Today's Law As Amended


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SB-1284 Military reserves: benefits: Operation Enduring Freedom.(2001-2002)



As Amends the Law Today


SECTION 1.

 The heading of Chapter 3 (commencing with Section 800) of Division 4 of the Military and Veterans Code is amended to read:

CHAPTER  3. United States Military Reserve: Operation Enduring Freedom

SEC. 2.

 Section 800 of the Military and Veterans Code is repealed.

800.
 (a) 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 may defer payments on any of the following obligations while serving on active duty:
(1) An obligation secured by a mortgage or deed of trust.
(2) Credit card, as defined in Section 1747.02 of the Civil Code.
(3) Retail installment contract, as defined in Section 1802.6 of the Civil Code.
(4) Retail installment account, installment account, or revolving account, as defined in Section 1802.7 of the Civil Code.
(5) Up to two vehicle loans. For purposes of this chapter, “vehicle” means a vehicle as defined in Section 670 of the Vehicle Code.
(6) A 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.
(7) An obligation owed to a utility company.
(8) A student loan.
(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 written request by or on behalf of the reservist for a deferment of financial obligations. For purposes of this subparagraph, “written request” includes an electronic communication.
(B) A copy of the reservist’s military orders.
(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. However, any mortgage payments deferred pursuant to this section are due and payable upon 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 deferral of payments under this section.
(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.
(g) The deferment of payments on an obligation does not limit the ability of the reservist or any other person to make payments on the obligation.

SEC. 3.

 Section 800 is added to the Military and Veterans Code, to read:

800.
 The Legislature finds and declares that, due to national emergencies declared by the President or otherwise authorized by law, pursuant to Operation Enduring Freedom, members of the United States Military Reserve who are residents of California have been and will be called to active duty to serve their country. This sudden and unexpected call to arms has caused unavoidable financial and emotional hardship for those reservists, their families, and their dependents. Many of these reservists have suffered directly from substantial personal income reductions. It is the intent of the Legislature, in enacting this chapter, to provide for emergency economic relief to the reservists of this state who have been called to active duty during the crisis resulting from the sudden, unexpected, and vicious attacks on the United States in New York City and the Pentagon, and the threat of further attacks on the United States, known as Operation Enduring Freedom.

SEC. 4.

 Section 801 of the Military and Veterans Code is amended to read:

801.
 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 of this state who is called into active duty as a result of Operation Enduring Freedom may delay payments on any of the following obligations while serving on active duty, if the reservist or the reservist’s dependent or designee delivers to the lender or company servicing the obligation a letter or other comparable evidence from the reservist’s employer 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, until 30 days after the reservist is released from active duty, not to exceed 180 days:
(a) (1) Principal and interest payments on a mortgage, as defined in Section 2920 of the Civil Code.
(2) Credit card as defined in Section 1747.02 of the Civil Code.
(3) Retail installment contract as defined in Section 1802.6 of the Civil Code.
(4) Retail installment account, installment account, or revolving account as defined in Section 1802.7 of the Civil Code.
(5) Any loan subject to the Automobile Sales Finance Act (Chapter 2b (commencing with Section 2981) of Part 4 of Division 3 of Title 14 of the Civil Code).
For (6)   purposes of this chapter, “mortgage” means an obligation secured by a mortgage or deed of trust, and is limited to an obligation secured by a mortgage or deed of trust for  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 into to  active duty.  
(b) Upon request of the reservist or the reservist’s dependent or designee and within five working days of that request, 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.

SEC. 5.

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

803.
 The following definitions apply for purposes of this chapter:
(a) “Reservist” means either of the following:
(1) A member of the militia, as defined in Section 120, called or ordered into state military service pursuant to Section 143 or 146 or federal law.
(2) For  A member of a reserve component of the Armed Forces of the United States, as defined by Section 101 of Title 10 of the United States Code, who is ordered   purposes of this chapter, “reservist” means a member of the United States Military Reserve who has been called  to active duty pursuant to federal law. as a result of Operation Enduring Freedom. 
(b) “Military orders” means, with respect to a service member, official military orders, or any notification, certification, or verification from the service member’s commanding officer, with respect to the service member’s current or future military duty status.
(c) “Military service” means either of the following:
(1) 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 paragraph (1) of subdivision (a).
(2) Full-time active duty of a service member who is a reservist, as described in paragraph (2) of subdivision (a), for a period of no less than 30 consecutive days.

SEC. 6.

 Section 810 of the Military and Veterans Code is amended to read:

810.
 In those instances where a financial obligation covered by this chapter is sold, any requirement to defer payments as specified in this chapter transfers to the purchaser of the obligation. This chapter shall not apply to any active duty voluntarily served after the close of Operation Enduring Freedom. 
SEC. 7.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because 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.
SEC. 8.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to provide economic relief to members of the United States Military Reserve of this state who were and will be called into active duty as a result of Operation Enduring Freedom, the crisis caused by the September 11, 2001, attack upon the United States, it is necessary for this act to take effect immediately.