Calif. AB-3212 Extends Repossession Protection
SACRAMENTO – California Attorney General Xavier Becerra has applauded Gov. Jerry Brown’s signing of Assembly Bill 3212, a measure that will strengthen California’s existing consumer protections for service members and military families, including California National Guard soldiers and airmen.
Attorney General Becerra sponsored the bill and worked closely with the bill’s author, Assemblymember Jacqui Irwin, to shepherd it through the Legislature.
AB 3212 extends the length of time that service members are protected against foreclosure, eviction, repossession, and default judgments.
Assembly Bill No. 3212 |
CHAPTER 555 |
LEGISLATIVE COUNSEL’S DIGEST
DIGEST KEY
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes
BILL TEXT
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1.
Section 400 of the Military and Veterans Code is repealed.
SEC. 2.
Section 400 is added to the Military and Veterans Code, to read:
400.
For the purposes of this chapter, the following definitions apply:
SEC. 3.
Section 401 of the Military and Veterans Code is amended to read:
401.
(a) Application by a service member for, or receipt by a service member of, a stay, postponement, or suspension pursuant to this chapter in the payment of any tax, fine, penalty, insurance premium, or other civil obligation or liability of that person shall not itself, without regard to other considerations, provide the basis for any of the following:
SEC. 4.
Section 402 of the Military and Veterans Code is amended to read:
402.
(a) In any action or proceeding commenced in any court, if there shall be a default of any appearance by the defendant, the plaintiff, before entering judgment shall file in the court a declaration under penalty of perjury setting forth facts showing that the defendant is not in the military service. If unable to file that declaration, the plaintiff shall, in lieu thereof, file a declaration setting forth either that the defendant is in the service or that the plaintiff is not able to determine whether or not the defendant is in the service. If a declaration is not filed showing that the defendant is not in the military service, no judgment shall be entered without first securing an order of court directing that entry, and no order shall be made if the defendant is in the military service until after the court appoints an attorney to represent the defendant and protect his or her interest, and the court shall, on application, make that appointment. If an attorney appointed under this section to represent a service member cannot locate the service member, actions by the attorney in the case shall not waive any defense of the service member or otherwise bind the service member. Unless it appears that the defendant is not in the military service the court may require, as a condition before judgment is entered, that the plaintiff file a bond approved by the court conditioned to indemnify the defendant, if in the military service, against any loss or damage that he or she may suffer by reason of any judgment should the judgment be thereafter set aside in whole or in part. The court may make such other and further order or enter that judgment as in its opinion may be necessary to protect the rights of the defendant under this section.
SEC. 5.
Section 403 of the Military and Veterans Code is amended to read:
403.
(a) At any stage in any action or proceeding in which a service member is involved, either as plaintiff or defendant, during a period of military service or within 120 days thereafter, the court may, in its discretion on its own motion, and shall, on application to it by the service member or some person on his or her behalf, stay the action or proceeding unless, in the opinion of the court, the ability of the plaintiff to prosecute the action or the defendant to conduct his or her defense is not materially affected by reason of his or her military service.
SEC. 6.
Section 404 of the Military and Veterans Code is amended to read:
404.
(a) A period of military service shall not be included in computing any period now or hereafter to be limited by any law, regulation, or order for the bringing of any action or proceeding in any court, board, bureau, commission, department, or other agency of government by or against any service member or by or against his or her heirs, executors, administrators, or assigns, whether the cause of action or the right or privilege to institute the action or proceeding accrued prior to or during the period of service, nor shall any part of the period be included in computing any period now or hereafter provided by any law for the redemption of real property sold or forfeited to enforce any obligation, tax, or assessment.
SEC. 7.
Section 405 of the Military and Veterans Code is amended to read:
405.
(a) No obligation or liability bearing interest at a rate in excess of 6 percent per year incurred by a service member before that person’s current period of military service shall, except as provided in subdivision (b), bear interest at a rate in excess of 6 percent per year as follows:
SEC. 8.
Section 406 of the Military and Veterans Code is amended to read:
406.
(a) No eviction or distress shall be made during the period of military service specified in Section 400, until 120 days after the service member is released from active service or duty if the premises are occupied primarily for dwelling purposes by the spouse, children, or other dependents of a service member, except upon leave of court granted upon application therefor or granted in an action or proceeding affecting the right of possession.
SEC. 9.
Section 407 of the Military and Veterans Code is amended to read:
407.
(a) No person who has received, or whose assignor has received, under a contract for the purchase of real or personal property, a deposit or installment of the purchase price, or a deposit or installment under the contract, from a person or from the assigner of a person who, after the date of payment of the deposit or installment, has entered into a period of military service, shall exercise any right or option under that contract to rescind or terminate the contract or resume possession of the property for nonpayment of any installment due or for any other breach of its terms occurring prior to or during the period of that military service, or for 120 days thereafter, except by action in a court of competent jurisdiction.
SEC. 10.
Section 408 of the Military and Veterans Code is amended to read:
408.
(a) This section shall apply only to obligations secured by mortgage, trust deed, or other security in the nature of a mortgage upon real or personal property owned by a service member.
SEC. 11.
Section 409 of the Military and Veterans Code is repealed.
SEC. 12.
Section 409 is added to the Military and Veterans Code, to read:
409.
(a) The lessee on a lease described in subdivision (b) may, at the lessee’s option, terminate the lease at any time after the lessee’s entry into military service, or the date of the lessee’s military orders described in subdivision (b). A lessee’s termination of a lease pursuant to this subdivision shall terminate any obligation a dependent of the lessee has under the lease.
SEC. 13.
Section 409.1 of the Military and Veterans Code is amended to read:
409.1.
(a) Where any life insurance policy on the life of a service member in military service has been assigned prior to that person’s period of military service to secure the payment of any obligation of the person, no assignee of the policy, except the insurer in connection with a policy loan, shall, during the period of military service of the insured or within one year thereafter, except upon the consent in writing of the insured made during that period or when the premiums thereon are due and unpaid or upon the death of the insured, exercise any right or option by virtue of that assignment unless upon leave of court granted upon an application made therefor by the assignee. The court may thereupon refuse to grant that leave unless in the opinion of the court the ability of the obligor to comply with the terms of the obligation is not materially affected by reason of his or her military service.
SEC. 14.
Section 409.2 of the Military and Veterans Code is amended to read:
409.2.
(a) This section shall apply when any taxes or assessments, whether general or special, other than taxes on income, whether falling due prior to or during his or her most current period of military service, in respect of personal property, money, or credits, or real property owned and occupied for dwelling, professional, business, or agricultural purposes by a service member or his or her dependents at the commencement of the service member’s most current period of military service and still so occupied by the service member’s dependents or employees are not paid.
SEC. 15.
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 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 before or during his or her most current period of military service.
SEC. 16.
Section 409.4 of the Military and Veterans Code is amended to read:
409.4.
(a) A person who by reason of military service is entitled to the rights and benefits of this chapter shall also be entitled upon release from that current period of military service to reinstatement of any health insurance that was in effect on the day before the current period of service commenced, and was terminated effective on a date during the period of the service.
SEC. 17.
Section 409.15 is added to the Military and Veterans Code, to read:
409.15.
(a) Any person who receives a good faith request from a service member for relief pursuant to this chapter and who believes the request is incomplete or otherwise not legally sufficient, or that the service member is not entitled to the relief requested, shall, within 30 days of the request, provide the service member with a written response acknowledging the request, setting forth the person’s basis for believing or asserting that the request is incomplete or not legally sufficient, or that the service member is not entitled to the relief requested. The response shall clearly identify the specific information or materials that are missing from the request and that would be required to grant the relief requested, and provide contact information, including a mailing address and telephone number, which the service member can use to contact the person.
SEC. 18.
Section 800 of the Military and Veterans Code is amended to read:
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:
SEC. 18.5.
Section 800 of the Military and Veterans Code is amended to read:
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:
SEC. 19.
Section 803 of the Military and Veterans Code is amended to read:
803.
The following definitions apply for purposes of this chapter:
SEC. 20.
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.
SEC. 21.
Section 813 is added to the Military and Veterans Code, to read:
813.
(a) Any person who receives a good faith request from a service member for relief pursuant to this chapter and who believes the request is incomplete or otherwise not legally sufficient, or that the service member is not entitled to the relief requested, shall, within 30 days of the request, provide the service member with a written response acknowledging the request, setting forth the person’s basis for believing or asserting that the request is incomplete or not legally sufficient, or that the service member is not entitled to the relief requested. The response shall clearly identify the specific information or materials that are missing from the request and that would be required to grant the relief requested, and provide contact information, including a mailing address and telephone number, which the service member can use to contact the person.
SEC. 22.
Section 821 of the Military and Veterans Code is amended to read:
821.
For purposes of this chapter, the following definitions apply:
SEC. 23.
Section 822 of the Military and Veterans Code is amended to read:
822.
No county recorder in this state may impose a fee for the recordation of a power of attorney to act as the agent for a service member.
SEC. 24.
Section 823.5 of the Military and Veterans Code is amended to read:
823.5.
(a) No person or entity licensed under the Business and Professions Code, Corporations Code, Financial Code, or Insurance Code shall market financial services or products to a service member or former service member, or the spouse of a service member or former service member, in a misleading or deceptive manner that suggests any of the following:
SEC. 25.
Section 824 of the Military and Veterans Code is amended to read:
824.
(a) An institution shall, upon request, grant an academic leave of absence for military service to any student who is a member of the active militia, as defined by Section 120, or 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 to active duty pursuant to Section 143 or 146 or federal law.
SEC. 26.
Section 826 of the Military and Veterans Code is amended to read:
826.
(a) On or after the effective date of the act adding this chapter, any service member who terminates a motor vehicle lease pursuant to the federal Servicemembers Civil Relief Act, or pursuant to Section 409, shall be allowed by the lessor to make payment of any arrearages and other obligations that are due and unpaid at the time of termination of the lease in equal installments over a period equal to at least the period of military service.
SEC. 27.
Section 827 of the Military and Veterans Code is amended to read:
827.
(a) A qualified customer may apply for and shall receive shutoff protection from a service provider for a period of 180 days. The service provider may grant extensions after the initial 180-day period.
SEC. 28.
Section 830 is added to the Military and Veterans Code, to read:
830.
(a) Any person who receives a good faith request from a service member for relief pursuant to this chapter and who believes the request is incomplete or otherwise not legally sufficient, or that the service member is not entitled to the relief requested, shall, within 30 days of the request, provide the service member with a written response acknowledging the request, setting forth the person’s basis for believing or asserting that the request is incomplete or not legally sufficient, or that the service member is not entitled to the relief requested. The response shall clearly identify the specific information or materials that are missing from the request and that would be required to grant the relief requested, and provide contact information, including a mailing address and telephone number, which the service member can use to contact the person.
SEC. 29.
Section 18.5 of this bill incorporates amendments to Section 800 of the Military and Veterans Code proposed by both this bill and Assembly Bill 2521. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 800 of the Military and Veterans Code, and (3) this bill is enacted after Assembly Bill 2521, in which case Section 18 of this bill shall not become operative.
SEC. 30.
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.