IN ACCORDANCE WITH THE PROVISIONS OF 38 U.S.C. 1744, THIS PART SETS FORTH THE MECHANISM FOR A STATE TO OBTAIN PAYMENTS TO ASSIST A STATE VETERANS HOME (SVH) IN THE HIRING AND RETENTION OF NURSES FOR THE PURPOSE OF REDUCING NURSING SHORTAGES AT THAT SVH. IT IS A GRANT PROGRAM TO PROVIDE FUNDING ASSISTANCE FOR NO MORE THAN 3 YEARS THAT IS NOT REQUIRED TO BE SEQUENTIAL FOR USE OF HIRING AND RETENTION OF NURSES IN A STATE VETERANS HOME. NURSES CAN BE A REGISTERED NURSE, LICENSED PRACTICAL NURSE OR A CERTIFIED NURSE ASSISTANT. THE SVH MUST DEMONSTRATE BY APPLICATION OF A NURSING SHORTAGE THAT IS DOCUMENTED BY CREDIBLE EVIDENCE, INCLUDING BUT NOT LIMITED TO SVH RECORDS SHOWING NURSING VACANCIES, SVH RECORDS SHOWING NURSE OVERTIME USE, AND REPORTS DOCUMENTING THAT NURSES ARE DIFFICULT TO HIRE IN THE LOCAL AREA AND DIFFICULT TO RETAIN AS EMPLOYEES AT THE SVH. THE SVH MUST DEMONSTRATE THAT IT HAS AN EMPLOYEE INCENTIVE PROGRAM THAT CAN BE PUT INTO PLACE ON 10-1 OF THE FISCAL YEAR. PAYMENTS MAY NOT EXCEED 50 PERCENT OF THE COST OF THE EMPLOYEE INCENTIVE PROGRAM FOR THAT FISCAL YEAR AND MAY NOT EXCEED 2 PERCENT OF THE AMOUNT OF THE TOTAL PER DIEM PAYMENTS ESTIMATED BY VA TO BE MADE UNDER 38 U.S.C. 1741 TO THE STATE FOR THAT SVH DURING THAT FISCAL YEAR FOR ADULT DAY HEALTH CARE, DOMICILIARY CARE, HOSPITAL CARE, AND NURSING HOME CARE.