BILL ANALYSIS �
AB 526
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 526 (Melendez)
As Amended June 14, 2013
Majority vote
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|ASSEMBLY: |76-0 |(April 25, |SENATE: |38-0 |(August 15, |
| | |2013) | | |2013) |
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Original Committee Reference: V.A.
SUMMARY : Adds financial protections including a deferral period on
certain obligations for Reserve and California National Guard
servicemembers, their spouses and legal dependents, expands scope of
eligibility for protections.
The Senate amendments clarify that the total period of the deferment
shall not exceed 180 days within a 365-day period.
AS PASSED BY THE ASSEMBLY , this bill provided for certain specified
financial protections for Reserve and California National Guard
servicemembers called to active duty. The deferral period on the
financial obligations in the bill as it left the Assembly was to be
the lesser of 180 days or the period of active duty plus 60 calendar
days and applicable only to those payments due subsequent to the
notice provided to a lender as specified.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
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, it may
be difficult or impossible for servicemembers to manage financial
obligations remotely and that, particularly in combat zones, they
may be under extreme stress already.
The Legislature may wish to balance these considerations with the
importance of our society in honoring contractual obligations made
in the course of commerce. The current policy 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. The Senate amendment balances the need for
AB 526
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easy expedited obligation deferral and prompt financial relief on
the part of the servicemember with the concern of the obligee and
creditor to receive timely payment or compliance. If the
servicemember needs longer term or more complex financial
protections, these may be found in Military and Veterans Code
Section 400 et. seq., which includes judicial review and
particularized determinations. The Senate amendment is consistent
with the Assembly actions on this bill.
The language passed by the Assembly is left intact in the Senate
version, the only change is the addition of the "cap" on the maximum
number of possible deferral days in a 365 day period.
Analysis Prepared by : John Spangler / V.A. / (916) 319-3550
FN: 0001643