions--120.0 FTE positions................ 13,273,400
Health policy, regulation, and professions
administration--25.7 FTE positions................... 2,571,700
Nurse scholarship, education, and research program--
2.0 FTE positions.................................... 673,100
Certificate of need program administration--14.0 FTE
positions............................................ 1,645,600
Rural health services--1.0 FTE position................ 1,251,900
Michigan essential health provider..................... 1,392,600
Primary care services--1.4 FTE positions............... 2,291,400
GROSS APPROPRIATION.................................... $ 48,047,200
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from treasury.................. 110,800
Federal revenues:
Total federal revenues................................. 19,194,400
Special revenue funds:
Total local revenues................................... 150,000
Total private revenues................................. 546,300
Total other state restricted revenues.................. 21,396,800
State general fund/general purpose..................... $ 6,648,900
Sec. 108. INFECTIOUS DISEASE CONTROL (HEALTH)
Full-time equated classified positions........... 49.0
AIDS prevention, testing, and care programs--12.0 FTE
positions............................................ $ 31,438,300
Immunization local agreements.......................... 13,115,300
Immunization program management and field support--
15.0 FTE positions................................... 1,644,800
Sexually transmitted disease control local agreements.. 3,494,900
Sexually transmitted disease control management and
field support--22.0 FTE positions.................... 3,485,500
GROSS APPROPRIATION.................................... $ 53,178,800
Appropriated from:
Federal revenues:
Total federal revenues................................. 38,556,500
Special revenue funds:
Total private revenues................................. 3,250,500
Total other state restricted revenues.................. 7,291,600
State general fund/general purpose..................... $ 4,080,200
Sec. 109. LABORATORY SERVICES (HEALTH)
Full-time equated classified positions.......... 121.0
Bovine tuberculosis--2.0 FTE positions................. $ 500,000
Laboratory services--119.0 FTE positions............... 14,975,300
GROSS APPROPRIATION.................................... $ 15,475,300
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from environmental quality..... 413,400
Federal revenues:
Total federal revenues................................. 3,008,400
Special revenue funds:
Total other state restricted revenues.................. 5,154,900
State general fund/general purpose..................... $ 6,898,600
Sec. 110. EPIDEMIOLOGY (HEALTH)
Full-time equated classified positions.......... 127.5
AIDS surveillance and prevention program............... $ 2,513,200
Asthma prevention and control--2.3 FTE positions....... 1,042,100
Bioterrorism preparedness--76.1 FTE positions.......... 50,129,600
Epidemiology administration--41.1 FTE positions........ 6,453,300
Newborn screening follow-up and treatment services--
8.0 FTE positions.................................... 3,565,900
Tuberculosis control and recalcitrant AIDS program..... 867,000
GROSS APPROPRIATION.................................... $ 64,571,100
Appropriated from:
Federal revenues:
Total federal revenues................................. 58,779,600
Special revenue funds:
Total private revenues................................. 25,000
Total other state restricted revenues.................. 3,750,700
State general fund/general purpose..................... $ 2,015,800
Sec. 111. LOCAL HEALTH ADMINISTRATION AND GRANTS
(HEALTH)
Full-time equated classified positions............ 7.0
Implementation of 1993 PA 133, MCL 333.17015........... $ 100,000
Lead abatement program--7.0 FTE positions.............. 1,755,800
Local health services.................................. 220,000
Local public health operations......................... 35,468,400
Medical services cost reimbursement to local health
House Bill No. 4831 (H-1) as amended June 9, 2005
departments.......................................... 3,110,000
GROSS APPROPRIATION.................................... $ 40,654,200
Appropriated from:
Federal revenues:
Total federal revenues................................. 4,623,300
Special revenue funds:
Total other state restricted revenues.................. 486,000
State general fund/general purpose..................... $ 35,544,900
Sec. 112. CHRONIC DISEASE AND INJURY PREVENTION AND
HEALTH PROMOTION (HEALTH)
Full-time equated classified positions........... 51.5
African-American male health initiative................ $ 106,700
AIDS and risk reduction clearinghouse and media
campaign............................................. 1,576,000
Alzheimer's information network........................ 150,000
Cancer prevention and control program--14.3 FTE
positions............................................ 12,174,800
Chronic disease prevention--1.0 FTE position........... [3,816,800]
Diabetes and kidney program--9.1 FTE positions......... 3,644,000
Health education, promotion, and research programs--
9.3 FTE positions.................................... 696,500
Injury control intervention project--1.0 FTE position.. 524,000
Public health traffic safety coordination--1.7 FTE
positions............................................ 583,200
Smoking prevention program--13.1 FTE positions......... 3,619,000
Tobacco tax collection and enforcement................. 610,000
Violence prevention--2.0 FTE positions................. 1,886,000
House Bill No. 4831 (H-1) as amended June 9, 2005
GROSS APPROPRIATION.................................... $ [29,387,000]
Appropriated from:
Federal revenues:
Total federal revenues................................. 19,572,100
Special revenue funds:
Total private revenues................................. 85,000
Total other state restricted revenues.................. [8,645,100]
State general fund/general purpose..................... $ 1,084,800
Sec. 113. FAMILY, MATERNAL, AND CHILDREN'S HEALTH
SERVICES (HEALTH)
Full-time equated classified positions........... 45.4
Childhood lead program--5.8 FTE positions.............. $ 2,507,500
Dental programs........................................ 335,400
Dental program for persons with developmental
disabilities......................................... 151,000
Family, maternal, and children's health services
administration--39.6 FTE positions................... 4,483,200
Family planning local agreements....................... 11,635,700
Local MCH services..................................... 7,018,100
Migrant health care.................................... 272,200
Pediatric AIDS prevention and control.................. 1,176,800
Pregnancy prevention program........................... 812,800
Prenatal care outreach and service delivery support.... 3,049,300
School health and education programs................... 500,000
Special projects....................................... 4,994,900
Sudden infant death syndrome program................... 321,300
GROSS APPROPRIATION.................................... $ 37,258,200
Appropriated from:
Federal revenues:
Total federal revenues................................. 31,128,100
Special revenue funds:
Total other state restricted revenues.................. 1,500,000
State general fund/general purpose..................... $ 4,630,100
Sec. 114. WOMEN, INFANTS, AND CHILDREN FOOD AND
NUTRITION PROGRAM (HEALTH)
Full-time equated classified positions........... 41.0
Women, infants, and children program administration
and special projects--41.0 FTE positions............. $ 6,355,800
Women, infants, and children program local agreements
and food costs....................................... 179,272,000
GROSS APPROPRIATION.................................... $ 185,627,800
Appropriated from:
Federal revenues:
Total federal revenues................................. 132,398,000
Special revenue funds:
Total private revenues................................. 53,229,800
State general fund/general purpose..................... $ 0
Sec. 115. CHILDREN'S SPECIAL HEALTH CARE SERVICES
(HEALTH)
Full-time equated classified positions........... 43.0
Children's special health care services
administration--43.0 FTE positions................... $ 3,732,700
Amputee program........................................ 184,600
Bequests for care and services......................... 1,889,100
Outreach and advocacy.................................. 3,773,500
Conveyor contract...................................... 1,235,300
Medical care and treatment............................. 208,668,600
GROSS APPROPRIATION.................................... $ 219,483,800
Appropriated from:
Federal revenues:
Total federal revenues................................. 104,331,600
Special revenue funds:
Total private revenues................................. 1,000,000
Total other state restricted revenues.................. 2,450,000
State general fund/general purpose..................... $ 111,702,200
Sec. 116. OFFICE OF DRUG CONTROL POLICY (SAFETY)
Full-time equated classified positions........... 16.0
Drug control policy--16.0 FTE positions................ $ 1,903,300
Anti-drug abuse grants................................. 24,970,300
Interdepartmental grant to judiciary for drug
treatment courts..................................... 1,800,000
GROSS APPROPRIATION.................................... $ 28,673,600
Appropriated from:
Federal revenues:
Total federal revenues................................. 28,389,200
Special revenue funds:
State general fund/general purpose..................... $ 284,400
Sec. 117. CRIME VICTIM SERVICES COMMISSION
(VULNERABLE)
Full-time equated classified positions........... 10.0
Grants administration services--10.0 FTE positions..... $ 1,091,100
Justice assistance grants.............................. 13,000,000
Crime victim rights services grants.................... 9,655,300
GROSS APPROPRIATION.................................... $ 23,746,400
Appropriated from:
Federal revenues:
Total federal revenues................................. 14,623,500
Special revenue funds:
Total other state restricted revenues.................. 9,122,900
State general fund/general purpose..................... $ 0
Sec. 118. OFFICE OF SERVICES TO THE AGING
(VULNERABLE)
Full-time equated classified positions........... 36.5
Commission (per diem $50.00)........................... $ 9,500
Office of services to aging administration--36.5 FTE
positions............................................ 4,831,100
Community services..................................... 35,204,200
Nutrition services..................................... 37,290,500
Senior volunteer services.............................. 5,624,900
Employment assistance.................................. 2,818,300
Respite care program................................... 7,600,000
GROSS APPROPRIATION.................................... $ 93,378,500
Appropriated from:
Federal revenues:
Total federal revenues................................. 52,100,600
Special revenue funds:
Total private revenues................................. 105,000
Tobacco settlement trust fund.......................... 5,000,000
Total other state restricted revenues.................. 2,767,000
State general fund/general purpose..................... $ 33,405,900
Sec. 119. MEDICAL SERVICES ADMINISTRATION (HEALTH)
Full-time equated classified positions.......... 336.4
Medical services administration--336.4 FTE positions... $ 46,302,000
Facility inspection contract - labor and economic
growth............................................... 132,800
MIChild administration................................. 4,327,800
GROSS APPROPRIATION.................................... $ 50,762,600
Appropriated from:
Federal revenues:
Total federal revenues................................. 37,295,700
Special revenue funds:
State general fund/general purpose..................... $ 13,466,900
Sec. 120. MEDICAL SERVICES (HEALTH)
Hospital services and therapy.......................... $ 1,225,108,500
Hospital disproportionate share payments............... 50,000,000
Physician services..................................... 256,951,500
Medicare premium payments.............................. 272,705,600
Pharmaceutical services................................ 347,223,400
Home health services................................... 55,777,200
Transportation......................................... 8,738,300
Auxiliary medical services............................. 104,861,900
Ambulance services..................................... 12,727,900
Long-term care services................................ 1,670,452,500
Elder prescription insurance coverage.................. 3,900,000
Health plan services................................... 1,658,116,200
MIChild program........................................ 39,994,400
Medicaid adult benefits waiver......................... 76,654,900
Maternal and child health.............................. 20,279,500
Social services to the physically disabled............. 1,344,900
Federal Medicare pharmaceutical program................ 174,855,500
County indigent care and third share plans............. 89,167,400
Subtotal basic medical services program................ 6,068,859,600
School-based services.................................. 68,621,100
Special adjustor and special DSH payments.............. 253,689,500
Subtotal special medical services payments............. 322,310,600
GROSS APPROPRIATION.................................... $ 6,391,170,200
Appropriated from:
Federal revenues:
Total federal revenues................................. 3,604,351,600
Special revenue funds:
Total local revenues................................... 64,578,800
Merit award trust fund................................. 50,300,000
Tobacco settlement trust fund.......................... 67,000,000
Total other state restricted revenues.................. 1,128,400,200
State general fund/general purpose..................... $ 1,476,539,600
Sec. 121. INFORMATION TECHNOLOGY (HEALTH)
Information technology services and projects........... $ 30,794,700
Michigan Medicaid information system................... 100
GROSS APPROPRIATION.................................... $ 30,794,800
Appropriated from:
Federal revenues:
Total federal revenues................................. 18,396,100
House Bill No. 4831 (H-1) as amended June 9, 2005
Special revenue funds:
Total other state restricted revenues.................. 2,987,100
State general fund/general purpose..................... $ 9,411,600
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2005-2006 is [$4,271,677,600.00] and
state spending from state resources to be paid to units of local
government for fiscal year 2005-2006 is [$1,104,751,500.00]. The
itemized statement below identifies appropriations from which
spending to local units of government will occur:
DEPARTMENT OF COMMUNITY HEALTH
MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION
AND SPECIAL PROJECTS
Mental health initiatives for older persons............ $ 1,049,200
COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS
State disability assistance program substance
abuse services...................................... 2,259,800
Community substance abuse prevention, education, and
treatment programs.................................. 18,290,500
Medicaid mental health services........................ 655,317,100
Community mental health non-Medicaid services.......... 312,098,300
Medicaid adult benefits waiver......................... 12,156,000
House Bill No. 4831 (H-1) as amended June 9, 2005
Multicultural services................................. [3,563,800]
Medicaid substance abuse services...................... 14,464,800
Respite services....................................... 1,000,000
Omnibus budget reconciliation act implementation....... 3,866,900
HEALTH POLICY, REGULATION AND PROFESSIONS
Health professions..................................... 275,000
INFECTIOUS DISEASE CONTROL
AIDS prevention, testing and care programs............. 1,400,000
Immunization local agreements.......................... 1,325,000
Sexually transmitted disease control local agreements.. 421,800
LABORATORY SERVICES
Laboratory services.................................... 54,000
LOCAL HEALTH ADMINISTRATION AND GRANTS
Implementation of 1993 PA 133.......................... 7,700
Local public health operations......................... 35,468,400
CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION
Cancer prevention and control program.................. 120,700
Diabetes and kidney program............................ 295,800
Smoking prevention program............................. 452,100
FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES
Childhood lead program................................. 50,000
Prenatal care outreach and service delivery support.... 636,000
School health and education programs................... 500,000
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Outreach and advocacy.................................. 1,283,200
MEDICAL SERVICES
Transportation......................................... 1,275,300
House Bill No. 4831 (H-1) as amended June 9, 2005
OFFICE OF SERVICES TO THE AGING
Community services..................................... 14,854,300
Nutrition services..................................... 11,280,300
Senior volunteer services.............................. 1,153,400
Respite care program................................... 4,400,000
CRIME VICTIM SERVICES COMMISSION
Crime victim rights services grants.................... 5,432,100
TOTAL OF PAYMENTS TO LOCAL UNITS
OF GOVERNMENT......................................... $ [1,104,751,500]
Sec. 202. (1) The appropriations authorized under this article
are subject to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
(2) Funds for which the state is acting as the custodian or
agent are not subject to annual appropriation.
Sec. 203. As used in this article:
(a) "AIDS" means acquired immunodeficiency syndrome.
(b) "CMHSP" means a community mental health services program
as that term is defined in section 100a of the mental health code,
1974 PA 258, MCL 330.1100a.
(c) "Department" means the Michigan department of community
health.
(d) "DSH" means disproportionate share hospital.
(e) "EPIC" means elder prescription insurance coverage
program.
(f) "EPSDT" means early and periodic screening, diagnosis, and
treatment.
(g) "FTE" means full-time equated.
(h) "GME" means graduate medical education.
(i) "Health plan" means, at a minimum, an organization that
meets the criteria for delivering the comprehensive package of
services under the department's comprehensive health plan.
(j) "HIV/AIDS" means human immunodeficiency virus/acquired
immune deficiency syndrome.
(k) "HMO" means health maintenance organization.
(l) "IDEA" means individual disability education act.
(m) "IDG" means interdepartmental grant.
(n) "MCH" means maternal and child health.
(o) "MIChild" means the program described in section 1670.
(p) "MSS/ISS" means maternal and infant support services.
(q) "Specialty prepaid health plan" means a program described
in section 232b of the mental health code, 1974 PA 258, MCL
330.1232b.
(r) "Title XVIII" means title XVIII of the social security
act, 42 USC 1395 to 1395hhh.
(s) "Title XIX" means title XIX of the social security act, 42
USC 1396 to 1396v.
(t) "Title XX" means title XX of the social security act, 49
USC 1397 to 1397f.
(u) "WIC" means women, infants, and children supplemental
nutrition program.
Sec. 204. The department of civil service shall bill the
department at the end of the first fiscal quarter for the 1% charge
authorized by section 5 of article XI of the state constitution of
1963. Payments shall be made for the total amount of the billing by
House Bill No. 4831 (H-1) as amended June 9, 2005
the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on the state
classified civil service. State departments and agencies are
prohibited from hiring any new state classified civil service
employees and prohibited from filling any vacant state classified
civil service positions. This hiring freeze does not apply to
internal transfers of classified employees from 1 position to
another within a department.
(2) The state budget director may grant exceptions to this
hiring freeze when the state budget director believes that the
hiring freeze will result in rendering a state department or agency
unable to deliver basic services, cause loss of revenue to the
state, result in the inability of the state to receive federal
funds, or would necessitate additional expenditures that exceed any
savings from maintaining the vacancy. The state budget director
shall report quarterly to the chairpersons of the senate and house
of representatives standing committees on appropriations the number
of exceptions to the hiring freeze approved during the previous
quarter and the reasons to justify the exception.
[Sec. 206. (1) In addition to the funds appropriated in part 1,
e is appropriated an amount not to exceed $100,000,000.00 for
ral contingency funds. These funds are not available for
nditure until they have been transferred to another line item
article under section 393(2) of the management and budget
1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
priated an amount not to exceed $20,000,000.00 for state
House Bill No. 4831 (H-1) as amended June 9, 2005
retricted contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this article under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $20,000,000.00 for local
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this
article under section 393(2) of the anagement and budget act, 1984
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $10,000,000.00 for private
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this
article under section 393(2) of the management and budget act, 1984
]PA 431, MCL 18.1393.
Sec. 208. Unless otherwise specified, the department shall use
the Internet to fulfill the reporting requirements of this article.
This requirement may include transmission of reports via electronic
mail to the recipients identified for each reporting requirement or
it may include placement of reports on the Internet or Intranet
site.
Sec. 209. (1) Funds appropriated in part 1 shall not be used
for the purchase of foreign goods or services, or both, if
competitively priced and comparable quality American goods or
services, or both, are available.
(2) Funds appropriated in part 1 shall not be used for the
purchase of out-of-state goods or services, or both, if
competitively priced and comparable quality Michigan goods or
services, or both, are available.
Sec. 211. If the revenue collected by the department from fees
and collections exceeds the amount appropriated in part 1, the
revenue may be carried forward with the approval of the state
budget director into the subsequent fiscal year. The revenue
carried forward under this section shall be used as the first
source of funds in the subsequent fiscal year.
Sec. 212. (1) From the amounts appropriated in part 1, no
greater than the following amounts are supported with federal
maternal and child health block grant, preventive health and health
services block grant, substance abuse block grant, healthy Michigan
fund, and Michigan health initiative funds:
(a) Maternal and child health block grant.......... $ 21,162,400
(b) Preventive health and health services
block grant............................................. 5,617,500
(c) Substance abuse block grant.................... 60,399,600
(d) Healthy Michigan fund.......................... 43,512,700
(e) Michigan health initiative..................... 10,121,200
(2) On or before February 1, 2006, the department shall report
to the house of representatives and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget director on the detailed name and
amounts of federal, restricted, private, and local sources of
revenue that support the appropriations in each of the line items
in part 1 of this article.
(3) Upon the release of the fiscal year 2006-2007 executive
budget recommendation, the department shall report to the same
parties in subsection (2) on the amounts and detailed sources of
federal, restricted, private, and local revenue proposed to support
the total funds appropriated in each of the line items in part 1 of
the fiscal year 2006-2007 executive budget proposal.
(4) The department shall provide to the same parties in
subsection (2) all revenue source detail for consolidated revenue
line item detail upon request to the department.
Sec. 213. The state departments, agencies, and commissions
receiving tobacco tax funds from part 1 shall report by January 1,
2006, to the senate and house of representatives appropriations
committees, the senate and house fiscal agencies, and the state
budget director on the following:
(a) Detailed spending plan by appropriation line item
including description of programs.
(b) Description of allocations or bid processes including need
or demand indicators used to determine allocations.
(c) Eligibility criteria for program participation and maximum
benefit levels where applicable.
(d) Outcome measures to be used to evaluate programs.
(e) Any other information considered necessary by the house of
representatives or senate appropriations committees or the state
budget director.
Sec. 214. The use of state-restricted tobacco tax revenue
received for the purpose of tobacco prevention, education, and
reduction efforts and deposited in the healthy Michigan fund shall
not be used for lobbying as defined in 1978 PA 472, MCL 4.411 to
4.431, and shall not be used in attempting to influence the
decisions of the legislature, the governor, or any state agency.
Sec. 216. (1) In addition to funds appropriated in part 1 for
all programs and services, there is appropriated for write-offs of
accounts receivable, deferrals, and for prior year obligations in
excess of applicable prior year appropriations, an amount equal to
total write-offs and prior year obligations, but not to exceed
amounts available in prior year revenues.
(2) The department's ability to satisfy appropriation
deductions in part 1 shall not be limited to collections and
accruals pertaining to services provided in fiscal year 2005-2006,
but shall also include reimbursements, refunds, adjustments, and
settlements from prior years.
(3) The department shall report by March 15, 2006 to the house
of representatives and senate appropriations subcommittees on
community health on all reimbursements, refunds, adjustments, and
settlements from prior years.
Sec. 218. Basic health services for the purpose of part 23 of
the public health code, 1978 PA 368, MCL 333.2301 to 333.2321, are:
immunizations, communicable disease control, sexually transmitted
disease control, tuberculosis control, prevention of gonorrhea eye
infection in newborns, screening newborns for the 8 conditions
listed in section 5431(1)(a) through (h) of the public health code,
1978 PA 368, MCL 333.5431, community health annex of the Michigan
emergency management plan, and prenatal care.
Sec. 219. (1) The department may contract with the Michigan
public health institute for the design and implementation of
projects and for other public health related activities prescribed
in section 2611 of the public health code, 1978 PA 368, MCL
333.2611. The department may develop a master agreement with the
institute to carry out these purposes for up to a 3-year period.
The department shall report to the house of representatives and
senate appropriations subcommittees on community health, the house
and senate fiscal agencies, and the state budget director on or
before November 1, 2005 and May 1, 2006 all of the following:
(a) A detailed description of each funded project.
(b) The amount allocated for each project, the appropriation
line item from which the allocation is funded, and the source of
financing for each project.
(c) The expected project duration.
(d) A detailed spending plan for each project, including a
list of all subgrantees and the amount allocated to each
subgrantee.
(2) If a report required under subsection (1) is not received
by the house of representatives and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget director on or before the date
specified for that report, the disbursement of funds to the
Michigan public health institute under this section shall stop. The
disbursement of those funds shall recommence when the overdue
report is received.
(3) On or before September 30, 2006, the department shall
provide to the same parties listed in subsection (1) a copy of all
House Bill No. 4831 (H-1) as amended June 9, 2005
reports, studies, and publications produced by the Michigan public
health institute, its subcontractors, or the department with the
funds appropriated in part 1 and allocated to the Michigan public
health institute.
[(4) From the funds appropriated in part 1, the department may
allocate a portion of general fund/general purpose funds to the
Michigan public health institute for contractual services in a
]
total amount of not more than $1,691,100.00.
Sec. 220. All contracts with the Michigan public health
institute funded with appropriations in part 1 shall include a
requirement that the Michigan public health institute submit to
financial and performance audits by the state auditor general of
projects funded with state appropriations.
Sec. 223. The department of community health may establish and
collect fees for publications, videos and related materials,
conferences, and workshops. Collected fees shall be used to offset
expenditures to pay for printing and mailing costs of the
publications, videos and related materials, and costs of the
workshops and conferences. The costs shall not exceed fees
collected.
Sec. 259. From the funds appropriated in part 1 for
information technology, the department shall pay user fees to the
department of information technology for technology-related
services and projects. Such user fees shall be subject to
provisions of an interagency agreement between the department and
the department of information technology.
Sec. 260. Amounts appropriated in part 1 for information
technology may be designated as work projects and carried forward
to support technology projects under the direction of the
department of information technology. Funds designated in this
manner are not available for expenditure until approved as work
projects under section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a.
Sec. 261. Funds appropriated in part 1 for the Medicaid
management information system upgrade are contingent upon approval
of an advanced planning document from the centers for Medicare and
Medicaid services. If the necessary matching funds are identified
and legislatively transferred to this line item, the corresponding
federal Medicaid revenue shall be appropriated at a 90/10
federal/state match rate. This appropriation may be designated as
a work project and carried forward to support completion of this
project.
Sec. 264. Upon submission of a Medicaid waiver, a Medicaid
state plan amendment, or a similar proposal to the centers for
Medicare and Medicaid services, the department shall notify the
house of representatives and senate appropriations subcommittees on
community health and the house and senate fiscal agencies of the
submission.
Sec. 265. The departments and agencies receiving
appropriations in part 1 shall receive and retain copies of all
reports funded from appropriations in part 1. Federal and state
guidelines for short-term and long-term retention of records shall
be followed.
Sec. 266. (1) Due to the current budgetary problems in this
state, out-of-state travel for the fiscal year ending September 30,
2006 shall be limited to situations in which 1 or more of the
following conditions apply:
(a) The travel is required by legal mandate or court order or
for law enforcement purposes.
(b) The travel is necessary to protect the health or safety of
Michigan citizens or visitors or to assist other states in similar
circumstances.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, including protecting existing federal
funds or securing additional federal funds.
(d) The travel is necessary to comply with federal
requirements.
(e) The travel is necessary to secure specialized training for
staff that is not available within this state.
(f) The travel is financed entirely by federal or nonstate
funds.
(2) If out-of-state travel is necessary but does not meet 1 or
more of the conditions in subsection (1), the state budget director
may grant an exception to allow the travel. Any exceptions granted
by the state budget director shall be reported on a monthly basis
to the house of representatives and senate standing committees on
appropriations.
(3) Not later than January 1 of each year, each department
shall prepare a travel report listing all travel by classified and
unclassified employees outside this state in the immediately
preceding fiscal year that was funded in whole or in part with
funds appropriated in the department's budget. The report shall be
submitted to the chairs and members of the house of representatives
and senate standing committees on appropriations, the fiscal
agencies, and the state budget director. The report shall include
the following information:
(a) The name of each person receiving reimbursement for travel
outside this state or whose travel costs were paid by this state.
(b) The destination of each travel occurrence.
(c) The dates of each travel occurrence.
(d) A brief statement of the reason for each travel
occurrence.
(e) The transportation and related costs of each travel
occurrence, including the proportion funded with state general
fund/general purpose revenues, the proportion funded with state
restricted revenues, the proportion funded with federal revenues,
and the proportion funded with other revenues.
(f) A total of all out-of-state travel funded for the
immediately preceding fiscal year.
DEPARTMENTWIDE ADMINISTRATION
Sec. 301. From funds appropriated for worker's compensation,
the department may make payments in lieu of worker's compensation
payments for wage and salary and related fringe benefits for
employees who return to work under limited duty assignments.
Sec. 303. The department is prohibited from requiring first-
party payment from individuals or families with a taxable income of
$10,000.00 or less for mental health services for determinations
made in accordance with section 818 of the mental health code, 1974
PA 258, MCL 330.1818.
Sec. 313. By November 1, 2005, the department shall report to
the house of representatives and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget director on activities undertaken by
the department to address compulsive gambling.
MENTAL HEALTH/SUBSTANCE ABUSE SERVICES ADMINISTRATION AND SPECIAL
PROJECTS
Sec. 350. The department may enter into a contract with the
protection and advocacy service, authorized under section 931 of
the mental health code, 1974 PA 258, MCL 330.1931, or a similar
organization to provide legal services for purposes of gaining and
maintaining occupancy in a community living arrangement which is
under lease or contract with the department or a community mental
health services program to provide services to persons with mental
illness or developmental disability.
COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS
Sec. 401. Funds appropriated in part 1 are intended to support
a system of comprehensive community mental health services under
the full authority and responsibility of local CMHSPs or specialty
prepaid health plans. The department shall ensure that each CMHSP
or specialty prepaid health plan provides all of the following:
(a) A system of single entry and single exit.
(b) A complete array of mental health services which shall
include, but shall not be limited to, all of the following
services: residential and other individualized living arrangements,
outpatient services, acute inpatient services, and long-term, 24-
hour inpatient care in a structured, secure environment.
(c) The coordination of inpatient and outpatient hospital
services through agreements with state-operated psychiatric
hospitals, units, and centers in facilities owned or leased by the
state, and privately-owned hospitals, units, and centers licensed
by the state pursuant to sections 134 through 149b of the mental
health code, 1974 PA 258, MCL 330.1134 to 330.1149b.
(d) Individualized plans of service that are sufficient to
meet the needs of individuals, including those discharged from
psychiatric hospitals or centers, and that ensure the full range of
recipient needs is addressed through the CMHSP's or specialty
prepaid health plan's program or through assistance with locating
and obtaining services to meet these needs.
(e) A system of case management to monitor and ensure the
provision of services consistent with the individualized plan of
services or supports.
(f) A system of continuous quality improvement.
(g) A system to monitor and evaluate the mental health
services provided.
(h) A system that serves at-risk and delinquent youth as
required under the provisions of the mental health code, 1974 PA
258, MCL 330.1001 to 330.2106.
Sec. 402. (1) From funds appropriated in part 1, final
authorizations to CMHSPs or specialty prepaid health plans shall be
made upon the execution of contracts between the department and
CMHSPs or specialty prepaid health plans. The contracts shall
contain an approved plan and budget as well as policies and
procedures governing the obligations and responsibilities of both
parties to the contracts. Each contract with a CMHSP or specialty
prepaid health plan that the department is authorized to enter into
under this subsection shall include a provision that the contract
is not valid unless the total dollar obligation for all of the
contracts between the department and the CMHSPs or specialty
prepaid health plans entered into under this subsection for fiscal
year 2005-2006 does not exceed the amount of money appropriated in
part 1 for the contracts authorized under this subsection.
(2) The department shall immediately report to the senate and
house of representatives appropriations subcommittees on community
health, the senate and house fiscal agencies, and the state budget
director if either of the following occurs:
(a) Any new contracts with CMHSPs or specialty prepaid health
plans that would affect rates or expenditures are enacted.
(b) Any amendments to contracts with CMHSPs or specialty
prepaid health plans that would affect rates or expenditures are
enacted.
(3) The report required by subsection (2) shall include
information about the changes and their effects on rates and
expenditures.
Sec. 403. From the funds appropriated in part 1 for
multicultural services, the department shall ensure that CMHSPs or
specialty prepaid health plans continue contracts with
multicultural services providers.
Sec. 404. (1) Not later than May 31 of each fiscal year, the
department shall provide a report on the community mental health
services programs to the members of the house of representatives
and senate appropriations subcommittees on community health, the
house and senate fiscal agencies, and the state budget director
that includes the information required by this section.
(2) The report shall contain information for each CMHSP or
specialty prepaid health plan and a statewide summary, each of
which shall include at least the following information:
(a) A demographic description of service recipients which,
minimally, shall include reimbursement eligibility, client
population, age, ethnicity, housing arrangements, and diagnosis.
(b) Per capita expenditures by client population group.
(c) Financial information which, minimally, shall include a
description of funding authorized; expenditures by client group and
fund source; and cost information by service category, including
administration. Service category shall include all department
approved services.
(d) Data describing service outcomes which shall include, but
not be limited to, an evaluation of consumer satisfaction, consumer
choice, and quality of life concerns including, but not limited to,
housing and employment.
(e) The number of second opinions requested under the code and
the determination of any appeals.
(f) An analysis of information provided by community mental
health service programs in response to the needs assessment
requirements of the mental health code, including information about
the number of persons in the service delivery system who have
requested and are clinically appropriate for different services.
(g) Lapses and carryforwards during fiscal year 2004-2005 for
CMHSPs or specialty prepaid health plans.
(h) Contracts for mental health services entered into by
CMHSPs or specialty prepaid health plans with providers, including
amount and rates, organized by type of service provided.
(i) Information on the community mental health Medicaid
managed care program, including, but not limited to, both of the
following:
(i) Expenditures by each CMHSP or specialty prepaid health plan
organized by Medicaid eligibility group, including per eligible
individual expenditure averages.
(ii) Performance indicator information required to be submitted
to the department in the contracts with CMHSPs or specialty prepaid
health plans.
(3) The department shall include data reporting requirements
listed in subsection (2) in the annual contract with each
individual CMHSP or specialty prepaid health plan.
(4) The department shall take all reasonable actions to ensure
that the data required are complete and consistent among all CMHSPs
or specialty prepaid health plans.
Sec. 405. It is the intent of the legislature that the
employee wage pass-through funded in previous years to the
community mental health services programs for direct care workers
in local residential settings and for paraprofessional and other
nonprofessional direct care workers in day programs, supported
employment, and other vocational programs shall continue to be paid
to direct care workers.
Sec. 406. (1) The funds appropriated in part 1 for the state
disability assistance substance abuse services program shall be
used to support per diem room and board payments in substance abuse
residential facilities. Eligibility of clients for the state
disability assistance substance abuse services program shall
include needy persons 18 years of age or older, or emancipated
minors, who reside in a substance abuse treatment center.
(2) The department shall reimburse all licensed substance
abuse programs eligible to participate in the program at a rate
equivalent to that paid by the department of human services to
adult foster care providers. Programs accredited by department-
approved accrediting organizations shall be reimbursed at the
personal care rate, while all other eligible programs shall be
reimbursed at the domiciliary care rate.
Sec. 407. (1) The amount appropriated in part 1 for substance
abuse prevention, education, and treatment grants shall be expended
for contracting with coordinating agencies. Coordinating agencies
shall work with the CMHSPs or specialty prepaid health plans to
coordinate the care and services provided to individuals with both
mental illness and substance abuse diagnoses.
(2) The department shall establish a fee schedule for
coordinating agencies that provide substance abuse services and
charge participants in accordance with their ability to pay.
Sec. 408. (1) By April 15, 2006, the department shall report
the following data from fiscal year 2004-2005 on substance abuse
prevention, education, and treatment programs to the senate and
house of representatives appropriations subcommittees on community
health, the senate and house fiscal agencies, and the state budget
office:
(a) Expenditures stratified by coordinating agency, by central
diagnosis and referral agency, by fund source, by subcontractor, by
population served, and by service type. Additionally, data on
administrative expenditures by coordinating agency and by
subcontractor shall be reported.
(b) Expenditures per state client, with data on the
distribution of expenditures reported using a histogram approach.
(c) Number of services provided by central diagnosis and
referral agency, by subcontractor, and by service type.
Additionally, data on length of stay, referral source, and
participation in other state programs.
(d) Collections from other first- or third-party payers,
private donations, or other state or local programs, by
coordinating agency, by subcontractor, by population served, and by
service type.
(2) The department shall take all reasonable actions to ensure
that the required data reported are complete and consistent among
all coordinating agencies.
Sec. 409. The funding in part 1 for substance abuse services
shall be distributed in a manner that provides priority to service
providers that furnish child care services to clients with
children.
Sec. 410. The department shall assure that substance abuse
treatment is provided to applicants and recipients of public
assistance through the department of human services who are
required to obtain substance abuse treatment as a condition of
eligibility for public assistance.
Sec. 411. (1) The department shall ensure that each contract
with a CMHSP or specialty prepaid health plan requires the CMHSP or
specialty prepaid health plan to implement programs to encourage
diversion of persons with serious mental illness, serious emotional
disturbance, or developmental disability from possible jail
incarceration when appropriate.
(2) Each CMHSP or specialty prepaid health plan shall have
jail diversion services and shall work toward establishing working
relationships with representative staff of local law enforcement
agencies, including county prosecutors' offices, county sheriffs'
offices, county jails, municipal police agencies, municipal
detention facilities, and the courts. Written interagency
agreements describing what services each participating agency is
prepared to commit to the local jail diversion effort and the
procedures to be used by local law enforcement agencies to access
mental health jail diversion services are strongly encouraged.
Sec. 412. The department shall contract directly with the
Salvation Army harbor light program to provide non-Medicaid
substance abuse services at not less than the amount contracted for
in fiscal year 2004-2005.
Sec. 414. Medicaid substance abuse treatment services shall be
managed by selected CMHSPs or specialty prepaid health plans
pursuant to the centers for Medicare and Medicaid services'
approval of Michigan's 1915(b) waiver request to implement a
managed care plan for specialized substance abuse services. The
selected CMHSPs or specialty prepaid health plans shall receive a
capitated payment on a per eligible per month basis to assure
provision of medically necessary substance abuse services to all
beneficiaries who require those services. The selected CMHSPs or
specialty prepaid health plans shall be responsible for the
reimbursement of claims for specialized substance abuse services.
The CMHSPs or specialty prepaid health plans that are not
coordinating agencies may continue to contract with a coordinating
agency. Any alternative arrangement must be based on client service
needs and have prior approval from the department.
Sec. 418. On or before the tenth of each month, the department
shall report to the senate and house of representatives
appropriations subcommittees on community health, the senate and
house fiscal agencies, and the state budget director on the amount
of funding paid to the CMHSPs or specialty prepaid health plans to
support the Medicaid managed mental health care program in that
month. The information shall include the total paid to each CMHSP
or specialty prepaid health plan, per capita rate paid for each
eligibility group for each CMHSP or specialty prepaid health plan,
and number of cases in each eligibility group for each CMHSP or
specialty prepaid health plan, and year-to-date summary of
eligibles and expenditures for the Medicaid managed mental health
care program.
Sec. 423. The department shall work cooperatively with the
departments of human services, corrections, education, state
police, and military and veterans affairs to coordinate and improve
the delivery of substance abuse prevention, education, and
treatment programs within existing appropriations.
Sec. 424. Each community mental health services program or
specialty prepaid health plan that contracts with the department to
provide services to the Medicaid population shall adhere to the
following timely claims processing and payment procedure for claims
submitted by health professionals and facilities:
(a) A "clean claim" as described in section 111i of the social
welfare act, 1939 PA 280, MCL 400.111i, must be paid within 45 days
after receipt of the claim by the community mental health services
program or specialty prepaid health plan. A clean claim that is not
paid within this time frame shall bear simple interest at a rate of
12% per annum.
(b) A community mental health services program or specialty
prepaid 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.
(c) 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 community mental
health services program or specialty prepaid health plan shall pay
the claim within 30 days after the defect is corrected.
Sec. 425. By April 1, 2006, the department, in conjunction
with the department of corrections, shall report the following data
from fiscal year 2004-2005 on mental health and substance abuse
services to the house of representatives and senate appropriations
subcommittees on community health and corrections, the house and
senate fiscal agencies, and the state budget office:
(a) The number of prisoners receiving substance abuse
services, which shall include a description and breakdown of the
type of substance abuse services provided to prisoners.
(b) The number of prisoners with a primary diagnosis of mental
illness and the number of such prisoners receiving mental health
services, which shall include a description and breakdown,
minimally encompassing the categories of inpatient, residential,
and outpatient care, of the type of mental health services provided
to those prisoners.
(c) The number of prisoners with a primary diagnosis of mental
illness and receiving substance abuse services, which shall include
a description and breakdown, minimally encompassing the categories
of inpatient, residential, and outpatient care, of the type of
treatment provided to those prisoners.
(d) Data indicating if prisoners receiving mental health
services for a primary diagnosis of mental illness were previously
hospitalized in a state psychiatric hospital for persons with
mental illness.
(e) Data indicating if prisoners with a primary diagnosis of
mental illness and receiving substance abuse services were
previously hospitalized in a state psychiatric hospital for persons
with mental illness.
Sec. 428. (1) Each CMHSP and affiliation of CMHSPs shall
provide, from internal resources, local funds to be used as a bona
fide part of the state match required under the Medicaid program in
order to increase capitation rates for CMHSPs and affiliations of
CMHSPs. These funds shall not include either state funds received
by a CMHSP for services provided to non-Medicaid recipients or the
state matching portion of the Medicaid capitation payments made to
a CMHSP or an affiliation of CMHSPs.
(2) The distribution of the aforementioned increases in the
capitation payment rates, if any, shall be based on a formula
developed by a committee established by the department, including
representatives from CMHSPs or affiliations of CMHSPs and
department staff.
Sec. 435. A county required under the provisions of the mental
health code, 1974 PA 258, MCL 330.1001 to 330.2106, to provide
matching funds to a CMHSP for mental health services rendered to
residents in its jurisdiction shall pay the matching funds in equal
installments on not less than a quarterly basis throughout the
fiscal year, with the first payment being made by October 1, 2005.
Sec. 439. (1) It is the intent of the legislature that the
department, in conjunction with CMHSPs, support pilot projects that
facilitate the movement of adults with mental illness from state
psychiatric hospitals to community residential settings.
(2) The purpose of the pilot projects is to encourage the
placement of persons with mental illness in community residential
settings who may require any of the following:
(a) A secured and supervised living environment.
(b) Assistance in taking prescribed medications.
(c) Intensive case management services.
(d) Assertive community treatment team services.
(e) Alcohol or substance abuse treatment and counseling.
(f) Individual or group therapy.
(g) Day or partial day programming activities.
(h) Vocational, educational, or self-help training or
activities.
(i) Other services prescribed to treat a person's mental
illness to prevent the need for hospitalization.
(3) The pilot projects described in this section shall be
completely voluntary.
(4) The department shall provide semiannual reports to the
house of representatives and senate appropriations subcommittees on
community health, the state budget office, and the house and senate
fiscal agencies as to any activities undertaken by the department
and CMHSPs for pilot projects implemented under this section.
Sec. 442. (1) The department shall assure that persons
enrolled in the Medicaid adult benefits waiver program shall
receive mental health services under the priority population
sections of the mental health code, 1974 PA 258, MCL 330.1001 to
330.2106.
(2) Capitation payments to CMHSPs or specialty prepaid health
plans for persons who become enrolled in the Medicaid adult
benefits waiver program shall be made using the same rate
methodology as payments for the current Medicaid beneficiaries.
(3) If enrollment in the Medicaid adult benefits waiver
program does not achieve expectations and the funding appropriated
for the Medicaid adult benefits waiver program for specialty
services is not expended, the general fund balance shall be
transferred back to the community mental health non-Medicaid
services line. The department shall report quarterly to the senate
and house of representatives appropriations subcommittees on
community health a summary of eligible expenditures for the
Medicaid adult benefits waiver program by CMHSPs or specialty
prepaid health plans.
Sec. 450. The department shall continue a work group comprised
of CMHSPs or specialty prepaid health plans and departmental staff
to recommend strategies to streamline audit and reporting
requirements for CMHSPs or specialty prepaid health plans. The
department shall report on the recommendations of the work group by
March 31, 2006 to the house of representatives and senate
appropriations subcommittees on community health, the house fiscal
agency, the senate fiscal agency, and the state budget director.
Sec. 452. Unless otherwise authorized by law, the department
shall not implement retroactively any policy that would lead to a
negative financial impact on community mental health services
programs or prepaid inpatient health plans.
Sec. 455. From the funds appropriated in part 1 for community
mental health non-Medicaid services, the department shall ensure
that for any payments or spending authorizations made to a CMHSP
established by a single charter county that has totally situated
within that county a city having a population of at least 500,000,
a total of no more than 3% of the aggregate payments or
authorization shall be expended by the CMHSP or by the county, or
both, for administrative costs or county central services costs
allocated by the county to the CMHSP. The department shall specify,
in its contracts with the CMHSP, the definition of allowable
administrative costs and the method for allocating those costs for
reporting purposes.
Sec. 456. The prepaid inpatient health plans shall honor
consumer choice to the fullest extent possible when providing
Medicaid mental health services and support programs for
individuals with mental illness, developmental disabilities, or
substance abuse issues. Consumer choices shall include skill
building assistance and work preparatory services provided in
accredited community based rehabilitation organizations, as well as
supported and integrated employment services. The prepaid inpatient
health plans shall not arbitrarily eliminate any choices from the
array of services available to consumers without reasonable
justification that those services are not in the consumer's best
interest.
Sec. 457. The department shall assure that implementation of
the quality assurance assessment program for community mental
health prepaid inpatient health plans shall not result in any net
reduction in revenue for community mental health services. If the
quality assurance assessment program is not implemented, if it is
implemented and does not generate the anticipated revenue, or if it
is reduced or eliminated at a later date, the department shall
present a plan on how the projected general fund/general purpose
savings will be achieved to the house of representatives and senate
appropriations subcommittees on community health.
Sec. 458. By April 15, 2006, the department shall provide each
of the following to the house of representatives and senate
appropriations subcommittees on community health, the house and
senate fiscal agencies, and the state budget director:
(a) An updated plan for implementing recommendations of the
Michigan mental health commission made in the commission's report
dated October 15, 2004.
(b) A report that evaluates the cost-benefit of establishing
secure residential facilities of fewer than 17 beds for adults with
serious mental illness, modeled after such programming in Oregon or
other states.
(c) In conjunction with the state court administrator's
office, a report that evaluates the cost-benefit of establishing a
specialized mental health court program that diverts adults with
serious mental illness alleged to have committed an offense deemed
nonserious into treatment prior to the filing of any charges.
Sec. 459. (1) If a community mental health services program,
currently established as a community mental health agency under MCL
330.1204, is required by statute to become a community mental
health authority by a specified date in order to be eligible to
continue to contract with the department of community health as a
specialty prepaid health plan, or to continue to receive state
financial support as a community mental health services program,
the department of community health shall monitor the progress of
the community mental health services program to ensure that it is
able to properly operate as a community mental health authority by
the required specified date. In carrying out its monitoring
activities, the department of community health may require such
plans, reports, and other evidence from the community mental health
services program that it deems necessary to properly monitor and
evaluate the progress of the community mental health services
program toward the establishment and operation of a community
mental health authority. Such plans, reports, and evidence shall
include, at the minimum, the following:
(a) A copy of the enabling resolution adopted by the board of
commissioners creating the authority, addressing the required
provisions set forth in MCL 330.1205, and duly filed with the
secretary of state and the county clerk of the county establishing
the authority.
(b) A detailed transition plan, describing how the community
mental health services program proposes to carry out
administrative, personnel, finance, accounting, management
information, data reporting, regulatory compliance, quality
assurance, recipient rights, clinical services, and any other
managerial tasks or activities necessary for the successful
operation of a community mental health authority.
(2) If the department of community health determines that, in
its judgment, the community mental health services program is not
making sufficient progress to ensure a functioning community mental
health authority by the date specified in statute, the department
of community health may withhold such current year appropriated
funds as it deems appropriate from the community mental health
services program to assure that the department of community health
has sufficient capacity to directly operate necessary programs and
services within the county should the community mental health
authority fail to become fully operational on the required
specified date.
STATE PSYCHIATRIC HOSPITALS, CENTERS FOR PERSONS WITH DEVELOPMENTAL
DISABILITIES, AND FORENSIC AND PRISON MENTAL HEALTH SERVICES
Sec. 601. (1) In funding of staff in the financial support
division, reimbursement, and billing and collection sections,
priority shall be given to obtaining third-party payments for
services. Collection from individual recipients of services and
their families shall be handled in a sensitive and nonharassing
manner.
(2) The department shall continue a revenue recapture project
to generate additional revenues from third parties related to cases
that have been closed or are inactive. Revenues collected through
project efforts are appropriated to the department for departmental
costs and contractual fees associated with these retroactive
collections and to improve ongoing departmental reimbursement
management functions.
Sec. 602. Unexpended and unencumbered amounts and accompanying
expenditure authorizations up to $1,000,000.00 remaining on
September 30, 2006 from pay telephone revenues and the amounts
appropriated in part 1 for gifts and bequests for patient living
and treatment environments shall be carried forward for 1 fiscal
year. The purpose of gifts and bequests for patient living and
treatment environments is to use additional private funds to
provide specific enhancements for individuals residing at state-
operated facilities. Use of the gifts and bequests shall be
consistent with the stipulation of the donor. The expected
completion date for the use of gifts and bequests donations is
within 3 years unless otherwise stipulated by the donor.
Sec. 603. The funds appropriated in part 1 for forensic mental
health services provided to the department of corrections are in
accordance with the interdepartmental plan developed in cooperation
with the department of corrections. The department is authorized to
receive and expend funds from the department of corrections in
addition to the appropriations in part 1 to fulfill the obligations
outlined in the interdepartmental agreements.
Sec. 604. (1) The CMHSPs or specialty prepaid health plans
shall provide semiannual reports to the department on the following
information:
(a) The number of days of care purchased from state hospitals
and centers.
(b) The number of days of care purchased from private
hospitals in lieu of purchasing days of care from state hospitals
and centers.
(c) The number and type of alternative placements to state
hospitals and centers other than private hospitals.
(d) Waiting lists for placements in state hospitals and
centers.
(2) The department shall semiannually report the information
in subsection (1) to the house of representatives and senate
appropriations subcommittees on community health, the house and
senate fiscal agencies, and the state budget director.
Sec. 605. (1) The department shall not implement any closures
or consolidations of state hospitals, centers, or agencies until
CMHSPs or specialty prepaid health plans have programs and services
in place for those persons currently in those facilities and a plan
for service provision for those persons who would have been
admitted to those facilities.
(2) All closures or consolidations are dependent upon adequate
department-approved CMHSP plans that include a discharge and
aftercare plan for each person currently in the facility. A
discharge and aftercare plan shall address the person's housing
needs. A homeless shelter or similar temporary shelter arrangements
are inadequate to meet the person's housing needs.
(3) Four months after the certification of closure required in
section 19(6) of the state employees' retirement act, 1943 PA 240,
MCL 38.19, the department shall provide a closure plan to the house
of representatives and senate appropriations subcommittees on
community health and the state budget director.
(4) Upon the closure of state-run operations and after
transitional costs have been paid, the remaining balances of funds
appropriated for that operation shall be transferred to CMHSPs or
specialty prepaid health plans responsible for providing services
for persons previously served by the operations.
Sec. 606. The department may collect revenue for patient
reimbursement from first- and third-party payers, including
Medicaid and local county CMHSP payers, to cover the cost of
placement in state hospitals and centers. The department is
authorized to adjust financing sources for patient reimbursement
based on actual revenues earned. If the revenue collected exceeds
current year expenditures, the revenue may be carried forward with
approval of the state budget director. The revenue carried forward
shall be used as a first source of funds in the subsequent year.
PUBLIC HEALTH ADMINISTRATION
Sec. 650. The department shall communicate the annual public
health consumption advisory for sportfish. The department shall, at
a minimum, post the advisory on the Internet and make the
information in the advisory available to the clients of the women,
infants, and children special supplemental nutrition program.
Sec. 651. The funds appropriated in part 1 shall not be
expended for a surgeon general position.
HEALTH POLICY, REGULATION AND PROFESSIONS
Sec. 704. The department shall continue to work with grantees
supported through the appropriation in part 1 for emergency medical
services grants and contracts to ensure that a sufficient number of
qualified emergency medical services personnel exist to serve rural
areas of the state.
Sec. 705. The department shall post on the Internet the
executive summary of the latest inspection for each licensed
nursing home.
Sec. 706. When hiring any new nursing home inspectors funded
through appropriations in part 1, the department shall make every
effort to hire individuals with past experience in the long-term
care industry.
Sec. 707. The funds appropriated in part 1 for the nurse
scholarship program, established in section 16315 of the public
health code, 1978 PA 368, MCL 333.16315, shall be used to increase
the number of nurses practicing in Michigan. The board of nursing
is encouraged to structure scholarships funded under this article
in a manner that rewards recipients who intend to practice nursing
in Michigan. In addition, the department and the board of nursing
shall work cooperatively with the Michigan higher education
assistance authority to coordinate scholarship assistance with
scholarships provided pursuant to the Michigan nursing scholarship
act, 2002 PA 591, MCL 390.1181 to 390.1189.
Sec. 708. Nursing facilities shall report in the quarterly
staff report to the department, the total patient care hours
provided each month, by state licensure and certification
classification, and the percentage of pool staff, by state
licensure and certification classification, used each month during
the preceding quarter. The department shall make available to the
public, the quarterly staff report compiled for all facilities
including the total patient care hours and the percentage of pool
staff used, by classification.
Sec. 709. The funds appropriated in part 1 for the Michigan
essential health care provider program may also provide loan
repayment for dentists that fit the criteria established by part 27
of the public health code, 1978 PA 368, MCL 333.2701 to 333.2727.
Sec. 710. From the funds appropriated in part 1 for primary
care services, an amount not to exceed $2,296,000.00 is
appropriated to enhance the service capacity of the federally
qualified health centers and other health centers which are similar
to federally qualified health centers.
Sec. 711. The department may make available to interested
entities customized listings of nonconfidential information in its
possession, such as names and addresses of licensees. The
department may establish and collect a reasonable charge to provide
this service. The revenue received from this service shall be used
to offset expenses to provide the service. Any balance of this
revenue collected and unexpended at the end of the fiscal year
shall revert to the appropriate restricted fund.
INFECTIOUS DISEASE CONTROL
Sec. 801. In the expenditure of funds appropriated in part 1
for AIDS programs, the department and its subcontractors shall
ensure that adolescents receive priority for prevention, education,
and outreach services.
Sec. 802. In developing and implementing AIDS provider
education activities, the department may provide funding to the
Michigan state medical society to serve as lead agency to convene a
consortium of health care providers, to design needed educational
efforts, to fund other statewide provider groups, and to assure
implementation of these efforts, in accordance with a plan approved
by the department.
Sec. 803. The department shall continue the AIDS drug
assistance program maintaining the prior year eligibility criteria
and drug formulary. This section is not intended to prohibit the
department from providing assistance for improved AIDS treatment
medications.
LOCAL HEALTH ADMINISTRATION AND GRANTS
Sec. 901. The amount appropriated in part 1 for implementation
of the 1993 amendments to sections 9161, 16221, 16226, 17014,
17015, and 17515 of the public health code, 1978 PA 368, MCL
333.9161, 333.16221, 333.16226, 333.17014, 333.17015, and
333.17515, shall reimburse local health departments for costs
incurred related to implementation of section 17015(18) of the
public health code, 1978 PA 368, MCL 333.17015.
Sec. 902. If a county that has participated in a district
health department or an associated arrangement with other local
health departments takes action to cease to participate in such an
arrangement after October 1, 2005, the department shall have the
authority to assess a penalty from the local health department's
operational accounts in an amount equal to no more than 5% of the
local health department's local public health operations funding.
This penalty shall only be assessed to the local county that
requests the dissolution of the health department.
Sec. 903. The department shall provide a report annually to
the house of representatives and senate appropriations
subcommittees on community health, the senate and house fiscal
agencies, and the state budget director on the expenditures and
activities undertaken by the lead abatement program. The report
shall include, but is not limited to, a funding allocation
schedule, expenditures by category of expenditure and by
subcontractor, revenues received, description of program elements,
and description of program accomplishments and progress.
Sec. 904. (1) Funds appropriated in part 1 for local public
health operations shall be prospectively allocated to local health
departments to support immunizations, infectious disease control,
sexually transmitted disease control and prevention, food
protection, public water supply, private groundwater supply, and
on-site sewage management. Food protection shall be provided in
consultation with the Michigan department of agriculture. Public
water supply, private groundwater supply, and on-site sewage
management shall be provided in consultation with the Michigan
department of environmental quality.
(2) Local public health departments will be held to
contractual standards for the services in subsection (1).
(3) Distributions in subsection (1) shall be made only to
counties that maintain local spending in fiscal year 2005-2006 of
at least the amount expended in fiscal year 1992-1993 for the
services described in subsection (1).
(4) By April 1, 2006, the department shall make available upon
request a report to the senate or house of representatives
appropriations subcommittee on community health, the senate or
house fiscal agency, or the state budget director on the planned
allocation of the funds appropriated for local public health
operations.
CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION
Sec. 1003. Funds appropriated in part 1 for the Alzheimer's
information network shall be used to provide information and
referral services through regional networks for persons with
Alzheimer's disease or related disorders, their families, and
health care providers.
Sec. 1006. In spending the funds appropriated in part 1 for
the smoking prevention program, priority shall be given to
prevention and smoking cessation programs for pregnant women, women
with young children, and adolescents.
Sec. 1007. (1) The funds appropriated in part 1 for violence
prevention shall be used for, but not be limited to, the following:
(a) Programs aimed at the prevention of spouse, partner, or
child abuse and rape.
(b) Programs aimed at the prevention of workplace violence.
(2) In awarding grants from the amounts appropriated in part 1
for violence prevention, the department shall give equal
consideration to public and private nonprofit applicants.
(3) From the funds appropriated in part 1 for violence
prevention, the department may include local school districts as
recipients of the funds for family violence prevention programs.
Sec. 1009. From the funds appropriated in part 1 for the
diabetes and kidney program, a portion of the funds may be
allocated to the National Kidney Foundation of Michigan for kidney
disease prevention programming including early identification and
education programs and kidney disease prevention demonstration
projects.
Sec. 1019. From the funds appropriated in part 1 for chronic
disease prevention, $50,000.00 shall be allocated for stroke
prevention, education, and outreach. The objectives of the program
shall include education to assist persons in identifying risk
factors, and education to assist persons in the early
identification of the occurrence of a stroke in order to minimize
stroke damage.
FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES
Sec. 1101. The department shall review the basis for the
distribution of funds to local health departments and other public
and private agencies for the women, infants, and children food
supplement program; family planning; and prenatal care outreach and
service delivery support program and indicate the basis upon which
any projected underexpenditures by local public and private
agencies shall be reallocated to other local agencies that
demonstrate need.
Sec. 1104. Before April 1, 2006, the department shall submit a
report to the house and senate fiscal agencies and the state budget
director on planned allocations from the amounts appropriated in
part 1 for local MCH services, prenatal care outreach and service
delivery support, family planning local agreements, and pregnancy
prevention programs. Using applicable federal definitions, the
report shall include information on all of the following:
(a) Funding allocations.
(b) Actual number of women, children, and/or adolescents
served and amounts expended for each group for the fiscal year
2004-2005.
Sec. 1105. For all programs for which an appropriation is made
in part 1, the department shall contract with those local agencies
best able to serve clients. Factors to be used by the department in
evaluating agencies under this section shall include ability to
serve high-risk population groups; ability to serve low-income
clients, where applicable; availability of, and access to, service
sites; management efficiency; and ability to meet federal
standards, when applicable.
Sec. 1106. Each family planning program receiving federal
title X family planning funds shall be in compliance with all
performance and quality assurance indicators that the United States
bureau of community health services specifies in the family
planning annual report. An agency not in compliance with the
indicators shall not receive supplemental or reallocated funds.
Sec. 1106a. (1) Federal abstinence money expended in part 1
for the purpose of promoting abstinence education shall provide
abstinence education to teenagers most likely to engage in high-
risk behavior as their primary focus, and may include programs that
include 9- to 17-year-olds. Programs funded must meet all of the
following guidelines:
(a) Teaches the gains to be realized by abstaining from sexual
activity.
(b) Teaches abstinence from sexual activity outside of
marriage as the expected standard for all school-age children.
(c) Teaches that abstinence is the only certain way to avoid
out-of-wedlock pregnancy, sexually transmitted diseases, and other
health problems.
(d) Teaches that a monogamous relationship in the context of
marriage is the expected standard of human sexual activity.
(e) Teaches that sexual activity outside of marriage is likely
to have harmful effects.
(f) Teaches that bearing children out of wedlock is likely to
have harmful consequences.
(g) Teaches young people how to avoid sexual advances and how
alcohol and drug use increases vulnerability to sexual advances.
(h) Teaches the importance of attaining self-sufficiency
before engaging in sexual activity.
(2) Coalitions, organizations, and programs that do not
provide contraceptives to minors and demonstrate efforts to include
parental involvement as a means of reducing the risk of teens
becoming pregnant shall be given priority in the allocations of
funds.
(3) Programs and organizations that meet the guidelines of
subsection (1) and criteria of subsection (2) shall have the option
of receiving all or part of their funds directly from the
department of community health.
Sec. 1107. Of the amount appropriated in part 1 for prenatal
care outreach and service delivery support, not more than 9% shall
be expended for local administration, data processing, and
evaluation.
Sec. 1108. The funds appropriated in part 1 for pregnancy
prevention programs shall not be used to provide abortion
counseling, referrals, or services.
Sec. 1110. Agencies that currently receive pregnancy
prevention funds and either receive or are eligible for other
family planning funds shall have the option of receiving all of
their family planning funds directly from the department of
community health and be designated as delegate agencies.
Sec. 1111. The department shall allocate no less than 88% of
the funds appropriated in part 1 for family planning local
agreements and the pregnancy prevention program for the direct
provision of family planning/pregnancy prevention services.
Sec. 1112. From the funds appropriated in part 1 for prenatal
care outreach and service delivery support, the department shall
allocate at least $1,000,000.00 to communities with high infant
mortality rates.
Sec. 1113. From the funds appropriated in part 1 for special
projects, $210,000.00 shall be allocated to free health clinics
operating in the state. The department shall work with Free Clinics
of Michigan to determine an equitable distribution of funding. For
the purpose of this appropriation, free health clinics are
nonprofit organizations that use volunteer health professionals to
provide care to uninsured individuals.
Sec. 1114. (1) The director shall immediately seek any federal
waivers necessary to comply with this section for the current
project period and shall include the requirements of this section
in future federal family planning and pregnancy prevention project
grant applications. If the necessary waivers are not obtained, this
section shall not be implemented. If the necessary waivers are
obtained, this section shall be implemented immediately for any
unrestricted family planning or pregnancy prevention funds.
(2) The department shall do all of the following:
(a) Take appropriate measures to ensure that family planning
and pregnancy prevention funds are used only for the purpose of
protecting and promoting the public health.
(b) Take precautions to ensure that family planning and
pregnancy prevention funds are not used in a way that may promote
or encourage sexual activity outside of marriage.
(c) Require every service provider to discourage sexual
activity outside of marriage by emphasizing the increased health
risks and fiscal implications of nonmarital sexual activity to the
individual and to the state.
(3) In order to comply with state and federal mandates on
abortion options counseling and referrals, the department shall do
all of the following with regard to family planning and pregnancy
prevention funding:
(a) Ensure that state and federal funds that have conflicting
mandates regarding abortion counseling and referral services are
not commingled.
(b) Give priority consideration to agencies, organizations,
facilities, or service providers that have a clearly stated policy
either to offer, or to refuse to offer, abortion options counseling
and referrals and that are seeking either state or federal family
planning and pregnancy prevention funding but not both state and
federal funding.
(c) Require agencies, organizations, facilities, or service
providers that seek both federal and state family planning and
pregnancy prevention funding to submit separate funding requests
for state and federal funds, to ensure that state and federal funds
are not commingled, and to present a clear explanation to the
department on how abortion counseling and referral services will
comply with conflicting state and federal laws.
(4) The department shall require any agency, organization,
facility, or service provider that receives family planning or
pregnancy prevention funding to increase male participation rates
annually. The department may provide exemptions to programs,
agencies, facilities, or service providers that target female users
only. The statewide participation rate by males shall be no less
than 5% by October 1, 2008, 10% by October 1, 2010, 15% by October
1, 2012, and 20% by October 1, 2015. The department shall deny
funding to any agency, organization, facility, or service provider
that fails to increase male participation rates for 2 consecutive
years. If the director is unable to receive a federal waiver to
comply with this requirement for the current project period, the
male participation targets shall commence 3 years from the
beginning date of the next project period.
(5) Beginning January 1, 2007, the department shall determine,
and publish for the public, the costs incurred for each of the
following including a breakdown of the federal funds, state funds,
public funds, money paid by a third party payer, and any other
source of funding used to cover those costs:
(a) The annual costs associated with providing family
planning, pregnancy prevention, and sexually transmitted disease
prevention services to unmarried individuals.
(b) The annual costs associated with providing family
planning, pregnancy prevention, and sexually transmitted disease
prevention services to married individuals.
(c) The annual costs incurred to treat unmarried individuals
who have contracted a sexually transmitted disease.
(d) The annual costs incurred in providing prenatal and
pregnancy related health care services to unmarried individuals.
(6) In order to promote family participation in family
planning and pregnancy prevention, as required by federal
guidelines, at least 50% of the funding expended for informational
and educational programs designed to achieve community awareness or
understanding of services available to minors under the age of 18
shall be directed to the parents of the targeted minors. Funds
shall not be expended to support the public display or distribution
of a family planning drug or device where minors are likely to be
present unless parents are given clear notice of the display and
distribution.
Sec. 1129. The department shall provide a report annually to
the house of representatives and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget director on the number of children
with elevated blood lead levels from information available to the
department. The report shall provide the information by county,
shall include the level of blood lead reported, and shall indicate
the sources of the information.
Sec. 1133. The department shall release infant mortality rate
data to all local public health departments no later than 48 hours
prior to releasing infant mortality rate data to the public.
Sec. 1135. (1) Provision of the school health education
curriculum, such as the Michigan model or another comprehensive
school health education curriculum, shall be in accordance with the
health education goals established by the Michigan model for the
comprehensive school health education state steering committee. The
state steering committee shall be comprised of a representative
from each of the following offices and departments:
(a) The department of education.
(b) The department of community health.
(c) The health administration in the department of community
health.
(d) The bureau of mental health and substance abuse services
in the department of community health.
(e) The department of human services.
(f) The department of state police.
(2) Upon written or oral request, a pupil not less than 18
years of age or a parent or legal guardian of a pupil less than 18
years of age, within a reasonable period of time after the request
is made, shall be informed of the content of a course in the health
education curriculum and may examine textbooks and other classroom
materials that are provided to the pupil or materials that are
presented to the pupil in the classroom. This subsection does not
require a school board to permit pupil or parental examination of
test questions and answers, scoring keys, or other examination
instruments or data used to administer an academic examination.
WOMEN, INFANTS, AND CHILDREN FOOD AND NUTRITION PROGRAM
Sec. 1151. The department may work with local participating
agencies to define local annual contributions for the farmer's
market nutrition program, project FRESH, to enable the department
to request federal matching funds based on local commitment of
funds.
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Sec. 1201. Funds appropriated in part 1 for medical care and
treatment of children with special health care needs shall be paid
according to reimbursement policies determined by the Michigan
medical services program. Exceptions to these policies may be taken
with the prior approval of the state budget director.
Sec. 1202. The department may do 1 or more of the following:
(a) Provide special formula for eligible clients with
specified metabolic and allergic disorders.
(b) Provide medical care and treatment to eligible patients
with cystic fibrosis who are 21 years of age or older.
(c) Provide genetic diagnostic and counseling services for
eligible families.
(d) Provide medical care and treatment to eligible patients
with hereditary coagulation defects, commonly known as hemophilia,
who are 21 years of age or older.
Sec. 1203. All children who are determined medically eligible
for the children's special health care services program shall be
referred to the appropriate locally-based services program in their
community.
OFFICE OF DRUG CONTROL POLICY
Sec. 1250. In addition to the $1,800,000.00 in Byrne formula
grant program funding the department provides to local drug
treatment courts, the department shall provide $1,800,000.00 in
Byrne formula grant program funding to the judiciary by
interdepartmental grant.
OFFICE OF SERVICES TO THE AGING
Sec. 1401. The appropriation in part 1 to the office of
services to the aging, for community and nutrition services and
home services, shall be restricted to eligible individuals at least
60 years of age who fail to qualify for home care services under
title XVIII, XIX, or XX.
Sec. 1403. The office of services to the aging shall require
each region to report to the office of services to the aging home
delivered meals waiting lists based upon standard criteria.
Determining criteria shall include all of the following:
(a) The recipient's degree of frailty.
(b) The recipient's inability to prepare his or her own meals
safely.
(c) Whether the recipient has another care provider available.
(d) Any other qualifications normally necessary for the
recipient to receive home delivered meals.
Sec. 1404. The area agencies and local providers may receive
and expend fees for the provision of day care, care management,
respite care, and certain eligible home and community-based
services. The fees shall be based on a sliding scale, taking client
income into consideration. The fees shall be used to expand
services.
Sec. 1406. The appropriation of $5,000,000.00 of tobacco
settlement funds to the office of services to the aging for the
respite care program shall be allocated in accordance with a long-
term care plan developed by the long-term care working group
established in section 1657 of 1998 PA 336 upon implementation of
the plan. The use of the funds shall be for direct respite care or
adult respite care center services. Not more than 9% of the amount
allocated under this section shall be expended for administration
and administrative purposes.
Sec. 1413. The legislature affirms the commitment to locally-
based services. The legislature supports the role of local county
board of commissioners in the approval of area agency on aging
plans. The legislature supports choice and the right of local
counties to change membership in the area agencies on aging if the
change is to an area agency on aging that is contiguous to that
county. The legislature supports the office of services to the
aging working with others to provide training to commissions to
better understand and advocate for aging issues. It is the intent
of the legislature to prohibit area agencies on aging from
providing direct services, including home and community-based
waiver services. The legislature's intent in this section is
conditioned on compliance with federal and state laws, rules, and
policies.
Sec. 1416. The legislature affirms the commitment to provide
in-home services, resources, and assistance for the frail elderly
who are not being served by the Medicaid home and community-based
services waiver program.
MEDICAL SERVICES ADMINISTRATION
Sec. 1501. Contingent upon recoveries of Medicaid managed care
and fee-for-service payments as noted in the auditor general's
performance audit of the medical services administration published
April 2005, $7,600,000.00, of which $3,800,000.00 is general
fund/general purpose funds, may be authorized within the medical
services administration line.
MEDICAL SERVICES
Sec. 1601. The cost of remedial services incurred by residents
of licensed adult foster care homes and licensed homes for the aged
shall be used in determining financial eligibility for the
medically needy. Remedial services include basic self-care and
rehabilitation training for a resident.
Sec. 1602. Medical services shall be provided to elderly and
disabled persons with incomes less than or equal to 100% of the
official poverty level, pursuant to the state's option to elect
such coverage set out at section 1902(a)(10)(A)(ii) and (m) of title
XIX, 42 USC 1396a.
Sec. 1603. (1) The department may establish a program for
persons to purchase medical coverage at a rate determined by the
department.
(2) The department may receive and expend premiums for the
buy-in of medical coverage in addition to the amounts appropriated
in part 1.
(3) The premiums described in this section shall be classified
as private funds.
Sec. 1605. (1) The protected income level for Medicaid
coverage determined pursuant to section 106(1)(b)(iii) of the social
welfare act, 1939 PA 280, MCL 400.106, shall be 100% of the related
public assistance standard.
(2) The department shall notify the senate and house of
representatives appropriations subcommittees on community health
and the state budget director of any proposed revisions to the
protected income level for Medicaid coverage related to the public
assistance standard 90 days prior to implementation.
Sec. 1606. For the purpose of guardian and conservator
charges, the department of community health may deduct up to $60.00
per month as an allowable expense against a recipient's income when
determining medical services eligibility and patient pay amounts.
Sec. 1607. (1) An applicant for Medicaid, whose qualifying
condition is pregnancy, shall immediately be presumed to be
eligible for Medicaid coverage unless the preponderance of evidence
in her application indicates otherwise. The applicant who is
qualified as described in this subsection shall be allowed to
select or remain with the Medicaid participating obstetrician of
her choice.
(2) An applicant qualified as described in subsection (1)
shall be given a letter of authorization to receive Medicaid
covered services related to her pregnancy. All qualifying
applicants shall be entitled to receive all medically necessary
obstetrical and prenatal care without preauthorization from a
health plan. All claims submitted for payment for obstetrical and
prenatal care shall be paid at the Medicaid fee-for-service rate in
the event a contract does not exist between the Medicaid
participating obstetrical or prenatal care provider and the managed
care plan. The applicant shall receive a listing of Medicaid
physicians and managed care plans in the immediate vicinity of the
applicant's residence.
(3) In the event that an applicant, presumed to be eligible
pursuant to subsection (1), is subsequently found to be ineligible,
a Medicaid physician or managed care plan that has been providing
pregnancy services to an applicant under this section is entitled
to reimbursement for those services until such time as they are
notified by the department that the applicant was found to be
ineligible for Medicaid.
(4) If the preponderance of evidence in an application
indicates that the applicant is not eligible for Medicaid, the
department shall refer that applicant to the nearest public health
clinic or similar entity as a potential source for receiving
pregnancy-related services.
(5) The department shall develop an enrollment process for
pregnant women covered under this section that facilitates the
selection of a managed care plan at the time of application.
Sec. 1610. The department of community health shall provide an
administrative procedure for the review of cost report grievances
by medical services providers with regard to reimbursement under
the medical services program. Settlements of properly submitted
cost reports shall be paid not later than 9 months from receipt of
the final report.
Sec. 1611. (1) For care provided to medical services
recipients with other third-party sources of payment, medical
services reimbursement shall not exceed, in combination with such
other resources, including Medicare, those amounts established for
medical services-only patients. The medical services payment rate
shall be accepted as payment in full. Other than an approved
medical services copayment, no portion of a provider's charge shall
be billed to the recipient or any person acting on behalf of the
recipient. Nothing in this section shall be considered to affect
the level of payment from a third-party source other than the
medical services program. The department shall require a
nonenrolled provider to accept medical services payments as payment
in full.
(2) Notwithstanding subsection (1), medical services
reimbursement for hospital services provided to dual
Medicare/medical services recipients with Medicare Part B coverage
only shall equal, when combined with payments for Medicare and
other third-party resources, if any, those amounts established for
medical services-only patients, including capital payments.
Sec. 1615. Unless prohibited by federal or state law or
regulation, the department shall require enrolled Medicaid
providers to submit their billings for services electronically.
Sec. 1620. (1) For fee-for-service recipients who do not
reside in nursing homes, the pharmaceutical dispensing fee shall be
$2.50 or the pharmacy's usual or customary cash charge, whichever
is less. For nursing home residents, the pharmaceutical dispensing
fee shall be $2.75 or the pharmacy's usual or customary cash
charge, whichever is less.
(2) The department shall require a prescription copayment for
Medicaid recipients of $1.00 for a generic drug and $3.00 for a
brand-name drug, except as prohibited by federal or state law or
regulation.
(3) For fee-for-service recipients, an optional mail order
pharmacy program shall be available.
Sec. 1621. (1) The department may implement prospective drug
utilization review and disease management systems. The prospective
drug utilization review and disease management systems authorized
by this subsection shall have physician oversight, shall focus on
patient, physician, and pharmacist education, and shall be
developed in consultation with the national pharmaceutical council,
Michigan state medical society, Michigan association of osteopathic
physicians, Michigan pharmacists' association, Michigan health and
hospital association, and Michigan nurses' association.
(2) This section does not authorize or allow therapeutic
substitution.
Sec. 1621a. (1) The department, in conjunction with
pharmaceutical manufacturers or their agents, may establish pilot
projects to test the efficacy of disease management and health
management programs.
(2) The department may negotiate a plan that uses the savings
resulting from the services rendered from these programs, in lieu
of requiring a supplemental rebate for the inclusion of those
participating parties' products on the department's preferred drug
list.
Sec. 1623. (1) The department shall continue the Medicaid
policy that allows for the dispensing of a 100-day supply for
maintenance drugs.
(2) The department shall notify all HMOs, physicians,
pharmacies, and other medical providers that are enrolled in the
Medicaid program that Medicaid policy allows for the dispensing of
a 100-day supply for maintenance drugs.
(3) The notice in subsection (2) shall also clarify that a
pharmacy shall fill a prescription written for maintenance drugs in
the quantity specified by the physician, but not more than the
maximum allowed under Medicaid, unless subsequent consultation with
the prescribing physician indicates otherwise.
Sec. 1625. The department shall continue its practice of
placing all atypical antipsychotic medications on the Medicaid
preferred drug list.
Sec. 1627. (1) The department shall use procedures and rebates
amounts specified under section 1927 of title XIX, 42 USC 1396r-8,
to secure quarterly rebates from pharmaceutical manufacturers for
outpatient drugs dispensed to participants in the MIChild program,
maternal outpatient medical services program, state medical
program, children's special health care services, and EPIC.
(2) For products distributed by pharmaceutical manufacturers
not providing quarterly rebates as listed in subsection (1), the
department may require preauthorization.
Sec. 1629. The department shall utilize maximum allowable cost
pricing for generic drugs that is based on wholesaler pricing to
providers that is available from at least 2 wholesalers who deliver
in the state of Michigan.
Sec. 1630. (1) Medicaid coverage for podiatric services and
chiropractic services shall be restored at not less than the level
in effect on October 1, 2002, except that reasonable utilization
limitations may be adopted in order to prevent excess utilization.
The department shall not impose utilization restrictions on
chiropractic services unless a recipient has exceeded 18 office
visits within 1 year.
(2) The department may implement the bulk purchase of hearing
aids, impose limitations on binaural hearing aid benefits, and
limit the replacement of hearing aids to once every 3 years.
Sec. 1631. (1) The department shall require copayments on
dental, podiatric, chiropractic, vision, and hearing aid services
provided to Medicaid recipients, except as prohibited by federal or
state law or regulation.
(2) Except as otherwise prohibited by federal or state law or
regulation, the department shall collect a $5.00 monthly premium
from Medicaid recipients.
(3) Except as otherwise prohibited by federal or state law or
regulation, the department shall require a $3.00 copayment on
physician office visits by Medicaid recipients.
Sec. 1633. From the funds appropriated in part 1 for auxiliary
medical services, the department shall expand the healthy kids
dental program statewide if funds become available specifically for
expansion of the program.
Sec. 1634. From the funds appropriated in part 1 for ambulance
services, the department shall continue the 5% increase in payment
rates for ambulance services implemented in fiscal year 2000-2001
and increase the ground mileage reimbursement rate per statute mile
to $4.25.
Sec. 1635. From the funds appropriated in part 1 for physician
services and health plan services, $6,910,800.00, of which
$3,000,000.00 is general fund/general purpose funds, shall be
allocated to increase Medicaid reimbursement rates for obstetrical
services.
Sec. 1641. An institutional provider that is required to
submit a cost report under the medical services program shall
submit cost reports completed in full within 5 months after the end
of its fiscal year.
Sec. 1643. Of the funds appropriated in part 1 for graduate
medical education in the hospital services and therapy line item
appropriation, not less than $10,359,000.00 shall be allocated for
the psychiatric residency training program that establishes and
maintains collaborative relations with the schools of medicine at
Michigan State University and Wayne State University if the
necessary allowable Medicaid matching funds are provided by the
universities.
Sec. 1646. Effective October 1, 2005, the department shall
eliminate Medicaid eligibility for individuals who are parents,
caretaker relatives, or individuals between the ages of 18 and 21
and who are not required to be covered under federal Medicaid
requirements.
Sec. 1647. From the funds appropriated in part 1 for medical
services, the department shall allocate for graduate medical
education not less than the level of rates and payments in effect
on April 1, 2005.
Sec. 1648. The department shall maintain an automated toll-
free phone line to enable medical providers to verify the
eligibility status of Medicaid recipients. There shall be no charge
to providers for the use of the toll-free phone line.
Sec. 1649. From the funds appropriated in part 1 for medical
services, the department shall continue breast and cervical cancer
treatment coverage for women up to 250% of the federal poverty
level, who are under age 65, and who are not otherwise covered by
insurance. This coverage shall be provided to women who have been
screened through the centers for disease control breast and
cervical cancer early detection program, and are found to have
breast or cervical cancer, pursuant to the breast and cervical
cancer prevention and treatment act of 2000, Public Law 106-354,
114 Stat. 1381.
Sec. 1650. (1) The department may require medical services
recipients residing in counties offering managed care options to
choose the particular managed care plan in which they wish to be
enrolled. Persons not expressing a preference may be assigned to a
managed care provider.
(2) Persons to be assigned a managed care provider shall be
informed in writing of the criteria for exceptions to capitated
managed care enrollment, their right to change HMOs for any reason
within the initial 90 days of enrollment, the toll-free telephone
number for problems and complaints, and information regarding
grievance and appeals rights.
(3) The criteria for medical exceptions to HMO enrollment
shall be based on submitted documentation that indicates a
recipient has a serious medical condition, and is undergoing active
treatment for that condition with a physician who does not
participate in 1 of the HMOs. If the person meets the criteria
established by this subsection, the department shall grant an
exception to mandatory enrollment at least through the current
prescribed course of treatment, subject to periodic review of
continued eligibility.
Sec. 1651. (1) Medical services patients who are enrolled in
HMOs have the choice to elect hospice services or other services
for the terminally ill that are offered by the HMOs. If the patient
elects hospice services, those services shall be provided in
accordance with part 214 of the public health code, 1978 PA 368,
MCL 333.21401 to 333.21420.
(2) The department shall not amend the medical services
hospice manual in a manner that would allow hospice services to be
provided without making available all comprehensive hospice
services described in 42 CFR part 418.
Sec. 1653. Implementation and contracting for managed care by
the department through HMOs shall be subject to the following
conditions:
(a) Continuity of care is assured by allowing enrollees to
continue receiving required medically necessary services from their
current providers for a period not to exceed 1 year if enrollees
meet the managed care medical exception criteria.
(b) The department shall require contracted HMOs to submit
data determined necessary for evaluation on a timely basis.
(c) Mandatory enrollment of Medicaid beneficiaries living in
counties defined as rural by the federal government, which is any
nonurban standard metropolitan statistical area, is allowed if
there is only 1 HMO serving the Medicaid population, as long as
each Medicaid beneficiary is assured of having a choice of at least
2 physicians by the HMO.
(d) Enrollment of recipients of children's special health care
services in HMOs shall be voluntary during the fiscal year.
(e) The department shall develop a case adjustment to its rate
methodology that considers the costs of persons with HIV/AIDS, end
stage renal disease, organ transplants, and other high-cost
diseases or conditions and shall implement the case adjustment when
it is proven to be actuarially and fiscally sound. Implementation
of the case adjustment must be budget neutral.
Sec. 1654. Medicaid HMOs shall provide for reimbursement of
HMO covered services delivered other than through the HMO's
providers if medically necessary and approved by the HMO,
immediately required, and that could not be reasonably obtained
through the HMO's providers on a timely basis. Such services shall
be considered approved if the HMO does not respond to a request for
authorization within 24 hours of the request. Reimbursement shall
not exceed the Medicaid fee-for-service payment for those services.
Sec. 1655. (1) The department may require a 12-month lock-in
to the HMO selected by the recipient during the initial and
subsequent open enrollment periods, but allow for good cause
exceptions during the lock-in period.
(2) Medicaid recipients shall be allowed to change HMOs for
any reason within the initial 90 days of enrollment.
Sec. 1656. (1) The department shall provide an expedited
complaint review procedure for Medicaid eligible persons enrolled
in HMOs for situations in which failure to receive any health care
service would result in significant harm to the enrollee.
(2) The department shall provide for a toll-free telephone
number for Medicaid recipients enrolled in managed care to assist
with resolving problems and complaints. If warranted, the
department shall immediately disenroll persons from managed care
and approve fee-for-service coverage.
(3) Annual reports summarizing the problems and complaints
reported and their resolution shall be provided to the house of
representatives and senate appropriations subcommittees on
community health, the house and senate fiscal agencies, and the
state budget office.
Sec. 1657. (1) Reimbursement for medical services to screen
and stabilize a Medicaid recipient, including stabilization of a
psychiatric crisis, in a hospital emergency room shall not be made
contingent on obtaining prior authorization from the recipient's
HMO. If the recipient is discharged from the emergency room, the
hospital shall notify the recipient's HMO within 24 hours of the
diagnosis and treatment received.
(2) If the treating hospital determines that the recipient
will require further medical service or hospitalization beyond the
point of stabilization, that hospital must receive authorization
from the recipient's HMO prior to admitting the recipient.
(3) Subsections (1) and (2) shall not be construed as a
requirement to alter an existing agreement between an HMO and their
contracting hospitals nor as a requirement that an HMO must
reimburse for services that are not considered to be medically
necessary.
(4) Prior to contracting with an HMO for managed care services
that did not have a contract with the department before October 1,
2002, the department shall receive assurances from the office of
financial and insurance services that the HMO meets the net worth
and financial solvency requirements contained in chapter 35 of the
insurance code of 1956, 1956 PA 218, MCL 500.3501 to 500.3580.
Sec. 1658. (1) HMOs shall have contracts with hospitals within
a reasonable distance from their enrollees. If a hospital does not
contract with the HMO, in its service area, that hospital shall
enter into a hospital access agreement as specified in the MSA
bulletin Hospital 01-19.
(2) A hospital access agreement specified in subsection (1)
shall be considered an affiliated provider contract pursuant to the
requirements contained in chapter 35 of the insurance code of 1956,
1956 PA 218, MCL 500.3501 to 500.3580.
Sec. 1659. The following sections of this article are the only
ones that shall apply to the following Medicaid managed care
programs, including the comprehensive plan, children's special
health care services plan, MIChoice long-term care plan, and the
mental health, substance abuse, and developmentally disabled
services program: 401, 402, 404, 414, 418, 424, 428, 1650, 1651,
1653, 1654, 1655, 1656, 1657, 1658, 1660, 1661, 1662, 1665, 1666,
1699, and 1700.
Sec. 1660. (1) The department shall assure that all Medicaid
children have timely access to EPSDT services as required by
federal law. Medicaid HMOs shall provide EPSDT services to their
child members in accordance with Medicaid EPSDT policy.
(2) The primary responsibility of assuring a child's hearing
and vision screening is with the child's primary care provider. The
primary care provider shall provide age appropriate screening or
arrange for these tests through referrals to local health
departments.
(3) The department shall require Medicaid HMOs to provide
EPSDT utilization data through the encounter data system, and
health employer data and information set well child health measures
in accordance with the National Committee on Quality Assurance
prescribed methodology.
(4) The department shall require HMOs to be responsible for
well child visits and maternal and infant support services as
described in Medicaid policy. These responsibilities shall be
specified in the information distributed by the HMOs to their
members.
(5) The department shall provide, on an annual basis, budget
neutral incentives to Medicaid HMOs and local health departments to
improve performance on measures related to the care of children and
pregnant women.
Sec. 1661. (1) The department shall assure that all Medicaid
eligible children and pregnant women have timely access to MSS/ISS
services. Medicaid HMOs shall assure that maternal support service
screening is available to their pregnant members and that those
women found to meet the maternal support service high-risk criteria
are offered maternal support services. Local health departments
shall assure that maternal support service screening is available
for Medicaid pregnant women not enrolled in an HMO and that those
women found to meet the maternal support service high-risk criteria
are offered maternal support services or are referred to a
certified maternal support service provider.
(2) The department shall prohibit HMOs from requiring prior
authorization of their contracted providers for any EPSDT screening
and diagnosis service, for any MSS/ISS screening referral, or for
up to 3 MSS/ISS service visits.
(3) The department shall assure the coordination of MSS/ISS
services with the WIC program, state-supported substance abuse,
smoking prevention, and violence prevention programs, the
department of human services, and any other state or local program
with a focus on preventing adverse birth outcomes and child abuse
and neglect.
Sec. 1662. (1) The department shall assure that an external
quality review of each contracting HMO is performed that results in
an analysis and evaluation of aggregated information on quality,
timeliness, and access to health care services that the HMO or its
contractors furnish to Medicaid beneficiaries.
(2) The department shall provide a copy of the analysis of the
Medicaid HMO annual audited health employer data and information
set reports and the annual external quality review report to the
senate and house of representatives appropriations subcommittees on
community health, the senate and house fiscal agencies, and the
state budget director, within 30 days of the department's receipt
of the final reports from the contractors.
(3) The department shall work with the Michigan association of
health plans and the Michigan association for local public health
to improve service delivery and coordination in the MSS/ISS and
EPSDT programs.
(4) The department shall assure that training and technical
assistance are available for EPSDT and MSS/ISS for Medicaid health
plans, local health departments, and MSS/ISS contractors.
Sec. 1665. From the healthy Michigan funds appropriated in
part 1 for health plan services, $10,388,100.00 shall provide
health related services to Medicaid eligible individuals. Services
shall include each of the following:
(a) Alzheimer's disease and dementia information and support.
(b) Cancer prevention and control.
(c) Child and adult arthritis.
(d) Family planning and pregnancy prevention.
(e) Immunization.
(f) Maternal and child health.
(g) Smoking prevention.
Sec. 1666. To increase timely repayment of the maternity case
rate to health plans and reduce the need to recover revenue from
hospitals, the department shall implement system changes to assure
that children who are born to mothers who are Medicaid eligible and
enrolled in health plans are immediately included in the Medicaid
eligibility file and enrolled in the same health plan as the mother
or any other health plan designated by the mother.
Sec. 1670. (1) The appropriation in part 1 for the MIChild
program is to be used to provide comprehensive health care to all
children under age 19 who reside in families with income at or
below 200% of the federal poverty level, who are uninsured and have
not had coverage by other comprehensive health insurance within 6
months of making application for MIChild benefits, and who are
residents of this state. The department shall develop detailed
eligibility criteria through the medical services administration
public concurrence process, consistent with the provisions of this
article. Health care coverage for children in families below 150%
of the federal poverty level shall be provided through expanded
eligibility under the state's Medicaid program. Health coverage for
children in families between 150% and 200% of the federal poverty
level shall be provided through a state-based private health care
program.
(2) The department may provide up to 1 year of continuous
eligibility to children eligible for the MIChild program unless the
family fails to pay the monthly premium, a child reaches age 19, or
the status of the children's family changes and its members no
longer meet the eligibility criteria as specified in the federally
approved MIChild state plan.
(3) Children whose category of eligibility changes between the
Medicaid and MIChild programs shall be assured of keeping their
current health care providers through the current prescribed course
of treatment for up to 1 year, subject to periodic reviews by the
department if the beneficiary has a serious medical condition and
is undergoing active treatment for that condition.
(4) To be eligible for the MIChild program, a child must be
residing in a family with an adjusted gross income of less than or
equal to 200% of the federal poverty level. The department's
verification policy shall be used to determine eligibility.
(5) The department shall enter into a contract to obtain
MIChild services from any HMO, dental care corporation, or any
other entity that offers to provide the managed health care
benefits for MIChild services at the MIChild capitated rate. As
used in this subsection:
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