Court Opinion

ID: 9687624
Source: CourtListenerOpinion
Date Created: 2023-08-24 16:39:44.422511+00
Date Added: 2024-06-11T18:18:29.425961
License: Public Domain

Connor, J.
(dissenting). I dissent. I would hold *390that the Department of Mental Health (dmh) did not violate the Administrative Procedures Act, MCL 24.201 et seq.; MSA 3.560(101) et seq., by revising the standard contract provisions at issue without treating the revision as the making of a rule within the meaning of the apa.
Generally, a "rule” is an agency policy of general applicability that prescribes the practice of the agency. MCL 24.207; MSA 3.560(107). However, the apa definition of rule specifically excludes "guidelines” that are promulgated by the agency. See MCL 24.207(h); MSA 3.560(107)(h). "Guidelines” are declarations of agency policy binding on the agency issuing them, but not on any other person, which do not have the force or effect of law. MCL 24.103(6); MSA 3.560(103)(6). Guidelines necessarily prescribe some agency practice.
I am satisfied that the guideline that accompanied the adoption of new standard contract language is actually a guideline and not a rule. It is binding only on the dmh and on no other person. Moreover, it does not purport to have the force or effect of law: it expressly allows for the director of the dmh to authorize departures from the standard contract language.
I am also satisfied that adopting standard contract language is not rulemaking. Standard contract language is binding on no one, neither the dmh nor anyone else, until someone agrees to be bound by the language. Even taking a position that no deviation from the language will be permitted is simply hard bargaining: parties seeking to contract with the dmh are free to counteroffer with any language they wish. The dmh has the statutory power to contract as is appropriate. MCL 330.1116(j); MSA 14.800(116)(j). The dmh’s decision to contract with private group providers is a per*391missive exercise of its statutory power, and the department has discretion to determine what is necessary or appropriate language in the contract to fulfill the duties imposed on it. If an agency’s decision whether to exercise such statutory power is not rulemaking, MCL 24.207(j); MSA 3.560(107) (j), then I agree with the trial court that the agency’s decision regarding the terms under which it will exercise that power is not rulemaking.
I would affirm.