Senate Engrossed
veterans' donations fund; annual transfer
State of Arizona
Senate
Fifty-seventh Legislature
First Regular Session
2025
SENATE BILL 1704
An Act
amending sections 41-608 and 41-608.01, Arizona Revised Statutes; relating to the department of veterans' services.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-608, Arizona Revised Statutes, is amended to read:
START_STATUTE41-608. Veterans' donations fund; transfer; grants
A. The veterans' donations fund is established consisting of monies, gifts and contributions donated to the department and monies deposited pursuant to sections 28-2414, 28-2428, 28-2431, 28-2447, 28-2454, 28-2470.10, 28-2473, 28-2474, 28-2475, 28-2476 and 43-620. The department shall administer the fund. Monies in the fund are continuously appropriated. The monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall annually transfer fifteen percent of all monies, gifts and contributions donated to the department that are deposited in the veterans' donations fund pursuant to this section to the subaccount established pursuant to section 41-608.01 in the state homes for veterans trust fund. The department shall adopt rules or policies for grants of less than $5,000 that encourage as much competition as practicable.
B. The director or the director's designee may solicit and receive donations, including in-kind donations, from the public for veterans. The director shall deposit, pursuant to sections 35-146 and 35-147, the monetary donations in the veterans' donations fund. Monies in the fund are subject to state auditing procedures. Except for monies deposited pursuant to sections 28-2431 and 28-2447, the donations may be used for the benefit of the veterans within this state as grants, subject to chapter 24 of this title, if applicable.
C. The director shall establish a separate subaccount in the veterans' donations fund for the deposit of monies received pursuant to section 28-2431, subsection C. The monies in the subaccount shall be used for the construction and maintenance of the enduring freedom memorial authorized pursuant to section 41-1363 for placement in Wesley Bolin Plaza.
D. The director shall establish a separate subaccount in the veterans' donations fund for the deposit of monies received pursuant to section 28-2447, subsection F. The monies in the subaccount shall be used for the benefit of women veterans in this state, including providing shelter to homeless women veterans as grants, subject to chapter 24 of this title, if applicable.
E. The director shall establish a separate subaccount in the veterans' donations fund for the deposit of monies received pursuant to section 28-2454, subsection C. The first $32,000 in the subaccount shall be reimbursed to the person that provides the $32,000 pursuant to section 28-2454, subsection A. The director shall annually allocate monies from the subaccount to a foundation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that is the nation's oldest and largest provider of need-based scholarships to children of United States military members. The foundation must:
1. Have been in existence for at least fifty-two years.
2. Have provided more than thirty-three thousand scholarships that are valued at almost $90,000,000.
3. Have a mission that includes honoring marines and educating their children.
4. Award scholarship monies to children of marines and navy corpsmen who were killed or wounded in combat or who have demonstrated financial need.
F. The director shall establish a separate subaccount in the veterans' donations fund for the deposit of monies received pursuant to section 28-2470.10, subsection C. The first $32,000 in the subaccount shall be reimbursed to the person that provides the $32,000 pursuant to section 28-2470.10, subsection A. The director shall annually allocate monies from the subaccount to a foundation that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes. The foundation must:
1. Have been in existence for at least twenty years.
2. Have a mission that includes providing college scholarships to:
(a) The sons and daughters of those who have served the United States honorably as soldiers in the United States army.
(b) The spouses of enlisted soldiers on active duty in the United States army.
3. Envision increasing its fundraising and visibility to encourage more applicants to apply for scholarships and to provide larger scholarships to an increasing number of deserving applicants to both:
(a) Reward army families for the sacrifices that army soldiers make every day to serve their nation.
(b) Help the spouses and children of army soldiers become leaders in society.
4. Award scholarship monies to:
(a) Children of former United States army members who were killed while serving in the United States army or who received an honorable discharge or medical discharge.
(b) Children of united states army members in good standing serving in regular active duty, active duty reserve or active duty national guard United States army members in good standing.
(c) Spouses of enlistedunited states army members in good standing serving in regular active duty, active duty reserve or active duty national guard United States army members in good standing.
G. The director shall inventory and account for the use of any tangible personal property donated to the fund.
h. the department may use up to $150,000 from the veterans' donations fund each fiscal year to administer this section. In addition to any other full-time equivalent positions authorized by law, the department is authorized two full-time equivalent positions each fiscal year to administer this section.
H. I. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. END_STATUTE
Sec. 2. Section 41-608.01, Arizona Revised Statutes, is amended to read:
START_STATUTE41-608.01. State homes for veterans trust fund; purpose; subaccount
A. The state homes for veterans trust fund is established. The director shall administer the fund for the sole purpose of operating and maintaining state-operated nursing and domiciliary homes for Arizona veterans.
B. The fund consists of monies deposited by the director from monies generated by operating the Arizona veterans' homes and monies deposited pursuant to section 41-603.01.
c. The director shall establish a separate subaccount in the fund for monies deposited pursuant to section 41-608, subsection A. The monies in the subaccount shall be used for any of the following purposes:
1. to support the various needs of the veterans residing at the nursing and domiciliary homes.
2. to Purchase any necessary equipment for the NURSING AND DOMICILIARY HOMES.
3. For any necessary IMPROVEMENTS for the nursing and DOMICILIARY homes.
4. for Any ongoing MAINTENANCE required for the NURSING AND DOMICILIARY HOMES.
C. d. Monies in the fund are subject to annual appropriation by the legislature. The fund is exempt from the provisions of section 35-190 relating to lapsing of appropriations. Any monies in the fund remaining unexpended or unencumbered at the end of the fiscal year do not revert to the state general fund.
D. e. On notice from the director, the state treasurer shall invest and divest monies in the fund and subaccount as provided by section 35-313, and monies earned from investment shall be credited to the fund and subaccount. END_STATUTE