BILL NUMBER: SB 1193	CHAPTERED  09/16/04

	CHAPTER  547
	FILED WITH SECRETARY OF STATE  SEPTEMBER 16, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 16, 2004
	PASSED THE SENATE  AUGUST 17, 2004
	PASSED THE ASSEMBLY  AUGUST 12, 2004
	AMENDED IN ASSEMBLY  JUNE 29, 2004
	AMENDED IN ASSEMBLY  JUNE 21, 2004
	AMENDED IN SENATE  MAY 13, 2004
	AMENDED IN SENATE  APRIL 20, 2004
	AMENDED IN SENATE  APRIL 12, 2004

INTRODUCED BY   Senator Soto

                        FEBRUARY 9, 2004

   An act to add Chapter 3.5 (commencing with Section 850) to
Division 4 of the Military and Veterans Code, and to add Section
17132.4 to the Revenue and Taxation Code, relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1193, Soto.  Military service:  California National Guard
Surviving Spouses and Children Relief Act of 2004.
   Existing law provides certain protection for members of the
National Guard and reservists called to active, duty, as specified,
during the period of military service, with respect to, among other
things, court proceedings, contract obligations, rental agreements,
taxes or assessments, and health or medical insurance.
   This bill would require the state to pay a $10,000 death benefit
to the surviving spouse or designated beneficiary of any member of
the California National Guard, State Military Reserve, or Naval
Militia who dies or is killed after March 1, 2003, in the performance
of duty, as determined by the Military Department.
   The Personal Income Tax Law imposes a tax on an individual
taxpayer measured by the amount of the taxpayer's taxable income for
the taxable year, but excludes certain items of income from the
computation of tax.
   This bill would exclude certain death benefits payable to eligible
individuals from gross income of those individuals for taxable years
beginning on or after January 1, 2005.
   This bill would become operative upon an appropriation by the
Legislature for purposes of funding the payments of military
benefits, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The California National Guard, the State Military Reserve, and
Naval Militia are military organizations in California that serve
essential public safety purposes during periods of great danger,
routinely support local authorities in protecting the lives and
property of the people of the state during periods of natural
disaster and civil disturbance, and provide homeland security.
   (b) The California National Guard is routinely tasked by the
President to perform dangerous duties in armed conflicts, contingency
operations, mobilizations, war, and other emergencies of national
significance.
   (c) The families of the members of the California National Guard,
State Military Reserve, and Naval Militia play a primary role in
maintaining the morale and welfare of these organizations and are
essential in recruitment and retention of personnel to serve and
continue serving.
   (d) The families of the members of the California National Guard,
State Military Reserve, and Naval Militia endure extraordinary
hardships when the member is called to duty by the Governor or the
President, and also suffer irreparable harm when the member dies or
is killed in the performance of duty.
   (e) The Legislature finds and declares that providing relief to
surviving spouses and orphans of members of the California National
Guard, State Military Reserve, and Naval Militia who die or are
killed in the performance of duty furthers a necessary public
purpose.
  SEC. 2.  Chapter 3.5 (commencing with Section 850) is added to
Division 4 of the Military and Veterans Code, to read:

      CHAPTER 3.5.  CALIFORNIA NATIONAL GUARD SURVIVING SPOUSES AND
CHILDREN RELIEF ACT OF 2004

   850.  (a) The state shall pay a ten thousand dollar ($10,000)
death benefit to the surviving spouse of, or a beneficiary designated
by, any member of the California National Guard, State Military
Reserve, or Naval Militia who dies or is killed after March 1, 2003,
in the performance of duty.
   (b) The Military Department shall determine if the death occurred
in the performance of the member's duty, and shall issue a
certificate of benefit eligibility under this section within 20 days
of application by the surviving spouse or a designated beneficiary.
   (c) The state shall pay the death benefit within 10 days of the
receipt of the certificate of benefit eligibility from the surviving
spouse or a beneficiary designated by the service member.
   851.  This chapter shall become operative upon the operative date
of an appropriation by the Legislature for the purpose of funding the
payments of military benefits, as required by this chapter.
  SEC. 3.  Section 17132.4 is added to the Revenue and Taxation Code,
to read:
   17132.4.  (a) For taxable years beginning on or after January 1,
2005, gross income does not include the death benefits received by an
eligible individual.
   (b) For purposes of this section:
   (1) "Death benefit" means the entire amount of the death benefit
payment made pursuant to Chapter 3.5 (commencing with Section 850) of
Division 4 of the Military and Veterans Code.
   (2) "Eligible individual" means the surviving spouse of, or a
beneficiary designated by, any member of the California National
Guard, State Military Reserve, or Naval Militia who dies or is killed
in the performance of duty, as provided in Section 850 of the
Military and Veterans Code.