An Act To Update the Laws Governing the Maine Veterans' Homes
Maine Legislature, Session 127, LD 1524
Committee: Veterans and Legal Affairs
Sponsors: KATZ, DEVIN, DOORE, FOWLE, GOLDEN, LUCHINI, POULIOT
Amends: 22 MRSA §1812-D, 22 MRSA §1867, 37-B MRSA §509, 37-B MRSA §601, 37-B MRSA §602, 37-B MRSA §602-A, 37-B MRSA §603, 37-B MRSA §604, 37-B MRSA §606, 37-B MRSA §607, 37-B MRSA §608, 37-B MRSA §610, 37-B MRSA §610-B, 37-B MRSA §611

Legislative Document 
No. 1524 
S.P. 586 
In Senate, January 6, 2016 
An Act To Update the Laws Governing the Maine Veterans' Homes 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Representatives: DEVIN of Newcastle, DOORE of Augusta, FOWLE of 
Vassalboro, GOLDEN of Lewiston, LUCHINI of Ellsworth, POULIOT of Augusta. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  22 MRSA §1812-D, as enacted by PL 1987, c. 830, §1 and amended by 
PL 2003, c. 689, Pt. B, §6, is repealed. 
Sec. 2.  22 MRSA §1867, as repealed and replaced by PL 1993, c. 205, §1, is 
amended to read: 
§1867.  Distance restriction on placement of Medicaid recipients 
The department may make Medicaid reimbursement for a nursing facility contingent 
on a maximum distance between a patient's home and the nursing facility if the maximum 
distance is not more than 60 miles; except that the distance restriction may not be applied 
to a the Maine Veterans' Home Homes. 
Sec. 3.  37-B MRSA §509, sub-§2, ¶G, as amended by PL 2015, c. 175, §3, is 
further amended to read: 
G.  The administrator chief executive officer of the Maine Veterans' Home Homes 
when in the conduct of official duties; or 
Sec. 4.  37-B MRSA §601, as repealed and replaced by PL 2009, c. 652, Pt. A, 
§59, is amended to read: 
§601.  Homes established; purpose 
There must be public homes for veterans in Maine known as "Maine Veterans' 
Homes."  In addition to the existing 120-bed home located in Augusta, a 120-bed home 
located in Scarborough, a home not to exceed 40 beds located in Caribou, a home located 
in Bangor not to exceed 120 beds, of which 40 beds are dedicated to patients with 
dementia, and a home located in South Paris not to exceed 90 beds, of which 30 beds are 
dedicated to patients with dementia, may be constructed if federal Veterans' 
Administration funds are available to meet part of the costs of each facility for 
construction or operation.  In addition, a home located in Machias not to exceed 60 beds 
may be constructed if federal Veterans' Administration funds or funds from any other 
state, federal or private source are available to meet part of the costs of the facility for 
construction or operation, except that the Machias home may not begin operation prior to 
July 1, 1995 and the construction and funding of the Machias home may not in any way 
jeopardize the construction, funding or financial viability of any other home.  Homes" for 
the purpose of providing long-term care, support and related services to eligible veterans 
and family members of veterans.  The Maine Veterans' Homes also are authorized to 
provide nonnursing facility care and services to Maine veterans if approved by 
appropriate state and federal authorities.  The Board of Trustees of the Maine Veterans' 
Homes shall plan and develop the Machias home and any nonnursing facility care and 
services using any funds available for that purpose, except for the Augusta facility's 
funded depreciation account.  The Maine Veterans' Homes are authorized to construct 
community-based outpatient clinics for Maine veterans in cooperation with the United 
States Department of Veterans Affairs and may construct and operate veterans hospice 
facilities, veterans housing facilities and other facilities authorized by the Board of 
Trustees of the Maine Veterans' Homes, using available funds.  Any funds loaned to the 
Maine Veterans' Homes for operating purposes from the funded depreciation accounts of 
the Maine Veterans' Homes must be reimbursed from any funds received by the Maine 
Veterans' Homes and available for that purpose.  The primary purpose of the Maine 
Veterans' Homes is to provide support and care for honorably discharged veterans who 
served on active duty in the United States Armed Forces or who served in the Reserves of 
the United States Armed Forces on active duty for other than training purposes. 
Sec. 5.  37-B MRSA §602, first ¶, as enacted by PL 1983, c. 460, §3, is amended 
to read: 
The Maine Veterans' Home Homes is a body corporate.  In addition to other powers 
granted by this chapter, the Maine Veterans' Home Homes may: 
Sec. 6.  37-B MRSA §602, sub-§2, as enacted by PL 1983, c. 460, §3, is amended 
to read: 
2.  Acquire property.  Acquire, in the name of the home homes, real or personal 
property or any interest therein, including rights or easements, on either a temporary or 
long-term basis by gift, purchase, transfer, foreclosure, lease or otherwise; 
Sec. 7.  37-B MRSA §602, sub-§5, as enacted by PL 1983, c. 460, §3, is amended 
to read: 
5.  Receive bequests and donations.  Receive, on behalf of the State, bequests and 
donations that may be made to improve the general comfort and welfare of the members 
of the home homes or for the betterment of the home homes; 
Sec. 8.  37-B MRSA §602, sub-§6, as amended by PL 1991, c. 702, §2, is further 
amended to read: 
6.  Borrow funds.  Borrow funds, not in excess of $15,000,000 $50,000,000 in the 
aggregate, make and issue bonds and negotiate notes and other evidences of indebtedness 
or obligations of the veterans' home homes for prudent and reasonable capital, operational 
and maintenance purposes.  The home homes may secure payments of all or part of the 
obligations by pledge of part of the revenues or assets of the home homes that are 
available for pledge and that may be lawfully pledged or by mortgage of part, or all, of 
any property owned by the home homes.  The home homes may do all lawful things 
necessary and incidental to those powers.  The home homes may borrow money from the 
Federal Government and its agencies, from state agencies and from any other source.  
The home homes may borrow money from the State subject to approval by the Treasurer 
of State and the Governor.  Bonds, notes and other evidences of indebtedness issued 
under this subsection shall do not be deemed to constitute debts of the State, nor a pledge 
of the credit of the State, but shall be are payable solely from the funds of the home 
homes; and 
Sec. 9.  37-B MRSA §602-A, as enacted by PL 1987, c. 830, §2 and amended by 
PL 2003, c. 689, Pt. B, §6, is repealed. 
Sec. 10.  37-B MRSA §603, as amended by PL 2001, c. 676, §1, is further 
amended to read: 
§603.  Board of trustees 
The administration of the homes is vested in the Board of Trustees of the Maine 
Veterans' Homes, as authorized by Title 5, section 12004-G, subsection 34.  The board  
consists of 11 members, one of whom must be the Director of the Bureau of Maine 
Veterans' Services, ex officio, who serves without term.  The Governor shall appoint the 
remaining trustees, who must be honorably discharged war veterans.  One member must 
be a woman.  One member must be appointed from and represent each of the largest 
veterans' organizations, not exceeding 5, that are nationally chartered and have a 
department in Maine.  The remaining members must be appointed at large and serve 
staggered 3-year terms.  The membership must be distributed across the State so that 
approximately 1/3 reside in the southern part of the State, approximately 1/3 in the central 
part and approximately 1/3 in the northern part.  In the event of a vacancy, a successor 
must be appointed to complete a member's unexpired term.  Each trustee continues to 
hold office until a successor is appointed and qualified. 
Sec. 11.  37-B MRSA §604, sub-§5, as enacted by PL 1983, c. 460, §3, is 
amended to read: 
5.  Appointment of chief executive officer.  The board shall appoint an 
administrator a chief executive officer in accordance with section 606. 
Sec. 12.  37-B MRSA §604, sub-§§6 and 7, as enacted by PL 1983, c. 460, §3, 
are amended to read: 
6.  Other funds.  The board may apply for and receive any grants-in-aid for which 
the State or the home homes may be eligible. 
7.  Rules.  The board shall adopt rules necessary to administer the home homes, to 
establish just charges for the maintenance of members and to oversee the operation of the 
home homes.  In adopting rules, the board shall seek comments and information from 
home staff of the homes, members, members' families and other relevant sources, but the 
Maine Administrative Procedure Act provisions regarding rulemaking, Title 5, chapter 
375, subchapter II subchapters 2 and 2-A, shall do not apply. 
Sec. 13.  37-B MRSA §606, as amended by PL 1997, c. 147, §1, is further 
amended to read: 
§606.  Chief executive officer 
The administrator chief executive officer must be an honorably discharged veteran 
who shall administer the home homes in accordance with the rules, guidelines and 
general policies established by the board.  The administrator chief executive officer 
serves an indefinite term, but may be removed for cause by the board.  The 
administrator's chief executive officer's salary is set by the board. The administrator chief 
executive officer shall hire the necessary employees to operate the home homes and, 
whenever possible, give preference in hiring to war veterans. These employees are not 
deemed employees of the State. 
Sec. 14.  37-B MRSA §607, as amended by PL 1997, c. 395, Pt. P, §2, is further 
amended to read: 
§607.  Admission 
Veterans desiring admission to the home homes must apply on forms prescribed by 
the administrator chief executive officer.  The administrator chief executive officer shall 
grant admission only to veterans who were residents of Maine at the time of their entry 
into the United States Armed Forces or who are residents of Maine at the time of 
application, and to the spouses, widows or widowers of eligible veterans, provided that as 
long as suitable facilities are available.  Parents of armed services members who are 
killed in action or die as a consequence of wounds received in battle are also eligible, as 
so called so-called "gold star" parents, for admission.  Admission must be granted when 
provisions of the rules governing private payment, Medicare and Medicaid eligibility to 
entitled persons are met. 
Sec. 15.  37-B MRSA §608, as enacted by PL 1983, c. 460, §3, is repealed. 
Sec. 16.  37-B MRSA §610, first ¶, as amended by PL 1997, c. 395, Pt. P, §4 and 
PL 2003, c. 689, Pt. B, §6, is further amended to read: 
All funds received by the Maine Veterans' Home Homes, including federal Veterans' 
Administration stipend funds, must be held in a permanent fund to be used as required by 
the administrator chief executive officer for the support and maintenance of the homes.  
A percentage of these funds approved by the board of trustees must be placed in reserve 
for capital improvement expenditures. The board of trustees shall operate the homes, 
when constructed, as self-liquidating projects until all the bonds issued as provided by 
this chapter are retired. Any funds received in excess of that necessary for the support and 
maintenance of the homes, the capital reserve fund and funds necessary for retirement of 
any outstanding bonds or indebtedness as those payments become due at the end of each 
fiscal year must be transferred to the Treasurer of State where they are to be applied as 
credits to the General Fund. The Department of Health and Human Services may not 
modify its principles of reimbursement for long-term care facilities to specifically 
exclude reimbursement for the depreciation of the assets created with federal or state 
grants. 
Sec. 17.  37-B MRSA §610-B, as amended by PL 1999, c. 288, §2 and PL 2003, c. 
689, Pt. B, §6, is repealed. 
Sec. 18.  37-B MRSA §611, as enacted by PL 1983, c. 460, §3, is amended to 
read: 
§611.  Reports 
The board shall make submit an annual report to the Governor and the joint standing 
committee of the Legislature having jurisdiction over veterans affairs.  This report shall 
must contain an accounting for all money received and expended a copy of audited 
financial statements, statistics on members who resided in the home homes during the 
year, recommendations to the Governor and Legislature and such other matters as the 
board deems pertinent. The administrator, subject to approval of the board, shall compile 
a biennial budget on the forms and at the time required of other state agencies. 
Sec. 19.  Maine Revised Statutes headnote amended; revision clause.  In 
the Maine Revised Statutes, Title 37-B, chapter 11, in the chapter headnote, the words 
"Maine veterans' home" are amended to read "Maine veterans' homes" and the Revisor of 
Statutes shall implement this revision when updating, publishing or republishing the 
statutes. 
SUMMARY 
This bill updates the laws governing the Maine Veterans' Homes and repeals outdated 
provisions.  It removes references to specific veterans' home locations.  It increases the 
borrowing authority of the Maine Veterans' Homes from $15,000,000 to $50,000,000.  It 
repeals a requirement that the Maine Veterans' Homes develop and implement a geriatric 
training program.  It changes the title of the position of the person who administers the 
homes from administrator to chief executive officer.  It repeals a requirement relating to 
payment of costs by veterans admitted to the homes.  It repeals a requirement that excess 
funds be transferred to the General Fund.  It repeals a provision relating to the use of 
stipend funds.  It makes changes to an annual reporting requirement.  It also makes 
technical changes to provide consistent reference to the Maine Veterans' Homes.