(a) This section shall be known and may be cited as the "Military Family Relief Check-off Program".

(b) There is created the Military Family Relief Check-off Program.

(c) The Revenue Division of the Department of Finance and Administration shall include on the Arkansas individual income tax forms, including those forms on which a husband and wife file separately on the same form, and on all corporate income tax forms, a designation as follows:

(1) If you are entitled to a refund, check if you wish to designate [] $1, [] $5, [] $10, [] $20, [] $________ (write in amount), or [] all refund due, of your tax refund for the Military Family Relief Check-off Program. Your refund will be reduced by this amount.

(2) If you owe an additional amount, check if you wish to contribute an additional [] $1, [] $5, [] $10, [] $20, [] $________ (write in amount) for the Military Family Relief Check-off Program. If you wish to make a contribution to the program, you must enclose a separate check for the amount of your contribution, payable to the "Military Family Relief Check-off Program."

(d) The Director of the Department of Finance and Administration may:

(1) Accept any gifts, grants, bequests, devises, and donations made to the State of Arkansas for the purpose of funding the Military Family Relief Check-off Program; and

(2) Deposit any gifts, grants, bequests, devises, and donations received under this section into the Military Family Relief Trust Fund.

(e) The Department of Finance and Administration shall quarterly certify to the Treasurer of State the amount contributed to the Military Family Relief Trust Fund through the state income tax check-off created under this subchapter, and the Treasurer of State shall deduct from the Individual Income Tax Withholding Fund the amount certified.

(f) The director shall promulgate rules and all income tax forms, returns, and schedules necessary to carry out the revenue-producing provisions of this section.

(g) The gifts, grants, bequests, devises, and donations made under this section shall be used together with any other funds appropriated for the Military Family Relief Trust Fund.

(h) The Adjutant General shall promulgate all rules necessary for implementing the grant program created under this section for the Military Family Relief Trust Fund.

(i)

(1) The Adjutant General or his or her designee shall use funds from the Military Family Relief Trust Fund to establish a grant program to assist the families of members of the National Guard and the reserve components of the armed forces.

(2)

(A) The grant program created under this section shall assist members and families of members of the Arkansas National Guard and the reserve components of the armed forces.

(B) The eligibility criteria for receiving grants under the grant program shall include, but not be limited to, the following:

(i) The need of the family;

(ii) The pay grade of the member of the National Guard and reserve components of the armed forces;

(iii) The difference between the member's military salary and civilian salary; or

(iv) Any other factors that establish the family's financial hardship.

(j)

(1) The check-off for the Military Family Relief Check-off Program on state income tax returns shall be effective for tax years beginning on or after January 1, 2005.

(2) The provisions of this section allowing the director to accept gifts, grants, bequests, devises, and donations shall be effective on August 1, 2005.