Legislative Analysis
Phone: (517) 373-8080
JUVENILE JUSTICE RESIDENTIAL PER DIEM RATES
http://www.house.mi.gov/hfa
Senate Bill 426 as enacted Analysis available at
Public Act 300 of 2023 http://www.legislature.mi.gov
Sponsor: Sen. Paul Wojno
House Committee: Criminal Justice
Senate Committee: Civil Rights, Judiciary, and Public Safety
Complete to 1-20-24
SUMMARY:
Senate Bill 426 amends the Social Welfare Act to allow the Department of Health and Human
Services (DHHS) to adjust the juvenile justice residential per diem rate as needed, as long as
it stays within the appropriated amount provided in the annual budget. 1 The bill also allows the
department to make changes to provider service agreements to respond to bed shortages, staff
retention, and service needs.
The bill takes effect October 1, 2024.
MCL 400.117k
BACKGROUND:
The Michigan Task Force on Juvenile Justice Reform was created by Executive Order 2021-6
as a bipartisan advisory body in the Department of Health and Human Services 2 to “lead a
data-driven analysis of [Michigan’s] juvenile justice system and recommend proven practices
and strategies for reform grounded in data, research, and fundamental constitutional
principles.” In particular, in the words of its final report, 3 the task force was “charged with
developing recommendations to improve state law, policy, and appropriations guided by the
following objectives:
• Safely reduce placement in detention and residential placement and associated costs.
• Increase the safety and well-being of youth impacted by the juvenile justice system.
• Reduce racial and ethnic disparities among youth impacted by the juvenile justice
system.
• Improve the efficiency and effectiveness of the state’s and counties’ juvenile justice
systems.
• Increase accountability and transparency within the juvenile justice system.
• Better align practices with research and constitutional mandates.”
The task force issued its final report on July 18, 2022. 4
1
As written, this appears to refer to a line item and not the departmental budget.
2
https://www.legislature.mi.gov/documents/2021-2022/executiveorder/pdf/2021-EO-06.pdf
3
https://micounties.org/wp-content/uploads/Michigan-Taskforce-on-Juvenile-Justice-Reform-Final-Report.pdf
4
https://www.michigan.gov/whitmer/news/press-releases/2022/07/18/task-force-on-juvenile-justice-reform-
approves-blueprint-for-transforming-juvenile-justice
House Fiscal Agency Page 1 of 2
 Among its unanimous recommendations was that the state “Provide [the Department of Health
and Human Services] with statutory authority to adjust juvenile justice residential per diem
rates within their appropriated fiscal budget, and make changes to provider service agreements
to respond in a more flexible way to bed shortages, staff retention challenges, and service
needs.”
FISCAL IMPACT:
Senate Bill 426 would have no significant impact for the Department of Health and Human
Services and local units of government, as the rates would have to stay within the appropriated
amount. County fiscal impact would depend on the degree to which the state’s appropriation
differs from the county’s budgeted amount for that fiscal year, but would likely be nominal.
Legislative Analyst: Rick Yuille
Fiscal Analyst: Sydney Brown
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 426 as enacted Page 2 of 2


Statutes affected:
Senate Introduced Bill: 400.1, 400.119
As Passed by the Senate: 400.1, 400.119
As Passed by the House: 400.1, 400.119
Public Act: 400.1, 400.119
Senate Enrolled Bill: 400.1, 400.119