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SENATE BILL No. 164

February 15, 2017, Introduced by Senators PROOS, COLBECK, BOOHER, MARLEAU, NOFS, KNOLLENBERG, PAVLOV, EMMONS and ZORN and referred to the Committee on Oversight.

A bill to amend 1978 PA 368, entitled

"Public health code,"

by amending sections 20115 and 20165 (MCL 333.20115 and 333.20165),

section 20115 as amended by 2012 PA 499 and section 20165 as

amended by 2008 PA 39, and by adding section 20116.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 20115. (1) The department may promulgate rules to further

define the term "health facility or agency" and the definition of a

health facility or agency listed in section 20106 as required to

implement this article. The department may define a specific

organization as a health facility or agency for the sole purpose of

certification authorized under this article. For purpose of

certification only, an organization defined in section 20106(5),

20108(1), or 20109(4) is considered a health facility or agency.

The term "health facility or agency" does not mean a visiting nurse

service or home aide service conducted by and for the adherents of

a church or religious denomination for the purpose of providing

service for those who depend upon spiritual means through prayer

alone for healing.

(2) The department shall promulgate rules to differentiate a

freestanding surgical outpatient facility from a private office of

a physician, dentist, podiatrist, or other health professional. The

department shall specify in the rules that a facility including,

but not limited to, a private practice office described in this

subsection must be licensed under this article as a freestanding

surgical outpatient facility if that facility performs 120 or more

surgical abortions per year and publicly advertises outpatient

abortion services. The department shall also specify in the rules

that a facility that must be licensed as a freestanding surgical

outpatient facility under this subsection shall not continue to

perform surgical abortions until it obtains a license from the

department. A person that violates this subsection is subject to

the following:

(a) For a first violation, a person may be ordered to pay a

civil fine of not more than $545.00.A violation of this

subdivision may be prosecuted by the prosecutor of the county in

which the violation occurred or by the attorney general.A civil

fine that is collected under this subdivision must be deposited

into the clinic inspection fund created in section 20116.

(b) For a second or subsequent violation, a person is subject

to the sanction described in section 20165(5).

(3) The department shall promulgate rules that in effect

republish R 325.3826, R 325.3832, R 325.3835, R 325.3857, R

325.3866, R 325.3867, and R 325.3868 of the Michigan administrative

code, Administrative Code, but shall include in the rules standards

for a freestanding surgical outpatient facility or private practice

office that performs 120 or more surgical abortions per year and

that publicly advertises outpatient abortion services. The

department shall assure ensure that the standards are consistent

with the most recent United States supreme court Supreme Court

decisions regarding state regulation of abortions.

(4) Subject to section 20145 and part 222, the department may

modify or waive 1 or more of the rules contained in R 325.3801 to R

325.3877 of the Michigan administrative code Administrative Code

regarding construction or equipment standards, or both, for a

freestanding surgical outpatient facility that performs 120 or more

surgical abortions per year and that publicly advertises outpatient

abortion services, if both of the following conditions are met:

(a) The freestanding surgical outpatient facility was in

existence and operating on December 31, 2012.

(b) The department makes a determination that the existing

construction or equipment conditions, or both, within the

freestanding surgical outpatient facility are adequate to preserve

the health and safety of the patients and employees of the

freestanding surgical outpatient facility or that the construction

or equipment conditions, or both, can be modified to adequately

preserve the health and safety of the patients and employees of the

freestanding surgical outpatient facility without meeting the

specific requirements of the rules.

(5) By January 15 each year, the department of community

health and human services shall provide the following information

to the department: of licensing and regulatory affairs:

(a) From data received by the department of community health

and human services through the abortion reporting requirements of

section 2835, all of the following:

(i) The name and location of each facility at which abortions

were performed during the immediately preceding calendar year.

(ii) The total number of abortions performed at that facility

location during the immediately preceding calendar year.

(iii) The total number of surgical abortions performed at that

facility location during the immediately preceding calendar year.

(b) Whether a facility at which surgical abortions were

performed in the immediately preceding calendar year publicly

advertises abortion services.

(6) As used in this section:

(a) "Abortion" means that term as defined in section 17015.

(b) "Publicly advertises" means to advertise using directory

or internet advertising including yellow pages, white pages, banner

advertising, or electronic publishing.

medical abortion as that term is defined in section 17017.

Sec. 20116. (1) The clinic inspection fund is created within

the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the fund. The state treasurer shall

direct the investment of the fund. The state treasurer shall credit

to the fund interest and earnings from fund investments.

(3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

(4) The department shall be the administrator of the fund for

auditing purposes.

(5) The department shall expend money from the fund, upon

appropriation, only to conduct investigations or inspections under

section 20156 of the premises of an applicant that is required to

be licensed as a freestanding surgical outpatient facility under

section 20115(2).

(6) As used in this section, "fund" means the clinic

inspection fund created in subsection (1).

Sec. 20165. (1) Except as otherwise provided in this section,

after notice of intent to an applicant or licensee to deny, limit,

suspend, or revoke the applicant's or licensee's license or

certification and an opportunity for a hearing, the department may

deny, limit, suspend, or revoke the license or certification or

impose an administrative fine on a licensee if 1 or more of the

following exist:

(a) Fraud or deceit in obtaining or attempting to obtain a

license or certification or in the operation of the licensed health

facility or agency.

(b) A violation of this article or a rule promulgated under

this article.

(d) Negligence or failure to exercise due care, including

negligent supervision of employees and subordinates.

(e) Permitting a license or certificate to be used by an

unauthorized health facility or agency.

(f) Evidence of abuse regarding a patient's health, welfare,

or safety or the denial of a patient's rights.

(g) Failure to comply with section 10115.

(h) Failure to comply with part 222 or a term, condition, or

stipulation of a certificate of need issued under part 222, or

both.

(i) A violation of section 20197(1).

(j) A violation of section 20115(2)(b).

(2) The department may deny an application for a license or

certification based on a finding of a condition or practice that

would constitute a violation of this article if the applicant were

a licensee.

(3) Denial, suspension, or revocation of an individual

emergency medical services personnel license under part 209 is

governed by section 20958.

(4) If the department determines under subsection (1) that a

health facility or agency has violated section 20197(1), the

department shall impose an administrative fine of $5,000,000.00 on

the health facility or agency.

(5) If the department determines under subsection (1) that a

person has violated section 20115(2)(b), the department shall deny

the person's application for a license.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.