BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           AB 1706          Hearing Date:    5/10/2016
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          |Author:    |Chávez                                               |
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          |Version:   |3/8/2016    Amended                                  |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Arthur Terzakis                                      |
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          SUBJECT: Military fraud


            DIGEST:    This bill updates the provisions of the California  
          Stolen Valor Act to provide consistency with changes in federal  
          law resulting from a Supreme Court ruling. 

          ANALYSIS:
          
          Existing law:
          
          1)Requires that an officer forfeit office upon conviction of  
            designated crimes as specified in the Constitution and laws of  
            the State.  [Government Code Section 3000]

          2)Requires that an elected officer, as specified, forfeit his or  
            her office upon conviction of a crime pursuant to the federal  
            Stolen Valor Act of 2005 that involves a false claim of  
            receipt of a military decoration or medal described in that  
            act.  [Government Code Section 3003]

          3)Provides that a person who falsely represents himself or  
            herself as a veteran or ex-serviceman of any war in which the  
            United States was engaged, in connection with the soliciting  
            of aid or sale or attempted sale of property, is guilty of a  
            misdemeanor.  [Penal Code Section 532b(a)]  

          4)Provides that a person who falsely claims, or presents himself  
            or herself, to be a veteran or member of the Armed Forces of  







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            the United States, with the intent to defraud, is guilty of a  
            misdemeanor.  [Penal Code Section 532b(b)]

          5)Requires that a person who, orally, in writing, or by wearing  
            a military decoration, falsely represents himself or herself  
            to have been awarded a military decoration, with the intent to  
            defraud, is guilty of a misdemeanor.  If the person committing  
            the offense is a veteran of the Armed Forces of the United  
            States, this offense is an infraction or a misdemeanor.   
            [Penal Code Section 532b(c)]

          6)Deems a person who falsely represents himself or herself in a  
            manner as specified to be guilty of a misdemeanor or  
            infraction.  [Military and Veterans Code Section 1821] 
          
          Existing federal law states that whoever, with intent to obtain  
          money, property, or other tangible benefit, fraudulently holds  
          oneself out to be a recipient of a decoration or medal described  
          in subsection ? shall be fined under this title, imprisoned not  
          more than one year, or both.  [Title 18 United States Code  
          Section 704]

          This bill:

          1)Updates the California Stolen Valor Act to require a  
            conviction under the federal Stolen Valor Act of 2013 rather  
            than the 2005 version, which the U.S. Supreme Court ruled  
            unconstitutional.

          2)Clarifies the intent requirements for misdemeanors punishable  
            under the California Stolen Valor Act.

          3)Defines "tangible benefit" as financial remuneration, an  
            effect on the outcome of a criminal or civil court proceeding,  
            or any benefit relating to service in the military that is  
            provided by a federal, state, or local governmental entity for  
            purposes of the California Stolen Valor Act.

          4)Adds the California National Guard, the State Military  
            Reserve, the Naval Militia, the national guard of any other  
            state, or any other reserve component of the Armed Forces of  
            the United States to the list of military service branches  
            covered by the California Stolen Valor Act.

          5)Adds to the list of misdemeanors punishable under the  








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            California Stolen Valor Act as any person who:

             a)   Forges documentation reflecting the awarding of any  
               military decoration that he or she has not received for the  
               purposes of obtaining money, property, or other tangible  
               benefit;

             b)   Wears a uniform or military decoration authorized for  
               use by the members or veterans of those forces for the  
               purposes of obtaining money, property, or receiving a  
               tangible benefit;

             c)   Knowingly utilizes falsified military identification for  
               the purposes of obtaining money, property, or receiving a  
               tangible benefit;

             d)   Knowingly, with the intent to impersonate, for the  
               purposes of promoting a business, charity, or endeavor,  
               misrepresents himself or herself as a member or veteran of  
               the Armed Forces of the United States, the California  
               National Guard, the State Military Reserve, or the Naval  
               Militia by wearing the uniform or military decoration  
               authorized for use by the members or veterans of those  
               forces; and,

             e)   Knowingly, with the intent to gain an advantage for  
               employment purposes, misrepresents himself or herself as a  
               member or veteran of the Armed Forces of the United States,  
               the California National Guard, the State Military Reserve,  
               or the Naval Militia by wearing the uniform or military  
               decoration authorized for use by the members or veterans of  
               those forces.

          Background

          Purpose of AB 1706.  Currently, California requires that an  
          elected officer forfeit his/her office upon conviction of a  
          crime pursuant to either the federal Stolen Valor Act of 2005 or  
          the California Stolen Valor Act.  The federal Stolen Valor Act  
          was updated in 2013 after the Supreme Court ruled it was  
          unconstitutional because it criminalized conduct where the harm  
          was intangible.  (See United States v. Alvarez (2012) 132 S.Ct.  
          2537, 2556 [183 L.Ed.2d 574].)  

          This bill updates the California Stolen Valor Act by requiring a  








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          conviction pursuant to the federal Stolen Valor Act of 2013.   
          This bill also adds new misdemeanors to the California Stolen  
          Valor Act and changes the intent requirement for a conviction  
          under the Act to also mirror federal law.

          The author's office states, "It is important to create  
          conformity between state and federal law to ensure elected  
          officials are held accountable to be honest about their service  
          or lack thereof."

          Prior/Related Legislation
          
          AB 167 (Cook, Chapter 69, Statutes of 2011) expanded existing  
          provisions related to forfeiture of elected office to  
          additionally require that an elected officer, as specified,  
          forfeit office upon conviction of a crime involving a false  
          claim, with intent to defraud, that he or she is a veteran or a  
          member of the Armed Forces of the United States.  Also,  
          characterized these and related provisions, as specified, as the  
          "California Stolen Valor Act."

          AB 1829 (Cook, Chapter 366, Statutes of 2010) among other  
          things, increased the penalty from an infraction to a  
          misdemeanor for a person who, orally or in writing, or by  
          wearing a military decoration, falsely represents himself or  
          herself to have been awarded a military decoration, with the  
          intent to defraud.  
           
           AB 265 (Cook, Chapter 93, Statutes of 2009) required elected  
          state officials to forfeit their office upon the conviction of a  
          crime involving a false claim of receipt of any military  
          decoration or medal pursuant to the federal Stolen Valor Act of  
          2005.   

           SB 1482 (Correa, Chapter 118, Statutes of 2008) required a local  
          elected official to forfeit his or her office upon the  
          conviction of a crime that involves a false claim of receipt of  
          any military decoration or medal pursuant to the federal Stolen  
          Valor Act.  

          AB 282 (Cook, Chapter 360, Statutes of 2007) made it an  
          infraction for a person to falsely represent himself or herself,  
          verbally or in writing, to have been awarded a decoration or  
          medal from the Armed Forces of the United States, the California  
          National Guard, State Military Reserve, or Navel Militia; a  








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          service medal or badge awarded to the members of such forces; a  
          ribbon, button, or rosette of such a badge, decoration or medal;  
          or, a colorable imitation of such item, with the intent to  
          defraud.

          AB 787 (DeVore, Chapter 457, Statutes of 2006) provided that a  
          person who falsely claims, represents or presents himself or  
          herself to be a veteran or member of the Armed Forces of the  
          United States, with the intent to defraud, is guilty of a  
          misdemeanor.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          Yes


            SUPPORT:  

          American G.I. Forum of California (co-source)
          American Legion-Department of California
          AMVETS-Department of California (co-source)
          California Association of County veterans Service Officers
          California State Commanders Veterans Council
          Military Officers Association of America, California Council of  
          Chapters
          VFW-Department of California
          Vietnam Veterans of America-California State Council

          OPPOSITION:

          None received
          
          DUAL REFERRAL:  Senate Veterans Affairs Committee