May 17, 2005, Introduced by Senators OLSHOVE, CHERRY, BRATER, BERNERO, GOSCHKA, JACOBS, BARCIA, SCOTT, SWITALSKI, SCHAUER and TOY and referred to the Committee on Families and Human Services.
A bill to amend 1979 PA 218, entitled
"Adult foster care facility licensing act,"
by amending section 13 (MCL 400.713), as amended by 2004 PA 281.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 13. (1) A person, partnership, corporation, association,
or a department or agency of the state, county, city, or other
political subdivision shall not establish or maintain an adult
foster care facility unless licensed by the department.
(2) Application for a license shall be made on forms provided
and in the manner prescribed by the department. The application
shall be accompanied by the fee prescribed in section 13a.
(3) Before issuing or renewing a license, the department shall
investigate the activities and standards of care of the applicant
and shall make an on-site evaluation of the facility. On-site
inspections conducted in response to the application may be
conducted without prior notice to the applicant. Subject to
subsections (9), (10), and (11), the department shall issue or
renew a license if satisfied as to all of the following:
(a) The financial stability of the facility.
(b) The applicant's compliance with this act and rules
promulgated under this act.
(c) The good moral character of the applicant, or owners,
partners, or directors of the facility, if other than an
individual. Each of these persons shall be not less than 18 years
of age.
(d) The physical and emotional ability of the applicant, and
the person responsible for the daily operation of the facility to
operate an adult foster care facility.
(e) The good moral character of the person responsible for the
daily operations of the facility and all employees of the facility.
The applicant shall be responsible for assessing the good moral
character of the employees of the facility. The person responsible
for the daily operation of the facility shall be not less than 18
years of age.
(4) The department shall require an applicant or a licensee to
disclose the names, addresses, and official positions of all
persons who have an ownership interest in the adult foster care
facility. If the adult foster care facility is located on or in
real estate that is leased, the applicant or licensee shall
disclose the name of the lessor of the real estate and any direct
or indirect interest that the applicant or licensee has in the
lease other than as lessee.
(5) Each license shall state the maximum number of persons to
be received for foster care at 1 time.
(6) If applicable, a license shall state the type of
specialized program for which certification has been received from
the department.
(7) A license shall be issued to a specific person for a
facility at a specific location, is nontransferable, and remains
the property of the department. The prohibition against transfer of
a license to another location does not apply if a licensee's adult
foster care facility or home is closed as a result of eminent
domain proceedings, if the facility or home, as relocated,
otherwise meets the requirements of this act and the rules
promulgated under this act.
(8) An applicant or licensee proposing a sale of an adult
foster care facility or home to another owner shall provide the
department with advance notice of the proposed sale in writing. The
applicant or licensee and other parties to the sale shall arrange
to meet with specified department representatives and shall obtain
before the sale a determination of the items of noncompliance with
applicable law and rules that shall be corrected. The department
shall notify the respective parties of the items of noncompliance
before the change of ownership, shall indicate that the items of
noncompliance shall be corrected as a condition of issuance of a
license to the new owner, and shall notify the prospective
purchaser of all licensure requirements.
(9) The department shall not issue a license to or renew the
license
of a person who an applicant if the individual applicant,
or the owner, partner, or director of the applicant, if other than
an
individual, has been convicted of a
1 or more of the
following:
(a) A felony under this act or under chapter XXA of the
Michigan penal code, 1931 PA 328, MCL 750.145m to 750.145r. The
department
shall not issue a license to or renew the license of a
person
who has been convicted of a
(b) A felony or attempt or conspiracy to commit a felony
within the 15 years immediately preceding the application.
(c) A misdemeanor under this act or under chapter XXA of the
Michigan penal code, 1931 PA 328, MCL 750.145m to 750.145r, for
a
period
of within the 10 years
after the conviction immediately
preceding the application.
(d) A misdemeanor involving abuse, neglect, assault, battery,
or criminal sexual conduct or involving fraud or theft against a
vulnerable adult as that term is defined in section 145m of the
Michigan penal code, 1931 PA 328, MCL 750.145m, or a state or
federal crime that is substantially similar to a misdemeanor
described in this subdivision within the 10 years immediately
preceding the application.
(e) An offense listed under R 400.1152 of the Michigan
administrative code.
(10) If the department has revoked, suspended, or refused to
renew a person's license for an adult foster care facility
according to section 22, the department may refuse to issue a
license to or renew a license of that person for a period of 5
years after the suspension, revocation, or nonrenewal of the
license.
(11) The department may refuse to issue a license to or renew
the license of an applicant if the department determines that the
applicant has a relationship with a former licensee whose license
under this act has been suspended, revoked, or nonrenewed under
subsection (9) or section 22 or a convicted person to whom a
license has been denied under subsection (9). This subsection
applies for 5 years after the suspension, revocation, or nonrenewal
of the former licensee's license or the denial of the convicted
person's license. For purposes of this subsection, an applicant has
a relationship with a former licensee or convicted person if the
former licensee or convicted person is involved with the facility
in 1 or more of the following ways:
(a) Participates in the administration or operation of the
facility.
(b) Has a financial interest in the operation of the facility.
(c) Provides care to residents of the facility.
(d) Has contact with residents or staff on the premises of the
facility.
(e) Is employed by the facility.
(f) Resides in the facility.
(12) If the department determines that an unlicensed facility
is an adult foster care facility, the department shall notify the
owner or operator of the facility that it is required to be
licensed under this act. A person receiving the notification
required under this section who does not apply for a license within
30 days is subject to the penalties described in subsection (13).
(13) Subject to subsection (12), a person who violates
subsection (1) is guilty of a misdemeanor, punishable by
imprisonment for not more than 2 years or a fine of not more than
$50,000.00, or both. A person who has been convicted of a violation
of subsection (1) who commits a second or subsequent violation is
guilty of a felony, punishable by imprisonment for not more than 5
years or a fine of not more than $75,000.00, or both.
(14)
Beginning the effective date of the amendatory act that
added
this subsection July 23, 2004,
the department shall issue an
initial or renewal license not later than 6 months after the
applicant files a completed application. Receipt of the application
is considered the date the application is received by any agency or
department of this state. If the application is considered
incomplete by the department, the department shall notify the
applicant in writing or make notice electronically available within
30 days after receipt of the incomplete application, describing the
deficiency and requesting additional information. If the department
identifies a deficiency or requires the fulfillment of a corrective
action plan, the 6-month period is tolled until either of the
following occurs:
(a) Upon notification by the department of a deficiency, until
the date the requested information is received by the department.
(b) Upon notification by the department that a corrective
action plan is required, until the date the department determines
the requirements of the corrective action plan have been met.
(15) The determination of the completeness of an application
does not operate as an approval of the application for the license
and does not confer eligibility of an applicant determined
otherwise ineligible for issuance of a license.
(16) If the department fails to issue or deny a license within
the time required by this section, the department shall return the
license fee and shall reduce the license fee for the applicant's
next renewal application, if any, by 15%. Failure to issue or deny
a license within the time period required under this section does
not allow the department to otherwise delay processing an
application. The completed application shall be placed in sequence
with other completed applications received at that same time. The
department shall not discriminate against an applicant in the
processing of an application based on the fact that the application
fee was refunded or discounted under this subsection.
(17) If, on a continual basis, inspections performed by a
local health department delay the department in issuing or denying
licenses under this act within the 6-month period, the department
may use department staff to complete the inspections instead of the
local health department causing the delays.
(18) Beginning October 1, 2005, the director of the department
shall submit a report by December 1 of each year to the standing
committees and appropriations subcommittees of the senate and house
of representatives concerned with human services issues. The
director shall include all of the following information in the
report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the
department received and completed within the 6-month time period
described in subsection (14).
(b) The number of applications requiring a request for
additional information.
(c) The number of applications rejected.
(d) The number of licenses not issued within the 6-month
period.
(e) The average processing time for initial and renewal
licenses granted after the 6-month period.
(19) As used in this section, "completed application" means an
application complete on its face and submitted with any applicable
licensing fees as well as any other information, records, approval,
security, or similar item required by law or rule from a local unit
of government, a federal agency, or a private entity but not from
another department or agency of this state. Beginning October 1,
2005, a completed application does not include a health inspection
performed by a local health department.