Michigan Compiled Laws, Chapter 333. Health § 333.21321

Sec. 21321. (1) Before issuance of a license under this article, the owner, operator, or governing body of the applicant shall give a bond with a surety approved by the department. The bond shall insure the department for the benefit of the residents. The bond shall be conditioned that the applicant do all of the following:

(2) The bond shall be in an amount equal to not less than 1- 1/4 times the average balance of resident funds held during the prior year. The department may require an additional bond or permit filing of a bond in a lower amount, if the department determines that a change in the average balance has occurred or may occur. An applicant for a new license shall file a bond in an amount which the department estimates as 1- 1/4 times the average amount of funds which the applicant, upon issuance of the license, is likely to hold during the first year of operation.