The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 5495

June 6, 1979

COUNTIES:

Financial liability for county residents served in a state hospital or a state developmental career

MENTAL HEALTH CODE:

Financial liability of counties for county residents served in a state hospital or a state developmental center

The fact that a county has discharged its financial liability with respect to persons who are currently in state hospitals and centers or who may in the future be readmitted to such hospitals and centers under the provisions of 1923 PA 151 does not affect the financial liability imposed by section 302 of the Mental Health Code upon the county for those same persons.

Mr. Gerald H. Miller

Director

Department of Management and Budget

Lewis Cass Building

Lansing, Michigan 48909

You have requested my opinion on the issue of financial liability of counties for county residents served in state hospitals and state developmental centers. This issue has been raised because 1923 PA 151, Sec. 11 provided, inter alia:

'. . . In case the admission of such mentally diseased person is ordered as a patient after the effective date of this act, then the county of which such person is resident shall be liable to the state for the care and maintenance of such patient for one year. . . .'

1923 PA 151 was repealed by 1974 PA 258, Sec. 1106 of the Mental Health Code; MCLA 330.2106; MSA 14.800(1106). Section 302 of the Mental Health Code, however, makes the following provisions for county financial liability:

'Except as is otherwise provided in this chapter, a county shall be financially liable for 10% of the net cost of any service, excluding a service provided to an individual under criminal sentence to a state prison, that is provided by the department [of mental health], directly or by contract, to a resident of that county.' MCLA 300.1302; MSA 14.800(302)

You state that the department of mental health estimates that 6,554 persons in state hospitals or state developmental centers on the effect date of 1974 PA 258, Sec. 302, supra, had been residents therein (not necessarily continuously) for one year or more. You note that as to those persons, the counties have discharged their financial liability under the provisions of 1923 PA 151, as they may have with respect to other individuals who may be re-admitted to state hospitals and centers.

You ask whether under the provisions of Sec. 302, supra, the counties of residence are financially liable for individuals in state hospitals and in state developmental centers, or who may be re-admitted to state hospitals and state developmental centers, when the county has previously met its financial liability under the provisions of 1923 PA 151 by paying for the care and maintenance of such individuals for a period of one year?

In Washington-Detroit Theater Co v Moore, 249 Mich 673, 680; 229 NW 618, 620 (1930), the court ruled upon the sovereign power of the legislature as follows:

'While the legislature obtains legislative power and the courts receive judicial power by grant in the State Constitution, the whole of such power reposing in the sovereignty is granted to those bodies except as it may be restricted in the same instrument. . . .'

'The legislative power is the authority to make, alter, amend, and repeal laws. . . . In this State, it is co-extensive with that of the parliament of England, save as limited and restrained by the State and Federal Constitutions. . . . One legislature cannot limit or restrict the power of its successor. . . .' Harsha v Detroit, 261 Mich 586, 590; 246 NW 849 (1933) (citations omitted).

Const 1963, art 7, Sec. 1, provides:

'Each organized county shall be a body corporate with powers and immunities provided by law.'

In commenting upon the comparable provision of the 1908 Constitution in Wright v Bartz, 339 Mich 55, 60; 62 NW2d 458 (1954), the court said:

'Each organized county has such powers and immunities as shall be established by law, and boards of supervisors have such powers as shall be prescribed by law. Const 1908, art 8, Secs. 1, 7.

"Counties have delegated powers only.' Bond v Cowan, 272 Mich 296, 298.'

There are numerous Michigan cases that recognize the power of the legislature to impose financial costs or financial liability upon counties. Two of the more recent cases are Resist v Bay Circuit Judge, 396 Mich 326; 241 NW2d 55 (1976), (payment of attorney fees and transcript for an indigent parent for an appeal from a decision of a probate court terminating parental rights), and McLachlan v Secretary of State, 396 Mich 365; 240 NW2d 472 (1976), (order) (payment of local units of government for the cost of a legislatively mandated presidential primary). (1)

By the enactment of 1923 PA 151, the legislature imposed upon the counties a limited financial liability for the care and maintenance of mentally diseased persons admitted to state institutions. This liability was imposed pursuant to the legislature's authority to make law. Pursuant to the same power, the legislature enacted the Mental Health Code, supra, which voided the county's financial liability under 1923 PA 151 and imposed a new financial liability. Neither the State nor Federal constitutions restrained the financial liability imposed upon counties by 1923 PA 151; nor did the State and Federal Constitutions restrain the imposition of the financial liability imposed by 1974 PA 258, Sec. 302, supra.

It is therefore my opinion that the fact that a county had discharged its financial liability under the provisions of 1923 PA 151 with respect to persons who are currently in state hospitals and centers, or who may in the future be re-admitted to such hospitals and centers, does not affect the financial liability imposed by 1974 PA 258, Sec. 302, supra, for those same persons.

Frank J. Kelley

Attorney General

(1) Const 1963, art 9, Sec. 25, ratified by the people on November 7, 1978, currently provides in part:

'. . . The state is prohibited from requiring any new or expanded activities by local governments without full state financing, from reducing the proportion of state spending in the form of aid to local governments, or from shifting the tax burden to local government.'