June 18, 2008, Introduced by Reps. Angerer, Brown, Simpson, Valentine, Robert Jones, Donigan, Leland, Ebli, Miller, Meisner, Polidori, Bennett, Corriveau, Dean and Meadows 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 20142 (MCL 333.20142).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20142. (1) A health facility or agency shall apply for
licensure or certification on a form authorized and provided by the
department. The application shall include attachments, additional
data, and information required by the department.
(2) An applicant shall certify the accuracy of information
supplied in the application and supplemental statements.
(3) An applicant or a licensee under part 213 or 217 shall
disclose the names, addresses, principal occupations, and official
positions of all persons who have an ownership interest in the
health facility or agency. If the health facility or agency is
located on or in leased real estate, the applicant or licensee
shall disclose the name of the lessor and any direct or indirect
interest the applicant or licensee has in the lease other than as
lessee. An applicant or a licensee under part 217 shall disclose
the names, addresses, principal occupations, and official positions
of all control persons. A change in ownership or control shall be
reported to the director not less than 15 days before the change
occurs, except that a person purchasing stock of a company
registered pursuant to the securities exchange act of 1934, 15
U.S.C.
USC 78a to 78kk 78nn, is exempt from
disclosing ownership in
the facility. A person required to file a beneficial ownership
report pursuant to section 16(a) of the securities exchange act of
1934,
15 U.S.C. USC 78p shall file with the department information
relating to securities ownership required by the department rule or
order. An applicant or licensee proposing a sale of a nursing home
to another person shall provide the department with written,
advance notice of the proposed sale. The applicant or licensee and
the 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 which shall be corrected. The department shall notify the
respective parties of the items of noncompliance prior to the
change of ownership and shall indicate that the items of
noncompliance must be corrected as a condition of issuance of a
license to the new owner. The department shall not issue a license
to the new owner until all of the items of noncompliance have been
corrected. The department may accept reports filed with the
securities and exchange commission relating to the filings. A
person who violates this subsection is guilty of a misdemeanor,
punishable by a fine of not more than $1,000.00 for each violation.
(4) An applicant or licensee under part 217 shall disclose the
names and business addresses of suppliers who furnish goods or
services to an individual nursing home or a group of nursing homes
under common ownership, the aggregate charges for which exceed
$5,000.00 in a 12-month period which includes a month in a nursing
home's current fiscal year. An applicant or licensee shall disclose
the names, addresses, principal occupations, and official positions
of all persons who have an ownership interest in a business which
furnishes goods or services to an individual nursing home or to a
group of nursing homes under common ownership, if both of the
following apply:
(a) The person, or the person's spouse, parent, sibling, or
child has an ownership interest in the nursing home purchasing the
goods or services.
(b) The aggregate charges for the goods or services purchased
exceeds $5,000.00 in a 12-month period which includes a month in
the nursing home's current fiscal year.
(5) An applicant or licensee who makes a false statement in an
application or statement required by the department pursuant to
this article is guilty of a felony, punishable by imprisonment for
not more than 4 years, or a fine of not more than $30,000.00, or
both.
(6) As used in this section, "control person" means a
director, manager, or executive officer of an applicant or licensee
or a natural person who has the authority to participate in the
direction, directly or indirectly through 1 or more other natural
persons, of the management or policies of an applicant or licensee.