BILL ANALYSIS                                                                                                                                                                                                    

                                                                SB 285
                                                                Page  1


        SENATE THIRD READING
        SB 285 (Wright)
        As Amended  August 17, 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.

        3)Provides that the provisions in 2) above do not apply to veterans'  
          service-connected disability benefits that are subject to child  
          and spousal support enforcement as provided by federal law, as  
          specified.

         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  






                                                                SB 285
                                                                Page  2


          beneficiary.  

        2)Provides for the procedure by which a plaintiff may request 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:  
        0001921