DEPARTMENT OF COMMUNITY HEALTH

                          LEGISLATION AND POLICY

                           CERTIFICATE OF NEED


(By authority conferred on the department of  public   health   by   sections 
2226, 2233, 22106, 22123, and 22135 of Act No. 368 of the  Public   Acts   of 
1978, as amended, and section 9 of Act No. 380 of the Public Acts of 1965, as 
amended, being SS333.2226, 333.2233, 333.22106,  333.22123,   333.22135,  and 
16.109 of the Michigan Compiled Laws)


                        PART 1. GENERAL PROVISIONS


R  325.9101   Definitions; A to F.
  Rule 101. As used in these rules:
  (a) "Applicant" means the person applying for a certificate of need.
  (b) "Application" means the forms provided by the   department   that   are 
currently in effect and any information or  documentation   prespecified   in 
the forms to be provided as attachments or   supplements.   The   application 
provided by the department shall  be  developed   after   consultation   with 
representatives of  regional  certificate  of  need   review   agencies   and 
facilities and agencies subject to certificates of need.
  (c) "Appropriate regional certificate of need review  agency"   means   the 
regional certificate of need review agency designated   by   the   department 
pursuant to section 22226 of the code  within   whose   geographical   review 
area a project is proposed to be located.
  (d) "Bureau" means the administrative unit of the department  designated by 
the director as responsible for the certificate of need program.
  (e) "Code" means Act No. 368 of the Public Acts  of   1978,   as   amended, 
being S 333.1101 et seq. of the Michigan Compiled Laws.
  (f) "Comparative group" means the applications which  have   been   grouped 
for the same type of project in the same planning area and  which  are  being 
reviewed comparatively in accordance with these rules.
  (g) "Completed application," except as provided in R  325.9229,  means  the 
application  submitted  by  the  applicant,    including    any    additional 
information  provided  by  the  applicant  on  or  before   the   date    the 
application is deemed complete pursuant to R 325.9201(3).  An  applicant  may 
request, and the department may allow, the submission  of  information  after 
the date the application is deemed complete  if  the   application   is   not 
subject to comparative review and if the applicant authorizes an extension to 
the date a decision must be issued.
  (h) "Completed project" means a project for  which   the   department   has 
determined both of the following:
  (i)  That  all  activities  and  construction  necessary   to   offer   the 
services, beds, facilities, or equipment approved by a  certificate  of  need 
have been executed in compliance with the  terms  and   conditions   of   the 
certificate of need.
  (ii) That the project has been implemented as defined in R  325.9103(b).
  (i) "Force account" means an account established by a  formal   action   of 
the governing board of a health care facility to commit its own funds  for  a 
construction project undertaken by the  health  care   facility   where   the 
construction is managed and supervised by the health  care  facility   acting 
through its own employees  or  officers  and  where   the   construction   is 
performed by employees of the health care facility and not by  contractors or 
subcontractors.

  History:  1986 AACS; 1996 AACS.


R  325.9103   Definitions; I, L.
  Rule 103. As used in these rules:
  (a) "Incur an obligation" means entering into either of  the  following:
  (i) An enforceable contract  or  contracts  or  force   account   for   the 
construction  of,  or  an  enforceable  contract  or   contracts   for    the 
acquisition, lease, or financing of,  all  or  substantially   all   of   the 
project, as determined by the department.
  (ii) An enforceable contract or  contracts  or  force   account   for   the 
construction of, or an enforceable contract for the  acquisition,  lease,  or 
financing of, a phased project. A phased project is a project accomplished in 
segments over a period of time  in  compliance  with  a   project   timetable 
acceptable to the department and approved in the certificate of need.
  (b) "Implement," except as provided in R 325.9403(4),  means   1   of   the 
following, as applicable:
  (i) For a project that involves any of the following,  the  performance  of 
the first surgical  procedure  or  the  treatment  of   the   first   partial 
hospitalization psychiatric patient, as applicable:
  (A) Extrarenal transplantation.
  (B) Open heart surgery.
  (C) Partial hospitalization psychiatric program services.
  (ii) For a project that involves any of the following, the  signing  of  an 
enforceable contract for the acquisition of the equipment:
  (A) Extracorporeal shock wave lithotripsy.
  (B) Megavoltage radiation therapy.
  (C) Positron emission tomography (PET) scanning.
  (D) Computed tomography (CT) scanning.
  (E) Cardiac catheterization.
  (F) Magnetic resonance imaging (MRI).
  (G) Air ambulance services.
The enforceable contract shall specify that the installation  date   of   the 
equipment shall be within 24  months  after  the  effective   date   of   the 
certificate of need.
  (iii) For a project that involves nursing home,  hospital,  or  psychiatric 
beds; hospital beds used to provide  neonatal   intensive   care,   including 
special newborn nursing services; or surgical services, the  signing  of   an 
enforceable contract for  the  construction,   renovation,   or   acquisition 
necessary to develop space to  house  the  beds  or   operating   rooms,   as 
applicable, or the licensure or certification of  the   beds   or   operating 
rooms for use, whichever occurs first.
  (iv) For  a  project  that  involves  capital   expenditures   other   than 
projects specified in paragraphs (i) to (iii) of this  subdivision,  when  an 
obligation is incurred or, if the certificate of need  expressly  defines   a 
series of obligations for discrete components to be incurred over a period of 
more than 1 year, when the designated obligations are incurred.
  (v) For a project that  involves  the  acquisition   of   licensed   health 
facilities, the issuance of  a  new  license  by  the   department   or   the 
Michigan department of mental health.
  (vi) For a project that is not specified in paragraphs  (i)   to   (v)   of 
this subdivision, the occurrence of the implementation event  as  defined  in 
the applicable certificate of need review standards.
  (c) "Letter of  intent"  means  the  form  used  by   the   department   to 
determine the appropriate application forms for a proposed project.

  History:  1986 AACS; 1996 AACS.


R  325.9105   Definitions; N to S.
  Rule 105. As used in these rules:
  (a) "Nonsubstantive review" means  review  of  a   project   accepted   for 
review under R 325.9205 and R 325.9206.
  (b) "Offer," for purposes of section 22205(3)  of  the   code,   means   to 
perform a procedure or serve a patient, as applicable, as  authorized  by   a 
certificate of need. "Offer" does not  necessarily   mean   full   compliance 
with the terms, stipulations, or conditions to an  approved  certificate   of 
need.
  (c) "Operating costs" means any of the following costs  incurred   by   the 
applicant:
  (i) Salaries and wages.
  (ii) Employee benefits.
  (iii) Professional fees.
  (iv) General supplies and materials.
  (v) Purchased services.
  (vi) Other costs that, under generally  accepted   accounting   principles, 
are not properly chargeable as capital costs.
  (d)  "Predevelopment  expenditure"  means  an   expenditure   for   limited 
studies, surveys, and other documentation necessary   for   the   preparation 
and filing of a certificate of need application.  Limited  studies,  surveys, 
and documentation shall be  differentiated  from   extensive   and   specific 
studies, surveys, designs, plans, working   drawings,   specifications,   and 
other  activities  necessary  to  implement  the  project   for   which   the 
certificate of need application is sought.
  (e) "Qualifying project" means each application in  a   comparative   group 
which has been reviewed individually and which has been  determined  by   the 
department to have satisfied all of the requirements of  section   22225   of 
the code, all other applicable requirements for approval in  the   code   and 
all applicable certificate of need review standards.
  (f) "Regional certificate  of  need  review  agency"   means   the   agency 
designated by the department pursuant to section 22226 of the code.
  (g) "Single project" means an activity for which a certificate  of  need is 
required or, in the case of a capital expenditure,  an  activity  or  a group 
of activities involving a distinct  physical  area  or  areas  of   a  health 
facility  or  involving  the  same  service  or  services  or  department  or 
departments.

  History:  1986 AACS; 1996 AACS.


R  325.9109   Terms  defined  in  code  and  certificate   of   need   review 
standards; establishment of certificate of need review standards.
  Rule 109. (1) Terms defined in the code and certificate  of   need   review 
standards have the same meanings when used in these rules.
  (2)  All  certificate  of  need  review   standards    used    in    making 
determinations on applications under  these  rules   shall   be   established 
pursuant to law.

  History:  1986 AACS; 1996 AACS.


R  325.9121   Computation of time deadline.
  Rule 121. If any time deadline falls on a nonworking  day,   the   deadline 
shall be extended to the next department working day.

  History:  1986 AACS; 1996 AACS.


R  325.9123   Designated application dates.
  Rule 123. (1) The designated application date is the date   on   which   an 
application shall  be  considered  as  submitted  to   the   department   for 
purposes of commencing the review of a certificate of  need  application.  An 
application received at the department's Lansing offices after 5  p.m.  on  a 
designated application date shall not be considered timely   and   shall   be 
deemed submitted on the next designated application date.
  (2) For an applicant seeking a nonsubstantive review   under   R   325.9205 
and R 325.9206, the designated application date shall   be   the   department 
working day on which the application is received by the department.
  (3) For an application that is not eligible   for   nonsubstantive   review 
and not subject to comparative review,  the   designated   application   date 
shall be the first department working day of each month.
  (4) For an application  that  is  subject  to   comparative   review,   the 
designated application dates shall be February 1, June 1, and  October  1  of 
each year.

  History:  1986 AACS; 1996 AACS.


R  325.9125   Extensions.
  Rule 125. The department may grant an extension to the date  a  proposed or 
final decision shall be issued for  an  application  either  pursuant  to   R 
325.9229 or upon receipt of a  written  request  from   an   applicant   that 
specifies either a date or number of days being requested   if,   in   either 
case, all of the following requirements, as applicable, are met:
  (i) The extension will not result in a delay in the start of the  review of 
 similar   applications    filed    subsequently    as    provided    by    R 
325.9207(2)(a).
  (ii) If an application is subject to comparative review, all  applicants in 
the comparative group request an extension of the same duration.
  (iii) The extension requested is for not less than 30 days,  but  not  more 
than 90 days.

  History:  1986 AACS; 1996 AACS.


                       PART 2. APPLICATIONS; REVIEWS

R  325.9201   Letters of intent; applications;  forms;  copies;   attachments 
and   supplements;    content;    completeness;    additional    information; 
department's authority to  consider   relevant   information   not   limited; 
notification of information considered relevant.
  Rule 201. (1) A person applying for a certificate of need  for  a  project, 
except for projects that are covered by section 22235 of  the   code,   shall 
simultaneously submit a  letter  of  intent  to  the   department   and   the 
appropriate regional certificate of need  review  agency.   The   letter   of 
intent shall be on a form supplied by the department. Within   15   days   of 
receipt of a letter of intent, the department, after  consultation  with  the 
appropriate regional certificate of need review agency,  shall   notify   the 
person proposing the project of whether the project requires a certificate of 
need and, if so, shall provide  the  applicant  with  appropriate  forms.  An 
application form supplied by the department may be submitted at any  time.
A person may request an informational copy of an application  form   at   any 
time. A letter of intent shall expire  if  an  application   has   not   been 
submitted to the department 1 year after receipt of the letter  of  intent by 
the department. The department also  shall  provide  the  applicant  and  any 
person requesting certificate of need review standards with a  copy  of   the 
current work plan of the certificate of need  commission.   The   work   plan 
shall indicate  the  timing  by  which  the  certificate   of   need   review 
standards are being  revised  or  are  scheduled  to  be   revised   by   the 
commission, an explanation of when and how the work  plan   is   periodically 
modified by the commission, and how an individual can be  notified   of   all 
commission meetings.
  (2) At the time of submission of an application, a person  applying  for  a 
certificate of need shall simultaneously submit 3 copies   of   a   completed 
application for a single project to the department and  not   more   than   3 
additional copies as required by the appropriate  regional   certificate   of 
need review agency. An application shall not be   considered   submitted   to 
the  department  until  it  is  submitted  to   the   appropriate    regional 
certificate of need review agency. For mental health services, 4 copies of  a 
completed application shall be submitted. The application shall be   made  on 
the application forms authorized  and  provided  by   the   department.   The 
application forms may include requirements for  attachments  and  supplements 
specified by  the  department  in  the  forms.  An   applicant   may   submit 
information prepared or collected for other purposes as  an  attachment.   An 
application shall clearly state the persons, buildings,  and  properties   to 
which it applies and clearly define the scope, nature,  cost,  time   limits, 
and other aspects of the proposal in the data included  in   and   with   the 
application as specified by the department in  the   application   forms.   A 
letter of intent, application, or an amendment to an approved  certificate of 
need shall be accompanied by the fee, if any, required by law.  A  letter  of 
intent or an amendment not accompanied by the  required  fee,  if  any, shall 
not be processed by the department until  the  required  fee,   if   any,  is 
received. An application not accompanied by the required fee  shall   not  be 
considered timely and shall be  deemed  submitted  on  the  next   designated 
application date after receipt of the required fee.
  (3) The department shall consider only those applications that are filed on 
or before the designated application date  and,  with  the  advice   of   the 
appropriate regional certificate of need review   agency,   shall   determine 
whether the application is complete or incomplete.   The   department   shall 
provide  notification  of  a  determination  to  the   applicant   and    the 
appropriate regional certificate of need review agency within  15   days   of 
receipt of the application. The applicant shall have 15 days from  receipt of 
the department's notice  to  provide  additional  information  or   otherwise 
complete the application. If additional information is   not   requested   by 
the department or the appropriate  regional  certificate   of   need   review 
agency, the department shall consider the application to   be   complete   as 
submitted by the applicant on or before the designated  application  date.
If additional information is requested, the department  shall  consider   the 
application to be complete as submitted by the applicant on  or  before   the 
designated application date with the addition of any information  provided by 
the applicant on or before the end of  the  time  period  for  submission  of 
additional information established in this subrule.
  (4) The department, within 15 days of the  designated   application   date, 
shall have the  right  to  request  additional   information   regarding   an 
individual application to assist in  determining   whether   substantive   or 
nonsubstantive review is  indicated  and  to  assist   in   determining   the 
necessity  for  comparative  review.  When   the    additional    information 
requested is not provided within 15 days or is inadequate,  as  determined by 
the department, the department shall   make   a   decision   based   on   the 
information available.
  (5) This rule shall not limit the department's authority  to  consider  all 
available  information  relevant  to  the  department's    review    of    an 
application.
  (6) The department's review  shall  be  conducted   using   the   completed 
application and other information relevant to the decision  and  pursuant  to 
all applicable provisions in the certificate of need  review  standards   and 
the code, including information which becomes   available   or   developments 
which occur after the date  an  application  is   deemed   complete.   Before 
issuing a proposed decision, the bureau shall notify an  applicant  of  other 
information upon which it relied in conducting the  department's  review.  If 
the  department  relies  on  information,  other  than   submitted   by   the 
applicant in its application, the bureau or department shall  cite   in   the 
proposed or final decision letter, as  applicable,   what   information   was 
relied on. The department shall make all other   information   available   to 
the public upon request.

  History:  1986 AACS; 1996 AACS.


R  325.9203   Determination of covered capital expenditures.
  Rule 203. (1) For purposes of determining whether a capital  expenditure is 
a covered capital expenditure in excess of  the  threshold  for  review under 
the code, predevelopment expenditures shall not be included.
  (2) A site acquisition or a donation shall not be  considered   a   covered 
capital expenditure until it is dedicated  to  be  used   to   undertake   an 
activity for which a certificate of need is required.

  History:  1986 AACS; 1996 AACS.


R  325.9204  Data commitments.
  Rule 204.  If a certificate of need review standard requires the commitment 
of Michigan inpatient data base information, in order for the  department  to 
consider a data  commitment,  the  hospital  committing  the  data  shall  be 
regularly admitting patients and  providing  services  as  of  the  date  the 
director makes the final decision on an application under  section  22231  of 
the code.  Further, the department  shall  not  consider  any  commitment  of 
Michigan  inpatient  data  base  information  if  a  hospital  withdrew   its 
commitment before the final decision on an application.

  History:  1996 AACS.


R  325.9205   Nonsubstantive reviews; eligibility.
  Rule  205.  (1)  A  person  may  submit  an   application   requesting    a 
nonsubstantive certificate of need  review  on  a  form   supplied   by   the 
department.
  (2) The department, with the consultation of   the   appropriate   regional 
certificate  of  need  review  agency,  shall  approve   the    request    as 
appropriate when the department is satisfied,  based   on   the   information 
supplied on the form supplied by the department and  other  information  made 
available to it, that all of the following conditions have been met:
  (a) The completed project will not result in any of the following:
  (i) An increase in the number of beds licensed to the  applicant   at   the 
licensed site at which the project is proposed.
  (ii) The initiation or expansion of a covered clinical service.
  (iii) Beginning operation of a new health facility at a site  that  is  not 
currently licensed for that type of health facility.
  (iv) A covered capital  expenditure  in  excess  of   a   covered   capital 
expenditure as defined in the code.
  (b)  The  completed  project  will  meet  an   already   demonstrated   and 
established need as provided by section 22225(1) of the code.
  (c) The proposed project is not subject to comparative  review  pursuant to 
the code or the applicable certificate of need review standards.
  (3) The department shall have the right to  accept   other   projects   for 
nonsubstantive  review  pursuant  to  section  22233  of   the   code.    The 
department shall maintain, and provide a copy of on request, a  list  of  the 
types of projects eligible for nonsubstantive review under this rule.

  History:  1986 AACS; 1996 AACS.


R  325.9206   Nonsubstantive review; procedure; time  for  decision;  notice; 
effect of denial of request for   review;   department   decision   to   deny 
review not subject to administrative  appeal;  review  period;  submittal  of 
regional certificate of need review agency's recommendations.
  Rule 206. (1) The department shall, after  seeking  the   advice   of   the 
appropriate regional certificate of need review agency, determine  whether an 
application requesting nonsubstantive review is complete  as  provided  by  R 
325.9201(3) and shall concurrently  determine  whether  the  application   is 
accepted for  nonsubstantive  review.  The  department   shall   notify   the 
applicant of its  decision  and  send  a  copy  of  the   decision   to   the 
appropriate regional certificate of need review  agency.   The   department's 
decision to deny nonsubstantive review of a  project  is   not   subject   to 
administrative hearing or appeal.
  (2) If a request for nonsubstantive review is   denied,   the   application 
shall be deemed submitted for the purposes of substantive   review   on   the 
date  of  denial  and  the  time  frames  to   determine   completeness   for 
substantive review shall be those set forth in R 325.9201(3).
  (3) The period for the review of a nonsubstantive application  shall  be 45 
days from the date   the   application   is   accepted   for   nonsubstantive 
review by the department. The appropriate  regional   certificate   of   need 
review  agency  shall  submit  its  recommendations  with   respect   to    a 
nonsubstantive application within 30 days after the date  the  application is 
accepted for nonsubstantive  review   by   the   department   so   that   the 
recommendations can be included in the department's review process. If new or 
revised certificate of need  review  standards  applicable  to   a   proposed 
project become effective before the issuance of a final   decision   by   the 
director of the department, the review and issuance of  proposed  and   final 
decisions shall be made in accordance with the provisions of  R  325.9229.
  (4) The department's review  shall  be  conducted   using   the   completed 
application and other information relevant to the decision  and  pursuant  to 
all applicable provisions in the certificate of need  review  standards   and 
the code, including information which becomes   available   or   developments 
which occur after the date  an  application  is   deemed   complete.   Before 
issuing a proposed decision, the bureau shall notify an  applicant  of  other 
information upon which it relied in conducting the  department's  review.  If 
the  department  relies  on  information,  other  than   submitted   by   the 
applicant in its application, the bureau or department shall  cite   in   the 
proposed or final decision letter, as  applicable,   what   information   was 
relied on. The department shall make all other   information   available   to 
the public upon request.

  History:  1986 AACS; 1996 AACS.


R  325.9207   Procedures for substantive individual  or  comparative  project 
review; scheduling of reviews.
  Rule 207. (1) Projects subject to comparative review  shall  be  designated 
pursuant to the provisions of section 22229 of the code  or  the   applicable 
certificate of need review  standards.  Proposed  projects   that   are   not 
subject to comparative review and  are  not   eligible   for   nonsubstantive 
review shall be  subject  to  substantive  individual   review   under   this 
subrule and not subrule (2)  of  this  rule.  The  bureau   shall   issue   a 
proposed decision on a certificate of need  application   within   120   days 
after an application is deemed completed pursuant to   R   325.9201(3).   The 
appropriate regional certificate of need review  agency  shall   concurrently 
review the application and submit its recommendations   to   the   department 
within 90 days after the date the department determines  the  application  is 
complete  and  the  review  period  has  commenced.  If   new   or    revised 
certificate of need review standards  applicable  to   a   proposed   project 
become effective before the issuance of a final decision by  the  director of 
the department, the review and issuance of proposed and final decisions shall 
be made in accordance with R 325.9229. A review  shall  commence  on the date 
 an  application  is  deemed  complete  by  the  department.  The department, 
with the advice of the regional  certificate  of  need  review agency,  shall 
determine if an application filed by  each  applicant  meets  all  applicable 
requirements for approval under part 222 of the code.
  (2) Both of the following provisions shall apply to  projects  subject   to 
comparative review:
  (a) Within 30 days after the date  that  all  of   the   applications   are 
deemed complete, the  department,  with  the  advice   of   the   appropriate 
regional certificate  of  need  review  agency,  shall   place   the   timely 
applications into comparative groups  and  shall   notify   the   appropriate 
regional certificate of need review agency and each  applicant   of   whether 
each  comparative  group  will  be  subject  to   comparative   review.   For 
comparative reviews, the review period shall commence on the  date   of   the 
notice under this subrule, except that where  a  proposed   decision   on   a 
prior review of similar projects, services,  or  facilities   in   the   same 
planning area has not yet been issued by the  bureau,   the   review   period 
shall commence only upon the issuance of the bureau's  proposed  decision  on 
such prior review. Applications which are subject  to   the   provisions   of 
this subrule and which are not subject  to  comparative   review   shall   be 
reviewed individually in the same manner  as  a   project   submitted   under 
subrule (1) of this rule, with the 120-day and   concurrent   90-day   review 
periods commencing on the date on which the department  determines  that  the 
applications are not subject to comparative review.  For   each   comparative 
group subject to comparative review, the notice shall also  include  all   of 
the following findings by the department:
  (i) The projections of  need  for  the  proposed   facilities,   beds,   or 
services.
  (ii) That the total  proposed  facilities,  beds,  or   services   in   the 
comparative group is more than the projections of need.
  (iii) That the applications, when taken together, are mutually exclusive in 
that, under existing certificate of need review standards, the approval of  1 
or more of the applications will necessarily result in the denial   of  other 
applications.
  (b)  If,  upon  review  under  subdivision  (a)  of   this   subrule,   the 
department determines that an application could  fall  into   more   than   l 
comparative  group,  the  department  shall  notify   the   applicant.    The 
applicant shall notify the department that the project is  amended  so   that 
the proposed project involves only  services,   facilities,   equipment,   or 
beds relative to a single comparative group or notify  the  department   that 
the project in its entirety is withdrawn. If  the   applicant   advises   the 
department that it is amending  the   application,   additional   information 
related  to  the  amendment  may  be  submitted  in   accordance   with   the 
provisions of  R  325.9201(3).  In  the  absence  of   notification   by   an 
applicant, the original application shall be subject to comparative review in 
the comparative group determined by the department and the  portion   of  the 
application involving the other comparative group or  groups  shall   not  be 
considered by the department in  its   review   of   the   application.   The 
applicant  may  submit,  in  accordance  with  these   rules,   a    separate 
application for the portion of the application not being considered.
  (3) This rule shall not limit the department's authority  to  consider  all 
available  information  relevant  to  the  department's    review    of    an 
application.
  (4) The department's review  shall  be  conducted   using   the   completed 
application and other information relevant to the decision  and  pursuant  to 
all applicable provisions in the certificate of need  review  standards   and 
the code, including information which becomes   available   or   developments 
which occur after the date  an  application  is   deemed   complete.   Before 
issuing a proposed decision, the bureau shall notify an  applicant  of  other 
information upon which it relied in conducting the  department's  review.  If 
the  department  relies  on  information,  other  than   submitted   by   the 
applicant in its application, the bureau or department shall  cite   in   the 
proposed or final decision letter, as  applicable,   what   information   was 
relied on. The department shall make all other   information   available   to 
the public upon request.

  History:  1986 AACS; 1987 AACS; 1996 AACS.


R  325.9208   Comparative reviews; procedures.
  Rule 208. (1) For a comparative group, the department, with  the  advice of 
the regional certificate  of   need   review   agency,   shall   review   the 
applications within  the  comparative  group  pursuant   to   the   following 
procedure:
  (a) A regional certificate of  need  review   agency   shall   concurrently 
review the applications and submit its recommendations to  the  department as 
soon as practicable, but not later than 90 days after  the   notification  of 
the start of a comparative review.
  (b) The bureau shall concurrently review and  issue   a   single   proposed 
decision regarding the applications in the comparative group   as   soon   as 
practicable, but not later than 120 days after notification of  the  start of 
a comparative review. If new  or   revised   certificate   of   need   review 
standards applicable to a proposed project  become   effective   before   the 
issuance of a final decision by the director of the  department,  the  review 
and issuance of proposed and final decisions shall be  made   in   accordance 
with the provisions of R 325.9229.
  (c) The bureau, with the advice of  the  regional   certificate   of   need 
review agency, shall determine if the application filed  by  each   applicant 
meets all applicable requirements for approval under part 222 of the code.
  (d) The bureau shall rank all qualifying  projects   in   the   comparative 
group as provided by the applicable certificate of  need   review   standards 
and  shall  issue  a  single  proposed  decision  to   approve   only   those 
applications ranked highest that, in total, do not exceed the  needs  of  the 
population as determined by section 22225(1) of the   code.   The   remaining 
applications  in  the  comparative  group  shall  be   issued   a    proposed 
disapproval as part of the single decision.
  (2) The provisions of this rule  and  R  325.9207  shall   not   apply   to 
certificates of need applied for and issued under sections 22233 and 22235 of 
the code.

  History:  1986 AACS; 1996 AACS.


R  325.9215   Amendments to applications before  a   proposed   decision   is 
issued by the bureau.
  Rule 215. (1) An application scheduled for comparative review shall  not be 
amended after the designated  application  date  established  pursuant  to  R 
325.9123, except to the extent that additional information  is  requested  by 
the department to make the application complete pursuant to R 325.9201  or  R 
325.9229(6) or as provided for in R  325.9207(2)(b).  A  person  desiring  to 
amend an application shall have the choice of withdrawing the amendment or

having the project considered under a  new  application   on   a   subsequent 
designated application date.
  (2) An application that is not subject  to  comparative   review   may   be 
amended by the applicant up to 30 days in advance of  the  proposed  decision 
date established by these rules. If the department, with the  advice  of  the 
appropriate regional certificate of need review   agency,   determines   that 
the proposed amendment substantially changes the  original  application   and 
that additional review by the department and the  regional   certificate   of 
need review agency is required to  adequately  evaluate   the   proposal   in 
accordance with the code and these rules, the department shall require, as  a 
condition of the amendment, that the applicant agree to extend the  date  for 
proposed decision as required to permit the additional review.
  (3) The department may consider new or revised information submitted  by an 
applicant,  for  an  application  that   is   not   being   reviewed   on   a 
comparative basis, within 30 days of the proposed decision date,  or  at  any 
time after the proposed decision and before a final decision is issued, if an 
applicant requests an extension to  the  proposed  or  final  decision   date 
sufficient  to  allow  the  department,  and   the    appropriate    regional 
certificate review agency, up to 30 days to  review  the   new   or   revised 
information. The  department  may  request  from  an   applicant   a   longer 
extension, if  necessary,  to  review  new  or   revised   information.   The 
applicant shall also simultaneously submit the new or revised  information to 
the  appropriate  regional   certificate   of   need   review   agency.   The 
department shall make the new or  revised  information   available   to   the 
public upon request.
  (4) If an applicant for a project not originally  subject  to   comparative 
review proposes to amend the application in such  a  way  as   to   make   it 
subject to a comparative review, the applicant shall be   notified   of   the 
need for comparative review and shall have the choice  of   withdrawing   the 
amendment or having the project considered under a new   application   on   a 
subsequent designated application date.

  History:  1986 AACS; 1996 AACS.


R  325.9227   Emergency review;  request;  denial;   submission   of   formal 
application.
  Rule 227. (1) A request for an  emergency  certificate   of   need   review 
under section 22235  of  the  code  may  be  made  by   telegram   or   other 
abbreviated written form. The request shall include  justification  for   the 
project and a statement of the nature and extent of the claimed emergency.
  (2) If the department determines that a request filed under subrule  (1) of 
this rule is not covered by section 22235  of   the   code,   it   shall   so 
inform the applicant, in writing, within 10 working days of  receipt  of  the 
request and shall deny the  request  for  emergency   review.   Pursuant   to 
section 22235 of the code, an applicant for a   project   granted   emergency 
approval shall submit a formal  application  for  a   certificate   of   need 
within 30 days of the requested emergency review.

  History:  1986 AACS; 1996 AACS.


R 325.9229  New or revised certificate of need review standards  approved  by 
certificate of need commission.
  Rule 229.  (1) Pursuant to section 22215(4) of the  code,  new  or  revised 
certificate of need review  standards  shall  apply  to  the  review  of  all 
certificate of need applications for which the director of the department has 
not issued a final decision as of the effective date of the  new  or  revised 
certificate of need review standards.
  (2) Applications pending a final decision by the director of the department 
at the time new or  revised  certificate  of  need  review  standards  become 
effective shall be considered as having been submitted subject to the new  or 
revised certificate of need  review  standards  and  shall  be  processed  in 
accordance with subrule (3), (4), (5), or (6) of this rule, as applicable.
  (3) If an application is being reviewed on a substantive  individual  basis 
and the bureau has not issued a proposed decision as  all  of  the  effective 
date of the  new  or  revised  certificate  of  need  review  standards,  the 
applicant, within 15 days of  the  effective  date  of  the  new  or  revised 
certificate of needed review standards, may request, and the department shall 
grant, an extension of the date by which a proposed decision must  be  issued 
by the bureau under these rules and the code.  During the  extension  period, 
the applicant may submit to  the  department  and  the  appropriate  regional 
certificate of need review agency, additional information to demonstrate that 
the application is in compliance with the new or revised certificate of  need 
review standards.  If  an  extension  to  submit  additional  information  is 
requested, the bureau shall  issue  a  proposed  decision  on  the  completed 
application, including any additional information submitted pursuant to  this 
subrule in accordance with the new or  revised  certificate  of  need  review 
standards, on or before 120 days after receipt of the additional information. 
 If the applicant does not make a request  under  this  subrule,  the  bureau 
shall issue a proposed decision on  the  completed  application  reviewed  in 
accordance with the new or revised certificate all of need standards and  the 
proposed decision shall be issued in accordance  with  the  date  established 
pursuant to R 325.9207.
  (4) If an application is being reviewed on a substantive individual  basis, 
and the bureau has issued a proposed decision,  the  applicant  may  request, 
within 15 days of the effective date of the new  or  revised  certificate  of 
needed review standards, and the department shall  grant,  a  remand  of  the 
review to the bureau.  Upon such remand, the date a final  decision  must  be 
issued by the director of the department is  stayed  and  the  applicant  may 
submit, to the department and the appropriate regional  certificate  of  need 
review agency, additional information to demonstrate that the application  is 
in compliance with the new or revised certificate of need review standards.   
Upon remand, the bureau shall issue a  proposed  decision  on  the  completed 
application, including any additional information submitted pursuant to  this 
subrule in accordance with the new or revise the certificate of  need  review 
standards, on or before 120 days after receipt of the additional information. 
 It the applicant does not make a request under this subrule, the director of 
the department shall issue a final  decision  on  the  completed  application 
reviewed in accordance with the new or revised certificate of need  standards 
and  the  final  decision  shall  be  issued  in  accordance  with  the  date 
established pursuant to these rules and the code.
  (5) If an application is being reviewed on a substantive individual  basis, 
and the bureau  has  issued  a  proposed  decision,  and  the  applicant  has 
requested a hearing on a proposed decision pursuant to  section  22232(1)  of 
the code, regardless of the stage of the hearing, the applicant  may  request 
that the matter be remanded to the bureau for further  review  in  accordance 
with subrule(3) of this rule or, if the applicant does  not  make  a  request 
under this subrule, the applicant shall be  allowed  60  days  following  the 
effective date of the new or revised certificate of need review standards  to 
augment, for introduction  in  the  hearing,  its  testimony,  evidence,  and 
exhibits in support of its application with regard  to  the  new  or  revised 
certificate of need review standards.   If  an  applicant  does  not  make  a 
request for a remand under this subrule, the department shall submit, to  the 
hearing officer, within 60 days of the effective date of the knew or  revised 
certificate of need review standards  or  60  days  after  an  applicant  has 
augmented the record, whichever comes later, an analysis of  the  applicant's 
compliance with the new or revised certificate of need review standards.
  (6) If an application is in a comparative review, regardless of whether  it 
is in the process of being reviewed by the bureau  or,  in  any  stage  of  a 
hearing, by the director of the department, any applicant in the  comparative 
group, within 15  days  after  the  effective  date  of  the  new  or  revise 
certificate of need standards, may request, and the department  shall  grant, 
either an extension or a remand and extension to the  bureau  to  review  and 
issue a proposed decision on the comparative group in accordance with the new 
or revised certificate of need review standards.  Upon  extension  or  remand 
and extension, each applicant in the comparative group shall be considered as 
having made the request and shall be permitted 60  days  to  submit,  to  the 
department and the appropriate regional certificate of  need  review  agency, 
additional information to demonstrate that its application is  in  compliance 
with the new or revised certificate of need review standards.  Upon  such  an 
extension or remand and extension, the bureau shall issue a  single  proposed 
decision on the completed applications, with the addition of any  information 
submitted pursuant to this subrule from the comparative group  in  accordance 
with the new or revised certificate of need review standards,  on  or  before 
120 days after the last date on which additional information may be submitted 
under this subrule.  If none of the applicants  request  an  extension  or  a 
remand and extension, for the review and issuance of a single decision on the 
comparative group shall be based on each completed  application  reviewed  in 
accordance with the new or revised certificate  of  need  standards  and  the 
decision shall be issued in accordance with the date established pursuant  to 
these rules and the code.
  (7) The department shall consider the  recommendation  of  the  appropriate 
regional certificate of  needed  review  agency,  if  the  recommendation  is 
received not more than 30 days before the bureau or department decision dates 
established pursuant to this rule.
  (8) After the director  has  issued  a  final  decision  to  disapprove  an 
application that is not subject to  comparative  review,  an  applicant  main 
submit, within 60 days of the final decision date,  and  the  department  may 
accept, additional information to demonstrate a need for the project pursuant 
to section 22225(1) of the code.   An  applicant  shall  also  simultaneously 
submit any additional information to the appropriate regional certificate  of 
need review agency.  If new or revised certificate of need  review  standards 
applicable to the project become effective after the final decision is issued 
by the director, and  if  an  applicant  submits  additional  information  to 
demonstrate a need for the project for which the disapproval was issued,  the 
director's reconsideration shall be based on the new or  revised  certificate 
of need review standards.
  (9) If an applicant submits additional information pursuant  to  subrule(8) 
of this subrule, the department shall incorporate the additional  information 
into the department's file for that application.
  (10) If an applicant submits additional information pursuant  to  subrul(8) 
of this subrule, and if the department determines that an application  is  in 
compliance with the requirements for approval in the  code  and  the  new  or 
revise to certificate of need review standards,  the  bureau  shall  issue  a 
revised proposed decision and the director shall  issue  date  revised  final 
decision in accordance with the applicable procedures for scheduling  reviews 
and decisions set forth in the code and these rules for the  type  of  review 
applicable to the project.

  History:  1996 AACS.


                PART 3. APPROVAL AND ISSUANCE; DISAPPROVAL

R  325.9301   Bureau and department decision to be written;  issuance  of   1 
decision for all applications   in   comparative   review;   conditions   and 
stipulations as integral parts  of   certificate   of   need;   request   for 
hearing deemed request for hearing on  entire  decision;  issuance  of  final 
decision.
  Rule 301. (1) The certificate of need proposed and final decisions shall be 
in writing.
  (2) The bureau and department  shall  issue  only  1   decision   for   all 
applications,  including  qualifying  and  nonqualifying   projects,   in   a 
comparative review.
  (3) Conditions and stipulations are integral parts of  the  certificate  of 
need. A request for hearing filed pursuant to section 22231   or   22232   of 
the code related to any part of a decision shall be deemed  a   request   for 
hearing on the entire decision.
  (4) The director of the department shall issue a final decision pursuant to 
all applicable requirements and provisions of the code.

  History:  1986 AACS; 1996 AACS.


R  325.9303   Effective date of certificate.
  Rule 303. Unless otherwise specified by the department,  a  certificate  of 
need shall be effective on the date the final approval is   issued   by   the 
director.

  History:  1986 AACS; 1996 AACS.


                       PART 4. TERMS AND CONDITIONS

R  325.9401   Validity of certificate.
  Rule 401. (1) A certificate of need shall be valid only as long as there is 
compliance with the provisions  in  the   final   or   amended   application, 
including  project  timetables,  except  as  expressly   modified   in    the 
certificate of need and the amendments thereto.
  (2) As provided by section 20164(2) of the code, the certificate of need is 
not transferable and shall be valid only for  the  persons,   buildings,  and 
properties stated in the certificate.

  History:  1986 AACS.


R  325.9403   Term of certificate.
  Rule 403. (1) Unless otherwise specified in a certificate  of  need  review 
standard, a certificate of need shall expire 1  year   from   its   effective 
date, unless the project is implemented as defined in R 325.9103(b).
  (2) The department, upon written request of the   applicant,   shall   have 
the right to extend the implementation period established in  subrule  (1) of 
this rule or in a certificate of need review standard by  not  more   than  6 
months if all of the following provisions are satisfied:
  (a) The terms of the certificate are not changed.
  (b) Substantial progress has been made.
  (c)  If  applicable,  an   obligation   for    capital    expenditure    or 
establishment of a force account is likely to occur   within   the   extended 
time period.
  (3) The department has the right to make   unscheduled   periodic   reviews 
and surveys of the project for which a certificate of need  is   issued   and 
all related documentation to determine whether progress is  being   made   in 
accordance with the project timetable and estimated costs of the  project.
  (4) For projects subject to the provisions of R  325.9103(b)(i),  (ii)   or 
(vi), a certificate of need review standard may establish a   term   of   the 
certificate other than as established in subrules  (1)  and   (2)   of   this 
rule, in which case the certificate of need shall expire at the  end  of  the 
time period specified in the standard.

  History:  1986 AACS; 1996 AACS.


R  325.9413   Amendments to approved certificates of need.
  Rule 413. (1) An applicant may make a written request  to  the   department 
for an amendment to an approved certificate of need if the project is  not  a 
completed project. If the approved  certificate  of  need   involves   mental 
health services, a copy of the  request  and   all   subsequent   information 
submitted to the department  shall  simultaneously  be   submitted   to   the 
Michigan  department  of  mental  health.  After   consultation   with    the 
appropriate regional certificate of need review   agency,   a   determination 
shall be made by the department whether the amendment  does   or   does   not 
require another review.  The  department's  decision   to   require   another 
review shall not be subject to  the  administrative   hearing   process   set 
forth in Act No. 306 of the Public Acts of 1969, as amended, being S24.201 et 
seq. of the Michigan Compiled Laws. A certificate of  need  issued   after  a 
comparative review shall not be amended to  increase   the   scope   of   the 
project or to increase the cost of the  project.  A   certificate   of   need 
issued after a comparative review shall  not  be  amended   to   change   the 
method of financing the project, or the terms of   financing   the   project, 
except where  an  applicant  demonstrates,  to  the   satisfaction   of   the 
department, an amendment to change the method or terms of financing offers  a 
less costly alternative to the approved method  or  terms  of  financing  the 
project. Unless waived by the department, amendments to  a   certificate   of 
need shall be subject to the same conditions and  stipulations   imposed   on 
the original certificate.
  (2) An amendment authorizing  a  change  in  the  method   and   terms   of 
financing, approved capital expenditures, or operating costs  shall  be  made 
only in those instances where the facility is able to  demonstrate  that  the 
need for amendment arises from circumstances beyond  its   control   or   the 
amendment offers a better alternative as determined by  the  department  with 
the advice of the appropriate regional certificate of need review  agency.
  (3) A completed project shall not be amended.
  (4) The  department  may  request  additional   information   regarding   a 
proposed  amendment  pursuant  to  the  time  periods  set   forth    in    R 
325.9201(3).
  (5) The review period for a request to amend an  approved  certificate   of 
need shall  not  be  longer  than  the  original  review   period   for   the 
application.

  History:  1986 AACS; 1996 AACS.


R  325.9415   Amendment  to  approved  certificates  for   an   increase   in 
project costs.
  Rule 415. Due to the  difficulty  in  estimating,   in   advance,   finance 
costs, construction delays, the need for minor  construction  change  orders, 
and other similar  unforeseeable  events,  an  amendment   to   an   approved 
certificate of need for increased project costs shall not  be   required   if 
the total amount of excess does not exceed the sum of 15%  of  the   approved 
project costs up to $1,000,000.00 and 10% of the approved  project  costs  in 
excess of $1,000,000.00.

  History:  1986 AACS; 1996 AACS.


R  325.9417   Certificate timetables.
  Rule 417. (1) An application for a certificate of need  shall  specify  the 
timetable the applicant will follow in making the  health   facility,   beds, 
services  or  equipment  available  or  for    beginning    and    completing 
construction.
  (2) The period of time allowed to begin any construction   shall   be   not 
more than 24 months from the effective date of approval,  except   that   the 
department may approve a longer period of time through  written  amendment to 
the certificate of need  if  the  department  determines  that  circumstances 
justify an extension.

  History:  1986 AACS; 1996 AACS.


R 325.9419  Monitoring compliance with approved certificates of need
  pursuant to section 22247 of the code.
  Rule 419.  (1) Upon a determination by the department and applicant is  not 
in compliance with the terms, conditions,  or  stipulations  of  an  approved 
certificate of need, the department shall notify the applicant.
The department shall also  specify  the  period  of  time  during  which  the 
noncompliance occurred.  The applicant shall notify all  payers  of  services 
provided by the applicant that the approved services are not  being  provided 
in compliance with the terms, conditions,  or  stipulations  of  an  approved 
certificate of need.
  (2) In determining the  appropriate  action  to  take  in  accordance  with 
section 22247(2) of the code, the department shall consider  the  extent  and 
duration of the noncompliance.
  (3)  The department shall make available, to the public, on request, a list 
of all certificates of need determined not  to  be  in  compliance  with  the 
terms, conditions, or stipulations approved in a certificate of need.

  History:  1996 AACS.


                      PART 5. ADMINISTRATIVE APPEALS

R  325.9501   Hearing request; eligibility; effect.
  Rule 501. (1) An applicant that receives either a  proposed   decision   of 
the bureau which disapproves 1 or more certificates of need or  a  notice  of 
reversal by the director of a proposed decision that is   an   approval   may 
request a hearing, as authorized by the  code,  to   demonstrate   that   the 
completed application filed by the applicant meets   the   requirements   for 
approval under part 222 of the code.
  (2) The filing of a request for hearing shall stay issuance  of   a   final 
decision during the pendency of the hearing before the department.

  History:  1986 AACS; 1996 AACS.


R  325.9503   Hearing procedure.
  Rule 503. (1) A request for a hearing is commenced by  filing   a   request 
for hearing with the director of the department, 3423 North  Martin  L.  King 
Jr. Blvd., P.O. Box 30195, Lansing, Michigan 48909.
  (2) A request for a hearing  shall  be  filed  within  15   days   of   the 
applicant's receipt of the bureau's proposed decision or receipt of notice of 
reversal by the director of a proposed decision that is an approval.
  (3) A request for a hearing shall be made in writing and  shall  include  a 
statement of the grounds for a hearing and a clear and  concise  statement of 
the facts and law relied on and the relief sought.
  (4) A copy of the request  for  a  hearing  shall  be   served   upon   the 
appropriate regional certificate of need review agency.   In   addition,   if 
the request for a hearing is  filed  by  an  applicant   in   a   comparative 
review, a copy of the request  for  a  hearing  shall  be   served   by   the 
applicant upon all other applicants in the comparative group.
  (5) The hearing shall commence within 90 days from  the   date   that   the 
department received the request for a hearing, unless waived  in  writing  by 
the parties. Not less than 10 days before the date set in  the  notice,   the 
department shall serve notice of the hearing, by placing  a   copy   of   the 
notice in the mail to each, upon the person who filed the   request   for   a 
hearing,  the  assistant  attorney  general  assigned   to   represent    the 
department, and all other persons on whom the request for   a   hearing   was 
required to be served. The first  hearing  day  shall  be   utilized   as   a 
prehearing conference and may be used for hearing preliminary motions.
  (6) If more than 1 request for a hearing is filed with   respect   to   the 
same bureau decision, the hearings so commenced shall  be  consolidated   and 
shall be heard and decided as a single  hearing.  A  party   shall   not   be 
severed from a hearing on a comparative review.
  (7) In all hearings by aggrieved applicants, the  necessary   parties   are 
the department and any aggrieved applicant that perfected its request  for  a 
hearing in a timely manner. The bureau shall not  be  required  to   file   a 
response to a request for a  hearing.  In   comparative   reviews,   approved 
applicants are necessary parties to any hearing.

  History:  1986 AACS; 1996 AACS.


R  325.9505   Service of documents.
  Rule 505. Unless otherwise specified, service of  a   document   upon   any 
party shall be made by personal delivery or  by   mailing,   by   registered, 
certified, or first-class mail, to the last known address of  the  party   or 
the authorized representative of a party as indicated on   the   records   of 
the department. Proof of service shall be filed with the department.

  History:  1986 AACS.


R  325.9507   Pleadings.
  Rule 507. All pleadings, including a request for a hearing, shall be  on  8 
1/2-inch by 11-inch paper and shall   contain   the   certificate   of   need 
application number as  part  of  the  caption  and  the   case   number,   if 
assigned. All pleadings may also be submitted electronically  in  a  mutually 
agreed upon media.

  History:  1986 AACS; 1996 AACS.


R  325.9509   Form of hearing.
  Rule 509. (1) A request for a hearing shall be titled "In  the  matter   of 
(name of appellant or appellants)." The caption shall appear  at  the   upper 
left side of the first page of each filed pleading or document other  than an 
exhibit.
  (2) The first page of a pleading or document,  other   than   an   exhibit, 
shall show the case number, if assigned, at its upper  right  side   opposite 
the caption.

  History:  1986 AACS; 1996 AACS.


R  325.9511   Authorization and assignment of hearing officers.
  Rule 511. The department may designate and authorize hearing officers to be 
the hearing officers in the hearings.

  History:  1986 AACS; 1996 AACS.


R  325.9513   Adjournment.
  Rule 513. A party may request an adjournment of a  scheduled   hearing   by 
motion to the hearing officer assigned to conduct the  hearing.  The  hearing 
officer shall not rule on the request until all other parties  have  had   an 
opportunity to be heard on the request. However, if all  parties   agree   to 
the adjournment, then the hearing officer may be advised of the  agreement by 
telephone and may rule on the request immediately.

  History:  1986 AACS; 1996 AACS.


R  325.9515   Hearing officer; conduct of hearing.
  Rule 515. (1) The hearing officer shall govern the conduct  of  a   hearing 
and the order of presentation of arguments and evidence.
  (2) Upon his or her own motion or that of a party,  the  hearing   officer, 
for good cause, may order that issues be severed  and   briefed   or   argued 
separately.
  (3) Sections 71 to 87 of Act No. 306 of the  Public  Acts   of   1969,   as 
amended, being SS24.271 to 24.287 of the  Michigan   Compiled   Laws,   shall 
govern the hearings.
  (4) Upon written request by a  party,  the  hearing   officer   may   issue 
subpoenas requiring the attendance and  testimony  of   witnesses   and   the 
production of evidence.
  (5) Unless the bureau determined that the applicant  demonstrated  a   need 
for the proposed project pursuant to section 22225(1)  of   the   code,   the 
scope of the hearing shall be limited  to   demonstrating   compliance   with 
section 22225(1) of the code. If the applicant  has  demonstrated  compliance 
with section 22225(1) of the code, then  the  scope  of   the   hearing   may 
involve demonstrating compliance with section 22225(2) of the code.

  History:  1986 AACS; 1996 AACS.


R  325.9517   Withdrawal of request for hearing; agreement.
  Rule 517. At any time before a final decision is issued by the  director of 
the department, a party may withdraw  its  application  or  request   for   a 
hearing or the party or parties to a hearing may   negotiate   an   agreement 
disposing of the whole case or a part of the case.

  History:  1986 AACS; 1996 AACS.


R  325.9519   Preliminary motions; prehearing conference.
  Rule 519. (1) Not less than 5 days before the date  set   for   the   first 
hearing in the notice, all preliminary motions shall be  filed,  unless   the 
hearing officer, for good cause shown, permits the filing of such  motions at 
a later date.
  (2) On the date set for the hearing in the notice,  the   hearing   officer 
shall first hear all pending preliminary motions.  Thereafter,  all   motions 
are to be made and heard at the discretion of the hearing officer. Motions of 
a procedural nature shall be decided by the hearing officer as they are made. 
Motions of  a  substantive  or  dispositive  nature  shall  be  taken   under 
advisement and decided as part  of  the  hearing   officer's   proposal   for 
decision.
  (3) On the date set for the hearing in the  notice,   after   hearing   all 
pending preliminary motions, if any, the  hearing  officer   shall   hold   a 
prehearing conference as provided for in these rules.

  History:  1986 AACS; 1996 AACS.


R  325.9521   Interrogatories; depositions.
  Rule 521. (1) Upon stipulation of all of the parties to  a  case,   written 
interrogatories or requests for admissions may be served on a  party  in  the 
same manner as in a nonjury civil case in circuit court.
  (2) Depositions shall only  be  taken  for  the   purposes   of   obtaining 
testimony at a hearing. Before taking a deposition,   the   hearing   officer 
shall find that it is impractical or impossible to have a witness  testify at 
the hearing. When depositions are permitted, they shall be taken in the  same 
manner as in a nonjury civil case in circuit court.

  History:  1986 AACS; 1996 AACS.


R  325.9523   Testimony.
  Rule 523. Upon the request of a party and  for  good   cause   shown,   the 
hearing officer  may  allow  the  direct  testimony  of   a   witness   being 
presented on behalf of the requesting party to  be   submitted   in   written 
form, together with any exhibits to be sponsored by   the   witness,   before 
hearing. Such direct testimony shall be sworn and notarized, be  submitted in 
typewritten form on 8 1/2-inch by 11-inch  paper,  and  be  in  question  and 
answer form. The direct testimony of each witness so   submitted   shall   be 
made a separate exhibit, and the name and address of  the  witness,  together 
with the caption of the case, shall appear on the cover  sheet.  The  exhibit 
shall be served on all parties on a date set by the  hearing   officer,   but 
not less than 5 days before its introduction at the hearing. Each  witness is 
required to be present at the hearing  to  introduce  his  or   her   written 
testimony as an exhibit and for cross-examination at such  date,  time,   and 
place as directed by the hearing officer. In any case,   and   upon   request 
therefor, a party shall have the right, notwithstanding  any   provision   of 
this rule, to have any witness on the party's behalf  present   the   party's 
direct testimony orally before the hearing officer.

  History:  1986 AACS; 1996 AACS.



R  325.9525   Issuance of final decision by the department director.
  Rule 525. (1) After the conclusion of a hearing, the  hearing  officer,  if 
other than the director of the department, shall deliver, to the  director of 
the department, the  official   case   file   and   the   hearing   officer's 
proposal for decision. The hearing officer shall serve   the   proposal   for 
decision upon the parties by first-class or certified mail  or  by   personal 
service. Each party shall have 20 days from the date  of   service   of   the 
proposal for decision to file exceptions or present  written   arguments   to 
the director. Exceptions and written arguments  shall  be   served   on   all 
parties, who shall have 10 days to file their replies   to   the   exceptions 
with the director of the department and serve the replies on the  parties.
  (2) After review of the record or the proposal  for  decision,   exceptions 
thereto, and replies, if any, the director of the department  shall  issue  a 
final decision stating the findings of fact, conclusions of  law,   and   the 
final decision or an order for further proceedings. The   director   of   the 
department shall serve copies of the final decision upon all parties.
  (3) All applications that are part of  a  comparative   review   shall   be 
decided in 1 final decision.
  (4) The final decision of the director of the department  may  be  appealed 
only by the applicant and only on the record directly to  the  circuit  court 
for the county where the applicant has its principal place  of  business   in 
this state or the circuit court for Ingham county. Judicial  review  shall be 
governed by sections 101 to 106 of Act No. 306 of the  Public  Acts  of 1969, 
as amended, being SS24.301 to 24.306 of the Michigan Compiled  Laws.
   
History:  1986 AACS; 1996 AACS.