BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
AB 563 - Cook
Amended: June 30, 2009
Hearing: July 8, 2009 Fiscal: Yes
SUMMARY: Deletes the Requirement that a Memorandum of
Agreement Allocate Grants from the California
Military Family Relief Fund; Expands Grant
Eligibility; Makes Technical Changes
EXISTING LAW allows taxpayers to contribute (not tax
liabilities) to one or more of the 11 voluntary
contribution funds listed on the state personal income tax
return.
Each voluntary contribution fund must meet a minimum
annual contribution of $250,000. The minimum contribution
amount does not apply to the California Seniors Special
Fund, the California Firefighters Memorial Fund, and the
California Peace Officer Foundation Memorial Fund. This
minimum contribution amount is adjusted annually for
inflation for all voluntary contribution funds, except for
those referenced above, and the California Fund for Senior
Citizens. Except for the California Seniors Special Fund,
each voluntary contribution fund has a sunset date.
EXISTING LAW authorizes the California Military Family
Relief Fund, created in 2004, and allocates money generated
by tax check-offs to the Military Department, which then
makes grants to California residents who are members of the
California National Guard called to active duty (SB 1162,
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Machado). California National Guard members receiving a
punitive discharge or an administrative discharge under
conditions other than honorable are not eligible for
grants. Grants may be used for food, housing, child care,
utilities, medical services, medical prescriptions,
insurance, and vehicle payments. The Military Department
established criteria for the grants; however, state law
requires proof of California residency, membership in the
National Guard, and deployment to active duty for at least
100 days. Initially, a grantee's military salary must
have decreased by 30% or more from their civilian salary to
be eligible; however, the Legislature changed eligibility
for the grant program if the military salary, combined with
any ongoing partial receipt of civilian salary, has
decreased by 10 percent or more from the member's civilian
salary (AB 2085, Parra, 2006). Last year, the Legislature
extended the program to 2015 as long as it reaches its
donation thresholds, and expanded eligibility to all
reserve members of the Armed Forces (AB 3016, Cook). The
fund has met the contribution thresholds each year in which
they applied.
EXISTING LAW details allocation of funds from the
California Military Family Relief Fund. The Legislature
shall appropriate moneys from the fund:
To the Controller and FTB to administer
the program
To the Military Department for financial
aid grants to California residents who are
members or reserves of the Armed Forces of the
United States according to a schedule.
EXISTING LAW requires a Memorandum of Agreement to
govern grant allocations to eligible persons.
THIS BILL deletes the funding schedule, and the
requirement for the Memorandum of Agreement to govern grant
allocations to eligible persons. The Military Department
will instead allocate funds according to its criteria.
THIS BILL also makes eligible for grants under the
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Fund members of the military injured while serving on
active duty, discharged from federal active duty, and
actively seeking assistance through the United States
Department of Veterans' Affairs with regard to disability
compensation benefits or treatment, or both. The measure
requires that the member eligible under this criterion
submit an application for a cash grant 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.
THIS BILL also changes references and makes other
technical changes.
FISCAL EFFECT:
According to FTB, AB 563 results in no revenue or cost
impacts.
COMMENTS:
A. Purpose of the Bill
According to the Author, "I was proud to author AB
3016 in 2008, a bill that expanded eligibility for our
California Military Family Relief Fund, to allow applicants
from all branches of the military. However, given the
complexity of the issue, I have since learned that our
language needs a few simple fixes in order to allow legal
participation by service men and women in branches other
than the California National Guard. In short, this is
largely a technical bill, but is essential to moving this
program forward, so that we may help qualified applicants."
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B. Appearance of a Conflict
AB 563 arises from a potential conflict of interest
between joint ethics rules guiding military personnel, and
the requirement from AB 3016 that fund proceeds be
allocated pursuant to a memorandum of agreement between
developed by representatives of at least three reserve
components. The working group has not yet developed the
memorandum of agreement. According to the Author, having
one member of a reserve component as part of the working
group to develop a memorandum of agreement allocating the
funds conflicts with joint ethics rules, which restrict a
branch of the military from interacting with a nonfederal
entity, in assisting members of the Armed Forces in
receiving grant monies. AB 563 remedies this problem by
removing the memorandum of agreement requirement, instead
allowing the Military Department to allocate the funds.
Support and Opposition
Support:None received
Oppose:None received
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Consultant: Colin Grinnell
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