HB-5885, As Passed House, September 15, 2010

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5885

A bill to make appropriations for the department of military

and veterans affairs for the fiscal year ending September 30, 2011;

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 act, the

amounts listed in this part are appropriated for the department of

military and veterans affairs for the fiscal year ending September

30, 2011, 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.......... 970.0

GROSS APPROPRIATION.................................... $ 150,042,900

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 1,152,900

ADJUSTED GROSS APPROPRIATION........................... $ 148,890,000

Federal revenues:

Total federal revenues................................. 82,203,800

Special revenue funds:

Total local revenues................................... 645,400

Total private revenues................................. 1,382,700

Total other state restricted revenues.................. 28,233,400

State general fund/general purpose..................... $ 36,424,700

Sec. 102. HEADQUARTERS AND ARMORIES

Full-time equated unclassified positions.......... 7.0

Full-time equated classified positions.......... 110.0

Headquarters and armories--85.0 FTE positions.......... $ 11,231,600

Unclassified military personnel........................ 665,000

Military appeals tribunal.............................. 900

Michigan emergency volunteers.......................... 5,000

State active duty...................................... 100,100

Challenge program--25.0 FTE positions.................. 4,091,000

Homeland security...................................... 1,000,000

Military family relief fund............................ 600,000

GROSS APPROPRIATION.................................... $ 17,693,600

Appropriated from:

IDG, challenge grant................................... 152,900

IDG, community health.................................. 100,000

IDG, state police...................................... 900,000

Federal revenues:

DOD-DOA-NGB............................................ 6,519,800

Special revenue funds:

Local-school aid fund.................................. 645,400

Rental fees............................................ 346,400

Mackinac Bridge authority.............................. 70,000

Private donations...................................... 842,700

Military family relief fund............................ 600,000

State general fund/general purpose..................... $ 7,516,400

Sec. 103. MILITARY TRAINING SITES AND SUPPORT

FACILITIES

Full-time equated classified positions.......... 181.0

Military training sites and support

facilities--181.0 FTE positions...................... $ 25,358,500

Military training sites and support facilities test

projects............................................. 100,000

GROSS APPROPRIATION.................................... $ 25,458,500

Appropriated from:

Federal revenues:

DOD-DOA-NGB............................................ 23,988,400

Special revenue funds:

Test project fees...................................... 100,000

State general fund/general purpose..................... $ 1,370,100

Sec. 104. DEPARTMENTWIDE APPROPRIATIONS

Departmentwide accounts................................ $ 1,860,800

Special maintenance - state............................ 651,200

Special maintenance - federal.......................... 5,300,000

Military retirement.................................... 3,584,100

Counter narcotic operations............................ 50,000

Starbase grant......................................... 2,322,000

GROSS APPROPRIATION.................................... $ 13,768,100

Appropriated from:

Federal revenues:

DOD-DOA-NGB............................................ 9,288,100

Federal counternarcotic revenues....................... 50,000

State general fund/general purpose..................... $ 4,430,000

Sec. 105. VETERANS ADVICE, ADVOCACY, AND ASSISTANCE

Veterans advice, advocacy, and assistance grants....... $ 3,029,600

GROSS APPROPRIATION.................................... $ 3,029,600

Appropriated from:

State general fund/general purpose..................... $ 3,029,600

Sec. 106. GRAND RAPIDS VETERANS' HOME

Full-time equated classified positions.......... 513.0

Grand Rapids veterans' home--513.0 FTE positions....... $ 50,891,300

Board of managers...................................... 665,000

GROSS APPROPRIATION.................................... $ 51,556,300

Appropriated from:

Federal revenues:

DVA-VHA................................................ 17,609,600

HHS, Medicaid.......................................... 164,300

HHS, Medicare.......................................... 2,561,500

Special revenue funds:

Private - veterans' home post and posthumous funds..... 415,000

Income and assessments................................. 15,689,300

Military family relief fund............................ 250,000

Lease revenue.......................................... 12,200

State general fund/general purpose..................... $ 14,854,400

Sec. 107. D.J. JACOBETTI VETERANS' HOME

Full-time equated classified positions.......... 158.0

D.J. Jacobetti veterans' home--158.0 FTE positions..... $ 16,521,400

Board of managers...................................... 275,000

GROSS APPROPRIATION.................................... $ 16,796,400

Appropriated from:

Federal revenues:

DVA-VHA................................................ 5,924,400

HHS, Medicare.......................................... 589,200

HHS, Medicaid.......................................... 10,800

Special revenue funds:

Private - veterans' home post and posthumous funds..... 125,000

Military family relief fund............................ 150,000

Income and assessments................................. 5,128,600

State general fund/general purpose..................... $ 4,868,400

Sec. 108. VETERANS' AFFAIRS DIRECTORATE

Full-time equated classified positions............ 8.0

Veterans' affairs directorate administration--2.0

FTE positions........................................ $ 198,400

Veterans' trust fund administration--6.0 FTE

positions............................................ 1,279,000

Veterans' trust fund grants............................ 3,746,500

GROSS APPROPRIATION.................................... $ 5,223,900

Appropriated from:

Special revenue funds:

Michigan veterans' trust fund.......................... 5,025,500

State general fund/general purpose..................... $ 198,400

Sec. 109. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 1,016,500

GROSS APPROPRIATION.................................... $ 1,016,500

Appropriated from:

Federal revenues:

DOD-DOA-NGB............................................ 130,400

DVA-VHA................................................ 356,800

HHS, Medicare.......................................... 10,500

Special revenue funds:

Income and assessments................................. 361,400

State general fund/general purpose..................... $ 157,400

Sec. 110. CAPITAL OUTLAY

Special maintenance, remodeling and additions.......... $ 15,000,000

Land acquisitions and appraisals....................... 500,000

GROSS APPROPRIATION.................................... $ 15,500,000

Appropriated from:

Federal revenues:

DOD-DOA-NGB............................................ 15,000,000

Special revenue funds:

Michigan national guard construction fund.............. 500,000

State general fund/general purpose..................... $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2010-2011 is $64,658,100.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2010-2011 is $120,000.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

MILITARY TRAINING SITES AND SUPPORT FACILITIES

Payments in lieu of taxes.............................. $ 70,000

MICHIGAN VETERANS' TRUST FUND

County counselor education and training expenses....... $ 50,000

TOTAL................................................... $ 120,000

Sec. 202. The appropriations authorized under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 203. As used in this act:

(a) "Department" means the department of military and veterans

affairs.

(b) "Director" means the director of the department of

military and veterans affairs.

(d) "DOD-DOA-NGB" means the DOD department of the army,

national guard bureau.

(e) "DVA" means the United States department of veterans

affairs.

(f) "DVA-VHA" means the DVA veterans health administration.

(g) "FTE" means full-time equated.

(h) "HHS" means the United States department of health and

human services.

(i) "IDG" means interdepartmental grant.

(j) "Large veterans service organization" means a VSO that can

certify that its membership exceeds 30,000 individuals.

(k) "Medium veterans service organization" means a VSO that

can certify that its membership is between 2,500 and 30,000

individuals.

(l) "Small veterans service organization" means a VSO that can

certify that its membership is between 1,000 and 2,499 individuals.

(m) "VSO" means veterans service organization.

Sec. 204. The department of civil service shall bill the

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. (1) 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 1 position

to another within a department.

(2) The state budget director may 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, causes loss of revenue to the

state, would result in the inability of the state to receive

federal funds, or would necessitate additional expenditures that

exceed any savings from maintaining a vacancy. The state budget

director shall report quarterly to the chairpersons of the senate

and house of representatives standing committees on appropriations

the number of exceptions to the hiring freeze approved during the

previous quarter and the reasons to justify the exception.

Sec. 208. Unless otherwise specified, the department shall use

the Internet to fulfill the reporting requirements of this act.

This requirement may include transmission of reports via electronic

mail to the recipients identified for each reporting requirement or

it may include placement of reports on an Internet or Intranet

site.

Sec. 209. Funds appropriated in part 1 shall not be used for

the purchase of foreign goods or services, or both, if

competitively priced and of comparable quality American goods or

services, or both, are available. Preference should be given to

goods or services, or both, manufactured or provided by Michigan

businesses, if they are competitively priced and of comparable

quality. In addition, preference should be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 210. The director of each department receiving

appropriations in part 1 shall take all reasonable steps to ensure

businesses in deprived and depressed communities compete for and

perform contracts to provide services or supplies, or both. Each

director shall strongly encourage firms with which the department

contracts to subcontract with certified businesses in depressed and

deprived communities for services, supplies, or both.

Sec. 211. The departments and agencies receiving

appropriations in part 1 shall receive and retain copies of all

reports funded from appropriations in part 1. The department shall

follow all federal guidelines and state laws regarding short-term

and long-term retention of records.

Sec. 213. The department shall consult with the house and

senate appropriations subcommittees on military and veterans

affairs regarding the projected closing or consolidation of any

national guard armories.

Sec. 214. It is the intent of the legislature that, should the

necessary legislation be enacted and funding become available,

funds be appropriated for state military cemeteries in Crawford and

Dickinson Counties.

Sec. 221. From the funds appropriated in part 1 for

information technology, departments and agencies shall pay user

fees to the department of technology, management, and budget for

technology-related services and projects. These user fees shall be

subject to provisions of an interagency agreement between the

departments and agencies and the department of technology,

management, and budget.

Sec. 223. Amounts appropriated in part 1 for information

technology may be designated as work projects and carried forward

to support technology projects under the direction of the

department of technology, management, and budget. Funds designated

in this manner are not available for expenditure until approved as

work projects under section 451a of the management and budget act,

1984 PA 431, MCL 18.1451a.

Sec. 225. (1) Due to the current budgetary problems in this

state, out-of-state travel for the fiscal year ending September 30,

2011 shall be limited to situations in which 1 or more of the

following conditions apply:

(a) The travel is required by legal mandate or court order or

for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of

Michigan citizens or visitors or to assist other states in similar

circumstances.

increase state revenues, including protecting existing federal

funds or securing additional federal funds.

(d) The travel is necessary to comply with federal

requirements.

(e) The travel is necessary to secure specialized training for

staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate

funds.

(2) If out-of-state travel is necessary but does not meet 1 or

more of the conditions in subsection (1), the state budget director

may grant an exception to allow the travel. Any exceptions granted

by the state budget director shall be reported on a monthly basis

to the senate and house of representatives standing committees on

appropriations.

(3) Not later than January 1 of each year, each department

shall prepare a travel report listing all travel by classified and

unclassified employees outside this state in the immediately

preceding fiscal year that was funded in whole or in part with

funds appropriated in the department's budget. The report shall be

submitted to the chairs and members of the senate and house of

representatives standing committees on appropriations, the senate

and house fiscal agencies, and the state budget director. The

report shall include the following information:

(a) The name of each person receiving reimbursement for travel

outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

(d) A brief statement of the reason for each travel

occurrence.

(e) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

(f) A total of all out-of-state travel funded for the

immediately preceding fiscal year.

Sec. 226. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 227. Sixty days prior to the public announcement of the

intention to sell any department property, the department shall

submit notification of that intent to the appropriate senate and

house appropriations subcommittees and the senate and house fiscal

agencies.

Sec. 228. Funds appropriated in part 1 shall not be used by a

principal executive department, state agency, or authority to hire

a person to provide legal services that are the responsibility of

the attorney general. This prohibition does not apply to legal

services for bonding activities and for those activities that the

attorney general authorizes.

Sec. 232. (1) In addition to the funds appropriated in part 1,

there is appropriated an amount not to exceed $10,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $2,000,000.00 for state

restricted contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, 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 act

under section 393(2) of the management and budget act, 1984 PA 431,

MCL 18.1393.

(4) In addition to the funds appropriated in part 1, 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 act

under section 393(2) of the management and budget act, 1984 PA 431,

MCL 18.1393.

Sec. 233. Not later than September 30, 2011, the department

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriation lapses at the

close of the fiscal year. This report shall summarize the projected

year-end general fund/general purpose appropriation lapses by major

departmental program or program areas. The report shall be

transmitted to the office of the state budget, the chairpersons of

the senate and house appropriations committees, and the senate and

house fiscal agencies.

Sec. 234. Any fiscal year 2010-2011 unused general

fund/general purpose funds identified by the department as lapsed

funds shall be transferred to the appropriation for special

maintenance - state in part 1 and shall be used for the repair and

maintenance of state-owned armories.

Sec. 235. The department shall seek partnerships with United

States armed forces reserve units for the colocation of activities,

including sharing in the acquisition and costs for facilities.

HEADQUARTERS AND ARMORIES

Sec. 301. The department may charge reasonable rental and

equipment usage fees for renting an armory or using the distance

learning network. The fee shall include the cost of overtime

compensation, insurance coverage, and any maintenance required.

Sec. 302. (1) The funds appropriated in this act for private

donations to the challenge program shall be considered state

restricted revenue, and unexpended funds 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.

(2) The department may charge a parent or guardian of a

participant in the challenge program a fee for participating in the

program if the participant is a member of a family with an income

that exceeds 200% of the federal poverty guidelines as published by

the United States department of health and human services. The

amount charged the parent or guardian shall not exceed the per-

student state share cost of administering the program. The parent

or guardian shall be notified of any charge to be assessed under

this subsection prior to enrollment of the child in the program.

(3) The department shall take steps to recruit candidates to

the challenge program from economically disadvantaged areas,

including those with low-income and high-unemployment backgrounds.

Sec. 304. The department will partner with the department of

human services to identify youth who may be eligible for the

challenge program from those youth served by department of human

services programs. These eligible youth shall be given priority for

enrollment in the program.

VETERANS ADVICE, ADVOCACY, AND ASSISTANCE

Sec. 501. (1) The department shall develop and operate a

program which will provide benefits counseling and representation

to veterans of this state for the purpose of assisting veterans to

obtain United States department of veterans affairs health,

financial, and memorial benefits for which they are eligible. The

department shall work to maximize the coordination between veterans

service organizations and any other organization which assists

veterans.

(2) The department shall create a 5-member veterans advisory

board to assist in matters pertaining to veterans advice, advocacy,

and assistance, including recommendations concerning disbursement

of any grant money. The department shall request that the state

commanders group name candidates serving as president/commander

from 2 large veterans service organizations, 2 medium veterans

service organizations, and 1 small veterans service organization to

serve on the advisory board. The veterans advisory board shall meet

no less than twice a year, without reimbursement by the department.

(3) The duties of the veterans advisory board shall include,

but are not limited to, the following:

(a) Serving as a liaison between grant recipients, the

department, and the legislature.

(b) Assisting in recognizing any deficiencies in the grant

process and performance.

(d) Suggesting changes in department programs that would help

keep pace with changing veterans needs.

(e) Providing a direct contact with the veterans

administration regarding updates on procedures.

(f) Creating an awareness to make sure that grant recipients

are performing the services intended.

(g) Representing a voice for veterans service organizations.

(h) Providing for a sounding board for grant recipients.

(i) Assisting the department in establishing criteria for

grant awards.

(j) Assisting the department in developing plans, reviewing

service delivery, and identifying goals to better assist veterans

in applying for and receiving benefits from the federal, state, and

local governments.

(k) Providing testimony, if requested, to legislative

committees.

(4) Of the appropriations in part 1 for veterans advice,

advocacy, and assistance grants for the period of October 1, 2010

to September 30, 2011, $3,029,600.00 shall be distributed by the

department in the form of 5 grants: 2 large, 2 small, and 1

specialized grant for the period beginning October 1, 2010. The

specialized grant shall be awarded to a group specializing in

advocacy for paralyzed veterans. The department, while utilizing

advice provided by the veterans advisory board establishing grant

criteria, is solely responsible for determination of the amounts

and recipients of these grants.

(5) Money used for grants to veterans service organizations

shall be used only for salaries, wages, related personnel costs,

in-state 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.

(6) To receive a grant from the money appropriated in part 1,

a veterans service organization or a veterans service organization

which is part of a combination of organizations receiving a grant

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.

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). Each

veterans service organization receiving a grant from the money

appropriated in part 1 shall provide a copy of the most recent

audit report to the department not later than May 1, 2011.

(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, the senate and house of representatives

appropriations subcommittees on military affairs, and the state

budget office on forms as prescribed by the department.

(7) A veterans service organization receiving a grant from the

money appropriated in part 1 shall file with the department an

accounting of its expenditures, audited and certified by a

certified public accountant, within 120 days after the

organization's fiscal year end. 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, 2010 to the department by January

31, 2011. Each organization shall include a listing of expenditures

by spending category, including a listing of individual salaries of

each officer and administrative staff. 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. Each veterans service organization shall provide a

copy of the most recent and completed internal revenue service form

990 to the department at the end of the fiscal year ending

September 30, 2010. A veterans service organization receiving a

grant from the money appropriated in part 1 shall use the forms

recommended by the Michigan veterans organizations rehabilitation

and veterans service committee for filing reports required by this

act. The department shall provide a report not later than June 1,

2011 to the senate and house fiscal agencies, the senate and house

appropriations subcommittees on state police and military and

veterans affairs, and the state budget office detailing the most

recent expenditure information provided by the veterans service

organizations. The department shall also provide within that report

specific notification whether any veterans service organization

receiving a grant from the money appropriated in part 1 failed to

comply with the reporting requirements of this section.

(8) The veterans service directors committee and the

department shall take steps to improve the coordination of veterans

benefits counseling in the state to maximize the effective and

efficient use of taxpayer dollars in this goal and to ensure that

every veteran is served.

(9) To accomplish the goal of subsection (8), the veterans

service directors committee and the department shall take steps to

increase their responsibility in the administration, management,

oversight, and outreach of the delivery of services to veterans.

The veterans service directors committee and the department shall

involve county veterans counselors and representatives from the

Michigan veterans trust fund to work in concert to identify,

implement, and evaluate steps to do all of the following:

(a) Increase the veterans service directors committee and the

department's role in working directly with the United States

department of veterans affairs to enhance the delivery of services

to Michigan veterans.

(b) Increase the number of initial claims filed with the

United States department of veterans affairs on behalf of veterans

for service-connected disability or pension benefits. The veterans

service directors committee and the department may work toward

either an absolute increase of approved claims or an increase in

the percentage of Michigan veterans with approved claims.

United States department of veterans affairs to Michigan veterans

either by an increase in compensation paid per approved claim or an

increase in compensation paid on a per capita basis.

(d) Expand training opportunities for veterans service

organization service officers.

(e) Increase either the number or percentage of Michigan

veterans enrolled in the veterans affairs health care system.

(f) Publicize the availability, benefit, and value of burial

in the Fort Custer and Great Lakes national cemeteries.

(g) Review each grant recipient's performance under the

program and require that performance be a major consideration in

the future funding of each grant recipient.

(h) Identify areas of redundancy which may exist among

services provided by veterans service organizations grantees,

Michigan veterans trust fund county committees, and county veterans

counselors and provide a proposal on how any redundancies may be

minimized and identify specific cost savings which could result.

(10) Each veterans service organization receiving a grant from

the money appropriated in part 1 shall file a report with the

department not later than May 1, 2011 detailing the following

information:

(a) Training completed by each veterans service officer

employed by or working on behalf of the veterans service

organization.

(b) A roster of the cases that each veterans service

organization is serving or processing, including if those cases

have been completed or are still pending, whether those cases have

been initiated and completed by the veterans service organization,

and which cases have been referred to and by county veterans

counselors, congressional or senate offices, or any other

organizations that serve veterans.

(11) The veterans advisory board, the Michigan association of

county veterans counselors, and the department shall create a

report of the efforts to complete the goals outlined in this

section and shall provide suggestions on how a more effective and

efficient veterans benefit counseling program may best be designed

for implementation for fiscal year 2011-2012. This report shall be

delivered to the house and senate appropriations subcommittees no

later than March 1, 2011.

(12) The department shall record any additional administrative

costs for collecting and compiling the information from subsections

(7) and (10) and also provide this information with the reports

required under subsection (7).

(13) The veterans affairs directorate shall design and operate

an advocacy program to coordinate with other organizations which

assist veterans, including county counselors and other groups, to

ensure referrals between groups occur when warranted and to provide

the veterans of the state with the most cost-effective and

comprehensive counseling services possible. The department shall

also take steps to become certified with the United States

department of veterans affairs to assist in this task.

(14) The veterans affairs directorate shall deliver progress

reports regarding the activities of the advocacy program to the

senate and house appropriations subcommittees on state police and

military and veterans affairs, with the first report due not later

than April 1, 2011 and the second report due not later than October

1, 2011.

(15) The department shall issue performance standards to each

veterans service organization grant recipient. Compliance with

these performance standards shall be the basis for funding for

future years. Failure to meet any or all of the performance

standards may result in that organization losing funding in future

years, and the department shall forward to the senate and house of

representatives appropriations subcommittees on state police and

military and veterans affairs corrective action and penalty

recommendations.

VETERANS' HOMES

Sec. 601. Appropriations in this act 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 Grand Rapids veterans' home and the D.J.

Jacobetti veterans' home, together with the department and the

department of technology, management, and budget, shall produce and

deliver to the senate and house of representatives appropriations

subcommittees on state police and military and veterans affairs an

annual written report. The report shall include an accounting of

member populations and bed space available; a description and

accounting of services and activities provided to members;

financial information; current state nursing home licensure status;

the steps required for Medicaid certification, including a listing

of any personnel, equipment, supplies, or budgetary increases

required; and whether or not steps are being taken toward Medicaid

certification. The annual report shall be submitted to the senate

and house of representatives appropriations subcommittees on

military affairs no later than February 1, 2011.

Sec. 603. The money appropriated in this act 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. 605. The department shall, prior to altering the spending

plan by the board of managers of post and posthumous funds, report

to the appropriate senate and house appropriations subcommittees 30

days prior to that action and shall indicate the rationale for that

decision.

VETERANS' AFFAIRS DIRECTORATE

Sec. 703. By April 1, 2010, the department shall submit to the

senate and house of representatives appropriations subcommittees on

military affairs and the state budget office a detailed annual

report of the Michigan veterans' trust fund for fiscal year 2009-

2010. The report shall include information on grants provided from

the emergency grant program, including details concerning the

methodology of allocations, the selection of emergency grant

program authorized agents, and a detailed breakdown of trust fund

expenditures for that year. The report shall also provide an update

on the department's efforts to reduce program administrative costs

and restore the Michigan veterans' trust fund corpus to its

original amount of $50,000,000.00.

Sec. 704. 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. 705. It is the intent of the legislature that the

department create incentives for all counties in the state to fund

at least 1 full-time county veteran's counselor for the purpose of

assisting veterans with obtaining federal veterans benefits that

they may be eligible to receive. The incentives could include, but

not be limited to, matching funds or sharing IT resources from the

department for counties to use in maximizing benefits received by

Michigan veterans.

CAPITAL OUTLAY

Sec. 801. The appropriations in part 1 for the department of

military and veterans affairs design and construction projects are

contingent upon the availability of federal and state restricted

funds for financing.

Sec. 802. (1) The director shall allocate lump-sum

appropriations made in this act consistent with statutory

provisions and the purposes for which funds were appropriated.

Lump-sum allocations shall address priority program or facility

needs and may include, but are not limited to, design,

construction, remodeling and addition, special maintenance, major

special maintenance, energy conservation, and demolition.

(2) The state budget director may authorize that funds

appropriated for lump-sum appropriations shall be available for no

more than 3 fiscal years following the fiscal year in which the

original appropriation was made. Any remaining balance from

allocations made in this section shall lapse to the fund from which

it was appropriated pursuant to the lapsing of funds as provided in

the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 803. The appropriations in part 1 for capital outlay

shall be carried forward at the end of the fiscal year consistent

with section 248 of the management and budget act, 1984 PA 431, MCL

18.1248.