BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2664
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2664 (Quirk-Silva)
          As Amended  April 1, 2014
          Majority vote

           VETERANS AFFAIRS    8-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Quirk-Silva, Dababneh,    |Ayes:|Gatto, Bigelow,           |
          |     |Brown, Eggman, Fox,       |     |Bocanegra, Bradford, Ian  |
          |     |Melendez, Muratsuchi,     |     |Calderon, Campos,         |
          |     |Salas                     |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Holden, Jones, Linder,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Establishes a California National Guard Military  
          Family Relief Fund (the New Fund) within the existing California  
          Military Department Support Fund, and transfers money from the  
          California Military Family Relief Fund (the Old Fund) to the New  
          Fund.  Specifically,  this bill  :  

          1)Requires that the California Military Department Support Fund  
            shall include the New Fund a special fund as established  
            within the California Military Department Support Fund.

          2)Specifies that for accounting and recordkeeping purposes, the  
            California Military Department Support Fund shall be deemed to  
            be a single special fund, and any special funds therein shall  
            constitute and be deemed to be a separate account in the  
            California Military Department Support Fund. 

          3)Mandates that each account or fund shall be available for  
            expenditure only for the purposes as are now or may hereafter  
            be provided by law.

          4)Establishes the New Fund as an account within the California  
            Military Department Support Fund for the purpose of providing  
            financial aid grants to members of the California National  
            Guard who are California residents and who have been called to  
            active duty.








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          5)Requires the Military Department to establish eligibility  
            criteria for the grants by January 1, 2015. 

          6)Directs that the grant criteria shall include, but not be  
            limited to, a demonstration of financial need.

          7)Requires that in addition to grant criteria established by the  
            Military Department members of the California National Guard  
            must show proof of all of the following to be eligible to  
            receive a grant:

             a)   Current membership in the California National Guard.

             b)   Residency in California.

             c)   Deployment to active duty for at least 60 consecutive  
               days.

          8)Mandates that grants awarded may be used only for food,  
            housing, childcare, utilities, medical services, medical  
            prescriptions, insurance, and vehicle payments.

          9)Directs that California National Guard members 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.

          10)Requires the Adjutant General to conduct annual audits of the  
            California Military Department Support Fund and the New Fund  
            and to report findings to the Department of Finance.

          11)Transfers on January 1, 2015, any and all moneys remaining in  
            the Old Fund to the New Fund.

          12)Directs that the moneys transferred shall continue to be  
            disbursed in accordance with the original intent of the  
            contributions made by taxpayers to the Old Fund.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Absent this bill, $1.2 million would revert to the  
            General Fund from the Military Family Relief Fund January  








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            1, 2015. These funds are the proceeds of a state income  
            tax check-off that was operative from 2005 through 2009,  
            inclusive. The check-off was repealed after 2009 for  
            failing to reach the $250,000 minimum contribution level  
            in that year. 

          2)The new Family Relief Fund has no funding source. It  
            could, however, receive fund transfers from the  
            California Military Department Support Fund.  

           COMMENTS  :  Rather than revert to the General Fund, this bill  
          extends the time for disbursement of relief funds to California  
          National Guard families in crisis arising out of active duty  
          service.  Though deployments are generally decreasing,  
          California National Guard members are still called to active  
          duty for overseas deployment and for other purposes.   
          Unfortunately these periods of active duty too often result in a  
          net income loss to the California National Guard member's  
          family.  In short, there is still a need for the money in the  
          Old Fund.  Finally, the continued availability of this relief  
          money, with the eligibility criteria specified, is in accord  
          with the donors' intent, as opposed to reversion of the funds to  
          the General Fund.


           Analysis Prepared by  :    John J. Spangler / V.A. / (916)  
          319-3550


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