BILL NUMBER: AB 563 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2009
AMENDED IN ASSEMBLY MAY 4, 2009
AMENDED IN ASSEMBLY APRIL 2, 2009
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 amended, 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, upon appropriation by the Legislature, to be allocated as
specified.
This bill would require moneys transferred to the fund, upon
appropriation by the Legislature and after allocations to the
Franchise Tax Board and the Controller, to be allocated to the state
Military Department for the establishment of financial aid grants
provided to California National Guard members and reserve
members of the Armed Forces of the United States ,
as specified. This bill would also require the awarding of
grants from the fund to be governed by a Memorandum of Agreement.
Vote: majority. Appropriation: no. Fiscal committee: yes.
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 pursuant to this
article.
(b) (1) (A) To the state
Military Department for the establishment of financial aid grants to
California National Guard members and 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 state 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. The
state Military Department shall establish eligibility criteria for
the grants.
(2) It is the intent of the Legislature that every qualified
California National Guard or 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
officers or members, or both, of a nonprofit organization selected by
the State Military Department, that describes the procedures and
requirements for participation in the grant program. A representative
with authority to bind the nonprofit organization selected by the
State Military Department must sign the Memorandum of Agreement.
(3) In addition to criteria established by the state Military
Department pursuant to paragraph (1), the California National
Guard members and 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 California National Guard or a reserve
component of 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.
(iii) The member was injured while serving on active duty and has
been discharged from federal active duty and is actively seeking
assistance through the United States Department of Veterans' Affairs
with regard to disability compensation benefits or treatment, or
both. Application for a cash grant under this section shall be
submitted within 18 months of being released from federal military
active duty, along with written substantiation demonstrating that the
member's current financial hardship is a direct result of a military
deployment and an injury sustained during the 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 California National
Guard members and reserve members of the Armed Forces of the
United States who are California residents 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.