Section 1 [Cost of Care] requires the Commissioner of Veterans Affairs to establish in rules a method to calculate a maintenance charge for domiciliary residents.  The maintenance charge establishes a personal needs allowance based on the resident’s monthly income. This section sets the minimum personal needs allowance for the period July 1, 2016, to June 30, 2017, at $122 per month and at $130 for the following year.  After that, the allowance is adjusted annually by one-half of the percentage change of the Consumer Price Index on the first day of each calendar year. 

Section 2 [Arrearages] specifies that when a resident enters into an agreement for a payment schedule to address overdue maintenance charges, the agreement must not reduce the resident’s personal needs allowance below the minimum amounts specified in section 1 of the bill.

Sections 1 and 2 are effective the day after enactment.