HOUSE BILL No. 6242


     July 3, 2002, Introduced by Reps. Spade and Woronchak and referred to the Committee on Senior Health, Security and Retirement.


        A bill to amend 1978 PA 368, entitled

   "Public health code,"

   by amending section 21799c (MCL 333.21799c), as amended by 1996

   PA 546.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 21799c.  (1) A person who violates 1 of the following

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        sections is guilty of a misdemeanor, punishable by imprisonment

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        for not more than 1 year or a fine of not less than $1,000.00,

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        nor more than $10,000.00, or both:

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             (a) Section 21711.

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             (b) Section 21712.

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             (c) Section 21763(5).

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             (d) Section 21765a(1) or (2).

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             (e) Section 21771(1) or (6).




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             (f) Section 21791.

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             (2) A person who violates section 21765a(1) or (2) is liable

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        to an applicant or patient in a civil action for treble the

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        amount of actual damages or $1,000.00, whichever is greater,

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        together with costs and reasonable attorney fees.

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             (3) For the purpose of computing administrative penalties

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        under this section, the number of patients per day is based on

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        the average number of patients in the nursing home during the 30

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        days immediately preceding the discovery of the violation.

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             (4) If the department finds a violation of section 20201 as

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        to a particular nursing home patient, the department shall issue

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        an order requiring the nursing home to pay to the patient

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         $100.00  $1,000.00, or to reimburse the patient for costs

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        incurred or injuries sustained as a result of the violation,

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        whichever is greater.  The department also shall assess the nurs-

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        ing home an administrative penalty that is the lesser of the

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        following:

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             (a) Not more than $1,500.00.

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             (b) $15.00 per patient bed.

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             (5) The department of community health shall promulgate

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        rules for a quality of care allowance formula that is consistent

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        with the recommendations of the fiscal incentives subcommittee to

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        the committee on nursing home reimbursement established  pursuant

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        to Act No.  241 of the Public Acts of 1975  IN ACCORDANCE WITH

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        1975 PA 241, as described in the November 24, 1975 interim

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        report, in the December 3, 1975 final report, and the November





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        24, 1976 report of the committee recommending appropriate changes

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        in the procedures utilized.

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             (6) The department shall not assess an administrative pen-

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        alty under subsection (4) for a violation of this part for which

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        a nursing home's reimbursement is withheld under subsection (5).














































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