HOUSE BILL No. 5280

February 3, 2000, Introduced by Reps. Cameron Brown, Byl, Kukuk, Pappageorge, Jelinek, Mortimer, Geiger, Mead, Jellema, Pumford, Caul, LaSata, Scranton, Jansen, Godchaux and Stamas and referred to the Committee on Appropriations.



EXECUTIVE BUDGET BILL



A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; to provide for certain powers and duties of the department of military and veterans affairs, other state agencies, and local units of government related to the appropriations; and to provide for the preparation of certain reports related to the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this bill, the amounts listed in this part are appropriated for the department of military and veterans affairs for the fiscal year ending September 30, 2001, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 7.0

Full-time equated classified positions 1,081.0

GROSS APPROPRIATION $ 100,522,700

Interdepartmental grant revenues:

Total interdepartmental grants and

intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 100,522,700

Federal revenues:

Total federal revenues 35,952,600

Special revenue funds:

Total local revenues 0

Total private revenues 375,000

Total other state restricted revenues 22,988,200

State general fund/general purpose $ 41,206,900

Sec. 102. HEADQUARTERS AND ARMORIES

Full-time equated unclassified positions 7.0

Full-time equated classified positions 144.0

Headquarters and armories--105.0 FTE positions $ 10,392,200 Unclassified military personnel 616,900 Military appeals tribunal 900

Michigan emergency volunteers 5,000

State active duty 60,100 Challenge program--39.0 FTE positions 2,808,400

GROSS APPROPRIATION $ 13,883,500 Appropriated from:

Federal revenues:

Total federal revenues 4,017,700

Special revenue funds:

Total state restricted revenues 390,000

State general fund/general purpose $ 9,475,800 Sec. 103. MILITARY TRAINING SITES AND SUPPORT FACILITIES

Full-time equated classified positions 229.0

Military training sites and support facilities--229.0

FTE positions $ 15,541,000

Military training sites and support facilities

test project 100,000

GROSS APPROPRIATION $ 15,641,000 Appropriated from:

Federal revenues:

Total federal revenues 11,920,200

Special revenue funds:

Total state restricted revenues 100,000

State general fund/general purpose $ 3,620,800

Sec. 104. DEPARTMENTWIDE APPROPRIATIONS

Departmentwide accounts $ 2,147,400

Special maintenance-state 436,200

Special maintenance-federal 2,302,000

Military retirement 2,231,900

Counternarcotic operations 50,000

Starbase grant 402,000

GROSS APPROPRIATION $ 7,569,500 Appropriated from:

Federal revenues:

Total federal revenues 4,026,000

Special revenue funds:

State general fund/general purpose $ 3,543,500

Sec. 105. VETERANS' SERVICE ORGANIZATIONS

American legion $ 835,800

Disabled American veterans 690,900

Marine corps veterans 317,300

American veterans of World War II and Korea 438,500

Veterans of foreign wars 835,800

Michigan paralyzed veterans of America 156,300

Purple heart 149,000

Veterans of World War I 100

Polish legion of American veterans 38,900

Jewish veterans of America 38,900

State of Michigan council - Vietnam veterans

of America 150,500

Catholic war veterans 12,500

GROSS APPROPRIATION $ 3,664,500

Appropriated from:

State general fund/general purpose $ 3,664,500 Sec. 106. GRAND RAPIDS VETERANS' HOME

Full-time equated classified positions 539.0

Grand Rapids veterans' home--539.0 FTE

positions $ 41,539,300 Board of managers 300,000 GROSS APPROPRIATION $ 41,839,300 Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Total federal revenues 12,351,300

Special revenue funds:

Total private revenues 300,000

Total state restricted revenues 13,572,600

State general fund/general purpose $ 15,615,400

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

Full-time equated classified positions 153.0

D.J. Jacobetti veterans' home--153.0 FTE

positions $ 12,762,400 Board of managers 75,000 GROSS APPROPRIATION $ 12,837,400 Appropriated from:

Federal revenues:

Total federal revenues 3,637,400

Special revenue funds:

Total private revenues 75,000 Total state restricted revenues 4,189,300 State general fund/general purpose $ 4,935,700 Sec. 108. MICHIGAN VETERANS' TRUST FUND

Full-time equated classified positions 16.0

Veterans' affairs directorate administration--3.0

FTE positions $ 358,100

Administration--13.0 FTE positions 982,900

Veterans' trust fund grants 3,746,500

GROSS APPROPRIATION $ 5,087,500

Appropriated from:

Special revenue funds:

Total state restricted revenue 4,736,300

State general fund/general purpose $ 351,200

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending under part 1 for fiscal year 2000-2001 is estimated at $64,195,100.00 and state appropriations to be paid to local units of government are as follows:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

MILITARY TRAINING SITES AND SUPPORT FACILITIES

Payments in lieu of taxes $ 70,000

MICHIGAN VETERANS TRUST FUND

County counselor travel expenses 50,000

TOTAL $ 120,000

(2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended for any quarter under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director, the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.

Sec. 202. The expenditures and funding sources authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,900,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,500,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in 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 bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in 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 bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. As used in this bill:

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

(b) "Director" means the director of the department of military and veterans affairs.

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

Sec. 206. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department or to positions that are funded 80% or more federal or restricted funds.

(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services. The state budget director shall report by the 30TH of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exceptions.

Sec. 207. Sixty days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the house and senate fiscal agencies within 30 months.

Sec. 208. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements in this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on the Internet or on the Intranet. The appropriations subcommittee shall be notified in writing of the Internet/Intranet site of any such report.

Sec. 209. (1) Of the funds appropriated in section 103 for military training sites and support facilities, there shall be established a Michigan national guard education assistance program. Disbursements to the educational assistance program shall not exceed $2,000,000.00 without legislative approval. Under the program, a member of the national guard who is in active service and who enrolls as a full- or part-time student at a public or private state college or university may be eligible to receive up to an equivalent of 50% of the total cost of tuition not to exceed $2,000.00, as education assistance, in any academic year.

(2) An eligible person means a member of the Michigan national guard who is in active service, as defined in section 105 of the Michigan military act, 1967 PA 150, MCL 32.505. An eligible person does not include a member of the Michigan national guard or air national guard who is absent without leave or who is under charges as described in the Michigan code of military justice of 1980, 1980 PA 523, MCL 32.1001 to 32.1148.

(3) The department of military and veterans affairs, office of the adjutant general shall administer the education assistance program and prescribe forms and procedures to effectively carry out the education assistance program.

(4) An eligible person shall apply to the department of military and veterans affairs, office of the adjutant general for education assistance and shall provide evidence of attendance and completion of the course of study with a grade of at least 2.0 on a 4.0 scale, or its equivalent. The adjutant general shall approve the application for reimbursement if the applicant meets the definition of an eligible person under subsection (2) and other criteria as established by the adjutant general.

(5) The education assistance program applies to any course of instruction that is included in an associate, undergraduate, or postgraduate degree program offered by a college or university of this state.

(6) The education assistance program applies to an eligible person notwithstanding any other educational incentive or benefit received by the eligible person under any other educational assistance program provided by any other state.

(7) An eligible person who successfully completes the course of study with a grade of at least 2.0 on a 4.0 scale, or its equivalent, shall be eligible for reimbursement.

(8) The department of military and veterans affairs may use funds from the appropriated funds to administer the education assistance program.

(9) Reimbursed members who do not complete their national guard service contract shall pay the state for money received from the state for tuition. Members who fail to repay the state within the time limits established by the adjutant general shall be indebted to the state. The department shall work in conjunction with the department of treasury for inclusion in the tax intercept program for amounts due the state.

VETERANS' SERVICE ORGANIZATIONS

Sec. 301. (1) Money appropriated in part 1 for grants

to veterans' service organizations shall be used only for salaries, wages, related personnel costs, training, and equipment for accredited veteran service advocacy officers and necessary support and managerial staff. Training shall be provided for service advocacy officers and shall be conducted by accredited advocacy officers.

(2) To receive a grant from the money appropriated in part 1, a veterans service organization shall meet the following eligibility requirements:

(a) Be congressionally chartered by the United States Congress.

(b) Be an active participating member of the Michigan veterans organizations' rehabilitation and veterans service committee and abide by its rules, guidelines, and programs.

(c) Demonstrate the receipt of monetary or service support from its own organization.

(d) Comply with the department's and the legislature's requirements of accounting audits, service work activity, accounting of recoveries, listing of volunteer hours, budget requests, and other requirements specified in subsection (3).

(e) For a veterans' service organization founded after September 30, 1989, be in operation and providing service to Michigan veterans for not less than 2 years before receiving an initial state grant. During this 2-year period of time, the organization shall file a listing of service work activity and an accounting of recoveries with the department, the senate and house fiscal agencies, and the senate and house subcommittees on military affairs on forms as prescribed by the department.

(3) A veterans' service organization receiving a grant from the money appropriated in part 1 shall file with the department a certified accounting of its expenditures within 120 days after the organization's fiscal year end. Each organization shall provide a detailed budget request for the fiscal year ending September 30, 2002 to the department by November 15, 2000 within the format as prescribed by the department to be used in the development of the budget ending September 30, 2002. Each veterans' service organization shall provide 5 copies of a listing of all service activity, an accounting of recoveries, and a listing of volunteer hours for the fiscal year ending September 30, 2000 to the department by January 31, 2001. The listing of volunteer hours shall include the hours, services, and donations provided to residents of the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home. Each veterans' service

organization shall provide a copy of the most recent and completed internal revenue service form 990 to the department at the end of the fiscal year ending September 30, 2000. A veterans' service organization receiving a grant from the money appropriated in section 105 shall use the forms recommended by the Michigan veterans organizations' rehabilitation and veterans service committee for filing reports required by this bill. The department shall forward information required under this section to the senate and house fiscal agencies and to the senate and house appropriations subcommittees on military affairs.

Sec. 302. Appropriations in part 1 for veterans' service organizations shall include funding to provide services to veterans of World War I.

VETERANS' HOMES

Sec. 401. Appropriations in this bill for the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home shall not be used for any purpose other than for veterans' and veterans' families.

Sec. 402. The money appropriated in this bill for the boards of managers may be expended for facility improvements the purchase and repair of equipment and furnishings, member services, and other purposes that benefit the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home.

Sec. 403. The money appropriated in this bill for the boards of managers of the Grand Rapids veterans' home and the D. J. Jacobetti veterans' home shall be considered a work project account, and unexpended money remaining at the close of the fiscal year shall not lapse to the general fund but shall be carried forward to the subsequent fiscal year.

MICHIGAN VETERANS' TRUST FUND

Sec. 501. The department may receive and expend revenue deposited to the Vietnam veterans memorial monument fund created under section 3 of the Michigan Vietnam veterans memorial act, 1988 PA 234, MCL

35.1053.

Sec. 502. (1) By April 1, 2001, the department shall submit to the state budget director and the senate and house appropriations subcommittees on military and veterans affairs a detailed annual report of the Michigan veterans' trust fund for fiscal year 1999-2000. The report shall include information on grants provided from the emergency grant program and the veterans' survivor tuition 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.

(2) The annual report required under subsection (1) shall provide detailed information on the number of emergency grant applications denied during fiscal year 1999-2000, including an accounting of the reasons for denial. This information also shall include the number of persons denied an emergency grant because of individual ineligibility, because of insufficient funds, and because the applicant's request did not meet minimum program criteria.

(3) The annual report required under subsection (1) shall contain information on the veterans' survivors tuition program, including the number of participants, where the participants attended school, payments made to each school, the average grade point and number of college credits earned by each participant, the number of

participants suspended by the program, and the number of participants who earned a degree during fiscal year 1999-2000.

Sec. 503. The Michigan veterans' memorial park commission may receive and expend gifts, contributions, and bequests from any person, public or private corporation, organization, foundation, governmental entity, or any other source for the purpose of establishing a

veterans' memorial park as described in Executive Reorganization Order No. 1992-4. Money contributed to the Michigan veterans' memorial park commission shall be deposited in the state treasury through the department and shall be available for expenditure. Project costs authorized by this bill shall not exceed the gifts, contributions, and bequests received. Money under this section and any specific work orders or projects adopted by the Michigan veterans' memorial park commission in accordance with section 451 of the management and budget act, 1984 PA 431, MCL 18.1451a, do not lapse at the end of this fiscal year but are available for expenditure until September 30, 2002. Expenditures shall be in accordance with methods and procedures approved by the Michigan veterans' memorial park commission, the department, and appropriate state agencies.





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