Bill Text: MI HB6075 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Health facilities; licensing; change of ownership interest in nursing home or home for the aged; revise notification requirements and licensing requirements. TIE BAR WITH: HB 6076'12

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2012-12-05 - Printed Bill Filed 12/05/2012 [HB6075 Detail]

Download: Michigan-2011-HB6075-Introduced.html

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HOUSE BILL No. 6075

 

December 4, 2012, Introduced by Reps. Slavens, Switalski and Brunner and referred to the Committee on Health Policy.

 

     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 health facility or agency shall apply for

 

licensure an initial license, for a new license due to a change of

 

ownership, for a license renewal, or for title XVIII or for title

 

XIX certification on a form authorized and provided by the

 

department. The application shall include attachments, additional

 

data, and information 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 for an initial license, for a new license due

 

to a change of ownership, or for a licensee license renewal 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 an initial

 

license, for a new license due to a change of ownership, or for a

 

license renewal under part 213 or 217 is not an individual, the

 

applicant shall disclose the name of the entity and the names,

 

addresses, and official positions of all officers and directors of

 

any entity that has an ownership interest in the home for the aged

 

or nursing home and a description of the relationship, if any,

 

between individuals with 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 change in ownership shall be reported

 

in writing to the director not less than 15 60 days before the

 

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 required to file a beneficial ownership report

 

pursuant according to 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 who

 

seeks to obtain or purchase an ownership interest in the facility

 

and is subject to revocation upon verification of the transfer of

 

any ownership interest to any other person. The persons proposing

 

to obtain or purchase an ownership interest in a home for the aged

 

or a nursing home shall apply for licensure on a form and in the

 

manner prescribed by the department. 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 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) "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.

 

     (b) A person is considered to have an ownership interest if

 

they are 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 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. While in violation of section 20141,

 

a person shall not charge to 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 refund, without demand, fees

 

collected while in violation of that section to the person charged

 

for services or, if undeliverable, shall pay fees collected while

 

in violation of that section 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 or licensee or to an applicant or licensee that discloses

 

a person with an ownership interest in the nursing home under

 

section 20142, if any of the following apply:

 

     (a) Whose The occupational, professional, or health facility

 

or agency license of the applicant, licensee, 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, licensee,

 

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

 

section 1 of 1974 PA 381, MCL 338.41.

 

     (c) The applicant, licensee, 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, licensee, 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, licensee, or person with

 

an ownership interest is excluded from participation as a Medicare

 

or Medicaid provider.

 

     (f) The applicant, licensee, 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, licensee, 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, licensee, 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, licensee, 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, licensee, 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, licensee, 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, licensee, 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, licensee, 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, licensee, 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. 6076(request no.

 

06484'12) of the 96th Legislature is enacted into law.