BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 713|
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CONSENT
Bill No: AB 713
Author: Block (D)
Amended: 4/12/11 in Assembly
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 6/14/11
AYES: Correa, Cannella, Berryhill, Lieu, Negrete McLeod,
Rubio, Runner
NO VOTE RECORDED: Calderon
SENATE JUDICIARY COMMITTEE : 4-0, 6/21/11
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : 77-0, 5/16/11 (Consent) - See last page
for vote
SUBJECT : Military service: legal benefits
SOURCE : Author
DIGEST : This bill enhances the availability of certain
benefits and protections from liability currently afforded
to California National Guard and United States Military
Reserve service members and their families during periods
of active military service.
ANALYSIS : Existing law permits a service member to, at
any time during his/her period of service or within six
months thereafter, apply to a court for relief from an
CONTINUED
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obligation or liability incurred by the member prior to
his/her period of military service, or from any tax or
assessment falling due prior to or during the period of
service. (Military and Veterans Code ÝMVC] Section
409.3(a))
Existing law allows the court to grant specified relief
after appropriate notice and hearing, unless in its opinion
the ability of the service member to comply with the
obligation or pay the tax or assessment has not been
materially affected by reason of the member's military
service. (MVC Section 409.3(d))
Existing law provides that dependents of a service member
shall be entitled to the benefits accorded to service
members under specified sections of the MVC, 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. (MVC Section 409.5)
Existing law provides that no obligation or liability
bearing interest at a rate in excess of six percent per
year incurred by a service member before that person's
entry into service shall, during any port or period of
military service, bear interest at a rate in excess of six
percent, unless, in the opinion of the court, the ability
to pay interest upon that obligation or liability at a rate
in excess of six percent is not materially affected by
reason of that service, as specified. (MVC Section 405)
This bill:
1. Clarifies that a service member may, at any time during
his/her most current period of military service or
within six months thereafter, petition for relief from
any obligation or liability incurred prior to the
effective date of the orders for his/her most current
period of military service.
2. Clarifies that a service member may, at any time during
his/her most current period of military service or
within six months thereafter, petition for relief with
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respect to any tax or assessment whether falling due
prior to or during his/her most current period of
military service.
3. Extends to a service member's dependents the reduction
of interest rates to six percent on obligations or
liabilities that were incurred prior to the service
member's military service, subject to judicial
discretion as provided.
Comments
This bill is a technical fix - not a major policy change.
It has received no "noe" votes.
According to the author's office, the need for this fix is
that the present law refers to "full-time active service",
which for the purposes of the guard and reserve forces is
an inadequate definition for those military personnel that
are going on and off active duty status multiple times.
"Due to this section not specifying which order allows a
servicemember to be eligible for relief, there is potential
to deprive servicemembers who have previously been ordered
to military service of the benefits of this statute."
This bill does not give a waiver based on orders; this bill
gives access to the courts and "material damage" still has
to be proven in court.
Prior Legislation
AB 1433 (Horton), Chapter 60, Statutes of 2002, allows
service members to petition a court for specified relief
with respect to credit contract obligations, rental
agreements, taxes (except income taxes), and health
insurance, as well as eviction protection for the service
members' families.
AB 306 (Baca), Chapter 291, Statutes of 2005, authorizes
service members who are called to active duty as a result
of the Iraq or Afghanistan conflicts to defer payments on
specified obligations for the period of active duty, plus
60 calendar days, or 180 days, whichever is less.
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AB 2455 (Nava), Chapter 124, Statutes of 2010, extends
protections with respect to deferment of vehicle loans to
spouses and dependents of service members, as provided.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/22/11)
AMVETS - Department of California
California Association of County Veterans Service Officers
California Bankers Association
California Credit Union League
California Military Department
California State Commanders Veterans Council
National Guard Association of California
Vietnam Veterans of America, California State Council
ARGUMENTS IN SUPPORT : The California Military
Department, the supporter of this bill, writes, "Assembly
Bill 713 will have a positive impact on many Servicemembers
and their Families who are struggling financially due to an
order to military service. This legislation makes minor
revisions to the Military and Veterans Code that would
clarify which order to military service gives a
Servicemember the ability to apply to a court for relief
from obligations. Assembly Bill 713 would also ensure that
a Servicemember's dependents are eligible for the reduction
of interest rates to six percent on obligations and
liabilities incurred prior to the Servicemember's entry
into service."
ASSEMBLY FLOOR : 77-0, 5/16/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
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Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Gorell, Mansoor, Norby
RM:kc 6/23/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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