BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 563
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 563 (Cook)
          As Amended August 17, 2009
          2/3 vote.  Urgency
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |78-0 |(May 11, 2009)  |SENATE: |38-0 |(August 27,    |
          |           |     |                |        |     |2009)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    REV. & TAX.  

           SUMMARY  :  Modifies the statutory provisions governing the  
          California Military Family Relief Fund (Fund).

           The Senate amendments  :

          1)Replace references to "reserve members" with references to  
            reserve members  and  California National Guard (Guard) members.

          2)Delete provisions specifying that moneys transferred to the  
            Fund before January 1, 2009, shall be reserved for the Guard.   


          3)Delete language providing that the awarding of Fund grants  
            shall be governed by a Memorandum of Agreement (MOA),  
            developed by a working group comprised of officers or members  
            of a nonprofit organization selected by the state Military  
            Department that describes the procedures and requirements for  
            participation in the grant program. 

          4)Modify the grant eligibility criteria.  Specifically, provide  
            that a member shall be eligible if, in addition to meeting  
            other criteria, 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.  

          5)Add an urgency clause allowing this bill to take effect  
            immediately upon enactment. 

           EXISTING LAW  :

          1)Allows taxpayers to designate on their personal income tax  








                                                                  AB 563
                                                                  Page  2

            returns a contribution to any of 15 voluntary contribution  
            funds, including this Fund.

          2)Provides that all moneys transferred to this Fund, upon  
            appropriation by the Legislature, shall be allocated as  
            follows:

             a)   To the Franchise Tax Board and the State Controller for  
               reimbursement of all costs incurred in administering the  
               checkoff; and, 

             b)   To the Military Department for the establishment of  
               financial aid grants to reserve members of the Armed Forces  
               who are California residents called to active duty.

          3)Provides that the Military Department shall establish  
            eligibility criteria for the grants.  

          4)Defines the Military Department to include:

             a)   The office of the Adjutant General;

             b)   The Guard;

             c)   The State Military Reserve;

             d)   The California Cadet Corps; and,

             e)   The Naval Militia.  

          5)Specifies that it is the Legislature's intent that every  
            qualified reserve member, regardless of branch, in need of  
            emergency assistance, be able to receive a grant.  

          6)Provides that, to ensure the objective administration of  
            grants, the awarding of Fund grants shall be governed by a  
            MOA, developed by a working group comprised of representatives  
            from at least three reserve components, which describes the  
            procedures and requirements for participation in the grant  
            program.  

          7)Requires all organizations participating in the grant program  
            be signatories of the MOA.  

           AS PASSED BY THE ASSEMBLY  , this bill:








                                                                  AB 563
                                                                  Page  3


          1)Provided that the MOA would be developed by a working group  
            comprised of officers or members of a nonprofit organization  
            selected by the state Military Department (instead of a  
            working group comprised of representatives from at least three  
            reserve components).    

          2)Deleted the requirement that all organizations participating  
            in the grant program must be signatories of the MOA and,  
            instead, provided that the MOA must be signed by a  
            representative with authority to bind the nonprofit  
            organization selected by the state Military Department.   

          3)Made other technical and non-substantive amendments to the  
            Fund statute. 

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  


           COMMENTS  :  The author states, "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."  

          Committee Staff Comments:  Last year, the author carried AB  
          3016, Chapter 645, Statutes of 2008, to expand Fund grant  
          eligibility to reserve members of the United States Armed  
          Forces.  Prior to AB 3016's passage, grants were restricted to  
          members of the Guard.  The author states this bill is needed to  
          resolve concerns that the grant program, as currently set up,  
          may unintentionally violate the Department of Defense's Joint  
          Ethics Regulations.  

           Analysis Prepared by  :  M. David Ruff / REV. & TAX. / (916)  
          319-2098 











                                                                  AB 563
                                                                  Page  4

                                                                FN: 0002391