California Legislature—2015–16 Regular Session

Assembly BillNo. 583


Introduced by Assembly Member Chávez

February 24, 2015


An act to amend Section 800 of the Military and Veterans Code, relating to military service.

LEGISLATIVE COUNSEL’S DIGEST

AB 583, as introduced, Chávez. Military service: benefits.

Existing law authorizes members of the United States Military Reserve or the National Guard who are called to active duty as a result of the Iraq and Afghanistan conflicts, as specified, to defer payments on certain obligations while serving on active duty.

This bill would make technical, nonsubstantive changes to this provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 800 of the Military and Veterans Code
2 is amended to read:

3

800.  

(a) (1) Subject to subdivision (b), in addition to any other
4begin delete benefitsend deletebegin insert benefitend insert provided by law and to the extent permitted by
5federal law, any member of the United States Military Reserve or
6the National Guard of this state who is called to active duty after
7the enactment of this chapter and before January 1, 2014, as a part
8of the Iraq and Afghanistan conflicts may defer payments on any
9of the following obligations while serving on active duty:

P2    1(A) An obligation secured by a mortgage or deed of trust.

2(B) Credit card as defined in Section 1747.02 of the Civil Code.

3(C) Retail installment contract as defined in Section 1802.6 of
4the Civil Code.

5(D) Retail installment account, installment account, or revolving
6account as defined in Section 1802.7 of the Civil Code.

7(E) Up to two vehicle loans. For purposes of this chapter,
8“vehicle” means a vehicle as defined in Section 670 of the Vehicle
9Code.

10(F) Any payment of property tax or any special assessment of
11in-lieu property tax imposed on real property that is assessed on
12residential property owned by the reservist and used as that
13reservist’s primary place of residence on the date the reservist was
14ordered to active duty.

15(2) Subject to subdivision (b), in addition to any other benefits
16provided by law and to the extent permitted by federal law,begin delete aend deletebegin insert anyend insert
17 reservist who is called to active duty on and after January 1, 2014,
18may defer payments on any of the following obligations while
19serving on active duty:

20(A) An obligation secured by a mortgage or deed of trust.

21(B) Credit card as defined in Section 1747.02 of the Civil Code.

22(C) Retail installment contract as defined in Section 1802.6 of
23the Civil Code.

24(D) Retail installment account, installment account, or revolving
25account as defined in Section 1802.7 of the Civil Code.

26(E) Up to two vehicle loans. For purposes of this chapter,
27“vehicle” means a vehicle as defined in Section 670 of the Vehicle
28Code.

29(F) Any payment of property tax or any special assessment of
30in-lieu property tax imposed on real property that is assessed on
31residential property owned by the reservist and used as that
32reservist’s primary place of residence on the date the reservist was
33ordered to active duty.

34(G) Any obligation owed to a utility company.

35(b) (1) In order for an obligation or liability of a reservist to be
36subject to the provisions of this chapter, the reservist or the
37reservist’s designee shall deliver to the obligor both of the
38following:

39(A) A letter signed by the reservist, under penalty of perjury,
40requesting a deferment of financial obligations.

P3    1(B) A copy of the reservist’s activation or deployment order
2and any other information that substantiates the duration of the
3service member’s military service.

4(2) If required by a financial institution, proof that the reservist’s
5employer does not provide continuing income to the reservist while
6the reservist is on active military duty, including the reservist’s
7military pay, of more than 90 percent of the reservist’s monthly
8salary and wage income earned before the call to active duty.

9(c) Upon request of the reservist or the reservist’s dependent or
10designee and within five working days of that request, if applicable,
11the employer of a reservist shall furnish the letter or other
12comparable evidence showing that the employer’s compensation
13policy does not provide continuing income to the reservist,
14including the reservist’s military pay, of more than 90 percent of
15the reservist’s monthly salary and wage income earned before the
16call to active duty.

17(d) The deferral period on financial obligations shall be the
18lesser of 180 days or the period of active duty plus 60 calendar
19days and shall apply only to those payments due subsequent to the
20notice provided to a lender as provided in subdivision (b). In
21addition, the total period of the deferment shall not exceed 180
22days within a 365-day period.

23(e) If a lender defers payments on a closed end credit obligation
24or an open-end credit obligation with a maturity date, pursuant to
25this chapter, the lender shall extend the term of the obligation by
26the amount of months the obligation was deferred.

27(f) If a lender defers payments on an open-end credit obligation
28pursuant to this chapter, the lender may restrict the availability of
29additional credit with respect to that obligation during the term of
30the deferral.



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