HB-4526, As Passed House, May 26, 2011
SUBSTITUTE FOR
HOUSE BILL NO. 4526
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, 2012; to provide for certain conditions on
appropriations; to provide for the expenditure of the
appropriations; and to provide anticipated appropriations for the
fiscal year ending September 30, 2013.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
ARTICLE I
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2011-2012
Sec. 101. Subject to the conditions set forth in this article,
the amounts listed in this part are appropriated for the department
of agriculture and rural development for the fiscal year ending
September 30, 2012, 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.......... 2.0
Full-time equated classified positions.......... 441.0
GROSS APPROPRIATION.................................... $ 72,219,300
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 197,600
IDG from MDNRE, biosolids.............................. 100,000
Total interdepartmental grants and intradepartmental
transfers............................................ 297,600
ADJUSTED GROSS APPROPRIATION........................... $ 71,921,700
Federal revenues:
USDA, multiple grants.................................. 10,873,300
EPA, multiple grants................................... 1,635,700
HHS-FDA................................................ 1,203,900
United States department of labor...................... 471,800
Total federal revenues................................. 14,184,700
Special revenue funds:
Total local revenues................................... 0
Private - slow-the-spread foundation................... 83,300
Private - commodity group revenue...................... 88,000
Total private revenues................................. 171,300
Agricultural preservation fund......................... 2,031,100
Agriculture equine industry development fund........... 3,773,300
Agriculture pollution prevention fund.................. 100
Animal welfare fund.................................... 144,500
Commodity inspection fees.............................. 832,400
Consumer and industry food safety education fund....... 290,200
Dairy and food safety fund............................. 3,006,600
Freshwater protection fund............................. 5,094,100
Gasoline inspection and testing fund................... 2,747,800
Grain dealer fee fund.................................. 222,500
Horticulture fund...................................... 72,800
Industry support funds................................. 535,300
Licensing and inspection fees.......................... 4,188,800
Migrant housing inspection fees........................ 114,200
Migratory labor housing fund........................... 29,000
Nonretail liquor fees.................................. 716,800
Refined petroleum fund................................. 3,870,900
Testing fees........................................... 447,500
Weights and measures regulation fees................... 745,100
Total other state restricted revenues.................. 28,863,000
State general fund/general purpose..................... $ 28,702,700
Sec. 102. EXECUTIVE
Full-time equated unclassified positions.......... 2.0
Full-time equated classified positions........... 26.0
Commissions and boards................................. $ 23,800
Unclassified positions--2.0 FTE positions.............. 213,300
Executive direction--8.0 FTE positions................. 1,050,600
Management services--15.0 FTE positions................ 981,100
Statistical reporting service--1.0 FTE positions....... 158,300
Emergency management--2.0 FTE positions................ 243,600
Accounting service center.............................. 878,300
GROSS APPROPRIATION.................................... $ 3,549,000
Appropriated from:
Special revenue funds:
Private - commodity group revenue...................... 88,000
Industry support funds................................. 40,500
Nonretail liquor fees.................................. 8,800
Refined petroleum fund................................. 57,800
State general fund/general purpose..................... $ 3,353,900
Sec. 103. DEPARTMENTWIDE
Rent and building occupancy charges.................... $ 991,900
GROSS APPROPRIATION.................................... $ 991,900
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 224,600
EPA, multiple grants................................... 174,100
HHS-FDA................................................ 43,300
Special revenue funds:
Agricultural preservation fund......................... 22,700
Freshwater protection fund............................. 33,500
Licensing and inspection fees.......................... 156,800
Nonretail liquor fees.................................. 28,800
Refined petroleum fund................................. 257,200
State general fund/general purpose..................... $ 50,900
Sec. 104. INFORMATION AND TECHNOLOGY
Information technology services and projects........... $ 1,303,400
GROSS APPROPRIATION.................................... $ 1,303,400
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 2,800
Special revenue funds:
Agricultural preservation fund......................... 200
Agriculture equine industry development fund........... 93,600
Freshwater protection fund............................. 100
Gasoline inspection testing fund....................... 27,400
Licensing and inspection fees.......................... 28,300
Nonretail liquor fees.................................. 500
State general fund/general purpose..................... $ 1,150,500
Sec. 105. FOOD AND DAIRY
Full-time equated classified positions.......... 104.0
Food safety and quality assurance--81.0 FTE positions.. $ 9,931,600
Milk safety and quality assurance--23.0 FTE positions.. 3,037,900
GROSS APPROPRIATION.................................... $ 12,969,500
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 234,900
HHS-FDA................................................ 451,600
Special revenue funds:
Consumer and industry food safety education fund....... 290,200
Dairy and food safety fund............................. 3,006,600
State general fund/general purpose..................... $ 8,986,200
Sec. 106. ANIMAL INDUSTRY
Full-time equated classified positions........... 64.0
Animal disease prevention and response--64.0 FTE
positions............................................ $ 8,889,400
GROSS APPROPRIATION.................................... $ 8,889,400
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 1,233,500
HHS-FDA................................................ 40,600
Special revenue funds:
Animal welfare fund.................................... 144,500
Licensing and inspection fees.......................... 113,100
State general fund/general purpose..................... $ 7,357,700
Sec. 107. PESTICIDE AND PLANT PEST MANAGEMENT
Full-time equated classified positions........... 99.0
Pesticide and plant pest management--88.0 FTE
positions............................................ $ 10,612,700
Emerald ash borer control program--7.0 FTE positions... 1,822,600
Producer security/grain dealers--4.0 FTE positions..... 543,400
GROSS APPROPRIATION.................................... $ 12,978,700
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 2,942,100
EPA, multiple grants................................... 738,800
HHS-FDA................................................ 109,200
Special revenue funds:
Private - slow-the-spread foundation................... 83,300
Commodity inspection fees.............................. 832,400
Grain dealers fee fund................................. 222,500
Horticulture fund...................................... 72,800
Industry support funds................................. 336,300
Licensing and inspection fees.......................... 3,808,700
State general fund/general purpose..................... $ 3,832,600
Sec. 108. ENVIRONMENTAL STEWARDSHIP
Full-time equated classified positions........... 43.0
Environmental stewardship--18.0 FTE positions.......... $ 6,133,800
Michigan agriculture environmental assurance program--
3.0 FTE positions.................................... 552,600
Farmland and open space preservation--9.0 FTE
positions............................................ 958,200
Local conservation districts........................... 100
Migrant labor housing--6.0 FTE positions............... 1,162,300
Right-to-farm--3.0 FTE positions....................... 519,000
Intercounty drain--4.0 FTE positions................... 425,000
GROSS APPROPRIATION.................................... $ 9,751,000
Appropriated from:
Interdepartmental grant revenues:
IDG from MDNRE, biosolids.............................. 100,000
Federal revenues:
USDA, multiple grants.................................. 1,000,000
EPA, multiple grants................................... 361,200
United States department of labor...................... 471,800
Special revenue funds:
Agricultural preservation fund......................... 958,200
Agriculture pollution prevention fund.................. 100
Freshwater protection fund............................. 5,060,500
Migrant housing inspection fees........................ 114,200
Migratory labor housing fund........................... 29,000
State general fund/general purpose..................... $ 1,656,000
Sec. 109. LABORATORY PROGRAM
Full-time equated classified positions........... 94.0
Laboratory services--42.0 FTE positions................ $ 5,564,600
USDA monitoring--13.0 FTE positions.................... 2,452,000
Consumer protection program--39.0 FTE positions........ 5,571,300
GROSS APPROPRIATION.................................... $ 13,587,900
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 194,800
Federal revenues:
USDA, multiple grants.................................. 2,474,700
EPA, multiple grants................................... 361,600
HHS-FDA................................................ 559,200
Special revenue funds:
Agriculture equine industry development fund........... 557,800
Gasoline inspection and testing fund................... 2,720,400
Licensing and inspection fees.......................... 81,900
Refined petroleum fund................................. 3,555,900
Testing fees........................................... 447,500
Weights and measures regulation fees................... 745,100
State general fund/general purpose..................... $ 1,889,000
Sec. 110. AGRICULTURE DEVELOPMENT
Full-time equated classified positions............ 8.0
Agriculture development--5.0 FTE positions............. $ 2,040,300
Grape and wine program--3.0 FTE positions.............. 736,300
GROSS APPROPRIATION.................................... $ 2,776,600
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 1,513,500
Special revenue funds:
Industry support funds................................. 158,500
Nonretail liquor fees.................................. 678,700
State general fund/general purpose..................... $ 425,900
Sec. 111. FAIRS AND EXPOSITIONS
Full-time equated classified positions............ 3.0
Fairs and racing--3.0 FTE positions.................... $ 331,300
Purses and supplements - fairs/licensed tracks......... 611,400
Licensed tracks - light horse racing................... 34,100
Standardbred breeders' awards.......................... 250,000
Standardbred purses and supplements - licensed tracks.. 461,600
Standardbred sire stakes............................... 209,000
Standardbred training and stabling..................... 9,300
Thoroughbred owners' awards............................ 31,900
Thoroughbred supplements - licensed tracks............. 309,600
Thoroughbred breeder's awards.......................... 309,600
Thoroughbred sire stakes............................... 214,100
Distribution of outstanding winning tickets............ 350,000
GROSS APPROPRIATION.................................... $ 3,121,900
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund........... 3,121,900
State general fund/general purpose..................... $ 0
Sec. 112. CAPITAL OUTLAY
Farmland and open space development acquisition........ $ 2,300,000
GROSS APPROPRIATION.................................... $ 2,300,000
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 1,250,000
Special revenue funds:
Agriculture preservation fund.......................... 1,050,000
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2011-2012
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 2011-2012 is $57,565,700.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2011-2012 is $1,500,000.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Environmental protection............................... $ 1,500,000
TOTAL.................................................. $ 1,500,000
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) "Department" means the department of agriculture and rural
development.
(b) "Director" means the director of the department.
(c) "EPA" means the United States environmental protection
agency.
(d) "FTE" means full-time equated.
(e) "HHS-FDA" means the United States department of health and
human services - food and drug administration.
(f) "IDG" means interdepartmental grant.
(g) "LARA" means the Michigan department of licensing and
regulatory affairs.
(h) "MDEQ" means the Michigan department of environmental
quality.
(i) "USDA" means the United States department of agriculture.
Sec. 204. The civil service commission shall bill departments
and agencies at the end of the first fiscal quarter for the charges
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. 206. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $5,000,000.00 for
federal 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.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $6,000,000.00 for state
restricted 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 $100,000.00 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 management and budget act, 1984
PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 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. 207. (1) The department shall maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(d) The number of active department employees by job
classification.
(e) Job specifications and wage rates.
(2) The department may develop and operate its own website to
provide this information or may reference the state's central
transparency website as the source for this information.
Sec. 208. Unless otherwise specified, the departments 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. 209. Funds appropriated in part 1 shall not be used 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. Preference shall be given to
goods or services, or both, manufactured or provided by Michigan
businesses, if they are competitively priced and of comparable
quality. In addition, preference shall be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 211. 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 technology, management, and budget. 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. 212. The department 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.
The department may electronically retain copies of reports unless
otherwise required by federal and state guidelines.
Sec. 214. From the funds appropriated in part 1 for
information technology, departments and agencies shall pay user
fees to the department of technology, management, and budget for
technology-related services and projects. The user fees shall be
subject to provisions of an interagency agreement between the
department and agencies and the department of technology,
management, and budget.
Sec. 215. The department shall not take disciplinary action
against an employee for communicating with a member of the
legislature or his or her staff.
Sec. 228. Not later than November 15, the department shall
prepare and transmit a report that provides for estimates of the
total general fund/general purpose appropriation lapses at the
close of the fiscal year. This report shall summarize the projected
year-end general fund/general purpose appropriation lapses by major
departmental program or program areas. The report shall be
transmitted to the office of the state budget, the chairpersons of
the senate and house of representatives standing committees on
appropriations, and the senate and house fiscal agencies.
Sec. 229. Within 14 days after the release of the executive
budget recommendation, the department shall provide the state
budget director, the senate and house appropriations chairs, the
senate and house appropriations subcommittees on agriculture and
rural development, respectively, and the senate and house fiscal
agencies with an annual report on estimated state restricted fund
balances, state restricted fund projected revenues, and state
restricted fund expenditures for the fiscal years ending September
30, 2011 and September 30, 2012.
EXECUTIVE
Sec. 301. (1) Pursuant to the appropriations in part 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, 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 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 analyses 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
appropriations subcommittees on agriculture and the senate and
house fiscal agencies 30 days prior to proposing changes in fees
authorized under this section or under section 5 of 1915 PA 91, MCL
285.35.
(3) Annually, before February 1, the department shall provide
a report to the senate and house 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. 302. 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 senate and house 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.
FOOD AND DAIRY
Sec. 402. Not later than April 1, 2012, the department shall
provide a report to the senate and house appropriations
subcommittees on agriculture and the senate and house fiscal
agencies describing significant food-borne outbreaks and
emergencies, including any enforcement actions taken related to
food safety during the 2010-2011 fiscal year.
ANIMAL INDUSTRY
Sec. 450. From the funds appropriated in section 106 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 106 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. 453. (1) Of the funds appropriated in part 1, the
department may provide for indemnity as provided for pursuant to
the animal industry act, 1988 PA 466, MCL 287.701 to 287.746, not
to exceed $100,000.00 per order from any line item for the fiscal
year ending September 30, 2012. 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 senate and house
appropriations subcommittees on agriculture and to the senate and
house fiscal agencies and to the state budget director.
(2) The department of agriculture and rural development shall
make an indemnification payment for the fair market value of
livestock killed by a wolf, coyote, or cougar, 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 and rural
development is authorized to expend the funds received from the
department of natural resources to reimburse the department of
agriculture and rural development for all indemnification payments
made pursuant to this subsection.
Sec. 454. The department shall use its resources to
collaborate with the United States department of agriculture to
obtain TB-free status for the area of the Lower Peninsula that is
zoned as modified accredited advanced. The department shall also
aggressively work toward eradicating bovine TB in the modified
accredited zone. The department shall also convene a workgroup to
work toward eradicating bovine TB in the modified accredited zone.
Sec. 456. Of the funds appropriated in part 1, no funds shall
be used to enforce the mandatory electronic animal identification
program for any domestic animals other than cattle until specific
procedures and guidelines for electronic animal identification are
outlined in statute.
Sec. 457. On or before October 15, 2011, and on a quarterly
basis thereafter, the department shall report to the senate and
house agriculture committees, the senate and house appropriations
subcommittees on agriculture, and the senate and house fiscal
agencies on the department's progress toward meeting the USDA
requirements as outlined in the March 2007 bovine TB program
review. The report shall include, but is not limited to,
information and data on: wildlife risk mitigation plan
implementation in the modified accredited zone; implementation of a
movement certificate process; progress toward annual surveillance
test requirements set out in the June 2007 MOU; efforts to work
with slaughter facilities in Michigan, as well as those that
slaughter a significant number of animals from Michigan;
educational programs and information for Michigan's livestock
community; any other item the legislature should be aware of that
will promote or hinder efforts to achieve bovine TB-free status for
Michigan.
Sec. 458. From the funds appropriated in section 106 for
animal industry, the department shall provide inspection and
testing of aquaculture facilities and aquaculture researchers as
provided under section 7 of the Michigan aquaculture development
act, 1996 PA 199, MCL 286.877. It is the intent of the legislature
that the department shall work with aquaculture facilities and
aquaculture researchers to identify, contain, and eradicate viral
hemorrhagic septicemia in this state.
PESTICIDE AND PLANT PEST MANAGEMENT
Sec. 551. (1) It is the intent of the legislature that the
department work with the fruit and vegetable industry to ensure the
development of a sustainable system of third-party inspections of
fruits and vegetables.
(2) From the funds appropriated in part 1 for pesticide and
plant pest management, not less than $200,000.00 shall be used for
the purpose to ensure that Michigan commodities receive
departmental inspections required by other governments to ship
commodities out of Michigan. The department shall devise a plan to
provide these required government inspections in a timely manner.
ENVIRONMENTAL STEWARDSHIP
Sec. 601. The part 1 appropriation line item environmental
stewardship shall be used to support department agriculture
pollution prevention programs, including groundwater and freshwater
protection programs under part 87 of the Michigan natural resources
and environmental protection act, 1994 PA 451, MCL 324.8701 to
324.8717, and technical assistance in implementing conservation
grants available under the federal farm bill of 2008.
Sec. 606. The department shall actively search for all
possible funding sources to be used to match federal funds in the
USDA environmental quality incentives program.
Sec. 607. (1) It is the intent of the legislature that the
department continue its activities in support of intercounty
drainage districts as provided in chapter 5 of the drain code of
1956, 1956 PA 40, MCL 280.101 to 280.106.
(2) The department shall work with representatives of
intercounty drainage districts to develop a mutually agreeable
method of funding department costs associated with the intercounty
drainage program.
AGRICULTURE DEVELOPMENT
Sec. 706. Not later than April 1, 2012, the department shall
provide a report to the senate and house appropriations
subcommittees on agriculture and the senate and house fiscal
agencies describing the department's agriculture development and
export market development activities. The report shall identify
grants awarded during the prior fiscal year, including a
description of federal or private funds made available as a result
of department activities.
Sec. 709. (1) Not later than April 1, 2012, the department
shall provide a report to the senate and house appropriations
subcommittees on agriculture and the senate and house fiscal
agencies describing the activities of the grape and wine industry
council established under section 303 of the Michigan liquor
control act of 1998, 1998 PA 58, MCL 436.1303.
(2) The report shall include all of the following:
(a) Council activities and accomplishments for the previous
fiscal year.
(b) Council expenditures for the previous fiscal year by
category of administration, industry support, research and
education grants, and promotion and consumer education.
(c) Grants awarded during the prior fiscal year and the
results of research grant projects completed during the prior
fiscal year.
FAIRS AND EXPOSITIONS
Sec. 801. All appropriations from the agricultural equine
industry development fund shall be spent on equine-related
purposes. No funds from the agriculture equine industry development
fund shall be expended for nonequine-related purposes without prior
approval of the legislature.
Sec. 802. All appropriations from the agriculture equine
industry development fund, except for the racing commission and
laboratory analysis program appropriations, shall be reduced
proportionately if revenues to the agriculture equine industry
development fund decline during the fiscal year ending September
30, 2011 to a level lower than the amounts appropriated in section
108.
Sec. 803. In the event there is no live thoroughbred race meet
in 2011 or 2012, all purse money and program money appropriated for
the thoroughbred industry in fiscal year 2010-2011 and fiscal year
2011-2012 shall be held in escrow for a period not to exceed 18
months, or until a thoroughbred race meet license is applied for
and granted by the Michigan gaming control board. In the event
there is no thoroughbred meet in 2011 or 2012, the purse pool
distribution order to be issued by the Michigan gaming control
board in 2012 that delineates distribution between the thoroughbred
meet that has been held at pinnacle race course and the joint
thoroughbred/quarterhorse meet held in Mt. Pleasant shall be the
same distribution formula as issued in 2011, with the thoroughbred
portion being held in escrow.
Sec. 804. The Michigan gaming control board shall use actual
expenditure data in determining the actual regulatory costs of
conducting racing dates and shall provide that data to the senate
and house of representatives appropriations subcommittees on
agriculture and general government and the senate and house fiscal
agencies. The Michigan gaming control board shall not be reimbursed
for more than the actual regulatory cost of conducting race dates.
If a certified horsemen's organization funds more than the actual
regulatory cost, the balance shall remain in the agriculture equine
industry development fund to be used to fund subsequent race dates
conducted by race meeting licensees with which the certified
horsemen's organization has contracts. If a certified horsemen's
organization funds less than the actual regulatory costs of the
additional horse racing dates, the Michigan gaming control board
shall reduce the number of future race dates conducted by race
meeting licensees with which the certified horsemen's organization
has contracts. Prior to the reduction in the number of authorized
race dates due to budget deficits, the executive director of the
Michigan gaming control board shall provide notice to the certified
horsemen's organizations with an opportunity to respond with
alternatives. In determining actual costs, the Michigan gaming
control board shall take into account that each specific breed may
require different regulatory mechanisms.
CAPITAL OUTLAY
Sec. 1002. (1) The director shall allocate lump-sum
appropriations made in this article consistent with statutory
provisions and the purposes for which funds were appropriated.
Lump-sum allocations shall address priority program or facility
needs and may include, but are not limited to, design,
construction, remodeling and addition, special maintenance, major
special maintenance, energy conservation, and demolition.
(2) The state budget director may authorize that funds
appropriated for lump-sum appropriations shall be available for no
more than 3 fiscal years following the fiscal year in which the
original appropriation was made. Any remaining balance from
allocations made in this section shall lapse to the fund from which
it was appropriated pursuant to the lapsing of funds as provided in
the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 1003. The appropriations in part 1 for capital outlay
shall be carried forward at the end of the fiscal year consistent
with the provisions of section 248 of the management and budget
act, 1984 PA 431, MCL 18.1248.
PART 2A
PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS
FOR FISCAL YEAR 2012-2013
GENERAL SECTIONS
Sec. 1201. It is the intent of the legislature to provide
appropriations for the fiscal year ending on September 30, 2013 for
the line items listed in part 1. The fiscal year 2012-2013
appropriations are anticipated to be the same as those for fiscal
year 2011-2012, except that the line items will be adjusted for
changes in caseload and related costs, federal fund match rates,
economic factors, and available revenue. These adjustments will be
determined after the January 2012 consensus revenue estimating
conference.
ARTICLE IV
DEPARTMENT OF COMMUNITY HEALTH
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2011-2012
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, 2012,
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........ 3,634.2
Average population.............................. 893.0
GROSS APPROPRIATION.................................... $ 14,241,316,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 6,569,400
ADJUSTED GROSS APPROPRIATION........................... $ 14,234,747,000
Federal revenues:
Total federal revenues................................. 8,986,611,000
Special revenue funds:
Total local revenues................................... 250,605,900
Total private revenues................................. 96,494,700
Merit award trust fund................................. 86,744,500
Total other state restricted revenues.................. 2,043,107,400
State general fund/general purpose..................... $ 2,771,183,500
Sec. 102. DEPARTMENTWIDE ADMINISTRATION
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 175.2
Director and other unclassified--6.0 FTE positions..... $ 583,900
Departmental administration and management--165.2 FTE
positions............................................ 21,787,400
Worker's compensation program.......................... 8,754,700
Rent and building occupancy............................ 9,252,200
Developmental disabilities council and projects--10.0
FTE positions........................................ 2,855,700
GROSS APPROPRIATION.................................... $ 43,233,900
Appropriated from:
Federal revenues:
Total federal revenues................................. 13,632,700
Special revenue funds:
Total private revenues................................. 35,100
Total other state restricted revenues.................. 749,500
State general fund/general purpose..................... $ 28,816,600
Sec. 103. MENTAL HEALTH/SUBSTANCE ABUSE SERVICES
ADMINISTRATION AND SPECIAL PROJECTS
Full-time equated classified positions.......... 111.5
Mental health/substance abuse program administration--
110.5 FTE positions.................................. $ 17,586,800
Gambling addiction--1.0 FTE position................... 3,000,000
Protection and advocacy services support............... 194,400
Community residential and support services............. 1,777,200
Federal and other special projects..................... 2,497,200
Family support subsidy................................. 19,470,500
Housing and support services........................... 9,306,800
GROSS APPROPRIATION.................................... $ 53,832,900
Appropriated from:
Federal revenues:
Total federal revenues................................. 37,101,600
Special revenue funds:
Total private revenues................................. 390,000
Total other state restricted revenues.................. 3,000,000
State general fund/general purpose..................... $ 13,341,300
Sec. 104. COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE
SERVICES PROGRAMS
Full-time equated classified positions............ 9.5
Medicaid mental health services........................ $ 2,149,977,900
Community mental health non-Medicaid services.......... 273,908,100
Medicaid adult benefits waiver......................... 32,056,100
Mental health services for special populations......... 5,842,800
Medicaid substance abuse services...................... 46,709,700
CMHSP, purchase of state services contracts............ 134,201,900
Civil service charges.................................. 1,499,300
Federal mental health block grant--2.5 FTE positions... 15,397,500
State disability assistance program substance abuse
services............................................. 2,018,800
Community substance abuse prevention, education, and
treatment programs................................... 81,737,500
Children's waiver home care program.................... 18,944,800
Nursing home PAS/ARR-OBRA--7.0 FTE positions........... 12,179,300
Children with serious emotional disturbance waiver..... 8,188,000
GROSS APPROPRIATION.................................... $ 2,782,661,700
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of human
services............................................. 2,769,000
Federal revenues:
Total federal revenues................................. 1,584,568,500
Special revenue funds:
Total local revenues................................... 25,228,900
Total other state restricted revenues.................. 22,314,900
State general fund/general purpose..................... $ 1,147,780,400
Sec. 105. STATE PSYCHIATRIC HOSPITALS AND FORENSIC
MENTAL HEALTH SERVICES
Total average population........................ 893.0
Full-time equated classified positions........ 2,194.2
Caro regional mental health center - psychiatric
hospital - adult--468.3 FTE positions................ $ 56,772,200
Average population.............................. 185.0
Kalamazoo psychiatric hospital - adult--483.1 FTE
positions............................................ 54,782,400
Average population.............................. 189.0
Walter P. Reuther psychiatric hospital - adult--433.3
FTE positions........................................ 52,297,800
Average population.............................. 234.0
Hawthorn center - psychiatric hospital - children and
adolescents--230.9 FTE positions..................... 27,075,900
Average population............................... 75.0
Center for forensic psychiatry--578.6 FTE positions.... 66,767,900
Average population.............................. 210.0
Revenue recapture...................................... 750,000
IDEA, federal special education........................ 120,000
Special maintenance.................................... 332,500
Purchase of medical services for residents of
hospitals and centers................................ 445,600
Gifts and bequests for patient living and treatment
environment.......................................... 1,000,000
GROSS APPROPRIATION.................................... $ 260,344,300
Appropriated from:
Interdepartmental grant revenues:
Federal revenues:
Total federal revenues................................. 29,921,200
Special revenue funds:
CMHSP, purchase of state services contracts............ 134,201,900
Other local revenues................................... 17,494,500
Total private revenues................................. 1,000,000
Total other state restricted revenues.................. 15,948,400
State general fund/general purpose..................... $ 61,778,300
Sec. 106. PUBLIC HEALTH ADMINISTRATION
Full-time equated classified positions........... 91.7
Public health administration--7.3 FTE positions........ $ 1,557,200
Healthy Michigan fund programs......................... 5,000,000
Minority health grants and contracts--3.0 FTE
positions............................................ 612,700
Promotion of healthy behaviors......................... 975,900
Vital records and health statistics--81.4 FTE
positions............................................ 9,442,800
GROSS APPROPRIATION.................................... $ 17,588,600
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of human
services............................................. 1,171,500
Federal revenues:
Total federal revenues................................. 4,887,900
Special revenue funds:
Total private revenues................................. 300,000
Total other state restricted revenues.................. 9,974,700
State general fund/general purpose..................... $ 1,254,500
Sec. 107. HEALTH POLICY
Full-time equated classified positions........... 66.8
Emergency medical services program state staff--23.0
FTE positions........................................ $ 4,850,300
Emergency medical services grants and services......... 660,000
Health policy administration--24.4 FTE positions....... 4,150,800
Nurse education and research program--3.0 FTE
positions............................................ 744,200
Certificate of need program administration--14.0 FTE
positions............................................ 2,071,100
Rural health services--1.0 FTE position................ 1,410,300
Michigan essential health provider..................... 872,700
Primary care services--1.4 FTE positions............... 2,886,900
GROSS APPROPRIATION.................................... $ 17,646,300
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of
treasury, Michigan state hospital finance authority.. 116,300
Interdepartmental grant from the department of
licensing and regulatory affairs..................... 2,040,700
Federal revenues:
Total federal revenues................................. 5,432,600
Special revenue funds:
Total local revenues................................... 100,000
Total private revenues................................. 255,000
Total other state restricted revenues.................. 6,232,600
State general fund/general purpose..................... $ 3,469,100
Sec. 108. INFECTIOUS DISEASE CONTROL
Full-time equated classified positions........... 50.7
AIDS prevention, testing, and care programs--12.7 FTE
positions............................................ $ 59,449,300
Immunization local agreements.......................... 11,975,200
Immunization program management and field support--
15.0 FTE positions................................... 1,786,300
Pediatric AIDS prevention and control--1.0 FTE
position............................................. 1,231,400
Sexually transmitted disease control local agreements.. 3,360,700
Sexually transmitted disease control management and
field support--22.0 FTE positions.................... 3,743,300
GROSS APPROPRIATION.................................... $ 81,546,200
Appropriated from:
Federal revenues:
Total federal revenues................................. 43,541,200
Special revenue funds:
Total private revenues................................. 27,707,700
Total other state restricted revenues.................. 7,470,600
State general fund/general purpose..................... $ 2,826,700
Sec. 109. LABORATORY SERVICES
Full-time equated classified positions.......... 111.0
Laboratory services--111.0 FTE positions............... $ 17,183,900
GROSS APPROPRIATION.................................... $ 17,183,900
Appropriated from:
Interdepartmental grant revenues:
Interdepartmental grant from the department of
environmental quality................................ 471,900
Federal revenues:
Total federal revenues................................. 2,092,300
Special revenue funds:
Total other state restricted revenues.................. 8,267,600
State general fund/general purpose..................... $ 6,352,100
Sec. 110. EPIDEMIOLOGY
Full-time equated classified positions.......... 126.7
AIDS surveillance and prevention program............... $ 2,254,100
Asthma prevention and control--2.6 FTE positions....... 856,900
Bioterrorism preparedness--66.6 FTE positions.......... 49,286,900
Epidemiology administration--40.0 FTE positions........ 8,202,000
Lead abatement program--7.0 FTE positions.............. 2,647,700
Newborn screening follow-up and treatment services--
10.5 FTE positions................................... 5,337,800
Tuberculosis control and prevention.................... 867,000
GROSS APPROPRIATION.................................... $ 69,452,400
Appropriated from:
Federal revenues:
Total federal revenues................................. 61,271,300
Special revenue funds:
Total private revenues................................. 25,000
Total other state restricted revenues.................. 6,367,900
State general fund/general purpose..................... $ 1,788,200
Sec. 111. LOCAL HEALTH ADMINISTRATION AND GRANTS
Full-time equated classified positions............ 2.0
Essential local public health services................. $ 37,386,100
Implementation of 1993 PA 133, MCL 333.17015........... 20,000
Local health services--2.0 FTE positions............... 500,000
Medicaid outreach cost reimbursement to local health
departments.......................................... 9,000,000
GROSS APPROPRIATION.................................... $ 46,906,100
Appropriated from:
Federal revenues:
Total federal revenues................................. 9,500,000
Special revenue funds:
Total local revenues................................... 5,150,000
State general fund/general purpose..................... $ 32,256,100
Sec. 112. CHRONIC DISEASE AND INJURY PREVENTION AND
HEALTH PROMOTION
Full-time equated classified positions........... 75.5
Cancer prevention and control program--12.0 FTE
positions............................................ $ 14,298,200
Chronic disease control and health promotion
administration--33.4 FTE positions................... 5,950,100
Diabetes and kidney program--12.2 FTE positions........ 1,777,600
Public health traffic safety coordination--1.0 FTE
position............................................. 87,500
Smoking prevention program--14.0 FTE positions......... 2,075,000
Violence prevention--2.9 FTE positions................. 2,123,200
GROSS APPROPRIATION.................................... $ 26,311,600
Appropriated from:
Federal revenues:
Total federal revenues................................. 23,884,200
Special revenue funds:
Total private revenues................................. 61,600
Total other state restricted revenues.................. 649,700
State general fund/general purpose..................... $ 1,716,100
Sec. 113. FAMILY, MATERNAL, AND CHILDREN'S HEALTH
SERVICES
Full-time equated classified positions........... 55.1
Childhood lead program--6.0 FTE positions.............. $ 1,598,400
Dental programs--3.0 FTE positions..................... 992,000
Dental program for persons with developmental
disabilities......................................... 151,000
Family, maternal, and children's health services
administration--43.6 FTE positions................... 6,047,700
Family planning local agreements....................... 9,085,700
Local MCH services..................................... 7,018,100
Pregnancy prevention program........................... 602,100
Prenatal care outreach and service delivery support.... 3,794,200
Special projects--2.5 FTE positions.................... 8,397,800
Sudden infant death syndrome program................... 321,300
GROSS APPROPRIATION.................................... $ 38,008,300
Appropriated from:
Federal revenues:
Total federal revenues................................. 32,846,800
Special revenue funds:
Total local revenues................................... 75,000
State general fund/general purpose..................... $ 5,086,500
Sec. 114. WOMEN, INFANTS, AND CHILDREN FOOD AND
NUTRITION PROGRAM
Full-time equated classified positions........... 45.0
Women, infants, and children program administration
and special projects--45.0 FTE positions............. $ 15,900,800
Women, infants, and children program local agreements
and food costs....................................... 253,825,500
GROSS APPROPRIATION.................................... $ 269,726,300
Appropriated from:
Federal revenues:
Total federal revenues................................. 211,112,500
Special revenue funds:
Total private revenues................................. 58,613,800
State general fund/general purpose..................... $ 0
Sec. 115. CHILDREN'S SPECIAL HEALTH CARE SERVICES
Full-time equated classified positions........... 47.8
Children's special health care services
administration--45.0 FTE positions................... $ 5,245,700
Bequests for care and services--2.8 FTE positions...... 1,511,400
Outreach and advocacy.................................. 3,773,500
Nonemergency medical transportation.................... 2,679,300
Medical care and treatment............................. 294,056,500
GROSS APPROPRIATION.................................... $ 307,266,400
Appropriated from:
Federal revenues:
Total federal revenues................................. 175,308,200
Special revenue funds:
Total private revenues................................. 996,800
Total other state restricted revenues.................. 3,843,600
State general fund/general purpose..................... $ 127,117,800
Sec. 116. CRIME VICTIM SERVICES COMMISSION
Full-time equated classified positions........... 13.0
Grants administration services--13.0 FTE positions..... $ 1,811,300
Justice assistance grants.............................. 19,106,100
Crime victim rights services grants.................... 16,570,000
GROSS APPROPRIATION.................................... $ 37,487,400
Appropriated from:
Federal revenues:
Total federal revenues................................. 23,467,200
Special revenue funds:
Total other state restricted revenues.................. 14,020,200
State general fund/general purpose..................... $ 0
Sec. 117. OFFICE OF SERVICES TO THE AGING
Full-time equated classified positions........... 43.5
Office of services to aging administration--43.5 FTE
positions............................................ $ 6,408,800
Community services..................................... 35,314,400
Nutrition services..................................... 35,430,200
Foster grandparent volunteer program................... 2,233,600
Retired and senior volunteer program................... 627,300
Senior companion volunteer program..................... 1,604,400
Employment assistance.................................. 3,792,500
Respite care program................................... 5,868,700
GROSS APPROPRIATION.................................... $ 91,279,900
Appropriated from:
Federal revenues:
Total federal revenues................................. 57,159,200
Special revenue funds:
Total private revenues................................. 677,500
Merit award trust fund................................. 4,468,700
Total other state restricted revenues.................. 1,400,000
State general fund/general purpose..................... $ 27,574,500
Sec. 118. MEDICAL SERVICES ADMINISTRATION
Full-time equated classified positions.......... 415.0
Medical services administration--415.0 FTE positions... $ 65,057,000
Facility inspection contract........................... 132,800
MIChild administration................................. 4,327,800
GROSS APPROPRIATION.................................... $ 69,517,600
Appropriated from:
Federal revenues:
Total federal revenues................................. 47,476,900
Special revenue funds:
Total local revenues................................... 105,900
Total private revenues................................. 100,000
Total other state restricted revenues.................. 110,100
State general fund/general purpose..................... $ 21,724,700
Sec. 119. MEDICAL SERVICES
Hospital services and therapy.......................... $ 1,273,299,300
Hospital disproportionate share payments............... 45,000,000
Physician services..................................... 303,223,900
Medicare premium payments.............................. 409,169,400
Pharmaceutical services................................ 338,717,500
Home health services................................... 6,791,100
Hospice services....................................... 139,637,700
Transportation......................................... 16,009,800
Auxiliary medical services............................. 6,252,100
Dental services........................................ 162,930,800
Ambulance services..................................... 10,900,000
Long-term care services................................ 1,686,454,600
Medicaid home- and community-based services waiver..... 229,921,000
Adult home help services............................... 289,032,800
Personal care services................................. 14,421,500
Program of all-inclusive care for the elderly.......... 30,707,800
Health plan services................................... 4,093,812,400
MIChild program........................................ 51,753,100
Plan first family planning waiver...................... 13,089,200
Medicaid adult benefits waiver......................... 105,877,700
Special indigent care payments......................... 88,518,500
Federal Medicare pharmaceutical program................ 185,599,300
Maternal and child health.............................. 20,279,500
Subtotal basic medical services program................ 9,521,399,000
School-based services.................................. 91,296,500
Special Medicaid reimbursement......................... 339,382,000
Subtotal special medical services payments............. 430,678,500
GROSS APPROPRIATION.................................... $ 9,952,077,500
Appropriated from:
Federal revenues:
Total federal revenues................................. 6,579,215,500
Special revenue funds:
Total local revenues................................... 68,249,700
Total private revenues................................. 6,332,200
Merit award trust fund................................. 82,275,800
Total other state restricted revenues.................. 1,940,891,700
State general fund/general purpose..................... $ 1,275,112,600
Sec. 120. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 33,521,400
Michigan Medicaid information system................... 25,723,700
GROSS APPROPRIATION.................................... $ 59,245,100
Appropriated from:
Federal revenues:
Total federal revenues................................. 44,191,200
Special revenue funds:
Total other state restricted revenues.................. 1,865,900
State general fund/general purpose..................... $ 13,188,000
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2011-2012
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 2011-2012 is $4,901,035,400.00 and
state spending from state resources to be paid to local units of
government for fiscal year 2011-2012 is $1,417,739,700.00. 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
Community residential and support services............. $ 258,500
Housing and support services........................... 599,800
COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE SERVICES PROGRAMS
State disability assistance program substance abuse
services............................................ $ 2,018,000
Community substance abuse prevention, education, and
treatment programs.................................. 14,576,700
Medicaid mental health services........................ 702,753,600
Community mental health non-Medicaid services.......... 273,908,100
Mental health services for special populations......... 5,842,800
Medicaid adult benefits waiver......................... 10,854,200
Medicaid substance abuse services...................... 15,815,900
Children's waiver home care program.................... 5,906,800
Nursing home PASARR.................................... 2,717,200
Health policy, regulation, and professions
Primary care services.................................. $ 88,900
INFECTIOUS DISEASE CONTROL
AIDS prevention, testing, and care programs............ $ 1,000,000
Sexually transmitted disease control local agreements.. 175,200
LABORATORY SERVICES
Laboratory services.................................... $ 13,700
LOCAL HEALTH ADMINISTRATION AND GRANTS
Implementation of 1993 PA 133, MCL 333.17015........... $ 8,000
Essential local public health services................. 32,256,100
CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION
Cancer prevention and control program.................. $ 450,000
Chronic disease control and health promotion
administration ........................................ 75,000
FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES
Childhood lead program................................. $ 51,100
Prenatal care outreach and service delivery support.... 1,500,000
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Medical care and treatment............................. $ 1,409,900
Outreach and advocacy.................................. 1,237,500
MEDICAL SERVICES
Dental services........................................ $ 2,536,000
Long-term care services................................ 285,952,300
Transportation......................................... 2,971,900
Medicaid adult benefits waiver......................... 6,246,800
Hospital services and therapy.......................... 4,965,500
Physician services..................................... 3,774,800
OFFICE OF SERVICES TO THE AGING
Community services..................................... $ 12,233,500
Nutrition services..................................... 8,787,000
Foster grandparent volunteer program................... 679,800
Retired and senior volunteer program................... 175,000
Senior companion volunteer program..................... 215,000
Respite care program................................... 5,384,800
CRIME VICTIM SERVICES COMMISSION
Crime victim rights services grants.................... $ 10,300,000
TOTAL OF PAYMENTS TO LOCAL UNITS
OF GOVERNMENT.......................................... $ 1,417,739,700
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) "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) "Current fiscal year" means the fiscal year ending
September 30, 2012.
(d) "Department" means the department of community health.
(e) "Director" means the director of the department.
(f) "DSH" means disproportionate share hospital.
(g) "EPSDT" means early and periodic screening, diagnosis, and
treatment.
(h) "Federal health care reform legislation" means the patient
protection and affordable care act, Public Law 111-148, and the
health care and education reconciliation act of 2010, Public Law
111-152.
(i) "Federal poverty level" means the poverty guidelines
published annually in the federal register by the United States
department of health and human services under its authority to
revise the poverty line under 42 USC 9902.
(j) "GME" means graduate medical education.
(k) "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.
(l) "HEDIS" means healthcare effectiveness data and information
set.
(m) "HIV" means human immunodeficiency virus.
(n) "HMO" means health maintenance organization.
(o) "IDEA" means the individuals with disabilities education
act, 20 USC 1400 to 1482.
(p) "MCH" means maternal and child health.
(q) "MIChild" means the program described in section 1670.
(r) "PASARR" means the preadmission screening and annual
resident review required under the omnibus budget reconciliation
act of 1987, section 1919(e)(7) of the social security act, and 42
USC 1396r.
(s) "PIHP" means a specialty prepaid inpatient health plan for
Medicaid mental health services, services to individuals with
developmental disabilities, and substance abuse services. Specialty
prepaid inpatient health plans are described in section 232b of the
mental health code, 1974 PA 258, MCL 330.1232b.
(t) "Title XVIII" and "Medicare" mean title XVIII of the
social security act, 42 USC 1395 to 1395kkk.
(u) "Title XIX" and "Medicaid" mean title XIX of the social
security act, 42 USC 1396 to 1396w-5.
(v) "Title XX" means title XX of the social security act, 42
USC 1397 to 1397m-5.
Sec. 206. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $200,000,000.00 for
federal 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.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $40,000,000.00 for state
restricted 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 management and budget act, 1984
PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $20,000,000.00 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 departments 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. Funds appropriated in part 1 shall not be used 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. Preference shall be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
quality. In addition, preference shall be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans if they are competitively
priced and of comparable quality.
Sec. 210. The director shall take all reasonable steps to
ensure that businesses in deprived and depressed communities
compete for and perform contracts to provide services or supplies,
or both. The director shall strongly encourage firms with which the
department contracts to subcontract with certified businesses in
depressed and deprived communities for services, supplies, or both.
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) On or before February 1 of the current fiscal
year, the department shall report to the house 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.
(2) Upon the release of the next fiscal year executive budget
recommendation, the department shall report to the same parties in
subsection (1) 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
next fiscal year executive budget proposal.
Sec. 213. The state departments, agencies, and commissions
receiving tobacco tax funds and healthy Michigan funds from part 1
shall report by April 1 of the current fiscal year to the senate
and house 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 and a summary of organizations
receiving these funds.
(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 used to evaluate programs, including
measures of the effectiveness of these programs in improving the
health of Michigan residents.
(e) Any other information considered necessary by the house of
representatives or senate appropriations committees or the state
budget director.
Sec. 215. (1) The department shall report to the house and
senate appropriations subcommittees on the budget for the
department, the joint committee on administrative rules, and the
senate and house fiscal agencies by no later than April 1 of the
current fiscal year on each specific policy change made by the
department to implement a public act affecting that department that
took effect during the preceding calendar year.
(2) Funds appropriated in part 1 shall not be used by the
department to adopt a rule that will apply to a small business and
that will have a disproportionate economic impact on small
businesses because of the size of those businesses if the
department fails to reduce the disproportionate economic impact of
the rule on small businesses as provided under section 40 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.240.
(3) As used in this section:
(a) "Rule" means that term as defined under section 7 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.207.
(b) "Small business" means that term as defined under section
7a of the administrative procedures act of 1969, 1969 PA 306, MCL
24.207a.
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 the current fiscal
year, but shall also include reimbursements, refunds, adjustments,
and settlements from prior years.
Sec. 218. The department shall include the following in its
annual list of proposed basic health services as required in part
23 of the public health code, 1978 PA 368, MCL 333.2301 to
333.2321:
(a) Immunizations.
(b) Communicable disease control.
(c) Sexually transmitted disease control.
(d) Tuberculosis control.
(e) Prevention of gonorrhea eye infection in newborns.
(f) Screening newborns for the conditions listed in section
5431 of the public health code, 1978 PA 368, MCL 333.5431, or
recommended by the newborn screening quality assurance advisory
committee created under section 5430 of the public health code,
1978 PA 368, MCL 333.5430.
(g) Community health annex of the Michigan emergency
management plan.
(h) 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 and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget director on or before January 1 of
the current fiscal year 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) On or before September 30 of the current fiscal year, the
department shall provide to the same parties listed in subsection
(1) a copy of all 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.
Sec. 223. The department 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
department shall not collect fees under this section that exceed
the cost of the expenditures.
Sec. 259. From the funds appropriated in part 1 for
information technology, departments and agencies shall pay user
fees to the department of technology, management, and budget for
technology-related services and projects. The user fees shall be
subject to provisions of an interagency agreement between the
department and agencies and the department of technology,
management, and budget.
Sec. 264. (1) 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 and senate appropriations subcommittees on community health
and the house and senate fiscal agencies of the submission.
(2) The department shall provide written or verbal biannual
reports to the senate and house appropriations subcommittees on
community health and the senate and house fiscal agencies
summarizing the status of any new or ongoing discussions with the
centers for Medicare and Medicaid services or the federal
department of health and human services regarding potential or
future Medicaid waiver applications.
Sec. 265. The department 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.
The department may electronically retain copies of reports unless
otherwise required by federal and state guidelines.
Sec. 266. (1) Due to the current budgetary problems in this
state, out-of-state travel for the fiscal year ending September 30,
2012 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 senate and house of representatives standing committees on
appropriations.
Sec. 267. The department shall not take disciplinary action
against an employee for communicating with a member of the
legislature or his or her staff.
Sec. 270. Within 180 days after receipt of the notification
from the attorney general's office of a legal action in which
expenses had been recovered pursuant to section 106(4) of the
social welfare act, 1939 PA 280, MCL 400.106, or any other statute
under which the department has the right to recover expenses, the
department shall submit a written report to the house and senate
appropriations subcommittees on community health, the house and
senate fiscal agencies, and the state budget office which includes,
at a minimum, all of the following:
(a) The total amount recovered from the legal action.
(b) The program or service for which the money was originally
expended.
(c) Details on the disposition of the funds recovered such as
the appropriation or revenue account in which the money was
deposited.
(d) A description of the facts involved in the legal action.
Sec. 276. Funds appropriated in part 1 shall not be used by a
principal executive department, state agency, or authority to hire
a person to provide legal services that are the responsibility of
the attorney general. This prohibition does not apply to legal
services for bonding activities and for those activities that the
attorney general authorizes.
Sec. 282. (1) The department, through its organizational units
responsible for departmental administration, operation, and
finance, shall establish uniform definitions, standards, and
instructions for the classification, allocation, assignment,
calculation, recording, and reporting of administrative costs by
the following entities:
(a) Coordinating agencies on substance abuse and the Salvation
Army harbor light program that receive payment or reimbursement
from funds appropriated under section 104.
(b) Area agencies on aging and local providers that receive
payment or reimbursement from funds appropriated under section 117.
(2) By May 15 of the current fiscal year, the department shall
provide a written draft of its proposed definitions, standards, and
instructions to the house of representatives and senate
appropriations subcommittees on community health, the house and
senate fiscal agencies, and the state budget director.
Sec. 287. Not later than November 15, 2011, the department
shall prepare and transmit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. This report shall summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The report
shall be transmitted to the office of the state budget, the
chairpersons of the senate and house of representatives standing
appropriations committees, and the senate and house fiscal
agencies.
Sec. 292. (1) The department shall maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(d) The number of active department employees by job
classification.
(e) Job specifications and wage rates.
(2) The department may develop and operate its own website to
provide this information or may reference the state's central
transparency website as the source for this information.
Sec. 294. 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 technology, management, and budget. 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. 295. The department shall explore program and other
service areas, including eligibility determination, where
privatization may lead to increased efficiencies and budgetary
savings.
Sec. 296. Within 14 days after the release of the executive
budget recommendation, the department shall provide the state
budget director, the senate and house appropriations chairs, the
senate and house appropriations subcommittees on community health,
respectively, and the senate and house fiscal agencies with an
annual report on estimated state restricted fund balances, state
restricted fund projected revenues, and state restricted fund
expenditures for the fiscal years ending September 30, 2011 and
September 30, 2012.
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 PIHPs. The
department shall ensure that each CMHSP or PIHP provides all of the
following:
(a) A system of single entry and single exit.
(b) A complete array of mental health services that includes,
but is not 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 PIHP's program
or through assistance with locating and obtaining services to meet
these needs.
(e) A system of case management or care 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 PIHPs shall be made upon the execution
of contracts between the department and CMHSPs or PIHPs. 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 PIHP 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 PIHPs
entered into under this subsection for the current fiscal year 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 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 PIHPs that would affect
rates or expenditures are enacted.
(b) Any amendments to contracts with CMHSPs or PIHPs 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. (1) From the funds appropriated in part 1 for mental
health services for special populations, the department shall
ensure that CMHSPs or PIHPs meet with multicultural service
providers to develop a workable framework for contracting, service
delivery, and reimbursement.
(2) Funds appropriated in part 1 for mental health services
for special populations shall not be utilized for services provided
to illegal immigrants, fugitive felons, and individuals who are not
residents of this state. The department shall maintain contracts
with recipients of multicultural services grants that mandate
grantees establish that recipients of services are legally residing
in the United States. An exception to the contractual provision
shall be allowed to address individuals presenting with emergent
mental health conditions.
(3) The department shall require an annual report from the
independent organizations that receive mental health services for
special populations funding. The annual report, due January 1 of
the current fiscal year, shall include specific information on
services and programs provided, the client base to which the
services and programs were provided, information on any wrap around
services provided, and the expenditures for those services. The
department shall provide the annual reports to the senate and house
appropriations subcommittees on community health and the senate and
house fiscal agencies.
Sec. 404. (1) Not later than May 31 of the current fiscal
year, the department shall provide a report on the community mental
health services programs to the members of the house 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
PIHP 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 that, minimally, includes a
description of funding authorized; expenditures by client group and
fund source; and cost information by service category, including
administration. Service category includes all department-approved
services.
(d) Data describing service outcomes that includes, but is not
limited to, an evaluation of consumer satisfaction, consumer
choice, and quality of life concerns including, but not limited to,
housing and employment.
(e) Information about access to community mental health
services programs that includes, but is not limited to, the
following:
(i) The number of people receiving requested services.
(ii) The number of people who requested services but did not
receive services.
(f) The number of second opinions requested under the code and
the determination of any appeals.
(g) An analysis of information provided by CMHSPs in response
to the needs assessment requirements of the mental health code,
1974 PA 258, MCL 330.1001 to 330.2106, including information about
the number of individuals in the service delivery system who have
requested and are clinically appropriate for different services.
(h) Lapses and carryforwards during the immediately preceding
fiscal year for CMHSPs or PIHPs.
(i) Information about contracts for mental health services
entered into by CMHSPs or PIHPs with providers, including, but not
limited to, all of the following:
(i) The amount of the contract, organized by type of service
provided.
(ii) Payment rates, organized by the type of service provided.
(iii) Administrative costs for services provided to CMHSPs or
PIHPs.
(j) 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 PIHP 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 PIHPs.
(k) An estimate of the number of direct care workers in local
residential settings and paraprofessional and other nonprofessional
direct care workers in settings where skill building, community
living supports and training, and personal care services are
provided by CMHSPs or PIHPs as of September 30 of the prior fiscal
year employed directly or through contracts with provider
organizations.
(3) The department shall include data reporting requirements
listed in subsection (2) in the annual contract with each
individual CMHSP or PIHP.
(4) The department shall take all reasonable actions to ensure
that the data required are complete and consistent among all CMHSPs
or PIHPs.
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 CMHSPs or PIHPs to coordinate care and services
provided to individuals with severe and persistent mental illness
and substance abuse diagnoses.
(2) The department shall approve coordinating agency fee
schedules for providing substance abuse services and charge
participants in accordance with their ability to pay.
(3) It is the intent of the legislature that the coordinating
agencies continue current efforts to collaborate on the delivery of
services to those clients with mental illness and substance abuse
diagnoses.
(4) Coordinating agencies that are located completely within
the boundary of a PIHP shall conduct a study of the administrative
costs and efficiencies associated with consolidation with that
PIHP. If that coordinating agency realizes an administrative cost
savings of 5% or greater of their current costs, then that
coordinating agency shall initiate discussions regarding a
potential merger in accordance with section 6226 of the public
health code, 1978 PA 368, MCL 333.6226. The department shall report
to the legislature by April 1 of the current fiscal year on any
such discussions.
Sec. 408. (1) By April 1 of the current fiscal year, the
department shall report the following data from the prior fiscal
year on substance abuse prevention, education, and treatment
programs to the senate and house 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 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. 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 PIHP requires the CMHSP or PIHP to implement
programs to encourage diversion of individuals with serious mental
illness, serious emotional disturbance, or developmental disability
from possible jail incarceration when appropriate.
(2) Each CMHSP or PIHP 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.
Sec. 418. On or before the tenth of each month, the department
shall report to the senate and house appropriations subcommittees
on community health, the senate and house fiscal agencies, and the
state budget director on the amount of funding paid to PIHPs to
support the Medicaid managed mental health care program in the
preceding month. The information shall include the total paid to
each PIHP, per capita rate paid for each eligibility group for each
PIHP, and number of cases in each eligibility group for each PIHP,
and year-to-date summary of eligibles and expenditures for the
Medicaid managed mental health care program.
Sec. 424. Each PIHP 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, shall be paid within 45
days after receipt of the claim by the PIHP. A clean claim that is
not paid within this time frame shall bear simple interest at a
rate of 12% per annum.
(b) A PIHP shall 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 PIHP shall pay
the claim within 30 days after the defect is corrected.
Sec. 428. Each PIHP 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 PIHPs. 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 PIHP.
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 of the
current fiscal year.
Sec. 458. By April 15 of the current fiscal year, the
department shall provide each of the following to the house and
senate appropriations subcommittees on community health, the house
and senate fiscal agencies, and the state budget director:
(a) An updated plan for implementing each of the
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. This report shall examine the potential impact that
utilization of secure residential facilities would have upon the
state's need for adult mental health facilities.
(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. 462. (1) With the exception of administrative costs, in
order to implement the fiscal year 2011-2012 funding reduction to
the community mental health non-Medicaid services line, the
department shall further implement the funding formula that was
partially implemented during fiscal year 2009-2010 in which the
funding reduction does not exceed 4% for each CMHSP.
(2) The department may convene a workgroup including CMHSPs
regarding the allocation of the current fiscal year administrative
reduction of up to $3,400,000.00.
Sec. 468. To foster a more efficient administration of and to
integrate care in publicly funded mental health and substance abuse
services, the department shall maintain criteria for the
incorporation of a city, county, or regional substance abuse
coordinating agency into a local community mental health authority
that will encourage those city, county, or regional coordinating
agencies to incorporate as local community mental health
authorities. If necessary, the department may make accommodations
or adjustments in formula distribution to address administrative
costs related to the maintenance of the criteria under this section
and to the incorporation of the additional coordinating agencies
into local community mental health authorities provided that all of
the following are satisfied:
(a) The department provides funding for the administrative
costs incurred by coordinating agencies incorporating into
community mental health authorities. The department shall not
provide more than $75,000.00 to any coordinating agency for
administrative costs.
(b) The accommodations or adjustments favor coordinating
agencies who voluntarily elect to integrate with local community
mental health authorities.
(c) The accommodations or adjustments do not negatively affect
other coordinating agencies.
Sec. 470. (1) For those substance abuse coordinating agencies
that have voluntarily incorporated into community mental health
authorities and accepted funding from the department for
administrative costs incurred pursuant to section 468, the
department shall establish written expectations for those CMHSPs,
PIHPs, and substance abuse coordinating agencies and counties with
respect to the integration of mental health and substance abuse
services. At a minimum, the written expectations shall provide for
the integration of those services as follows:
(a) Coordination and consolidation of administrative functions
and redirection of efficiencies into service enhancements.
(b) Consolidation of points of 24-hour access for mental
health and substance abuse services in every community.
(c) Alignment of coordinating agencies and PIHPs boundaries to
maximize opportunities for collaboration and integration of
administrative functions and clinical activities.
(2) By May 1 of the current fiscal year, the department shall
report to the house and senate appropriations subcommittees on
community health, the house and senate fiscal agencies, and the
state budget office on the impact and effectiveness of this section
and the status of the integration of mental health and substance
abuse services.
Sec. 474. The department shall ensure that each contract with
a CMHSP or PIHP requires the CMHSP or PIHP to provide each
recipient and his or her family with information regarding the
different types of guardianship and the alternatives to
guardianship. A CMHSP or PIHP shall not, in any manner, attempt to
reduce or restrict the ability of a recipient or his or her family
from seeking to obtain any form of legal guardianship without just
cause.
Sec. 490. (1) The department shall continue a workgroup to
develop a plan to maximize uniformity and consistency in the
standards required of providers contracting directly with PIHPs,
CMHSPs, and substance abuse coordinating agencies. These standards
shall apply to community living supports, personal care services,
substance abuse services, skill-building services, and other
similar supports and services providers who contract with PIHPs,
CMHSPs, and substance abuse coordinating agencies or their
contractors.
(2) The workgroup shall include representatives of the
department, PIHPs, CMHSPs, substance abuse coordinating agencies,
and affected providers. The standards shall include, but are not
limited to, contract language, training requirements for direct
support staff, performance indicators, financial and program
audits, and billing procedures.
(3) The department shall provide a status report on the
workgroup's efforts to the senate and house appropriations
subcommittees on community health, the senate and house fiscal
agencies, and the state budget director by June 1 of the current
fiscal year.
Sec. 491. The department shall explore changes in program
policy in the habilitation supports waiver for persons with
developmental disabilities that would permit the movement of a slot
that has become available to a county that has demonstrated a
greater need for the services.
Sec. 492. If a CMHSP has entered into an agreement with a
county or county sheriff to provide mental health services to the
inmates of the county jail, the department shall not prohibit the
use of state general fund/general purpose dollars by CMHSPs to
provide mental health services to inmates of a county jail.
Sec. 494. (1) In order to avoid duplication of efforts, the
department shall utilize applicable national accreditation review
criteria to determine compliance with corresponding state
requirements for CMHSPs, PIHPs, or subcontracting provider agencies
that have been reviewed and accredited by a national accrediting
entity for behavioral health care services.
(2) Upon a coordinated submission by the CMHSPs, PIHPs, or
subcontracting provider agencies, a listing of program requirements
that are part of the state program review criteria but are not
reviewed by an applicable national accrediting entity, the
department shall review the listing and provide a recommendation to
the house and senate appropriations subcommittees on community
health, the house and senate fiscal agencies, and the state budget
office as to whether or not state program review should continue.
The CMHSPs, PIHPs, or subcontracting agencies may request the
department to convene a workgroup to fulfill this section.
(3) The department shall continue to comply with state and
federal law and shall not initiate an action that negatively
impacts beneficiary safety.
(4) As used in this section, "national accrediting entity"
means the joint commission on accreditation of healthcare
organizations, the commission on accreditation of rehabilitation
facilities, the council of accreditation, or other appropriate
entity, as approved by the department.
(5) By July 1 of the current fiscal year, the department shall
provide a progress report to the house and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget office on implementation of this
section.
Sec. 495. It is the intent of the legislature that the
department begin working with the centers for Medicare and Medicaid
services to develop a program that creates a medical home for the
individuals receiving Medicaid mental health benefits.
Sec. 496. CMHSPs and PIHPs are permitted to offset state
funding reductions by limiting the administrative component of
their contracts with providers and case management to a maximum of
9%.
Sec. 497. The population data used in determining the
distribution of substance abuse block grant funds shall be from the
most recent federal census.
STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES
Sec. 601. 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. A portion of
revenues collected through project efforts may be used 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 of the current fiscal year from 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. 605. (1) The department shall not implement any closures
or consolidations of state hospitals, centers, or agencies until
CMHSPs or PIHPs have programs and services in place for those
individuals currently in those facilities and a plan for service
provision for those individuals who would have been admitted to
those facilities.
(2) All closures or consolidations are dependent upon adequate
department-approved CMHSP and PIHP plans that include a discharge
and aftercare plan for each individual currently in the facility. A
discharge and aftercare plan shall address the individual's housing
needs. A homeless shelter or similar temporary shelter arrangements
are inadequate to meet the individual'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
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
PIHPs responsible for providing services for individuals 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.
Sec. 608. Effective October 1, 2011, the department, in
consultation with the department of technology, management, and
budget, may maintain a bid process to identify 1 or more private
contractors to provide food service and custodial services for the
administrative areas at any state hospital identified by the
department as capable of generating savings through the outsourcing
of such services.
PUBLIC HEALTH ADMINISTRATION
Sec. 650. The department shall report to the senate and house
appropriations subcommittees on community health by April 1 of the
current fiscal year on its criteria and methodology used to derive
the information provided to residents in the annual Michigan fish
advisory.
Sec. 653. The department shall maintain plans to address
potential state public health emergencies.
HEALTH POLICY
Sec. 704. The department shall continue to contract with
grantees supported through the appropriation in part 1 for the
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. 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. 712. From the funds appropriated in part 1 for primary
care services, $250,000.00 shall be allocated to free health
clinics operating in the state. The department shall distribute the
funds equally to each free health clinic. For the purpose of this
appropriation, "free health clinics" means nonprofit organizations
that use volunteer health professionals to provide care to
uninsured individuals.
Sec. 713. The department shall continue support of
multicultural agencies that provide primary care services from the
funds appropriated in part 1.
INFECTIOUS DISEASE CONTROL
Sec. 804. The department, in conjunction with efforts to
implement the Michigan prisoner reentry initiative, shall cooperate
with the department of corrections to share data and information as
they relate to prisoners being released who are HIV positive or
positive for the hepatitis C antibody.
LOCAL HEALTH ADMINISTRATION AND GRANTS
Sec. 901. The amount appropriated in part 1 for implementation
of the 1993 additions of or 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 be used to 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 of the current fiscal year, 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 6.25% of the local health department's essential
local public health services funding. This penalty shall only be
assessed to the local county that requests the dissolution of the
health department.
Sec. 904. (1) Funds appropriated in part 1 for essential local
public health services shall be prospectively allocated to local
health departments to support immunizations, infectious disease
control, sexually transmitted disease control and prevention,
hearing screening, vision services, food protection, public water
supply, private groundwater supply, and on-site sewage management.
Food protection shall be provided in consultation with the
department of agriculture and rural development. Public water
supply, private groundwater supply, and on-site sewage management
shall be provided in consultation with the department of
environmental quality.
(2) Local public health departments shall 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 the current fiscal year of
at least the amount expended in fiscal year 1992-1993 for the
services described in subsection (1).
CHRONIC DISEASE AND INJURY PREVENTION AND HEALTH PROMOTION
Sec. 1004. It is the intent of the legislature that the
department continue to collaborate with the county of St. Clair and
the city of Detroit southwest community to investigate and evaluate
cancer rates.
FAMILY, MATERNAL, AND CHILDREN'S HEALTH SERVICES
Sec. 1103. Beginning January 3, 2012, the department shall
annually issue to the legislature, and to the public on the
Internet, a report providing estimated public funds administered by
the department for family planning, sexually transmitted infection
prevention and treatment, and pregnancies and births, as well as
demographics collected by the department as self-reported by
individuals utilizing those services.
Sec. 1104. (1) Before April 1 of the current fiscal year, 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 adolescents served
and amounts expended for each group for the immediately preceding
fiscal year.
(c) A breakdown of the expenditure of these funds between
urban and rural communities.
(2) The department shall ensure that the distribution of funds
through the programs described in subsection (1) takes into account
the needs of rural communities.
(3) For the purposes of this section, "rural" means a county,
city, village, or township with a population of 30,000 or less,
including those entities if located within a metropolitan
statistical area.
Sec. 1106. Each family planning program receiving federal
title X family planning funds under 42 USC 300 to 300a-8 shall be
in compliance with all performance and quality assurance indicators
that the office of family planning within the United States
department of health and human services specifies in the family
planning annual report. An agency not in compliance with the
indicators shall not receive supplemental or reallocated funds.
Sec. 1108. The funds appropriated in part 1 for pregnancy
prevention programs shall not be used to provide abortion
counseling, referrals, or services.
Sec. 1109. (1) From the amounts appropriated in part 1 for
dental programs, funds shall be allocated to the Michigan dental
association for the administration of a volunteer dental program
that provides dental services to the uninsured.
(2) Not later than December 1 of the current fiscal year, the
department shall report to the senate and house appropriations
subcommittees on community health and the senate and house standing
committees on health policy the number of individual patients
treated, number of procedures performed, and approximate total
market value of those procedures from the immediately preceding
fiscal year.
Sec. 1117. Contingent upon the availability of federal or
state restricted funds, the department may pursue efforts to reduce
the incidence of stillbirth. Efforts shall include the
establishment of a program to increase public awareness of
stillbirth, promote education to monitor fetal movements counting
kicks, promote a uniform definition of stillbirth, standardize data
collection of stillbirths, and collaborate with appropriate federal
agencies and statewide organizations. The department shall seek
federal or other grant funds to assist in implementing this
program.
Sec. 1119. From the funds appropriated in part 1 for family
planning local agreements or pregnancy prevention programs, no
state funds shall be used to encourage or support abortion
services.
Sec. 1133. The department shall release infant mortality rate
data to all local public health departments 72 hours or more before
releasing infant mortality rate data to the public.
Sec. 1135. (1) If funds become available, provision of the
school health education curriculum, such as the Michigan model for
health or another comprehensive school health education curriculum,
shall be in accordance with the health education goals established
by the Michigan model steering committee. The steering committee
shall be composed 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 mental health and substance abuse administration 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. 1153. The department shall ensure that individuals
residing in rural communities have sufficient access to the
services offered through the WIC program.
CHILDREN'S SPECIAL HEALTH CARE SERVICES
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 medical care and treatment to eligible patients
with hereditary coagulation defects, commonly known as hemophilia,
who are 21 years of age or older.
(d) Provide human growth hormone to eligible patients.
Sec. 1204. By October 1, 2011, the department shall report to
the senate and house appropriations committees on community health
and the senate and house fiscal agencies on its plan for enrolling
Medicaid eligible children's special health care services
recipients in the Medicaid health plans. The report shall include
information on which Medicaid health plans are participating, the
methods used to assure continuity of care and continuity of ongoing
relationships with providers, and projected savings from the
implementation of the proposal.
CRIME VICTIM SERVICES COMMISSION
Sec. 1302. From the funds appropriated in part 1 for justice
assistance grants, up to $200,000.00 shall be allocated for
expansion of forensic nurse examiner programs to facilitate
training for improved evidence collection for the prosecution of
sexual assault. The funds shall be used for program coordination
and training.
OFFICE OF SERVICES TO THE AGING
Sec. 1401. The appropriation in part 1 to the office of
services to the aging for community services and nutrition 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. (1) The office of services to the aging shall
require each region to report to the office of services to the
aging and to the legislature 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.
(2) Data required in subsection (1) shall be recorded only for
individuals who have applied for participation in the home-
delivered meals program and who are initially determined as likely
to be eligible for home-delivered meals.
Sec. 1417. The department shall provide to the senate and
house appropriations subcommittees on community health, senate and
house fiscal agencies, and state budget director a report by March
30 of the current fiscal year that contains all of the following:
(a) The total allocation of state resources made to each area
agency on aging by individual program and administration.
(b) Detail expenditure by each area agency on aging by
individual program and administration including both state-funded
resources and locally-funded resources.
Sec. 1420. If funds become available, the department shall
create a pilot project to establish an aging care management
services program with services provided solely by nurses. This
pilot project shall be established in a county with a population
greater than 150,000 but less than 250,000.
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. 1603. (1) The department may establish a program for
individuals 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.
(4) The department shall modify program policies to permit
individuals eligible for the transitional medical assistance plus
program, as structured in fiscal year 2009-2010, to access medical
assistance coverage through a 100% cost share.
Sec. 1605. 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.
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.
(6) The department shall mandate enrollment of women, whose
qualifying condition is pregnancy, into Medicaid managed care
plans.
(7) The department shall encourage physicians to provide
women, whose qualifying condition for Medicaid is pregnancy, with a
referral to a Medicaid participating dentist at the first
pregnancy-related appointment.
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 co-payment, 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. 1620. (1) For fee-for-service recipients who do not
reside in nursing homes, the pharmaceutical dispensing fee shall be
$2.75 or the pharmacy's usual or customary cash charge, whichever
is less. For nursing home residents, the pharmaceutical dispensing
fee shall be $3.00 or the pharmacy's usual or customary cash
charge, whichever is less.
(2) The department shall require a prescription co-payment 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.
Sec. 1627. (1) The department shall use procedures and rebate
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, and children's
special health care services.
(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. Medicaid coverage for adult dental and podiatric
services shall continue 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.
Sec. 1631. (1) The department shall require co-payments on
dental, podiatric, and vision 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
regulations, the department shall require Medicaid recipients to
pay the following co-payments:
(a) Two dollars for a physician office visit.
(b) Three dollars for a hospital emergency room visit.
(c) Fifty dollars for the first day of an inpatient hospital
stay.
(d) One dollar for an outpatient hospital visit.
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. 1642. The department shall allow ambulatory surgery
centers in this state to fully participate in the Medicaid program.
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 shall receive authorization
from the recipient's HMO prior to admitting the recipient.
(3) Subsections (1) and (2) do not require an alteration to an
existing agreement between an HMO and its contracting hospitals and
do not require an HMO to reimburse for services that are not
considered to be medically necessary.
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, MIChoice long-term care
plan, and the mental health, substance abuse, and developmentally
disabled services program: 404, 411, 418, 428, 474, 494, 1607,
1657, 1662, 1689, 1699, 1740, 1764, 1787, 1815, 1820, 1835, 1850,
and 1853.
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 require Medicaid HMOs to provide
EPSDT utilization data through the encounter data system, and HEDIS
well child health measures in accordance with the national
committee for quality assurance prescribed methodology.
(3) The department shall provide a copy of the analysis of the
Medicaid HMO annual audited HEDIS 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.
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 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:
(a) "Dental care corporation", "health care corporation",
"insurer", and "prudent purchaser agreement" mean those terms as
defined in section 2 of the prudent purchaser act, 1984 PA 233, MCL
550.52.
(b) "Entity" means a health care corporation or insurer
operating in accordance with a prudent purchaser agreement.
(6) The department may enter into contracts to obtain certain
MIChild services from community mental health service programs.
(7) The department may make payments on behalf of children
enrolled in the MIChild program from the line-item appropriation
associated with the program as described in the MIChild state plan
approved by the United States department of health and human
services, or from other medical services.
(8) The department shall assure that an external quality
review of each MIChild contractor, as described in subsection (5),
is performed, which analyzes and evaluates the aggregated
information on quality, timeliness, and access to health care
services that the contractor furnished to MIChild beneficiaries.
(9) The department shall develop an automatic enrollment
algorithm that is based on quality and performance factors.
Sec. 1673. The department may establish premiums for MIChild
eligible individuals in families with income above 150% of the
federal poverty level. The monthly premiums shall not be less than
$10.00 or exceed $15.00 for a family.
Sec. 1682. (1) The department shall implement enforcement
actions as specified in the nursing facility enforcement provisions
of section 1919 of title XIX, 42 USC 1396r.
(2) In addition to the appropriations in part 1, the
department is authorized to receive and spend penalty money
received as the result of noncompliance with medical services
certification regulations. Penalty money, characterized as private
funds, received by the department shall increase authorizations and
allotments in the long-term care accounts.
(3) The department is authorized to provide civil monetary
penalty funds to the disability network/Michigan to be distributed
to the 15 centers for independent living for the purpose of
assisting individuals with disabilities who reside in nursing homes
to return to their own homes.
(4) The department is authorized to use civil monetary penalty
funds to conduct a survey evaluating consumer satisfaction and the
quality of care at nursing homes. Factors can include, but are not
limited to, the level of satisfaction of nursing home residents,
their families, and employees. The department may use an
independent contractor to conduct the survey.
(5) Any unexpended penalty money, at the end of the year,
shall carry forward to the following year.
Sec. 1684. The department shall submit a report by September
30 of the current fiscal year to the house and senate
appropriations subcommittees on community health, the house and
senate fiscal agencies, and the state budget director that will
identify by waiver agent, Medicaid home- and community-based
services waiver costs by administration, case management, and
direct services.
Sec. 1685. All nursing home rates, class I and class III,
shall have their respective fiscal year rate set 30 days prior to
the beginning of their rate year. Rates may take into account the
most recent cost report prepared and certified by the preparer,
provider corporate owner or representative as being true and
accurate, and filed timely, within 5 months of the fiscal year end
in accordance with Medicaid policy. If the audited version of the
last report is available, it shall be used. Any rate factors based
on the filed cost report may be retroactively adjusted upon
completion of the audit of that cost report.
Sec. 1689. (1) Priority in enrolling additional individuals in
the Medicaid home- and community-based services waiver program
shall be given to those who are currently residing in nursing homes
or who are eligible to be admitted to a nursing home if they are
not provided home- and community-based services. The department
shall use screening and assessment procedures to assure that no
additional Medicaid eligible individuals are admitted to nursing
homes who would be more appropriately served by the Medicaid home-
and community-based services waiver program. It is the intent of
the legislature that when an individual is transferred from a
nursing home to the home- and community-based services waiver
program, the funding to cover that individual's home- and
community-based services waiver program costs shall be transferred
from the long-term care services line item to the Medicaid home-
and community-based services waiver line item. 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.
(2) Within 60 days of the end of each fiscal year, the
department shall provide a report to the senate and house
appropriations subcommittees on community health and the senate and
house fiscal agencies that details existing and future allocations
for the home- and community-based services waiver program by
regions as well as the associated expenditures. The report shall
include information regarding the net cost savings from moving
individuals from a nursing home to the home- and community-based
services waiver program, the number of individuals transitioned
from nursing homes to the home- and community-based services waiver
program, the number of individuals on waiting lists by region for
the program, and the amount of funds transferred during the fiscal
year. The report shall also include the number of Medicaid
individuals served and the number of days of care for the home- and
community-based services waiver program and in nursing homes.
(3) The department shall develop a system to collect and
analyze information regarding individuals on the home- and
community-based services waiver program waiting list to identify
the community supports they receive, including, but not limited to,
adult home help, food assistance, and housing assistance services
and to determine the extent to which these community supports help
individuals remain in their home and avoid entry into a nursing
home. The department shall provide a progress report on
implementation to the senate and house appropriations subcommittees
on community health and the senate and house fiscal agencies by
June 1 of the current fiscal year.
(4) The department shall maintain any policies, guidelines,
procedures, standards, and regulations in order to limit the self-
determination option with respect to the home- and community-based
services waiver program to those services furnished by approved
home-based service providers meeting provider qualifications
established in the waiver and approved by the centers for Medicare
and Medicaid services.
Sec. 1692. (1) The department is authorized to pursue
reimbursement for eligible services provided in Michigan schools
from the federal Medicaid program. The department and the state
budget director are authorized to negotiate and enter into
agreements, together with the department of education, with local
and intermediate school districts regarding the sharing of federal
Medicaid services funds received for these services. The department
is authorized to receive and disburse funds to participating school
districts pursuant to such agreements and state and federal law.
(2) From the funds appropriated in part 1 for medical services
school-based services payments, the department is authorized to do
all of the following:
(a) Finance activities within the medical services
administration related to this project.
(b) Reimburse participating school districts pursuant to the
fund-sharing ratios negotiated in the state-local agreements
authorized in subsection (1).
(c) Offset general fund costs associated with the medical
services program.
Sec. 1693. The special Medicaid reimbursement appropriation in
part 1 may be increased if the department submits a medical
services state plan amendment pertaining to this line item at a
level higher than the appropriation. The department is authorized
to appropriately adjust financing sources in accordance with the
increased appropriation.
Sec. 1694. The department shall distribute $1,122,300.00 to an
academic health care system that includes a children's hospital
that has a high indigent care volume.
Sec. 1699. (1) The department may make separate payments in
the amount of $45,000,000.00 directly to qualifying hospitals
serving a disproportionate share of indigent patients and to
hospitals providing GME training programs. If direct payment for
GME and DSH is made to qualifying hospitals for services to
Medicaid clients, hospitals shall not include GME costs or DSH
payments in their contracts with HMOs.
(2) The department shall allocate $45,000,000.00 in DSH
funding using the distribution methodology used in fiscal year
2003-2004.
(3) By September 30 of the current fiscal year, the department
shall report to the senate and house appropriations subcommittees
on community health and the senate and house fiscal agencies on the
new distribution of funding to each eligible hospital from the GME
and DSH pools.
(4) The department shall form a workgroup on DSH funding
consisting of representatives from hospitals and hospital systems
receiving DSH funding and the Michigan health and hospital
association. The workgroup shall work to derive a new DSH formula
or formulas designed to provide equitable payments to qualifying
hospitals. The department shall report to the senate and house
appropriations subcommittees on community health and the senate and
house fiscal agencies on the results of the workgroup's efforts by
March 1 of the current fiscal year.
Sec. 1712. (1) Subject to the availability of funds, the
department shall implement a rural health initiative. Available
funds shall first be allocated as an outpatient adjustor payment to
be paid directly to hospitals in rural counties in proportion to
each hospital's Medicaid and indigent patient population.
Additional funds, if available, shall be allocated for
defibrillator grants, emergency medical technician training and
support, or other similar programs.
(2) Except as otherwise specified in this section, "rural"
means a county, city, village, or township with a population of not
more than 30,000, including those entities if located within a
metropolitan statistical area.
Sec. 1718. The department shall provide each Medicaid adult
home help beneficiary or applicant with the right to a fair hearing
when the department or its agent reduces, suspends, terminates, or
denies adult home help services. If the department takes action to
reduce, suspend, terminate, or deny adult home help services, it
shall provide the beneficiary or applicant with a written notice
that states what action the department proposes to take, the
reasons for the intended action, the specific regulations that
support the action, and an explanation of the beneficiary's or
applicant's right to an evidentiary hearing and the circumstances
under which those services will be continued if a hearing is
requested.
Sec. 1724. The department shall allow licensed pharmacies to
purchase injectable drugs for the treatment of respiratory
syncytial virus for shipment to physicians' offices to be
administered to specific patients. If the affected patients are
Medicaid eligible, the department shall reimburse pharmacies for
the dispensing of the injectable drugs and reimburse physicians for
the administration of the injectable drugs.
Sec. 1740. From the funds appropriated in part 1 for health
plan services, the department shall assure that all GME funds
continue to be promptly distributed to qualifying hospitals using
the methodology developed in consultation with the graduate medical
education advisory group during fiscal year 2006-2007.
Sec. 1741. The department shall continue to provide nursing
homes the opportunity to receive interim payments upon their
request. The department may disapprove requests or discontinue
interim payments that result in financial risk to this state. The
department shall make reasonable efforts to ensure that the interim
payments are as similar in amount to expected cost-settled
payments.
Sec. 1756. The department shall develop a plan to expand and
improve the beneficiary monitoring program. The department shall
submit this plan to the house and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget director by April 1 of the current
fiscal year.
Sec. 1757. The department shall direct the department of human
services to obtain proof from all Medicaid recipients that they are
legal United States citizens or otherwise legally residing in this
country and that they are residents of this state before approving
Medicaid eligibility.
Sec. 1764. The department shall annually certify rates paid to
Medicaid health plans as being actuarially sound in accordance with
federal requirements and shall provide a copy of the rate
certification and approval immediately to the house and senate
appropriations subcommittees on community health and the house and
senate fiscal agencies.
Sec. 1770. In conjunction with the consultation requirements
of the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, and
except as otherwise provided in this section, the department shall
attempt to make the effective date for a proposed Medicaid policy
bulletin or adjustment to the Medicaid provider manual on October
1, January 1, April 1, or July 1 after the end of the consultation
period. The department may provide an effective date for a proposed
Medicaid policy bulletin or adjustment to the Medicaid provider
manual other than provided for in this section if necessary to be
in compliance with federal or state law, regulations, or rules or
with an executive order of the governor.
Sec. 1775. If the state's application for a waiver to
implement managed care for dual Medicare/Medicaid eligible is
approved by the federal government, by April 1, 2012 the department
shall provide a report to the senate and house appropriations
subcommittees on community health and the senate and house fiscal
agencies. This report shall include information on the amount of
Medicare funding that would be provided to the state, the number of
individuals who would be enrolled in the program, which health
plans would be among those providing the services, and the
estimated savings from the new program.
Sec. 1777. From the funds appropriated in part 1 for long-term
care services, the department shall permit, in accordance with
applicable federal and state law, nursing homes to use dining
assistants to feed eligible residents if legislation to permit the
use of dining assistants is enacted into law. The department shall
not be responsible for costs associated with training dining
assistants.
Sec. 1787. The department shall require the managed care
enrollment broker to maintain telephone numbers of Medicaid
beneficiaries and provide each Medicaid health plan with the
telephone number of that health plan's enrollees on a monthly
basis.
Sec. 1793. The department shall consider the development of a
pilot project that focuses on the prevention of preventable
hospitalizations from nursing homes.
Sec. 1804. The department, in cooperation with the department
of human services, shall work with the federal public assistance
reporting information system to identify Medicaid recipients who
are veterans and who may be eligible for federal veterans health
care benefits or other benefits.
Sec. 1815. From the funds appropriated in part 1 for health
plan services, the department shall not implement a capitation
withhold as part of the overall capitation rate schedule that
exceeds the 0.19% withhold administered during fiscal year 2008-
2009.
Sec. 1820. (1) In order to avoid duplication of efforts, the
department shall utilize applicable national accreditation review
criteria to determine compliance with corresponding state
requirements for Medicaid health plans that have been reviewed and
accredited by a national accrediting entity for health care
services.
(2) Upon submission by Medicaid health plans of a listing of
program requirements that are part of the state program review
criteria but are not reviewed by an applicable national
accreditating entity, the department shall review the listing and
provide a recommendation to the house and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget office as to whether or not state
program review should continue. The Medicaid health plans may
request the department to convene a workgroup to fulfill this
section.
(3) The department shall continue to comply with state and
federal law and shall not initiate an action that negatively
impacts beneficiary safety.
(4) As used in this section, "national accrediting entity"
means the national committee for quality assurance, the utilization
review accreditation committee, or other appropriate entity, as
approved by the department.
(5) By July 1 of the current fiscal year, the department shall
provide a progress report to the house and senate appropriations
subcommittees on community health, the house and senate fiscal
agencies, and the state budget office on implementation of this
section.
Sec. 1822. The department, the department's contracted
Medicaid pharmacy benefit manager, and all Medicaid health plans
shall implement coverage for a mental health prescription drug
within 30 days of that drug's approval by the department's pharmacy
and therapeutics committee.
Sec. 1832. (1) The department shall continue efforts to
standardize billing formats, referral forms, electronic
credentialing, primary source verification, electronic billing and
attachments, claims status, eligibility verification, and reporting
of accepted and rejected encounter records received in the
department data warehouse.
(2) The department shall convene a workgroup on making e-
billing mandatory for the Medicaid program. The workgroup shall
include representatives from medical provider organizations,
Medicaid HMOs, and the department. The department shall report to
the legislature on the findings of the workgroup by April 1 of the
current fiscal year.
(3) The department shall provide a report by April 1 of the
current fiscal year to the senate and house appropriations
subcommittees on community health and the senate and house fiscal
agencies detailing the percentage of claims for Medicaid
reimbursement provided to the department that were initially
rejected in the first quarter of fiscal year 2011-2012.
Sec. 1835. The department shall develop and implement
processes to report rejected and accepted encounters to Medicaid
health plans. The department shall further enhance encounter data
reporting processes and program rules that make each health plan's
encounter data as complete as possible, provide a fair measure of
acuity for each health plan's enrolled population for risk
adjustment purposes, and minimize health plan administrative
expenses.
Sec. 1836. In addition to the guidelines established in
Medical Services Administration Bulletin MSA 09-28, medically
necessary optical devices and other treatment services for adult
Medicaid patients shall be covered when conventional treatments do
not provide functional vision correction. Such ocular conditions
include, but are not limited to, congenital or acquired ocular
disease or eye trauma.
Sec. 1837. The department shall explore utilization of
telemedicine and telepsychiatry as strategies to increase access to
services for Medicaid recipients in medically underserved areas.
Sec. 1842. (1) Subject to the availability of funds, the
department shall adjust the hospital outpatient Medicaid
reimbursement rate for qualifying hospitals as provided in this
section. The Medicaid reimbursement rate for qualifying hospitals
shall be adjusted to provide each qualifying hospital with its
actual cost of delivering outpatient services to Medicaid
recipients.
(2) As used in this section, "qualifying hospital" means a
hospital that has not more than 50 staffed beds and is either
located outside a metropolitan statistical area or in a
metropolitan statistical area but within a city, village, or
township with a population of not more than 12,000 according to the
official 2000 federal decennial census and within a county with a
population of not more than 165,000 according to the official 2000
federal decennial census.
Sec. 1846. (1) The department shall establish a workgroup on
graduate medical education funding. The workgroup shall include
representatives of teaching hospitals, the Michigan health and
hospital association, and other interested parties.
(2) The workgroup shall do all of the following:
(a) Identify physician specialties where there is a current or
potential shortage of practitioners and identify the geographic
areas of this state where those shortages exist or potentially
could develop.
(b) Research efforts by other states to address practitioner
shortages by adjusting their graduate medical education payments.
(c) Recommend potential policy changes to the graduate medical
education program to help reduce practitioner shortages.
(3) The department shall report the results of the workgroup's
efforts to the senate and house appropriations subcommittees on
community health, the senate and house fiscal agencies, and the
state budget director by April 1 of the current fiscal year.
(4) It is the intent of the legislature that the report
required under subsection (3) be used as a possible basis for the
establishment of new graduate medical education funding formulas in
fiscal year 2012-2013.
Sec. 1847. The department shall meet with the Michigan
association of ambulance services to discuss the possible structure
of an ambulance quality assurance assessment program.
Sec. 1849. (1) The department shall use at least 50% of the
funds allocated for voluntary in-home visiting services for
evidence-based models or models that conform to a promising
approach that are in the process of being evaluated through a
process that meets the requirements described in subsection (2)
with the goal of being evidence-based by January 1, 2013.
(2) As used in this section:
(a) "Evidence-based" means a model or practice that meets all
of the following requirements:
(i) The model or practice is governed by a program manual or
protocol that specifies the purpose, rigorous evaluation
requirements, and duration and frequency of service that
constitutes the model.
(ii) Scientific research using methods that meet scientific
standards, evaluated using either randomized controlled research
designs, or quasi-experimental research designs with equivalent
comparison groups. The effects of such programs must have been
demonstrated with 2 or more separate client samples that the
program improves client outcomes central to the purpose of the
program; and the model or practice monitors program implementation
for fidelity to the specified model.
(b) "In-home visiting services" means a service delivery
strategy that is carried out in the homes of families or children
from conception to school age that provides culturally sensitive
face-to-face visits by nurses, or other professional or
paraprofessionals trained to promote positive parenting practices,
enhance the socio-emotional and cognitive development of children,
improve health of the family, and empower the family to be self-
sufficient.
(3) By February 1 of the current fiscal year, the department
shall submit to the house and senate appropriations subcommittees
on community health an annual report on evidence-based voluntary
in-home visiting services, including a full accounting of
administrative expenditures from the prior fiscal year, and a
summary detailing the demographic characteristics of Medicaid
families served.
(4) No later than September 30, 2011, the department shall
submit a report to the senate and house appropriations
subcommittees on community health on its plan to establish an
integrated benefit for Medicaid evidence-based home visitation
services to be provided by Medicaid health plans for eligible
beneficiaries. The report shall include information on the
potential methods used to assure continuity of care and continuity
of ongoing relationships with providers and their potential
effectiveness. It is the intent of the legislature that the
integrated benefit must be provided by evidence-based service
delivery models or practices in a manner that achieves fidelity to
the evidence-based model.
Sec. 1850. The department may allow Medicaid health plans to
assist with the redetermination process through outreach activities
to ensure continuation of Medicaid eligibility and enrollment in
managed care. This may include mailings, telephone contact, or
face-to-face contact with beneficiaries enrolled in the individual
Medicaid health plan. Health plans may offer assistance in
completing paperwork for beneficiaries enrolled in their plan.
Sec. 1853. The department shall form a workgroup composed of
representatives from the Medicaid HMOs and the Michigan association
of health plans to develop revisions to the process of
automatically assigning new Medicaid recipients to HMOs if they do
not choose an HMO upon enrollment. The department shall report on
the results of the workgroup's findings to the senate and house
appropriations subcommittees on community health and the senate and
house fiscal agencies by March 1 of the current fiscal year.
Sec. 1854. The department may work with a provider of kidney
dialysis services and renal care as authorized under section 2703
of the patient protection and affordable care act, Public Law 111-
148, to develop a chronic condition health home program for
Medicaid enrollees identified with chronic kidney disease and who
are beginning dialysis. If initiated, the department shall develop
metrics that evaluate program effectiveness and submit a report to
the senate and house appropriations subcommittees on community
health. Metrics shall include cost savings and clinical outcomes.
Sec. 1855. The department may consider the feasibility of a
revenue-neutral, financially risk-averse Medicaid patient
optimization solution for the support of emergency department
redirection for non-emergent patients.
Sec. 1857. It is the intent of the legislature that the
department not reduce Medicaid reimbursement for wheelchairs.
ONE-TIME BASIS ONLY
Sec. 1901. For the state fiscal year ending September 30,
2012, there is appropriated from general fund/general purpose
revenue, on a 1-time basis only, $22,100,000.00 and federal revenue
for the following purposes:
Mental health services for special populations......... $ 3,000,000
Healthy Michigan fund programs......................... 3,000,000
Primary care services – island health clinics.......... 300,000
Hospital services and therapy – graduate medical
education........................................... 17,129,400
Hospital services and therapy – rural and sole
community hospitals................................. 29,533,400
GROSS APPROPRIATION..................................... $ 52,962,800
Appropriated from:
Federal revenues:
Federal revenues....................................... 30,862,800
State general fund/general purpose..................... $ 22,100,000
Sec. 1902. From the funds appropriated in section 1901 for
healthy Michigan fund programs, $900,000.00 shall be allocated for
cancer prevention and control.
Sec. 1903. (1) From the funds appropriated in section 1901 for
hospital services and therapy – rural and sole community hospitals,
$10,000,000.00 general fund/general purpose revenue and any
associated federal match shall be awarded to hospitals that meet
criteria established by the department for services to low-income
rural residents.
(2) No hospital or hospital system shall receive more than
5.0% of the total funding referenced in subsection (1).
(3) The department shall report to the senate and house
appropriations subcommittees on community health and the senate and
house fiscal agencies on the distribution of funds referenced in
subsection (1) by April 1 of the current fiscal year.
PART 2A
PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS
FOR FISCAL YEAR 2012-2013
GENERAL SECTIONS
Sec. 2001. It is the intent of the legislature to provide
appropriations for the fiscal year ending on September 30, 2013 for
the line items listed in part 1. The fiscal year 2012-2013
appropriations are anticipated to be the same as those for fiscal
year 2011-2012, except that the line items will be adjusted for
changes in caseload and related costs, federal fund match rates,
economic factors, and available revenue. These adjustments will be
determined after the January 2012 consensus revenue estimating
conference.
ARTICLE V
DEPARTMENT OF CORRECTIONS
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2011-2012
Sec. 101. Subject to the conditions set forth in this article,
the amounts listed in this part are appropriated for the department
of corrections for the fiscal year ending September 30, 2012, from
the funds indicated in this part. The following is a summary of the
appropriations in this part:
DEPARTMENT OF CORRECTIONS
APPROPRIATION SUMMARY
Average population............................. 45,917
Full-time equated unclassified positions......... 16.0
Full-time equated classified positions....... 15,552.8
GROSS APPROPRIATION.................................... $ 1,936,573,800
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 943,800
ADJUSTED GROSS APPROPRIATION........................... $ 1,935,630,000
Federal revenues:
Total federal revenues................................. 7,995,100
Special revenue funds:
Total local revenues................................... 447,300
Total private revenues................................. 0
Total other state restricted revenues.................. 52,351,400
State general fund/general purpose..................... $ 1,874,836,200
Sec. 102. EXECUTIVE
Full-time equated unclassified positions......... 16.0
Full-time equated classified positions........... 46.0
Unclassified positions--16.0 FTE positions............. $ 1,192,600
Executive direction--46.0 FTE positions................ 5,411,100
Neal, et al. settlement agreement...................... 15,000,000
GROSS APPROPRIATION.................................... $ 21,603,700
Appropriated from:
State general fund/general purpose..................... $ 21,603,700
Sec. 103. PLANNING AND COMMUNITY SUPPORT
Full-time equated classified positions........... 12.0
MPRI residential stability............................. $ 7,251,300
MPRI employment readiness.............................. 7,265,100
MPRI social support.................................... 4,861,000
MPRI health and behavioral health...................... 3,357,700
MPRI operations support................................ 3,848,400
MPRI reintegration, training, and employment........... 600,000
MPRI other projects.................................... 26,726,200
MPRI federal grants.................................... 1,035,000
Substance abuse testing and treatment services--12.0
FTE positions........................................ 24,070,900
Residential services................................... 18,075,500
Community corrections comprehensive plans and services. 13,958,000
Regional jail program.................................. 100
Felony drunk driver jail reduction and community
treatment program.................................... 1,440,100
County jail reimbursement program...................... 17,072,100
GROSS APPROPRIATION.................................... $ 129,561,400
Appropriated from:
Federal revenues:
DOJ, office of justice programs, RSAT.................. 143,900
DOJ, prisoner reintegration............................ 1,035,000
Special revenue funds:
Jail reimbursement program fund........................ 5,900,000
State general fund/general purpose..................... $ 122,482,500
Sec. 104. OPERATIONS SUPPORT ADMINISTRATION
Full-time equated classified positions.......... 152.9
Operations support administration--45.0 FTE positions.. $ 4,110,700
New custody staff training............................. 4,094,100
Compensatory buyout and union leave bank............... 100
Worker's compensation.................................. 16,278,900
Bureau of fiscal management--90.9 FTE positions........ 8,448,300
Office of legal services--6.0 FTE positions............ 2,345,100
Internal affairs--11.0 FTE positions................... 1,219,300
Rent................................................... 2,095,200
Equipment and special maintenance...................... 2,425,500
Administrative hearings officers....................... 2,682,900
Judicial data warehouse user fees...................... 50,000
Interdepartmental grant to judiciary................... 1,000,000
Interdepartmental grant to corrections ombudsman....... 250,000
Sheriffs' coordinating and training office............. 500,000
Prosecutorial and detainer expenses.................... 4,051,000
GROSS APPROPRIATION.................................... $ 49,551,100
Appropriated from:
Interdepartmental grant revenues:
IDG-MDSP, Michigan justice training fund............... 313,200
Special revenue funds:
Local corrections officer training fund................ 500,000
Correctional industries revolving fund................. 534,600
State general fund/general purpose..................... $ 48,203,300
Sec. 105. FIELD OPERATIONS ADMINISTRATION
Full-time equated classified positions........ 2,161.9
Field operations--2,007.9 FTE positions................ $ 184,553,200
Parole board operations--45.0 FTE positions............ 4,517,400
Parole/probation services.............................. 2,243,500
Community re-entry centers--48.0 FTE positions......... 14,269,300
Electronic monitoring center--61.0 FTE positions....... 16,570,200
GROSS APPROPRIATION.................................... $ 222,153,600
Appropriated from:
Special revenue funds:
Local - community tether program reimbursement......... 447,300
Re-entry center offender reimbursements................ 141,600
Parole and probation oversight fees.................... 6,300,000
Parole and probation oversight fees set-aside.......... 2,649,500
Tether program participant contributions............... 2,033,800
State general fund/general purpose..................... $ 210,581,400
Sec. 106. CORRECTIONAL FACILITIES-ADMINISTRATION
Average population.............................. 1,750
Full-time equated classified positions........ 1,249.1
Correctional facilities administration--29.0 FTE
positions............................................ $ 8,186,400
Prison food service--394.0 FTE positions............... 56,718,200
Transportation--211.6 FTE positions.................... 19,043,600
Central records--53.5 FTE positions.................... 3,906,100
Inmate legal services.................................. 715,900
Loans to parolees...................................... 179,400
Housing inmates in federal institutions................ 793,900
Prison store operations--75.0 FTE positions............ 1,467,100
Prison industries operations--189.0 FTE positions...... 21,325,400
Federal school lunch program........................... 712,800
Leased beds and alternatives to leased beds............ 10,000,100
Public works programs.................................. 10,000,000
Cost-effective housing initiative...................... 47,906,300
Average population.............................. 1,750
Inmate housing fund.................................... (79,232,700)
Education program--252.0 FTE positions................. 31,279,600
GROSS APPROPRIATION.................................... $ 133,002,100
Appropriated from:
Interdepartmental grant revenues:
IDG-MDCH, forensic center food service................. 630,600
Federal revenues:
DAG-FNS, national school lunch......................... 712,800
DED-OESE, title 1...................................... 533,500
DED-OVAE, adult education.............................. 911,200
DED-OSERS.............................................. 110,200
DED, vocational education equipment.................... 283,100
DED, youthful offender/Specter grant................... 1,318,400
DOJ-BOP, federal prisoner reimbursement................ 211,100
DOJ-OJP, serious and violent offender reintegration
initiative........................................... 10,400
DOJ, prison rape elimination act grant................. 1,037,900
SSA-SSI, incentive payment............................. 144,300
Special revenue funds:
Correctional industries revolving fund................. 21,325,400
Public works user fees................................. 10,000,000
Resident stores........................................ 1,467,100
State general fund/general purpose..................... $ 94,306,100
Sec. 107. HEALTH CARE
Full-time equated classified positions........ 1,690.0
Health care administration--14.0 FTE positions......... $ 3,236,200
Prisoner health care services.......................... 93,095,500
Vaccination program.................................... 691,200
Interdepartmental grant to human services, eligibility
specialists.......................................... 100,000
Mental health services and support--546.0 FTE
positions............................................ 55,069,200
Northern region clinical complexes--366.6 FTE
positions............................................ 43,198,100
Southern region clinical complexes--763.4 FTE
positions............................................ 116,384,000
GROSS APPROPRIATION.................................... $ 311,774,200
Appropriated from:
Special revenue funds:
Prisoner health care copayments........................ 354,900
State general fund/general purpose..................... $ 311,419,300
Sec. 108. NORTHERN REGION CORRECTIONAL FACILITIES
Average population............................. 18,983
Full-time equated classified positions........ 4,282.9
Alger maximum correctional facility - Munising--265.0
FTE positions........................................ $ 27,249,700
Average population................................ 889
Baraga maximum correctional facility - Baraga--325.1
FTE positions........................................ 31,829,200
Average population................................ 884
Earnest C. Brooks correctional facility - Muskegon--
447.0 FTE positions.................................. 45,545,500
Average population.............................. 2,440
Chippewa correctional facility - Kincheloe--467.4 FTE
positions............................................ 47,846,400
Average population.............................. 2,282
Kinross correctional facility - Kincheloe--339.0 FTE
positions............................................ 35,237,600
Average population.............................. 1,799
Marquette branch prison - Marquette--339.6 FTE
positions............................................ 37,544,000
Average population.............................. 1,201
Newberry correctional facility - Newberry--263.9 FTE
positions............................................ 26,091,500
Average population................................ 978
Oaks correctional facility - Eastlake--306.0 FTE
positions............................................ 34,317,200
Average population.............................. 1,156
Ojibway correctional facility - Marenisco--205.9 FTE
positions............................................ 19,053,300
Average population.............................. 1,090
Central Michigan correctional facility - St. Louis--
416.9 FTE positions.................................. 40,278,900
Average population.............................. 2,400
Pugsley correctional facility - Kingsley--216.0 FTE
positions............................................ 20,464,400
Average population.............................. 1,158
Saginaw correctional facility - Freeland--312.8 FTE
positions............................................ 31,952,400
Average population.............................. 1,480
St. Louis correctional facility - St. Louis--320.3 FTE
positions............................................ 32,541,300
Average population.............................. 1,226
Northern region administration and support--58.0 FTE
positions............................................ 4,304,300
GROSS APPROPRIATION.................................... $ 434,255,700
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 434,255,700
Sec. 109. SOUTHERN REGION CORRECTIONAL FACILITIES
Average population............................. 25,184
Full-time equated classified positions........ 5,958.0
Bellamy Creek correctional facility - Ionia--394.4 FTE
positions............................................ $ 39,857,300
Average population.............................. 1,850
Carson City correctional facility - Carson City--455.1
FTE positions........................................ 47,496,100
Average population.............................. 2,440
Cooper street correctional facility - Jackson--260.9
FTE positions........................................ 28,092,100
Average population.............................. 1,799
G. Robert Cotton correctional facility - Jackson--
402.5 FTE positions.................................. 39,548,100
Average population.............................. 1,841
Charles E. Egeler correctional facility - Jackson--
355.3 FTE positions.................................. 39,929,200
Average population.............................. 1,376
Richard A. Handlon correctional facility - Ionia--
233.4 FTE positions.................................. 24,033,900
Average population.............................. 1,373
Gus Harrison correctional facility - Adrian--444.7 FTE
positions............................................ 45,738,200
Average population.............................. 2,342
Huron Valley correctional complex - Ypsilanti--559.7
FTE positions........................................ 58,478,700
Average population.............................. 1,872
Ionia maximum correctional facility - Ionia--304.7 FTE
positions............................................ 30,890,400
Average population................................ 654
Lakeland correctional facility - Coldwater--262.8 FTE
positions............................................ 24,877,200
Average population.............................. 1,336
Macomb correctional facility - New Haven--304.3 FTE
positions............................................ 30,406,800
Average population.............................. 1,228
Maxey/Woodland Center correctional facility - Whitmore
Lake--272.2 FTE positions............................ 26,084,800
Average population................................ 328
Michigan reformatory - Ionia--320.1 FTE positions...... 34,309,700
Average population.............................. 1,338
Mound correctional facility - Detroit--283.4 FTE
positions............................................ 26,010,600
Average population.............................. 1,062
Parnall correctional facility - Jackson--266.2 FTE
positions............................................ 27,548,800
Average population.............................. 1,678
Ryan correctional facility - Detroit--281.8 FTE
positions............................................ 29,198,600
Average population.............................. 1,048
Thumb correctional facility - Lapeer--292.5 FTE
positions............................................ 30,251,400
Average population.............................. 1,219
Special alternative incarceration program (Camp
Cassidy Lake)--120.0 FTE positions................... 10,149,700
Average population................................ 400
Southern region administration and support--144.0 FTE
positions............................................ 19,946,000
GROSS APPROPRIATION.................................... $ 612,847,600
Appropriated from:
Federal revenues:
DOJ, state criminal alien assistance program........... 1,543,300
Special revenue funds:
Public works user fees................................. 358,700
State general fund/general purpose..................... $ 610,945,600
Sec. 110. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 21,824,400
GROSS APPROPRIATION.................................... $ 21,824,400
Appropriated from:
Special revenue funds:
Correctional industries revolving fund................. 159,600
Parole and probation oversight fees set-aside.......... 626,200
State general fund/general purpose..................... $ 21,038,600
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2011-2012
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 2011-2012 is $1,927,187,600.00 and
state spending from state resources to be paid to local units of
government for fiscal year 2011-2012 is $89,893,500.00. The
itemized statement below identifies appropriations from which
spending to local units of government will occur:
DEPARTMENT OF CORRECTIONS
Field operations - assumption of county probation
staff................................................... $ 53,642,400
Public service work projects........................... 707,800
Community corrections comprehensive plans and services. 13,958,000
Community corrections residential services............. 18,075,500
Community corrections public education and training.... 50,000
Felony drunk driver jail reduction and community
treatment program....................................... 1,440,100
Community re-entry centers............................. 2,019,600
Regional jail program.................................. 100
TOTAL.................................................. $ 89,893,500
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) "Administrative segregation" means confinement for
maintenance of order or discipline to a cell or room apart from
accommodations provided for inmates who are participating in
programs of the facility.
(b) "Cost per prisoner" means the sum total of the funds
appropriated under part 1 for the following, divided by the
projected prisoner population in fiscal year 2010-2011:
(i) Northern and southern region correctional facilities.
(ii) Northern and southern region administration and support.
(iii) Northern and southern region clinical complexes.
(iv) Prisoner health care services.
(v) Health care administration.
(vi) Vaccination program.
(vii) Prison food service and federal school lunch program.
(viii) Transportation.
(ix) Inmate legal services.
(x) Correctional facilities administration.
(xi) Central records.
(xii) DOJ psychiatric plan.
(xiii) Worker's compensation.
(xiv) New custody staff training.
(xv) Prison store operations.
(xvi) Education services and federal education grants.
(xvii) Education program.
(c) "DAG" means the United States department of agriculture.
(d) "DAG-FNS" means the DAG food and nutrition service.
(e) "DED" means the United States department of education.
(f) "DED-OESE" means the DED office of elementary and
secondary education.
(g) "DED-OSERS" means the DED office of special education and
rehabilitative services.
(h) "DED-OVAE" means the DED office of vocational and adult
education.
(i) "Department" or "MDOC" means the Michigan department of
corrections.
(j) "DOJ" means the United States department of justice.
(k) "DOJ-BOP" means the DOJ bureau of prisons.
(l) "DOJ-OJP" means the DOJ office of justice programs.
(m) "Evidence-based practices" or "EBP" means a decision-
making process that integrates the best available research,
clinician expertise, and client characteristics.
(n) "FTE" means full-time equated.
(o) "GED" means general educational development certificate.
(p) "Goal" means the intended or projected result of a
comprehensive corrections plan or community corrections program to
reduce repeat offending, criminogenic and high-risk behaviors,
prison commitment rates, to reduce the length of stay in a jail, or
to improve the utilization of a jail.
(q) "GPS" means global positioning system.
(r) "HIV" means human immunodeficiency virus.
(s) "IDG" means interdepartmental grant.
(t) "IDT" means intradepartmental transfer.
(u) "Jail" means a facility operated by a local unit of
government for the physical detention and correction of persons
charged with or convicted of criminal offenses.
(v) "MDCH" means the Michigan department of community health.
(w) "Medicaid benefit" means a benefit paid or payable under a
program for medical assistance under the social welfare act, 1939
PA 280, MCL 400.1 to 400.119b.
(x) "MDSP" means the Michigan department of state police.
(y) "MPRI" means the Michigan prisoner reentry initiative.
(z) "Objective risk and needs assessment" means an evaluation
of an offender's criminal history; the offender's noncriminal
history; and any other factors relevant to the risk the offender
would present to the public safety, including, but not limited to,
having demonstrated a pattern of violent behavior, and a criminal
record that indicates a pattern of violent offenses.
(aa) "Offender eligibility criteria" means particular criminal
violations, state felony sentencing guidelines descriptors, and
offender characteristics developed by advisory boards and approved
by local units of government that identify the offenders suitable
for community corrections programs funded through the office of
community corrections.
(bb) "Offender success" means that an offender has done all of
the following:
(i) Regularly reported to his or her assigned field agent.
(ii) Is participating in or has successfully completed all
required substance abuse, mental health, sex offender, or other
treatment as approved by the field agent.
(iii) Not sent or returned to prison for the conviction of a new
crime or the revocation of probation or parole.
(iv) Not been sentenced to a jail term for a new criminal
offense.
(v) Obtained employment, has enrolled or participated in a
program of education or job training, or has investigated all bona
fide employment opportunities.
(vi) Obtained housing.
(cc) "Offender target population" means felons or
misdemeanants who would likely be sentenced to imprisonment in a
state correctional facility or jail, who would not likely increase
the risk to the public safety based on an objective risk and needs
assessment that indicates that the offender can be safely treated
and supervised in the community.
(dd) "Offender who would likely be sentenced to imprisonment"
means either of the following:
(i) A felon or misdemeanant who receives a sentencing
disposition that appears to be in place of incarceration in a state
correctional facility or jail, according to historical local
sentencing patterns.
(ii) A currently incarcerated felon or misdemeanant who is
granted early release from incarceration to a community corrections
program or who is granted early release from incarceration as a
result of a community corrections program.
(ee) "Programmatic success" means that the department program
or initiative has ensured that the offender has accomplished all of
the following:
(i) Obtained employment, has enrolled or participated in a
program of education or job training, or has investigated all bona
fide employment opportunities.
(ii) Obtained housing.
(iii) Obtained a state identification card.
(ff) "Recidivism" means any of the following:
(i) The arrest and conviction of a supervised individual for a
new offense while under community supervision.
(ii) The adjudication of a supervised individual for a
violation of the conditions of supervision while under community
supervision.
(iii) A sanction resulting from a violation of terms of
supervision that results in a return to prison without being
adjudicated.
(gg) "RSAT" means residential substance abuse treatment.
(hh) "Serious emotional disturbance" means that term as
defined in section 100d(2) of the mental health code, 1974 PA 328,
MCL 330.1100d.
(ii) "Serious mental illness" means that term as defined in
section 100d(3) of the mental health code, 1974 PA 328, MCL
330.1100d.
(jj) "SSA" means the United States social security
administration.
(kk) "SSA-SSI" means SSA supplemental security income.
Sec. 204. The civil service commission shall bill departments
and agencies at the end of the first fiscal quarter for the charges
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. 204a. (1) The department shall collaborate with the civil
service commission and the department of civil service to review
the compensation rates for health care professionals who provide
direct health care services to prisoners within the corrections
system, including, but not limited to, doctors, all nursing
professionals, pharmacists, pharmacy technicians, and
psychologists. The review shall include health care professionals
employed by the state as well as those employed through state
contractors. These rates shall be compared to available data on
compensation rates for comparable medical professionals in the
private sectors who provide services to the general public to
estimate any disparity in compensation.
(2) Following the review, the department shall make
recommendations on changes needed to the state compensation plan
for health care professional positions and to department contracts
with health care providers so that compensation levels are
sufficient to ensure that needed health care professional positions
with vacancies are filled, that the department experiences adequate
retention levels for these positions, and that necessary health
care services are delivered in a timely manner to the prisoner
population. A report outlining these recommendations shall be
submitted to the senate and house appropriations subcommittees on
corrections, the senate and house fiscal agencies, and the state
budget office by May 1, 2011.
Sec. 206. The department shall not take disciplinary action
against an employee for communicating with a member of the
legislature or his or her staff.
Sec. 207. State employees shall be given the opportunity to
bid on contracts that privatize services that are or were provided
by state employees. If the contract is awarded to any state
employee, he or she ceases being an employee of the state.
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 an Internet or Intranet
site.
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 of comparable quality American goods or
services, or both, are available. Preference shall be given to
goods or services, or both, manufactured or provided by Michigan
businesses, if they are competitively priced and of comparable
quality. In addition, preference should be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 211. (1) The department may charge fees and collect
revenues in excess of appropriations in part 1 not to exceed the
cost of offender services and programming, employee meals, parolee
loans, academic/vocational services, custody escorts, compassionate
visits, union steward activities, and public works programs and
services provided to local units of government. The revenues and
fees collected are appropriated for all expenses associated with
these services and activities.
(2) If a parolee or probationer has been ordered to pay
restitution, the department shall ensure that payment is a
condition of his or her community supervision. Restitution payments
shall be made as provided in section 22 of chapter XV of the code
of criminal procedure, 1927 PA 175, MCL 775.22. The department
shall collect not more than 50% of all money collected from
parolees and probationers for payments other than victim payments,
as that term is defined in section 22 of chapter XV of the code of
criminal procedure, 1927 PA 175, MCL 775.22.
(3) By April 1, the department shall provide the members of
the senate and house appropriations subcommittees on corrections,
the senate and house fiscal agencies, and the state budget director
with a report detailing the collection of fees under this section.
At minimum, this report shall include a categorical accounting of
all fees collected under this section.
Sec. 212. On a quarterly basis, each executive branch
department and agency receiving appropriations in part 1 shall
report on the number of full-time equated positions in pay status
by civil service classification to the senate and house
appropriations subcommittees on corrections and the senate and
house fiscal agencies. This report shall include a detailed
accounting of the long-term vacancies that exist within each
department. As used in this subsection, "long-term vacancy" means
any full-time equated position that has not been filled at any time
during the past 24 calendar months.
Sec. 213. By February 15, the department shall provide the
members of the senate and house appropriations subcommittees on
corrections, the senate and house fiscal agencies, and the state
budget director with a report detailing non-general fund/general
purpose sources of revenue, including, but not limited to, federal
revenues, state restricted revenues, local and private revenues,
offender reimbursements and other payments, revolving funds, and 1-
time sources of revenue, whether or not those revenues were
appropriated. The report shall include statements detailing for
each account the total amount of revenue received during fiscal
year 2009-2010, the amount by which the revenue exceeded any
applicable appropriated fund source, the amount spent during fiscal
year 2009-2010, the account balance at the close of fiscal year
2009-2010, and the projected revenues and expenditures for fiscal
year 2010-2011.
Sec. 214. From the funds appropriated in part 1 for
information technology, the department shall pay user fees to the
department of technology, management, and budget for technology-
related services and projects. These user fees shall be subject to
provisions of an interagency agreement between the department and
the department of technology, management, and budget. It is the
intent of the legislature that the department consider using third-
party software and information technologies before contracting for
such services through the department of technology, management, and
budget.
Sec. 215. 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 technology, management, and budget. 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. 216. (1) Due to the current budgetary problems of this
state, out-of-state travel for the fiscal year ending September 30,
2012 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 for similar
reasons.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, or both, 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 senate and house of representatives standing committees on
appropriations.
Sec. 218. The department 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.
The department may electronically retain copies of reports unless
otherwise required by federal and state guidelines.
Sec. 219. Any contract for prisoner telephone services entered
into after the effective date of this article shall include a
condition that fee schedules for prisoner telephone calls,
including rates and any surcharges other than those necessary to
meet special equipment costs, be the same as fee schedules for
calls placed from outside of correctional facilities.
Sec. 220. Not later than November 15, the department shall
prepare and transmit a report that provides for estimates of the
total general fund/general purpose appropriation lapses at the
close of the fiscal year. This report shall summarize the projected
year-end general fund/general purpose appropriation lapses by major
departmental program or program areas. The report shall be
transmitted to the office of the state budget, the chairpersons of
the senate and house of representatives standing committees on
appropriations, and the senate and house fiscal agencies.
Sec. 221. (1) The department shall maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(d) The number of active department employees by job
classification.
(e) Job specifications and wage rates.
(2) The department may develop and operate its own website to
provide this information or may reference the state's central
transparency website as the source for this information.
Sec. 223. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $10,000,000.00 for
federal 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.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $5,000,000.00 for state
restricted 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 $2,000,000.00 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 management and budget act, 1984
PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 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. 224. By March 1, the department shall provide a
litigation report to the senate and house appropriations
subcommittees on corrections, the senate and house fiscal agencies,
and the state budget director. The report shall identify all
lawsuits adjudicated through the trial court phase in which the
department or an employee acting on behalf of the department was a
defendant and in which trial court proceedings resulted in a
decision of $250,000.00 or more against the department.
Sec. 225. (1) The department shall make every effort to place
employees displaced by any reductions in force within other
positions in the department.
(2) It is the intent of the legislature that all employees
displaced by any reductions in force who are not placed within
other positions in the department be given priority in state
programs for job retraining or education, such as the no worker
left behind program.
Sec. 229. Within 14 days after the release of the executive
budget recommendation, the department shall provide the state
budget director, the senate and house appropriations chairs, the
senate and house appropriations subcommittees on corrections,
respectively, and the senate and house fiscal agencies with an
annual report on estimated state restricted fund balances, state
restricted fund projected revenues, and state restricted fund
expenditures for the fiscal years ending September 30, 2011 and
September 30, 2012.
Sec. 235. It is the intent of the legislature that the
department reduce expenditures using the following strategies:
(a) Following the recommendations outlined in audit report
471-0130-08 of June 2009 issued by the Michigan office of the
auditor general, which found $7,534,039.00 in known savings that
would have been achieved through cost-neutral operation of the
bureau of correctional industries, as follows:
(i) Finding 1 indicates that the bureau of correctional
industries has consistently failed to maintain profitable or cost-
neutral operations.
(ii) Finding 2 indicates that the bureau of correctional
industries had not developed or implemented a comprehensive
business plan.
(iii) Finding 3 indicates that the bureau of correctional
industries did not efficiently schedule and utilize its trucks and
drivers for delivery of products and services.
(iv) Finding 4 indicates that the bureau of correctional
industries had not established comprehensive policies and
procedures for setting prices and discounts for products and
services.
(b) Continuing the supply chain transformation (SCT) with the
new fiscal year beginning October 1, 2011. The SCT shall address
all goods and services delivered into the department, with special
focus in the following areas: food service, offender transport,
warehousing, prisoner stores, laundries, textiles, transportation,
reverse logistics, education, sex offender programming, assaultive
offender programming, Michigan state industries manufacturing and
related material, and capital and service purchase contracts under
development or due to expire. The department shall continually
detail its supply chain strategy and implementation plan including
tasks, timing, resources, costs, and benefits to be achieved. The
department shall provide quarterly cost and benefit savings report
information. The department shall contract with a world-class
supply chain external resource with the following capabilities:
demonstrated success working in a department of corrections
environment in the targeted supply chain areas of focus;
demonstrated expertise in defining, developing, and implementing
cross-functional infrastructures; continuous quality improvement
teams; stakeholder and communications outreach programs; six