BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2664
                                                                  Page  1

          Date of Hearing:   April 29, 2014

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                              Sharon Quirk-Silva, Chair
                  AB 2664 (Quirk-Silva) - As Amended:  April 1, 2014
           
          SUBJECT  :   California National Guard

           SUMMARY  :   Establishes a California National Guard Military  
          Family Relief Fund (the New Fund) within the existing California  
          Military Department Support Fund, and transfers money from the  
          California Military Family Relief Fund (the Old Fund) to the New  
          Fund.  Specifically,  this bill  :  

          1)Requires that the California Military Department Support Fund  
            shall include the New Fund a special fund as established  
            within the California Military Department Support Fund.

          2)Specifies that for accounting and recordkeeping purposes, the  
            California Military Department Support Fund shall be deemed to  
            be a single special fund, and any special funds therein shall  
            constitute and be deemed to be a separate account in the  
            California Military Department Support Fund. 

          3)Mandates that each account or fund shall be available for  
            expenditure only for the purposes as are now or may hereafter  
            be provided by law.

          4)Establishes the New Fund as an account within the California  
            Military Department Support Fund for the purpose of providing  
            financial aid grants to members of the California National  
            Guard who are California residents and who have been called to  
            active duty.

          5)Requires the Military Department to establish eligibility  
            criteria for the grants by January 1, 2015. 

          6)Directs that the grant criteria shall include, but not be  
            limited to, a demonstration of financial need.

          7)Requires that in addition to grant criteria established by the  
            Military Department members of the California National Guard  
            must show proof of all of the following to be eligible to  
            receive a grant:









                                                                  AB 2664
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             a)   Current membership in the California National Guard.
             b)   Residency in California.
             c)   Deployment to active duty for at least 60 consecutive  
               days.

          8)Mandates that grants awarded may be used only for food,  
            housing, childcare, utilities, medical services, medical  
            prescriptions, insurance, and vehicle payments.

          9)Directs that California National Guard members shall not be  
            eligible to receive a grant if the member receives a punitive  
            discharge or an administrative discharge with service  
            characterized as under other than honorable conditions.

          10)Requires the Adjutant General to conduct annual audits of the  
            California Military Department Support Fund and the New Fund  
            and to report findings to the Department of Finance.

          11)Transfers on January 1, 2015, any and all moneys remaining in  
            the Old Fund to the New Fund.

          12)Directs that the moneys transferred shall continue to be  
            disbursed in accordance with the original intent of the  
            contributions made by taxpayers to the Old Fund.

           EXISTING LAW  : Authorizes the Adjutant General and the Military  
          Department to solicit and accept funds or other donations for  
          deposit in the Old Fund. Money in the Old Fund is available,  
          upon appropriation, for specified purposes relating to the  
          programs of the department.

          Former law, repealed by its own provisions, allowed taxpayers to  
          designate on their tax returns that a specified amount in excess  
          of their tax liability be transferred to the California Military  
          Family Relief Fund, established to accept contributions from  
          taxpayers and from other sources. Money in that fund, upon  
          appropriation, was required to be allocated to the Military  
          Department to provide financial aid grants to eligible members  
          of the California National Guard. The former law provided that,  
          notwithstanding repeal, any contribution amounts designated  
          prior to repeal would continue to be transferred and disbursed  
          in accordance with those repealed provisions.

          The State Treasury's Special Fund 8022, containing approximately  
          $1.2 million in donations to the Old Fund, will be abolished in  








                                                                  AB 2664
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          January 2015 and the monies will revert to the General Fund.

           FISCAL EFFECT  :   Unknown at this time.

           COMMENTS  :   Rather than revert to the General Fund, this bill  
          extends the time for disbursement of relief funds to National  
          Guard families in crisis arising out of active duty service.   
          Though deployments are generally decreasing, National Guard  
          members are still called to active duty for overseas deployment  
          and for other purposes.  Unfortunately these periods of active  
          duty too often result in a net income loss to the Guard member's  
          family.  In short, there is still a need for the money in the  
          Old Fund.  Finally, the continued availability of this relief  
          money, with the eligibility criteria specified, is in accord  
          with the donors' intent, as opposed to reversion of the funds to  
          the General Fund.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None. 

           Opposition 
           
          None.
           
          Analysis Prepared by  :    John Spangler/ V. A. / (916) 319-3550