DEPARTMENT OF COMMUNITY HEALTH  
MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES  
(By authority conferred on the department of mental health by sections 1 to 4 of Act  
No. 80 of the Public Acts of 1905, as amended, section 33 of Act No. 306 of the Public  
Acts of 1969, as amended, and sections 114, 130,136, 157, 206, 244, 498n, 498r, 842,  
844, 908, and 1002a of Act No. 258 of the Public Acts of 1974, as amended, being  
sections 19.141 to 19.144, 24.233, 330.1114, 330.1130, 330.1136, 330.1206,  
330.1244, 330.1498n, 330.1498r, 330.1842, 330.1844, 330.1908, and 330.2002a of the  
Michigan Compiled Laws)  
PART 3. STATE AND COUNTY FINANCIAL RESPONSIBILITY  
R 330.3005 Inclusion of capital depreciation costs for state services.  
Rule 3005. For the purpose of determining county liability for the cost of services  
provided to county residents in accordance with section 304 of the act, the department  
shall include depreciation costs of equipment and capital investment in operating costs.  
History: 1979 AC.  
R 330.3007 Department definition of approved community mental health  
program costs.  
Rule 3007. The department shall define in policy those programs and  
expenditures approvable for state financing in accordance with chapters 2 and 3 of the  
act. Those policies shall be contained in department program and budget development  
instructions and in the department allocations to community mental health boards of  
available state appropriations.  
History: 1979 AC.  
R 330.3009 Matchable financing of community mental health programs.  
Rule 3009. The net costs of approved community mental health programs for  
which the state shall be proportionately financially responsible in accordance with  
sections 308, 310, and 318 of the act shall include those expenditures supported by  
appropriations and grants from local units of government, from the united fund, and  
from grants or contributions from private sources for purposes other than the care or  
treatment for an individual person. Net costs of approved community mental health  
programs shall not include payments and reimbursements from state agencies, except for  
the state financed portion of payments made in behalf of individuals pursuant to the  
federal and state medical assistance program; the state financed portion of payments for  
social services provided to individuals pursuant to federal and state social services  
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programs; and the state financing of local general government and local general  
education operations.  
History: 1979 AC.  
R 330.3013 Reporting of community mental health costs.  
Rule 3013. For the purposes of determining net cost pursuant to section 310 of the  
act, the costs and revenues of community mental health boards shall be reported to the  
department in a manner specified by the department. The department may withhold  
state reimbursement pending complete submission of required reports.  
History: 1979 AC.  
R 330.3015 Determination of county financial responsibility in base year.  
Rule 3015. The department shall determine the base year of county financial  
responsibility pursuant to section 318 of the act based upon the sum of the locally  
financed net approved expenditures for approved community mental health programs  
plus the county liability for state services to county residents, as a percentage of the  
sum of the net approved costs of approved community mental health programs plus the  
net costs of state services to county residents.  
History: 1979 AC.  
R 330.3016 Custodian of funds.  
Rule 3016. The county treasurer shall be the custodian of funds received and  
expended for the purpose of conducting community mental health programs and for  
payments of the state of county liability for the services by state programs to  
county residents. In the case of a multi-county health district, the treasurer of the  
county in which the district administration is situated shall be the custodian of funds.  
History: 1979 AC.  
R 330.3017 Determination of county of residence.  
Rule 3017. (1) For the purpose of determining county financial liability for the net  
cost of services, the department shall determine the county of residence for patients  
receiving service from state mental health programs pursuant to section 306 of the act.  
(2) When the department has determined a county of residence for financial  
liability, if the county forwards to the department information supporting the  
redetermination and a request for redetermination within 30 days of billing by the  
department, the department shall redetermine the county of residence.  
(3) When the department has determined a county of residence for financial  
liability, if the county forwards to the department information supporting the  
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redetermination and a request for redetermination after 30 days of billing by the  
department, the department may redetermine the county of residence.  
History: 1979 AC; 1986 AACS.  
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