BILL ANALYSIS                                                                                                                                                                                                    �






                        SENATE COMMITTEE ON VETERANS AFFAIRS
                              Senator Ben Hueso, Chair
                                               


          BILL NO:  AB 2664                  HEARING DATE: 6/24/14
          AUTHOR:   Quirk-Silva
          VERSION:  4/1/14
          FISCAL:   Yes
          VOTE:     Majority




                                        SUBJECT  
          
          California National Guard: California Military Family Relief  
          Fund


                                      DESCRIPTION  
           
          Existing law:

           1.Authorizes the Adjutant General and the California Military  
            Department (CMD) to solicit and accept funds or other  
            donations for deposit in the California Military Department  
            Support Fund.

          2.Provides that money in the fund is available, upon  
            appropriation, for specified purposes relating to the programs  
            of the CMD.

          3.Former law, repealed by its own provisions, allowed taxpayers  
            to designate on their tax returns that a specified amount in  
            excess of their tax liability be transferred to the California  
            Military Family Relief Fund, established to accept  
            contributions from taxpayers and from other sources. Money in  
            that fund, upon appropriation, was required to be allocated to  
            the Military Department to provide financial aid grants to  
            eligible members of the California National Guard. The former  
            law provided that, notwithstanding repeal, any contribution  
            amounts designated prior to repeal would continue to be  
            transferred and disbursed in accordance with those repealed  
            provisions.










          4.The State Treasury's Special Fund 8022, containing  
            approximately $1.2 million in donations to the Old Fund, will  
            be abolished in January 2015 and the moneys will revert to the  
            General Fund.

           This bill:

           1.Establishes a California National Guard Military Family Relief  
            Fund (the New Fund) within the existing California Military  
            Department Support Fund.

          2.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  
            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.

          5.Requires the CMD to establish eligibility criteria for the  
            grants by January 1, 2015. 

          6.Directs that the grant criteria shall include, but not be  
          
          AB 2664 (Quirk-Silva)                                       2
          










            limited to, a demonstration of financial need.

          7.Requires that, in addition to grant criteria established by  
            the CMD, 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.

           
                                          
                                       COMMENT  
          
           Committee Staff Comments  :
          Rather than revert to the General Fund, this bill extends the  
          time for disbursement of relief funds to National Guard families  
          in crisis arising out of active duty service.  Though  
          deployments are generally decreasing, National Guard members are  
          still called to active duty for overseas deployment and for  
          
          AB 2664 (Quirk-Silva)                                       3
          










          other purposes.  Unfortunately these periods of active duty too  
          often result in a net income loss to the 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.

                                       POSITIONS  
          
          Sponsor:  Author.

          Support:  None on file.

          Oppose:   None on file.
          
          Analysis by: Wade Cooper Teasdale

























          
          AB 2664 (Quirk-Silva)                                       4