BILL NUMBER: AB 563	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 25, 2009

   An act to amend Section 18707 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 563, as introduced, Cook. Personal income taxes: contributions:
California Military Family Relief Fund.
   The Personal Income Tax Law allows taxpayers, until January 1,
2015, to designate on their tax returns that a specified amount in
excess of their tax liability be contributed to the California
Military Family Relief Fund to provide financial aid grants to
eligible reserve members of the Armed Forces of the United States who
are California residents and requires all moneys transferred to the
fund to be allocated as specified.
   This bill would make technical, nonsubstantive changes to those
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 18707 of the Revenue and Taxation Code is
amended to read:
   18707.  All moneys transferred to the California Military Family
Relief Fund, upon appropriation by the Legislature, shall be
allocated as follows:
   (a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties  under
  pursuant to  this article.
   (b) (1) (A) To the Military Department for the establishment of
financial aid grants to reserve members of the Armed Forces of the
United States who are California residents,  and  who have
been called to active duty. Moneys transferred to the California
Military Family Relief Fund before January 1, 2009, shall be reserved
for the California National Guard. Grants to the members of the
California National Guard shall first be distributed from moneys
transferred to the California Military Family Relief Fund before
January 1, 2009, and only after these moneys are exhausted shall
these grants be awarded from moneys transferred to the California
Military Family Relief Fund on and after January 1, 2009. The
Military Department shall establish eligibility criteria for the
grants.
   (B) On or after January 1, 2009, the California National Guard may
make moneys transferred to the California Military Family Relief
Fund before January 1, 2009, up to one hundred thousand dollars
($100,000), available for distribution to qualified members of the
reserve component, excluding members of the California National
Guard, until adequate moneys are available to ensure that all
approved grants are funded. These distributed moneys shall be repaid
to the California National Guard with moneys transferred to the
California Military Family Relief Fund on and after January 1, 2009.
   (2) It is the intent of the Legislature that every qualified
reserve member, regardless of branch, in need of emergency assistance
be able to receive a grant. In order to ensure that the grants
awarded pursuant to this article are administered objectively, the
awarding of grants from the California Military Family Relief Fund
shall be governed by a Memorandum of Agreement, developed by a
working group comprised of representatives from at least three
reserve components  that describe   ,  
that describes  the procedures and requirements for
participation in the grant program. All organizations participating
in the grant program must be signatories of the Memorandum of
Agreement.
   (3) In addition to criteria established by the Military Department
pursuant to paragraph (1), reserve members of the Armed Forces of
the United States who are California residents shall show proof of
all of the following to be eligible to receive a grant:
   (A) Membership in the Armed Forces of the United States.
   (B) Residency in California.
   (C) Deployment to active duty for at least 60 consecutive days.
   (D) One of the following:
   (i) The military salary of the member, combined with any ongoing
partial receipt of civilian salary, has decreased by 10 percent or
more from the member's civilian salary, or the household income of
the member's family has decreased by 10 percent or more from the
member's household income prior to deployment.
   (ii) The member, within six months of returning from active duty,
has experienced a 10-percent loss, or greater, in income, compared to
predeployment income, as a direct result of deployment.
   (4) Grants awarded pursuant to this article may only be used for
any of the following: food, housing, child care, utilities, medical
services, medical prescriptions, insurance, and vehicle-related
payments.
   (5) Reserve members of the Armed Forces of the United States who
are California residents  may   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.
   (6) Reserve members of the Armed Forces of the United States who
are awarded grants pursuant to this article may be required to
receive counseling, within a specified time period, as a condition of
the grants.