California Legislature—2015–16 Regular Session

Assembly BillNo. 2562


Introduced by Committee on Veterans Affairs

February 19, 2016


An act to amend Sections 800 and 803 of the Military and Veterans Code, relating to military service.

LEGISLATIVE COUNSEL’S DIGEST

AB 2562, as introduced, Committee on Veterans Affairs. Military service: benefits.

Existing law authorizes a reservist, as defined, who is called to active duty on and after January 1, 2014, to defer payments on mortgages, credit cards, retail installment accounts and contracts, real property taxes and assessments, vehicle leases, and obligations owed to utility companies, for the period of active duty plus 60 calendar days, or 180 days, whichever is the lesser, as specified. Existing law authorizes similar provisions to a reservist who was called to active duty before January 1, 2014, as a part of the Iraq and Afghanistan conflicts.

This bill would delete references to the date a reservist is called to active duty, in both the definition of a reservist and the payment deferral provisions, thereby making the above-described benefits available to any reservist who otherwise meets the definition.

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:

begin delete
P2    1

800.  

(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

end delete
23begin insert

begin insert800.end insert  

end insert

begin insert(a)end insertbegin insertend insertbegin insertSubjectend insert to subdivision (b), in addition to any other
24benefits provided by law and to the extent permitted by federal
25law, a reservist who is called to active dutybegin delete on and after January
261, 2014,end delete
may defer payments on any of the following obligations
27while serving on active duty:

begin delete

28(A)

end delete

29begin insert(1)end insert An obligation secured by a mortgage or deed of trust.

begin delete

30(B)

end delete

31begin insert(2)end insertbegin deleteCredit card end deletebegin insertCredit Card, end insertas defined in Section 1747.02 of
32the Civil Code.

begin delete

33(C)

end delete

34begin insert(3)end insert Retail installmentbegin delete contractend deletebegin insert contract,end insert as defined in Section
351802.6 of the Civil Code.

begin delete

36(D)

end delete

37begin insert(4)end insert Retail installment account, installment account, or revolving
38begin delete accountend deletebegin insert account,end insert as defined in Section 1802.7 of the Civil Code.

begin delete

39(E)

end delete

P3    1begin insert(5)end insert Up to two vehicle loans. For purposes of this chapter,
2“vehicle” means a vehicle as defined in Section 670 of the Vehicle
3Code.

begin delete

4(F) Any

end delete

5begin insert(6)end insertbegin insertend insertbegin insertAend insert payment of property tax or any special assessment of
6in-lieu property tax imposed on real property that is assessed on
7residential property owned by the reservist and used as that
8reservist’s primary place of residence on the date the reservist was
9ordered to active duty.

begin delete

10(G)  Any

end delete

11begin insert(7)end insertbegin insertend insertbegin insertAnend insert obligation owed to a utility company.

12(b) (1) In order for an obligation or liability of a reservist to be
13subject to the provisions of this chapter, the reservist or the
14reservist’s designee shall deliver to the obligor both of the
15following:

16(A) A letter signed by the reservist, under penalty of perjury,
17requesting a deferment of financial obligations.

18(B) A copy of the reservist’s activation or deployment order
19and any other information that substantiates the duration of the
20service member’s military service.

21(2) If required by a financial institution, proof that the reservist’s
22employer does not provide continuing income to the reservist while
23the reservist is on active military duty, including the reservist’s
24military pay, of more than 90 percent of the reservist’s monthly
25salary and wage income earned before the call to active duty.

26(c) Upon request of the reservist or the reservist’s dependent or
27designee and within five working days of that request, if applicable,
28the employer of a reservist shall furnish the letter or other
29comparable evidence showing that the employer’s compensation
30policy does not provide continuing income to the reservist,
31including the reservist’s military pay, of more than 90 percent of
32the reservist’s monthly salary and wage income earned before the
33call to active duty.

34(d) The deferral period on financial obligations shall be the
35lesser of 180 days or the period of active duty plus 60 calendar
36days and shall apply only to those payments due subsequent to the
37notice provided to a lender as provided in subdivision (b). In
38addition, the total period of the deferment shall not exceed 180
39days within a 365-day period.

P4    1(e) If a lender defers payments on a closed end credit obligation
2or an open-end credit obligation with a maturity date, pursuant to
3this chapter, the lender shall extend the term of the obligation by
4the amount of months the obligation was deferred.

5(f) If a lender defers payments on an open-end credit obligation
6pursuant to this chapter, the lender may restrict the availability of
7additional credit with respect to that obligation during the term of
8the deferral.

9

SEC. 2.  

Section 803 of the Military and Veterans Code is
10amended to read:

begin delete
11

803.  

(a) Before January 1, 2014, for purposes of this chapter,
12“reservist” means a member of the United States Military Reserve
13or National Guard of this state called to active duty as a result of
14the Iraq conflict pursuant to the Authorization for Use of Military
15Force Against Iraq Resolution of 2002 (Public Law 107-243) or
16the Afghanistan conflict pursuant to Presidential Order No. 13239.

17(b) On and after January 1, 2014, for purposes of this chapter:

end delete
18begin insert

begin insert803.end insert  

end insert
begin insert

The following definitions apply for purposes of this
19chapter:

end insert
begin delete

20(1)

end delete

21begin insert(a)end insert “Reservist” means either of the following:

begin delete

22(A)

end delete

23begin insert(1)end insert A member of the militia, as defined in Section 120, called
24or ordered into state military service pursuant to Section 143 or
25Section 146, or in federal or state military service pursuant to Title
2610 or Title 32 of the United States Code.

begin delete

27(B)

end delete

28begin insert(2)end insert A reservist of the United States Military Reserve who has
29been ordered to full-time federal active duty by the President of
30the United States pursuant to Title 10 of the United States Code.

begin delete

31(2)

end delete

32begin insert(b)end insert “Military service” means either of the following:

begin delete

33(A)

end delete

34begin insert(1)end insert Full-time active state service or full-time active federal
35service of a service member who is a member of the militia, as
36described in subparagraph (A) of paragraph begin delete(1).end deletebegin insert (1) of subdivision
37(a).end insert

begin delete

38(B)

end delete

P5    1begin insert(2)end insert Full-time active duty of a service member who is a reservist,
2as described inbegin delete subparagraph (B) of paragraph (1),end deletebegin insert paragraph (2)
3of subdivision (a)end insert
for a period of 30 consecutive days.



O

    99