BILL ANALYSIS Ó
AB 2475
Page 1
Date of Hearing: April 17, 2012
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 2475 (Committee on Veterans Affairs) - As Introduced:
February 24, 2012
PROPOSED CONSENT
SUBJECT : MILITARY SERVICE PROTECTIONS: REAL AND PERSONAL
PROPERTY RIGHTS
KEY ISSUE : SHOULD CALIFORNIA LAW BE UPDATED TO CONFORM WITH
FEDERAL LAW THAT ALLOWS MILITARY SERVICEMEMBERS THE BENEFIT OF A
FULL NINE MONTH PERIOD AFTER THEIR SERVICE PERIOD IS OVER DURING
WHICH FORECLOSURE OF THE SERVICEMEMBER'S HOME IS PROHIBITED?
FISCAL EFFECT : As currently in print this bill is keyed fiscal.
SYNOPSIS
This non-controversial bill, authored by the Assembly Veterans
Affairs Committee, seeks to extend from three months to nine
months the time after a servicemember's period of military
service is over during which foreclosure upon the
servicemember's home is prohibited. In 2008, federal lawmakers
amended the Servicemembers' Civil Relief Act (SCRA) to increase
this period from three months to nine months under federal law.
This bill would simply amend California law to conform to the
federal SCRA to reflect the same nine month period of
protection. This bill is supported by the banking industry and
previously passed out of the Veterans Affairs Committee without
any "no" votes.
SUMMARY : Extends from three months to nine months the time
after a servicemember's period of military service is over
during which foreclosure upon the servicemember's home is
prohibited. Specifically, this bill provides that no sale,
foreclosure, or seizure of property for nonpayment of any sum
due under any obligation secured by mortgage, trust deed, or
other security, as specified, shall be valid if made during the
period of military service or within 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.
AB 2475
Page 2
EXISTING LAW :
1)Provides that no sale, foreclosure, or seizure of property for
nonpayment of any sum due under any obligation secured by
mortgage, trust deed, or other security, as specified, shall
be valid if made during the period of military service or
within three months thereafter, except as provided. (Military
and Veterans Code Section 408.)
2)Specifies a number of other civil obligations and liabilities
for which the service member may petition a court for relief,
including, but not limited to, relief from:
a) Eviction from the member's primary residence;
b) Obligations under a lease for specified residential and
nonresidential property;
c) Nonpayment of an installment under a contract for
purchase of real or personal property;
d) Taxes or assessments, whether general or special, other
than taxes on income, as provided. (Military and Veterans
Code Sections 406 to 409.4.)
3)Pursuant to the federal Servicemembers Civil Relief Act
(SCRA), authorizes a stay of proceedings and adjustment of
obligation in an action to enforce an obligation on a mortgage
that is filed during or within 9 months after a
servicemember's period of military service. (50 U.S.C. §
303.)
COMMENTS : This non-controversial bill, authored by the Assembly
Veterans Affairs Committee, seeks to extend from three months to
nine months the time after a servicemember's period of military
service is over during which foreclosure upon the
servicemember's home is prohibited.
This bill conforms California law to match recent changes to
federal law allowing a nine month period free from possible
foreclosure. Both federal law and California law have
recognized the need to protect servicemembers and their families
from home foreclosure during the servicemember's period of
military service and for some period afterwards. Current state
law grants servicemembers a three month period of protection
from foreclosure. However, in 2008 Congress recognized there
was a need for a longer protection period, and amended the
AB 2475
Page 3
Servicemembers' Civil Relief Act to increase this period from
three months to nine months. This bill would simply amend
California law to conform to the federal SCRA to reflect an
identical nine month period of protection.
Extension of this period of protection allows servicemembers to
devote full attention to their duties instead of being
overwhelmed by civil obligations at home. According to the
author, extension of protection periods for servicemembers are
intended to postpone or suspend certain civil obligations to
enable service members to devote full attention to duty and
relieve stress on the family members of those deployed
servicemembers. An order to military service can materially
impact the financial stability of California service members and
their families, and both Congress and the California Legislature
in recent years have passed new laws providing financial
protections to servicemembers to help alleviate any negative
impacts.
PRIOR LEGISLATION : AB 713 (Block), Ch. 105, Stats. 2011,
enhances the availability of certain benefits and protections
from liability currently afforded to National Guard and U.S.
Military Reserve service members and their families during
periods of active military service.
REGISTERED SUPPORT / OPPOSITION :
Support
California Mortgage Bankers Association
California Bankers Association
Opposition
None on file
Analysis Prepared by : Anthony Lew and Kim Rosenberger / JUD.
/ (916) 319-2334