AB 526, as amended, Melendez. Military service: benefits.
Existing law authorizes, to the extent permitted by federal law, members of the United States Military Reserve and National Guard who are called to active duty as a result of the Iraq or Afghanistan conflicts, to defer payments on mortgages, credit cards, retail installment accounts and contracts, real property taxes and assessments, and vehicle leases for the period of active duty, plus 60 calendar days, or 180 days, whichever is the lesser, as specified. Existing law also requires any entity that was providing any type of health care coverage to a member of the United States Military Reserve or National Guard who is called to active duty as a result of the Iraq or Afghanistan conflicts to reinstate the health care coverage without waiting periods or exclusion of coverage for preexisting conditions, and makes a violation of this requirement subject to enforcement under the Knox-Keene Health Care Service Plan Act of 1975, a willful violation of which is a crime. Existing law also provides that a spouse or legal dependent, or both, of a member is entitled to the benefits accorded to a member, if the member is eligible for those benefits.
This bill would extend those deferral provisions and reinstatement of health care coverage provisions to a reservist, as defined, who is called to active duty on and after January 1, 2014, and to a spouse or legal dependent, as specified. This bill would also authorize the deferral of payments on any obligations owed to a utility company. begin insertThe bill would limit the deferment period on financial obligations to not more than 180 days within a 365end insertbegin insert-day period. end insertThis bill would also require a copy of the activation or deployment orders and any other information that substantiates the duration of the service member’s military service to be delivered to an obligor in order for an obligation of a reservist to be deferred, as provided.
This bill would expand the scope of an existing crime by requiring a reservist to provide information under the penalty of perjury, and by making violations of the reinstatement of health care coverage for reservists requirement subject to enforcement under the Knox-Keene Health Care Service Plan Act of 1975, thereby imposing a state-mandated local program. This bill would additionally impose a state-mandated local program by imposing new duties upon local tax officials with respect to the deferral of any payment of property tax or any special assessment.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 800 of the Military and Veterans Code
2 is amended to read:
(a) (1) Subject to subdivision (b), in addition to any other
2benefits provided by law and to the extent permitted by federal
3law, any member of the United States Military Reserve or the
4National Guard of this state who is called to active duty after the
5enactment of this chapter and before January 1, 2014, as a part of
6the Iraq and Afghanistan conflicts may defer payments on any of
7the following obligations while serving on active duty:
8(A) An obligation secured by a mortgage or deed of trust.
9(B) Credit card as defined in Section 1747.02 of the Civil Code.
10(C) Retail installment contract as defined in Section 1802.6 of
11the Civil Code.
12(D) Retail installment account, installment account, or revolving
13account as defined in Section 1802.7 of the Civil Code.
14(E) Up to two vehicle loans. For purposes of this chapter,
15“vehicle” means a vehicle as defined in Section 670 of the Vehicle
16Code.
17(F) Any payment of property tax or any special assessment of
18in-lieu property tax imposed on real property that is assessed on
19residential property owned by the reservist and used as that
20reservist’s primary place of residence on the date the reservist was
21ordered to active duty.
22(2) Subject to subdivision (b), in
addition to any other benefits
23provided by law and to the extent permitted by federal law, a
24reservist who is called to active duty on and after January 1, 2014,
25may defer payments on any of the following obligations while
26serving on active duty:
27(A) An obligation secured by a mortgage or deed of trust.
28(B) Credit card as defined in Section 1747.02 of the Civil Code.
29(C) Retail installment contract as defined in Section 1802.6 of
30the Civil Code.
31(D) Retail installment account, installment account, or revolving
32account as defined in Section 1802.7 of the Civil Code.
33(E) Up to two vehicle loans. For
purposes of this chapter,
34“vehicle” means a vehicle as defined in Section 670 of the Vehicle
35Code.
36(F) Any payment of property tax or any special assessment of
37in-lieu property tax imposed on real property that is assessed on
38residential property owned by the reservist and used as that
39reservist’s primary place of residence on the date the reservist was
40ordered to active duty.
P4 1(G) Any obligation owed to a utility company.
2(b) (1) In order for an obligation or liability of a reservist to be
3subject to the provisions of this chapter, the reservist or the
4reservist’s designee shall deliver to the obligor both of the
5following:
6(A) A
letter signed by the reservist, under penalty of perjury,
7requesting a deferment of financial obligations.
8(B) A copy of the reservist’s activation or deployment order
9and any other information that substantiates the duration of the
10service member’s military service.
11(2) If required by a financial institution, proof that the reservist’s
12employer does not provide continuing income to the reservist while
13the reservist is on active military duty, including the reservist’s
14military pay, of more than 90 percent of the reservist’s monthly
15salary and wage income earned before the call to active duty.
16(c) Upon request of the reservist or the reservist’s dependent or
17designee and within five working days of that request, if applicable,
18the
employer of a reservist shall furnish the letter or other
19comparable evidence showing that the employer’s compensation
20policy does not provide continuing income to the reservist,
21including the reservist’s military pay, of more than 90 percent of
22the reservist’s monthly salary and wage income earned before the
23call to active duty.
24(d) The deferral period on financial obligations shall be the
25lesser of 180 days or the period of active duty plus 60 calendar
26days and shall apply only to those payments due subsequent to the
27notice provided to a lender as provided in subdivision (b).begin insert In
28addition, the total period of the deferment shall not exceed 180
29days within a 365end insertbegin insert-day period.end insert
30(e) If a lender defers payments on a closed end credit obligation
31or an open-end credit obligation with a maturity date, pursuant to
32this chapter, the lender shall extend the term of the obligation by
33the amount of months the obligation was deferred.
34(f) If a lender defers payments on an open-end credit obligation
35pursuant to this chapter, the lender may restrict the availability of
36additional credit with respect to that obligation during the term of
37the deferral.
Section 803 of the Military and Veterans Code is
39amended to read:
(a) Before January 1, 2014, for purposes of this chapter,
2“reservist” means a member of the United States Military Reserve
3or National Guard of this state called to active duty as a result of
4the Iraq conflict pursuant to the Authorization for Use of Military
5Force Against Iraq Resolution of 2002 (Public Law 107-243) or
6the Afghanistan conflict pursuant to Presidential Order No. 13239.
7(b) On and after January 1, 2014, for purposes of this chapter:
8(1) “Reservist” means either of the following:
9(A) A member of the militia, as
defined in Section 120, called
10or ordered into state military service pursuant to Section 143 or
11Section 146, or in federal or state military service pursuant to Title
1210 or Title 32 of the United States Code.
13(B) A reservist of the United States Military Reserve who has
14been ordered to full-time federal active duty by the President of
15the United States pursuant to Title 10 of the United States Code.
16(2) “Military service” means either of the following:
17(A) Full-time active state service or full-time active federal
18service of a service member who is a member of the militia, as
19described in subparagraph (A) of paragraph (1).
20(B) Full-time active duty of a service
member who is a reservist,
21as described in subparagraph (B) of paragraph (1), for a period of
2230 consecutive days.
Section 809 of the Military and Veterans Code is
24repealed.
Section 811 of the Military and Veterans Code is
26amended to read:
(a) The spouse or legal dependent, or both, of a reservist
28who is called to active duty, shall be entitled to the benefits
29accorded to a reservist under this chapter, provided that the reservist
30is eligible for the benefits.
31(b) This chapter applies only to an obligation specified in this
32chapter that was incurred prior to the date that a reservist was
33called to active duty.
No reimbursement is required by this act pursuant to
35Section 6 of Article XIII B of the California Constitution for certain
36costs that may be incurred by a local agency or school district
37because, in that regard, this act creates a new crime or infraction,
38eliminates a crime or infraction, or changes the penalty for a crime
39or infraction, within the meaning of Section 17556 of the
40Government Code, or changes the definition of a crime within the
P6 1meaning of Section 6 of Article XIII B of the California
2Constitution.
3However, if the Commission on State Mandates determines that
4this act contains other
costs mandated by the state, reimbursement
5to local agencies and school districts for those costs shall be made
6pursuant to Part 7 (commencing with Section 17500) of Division
74 of Title 2 of the Government Code.
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