SENATE BILL NO. 919 EXECUTIVE BUDGET BILL February 24, 1998, Introduced by Senators CISKY, HOFFMAN, STEIL, GOUGEON, and MC MANUS and referred to the Committee on Appropriations. A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 1999; to provide for the expenditure of the appropriations; to provide for certain powers and duties of the department of military and veterans affairs, other state agencies, and local units of government related to the appropriations; and to provide for the preparation of certain reports related to the appropriations.THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. 101. There is appropriated for the department of military and veterans affairs, for the fiscal year ending September 30, 1999, from the funds identified as follows: DEPARTMENT OF MILITARY AND VETERANS AFFAIRS APPROPRIATIONS SUMMARY: Full-time equated unclassified positions. . . . . . . 7.0 Full-time equated classified positions. . . . . . 1,042.0 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 85,762,500 Interdepartmental grant revenues: Total interdepartmental grants and intradepartmental transfers . . . . . . . . 0 ADJUSTED GROSS APPROPRIATION . . . . . . . . . . . . . . $ 85,762,500 Federal revenues: Total federal revenues . . . . . . . . . . . . . . . . 27,970,100 Special revenue funds: Total local revenues . . . . . . . . . . . . . . . . . 0 Total private revenues . . . . . . . . . . . . . . . . 375,000 Total other state restricted revenues. . . . . . . . . 20,941,600 State general fund/general purpose . . . . . . . . . . $ 36,475,800 HEADQUARTERS AND ARMORIES Full-time equated unclassified positions. . . . . . . 7.0 Full-time equated classified positions. . . . . . . 105.0 Headquarters and armories--105.0 FTE positions . . . . . . . . . . . . $ 9,438,400 Unclassified military personnel. . . . . . . . . . . . 561,800 Military appeals tribunal. . . . . . . . . . . . . . . 900 Michigan emergency volunteers. . . . . . . . . . . . . 5,000 State active duty. . . . . . . . . . . . . . . . . . . 60,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 10,066,100 Appropriated from: Federal revenues: DOD-DOA-NGB. . . . . . . . . . . . . . . . . . . . . . 1,685,900 Special revenue funds: Armory rentals . . . . . . . . . . . . . . . . . . . . 350,000 Mackinac bridge authority. . . . . . . . . . . . . . . 40,000 State general fund/general purpose . . . . . . . . . . $ 7,990,200 MILITARY TRAINING SITES AND SUPPORT FACILITIES Full-time equated classified positions. . . . . . . 229.0 Military training sites and support facilities-- 229.0 FTE positions . . . . . . . . . . . . . . . . . . $ 11,655,200 Military training sites and support facilities test projects. . . . . . . . . 100,000 Enlisted per diem payments . . . . . . . . . . . . . . 340,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 12,095,200 Appropriated from: Federal revenues: DOD-DOA-NGB. . . . . . . . . . . . . . . . . . . . . . 10,087,100 Special revenue funds: Test project fees . . . . . . . . . . . . . . . . . . 100,000 State general fund/general purpose . . . . . . . . . . $ 1,908,100 DEPARTMENTWIDE APPROPRIATIONS Departmentwide accounts. . . . . . . . . . . . . . . . $ 2,069,500 Special maintenance-state. . . . . . . . . . . . . . . 436,200 Special maintenance-federal. . . . . . . . . . . . . . 2,302,000 Equipment safety training. . . . . . . . . . . . . . . 59,800 Military contingency fund. . . . . . . . . . . . . . . 100 Military retirement. . . . . . . . . . . . . . . . . . 2,166,900 Counter narcotic operations. . . . . . . . . . . . . . 50,000 Starbase grant. . . . . . . . . . . . . . . . . 250,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 7,334,500 Appropriated from: Federal revenues: DOD-DOA-NGB. . . . . . . . . . . . . . . . . . . . . . 3,824,000 DOJ-DEA. . . . . . . . . . . . . . . . . . . . . . . . 50,000 Special revenue funds: . . . . . . . . . . . . . . . . . State general fund/general purpose . . . . . . . . . . $ 3,460,500 VETERANS' SERVICE ORGANIZATIONS American legion. . . . . . . . . . . . . . . . . . . . $ 710,400 Disabled American veterans . . . . . . . . . . . . . . 645,000 Marine corps veterans. . . . . . . . . . . . . . . . . 296,300 American veterans of World War II and Korea. . . . . . 409,300 Veterans of foreign wars . . . . . . . . . . . . . . . 780,300 Michigan paralyzed veterans of America . . . . . . . . 145,900 Purple heart . . . . . . . . . . . . . . . . . . . . . 139,100 Veterans of World War I. . . . . . . . . . . . . . . . 100 Polish legion of American veterans . . . . . . . . . . 36,400 Jewish veterans of America . . . . . . . . . . . . . . 36,400 State of Michigan council-Vietnam veterans of Michigan. . . . . . . . . 96,100 Catholic war veterans. . . . . . . . . . . . . . . . . 11,600 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 3,306,900 Appropriated from: State general fund/general purpose . . . . . . . . . . $ 3,306,900 GRAND RAPIDS VETERANS' HOME Full-time equated classified positions. . . . . . . 539.0 Grand Rapids veterans' home--539.0 FTE positions . . . . . . . . . . . $ 36,000,300 Board of managers . . . . . . . . . . . . . . . 300,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 36,300,300 Appropriated from: Federal revenues: DVA-VHA. . . . . . . . . . . . . . . . . . . . . . . . 8,821,200 HHS-HCFA, medicare, hospital insurance . . . . . . . . 374,700 Special revenue funds: Private-veterans' home post and posthumous funds . . . . . . . . . . . 300,000 Income and assessments . . . . . . 12,022,900 State general fund/general purpose . . . . . . . . . . $ 14,781,500 D.J. JACOBETTI VETERANS' HOME Full-time equated classified positions. . . . . . . 153.0 D.J. Jacobetti veterans' home--153.0 FTE positions . . . . . . . . $ 11,639,200 Board of managers . . . . . . . . . . . . . . . 75,000 GROSS APPROPRIATION. . . . . . . . . . . . . . . . . . $ 11,714,200 Appropriated from: Federal revenues: DVA-VHA. . . . . . . . . . . . . . . . . . . . . . . . 2,833,200 HHS-HCFA, medicare, hospital insurance . . . . . . . . 294,000 Special revenue funds: Private-veterans' home post and posthumous funds . . . . . . . . . . . 75,000 Income and assessments . . . . . . . . . . . . . . . . 3,737,300 State general fund/general purpose . . . . . . . . . . $ 4,774,700 MICHIGAN VETERANS' TRUST FUND Full-time equated classified positions. . . . . . . .16.0 Veterans' affairs directorate administration--3.0 FTE positions . . . . . . $ 253,900 Administration--13.0 FTE positions . . . . . . . . . . 944,900 Veterans' trust fund grants. . . . . . . . . . . . . . 3,746,500 GROSS APPROPRIATION . . . . . . . . . . . . . . . $ 4,945,300 Appropriated from: Special revenue funds: Michigan veterans' trust fund. . . . . . . . . . . . . 4,691,400 State general fund/general purpose . . . . . . . . . . $ 253,900 GENERAL SECTIONS Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 1998-99 is estimated at $57,417,400.00 in this bill and state spending from state sources paid to local units of government for fiscal year 1998-99 is estimated at $60,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur: DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Military Training Sites and support facilities- payments in lieu of taxes . . . . . . . . . . . . . . $ 60,000 Total . . . . . . .$ 60,000 (2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director. Sec. 202. The expenditures and funding sources authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594. Sec. 203. (1) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $1,900,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (2) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $1,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (3) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (4) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. Sec. 204. The department of civil service shall bill departments and/or agencies, at the end of the first fiscal quarter for the 1% charges authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter. Sec. 205. As used in this bill: (a) "Department" means the department of military and veterans affairs. (b) "Director" means the director of the department of military and veterans affairs. (c) "DOD" means the United States department of defense. (d) "DOD-DOA-NGB" means the DOD department of the army, national guard bureau. (e) "DOJ" means the United States department of justice. (f) "DOJ-DEA" means the DOJ drug enforcement agency. (g) "DVA" means the United States department of veterans affairs. (h) "DVA-VHA" means the DVA veterans health administration. (i) "FTE" means full-time equated position. (j) "HHS" means the United States department of health and human services. (k) "HHS-HCFA" means the HHS health care financing administration. Sec. 206. (1) Pursuant to the department provisions of civil service rules and regulations and applicable collective bargaining agreements, an individual seeking employment with the department shall submit to a controlled substance test administered by the department. (2) An individual seeking employment with the department who refuses to take a controlled substance test or who tests positive for the illegal use of a controlled substance on such a test shall be denied employment by the department for a minimum of 1 year. Sec. 207. (1) Beginning October 1, 1998, there is a hiring freeze imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees or prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department or to positions that are 80% or more federal or restricted funds. (2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in the state department or agency being unable to deliver basic services. The state budget director shall report by the fifteenth of each month to the chairpersons of the senate and house appropriations committees the number of exclusions to the hiring freeze approved during the previous month and the justification for the exclusion. Sec. 208. (1) The department shall submit to the department of management and budget, the house and senate appropriations committees, the house and senate fiscal agencies and the house and senate standing committees having jurisdiction over technology issues, periodic reports on the department's efforts to change the department's computer software and hardware as necessary to perform properly in the year 2000 and beyond. These reports shall identify actual progress in comparison to the department's approved work plan for these efforts. (2) The department may present progress billings to the department of management and budget for the costs incurred in changing computer software and hardware as necessary to perform properly in the year 2000 and beyond. At the time progress billings are presented for reimbursement, the department shall identify and forward as appropriate the funding sources that should support the work performed. HEADQUARTERS AND ARMORIES Sec. 301. The department may charge a reasonable rental fee for renting an armory. The fee shall include the cost of overtime compensation, insurance coverage, and any maintenance required. DEPARTMENTWIDE APPROPRIATIONS Sec. 401. Money appropriated in section 101 for the military duty contingency fund shall be used to fund nonfederally supported missions of the national guard when called to state duty. Sec. 402. The Michigan veterans' memorial park commission may receive and expend gifts, contributions, and bequests from any person, public or private corporation, organization, foundation, governmental entity, or any other source for the purpose of establishing a veterans' memorial park as described in Executive Order No. 1992-12. Money contributed to the Michigan veterans' memorial park commission shall be deposited in the state treasury through the department and shall be available for expenditure. Project costs authorized by this act shall not exceed the gifts, contributions, and bequests received. Money under this section and any specific work orders or projects adopted by the Michigan veterans' memorial park commission in accordance with section 451(4) of the management and budget act, 1984 PA 431, MCL 18.1451, shall not lapse at the end of this fiscal year but shall be available for expenditure until September 30, 2000. Expenditures shall be in accordance with methods and procedures approved by the Michigan veterans' memorial park commission, the department, and appropriate state agencies. Sec. 403. Money available from the Michigan national guard armory construction fund created in section 382a of the Michigan military act, 1967 PA 150, MCL 32.782a, is appropriated for expenditure for the purposes specified in section 382a of 1967 PA 150, MCL 32.782a. VETERANS' SERVICE ORGANIZATIONS Sec. 501. (1) Money appropriated in section 101 for grants to veterans' service organizations shall be used only for salaries, wages, related personnel costs, training, and equipment for accredited veteran service advocacy officers and necessary support and managerial staff. Training shall be provided for service advocacy officers and shall be conducted by accredited advocacy officers. (2) To receive a grant from the money appropriated in section 101, a veterans' service organization shall meet the following eligibility requirements: (a) Be congressionally chartered by the United States congress. (b) Be an active participating member of the Michigan veterans organizations' rehabilitation and veterans service committee and abide by its rules, guidelines, and programs. (c) Demonstrate the receipt of monetary or service support from its own organization. (d) Comply with the department's and the legislature's requirements of accounting audits, service work activity, accounting of recoveries, listing of volunteer hours, budget requests, and other requirements specified in subsection(3). (e) For a veterans' service organization founded after September 30, 1989, be in operation and providing service to Michigan veterans for not less than 2 years before receiving an initial state grant. During this 2-year period of time, the organization shall file a listing of service work activity and an accounting of recoveries with the department, the senate and house fiscal agencies, and the senate and house subcommittees on military affairs on forms as prescribed by the department. (3) A veterans' service organization receiving a grant from the money appropriated in section 101 shall file with the department a certified accounting of its expenditures within 120 days after the organization's fiscal year end. Each organization shall provide a detailed budget request for the fiscal year ending September 30, 2000, to the department by November 15, 1998, within the format as prescribed by the department to be used in the development of the budget ending September 30, 2000. Each veterans' service organization shall provide 5 copies of a listing of all service activity, an accounting of recoveries, and a listing of volunteer hours for the fiscal year ending September 30, 1998, to the department by January 31, 1999. The listing of volunteer hours shall include the hours, services, and donations provided to residents of the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home. A veterans' service organization receiving a grant from the money appropriated in section 101 shall use the forms recommended by the Michigan veterans organizations' rehabilitation and veterans service committee for filing reports required by this bill. The department shall forward information required under this section to the senate and house fiscal agencies and to the senate and house appropriations subcommittees on military affairs. Sec. 502. Appropriations in section 101 for veterans' service organizations shall include funding to provide services to veterans of World War I. VETERANS' HOMES Sec. 601. Appropriations in section 101 for the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home shall not be used for any purpose other than for veterans and veterans' families. Sec. 602. The money appropriated in section 101 for the boards of managers may be expended for facility improvements, the purchase and repair of equipment and furnishings, member services, and other purposes that benefit the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home. Sec. 603. The money appropriated in section 101 for the boards of managers of the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home shall be considered a work project account and unexpended money remaining at the close of the fiscal year shall not lapse to the general fund but shall be carried forward to the subsequent fiscal year. VETERANS' TRUST FUND Sec. 701. In compliance with the various veterans' benefit programs funded by this state, a veteran who is denied benefits as a result of lack of properly disseminated information or due to misinformation relative to benefit eligibility shall be provided a review hearing by the Michigan veterans' trust fund board. Sec. 702. The department may receive and expend revenue deposited to the Vietnam veterans memorial monument fund created under section 3 of the Michigan Vietnam veterans memorial act, 1988 PA 234, MCL 35.1053.final page