BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 285
                                                                  Page  1


          SENATE THIRD READING
          SB 285 (Wright)
          As Amended July 1, 2009
          Majority vote 

           SENATE VOTE  :37-0  
           
           JUDICIARY           10-0                                        
           
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          |Ayes:|Feuer, Tran, Brownley,    |     |                          |
          |     |Evans, Jones, Knight,     |     |                          |
          |     |Krekorian, Lieu, Monning, |     |                          |
          |     |Silva                     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Seeks to ensure that California law regarding  
          veterans' disability benefits conforms to existing federal law  
          which protects such benefits from creditors and attachments.   
          Specifically,  this bill : 

          1)States that it is the intent of the Legislature to enact  
            legislation to conform with existing federal law that  
            prohibits veterans' disability payments or benefits from being  
            assigned, or liable to attachment, levy, or seizure under any  
            legal or equitable process.

          2)Provides that federal disability benefits awarded to veterans  
            for service-connected disabilities shall be exempt from the  
            claims of creditors, and shall not be liable to attachment,  
            levy, or seizure by or under any legal or equitable process  
            whatsoever, as provided by federal law.

           EXISTING LAW  :

          1)Provides, under federal law, that payments or benefits due or  
            to become due under any law administered by the Secretary of  
            Veterans Affairs are exempt from claims of creditors; and,  
            will not be liable to attachment, levy, or seizure by or under  
            any legal or equitable process whatever, either before or  
            after receipt by the beneficiary.  

          2)Provides for the procedure by which a plaintiff may request  








                                                                  SB 285
                                                                 Page  2


            that a defendant's property be attached in a civil action.  
           
          FISCAL EFFECT  :  None
           
          COMMENTS  :  The author states that although federal law clearly  
          prohibits the attachment of federal disability benefits,  
          California courts continue inappropriately to mistakenly attach  
          such benefits.  The author states, "Very often these payments  
          are the only assets a veteran may have.  Unlawful attachment  
          creates hardship for those veterans who rarely have the  
          resources to hire legal help to contest the taking of their  
          benefits."  

          This bill would ensure that California law conforms with federal  
          law.  The language of this bill essentially mirrors the language  
          of the federal statute.  


           Analysis Prepared by  :  Drew Liebert / JUD. / (916) 319-2334 
                                                                FN: 0001770