SB-0250, As Passed Senate, June 11, 2009

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

Senate Bill No. 250 as amended June 11, 2009

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.................................... $ 148,811,500

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 147,125,000

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..................... $ 39,087,200

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.......... $ 10,988,900

<<Director............................................. 182,000

Deputy director, army.................................. 156,000

Deputy director, homeland security..................... 157,000

Deputy director, veterans affairs...................... 160,000

Unclassified salaries—state active duty................ 10,000>>

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.................................... $ 18,096,900

Appropriated from:

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

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

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

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

Federal revenues:

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

Special revenue funds:

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

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

State general fund/general purpose..................... $ 7,420,500

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...................... $ 24,765,100

Military training sites and support facilities test

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

GROSS APPROPRIATION.................................... $ 24,865,100

Appropriated from:

Federal revenues:

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

Special revenue funds:

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

State general fund/general purpose..................... $ 1,625,700

Sec. 104. DEPARTMENTWIDE APPROPRIATIONS

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

Special maintenance - state............................ 751,200

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

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

Counter narcotic operations............................ 50,000

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

GROSS APPROPRIATION.................................... $ 13,777,500

Appropriated from:

Federal revenues:

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

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

State general fund/general purpose..................... $ 4,439,400

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........................................ $ 276,600

Veterans' trust fund administration--6.0 FTE

Senate Bill No. 250 as amended June 11, 2009

positions............................................ 1,251,500

Veterans advice, advocacy,<< and assistance>>.. 4,029,600

Veterans syndicate offices at public universities...... 100

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

GROSS APPROPRIATION.................................... $ 9,304,300

Appropriated from:

Special revenue funds:

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

State general fund/general purpose..................... $ 4,306,300

Sec. 109. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 1,154,300

GROSS APPROPRIATION.................................... $ 1,154,300

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..................... $ 329,600

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 $67,011,400.00 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.

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. 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. 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. 234. Any fiscal year 2009-2010 unused general

fund/general purpose funds identified by the department of military

and veterans affairs as lapsed funds shall be transferred to the

appropriation for special maintenance-state in part 1 and shall be

used for the repair and maintenance of state-owned armories.

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.

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' 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 prepare a feasibility study on

the fiscal impact of converting all of the current state employee

resident care aide positions at the Grand Rapids veterans' home to

contractual positions. The department shall submit this study to

the senate and house of representatives appropriations

subcommittees on military affairs no later than February 10, 2010.

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.

Sec. 707. The department shall develop and operate a program

which will provide benefits counseling and representation to

veterans of this state for the purpose of assisting veterans to

obtain United States department of veterans affairs health,

financial, and memorial benefits for which they are eligible. The

department shall also take steps to become certified with the

United States department of veterans affairs in this task. The

department shall establish a system whereby clients can check on

the status of their claims either online or by telephone. In order

to be cost-effective, the department shall also design and operate

the program to maximize the coordination between the veterans'

service organizations and any other organization which assists

veterans. Organizations able to compete for any veterans' service

organization grants offered under this program must be a national

organization recognized by the secretary of the United States

department of veterans affairs in the preparation and prosecution

of claims under laws administered by the United States department

of veterans affairs, have qualified and trained officers to assist

veterans, and a demonstrated track record of assisting veterans.

The department shall report to the senate and house of

representatives appropriation committees on military affairs on

their progress by April 1, 2010.

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

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.