SENATE BILL No. 378

 

 

May 16, 2017, Introduced by Senators KNOLLENBERG, MACGREGOR, JONES, HUNE and KOWALL and referred to the Committee on Regulatory Reform.

 

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 20106, 20156, 20173a, and 21311 (MCL

 

333.20106, 333.20156, 333.20173a, and 333.21311), section 20106 as

 

amended by 2015 PA 104, section 20156 as amended by 2006 PA 195,

 

section 20173a as amended by 2014 PA 66, and section 21311 as

 

amended by 2004 PA 74, and by adding sections 21302 and 21311a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20106. (1) "Health facility or agency", except as

 

provided in section 20115, means:

 

     (a) An ambulance operation, aircraft transport operation,

 

nontransport prehospital life support operation, or medical first

 

response service.

 

     (b) A county medical care facility.


     (c) A freestanding surgical outpatient facility.

 

     (d) A health maintenance organization.

 

     (e) A home for the aged.

 

     (f) A hospital.

 

     (g) A nursing home.

 

     (h) A hospice.

 

     (i) A hospice residence.

 

     (j) A facility or agency listed in subdivisions (a) to (g)

 

located in a university, college, or other educational institution.

 

     (2) "Health maintenance organization" means that term as

 

defined in section 3501 of the insurance code of 1956, 1956 PA 218,

 

MCL 500.3501.

 

     (3) "Home for the aged" means a supervised personal care

 

facility at a single address, other than a hotel, adult foster care

 

facility, hospital, nursing home, or county medical care facility

 

that provides room, board, and supervised personal care to 21 or

 

more unrelated, nontransient, individuals 60 55 years of age or

 

older. Home for the aged includes a supervised personal care

 

facility for 20 or fewer individuals 60 55 years of age or older if

 

the facility is operated in conjunction with and as a distinct part

 

of a licensed nursing home. Home for the aged does not include an

 

area excluded from this definition by section 17(3) of the

 

continuing care community disclosure act, 2014 PA 448, MCL 554.917.

 

     (4) "Hospice" means a health care program that provides a

 

coordinated set of services rendered at home or in outpatient or

 

institutional settings for individuals suffering from a disease or

 

condition with a terminal prognosis.


     (5) "Hospital" means a facility offering inpatient, overnight

 

care, and services for observation, diagnosis, and active treatment

 

of an individual with a medical, surgical, obstetric, chronic, or

 

rehabilitative condition requiring the daily direction or

 

supervision of a physician. Hospital does not include a mental

 

health hospital licensed or operated by the department of community

 

health and human services or a hospital operated by the department

 

of corrections.

 

     (6) "Hospital long-term care unit" means a nursing care

 

facility, owned and operated by and as part of a hospital,

 

providing organized nursing care and medical treatment to 7 or more

 

unrelated individuals suffering or recovering from illness, injury,

 

or infirmity.

 

     Sec. 20156. (1) A representative of the department or the

 

bureau of fire services created in section 1b of the fire

 

prevention code, 1941 PA 207, MCL 29.1b, upon presentation of

 

proper identification, may enter the premises of an applicant or

 

licensee at any reasonable time to determine whether the applicant

 

or licensee meets the requirements of this article and the rules

 

promulgated under this article. The director; the director of the

 

department of health and human services; the bureau of fire

 

services; the director of the office of services to the aging; or

 

the director of a local health department; or an authorized

 

representative of the director, the director of the department of

 

health and human services, the bureau of fire services, the

 

director of the office of services to the aging, or the director of

 

a local health department may enter on the premises of an applicant


or licensee under part 217 at any time in the course of carrying

 

out program responsibilities.

 

     (2) The bureau of fire services created in section 1b of the

 

fire prevention code, 1941 PA 207, MCL 29.1b, shall enforce rules

 

promulgated by the bureau of fire services for health facilities

 

and agencies to assure ensure that physical facilities owned,

 

maintained, or operated by a health facility or agency are planned,

 

constructed, and maintained in a manner to protect the health,

 

safety, and welfare of patients.

 

     (3) Beginning on the effective date of the 2017 amendatory act

 

that added this subsection, the bureau of fire services shall amend

 

the rules promulgated under subsection (3) to allow physical

 

facilities in existence on or before December 31, 2016 and

 

continuously operating up to the time of application for a home for

 

the aged license to be reviewed and inspected to comply with the

 

provisions of chapter 19 or 33 of the National Fire Protection

 

Association standard number 101. Chapter 33 of the National Fire

 

Protection Association standard number 101 only applies if

 

residents are assessed as capable of self-preservation or the

 

physical facility is adequately staffed to evacuate residents in an

 

emergency.

 

     (4) An applicant under subsection (3) shall provide

 

information requested by the department that allows the department

 

to verify that the physical facility was in existence on or before

 

December 31, 2016 and has been continuously operating up to the

 

time of application.

 

     (5) (3) The department shall not issue a license or


certificate to a health facility or agency until it receives an

 

appropriate certificate of approval from the bureau of fire

 

services. For purposes of this section, a decision of the bureau of

 

fire services to issue a certificate controls over that of a local

 

fire department.

 

     (6) (4) Subsections (2), and (3), (4), and (5) do not apply to

 

a health facility or an agency licensed under part 205 or 209.

 

     Sec. 20173a. (1) Except as otherwise provided in subsection

 

(2), a covered facility shall not employ, independently contract

 

with, or grant clinical privileges to an individual who regularly

 

has direct access to or provides direct services to patients or

 

residents in the covered facility if the individual satisfies 1 or

 

more of the following:

 

     (a) Has been convicted of a relevant crime described under 42

 

USC 1320a-7(a).

 

     (b) Has been convicted of any of the following felonies, an

 

attempt or conspiracy to commit any of those felonies, or any other

 

state or federal crime that is similar to the felonies described in

 

this subdivision, other than a felony for a relevant crime

 

described under 42 USC 1320a-7(a), unless 15 years have lapsed

 

since the individual completed all of the terms and conditions of

 

his or her sentencing, parole, and probation for that conviction

 

prior to before the date of application for employment or clinical

 

privileges or the date of the execution of the independent

 

contract:

 

     (i) A felony that involves the intent to cause death or

 

serious impairment of a body function, that results in death or


serious impairment of a body function, that involves the use of

 

force or violence, or that involves the threat of the use of force

 

or violence.

 

     (ii) A felony involving cruelty or torture.

 

     (iii) A felony under chapter XXA of the Michigan penal code,

 

1931 PA 328, MCL 750.145m to 750.145r.

 

     (iv) A felony involving criminal sexual conduct.

 

     (v) A felony involving abuse or neglect.

 

     (vi) A felony involving the use of a firearm or dangerous

 

weapon.

 

     (vii) A felony involving the diversion or adulteration of a

 

prescription drug or other medications.

 

     (c) Has been convicted of a felony or an attempt or conspiracy

 

to commit a felony, other than a felony for a relevant crime

 

described under 42 USC 1320a-7(a) or a felony described under

 

subdivision (b), unless 10 years have lapsed since the individual

 

completed all of the terms and conditions of his or her sentencing,

 

parole, and probation for that conviction prior to the date of

 

application for employment or clinical privileges or the date of

 

the execution of the independent contract.

 

     (d) Has been convicted of any of the following misdemeanors,

 

other than a misdemeanor for a relevant crime described under 42

 

USC 1320a-7(a), or a state or federal crime that is substantially

 

similar to the misdemeanors described in this subdivision, within

 

the 10 years immediately preceding the date of application for

 

employment or clinical privileges or the date of the execution of

 

the independent contract:


     (i) A misdemeanor involving the use of a firearm or dangerous

 

weapon with the intent to injure, the use of a firearm or dangerous

 

weapon that results in a personal injury, or a misdemeanor

 

involving the use of force or violence or the threat of the use of

 

force or violence.

 

     (ii) A misdemeanor under chapter XXA of the Michigan penal

 

code, 1931 PA 328, MCL 750.145m to 750.145r.

 

     (iii) A misdemeanor involving criminal sexual conduct.

 

     (iv) A misdemeanor involving cruelty or torture unless

 

otherwise provided under subdivision (e).

 

     (v) A misdemeanor involving abuse or neglect.

 

     (e) Has been convicted of any of the following misdemeanors,

 

other than a misdemeanor for a relevant crime described under 42

 

USC 1320a-7(a), or a state or federal crime that is substantially

 

similar to the misdemeanors described in this subdivision, within

 

the 5 years immediately preceding the date of application for

 

employment or clinical privileges or the date of the execution of

 

the independent contract:

 

     (i) A misdemeanor involving cruelty if committed by an

 

individual who is less than 16 years of age.

 

     (ii) A misdemeanor involving home invasion.

 

     (iii) A misdemeanor involving embezzlement.

 

     (iv) A misdemeanor involving negligent homicide or a violation

 

of section 601d(1) of the Michigan vehicle code, 1949 PA 300, MCL

 

257.601d.

 

     (v) A misdemeanor involving larceny unless otherwise provided

 

under subdivision (g).


     (vi) A misdemeanor of retail fraud in the second degree unless

 

otherwise provided under subdivision (g).

 

     (vii) Any other misdemeanor involving assault, fraud, theft,

 

or the possession or delivery of a controlled substance unless

 

otherwise provided under subdivision (d), (f), or (g).

 

     (f) Has been convicted of any of the following misdemeanors,

 

other than a misdemeanor for a relevant crime described under 42

 

USC 1320a-7(a), or a state or federal crime that is substantially

 

similar to the misdemeanors described in this subdivision, within

 

the 3 years immediately preceding the date of application for

 

employment or clinical privileges or the date of the execution of

 

the independent contract:

 

     (i) A misdemeanor for assault if there was no use of a firearm

 

or dangerous weapon and no intent to commit murder or inflict great

 

bodily injury.

 

     (ii) A misdemeanor of retail fraud in the third degree unless

 

otherwise provided under subdivision (g).

 

     (iii) A misdemeanor under part 74 unless otherwise provided

 

under subdivision (g).

 

     (g) Has been convicted of any of the following misdemeanors,

 

other than a misdemeanor for a relevant crime described under 42

 

USC 1320a-7(a), or a state or federal crime that is substantially

 

similar to the misdemeanors described in this subdivision, within

 

the year immediately preceding the date of application for

 

employment or clinical privileges or the date of the execution of

 

the independent contract:

 

     (i) A misdemeanor under part 74 if the individual, at the time


of conviction, is under the age of 18.

 

     (ii) A misdemeanor for larceny or retail fraud in the second

 

or third degree if the individual, at the time of conviction, is

 

under the age of 16.

 

     (h) Is the subject of an order or disposition under section

 

16b of chapter IX of the code of criminal procedure, 1927 PA 175,

 

MCL 769.16b.

 

     (i) Engages in conduct that becomes the subject of a

 

substantiated finding of neglect, abuse, or misappropriation of

 

property by a state or federal agency pursuant to under an

 

investigation conducted in accordance with 42 USC 1395i-3 or 1396r.

 

     (2) Except as otherwise provided in this subsection or

 

subsection (5), a covered facility shall not employ, independently

 

contract with, or grant privileges to an individual who regularly

 

has direct access to or provides direct services to patients or

 

residents in the covered facility until the covered facility or

 

staffing agency has a criminal history check conducted in

 

compliance with this section or has received criminal history

 

record information in compliance with subsections (3) and (10).

 

This subsection and subsection (1) do not apply to any of the

 

following:

 

     (a) An individual who is employed by, under independent

 

contract to, or granted clinical privileges in a covered facility

 

before April 1, 2006. On or before April 1, 2011, an individual who

 

is exempt under this subdivision and who has not been the subject

 

of a criminal history check conducted in compliance with this

 

section shall provide the department of state police with a set of


fingerprints and the department of state police shall input those

 

fingerprints into the automated fingerprint identification system

 

database established under subsection (13). An individual who is

 

exempt under this subdivision is not limited to working within the

 

covered facility with which he or she is employed by, under

 

independent contract to, or granted clinical privileges on April 1,

 

2006 but may transfer to another covered facility, adult foster

 

care facility, or mental health facility. If an individual who is

 

exempt under this subdivision is subsequently convicted of a crime

 

described under subsection (1)(a) to (g) or found to be the subject

 

of a substantiated finding described under subsection (1)(i) or an

 

order or disposition described under subsection (1)(h), or is found

 

to have been convicted of a relevant crime described under 42 USC

 

1320a-7(a), then he or she is no longer exempt and shall be

 

terminated from employment or denied employment or clinical

 

privileges.

 

     (b) An individual who is under an independent contract with a

 

covered facility if he or she is not under the facility's control

 

and the services for which he or she is contracted are not directly

 

related to the provision of services to a patient or resident or if

 

the services for which he or she is contracted allow for direct

 

access to the patients or residents but are not performed on an

 

ongoing basis. This exception includes, but is not limited to, an

 

individual who is under an independent contract with the covered

 

facility to provide utility, maintenance, construction, or

 

communications services.

 

     (3) An individual who applies for employment either as an


employee or as an independent contractor or for clinical privileges

 

with a staffing agency or covered facility and who has not been the

 

subject of a criminal history check conducted in compliance with

 

this section shall give written consent at the time of application

 

for the department of state police to conduct a criminal history

 

check under this section, along with identification acceptable to

 

the department of state police. If the applicant has been the

 

subject of a criminal history check conducted in compliance with

 

this section, the applicant shall give written consent at the time

 

of application for the covered facility or staffing agency to

 

obtain the criminal history record information as prescribed in

 

subsection (4) from the relevant licensing or regulatory department

 

and for the department of state police to conduct a criminal

 

history check under this section if the requirements of subsection

 

(10) are not met and a request to the federal bureau of

 

investigation Federal Bureau of Investigation to make a

 

determination of the existence of any national criminal history

 

pertaining to the applicant is necessary, along with identification

 

acceptable to the department of state police. Upon receipt of the

 

written consent to obtain the criminal history record information

 

and identification required under this subsection, the staffing

 

agency or covered facility that has made a good faith offer of

 

employment or an independent contract or clinical privileges to the

 

applicant shall request the criminal history record information

 

from the relevant licensing or regulatory department and shall make

 

a request regarding that applicant to the relevant licensing or

 

regulatory department to conduct a check of all relevant registries


in the manner required in subsection (4). If the requirements of

 

subsection (10) are not met and a request to the federal bureau of

 

investigation Federal Bureau of Investigation to make a subsequent

 

determination of the existence of any national criminal history

 

pertaining to the applicant is necessary, the covered facility or

 

staffing agency shall proceed in the manner required in subsection

 

(4). A staffing agency that employs an individual who regularly has

 

direct access to or provides direct services to patients or

 

residents under an independent contract with a covered facility

 

shall submit information regarding the criminal history check

 

conducted by the staffing agency to the covered facility that has

 

made a good faith offer of independent contract to that applicant.

 

     (4) Upon receipt of the written consent to conduct a criminal

 

history check and identification required under subsection (3), a

 

staffing agency or covered facility that has made a good faith

 

offer of employment or an independent contract or clinical

 

privileges to the applicant shall make a request to the department

 

of state police to conduct a criminal history check on the

 

applicant, to input the applicant's fingerprints into the automated

 

fingerprint identification system database, and to forward the

 

applicant's fingerprints to the federal bureau of

 

investigation.Federal Bureau of Investigation. The department of

 

state police shall request the federal bureau of investigation

 

Federal Bureau of Investigation to make a determination of the

 

existence of any national criminal history pertaining to the

 

applicant. The applicant shall provide the department of state

 

police with a set of fingerprints. The request shall be made in a


manner prescribed by the department of state police. The staffing

 

agency or covered facility shall make the written consent and

 

identification available to the department of state police. The

 

staffing agency or covered facility shall make a request regarding

 

that applicant to the relevant licensing or regulatory department

 

to conduct a check of all relevant registries established pursuant

 

according to federal and state law and regulations for any

 

substantiated findings of abuse, neglect, or misappropriation of

 

property. If the department of state police or the federal bureau

 

of investigation Federal Bureau of Investigation charges a fee for

 

conducting the criminal history check, the staffing agency or

 

covered facility shall pay the cost of the charge. If the

 

department of state police or the federal bureau of investigation

 

Federal Bureau of Investigation charges a fee for conducting the

 

criminal history check, the department shall pay the cost of or

 

reimburse the charge up to 40 criminal history checks per year for

 

a covered facility that is a home for the aged with fewer than 100

 

beds and 50 criminal history checks per year for a covered facility

 

that is a home for the aged with 100 beds or more. The staffing

 

agency or covered facility shall not seek reimbursement for a

 

charge imposed by the department of state police or the federal

 

bureau of investigation Federal Bureau of Investigation from the

 

individual who is the subject of the criminal history check. A

 

prospective employee or a prospective independent contractor

 

covered under this section may not be charged for the cost of a

 

criminal history check required under this section. The department

 

of state police shall conduct a criminal history check on the


applicant named in the request. The department of state police

 

shall provide the department with a written report of the criminal

 

history check conducted under this subsection. The report shall

 

contain any criminal history record information on the applicant

 

maintained by the department of state police. The department of

 

state police shall provide the results of the federal bureau of

 

investigation Federal Bureau of Investigation determination to the

 

department within 30 days after the request is made. If the

 

requesting staffing agency or covered facility is not a state

 

department or agency and if criminal history record information is

 

disclosed on the written report of the criminal history check or

 

the federal bureau of investigation Federal Bureau of Investigation

 

determination that resulted in a conviction, the department shall

 

notify the staffing agency or covered facility and the applicant in

 

writing of the type of crime disclosed on the written report of the

 

criminal history check or the federal bureau of investigation

 

Federal Bureau of Investigation determination without disclosing

 

the details of the crime. Any charges imposed by the department of

 

state police or the federal bureau of investigation Federal Bureau

 

of Investigation for conducting a criminal history check or making

 

a determination under this subsection shall be paid in the manner

 

required under this subsection. The notice shall include a

 

statement that the applicant has a right to appeal the information

 

relied upon by the staffing agency or covered facility in making

 

its decision regarding his or her employment eligibility based on

 

the criminal history check. The notice shall also include

 

information regarding where to file and describing the appellate


procedures established under section 20173b.

 

     (5) If a covered facility determines it necessary to employ or

 

grant clinical privileges to an applicant before receiving the

 

results of the applicant's criminal history check or criminal

 

history record information under this section, the covered facility

 

may conditionally employ or grant conditional clinical privileges

 

to the individual if all of the following apply:

 

     (a) The covered facility requests the criminal history check

 

or criminal history record information under this section upon

 

conditionally employing or conditionally granting clinical

 

privileges to the individual.

 

     (b) The individual signs a statement in writing that indicates

 

all of the following:

 

     (i) That he or she has not been convicted of 1 or more of the

 

crimes that are described in subsection (1)(a) to (g) within the

 

applicable time period prescribed by each subdivision respectively.

 

     (ii) That he or she is not the subject of an order or

 

disposition described in subsection (1)(h).

 

     (iii) That he or she has not been the subject of a

 

substantiated finding as described in subsection (1)(i).

 

     (iv) That he or she agrees that, if the information in the

 

criminal history check conducted under this section does not

 

confirm the individual's statements under subparagraphs (i) to

 

(iii), his or her employment or clinical privileges will be

 

terminated by the covered facility as required under subsection (1)

 

unless and until the individual appeals and can prove that the

 

information is incorrect.


     (v) That he or she understands that the conditions described

 

in subparagraphs (i) to (iv) may result in the termination of his

 

or her employment or clinical privileges and that those conditions

 

are good cause for termination.

 

     (c) Except as otherwise provided in this subdivision, the

 

covered facility does not permit the individual to have regular

 

direct access to or provide direct services to patients or

 

residents in the covered facility without supervision until the

 

criminal history check or criminal history record information is

 

obtained and the individual is eligible for that employment or

 

clinical privileges. If required under this subdivision, the

 

covered facility shall provide on-site supervision of an individual

 

in the covered facility on a conditional basis under this

 

subsection by an individual who has undergone a criminal history

 

check conducted in compliance with this section. A covered facility

 

may permit an individual in the covered facility on a conditional

 

basis under this subsection to have regular direct access to or

 

provide direct services to patients or residents in the covered

 

facility without supervision if all of the following conditions are

 

met:

 

     (i) The covered facility, at its own expense and before the

 

individual has direct access to or provides direct services to

 

patients or residents of the covered facility, conducts a search of

 

public records on that individual through the internet criminal

 

history access tool maintained by the department of state police

 

and the results of that search do not uncover any information that

 

would indicate that the individual is not eligible to have regular


direct access to or provide direct services to patients or

 

residents under this section.

 

     (ii) Before the individual has direct access to or provides

 

direct services to patients or residents of the covered facility,

 

the individual signs a statement in writing that he or she has

 

resided in this state without interruption for at least the

 

immediately preceding 12-month period.

 

     (iii) If applicable, the individual provides to the department

 

of state police a set of fingerprints on or before the expiration

 

of 10 business days following the date the individual was

 

conditionally employed or granted conditional clinical privileges

 

under this subsection.

 

     (6) The department shall develop and distribute a model form

 

for the statements required under subsection (5)(b) and (c). The

 

department shall make the model form available to covered

 

facilities upon request at no charge.

 

     (7) If an individual is employed as a conditional employee or

 

is granted conditional clinical privileges under subsection (5),

 

and the information under subsection (3) or report under subsection

 

(4) does not confirm the individual's statement under subsection

 

(5)(b)(i) to (iii), the covered facility shall terminate the

 

individual's employment or clinical privileges as required by

 

subsection (1).

 

     (8) An individual who knowingly provides false information

 

regarding his or her identity, criminal convictions, or

 

substantiated findings on a statement described in subsection

 

(5)(b)(i) to (iii) is guilty of a misdemeanor punishable by


imprisonment for not more than 93 days or a fine of not more than

 

$500.00, or both.

 

     (9) A staffing agency or covered facility shall use criminal

 

history record information obtained under subsection (3) or (4)

 

only for the purpose of evaluating an applicant's qualifications

 

for employment, an independent contract, or clinical privileges in

 

the position for which he or she has applied and for the purposes

 

of subsections (5) and (7). A staffing agency or covered facility

 

or an employee of the staffing agency or covered facility shall not

 

disclose criminal history record information obtained under

 

subsection (3) or (4) to a person who is not directly involved in

 

evaluating the applicant's qualifications for employment, an

 

independent contract, or clinical privileges. An individual who

 

knowingly uses or disseminates the criminal history record

 

information obtained under subsection (3) or (4) in violation of

 

this subsection is guilty of a misdemeanor punishable by

 

imprisonment for not more than 93 days or a fine of not more than

 

$1,000.00, or both. Except for a knowing or intentional release of

 

false information, a staffing agency or covered facility has no

 

liability in connection with a criminal history check conducted in

 

compliance with this section or the release of criminal history

 

record information under this subsection.

 

     (10) Upon consent of an applicant as required in subsection

 

(3) and upon request from a staffing agency or covered facility

 

that has made a good faith offer of employment or an independent

 

contract or clinical privileges to the applicant, the relevant

 

licensing or regulatory department shall review the criminal


history record information, if any, and notify the requesting

 

staffing agency or covered facility of the information in the

 

manner prescribed in subsection (4). Until the federal bureau of

 

investigation Federal Bureau of Investigation implements an

 

automatic notification system similar to the system required of the

 

state police under subsection (13) and federal regulations allow

 

the federal criminal record to be used for subsequent authorized

 

uses, as determined in an order issued by the department, a

 

staffing agency or covered facility may rely on the criminal

 

history record information provided by the relevant licensing or

 

regulatory department under this subsection and a request to the

 

federal bureau of investigation Federal Bureau of Investigation to

 

make a subsequent determination of the existence of any national

 

criminal history pertaining to the applicant is not necessary if

 

all of the following requirements are met:

 

     (a) The criminal history check was conducted during the

 

immediately preceding 12-month period.

 

     (b) The applicant has been continuously employed by the

 

staffing agency or a covered facility, adult foster care facility,

 

or mental health facility since the criminal history check was

 

conducted in compliance with this section or meets the continuous

 

employment requirement of this subdivision other than being on

 

layoff status for less than 1 year from a covered facility, adult

 

foster care facility, or mental health facility.

 

     (c) The applicant can provide evidence acceptable to the

 

relevant licensing or regulatory department that he or she has been

 

a resident of this state for the immediately preceding 12-month


period.

 

     (11) As a condition of continued employment, each employee,

 

independent contractor, or individual granted clinical privileges

 

shall do each of the following:

 

     (a) Agree in writing to report to the staffing agency or

 

covered facility immediately upon being arraigned for 1 or more of

 

the criminal offenses listed in subsection (1)(a) to (g), upon

 

being convicted of 1 or more of the criminal offenses listed in

 

subsection (1)(a) to (g), upon becoming the subject of an order or

 

disposition described under subsection (1)(h), and upon being the

 

subject of a substantiated finding of neglect, abuse, or

 

misappropriation of property as described in subsection (1)(i).

 

Reporting of an arraignment under this subdivision is not cause for

 

termination or denial of employment.

 

     (b) If a set of fingerprints is not already on file with the

 

department of state police, provide the department of state police

 

with a set of fingerprints.

 

     (12) In addition to sanctions set forth in section 20165, a

 

licensee, owner, administrator, or operator of a staffing agency or

 

covered facility who knowingly and willfully fails to conduct the

 

criminal history checks as required under this section is guilty of

 

a misdemeanor punishable by imprisonment for not more than 1 year

 

or a fine of not more than $5,000.00, or both.

 

     (13) In collaboration with the department of state police, the

 

department of technology, management, and budget shall establish

 

and maintain an automated fingerprint identification system

 

database that would allow the department of state police to store


and maintain all fingerprints submitted under this section and

 

would provide for an automatic notification if and when a

 

subsequent criminal arrest fingerprint card submitted into the

 

system matches a set of fingerprints previously submitted under

 

this section. Upon such notification, the department of state

 

police shall immediately notify the department and the department

 

shall immediately contact each respective staffing agency or

 

covered facility with which that individual is associated.

 

Information in the database established under this subsection is

 

confidential, is not subject to disclosure under the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246, and shall not

 

be disclosed to any person except for purposes of this act or for

 

law enforcement purposes.

 

     (14) The department shall maintain an electronic web-based

 

system to assist staffing agencies and covered facilities required

 

to check relevant registries and conduct criminal history checks of

 

its employees, independent contractors, and individuals granted

 

privileges and to provide for an automated notice to those staffing

 

agencies and covered facilities for those individuals inputted in

 

the system who, since the initial criminal history check, have been

 

convicted of a disqualifying offense or have been the subject of a

 

substantiated finding of abuse, neglect, or misappropriation of

 

property. The department may charge a staffing agency a 1-time set-

 

up fee of up to $100.00 for access to the electronic web-based

 

system under this section.

 

     (15) As used in this section:

 

     (a) "Adult foster care facility" means an adult foster care


facility licensed under the adult foster care facility licensing

 

act, 1979 PA 218, MCL 400.701 to 400.737.

 

     (b) "Convicted" means either of the following:

 

     (i) For a crime that is not a relevant crime, a final

 

conviction, the payment of a fine, a plea of guilty or nolo

 

contendere if accepted by the court, or a finding of guilt for a

 

criminal law violation or a juvenile adjudication or disposition by

 

the juvenile division of probate court or family division of

 

circuit court for a violation that if committed by an adult would

 

be a crime.

 

     (ii) For a relevant crime described under 42 USC 1320a-7(a),

 

convicted means that term as defined in 42 USC 1320a-7.

 

     (c) "Covered facility" means a health facility or agency that

 

is a nursing home, county medical care facility, hospice, hospital

 

that provides swing bed services, home for the aged, or home health

 

agency.

 

     (d) "Criminal history check conducted in compliance with this

 

section" includes a criminal history check conducted under this

 

section, under section 134a of the mental health code, 1974 PA 258,

 

MCL 330.1134a, or under section 34b of the adult foster care

 

facility licensing act, 1979 PA 218, MCL 400.734b.

 

     (e) "Direct access" means access to a patient or resident or

 

to a patient's or resident's property, financial information,

 

medical records, treatment information, or any other identifying

 

information.

 

     (f) "Home health agency" means a person certified by medicare

 

whose business is to provide to individuals in their places of


residence other than in a hospital, nursing home, or county medical

 

care facility 1 or more of the following services: nursing

 

services, therapeutic services, social work services, homemaker

 

services, home health aide services, or other related services.

 

     (g) "Independent contract" means a contract entered into by a

 

covered facility with an individual who provides the contracted

 

services independently or a contract entered into by a covered

 

facility with a staffing agency that complies with the requirements

 

of this section to provide the contracted services to the covered

 

facility on behalf of the staffing agency.

 

     (h) "Medicare" means benefits under the federal medicare

 

program established under title XVIII of the social security act,

 

42 USC 1395 to 1395kkk-1.1395lll.

 

     (i) "Mental health facility" means a psychiatric facility or

 

other facility defined in 42 USC 1396d(d) as described under the

 

mental health code, 1974 PA 258, MCL 330.1001 to 330.2106.

 

     (j) "Staffing agency" means an entity that recruits candidates

 

and provides temporary and permanent qualified staffing for covered

 

facilities, including independent contractors.

 

     (k) "Under the facility's control" means an individual

 

employed by or under independent contract with a covered facility

 

for whom the covered facility does both of the following:

 

     (i) Determines whether the individual who has access to

 

patients or residents may provide care, treatment, or other similar

 

support service functions to patients or residents served by the

 

covered facility.

 

     (ii) Directs or oversees 1 or more of the following:


     (A) The policy or procedures the individual must follow in

 

performing his or her duties.

 

     (B) The tasks performed by the individual.

 

     (C) The individual's work schedule.

 

     (D) The supervision or evaluation of the individual's work or

 

job performance, including imposing discipline or granting

 

performance awards.

 

     (E) The compensation the individual receives for performing

 

his or her duties.

 

     (F) The conditions under which the individual performs his or

 

her duties.

 

     Sec. 21302. (1) "Continuing care community" means that term as

 

defined in section 3 of the continuing care community disclosure

 

act, 2014 PA 448, MCL 554.903.

 

     (2) "Supervised personal care" means the direct guidance or

 

hands-on assistance with activities of daily living offered by a

 

facility to residents of the facility that include 2 or more of the

 

following services provided by the facility to any resident for 30

 

or more consecutive days as documented in the resident's service

 

plan:

 

     (a) Direct and regular involvement by staff in assisting a

 

resident with the administration of the resident's prescription

 

medications, including direct supervision of the resident taking

 

medication in accordance with the instructions of the resident's

 

licensed health care professional.

 

     (b) Hands-on assistance by staff in carrying out 2 or more of

 

the following activities of daily living: eating, toileting,


bathing, grooming, dressing, transferring, and mobility.

 

     (c) Direct staff involvement in a resident's personal and

 

social activities or the use of devices to enhance resident safety

 

by controlling resident egress from the facility.

 

     Sec. 21311. (1) A Except as provided in section 21311a, a home

 

for the aged shall be licensed under this article.

 

     (2) "Home Except as provided in section 21311a, "home for the

 

aged" or a similar term or abbreviation shall not be used to

 

describe or refer to a health facility or agency unless the health

 

facility or agency is licensed as a home for the aged by the

 

department under this article.

 

     (3) Except as otherwise provided in this subsection, a home

 

for the aged shall not admit an individual under 60 55 years of

 

age. Upon the request of a home for the aged and subject to

 

subsection (4), the director shall waive the age limitation imposed

 

by this subsection if the individual, the individual's guardian or

 

other legal representative, if appointed, and the owner, operator,

 

and governing body of the home for the aged, upon consultation with

 

the individual's physician, agree on each of the following:

 

     (a) The home for the aged is capable of meeting all of the

 

individual's medical, social, and other needs as determined in the

 

individual's plan of service.

 

     (b) The individual will be compatible with the other residents

 

of that home for the aged.

 

     (c) The placement in that home for the aged is in the best

 

interests of the individual.

 

     (4) The owner, operator, and governing body of the home for


the aged shall submit, with its request for a waiver, documentation

 

to the director that supports each of the points of agreement

 

necessary under subsection (3). Within 5 days after receipt of the

 

information required under this subsection, the director shall

 

determine if that documentation collectively substantiates each of

 

the points of agreement necessary under subsection (3) and approve

 

or deny the waiver. If denied, the director shall send a written

 

notice of the denial and the reasons for denial to the requesting

 

party.

 

     Sec. 21311a. (1) The department shall make a determination

 

that a facility is exempt from licensure as a home for the aged

 

under this article if the owner, operator, or governing body of the

 

facility submits an attestation to the department that assures

 

either of the following:

 

     (a) All of the following requirements are met:

 

     (i) The owner, operator, or governing body that provides room

 

and the person that provides supervised personal care are not

 

related.

 

     (ii) The individual has the right to contract for supervised

 

personal care from a person of his or her choice.

 

     (iii) The attestation must be provided by the owner or

 

managing company that certifies that the persons described in

 

subparagraph (i) are not related.

 

     (iv) The applicant acknowledges that the penalty for

 

submitting a false or inaccurate attestation is an administrative

 

fine of $10,000.00.

 

     (b) Both of the following requirements are met:


     (i) The entity that provides room and the entity that provides

 

supervised personal care are related, and the facility is

 

registered as a continuing care community under the continuing care

 

community disclosure act, 2014 PA 448, MCL 554.901 to 554.993, and

 

that includes a licensed nursing home as part of the continuing

 

care community.

 

     (ii) The applicant acknowledges that the penalty for

 

submitting a false or inaccurate attestation is an administrative

 

fine of $10,000.00.

 

     (2) Beginning on the effective date of the amendatory act that

 

added this section, an exemption from licensing allowed under this

 

section may be given to an existing facility or a facility under

 

construction at which board is offered through a person not related

 

to the person that provides room or supervised personal care, or

 

both, if that facility meets the requirements of this section. An

 

exemption granted under this section no longer applies after a

 

major building modification is made to the facility. An exemption

 

shall not be granted under this subsection after December 31, 2019.

 

     (3) A denial of an exemption from the licensing requirement by

 

the department is subject to a review by the department upon the

 

applicant providing further information or an appeal as provided in

 

section 1205, or both. The department shall act on an exemption

 

requested under this section as soon as practicable but no later

 

than 60 days after receipt of the request for exemption.

 

     (4) An exemption granted under subsection (1) or (2) may be

 

revoked if the department determines 1 of the following:

 

     (a) That the false or inaccurate information provided in the


attestation was material to granting the exemption.

 

     (b) The facility is found to be negligent in the serious

 

injury or death of a resident and there continues to be a risk to

 

the health and safety of the residents at that facility.

 

     (c) The facility does not cooperate in the department's

 

investigation to make a determination for subdivision (a) or (b).

 

     (5) As used in this section:

 

     (a) "Board" means food service provided at a facility.

 

     (b) "Related" means any of the following personal

 

relationships by marriage, blood, or adoption: spouse, child,

 

parent, brother, sister, grandparent, grandchild, aunt, uncle,

 

stepparent, stepbrother, stepsister, or cousin. Related also means

 

an entity owns or is owned by any person that has a direct or

 

indirect ownership interest in any other entity that provides a

 

component of operations or service under subsection (1)(a)(i).

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.