THE FULL TEXT OF THIS BILL IS NOT AVAILABLE ELECTRONICALLY.  A PRINTED COPY IS AVAILABLE FROM THE LEGISLATIVE SERVICE BURUEAU DOCUMENT ROOM.
HOUSE BILL No. 4306
February 12, 1997, Introduced by Reps. Johnson, Bankes, Gilmer, Godchaux, Jansen and Bobier and referred to the Committee on Appropriations. EXECUTIVE BUDGET BILL A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical services for the fiscal years ending September 30, 1997 and September 30, 1998; to provide for the expenditure of such appropriations; to create funds; to provide for reports; to prescribe the powers and duties of certain local and state agencies and departments; and to provide for disposition of fees and other income received by the various state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 101. There is appropriated for the department of community health for the fiscal year ending September 30, 1998, from the following funds: DEPARTMENT OF COMMUNITY HEALTH Full-time equated classified positions . . . . . .6,893.5 Full-time equated unclassified positions . . . . . . .6.0 Average population . . . . . . . . . . . . . . . .1,720.0 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 7,000,185,500 Total interdepartmental grants and intradepartmental transfers. . . . . . . . . . . . . . 78,927,900 ADJUSTED GROSS APPROPRIATION . . . . . . . . . . . . . . . . $ 6,921,257,600 Federal revenues: Total federal revenues . . . . . . . . . . . . . . . . . 3,298,992,000 Special revenue funds: Total local revenues . . . . . . . . . . . . . . . . . . 860,974,200 Total private revenues . . . . . . . . . . . . . . . . . 41,279,800 Total local and private revenues . . . . . . . . . . . . 902,254,000 Total other state restricted revenues. . . . . . . 317,575,000 State general fund/general purpose . . . . . . . . . . . $ 2,402,436,600 EXECUTIVE PROGRAM Full-time equated unclassified positions . . . . . . .6.0 Full-time equated classified positions . . . . . . .230.0 Director and other unclassified-6.0 FTE positions . . . . . . . . . . . . . . . . . . . . . . $ 449,100 Departmental administration and management- 230.0 FTE positions. . . . . . . . . . . . . . . . . . 23,533,600 Revenue recapture. . . . . . . . . . . . . . . . . . . . 750,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 24,732,700 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 755,400 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 510,000 State general fund/general purpose . . . . . . . . . . . $ 23,467,300 EARLY RETIREMENT Early retirement . . . . . . . . . . . . . . . . . . . . $ (3,486,900) GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ (3,486,900) Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . (1,569,700) State general fund/general purpose . . . . . . . . . . . $ (1,917,200) FEDERAL AND PRIVATE FUNDED PROJECTS Full-time equated classified positions . . . . . . . 10.0 Developmental disabilities council and projects-10.0 FTE positions. . . . . . . . . . . . . . $ 2,254,700 Central fund for acquiring additional federal and private funds. . . . . . . . . . . . . . . 2,500,000 Gifts and bequests for patient living and treatment environment. . . . . . . . . . . . . . . 2,000,000 IDEA-federal special education . . . . . . . . . . . . . 55,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 6,809,700 Appropriated from: Federal revenues: Federal revenues:. . . . . . . . . . . . . . . . . . . . 4,609,700 Special revenue funds: Private. . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 State general fund/general purpose . . . . . . . . . . . $ 0 FAMILY AND CONSUMER SUPPORT SERVICES Full-time equated classified positions . . . . . . . .4.0 Homelessness formula grant program-2.0 FTE positions. . . . . . . . . . . . . . . . . . . . . . . $ 1,091,800 Family support subsidy . . . . . . . . . . . . . . . . . 13,401,200 Dental program for persons with developmental disabilities . . . . . . . . . . . . . . 151,000 Pilot projects in prevention for adults and children-2.0 FTE positions. . . . . . . . . 1,515,800 Consumer involvement program . . . . . . . . . . . . . . 166,600 Foster grandparent and senior companion program. . . . . . . . . . . . . . . . . . . . . . . . 1,972,400 Protection and advocacy services support . . . . . . . . 818,300 Mental health initiatives for older persons. . . . . . . 1,165,800 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 20,282,900 Appropriated from: Interdepartmental grant revenues: Interdepartmental grant from the family independence agency. . . . . . . . . . . . . . . . . . 7,007,500 Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 383,000 State general fund/general purpose . . . . . . . . . . . $ 12,892,400 COMMUNITY MENTAL HEALTH SERVICES PROGRAMS Full-time equated classified positions . . . . . . . 13.0 Community mental health programs . . . . . . . . . . . . $ 1,284,171,100 Respite services . . . . . . . . . . . . . . . . . . . . 2,568,600 Omnibus reconciliation act implementation-11.0 FTE positions . . . . . . . . . . . . . . . . . . . . 10,431,600 Federal mental health block grant-2.0 FTE positions 10,772,000 GROSS APPROPRIATION $ . . . . . . . . . . . . 1,307,943,300 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 353,141,600 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 4,132,400 State general fund/general purpose . . . . . . . . . . . $ 950,669,300 INSTITUTIONAL SERVICES Full-time equated classified positions . . . . . . . .5.0 Workers' compensation program-1.0 FTE position $ 13,577,400 Therapeutic work training program. . . . . . . . . . . . 345,600 Purchase of psychiatric residency training . . . . . . . 3,635,100 Purchase of medical services for residents of hospitals and centers . . . . . . . . . . 2,874,000 Maintenance of property being leased or rented . . . . . . . . . . . . . . . . . . . . . . . . 95,000 Equipment. . . . . . . . . . . . . . . . . . . . . . . . 300,000 Special maintenance. . . . . . . . . . . . . . . . . . . 659,000 Closed site, transition, and related costs-4.0 FTE positions. . . . . . . . . . . . . . . . 1,000,800 Severance pay. . . . . . . . . . . . . . . . . . . . . . 577,900 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 23,064,800 Appropriated from: Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 645,800 State general fund/general purpose . . . . . . . . . . . $ 22,419,000 STATE PSYCHIATRIC HOSPITALS Average population . . . . . . . . . . . . . . . .1,050.0 Full-time equated classified positions. . . . . . . . . . . 2,575.0 Caro regional mental health center-psychiatric services unit-724.0 FTE positions. . . . . . . . . . . $ 48,071,900 Average population . . . . . . . . . . . . . . . . .267.0 Kalamazoo psychiatric hospital-428.0 FTE positions. . . . . . . . . . . . . . . . . . . . . . . 27,662,000 Average population . . . . . . . . . . . . . . . . .163.0 Northville psychiatric hospital-1,046.0 FTE positions . . . . . . . . . . . . . . . . . . . . . . . 71,589,100 Average population . . . . . . . . . . . . . . . . .444.0 Walter P. Reuther psychiatric hospital-377.0 FTE positions. . . . . . . . . . . . . . . . . . . . . . . 25,433,300 Average population . . . . . . . . . . . . . . . . .176.0 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 172,756,300 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 4,547,900 Special revenue funds: Local revenues . . . . . . . . . . . . . . . . . . . . . 10,888,600 CMHSP-purchase of state services contracts . . . . . . . 143,946,600 State restricted revenues. . . . . . . . . . . . . . . . 13,373,200 State general fund/general purpose . . . . . . . . . . . $ 0 STATE PSYCHIATRIC HOSPITALS FOR CHILDREN AND ADOLESCENTS Average population . . . . . . . . . . . . . . . . .118.0 Full-time equated classified positions . . . . . . . .332.0 Hawthorn center-332.0 FTE positions. . . . . . . . . . . 21,363,400 Average population . . . . . . . . . . . . . . . . .118.0 GROSS APPROPRIATION . . . . . . . . . . . . . . . . . . . . . . . $ 21,363,400 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 4,340,400 Special revenue funds: CMHSP - Purchase of state services contracts . . . . . . 15,031,500 Local revenues . . . . . . . . . . . . . . . . . . . . . 1,537,500 State restricted revenues. . . . . . . . . . . . . . . . 454,000 State general fund/general purpose . . . . . . . . . . . $ 0 STATE CENTERS AND RESIDENTIAL CARE FOR PERSONS WITH DEVELOPMENTAL DISABILITIES Average population . . . . . . . . . . . . . . . . .342.0 Full-time equated classified positions . . . . . . .891.0 Community residential and support services for persons with developmental disabilities-59.0 FTE positions. . . . . . . . . . . . 68,250,400 Mount Pleasant center-571.0 FTE positions. . . . . . . . 34,695,700 Average population . . . . . . . . . . . . . . . . .242.0 Southgate center-261.0 FTE positions. . . . . . . . . . 16,092,000 Average population . . . . . . . . . . . . . . . . .100.0 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 119,038,100 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 47,151,900 Special revenue funds: CMHSP-Purchase of state services contracts . . . . . . . 64,888,100 Local revenues . . . . . . . . . . . . . . . . . . . . . 3,895,900 State restricted revenues. . . . . . . . . . . . . . . . 3,102,200 State general fund/general purpose . . . . . . . . . . . $ 0 FORENSIC AND PRISON MENTAL HEALTH SERVICES Average population . . . . . . . . . . . . . . . . .210.0 Full-time equated classified positions . . . . . .1,475.0 Center for forensic psychiatry-479.0 FTE positions. . . . . . . . . . . . . . . . . . . . . . . $ 31,885,800 Average population . . . . . . . . . . . . . . . . .210.0 Center for forensic psychiatry outpatient evaluation-40.0 FTE positions. . . . . . . . . . . . . 3,087,000 Forensic mental health services provided to the department of corrections-956.0 FTE positions 67,493,800 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 102,466,600 Appropriated from: Interdepartmental grant revenues: Interdepartmental grant from the department of corrections. . . . . . . . . . . . . . . . . . . . . . 67,493,800 Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 15,800 Special revenue funds: Local revenues . . . . . . . . . . . . . . . . . . . . . 1,570,300 State restricted revenues. . . . . . . . . . . . . . . . 226,900 State general fund/general purpose . . . . . . . . . . . $ 33,159,800 EXECUTIVE SERVICES Full-time equated positions. . . . . . . . . . . . .241.0 Executive administration-69.0 FTE positions. . . . . . . $ 4,598,900 Contractual services, supplies, and materials 268,000 Building occupancy charges . . . . . . . . . . . . . . . 2,927,700 Equipment. . . . . . . . . . . . . . . . . . . . . . . . 800,100 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . 253,000 Workers' compensation. . . . . . . . . . . . . . . . . . 302,500 Health planning 14.8 FTE positions . . . . . . . . . . . 2,861,600 Management information systems 56.4 FTE positions. . . . . . . . . . . . . . . . . . . . . . . 6,281,800 Maternal and infant health data and evaluation 6.5 FTE positions. . . . . . . . . . . . . . . . . . . . . 538,300 Minority health grants and contracts . . . . . . . . . . 650,000 Office of general services 18.0 FTE positions. . . . . . 1,056,200 Office of minority health 3.0 FTE positions. . . . . . . 271,800 Vital records and health statistics 73.3 FTE positions. . . . . . . . . . . . . . . . . . . . . . . 5,760,500 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 26,570,400 Appropriated from: Interdepartmental grant revenues: Interdepartmental grant from the family independence agency. . . . . . . . . . . . . . . . . . 132,500 Intradepartmental transfer - automated data processing charges . . . . . . . . . . . . . . . . . . 3,510,400 Federal revenues: Federal revenues:. . . . . . . . . . . . . . . . . . . . 3,647,800 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 3,892,100 State general fund/general purpose . . . . . . . . . . . $ 15,387,600 INFECTIOUS DISEASE CONTROL ADMINISTRATION Full-time equated positions. . . . . . . . . . . . . .4.0 Infectious disease control administration 4.0 FTE positions. . . . . . . . . . . . . . . . . . . . . $ 333,900 Contractual services, supplies, and materials. . . . . . 22,100 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 356,000 Appropriated from: State general fund/general purpose . . . . . . . . . . . $ 356,000 INFECTIOUS DISEASE CONTROL Full-time equated positions. . . . . . . . . . . . . 86.8 AIDS counseling and testing. . . . . . . . . . . . . . . $ 4,237,600 AIDS education and outreach. . . . . . . . . . . . . . . 3,013,800 AIDS/HIV risk reduction. . . . . . . . . . . . . . . . . 50,000 AIDS program administration 13.0 FTE positions 1,139,600 AIDS referral and care network grants. . . . . . . . . . 6,694,700 AIDS surveillance and prevention program 16.0 FTE positions. . . . . . . . . . . . . . . . . . . . . 2,845,500 Disease surveillance 4.0 FTE positions . . . . . . . . . 366,400 Division administration 6.0 FTE positions. . . . . . . . 491,600 Immunization local agreements. . . . . . . . . . . . . . 12,079,700 Immunization program management and field support 11.0 FTE positions . . . . . . . . . . . . . . 2,047,300 Lyme disease grant 0.3 FTE positions . . . . . . . . . . 75,000 National vaccine compensation fund . . . . . . . . . . . 9,424,200 Sexually transmitted disease control local agreements . . . . . . . . . . . . . . . . . . . . . . 2,205,700 Sexually transmitted disease control management and field support 32.0 FTE positions . . . . . . . . . 2,690,700 Recalcitrant AIDS and tuberculosis aid . . . . . . . . . 162,000 Tuberculosis control program 4.5 FTE positions 860,900 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 48,384,700 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 31,036,800 Special revenue funds: Local funds. . . . . . . . . . . . . . . . . . . . . . . 242,700 Private funds. . . . . . . . . . . . . . . . . . . . . . 175,000 State restricted revenues. . . . . . . . . . . . . . . . 12,302,000 State general fund/general purpose . . . . . . . . . . . $ 4,628,200 LABORATORY SERVICES Full-time equated positions. . . . . . . . . . . . .106.6 Laboratory services administration-75.8 FTE positions. . . . . . . . . . . . . . . . . . . . . . . $ 4,387,000 Contractual services, supplies, and materials. . . . . . 1,349,000 EPSDT blood lead screening-6.0 FTE positions . . . . . . 665,100 Newborn genetic screening 24.8 FTE positions . . . . . . 1,765,700 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 8,166,800 Appropriated from: Interdepartmental grant revenues: Interdepartmental grant from corrections . . . . . . . . 232,600 Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 506,200 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 1,847,200 State general fund/general purpose . . . . . . . . . . . $ 5,580,800 ENVIRONMENTAL HEALTH ADMINISTRATION AND SUPPORT SERVICES Total full-time equated positions. . . . . . . . . . 34.2 Health risk assessment-34.2 FTE positions. . . . . . . . 4,317,800 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 4,317,800 Appropriated from: Interdepartmental grant revenues: Interdepartmental grant from the department of environmental quality . . . . . . . . . . . . . . . 458,800 Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 2,283,100 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 55,100 State general fund/general purpose . . . . . . . . . . . $ 1,520,800 HEALTH SYSTEMS ADMINISTRATION Full-time equated positions. . . . . . . . . . . . . 29.9 Health systems administration-20.7 FTE positions $ 1,391,300 Contractual services, supplies, and materials. . . . . . 52,100 Administrative hearings 2.5 FTE positions. . . . . . . . 166,900 Health facilities management information system . . . . . . . . . . . . . . . . . . . . . . . . 39,800 Local health services 4.9 FTE positions. . . . . . . . . 141,300 Primary care services grant 1.8 FTE positions. . . . . . 218,400 Training and evaluation. . . . . . . . . . . . . . . . . 251,500 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 2,261,300 Appropriated from: Interdepartmental grant revenues: Interdepartmental grant from treasury, Michigan state hospital finance authority . . . . . . . . . . . . . . 92,300 Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 287,100 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 1,006,600 State general fund/general purpose . . . . . . . . . . . $ 875,300 HEALTH SYSTEMS LOCAL GRANTS Implementation of Act 133, P.A. of 1993. . . . . . . . . 100,000 Indian health care . . . . . . . . . . . . . . . . . . . 309,500 Michigan essential health care provider program 729,100 Primary care services. . . . . . . . . . . . . . . . . . 1,922,200 Refugee health program . . . . . . . . . . . . . . . . . 142,300 Rural health grant . . . . . . . . . . . . . . . . . . . 168,800 State/local cost sharing . . . . . . . . . . . . . . . . 36,412,600 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 39,784,500 Appropriated from: Federal revenues: Federal funds. . . . . . . . . . . . . . . . . . . . . . 2,392,700 Special revenue funds: Private funds. . . . . . . . . . . . . . . . . . . . . . 40,000 State general fund/general purpose . . . . . . . . . . . $ 37,351,800 CENTER FOR HEALTH PROMOTION Full-time equated positions. . . . . . . . . . . . . 63.7 AIDS and risk reduction clearinghouse and media campaign . . . . . . . . . . . . . . . . . . . . $ 1,700,000 Alzheimer's information network. . . . . . . . . . . . . 150,000 Cancer prevention and control program 19.0 FTE positions. . . . . . . . . . . . . . . . . . . . . 12,672,700 Center administration 4.0 FTE positions. . . . . . . . . 321,500 Chronic disease prevention 2.5 FTE positions . . . . . . 1,609,800 Diabetes local agreements. . . . . . . . . . . . . . . . 1,434,900 Employee wellness program grants (include $50.00 per diem and expenses for the risk reduction and AIDS policy commission). . . . . . . . . 3,950,000 Health education, promotion, and research programs 23.0 FTE positions. . . . . . . . . . . . . . 2,005,300 Injury control intervention project 1.0 FTE positions. . . . . . . . . . . . . . . . . . . . . . . 324,800 Physical fitness, nutrition, and health. . . . . . . . . 1,500,000 Public health traffic safety coordination 1.0 FTE position . . . . . . . . . . . . . . . . . . . . . 152,600 School health curriculum . . . . . . . . . . . . . . . . 2,000,000 School health education project. . . . . . . . . . . . . 80,000 Smoking prevention program 6.2 FTE positions . . . . . . 6,294,700 Survey and analysis-5.0 FTE positions. . . . . . . . . . 468,000 Violence prevention-2.0 FTE positions. . . . . . . . . . 2,346,300 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 37,010,600 Appropriated from: Federal revenues: Federal funds. . . . . . . . . . . . . . . . . . . . . . 11,982,200 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 21,166,100 State general fund/general purpose . . . . . . . . . . . $ 3,862,300 BUREAU OF CHILD AND FAMILY SERVICES Full-time equated positions. . . . . . . . . . . . .103.8 Child and family services administration 92.8 FTE positions. . . . . . . . . . . . . . . . . . . . . $ 6,076,700 Contractual services, supplies, and materials. . . . . . 1,572,500 Automated data processing. . . . . . . . . . . . . . . . 3,730,000 Lead abatement program-3.0 FTE positions . . . . . . . . 4,900,000 Special projects 8.0 FTE positions . . . . . . . . . . . 3,128,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 19,407,200 Appropriated from: Federal revenues: Federal revenue. . . . . . . . . . . . . . . . . . . . . 15,773,700 Special revenue funds: Private funds. . . . . . . . . . . . . . . . . . . . . . 434,000 State general fund/general purpose . . . . . . . . . . . $ 3,199,500 CHILD AND FAMILY SERVICES GRANTS Adolescent health care services. . . . . . . . . . . . . $ 2,892,300 Dental programs. . . . . . . . . . . . . . . . . . . . . 260,400 Early and periodic screening, diagnosis, and treatment outreach . . . . . . . . . . . . . . . . . . 6,200,000 Family planning local agreements . . . . . . . . . . . . 7,392,600 Lead paint program . . . . . . . . . . . . . . . . . . . 491,800 Local MCH services . . . . . . . . . . . . . . . . . . . 1,271,200 Maternity, infant, and children's health care local agreements. . . . . . . . . . . . . . . . . 7,083,000 Medical services cost reimbursement to local health departments . . . . . . . . . . . . . . . . . . 1,800,000 Migrant health care. . . . . . . . . . . . . . . . . . . 166,100 Pregnancy prevention program . . . . . . . . . . . . . . 7,596,100 Prenatal care community demonstration projects 58,200 Prenatal care outreach and service delivery support . . . . . . . . . . . . . . . . . . . 7,929,700 Sudden infant death syndrome program . . . . . . . . . . 121,300 Women, infants, and children program local agreements and food costs. . . . . . . . . . . . . . . 141,359,200 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 184,621,900 Appropriated from: Federal revenues: Federal revenue. . . . . . . . . . . . . . . . . . . . . 130,539,900 Special revenue funds: Private funds. . . . . . . . . . . . . . . . . . . . . . 37,200,000 State restricted revenues. . . . . . . . . . . . . . . .` 5,400,000 State general fund/general purpose . . . . . . . . . . . $ 11,482,000 CHILDREN'S SPECIAL HEALTH CARE SERVICES Total full-time equated positions. . . . . . . . . . 86.5 Program administration-84.5 FTE positions. . . . . . . . $ 5,064,600 Contractual services, supplies, and materials. . . . . . 883,100 Amputee program. . . . . . . . . . . . . . . . . . . . . 184,600 Bequests for care and services 2.0 FTE positions 1,004,600 Case management services . . . . . . . . . . . . . . . . 3,923,500 Conveyor contract. . . . . . . . . . . . . . . . . . . . 559,100 Medical care and treatment . . . . . . . . . . . . . . . 116,070,100 Pediatric AIDS prevention and control. . . . . . . . . . 582,200 Sickle cell and other genetic services . . . . . . . . . 1,729,400 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 130,001,200 Appropriated from: Federal revenues: Federal revenue. . . . . . . . . . . . . . . . . . . . . 61,669,100 Special revenue funds: Private-bequests . . . . . . . . . . . . . . . . . . . . 650,000 State restricted revenues. . . . . . . . . . . . . . . . 5,019,100 State general fund/general purpose . . . . . . . . . . . $ 62,663,000 SUBSTANCE ABUSE PROGRAM ADMINISTRATION Full-time equated positions. . . . . . . . . . . . . 45.0 Substance abuse program administration 32.5 FTE positions. . . . . . . . . . . . . . . . . . . . . $ 1,886,000 Contractual services, supplies, and materials. . . . . . 120,300 Federal projects 12.5 FTE positions. . . . . . . . . . . 1,384,300 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 3,390,600 Appropriated from: Federal revenues: Federal revenue. . . . . . . . . . . . . . . . . . . . . 1,261,400 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 198,200 State general fund/general purpose . . . . . . . . . . . $ 1,931,000 SUBSTANCE ABUSE GRANTS AND CONTRACTS Chemically-dependent pregnant women and children program . . . . . . . . . . . . . . . . . . . $ 2,100,000 Community substance abuse prevention, education, and treatment grants. . . . . . . . . . . . 72,340,400 Federal and other special projects . . . . . . . . . . . 7,427,200 Highway safety projects. . . . . . . . . . . . . . . . . 337,200 Program enhancement, evaluation, and data services . . . . . . . . . . . . . . . . . . . . . . . 1,137,600 State disability assistance program substance abuse services . . . . . . . . . . . . . . . 6,600,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 89,942,400 Appropriated from: Federal revenues: Federal revenue . . . . . . . . . . . . . . . . . . . . 63,869,100 Special revenue funds: State restricted revenues. . . . . . . . . . . . . . . . 1,360,000 State general fund/general purpose . . . . . . . . . . . $ 24,713,300 OFFICE OF DRUG CONTROL POLICY Full-time equated positions. . . . . . . . . . . . . 13.0 Drug control policy 13.0 FTE positions . . . . . . . . . $ 1,028,000 Anti-drug abuse grants . . . . . . . . . . . . . . . . . 30,931,100 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 31,959,100 Appropriated from: Federal revenues: Federal revenue. . . . . . . . . . . . . . . . . . . . . 31,785,400 State general fund/general purpose . . . . . . . . . . . $ 173,700 MEDICAL SERVICES ADMINISTRATION Full-time equated classified positions . . . . . . .544.0 Facility inspection contract-state police. . . . . . . . 132,800 Medical services administration-544.0 FTE positions. . . . . . . . . . . . . . . . . . . . . . . 56,291,400 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 56,424,200 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 34,044,800 Special revenue funds: Private. . . . . . . . . . . . . . . . . . . . . . . . . 80,800 State general fund/general purpose . . . . . . . . . . . $ 22,298,600 MEDICAL SERVICES Hospital services and therapy. . . . . . . . . . . . . . $ 664,087,700 Hospital disproportionate share payments . . . . . . . . 45,000,000 Physician services . . . . . . . . . . . . . . . . . . . 146,352,500 Medicare premium payments. . . . . . . . . . . . . . . . 102,465,400 Pharmaceutical services. . . . . . . . . . . . . . . . . 200,422,200 Home health services . . . . . . . . . . . . . . . . . . 32,973,600 Transportation . . . . . . . . . . . . . . . . . . . . . 4,185,500 Auxiliary medical services . . . . . . . . . . . . . . . 46,984,700 Nursing home services. . . . . . . . . . . . . . . . . . 756,957,700 Chronic care units and county medical care facilities. . . . . . . . . . . . . . . . . . . . 163,070,400 Substance abuse services . . . . . . . . . . . . . . . . 16,339,000 Health plan services . . . . . . . . . . . . . . . . . . 1,265,517,200 Early periodic screening, diagnosis, and treatment outreach . . . . . . . . . . . . . . . . . . 2,685,300 Caring program for children. . . . . . . . . . . . . . . 1,500,000 Personal care services-adult foster care . . . . . . . . 24,962,000 Personal care services-in home services. . . . . . 5,500,000 Maternal and child health. . . . . . . . . . . . . . . . 9,234,500 Indigent medical care program. . . . . . . . . . . . . . 22,686,000 Subtotal basic medical services program. . . . . . . . . 3,510,923,700 Outpatient hospital adjustor . . . . . . . . . . . . . . 44,012,800 School based services. . . . . . . . . . . . . . . . . . 127,341,500 Special adjustor payments. . . . . . . . . . . . . . . . 840,337,900 Subtotal special medical services payments . . . . . . . 1,011,692,200 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . .$ 4,522,615,900 Appropriated from: Federal revenues: Federal revenues . . . . . . . . . . . . . . . . . . . . 2,494,536,700 Special revenue funds: Local. . . . . . . . . . . . . . . . . . . . . . . . . . 618,973,000 Private. . . . . . . . . . . . . . . . . . . . . . . . . 500,000 State restricted . . . . . . . . . . . . . . . . . . . . 242,884,100 State general fund/general purpose . . . . . . . . . . . $ 1,165,722,100 Sec. 102. There is appropriated for the department of community health for the fiscal year ending September 30, 1997, from the following funds: For Fiscal Year Ending September 30, 1997 MEDICAL SERVICES Hospital services and therapy. . . . . . . . . . . . . . $ (53,149,500) Physician services . . . . . . . . . . . . . . . . . . . (2,976,400) Pharmaceutical services. . . . . . . . . . . . . . . . . (3,401,600) Home health services . . . . . . . . . . . . . . . . . . (1,265,700) Auxiliary medical services . . . . . . . . . . . . . . . (2,083,500) School based services. . . . . . . . . . . . . . . . . . 72,661,300 Special adjustor payments. . . . . . . . . . . . . . . . 93,754,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . . $ 103,538,600 Appropriated from: Federal revenues: Federal. . . . . . . . . . . . . . . . . . . . . . . . . 105,770,100 Special revenue funds: Local. . . . . . . . . . . . . . . . . . . . . . . . . . 74,387,100 State restricted . . . . . . . . . . . . . . . . . . . . 17,115,900 State general fund/general purpose . . . . . . . . . . . (93,734,500) GENERAL SECTIONS Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 1997-98 is estimated at $2,720,011,600.00 in this bill and state spending from state sources paid to local units of government for fiscal year 1997-98 is estimated at $836,314,800.00. The itemized statement below identifies appropriations from which spending to units of local government will occur: DEPARTMENT OF COMMUNITY HEALTH FAMILY AND CONSUMER SUPPORT SERVICES Homelessness formula grant program-state match 708,800 Family support subsidy . . . . . . . . . . . . . . . . . . 6,393,700 Pilot projects in prevention for adults and children . . . . . . . . . . . . . . . . . . . . . . . 1,513,800 Foster grandparent and senior companion program. . . . . . . . . . . . . . . . . . . 1,972,400 COMMUNITY MENTAL HEALTH PROGRAMS Community mental health programs . . . . . . . . . . . . . 634,838,700 Respite services . . . . . . . . . . . . . . . . . . . . . 2,568,600 OBRA implementation. . . . . . . . . . . . . . . . . . . . 1,673,800 EXECUTIVE SERVICES Health planning. . . . . . . . . . . . . . . . . . . . . . 1,518,800 INFECTIOUS DISEASE CONTROL AIDS counseling and testing. . . . . . . . . . . . . . . . 687,800 AIDS referral and care network grants. . . . . . . . . . . 779,000 Sexually transmitted disease control local agreements . . . . . . . . . . . . . . . . . . . . . . 452,900 HEALTH SYSTEMS LOCAL GRANTS Refugee health grant . . . . . . . . . . . . . . . . . . . 29,600 State/local cost sharing . . . . . . . . . . . . . . . . . 36,412,600 CENTER FOR HEALTH PROMOTION Cancer prevention and control program. . . . . . . . . . . 387,000 Diabetes local agreements. . . . . . . . . . . . . . . . . 500,000 Employee wellness program grants . . . . . . . . . . . . . 1,245,100 School health curriculum . . . . . . . . . . . . . . . . . 2,000,000 Smoking prevention program . . . . . . . . . . . . . . . . 2,000,000 CHILD AND FAMILY SERVICES GRANTS Adolescent health care services. . . . . . . . . . . . . . 1,358,000 Family planning local agreements . . . . . . . . . . . . . 1,139,800 Maternity, infant, and children's health care local agreements . . . . . . . . . . . . . . 246,100 Pregnancy prevention program . . . . . . . . . . . . . . . 2,311,800 Prenatal care outreach and service delivery support . . . . . . . . . . . . . . . . . . . 3,190,000 CHILDREN'S SPECIAL HEALTH CARE SERVICES Case management services . . . . . . . . . . . . . . . . . 1,433,200 SUBSTANCE ABUSE GRANTS AND CONTRACTS Community substance abuse prevention, education, and treatment grants. . . . . . . . . . . . 17,519,700 MEDICAL SERVICES Indigent medical program . . . . . . . . . . . . . . . . . 1,383,800 Hospital disproportionate share payments . . . . . . . . . 18,000,000 Hospital services and therapy. . . . . . . . . . . . . . . 20,890,600 Physician services . . . . . . . . . . . . . . . . . . . . 6,311,500 Pharmaceutical services. . . . . . . . . . . . . . . . . . 8,643,300 Home health services . . . . . . . . . . . . . . . . . . . 1,422,000 Transportation . . . . . . . . . . . . . . . . . . . . . . 180,500 Auxiliary medical services . . . . . . . . . . . . . . . . 2,026,200 Health plan services . . . . . . . . . . . . . . . . . . . 54,575,700 Total. . . . . . . . . . . . . . . . . . . . . . . . . . .$ 836,314,800 (2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the department of management and budget. Sec. 202. The expenditures and funding sources authorized under this bill are subject to the management and budget act, Act No. 431 of the Public Acts of 1984, being sections 18.1101 to 18.1594 of the Michigan Compiled Laws. Sec. 203. (1) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $100,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393 (2) of the management and budget act, Act No. 431 of the Public Acts of 1984, being section 18.1393 of the Michigan Compiled Laws. (2) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $10,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2)of the management and budget act, Act No. 431 of the Public Acts of 1984, being section 18.1393 of the Michigan Compiled Laws. (3) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $10,000,000.00 for local funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, Act No. 431 of the Public Acts of 1984, being section 18.1393 of the Michigan Compiled Laws. (4) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $10,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the Management and Budget Act, being section 18.1393 of the Michigan Compiled Laws. Sec. 204. (1) Beginning October 1, 1997, there is a hiring freeze imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees or prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department or to positions that are 80% or more federal or restricted funds. (2) The director of the department of management and budget shall grant exceptions to this hiring freeze when the director believes that the hiring freeze will result in the state department or agency being unable to deliver basic services. The director of the department of management and budget shall report by the fifteenth of each month to the chairpersons of the senate and house appropriations committees the number of exclusions to the hiring freeze approved during the previous month and the justification for the exclusion. Sec. 205. The department of civil service shall bill departments and/or agencies at the end of the first fiscal quarter for the 1% 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. Section 206. The amount appropriated in section 101 for early retirement savings includes $4,889,600.00 for retirement costs and $8,376,518.00 of savings from salaries and fringe benefits resulting from the state's early retirement program. By October 1, 1997, the department of community health shall request cost/price variance transfers as defined in section 393(1) of the Management and Budget Act, Act. No. 431 of the Public Acts of 1984, being section 18.1393(1) of the Michigan Compiled Laws, to apply the retirement costs and salary and fringe benefit savings to the appropriated line items which are affected by the early retirement of state employees. These transfers shall include changes of funding sources as appropriate to support anticipated retirement costs and salary and fringe benefit savings. Section 207. (1) The department of community health must submit to the department of management and budget periodic reports on the efforts to change the department's computer software and hardware as necessary to perform properly in the year 2000 and beyond. These reports must identify actual progress in comparison to the department's approved work plan for this effort. (2) The department of community health may present progress billings to the department of management and budget for the costs incurred in changing computer software and hardware as necessary to perform properly in the year 2000 and beyond. At the time progress billings are presented for reimbursement, the department will identify and forward as appropriate the funding sources which should support the work performed. Sec. 208. As used in this bill: (a) "AIDS" means acquired immunodeficiency syndrome. (b) "CMH" means community mental health. (c) "CMHSP" means a community mental health service program. (d) "Department" or "MDCH" means the Michigan department of community health. (e) "DSH" means disproportionate share hospital. (f) "EPSDT" means early and periodic screening, diagnosis, and treatment. (g) "FTE" means full-time equated position. (h) "GME" means graduate medical education. (i) "IDEA" means individuals with disabilities education act. (j) "HIV" means human immunodeficiency virus. (k) "IDG" means interdepartmental grant. (l) "IDT" means intradepartmental transfer. (m) "MCH" means maternal and child health. (n) "MDEQ" means Michigan department of environmental quality. (o) "MDOC" means the Michigan department of corrections. (p) "Title IV" means title IV of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 671. (q) "Title X" means title X of the public health services act, 300 U.S.C. 1001. (r) "Title XVIII" means title XVIII of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1395 to 1395b, 1395b-2, 1395c to 1395i, 1395i-2 to 1395i-4, 1395j to 1395t, 1395u to 1395w-2, 1395w-4 to 1395zz, and 1395bbb to 1395ccc. (s) "Title XIX" means title XIX of the Social Security Act, chapter 531, 49 Stat. 620, 42 U.S.C.1396 to 1396d, 1396f to 1396G, and 1396i to 1396s. (t) "Title XX" means title XX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1397 to 1397f. Sec. 209. Funds for which the state is acting as the custodian or agent are not subject to annual appropriation. Sec. 210. (1) From the amounts appropriated in section 101, no greater than the following amounts are supported with federal maternal and child health, preventive health and health services, substance abuse block grant, healthy Michigan fund, and Michigan health initiative funds: (a) Maternal and child health block grant. . . . . . . . . . . . . . . . . . . . . . . . . $ 20,600,000 (b) Preventive health and health services block grant . . . . . . . . . . . . . . . . . . . . $ 6,300,000 (c) Substance abuse block grant. . . . . . . . . . . . . . $ 59,700,000 (d) Healthy Michigan funds . . . . . . . . . . . . . . . . $ 33,300,000 (e) Michigan health initiative . . . . . . . . . . . . . . $ 9,600,000 (2) On or before February 1, 1998, the department shall report to the house and senate appropriations subcommittees on public health, the house and senate fiscal agencies, and the department of management and budget on the detailed name and amounts of federal, restricted, private, and local sources of revenue that support the appropriations in each of the appropriations units in section 101 of Act Nos. 150, 151, and 156 of the Public Acts of 1995. (3) The department shall report on or before February 1, 1998, to the same parties in subsection (2) on the amounts and detailed sources of federal, restricted, private, and local revenue proposed to support the total federal funds appropriated in each of the appropriation units in section 101 of the fiscal year 1997-98 executive budget proposal. (4) The department shall provide to the same parties in subsection (2) all revenue source detail for consolidated revenue line item detail upon request to the department. Sec. 211. Except as provided in section 1116(11) of Act. No. 280 of the Public Acts of 1936, as amended, being MCL 400.111b(11), relative to medical services providers the department shall not pay for a billing received from a contractor or service provider that is submitted more than 12 months after the bill for good or service is provided. Sec. 212. The state departments, agencies, and commissions receiving tobacco tax funds from section 101 shall report to the senate and house appropriations committees, the senate and house fiscal agencies, and the department of management and budget on the following: (a) Spending plan by appropriation line item including description of programs. (b) An annual report on services provided and outcomes achieved the previous fiscal year. Sec. 213. The use of state restricted tobacco tax revenue received for the purpose of tobacco prevention, education, and reduction efforts and deposited in the healthy Michigan fund shall not be used for lobbying as defined in Act No. 472 of the Public Acts of 1978, being sections 4.411 to 4.431 of the Michigan Compiled Laws. Sec. 214. On October 1, 1997, the department shall make a list available of reports to be prepared pursuant to the provisions of this act. The list shall be distributed to house and senate appropriations subcommittees on community health, house and senate fiscal agencies, house and senate central staffs, and the department of management and budget. The listed parties may request copies of reports from the list and submit the request back to the department. The department shall provide copies of the requested reports no later than the date the report is due to those persons requesting the reports. Sec. 215. (1) In addition to funds appropriated in section 101 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 section 101 shall not be limited to collections and accruals pertaining to services provided in fiscal year 1996-97, but shall also include reimbursements, refunds, adjustments, and settlements from prior years. Sec. 216. No funds appropriated in section 101 shall be expended for media activities regarding the alleged dangers of naturally occurring radon gas. Sec. 217. The source of funding for section 101 appropriation for the Arab-American and Chaldean council and ACCESS primary care services is the federal preventive health and health services block grant. EXECUTIVE OFFICE Sec. 301. Funds appropriated in section 101 from the central fund for acquiring additional federal and private funds shall not be expended until the grant money is actually approved by the grantor. Funds accepted under this section shall not be authorized if the receipt of the funds mandates a commitment for state funding at a future date. Sec. 302. (1) In funding of staff in the financial support division, reimbursement, and billing and collection sections, priority shall be given to obtaining third party payments for services. Collection from individual recipients of services and their families shall be handled in a sensitive and nonharassing manner. (2) The department shall continue a revenue recapture project to generate additional revenues from third parties related to cases which have been closed or are inactive. Revenues collected through project efforts are appropriated to the department for departmental costs and contractual fees associated with these retroactive collections and to improve ongoing departmental reimbursement management functions so that the need for retroactive collections will be reduced or eliminated. Sec. 303. Funds appropriated in section 101 for the mental health advisory council may be used for member per diems of $50.00 and other council expenditures. Funds may also be used for the expenses of the state mental health advisory council on deafness and other expenses for councils established by the mental health code, Act No. 258 of the Public Acts of 1974, being sections 330.1001 to 330.2106 of the Michigan Compiled Laws. Sec. 304. Unexpended and unencumbered amounts and accompanying expenditure authorizations up to $2,000,000.00 remaining on September 30, 1997, from pay telephone revenues and the amounts appropriated in section 101 for gifts and bequests for patient living and treatment environments shall be carried over 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. 305. The department shall provide quarterly reports concerning the department's revenue and expenditure status to the senate and house appropriations committees, the house and senate fiscal agencies, and the department of management and budget. Sec. 306. The funds appropriated in section 101 for forensic mental health services provided to the department of corrections are in accordance with the interdepartmental plan developed in cooperation with the department of corrections. The department is authorized to receive and expend funds from the department of corrections in addition to the appropriations in section 101 to fulfill the obligations outlined in the interdepartmental agreements. COMMUNITY MENTAL HEALTH SERVICES PROGRAM Sec. 401. (1) From funds appropriated in section 101, final authorizations to CMHSP shall be made upon the execution of contracts between the department and CMHSP. 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. (2) The funds appropriated in section 101 for the purchase of state service contracts are for the purchase of state hospital and center services, state administered community residential services, or for approved community-based programs that reduce utilization of state provided services. These funds shall be authorized to CMHSP based on estimates approved by the department as part of the negotiated contract. (3) Funds that are authorized to CMHSP when used to purchase state services, shall be provided to state hospitals, centers, and placement agencies based on the per diem and billing arrangements approved by the department in the negotiated contract. (4) The department may advance to each CMHSP an amount not to exceed 1/12 of its estimated total collections from medicaid and may establish a separate accounts receivable for the total of these amounts. Advances made pursuant to this subsection shall be repaid in the same fiscal year and before any advance is provided for a subsequent year. (5) Current billing and collection procedures for the net cost of state provided services shall continue as specified in chapter 3 of the mental health code, Act No. 258 of the Public Acts of 1974, being sections 330.1300 to 330.1320 of the Michigan Compiled Laws. (6) The department may access funds from the appropriation directly for patients who have no county affiliation or for whom county charges are exempted. (7) The funds appropriated in section 101 from purchase of state service contracts shall not result in increased costs to counties in excess of the local match required under section 302 and section 308 of the mental health code, Act No. 258 of the Public Acts of 1974, being sections 330.1302 and 330.1308 of the Michigan Compiled Laws. Sec. 402. The funds appropriated in this bill for community mental health service programs shall not be used to replace funds no longer available because the local government or CMHSP board reduced its base of support for state and local mental health services, as defined in chapter 2 of the mental health code, Act No. 258 of the Public Acts of 1974, being sections 330.1200 to 330.1246 of the Michigan Compiled Laws, below that of the previous year. Sec. 403. The amount appropriated in section 101 for CMHSP services is intended for funding of CMHSP in accordance with contracts between the department and the CMHSPs for the current fiscal year. The department shall establish such total accounts payable and receivable amounts as may be appropriate to represent the expected final state obligation for all such contracts. After final review of the expenditure reports required by the contracts, any amounts advanced to the board which are returned to the department and any amounts paid to the boards in accordance with the provisions of the contracts shall be considered to be adjustments to the program expenditures for the prior fiscal year. These prior year transactions shall be recorded in a separate account established for that purpose. CMHSPs prior year revenue recognized in the current fiscal year may be restricted to finance related prior year expenditures not previously recorded. Sec. 404. (1) Not later than April 10 of each 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 department of management and budget which shall include information required by this section. This report will be updated to the extent possible, based on available data, by September 30. (2) The report shall contain information for each community mental health services board and a statewide summary, each of which shall include at least the following information: (a) A demographic description of service recipients which, minimally, shall include reimbursement eligibility, client population, age, ethnicity, housing arrangements, and diagnosis. (b) Per capita expenditures by client population group. (c) Financial information which, minimally, shall include a description of funding authorized; expenditures by client group and fund source; and cost information by service category, including administration. Service category shall include all department approved services. (d) Data describing service outcomes which shall include but not be limited to an evaluation of consumer satisfaction, consumer choice, and quality of life concerns including but not limited to housing and employment. (e) Information about access to community mental health services programs which shall include but not be limited to: (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 community mental health service programs in response to the needs assessment requirements of the mental health code, including information about the number of persons in the service delivery system who have requested and are clinically appropriate for different services. (3) The report shall include a progress report on each CMHSP's status with regard to implementation of the Michigan mission based performance indicator system and state plans for further implementation, including plans for service outcomes in other domains. COMMUNITY RESIDENTIAL SERVICES Sec. 501. The funds appropriated in section 101 for community residential services programs may be used for basic care in cases where individuals are not eligible to receive social security benefits and are not otherwise capable of supporting themselves out of their own resources. Funds may be used for aftercare services or to prevent admissions to state hospitals and centers through residential and support services. Expenditures and allocations may be authorized for CMHSP and state hospitals, centers, and placement agencies. Sec. 502. The department shall not enter into new contracts with private attorneys for legal services for the purposes of gaining and maintaining occupancy to a specialized residential facility. The department may enter into a contract with the protection and advocacy service, authorized under section 931 of the mental health code, Act No. 258 of the Public Acts of 1974, being section 330.1931 of the Michigan Compiled Laws, or a similar organization to provide legal services for purposes of gaining and maintaining occupancy in a specialized residential facility which is under lease or contract with the department or a community mental health services program board to provide services to persons with mental illness or developmental disability. State funds shall not be used for legal services to represent private investors purchasing homes for these purposes. INSTITUTIONAL SERVICES, HOSPITALS, AND CENTERS Sec. 601. From funds appropriated for workers' compensation, the department may make payments in lieu of workers' compensation payments for wage/salary and related fringe benefits for employees who return to work under limited duty assignments. Employees returning to work under limited duty assignments who are funded under this section will be in addition to the facility's existing staffing authorization. Sec. 602. (1) Subject to the funds appropriated in section 101 for hospitals and centers, the department shall authorize FTEs and funds to each hospital and center on the basis of the actual utilization of each of the hospitals and centers. (2) Funds that become available as a result of reductions in the utilization of state operated hospitals and centers are intended to be retained by CMHSP to support community based services. EXECUTIVE SERVICES Sec. 701. Of the amount appropriated in section 101 from revenues from fees and collections, not more than $250,000.00 received from the sale of vital records death data shall be used for improvements in the vital records and health statistics program. The amount described in this section shall not revert to the general fund at the end of the fiscal year ending September 30, 1998. Not later than December 1, 1998 the amount of any unexpended balances and the proposed uses for those balances shall be reported to the senate and house fiscal agencies. INFECTIOUS DISEASE CONTROL Sec. 801. State funds appropriated in any other account in section 101 may be used to supplant not more than $350,000.00 in federal funds projected for immunization, if the federal funds are unavailable. The department shall inform the senate and house appropriations subcommittees on community health, the senate and house fiscal agencies, and the department of management and budget of the specific line items reduced pursuant to this section. Sec. 802. In the expenditure of funds appropriated in section 101 for AIDS programs, the department and its subcontractors shall ensure that adolescents receive priority for prevention, education, and outreach services. Sec. 803. If an employee of the department of corrections comes in contact with a prisoner and that contact involves the risk of exposure to the prisoner's blood or bodily fluids, upon the employee's request the department of corrections shall inform the employee of the results of the prisoner's HIV test if known by the department. HEALTH SYSTEMS LOCAL GRANTS Sec. 901. The funds appropriated in section 101 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, Act No. 368 of the Public Acts of 1978, being sections 333.2701 to 333.2727 of the Michigan Compiled Laws. Sec. 902. The department is directed to continue support of multi-cultural agencies which provide primary care services from the funds appropriated in section 101. Sec. 903. The amount appropriated in section 101 for implementation of Act No. 133 of the Public Acts of 1993, being sections 333.17014 to 333.17515 of the Michigan Compiled Laws, shall reimburse local health departments for costs incurred related to implementation of section 17015(15) of the public health code, Act No. 368 of the Public Acts of 1978, being section 333.17015 of the Michigan Compiled Laws. Sec. 904. The amount appropriated in section 101 for state/local cost sharing may be used for special grants to local health departments to satisfy minimum funding levels prescribed by section 2477 of the public health code, Act No. 368 of the Public Acts of 1978, being section 333.2477 of the Michigan Compiled Laws, and any other authorized supplement. The special grants shall not exceed a total of $250,000.00. If proposed changes to sections 2471 to 2498 of the public health code, Act No. 368 of the Public Acts of 1978, being sections 333.2471 to 333.2498 of the Michigan Compiled Laws, are enacted during fiscal year 1997-98, the department shall adjust funding from the amount appropriated in section 101 for state/local cost sharing to comply with the revisions in the public health code. Sec. 905. If a county receiving funding from the amount appropriated in section 101 for local public health infrastructure is part of a district health department or in an associated arrangement with other local health departments on June 1, 1992 and then ceases to be part of such an arrangement, the allocation to that county from the local public health infrastructure appropriation shall be reduced by 50% from the amount originally allocated. Sec. 906. Of the amount appropriated in section 101 for state/local cost sharing, $18,508,100.00 is an increase from fiscal year 1993-94. Distributions from the increased appropriation shall be made only in the counties that maintain local spending in fiscal year 1997-98 of at least the amount expended in fiscal year 1992-93. Sec. 907. (1) Subject to the funds appropriated in section 101 for state/local cost sharing, funds shall be allocated as follows: (a) To reimburse local health departments on a 50% basis of the net allowable costs for providing the following 9 required services: immunizations, infectious disease control, sexually transmitted disease control, hearing screening, vision services, food protection, public water supply, private groundwater supply, and on-site sewage management. (b) As grants for core services based upon an agreed modified formula. (c) As public health improvement block grants to insure that all local health departments will be held harmless. Sec. 908. Basic health services for the fiscal year beginning October 1, 1997, for the purpose of part 23 of the public health code, Act No. 368 of the Public Acts of 1978, being sections 333.2301 to 333.2321 of the Michigan Compiled Laws, are those described by the department in its proposed program statement dated October 16, 1981, and in the "prenatal postpartum care, proposed basic health service program statement" included in the department document entitled "A Study of Prenatal Care as a Basic Service," dated March 1, 1986, and for which the legislature has made funds available in amounts necessary to ensure their availability and accessibility. The services described in the statement are: immunizations, communicable disease control, venereal disease control, tuberculosis control, prevention of gonorrhea eye infection in newborns, screening newborns for phenylketonuria, screening newborns for hypothyroidism, health/medical annex of emergency preparedness plan, licensing and surveillance of agricultural labor camps, and prenatal care. CENTER FOR HEALTH PROMOTION Sec. 1001. From the state funds appropriated in section 101 for the center for health promotion, the department shall allocate funds to promote awareness, education, and early detection of breast, cervical, and prostate cancer, and provide for other health promotion media activities. Sec. 1002. (1) The amount appropriated in section 101 for the school health curricula shall be allocated in 1997-98 to provide grants to or contract with certain districts and intermediate districts for the provision of a school health education curriculum. Provision of the curriculum, such as the Michigan model or another comprehensive school health education curriculum, shall be in accordance with the health education goals established by the Michigan model for the comprehensive school health education state steering committee. The state steering committee shall be comprised of a representative from each of the following offices and departments: (a) The department of education. (b) The department of community health. (c) The public health agency in the department of community health. (d) The office of substance abuse services in the department of community health. (e) The family independence agency. (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. Sec. 1003. From the funds appropriated in section 101 for physical fitness, nutrition, and health, up to $1,000,000.00 may be allocated to the Michigan physical fitness and sports foundation. The allocation to the Michigan physical fitness and sports foundation is contingent upon the foundation providing at least a 20% cash match. Sec. 1004. From the amount appropriated in section 101 for the cancer prevention and control program, funds shall be allocated to a regional cancer program operated jointly by Wayne State University, the Detroit medical center, and the Michigan cancer foundation; to the University of Michigan cancer center, and to the Michigan State University college of human medicine for cancer prevention activities. Sec. 1005. From the funds appropriated in section 101 for diabetes local agreements, a portion of the funds may be allocated to the national kidney foundation of Michigan for kidney disease prevention programming including early identification and education programs and kidney disease prevention demonstration projects. Sec. 1006. 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, Act No. 368 of the Public Acts of 1978, being section 333.2611 of the Michigan Compiled Laws. The department may develop a master agreement with the institute for up to a 3-year period to carry out these purposes. The department shall report on projects to be carried out by the institute, expected project duration, and project cost by November 1, 1997 and May 1, 1998 to the house and senate appropriations subcommittees on community health, senate and house fiscal agencies, and the department of management and budget. If the reports are not received by the specified dates, no funds shall be disbursed. For the purposes of this section, the Michigan public health institute shall be considered a public health agency. CHILD AND FAMILY SERVICES GRANTS Sec. 1101. The department shall review the basis for the distribution of funds to local health departments and other public and private agencies for the women, infants, and children food supplement program; family planning; early and periodic screening, diagnosis, and treatment program; and prenatal care outreach and service delivery support program and indicate the basis upon which any projected underexpenditures by local public and private agencies shall be reallocated to other local agencies that demonstrate need. Sec. 1102. Before April 1, 1998, the department shall submit a report to the house and senate fiscal agencies on planned allocations, use of funds, and service activity resulting from the amounts appropriated in section 101 for maternity, infant, and children's health care local agreements, prenatal care outreach and service delivery support, family planning local agreements, and pregnancy prevention programs. Sec. 1103. For all programs for which an appropriation is made in section 101 for child and family services grants, the department shall contract with those local public and private nonprofit agencies best able to serve clients. Factors to be used by the department in evaluating agencies under this section shall include ability to serve high risk population groups; ability to serve low income clients, where applicable; availability of, and access to, service sites; management efficiency; and ability to meet federal standards, where applicable. Sec. 1104. Each family planning program receiving federal title X family planning funds shall be in compliance with all performance and quality assurance indicators that the United States bureau of community health services specifies as its common reporting requirements. An agency not in compliance with the indicators shall not receive supplemental or reallocated funds. Sec. 1105. Of the amount appropriated in section 101 for prenatal care outreach and service delivery support, not more than 10% shall be expended for local administration, data processing, and evaluation. Sec. 1106. A clinic, institution, or other health facility receiving state funding for family planning purposes shall provide to a client seeking family planning services, at initial contact, a pamphlet containing educational information to assist the patient in making responsible parenting decisions. The pamphlet shall include, but not be limited to, information regarding the physical, financial, and time commitment involved in parenting. The pamphlets required by this section shall be provided by the department. The pamphlets shall be written in English and in clear, nontechnical terms. Copies of the pamphlets shall also be printed in Spanish and distributed upon request to the clinics, institutions, and other health facilities described in this section. Sec. 1107. The department shall maintain comprehensive health care programs to communicate to preteens the importance of delaying sexual activity and to address teen sexual activity, teenage pregnancy, and sexually transmitted diseases. Sec. 1108. The funds appropriated in section 101 for pregnancy prevention programs shall not be used to provide abortion counseling, referrals, or services. Sec. 1109. The department shall make a grant of $53,000.00 to pregnancy services of Michigan. Sec. 1110. (1) From the amounts appropriated in section 101 for dental programs, funds shall be allocated to the Michigan dental association for the administration of a volunteer dental program that would provide dental services to the uninsured in an amount that is no less than the amount allocated to that program in fiscal year 1996-97. (2) Not later than November 1, 1997, the department shall report to the senate and house appropriations subcommittees on community health and the senate and house standing committees on public health the number of individual patients treated, the number of procedures performed, and approximate total market value of those procedures through September 30, 1997. Sec. 1111. From the funds appropriated in section 101 for immunization local agreements, the department shall implement a state-wide immunization registry. The registry shall be available to both public and private providers. Sec. 1112. Agencies that currently receive pregnancy prevention funds and either receive or are eligible for other family planning funds shall have the option of receiving all of their family planning funds directly from the department of community health and be designated as delegate agencies. CHILDREN'S SPECIAL HEALTH CARE SERVICES . . . . Sec. 1201. Money appropriated in section 101 for medical care and treatment of children with special health care needs shall be paid according to reimbursement policies determined by the Michigan medical services program. Exceptions to these policies may be taken with the prior approval of the department of management and budget. Sec. 1202. The department may do 1 or more of the following: (a) Provide special formula for eligible clients with specified metabolic and allergic disorders. (b) Provide medical care and treatment to eligible patients with cystic fibrosis who are 21 years of age or older. (c) Provide genetic diagnostic and counseling services for eligible families. (d) Provide medical care and treatment to eligible patients with hereditary coagulation defects, commonly known as hemophilia, who are 21 years of age or older. SUBSTANCE ABUSE GRANTS AND CONTRACTS Sec. 1301. (1) The funds appropriated in section 101 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 be determined in accordance with section 805 of Act No. 168 of the Public Acts of 1992. (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 family independence agency 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. MEDICAL SERVICES Sec. 1401. The department of community health shall provide an administrative procedure for the review of grievances by medical services providers with regard to reimbursement under the medical services program. Settlements of properly submitted cost reports shall be paid not later than 9 months from receipt of the final report. Sec. 1402. (1) Except as provided in subsection (2), 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 part A and excluding medicare part B, those amounts established for medical services-only patients. The medical services payment rate shall be accepted as payment in full. Other than an approved medical services copayment, no portion of a provider's charge shall be billed to the recipient or any person acting on behalf of the recipient. Nothing in this section shall be deemed 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 and direct medical education payments. Sec. 1403. (1) The department shall require copayments on prescriptions, dental, podiatric, chiropractic, vision, and hearing aid services provided to recipients of medical assistance except as excluded by law. (2) Usual and customary charges for pharmacy providers are defined as the pharmacy's charges to the general public for like or similar services. Sec. 1404. 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 means those services which produce the maximum reduction of physical and mental limitations and restoration of an individual to his or her best functional level. At a minimum, remedial services include basic self care and rehabilitation training for a resident. Sec. 1405. (1) From the funds appropriated in section 101 for the indigent medical care program, the department shall establish a program which provides for the basic health care needs of indigent persons as delineated in the following subsections. (2) Eligibility for this program is limited to the following: (a) Persons currently receiving cash grants under either the family independence program or state disability assistance programs who are not eligible for any other public or private health care coverage. (b) Any other resident of this state who is a citizen of the United States and who currently meets the income and asset requirements for the state disability assistance program and is not eligible for any other public or private health care coverage. (3) All potentially eligible persons, except those defined in subsection (2)(a), who shall be automatically enrolled, may apply for enrollment in this program at local family independence agency offices or other designated sites. (4) The program shall provide for the following minimum level of services for enrolled individuals: (a) Physician services provided in private, clinic, or outpatient office settings. (b) Diagnostic laboratory and x-ray services. (c) Pharmaceutical services. (5) Notwithstanding section 1405 (2)(b), the state may continue to provide nursing facility coverage and medically necessary ancillary services to individuals categorized as permanently residing under color of law and who are residing in such facilities as of August 22, 1996 who only qualify for emergency medicaid services. Sec. 1406. The department may require medical services recipients to receive psychiatric services through a managed care system. Sec. 1407. The department shall continue to implement managed care and shall require medical services recipients residing in counties offering managed care options to choose the particular managed care plan in which they wish to be enrolled. Persons not expressing a preference shall be assigned to a managed care provider. Sec. 1408. (1) The department shall not preauthorize or in any way restrict single-source pharmaceutical products except those single- source pharmaceuticals that have been subject to prior authorization by the department prior to January 1, 1992, and those single-source pharmaceuticals within the categories specified in section 1927(d)(2) of the social security act, 42 U.S.C. 1396s(d), or for the reasons delineated in section 1927(d)(3) of the social security act, 42 U.S.C. 1396s(d). (2) The department may implement drug utilization review and monitoring programs that may cover renewals of prescriptions of anti-ulcer agents; these programs shall not be expanded to other therapeutic classes. Such programs shall have physician oversight through the drug utilization and review board to ensure proper determination. Sec. 1409. The department shall assure that all eligible children assigned to medical services managed care programs have timely access to early and periodic screening, diagnosis, and treatment (EPSDT) services as required by federal law. Sec. 1410. (1) The department of community health is authorized to pursue reimbursement for eligible services provided in Michigan schools from the federal medicaid program. The department and the department of management and budget 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 section 101 for medical services school 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. (3) The department shall not make distributions from the funds provided for this purpose in section 101 until it has filed the necessary state plan amendments, made required notifications, received an indication of approval from the health care financing administration, and received approval from the department of management and budget. Sec. 1411. The special adjustor appropriation in section 101 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 and receives an indication of approval of the amendment from the health care financing administration. The department is authorized to appropriately adjust financing sources in accordance with the increased appropriation. Sec. 1412. Medical services shall be provided to elderly and disabled persons with incomes less than or equal to 100% of the official poverty line, pursuant to the state's option to elect such coverage set out at section 1902(a)(10)(A)(ii) and (m) of title XIX of the social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396a. Sec. 1413. The department may fund home and community-based services in lieu of nursing home services, for individuals seeking long-term care services, from the nursing home or personal care in-home services line items. Sec. 1414. The department of community health shall distribute $695,000.00 to children's hospitals that have a high indigent care volume. The amount to be distributed to any given hospital shall be based on a formula determined by the department of community health. Sec. 1415. (1) The department shall implement enforcement actions as specified in the nursing facility enforcement provisions of 42 U.S.C. 1396r. (2) The department is authorized to receive and expend penalty money received as the result of noncompliance with medical services certification regulations. Penalty money, characterized as private funds, are appropriated upon receipt in the long-term care accounts. (3) Any unexpended penalty revenue, at the end of the year, shall carry over to the following year. Sec. 1416. The department shall notify the medical services managed care provider of an address for each enrolled recipient at the time of enrollment and whenever there is a subsequent address change. Sec. 1417. (1) Medical services patients who are enrolled in qualified health plans or capitated clinic plans have the choice to elect hospice services or other services for the terminally ill that are offered by the qualified health plan or clinic plan. If the patient elects hospice services, those services shall be provided in accordance with 214 of the public health code, Act No. 368 of the Public Acts of 1978, being sections 333.21401 to 333.21420 of the Michigan Compiled Laws. (2) The department shall not amend the medical services hospice manual in a manner that would allow hospice services to be provided without making available all comprehensive hospice services described in 42 C.F.R. part 418. Sec. 1418. (1) From the funds appropriated in section 101 for outpatient hospital indigent adjustor, the department, subject to the requirements and limitations in this section, shall establish a funding pool of up to $44,012,800.00 for the purpose of enhancing the aggregate payment for medical services hospital outpatient services. Such payments, if any, may be made as a gross adjustment to hospital outpatient payments or by another mechanism or schedule as determined by the department, which meets the intent of this section. (2) For counties with populations in excess of 2,000,000 persons, the department shall distribute $44,012,800.00 to hospitals if $15,026,700.00 is received by the state from such counties, which meets the criteria of an allowable state matching share as determined by applicable federal laws and regulations. If the state receives a lesser sum of an allowable state matching share from these counties, the amount distributed shall be reduced accordingly. Sec. 1419. 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. 1420. All nursing home rates, class I and class III, must have their respective fiscal year rate set 30 days prior to the beginning of their rate year. The rates shall be set based on the most recent cost report prepared and filed timely in accordance with medicaid policy and certified by the preparer, provider, corporate owner, or representative as being true, accurate, prepared with knowledge and consent, and containing no untrue, misleading, or deceptive information. If the audited version of the last report is available, it shall be used. Any rates set based on the filed cost report may be retroactively adjusted upon completion of the audit of that cost report. Sec. 1421. (1) In cooperation with the family independence agency, the department may establish a statewide program for persons who work their way off welfare to purchase medicaid coverage at a rate determined by the department. (2) The department may receive and expend premiums for the buy-in of medicaid coverage in addition to the amounts appropriated in section 101. Sec. 1422. Mandatory enrollment of medicaid eligible persons in qualified health plans may occur for the elderly, the disabled, the medically needy, individuals with mental illness, individuals who have a developmental disability, children with serious emotional disturbance, and recipients of children's special health care services if both of the following conditions are met: (a) Continuity of care is assured by allowing enrollees to continue receiving required medically necessary services from their current providers for a period not to exceed 1 year if enrollees meet the managed care medical exception criteria. (b) A contract for an independent evaluation is in place to measure cost, access, quality, and patient satisfaction. Sec. 1423. The department shall establish uniform quality and reporting standards for all qualified health plans with which it contracts. At least 30 days prior to the implementation of such standards, the department shall report on the standards developed to the house and senate appropriations subcommittees on community health and the house and senate fiscal agencies. Sec. 1424. (1) Medicaid qualified health plans shall establish an ongoing internal quality assurance program for health care services provided to medicaid recipients which includes: (a) An emphasis on health outcomes. (b) Establishment of written protocols for utilization review based on current standards of medical practice. (c) Review by physicians and other health care professionals of the process followed in the provision of such health care services. (d) Evaluation of the continuity and coordination of care that enrollees receive. (e) Mechanisms to detect overutilization and underutilization of services. (f) Actions to improve quality and assess the effectiveness of such action through systematic follow-up. (g) Provision of information on quality and outcome measures to facilitate enrollee comparison and choice of health coverage options. (h) Ongoing evaluation of the plans' effectiveness. (2) Medicaid qualified health plans shall apply for accreditation by an appropriate external independent accrediting organization requiring standards recognized by the department once those plans have met the application requirements. The state shall accept accreditation of a plan by an approved accrediting organization as proof that the plan meets some or all of the state's requirements, if the state determines that the accrediting organization's standards meet or exceed the state's requirements. (3) The department of community health shall obtain from those qualified health plans and clinic plans with which the department contracts patient-based utilization data, including immunizations, early and periodic screenings, diagnoses, and treatments, substance abuse services, and maternal and infant support services referrals. The format and frequency of reporting shall be specified by the department. (4) Medicaid qualified health plans shall assure that all covered services are available and accessible to enrollees with reasonable promptness and in a manner which assures continuity. Medically necessary services shall be available and accessible 24 hours a day and 7 days a week. (5) Medicaid qualified health plans shall provide for reimbursement of services delivered other than through the plan's providers if medically necessary and approved by the plan, immediately required, and which could not reasonably be obtained through the plan's providers. (6) Medicaid qualified health plans shall provide access to appropriate providers, including qualified specialists for all medically necessary services. (7) Medicaid qualified health plans shall provide the department with a demonstration of the plan's capacity to adequately serve the plan's expected enrollment of medicaid enrollees. (8) Medicaid qualified health plans shall provide assurances to the department that it will not deny enrollment to, expel, or refuse to reenroll any individual because of the individual's health status or need for services, and that it will notify all eligible persons of such assurances at the time of enrollment. (9) Medicaid qualified health plans shall provide procedures for hearing and resolving grievances between the plan and members enrolled in the plan on a timely basis. (10) Medicaid qualified health plans shall meet other standards and requirements contained in state laws, administrative rules, and policies promulgated by the department. The department may establish alternative standards and requirements that specify financial safeguards for organizations not otherwise covered by existing law. Sec. 1425. From the funds appropriated in section 101 for health plan services, the department may contract for the assessment of quality in qualified health plans which enroll medicaid recipients. Organizations providing such quality reviews shall meet the requirements of the department and include the following functions: (a) Review of plan performance based on accepted quality performance criteria. (b) Utilization of quality indicators and standards developed specifically for the medicaid population. c) Promote accountability fo