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HB 5730

Health: licensing; references to licenses for certain substance use disorder services programs in the municipal health facilities corporations act; modify to include those exempt from licensure. Amends sec. 103 of 1987 PA 230 (MCL 331.1103). TIE BAR WITH: HB 5729'26

2025-2026 Regular Session Introduced by Steve Frisbie and 3 co-sponsors

HB 5730 aligns SUD service licensure with Part 62 of the Public Health Code, clarifying exemptions for certain facilities and tying effect to HB 5729.

referred to second reading
#health:controlledsubstances #health:licensing #health:substanceusedisorder #health:substanceusedisordertreatment
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Bill Summary · HB 5730

Executive summary

  • Purpose: HB 5730 aims to modify the Municipal Health Facilities Corporations Act to reference and align licensure for substance use disorder (SUD) services with exceptions for entities exempt from licensure. The bill ties into companion bills (notably HB 5729) and would take effect only if HB 5729 becomes law.

  • Core idea: Update definitions and licensing framework so that certain health care providers and facilities involved in SUD services are treated consistently with the Public Health Code Part 62 licensure framework, while preserving exemptions for specific facilities already licensed or exempt from licensure.

What the bill does

  • Section amended: Amends Sec. 103 of 1987 Public Act 230 (MCL 331.1103) to incorporate changes related to licensure references for SUD services programs, in alignment with Part 62 of the Public Health Code and related exemptions.

  • Licensure framework (as reflected by the companion HB 5729):

    • A “substance use disorder services program” is generally required to be licensed under Part 62 of the Public Health Code if not otherwise exempt.
    • Definitions updated to include programs or people exempt from licensure under Part 62.
    • Exemptions: Hospitals licensed under Article 17 of the Public Health Code, psychiatric hospitals or units licensed under the Mental Health Code, and crisis stabilization units would be exempt from needing Part 62 licensure to operate SUD services programs.
    • Crisis stabilization unit definition: Includes prescreening units under Mental Health Code or facilities certified under Chapter 9A providing unscheduled, time-limited crisis services.

  • Rulemaking and standards (new or clarified expectations):

    • LARA would promulgate rules for Part 62 licensure that are consistent with the act, covering:
    • Categories of SUD services requiring licensure
    • Organization, governance, and operation of programs
    • Staffing, services, equipment, and procedures
    • Fiscal and medical audits, quality control, and performance evaluations
    • Physical plant, sanitation, safety, and maintenance
    • Ongoing service quality assessment
    • Other operational and procedural requirements
    • Rules would reflect the intent to harmonize licensure requirements with exemptions and existing licensure for exempt facilities.

Who would be affected

  • Direct providers and programs:

    • Typically, entities offering SUD prevention, treatment, or rehabilitation services would be subject to Part 62 licensure unless exempt.
    • Licensed hospitals, psychiatric facilities, and crisis stabilization units would be exempt from obtaining a Part 62 license for SUD services (though they may already be licensed under their respective authorities).

  • Indirectly affected entities:

    • Municipal health facilities corporations and their subsidiaries (per HB 5730’s scope) would need to refer to licensure definitions consistent with Part 62 and exemptions.
    • Other companion acts and related codes (Prudent Purchaser Act, Mental Health Code, Zoning Act, Vehicle Code, etc.) are mapped to align with these licensure changes via companion bills.

Procedural and timeline considerations

  • Enactment dependency:
    • The proposed changes in HB 5730 are tertially tied to HB 5729; HB 5730’s and other companion bills’ provisions take effect only if HB 5729 is enacted into law.
  • Legislative status:
    • As of the latest update, HB 5729 to HB 5738 were introduced and referred to the Health Policy committee, with HB 5730 specifically tied to the threshold enactment of HB 5729.

Financial impact

  • State fiscal impact (HB 5729 basis):
    • Indeterminate impact on the Department of Licensing and Regulatory Affairs (LARA).
    • Potential revenue loss from license fees if entities holding Part 62 licenses for SUD programs no longer require separate licensure (current annual Part 62 license fee is $500).
    • Companion bills (5728 and 5730-5738) are not expected to have a direct fiscal impact on state or local governments beyond what HB 5729 entails.

Key takeaways

  • The package seeks to streamline licensure for SUD services by clarifying exemptions and ensuring licensing rules are consistent with Part 62, while preserving exemptions for certain licensed facilities.
  • It represents a technical, conforming change rather than a broad expansion of SUD service regulation.
  • Fiscal effects hinge on how many facilities would lose licensure requirements under Part 62 if HB 5729 (the substantive licensure reform) becomes law.

Compiled from official sources — confirm details with the bill’s official record.

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