BILL NUMBER: AB 526 CHAPTERED
BILL TEXT
CHAPTER 236
FILED WITH SECRETARY OF STATE SEPTEMBER 6, 2013
APPROVED BY GOVERNOR SEPTEMBER 6, 2013
PASSED THE SENATE AUGUST 15, 2013
PASSED THE ASSEMBLY AUGUST 19, 2013
AMENDED IN SENATE JUNE 14, 2013
AMENDED IN ASSEMBLY APRIL 1, 2013
INTRODUCED BY Assembly Member Melendez
(Coauthors: Assembly Members Bigelow, Beth Gaines, Garcia, Gray,
Grove, Hagman, Harkey, Maienschein, Morrell, Wagner, and Wilk)
(Coauthors: Senators Nielsen and Knight)
FEBRUARY 20, 2013
An act to amend Sections 800, 803, and 811 of, and to repeal
Section 809 of, the Military and Veterans Code, relating to military
service.
LEGISLATIVE COUNSEL'S DIGEST
AB 526, Melendez. Military service: benefits.
Existing law authorizes, to the extent permitted by federal law,
members of the United States Military Reserve and National Guard who
are called to active duty as a result of the Iraq or Afghanistan
conflicts, to defer payments on mortgages, credit cards, retail
installment accounts and contracts, real property taxes and
assessments, and vehicle leases for the period of active duty, plus
60 calendar days, or 180 days, whichever is the lesser, as specified.
Existing law also requires any entity that was providing any type of
health care coverage to a member of the United States Military
Reserve or National Guard who is called to active duty as a result of
the Iraq or Afghanistan conflicts to reinstate the health care
coverage without waiting periods or exclusion of coverage for
preexisting conditions, and makes a violation of this requirement
subject to enforcement under the Knox-Keene Health Care Service Plan
Act of 1975, a willful violation of which is a crime. Existing law
also provides that a spouse or legal dependent, or both, of a member
is entitled to the benefits accorded to a member, if the member is
eligible for those benefits.
This bill would extend those deferral provisions and reinstatement
of health care coverage provisions to a reservist, as defined, who
is called to active duty on and after January 1, 2014, and to a
spouse or legal dependent, as specified. This bill would also
authorize the deferral of payments on any obligations owed to a
utility company. The bill would limit the deferment period on
financial obligations to not more than 180 days within a 365-day
period. This bill would also require a copy of the activation or
deployment orders and any other information that substantiates the
duration of the service member's military service to be delivered to
an obligor in order for an obligation of a reservist to be deferred,
as provided.
This bill would expand the scope of an existing crime by requiring
a reservist to provide information under the penalty of perjury, and
by making violations of the reinstatement of health care coverage
for reservists requirement subject to enforcement under the
Knox-Keene Health Care Service Plan Act of 1975, thereby imposing a
state-mandated local program. This bill would additionally impose a
state-mandated local program by imposing new duties upon local tax
officials with respect to the deferral of any payment of property tax
or any special assessment.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 800 of the Military and Veterans Code is
amended to read:
800. (a) (1) Subject to subdivision (b), in addition to any other
benefits provided by law and to the extent permitted by federal law,
any member of the United States Military Reserve or the National
Guard of this state who is called to active duty after the enactment
of this chapter and before January 1, 2014, as a part of the Iraq and
Afghanistan conflicts may defer payments on any of the following
obligations while serving on active duty:
(A) An obligation secured by a mortgage or deed of trust.
(B) Credit card as defined in Section 1747.02 of the Civil Code.
(C) Retail installment contract as defined in Section 1802.6 of
the Civil Code.
(D) Retail installment account, installment account, or revolving
account as defined in Section 1802.7 of the Civil Code.
(E) Up to two vehicle loans. For purposes of this chapter,
"vehicle" means a vehicle as defined in Section 670 of the Vehicle
Code.
(F) Any payment of property tax or any special assessment of
in-lieu property tax imposed on real property that is assessed on
residential property owned by the reservist and used as that
reservist's primary place of residence on the date the reservist was
ordered to active duty.
(2) Subject to subdivision (b), in addition to any other benefits
provided by law and to the extent permitted by federal law, a
reservist who is called to active duty on and after January 1, 2014,
may defer payments on any of the following obligations while serving
on active duty:
(A) An obligation secured by a mortgage or deed of trust.
(B) Credit card as defined in Section 1747.02 of the Civil Code.
(C) Retail installment contract as defined in Section 1802.6 of
the Civil Code.
(D) Retail installment account, installment account, or revolving
account as defined in Section 1802.7 of the Civil Code.
(E) Up to two vehicle loans. For purposes of this chapter,
"vehicle" means a vehicle as defined in Section 670 of the Vehicle
Code.
(F) Any payment of property tax or any special assessment of
in-lieu property tax imposed on real property that is assessed on
residential property owned by the reservist and used as that
reservist's primary place of residence on the date the reservist was
ordered to active duty.
(G) Any obligation owed to a utility company.
(b) (1) In order for an obligation or liability of a reservist to
be subject to the provisions of this chapter, the reservist or the
reservist's designee shall deliver to the obligor both of the
following:
(A) A letter signed by the reservist, under penalty of perjury,
requesting a deferment of financial obligations.
(B) A copy of the reservist's activation or deployment order and
any other information that substantiates the duration of the service
member's military service.
(2) If required by a financial institution, proof that the
reservist's employer does not provide continuing income to the
reservist while the reservist is on active military duty, including
the reservist's military pay, of more than 90 percent of the
reservist's monthly salary and wage income earned before the call to
active duty.
(c) Upon request of the reservist or the reservist's dependent or
designee and within five working days of that request, if applicable,
the employer of a reservist shall furnish the letter or other
comparable evidence showing that the employer's compensation policy
does not provide continuing income to the reservist, including the
reservist's military pay, of more than 90 percent of the reservist's
monthly salary and wage income earned before the call to active duty.
(d) The deferral period on financial obligations shall be the
lesser of 180 days or the period of active duty plus 60 calendar days
and shall apply only to those payments due subsequent to the notice
provided to a lender as provided in subdivision (b). In addition, the
total period of the deferment shall not exceed 180 days within a
365-day period.
(e) If a lender defers payments on a closed end credit obligation
or an open-end credit obligation with a maturity date, pursuant to
this chapter, the lender shall extend the term of the obligation by
the amount of months the obligation was deferred.
(f) If a lender defers payments on an open-end credit obligation
pursuant to this chapter, the lender may restrict the availability of
additional credit with respect to that obligation during the term of
the deferral.
SEC. 2. Section 803 of the Military and Veterans Code is amended
to read:
803. (a) Before January 1, 2014, for purposes of this chapter,
"reservist" means a member of the United States Military Reserve or
National Guard of this state called to active duty as a result of the
Iraq conflict pursuant to the Authorization for Use of Military
Force Against Iraq Resolution of 2002 (Public Law 107-243) or the
Afghanistan conflict pursuant to Presidential Order No. 13239.
(b) On and after January 1, 2014, for purposes of this chapter:
(1) "Reservist" means either of the following:
(A) A member of the militia, as defined in Section 120, called or
ordered into state military service pursuant to Section 143 or
Section 146, or in federal or state military service pursuant to
Title 10 or Title 32 of the United States Code.
(B) A reservist of the United States Military Reserve who has been
ordered to full-time federal active duty by the President of the
United States pursuant to Title 10 of the United States Code.
(2) "Military service" means either of the following:
(A) Full-time active state service or full-time active federal
service of a service member who is a member of the militia, as
described in subparagraph (A) of paragraph (1).
(B) Full-time active duty of a service member who is a reservist,
as described in subparagraph (B) of paragraph (1), for a period of 30
consecutive days.
SEC. 3. Section 809 of the Military and Veterans Code is repealed.
SEC. 4. Section 811 of the Military and Veterans Code is amended
to read:
811. (a) The spouse or legal dependent, or both, of a reservist
who is called to active duty, shall be entitled to the benefits
accorded to a reservist under this chapter, provided that the
reservist is eligible for the benefits.
(b) This chapter applies only to an obligation specified in this
chapter that was incurred prior to the date that a reservist was
called to active duty.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
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