HB-5398, As Passed House, November 30, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5398

     A bill to amend 1973 PA 116, entitled

"An act to provide for the protection of children through the

licensing and regulation of child care organizations; to provide

for the establishment of standards of care for child care

organizations; to prescribe powers and duties of certain

departments of this state and adoption facilitators; to provide

penalties; and to repeal acts and parts of acts,"

by amending section 5 (MCL 722.115), as amended by 2005 PA 133.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 5. (1) A person, partnership, firm, corporation,

association, or nongovernmental organization shall not establish or

maintain a child care organization unless licensed or registered by

the department. Application for a license or certificate of

registration shall be made on forms provided, and in the manner

prescribed, by the department. Before issuing or renewing a

license, the department shall investigate the applicant's

activities and proposed standards of care,  and shall make an on-

site visit of the proposed or established organization. If the

department is satisfied as to the need for a child care

organization, its financial stability, the applicant's good moral

character, and that the services and facilities are conducive to

the welfare of the children, the department shall issue or renew

the license.  As used in this subsection, "good moral character"

means that term as defined in and determined under 1974 PA 381, MCL

338.41 to 338.47. If a county juvenile agency as defined in

section 2 of the county juvenile agency act, 1998 PA 518, MCL

45.622, certifies to the department that it intends to contract

with an applicant for a new license, the department shall issue or

deny the license within 60 days after it receives a complete

application as provided in section 5b.

     (2) The department shall issue a certificate of registration

to a person who has successfully completed an orientation session

offered by the department and who certifies to the department that

the family day care home has complied with and will continue to

comply with the rules promulgated under this act and will provide

services and facilities, as determined by the department, conducive

to the welfare of children. The department shall make available to

applicants for registration an orientation session to applicants

for registration regarding this act, the rules promulgated under

this act, and the needs of children in family day care before

issuing a certificate of registration. The department shall issue a

certificate of registration to a specific person at a specific

location. A certificate of registration is nontransferable and

remains the property of the department. Within 90 days after

initial registration, the department shall make an on-site visit of

the family day care home.

     (3) The department may authorize a licensed child placing

agency or an approved governmental unit to investigate a foster

family home or a foster family group home according to subsection

(1) and to certify that the foster family home or foster family

group home meets the licensing requirements prescribed by this act.

Before certifying to the department that a foster family home or

foster family group home meets the licensing requirements

prescribed by this act, the licensed child placing agency or

approved governmental unit shall receive and review a medical

statement for each member of the household indicating that he or

she does not have a known condition that would affect the care of a

foster child. The medical statement required under this section

shall be signed and dated by a physician licensed under article 15

of the public health code, 1978 PA 368, MCL 333.16101 to 333.18838,

a physician's assistant licensed under article 15 of the public

health code, 1978 PA 368, MCL 333.16101 to 333.18838, or a

certified nurse practitioner licensed as a registered professional

nurse under part 172 of the public health code, 1978 PA 368, MCL

333.17201 to 333.17242, who has been issued a specialty

certification as a nurse practitioner by the board of nursing under

section 17210 of the public health code, 1978 PA 368, MCL

333.17210, within the 12 months immediately preceding the date of

the initial evaluation. This subsection does not require new or

additional third party reimbursement or worker's compensation

benefits for services rendered. A foster family home or a foster

family group home shall be certified for licensing by the

department by only 1 child placing agency or approved governmental

unit. Other child placing agencies may place children in a foster

family home or foster family group home only upon the approval of

the certifying agency or governmental unit.

     (4) The department may authorize a licensed child placing

agency or an approved governmental unit to place a child who is 16

or 17 years of age in his or her own unlicensed residence, or in

the unlicensed residence of an adult who has no supervisory

responsibility for the child, if a child placing agency or

governmental unit retains supervisory responsibility for the child.

     (5) A licensed child placing agency, child caring institution,

and an approved governmental unit shall provide the state court

administrative office and a local foster care review board

established under 1984 PA 422, MCL 722.131 to 722.139a, those

records requested pertaining to children in foster care placement

for more than 6 months.

     (6) The department may authorize a licensed child placing

agency or an approved governmental unit to place a child who is 16

or 17 years old in an adult foster care family home or an adult

foster care small group home licensed under the adult foster care

facility licensing act, 1979 PA 218, MCL 400.701 to 400.737, if a

licensed child placing agency or approved governmental unit retains

supervisory responsibility for the child and certifies to the

department all of the following:

     (a) The placement is in the best interests of the child.

     (b) The child's needs can be adequately met by the adult

foster care family home or small group home.

     (c) The child will be compatible with other residents of the

adult foster care family home or small group home.

     (d) The child placing agency or approved governmental unit

will periodically reevaluate the placement of a child under this

subsection to determine that the criteria for placement in

subdivisions (a) through (c) continue to be met.

     (7) On an exception basis, the director of the department, or

his or her designee, may authorize a licensed child placing agency

or an approved governmental unit to place an adult in a foster

family home if a licensed child placing agency or approved

governmental unit certifies to the department all of the following:

     (a) The adult is a person with a developmental disability as

defined by section 100a of the mental health code, 1974 PA 258, MCL

330.1100a, or a person who is otherwise neurologically disabled and

is also physically limited to a degree that requires complete

physical assistance with mobility and activities of daily living.

     (b) The placement is in the best interests of the adult and

will not adversely affect the interests of the foster child or

children residing in the foster family home.

     (c) The identified needs of the adult can be met by the foster

family home.

     (d) The adult will be compatible with other residents of the

foster family home.

     (e) The child placing agency or approved governmental unit

will periodically reevaluate the placement of an adult under this

subsection to determine that the criteria for placement in

subdivisions (a) through (d) continue to be met and document that

the adult is receiving care consistent with the administrative

rules for a child placing agency.

     (8) On an exception basis, the director of the department, or

his or her designee, may authorize a licensed child placing agency

or an approved governmental unit to place a child in an adult

foster care family home or an adult foster care small group home

licensed under the adult foster care licensing act, 1979 PA 218,

MCL 400.701 to 400.737, if the licensed child placing agency or

approved governmental unit certifies to the department all of the

following:

     (a) The placement is in the best interests of the child.

     (b) The placement has the concurrence of the parent or

guardian of the child.

     (c) The identified needs of the child can be met adequately by

the adult foster care family home or small group home.

     (d) The child's psychosocial and clinical needs are compatible

with those of other residents of the adult foster care family home

or small group home.

     (e) The clinical treatment of the child's condition is similar

to that of the other residents of the adult foster care family home

or small group home.

     (f) The child's cognitive level is consistent with the

cognitive level of the other residents of the adult foster care

family home or small group home.

     (g) The child is neurologically disabled and is also

physically limited to such a degree as to require complete physical

assistance with mobility and activities of daily living.

     (h) The child placing agency or approved governmental unit

will periodically reevaluate the placement of a child under this

subsection to determine that the criteria for placement in

subdivisions (a) to (g) continue to be met.

     (9) Beginning October 1, 2007, except as provided in

subsection (1) and section 5b, the department shall issue an

initial or renewal license or registration under this act for child

care centers, group day care homes, and family day care homes not

later than 6 months after the applicant files a completed

application. Receipt of the application is considered the date the

application is received by any agency or department of this state.

If the application is considered incomplete by the department, the

department shall notify the applicant in writing or make notice

electronically available within 30 days after receipt of the

incomplete application, describing the deficiency and requesting

additional information. This subsection does not affect the time

period within which an on-site visit to a family day care home

shall be made. If the department identifies a deficiency or

requires the fulfillment of a corrective action plan, the 6-month

period is tolled until either of the following occurs:

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

the date the requested information is received by the department.

     (b) Upon notification by the department that a corrective

action plan is required, until the date the department determines

the requirements of the corrective action plan have been met.

     (10) The determination of the completeness of an application

is not an approval of the application for the license and does not

confer eligibility on an applicant determined otherwise ineligible

for issuance of a license.

     (11) Except as provided in subsection (1) and section 5b, if

the department fails to issue or deny a license or registration to

a child care center, group day care home, or family day care home

within the time required by this section, the department shall

return the license or registration fee and shall reduce the license

or registration fee for the applicant's next renewal application,

if any, by 15%. Failure to issue or deny a license to a child care

center, group day care home, or family day care home within the

time period required under this section does not allow the

department to otherwise delay the processing of the application. A

completed application shall be placed in sequence with other

completed applications received at that same time. The department

shall not discriminate against an applicant in the processing of an

application based on the fact that the application fee was refunded

or discounted under this subsection.

     (12) If, on a continual basis, inspections performed by a

local health department delay the department in issuing or denying

licenses or registrations for child care centers, group day care

homes, and family day care homes under this act within the 6-month

period, the department may use department staff to complete the

inspections instead of the local health department causing the

delays.

     (13) Beginning October 1, 2008, the director of the department

shall submit a report by December 1 of each year to the standing

committees and appropriations subcommittees of the senate and house

of representatives concerned with human services and children's

issues. The director shall include all of the following information

regarding applications for licenses and registrations only for

child care centers, group day care homes, and family day care homes

filed under this act in the report concerning the preceding fiscal

year:

     (a) The number of initial and renewal applications the

department received and completed within the 6-month time period

described in subsection (9).

     (b) The number of applications requiring a request for

additional information.

     (c) The number of applications rejected.

     (d) The number of licenses and registrations not issued within

the 6-month period.

     (e) The average processing time for initial and renewal

licenses and registrations granted after the 6-month period.

     (14) As used in this section, "completed application" means an

application complete on its face and submitted with any applicable

licensing or registration fees as well as any other information,

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

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

private entity but not from another department or agency of this

state. A completed application does not include a health inspection

performed by a local health department.

(14)  (15) The department shall not issue to or renew the

license of a child care center or day care center under this act

without requesting a criminal history check and criminal records

check as required by section 5c. If a criminal history check or

criminal records check performed under section 5c reveals that an

applicant for a license under this act has been convicted of a

listed offense, the department shall not issue a license to that

applicant. If a criminal history check or criminal records check

performed under section 5c reveals that an applicant for renewal of

a license under this act has been convicted of a listed offense,

the department shall not renew that license. If a criminal history

check or criminal records check performed under section 5c reveals

that a current licensee has been convicted of a listed offense, the

department shall revoke the license of that licensee.

(15)  (16) The department shall not issue or renew a

certificate of registration to a family day care home or a license

to a group day care home under this act without requesting a

criminal history check and criminal records check as required by

section 5f and a department of state police ICHAT check required by

section 5g. If a criminal history check or criminal records check

performed under section 5f or an ICHAT check performed under

section 5g reveals that an applicant for a certificate of

registration or license under this act or a person over 18 years of

age residing in that applicant's home has been convicted of a

listed offense, the department shall not issue a certificate of

registration or license to that applicant. If a criminal history

check or criminal records check performed under section 5f or an

ICHAT check performed under section 5g reveals that an applicant

for renewal of a certificate of registration or license under this

act or a person over 18 years of age residing in that applicant's

home has been convicted of a listed offense, the department shall

not renew a certificate of registration or license to that

applicant. If a criminal history check or criminal records check

performed under section 5f or an ICHAT check performed under

section 5g reveals that a current registrant or licensee under this

act or a person over 18 years of age residing in that registrant's

or licensee's home has been convicted of a listed offense, the

department shall revoke that registrant's certificate of

registration or licensee's license.

     (16) As used in this section:

     (a) "Completed application" means an application complete on

its face and submitted with any applicable licensing or

registration fees as well as any other information, records,

approval, security, or similar item required by law or rule from a

local unit of government, a federal agency, or a private entity but

not from another department or agency of this state. A completed

application does not include a health inspection performed by a

local health department.

     (b) "Good moral character" means that term as defined in and

determined under 1974 PA 381, MCL 338.41 to 338.47.

     (c) "Member of the household" means any individual, other than

a foster child, who resides in a foster family home or foster

family group home on an ongoing or recurrent basis.