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HB 5728

Health: licensing; references to licenses for certain substance use disorder services programs in the prudent purchaser act; modify to include those exempt from licensure. Amends sec. 2 of 1984 PA 233 (MCL 550.52). TIE BAR WITH: HB 5729'26

2025-2026 Regular Session Introduced by Bill Schuette and 1 co-sponsor

Allows SUD providers exempt from licensure under Part 62 to be included in the Prudent Purchaser Act, with rules harmonizing licensed and exempt standards.

referred to second reading
#health:controlledsubstances #health:licensing #health:substanceusedisorder #health:substanceusedisordertreatment
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Bill Summary · HB 5728

Summary of HB 5728 (2025-2026) – Michigan

This summary covers House Bill 5728, introduced March 18, 2026, which is a companion measure to HB 5729 and ties to HB 5729. The package aims to revise licensure references for substance use disorder (SUD) services to include programs and providers exempt from licensure under Part 62 of Michigan’s Public Health Code, and to make related conforming changes.

Main purpose and intent

  • To update the Prudent Purchaser Act and related statutory references to recognize not only licensed SUD services programs but also programs or individuals exempt from licensure under Part 62 of the Public Health Code.
  • To ensure that references to “licensed SUD services programs” (and related health care providers) also encompass entities that are exempt from licensure, thereby aligning terminology and regulatory framework with current practice and potential exemptions.
  • To require the development and alignment of state rules under Part 62 to cover both licensed and exempt SUD services providers, ensuring consistent standards across licensure and exemption scenarios.

Key provisions and changes

  • Amends section 2 of the Prudent Purchaser Act (MCL 550.52) to:
    • Include within the definition of “health care provider” and related terms those persons or entities that are licensed or exempt from licensure under Part 62 of the Public Health Code.
    • Expand the scope of “health care provider” and “health facility” to explicitly contemplate SUD services programs that are exempt from licensure, in addition to those that are licensed.
  • Adds a tie-bar requirement with HB 5729 (the companion bill), meaning HB 5728 takes effect only if HB 5729 becomes law.
  • Defines and clarifies who qualifies as a “health care provider” and “health facility” for purposes of the Prudent Purchaser Act, incorporating exempt entities under Part 62.
  • Includes a mechanism for aligning rulemaking under the Department of Licensing and Regulatory Affairs (LARA) to set standards applicable to both licensed and exempt SUD services programs, covering:
    • Scope of service categories, program organization, and governance
    • Staffing, services, equipment, policies, and procedures
    • Audits, quality control, and service evaluation
    • Facility and safety requirements
    • Other organizational and procedural standards needed to administer Part 62 consistently

Who and what is affected

  • Affected parties include:
    • Health care providers and health facilities that deliver SUD services, whether they are licensed under Part 62 or exempt from licensure.
    • Hospitals licensed under Article 17 and crisis stabilization units, which would be exempt from the separate SUD program license under Part 62 but remain subject to Part 62 rules and the prudent purchaser framework.
    • Entities involved in the provision or billing of SUD services under Part 62, including potential exempt providers.
  • The bill broadens the definitional scope used in the Prudent Purchaser Act to include exempt providers, potentially affecting procurement and contract practices under prudent purchaser agreements.

Procedural and timeline aspects

  • Tie bar: HB 5728’s effective date is contingent upon passage of HB 5729. If HB 5729 is not enacted, HB 5728 does not take effect.
  • Rulemaking: The legislation directs LARA to promulgate rules for Part 62 to cover both licensed and exempt SUD providers, with detailed standards to be established (categories of services, governance, staffing, audits, quality control, facilities, etc.).
  • Fiscal impact (as analyzed with HB 5729):
    • Potential indeterminate impact on LARA due to adjustments in licensure requirements.
    • Possible reduction in general hospital, psychiatric hospital, and crisis stabilization unit license fees if they are no longer required to hold separate SUD program licenses (the current cited license renewal for SUD programs is $500 annually).
  • The accompanying companion bills (5729 and others in the package) are designed to implement related conforming changes across multiple Acts, ensuring consistency in terminology and applicability of exemptions.

Potential implications and considerations

  • Regulatory clarity: By recognizing exempt providers within the prudent purchaser framework, the bill seeks consistency between licensure status and procurement practices.
  • Compliance burden: Exempt providers would still be subject to LARA rule standards for SUD services, ensuring minimum quality and safety but avoiding the duplicative licensing regime.
  • Fiscal considerations: The state could see reduced license revenue from Part 62 SUD licenses if some entities move from licensed to exempt status, depending on how many entities currently hold licensure.
  • Implementation: Effective implementation will depend on HB 5729’s enactment and the resulting rulemaking by LARA to harmonize licensure and exemption standards.

If you’d like, I can tailor this summary to a particular audience (e.g., policymakers, health system administrators, or the general public) or add a side-by-side comparison with current law.

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

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