BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2664 (Quirk-Silva) - California National Guard
          
          Amended: April 1, 2014          Policy Vote: VA 6-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary:  AB 2664 transfers existing funds from the  
          California Military Family Relief Fund to the California  
          Military Department Support Fund, administered by the Military  
          Department for purposes of providing financial aid grants to  
          certain members of the military.

          Fiscal Impact: 

              Transfer of approximately $1.2 million (General Fund*)

              Minor, absorbable administrative costs to the Military  
              Department (General Fund)

          *The money in the existing California Military Family Relief  
          Fund was a result of tax-check off donations made by taxpayers.   
          This authorization has expired and without this bill, the  
          remaining funds of $1.2 million will revert to the General Fund  
          on January 1, 2015.

          Background:  Existing funds in the Military Family Relief Fund  
          were established pursuant to a state income tax check-off that  
          was operative from 2005 through 2009.  The check-off was  
          repealed after 2009 for failing to reach the $250,000 minimum  
          contribution level in that year.  Money in that fund was  
          allocated to the Military Department to provide grants to  
          members of the military that suffered a substantial loss of  
          income due to deployment.  Because initial criteria required  
          that the loss of income had to exceed 10% of the members  
          pre-deployment earnings, few grants were actually made, most of  
          which were in amounts between $500 and $1,500.

          Proposed Law:  AB 2664 transfers the existing funds from the  








          AB 2664 (Quirk-Silva)
          Page 1



          California Military Family Relief Fund to the newly created  
          California Military Department Support Fund, administered by the  
          Military Department for purposes of providing financial aid  
          grants to certain members of the military.  

          Additionally, the bill requires the Military Department to  
          establish eligibility criteria for the grants by January 1,  
          2015.  The criteria shall include, but not be limited to, a  
          demonstration of financial need.  Grants may be used only for  
          food, housing, childcare, utilities, medical services, medical  
          prescriptions, insurance, and vehicle payments.

          In order to be eligible for grant funds, members of the  
          California National Guard (CNG) must have proof of the  
          following:

          1)  Current membership in the California National Guard.
          2)  Residency in California.
          3)  Deployment to active duty for at least 60 days.

          Members who have received a punitive discharge or an  
          administrative discharge with service characterized as "other  
          than honorable" conditions will not be eligible for grant funds.

          The Adjutant General is required to conduct an internal audit of  
          the fund and report the findings to the Department of Finance  
          annually by March 31.

          Staff Comments: It is the intent of the Military Department to  
          revise the criteria necessary for members of the California  
          National Guard to apply for grant funds by removing the  
          requirement that their income decrease at least 10% due to  
          deployment. This will enable more military families to apply for  
          funding to assist with payments for food, housing, childcare,  
          medical and other expenses.