January 31, 2013, Introduced by Reps. Brunner, Slavens, Smiley and Geiss and referred to the Committee on Families, Children, and Seniors.
A bill to amend 1978 PA 368, entitled
"Public health code,"
by amending sections 20142, 20199, and 21755 (MCL 333.20142,
333.20199, and 333.21755).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
20142. (1) A To obtain a
license to establish or maintain
and operate a health facility or agency in this state, a person
shall
apply for licensure an
initial license, for a new license due
to a change of ownership if applicable, for a license renewal, or
for title XVIII or for title XIX certification on a form authorized
and
provided by the department. The application applicant shall
include with the application all attachments, additional data, and
information that is required by this section and 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 for
a license under part 213 or
217
shall disclose the names, addresses, principal occupations, and
official
positions of all persons individuals
who have an ownership
interest
in the health facility or agency home for the aged or
nursing home. If the applicant for a license under part 213 or 217
is not an individual, the applicant shall disclose the name of each
entity that has an ownership interest in the home for the aged or
nursing home, the names, addresses, and official positions of all
officers and directors of the entity, and a description of the
relationship, if any, between individuals who have an ownership
interest
in the home for the aged or nursing home.
If the health
facility
or agency home for the aged
or nursing home 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. A
licensee
under part 213 or 217 proposing a change
in of ownership
shall
be reported report that
proposal in writing to the director
not
less than 15 60 days before the proposed change occurs,
except
that
a person purchasing stock of a company registered pursuant to
the
securities exchange act of 1934, 15 U.S.C. 78a to 78kk , is
exempt
from disclosing ownership in the facility. A person is to
occur. An applicant required to file a beneficial ownership report
pursuant
to under 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. A
license issued under part
213 or 217 is not transferable to any other person. The department
may revoke a license upon verification of a transfer of any
ownership interest to any other person without obtaining a new
license
as required in this subsection. The
applicant or licensee
and
the other parties to the sale change
of ownership shall arrange
to
meet with specified department representatives and shall to
obtain
before the sale a determination of the items of
noncompliance
with applicable law and rules which shall and
conditions of participation that are to be corrected before the
change of ownership occurs. The department shall notify the
respective
parties of the items of noncompliance prior to with
applicable licensing laws and rules and any medicare or medicaid
conditions of participation before the change of ownership and
shall
indicate that the items of noncompliance must be corrected as
a
condition of issuance of not
issue a license to the new owner
until all of the items of noncompliance or conditions of
participation have been corrected or, at the option of the
department, the new owner has an approved plan of correction. 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 $10,000.00
for each violation.
(4)
An Upon request, an applicant or licensee under part 217
shall disclose to the department 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
that includes a month in a nursing home's current fiscal
year.
An Upon request, an applicant or licensee shall disclose to
the department the names, addresses, principal occupations, and
official positions of all persons who have an ownership interest in
a
business which that 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 that 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) Upon request, an applicant or licensee under part 217
shall disclose to the department any information the department
considers relevant to its duties under section 21755.
(7) For the purposes of this section:
(a) "Applicant" means a person that files an application under
this section for an initial license, for a new license because of a
change in ownership if applicable, for a license renewal, or for
title XVIII or title XIX certification.
(b) "Change of ownership" means any of the following:
(i) A sale of the entity to any other person.
(ii) A change in a sole proprietorship.
(iii) A transfer of the title and property to another person in
an unincorporated sole proprietorship.
(iv) A removal, addition, or substitution of a partner in a
partnership.
(v) A merger of a corporation into another corporation.
(vi) The consolidation of 2 or more corporations resulting in a
new corporation.
(vii) A change in the membership of a limited liability
company.
(viii) A transfer of an entity to a trust or a change in a
trust.
(ix) A change of ownership of 30% or more of the stock of a
corporation.
(x) A transaction that results in the change of the person who
is the legal holder of a certificate of need for the health
facility or agency.
(c) A person is considered to have an ownership interest if
the person is any of the following:
(i) An officer of a corporation.
(ii) A member of the board of directors of a corporation.
(iii) A person that owns or acquires 5% or more of the stock of
a corporation.
(iv) A sole proprietorship.
(v) A partner.
(vi) A member of a limited liability company.
(vii) A manager of a limited liability company.
(viii) A trustee of an entity organized as a trust.
(ix) An individual or a corporation, partnership, sole
proprietorship, limited liability company, trust, or any other
entity, which individual or entity operates the health facility or
agency under a management agreement.
Sec. 20199. (1) Except as otherwise provided in subsection (2)
or section 20142, a person who violates this article or a rule
promulgated or an order issued under this article is guilty of a
misdemeanor , punishable by a fine of not more than
$1,000.00 for
each day the violation continues or, in case of a violation of
sections 20551 to 20554, a fine of not more than $1,000.00 for each
occurrence.
(2) A person who violates sections 20181 to 20184 is guilty of
a
misdemeanor , punishable
by imprisonment for not more than 6
months , or a fine of not more than $2,000.00, or both.
(3) In addition to any other penalty prescribed or remedy
provided for in this act, a person who violates section 20141 is
subject to an administrative fine of $1,000.00 per day for each day
in violation of that section. A person shall not charge or collect
from another person or otherwise collect for services provided
while in violation of section 20141. A person who has collected
fees for services while in violation of section 20141 shall without
demand refund the fees collected to the person charged for services
or, if undeliverable, shall pay the fees collected to the state
treasurer for deposit into the general fund.
Sec. 21755. The department may refuse to issue a license to
establish or maintain and operate, or both, a nursing home to an
applicant that files an application under section 20142 if any of
the following apply:
(a)
Whose The occupational, professional, or health facility
or agency license of the applicant or person with an ownership
interest has been revoked during the 5 years preceding the date of
application.
(b)
Whom the The department finds is the applicant or person
with an ownership interest not suitable to operate a nursing home
because of financial incapacity or a lack of good moral character
or
appropriate business or professional experience. As used in this
subdivision,
"good moral character" means that term as defined in
Act
No. 381 of the Public Acts of 1974, as amended, being sections
338.41
to 338.47 of the Michigan Compiled Laws.
(c) The applicant or person with an ownership interest has
filed bankruptcy or been determined bankrupt during the 5 years
preceding the date of application.
(d) A health facility or agency or other entity established,
maintained, or operated by the applicant or person with an
ownership interest was involuntarily closed or was terminated from
participation under title XVIII or title XIX.
(e) A health facility or agency or other entity established,
maintained, or operated by the applicant or person with an
ownership interest is excluded from participation as a Medicare or
Medicaid provider.
(f) The applicant or person with an ownership interest is
disqualified from being employed by, under independent contract
with, or granted clinical privileges by a health facility or agency
under section 20173a.
(g) The applicant or person with an ownership interest is a
principal of a nursing home that has been placed in receivership
during the 5 years preceding the date of application.
(h) The applicant or person with an ownership interest is a
principal of a nursing home that has had a license denied,
suspended, or revoked during the 5 years preceding the date of
application.
(i) The applicant or person with an ownership interest has
been the subject of an order enjoining an act or practice under or
an order directing compliance with any of the following:
(i) Federal conditions of participation as a Medicare or
Medicaid provider.
(ii) This act or rules promulgated under this act to establish,
maintain, or operate a nursing home.
(j) The applicant or person with an ownership interest has
been adjudged to be administratively, civilly, or criminally liable
for professional negligence, wrongful death, or for violating an
individual's civil rights under any state or federal law.
(k) The applicant or person with an ownership interest has an
unpaid debt to this state, except any debt subject to a formal
adjudication process.
(l) The applicant or person with an ownership interest has an
unpaid debt to the federal government for a civil monetary penalty,
except any civil monetary penalty subject to a formal adjudication
process.
(m) The applicant or person with an ownership interest has an
unpaid debt or assessment levied by the internal revenue service
during the 5 years preceding the date of application.
(n) The applicant or person with an ownership interest has an
unpaid determination for the payment of wages and benefits under
1978 PA 390, MCL 408.471 to 408.490, except for a determination
that is under review as prescribed in section 11 of 1978 PA 390,
MCL 408.481.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. 4159(request no.
01296'13) of the 97th Legislature is enacted into law.