FIRST CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

Senate Bill No. 187, entitled

A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2014; and to provide for the expenditure of the appropriations.

Recommends:

First: That the House recede from the Substitute of the House as passed by the House.

Second: That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

(attached)

Third: That the Senate and House agree to the title of the bill to read as follows:

A bill to make appropriations for the department of military and veterans affairs for the fiscal year ending September 30, 2014; and to provide for the expenditure of the appropriations.

_______________________ ________________________

Patrick Colbeck Nancy E. Jenkins

_______________________ ________________________

Roger Kahn Peter MacGregor

_______________________ ________________________

Vincent Gregory Sarah Roberts

Conferees for the Senate Conferees for the House

SUBSTITUTE FOR

SENATE BILL NO. 187

A bill to make appropriations for the department of military

and veterans affairs for the fiscal year ending September 30, 2014;

and to provide for the expenditure of 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 for the department of military and

veterans affairs are appropriated for the fiscal year ending

September 30, 2014 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.......... 9.0

Full-time equated classified positions.......... 889.5

GROSS APPROPRIATION.................................... $ 166,730,000

Total interdepartmental grants and intradepartmental

transfers............................................ 650,000

Schedule of interdepartmental grant revenue sources:

IDG, state police............................. 650,000

ADJUSTED GROSS APPROPRIATION........................... $ 166,080,000

Total federal revenues................................. 89,782,700

Schedule of federal revenue sources:

DOD-DOA-NGB................................ 59,893,200

DVA-VHA.................................... 26,817,000

HHS-HCFA, Medicare, hospital insurance...... 2,934,900

HHS-HCFA, title XIX, Medicaid.................. 87,600

Federal counter narcotics revenues............. 50,000

Total local revenues................................... 1,500,000

Schedule of local revenue sources:

Local - school aid fund..................... 1,500,000

Total private revenues................................. 740,000

Schedule of private revenue sources:

Private - veterans' home post and posthumous

funds........................................ 540,000

Private donations............................. 200,000

Total other state restricted revenues................... 27,554,000

Schedule of restricted revenue sources:

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

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

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

Income and assessments..................... 19,832,100

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

Michigan veterans trust fund................ 5,193,300

Michigan national guard construction fund... 1,000,000

Military family relief fund................. 1,000,000

State general fund/general purpose..................... $ 46,503,300

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose................................... 41,003,300

One-time state general fund/general

purpose.................................... 5,500,000

Sec. 102. MILITARY

Full-time equated unclassified positions.......... 9.0

Full-time equated classified positions.......... 324.0

Unclassified positions................................. $ 1,336,700

Military............................................... 56,732,300

GROSS APPROPRIATION.................................... $ 58,069,000

Appropriated from:

Interdepartmental grant revenues....................... 650,000

Federal revenues....................................... 43,051,200

Local revenues......................................... 1,500,000

Private revenues....................................... 200,000

State restricted revenues.............................. 1,517,800

State general fund/general purpose..................... $ 11,150,000

Schedule of programs:

Armories and joint force readiness......... 14,476,300

Maintenance and operations of national

guard training facilities and air bases... 31,734,300

ChalleNGe program........................... 4,502,000

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

Support services............................ 1,973,200

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

Information technology services and

projects................................... 1,124,500

Sec. 103. MICHIGAN VETERANS AFFAIRS AGENCY

Full-time equated classified positions.......... 565.5

Michigan veterans affairs agency....................... $ 13,114,900

Homes.................................................. 68,194,900

GROSS APPROPRIATION.................................... $ 81,309,800

Appropriated from:

Federal revenues....................................... 29,431,500

Private revenues....................................... 540,000

State restricted revenues.............................. 25,036,200

State general fund/general purpose..................... $ 26,302,100

Schedule of programs:

Veterans affairs agency administration...... 5,017,000

Veterans advice, advocacy, and assistance

grants..................................... 2,904,600

Veterans' trust fund administration......... 1,446,800

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

Grand Rapids veterans' home................ 47,869,900

Board of managers (Grand Rapids home)......... 665,000

D.J. Jacobetti veterans' home.............. 19,385,000

Board of managers (Jacobetti home)............ 275,000

Sec. 104. CAPITAL OUTLAY

Special maintenance - headquarters and armories........ $ 20,351,200

Special maintenance – veterans' homes.................. 500,000

Land acquisitions and appraisals....................... 1,000,000

GROSS APPROPRIATION.................................... $ 21,851,200

Appropriated from:

Federal revenues....................................... 17,300,000

State restricted revenues.............................. 1,000,000

State general fund/general purpose..................... $ 3,551,200

Sec. 105. ONE-TIME APPROPRIATIONS

Veterans service delivery initiative................... $ 3,955,000

County counselor education and training expenses....... 45,000

Veterans affairs agency computer upgrade............... 1,500,000

GROSS APPROPRIATION.................................... $ 5,500,000

Appropriated from:

State general fund/ general purpose.................... $ 5,500,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2013-2014

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 2013-2014 is $74,057,300.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2013-2014 is $165,000.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

Headquarters and armories.............................. $ 70,000

Schedule of programs:

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

Veterans affairs agency administration................. $ 50,000

Schedule of programs:

County counselor education and training

expenses...................................... 50,000

One-time appropriations: county counselor education and

training expenses.................................... 45,000

TOTAL.................................................. $ 165,000

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) "Agency" means the Michigan veterans affairs agency.

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

affairs.

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

national guard bureau.

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

affairs.

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

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

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

human services.

(i) "IDG" means interdepartmental grant.

(j) "Large veterans service organization" means a VSO that can

certify that its membership exceeds 30,000 individuals.

(k) "Medium veterans service organization" means a VSO that

can certify that its membership is between 2,500 and 30,000

individuals.

(l) "Small veterans service organization" means a VSO that can

certify that its membership is between 1,000 and 2,499 individuals.

(m) "Subcommittees" means all members of the subcommittees of

the senate and house appropriations committees with jurisdiction

over the budget of the department.

(n) "VSO" means veterans service organization.

(o) "Work project" means a group of activities featuring a

fixed duration, budget, and scope that is expected to cause a

measurable change in the delivery, efficiency, or effectiveness of

1 or more operations.

Sec. 204. The appropriations from part 1 for interdepartmental

grant funds received by the department from sources outside the

department consist of $650,000.00 from the department of state

police.

Sec. 206. (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. 207. The department shall cooperate with the department

of technology, management, and budget to maintain a searchable

website that is accessible by the public at no cost that includes,

but is not limited to, all of the following:

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

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

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. 208. The departments and agencies receiving

appropriations in part 1 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 shall 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 shall 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. In addition,

preference shall be given to goods or services, or both, that are

manufactured or provided by Michigan small businesses that have

veterans compose at least 35% of their total workforce. As used in

this section, "veteran" means that term as defined in section 261

of the management and budget act, 1984 PA 431, MCL 18.1261. As used

in this section, "small business" means that term as defined in

section 7a of the administrative procedures act of 1969, 1969 PA

306, MCL 24.207a.

Sec. 210. The department 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. The

director of the department 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. 212. 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. 215. The department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 216. (1) Notwithstanding any other provision of this act,

the schedule of programs in part 1 lists programs which may, but

are not required to be, funded under this act.

(2) Notwithstanding any other provisions of this act, the

schedule of revenue sources in part 1 may or may not be received

from the funding entities listed.

(3) Any funding required by statute is not subject to funding

flexibility and shall be funded in accordance with that statute.

Sec. 217. The department shall improve its budgetary

efficiency pertaining to the delivery of core services delineated

in section 222 by doing all of the following:

(a) Prioritizing personnel over buildings in budgetary

efficiency considerations.

(b) Pursuing the physical or virtual consolidation of support

service functions such as information technology, human resources,

and accounting as a means of improving standardization and

efficiency.

the streamlining of existing service delivery activities.

(d) Identifying efficiencies that can be gained via the

reduction or elimination of programs, policies, and practices which

have outlived their usefulness.

Sec. 218. The departments 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 report shall be

submitted to the senate and house appropriations committees, the

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

The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The total 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. 219. (1) The department shall provide quarterly reports,

beginning October 1, to the subcommittees and the senate and house

fiscal agencies, which 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. If projected department

budget requirements exceed the allocated budget, the report shall

include a plan to reduce overall expenses while still satisfying

specified service level requirements.

established appropriations, documented through the DTMB monthly

expenditure report as described in section 301(3) of this part.

(d) A list of armory closings and projected closings.

(e) A list of property sales as described in section 223 of

this part.

(f) A report on the status of performance metrics cited in

this act.

(g) A list of the performance measures, outcomes, and

initiatives developed by the agency in the strategic plan required

by section 501 of 2013 PA 9.

(h) The number of active employees at the close of the fiscal

quarter by job classification and program.

(2) The department shall provide a corrective action plan

within 30 days of a quarterly report under this section for any

requirements of this part that have not been achieved. The

department shall provide a monthly status of corrective action

plans.

(3) The department shall provide a summary of fund shifts,

that have been approved by the state budget office, that have

occurred between items listed in the schedule of programs mentioned

in part 1 on a quarterly basis to the subcommittees and the senate

and house fiscal agencies.

(4) The Grand Rapids and D.J. Jacobetti veterans' homes shall

provide to the subcommittees the results of the veterans' homes

annual veterans' affairs inspection and their corrective action

plans.

(5) The Grand Rapids and D.J. Jacobetti veterans' homes shall

provide a list of maintenance projects, and their respective costs,

funded from the special maintenance appropriations in part 1.

Sec. 220. The department shall provide the following data to

the subcommittees and the senate and house fiscal agencies on an

annual basis:

(a) Using information received from the grant recipients in

section 401 of this part, a progress report on metric requirements,

copies of certified financial audits and tax reports of grant

recipients, a listing from grant recipients of expenditures by

spending category, including a listing of individual salaries of

each officer and administrative staff, a listing of volunteer hours

including the hours, series, and donations provided to residents of

the Grand Rapids veterans' home and the D.J. Jacobetti veterans'

home. The department shall provide within the report a specific

notification whether any veterans grant recipients failed to comply

with established reporting requirements.

(b) The Grand Rapids veterans' home and the D.J. Jacobetti

veterans' home shall produce a report including an accounting of

member populations and bed space available, a description and

accounting of services and activities provided to members,

financial information, and current state nursing home licensure

status.

that includes 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, and a detailed breakdown of trust fund

expenditures for that year, including the amount distributed to

each county for administrative costs and emergency grants. 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 to its original amount of at least

$50,000,000.00.

Sec. 222. The appropriations in part 1 are for the core

services, support services, and work projects of the department,

including, but not limited to, the following core services:

armories and joint forces readiness; maintenance and operation of

army national guard training facilities and air bases; veterans

affairs agency administration; veterans' trust fund administration;

veterans advice, advocacy, and assistance grants; the military

family relief fund; the challeNGe program; and the Grand Rapids

veterans' home and the D.J. Jacobetti veterans' home. As used in

this section, "core services" means that phrase as defined in

section 373 of the management and budget act, 1984 PA 431, MCL

18.1373.

Sec. 223. 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 subcommittees and the

senate and house fiscal agencies.

Sec. 225. Funds appropriated in part 1 shall not be used by

the department 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. 227. The department shall not exclude public employee

unions from the bid process.

Sec. 228. Not later than November 30, the state budget office

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriations lapses at the

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

year-end general fund/general purpose appropriations 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 standing committees on appropriations, the

subcommittees, and the senate and house fiscal agencies.

Sec. 229. Within 14 days after the release of the executive

budget recommendation, the department shall cooperate with the

state budget office to provide the senate and house appropriations

chairs, the subcommittees, 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 fiscal years ending September 30, 2013 and

September 30, 2014.

Sec. 230. 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

improve the agency's performance.

MILITARY

Sec. 300. (1) From the funds appropriated in part 1, there is

funding to support unclassified employee positions as authorized by

section 5 of article XI of the state constitution of 1963. These

positions include the following: department director - the adjutant

general for Michigan; assistant adjutant general - army; assistant

adjutant general - installations; assistant adjutant general - air;

senior policy executive – Michigan veterans affairs agency; deputy

director - installations command; director - strategy and policy;

director - public safety project; and director - Michigan veterans

affairs agency.

(2) Not less than 30 days prior to the department submitting a

request for an additional unclassified employee position from the

civil service commission, or for any substantive change to the

duties of an existing unclassified employee position, the

department shall notify the subcommittees and the senate and house

fiscal agencies.

ARMORIES AND JOINT FORCE READINESS

Sec. 301. (1) The department shall provide administrative

support for department operations.

(2) The department shall maintain the staffing and resources

necessary to ensure proper accountability of state funds.

(3) The department shall maintain the staffing and resources

necessary to adhere to the state of Michigan financial management

guide for accounting, contracting, purchasing, budgeting, and

financial reporting and the administrative guide to state

government.

(4) The department shall ensure fiscal controls relating to

procurement of goods and services and other expenditures.

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 provide resources necessary to ensure

that armories are maintained in accordance with army regulations.

(4) The department shall evaluate armories for consolidation,

energy, and utility efficiency and identify work projects that

would improve this efficiency and submit a quarterly report on the

status and activities of the armories as provided in section 219.

(5) The department shall establish a system that measures the

condition and adequacy of armory facilities using both quality and

functionality criteria based off the installation status report-

infrastructure inspections that are conducted annually as a

requirement set forth by the national guard.

MAINTENANCE AND OPERATIONS OF NATIONAL GUARD TRAINING FACILITIES

AND AIR BASES

Sec. 304. (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.

CHALLENGE PROGRAM

Sec. 307. (1) The department shall maintain the Michigan youth

challeNGe academy to provide values, skills, education, and self-

discipline instruction for at-risk youth.

(2) The department shall provide the staffing and resources

necessary to train 144 cadets simultaneously at the Michigan youth

challeNGe academy.

(3) The department shall ensure that the average grade level

increase for Michigan youth challeNGe academy graduates is 2 years

as measured with the test adult basic education (TABE) metrics.

MILITARY FAMILY RELIEF FUND

Sec. 308. (1) The department shall provide grants for

disbursement from the military family relief fund.

(2) The department shall provide quarterly reports to the

subcommittees on the revenues, expenditures, and fund balance of

the Michigan military family relief fund.

(3) The department shall provide quarterly reports to the

subcommittees on the applications received for assistance from the

Michigan military family relief fund.

(4) 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 called into active

duty and to support the processing and approval of at least 60

grant applications for fiscal year 2013-2014 under the Michigan

military relief fund and report those applications at quarterly

legislative hearings of the subcommittees.

MICHIGAN VETERANS AFFAIRS AGENCY

MICHIGAN VETERANS AFFAIRS AGENCY ADMINISTRATION

Sec. 401. (1) The Michigan veterans affairs agency shall

provide outreach services to Michigan veterans that advise them on

the benefits to which they are entitled.

(2) The agency shall maintain the staffing partnerships and

other resources necessary to develop and operate an outreach

program that will communicate benefit eligibility information to

35% of the Michigan veterans population as determined by most

recent census data.

(3) The agency shall communicate veteran benefit information

pertaining to the Michigan military family relief fund, Michigan

veterans' trust fund, and United States department of veterans

affairs health, financial, and memorial benefits to which they are

entitled.

(4) The agency shall provide sufficient staffing and other

resources to approve at least 5,295 requests for military discharge

certificates (DD-214) for fiscal year 2013-2014 and report to the

subcommittees quarterly.

(5) From the funds appropriated in part 1, the department

shall continue the process to digitize all medical records and

military discharge documents which are currently on paper and

microfilm.

(6) The agency shall provide claims processing services to

Michigan veterans in support of benefit claims submitted to the

United States department of veteran affairs for the health,

financial, and memorial benefits for which they are eligible.

(7) The agency shall maintain the staffing and resources

necessary to process a minimum of 500 claims per year.

(8) The agency shall ensure that a minimum of 20% of the

claims submitted by agency personnel are fully developed claims as

tracked by the United States department of veterans affairs and

report on this effort at quarterly legislative hearings of the

subcommittees.

(9) The agency shall provide training support for county

veterans counselors.

(10) The agency shall provide resources necessary to provide

county veterans counselors with training to ensure quality benefit

counseling services to veterans. From the funds appropriated in

part 1, $50,000.00 shall be allocated for training support.

(11) The Michigan veterans affairs agency and the Michigan

veterans' trust fund administration shall take steps to assist the

county veterans counselors of this state to obtain training

necessary for the execution of their duties.

(12) The agency shall provide the percentage of county

counselors trained by the department at quarterly legislative

hearings of the subcommittees.

(13) The agency shall provide the percentages of fully

developed claims submitted by county counselors trained by the

department with a goal of 20% at quarterly legislative hearings of

the subcommittees.

(14) The agency shall create a 5-member advisory board

consisting of presidents or commanders from 2 large veterans

service organizations, 2 medium veterans service organizations, and

1 small veterans service organization. The board shall meet no less

than twice a year, without reimbursement by the agency, and shall

assist the agency in developing plans, reviewing service delivery

initiatives, and identifying services and projects that assist in

meeting agency performance objectives.

VETERANS ADVICE, ADVOCACY, AND ASSISTANCE GRANTS

Sec. 402. (1) The agency shall manage the disbursement of

veterans advice, advocacy, and assistance grants to veterans

service organizations.

(2) The agency shall work to ensure that a minimum of 20% of

the claims submitted by the VSO on behalf of our veterans are fully

developed claims as tracked by the United States department of

veterans affairs and report on this effort at quarterly legislative

hearings of the subcommittees.

(3) The agency shall disburse VSO grants to assist them to

achieve agency goals and performance objectives in partnership with

the VSOs. Grants to VSOs will be disbursed to fund programs and

projects which are determined by the agency to meet agency

performance objectives.

VETERANS TRUST FUND ADMINISTRATION

Sec. 405. (1) The Michigan veterans' trust fund board together

with the agency shall provide emergency grants for disbursement

from the Michigan veterans' trust fund.

(2) The Michigan veterans' trust fund board together with the

agency shall maintain the staffing and resources necessary to

process a minimum of 2,000 applications for veterans' trust fund

emergency grants.

GRAND RAPIDS VETERANS' HOME

Sec. 501. (1) The department shall provide compassionate,

quality interdisciplinary care at the state's Grand Rapids

veterans' home so that members can achieve their highest potential

of wellness, independence, self-worth, and dignity.

(2) The department shall provide resources necessary to

provide adequate nursing care services to veterans in accordance

with federal standards, including the following:

(a) A licensed minimum number of 403 residents in skilled

nursing beds at the Grand Rapids veterans' home.

(b) A licensed minimum number of 72 residents in domiciliary

beds at the Grand Rapids veterans' home.

(3) The Grand Rapids veterans' home shall ensure that its

medical staffing is in accordance with United States department of

veterans administration standards.

(4) The Grand Rapids veterans' home shall ensure that

transportation is assured for each resident for every medical

appointment outside the veterans' home.

(5) The Grand Rapids veterans' home shall ensure that each

member resident receives daily laundry service.

(6) The Grand Rapids veterans' home shall ensure that

maintenance and custodial services are provided for each home in

accordance with applicable local, state, and federal standards.

(7) The Grand Rapids veterans' home shall ensure that each

resident receives a medical and care assessment including a dietary

plan upon admission to the home, with meals and snacks provided in

accordance with the plan and R 325.20803 of the Michigan

administrative code.

(8) Appropriations in this act for the Grand Rapids veterans'

home shall not be used for any purpose other than for veterans and

veterans' families.

(9) Any contractor providing competency evaluated nursing

assistants (CENA) to the Grand Rapids veterans' home shall ensure

that each CENA has at least 8 hours of training on information

provided by the veterans' home.

(10) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids veterans' home shall ensure that

each CENA has at least 1 eight-hour shift of shadowing at the

veterans' home.

(11) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids veterans' home shall ensure that

each CENA is competent in the basic skills needed to perform his or

her assigned duties at the veterans' home.

(12) Any contractor providing competency evaluated nursing

assistants to the Grand Rapids veterans' home shall ensure that

each CENA has at least 1 year of experience in long-term care.

(13) The Grand Rapids veterans' home shall provide each CENA

at least 12 hours of in-service training once that individual has

been assigned to the veterans' home.

(14) The Grand Rapids veterans' home shall ensure that care

services are provided to each resident of the veterans' home in

accordance with standards set by the United States department of

veterans' affairs.

(15) All complaints of abuse or neglect at the Grand Rapids

veterans' home by a resident member, a resident member's family or

legal guardian, or staff of the veterans' home, received by a

supervisor shall be referred to the director of nursing within 10

days of receiving such complaint. The board of managers may

establish a policy that requires reports on allegations of abuse or

neglect to be reported to the director of nursing more frequently.

The director of nursing shall report on not less than a monthly

basis, except that the board of managers may specify a more

frequent reporting period, to the home administrator, board of

managers, agency, subcommittees, and the senate and house fiscal

agencies the following information:

(a) A description of the process by which resident members and

others may file complaints of alleged abuse or neglect at the Grand

Rapids veterans' home.

(b) Summary statistics on the number and general nature of

complaints of abuse or neglect.

of abuse or neglect received.

(16) The Grand Rapids veterans' home shall provide an on-site,

board-certified psychiatrist for all resident members with mental

health disorders in order to ensure that those resident members

receive needed services in a professional and timely manner. The

Grand Rapids veterans' home shall provide all members and staff a

safe and secure environment.

(17) The Grand Rapids veterans' home shall ensure that it

effectively develops, executes, and monitors all comprehensive care

plans in accordance with federal regulations and its internal

policies, with a goal that a comprehensive care plan is fully

developed for all resident members.

(18) The Grand Rapids veterans' home shall implement controls

over its food, maintenance supplies, and medical supplies

inventories.

(19) The Grand Rapids veterans' home shall implement controls

over its pharmaceutical inventory.

(20) The Grand Rapids veterans' home shall establish

sufficient controls for calculating resident member maintenance

assessments in order to accurately calculate resident member

maintenance assessments for each billing cycle. The Grand Rapids

veterans' home shall establish sufficient controls to ensure that

all past due resident member maintenance assessments are addressed

within 30 days.

(21) The Grand Rapids veterans' home shall establish

sufficient controls over monetary donations and donated goods.

(22) The Grand Rapids veterans' home shall implement

sufficient controls over the handling of resident member funds to

ensure the release of funds within 3 business 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 10 business days of the

death of that resident member.

(23) The Grand Rapids veterans' home shall ensure that it

meets a minimum standard of 2.5 patient care hours per patient, per

day, each day, 7 days a week.

(24) Except as provided in subsection (15), the department

shall report its findings regarding the Grand Rapids veterans'

home's compliance with the requirements and standards under this

section at quarterly legislative hearings of the subcommittees. The

quarterly report shall include, but is not limited to, the

following information:

(a) The number of patient care hours and staffing levels

measured against the standard set forth in subsection (23).

(b) The number and dollar value of lost and discarded

prescriptions and the number of early prescription refills.

number of donated goods received, and the number of donated goods

disposed of.

(d) The number of resident member maintenance assessments

calculated each month.

(25) Not later than November 30, 2013, the department shall

provide the subcommittees with a report documenting the complaint

management process utilized by the Grand Rapids veterans' home. The

report shall include, but is not limited to, the following:

(a) A copy of the form submitted by complainants.

(b) A description of the process by which complaints are

reviewed by the staff of the Grand Rapids veterans' home.

stakeholders in the complaint process.

(d) An issue resolution status report.

(e) The process by which status reports are reviewed,

including the frequency of those reviews.

D.J. JACOBETTI VETERANS' HOME

Sec. 502. (1) The department shall provide compassionate,

quality interdisciplinary care at the state's D.J. Jacobetti

veterans' home so that members can achieve their highest potential

of wellness, independence, self-worth, and dignity.

(2) The department shall provide resources necessary to

provide adequate nursing care services to veterans in accordance

with federal standards, including the following:

(a) A licensed minimum number of 158 residents in skilled

nursing beds at the D.J. Jacobetti veterans' home.

(b) A licensed minimum number of 11 residents in domiciliary

beds at the D.J. Jacobetti veterans' home.

(3) The D.J. Jacobetti veterans' home shall ensure that its

medical staffing is in accordance with United States department of

veterans administration standards.

(4) The D.J. Jacobetti veterans' home shall ensure that

transportation is assured for each resident for every medical

appointment outside the veterans' home.

(5) The D.J. Jacobetti veterans' home shall ensure that each

member resident receives daily laundry service.

(6) The D.J. Jacobetti veterans' home shall ensure that

maintenance and custodial services are provided for the home in

accordance with applicable local, state and federal standards.

(7) The D.J. Jacobetti veterans' home shall ensure that each

resident receives a medical and care assessment including a dietary

plan upon admission to the home, with meals and snacks provided in

accordance with the plan and R 325.20803 of the Michigan

administrative code.

(8) Appropriations in this act for the D.J. Jacobetti

veterans' home shall not be used for any purpose other than for

veterans and veterans' families.

(9) Any contractor providing competency evaluated nursing

assistants (CENA) to the D.J. Jacobetti veterans' home shall ensure

that each CENA has at least 8 hours of training on information

provided by the veterans' home.

(10) Any contractor providing competency evaluated nursing

assistants to the D.J. Jacobetti veterans' home shall ensure that

each CENA has at least 1 eight-hour shift of shadowing at the

veterans' home.

(11) Any contractor providing competency evaluated nursing

assistants to the D.J. Jacobetti veterans' home shall ensure that

each CENA is competent in the basic skills needed to perform his or

her assigned duties at the veterans' home.

(12) Any contractor providing competency evaluated nursing

assistants to the D.J. Jacobetti veterans' home shall ensure that

each CENA has at least 1 year of experience in long-term care.

(13) The D.J. Jacobetti veterans' home shall provide each CENA

at least 12 hours of in-service training once that individual has

been assigned to the veterans' home.

(14) The D.J. Jacobetti veterans' home shall ensure that care

services are provided to each resident of the veterans' home in

accordance with standards set by the United States department of

veterans affairs.

(15) All complaints of abuse or neglect at the D.J. Jacobetti

veterans' home by a resident member, a resident member's family or

legal guardian, or staff of the veterans' home, received by a

supervisor shall be referred to the director of nursing within 10

days of receiving such complaint. The board of managers may

establish a policy that requires reports on allegations of abuse or

neglect to be reported to the director of nursing more frequently.

The director of nursing shall report on not less than a monthly

basis, except that the board of managers may specify a more

frequent reporting period, to the home administrator, board of

managers, agency, subcommittees, and the senate and house fiscal

agencies the following information:

(a) A description of the process by which resident members and

others may file complaints of alleged abuse or neglect at the D.J.

Jacobetti veterans' home.

(b) Summary statistics on the number and the general nature of

complaints of abuse or neglect.

of abuse or neglect received.

CAPITAL OUTLAY

Sec. 601. 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.

ONE-TIME APPROPRIATIONS

Sec. 701. The 1-time appropriations in part 1 for county

counselor education and training expenses are to be expended for

costs associated with the attendance of county veterans counselors

at the national conference of the national association of county

veterans service officers to be held in Michigan in 2014 and are in

addition to the funds allocated in section 401.

Sec. 702. The 1-time appropriation in part 1 for the veterans

service delivery initiative may be expended by the agency to

operate a college campus outreach program and shall be expended by

the agency to establish the infrastructure to achieve its goals and

performance objectives, including the performance measures,

outcomes, and initiatives developed by the agency in its strategic

plan.

Sec. 703. The 1-time appropriations in part 1 for veterans

affairs agency computer upgrade are to be expended for the

integration of the hero 2 hired platform with the Pure Michigan

talent connect jobs site. The appropriation shall increase the

ability of the agency to link potential employers to veterans and

service members by adding a military occupational code translator,

thus removing barriers to employment, and adding 14,000 veterans

and service members to the Pure Michigan talent connect employment

system. The integration of the hero 2 hired system with the Pure

Michigan talent connect shall be available for soft launch by April

1, 2014 and fully operational by September 30, 2014. The agency

shall report quarterly to the subcommittees on the progress of

their compliance with this section.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2014-2015

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2015 for

the line items listed in part 1. The fiscal year 2014-2015

appropriations are anticipated to be the same as those for fiscal

year 2013-2014, excluding economic factors, and available revenue.

These adjustments will be determined after the January 2014

consensus revenue estimating conference.

Sec. 1202. It is the intent of the legislature that the

department identify the amounts for normal retirement costs and

legacy retirement costs for the fiscal year ending on September 30,

2015 for the line items listed in part 1.

Sec. 1203. The veterans affairs agency shall provide the

percentage of Michigan veterans contacted with a goal of 100% and

report upon those outreach findings at quarterly legislative

hearings to the subcommittees.