SUBSTITUTE FOR

SB-0713, As Passed House, June 10, 2014

SUBSTITUTE FOR

SENATE BILL NO. 713

A bill to amend 1974 PA 258, entitled

"Mental health code,"

by amending section 226 (MCL 330.1226), as amended by 2009 PA 103.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 226. (1) The board of a community mental health services

program shall do all of the following:

(a) Annually conduct a needs assessment to determine the

mental health needs of the residents of the county or counties it

represents and identify public and nonpublic services necessary to

meet those needs. Information and data concerning the mental health

needs of individuals with developmental disability, serious mental

illness, and serious emotional disturbance shall be reported to the

department in accordance with procedures and at a time established

by the department, along with plans to meet identified needs. It is

the responsibility of the community mental health services program

to involve the public and private providers of mental health

services located in the county or counties served by the community

mental health program in this assessment and service identification

process. The needs assessment shall include information gathered

from all appropriate sources, including community mental health

waiting list data and school districts providing special education

services.

(b) Annually review and submit to the department a needs

assessment report, annual plan, and request for new funds for the

community mental health services program. The standard format and

documentation of the needs assessment, annual plan, and request for

new funds shall be specified by the department.

obtain approval of its needs assessment, annual plan and budget,

and request for new funds from the board of commissioners of each

participating county before submission of the plan to the

department. In the case of a community mental health organization,

provide a copy of its needs assessment, annual plan, request for

new funds, and any other document specified in accordance with the

terms and conditions of the organization's inter-local agreement to

the board of commissioners of each county creating the

organization. In the case of a community mental health authority,

provide a copy of its needs assessment, annual plan, and request

for new funds to the board of commissioners of each county creating

the authority.

(d) Submit the needs assessment, annual plan, and request for

new funds to the department by the date specified by the

department. The submission constitutes the community mental health

services program's official application for new state funds.

(e) Provide and advertise a public hearing on the needs

assessment, annual plan, and request for new funds before providing

them to the county board of commissioners.

(f) Submit to each board of commissioners for their approval

an annual request for county funds to support the program. The

request shall be in the form and at the time determined by the

board or boards of commissioners.

(g) Annually approve the community mental health services

program's operating budget for the year.

(h) Take those actions it considers necessary and appropriate

to secure private, federal, and other public funds to help support

the community mental health services program.

(i) Approve and authorize all contracts for the provision of

services.

(j) Review and evaluate the quality, effectiveness, and

efficiency of services being provided by the community mental

health services program. The board shall identify specific

performance criteria and standards to be used in the review and

evaluation. These shall be in writing and available for public

inspection upon request.

(k) Subject to subsection (3), appoint an executive director

of the community mental health services program who meets the

standards of training and experience established by the department.

(l) Establish general policy guidelines within which the

executive director shall execute the community mental health

services program.

(m) Require the executive director to select a physician, a

registered professional nurse with a specialty certification issued

under section 17210 of the public health code, 1978 PA 368, MCL

333.17210, or a licensed psychologist to advise the executive

director on treatment issues.

(2) A community mental health services program may do all of

the following:

(a) Establish demonstration projects allowing the executive

director to do 1 or both of the following:

(i) Issue a voucher to a recipient in accordance with the

recipient's plan of services developed by the community mental

health services program.

(ii) Provide funding for the purpose of establishing revolving

loans to assist recipients of public mental health services to

acquire or maintain affordable housing. Funding under this

subparagraph shall only be provided through an agreement with a

nonprofit fiduciary.

(b) Carry forward any surplus of revenue over expenditures

under a capitated managed care system. Capitated payments under a

managed care system are not subject to cost settlement provisions

of section 236.

community mental health services program's state share of the

operating budget for the fiscal years ending September 30, 2009,

2010, and 2011. As used in this subdivision, "operating margin"

means the excess of state revenue over state expenditures for a

single fiscal year exclusive of capitated payments under a managed

care system. In the case of a community mental health authority,

this carryforward is in addition to the reserve accounts described

in section 205(4)(h).

(d) Pursue, develop, and establish partnerships with private

individuals or organizations to provide mental health services.

(e) Share the costs or risks, or both, of managing and

providing publicly funded mental health services with other

community mental health services programs through participation in

risk pooling arrangements, reinsurance agreements, and other joint

or cooperative arrangements as permitted by law.

(f) Enter into agreements with other providers or managers of

health care or rehabilitative services to foster interagency

communication, cooperation, coordination, and consultation. A

community mental health services program's activities under an

agreement under this subdivision shall be consistent with the

provisions of section 206.

(3) In the case of a county community mental health agency,

the initial appointment by the board of an individual as executive

director is effective unless rejected by a 2/3 vote of the county

board of commissioners within 15 calendar days.

(4) A community mental health services program that has

provided assisted outpatient treatment services during a fiscal

year may be eligible for reimbursement if an appropriation is made

for assisted outpatient treatment services for that fiscal year.