BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1413
                                                                  Page  1

          Date of Hearing:   June 26, 2012

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
                SB 1413 (Negrete-McCleod) - As Amended:  June 19, 2012

           SENATE VOTE  :   38-0
           
          SUBJECT  :   Adjutant General: support programs

           SUMMARY  :   This bill would authorize the Adjutant General to 
          establish specified support programs for the benefit of the 
          Military Department, its components, and its soldiers, airmen, 
          cadets, and their family members and to establish, construct, or 
          acquire facilities or equipment for these programs. 
          Specifically,  this bill  :  

             1.   Repeals the authority of the Adjutant General to 
               establish rules and regulations for the provision of 
               morale, welfare, and recreational activities for members of 
               the National Guard, in accordance with federal military 
               regulations.

             2.   Authorizes the Adjutant General to adopt specified rules 
               and regulations for support programs for the Military 
               Department. 

             3.   Authorizes the Adjutant General and the Military 
               Department to solicit and accept funds or other donations, 
               and requires these funds to be deposited in the California 
               Military Department Morale and Welfare Support Fund, 
               established by this bill.

             4.   Requires the money in the fund to be available, upon 
               appropriation by the Legislature, for the establishment of 
               the support programs and for the establishment, 
               construction, or acquisition of facilities or equipment for 
               these programs. 

             5.   Requires the Adjutant General to conduct an internal 
               audit of this fund and to report the findings of the audit 
               to the Department of Finance, as provided.  

           EXISTING LAW  : Military and Veterans Code section 412.5 
          authorizes Adjutant General to:








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             1.   Establish rules and regulations in accordance with Army, 
               Air Force, and National Guard Bureau regulations for the 
               provision of morale, welfare, and recreational activities 
               that benefit soldiers and airmen of the National Guard.

             2.   Provide other services, in accordance with the 
               regulations of the Department of the Army, the Department 
               of the Air Force, and the National Guard Bureau, governing 
               morale, welfare, and recreation fund activities.

             3.   Adopt rules and regulations for the establishment and 
               deposit of military post, welfare, or similar unit, or 
               organizational funds.

             4.   Accept funds or other donations for the benefit of the 
               Military Department.


           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee:

             1.   Unknown, potentially significant costs for program, but 
               dependent upon the level of donations received (Private 
               Funds).

             2.   Minor costs for department rules/regulations, annual 
               report, and outreach (General Fund).

           COMMENTS  :   According to the author, "The federal regulations 
          are designed for large military installations and do not fit the 
          environment of the California National Guard with its more than 
          100 small armories located across the state."  In addition, the 
          current statute allows for MWR funds to be used for the benefit 
          of soldiers and airmen of the Guard, which might not include 
          those members of the Military Department on State Active Duty 
          status or in the State Military Reserve (SMR).

          In the approximately eighteen 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.  These 
          allegations raised serious concerns about the integrity of the 
          Department.  Some of these allegations involved personnel at the 








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          highest levels of the Department.  A new Adjutant General has 
          come aboard at the Department and instituted many changes and 
          reforms with some of his top goals to restore any damage 
          sustained to the reputation of the Department and redress 
          previous missteps to the extent possible.  

          Caring for the morale, welfare, and regulation of soldiers and 
          their families is an important and traditional function.  
          Soldiers and their families are called upon to make extreme 
          sacrifices.  Allowing the Department to seek private donations 
          to fund morale, welfare and recreation activities, particularly 
          in an austere funding climate is reasonable. However, morale, 
          welfare, and recreation is already a very broad spectrum of 
          activities, the bill seeks an even less defined category of 
          "support" activities.

          Policy Concern: Is it prudent to allow the Department to create 
          a fund for any kind of support activities and to remove the 
          regulatory controls imposed by the federal government?  It is 
          the case that the legislature must still appropriate funds 
          before they can be spent, and that the Department has agreed to 
          audit itself (and according to the author the employees 
          performing the audit are required to report improprieties 
          outside the chain of command).  

          Suggestions for amendment:  
          
             1.   The author may wish to consider amendments to more 
               clearly define the permissible purposes for which funds may 
               be used.

             2.   Consider retaining federal regulatory applicability.

             3.   The author may wish to consider an audit by a third 
               party entity, rather than an internal audit.



           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 








                                                                 SB 1413
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          None on file.
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550