DRAFT D

SB-0181, As Passed Senate, April 27, 2011

SUBSTITUTE FOR

SENATE BILL NO. 181

A bill to make appropriations for the department of military

and veterans affairs for the fiscal year ending September 30, 2012;

to provide for the expenditure of the appropriations; to provide

anticipated appropriations for the fiscal year ending September 30,

2013; 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

FOR FISCAL YEAR 2011-2012

Sec. 101. Subject to the conditions set forth in this act, the

amounts listed in this part for the department of military and

veterans affairs are appropriated for the fiscal year ending

September 30, 2012 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.......... 819.0

GROSS APPROPRIATION.................................... $ 152,383,500

Total interdepartmental grants and intradepartmental

transfers............................................ 1,152,800

ADJUSTED GROSS APPROPRIATION........................... $ 151,230,700

Total federal revenues................................. 87,678,000

Total local revenues................................... 644,800

Total private revenues................................. 1,423,300

Total other state restricted revenues.................. 28,439,700

State general fund/general purpose..................... $ 33,044,900

Sec. 102. MILITARY

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

Full-time equated classified positions.......... 285.0

Military............................................... $ 54,119,800

GROSS APPROPRIATION.................................... $ 54,119,800

Appropriated from:

Interdepartmental grant revenues....................... 1,000,000

Federal revenues....................................... 38,523,900

State restricted revenues.............................. 884,500

State general fund/general purpose..................... $ 13,711,400

Sec. 103. VETERANS AND COMMUNITY OUTREACH

Full-time equated classified positions........... 33.0

Veterans and community outreach........................ $ 15,302,100

GROSS APPROPRIATION.................................... $ 15,302,100

Appropriated from:

Interdepartmental grant revenues....................... 152,800

Federal revenues....................................... 4,728,000

Local revenues......................................... 644,800

Private revenues....................................... 883,300

State restricted revenues.............................. 5,653,300

State general fund/general purpose..................... $ 3,239,900

Sec. 104. HOMES

Full-time equated classified positions.......... 501.0

Homes.................................................. $ 66,261,600

GROSS APPROPRIATION.................................... $ 66,261,600

Appropriated from:

Federal revenues....................................... 27,726,100

Private revenues....................................... 540,000

State restricted revenues.............................. 21,901,900

State general fund/general purpose..................... $ 16,093,600

Sec. 105. CAPITAL OUTLAY

Capital outlay......................................... $ 16,700,000

GROSS APPROPRIATION.................................... $ 16,700,000

Appropriated from:

Federal revenues....................................... 16,700,000

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

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2011-2012

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 2011-2012 is $61,484,600.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2011-2012 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............................................... $ 70,000

Veterans and community outreach........................ $ 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) "DTMB" means the department of technology, management, and

budget.

fixed duration, budget, and scope that is expected to cause a

measurable change in the delivery, efficiency, or effectiveness of

1 or more operations.

Sec. 204. (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. 205. It is the intent of the legislature that, of the

appropriations in part 1, the following shall constitute the

appropriations for interdepartmental grant funds received by the

department from sources outside the department: $152,800.00 from

challenge grant; $100,000.00 from the department of community

health; $900,000.00 from the department of state police.

Sec. 206. The department shall improve its budgetary

efficiency pertaining to the delivery of core services delineated

in section 211 by doing all of the following:

(a) Prioritizing personnel over buildings in budgetary

efficiency considerations.

(b) Pursuing the physical or virtual consolidation of support

service functions such as information technology, human resources,

and accounting as a means of improving standardization and

efficiency.

the streamlining of existing service delivery activities

(d) Identifying efficiencies that can be gained via the

reduction or elimination of programs, policies, and practices which

have outlived their usefulness.

Sec. 207. Any fiscal year 2011-2012 unused general

fund/general purpose funds created through efficiencies and

identified by the department as potential lapsed funds shall be

designated as follows: 10% of unused funds shall be allocated to a

workforce investment fund to be used in a manner that provides

direct benefit to department employees or their families, 40% of

unused funds shall be allocated as work project funds to be used at

the discretion of the department for projects designed to improve

service delivery, and the remaining 50% of the unused funds shall

be lapsed to the GF/GP fund.

Sec. 208. (1) The department shall be available to meet on a

quarterly basis before the appropriate senate and house

appropriations subcommittee.

(2) The department shall provide all information necessary to

validate that the service metrics required in this part have been

achieved.

(3) The department shall provide a corrective action plan for

any service metrics that do not meet requirements. Status of

correction action plans shall be provided at the next quarterly

review.

(4) The department shall provide the following data to the

senate and house appropriations subcommittees:

(a) A list of all major work projects, including a status

report of each project.

(b) The department's financial status, featuring a report of

budgeted versus actual expenditures by part 1 line item including a

year-end projection of budget requirements. If projected department

budget requirements exceed the allocated budget, the report shall

include a plan to reduce overall expenses while still satisfying

specified service level requirements.

established appropriations, documented through the DTMB monthly

expenditure report as described in section 301(4) of this part.

(d) A list of projected armory closings from section 302(6) of

this part.

(e) A list of property sales as described in section 212 of

this part.

(5) The department shall provide a corrective action plan for

any service metrics that do not meet requirements. The department

shall provide a status of correction action plans at the next

quarterly review.

(6) The Grand Rapids and D.J. Jacobetti veterans' homes shall

provide to the appropriate house and senate appropriations

subcommittees the results of the veterans' homes annual veterans'

affairs inspection and their corrective action plans.

Sec. 209. The department shall provide the following data to

the appropriate senate and house appropriations subcommittees on an

annual basis:

(a) Using information received from the grant recipients in

section 401(3) of this part, a progress report on metric

requirements, copies of certified financial audits and tax reports

of grant recipients, a listing from grant recipients of

expenditures by spending category, including a listing of

individual salaries of each officer and administrative staff, a

listing of volunteer hours including the hours, series, and

donations provided to residents of the Grand Rapids veterans' home

and the D.J. Jacobetti veterans' home. The department shall provide

within the report a specific notification whether any veterans

grant recipients failed to comply with established reporting

requirements.

(b) The Grand Rapids veterans' home and the D.J. Jacobetti

veterans' home shall produce a report including an accounting of

member populations and bed space available, a description and

accounting of services and activities provided to members,

financial information, and current state nursing home licensure

status.

that includes 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

maintain the Michigan veterans' trust fund corpus to its original

amount of at least $50,000,000.00.

Sec. 210. Grant recipients in section 401 of this part shall

submit a report to the department on the number of claims filed for

veterans in this state with the United States department of

veterans affairs and the number of actual claims awarded.

Sec. 211. The appropriations in part 1 are for the core

services, support services, and work projects of the department,

including, but not limited to, the following core services:

armories and joint forces readiness, maintenance and operation of

army national guard training facilities, operation and maintenance

of air national guard air bases, veterans affairs directorate and

administration of the veterans trust fund, administration and

oversight of veterans advice, advocacy, and assistance grants,

training support for county veterans counselors, administration of

the military family relief fund, the Michigan youth challenge

academy program, and the administration of the Grand Rapids

veterans' home and the D.J. Jacobetti veterans' home.

Sec. 212. 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. 213. 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. 214. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 215. 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. 216. 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. 218. Bids for contract services shall not exclude public

employee unions from the bid process.

MILITARY

Sec. 301. (1) The department shall provide administrative

support for department operations.

(2) The department shall maintain the staffing and resources

necessary to ensure proper accountability of state funds.

(3) The department shall maintain the staffing and resources

necessary to adhere to the state of Michigan financial management

guide for accounting, contracting, purchasing, budgeting, and

financial reporting and the administrative guide to state

government.

(4) The department shall ensure fiscal controls relating to

procurement of goods and services and other expenditures.

Sec. 302. (1) The department shall operate and maintain

national guard armories.

(2) The department shall provide resources necessary to ensure

that armories are maintained in accordance with army regulation

210-4.

(3) The department shall evaluate armories for consolidation,

energy, and utility efficiency and identify work projects that

would improve this efficiency.

(4) The department shall provide armory equipment maintenance

by maintaining equipment and tracking and monitoring trends in

repair maintenance to determine whether a piece of equipment is to

be retired or kept.

(5) The department shall provide security for national guard

armories by ensuring that a passive electronic security system is

in place at all armories.

(6) The department shall consult with the house and senate

appropriations subcommittees on state police and military and

veterans affairs regarding the projected closing or consolidation

of any national guard armories.

(7) Using individual facility assessments, the department

shall improve the adequacy of utilities and infrastructure of the

armories. The department shall improve quality rating at the armory

facilities based on the number of faults corrected and dollars

available (spent) during the fiscal year.

Sec. 303. (1) The department shall provide army national guard

forces, when directed, for state and local emergencies and in

support of national military requirements.

(2) The department shall provide resources necessary to train

and equip military forces to standards set by the United States

armed forces.

Sec. 304. (1) The department shall operate and maintain Army

national guard training facilities, including Fort Custer and Camp

Grayling.

(2) The department shall provide resources necessary to meet

building maintenance requirements per performance specifications

established in master cooperative agreement appendix 1, section

104, national guard bureau regulations.

(3) Army national guard training facilities security

management shall secure all locations, monitor alarm equipment, and

adhere to state laws, statutes, and army regulation 190-56 and

master cooperative agreement appendix 3, section 308, national

guard bureau regulations.

(4) Using individual facility assessments, the department

shall improve the adequacy of utilities and infrastructure of the

air bases. The department shall improve quality rating at the air

base facilities based on the number of faults corrected and dollars

available (spent) during the fiscal year.

Sec. 305. (1) The department shall provide air national guard

forces when directed, for state and local emergencies and in

support of national military requirements.

(2) The department shall provide resources necessary to train

and equip military forces to standards set by the United States

armed forces.

(3) Using individual facility assessments, the department

shall improve the adequacy of utilities and infrastructure of the

military training sites and support facilities. The department

shall improve quality rating at the facilities based on the number

of faults corrected and dollars available (spent) during the fiscal

year.

Sec. 306. (1) The department shall operate and maintain air

national guard air bases, including Selfridge air national guard

base, Battle Creek air national guard base, and Alpena combat

readiness training center.

(2) The department shall provide resources necessary to meet

facility maintenance at air national guard bases, including

maintenance and preventive maintenance of authorized building and

systems at no less than the minimum standards required by

applicable federal, state, and local agencies.

(3) The department shall maintain the staffing and resources

necessary to provide security services at air national guard bases,

including the security of the location and the monitoring of alarm

equipment, in accordance with air force instruction 31-101 and

master cooperative agreement appendix 23, section 2308, national

guard bureau regulations.

VETERANS AND COMMUNITY OUTREACH

Sec. 401. (1) The department shall provide advice, advocacy,

and assistance services to Michigan veterans.

(2) The department shall maintain the staffing and resources

necessary to develop and operate a program that will provide

benefits counseling and representation to veterans of this state

for the purpose of assisting veterans to obtain United States

department of veteran affairs health, financial, and memorial

benefits for which they are eligible.

(3) The department shall distribute grants, as appropriated in

part 1 to be used for salaries, wages, related personnel costs, in-

state training, and equipment for accredited veteran service

advocacy officers and necessary support and managerial staff.

(4) The department shall work to maximize the coordination

between all organizations that assist veterans and identify areas

of redundancy in services to consolidate.

(5) The department shall work with grant recipients to

increase the percentage of veterans in this state who become aware

of their eligibility for service-connected disability or pension

benefits from the United States department of veterans affairs.

(6) The department shall work with the grant recipients to

improve national standing with regard to veterans affairs benefits

granted per veteran.

(7) The department shall work with veteran service

organizations to expand training opportunities for veteran service

organization service officers.

(8) The department shall work with grant recipients to

increase the percentage of veterans in this state who become aware

of their eligibility for enrollment in the veterans affairs health

care system.

(9) The department shall define a prioritized list of services

needed by the veterans. All of the following apply to the list

defined under this subsection:

(a) Each service shall be accompanied by a current performance

rating and desired performance rating.

(b) Each service shall define what service organization is

currently responsible for providing the service.

Sec. 402. (1) The Michigan trust fund board together with the

department shall provide emergency grants for disbursement from the

Michigan veterans trust fund.

(2) The Michigan trust fund board together with the department

shall maintain the staffing and resources necessary to provide

outreach to veterans who may need and qualify for veterans trust

fund emergency grants.

(3) The Michigan trust fund board shall work to increase the

percentage of grant applications that are approved and received by

eligible families by 5% over those approved and received by

eligible families in fiscal year 2009-2010.

Sec. 403. (1) The department shall provide grants for

disbursement from the military family relief fund.

(2) The department shall maintain the staffing and resources

necessary to provide outreach to the Michigan families of active

members of the armed forces.

(3) The department shall work to increase the percentage of

military family relief grant applications that are approved and

received by eligible families by 5% over those approved and

received by eligible families in fiscal year 2009-2010.

Sec. 404. (1) The department shall provide training support

for county veterans counselors.

(2) The department shall provide resources necessary to

provide county veterans counselors with training to ensure quality

services to veterans.

(3) The department shall work with counties towards the goal

of having at least 1 county veterans counselor in every county in

this state.

(4) The Michigan veterans' affairs directorate administration

and the Michigan veterans' trust fund administration shall take

steps to assist the county veterans counselors of this state to

obtain training necessary for the execution of their duties.

Sec. 405. (1) The department shall maintain the Michigan youth

challenge academy to provide values, skills, education, and self-

discipline instruction for at-risk youth.

(2) The department shall maintain the staffing and resources

necessary to recruit and train a starting class size of 144 cadets.

(3) The department shall provide food services for cadets

enrolled in the Michigan youth challenge academy which shall

include 3 balanced meals a day in accordance with current dietary

guidelines for Americans and the daily food guide of the United

States department of agriculture.

(4) The department shall ensure that at least 65% of the

cadets who enroll in the Michigan youth challenge academy meet the

requirement for graduation from the academy.

(5) The department shall ensure that at least 65% of the

cadets who enroll in Michigan youth challenge academy take the

general educational development exam and that at least 70% of those

taking the exam earn a passing grade.

(6) The department shall ensure that less than 3% of cadets

who enroll in the Michigan youth challenge academy enter the

correctional system within 5 years of graduation from the academy.

(7) 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.

(8) The department shall 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 series

programs. These eligible youth shall be given priority for

enrollment in the program.

(9) The funds appropriated in this act for private donations

to the Michigan youth 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.

HOMES

Sec. 501. (1) The department shall provide compassionate,

quality interdisciplinary care at the state's Grand Rapids and D.J.

Jacobetti veterans' homes so that members can achieve their highest

potential of wellness, independence, self-worth, and dignity.

(2) The department shall provide resources necessary to

provide adequate nursing care services to veterans in accordance

with federal standards, including the following:

(a) A licensed maximum capacity of skilled nursing beds of 618

at the Grand Rapids veterans' home.

(b) A licensed maximum capacity of domiciliary beds of 140 at

the Grand Rapids veterans' home.

at the D.J. Jacobetti veterans' home.

(d) A licensed maximum capacity of domiciliary beds of 59 at

the D.J. Jacobetti veterans' home.

(3) The Grand Rapids and D.J. Jacobetti veterans' homes shall

ensure that their medical staffing is in accordance with United

States department of veterans administration standards.

(4) The Grand Rapids and D.J. Jacobetti veterans' homes shall

ensure that transportation is assured for each resident for every

medical appointment outside the veterans' home.

(5) The Grand Rapids and D.J. Jacobetti veterans' homes shall

ensure that each member resident receives daily laundry service.

(6) The Grand Rapids and D.J. Jacobetti veterans' homes shall

ensure that maintenance and custodial services are provided for

each home in accordance with applicable local, state, and federal

standards.

(7) The Grand Rapids and D.J. Jacobetti veterans' homes shall

ensure that each resident receives a medical and care assessment

including a dietary plan upon admission to the home, with meals and

snacks provided in accordance with the plan and the United States

department of veterans administration requirement that there should

be no period longer than 14 hours between meals or snacks for any

resident.

(8) 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 and D.J. Jacobetti veterans'

homes.

(9) Appropriations in this act for the Grand Rapids and D.J.

Jacobetti veterans' homes shall not be used for any purpose other

than for veterans and veterans' families.

(10) 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.

(11) Any contractor providing competency evaluated nursing

assistants (CENA) to the Grand Rapids and D.J. Jacobetti veterans'

homes shall ensure that each CENA has at least 8 hours of training

on information provided by the veterans' home.

(12) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids and D.J. Jacobetti veterans' homes

shall ensure that each CENA has at least 1 eight-hour shift of

shadowing at the veterans' home.

(13) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids and D.J. Jacobetti veterans' homes

shall ensure that each CENA is competent in the basic skills needed

to perform his or her assigned duties at the veterans' home.

(14) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids and D.J. Jacobetti veteran's homes

shall ensure that each CENA has at least 1 year of experience in

long-term care.

(15) The Grand Rapids and D.J. Jacobetti veterans' homes shall

provide each CENA at least 12 hours of in-service training once

that individual has been assigned to the veterans' home.

(16) The Grand Rapids and D.J. Jacobetti veterans' homes shall

ensure that care services are provided to each resident of the

veterans' homes in accordance with standards set by the United

States department of veterans' affairs.

CAPITAL OUTLAY

Sec. 601. (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. 602. 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.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2013 for

the line items listed in part 1. The fiscal year 2012-2013

appropriations are anticipated to be the same as those for fiscal

year 2011-2012, except that the line items will be adjusted for

changes in caseload and related costs, federal fund match rates,

economic factors, and available revenue. These adjustments will be

determined after the January 2012 consensus revenue estimating

conference. The January 2012 consensus revenue estimating

conference shall include estimates for fiscal year 2011-2012,

fiscal year 2012-2013, and fiscal year 2013-2014 for the following:

(a) State revenue.

(b) Prison population and correction expenditures.

foundation allowance.

(d) Medicaid expenditures.

(e) Human service caseloads and expenditures.