MICHIGAN DEPARTMENT OF COMMUNITY HEALTH

   BUREAU OF HEALTH SYSTEMS - LICENSING AND CERTIFICATION DIVISION

                LICENSING OF SUBSTANCE USE DISORDER PROGRAMS

(By authority conferred on the director of the department of community health 
by section 6231 of 1978 PA 368, MCL  333.6231  and  Executive  Reorganization 
Order Nos. 1991-3, 1996-1, and 1997-4, MCL 333.36321, 330.3101, and 333.26324)


R 325.14201   Establishment  or  maintenance   and   operation   of   program 
without license prohibited.
  Rule 201. A person  shall  not  establish  or  maintain   and   operate   a 
substance abuse program unless licensed by the office  in   accordance   with 
the act and these rules.

  History:  1981 AACS.


R 325.14202   Time of application.
  Rule 202. An application for initial licensure may be made at any  time.
All licenses shall be renewed  annually.  Renewal   applications   shall   be 
received by the office 30 days before license   expiration.   Licensees   not 
meeting the 30-day requirement will  only  be  eligible  to   be   issued   a 
temporary permit.

  History:  1981 AACS.


R  325.14203   Content of application.
  Rule 203. (1) An application for an initial or renewed  license  shall   be 
made on a form authorized and  provided  by  the  office   which   shall   be 
completed in full in accordance with instructions that are  attached  to  the 
application. The application form shall be accompanied  by  the  attachments, 
additional data, and information required by the office.
  (2) A complete application shall include,  at  a  minimum,   all   of   the 
following:
  (a) Philosophy and goals/objectives.
  (b) Admission procedure.
  (c) Use of other community resources.
  (d) Discharge policies.
  (e) Follow-up policies.
  (f) Additional information specified in the   instructions   to   determine 
compliance with the act and these rules.
  (g) A copy of recipient rights policies and procedures.
  (h) Name, occupation, place of employment, home address,   and   blood   or 
marital relationship of the program director,  board  members,  stockholders, 
and officers to any program staff.

  History:  1981 AACS.


R 325.14204   Processing the application.
  Rule 204. (1) The office  shall  determine  whether   an   application   is 
complete  and  shall  notify  the  applicant  in   writing   if    additional 
information  is  required  to  complete  the   application    or    determine 
compliance with the act and these rules. The office  shall  investigate   and 
consider each completed application.
  (2) By applying for or accepting a license or a permit,  an  applicant   or 
licensee authorizes the office and  its  representatives   to   conduct   the 
inspections and investigations  necessary  to   determine   compliance   with 
applicable licensing standards.

  History:  1981 AACS.


R 325.14205   Investigations and inspections.
  Rule 205. (1) The office shall conduct an investigation  of   a   substance 
abuse treatment program for initial licensure within   the   3-month   period 
following receipt of the application or, in the case  of   renewals,   within 
the 3-month period before the expiration date of the  current  license.   The 
office shall not issue or renew a license until such  an   investigation   is 
completed and a favorable determination by the office is on file.
  (2)  The  office  may   make   additional    visits,    inspections,    and 
investigations as it determines necessary for the purpose  of  enforcement of 
these rules and the act in accordance with the act.
  (3) Investigations may include all of the following:
  (a) Inspections of the program and its operation.
  (b) Inspection and copying of program records,  patient  clinical  records, 
and other documents maintained by the program.
  (c) The acquisition of other information, including otherwise privileged or
 confidential  information,  from   any   other   persons   who   may    have 
information bearing  on  the  applicant's  or   licensee's   compliance,   or 
ability to comply, with the applicable requirements for licensure.

  History:  1981 AACS.


R 325.14206   Action on applications for licensure.
  Rule 206. (1) On the basis of the information supplied  by  the   applicant 
and any other information available  to  the   office,   including   facility 
inspection and investigation, the office may  take   the   following   action 
with respect to any application for licensure:
  (a) Issue or renew the license.
  (b) Issue or renew a provisional license pursuant to section  6238  of  the 
act.
  (c) Issue a temporary nonrenewable permit pursuant to   section   6238   of 
the act.
  (d) Deny any initial or renewed license.
  (e) Take other action consistent with the purposes of the act.
  (2) Action by the office pursuant to subrule (1)(d) of this  rule  shall be 
preceded by a notice of intent and  an   opportunity   for   a   hearing   in 
accordance with  section  6243  of  the  act.  In  all   other   cases,   the 
determination of the office shall be final.

  History:  1981 AACS.


R 325.14207   Denial, suspension, or revocation or license.
  Rule 207. (1) A license may be denied, suspended, or revoked   for   1   or 
more of the following reasons:
  (a) Violation by the  program,  its  director,  or  staff   of   any   rule 
promulgated by the office.
  (b) Permitting, aiding, or abetting the commission of an  unlawful  act.
  (c) Conduct or practices found by the administrator to be  harmful  to  the 
welfare of a recipient in the program.
  (d) Deviation by the program  from  the  plan   of   operation   originally 
licensed which, in the judgment of the   administrator,   adversely   affects 
the character, quality, or scope of services being provided to recipients.
  (e) Submission of false information to the office which  is   related   and 
material to the requirements of applying for or holding a license.
  (f) Failure to demonstrate reasonably sufficient honesty  and  integrity to 
warrant the operation, or continuing operation, of a program.
  (g) Suspension, revocation, refused renewal, or refused   issuance   of   a 
federal  registration  to  distribute  or  dispense   methadone   or    other 
controlled substances.
  (h) Failure of an applicant or licensee to cooperate with  the  office   in 
connection with a licensing inspection or investigation.
  (2) When the administrator determines that an applicant   or   a   licensed 
program has committed an act or engaged  in  conduct   or   practices   which 
justify  the  denial,  suspension,  or  revocation  of   a    license,    the 
administrator shall notify the program by certified  mail,   return   receipt 
requested, of his or her intent to suspend, deny, or revoke  the  license.
The  notification  shall  contain  the  date  and  time   for   an   informal 
conference to provide the applicant or licensee  with   an   opportunity   to 
show compliance. If the licensee does not show compliance  at  the   informal 
conference, does not respond  to  the  notice,  or  fails   to   attend   the 
informal conference,  the  department  shall  schedule   a   formal   hearing 
pursuant to Act No. 306 of the Public Acts  of  1969,   as   amended,   being 
S24.201 et seq. of the Michigan Compiled Laws, to consider   the   items   of 
noncompliance cited in the notice. If the licensee also fails  to  appear  at 
the formal hearing, the office shall proceed in the licensee's absence.
  (3) Pursuant to section 92 of Act No. 306 of the Public Acts  of  1969,  as 
amended, being S24.292 of the Michigan Compiled Laws,  if  the  administrator 
finds that the public health, safety, or welfare  requires  emergency  action 
and incorporates this finding  in  the  order,  summary   suspension   of   a 
license may be ordered effective on the date specified in the  order  or   on 
service of a certified copy of the order on the licensee.
  (4) A hearing to determine issues relating to the  denial,  suspension,  or 
revocation of a license shall conform to Act No. 306 of the  Public  Acts  of 
1969, as amended, being S24.201 et seq. of the Michigan Compiled Laws.

  History:  1981 AACS.


R 325.14208   Service categories.
  Rule 208. (1) A single license shall be issued to  a  qualifying  substance 
use disorder program. The following  are  categories  of  service  for  which 
programs are licensed:
  (a) Prevention--CAIT. To receive a CAIT license, a program shall provide  1 
or more of the following CAIT services:
  (i) Community change.
  (ii) Alternatives.
  (iii) Information and training.
  (b) Casefinding--SARF. To receive a SARF license, a program  shall  provide 
all of the following SARF services:
  (i) Screening and assessment.
  (ii) Referral.
  (iii) Follow-up.
  (c ) Inpatient.
  (d) Residential.
  (e) Outpatient.
  (f) Case management.
  (g) Integrated treatment.
  (h) Early intervention.
  (i) Peer recovery and support.
  (2) A program shall be limited to providing only those services endorsed on 
the face of the license.
  (3) Before starting an additional service category  which is not shown on a 
program's existing license, a program shall obtain the office's approval. The 
office shall determine whether a new license application shall be submitted.

  History:  1981 AACS; 2006 AACS.


R 325.14209   Term of license renewals.
  Rule 209. A license shall expire on the date shown on its face  or  1  year 
after the date  of  issuance,  whichever  is  sooner,   unless   renewed   or 
terminated in accordance with the act or these rules.

  History:  1981 AACS.


R 325.14210   Provisional licenses.
  Rule 210. (1) In lieu of  denying  an  application   for   licensure,   the 
office may issue a provisional license  to  an   applicant.   A   provisional 
license shall expire on the date set  forth  on  its  face   or   the   first 
anniversary of  its  issuance,  whichever  is  sooner.  The   holder   of   a 
provisional license shall be reinspected for compliance  with   these   rules 
not less than 30 days  before  the  expiration  date   of   the   provisional 
license. The office may renew or extend a provisional license  for  a  period 
not to exceed 1 year if, in its sole  discretion,   the   office   determines 
that the purposes of the act will be served thereby. The  decision   of   the 
office with respect to the issuance or renewal of a  provisional  license  in 
lieu of a standard license is final and is not  subject   to   administrative 
appeal. A provisional license which has not been renewed or  which  has  been 
renewed 1 time shall expire automatically on its  expiration   date   without 
notice or hearings.
  (2) A program that receives  a  provisional  license   shall,   within   10 
working days, submit to the office, for approval, a plan  for  correction  of 
the  deficiencies  found  during  the  inspection.  Failure   to   submit   a 
correction plan may result in revocation  or  suspension   of   the   program 
license.

  History:  1981 AACS.


R 325.14211   Temporary permits.
  Rule 211. (1) In lieu of  denying  an  application   for   licensure,   the 
office may issue a temporary permit to an applicant when,  at  the   office's 
sole discretion, additional time is needed for the  office's  inspection   or 
investigation of the applicant  or  additional  time  is   needed   for   the 
applicant, including the initial applicant and applicants applying because of 
changes in ownership, to undertake remedial action.
  (2) A temporary permit shall expire on the date set forth on its face or  3 
months after the date of its issuance,  whichever  is  sooner.  A   temporary 
permit is not renewable and shall expire automatically  on   its   expiration 
date without notice or hearing. The decision of  the  office   to   issue   a 
temporary permit in lieu of a license is  final  and  is   not   subject   to 
administrative appeal.

  History:  1981 AACS.


R 325.14212   Change in circumstances; transfer of license; posting.
  Rule 212. (1) A license is issued on the basis of information  available to 
the office on the date of issuance.  An  applicant  or  licensee  shall  give 
written notice to  the  office  of  any  change   of   ownership,   governing 
authority, or location. Such a change shall be submitted to  the  office   30 
days before such change takes effect and shall result in  a  new  application 
being required.
  (2) A license is not  transferable  between   buildings,   properties,   or 
owners; from one location to another; or from one part of  an  institution to 
another.
  (3) The license of a program  that  has  discontinued   or   relocated   is 
immediately void and shall be returned to the office.  A   license   is   not 
transferable.
  (4) The office shall be notified in writing of the intent  to   merge   one 
substance abuse program with  another  before  such   merger.   Such   merged 
programs shall be inspected within 90 days of such notification.
  (5) The current license shall be posted in a conspicuous  public  place  in 
the program. For purposes of this rule,  the  term   "license"   includes   a 
provisional license or a temporary permit.
  (6) When a document is required by the act or these rules to  be  posted in 
a "public place" or in an  area  "accessible  to  patients,   employees,   or 
visitors," the term means any of the following locations in a program:
  (a) The main entry or hallway.
  (b) The reception area or foyer.
  (c) The dining room or multipurpose room.

  History:  1981 AACS.


R 325.14213   Prohibited entities; waivers.
  Rule 213. (1) A city, single county,  or  multicounty  coordinating  agency 
designated by the administrator shall not be licensed under these  rules  and 
shall not establish, maintain, conduct, or take part in, the operation  of  a 
substance use disorder program.
  (2) A request for a waiver  to  allow  a  coordinating  agency  to  provide 
substance use disorder treatment rehabilitation or prevention services  shall 
be made to the office by a coordinating agency. Specific situations for which 
such a waiver will be considered include all of the following:
  (a) Emergencies.  If  an  established,  licensed,  substance  use  disorder 
program unexpectedly and suddenly terminates operation in such a manner as to 
jeopardize the protection and well-being of clients receiving  services  from 
the program, a waiver may be issued on an interim basis until the  well-being 
of the clients is insured through alternative services.
  (b) Lack of operating service providers. If  a  licensed  service  provider 
does not exist in a geographical area  to  provide  services  for  which  the 
coordinating agency has shown a documented  need  and  no  providers  can  be 
found, a waiver  may  be  considered.   A  request  for  waiver  under  these 
circumstances shall contain information  as  to  the  steps  being  taken  to 
develop a licensed service provider in the geographical area. If attempts  to 
develop a provider have been made and a provider cannot be found, and if  the 
coordinating agency intends to  continue  to  provide  services,  a  plan  to 
transfer coordinating agency designation to another agency shall be  part  of 
the waiver request.
  (c)  Development  of  demonstration  projects.    If   development   of   a 
demonstration project for innovative or specialized  services  requires  that 
substance use disorder services be provided, a waiver may be requested for  a 
period of time sufficient to complete  an  evaluation  of  the  demonstration 
project and must document how waiver requirements have been met.  The  waiver 
may be renewed annually if the CA performs an evaluation of the project  that 
demonstrates the project is effective while maintaining  quality  of  service 
and the CA has conducted a good faith effort and has been unable to locate  a 
willing and capable provider.
  (3) When a waiver is granted for subdivisions (b) and (c) of this  subrule, 
the coordinating agency shall be required  to  be  licensed  for  the  waiver 
period and shall comply with all conditions for receipt  of  a  license.  The 
coordinating agency may be required by the administrator to comply  with  all 
statistical, client, management, or financial reporting requirements required 
or programs providing similar services.

  History:  1981 AACS; 2006 AACS.


R 325.14214   Relationship to funding.
  Rule 214. The issuance of a license to a program is not  a  commitment   by 
the office to fund the program.

  History:  1981 AACS.