BILL NUMBER: AB 2475	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Veterans Affairs (Assembly Members Cook
(Chair), Pan (Vice Chair), Atkins, Block, Beth Gaines, Nielsen, V.
Manuel Pérez, and Yamada)

                        FEBRUARY 24, 2012

   An act to amend Section 408 of the Military and Veterans Code,
relating to military service.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2475, as introduced, Committee on Veterans Affairs. Military
service protections: real and personal property rights.
   Existing law provides legal rights, as specified, for service
members in regard to court proceedings, interest liabilities,
contracts, eviction proceedings, leases, tax and assessments, life
insurance policies, and health insurance.
   Existing law prohibits any sale, foreclosure, or seizure of real
or personal property subject to a mortgage, or other security, for
nonpayment by the service member owner if made during the period of
military service or within three months thereafter. Court orders and
party agreements are exceptions to this provision. Violation of this
provision is a misdemeanor.
   This bill would extend the prohibition from 3 months to 9 months
after the military service period.
   By changing the definition of a crime, this bill would impose a
state mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 408 of the Military and Veterans Code is
amended to read:
   408.  (a) This section shall apply only to obligations secured by
mortgage, trust deed, or other security in the nature of a mortgage
upon real or personal property owned by a service member at the
commencement of the period of the military service and still so owned
by the service member whose obligations originated prior to the
person's period of military service.
   (b) In any proceeding commenced in any court during the period of
military service to enforce that obligation as provided in
subdivision (a) arising out of nonpayment of any sum due or out of
any other breach of the terms of the mortgage, trust deed, or other
security occurring prior to or during the period of the service the
court may, after hearing and in its discretion on its own motion, and
shall, on application to it by the service member or some person on
the defendant's behalf, unless in the opinion of the court the
ability of the defendant to comply with the terms of the obligation
is not materially affected by reason of the defendant's military
service, do either of the following:
   (1) Stay the proceedings for any period as the court deems just.
   (2) Make any other disposition of the case as may be equitable to
conserve the interests of all parties.
   (c) No sale, foreclosure, or seizure of property for nonpayment of
any sum due under any obligation as provided in subdivision (a), or
for any other breach of the terms thereof, whether under a power of
sale, under a judgment entered upon warrant of attorney to confess
judgment contained therein, or otherwise, shall be valid if made
during the period of military service or within  three
  nine  months thereafter, except pursuant to an
agreement between the parties, unless upon an order previously
granted by the court and a return thereto made and approved by the
court.
   (d) Any person violating this section shall be liable for actual
damages, reasonable attorney's fees, and costs incurred by the
injured party.
   (e) Any person who shall knowingly make or cause to be made any
sale, foreclosure, or seizure of property, defined as invalid by
subdivision (c), or attempts to do so, is guilty of a misdemeanor,
and shall be punishable by imprisonment not to exceed one year or by
a fine not to exceed one thousand dollars ($1,000), or both.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.