(By authority conferred on the department of community health by Executive  
Reorganization Order No. 1996-1, MCL 330.3101)  
R 330.1601 Definitions.  
Rule 1601. As used in these rules:  
(a) "Autistic impaired" means an eligible minor who is determined to have an  
eligibility category of autism pursuant to R 340.1715 and who is receiving special  
education services in 1 of the following programs:  
(i) Programs for students with autism as specified in R340.1758(1).  
(ii) Programs for students with severe cognitive impairment as specified in R  
(iii) Programs for students with severe multiple impairments as specified in R  
(b) "Month of eligibility" means the month the family member, for whom  
application has been made, meets the requirements for participation in the program,  
regardless of the month the eligibility is verified by the community mental health  
(c) "Severely mentally impaired" means an eligible minor who is determined to  
have an eligibility category of cognitive impairment pursuant to R 340.1705 and  
who shows development at a rate of approximately 4-1/2 or more standard deviations  
below the mean as determined through intellectual assessment.  
(d) "Severely multiply impaired" means an eligible minor who is determined to have  
an eligibility category of severe multiple impairment pursuant to R 340.1714.  
History: 1984 AACS; 2003 AACS.  
R 330.1606 Rescinded.  
History: 1984 AACS; 2003 AACS.  
R 330.1607 Diagnostic determination and classroom placement verification.  
Rule 1607. (1) An applicant for the family support subsidy program shall provide  
written verification from the public school which the family member attends or  
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would attend if the family member were in the public school system which shall  
report the diagnostic category recommended for the family member by the school's  
multidisciplinary evaluation team.  
(2) If the family member has been recommended by the multidisciplinary  
evaluation team for the diagnostic category of autistic impaired, then the parent or legal  
guardian shall ensure that the written verification includes the classroom or program  
placement that is required for family members who are determined to be autistic  
History: 1990 AACS.  
R 330.1611 Entitlement grants not income.  
Rule 1611. The family support subsidy program is an entitlement program which  
is administered by the department and county programs. The family support subsidy  
shall not be deemed to be income for the purposes of part 8 of these rules. Unless  
otherwise specifically funded by the legislature, utilization of the funds appropriated is  
restricted to the payment of actual grants.  
History: 1984 AACS.  
R 330.1613 Program participants not recipients.  
Rule 1613. Family members, as defined in the act, will not be deemed recipients  
of mental health services solely by participation in the family support subsidy program,  
and therefore are not subject to the requirements or protections for recipients as provided  
in the act.  
History: 1984 AACS.  
R 330.1616 Availability of forms.  
Rule 1616. Copies of blank application forms, parent report forms, the forms for  
changed family circumstances, and appeal forms shall be available from the  
community mental health program.  
History: 1984 AACS.  
R 330.1621 Application; notice of changed family circumstances; failure to file.  
Rule 1621. (1) A parent or legal guardian may apply for a family support subsidy  
if he or she believes a family member is eligible for the subsidy or will become eligible  
in the near future.  
(2) An applicant shall file a completed application  
documentation with the community mental health board serving the county of  
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(3) When a change of family circumstances occurs or is anticipated which affects  
the eligibility of the family member or administration of the program, such as  
income exceeding the statutory limit or a change of name, address, or living  
arrangement, the parent or legal guardian shall complete the prescribed form and  
file it with the community mental health program within 2 weeks of the change.  
(4) Failure to file the form required under subrule (3) of this rule, when such  
failure allows an inappropriate continuation of eligibility, shall subject a family  
which continues to utilize the program to liability, and the family shall promptly  
repay the amount illegally received, together with interest at the rate authorized by  
section 6013(2) of Act No. 236 of the Public Acts of 1961, as amended, being  
S600.6013(2) of the Michigan Compiled Laws.  
History: 1984 AACS; 1990 AACS.  
R 330.1626 Parent report form.  
Rule 1626. To continue in the program, the parent or legal guardian shall  
submit the parent report form to the community mental health program during the  
month in which, or up to 90 days before, the family member's birthday occurs. If the  
family member's birthday occurs within 3 months of initial application, submission of  
the parent report form shall not be required until the birth month of the following  
History: 1984 AACS; 1990 AACS.  
R 330.1631 Ineligibility due to out-of-home placement.  
Rule 1631. (1) A family member becomes ineligible for the subsidy program  
if the family member resides out of the home in a publicly supported residential  
setting for more than a total of 15 days during each of 2 consecutive calendar months for  
reasons other than physical health care.  
(2) Reapplication for family members who were deemed ineligible under this  
rule may occur in any month following the month that the family member became  
History: 1984 AACS.  
R 330.1636 One-time lump sum payment.  
Rule 1636. For the purpose of section 158(1)(c) of the act, a 1-time, lump sum  
payment will also be available to family members who had previously  
participated in the family support subsidy if both of the following provisions are  
(a) Subsequent ineligibility was due to out-of-home placement.  
(b) The family member's placement currently exists and has existed for more than  
1 year.  
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History: 1984 AACS.  
R 330.1641 Application review.  
Rule 1641. A community mental health program shall review an application and  
promptly approve or deny the application and shall provide written notice to the  
applicant of its action and of the opportunity to administratively appeal the  
decision if the decision is to deny the application. If the denial is due to the  
insufficiency of the information on the application form or the required attachments,  
the board shall identify the insufficiency.  
History: 1984 AACS.  
R 330.1643 Appeal.  
Rule 1643. If an application is denied or the subsidy terminated, a parent or  
legal guardian may file an appeal. The appeal shall be in writing and be presented  
to the community mental health program within 2 months of the notice of denial or  
History: 1984 AACS.  
R 330.1646 Program coverage; calculation.  
Rule 1646. Program coverage will be calculated on a monthly basis. If a family  
member becomes qualified for the program, coverage will start the calendar month  
following the month of eligibility or  
application, whichever occurs later. If  
eligibility terminates during a month, coverage will continue for that calendar month.  
History: 1984 AACS.  
R 330.1651 Forms.  
Rule 1651. (1) The form for application for participation in the family support  
subsidy program shall meet the requirements of section 157 of the act and shall assist  
in the development of information necessary to administer the program.  
(2) In addition to the application form specified in subrule (1) of this rule, the  
department shall also prescribe the following:  
(a) The form for changed family circumstances.  
(b) The parent report form.  
(c) The format, the time for submission, and the instructions for the reporting of  
information by the community mental health program to the department for the  
general information which is necessary to comply with the provisions of section 161  
of the act and with the contract allocation system.  
History: 1984 AACS.  
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R 330.1656 Verification of income eligibility.  
Rule 1656. (1) Verification of income eligibility may be accomplished utilizing  
1 of the following provisions:  
(a) Examination of the taxable income line of the family's previous year Michigan  
income tax return.  
(b) If a Michigan income tax form was not filed, the family's federal or other  
state's previous year income tax returns may be used.  
(c) If the information specified in subdivisions (a) and (b) of this subrule is not  
available, then other evidence of current incomes may be used as verification from  
which a projection of family income can be made.  
(d) For a new applicant, if the previous year's taxable income would make the  
family member ineligible, but the current year's taxable income would make the family  
member eligible, then verification of income eligibility shall be accomplished by  
examination of the evidence of current incomes from which a projection of family  
income shall be made.  
(2) A family that loses eligibility for the family support subsidy program due to a  
taxable income of more than $60,000.00 shall not reapply until 1 year after the  
termination of the subsidy.  
(3) A family in repayment status with this program shall not reapply until its debt is  
History: 1984 AACS; 1990 AACS; 2003 AACS.  
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