SB-0250, As Passed House, June 25, 2009

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 250

A bill to make appropriations for the department of military

and veterans affairs for the fiscal year ending September 30, 2010;

to provide for the expenditure of the appropriations; to provide

for certain powers and duties of the department of military and

veterans affairs, other state agencies, and local units of

government related to the appropriations; and to provide for the

preparation of certain reports related to the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

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

amounts listed in this part are appropriated for the department of

military and veterans affairs for the fiscal year ending September

30, 2010, 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.......... 985.0

GROSS APPROPRIATION.................................... $ 145,634,400

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 1,686,500

ADJUSTED GROSS APPROPRIATION........................... $ 143,947,900

Federal revenues:

Total federal revenues................................. 77,347,300

Special revenue funds:

Total local revenues................................... 1,295,100

Total private revenues................................. 1,471,200

Total other state restricted revenues.................. 27,924,200

State general fund/general purpose..................... $ 35,910,100

Sec. 102. HEADQUARTERS AND ARMORIES

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

Full-time equated classified positions.......... 125.0

Headquarters and armories--85.0 FTE positions.......... $ 9,888,900

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

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

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

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

Challenge program--40.0 FTE positions.................. 4,737,000

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

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

GROSS APPROPRIATION.................................... $ 16,996,900

Appropriated from:

Interdepartmental grant revenues:

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

IDG, challenge grant................................... 262,100

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

IDG, human services.................................... 424,400

Federal revenues:

DOD-DOA-NGB............................................ 5,747,200

Special revenue funds:

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

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

Private donations...................................... 826,800

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

Private - parent pay revenue........................... 104,400

Local - school aid fund................................ 1,295,100

State general fund/general purpose..................... $ 6,320,500

Sec. 103. MILITARY TRAINING SITES AND SUPPORT

FACILITIES

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

Military training sites and support facilities--181.0

FTE positions........................................ $ 24,065,100

Military training sites and support facilities test

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

GROSS APPROPRIATION.................................... $ 24,165,100

Appropriated from:

Federal revenues:

DOD-DOA-NGB............................................ 23,139,400

Special revenue funds:

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

State general fund/general purpose..................... $ 925,700

Sec. 104. DEPARTMENTWIDE APPROPRIATIONS

Departmentwide accounts................................ $ 1,946,500

Special maintenance - state............................ 374,200

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

Military retirement.................................... 3,407,800

Counternarcotic operations............................. 50,000

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

GROSS APPROPRIATION.................................... $ 13,400,500

Appropriated from:

Federal revenues:

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

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

State general fund/general purpose..................... $ 4,062,400

Sec. 105. VETERANS SERVICE ORGANIZATIONS

American legion........................................ $ 665,100

Disabled American veterans............................. 549,500

Marine corps league.................................... 251,800

American veterans of World War II and Korea............ 348,400

Veterans of foreign wars............................... 665,100

Michigan paralyzed veterans of America................. 123,500

Purple heart........................................... 117,600

Polish legion of American veterans..................... 29,900

Jewish veterans of America............................. 29,900

State of Michigan council - Vietnam veterans of

America.............................................. 118,800

Catholic war veterans.................................. 29,900

GROSS APPROPRIATION.................................... $ 2,929,500

Appropriated from:

State general fund/general purpose..................... $ 2,929,500

Sec. 106. GRAND RAPIDS VETERANS' HOME

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

Grand Rapids veterans' home--513.0 FTE positions....... $ 49,717,300

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

GROSS APPROPRIATION.................................... $ 50,382,300

Appropriated from:

Federal revenues:

DVA-VHA................................................ 15,862,600

HHS-Medicaid........................................... 157,300

HHS-Medicare........................................... 2,452,700

Special revenue funds:

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

Income and assessments................................. 15,304,700

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

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

State general fund/general purpose..................... $ 15,927,800

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

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

D.J. Jacobetti veterans' home--158.0 FTE positions..... $ 15,956,100

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

GROSS APPROPRIATION.................................... $ 16,231,100

Appropriated from:

Federal revenues:

DVA-VHA................................................ 4,604,400

HHS-Medicare........................................... 562,400

HHS-Medicaid........................................... 10,300

Special revenue funds:

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

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

Income and assessments................................. 5,741,100

State general fund/general purpose..................... $ 5,037,900

Sec. 108. VETERANS' AFFAIRS DIRECTORATE

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

Veterans' affairs directorate administration--2.0 FTE

positions............................................ $ 276,700

Veterans' trust fund administration--6.0 FTE positions. 1,251,500

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

GROSS APPROPRIATION.................................... $ 5,274,700

Appropriated from:

Special revenue funds:

Michigan veterans' trust fund.......................... 4,998,000

State general fund/general purpose..................... $ 276,700

Sec. 109. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 1,254,300

GROSS APPROPRIATION.................................... $ 1,254,300

Appropriated from:

Federal revenues:

DOD-DOA-NGB............................................ 123,900

DVA-VHA................................................ 339,000

HHS-Medicare........................................... 10,000

Special revenue funds:

Income and assessments................................. 351,800

State general fund/general purpose..................... $ 429,600

Sec. 110. CAPITAL OUTLAY

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

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

Appropriated from:

Federal revenues:

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

Special revenue funds:

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

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

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

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2009-2010 is $63,834,300.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2009-2010 is $120,000.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

MILITARY TRAINING SITES AND SUPPORT FACILITIES

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

MICHIGAN VETERANS' TRUST FUND

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

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

Sec. 202. The appropriations authorized under this act are

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

to 18.1594.

Sec. 203. As used in this act:

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

affairs.

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

military and veterans affairs.

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

national guard bureau.

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

affairs.

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

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

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

human services.

(i) "IDG" means interdepartmental grant.

(j) "VSO" means veterans service organization.

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

departments and agencies at the end of the first fiscal quarter for

the 1% charge authorized by section 5 of article XI of the state

constitution of 1963. Payments shall be made for the total amount

of the billing by the end of the second fiscal quarter.

Sec. 205. (1) A hiring freeze is imposed on the state

classified civil service. State departments and agencies are

prohibited from hiring any new full-time state classified civil

service employees and prohibited from filling any vacant state

classified civil service positions. This hiring freeze does not

apply to internal transfers of classified employees from 1 position

to another within a department.

(2) The state budget director may grant exceptions to this

hiring freeze when the state budget director believes that the

hiring freeze will result in rendering a state department or agency

unable to deliver basic services, causes loss of revenue to the

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

federal funds, or would necessitate additional expenditures that

exceed any savings from maintaining a vacancy. The state budget

director shall report quarterly to the chairpersons of the senate

and house of representatives standing committees on appropriations

the number of exceptions to the hiring freeze approved during the

previous quarter and the reasons to justify the exception.

Sec. 207. Sixty days before beginning any effort to privatize,

the department shall submit a complete project plan to the

appropriate senate and house of representatives appropriations

subcommittees 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 senate and house of representatives

appropriations subcommittees and the senate and house fiscal

agencies within 30 months.

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

the Internet to fulfill the reporting requirements of this act.

This requirement may include transmission of reports via electronic

mail to the recipients identified for each reporting requirement or

it may include placement of reports on an Internet or Intranet

site.

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

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

competitively priced and of comparable quality American goods or

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

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

businesses, if they are competitively priced and of comparable

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

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

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 210. The director of each department receiving

appropriations in part 1 shall take all reasonable steps to ensure

businesses in deprived and depressed communities compete for and

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

director shall strongly encourage firms with which the department

contracts to subcontract with certified businesses in depressed and

deprived communities for services, supplies, or both.

Sec. 211. The departments and agencies receiving

appropriations in part 1 shall receive and retain copies of all

reports funded from appropriations in part 1. The department shall

follow all federal guidelines and state laws regarding short-term

and long-term retention of records.

Sec. 212. (1) Of the funds appropriated in part 1 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 $100.00

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) As used in this section, 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 obligation 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.

(10) A portion of the funds for the Michigan national guard

education assistance program may be used by the department for the

purpose of promoting the program and for encouraging those persons

the department wishes to have enlist or reenlist in the Michigan

national guard.

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

senate appropriations subcommittees on military and veterans

affairs regarding the projected closing or consolidation of any

national guard armories.

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

necessary legislation be enacted and funding become available,

funds be appropriated for state military cemeteries in Crawford and

Dickinson counties.

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

information technology, departments and agencies shall pay user

fees to the department of information technology for technology-

related services and projects. These user fees shall be subject to

provisions of an interagency agreement between the departments and

agencies and the department of information technology.

Sec. 223. Amounts appropriated in part 1 for information

technology may be designated as work projects and carried forward

to support technology projects under the direction of the

department of information technology. Funds designated in this

manner are not available for expenditure until approved as work

projects under section 451a of the management and budget act, 1984

PA 431, MCL 18.1451a.

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

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

2010 shall be limited to situations in which 1 or more of the

following conditions apply:

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

for law enforcement purposes.

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

Michigan citizens or visitors or to assist other states in similar

circumstances.

increase state revenues, including protecting existing federal

funds or securing additional federal funds.

(d) The travel is necessary to comply with federal

requirements.

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

staff that is not available within this state.

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

funds.

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

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

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

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

to the senate and house of representatives standing committees on

appropriations.

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

shall prepare a travel report listing all travel by classified and

unclassified employees outside this state in the immediately

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

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

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

representatives standing committees on appropriations, the senate

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

report shall include the following information:

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

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

(b) The destination of each travel occurrence.

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

occurrence.

(e) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

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

immediately preceding fiscal year.

Sec. 226. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

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

intention to sell any department property, the department shall

submit notification of that intent to the appropriate senate and

house appropriations subcommittees and the senate and house fiscal

agencies.

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

principal executive department, state agency, or authority to hire

a person to provide legal services that are the responsibility of

the attorney general. This prohibition does not apply to legal

services for bonding activities and for those activities that the

attorney general authorizes.

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

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

federal contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

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

1984 PA 431, MCL 18.1393.

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

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

restricted contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

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

1984 PA 431, MCL 18.1393.

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

appropriated an amount not to exceed $100,000.00 for local

contingency funds. These funds are not available for expenditure

until they have been transferred to another line item in this act

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

MCL 18.1393.

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

appropriated an amount not to exceed $100,000.00 for private

contingency funds. These funds are not available for expenditure

until they have been transferred to another line item in this act

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

MCL 18.1393.

Sec. 233. Not later than September 30, 2010, the department

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriation lapses at the

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

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

departmental program or program areas. The report shall be

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

the senate and house appropriations committees, and the senate and

house fiscal agencies.

Sec. 235. The department of military and veterans affairs

shall seek partnerships with United States armed forces reserve

units for the colocation of activities, including sharing in the

acquisition and costs for facilities.

Sec. 236. From the funds appropriated in part 1, the

department shall use an amount not to exceed $10,000.00 to develop,

post, and maintain, on a publicly accessible Internet site, all

expenditures made by the agency within a fiscal year. The posting

must include the purpose for which each expenditure is made. The

department shall not be required to hire additional employees to

comply with this section.

Sec. 237. On a bimonthly basis, the department shall report on

the number of FTEs in pay status by civil service classification to

the house and senate appropriations subcommittee on military and

veterans affairs and the house and senate fiscal agencies.

HEADQUARTERS AND ARMORIES

Sec. 301. The department may charge reasonable rental and

equipment usage fees for renting an armory or using the distance

learning network. The fee shall include the cost of overtime

compensation, insurance coverage, and any maintenance required.

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

donations to the challenge program shall be considered state

restricted revenue, and unexpended funds remaining at the close of

the fiscal year shall not lapse to the general fund but shall be

carried forward to the subsequent fiscal year.

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

participant in the challenge program a fee for participating in the

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

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

the United States department of health and human services. The

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

student state share cost of administering the program. The parent

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

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

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

the challenge program from economically disadvantaged areas,

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

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

human services to identify youth who may be eligible for the

challenge program from those youth served by department of human

services programs. These eligible youth shall be given priority for

enrollment in the program.

VETERANS SERVICE ORGANIZATIONS

Sec. 501. (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.

from its own organization.

(d) Comply with the department's and the legislature's

requirements of accounting audits, service work activity,

accounting of recoveries, listing of volunteer hours, budget

requests, and other requirements specified in subsection (3). Each

veterans service organization receiving a grant from the money

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

audit report to the department not later than March 1, 2010.

(e) For a veterans service organization founded after

September 30, 1989, be in operation and providing service to

Michigan veterans for not less than 2 years before receiving an

initial state grant. During this 2-year period of time, the

organization shall file a listing of service work activity and an

accounting of recoveries with the department, the senate and house

fiscal agencies, the senate and house of representatives

appropriations subcommittees on military affairs, and the state

budget office on forms as prescribed by the department.

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

money appropriated in part 1 shall file with the department an

accounting of its expenditures, audited and certified by a

certified public accountant, within 120 days after the

organization's fiscal year end. Each organization shall provide a

detailed budget request for the fiscal year ending September 30,

2011 to the department by November 15, 2009. 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, 2009 to the

department by January 31, 2010. Each organization shall include a

listing of expenditures by spending category, including a listing

of individual salaries of each officer and administrative staff.

The listing of volunteer hours shall include the hours, services,

and donations provided to residents of the Grand Rapids veterans'

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

organization shall provide a copy of the most recent and completed

internal revenue service form 990 to the department at the end of

the fiscal year ending September 30, 2009. A veterans service

organization receiving a grant from the money appropriated in part

1 shall use the forms recommended by the Michigan veterans

organizations rehabilitation and veterans service committee for

filing reports required by this act. The department shall provide a

report not later than April 1, 2010 to the senate and house fiscal

agencies, the senate and house appropriations subcommittees on

state police and military and veterans affairs, and the state

budget office detailing the most recent expenditure information

provided by the veterans service organizations. The department

shall also provide within that report specific notification whether

any veterans service organization receiving a grant from the money

appropriated in part 1 failed to comply with the reporting

requirements of this section.

(4) The veterans service directors committee and the

department shall take steps to improve the coordination of veterans

benefits counseling in the state to maximize the effective and

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

every veteran is served.

(5) To accomplish the goal of subsection (4), the veterans

service directors committee and the department shall take steps to

increase their responsibility in the administration, management,

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

The veterans service directors committee and the department shall

involve county veterans counselors and representatives from the

Michigan veterans trust fund to work in concert to identify,

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

(a) Increase the veterans service directors committee and the

department's role in working directly with the United States

department of veterans' affairs to enhance the delivery of services

to Michigan veterans.

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

United States department of veterans' affairs on behalf of veterans

for service-connected disability or pension benefits. The veterans

service directors committee and the department may work toward

either an absolute increase of approved claims or an increase in

the percentage of Michigan veterans with approved claims.

United States department of veterans' affairs to Michigan veterans

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

increase in compensation paid on a per capita basis.

(d) Expand training opportunities for veterans service

organization service officers.

(e) Increase either the number or percentage of Michigan

veterans enrolled in the VA health care system.

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

in the Fort Custer and Great Lakes national cemeteries.

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

program and require that performance be a major consideration in

the future funding of each grant recipient.

(h) Identify areas of redundancy which may exist among

services provided by veterans service organizations grantees,

Michigan veterans trust fund county committees, and county veterans

counselors and provide a proposal on how any redundancies may be

minimized and identify specific cost savings which could result.

(6) Each veterans service organization receiving a grant from

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

department not later than March 1, 2010 detailing the following

information:

(a) Training completed by each veterans service officer

employed by or working on behalf of the veterans service

organization.

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

organization is serving or processing, including if those cases

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

been initiated and completed by the veterans service organization,

and which cases have been referred to and by county veterans

counselors, congressional or senate offices, or any other

organizations that serve veterans.

(7) The veterans service directors committee, the Michigan

association of county veterans counselors, and the department shall

create a report of the efforts to complete the goals outlined in

this section and shall provide suggestions on how a more effective

and efficient veterans' benefits counseling program may best be

designed for implementation for fiscal year 2010-2011. This report

shall be delivered to the house and senate appropriations

subcommittees not later than March 1, 2010.

(8) If a veterans service organization fails to comply fully

and completely regarding delivery of all of the information

required in subsections (3) and (6) to the department by March 1,

2010, the department shall reduce that veterans service

organization's monthly grant payment by 1/2 beginning with the

April 2010 payment and extending through to the September 2010

payment. The grant money withheld due to noncompliance shall not be

distributed at a later date.

(9) The department shall record any additional administrative

costs for collecting and compiling the information from subsections

(3) and (6) and also provide this information with the reports

required under subsection (3).

(10) The veterans affairs directorate shall design and operate

an advocacy program to coordinate with other organizations which

assist veterans, including county counselors and other groups, to

ensure referrals between groups occur when warranted and to provide

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

comprehensive counseling services possible.

(11) The veterans affairs directorate shall deliver progress

reports regarding the activities of the advocacy program to the

senate and house appropriations subcommittees on state police and

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

than April 1, 2010 and the second report due not later than October

1, 2010.

(12) The department shall issue performance standards to each

veterans service organization grant recipient. It is the intent of

the legislature that compliance with these performance standards

shall be the basis for funding for future years. Failure to meet

any or all of the performance standards may result in that

organization losing funding in future years, and the department

shall forward to the senate and house of representatives

appropriations subcommittees on state police and military and

veterans affairs corrective action and penalty recommendations.

VETERANS' HOMES

Sec. 601. Appropriations in this act for the Grand Rapids

veterans' home and the D.J. Jacobetti veterans' home shall not be

used for any purpose other than for veterans and veterans'

families.

Sec. 602. The Grand Rapids veterans' home and the D.J.

Jacobetti veterans' home, together with the department and the

department of management and budget, shall produce and deliver to

the senate and house of representatives appropriations

subcommittees on state police and military affairs an annual

written report. The report shall include an accounting of member

populations and bed space available; a description and accounting

of services and activities provided to members; financial

information; current state nursing home licensure status; the steps

required for Medicaid certification, including a listing of any

personnel, equipment, supplies, or budgetary increases required;

and whether or not steps are being taken toward Medicaid

certification. The annual report shall be submitted to the senate

and house of representatives appropriations subcommittees on

military affairs no later than February 1, 2010.

Sec. 603. The money appropriated in this act for the boards of

managers may be expended for facility improvements, the purchase

and repair of equipment and furnishings, member services, and other

purposes that benefit the Grand Rapids veterans' home and the D.J.

Jacobetti veterans' home.

Sec. 604. The department shall, prior to altering the spending

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

to the appropriate senate and house appropriations subcommittees 30

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

decision.

VETERANS' AFFAIRS DIRECTORATE

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

senate and house of representatives appropriations subcommittees on

military affairs and the state budget office a detailed annual

report of the Michigan veterans' trust fund for fiscal year 2008-

2009. The report shall include information on grants provided from

the emergency grant program, including details concerning the

methodology of allocations, the selection of emergency grant

program authorized agents, and a detailed breakdown of trust fund

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

on the department's efforts to reduce program administrative costs

and restore the Michigan veterans' trust fund corpus to its

original amount of $50,000,000.00.

Sec. 704. The Michigan veterans affairs directorate

administration and the Michigan veterans' trust fund administration

shall take steps to assist the county veterans counselors of the

state to obtain training necessary for the execution of their

duties.

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

department create incentives for all counties in the state to fund

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

assisting veterans with obtaining federal veterans benefits that

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

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

department for counties to use in maximizing benefits received by

Michigan veterans.

CAPITAL OUTLAY

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

military and veterans affairs design and construction projects are

contingent upon the availability of federal and state restricted

funds for financing.

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

appropriations made in this bill consistent with statutory

provisions and the purposes for which funds were appropriated.

Lump-sum allocations shall address priority program or facility

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

construction, remodeling and addition, special maintenance, major

special maintenance, energy conservation, and demolition.

(2) The state budget director may authorize that funds

appropriated for lump-sum appropriations shall be available for no

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

original appropriation was made. Any remaining balance from

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

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

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

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