HB 874
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 874 (Delegate Cox)
Health and Government Operations
Maryland Veterans Trust Fund – CAM for Veterans Grant Program –
Established (David Perez Military Heroes Act (End 22 a Day))
This bill establishes the CAM for Veterans Grant Program to provide grants to veterans
suffering from post-traumatic stress disorder, anxiety, depression, or stress seeking relief
through and needing financial assistance to obtain complementary and alternative medical
treatments. The Maryland Veterans Trust within the Maryland Department of Veterans
Affairs (MDVA) must administer the program and expend money from the Maryland
Veterans Trust Fund to provide grants for the program. The Secretary of Veterans Affairs
must adopt regulations to implement the program, including application and approval
processes and eligibility standards.
Fiscal Summary
State Effect: General fund expenditures increase by $36,400 in FY 2022 for part-time
staff to administer the grant program; future years reflect annualization and ongoing costs.
Special fund expenditures from the Maryland Veterans Trust Fund increase by an
indeterminate amount beginning in FY 2022 to provide the required grants. Revenues are
not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 36,400 40,200 41,300 42,800 44,400
SF Expenditure - - - - -
Net Effect (-) (-) (-) (-) (-)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: Chapter 742 of 2009 established the Maryland Veterans Trust Fund, which
consists of gifts, donations, and grants received by MDVA. The fund also receives
(1) 10% of the money that remains in the State Lottery Fund from the proceeds of ticket
sales from instant ticket lottery machines by specified veterans’ organizations and
(2) designated fees from certain special registration license plates. Money in the fund may
be used to make grants and loans to veterans and their families and support public and
private programs that serve veterans in the State. Money in the fund may also be used to
invest in general obligations of the State or other securities and pay for the cost of
administering the fund. Money expended from the fund is supplemental to and not intended
to take the place of funding otherwise appropriated to MDVA. At the close of fiscal 2020,
the balance of the fund was approximately $161,000.
The Maryland Veterans Trust Fund provides nonemergency, temporary financial
assistance, primarily with rent/mortgage payments and utilities, by paying vendors directly
via invoice. All applicants for assistance from the fund must (1) be Maryland residents for
at least 24 months at the time of application; (2) be eligible for burial in a Maryland State
Veterans Cemetery; (3) have an honorable discharge or general discharge under honorable
conditions; and (4) have an income no greater than 200% of federal poverty guidelines.
Widows and widowers may apply if they have the discharge of the deceased veteran and a
certificate of death.
State Expenditures: MDVA advises that, in order to expand the use of the Maryland
Veterans Trust Fund to include the new CAM for Veterans Grant Program, establish
regulations, and provide additional grants, additional staffing is needed. Thus, general fund
expenditures increase by $36,378 in fiscal 2022, which accounts for the bill’s
October 1, 2021 effective date. This estimate reflects the cost of hiring one part-time
agency grants specialist to develop regulations and process applications for the new
program. It includes a salary, fringe benefits, one-time start-up costs, and ongoing
operating expenses.
Position 0.5
Salary and Fringe Benefits $31,042
Operating Expenses 5,336
Total FY 2022 Administrative Expenditures $36,378
Future year expenditures reflect a full salary with annual increases and employee turnover
and ongoing operating expenses.
This analysis assumes that general funds are used to fund the new part-time position. In the
event MDVA utilizes funds from the Maryland Veterans Trust Fund (which may be used
HB 874/ Page 2
to pay the costs of administering the fund), general fund expenditures are not required but
less special funding is available for grant awards.
Special fund expenditures from the Maryland Veterans Trust Fund increase by an
indeterminate amount beginning in fiscal 2022 to provide grants under the new program.
Actual expenditures cannot be reliably estimated at this time and depend on the number of
veterans seeking grants, the cost of complementary and alternative medical treatments, and
the eligibility standards established by MDVA. As noted above, the balance of the fund
was approximately $161,000 at the end of fiscal 2020.
Additional Comments: CAM means complementary and alternative medicine.
According to the National Alliance on Mental Illness, traditional medical and therapeutic
methods have improved over the years, but they often do not completely lessen or eliminate
symptoms of mental illness. As a result, many people use CAM to help with recovery,
including vitamin and mineral supplements, medical foods, mind and body treatments, and
equine therapy.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 656 (Senator Salling) - Budget and Taxation.
Information Source(s): National Alliance on Mental Illness; Department of Veterans
Affairs; Department of Legislative Services
Fiscal Note History: First Reader - February 23, 2021
an/jc
Analysis by: Thomas S. Elder Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 874/ Page 3
Statutes affected: Text - First - Maryland Veterans Trust Fund – CAM for Veterans Grant Program – Established (David Perez Military Heroes Act (End 22 a Day)): 9-913 State Government, 9-112 State Government, 9-914.2 State Government, 9-914.4 State Government, 9-914.4 State Government