Michigan-2017-SB0146-Engrossed

SB-0146, As Passed Senate, May 4, 2017

SUBSTITUTE FOR

SENATE BILL NO. 146

A bill to make appropriations for the department of military

and veterans affairs for the fiscal year ending September 30, 2018;

and to provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the department of military

and veterans affairs for the fiscal year ending September 30, 2018,

from the following funds:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

APPROPRIATION SUMMARY

Full-time equated unclassified positions.......... 9.0

Full-time equated classified positions.......... 904.5

GROSS APPROPRIATION.................................... $ 180,004,400

Total interdepartmental grants and intradepartmental

transfers............................................ 101,800

ADJUSTED GROSS APPROPRIATION........................... $ 179,902,600

Total federal revenues................................. 92,334,100

Total local revenues................................... 1,528,400

Total private revenues................................. 640,000

Total other state restricted revenues.................. 22,332,600

State general fund/general purpose..................... $ 63,067,500

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose................................... 63,067,500

One-time state general fund/general

purpose............................................ 0

Sec. 102. MILITARY

Full-time equated unclassified positions.......... 9.0

Full-time equated classified positions.......... 333.0

Unclassified positions................................. $ 1,468,300

Departmentwide......................................... 1,853,100

Headquarters and armories--88.0 FTE positions.......... 17,317,800

Michigan youth challeNGe program--50.0 FTE positions... 5,259,100

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

Military training sites and support facilities--195.0

FTE positions........................................ 33,956,100

National Guard operations.............................. 398,200

National Guard tuition assistance fund................. 4,007,000

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

GROSS APPROPRIATION.................................... $ 67,181,600

Appropriated from:

Interdepartmental grant revenues:

IDG from department of state police.................... 101,800

Federal revenues:

Other federal revenues................................. 47,200,100

Special revenue funds:

Local revenues......................................... 1,528,400

Private revenues....................................... 100,000

Other state restricted revenues........................ 2,567,800

State general fund/general purpose..................... $ 15,683,500

Sec. 103. MICHIGAN VETERANS AFFAIRS AGENCY

Full-time equated classified positions.......... 224.5

Board of managers (veterans homes)..................... $ 940,000

D.J. Jacobetti home for veterans--179.5 FTE positions.. 22,275,500

Michigan veterans affairs agency administration--39.0

FTE positions........................................ 7,061,200

Michigan veterans facility authority................... 1,500,000

Veterans trust fund administration--6.0 FTE positions.. 1,468,900

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

Targeted grants........................................ 200,000

Veterans service grants................................ 3,835,500

GROSS APPROPRIATION.................................... $ 41,027,600

Appropriated from:

Federal revenues:

Other federal revenues................................. 8,396,100

Special revenue funds:

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

Other state restricted revenues........................ 10,730,100

State general fund/general purpose..................... $ 21,361,400

Sec. 104. GRAND RAPIDS HOME FOR VETERANS

Full-time equated classified positions.......... 347.0

Veterans home operations............................... $ 9,007,800

Purchased services..................................... 10,342,700

Salaries, wages, and fringe benefits--347.0 FTE

positions............................................ 31,054,000

GROSS APPROPRIATION.................................... $ 50,404,500

Appropriated from:

Federal revenues:

Other federal revenues................................. 21,165,600

Special revenue funds:

Other state restricted revenues........................ 6,620,200

State general fund/general purpose..................... $ 22,618,700

Sec. 105. CAPITAL OUTLAY

Land and acquisitions.................................. $ 2,000,000

Special maintenance - National Guard................... 15,000,000

Special maintenance - veterans' homes.................. 500,000

Armory maintenance..................................... 2,500,000

GROSS APPROPRIATION.................................... $ 20,000,000

Appropriated from:

Federal revenues:

Other federal revenues................................. 15,000,000

Special revenue funds:

Other state restricted revenues........................ 2,000,000

State general fund/general purpose..................... $ 3,000,000

Sec. 106. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 1,390,700

GROSS APPROPRIATION.................................... $ 1,390,700

Appropriated from:

Federal revenues:

Other federal revenues................................. 572,300

Special revenue funds:

Other state restricted revenues........................ 414,500

State general fund/general purpose..................... $ 403,900

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2017-2018

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 2017-2018 is $85,400,000.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2017-2018 is $142,400.00. 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......... $ 52,400

MVAA administration.................................... $ 90,000

TOTAL.................................................. $ 142,400

Sec. 202. The appropriations authorized under this part and

part 1 are subject to the management and budget act, 1984 PA 431,

MCL 18.1101 to 18.1594.

Sec. 203. As used in this part and part 1:

(a) "Core services" means that phrase as defined in section

373 of the management and budget act, 1984 PA 431, MCL 18.1373.

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

affairs.

(d) "DJJHV" means the D.J. Jacobetti home for veterans.

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

(f) "GRHV" means the Grand Rapids home for veterans.

(g) "HVAC" means heating, ventilation, and air conditioning.

(h) "Michigan veterans' facility authority" means the

authority created under section 3 of the Michigan veterans'

facility authority act, 2016 PA 560, MCL 36.103.

(i) "MVAA" means the Michigan veterans affairs agency.

(j) "Subcommittees" means the subcommittees of the senate and

house appropriations committees with jurisdiction over the budget

of the department.

(k) "Support services" means an activity, such as information

technology, accounting, human resources, legal, and other support

functions that are required to support the ongoing delivery of core

services.

(l) "USDVA" means the United States Department of Veterans

Affairs.

(m) "USDVA-VHA" means the USDVA Veterans Health

Administration.

(n) "VSO" means veterans service organization.

(o) "Work project" means that term as defined in section 404

of the management and budget act, 1984 PA 431, MCL 18.1404, and

that meets the criteria in section 451a(1) of the management and

budget act, 1984 PA 431, MCL 18.1451a.

Sec. 206. (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 part 1 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 $3,000,000.00 for state

restricted contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in part 1 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 $500,000.00 for local

contingency funds. These funds are not available for expenditure

until they have been transferred to another line item in part 1

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 part 1

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

MCL 18.1393.

Sec. 207. The department shall cooperate with the department

of technology, management, and budget to maintain a searchable

website accessible by the public at no cost that includes, but is

not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

including the vendor name, payment date, payment amount, and

payment description.

(d) The number of active department employees by job

classification.

(e) Job specifications and wage rates.

Sec. 208. The department and agencies receiving appropriations

in part 1 shall use the internet to fulfill the reporting

requirements of this part. 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 shall 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 shall 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 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. The

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. 215. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 218. The department and agencies receiving appropriations

in part 1 shall prepare a report on out-of-state travel expenses

not later than January 1 of each year. The travel report shall be a

listing of all travel by classified and unclassified employees

outside this state in the fiscal year ending September 30, 2017

that was funded in whole or in part with funds appropriated in the

department's budget. The report shall be submitted to the senate

and house appropriations committees, the house and senate fiscal

agencies, and the state budget director. The report shall include

the following information:

(a) The dates of each travel occurrence.

(b) 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.

Sec. 219. The department shall provide quarterly reports to

the subcommittees, the senate and house fiscal agencies, and the

state budget office, which shall provide the following data:

(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.

this part and information required to be reported in this part.

(d) The number of active employees at the close of the fiscal

quarter by job classification and program.

(e) Evidence of efficiencies and management of funds within

established appropriations.

Sec. 222. 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:

(a) Armories and joint force readiness.

(b) National Guard training facilities and air bases.

(d) Military family relief fund.

(e) Starbase grant.

(f) National Guard tuition assistance program.

(g) Michigan veterans affairs agency administration.

(h) Veterans service grants.

(i) Veterans' trust fund administration.

(j) Veterans' trust fund grants.

(k) Board of managers (veterans homes).

(l) Grand Rapids home for veterans.

(m) D.J. Jacobetti home for veterans.

Sec. 225. 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 outside services that

the attorney general authorizes.

Sec. 228. Not later than November 30, the state budget office

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriations lapses at the

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

projected year-end general fund/general purpose appropriations

lapses by major departmental program or program areas. The report

shall be transmitted to the chairpersons of the senate and house

appropriations committees, the subcommittees, and the senate and

house fiscal agencies.

Sec. 229. Within 14 days after the release of the executive

budget recommendation, the department shall cooperate with the

state budget office to provide the senate and house appropriations

chairs, the subcommittees, and the senate and house fiscal agencies

with an annual report on estimated state restricted fund balances,

state restricted fund projected revenues, and state restricted fund

expenditures for the fiscal years ending September 30, 2017 and

September 30, 2018.

Sec. 230. The department shall maintain, on a publicly

accessible website, a department scorecard that identifies, tracks,

and regularly updates key metrics that are used to monitor and

improve the agency's performance.

Sec. 231. Total authorized appropriations from all sources

under part 1 for legacy costs for the fiscal year ending September

30, 2018 are $18,602,500.00. From this amount, total agency

appropriations for pension-related legacy costs are estimated at

$10,314,600.00. Total agency appropriations for retiree health care

legacy costs are estimated at $8,287,900.00.

Sec. 232. 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.

Sec. 233. Sixty days prior to the public announcement of the

intention to sell any department real property, the department

shall submit notification of that intent to the subcommittees and

the senate and house fiscal agencies.

MILITARY

UNCLASSIFIED POSITIONS

Sec. 300. (1) From the funds appropriated in part 1, there is

funding to support unclassified employee positions as authorized by

section 5 of article XI of the state constitution of 1963. These

positions include the following: department director - the adjutant

general for Michigan; assistant adjutant general - army; assistant

adjutant general - installations; assistant adjutant general - air;

senior policy executive - Michigan veterans affairs agency; senior

deputy director � state operations; director - strategy and policy;

chief executive officer for the veteran health system; and director

- Michigan veterans affairs agency.

(2) Not less than 30 days prior to the department submitting a

request for an additional unclassified employee position from the

civil service commission, or for any substantive change to the

duties of an existing unclassified employee position, the

department shall notify the subcommittees and the senate and house

fiscal agencies.

ARMORIES AND JOINT FORCE READINESS

Sec. 302. (1) From the funds appropriated in part 1 for

military operations, effective and efficient executive direction

and administrative leadership shall be provided to the department.

(2) The department shall operate and maintain National Guard

armories.

(3) The department shall evaluate armories and submit a

quarterly report on the status of the armories.

(4) The department shall maintain a system to measure the

condition and adequacy of the armories.

(5) The Michigan Army National Guard and Air National Guard

shall work to provide a culture that is free of sexual assault,

through an environment of prevention, education and training,

response capability, victim support, reporting procedures, and

appropriate accountability that enhances the safety and well-being

of all guard members.

(6) By December 1, the department shall report the following

information to the subcommittees, the senate and house fiscal

agencies, and the state budget office:

(a) An assessment of the grounds and facilities of each armory

to objectively measure and determine the current facility condition

and capability to support authorized manpower, unit training, and

operations.

(b) Recommendations for the placement of new armories, the

relocation or consolidation of existing armories, or a change in

the mission of units assigned to armories to ideally position the

National Guard in current or projected population centers.

facilitate family support programs during deployments.

(d) An analysis of the feasibility, potential costs, and

benefits of use of armories shared with other local, state, or

federal agencies to improve responses to local emergencies as well

as the community support provided to armories.

(e) An investment strategy and proposed funding amounts in a

prioritized project list to correct the most critical facility

shortfalls across the inventory of armories in this state.

NATIONAL GUARD TRAINING FACILITIES AND AIR BASES

Sec. 304. (1) The department shall provide Army and Air

National Guard forces, when directed, for state and local

emergencies and in support of national military requirements.

(2) The department shall operate and maintain Army National

Guard training facilities, including Fort Custer and Camp Grayling.

(3) The department shall maintain a system that measures the

condition and adequacy of air facilities using both quality and

functionality criteria.

(4) 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.

(5) The department shall provide the following information as

provided under section 219:

(a) The apportioned and assigned strength of the Michigan Army

National Guard.

(b) The apportioned and assigned strength of the Michigan Air

National Guard.

measurement against stated performance goals, for the Michigan Army

National Guard.

(d) Recruiting, retention, and attrition data, including

measurement against stated performance goals, for the Michigan Air

National Guard.

Sec. 305. There is established under the jurisdiction and

control of the department a revolving account to be known as the

billeting fund account. All of the fees and other revenues

generated from the operation of the chargeable transient quarters

program shall be deposited in the billeting fund account.

Appropriations will be made from the account for the support of

program operations and the maintenance and operations of the

chargeable transient quarters program and will not exceed the

estimated revenues for the fiscal year in which they are made,

together with unexpended balances from prior years. The department

shall submit an annual report of operations and expenditures

regarding the billeting fund account to the appropriations

committees of the senate and house of representatives, the house

and senate fiscal agencies, and the state budget office at the end

of the fiscal year.

MICHIGAN YOUTH CHALLENGE ACADEMY

Sec. 307. (1) The department shall maintain the Michigan youth

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

discipline instruction for at-risk youth as provided under 32 USC

509.

(2) 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.

(3) The department shall partner with the department of health

and human services to identify youth who may be eligible for the

challeNGe program from those youth served by department of health

and human services programs. These eligible youth shall be given

priority for enrollment in the program.

(4) The department shall maintain the staffing and resources

necessary to train at least 144 cadets simultaneously at the

Michigan youth challeNGe academy.

(5) The department shall ensure that the average grade level

increase for Michigan youth challeNGe academy graduates is 2 years

as measured with the test adult basic education (TABE) metrics.

(6) Any unexpended private donations to support the Michigan

youth challeNGe academy at the close of the fiscal year shall not

lapse to the general fund but shall be carried forward to the

subsequent fiscal year.

MILITARY FAMILY RELIEF FUND

Sec. 308. (1) The department shall provide grants for

disbursement from the military family relief fund, as provided

under the military family relief fund act, 2004 PA 363, MCL 35.1211

to 35.1216, and R 200.5 to R 200.95 of the Michigan Administrative

Code.

(2) The department shall provide information on the revenues,

expenditures for advertising and assistance grants, and fund

balance of the Michigan military family relief fund, as provided

under section 219.

(3) The department shall provide sufficient staffing and other

resources to provide outreach to the Michigan families of members

of the reserve component of the armed forces called into active

duty and to support the processing and approval of grant

applications this fiscal year under the Michigan military relief

fund and report those applications as provided in section 219.

STARBASE GRANT

Sec. 309. The department shall maintain the starbase program

at Air National Guard facilities, as provided under 10 USC 2193b,

to improve the knowledge, skills, and interest of students,

primarily in the fifth grade, in math, science, and technology. The

starbase program is to specifically target minority and at-risk

students for participation.

NATIONAL GUARD TUITION ASSISTANCE PROGRAM

Sec. 310. (1) The department shall maintain a National Guard

tuition assistance program for members of the Michigan Air and Army

National Guard.

(2) The objective of the National Guard tuition program is to

bolster military readiness by increasing recruitment and retention

of Michigan Air and Army National Guard service members, to fill

federally authorized strength levels for the state, to improve the

Michigan Air and Army National Guard's competitive draw from other

military enlistment options in the state, to enhance the ability of

the Michigan Air and Army National Guard to compete for members and

federal dollars with surrounding states, and to increase the pool

of eligible candidates within the Michigan Air and Army National

Guard to become commissioned officers.

(3) The department shall make efforts to increase the number

of Michigan Air and Army National Guard members participating in

the program to 1,100 during the fourth year of the program's

existence. To evaluate the effectiveness of the program, the

department shall monitor the number of new recruits and new

reenlistments and the percentage of those who become participants

in the program to determine whether the percentage of authorized

Michigan Air and Army National Guard strength obtained and retained

is competitive in comparison with the neighboring air and army

national guards from Illinois, Indiana, Ohio, and Wisconsin.

(4) The general fund/general purpose funds appropriated in

part 1 for the National Guard tuition assistance fund shall be

deposited to the restricted Michigan national guard tuition

assistance fund created in section 4 of the Michigan national guard

tuition assistance act, 2014 PA 259, MCL 32.434. All funds in the

national guard tuition assistance fund not to exceed $4,007,000.00

are appropriated and available for expenditure to support the

Michigan national guard tuition assistance program.

MICHIGAN VETERANS AFFAIRS AGENCY

MICHIGAN VETERANS AFFAIRS AGENCY ADMINISTRATION

Sec. 400. (1) The MVAA shall provide outreach services to

Michigan veterans that advise them on the benefits to which they

are entitled, as provided under Executive Reorganization Order No.

2013-2, MCL 32.92. The MVAA shall also do the following:

(a) Maintain the staffing partnerships and other resources

necessary to develop and operate an outreach program that will

communicate benefit eligibility information to at least 50% of

Michigan's population of veterans, as assessed by annual census

estimates, with a goal of reaching 100% and enabling 100% to access

benefit information online.

(b) Communicate veteran benefit information pertaining to the

Michigan military family relief fund, Michigan veterans' trust

fund, and USDVA health, financial, and memorial benefits to which

they are entitled.

requests for military discharge certificates (DD-214) annually.

(d) Continue the process to digitize all medical records,

military discharge documents, and burial records that are currently

on paper and microfilm.

(e) Provide a report, as provided under section 219, on the

MVAA's performance on the performance measures, outcomes, and

initiatives developed by the agency in the strategic plan required

by section 501 of 2013 PA 9.

(f) Provide a report to the subcommittees, senate and house

fiscal agencies, and the state budget office no later than April 1

providing for the following:

(i) To the extent known, data on the estimated number of

homeless veterans, by county, in this state.

(ii) A summary of the activities and strategies developed to

date under the MVAA community assessment and regional service

delivery model pilot.

(2) From the funds appropriated in part 1, the MVAA shall

provide for the regional coordination of services, as follows:

(a) Regional coordinators shall be selected by the MVAA

through a grant agreement with VSOs or by other means.

(b) Regional coordinators shall provide the following

services:

(i) Coordinate veteran benefit counselors' efforts throughout

a specified region.

(ii) Coordinate services with the department of health and

human services and the department of corrections.

(iii) Coordinate with regional workforce and economic

development agencies.

(iv) Coordinate activities among local foundations, nonprofit

organizations, and community groups to improve accessibility,

enrollment, and utilization of the array of health care, education,

employment assistance, and quality of life services provided at the

local level.

coordinators, county veteran counselors, VSO service officers, and

other service providers to incorporate the provision of information

relating to mental health care resources into their daily

operations to aid veterans in understanding the mental health care

support services they may be eligible to receive.

(d) The MVAA shall coordinate with the department of health

and human services to identify Medicaid recipients who are veterans

and who may be eligible for federal veterans health care benefits

or other benefits, to the extent that the identification does not

violate applicable confidentiality requirements.

(e) The MVAA shall collaborate with the department of

corrections to create and maintain a process by which prisoners can

obtain a copy of their DD-214 form or other military discharge

documentation if necessary.

(f) The MVAA shall ensure that all MVAA service officers, VSO

service officers, and regional coordinators receive appropriate

training in processing applications for benefits payable to

veterans due to military sexual trauma, post-traumatic stress

disorder, depression, anxiety, substance abuse, or other mental

health issues.

(3) The MVAA shall provide claims processing services to

Michigan veterans in support of benefit claims submitted to the

USDVA for the health, financial, and memorial benefits for which

they are eligible, and shall do all of the following:

(a) Report the following information as provided in section

219:

(i) The number of benefit claims, by type, submitted to the

USDVA by MVAA and coalition partner veteran service officers.

(ii) The number of fully developed claims, submitted to the

USDVA, with an overall goal of 40% of benefit claims submitted that

are considered fully developed by the USDVA.

(b) Maintain the staffing and resources necessary to process a

minimum of 500 claims per year.

(4) The MVAA shall maintain staffing and resources necessary

to develop and implement a process to ensure that all county

counselors receive the training and accreditation necessary to

provide quality services to our veterans. The MVAA shall report

information as provided in section 219 on the number and percentage

of county veterans counselors requesting training by the MVAA, with

an overall goal of 100% of county veterans counselors trained.

(5) From the funds appropriated in part 1 for MVAA operations,

the MVAA shall provide grant assistance to enhance the capacity and

capabilities of counties in providing benefit claims assistance.

These funds shall be used to continue the implementation of an

internet-based data system, to increase the number of county

veterans counselors, and to increase the number of counties that

provide service to veterans through county veterans counselors. The

MVAA shall provide a report, as provided in section 219, on the

expenditures and activities of the grant funds directed by this

subsection.

(6) From the funds appropriated in part 1 for MVAA, the MVAA

is authorized to expend up to $50,000.00 to hire legal services to

represent veterans benefit cases before federal court to maintain

accreditation under 38 CFR 14.628(d)(1)(iv).

VETERANS SERVICE ORGANIZATION GRANTS

Sec. 406. (1) The MVAA shall disburse VSO grants to assist

them to achieve agency goals and performance objectives in

partnership with the VSOs. Grants to VSOs will be disbursed to fund

programs and projects which are determined by the agency to meet

agency performance objectives and ensure that VSOs communicate the

availability of emergency grants through the Michigan veterans'

trust fund. In disbursing veterans service organization grants, the

MVAA shall do the following:

(a) Ensure that each VSO that receives grants is issued

performance standards.

(b) Ensure that each VSO that receives grant funds uses those

funds for veterans advocacy and outreach.

(2) Veterans service organization grants awarded by the MVAA

shall provide for the following, as developed by the MVAA:

(a) The provision of service to veterans statewide, using a

regional service delivery model, with services provided at

specified locations and times, including service provided in state

correctional facilities.

(b) The payment of a fixed hourly service rate.

region of this state, with a statewide goal based on both

appropriations for the fiscal year ending September 30, 2018 for

the VSO grant program and the fixed hourly service rate under

subsection (2)(b). The statewide goal will include service hours

provided to eligible incarcerated veterans within 1 year of their

earliest release date.

(d) Use of an MVAA-designated internet-based claims data

system.

(3) The MVAA shall report the following information as

provided in section 219:

(a) A summary of activities supported through the

appropriation in part 1 for veterans service organization grants,

including separately for each service region, the amount of

expenditures to date, number of service hours, number of claims for

benefits submitted by type of claim, and other information deemed

appropriate by the MVAA.

(b) The number of fully developed claims, by type, submitted

to the USDVA by veterans service organizations, with an overall

goal of 40% of benefit claims submitted that are considered fully

developed by the USDVA.

VETERANS' TRUST FUND ADMINISTRATION

Sec. 407. (1) The Michigan veterans' trust fund board together

with the MVAA shall provide emergency grants for disbursement from

the Michigan veterans' trust fund, as provided under the following

program authorities:

(a) Sections 37, 38, and 39 of article IX of the state

constitution of 1963.

(b) 1946 (1st Ex Sess) PA 9, MCL 35.602 to 35.610.

(d) R 35.621 to R 35.623 of the Michigan Administrative Code.

(2) No later than December 1, the MVAA shall provide a

detailed report of the Michigan veterans' trust fund that includes,

for the prior fiscal year, information on grants provided from the

emergency grant program, including details concerning the

methodology of allocations, the selection of emergency grant

program authorized agents, a description of how the emergency grant

program is administered in each county, and a detailed breakdown of

trust fund expenditures for that year, including the amount

distributed to each county for administrative costs and emergency

grants. The report shall also include the number of approved

applications, by category of assistance, and the number of denied

applications, by reason of denial. 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.

(3) Any funds not expended or encumbered at the end of the

current fiscal year shall be deposited into the Michigan veterans'

trust fund corpus.

VETERANS' TRUST FUND GRANTS

Sec. 408. (1) The MVAA shall provide a report, as provided

under section 219, on the financial status of the Michigan

veterans' trust fund, including the number and amount of emergency

grants, state administrative expenses, and county administrative

expenses.

(2) The Michigan veterans' trust fund board together with the

agency shall maintain the staffing and resources necessary to

process a minimum of 2,000 applications for veterans' trust fund

emergency grants.

GRAND RAPIDS AND D.J. JACOBETTI HOMES FOR VETERANS

Sec. 501. (1) The MVAA, the board of managers, and the

Michigan veterans' facility authority shall provide compassionate

and quality nursing and domiciliary care services at the Grand

Rapids and D.J. Jacobetti homes for veterans so that members can

achieve their highest potential of wellness, independence, self-

worth, and dignity.

(2) The department shall provide resources necessary to

provide nursing care services to veterans in accordance with

federal standards and provide the results of the annual USDVA

survey and certification as proof of compliance.

(3) Appropriations in part 1 for the Grand Rapids and the D.J.

Jacobetti homes for veterans shall not be used for any purpose

other than for veterans and veterans' families.

(4) Any contractor providing competency evaluated nursing

assistants (CENA) to the Grand Rapids home for veterans shall

ensure that each CENA has at least 8 hours of training on

information provided by the home.

(5) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids home for veterans shall ensure that

each CENA has at least 1 eight-hour shift of shadowing at the

veterans' home.

(6) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids home for veterans shall ensure that

each CENA is competent in the basic skills needed to perform his or

her assigned duties at the home.

(7) The Grand Rapids home for veterans shall provide each CENA

at least 12 hours of in-service training once that individual has

been assigned to the home.

(8) All complaints of abusive or neglectful care at the Grand

Rapids and the D.J. Jacobetti homes for veterans by a resident

member, a resident member's family or legal guardian, or staff of

the veterans' homes, received by a supervisor shall be referred to

the director of nursing or his or her designee upon receipt of such

complaint. The director of nursing or his or her designee shall

report on not less than a monthly basis, except that the board of

managers may specify a more frequent reporting period, to the home

administrator, board of managers, agency, subcommittees, the senate

and house fiscal agencies, and the state budget office the

following information:

(a) A description of the process by which resident members and

others may file complaints of alleged abuse or neglect at the Grand

Rapids and the D.J. Jacobetti homes for veterans.

(b) Summary statistics on the number and general nature of

complaints of abuse or neglect.

of abuse or neglect received.

(9) The Grand Rapids and D.J. Jacobetti homes for veterans

shall provide an on-site, board-certified psychiatrist for all

resident members with mental health disorders in order to ensure

that those resident members receive needed services in a

professional and timely manner. The Grand Rapids and D.J. Jacobetti

homes for veterans shall provide all members and staff a safe and

secure environment.

(10) The Grand Rapids and D.J. Jacobetti homes for veterans

shall ensure that they effectively develop, execute, and monitor

all comprehensive care plans in accordance with federal regulations

and their internal policies, with a goal that a comprehensive care

plan is fully developed for all resident members.

(11) The Grand Rapids and D.J. Jacobetti homes for veterans

shall implement controls over their food, maintenance supplies,

pharmaceuticals, and medical supplies inventories.

(12) The Grand Rapids and D.J. Jacobetti homes for veterans

shall establish sufficient controls for calculating resident member

maintenance assessments in order to accurately calculate resident

member maintenance assessments for each billing cycle. The Grand

Rapids and D.J. Jacobetti homes for veterans shall establish

sufficient controls to ensure that all past due resident member

maintenance assessments are addressed within 30 days.

(13) The Grand Rapids and D.J. Jacobetti homes for veterans

shall establish sufficient controls over monetary donations and

donated goods.

(14) The Grand Rapids and D.J. Jacobetti homes for veterans

shall implement sufficient controls over the handling of resident

member funds to ensure the release of funds within 3 business days

upon the resident member leaving the home and to ensure that a

representative of a resident member is provided a full accounting

of that resident member's funds within 10 business days of the

death of that resident member.

(15) The MVAA shall post on its website all policies adopted

by the board of managers, the Michigan veterans' facility

authority, and the home related to the administrative operations of

the home.

(16) The process by which visitors, residents, and employees

of the Grand Rapids and D.J. Jacobetti homes for veterans may

throughout the home.

(17) The MVAA shall report its findings regarding the state

veterans' homes' compliance with the requirements and standards

under this section in a quarterly report to the legislature and the

state budget office. The quarterly reports shall include, but are

not limited to, the following information:

(a) Quality of care metrics, including:

(i) The number of patient care hours and staffing levels

measured against USDVA-VHA standards.

(ii) Sentinel events reported to the USDVA.

(iii) Fall and wound reports.

(iv) Complaint reports, including abuse and neglect complaints

and outcomes of complaint investigations.

(v) Additional minimum data set quality of care indicators

used to measure quality of care in long-term care facilities.

(b) Quarterly budget update.

Rapids and D.J. Jacobetti homes for veterans as follows:

(i) By demographics, including period of service, gender, and

age.

(ii) By care setting, payment source, and associated revenue

projections.

(d) Updates related to the modernization of the Grand Rapids

and D.J. Jacobetti homes for veterans, including information

related to the following:

(i) Infrastructure/capital outlay improvements.

(ii) Information technology updates.

(iii) Financial management.

(e) Updates on corrective action status related to any audit

and survey findings until such findings have been fully addressed.

(18) The Grand Rapids and D.J. Jacobetti homes for veterans

shall provide to the subcommittees, the senate and house fiscal

agencies, and the state budget office the results of any annual or

for-cause survey conducted by the USDVA-VHA and any corresponding

corrective action plan. This information shall also be made

available publicly through the department's or MVAA's website.

(19) The MVAA shall provide to the legislature and the state

budget office quarterly reports regarding the status of Medicaid

certification efforts, including, but not limited to, descriptions

of incremental milestones, associated expenditures, and the percent

of plan completed.

Sec. 502. (1) From the increased funds appropriated in part 1

for the D.J. Jacobetti home for veterans, the department shall

pursue compliance with current Centers for Medicare and Medicaid

Services certification standards. The purpose of this expansion

will be to obtain Medicaid certification during fiscal year 2017-

2018, to increase the ability to fully utilize all federal funding

available to cover the cost of care of eligible veterans living at

DJJHV, and to improve overall quality of care for all veterans

living at DJJHV.

(2) The department shall identify specific outcomes and

performance measures for this initiative, including, but not

limited to, the following:

(a) The quality of care to members of DJJHV shall increase as

a result of increased direct care staffing ratios.

(b) The quality of the care environment at DJJHV shall

increase as a result of facility updates made according to Medicaid

specifications to increase members' access to private and semi-

private accommodations.

a result of increased ability efforts to implement long-term care

evidence-based best practices at DJJHV.

(d) The collection of available federal Medicaid revenue shall

increase as a result of Medicaid certification.

(e) The fiscal stability of DJJHV shall improve due to

increased efforts to collect available federal revenue.

Sec. 503. The department shall ensure that the quality of care

for members of the Grand Rapids and D.J. Jacobetti homes for

veterans shall exceed the current quality of care for the full

spectrum of health care services as a result of the upgrades made

to the homes to meet the Centers for Medicare and Medicaid Services

certification standards. The department shall provide a quarterly

report to the subcommittees which contains evidence that the

quality of care for the full spectrum of health care services has

improved due to those upgrades.

BOARD OF MANAGERS (VETERANS HOMES)

Sec. 504. The board of managers and the Michigan veterans'

facility authority shall exercise certain regulatory and governance

authority regarding admission and member affairs at the Grand

Rapids and D.J. Jacobetti homes for veterans. The board of managers

shall also work to represent the interest of the veterans'

community in both advisory and advocacy roles.

CAPITAL OUTLAY

SPECIAL MAINTENANCE - NATIONAL GUARD

Sec. 601. (1) The appropriations in part 1 for special

maintenance - National Guard 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.

(2) The appropriations for special maintenance - National

Guard shall be expended in accordance with the requirements of

sections 302 and 304 and shall be expended according to the

maintenance priorities of the department to repair and modernize

military training sites and support facilities, including armories,

which may include projects such as roof, HVAC, or boiler

replacement, interior renovations, facility expansion, improvements

to parking facilities, and other projects.

(3) The department shall provide a quarterly report as

provided under section 219 providing information on the status,

projected costs, and projected completion date of current and

planned special maintenance projects at the armories and other

National Guard facilities funded from capital outlay appropriations

made in part 1 and in prior appropriations years.

SPECIAL MAINTENANCE - VETERANS' HOMES

Sec. 603. (1) The appropriations in part 1 for special

maintenance - veterans' homes 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.

(2) The appropriations for special maintenance - veterans'

homes shall be expended in accordance with the requirements of

section 501 and shall be expended according to the maintenance

priorities of the department to repair and modernize the state's

veterans' homes, which may include projects such as roof, HVAC, or

boiler replacement, interior renovations, facility expansion,

improvements to parking facilities, and other projects designed to

enhance the quality of life and medical care of members.

(3) The MVAA shall provide a quarterly report as provided

under section 219 providing information on the status, projected

costs, and projected completion date of current and planned special

maintenance projects at the Grand Rapids home for veterans and D.J.

Jacobetti home for veterans funded from capital outlay

appropriations made in part 1 and in prior appropriations years.

ARMORY MAINTENANCE

Sec. 604. (1) The appropriations in part 1 for armory

maintenance 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.

(2) The appropriations for armory maintenance shall be

expended in accordance with the requirements of sections 302 and

304 and shall be expended according to the maintenance priorities

of the department to repair and modernize military training sites

and support facilities, including armories.

LAND AND ACQUISITIONS

Sec. 605. (1) The department shall provide for the acquisition

and disposition of National Guard armories, facilities, and lands

as provided under sections 368, 382, and 382a of the Michigan

military act, 1967 PA 150, MCL 32.768, 32.782, and 32.782a.

(2) The department shall provide a listing of property sales

and acquisitions as provided under section 219.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2018-2019

GENERAL SECTIONS

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

appropriations for the fiscal year ending on September 30, 2019 for

the line items listed in part 1. The fiscal year 2018-2019

appropriations are anticipated to be the same as those for fiscal

year 2017-2018, excluding appropriations designated as one-time

appropriations and adjusting for changes in caseload and related

costs, federal fund match rates, economic factors, and available

revenue. These adjustments will be determined after the January

2018 consensus revenue estimating conference.

Sec. 1202. The veterans affairs agency shall provide the