SENATE BILL NO. 369 EXECUTIVE BUDGET BILL February 23, 1999, Introduced by Senators HOFFMAN, GOUGEON, MC MANUS, STEIL and GOSCHKA 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, 2000; 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:PART 1 LINE-ITEM APPROPRIATIONS Sec. 101. Subject to the conditions set forth in this bill, the amounts listed in this part are appropriated for the department of military and veterans affairs for the fiscal year ending September 30, 2000, from the funds indicated in this part. The following is a summary of the appropriations in this part: DEPARTMENT OF MILITARY AND VETERANS AFFAIRS APPROPRIATION SUMMARY: Full-time equated unclassified positions . . . . . . .7.0 Full-time equated classified positions . . . 1,042.0 GROSS APPROPRIATION . . . . . . . . $ 91,673,700 Interdepartmental grant revenues: Total interdepartmental grants and intradepartmental transfers. . . . . . . 0 ADJUSTED GROSS APPROPRIATION. . . . . . $ 91,673,700 Federal revenues: Total federal revenues. . . . . . . 31,637,400 Special revenue funds: Total local revenues. . . . . . . . 0 Total private revenues. . . . . . . 375,000 Total other state restricted revenues . . . . . . 22,409,100 State general fund/general purpose. . . . . . . . $ 37,252,200 Sec. 102. HEADQUARTERS AND ARMORIES Full-time equated unclassified positions . . . . . . .7.0 Full-time equated classified positions . . . . 105.0 Headquarters and armories--105.0 FTE positions. . . . . . . $ 9,741,400 Unclassified military personnel . . . . . . . 578,800 Challenge program . . . . . . 1,960,000 Military appeals tribunal . . . . . . . 900 Michigan emergency volunteers . . . . . . . . 5,000 State active duty . . . . . . 60,100 GROSS APPROPRIATION . . . . . . . . $ 12,346,200 Appropriated from: Federal revenues: DOD-DOA-NGB . . . . . . . 2,882,600 Special revenue funds: Armory rentals. . . . . . . . 350,000 Mackinac bridge authority . . . . . . . 40,000 State general fund/general purpose. . . . . . . . $ 9,073,600 Sec. 103. MILITARY TRAINING SITES AND SUPPORT FACILITIES Full-time equated classified positions . . . . 229.0 Military training sites and support facilities-- 229.0 FTE positions. . . . . . . . $ 12,060,700 Military training sites and support facilities test projects . . . . . . 100,000 GROSS APPROPRIATION . . . . . . . . $ 12,160,700 Appropriated from: Federal revenues: DOD-DOA-NGB . . . . . . . 10,439,900 Special revenue funds: Test project fees . . . . . . 100,000 State general fund/general purpose. . . . . . . . $ 1,620,800 Sec. 104. DEPARTMENTWIDE APPROPRIATIONS Departmentwide accounts . . . . . . $ 1,849,000 Special maintenance-state . . . . . . . 436,200 Special maintenance-federal . . . . . . 2,361,800 Military retirement . . . . . . . . 2,166,900 Counternarcotic operations. . . . . . . 50,000 Starbase grant . . . . . . . 250,000 GROSS APPROPRIATION . . . . . . . . $ 7,113,900 Appropriated from: Federal revenues: DOD-DOA-NGB . . . . . . . 3,824,000 DOJ-DEA . . . . . . 50,000 Special revenue funds: State general fund/general purpose. . . . . . . . $ 3,239,900 Sec. 105. VETERANS' SERVICE ORGANIZATIONS American legion . . . . . . . $ 738,800 Disabled American veterans. . . . . . . 670,800 Marine corps veterans . . . . . . . 308,100 American veterans of World War II and Korea . . . . . . 425,700 Veterans of foreign wars. . . . . . . . 811,500 Michigan paralyzed veterans of America. . . . . . 151,700 Purple heart. . . . . . . 144,700 Veterans of World War I . . . . . . 100 Polish legion of American veterans. . . . . . . . 37,800 Jewish veterans of America. . . . . . . 37,800 State of Michigan council - Vietnam veterans . . . . . . . of America . . . . . . . 146,100 Catholic war veterans . . . . . . . 12,100 GROSS APPROPRIATION . . . . . . . . $ 3,485,200 Appropriated from: State general fund/general purpose. . . . . . . . $ 3,485,200 Sec. 106. GRAND RAPIDS VETERANS' HOME Full-time equated classified positions . . . . 539.0 Grand Rapids veterans' home--539.0 FTE positions. . . . . . $ 38,853,600 Board of managers . . . . . . 300,000 GROSS APPROPRIATION . . . . . . . . $ 39,153,600 Appropriated from: Federal revenues: HHS-HCFA, Medicare, hospital insurance. . . . . . 412,200 DVA-VHA . . . . . . 10,603,500 Special revenue funds: Private-veterans' home post and posthumous funds. . . . . . 300,000 Income and assessments. . . . . . . 12,954,100 Lease revenue . . . . . . 75,000 State general fund/general purpose. . . . . . . . $ 14,808,800 Sec. 107. D.J. JACOBETTI VETERANS' HOME Full-time equated classified positions . . . . 153.0 D.J. Jacobetti veterans' home--153.0 FTE positions. . . . . . . . $ 12,356,300 Board of managers. . . . . . . 75,000 GROSS APPROPRIATION . . . . . . . . $ 12,431,300 Appropriated from: Federal revenues: DVA-VHA . . . . . . 3,118,700 HHS-HCFA, Medicare, hospital insurance . . . . . . . . 306,500 Special revenue funds: Private-veterans' home post and posthumous funds. . . . . . . . 75,000 Income and assessments. . . . . . . 4,198,600 State general fund/general purpose. . . . . . . . $ 4,732,500 Sec. 108. MICHIGAN VETERANS' TRUST FUND Full-time equated classified positions . . . . .16.0 Veterans' affairs directorate administration--3.0 FTE positions. . . . . . $ 291,400 Administration--13.0 FTE positions. . . . . . . . 944,900 Veterans' trust fund grants . . . . . . 3,746,500 GROSS APPROPRIATION . . . . . . . . $ 4,982,800 Appropriated from: Special revenue funds: Michigan veterans' trust fund . . . . . . . . 4,691,400 State general fund/general purpose. . . . . . . . $ 291,400 PART 2 PROVISIONS CONCERNING APPROPRIATIONS GENERAL SECTIONS Sec. 201. (1) Pursuant to section 30 of Article IX of the state constitution of 1963, total state spending under part 1 for fiscal year 1999-2000 is $59,661,300.00 and state appropriations to be paid to local units of government are as follows: DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Military training sites and support facilities- payments in lieu of taxes. . . . . . . $ 61,900 Total . . . . . . . $ 61,900 (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 this bill, 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 this bill, 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 this bill, 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 this bill, 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 agencies at the end of the first fiscal quarter for the 1% charge 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 Michigan 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) Beginning October 1, 1999, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department or to positions that are funded with 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 rendering a state department or agency unable to deliver basic services.HEADQUARTERS AND ARMORIES. . . . . . Sec. 301. Money appropriated in this bill for state active duty shall be used to fund nonfederally supported missions of the national guard when called to state duty. DEPARTMENTWIDE APPROPRIATIONS . . . . . . Sec. 401. 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 that section. VETERANS' SERVICE ORGANIZATIONS Sec. 501. (1) Money appropriated in section 105 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 105, 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 105 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, 2001 to the department by November 15, 1999 within the format as prescribed by the department to be used in the development of the budget ending September 30, 2001. 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, 1999 to the department by January 31, 2000. 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 105 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 105 for veterans' service organizations shall include funding to provide services to veterans of World War I. VETERANS' HOMES Sec. 601. Appropriations in this bill 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 this bill 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 this bill 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. MICHIGAN 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. Sec. 703. The Michigan veterans affairs directorate administration and the Michigan veterans trust fund administration shall take steps to assist the county veterans counselors of the state to obtain training necessary for the execution of their duties. Sec. 704. 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 bill 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, do not lapse at the end of this fiscal year but are available for expenditure until September 30, 2001. Expenditures shall be in accordance with methods and procedures approved by the Michigan veterans' memorial park commission, the department, and appropriate state agencies. Final page.