BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 807
                                                                  Page  1


          SENATE THIRD READING
          SB 807 (Correa)
          As Amended  June 21, 2012
          Majority vote 

           SENATE VOTE  :38-0  
           
           VETERANS AFFAIRS    9-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Cook, Pan, Atkins, Block, |Ayes:|Fuentes, Harkey,          |
          |     |Gorell, Nielsen, V.       |     |Blumenfield, Bradford,    |
          |     |Manuel Pérez, Williams,   |     |Charles Calderon, Campos, |
          |     |Yamada                    |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Hall, Hill, Lara,         |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Specifies that the state active duty force consists of 
          service members in active state service when ordered by the 
          Governor.  This bill would specify and revise conditions for 
          state active duty for service members, as provided, and would 
          authorize the Adjutant General to promulgate regulations in 
          conformity with these provisions.
          Specifically,  this bill  :  

          1)States that the state active duty force consists of service 
            members in active state military service when ordered by the 
            Governor in accordance with the Military and Veterans Code.

          2)Requires an order to state active duty for assignments of less 
            than six years to be based on using the most qualified service 
            member for the assignment. 

          3)Mandates that a service member's orders shall expire annually 
            unless renewed or the service member is separated for cause.

          4)Provides that a service member ordered to state active duty in 
            accordance with this section who remains on state active duty 
            for a cumulative total of six years shall be eligible for the 
            career state active duty system and may remain on state active 
            duty until the service member reaches 60 years of age or is 








                                                                  SB 807
                                                                  Page  2


            separated for cause.  At 60 years of age, a service member's 
            orders shall be temporary and may be renewed annually.

          5)Mandates that when a service member reaches 64 years of age, 
            or when federal recognition of his or her grade or rank is 
            withdrawn, whichever occurs later, the service member shall be 
            retired from state active duty.

          6)Requires that a new service member ordered to state active 
            duty on or after January 1, 2013, with the Military Department 
            (department) pursuant to this section shall be a current 
            member of the California National Guard, retired or otherwise 
            honorably separated from federal active military or California 
            National Guard service with current membership in the State 
            Military Reserve, or be a current member of the State Military 
            Reserve with a minimum of two years of state service.  Service 
            members on state active duty who retire federally from the 
            California National Guard shall be automatically assessed into 
            the State Military Reserve.
          7)Directs that a commissioned officer on state active duty 
            assigned to a general officer position who, previous to that 
            duty, held a state active duty position at a lower grade may 
            revert to the grade last held upon vacation of the general 
            officer position, if a position is available.

          8)Abolishes a position and assigns duties elsewhere, 
            notwithstanding any other law, a service member who is on 
            state active duty may be relieved from state active duty if 
            the Adjutant General, acting in good faith and on behalf of 
            the Governor,.

          9)Directs the Adjutant General, under the authority of the 
            Governor as Commander in Chief, to promulgate regulations in 
            conformity with this section.

          10)Requires the Governor to direct the Adjutant General to make 
            rules and regulations in conformity with this code which shall 
            conform as nearly as practicable to those governing the United 
            States Army, United States Air Force Force, and United States 
            Navy. 

          11)Renames some of the offices within the Military Department.  
            The office of the Adjutant General consists of one officer of 
            the rank of lieutenant general who is the Adjutant General, 








                                                                  SB 807
                                                                  Page  3


            one officer of the rank of brigadier general who is the Deputy 
            Adjutant General, one officer who may be of the rank of 
            brigadier general who is the Assistant Adjutant General, Army 
            Division, one officer who may be of the rank of brigadier 
            general who is the Assistant  Adjutant General, Air Division, 
            one officer who may be of the rank of brigadier general who is 
            the Chief of Staff and Director of the Joint Staff.

          12)Requires the Governor to appoint the Adjutant General on 
            State Active Duty, in the Grade of Lieutenant General.

          13)Provides that the Adjutant General will be paid and receive 
            benefits in accordance with Military and Veterans Code Section 
            320.

          14)States that the Adjutant General may designate an officer to 
            perform his or her duties in the event the Adjutant General is 
            absent or unable to perform the same.

          15)Repeals Military and Veterans Code Section 167 which 
            contained language which has been reformed by this bill and 
            incorporated into other sections of the Military and  Veterans 
            Code.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill creates no additional costs for the state 
          or the Military Department. The Military Department anticipates 
          that in the long-run the bill will make the full-time state 
          military force more efficient, and therefore more cost 
          effective.

           COMMENTS  :  In June of 2006, the Bureau of State Audits released 
          a report entitled, "Military Department:  It Has Had Problems 
          With Inadequate Personnel Management and Improper Organizational 
          Structure and Has Not Met Recruiting and Facility Maintenance 
          Requirements."  Among other findings, the report concluded with 
          regard to the department that:

          1)It has not effectively reviewed its state active duty 
            positions, and as a result may be paying more for some 
            positions than if they were converted to state civil service 
            or federal position classifications.

          2)It has convened a panel to review the propriety of its 210 








                                                                  SB 807
                                                                  Page  4


            state active duty positions and estimates it will take three 
            to five years to implement the panel's recommendations.

          3)It did not follow its regulations when it temporarily 
            appointed many state active duty members to positions that do 
            not appear to be temporary, failed to advertise some vacant 
            positions as required, and inappropriately granted an 
            indefinite appointment to one state active duty member after 
            he reached the mandatory retirement age.

          In the approximately 18 months past there have been a 
          substantial number of allegations of misconduct at the 
          department, allegations raised in multiple venues, including via 
          the press, to legislators and staff, through formal complaints, 
          and through whistleblower allegations, among others.  Some of 
          these allegations concerned the use of the State Active Duty 
          (SAD) program. 

          The bill is intended to codify ambiguities concerning the SAD 
          program and alter some aspects of it which have been 
          controversial, including some aspects noted in the report by the 
          Bureau of State Audits.  

           Status of SAD members as military  :  This bill clarifies that 
          there is a status known as SAD.  To the extent that there is any 
          ambiguity as to whether SAD members are military (and not, for 
          example, civil service employees), this bill resolves that 
          ambiguity in favor of military status.

           SAD members must be competitively selected  :  Servicemembers 
          ordered to SAD will be selected using a military competitive 
          selection process.  This responds to allegations that 
          servicemembers have been placed on SAD status without being 
          qualified or in otherwise improper fashion.

           SAD "tenure" system reform  :  Under current law, servicemembers 
          on "permanent" active duty with the office of the adjutant 
          general generally may remain on active duty until age 60.  One 
          concern with the present system is that it does not discuss 
          whether a servicemember may be removed for cause.  The bill 
          contains a specific allowance for career state active duty (the 
          equivalent under the bill of the present tenure/permanent SAD 
          system) servicemembers to be removed for cause.  The bill also 
          contains provisions (discussed more fully below) for those on 








                                                                  SB 807
                                                                  Page  5


          career SAD to be removed in the event of a reduction in force.

           Eligibility for SAD  :  To address concerns that SAD members have 
          not always been held to minimum military experience 
          qualifications, the bill proposes certain eligibility 
          requirements.  In order to be eligible for SAD, a servicemember 
          must be a current member of the California National Guard, 
          retired or otherwise honorably separated from federal active 
          military or California National Guard service with current 
          membership in the State Military Reserve, or be a current member 
          of the State Military Reserve with a minimum of two years of 
          service. 

          Current Guard, retired, or honorably service separated personnel 
          will have completed required basic military training at some 
          point in their military careers, so their level of military 
          training is of minimal concern.  Primary allegations and 
          concerns have arisen in terms of using the State Military 
          Reserve as a conduit to bring people onto SAD who have had no 
          military training.  



          According to the author the bill will prevent such practices 
          because State Military Reserve personnel receive a minimum 
          amount of military training:

               The Basic Orientation Course is 4 days and is 
               required for everyone within two years.  It 
               takes the place of Basic Training, and has some 
               of the same course content, without land 
               navigation and weapons training.

               Then there are scaled down versions of BNCOC 
               (Basic NCO Course), ANCOC
               (Advanced NCO Course), and SGM Course.  All are 
               intensive over one or more
               weekends at Camp Parks?. 

               New Officers have to graduate from OCS, which is 
               a 12 month course that
               requires at least 1000 hours of work. ?

          While there are minimum training standards for SMR personnel, 








                                                                  SB 807
                                                                  Page  6


          these do not seem equivalent to the training completed in the 
          traditional service components of the National Guard.  For 
          example, Regular Army enlisted personnel must attend a nine week 
          basic training course and then a follow on Advanced Individual 
          Training of varying length.  The total length for an army 
          infantry soldier is approximately 14 weeks.  The bill does 
          provide for a two year minimum SMR service requirement, so the 
          SMR cannot easily be used as a quick end-around minimum military 
          experience requirements.

           Reductions in force/Abolishment of position  :  Without regard to 
          whether an SAD member has attained permanent/career status, the 
          bill provides for reductions in force of such members.  
          "Notwithstanding any other law, a service member who is on state 
          active duty may be relieved from state active duty if the 
          Adjutant General, acting in good faith and on behalf of the 
          Governor, abolishes a position." Also, in the event of a 
          reduction in force or abolishment of a position, the department 
          will attempt to place the servicemember in a job for which the 
          servicemember is qualified.  This latter provision is similar to 
          some protections offered to civil service employees.

           Regulations for SAD  : The statute mandates that, pursuant to an 
          order from the Governor, SAD regulations must conform as nearly 
          as possible to those applicable to active duty military.  As 
          stated by the author, "This section applies not only to the 
          regulations that govern of the SAD force, but also those 
          regulations that apply to rest of the Department's activities 
          and operations.  This is necessary to ensure that the Department 
          uses Department of Defense rules and regulations, which 
          represent best business practices for managing a military force, 
          whenever possible."  The clear directive in the bill removes 
          permissive language in the existing statutes.

           Adjutant General as regular SAD member  :  The bill amends 
          Military and Veterans Code, Section164.1 to clarify that the 
          Adjutant General serves on SAD and shall receive the same pay 
          and benefits pursuant to Section 320, as all other SAD members.  
          This resolves any ambiguities concerning the pay and benefits to 
          which the Adjutant General is entitled.

           Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550 
                                                                FN: 0004813









                                                                  SB 807
                                                                  Page  7