BILL ANALYSIS                                                                                                                                                                                                    






                      SENATE COMMITTEE ON VETERANS AFFAIRS
                             JEFF DENHAM, CHAIRMAN
                                             


          Bill No:        AB 563
          Author:         Cook
          Version:        As amended May 4, 2009
          Hearing Date:   June 23, 2009
          Fiscal:         Yes
          Consultant:     Donald E. Wilson


                                 SUBJECT OF BILL  
          California Military Relief Fund  
           
                                   PROPOSED LAW  
          Makes the Military Department rather than the National  
          Guard the recipient of money received from the check off  
          box on state tax returns.  Also requires the Military  
          Department to set eligibility requirements for potential  
          recipients.

                           EXISTING LAW AND BACKGROUND  
             1.   Tax returns contain a check off box for the  
               California Military Relief Fund.  
             2.   This fund allows financial help to be given to  
               soldiers and their families who are in need of help.
             3.   The National Guard is responsible for setting the  
               parameters establishing those who are in need.
             4.   AB 3016 (Cook) of 2008 expanded eligibility for  
               this program to the military's reserve units.

                                     COMMENT  
             1.   The author has been notified of a potential problem  
               because of the Department of Defense's Joint Ethics  
               Regulations.  Since the National Guard is a military  
               unit and reserve units are military units, the guard  
               giving grants to reserve personnel could be construed  
               as improper gifts between military branches.
             2.   By making a non-profit responsible for the awards,  
               there could not be "gifts" transferring between  
               military branches.
             3.   This bill also addresses the potential problem of  
               having a federal military agency interacting with a  
               state entity.









             
                                     SUPPORT  
          American Legion, Department of CA
          AMVETS, Department of CA

                                      OPPOSE  
          None received





































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