AZ HB2198

Amends Arizona Revised Statutes section 41-608.04 to modify the Military Family Relief Fund, which is established through December 31, 2013, and consists of private donations, grants, and bequests administered by the department.

Establishes a 13-member advisory committee (including the director) composed of military widows/widowers, veterans with service-connected disabilities, military retirees, national guard commanders, and senior enlisted personnel to determine appropriate uses of fund monies.

Allows financial assistance up to $10,000 per family for eligible service members and their families, including stipends for living expenses of deceased service members' dependents, costs for temporary residence near medical facilities, and other living or appropriate expenses as determined by the committee.

Permits the director to allocate up to 5% of donations for fund administration, including hiring an employee to process applications and support the committee.

Authorizes the advisory committee through December 31, 2011 to award up to $20,000 to families if all committee members agree to recommend approval, and requires annual independent audits of the fund with copies submitted to the auditor general.