BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 563
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 563 (Cook)
          As Amended September 3, 2009
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |78-0 |(May 11, 2009)  |SENATE: |40-0 |(September 8,  |
          |           |     |                |        |     |2009)          |
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           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)Provide that, for calendar year 2009 only, the minimum  
            contribution amount for the Fund shall be reduced to $250,000.

          6)Add legislative findings noting that a statewide public purpose  
            is served in lowering the minimum contribution threshold for  
            calendar year 2009.  

          7)Add an urgency clause, allowing this bill to take effect  







                                                                  AB 563
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            immediately upon enactment. 

           EXISTING LAW  :

          1)Allows taxpayers to designate on their personal income tax  
            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:

          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  







                                                                  AB 563
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            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  


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