BILL ANALYSIS Ó
SENATE COMMITTEE ON VETERANS AFFAIRS
LOU CORREA, CHAIRMAN
Bill No: AB 2475
Author: Committee on Veterans Affairs
Version: As Introduced
Hearing Date: June 12, 2012
Fiscal: Yes
Consultant: Donald E. Wilson
SUBJECT OF BILL
Military service protections
PROPOSED LAW
To conform state law to federal law by prohibiting
foreclosure of military members' homes for nine months
after military deployment.
EXISTING LAW AND BACKGROUND
1. During the American Civil War Congress passed a
moratorium on civil actions against northern troops.
Certain southern states are said to have done the same
for their armies.
2. In World War 1 Congress passed the Soldiers' and
Sailors' Civil Relief Act of 1918 to protect service
members from losing at home what they were fighting
for on the front. The law gave courts the authority
to make equitable decisions involving military
personnel who had no ability, or a compromised
ability, to meet obligations at home.
3. In 1940 Congress renewed the expired Soldiers' and
Sailors' Civil Relief Act, now commonly called
(SSCRA).
4. In 1942, due to the courts improperly carrying out
the will of Congress the SSCRA was amended to correct
errors of the Federal Courts and to give stronger
protections to those serving the United States of
America.
5. As some business owners found new ways to attempt
to avoid the SSCRA law, Congress and state
legislatures have consistently returned to defend
service members by strengthening the law. In 1991
further amendments were passed in response to the
experience of Desert Shield/Desert Storm personnel.
6. In 2002 SSCRA protections (the Veterans Benefits
Act of 2002, Public Law 107-330. Section 305) were
extended to National Guard members activated under
Title 32 if activated for federal reasons. ÝNote:
Federal active duty is usually activated under Title
10 of the United States Code (U.S.C.). Usually Title
32 is state activation of the National Guard.
However, after 9-11 state National Guard units were
activated for state service in such places as airports
and bridges but the activation was done by and paid
for by the Federal Government.]
7. In December 2003, President Bush signed a revised
version of the SSCRA, now known as the Federal Service
Members Civil Relief Act (SCRA), which again extended
SSCRA protections.
8. Existing law provides financial and legal
protections to military members, reservists, and
members of the National Guard that are called to
active duty with respect to rental agreements,
security deposits, eviction, installment contracts,
credit card interest rates, mortgage interest rates,
mortgage foreclosure, civil judicial proceedings, and
income tax payments (Service Members Civil Relief Act
of 2003, Public Law 108-189).
9. Since 2001, the California National Guard (CNG) has
responded to the needs of the state by deploying
thousands of Soldiers and Airmen throughout the state
for a multitude of missions, many lasting for months
and some for years. Many of these Guard members must
leave their studies in order to respond to state
emergencies. Some may be required to perform duty for
over 15 or more consecutive days (as was the case with
Page 2
California's recent wildfires).
10. After September 11, 2001 California also
strengthened SSCRA. In 2002, the Military Department
sponsored AB 1433 (Horton)*, which was chaptered into
law and repealed California MVC §399 and §399.5 and
added Chapter 7.5 "Protections," commencing with §400
through §420. AB 1433 codified into state law many
aspects of the Federal SSCRA including eviction
protection, capping interest rates at 6%, obligations
secured by real or personal property, and protection
on installment loan credit.
11. The passage of AB 1433 provided
financial protection for military members performing
military service in regards to court proceedings,
credit contract obligations, rental agreements, taxes
(except income taxes), and health/medical insurance,
as well as eviction protection for the military
members' families. These new provisions enabled
National Guard members that are serving in state or
federal status and other military reservists
performing federal duty to receive financial
protections consistent with those found within the
federal SSCRA.
12. AB 306 of 2005 (Baca)**, also known as
the "California Military Families Financial Relief
Act", created MVC sections 800-810, which updated the
state's version of SSCRA to include all California
service members who served in the post 9/11 era,
whether Reserves or National Guard, as well as adding
protections on auto loans.
13. Other state legislation-
a) California MVC §§800-810 was codified by SB 1
(Calderon)*** in 1991 to provide emergency economic
relief to California residents called to active
military service during the Iraq-Kuwait crises. This
legislation augmented protections that were already
afforded under the federal statute known as the
Soldiers and Sailors Civil Relief Act (SSCRA) of 1940.
Page 3
b) AB 1666 (Frommer) of 2005, the California Families
Financial Relief Act of 2005, addressed (among other
things) the following:
Waives county recorder fee for power of
attorney for recording a service member's agent
if that member is performing military service.
Allows for the cancellation of a cell
phone contract within 30 days if the member or
spouse sends a written notice to the cell phone
service provider.
Requires a full refund of tuition and
fees for college students ordered to military
service if they withdraw prior to the school's
withdrawal date.
Waiver of bar dues for the time period in
which the military member is serving military
duty.
Allows for arrearages on a vehicle lease
to be paid in equal installments over the length
of time the member served military duty if a
vehicle lease is terminated pursuant to the
federal Service Members Civil Relief Act.
Allows qualified customers to receive up
to 180 days of shutoff protection for utilities
if income reduction is due to a member of the
family being activated to duty and the individual
notifies the public service provider of the need
for assistance.
14. In 2008 Congress amended the Service members'
Civil Relief Act to
increase this foreclosure prohibition period
from three months to nine
months.
Page 4
COMMENT
1. This bill is one word of conforming language. This
concept already exists in state law. The only question is
should the state law by changed from three months to nine
months in order to conform with federal law?
SUPPORT
American Legion, Department of California
AMVETS, Department of California
California Association of County Veterans Service Officers
California Bankers Association
California State Commanders Veterans Council
Vietnam Veterans of America, California State Council
OPPOSE
None received
Page 5