Substitute For

SENATE BILL NO. 197

A bill to make and supplement appropriations for the department of military and veterans affairs for the fiscal years ending September 30, 2023 and September 30, 2024; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:


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part 1

line-item appropriations

FOR FISCAL YEAR 2023-2024

Sec. 101. There is appropriated for the department of military and veterans affairs for the fiscal year ending September 30, 2024, from the following funds:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

 

 

 

APPROPRIATION SUMMARY

 

 

 


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Full-time equated unclassified positions

9.0

 

 

Full-time equated classified positions

1,072.5

 

 

GROSS APPROPRIATION

 

$

240,154,100

Total interdepartmental grants and intradepartmental transfers

 

$

101,800

ADJUSTED GROSS APPROPRIATION

 

 

240,052,300

Federal revenues:

 

 

 

Total federal revenues

 

 

134,445,400

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

100,000

Total other state restricted revenues

 

 

14,213,400

State general fund/general purpose

 

$

91,293,500

Sec. 102. MILITARY

 

 

 

Full-time equated unclassified positions

9.0

 

 

Full-time equated classified positions

440.0

 

 

Unclassified salaries--FTEs

9.0

$

1,736,600

Headquarters and armories--FTEs

106.5

 

21,881,000

Michigan youth challeNGe academy--FTEs

68.0

 

10,145,400

Military family relief fund

 

 

150,000

Military retirement

 

 

1,351,000

Military training sites and support facilities--FTEs

263.0

 

44,500,900

National guard operations

 

 

300,500

National guard tuition assistance fund--FTEs

2.5

 

6,520,700

Starbase grant

 

 

2,322,000

GROSS APPROPRIATION

 

$

88,908,100

Appropriated from:

 

 

 


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Interdepartmental grant revenues:

 

 

 

IDG - state police

 

 

101,800

Federal revenues:

 

 

 

DOD - DOA - NGB

 

 

62,274,200

Federal counternarcotics revenues

 

 

100,000

Special revenue funds:

 

 

 

Private donations

 

 

90,000

Billeting fund

 

 

1,377,000

Military family relief fund

 

 

150,000

Morale, welfare, and recreation fund

 

 

100,000

Rental fees

 

 

187,300

Test project fees

 

 

100,000

State general fund/general purpose

 

$

24,427,800

Sec. 103. MICHIGAN VETERANS AFFAIRS AGENCY

 

 

 

Full-time equated classified positions

61.0

 

 

County veteran service grants--FTEs

2.0

$

4,250,000

Michigan veterans affairs agency administration--FTEs

49.0

 

9,265,800

Veterans trust fund administration--FTEs

8.0

 

1,164,400

Veterans trust fund grants

 

 

2,500,000

Veterans service grants--FTEs

2.0

 

4,250,000

GROSS APPROPRIATION

 

$

21,430,200

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Private donations

 

 

10,000

Michigan veterans trust fund

 

 

3,664,400

Veterans license plate fund

 

 

50,000

State general fund/general purpose

 

$

17,705,800


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Sec. 104. MICHIGAN VETERANS FACILITY AUTHORITY

 

 

 

Full-time equated classified positions

571.5

 

 

Chesterfield Township home for veterans--FTEs

115.0

$

26,856,500

D.J. Jacobetti home for veterans--FTEs

200.0

 

23,347,200

Grand Rapids home for veterans--FTEs

238.0

 

28,175,400

Information technology services and projects

 

 

1,687,900

Michigan veteran homes administration--FTEs

18.0

 

3,581,300

Veterans cemetery--FTEs

0.5

 

84,800

GROSS APPROPRIATION

 

$

83,733,100

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DVA - VHA

 

 

31,700,100

HHS - HCFA, Medicare, hospital insurance

 

 

1,409,200

HHS - HCFA title XIX, Medicaid

 

 

8,808,200

Special revenue funds:

 

 

 

Income and assessments

 

 

7,572,700

Lease revenue

 

 

12,000

State general fund/general purpose

 

$

34,230,900

Sec. 105. CAPITAL OUTLAY

 

 

 

Armory maintenance

 

$

1,000,000

Land and acquisitions

 

 

1,000,000

Special maintenance - National Guard

 

 

30,000,000

Special maintenance - veterans homes

 

 

500,000

GROSS APPROPRIATION

 

$

32,500,000

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DOD - DOA - NGB

 

 

30,000,000

Special revenue funds:

 

 

 


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Michigan national guard construction fund

 

 

1,000,000

State general fund/general purpose

 

$

1,500,000

Sec. 106. INFORMATION TECHNOLOGY

 

 

 

Information technology services and projects

 

$

582,700

GROSS APPROPRIATION

 

$

582,700

Appropriated from:

 

 

 

Federal revenues:

 

 

 

DOD - DOA - NGB

 

 

153,700

State general fund/general purpose

 

$

429,000

Sec. 107. ONE-TIME APPROPRIATIONS

 

 

 

Selfridge air national guard base

 

 

10,000,000

MVFA facilities transition funding

 

 

3,000,000

GROSS APPROPRIATION

 

$

13,000,000

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

State general fund/general purpose

 

$

13,000,000

 

PART 1A

LINE-ITEM APPROPRIATIONS

FOR FISCAL YEAR 2022-2023

Sec. 150. There is appropriated for the department of military and veterans affairs for the fiscal year ending September 30, 2023, from the following funds:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

 

 

 

APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

1,500,000

Total interdepartmental grants and intradepartmental transfers

 

$

0


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ADJUSTED GROSS APPROPRIATION

 

 

1,500,000

Federal revenues:

 

 

 

Total federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

1,500,000

Sec. 151. ONE-TIME APPROPRIATIONS

 

 

 

Selfridge air national guard base

 

 

1,500,000

GROSS APPROPRIATION

 

$

1,500,000

Appropriated from:

 

 

 

State general fund/general purpose

 

$

1,500,000

 

part 2

provisions concerning appropriations

for fiscal year 2023-2024

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2024 is $146,009,900.00 and state spending from state sources to be paid to local units of government for the fiscal year ending September 30, 2024 is $4,178,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

 

 

 

County veteran service grants

 

$

4,041,500


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Michigan veterans affairs agency administration

 

 

90,000

Military training sites and support facilities

 

 

46,500

TOTAL

 

$

4,178,000

Sec. 202. The appropriations authorized under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

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

(a) "CENA" means competency evaluated nursing assistant.

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

(c) "Director" means the director of the department.

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

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

(f) "IDG" means interdepartmental grant.

(g) "MVAA" means the Michigan veterans affairs agency created by Executive Reorganization Order No. 2013-2, MCL 32.92.

(h) "MVFA" means the Michigan veterans' facility authority created under section 3 of the Michigan veterans' facility authority act, 2016 PA 560, MCL 36.103.

(i) "MVH" means the Michigan veteran homes as that term is defined in the Michigan veterans' facility authority act, 2016 PA 560, MCL 36.102.

(j) "Subcommittees" means the subcommittees of the senate and house appropriations committees with jurisdiction over the budget of the department.

(k) "USDVA" means the United States Department of Veterans Affairs.

(l) "USDVA-NCA" means the USDVA National Cemetery Administration.


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

(n) "VSO" means veterans service organization.

(o) "Veterans' facility" means that term as defined in section 2 of the Michigan veterans' facility authority act, 2016 PA 560, MCL 36.102.

(p) "Work project" means that term as defined in section 404 of the management and budget act, 1984 PA 431, MCL 18.1404, and that meets the criteria in section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a.

Sec. 204. The department and agencies receiving appropriations in part 1 shall use the internet to fulfill the reporting requirements of this part. This requirement shall include transmission of reports via email to the recipients identified for each reporting requirement, and it shall include placement of reports on an internet site.

Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply:

(a) Funds appropriated in part 1 must 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.

(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.

(c) Preference must 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


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comparable quality.

Sec. 206. The department shall not take disciplinary action against an employee of the department or departmental agency in the state classified civil service because the employee communicates with a member of the senate or house or a member's staff, unless the communication is prohibited by law and the department or agency taking disciplinary action is exercising its authority as provided by law.

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The travel report shall include the following information:

(a) The dates of each travel occurrence.

(b) The transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.

Sec. 208. Funds appropriated in part 1 shall not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those outside services that the attorney general authorizes.


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Sec. 209. Not later than December 31, the state budget office shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the prior 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 chairpersons of the senate and house appropriations committees, the subcommittees, and the senate and house fiscal agencies.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $8,600,000.00 for federal contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,100,000.00 for state restricted contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $250,000.00 for local contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for private


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contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 211. From the funds appropriated in part 1, the department shall provide to the department of technology, management, and budget information sufficient to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for each department or agency:

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

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

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

Sec. 212. Within 14 days after the release of the executive budget recommendation, the department shall provide to the state budget office information sufficient to provide the senate and house appropriations chairs, the subcommittees chairs, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the prior 2 fiscal years.

Sec. 213. The department shall maintain, on a publicly accessible website, a department scorecard that identifies, tracks, and regularly updates key metrics that are used to monitor and


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improve the department's performance.

Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 216. (1) On a quarterly basis, the department shall report the following information:

(a) The number of FTEs in pay status by type of staff and civil service classification.

(b) A comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTEs employed by the department at the end of the reporting period.

(2) By March 1 of the current fiscal year, the department shall report to the senate and house appropriations committees, the subcommittees, and the senate and house fiscal agencies the following information:

(a) Number of employees that were engaged in remote work in 2023.

(b) Number of employees authorized to work remotely and the actual number of those working remotely in the current reporting period.

(c) Estimated net cost savings achieved by remote work.

(d) Reduced use of office space associated with remote work.

Sec. 217. Appropriations in part 1 shall, to the extent possible by the department, not be expended until all existing work


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project authorization available for the same purposes is exhausted.

Sec. 219. The departments and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 220. The department shall report no later than April 1 on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year to the senate and house appropriations committees, the subcommittees, the joint committee on administrative rules, and the senate and house fiscal agencies.

Sec. 221. The department shall provide biannual reports which shall provide the following data:

(a) A list of all major work projects, including a status report of each project.

(b) The department's financial status, featuring a report of budgeted versus actual expenditures by part 1 line item including a year-end projection of budget requirements.

(c) The number of active employees at the close of the reporting period by job classification and departmental branch of service.

Sec. 222. It is the intent of the legislature that departments and agencies maximize the efficiency of the state workforce and, where possible, prioritize in-person work. Each department, agency, board, or commission that receives funding under part 1 must post its in-person, remote, or hybrid work policy on its website.

Sec. 223. The appropriations in part 1 for capital outlay


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shall be carried forward at the end of the fiscal year consistent with section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.

Sec. 224. Sixty days prior to the public announcement of the intention to sell any department real property, the department shall submit notification of that intent to the subcommittees and the senate and house fiscal agencies.

Sec. 226. Except as otherwise provided under this part, any report required to be provided by the department or agencies appropriated funds in part 1 shall be provided to the subcommittees, the senate and house fiscal agencies, and the state budget office.

Sec. 227. (1) From the funds appropriated in part 1, the department and agencies that receive funding shall do all of the following:

(a) Report any amounts of severance pay for a department or agency director, deputy director, or other high-ranking department or agency official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) Maintain an internet site that posts any severance pay in excess of 6 weeks of wages, regardless of the position held by the former department or agency employee receiving severance pay.

(c) By February 1, report to the subcommittees, the house and senate fiscal agencies, the house and senate policy offices, and the state budget office on the total amount of severance pay remitted to former department or agency employees during the prior fiscal year and the total number of former department or agency


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employees that were remitted severance pay during the prior fiscal year.

(2) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 229. The department shall provide annually to the subcommittees and the senate and house fiscal agencies its updated departmental strategic plan.

 

MILITARY

Sec. 301. (1) The department shall report to the subcommittees and house and senate fiscal agencies by September 30 a list of the current unclassified positions, which shall include the official titles and responsibilities of each position.

(2) Upon the department being granted a request for an additional unclassified employee position from the civil service commission, or for any substantive changes to the duties of an existing unclassified employee position, the department shall notify the subcommittees, the senate and house fiscal agencies, and the state budget office within 15 days.

Sec. 302. (1) From the funds appropriated in part 1 for military operations, effective and efficient executive direction and administrative leadership shall be provided to the department.

(2) The department shall operate and maintain National Guard armories.

(3) The department shall evaluate armories and submit a report biannually, on the status of the armories.


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(4) The department shall maintain a system to measure the condition and adequacy of the armories.

(5) The Michigan Army National Guard and Air National Guard shall work to provide a culture that is free of sexual assault, through an environment of prevention, education and training, response capability, victim support, reporting procedures, and appropriate accountability that enhances the safety and well-being of all guard members.

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

(a) An assessment of the grounds and facilities of each armory to objectively measure and determine the current facility condition and capability to support authorized manpower, unit training, and operations.

(b) Recommendations for the placement of new armories, the relocation or consolidation of existing armories, or a change in the mission of units assigned to armories to ideally position the National Guard in current or projected population centers.

(c) Recommendations for the enhanced use of armories to facilitate family support programs during deployments.

(d) An analysis of the feasibility, potential costs, and benefits of use of armories shared with other local, state, or federal agencies to improve responses to local emergencies as well as the community support provided to armories.

(e) An investment strategy and proposed funding amounts in a prioritized project list to correct the most critical facility shortfalls across the inventory of armories in this state.

(f) A review of the status of construction activities and expenditures of the armory modernization project funded in section


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107 of 2022 PA 166 and section 104 of 2022 PA 194.

Sec. 303. (1) The department shall maintain the Michigan youth challeNGe academy to provide values, skills, education, and self-discipline instruction for at-risk youth as provided under 32 USC 509.

(2) The department shall take steps to recruit candidates to the challeNGe academy from economically disadvantaged areas, including those with low-income and high-unemployment backgrounds.

(3) The department shall partner with the department of health and human services to identify youth who may be eligible for the challeNGe academy from those youth served by department of health and human services programs. These eligible youth shall be given priority for enrollment in the academy.

(4) The department shall maintain the Michigan youth challeNGe academy to graduate at least the target number of graduates consistent with the state's cooperative agreement with the National Guard Bureau regarding program operations.

(5) The department shall ensure individual academic success as measured by the number of individuals who have received a general equivalency diploma, high school diploma, or high school credit recovery or by the improvement of tests of adult basic education scores, or both.

(6) Any unexpended private donations to support the Michigan youth challeNGe academy at the close of this fiscal year shall not lapse to the general fund but shall be carried forward to the subsequent fiscal year.

Sec. 304. (1) The department shall provide an annual report on the revenues, expenditures, and fund balance of the Michigan military family relief fund created in section 3 of the military


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family relief fund act, 2004 PA 363, MCL 35.1213. Expenditures must be itemized by purpose, including, but not limited to, for advertising and assistance grants. This report shall also include information on the number of applications for assistance received, approved, and denied.

(2) From the funds appropriated in part 1, the department shall provide sufficient staffing and other resources to provide outreach to the Michigan families of members of the reserve component of the Armed Forces of the United States called into active duty and to support the processing and approval of grant applications for this fiscal year under the Michigan military relief fund created in section 3 of the military family relief fund act, 2004 PA 363, MCL 35.1213, and report those applications annually.

Sec. 305. (1) The department shall provide Army and Air National Guard forces, when directed, for state and local emergencies and in support of national military requirements.

(2) The department shall operate and maintain Army National Guard training facilities, including Fort Custer and Camp Grayling.

(3) The department shall maintain a system that measures the condition and adequacy of air facilities using both quality and functionality criteria.

(4) The department shall operate and maintain Air National Guard air bases, including Selfridge Air National Guard base, Battle Creek Air National Guard base, and Alpena combat readiness training center.

(5) The department shall provide the following information annually:

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


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National Guard.

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

(c) Recruiting, retention, and attrition data, including measurement against stated performance goals, for the Michigan Army National Guard.

(d) Recruiting, retention, and attrition data, including measurement against stated performance goals, for the Michigan Air National Guard.

Sec. 306. There is created and established under the jurisdiction and control of the department a revolving account to be known as the billeting fund account. All of the fees and other revenues generated from the operation of the chargeable transient quarters program shall be deposited in the billeting fund account. Appropriations will be made from the account for the support of program operations and the maintenance and operations of the chargeable transient quarters program and will not exceed the estimated revenues for the fiscal year in which they are made, together with unexpended balances from prior years. The department shall submit an annual report by December 15 of operations and expenditures regarding the billeting fund account for the prior fiscal year.

Sec. 307. (1) The department shall maintain a National Guard tuition assistance program under section 3 of the Michigan national guard tuition assistance act, 2014 PA 259, MCL 32.433, for eligible persons as defined in section 2 of the Michigan national guard tuition assistance act, 2014 PA 259, MCL 32.432.

(2) The objective of the National Guard tuition assistance program is to bolster military readiness by increasing recruitment


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and retention of Michigan Army and Air National Guard members, to fill federally authorized strength levels for the state, to improve the Michigan Army and Air National Guard's competitive draw from other military enlistment options in the state, to enhance the ability of the Michigan Army and Air National Guard to compete for guard members and federal dollars with surrounding states, and to increase the pool of eligible candidates within the Michigan Army and Air National Guard to become commissioned officers.

(3) The department shall make efforts to increase the number of guard members who have received a credential or are still enrolled in the Michigan National Guard tuition assistance program after their initial term of enlistment. To evaluate the effectiveness of the program, the department shall monitor the number of new recruits and new reenlistments and the percentage of those who become participants in the program to determine whether the percentage of authorized Michigan Army and Air National Guard strength obtained and retained is competitive in comparison with the neighboring army and air national guards from Illinois, Indiana, Ohio, and Wisconsin.

(4) Not later than March 1, the department shall provide a report on the Michigan National Guard tuition assistance program. The report shall include the following information for the prior fiscal year:

(a) The number of guard members receiving tuition assistance.

(b) The educational institution from which those guard members received education or training under the program.

(c) The total amount of financial assistance received by each educational institution.

(d) The total funds expended on the program for financial


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assistance.

(e) The total funds expended on the program for administrative costs of the department.

(f) The total number of applications for tuition assistance denied.

(g) A list of any educational and training programs removed from eligibility and the rationale for their removal.

(h) An explanation of any identified barriers to the successful utilization of the program, or other unmet needs of the program and applicable proposals for legislative action to address those barriers and needs.

(5) The general fund/general purpose funds appropriated in part 1 for the National Guard tuition assistance fund shall be deposited into the restricted Michigan national guard tuition assistance fund created in section 4 of the Michigan National Guard tuition assistance act, 2014 PA 259, MCL 32.434. All funds in the restricted Michigan national guard tuition assistance fund are appropriated and available for expenditure to support the Michigan National Guard tuition assistance program.

Sec. 308. The department shall maintain the starbase program at Air National Guard facilities, as provided under 10 USC 2193b, to improve the knowledge, skills, and interest of students, primarily in the fifth grade, in math, science, and technology. The starbase program is to specifically target minority and at-risk students for participation.

Sec. 309. There is created and established under the jurisdiction and control of the department a revolving account to be known as the test project fees account. All of the fees and other revenues generated from the operation of the test project


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program shall be deposited in the test project fees fund account. Funds in the account shall be available for expenditure for the support of program operations as appropriated in part 1. Money remaining in the account at the end of the year shall not lapse and shall carry forward to the subsequent fiscal year.

Sec. 310. The morale, welfare, and recreation fund is created within the state treasury. The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments. The department shall be the administrator of the fund for auditing purposes. All of the fees and other revenues generated from the operation of the morale, welfare, and recreation program shall be deposited in the morale, welfare, and recreation fund account. Money in the fund shall be available for expenditure for the support of program operations as appropriated in part 1. Money remaining in the fund at the end of the year shall not lapse and shall carry forward to the subsequent fiscal year.

Sec. 311. There is created and established under the jurisdiction and control of the department a revolving account to be known as the rental fees account. All of the fees and other revenues generated from the operation of the rental fees program shall be deposited in the rental fees fund account. Money in the account shall be available for expenditure for the support of program operations as appropriated in part 1. Money remaining in the account at the end of the year shall not lapse and shall carry forward to the subsequent fiscal year.

Sec. 312. (1) The department shall maintain the guidelines established under section 251(5) of the Michigan military act, 1967


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PA 150, MCL 32.651, for membership goals in the Michigan volunteer defense force and take all steps necessary to carry out and implement those guidelines.

(2) The department shall provide annually to the subcommittees and house and senate fiscal agencies by February 1 the report required under section 251(7) of the Michigan military act, 1967 PA 150, MCL 32.651.

 

MICHIGAN VETERANS AFFAIRS AGENCY

Sec. 404. (1) Money privately donated to the department for the Michigan veterans affairs agency administration in excess of the appropriation in part 1 is appropriated and may be used for the benefit and life enrichment of veterans and for the purpose designated by the private source, if specified and in compliance with this section.

(2) The department must submit an annual report that provides the amount of private donations received by the department for the Michigan veterans affairs agency administration and the purpose for which the funds will be expended, if known. In addition to the report required under this subsection, if a donation described under this section is $10,000.00 or greater, the department must submit a report within 14 calendar days after receiving that donation providing the amount of the donation and the purpose for which the funds will be expended, if known.

(3) Any unexpended and unencumbered private donations to support the MVAA at the close of this fiscal year shall not lapse to the general fund but shall be carried forward to the subsequent fiscal year.

Sec. 405. (1) The MVAA shall provide a report annually on the


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financial status of the Michigan veterans' trust fund, including the number and amount of emergency grants, state operating and administrative expenses, and county administrative expenses.

(2) The Michigan veterans' trust fund board together with the MVAA shall provide emergency grants for disbursement from the Michigan veterans' trust fund, as provided under the following program authorities:

(a) Sections 37, 38, and 39 of article IX of the state constitution of 1963.

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

(c) R 35.1 to R 35.7 of the Michigan Administrative Code.

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

(3) No later than February 1, the MVAA shall provide a detailed report of the Michigan veterans' trust fund that includes, for the prior fiscal year, information on grants provided from the emergency grant program, including details concerning the methodology of allocations, the selection of emergency grant program authorized agents, a description of how the emergency grant program is administered in each county, the selection of authorized agents, and a detailed breakdown of trust fund expenditures for that year, including the amount distributed to each county for operating costs, administrative costs and emergency grants. The report shall also include the number of approved applications, by category of assistance, and the number of denied applications, by reason of denial. The report shall also provide an update on the department's efforts to reduce program administrative costs and maintain the Michigan veterans' trust fund corpus at or above its original amount of at least $50,000,000.00.

Sec. 406. (1) The MVAA shall provide outreach services to


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Michigan veterans to advise them on the benefits to which they are entitled, as provided under Executive Reorganization Order No. 2013-2, MCL 32.92.

(2) The MVAA shall also do the following:

(a) Develop and operate an outreach program that communicates benefit eligibility information to at least 50% of Michigan's population of veterans, as assessed by annual census estimates, with a goal of reaching 100% and enabling 100% to access benefit information online.

(b) Communicate veteran benefit information pertaining to the Michigan military family relief fund, Michigan veterans' trust fund, and USDVA health, financial, and memorial benefits to which veterans are entitled.

(c) Fulfill requests for military discharge certificates (DD-214) upon request.

(d) Provide a report annually providing, to the extent known, data on the estimated number of homeless veterans, by county, in this state.

(e) Provide a report annually on the percentage of Michigan veterans contacted through its outreach programs, with a goal of 90%, and report that percentage to the subcommittees biannually on the status of outreach.

Sec. 408. From the funds appropriated in part 1, the MVAA shall provide for the regional coordination of services, as follows:

(a) The MVAA shall coordinate with veteran benefit counselors throughout a specified region.

(b) The MVAA shall coordinate services with the department of health and human services and the department of corrections.


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(c) The MVAA shall coordinate with regional workforce and economic development agencies.

(d) The MVAA shall coordinate activities among local foundations, nonprofit organizations, and community groups to improve accessibility, enrollment, and utilization of the array of health care, education, employment assistance, and quality of life services provided at the local level.

(e) The MVAA may work with MVAA service officers, county veteran counselors, VSO service officers, and other service providers to incorporate the provision of information relating to mental health care resources into their daily operations to aid veterans in understanding the mental health care support services they may be eligible to receive.

(f) The MVAA shall coordinate with the department of health and human services to identify Medicaid recipients who are veterans and who may be eligible for federal veterans health care benefits or other benefits, to the extent that the identification does not violate applicable confidentiality requirements.

(g) The MVAA shall collaborate with the department of corrections to create and maintain a process by which prisoners can obtain a copy of their DD-214 form or other military discharge documentation if necessary.

(h) The MVAA shall ensure that all MVAA service officers and VSO service officers receive appropriate training in processing applications for benefits payable to veterans due to military sexual trauma, post-traumatic stress disorder, depression, anxiety, substance abuse, or other mental health issues.

Sec. 410. (1) The MVAA shall provide claims processing services to Michigan veterans in support of benefit claims


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submitted to the USDVA for the health, financial, and memorial benefits for which they are eligible, and shall do both of the following:

(a) Report annually on the number of benefit claims, by type, submitted to the USDVA by MVAA.

(b) Maintain the staffing and resources necessary to process a minimum of 500 claims per year.

(2) The MVAA shall develop and implement a process to ensure that all county counselors receive the training and accreditation necessary to provide quality services to veterans and shall report information annually on the number and percentage of county veterans counselors trained by the MVAA, and the number and percentage who received funding from the MVAA to attend training, with an overall goal of 100% of county veterans counselors trained.

(3) From the funds appropriated in part 1 for MVAA, the MVAA is authorized to expend up to $50,000.00 to hire legal services to represent veterans benefit cases before federal court to maintain accreditation under 38 CFR 14.628(d)(1)(iv).

Sec. 411. (1) From the funds appropriated in part 1 for veterans service grants, the MVAA shall establish, administer, and award competitive grants to 1 or more congressionally chartered VSOs or a coalition of VSOs. Grants shall be used to support efforts to connect veterans and their dependents with federal compensation and pension benefits and state veterans' benefits, including emergency grants through the Michigan veterans' trust fund and other local or nonproject assistance that may be available to veterans and their dependents. The competitive grant process shall include all of the following:

(a) Using a regional service delivery model to ensure that


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veterans and their dependents in this state, including those within tribal communities, are provided with services, advocacy, and outreach as close to the communities in which they live as possible.

(b) Ensure that grantees are providing adequate veteran services and advocacy, through in-person and virtual meetings, that enables the organization to meet performance goals established in the grant agreement.

(c) Foster innovative and transformative approaches and techniques for the grantee to use when providing services, advocacy, and outreach for veterans and their dependents.

(d) Require grantees to use an MVAA-designated internet-based claims data system to manage caseloads. License fees associated with the claims data system described in this subdivision are considered an allowable expenditure and may be reimbursed with grant funds.

(e) A provision that requires grantees, in coordination with the MVAA, to provide services to incarcerated veterans who are within 1 year of their earliest release date.

(f) Ensure that each grantee is issued performance goals.

(g) Ensure that each grantee expends grant awards as prescribed in the grant agreement.

(h) Require each grantee to report not less than quarterly on all of the following:

(i) An accounting for all grant fund expenditures.

(ii) The number and type of claims originated and submitted by the grantee to the USDVA.

(iii) The number and type of claims originated by an organization other than the grantee and submitted by the grantee to


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the USDVA.

(iv) The services provided to veterans and their dependents.

(v) Progress in achieving monthly performance benchmark goals.

(i) Ensure that each grantee is issued monthly performance benchmark goals that each grantee must aim to achieve and require each grantee to report to the MVAA, in order to ensure that benchmark goals are being achieved, or on target to be achieved, in the fiscal year.

(2) The MVAA shall do all of the following:

(a) Follow all generally accepted accounting principles in accordance with sections 141 and 485 of the management and budget act, 1984 PA 431, MCL 18.1141 and 18.1485.

(b) When establishing, modifying, or amending the competitive grant process described in subsection (1), consult and collaborate with congressionally chartered VSOs in the state, or a coalition of VSOs, and other stakeholders to ensure a comprehensive approach to providing services, advocacy, and outreach to veterans and their dependents.

(c) Provide notice to current grantees of any MVAA-proposed modifications or amendments to the competitive grant process and provide those grantees with an opportunity to respond through written communication.

(d) Assess the accuracy rate of claims reported by grantees.

(e) Review and audit grantees' expenditure of grant funds to ensure compliance with the grant agreement, as provided under section 470 of the management and budget act, 1984 PA 431, MCL 18.1470.

(3) By March 1, the MVAA shall provide a report summarizing grant activities for the prior fiscal year, including the amount of


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expenditures, number of service and advocacy hours, number of claims for benefits submitted by type of claim, and other information deemed appropriate by the MVAA.

(4) From the funds appropriated in part 1 for veterans service grants, $208,500.00 must be allocated to cover necessary administrative and implementation costs incurred by the MVAA.

(5) The unexpended funds appropriated in part 1 for veterans service grants are designated as a work project appropriation and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for projects under this section until the projects have been completed.

Sec. 412. The department shall continue to cooperate with the department of health and human services to identify Medicaid recipients who are veterans and who may be eligible for federal veterans' health benefits or other benefits and refer those veterans to the department for assistance in securing additional benefits.

Sec. 413. (1) The funds appropriated in part 1 for county veteran service grants shall be deposited to the restricted county veteran service fund created in section 3a of 1953 PA 192, MCL 35.623a. All funds in the restricted county veteran service fund are appropriated and available for expenditure to support county veteran service grants.

(2) From the funds deposited under subsection (1) to the restricted county veteran service fund, $208,500.00 shall be allocated to the MVAA to be used to cover costs associated with administering and providing technical assistance to counties for this grant program.

(3) The MVAA shall provide a report by December 15 that


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includes the following:

(a) A list of counties that received a grant under this section in the prior fiscal year.

(b) The total amount of grant funding each county received in the prior fiscal year including any amount of funding provided under the emergent need relief program pursuant to section 3a(10) of 1953 PA 192, MCL 35.623a.

(c) A summary of each county's expenditures of grant funding.

(d) The amount of any unexpended grant funding disbursed to the counties that has been recovered and returned to the county veteran service fund.

(e) The balance of the county veteran service fund after the prior fiscal year-end book closing.

(f) A list of counties that have requested funds in the current fiscal year, the amount requested by each county, and the total of these amounts.

(g) A list of counties that did not request funds in the current fiscal year.

(h) The amount of any funds recovered by the MVAA through the MVAA's finding of misused grant funds.

(i) An explanation of any obstacles or reasons for counties not applying for or spending their eligible amount of grant funding.

Sec. 414. By February 1, the department shall provide a report on the status of the construction, operations, and finances of the state veterans cemetery authorized under the veterans cemetery act, 2022 PA 267, MCL 35.1251 to 35.1259.

Sec. 415. From the funds appropriated in part 1, the department may contract with or provide grants to local health care


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providers to accelerate the clinical research and deployment of promising investigational treatments for suicide prevention that have been granted breakthrough therapy designation by the United States Food and Drug Administration, and are eligible for expanded access as defined by the United States Food and Drug Administration, specifically for the treatment of post-traumatic stress disorder, major depressive disorder, or treatment-resistant depression in Michigan veterans of the United States military and first responders. In addition, from the funds appropriated in part 1, the department may hire up to 3 FTE staff to facilitate and administer this grant program.

 

MICHIGAN VETERANS' facility authority

Sec. 451. Money privately donated to the MVH, the MVFA, or a veterans' facility in excess of the appropriation in part 1 is appropriated and may be used for the benefit and life enrichment of resident members and for the purpose designated by the private source, if specified and in compliance with this section. A report must be submitted to the subcommittees within 14 calendar days after the MVH, MVHA, or veterans' facility receives a donation that is $10,000.00 or greater and the report must include the purpose for which the donated funds are to be spent, if known.

Sec. 452. (1) The MVH and the MVFA shall provide compassionate and quality nursing care services at each veterans' facility in this state so that resident members can achieve their highest potential of wellness, independence, self-worth, and dignity.

(2) From the funds appropriated in part 1, the MVFA and the MVH shall provide nursing care services to veterans in accordance with federal standards and report the results of the annual USDVA


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and Centers for Medicare and Medicaid Services surveys and certification as proof of compliance.

(3) Appropriations in part 1 for a veterans' facility shall not be used for any purpose other than expenses related to the operations of the veterans' facility, resident members, and their families.

Sec. 454. Any contractor providing CENAs to a veterans' facility shall ensure all of the following:

(a) That each CENA has at least 8 hours of training on information provided by the veterans' facility.

(b) That each CENA has at least one 8-hour shift of shadowing at the veterans' facility.

(c) That each CENA is competent in the basic skills needed to perform his or her assigned duties at the veterans' facility.

(d) That each CENA is provided at least 12 hours of in-service training once that individual has been assigned to the veterans' facility.

Sec. 456. (1) All complaints of abuse or neglect at a veterans' facility shall be reported and investigated in compliance with USDVA and Centers for Medicare and Medicaid Services regulations for state veterans' homes and skilled nursing facilities. The MVFA shall report on a bimonthly basis the following information:

(a) A description of the process by which resident members and others may file complaints of alleged abuse or neglect at a veterans' facility.

(b) Summary statistics on the number and general nature of complaints of abuse or neglect.

(c) Summary statistics on the final disposition of complaints


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of abuse or neglect received.

(2) The process by which visitors, resident members, and staff of the veterans' facility may register complaints must be displayed in high-traffic areas throughout the veterans' facility.

Sec. 460. The MVH shall establish and implement internal controls regarding all of the following:

(a) The use and management of food, maintenance, and pharmaceutical and medical supply inventories.

(b) Calculating resident member maintenance assessments in order to accurately calculate resident member maintenance assessments for each billing cycle and ensure that all past due resident member maintenance assessments are addressed within 30 days.

(c) Monetary donations and donated goods.

(d) The handling of resident member funds to ensure the release of funds within 15 calendar days upon the resident member leaving the home and to ensure that a representative of a resident member is provided a full accounting of that resident member's funds within 30 calendar days after the death of that resident member.

(e) Financial reporting and accounting.

Sec. 461. (1) The MVH shall provide bimonthly reports on the following:

(a) Census data for each veterans' facility, including information on level of care, service era, payer source, and average income and assessment rate of its resident members.

(b) Per-patient daily care hours provided by each veterans' facility, by level of care.

(c) Financial status of each veterans' facility and central


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MVFA/MVH administration. Information must include, but is not limited to, actual year-to-date and projected year-end revenues and expenditures, by fund source.

(2) In addition to the information required under section 12(1) of the Michigan veterans' facility authority act, 2016 PA 560, MCL 36.112, the MVFA shall provide a report detailing the strategies and actions taken to maximize revenues from nongeneral fund sources and cost savings strategies.

Sec. 463. In addition to the funds appropriated in part 1, private revenues held by the MVH on a nonfiduciary basis for a resident member of a veterans' facility are appropriated to pay medical expenses, member assessments, and other expenses incurred by that resident member. Any unexpended or unencumbered private revenues held on a nonfiduciary basis by the MVH at the close of the fiscal year shall not lapse to the general fund but shall be carried forward into the subsequent fiscal year.

Sec. 464. By March 1, the MVFA shall provide a report on the construction, operation, and finances of the new Marquette veterans home funded in article 14 of 2022 PA 166.

Sec. 465. Except as otherwise provided by law, any unexpended and unencumbered federal revenues received by the MVFA shall not lapse to the state general fund, but shall be carried forward into the subsequent fiscal year.

 

CAPITAL OUTLAY

Sec. 501. (1) The department shall provide for the acquisition and disposition of National Guard armories, facilities, and lands as provided under sections 368, 382, and 382a of the Michigan military act, 1967 PA 150, MCL 32.768, 32.782, and 32.782a.


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(2) The department shall provide a listing of property sales and acquisitions annually.

Sec. 502. (1) The appropriations for special maintenance - National Guard shall be expended in accordance with the requirements of sections 302 and 305 of this part and shall be expended according to the maintenance priorities of the department to repair and modernize military training sites and support facilities, including armories, which may include projects such as roof, HVAC, or boiler replacement, interior renovations, facility expansion, improvements to parking facilities, and other projects.

(2) The department shall provide a report annually providing information on the status, projected costs, and projected completion date of current and planned special maintenance projects at the armories and other National Guard facilities funded from capital outlay appropriations made in part 1 and in prior appropriations years.

Sec. 503. (1) The appropriations for special maintenance veterans' facility shall be expended in accordance with the requirements of section 452 of this part and shall be expended according to the maintenance priorities of the MVFA to repair and modernize the state's veterans' facility, which may include physical plant expansions, renovations, or enhancements, and other projects designed to enhance the quality of life and medical care of resident members.

(2) The MVH shall provide a report annually providing information on the status, projected costs, and projected completion date of current and planned special maintenance projects at each veterans' facility funded from capital outlay appropriations made in part 1 and in prior appropriations years.


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Sec. 504. The appropriations for armory maintenance shall be expended in accordance with the requirements of sections 302 and 305 of this part and shall be expended according to the maintenance priorities of the department to repair and modernize military training sites and support facilities, including armories.

 

PART 2A

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2022-2023

GENERAL SECTIONS

Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1A for the fiscal year ending September 30, 2023 is $1,500,000.00 and state spending from state sources to be paid to local units of government for the fiscal year ending September 30, 2023 is $0.00.

Sec. 1202. The appropriations authorized under this part and part 1A are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.