HOUSE Substitute For
SENATE BILL NO. 1110
A bill to amend 2016 PA 560, entitled
"Michigan veterans' facility authority act,"
by amending the title and sections 2, 3, 5, and 6 (MCL 36.102, 36.103, 36.105, and 36.106), sections 3, 5, and 6 as amended by 2018 PA 630, and by adding sections 6a, 6c, and 12a; and to repeal acts and parts of acts.
the people of the state of michigan enact:
An act to create the Michigan veterans' facility authority;
to develop and operate certain veterans' facilities; to create funds and
accounts; to authorize the issuing of bonds and notes; to prescribe the powers
and duties of the authority and certain state departments and other state
officials and employees; and to require the promulgation of
rules; and to make appropriations and prescribe certain
conditions for the appropriations.
(a) "Authority" means the Michigan veterans'
facility authority created under section 3.
(b) "Board" "Authority board" or "board" means
the board of directors of the authority.
(c) "Bond" means a bond, note, or other obligation
issued by the authority under this act.
(d) "Department" means the department of military
and veterans affairs.
(e) "Develop" means to plan, acquire, construct,
improve, enlarge, maintain, renew, renovate, repair, replace, lease, equip,
furnish, market, promote, manage, or operate.
(f)
"Michigan veteran homes" means the administrative entity that
centrally manages and operates veterans' facilities in this state.
(g)
(f) "Veteran"
means an individual who meets both of the following:
(i) Is a veteran as
defined in section 1 of 1965 PA 190, MCL 35.61.
(ii) Was honorably discharged.
(h) (g) "Veterans'
facility" means a long-term care facility and ancillary facilities for
veterans and their dependents as determined by the authority.
Sec. 3. (1) The Michigan veterans' facility authority is
created as a public body corporate and politic within the department. The
authority shall be administered under the supervision of the department but
shall exercise its prescribed statutory powers, duties, and functions
independently of the department as an autonomous entity within the department.
The exercise by the authority of the powers conferred by this act is an
essential governmental function of this state.
(2) The authority shall provide general oversight and
governance of Michigan veteran homes and veterans' facilities in this state.
The authority shall promulgate rules to implement this act under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Rules
promulgated by the prior board of managers under former 1885 PA 152 and in
effect on the effective date of the amendatory act that added this subsection continue
in effect to the extent that the rules do not conflict with this act and may be
amended or rescinded by the authority.
(3) (2) Notwithstanding
the existence of common management, the authority shall
must be treated and accounted for as a
separate legal entity with its separate corporate purposes as set forth in this
act. The assets, liabilities, and funds of the authority shall must not be
consolidated or commingled with those of this state.
Sec. 5. (1) The authority shall exercise its duties through a
board of directors.
(2) The board shall be
made up of the following members:
(a) Subject to
subsection (7), the director of the department.
(b) Three members with
professional knowledge, skill, or experience in long-term care, health care
licensure or finance, or medicine who represent the interests of 1 or more
congressionally chartered veterans' organizations appointed by the governor
with the advice and consent of the senate.
(c) Three members with
professional knowledge, skill, or experience in long-term care, health care
licensure or finance, or medicine appointed by the governor with the advice and
consent of the senate. One of the members appointed under this subdivision shall must be a resident
of the Upper Peninsula of this state.
(d) One member appointed
by the governor from a list of 2 or more individuals selected by the majority
leader of the senate, with professional knowledge, skill, or experience in
long-term care, health care licensure or finance, or medicine.
(e) One member appointed
by the governor from a list of 2 or more individuals selected by the speaker of
the house of representatives, with professional knowledge, skill, or experience
in long-term care, health care licensure or finance, or medicine.
(3) The appointed
members shall serve for terms of 4 years. Of the 5 members first appointed, 1 the governor shall be appointed appoint 1 for
an initial term of 1 year, 2 shall be appointed for
an initial term of 2 years, and 2 shall be appointed for
an initial term of 3 years. The appointed members shall serve until a successor
is appointed. A vacancy shall must be filled for the balance of the unexpired term in
the same manner as the original appointment.
(4) A director of a
state department who is a designated member of the board may appoint a
representative to serve in his or her absence.
(5) Members of the board
shall serve without compensation but may receive reasonable reimbursement for
necessary travel and expenses incurred in the discharge of their duties.
(6) The director of the
department shall serve as chairperson of the board until January 1, 2019. At
that time, the board members shall elect a chairperson who is not the director
of the department or his or her designee.
(7) One year after the
second facility operated by the authority is open and housing veterans, the
director of the department shall then serve as a nonvoting member of the board.
A new member who is a veteran who has professional knowledge, skill, or
experience in long-term care, health care licensure or finance, or medicine
shall be appointed by the governor with the advice and consent of the senate.
(8) A majority of the
appointed and serving members of the board shall constitute
a quorum of the board for the transaction of business. Actions of the board shall must be approved
by a majority vote of the members present at a meeting.
(9) The members of the
board shall recommend by name the appointment of an executive director of the
Michigan veterans' facility authority, to be appointed by the governor. The executive
director is exempt from the classified state civil service and serves at the
pleasure of the governor. The executive director shall administer the business
operations of Michigan veterans' facilities, as that
term is defined under section 2a of 1885 PA 152, MCL 36.2a, Michigan veteran homes, veterans' facilities developed
and operated under this act, and the authority. The executive director shall
receive compensation determined annually by the authority.
(10) The authority may
employ or contract for legal, financial, and technical experts, and other
officers, agents, and employees, permanent and temporary, as the authority
requires, and shall determine their qualifications, duties, and compensation.
The board may delegate to 1 or more agents or employees any powers or duties,
and any limitations on those powers or duties, that the board considers proper.
(11) The members of the
board and officers and employees of the authority are subject to 1968 PA 317,
MCL 15.321 to 15.330, and 1968 PA 318, MCL 15.301 to 15.310.
(12) A member of the board or officer, employee, or agent of the
authority shall discharge the duties of his or her position in a nonpartisan
manner, with good faith, and with that degree of diligence, care, and skill
that an ordinarily prudent person individual would exercise under similar circumstances in
a like position. In discharging his or her duties, a member of the board or
an officer, employee, or agent, when acting in good faith, may rely upon the
opinion of the authority's counsel, upon the report of an independent appraiser
selected with reasonable care by the board, or upon the financial statements of
the authority represented to him or her by the executive director, or an
officer of the authority having charge of its books or account, to be correct,
or stated in a written report by a certified public accountant, or firm of
certified public accountants, to fairly reflect the financial condition of the
authority.
(13) The board shall
organize and make its own policies and procedures. The board shall conduct all
business at public meetings held in compliance with the open meetings act, 1976
PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of
each meeting shall be given in the manner required by the open meetings act,
1976 PA 267, MCL 15.261 to 15.275.
(14) Upon request by a
member of the legislature, the board shall make nonprivileged information
regarding the operations and accounts of the authority and nonprivileged
information regarding the care provided to veterans at a veterans' facility
available to members of the legislature.
Sec. 6. (1) The
authority shall have has
all of the following powers:
(a)
To review and revise a system of oversight and governance for Michigan veteran
homes, that must include all rules, regulations, and laws necessary for
effective management and preserving the health and welfare of veterans and
dependents residing at veterans' facilities in this state.
(b)
(a) To solicit and
accept gifts, grants, and loans from any person.
(c)
(b) To invest any
money of the authority at the authority's discretion, in any obligations
determined proper by the authority, and name and use depositories for its
money.
(d)
(c) To procure
insurance against any loss in connection with the property, assets, or
activities of the authority.
(e)
(d) To sue and be
sued, to have a seal, and to make, execute, and deliver contracts, conveyances,
and other instruments necessary to the exercise of the authority's powers.
(f)
(e) To make and amend
bylaws.
(g)
(f) To employ and
contract with individuals necessary for the operation of the authority and 1 or
more veterans' facilities.
(h)
(g) To make and
execute contracts including without limitation sale agreements, trust
agreements, trust indentures, bond purchase agreements, tax regulatory
agreements, continuing disclosure agreements, ancillary facilities, and all
other instruments necessary or convenient for the exercise of its powers and
functions, and commence any action to protect or enforce any right conferred
upon it by law, or by any contract or other agreement.
(i)
(h) To engage the
services of financial advisors and experts, legal counsel, placement agents,
underwriters, appraisers, and other advisors, consultants, and fiduciaries as
may be necessary to effectuate the purposes of this act.
(j)
(i) To pay its
operating expenses and financing costs.
(k)
(j) To pledge
revenues or other assets as security for the payment of the principal of and
interest on any bonds.
(l) (k) To procure
insurance, letters of credit, or other credit enhancement with respect to any
bonds for the payment of tenders of bonds, or for the payment upon maturity of
short-term bonds.
(m)
(l) To develop or operate 1 or more veterans' facilities.
(n) (m) To solicit
federal funds and other funding sources to develop veterans' facilities.
(o) (n) To
establish or permit to be established on its behalf 1 or more separate
nonprofit corporations organized under the nonprofit corporation act, 1982 PA
162, MCL 450.2101 to 450.3192, to assist the authority in the furtherance of
its public purposes.
(p) (o) To do any
and all things necessary or convenient to carry out its purposes and exercise
the powers expressly given and granted in this act.
(2) When hiring employees for a veterans' facility, the authority shall give preference to employees currently employed by a Michigan veterans' facility under 1885 PA 152, MCL 36.1 to 36.12.All employees of the authority are state employees, except for those positions that the authority fills using alternative methods of service delivery in accordance with established civil service rules and regulations. The authority is subject to all established civil service rules and regulations pertaining to employment and hiring practices. On the effective date of the amendatory act that added section 6a, employees of a veterans' facility established under former 1885 PA 152 shall continue in their current employment status. Any changes or modifications to these and future employees' compensation, benefits, or employment status must be made in accordance with established civil service rules and regulations.
(3) In determining the
operation and staffing of a veterans' facility, the authority shall do both of
the following:
(a) Consider nationally
recognized models and guidelines for the delivery of health care in veterans'
facilities.
(b) Follow the rules and
regulations of the civil service commission.
Sec. 6a. (1) The following individuals
are eligible for admission to a veterans' facility in this state:
(a)
A veteran eligible for the United States Department of Veterans Affairs' health
care or financial assistance for long-term nursing or day care.
(b)
A dependent of a veteran who meets 1 of the following criteria:
(i) The veteran is eligible for admission
under subdivision (a).
(ii) The veteran was eligible for
admission under subdivision (a) at the time of the veteran's death.
(2)
As a condition of admission, each veteran and dependent must agree to pay to
Michigan veteran homes, for the use by and benefit of this state, a sum based
on his or her income and assets to support the care and services he or she
receives at the veterans' facility.
(3)
Michigan veteran homes shall annually determine the per diem maintenance rate
and present the rate to the board for approval. The per diem maintenance rate
charges must be paid in a manner and timeline determined by Michigan veteran
homes.
(4)
Money collected under this section and from the United States Department of
Veterans' Affairs administration in direct payment for services to veterans at
the veterans' facilities must be deposited in the veterans' facility operation
fund created in section 6c.
(5)
Michigan veteran homes may deduct either of the following amounts from money Michigan
veteran homes holds on behalf of a veteran or dependent residing at a veterans'
facility after the death of the veteran or dependent:
(a)
Money the veteran or dependent owes to Michigan veteran homes or the veterans'
facility at the time of his or her death.
(b)
Funeral or burial-related expenses incurred by Michigan veteran homes or the
veterans' facility due to the death of the veteran or dependent.
(6)
Michigan veteran homes shall, after all necessary payments are made under
subsection (5), remit any remaining money to the next of kin of the deceased
veteran or dependent.
(7)
If, after 2 years following the death of a veteran or dependent residing at a
veterans' facility, Michigan veteran homes is unable to find a surviving
relative or next of kin of the veteran or dependent, Michigan veteran homes
shall deposit any money held on behalf of the veteran or dependent into the charitable
support fund created in section 6c.
(8)
A veteran's or dependent's failure to remit a payment agreed
to under subsection (2) is cause for dismissal from a veterans' facility.
(9)
As used in this section:
(a)
"Dependent" means a widow, widower, former spouse, or spouse of a
veteran, or a gold star parent.
(b)
"Gold star parent" means an individual who has had a son or daughter
die while serving in the United States Armed Forces or in forces incorporated
as part of the United States Armed Forces if the son or daughter meets any of
the eligibility criteria specified in 10 USC 1126(a)(1) to (3) for a gold star
lapel button.
Sec. 6c. (1) The authority shall
provide fiduciary oversight, in coordination with the state treasury, for all
funds held by Michigan veteran homes on behalf of members residing at each
veterans' facility.
(2)
The authority may receive money held in the post fund and posthumous fund
created by former 1905 PA 313, and the veterans' facility operation fund
created in section 11 of former 1885 PA 152.
(3)
The authority and Michigan veteran homes shall do all of the following:
(a)
Create and maintain a charitable support fund into which the post fund and
posthumous fund must be deposited. Gifts received by the authority and Michigan
veteran homes that are not specifically directed for the use and benefit of
this state must be deposited into the charitable support fund.
(b)
Expend money in the charitable support fund, upon approval by the board, to
benefit the members of Michigan veteran homes and support the operations of
veterans' facilities.
(c)
Create and maintain a separate, segregated account for the veterans' facility
operation fund. Money in the veterans' facility operation fund must be expended
only to support the operations and services provided at a veterans' facility
established under this act.
Sec. 12a. (1) No later than January 1,
April 1, July 1, and October 1 of each year, the Michigan veteran homes on
behalf of the authority, or a successor entity, shall submit a quarterly report
in writing to the governor, the senate and house committees on veterans affairs,
and the senate and house appropriations subcommittees for the department that
contains all of the following information for each state veterans' facility:
(a)
Staffing levels and the extent that staffing levels do or do not meet industry standards.
(b)
Number of patient complaints, average time to review a complaint and respond,
and the response to each complaint.
(c)
Timeliness of the distribution of pharmaceutical drugs.
(d)
Security provided for pharmaceutical drugs in the facility, including the title
of the individuals providing the security.
(e)
How patient money is accounted for, including the name and title of the
individual who supervises patient spending accounts.
(f)
Number of facility resident deaths that occurred after the most recent report.
(2)
The Michigan veteran homes, on behalf of the authority, shall post the reports
required under subsection (1) on its public website in a prominent and
conspicuous manner.
Enacting section 1. 1885 PA 152, MCL 36.1 to 36.12, is repealed.
Enacting section 2. 1921 PA 15, MCL 36.31 to 36.32, is repealed.
Enacting section 3. 1901 PA 54, MCL 36.51 to 36.55, is repealed.
Enacting section 4. 1905 PA 313, MCL 36.61, is repealed.
Enacting section 5. This amendatory act does not take effect unless Senate Bill No. 1109 of the 100th Legislature is enacted into law.