Bill Text: CA SB720 | 2013-2014 | Regular Session | Amended

California Senate Bill 720 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Military service: benefits.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State. Chapter 220, Statutes of 2013. [SB720 Detail]

Download: California-2013-SB720-Amended.html

BILL NUMBER: SB 720	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 4, 2013

INTRODUCED BY   Senator Correa

                        FEBRUARY 22, 2013

    An act to amend Section 51 of the Military and Veterans
Code, relating to the Military Department.   An act to
amend Section 409.3 of the Military and Veterans Code, relating to
military service. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 720, as amended, Correa.  Military Department.
  Military service: benefits.  
   Existing law authorizes a service member to apply to the court for
relief of an obligation, liability, tax, or assessment, as
specified. Existing law authorizes, in the case of an obligation
payable under its terms in installments under a contract for the
purchase of real estate, or secured by a mortgage or other
instrument, as specified, a stay of the enforcement of the obligation
during the applicant's period of military service and, from the date
of termination of the period of military service or from the date of
the application if made after the service, for a period equal to the
period of the remaining life of the installment contract or other
instrument plus a period of time equal to the period of military
service of the applicant or any part of the combined period, as
specified.  
   This bill would instead authorize, in the case of an obligation
payable under its terms in installments under a contract for the
purchase of real estate, or secured by a mortgage or other
instrument, a deferment of the payments on the obligation during the
service member's period of military service, or should the service
member request such relief after the start of his or her current
period of military service, or within 6 months thereafter, a
deferment of such payments for a period of time equal to the period
of military service starting from the date of application, as
specified. The bill would prohibit penalties from being imposed on
the nonpayment of principal or interest during this period and
interest from being charged or accumulated on the principal or
interest on which the payment was delayed. The bill would also
prohibit foreclosure or repossession of property on which payment has
been deferred, as specified. The bill would require mortgage
payments deferred during this period to be due and payable upon the
occurrence of specified conditions. The bill would provide that a
service member with a mortgage subject to an impound account for the
payment of property taxes, special assessments, and certain insurance
shall not be relieved from making monthly payments, as specified,
and that a service member shall not be precluded from making payments
toward mortgage payments deferred, as specified.  
   Existing law establishes in state government the Military
Department, which includes the office of the Adjutant General, the
State Military Reserve, the California Cadet Corps, and the Naval
Militia.  
   This bill would make nonsubstantive changes to this provision.

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


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 409.3 of the  
Military and Veterans Code   is amended to read: 
   409.3.  (a) A service member may, at any time during his or her
most current period of military service or within six months
thereafter, petition a court for relief in respect of any obligation
or liability incurred by the service member  prior to
  before  the effective date of the orders for his
or her most current period of military service or in respect of any
tax or assessment whether falling due  prior to 
 before  or during his or her most current period of
military service.
   (b) The court shall set a hearing on the petition within 25 days
from the date the petition is filed, unless the court shows good
cause for extending the date of the hearing. The petition shall be
served at least 10 days before the hearing. The respondent shall file
and serve a response to the petition at least five days before the
hearing.
   (c) The court shall not charge a filing fee or court costs for a
petition filed pursuant to this section.
   (d) The court, after notice and hearing,  unless in its
opinion the ability of the petitioner   if the court
finds the ability of the service member  to comply with the
terms of  the   any such  obligation or
 liability   liability,  or to pay the tax
or  assessment   assessment,  has 
not  been materially affected by reason of  orders for
 his or her most current period of military service, may grant
the following relief:
   (1) In the case of an obligation payable under its terms in
installments under a contract for the purchase of real estate, or
secured by a mortgage or other instrument in the nature of a mortgage
upon real estate, a  stay   deferment  of
the  enforcement of   payments on  the
obligation during the  applicant's   service
member's  period of military service  and, from the date
of termination of the period of military service or   ,
  or should the service member request such relief after
the start of his or her current period of military service, or within
six months thereafter, a deferment of such payments for a period of
time equal to the period of military service starting  from the
date of application  if made after the service, for a period
equal to the period of the remaining life of the installment contract
or other instrument plus a period of time equal to the period of
military service of the applicant or any part of the combined period,
subject to payment of the balance of principal and accumulated
interest due and unpaid at the date of termination of the period of
military service or from the date of application, as the case may be,
  even if such payments extend beyond the termination
of the current period of military service. The obligation  
shall be extended for the period of time that payments were deferred,
and the deferred principal shall be paid  in equal installments
during the combined period at the rate of interest on the unpaid
balance as is prescribed in the contract, or other instrument
evidencing the obligation, for installments paid when due, and
subject to any other terms as may be just.
   (2) In the case of any other obligation, liability, tax, or
assessment, a  stay of the enforcement thereof  
deferment of any payments on the obligation  during the
 applicant's   service member's  period of
military service and, from the date of termination of the period of
military service or from the date of application if made after the
service, for a period of time equal to the period of military service
of the applicant or any part of that period, subject to payment of
the balance of principal and accumulated interest due and unpaid at
the date of termination of the period of military service or the date
of application, as the case may be, in equal periodic installments
during the extended period at the rate of interest as may be
prescribed for the obligation, liability, tax, or assessment, if paid
when due, and subject to any other terms as may be just.
   (e) (1) When any court has granted a  stay  
deferment  as provided in this section, no fine or penalty shall
accrue during the period the terms and conditions of the 
stay   deferment  are complied with by reason of
failure to comply with the terms or conditions of the obligation,
liability, tax, or assessment in respect of which the  stay
  deferment  was granted  , including penalties
on the nonpayment of principal or interest during this period.
Interest shall not be charged or accumulated on the principal or
interest on which the payment was delayed.   Foreclosure or
repossession of property on which payment has been deferred shall not
take place during the period specified in this section  .
   (2) If a person has charged or accrued a fine or penalty in
violation of paragraph (1), that person shall be liable for actual
damages, reasonable attorney's fees, and costs incurred by the
injured party as a result of the violation. 
   (f) Notwithstanding subdivision (d), any mortgage payments
deferred pursuant to this section are due and payable upon the
earlier of the following:  
   (1) The sale of the property or other event specified in the
documents creating the obligation permitting the lender to accelerate
the loan, other than a deferment of payments authorized by this
section.  
   (2) Further encumbrance of the property other than for
preservation or protection of the property.  
   (3) The maturity of the obligation, as defined under the terms of
the documents creating the obligation, or, if applicable, as extended
pursuant to subdivision (d).  
   (g) This section shall not relieve a service member with a
mortgage subject to an impound account for the payment of property
taxes, special assessments, mortgage insurance, and hazard insurance
from making monthly payments of an amount that is at least sufficient
to pay these amounts, unless the borrower and lender agree to a
lesser amount.  
   (h) This section shall not preclude a service member from making
payments toward the mortgage payments deferred before the occurrence
of any of the events in subdivision (d).  
   (f) 
    (i)   Nothing in this   This 
section shall  not  permit a service member ordered to
military service to obtain a delay, deferment, or stay on an
obligation to pay child support.  Nothing in this 
 This  section shall  not  preclude a service
member ordered to military service from seeking a modification of an
order to pay child support due to a reduction in income resulting
from the order to service, or from seeking the imposition of the
maximum interest rate provided by this chapter on arrearages in child
support payments existing  prior to   before
 the order to service. 
  SECTION 1.    Section 51 of the Military and
Veterans Code is amended to read:
   51.  The Military Department includes all of the following:
   (a) The office of the Adjutant General.
   (b) The California National Guard.
   (c) The State Military Reserve.
   (d) The California Cadet Corps.
   (e) The Naval Militia.