BILL ANALYSIS �
AB 526
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Date of Hearing: April 2, 2013
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Al Muratsuchi, Chair
AB 526 (Melendez) - As Amended: April 1, 2013
SUBJECT : Military service: benefits
SUMMARY : Adds financial protections for Reserve and California
National Guard servicemembers, their spouses and legal
dependents, expands scope of eligibility for protections.
Specifically, this bill :
Deletes the requirement that the servicemember must have served
in support of a conflict in Afghanistan or Iraq, any active duty
service is now eligible;
Adds utility payment obligations to the list of obligations
which may be deferred during active duty;
Requires that the servicemember deliver to the lender a copy of
his or her activation or deployment order and any other
information that substantiates the duration of the
servicemember's military service;
Defines reservist and military service:
(a) "Reservist" means either of the following:
(1) A member of the militia, as defined in Section
120, called or ordered into state military service
pursuant to Section 143 or 146, or in federal or state
military service pursuant to Title 10 or 32 of the
United States Code.
(2) A reservist of the United States Military Reserve
who has been ordered to full-time federal active duty
by the President of the United States pursuant to
Title 10 of the United States Code.
(b) "Military service" means either of the following:
(1) Full-time active state service or full-time active
federal service of a service member who is a member of
the militia, as described in paragraph (1) of
subdivision (a).
(2) Full-time active duty of a service member who is a
reservist, as described in paragraph (2) of
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subdivision (a), for a period of 30 consecutive days.
Deletes the requirement that active duty service after the close
of the Iraq or Afghanistan conflicts or active duty prior to the
effective date of Section 809 be excluded;
EXISTING LAW : Provides financial protections for reservists and
California National Guard members who are called to service in
support of the recent conflicts in Afganistan and Iraq. These
protections are extended also to spouses and legal dependents of
the servicemember. Servicemembers may defer certain financial
obligations, not paying these until their active duty orders are
complete. No interest or penalties may accrue. The servicemember
must still pay whatever amount is owed on the underlying
obligation. Only obligations incurred prior to being called to
active duty are deferrable.
FISCAL EFFECT : Unknown at this time.
COMMENTS : The policy underlying the existing deferral
protections is to recognize that in many cases the financial
impact to a reserve or National Guard servicemember of a call to
active duty is negative. Moreover, when such members are
deployed overseas, we recognize that it may be difficult or
impossible for them to manage financial obligations remotely and
that, particularly in combat zones, they may be under extreme
stress already without adding worry about finances back home. We
recognize their sacrifice. We balance those considerations with
the importance in our society of honoring contractual
obligations made in the course of commerce. Our policy decision
in California has been to allow servicemembers to defer certain
financial obligations but to require that they still honor their
commitments when they return from service.
This bill is in alignment with existing policy. Iraq and
Afghanistan are the most recent conflict venues but,
unfortunately, they are unlikely to be the last. Many of the
stresses mentioned above occur as a result of a call to active
service regardless of the location of the service. Therefore it
makes sense to extend these protections to servicemembers
without regard to the particular conflict or location in which
they serve.
Utility obligations are similar to the types of obligations
already deferrable under existing law: An obligation secured by
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a mortgage or deed of trust, credit card and other retail
installment payments, vehicle loans, and property taxes.
REGISTERED SUPPORT / OPPOSITION :
Support
The American Legion-Department of California
AMVETS- Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Vietnam Veterans of America, California State Council
Opposition
None at this time.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550