HB2191 - 532R - Senate Fact Sheet

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

REVISED

AMENDED

FACT SHEET FOR H.B. 2191

military families; assistance; subaccounts

Purpose

Establishes the Pre-9/11 Veterans Subaccount and Post-9/11 Veterans Subaccount within the Military Family Relief Fund (Fund).

Background

The Fund consists of private donations, grants, bequests, and any other monies received for the purposes prescribed in statute. The Fund is administered by the Department of Veterans Services (DVS). The State Treasurer invests and divests monies in the Fund upon recommendation from the Director of DVS (Director).

The military family relief advisory committee (Committee) determines the appropriate uses of the monies in the Fund. The Committee consists of the Director or the Director's designee, as well as twelve additional members, including: 1) widows or widowers of military personnel who died in the line of duty; 2) military retirees; 3) veterans who have a service-connected disability and their family members; 4) Arizona Army and Air National Guard unit commanders; and

5) active and retired senior enlisted military personnel.

The Committee is required to establish criteria for the use of monies in the Fund, establish and revise as necessary the application process for financial assistance, review and evaluate applications, and make other recommendations as necessary. The Committee may establish a subcommittee, consisting of up to five members of the Committee, to review grants to an applicant of up to $3,000.

Monies in the Fund shall be used to provide financial assistance to the service member or an applying family who meets the following requirements: 1) has been deceased, injured or wounded, or seriously ill after September 11, 2001; 2) has been deployed from a military base in Arizona; 3) has claimed Arizona as the service member's home of record; 4) has been a member of the Arizona National Guard at the time of deployment; or 5) if discharged from military service, has been discharged under honorable conditions.

Assistance from the Fund is based on financial need of up to $20,000 per family. Eligible assistance is as follows: 1) widows, widowers or dependent children of a deceased service member who was serving in a combat zone or in a zone where that person was receiving hazardous pay may apply for a stipend for up to six months of living expenses. Payments under this provision with respect to any deceased person are limited to $20,000; 2) immediate family members may apply for payment for costs of temporary residence near the medical facility where the service member or former service member is being treated. Payments are made monthly for as long as the person is in treatment; 3) immediate family members, service members, or former service members may also apply for living expenses or other appropriate expenses as determined by the Committee (A.R.S. § 41-608.04).

Beginning on December 31, 2007 through December 31, 2018, a tax credit is allowed for contributions to the Fund. The maximum total allowable tax credits from the Fund is $1,000,000 on a first-come, first-serve basis. The allowable tax credit is the lowest of the following amounts:

1) the total amount of contributions to the Fund; 2) $200 during the taxable year filed by the tax payer if they are filing as a single individual or head of household; 3) $400 of contributions during the taxable year by a married couple filing a joint return; 4) the taxpayer's tax liability for the taxable year (A.R.S. § 43-1086).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

Fund Bifurcation

1. Extends the Fund through December 31, 2026.

2. Bifurcates the Fund into the Post-9/11 Veterans Subaccount and the Pre-9/11 Veterans Subaccount.

3. Incorporates the Post-9/11 Veterans Subaccount's membership and responsibilities of the Advisory Committee and financial assistance requirements into current statute relating to the Fund.

4. Structures the Pre-9/11 Veteran's Subaccount's membership and responsibilities of the Advisory Committee and financial assistance requirements to mirror those of the Post-9/11 Veterans Subaccount's, with the exception that the service member of the applying family member must have been deceased, wounded or injured, or become seriously ill on or before September 11, 2001.

Contributions

5. Requires donors to denote if they want their contribution to be deposited fully in the Pre-9/11 Veterans Subaccount, fully in the Post-9/11 Veterans Subaccount, or divided evenly between the two subaccounts.

6. Divides, equally between the subaccounts, contributions to the Fund that do not have a designated subaccount.

7. Extends the time a taxpayer may receive tax credits for contributions to the subaccounts to December 31, 2026.

8. Redefines the total amount of tax credits to contributions to the Fund as contributions to one or both Subaccounts.

9. Transfers all unspent and unencumbered monies in the Fund to the Post-9/11 Veterans Subaccount on the effective date of this legislation.

Miscellaneous

10. Makes technical and conforming changes.

11. Becomes effective on the general effective date.

Amendments Adopted by Committee

· Requires donors to denote if they want their contribution to be deposited fully in the Pre-9/11 Veterans Subaccount, fully in the Post-9/11 Veterans Subaccount, or evenly between the two subaccounts.

Revisions

· Updates provisions to include amendment.