Bill Summary – FastDemocracy

SENATE BILL NO. 1026
     October 02, 2024, Introduced by Senator MCDONALD RIVET and referred to the Committee on
       Housing and Human Services.
          A bill to require the licensing of adult day-care facilities;
    to provide for the powers and duties of certain state and local
    governmental officers and entities; to impose a fee for the
    issuance of certain licenses; to provide for certain sanctions and
    penalties; and to require the promulgation of rules.
                    THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 1. This act may be cited as the "adult day-care facility
 licensing" act.
       Sec. 3. As used in this act:
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       (a) "Adult day-care facility" means a facility that provides
 care for any part of a day, but less than 24 hours, to cognitively
 impaired individuals who are 18 years of age or older.
       (b) "Cognitively impaired" means an individual who has a
 cognitive impairment that is manifested during the developmental
 period as determined through a full and individual evaluation by a
 multidisciplinary evaluation team that includes a psychologist and
 that demonstrates all of the following behavioral characteristics:
       (i) Development at a rate at or below approximately 2 standard
 deviations below the mean as determined through intellectual
 assessment.
       (ii) If the individual is of an age, grade, or mental age
 appropriate for formal or standardized achievement tests, the
 individual scores approximately within the lowest 6 percentiles on
 a standardized test in reading and arithmetic.
       (iii) Lack of development primarily in the cognitive domain.
       (iv) Impairment of adaptive behavior.
       (v) Behaviors that adversely affect the individual's
 educational performance.
       (c) "Department" means the Michigan department of lifelong
 education, advancement, and potential.
       (d) "License" means an authorization granted by the department
 granting permission to a person to establish or maintain and
 operate, or both, an adult day-care facility.
       (e) "Licensee" means a person to whom a license is granted
 under this act.
       Sec. 5. (1) Beginning 12 months after the department
 promulgates rules to implement this act, a person shall not
 establish or maintain and operate an adult day-care facility
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 without holding a license from the department. Adult day-care
 facility or a similar term or abbreviation must not be used to
 describe or refer to a facility unless it is licensed under this
 act.
        (2) An adult day-care facility shall apply for licensure on a
 form authorized and provided by the department. The application
 must include attachments, additional data, and information required
 by the department.
        (3) A license granted under this act is effective for no
 longer than 2 years after the date of issuance.
        (4) A license is not transferable and must state the persons,
 buildings, and properties to which it applies.
        (5) If ownership of the adult day-care facility is
 transferred, the department must be notified immediately and the
 new owner shall apply for a license not later than 30 days after
 the transfer.
        Sec. 7. (1) Fees for a person licensed or seeking licensure to
 establish or maintain and operate an adult day-care facility are as
 follows:
        (a) Application processing fee $120.00.
        (b) Facility license fee, per year $100.00.
        (2) Fees described in this section are payable to the
 department at the time an application for a license is submitted.
 If an application for a license is denied or if a license is
 revoked before its expiration date, the department shall not refund
 fees paid to the department.
        Sec. 9. (1) Beginning 12 months after the effective date of
 this act, upon a determination that an adult day-care facility is
 in compliance with this act and the rules promulgated under this
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 act, the department shall grant an initial 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 the department. If the application is considered
 incomplete by the department, the department shall notify the
 applicant in writing or make the notice electronically available
 not later than 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.
       (2) 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.
       (3) Except as otherwise provided in this subsection, if the
 department fails to grant or deny a license within the time period
 required by this section, the department shall return the license
 fee and shall reduce the license fee for the applicant's next
 licensure application, if any, by 15%. Failure to grant 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 must be placed in sequence with other
 completed applications received at that same time. The department
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 shall not discriminate against an applicant in the processing of
 the application based upon the fact that the application fee was
 refunded or discounted under this subsection.
       (4) The department, in order to protect the people of this
 state, shall provide a procedure for the orderly closing of a
 facility if it is unable to maintain its license under this act.
       (5) The department, upon finding that an adult day-care
 facility is not operating in accord with the requirements of its
 license, may issue an order directing the licensee to:
       (a) Discontinue admissions.
       (b) Transfer selected patients out of the facility.
       (c) Reduce its licensed capacity.
       (d) Comply with specific requirements for licensure as
 appropriate.
       (6) After a finding that a deficiency or violation of this act
 or the rules promulgated under this act seriously affects the
 health, safety, and welfare of individuals receiving care or
 services in or from a licensed adult day-care facility, the
 department may issue an emergency order limiting, suspending, or
 revoking the license of the adult day-care facility. The department
 shall provide an opportunity for a hearing not later than 5 working
 days after issuance of the order. An order described in this
 subsection must incorporate the department's findings. The conduct
 of a hearing under this section does not suspend the department's
 order. An order described under subsection (5) is subject to the
 notice and hearing requirements under this subsection.
       Sec. 11. (1) Except as otherwise provided in this section,
 after notice of intent to an applicant or licensee to deny, limit,
 suspend, or revoke the applicant's or licensee's license and an
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 opportunity for a hearing, the department may deny, limit, suspend,
 or revoke the license or impose an administrative fine on a
 licensee if 1 or more of the following exist:
        (a) Fraud or deceit in obtaining or attempting to obtain a
 license or in the operation of the adult day-care facility.
        (b) A violation of this act or a rule promulgated under this
 act.
        (c) False or misleading advertising.
        (d) Negligence or failure to exercise due care, including
 negligent supervision of employees and subordinates.
        (e) Permitting a license to be used by an unauthorized adult
 day-care facility.
        (f) Evidence of abuse regarding a patient's health, welfare,
 or safety.
        (2) The department may deny an application for a license based
 on a finding of a condition or practice that would constitute a
 violation of this act if the applicant were a licensee.
        Sec. 13. (1) Notice of intent to deny, limit, suspend, or
 revoke a license must be given by certified mail or personal
 service, must set forth the particular reasons for the proposed
 action, and must fix a date, not less than 30 days after the date
 of service, on which the applicant or licensee must be given the
 opportunity for a hearing before the director or the director's
 authorized representative. The hearing must be conducted in
 accordance with the administrative procedures act of 1969, 1969 PA
 306, MCL 24.201 to 24.328, and rules promulgated by the department.
 A full and complete record must be kept of the proceeding and must
 be transcribed when requested by an interested party, who shall pay
 the cost of preparing the transcript.
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       (2) On the basis of a hearing or on the default of the
 applicant or licensee, the department may grant, deny, limit,
 suspend, or revoke a license. A copy of the determination must be
 sent by certified mail or served personally upon the applicant or
 licensee. The determination becomes final 30 days after it is
 mailed or served, unless the applicant or licensee within the 30
 days appeals the decision to the circuit court in the county of
 jurisdiction or to the Ingham County circuit court.
       (3) The department may establish procedures, hold hearings,
 administer oaths, issue subpoenas, or order testimony to be taken
 at a hearing or by deposition in a proceeding pending at any stage
 of the proceeding. A person may be compelled to appear and testify
 and to produce books, papers, or documents in a proceeding.
       (4) In case of disobedience of a subpoena, a party to a
 hearing may invoke the aid of the circuit court of the jurisdiction
 in which the hearing is held to require the attendance and
 testimony of witnesses. The circuit court may issue an order
 requiring an individual to appear and give testimony. Failure to
 obey the order of the circuit court may be punished by the court as
 a contempt.
       Sec. 15. A person that violates this act or a rule promulgated
 or an order issued under this act is guilty of a misdemeanor,
 punishable by a fine of not more than $200.00 for each day the
 violation continues.
       Sec. 17. A person may notify the department of a violation of
 this act or of a rule promulgated under this act that the person
 believes exists. The department shall investigate each written
 complaint received.
       Sec. 19. The department may promulgate rules to implement this
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 act.
        Enacting section 1. This act does not take effect unless all
 of the following bills of the 102nd Legislature are enacted into
 law:
        (a)   Senate Bill No. 1025.
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        (b)   Senate Bill No. 1027.
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