BILL NUMBER: AB 713	CHAPTERED
	BILL TEXT

	CHAPTER  105
	FILED WITH SECRETARY OF STATE  JULY 25, 2011
	APPROVED BY GOVERNOR  JULY 25, 2011
	PASSED THE SENATE  JULY 1, 2011
	PASSED THE ASSEMBLY  MAY 16, 2011
	AMENDED IN ASSEMBLY  APRIL 12, 2011

INTRODUCED BY   Assembly Member Block

                        FEBRUARY 17, 2011

   An act to amend Sections 409.3 and 409.5 of the Military and
Veterans Code, relating to military service.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 713, Block. Military service: legal benefits.
   Existing law provides legal benefits, as specified, for service
members in regard to credit agreements, court proceedings, interest
liabilities, eviction proceedings, contracts, mortgages and trusts,
leases, life insurance policies, taxes and assessments, and health
insurance policies. Existing law provides that dependents of a
service member are entitled to some of the benefits accorded to
service members, as specified.
   This bill would provide that a dependent of a service member is
entitled to the benefit that no obligation or liability bearing
interest at a rate in excess of 6% per year incurred by the dependent
before that service member's entry into service, during any part of
the period of military service, bear interest at a rate in excess of
6% per year, unless as provided.
   Existing law authorizes a service member to apply to the court for
relief of an obligation or liability incurred by the service member
prior to his or her period of military service or for relief of any
tax or assessment whether falling due prior to or during his or her
period of military service. Existing law authorizes the court, after
notice and hearing, unless in its opinion the ability of the
petitioner to comply with the terms of the obligation or liability or
to pay the tax or assessment has not been materially affected by
reason of his or her military service, to grant specified relief.
   This bill would clarify that a service member may apply to a court
for relief in respect of any obligation or liability incurred by the
service member prior to the effective date of the orders for his or
her most current period of military service. This bill would also
clarify that the court may grant specified relief, unless in its
opinion the ability of the petitioner to comply with the terms of the
obligation or liability or to pay the tax or assessment has not been
materially affected by reason of his or her most current period of
military service.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 409.3 of the Military and Veterans Code is
amended to read:
   409.3.  (a) A service member may, at any time during his or her
most current period of military service or within six months
thereafter, petition a court for relief in respect of any obligation
or liability incurred by the service member prior to the effective
date of the orders for his or her most current period of military
service or in respect of any tax or assessment whether falling due
prior to or during his or her most current period of military
service.
   (b) The court shall set a hearing on the petition within 25 days
from the date the petition is filed, unless the court shows good
cause for extending the date of the hearing. The petition shall be
served at least 10 days before the hearing. The respondent shall file
and serve a response to the petition at least five days before the
hearing.
   (c) The court shall not charge a filing fee or court costs for a
petition filed pursuant to this section.
   (d) The court, after notice and hearing, unless in its opinion the
ability of the petitioner to comply with the terms of the obligation
or liability or to pay the tax or assessment has not been materially
affected by reason of his or her most current period of military
service, may grant the following relief:
   (1) In the case of an obligation payable under its terms in
installments under a contract for the purchase of real estate, or
secured by a mortgage or other instrument in the nature of a mortgage
upon real estate, a stay of the enforcement of the obligation during
the applicant's period of military service and, from the date of
termination of the period of military service or from the date of
application if made after the service, for a period equal to the
period of the remaining life of the installment contract or other
instrument plus a period of time equal to the period of military
service of the applicant or any part of the combined period, subject
to payment of the balance of principal and accumulated interest due
and unpaid at the date of termination of the period of military
service or from the date of application, as the case may be, in equal
installments during the combined period at the rate of interest on
the unpaid balance as is prescribed in the contract, or other
instrument evidencing the obligation, for installments paid when due,
and subject to any other terms as may be just.
   (2) In the case of any other obligation, liability, tax, or
assessment, a stay of the enforcement thereof during the applicant's
period of military service and, from the date of termination of the
period of military service or from the date of application if made
after the service, for a period of time equal to the period of
military service of the applicant or any part of that period, subject
to payment of the balance of principal and accumulated interest due
and unpaid at the date of termination of the period of military
service or the date of application, as the case may be, in equal
periodic installments during the extended period at the rate of
interest as may be prescribed for the obligation, liability, tax, or
assessment, if paid when due, and subject to any other terms as may
be just.
   (e) (1) When any court has granted a stay as provided in this
section, no fine or penalty shall accrue during the period the terms
and conditions of the stay are complied with by reason of failure to
comply with the terms or conditions of the obligation, liability,
tax, or assessment in respect of which the stay was granted.
   (2) If a person has charged or accrued a fine or penalty in
violation of paragraph (1), that person shall be liable for actual
damages, reasonable attorney's fees, and costs incurred by the
injured party as a result of the violation.
   (f) Nothing in this section shall permit a service member ordered
to military service to obtain a delay, deferment, or stay on an
obligation to pay child support. Nothing in this section shall
preclude a service member ordered to military service from seeking a
modification of an order to pay child support due to a reduction in
income resulting from the order to service, or from seeking the
imposition of the maximum interest rate provided by this chapter on
arrearages in child support payments existing prior to the order to
service.
  SEC. 2.  Section 409.5 of the Military and Veterans Code is amended
to read:
   409.5.  Dependents of a service member shall be entitled to the
benefits accorded to service members under Sections 405 to 409.4,
inclusive, upon application to a court therefor, unless in the
opinion of the court the ability of the dependents to comply with the
terms of the obligation, contract, lease, or bailment has not been
materially impaired by reason of the military service of the person
upon whom the applicants are dependent.