May 26, 2015, Introduced by Reps. Jenkins, Vaupel, Inman, Muxlow, Hughes, Chatfield, Rutledge, Johnson and Rendon and referred to the Committee on Military and Veterans Affairs.
A bill to amend 1946 (1st Ex Sess) PA 9, entitled
"An act to create the Michigan veterans' trust fund, and to define
who shall be eligible to receive assistance therefrom; to provide
for the disbursement of the income thereof and surplus therein; to
create a board of trustees, and to prescribe its powers and duties;
to provide for county and district committees, and their powers,
duties, and expenses; to prescribe penalties; and to make
appropriations to carry out the provisions of this act,"
by amending sections 2, 3b, 4, 5, 6a, and 7 (MCL 35.602, 35.603b,
35.604, 35.605, 35.606a, and 35.607), sections 3b and 6a as added
by 2011 PA 282, section 5 as amended by 2008 PA 235, and section 7
as amended by 2002 PA 153, and by adding section 1; and to repeal
acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Board" or "board of trustees" means the Michigan
veterans' trust fund board of trustees created under this act.
(b) "Department" means the department of military and veterans
affairs.
(c) "Fund" means the Michigan veterans' trust fund created in
section 37 of article IX of the state constitution of 1963.
(d) "Member" or "member of the board" means a member of the
Michigan veterans' trust fund board of trustees.
(e) "Recognized veterans organization" means a veterans
organization recognized by the United States Department of Veterans
Affairs under 38 USC 5902.
(f) "VA" means the United States Department of Veterans
Affairs.
(g) "Veteran" means an individual who meets 1 or more of the
following:
(i) Has served on active duty with the armed forces of the
United States for a period of more than 180 days and was honorably
discharged or received a general discharge under honorable
conditions.
(ii) Was discharged or released from active duty with the
armed forces of the United States because of a service-connected
disability.
(iii) Was honorably discharged or received a general discharge
under honorable conditions from service as a member of the reserve
or National Guard component of the armed forces of the United
States under an order to active duty, excluding active duty for
training.
Sec.
2. For the purposes of the administration of this act, a
Michigan
veteran as defined by Act No. 190 of the Public Acts of
l965,
as amended, shall be deemed to be a person, male or female,
whose
legal residence immediately prior to entering the service was
in
Michigan, who entered upon or was in active service in the armed
forces
of the United States, at any time for at least 180 days from
and
after the date as defined by Act No. 190 of the Public Acts of
1965,
as amended, being sections 35.61 and 35.62 of the Michigan
Compiled
Laws or Vietnam era, as determined for the purposes of
administration
of this act, whether by induction, enlistment,
commission,
warrant, or otherwise, and who has been honorably
discharged,
retired, or separated therefrom, or who has reverted to
an
inactive status therefrom under honorable conditions. However,
former
members of the women's auxiliary army corps who refused to
accept
transfer to or induction into the women's army corps shall
not
be deemed to be veterans within the meaning of this definition.
A
veteran who did not have legal residence in Michigan immediately
prior
to entering the military service may become eligible to
benefits
administered under this act after having established a
legal
residence in Michigan. A veteran whose legal residence was in
Michigan
prior to entering military service will lose his rights
under
this act by leaving this state for a period of time exceeding
2
years. A person who shall have been separated for reason of
physical
or mental disability incurred in the line of duty prior to
the
completion of 180 days' service shall be considered a veteran
for
the purpose of the administration of this act. World War II
shall
be deemed to be that period from and after August 27, 1940,
to
the inclusive date of June 30, 1946. Grants made to eligible
Michigan
veterans between June 30, 1946, and the effective date of
this
act are declared valid. A person otherwise qualified with at
least
90 days of service during World War I, Spanish American War
or
Mexican Wars, as defined in Act No. 190 of the Public Acts of
1965,
as amended, shall be deemed a veteran for the purposes of
this
act.an individual is eligible
to apply for benefits if that
individual satisfies any of the following:
(a) Both of the following conditions:
(i) Is a resident of this state.
(ii) Is a veteran.
(b) Is a resident of this state and is either an unremarried
spouse of a deceased individual who met all of the conditions set
forth in subdivision (a) or an unmarried dependent of a deceased
individual who met all of the conditions set forth in subdivision
(a).
(c) Is a resident of this state and is either an unremarried
spouse of a member of the armed forces of the United States who was
killed in action or who is missing in action or an unmarried
dependent of a member of the armed forces of the United States who
was killed in action or who is missing in action.
Sec. 3b. (1) There is created a Michigan veterans' trust fund
board of trustees. Each member of the board shall be a veteran.
(2) Each member of the board shall be appointed by the
governor. Each member appointed shall have demonstrated knowledge,
skills, and experience in public service, business, or finance. The
board members, as a whole, shall accurately represent the varied
veteran population in this state, and shall include members
representing different conflicts as well as a variety of population
demographics including, but not limited to, age, race, gender, and
ethnicity. Members shall be appointed as follows:
(a) The director of the department, or his or her designee, if
the director of the department or his or her designee is eligible
for appointment to the board under section 38 of article IX of the
state constitution of 1963. If the director of the department, or
his or her designee, is eligible for appointment to the board under
section 38 of article IX of the state constitution of 1963, and is
appointed by the governor under this subdivision, the director of
the department, or his or her designee, shall be a voting member of
the board and shall serve as chairperson of the board. The director
of the department, or his or her designee, shall serve at the
pleasure of the governor. If the director of the department or his
or her designee is not eligible for appointment to the board under
section 38 of article IX of the state constitution of 1963, the
director of the department or his or her designee shall serve as an
ex officio, nonvoting member of the board.
(b) (a)
One representative of the American
legion.
(c) (b)
One representative of the veterans
of foreign wars of
the United States.
(d) (c)
One representative of the disabled
American veterans.
(e) (d)
One representative of any other
congressionally
chartered veterans' organization or recognized veterans
organization, other than those organizations identified in
subdivision
(a), (b), or (c).(b), (c),
or (d).
(f) (e)
Three independent members who may
or may not be a
member of 1 or more congressionally chartered veterans'
organizations or recognized veterans organizations, but who shall
not represent any congressionally chartered veterans' organization
or recognized veterans organization of which they are a member.
(3) (2)
The members shall be appointed by the governor. Each
Subject
to subsection (4), each member shall
hold office for the
term
of 3 years not more than 4
terms of 3 years each from the time
of his or her appointment and shall continue to hold office at the
pleasure of the governor. The members enumerated in subsection
(1)(a),
(b), (c), and (d) (2)(b),
(c), (d), and (e) shall be
appointed by the governor from the original list of at least 3
individuals recommended by each respective organization named in
subsection
(1)(a), (b), (c), and (d).(2)(b),
(c), (d), and (e).
(4) Notwithstanding subsection (3), after the effective date
of the amendatory act that added section 1, the following
restrictions apply to the initial appointment of a member under
subsection (2):
(a) For the first members appointed under subsection (2)(b) or
(c) after the effective date of the amendatory act that added
section 1, the initial term shall be for 1 year. Any subsequent
terms for those members and any succeeding members shall be as
prescribed in subsection (3).
(b) For a member appointed under subsection (2)(d) or (e)
after the effective date of the amendatory act that added section
1, the initial term shall be for a period of 2 years. Any
subsequent terms for those members and any succeeding members shall
be as prescribed in subsection (3).
(c) For members appointed under subsection (2)(f) after the
effective date of the amendatory act that added section 1, the
initial term for 1 member shall be 1 year, and the initial term for
1 member shall be 2 years. Any subsequent terms for those members
and any succeeding members shall be as prescribed in subsection
(3).
(5) (3)
Each member of the board shall
qualify by taking and
filing the constitutional oath of office.
(6) (4)
The governor may remove any member
of the board for
misfeasance, malfeasance, or nonfeasance in office, after hearing.
Missing 3 or more consecutive meetings shall be considered
malfeasance and is grounds for removal.
(7) (5)
If a vacancy occurs during the term
of office of a an
appointed member of the board of trustees, the member's successor
shall be selected from the same organization and in the same manner
as the original appointment for the balance of the unexpired term.
(8) (6)
The department of technology,
management, and budget
shall furnish suitable offices for use of the board.
(9) (7)
The board may employ assistants and
incur necessary
expenses in carrying out this act. Members of the board shall serve
without compensation, but shall be entitled to actual and necessary
expenses incurred in attending scheduled meetings of the board in
accordance with the accounting laws of this state.
(8)
As used in this act:
(a)
"Board" means the Michigan veterans' trust fund board of
trustees
created in subsection (1).
(b)
"Veteran" means that term as defined in section 1 of 1965
PA
190, MCL 35.61.
Sec. 4. The board of trustees shall be a policy-making body,
on the state level, and shall have the following powers and duties:
(a) To administer the fund.
(b) (a)
To determine the purposes for which
available moneys
in
the trust fund in excess of $50,000,000 $50,000,000.00 are to be
allocated
to the several veterans' county and district regional
committees. ;
(c) (b)
To allocate part or all of
available moneys money in
the
trust fund in excess of $50,000,000 $50,000,000.00 to the
several
veterans' county and district regional committees,
and to
disburse
said those allocations from time to time on the basis of
need. ;
(d) (c)
To prescribe policy and rules governing the granting
of
assistance to Michigan veterans , and
to their unremarried
widows
spouses and dependents on the basis of need, including the
prescribing
of the necessary forms and the making of necessary
reports
and accounting. ; for For
the purposes of the
administration of this act, dependents shall be considered to be
any
persons person legally entitled to look to the veteran for his
or
her support. ;
(d)
To collect data and information as to the facilities and
services
available to Michigan veterans and disseminate the same to
veterans'
organizations and individual veterans: Provided, however,
That
in no event shall more than $5,000.00 be expended for this
purpose
in any 1 year;
(e)
To do all acts necessary in carrying out the provisions of
this
act. ;
(f) To receive and accept gifts and donations of property,
real
or personal, and shall to hold, use, and apply the property so
received
for the purposes set forth in the instrument of gift and
in
accordance with the provisions of such that instrument and
subject
to the any conditions and limitations ,
if any, therein
expressed in that instrument, if the limited
purposes limited by
such
gifts are within the purposes of
this act. ;
(g) To submit to the governor, the department, and the
legislature a quarterly fiscal report and an annual report of
operations
and such any other reports as may be requested by the
governor
or legislature covering the activities of the board. ;
(h)
The Michigan veterans' trust fund board of trustees shall
not
be empowered to file an application for, or to prosecute the
claim
of, any individual for any benefit accruing to such that
individual
under the laws administered by the United States
veterans'
administration.VA.
Sec. 5. (1) The interest and earnings of the Michigan
veterans' trust fund shall be expended, upon appropriation, as
follows:
(a)
For the purposes and in the manner allocated
from time to
time
by the board of trustees as
follows:as provided in
section
4(b) and (c).
(a)
The operating expenses of the fund shall be approved
annually
and funded from the surplus earnings.
(b)
Fifty percent of the remaining surplus in and the earnings
of
the fund shall be allocated for distribution to county and
district
committees on the basis of need as determined by the
board.
(c)
The balance of the surplus in and earnings of the trust
fund
after allocations under subdivisions (a) and (b) shall be
allocated
in part or in whole to the several county and district
committees
on the basis of veteran population. The funds made
available
to the board of trustees for distribution to county and
district
committees on the basis of need as determined by the board
of
trustees shall be disbursed only for the same purposes of
providing
for needs of Michigan veterans as defined by 1965 PA 190,
MCL
35.61 to 35.62, or their dependents as are the funds allocated
to
county and district committees on the basis of veteran
population.
(b) Interest and earnings not expended pursuant to subdivision
(a) may be expended for either or both of the following:
(i) The benefit of veterans or their spouses or dependents at
the discretion of the board.
(ii) Annual administrative and operating costs of managing the
fund.
(2) Money in the fund, including interest and earnings of the
fund, shall not be expended for costs incurred by the auditor
general.
(3) (2)
The state treasurer shall direct
the investment of the
Michigan
veterans' trust fund. The state
treasurer shall have the
same
authority to invest the assets of the trust fund as is granted
to an investment fiduciary under the public employee retirement
system
investment act, 1965 PA 314, MCL 38.1132 to 38.1140m.
38.1141. The state treasurer shall comply with the divestment from
terror act, 2008 PA 234, MCL 129.291 to 129.301, in making
investments
under this act. The trust assets
of the fund shall be
considered state funds and shall be protected by the official bond
of the state treasurer.
(4) (3)
The state treasurer shall annually
prepare an
accounting
of revenues and expenditures from the trust fund. This
accounting shall specifically identify the interest and earnings of
the
trust fund. , shall describe how the amount of interest and
earnings
has been affected by the expanded investment options
provided
for in subsection (2), and shall identify how the
increased
interest and earnings, if any, have been expended. This
accounting shall be provided to the senate and house of
representatives appropriations committees and to the board.
Sec.
6a. (1) The Not later than
October 1, 2016, the board of
trustees
shall establish in the counties of this state
representative
veteran county not more than 10
regional committees
for the administration of the allocated money on the local level.
The
board of trustees may combine 2 or more counties into a
district
if, in the opinion of the board of trustees, a more
efficient
local administration may result from that
combination.shall report to the legislature the structure
of the
regional committees not later than August 1, 2016.
(2) Each member appointed to a regional committee under
subsection (1) shall have demonstrated knowledge, skills, and
experience in public service, business, or finance. The committee
members, as a whole, shall accurately represent the varied veteran
population in this state, and shall include members representing
different conflicts as well as a variety of population demographics
including, but not limited to, age, race, gender, and ethnicity.
Members shall be appointed as follows:
(a)
One representative of the American legion.Legion.
(b)
One representative of the veterans of foreign wars
Veterans of Foreign Wars of the United States.
(c)
One representative of the disabled Disabled American
veterans.Veterans.
(d)
One representative of any other congressionally chartered
veterans'
a recognized veterans organization other than those
organizations identified in subdivision (a), (b), or (c).
(e) One representative of the National Association of County
Veterans Service Officers.
(f) (e)
Not less more than
1 2 independent member members who
may or may not be a member of 1 or more congressionally chartered
veterans' organizations or a recognized veterans organization, but
shall not represent any congressionally chartered veterans'
organization or recognized veterans organization of which he or she
is a member.
(3) Members appointed under subsection (2) shall be appointed
by the board of trustees upon recommendation of the organizations
identified
in subsection (2). For members appointed under
subsection
(2)(a), (b), or (c), a recommendation for appointment
shall
come from an organized and functioning local unit of the
organization,
through the organization's headquarters. For a member
appointed
under subsection (2)(d), (2)(a)
through (e), a
recommendation for appointment shall come from the state
headquarters or association of the congressionally chartered
veterans' organization or recognized veterans organization that
validates the nominated member's qualifying criteria. For members
appointed
under subsection (2)(e), (2)(f),
candidates shall submit
through
the county or district regional
committee the request for
consideration of appointment with the required criteria validated.
(4)
Each member of a county or district committee shall be a
veteran.
(4) (5)
The board of trustees may remove a
member of a county
or
district regional committee for misfeasance, malfeasance, or
nonfeasance in office, after hearing. Missing 2 or more consecutive
meetings shall be considered malfeasance and is grounds for
removal.
(5) (6)
If a vacancy occurs during the term
of office of a
member
of a county or district regional
committee, the member's
successor shall be selected from the same organization and in the
same manner as the original appointment for the balance of the
unexpired term.
(6) (7)
Members of a county or district regional committee
shall
serve without compensation, but shall be entitled to actual
and
necessary expenses incurred in mileage
reimbursement for
attending
scheduled meetings of the regional
committee or in for
attending a meeting to make a determination on a grant, which
expenses,
together with administration expenses, mileage
reimbursement
shall be paid from money allocated to
the county or
district
regional committee as provided in this act.
(7) (8)
The county boards of commissioners in a region, or the
board of county auditors in a county with a board of county
auditors,
shall provide suitable office space for county and
district
committees.the regional
committee.
(8) (9)
A veteran person who is eligible to apply for benefits
and who considers himself or herself aggrieved at a decision
rendered
by a county or district regional
committee in connection
with a request for assistance may appeal that decision to the board
of trustees. The decision of the board of trustees on an appeal
referred
to it is final and binding on the veteran and the county
or
district regional committee.
Sec.
7. (1) Funds Not
later than October 1 of each year, funds
shall
be distributed to the several county treasurers by the state
treasurer at the direction of the board of trustees. The funds
distributed shall be credited by the county treasurer to a county
veterans' trust fund and shall be disbursed by the county treasurer
on vouchers drawn by the county clerk based on orders filed by the
county
or district regional committee. Allocations to district
regional
committees shall be distributed to the several
county
treasurers
of the counties composing the district. region. The
veterans' trust fund shall be covered by the official bond of the
county treasurer.
(2) Any unexpended, unencumbered funds remaining with a county
veterans' trust fund after October 1 of each year shall be returned
to the department for disbursement under this act.
Enacting section 1. Sections 2a, 4a, 4b, and 10 of 1946 (1st
Ex Sess) PA 9, MCL 35.602a, 35.604a, 35.604b, and 35.610, are
repealed.
Enacting section 2. This amendatory act takes effect 90 days
after the date it is enacted into law.