Mich. Comp. Laws » Michigan Compiled Laws / Chapter 330 / Act 258 of 1974

Mich. Comp. Laws § 330.1308

Financial liability of state.

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MENTAL HEALTH CODE


Act 258 of 1974


330.1308 Financial liability of state.

Sec. 308.

    (1) Except as otherwise provided in this chapter and subsections (2) and (3), and subject to the constraint of funds actually appropriated by the legislature for such purpose, the state shall pay 90% of the annual net cost of a community mental health services program that is established and administered in accordance with chapter 2.

    (2) Beginning in the fiscal year after a community mental health services program becomes a community mental health authority under section 205, if the department increases the amount of state funds provided to community mental health services programs for the fiscal year, all of the following apply:

    (a) The amount of local match required of a community mental health authority for that fiscal year shall not exceed the amount of funds provided by the community mental health services program as local match in the year in which the program became a community mental health authority.

    (b) Subject to the constraint of funds actually appropriated by the county or county board of commissioners, the amount of county match required of a county or counties that have created a community mental health authority shall not exceed the amount of funds provided by the county or counties as county match in fiscal year 1994-1995 or the year the authority is created, whichever is greater.

    (c) If the local match provided by the community mental health services program is less than the level of local match provided in the year in which the community mental health services program became a community mental health authority, subdivision (a) does not apply.

    (d) The state is not obligated to provide additional state funds because of the limitation on local funding levels provided for in subdivisions (a) and (b).

    (3) The state shall pay the family support subsidies established under section 156.

    (4) If 2 or more existing community mental health services programs merge pursuant to section 219, the state shall pay 100% of administrative costs approved by the department for the newly created community mental health services program for 3 years after the date of merger.

    (5) If a county demonstrates an inability to meet its local match obligation due to financial hardship, the department may do either of the following:

    (a) Accept a joint plan of correction from the county and its community mental health services program that ensures full payment over an extended period of time.

    (b) Waive a portion of the county's obligation based on hardship criteria established by the department.

History: 1974, Act 258, Eff. Aug. 6, 1975 ;-- Am. 1983, Act 249, Imd. Eff. Dec. 15, 1983 ;-- Am. 1995, Act 290, Eff. Mar. 28, 1996

Compiler's Notes:

    Section 2 of Act 249 of 1983 provides: “This amendatory act shall take effect January 1, 1984, for the purpose of promulgating rules pursuant to section 157, and July 1, 1984, for the purpose of accepting written application.”

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1989–2023 · leading case: Mason County v. Department of Community Health
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Mason County v. Department of Community Health (2011) michctapp · cites it 2× “Under MCL 330.1308(1) the state is made responsible for 90 percent of the annual net cost of a CMHSE However, under MCL 330.”
Huron Behavioral Health v. Department of Community Health (2011) michctapp “If it were to be dissolved, however, the county’s community mental-health program would no longer be protected by the “capping” provision of MCL 330.1308(2)(a), and the county’s share of costs would increase back to 10 percent of the net costs.”
Oakland County v. Department of Mental Health (1989) michctapp · cites it 2× “In 1975, MCL 330.1308; MSA 14.800(308) provided: Except as is otherwise provided in this chapter, and subject to the constraint of funds actually appropriated by the state legislature for such purpose, the state shall pay 90% of the annual net cost of a county community mental…”
Muskegon County v. State of Michigan (2023) michctapp · cites it 15× “Plaintiffs, Muskegon County and its agency, HealthWest, argue on appeal that HealthWest should receive payment from defendants, the State of Michigan and the Department of Health and Human Services (DHHS), for Medicaid-eligible mental-health services under MCL 330.1308 and MCL…”
— Mich. Comp. Laws § 330.1308(1) — 2 cases
Mason County v. Department of Community Health (2011) michctapp “Under MCL 330.1308(1) the state is made responsible for 90 percent of the annual net cost of a CMHSE However, under MCL 330.”
Muskegon County v. State of Michigan (2023) michctapp “Plaintiffs, Muskegon County and its agency, HealthWest, argue on appeal that HealthWest should receive payment from defendants, the State of Michigan and the Department of Health and Human Services (DHHS), for Medicaid-eligible mental-health services under MCL 330.1308 and MCL…”
— Mich. Comp. Laws § 330.1308(2) — 1 case
Mason County v. Department of Community Health (2011) michctapp “Under MCL 330.1308(1) the state is made responsible for 90 percent of the annual net cost of a CMHSE However, under MCL 330.”
— Mich. Comp. Laws § 330.1308(2)(a) — 1 case
Huron Behavioral Health v. Department of Community Health (2011) michctapp “If it were to be dissolved, however, the county’s community mental-health program would no longer be protected by the “capping” provision of MCL 330.1308(2)(a), and the county’s share of costs would increase back to 10 percent of the net costs.”
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