CONTENT

The bill would amend the Fire Prevention Code to require the Department of Licensing and Regulatory Affairs (LARA) to charge operation and maintenance fees to nursing homes, homes for the aged, and adult foster care facilities.

Currently, the Act allows the Bureau of Fire Services in LARA to charge hospitals operation and maintenance fees.

Under the bill, the Bureau also could charge the fees to nursing homes, homes for the aged, and adult foster care facilities. At the beginning of each fiscal year, the Department could increase the fees by a percentage amount equal to not more than the average percentage wage and salary increase granted for that fiscal year to classified civil service employees employed by LARA.

If the Department increased the fees collected, the increase would be effective for that fiscal year. The Department would have to use the increased fees as the basis for calculating fee increases in subsequent fiscal years.

By August 1 of each year, the Department would have to provide a complete schedule of fees to be collected for the following fiscal year to all of the following:

-- The Director of the Department of Technology, Management, and Budget.

-- The chairperson of the House Appropriations Committee.

-- The chairperson of the Senate Appropriations Committee.

Under the bill, "adult foster care facility with capacity for more than 6 adults" would mean an adult foster care congregate facility, or an adult foster care large group home, as those terms are defined in the Adult Foster Care Facility Licensing Act. "Adult foster care facility with capacity for more than six adults" would include an adult foster care small group home, as that term is defined in the Adult Foster Care Facility Licensing Act with capacity for more than six adults.

MCL 29.2c

FISCAL IMPACT

The bill would have a positive fiscal impact on State government and no impact on local government. Currently, Public Act 121 of 2024 requires the Bureau of Fire Services to charge inspection and plan review fees. The bill would allow the Bureau to impose this fee on a greater number of facility types. The amount of additional fees is indeterminate and would depend on the number of facilities on which the Department would levy the fees.

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Date Completed: 9-25-25 Analyst: Nathan Leaman