S-16-06


            WHEREAS the State of California, its cities and counties, and the Department of Defense (DoD) have a long history of partnership and cooperation that dates back to California’s admission to the Union; and

            WHEREAS California’s civilian and military personnel have and continue to play a central role in America’s defense; and

            WHEREAS California recognizes that our State remains critical in providing human resources, training and research and development facilities to continue to defend our State and nation currently and into the future; and

            WHEREAS the military and California have an historic relationship that helps support the State and local economies by bringing installations, staff and support industries to the State; and

            WHEREAS the military remains one of the largest economic sectors in California with the DoD spending more than $43 billion annually on approximately 160,000 active duty military personnel affiliated with more than 60 military installations; and

            WHEREAS the financial well-being of the men and women serving in the United States armed forces is imperative to their ability to focus their attention on defending the State and nation’s interests; and

            WHEREAS members of the United States armed forces and their families have been subject to unlawful, fraudulent and deceptive financing and investment schemes and have been pressured into buying financial products that they do not need and which do not make sense for their financial situation; and

            WHEREAS serious financial problems can negatively affect unit morale and readiness as well as military service members’ credit history and military career; and

            WHEREAS state law prohibits fraudulent and deceptive financial and investment practices committed against any person in California; and

            WHEREAS since 2005, the Department of Corporations (DOC) has undertaken a public awareness and education campaign —Troops Against Predatory Scams (TAPS) — to combat predatory lending practices, high-cost mutual funds, and investment scams aimed at service members and their families.
   
       NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, do hereby issue this Order to become effective immediately:
1.  The position of the Governor’s Advisor of Military Affairs is hereby established in the Governor’s Office of Planning and Research.  The Governor’s Advisor of Military Affairs shall coordinate the development of state policies that are crucial to the military, including, but not limited to the following areas:

  1. Land use planning to ensure sustainability of defense activities in California.
  1. Development of legislation that supports the California – DoD relationship. 
  1. Work with the defense agencies to address regulatory activities by state agencies that affect the sustainability of defense operations in California.
  1. Work with relevant agency secretaries and department directors to identify critical staff in the Administration to further facilitate cooperation between the State and military. 
  1. Work closely with representatives of the armed forces regarding issues of importance to the men and women in the military and their families living in California.
  1. Serve as the Administration’s lead advocate on state and federal policy impacting the armed forces based in California.

2.  The Governor’s Advisor of Military Affairs and the Commissioner of Corporations shall create a State Military Financial Protection Task Force, its membership shall include:

  1. The Commissioner of Corporations or his or her designee shall serve as co-chair of the Task Force.
  1. The Governor's Advisor of Military Affairs or his or her designee shall serve as co-chair of the Task Force.  The Director of the Governor’s Office of Planning and Research shall serve in this capacity until a Military Affairs Advisor is appointed.
  1. The Adjutant General of the California National Guard or his or her designee.
  1. The Secretary of State and Consumer Services or his or her designee.
  1. The Secretary of Business, Transportation and Housing or his or her designee.
  1. The Secretary of Veterans Affairs or his or her designee.
  1. The Commissioner of Financial Institutions or his or her designee.
  1. Other representatives to be determined by the Commissioner of Corporations.

The following are invited to participate as members of the Task Force:  the Attorney General, the Insurance Commissioner, the Senate President Pro Tempore, the Speaker of the Assembly, the Senate Minority Leader, and the Assembly Minority Leader, or a designee of any of them.  

3.  The Task Force shall meet no less than quarterly.  Its members shall serve without compensation.  DOC shall provide for its administrative support within existing resources.

4.  The Task Force shall develop proposals for legislation that address the unique issues facing the men and women in the military based in California, including but not limited to programs for the education and protection of military personnel from unlawful financial and investment schemes and practices.   It shall report to the Governor and the Legislature on such proposals from time to time as it deems necessary.  As soon as possible, the Task Force shall review existing law to determine whether additional legislation is needed to protect military families in the short term as it continues its work; it shall publicly report its findings and recommendations in this regard no later than February 1, 2007.

5.  DOC, with the assistance of members of the Task Force, shall coordinate with federal and state military branches, military and veterans’ organizations, non-profit organizations, and consumer advocacy organizations to obtain, develop and distribute financial literacy materials and information to military personnel and their families through outreach events and other forums.

6.  DOC shall serve as the principal state liaison with the Financial Literacy Campaign of the U.S. Department of Defense, the U.S. Securities and Exchange Commission, and the National Association of Securities Dealers Educational Foundation on military financial literacy education.

      I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order.