By a vote of 32-1, the State Senate today approved SB 513, a bill by Senator Nell Soto (D – Pomona) to assist families of members of the California National Guard killed in the line of duty in state or federal service.

Under the provisions of SB 513, a beneficiary’s payments of interest and principal to private debts will simply be suspended for six months, with regular payments to resume at the end of that six month period.

“By allowing deferral of payments and interest accrual for that brief period, my bill would offer a small measure of relief to husbands, wives and children during a time of great emotional and financial hardship,” Soto said in testimony on the Senate floor.

“Currently, survivors are eligible to receive a standard death benefit of $12,000, which sometimes falls short of what is needed for coping with outstanding debt obligations,” Soto added. “In light of the unexpected increase in Guard members’ terms of service over the last year, the odds are now greater that a soldier’s death while on duty can have serious financial consequences for their survivors.

“My bill, which is limited to members of the California National Guard who die in the line of duty, would provide them temporary relief in recognition of their supreme sacrifice.”

SB 513 is supported by the National Guard Association of California but opposed by the California Bankers Association (CBA). CBA officials have said that they “do not see the nexus between addressing a statewide concern of providing spouses and beneficiaries of fallen Guardsmen needed financial resources and a mandate that financial institutions defer all financial obligations (principal and interest) for six months."