HOUSE BILL No. 4248

 

February 8, 2007, Introduced by Reps. Meadows, Alma Smith, Leland and Cushingberry and referred to the Committee on Health Policy.

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 16231 and 16237 (MCL 333.16231 and 333.16237),

 

section 16231 as amended by 1993 PA 79 and section 16237 as added

 

by 1993 PA 87.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 16231. (1) A person or governmental entity who believes

 

that a violation of this article or article 7 or a rule promulgated

 

under this article or article 7 exists may make an allegation of

 

that fact to the department in writing.

 

     (2) If, upon reviewing an application or an allegation or a

 

licensee's file under section 16211(4), the department determines

 

there is a reasonable basis to believe the existence of a violation

 


of this article or article 7 or a rule promulgated under this

 

article or article 7, the department, with the authorization of the

 

chair of the applicant's, licensee's, or registrant's board or task

 

force or his or her designee, shall investigate. If the chair or

 

his or her designee fails to grant or deny authorization within 7

 

days after receipt of a request for authorization, the department

 

shall investigate. The department shall notify the licensee of the

 

receipt of an allegation or the initiation of an investigation

 

within 7 days after the receipt or initiation, whichever first

 

occurs.

 

     (3) Upon the receipt of information reported pursuant to

 

section 16243(2) that indicates 3 or more malpractice settlements,

 

awards, or judgments against a licensee in a period of 5

 

consecutive years or 1 or more malpractice settlements, awards, or

 

judgments against a licensee totaling more than $200,000.00 in a

 

period of 5 consecutive years, whether or not a judgment or award

 

is stayed pending appeal, the department shall investigate. The

 

department shall notify the licensee of the receipt of information

 

or the initiation of an investigation within 7 days after the

 

receipt or initiation, whichever first occurs.

 

     (4) At any time during an investigation or following the

 

issuance of If a formal complaint is issued, the department may

 

schedule a compliance conference pursuant to section 92 of the

 

administrative procedures act of 1969, being section 24.292 of the

 

Michigan Compiled Laws MCL 24.292. The conference may include the

 

applicant, licensee, or registrant, the applicant's, licensee's, or

 

registrant's attorney, 1 member of the department's staff, and any

 


other individuals approved by the department. One member of the

 

appropriate board or task force who is not a member of the

 

disciplinary subcommittee with jurisdiction over the matter may

 

attend the conference and provide such assistance as needed. At the

 

compliance conference, the department shall attempt to reach

 

agreement. If an agreement is reached, the department shall submit

 

a written statement outlining the terms of the agreement, or a

 

stipulation and final order, if applicable, or a request for

 

dismissal to the appropriate disciplinary subcommittee for

 

approval. If the agreement or stipulation and final order or

 

request for dismissal is rejected by the disciplinary subcommittee,

 

or if no agreement is reached, a hearing before a hearings examiner

 

shall be scheduled. A party shall not make a transcript of the

 

compliance conference. All records and documents of a compliance

 

conference held before a complaint is issued are subject to section

 

16238.

 

     (5) Within 90 days after an investigation is initiated under

 

subsection (2) or (3), the department shall do 1 or more of the

 

following:

 

     (a) Issue a formal complaint.

 

     (b) Conduct a compliance conference under subsection (4).

 

     (b) (c) Issue a summary suspension.

 

     (c) (d) Issue a cease and desist order.

 

     (e) Dismiss the complaint.

 

     (d) (f) Place in the complaint allegation file not more than 1

 

written extension of not more than 30 days to take action under

 

this subsection.

 


     (6) Unless the person submitting the an allegation under

 

subsection (1) otherwise agrees in writing, the department shall

 

keep the identity of a the person submitting the an allegation

 

confidential until disciplinary proceedings under this part are

 

initiated. against the subject of the allegation and the The person

 

making the allegation is required to testify in the any

 

disciplinary proceedings relating to that person's allegation.

 

     (7) If the department fails to take action within the time

 

periods set forth in subsection (5), the allegation is dismissed

 

without prejudice. A person or the department may refile the

 

allegation or recommence the investigation 1 time within 30 days of

 

the date of the initial dismissal and, if the allegation is refiled

 

or the investigation is recommenced, the person or the department

 

shall comply with the procedures set forth in this section.

 

     (8) If the department fails to file a formal complaint within

 

1 year after the initial receipt of an allegation or the initiation

 

of an investigation, whichever is later, the allegation is

 

dismissed with prejudice. The failure to comply with this time

 

limitation is jurisdictional.

 

     (9) (7) The department shall serve a complaint pursuant to

 

section 16192. The department shall include in the complaint a

 

notice that the applicant, licensee, or registrant who is the

 

subject of the complaint has 30 days from the date of receipt to

 

respond in writing to the complaint.

 

     (10) (8) The department shall treat the failure of the

 

applicant, licensee, or registrant to respond to the complaint

 

within the 30-day period set forth in subsection (7) (9) as an

 


admission of the allegations contained in the complaint. The

 

department shall notify the appropriate disciplinary subcommittee

 

of the individual's failure to respond and shall forward a copy of

 

the complaint to that disciplinary subcommittee. The disciplinary

 

subcommittee may then impose an appropriate sanction under this

 

article or article 7.

 

     Sec. 16237. (1) In imposing a penalty under section 16232(3),

 

a disciplinary subcommittee shall review the recommended findings

 

of fact and conclusions of law of the hearings examiner.

 

     (2) The department of attorney general may assign an

 

independent special assistant attorney general who is under

 

contract to the department of attorney general and is not a member

 

of the state classified civil service to advise the disciplinary

 

subcommittees on matters of law and provide other legal assistance

 

as necessary. A special assistant attorney general assigned to the

 

disciplinary subcommittees under this subsection shall not be the

 

same individual who represented the department before a hearings

 

examiner under section 16231a(4).

 

     (3) In reviewing the recommended findings of fact and

 

conclusions of law of the hearings examiner and the record of the

 

hearing, a disciplinary subcommittee may request the hearings

 

examiner to take additional testimony or evidence on a specific

 

issue or may revise the recommended findings of fact and

 

conclusions of law as determined necessary by the disciplinary

 

subcommittee, or both. A disciplinary subcommittee shall not

 

conduct its own investigation or take its own additional testimony

 

or evidence under this subsection.

 


     (4) If a disciplinary subcommittee finds that a preponderance

 

of the evidence supports the recommended findings of fact and

 

conclusions of law of the hearings examiner indicating that grounds

 

exist for disciplinary action, the disciplinary subcommittee shall

 

impose an appropriate sanction under this article or article 7, or

 

both. If the disciplinary subcommittee finds that a preponderance

 

of the evidence does not support the findings of fact and

 

conclusions of law of the hearings examiner indicating that grounds

 

exist for disciplinary action, the disciplinary subcommittee shall

 

dismiss the complaint. A disciplinary subcommittee shall report

 

final action taken by it in writing to the appropriate board or

 

task force.

 

     (5) The compliance conference, the hearing before the hearings

 

examiner, and final disciplinary subcommittee action shall be

 

completed within 1 year after the department initiates an

 

investigation under section 16231(2) or (3). The On or before March

 

1 of each year, the department shall note in its annual report any

 

exceptions to the 1-year requirement to the legislature the number

 

of allegations dismissed with prejudice during the previous

 

calendar year due to a failure to file a formal complaint as

 

provided for in section 16231(8).

 

     (6) A final decision of a disciplinary subcommittee rendered

 

after the effective date of the amendatory act that added this

 

section April 1, 1994 but before January 1, 1995 may be appealed

 

only in the manner provided in sections 103 to 106 of the

 

administrative procedures act of 1969, being sections 24.303 to

 

24.306 of the Michigan Compiled Laws MCL 24.303 to 24.306. A final

 


decision of a disciplinary subcommittee rendered on or after

 

January 1, 1995 may be appealed only to the court of appeals. An

 

appeal filed under this subsection is by right.