DEPARTMENT OF COMMUNITY HEALTH  
POLICY AND LEGAL AFFAIRS ADMINISTRATION  
MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES  
FAMILY SUPPORT SUBSIDY PROGRAM  
(By authority conferred on the department of community health by Executive  
Reorganization Order No. 1996-1, MCL 330.3101)  
SUBPART 6. FAMILY SUPPORT SUBSIDY PROGRAM  
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 340.1738.  
(iii) Programs for students with severe multiple impairments as specified in R 340.1748.  
(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 program.  
(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R 330.1606 Rescinded.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 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.  
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(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 impaired.  
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 and all required documentation with  
the community mental health board serving the county of residence.  
(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  
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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 year.  
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 ineligible.  
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 met:  
(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.  
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.  
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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 termination.  
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.  
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  
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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 repaid.  
History: 1984 AACS; 1990 AACS; 2003 AACS.  
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