Summary — HB 4833 (Substitute H-2) — Licensure of Substance Use Disorder Services
Status & procedural history
- Bill: HB 4833 (substitute H-2). Amends Part 62 (Substance Abuse Services) of the Public Health Code (MCL 333.6230 et seq.).
- Sponsor (original): Rep. Ranjeev Puri. Substitute adopted and passed the Michigan House on December 13, 2024.
- Current status: Referred to the Committee on Government Operations (transmitted from House Dec. 13–18, 2024).
- Key sections amended: MCL 333.6230, 333.6233, 333.6234, 333.6235, 333.6236, and 333.6251.
Purpose / intent
- Narrow the Part 62 licensing requirement so it applies to programs that offer substance use disorder (SUD) treatment and rehabilitation services, and remove the mandatory Part 62 licensure requirement for providers that only offer SUD prevention services.
Key provisions and changes
- Definitions: Incorporates definitions of “substance use disorder prevention services” and “substance use disorder treatment and rehabilitation services” consistent with section 100d of the Mental Health Code (MCL 330.1100d). (Sec. 6230)
- Licensure scope (Sec. 6233):
- A person not otherwise licensed to provide psychological, medical, or social services may not operate a program that offers any SUD treatment or rehabilitation service unless licensed under Part 62.
- A Part 62 license is not required solely to provide SUD prevention services.
- Exemptions retained/clarified: entities otherwise licensed to provide psychological/medical/social services; hospitals licensed under Article 17 of the Public Health Code; psychiatric hospitals or psychiatric units licensed under the Mental Health Code; and a historic private nonprofit exemption (501(c)(3) orgs in existence before Sept. 30, 1965, whose major purpose is residential services for certain drug-affected populations).
- Rulemaking (Sec. 6234): Department of Licensing and Regulatory Affairs (LARA) may promulgate rules under the Administrative Procedures Act for administration and licensing of SUD treatment and rehabilitation programs.
- Application / notice (Sec. 6235): License applications must be on a department form and authorize background information checks; initial applicants must include evidence of notice to churches, schools, and nonprofit civic organizations in the applicant’s service area.
- Public comment and licensing decisions (Sec. 6236): The department must provide an opportunity for individuals in the applicant’s service delivery area to comment before issuing a license and base decisions on the applicant’s ability to comply with statutory/rule requirements; denials must be explained in writing.
- Enforcement (Sec. 6251): LARA may seek injunctions or other process to stop unlicensed operation of SUD treatment and rehabilitation programs or where operation is likely to cause serious harm.
Who is affected
- Directly affected: organizations that provide SUD prevention services (no longer required to obtain Part 62 licensure solely for prevention), and entities providing SUD treatment and rehabilitation services (still subject to Part 62 licensure except for enumerated exemptions).
- State agencies: LARA (licensing administration and enforcement) and entities that will interact with notice/comment requirements in local service areas.
- Communities: providers, churches, schools, and local nonprofit organizations that receive notice of proposed treatment program licensing.
Fiscal impact
- Estimated reduction in LARA revenue: approximately $70,000 annually (projected decrease to the Health Systems Fees state restricted fund), due to elimination of duplicative licensure requirements and related changes.
Notes and implications
- The bill distinguishes prevention from treatment in licensing law, reducing regulatory burden for prevention-only programs while maintaining licensure and oversight for treatment/rehabilitation services.
- It preserves several existing exemptions and retains processes for notice, public comment, rulemaking, and enforcement against unlicensed treatment providers.
- As of the last House action (Dec. 13, 2024), the bill awaits further executive/committee or Senate action.
