SB-1216, As Passed Senate, June 17, 2004                                    

SUBSTITUTE FOR

SENATE BILL NO. 1216

                                                                             A bill to amend 1974 PA 258, entitled                                             

"Mental health code,"                                                       

by amending section 137 (MCL 330.1137), as amended by 1995 PA               

290.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 137.  (1) A person shall not construct, establish, or                  

2   maintain a psychiatric hospital, psychiatric unit, or psychiatric           

3   partial hospitalization program or use the terms psychiatric                

4   hospital, psychiatric unit, or psychiatric partial                          

5   hospitalization program, without first obtaining a license.  The            

6   director shall require an applicant or a licensee to disclose the           

7   names, addresses, and official positions of all persons who have            

8   an ownership interest in a psychiatric hospital, psychiatric                

9   unit, or psychiatric partial hospitalization program.  If the               

10  psychiatric hospital, psychiatric unit, or psychiatric partial              

1   hospitalization program is located on or in real estate  which

2   that is leased, the applicant or licensee shall disclose the name           

3   of the lessor and any direct or indirect interest that the                  

4   applicant or licensee has in the lease other than as lessee.  A             

5   nontransferable license shall be granted for 2 years after the              

6   date of issuance, unless otherwise provided in sections 134 to              

7   150.  The director may issue a provisional license for 1 year to            

8   provide a licensee or applicant time to undertake remedial action           

9   to correct programmatic or physical plant deficiencies.  A                  

10  provisional license may be renewed for  no not longer than 1               

11  additional year.  A violation of this section is a misdemeanor              

12  and  shall be is punishable by a fine of not more than $1,000.00           

13  for each violation.                                                         

14      (2) Biennial licensure of psychiatric hospitals, psychiatric                

15  units, and psychiatric partial hospitalization programs shall be            

16  implemented  within 1 year after the effective date of the                  

17  amendatory act that added sections 100a to 100d by March 28,               

18  1997.  License fees shall be prorated according to the period of            

19  time that the license will be in force.                                     

20  (3) Beginning the effective date of the amendatory act that                 

21  added this subsection, the department shall issue an initial                

22  license under this section not later than 6 months after the                

23  applicant files a completed application.  Receipt of the                    

24  application is considered the date the application is received by           

25  any agency or department of this state.  If the application is              

26  considered incomplete by the department, the department shall               

27  notify the applicant in writing or make notice electronically               

1   available within 30 days after receipt of the incomplete                    

2   application, describing the deficiency and requesting additional            

3   information.  The 6-month period is tolled upon notification by             

4   the department of a deficiency until the date the requested                 

5   information is received by the department.  The determination of            

6   the completeness of an application is not an approval of the                

7   application for the license and does not confer eligibility on an           

8   applicant determined otherwise ineligible for issuance of a                 

9   license.                                                                    

10      (4) If the department fails to issue or deny a license or                   

11  registration within the time required by this section, the                  

12  department shall return the license fee and shall reduce the                

13  license fee for the applicant's next renewal application, if any,           

14  by 15%.  Failure to issue or deny a license within the time                 

15  period required under this section does not allow the department            

16  to otherwise delay the processing of the application.  A                    

17  completed application shall be placed in sequence with other                

18  completed applications received at that same time.  The                     

19  department shall not discriminate against an applicant in the               

20  processing of the application based on the fact that the                    

21  application fee was refunded or discounted under this                       

22  subsection.                                                                 

23      (5) Beginning October 1, 2005, the director of the department               

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

25  committees and appropriations subcommittees of the senate and               

26  house of representatives concerned with issues relating to mental           

27  health.  The director shall include all of the following                    

1   information in the report concerning the preceding fiscal year:             

2   (a) The number of initial applications the department                       

3   received and completed within the 6-month time period described             

4   in subsection (3).                                                          

5       (b) The number of applications rejected.                                    

6       (c) The number of applicants not issued a license within the                

7   6-month time period and the amount of money returned to licensees           

8   under subsection (4).                                                       

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

10  application complete on its face and submitted with any                     

11  applicable licensing fees as well as any other information,                 

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

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

14  private entity but not from another department or agency of this            

15  state.