[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1814 Introduced in Senate (IS)]


109th CONGRESS
  1st Session
                                S. 1814

To amend the Servicemembers Civil Relief Act and the Housing and Urban 
 Development Act of 1968 to enhance protections for servicemembers and 
               their dependents, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2005

    Mr. Bayh introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Servicemembers Civil Relief Act and the Housing and Urban 
 Development Act of 1968 to enhance protections for servicemembers and 
               their dependents, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Servicemembers Home Protection Act 
of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Servicemembers and their families face overwhelming 
        challenges in their daily lives when servicemembers are called 
        to active duty, including financial hardship that can push 
        servicemember families to the brink of foreclosure or eviction.
            (2) Congress long ago recognized the special burden that 
        servicemembers encounter when their deployment impedes their 
        ability to meet previously incurred financial obligations and, 
        in enacting the Servicemembers Civil Relief Act in 2003, 
        restated and improved protections for servicemembers in the 
        predecessor to that Act, the Soldier' and Sailors' Civil Relief 
        Act of 1940.
            (3) The protections of the Servicemembers Civil Relief Act 
        are not uniformly applied because some lenders, debt 
        collectors, landlords, lawyers, and judges are either 
        unfamiliar with the Act or ignore it.
            (4) The Department of Defense does not adequately educate 
        servicemembers or their families regarding their rights under 
        the Servicemembers Civil Relief Act.
            (5) A lack of adequate information about the Servicemembers 
        Civil Relief Act means that servicemembers serving abroad are 
        distracted from their duties out of concern for the foreclosure 
        of their family homes, the eviction of their families from 
        their dwellings, or the repossession of their families 
        vehicles.

SEC. 3. CIVIL LIABILITY FOR NONCOMPLIANCE AND ENFORCEMENT OF 
              SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) General Civil Liability and Enforcement.--
            (1) In general.--The Servicemembers Civil Relief Act (50 
        U.S.C. App. 501 et seq.) is amended by adding at the end the 
        following new title:

    ``TITLE VIII--CIVIL LIABILITY FOR NONCOMPLIANCE AND ENFORCEMENT

``SEC. 801. CIVIL LIABILITY FOR NONCOMPLIANCE.

    ``(a) In General.--Any person or entity (other than a servicemember 
or dependent) who fails to comply with any requirement imposed by this 
Act with respect to a servicemember or dependent is liable to such 
servicemember or dependent in an amount equal to the sum of--
            ``(1) any actual damages sustained by such servicemember or 
        dependent as a result of the failure;
            ``(2) such amount of punitive damages as the court may 
        allow;
            ``(3) such amount of consequential damages as the court may 
        allow;
            ``(4) such additional damages as the court may allow, in an 
        amount not less than $100 or more than $5,000 (as determined 
        appropriate by the court), for each violation; and
            ``(5) in the case of any successful action to enforce 
        liability under this section, the cost of the action together 
        with reasonable attorneys fees as determined by the court.
    ``(b) Attorney Fees.--On a finding by the court that an 
unsuccessful pleading, motion, or other paper filed in connection with 
an action under this section was filed in bad faith or for the purposes 
of harassment, the court shall award to the prevailing party attorney 
fees in amount that is reasonable in relation to the work expended in 
responding to such pleading, motion, or other paper.

``SEC. 802. ADMINISTRATIVE ENFORCEMENT.

    ``(a) Enforcement by Federal Trade Commission.--(1) Except as 
provided in subsections (b), (c), and (d), compliance with the 
provisions of this Act shall be enforced by the Federal Trade 
Commission in accordance with the Federal Trade Commission Act with 
respect to entities and persons subject to the Federal Trade Commission 
Act.
    ``(2) For the purpose of the exercise by the Commission under this 
subsection of its functions and powers under the Federal Trade 
Commission Act, a violation of any requirement or prohibition imposed 
by this Act shall constitute an unfair or deceptive act or practice in 
commerce in violation of section 5(a) of the Federal Trade Commission 
Act, and shall be subject to enforcement by the Commission with respect 
to any entity or person subject to enforcement by the Commission 
pursuant to this subsection, irrespective of whether such person or 
entity is engaged in commerce or meets any other jurisdictional tests 
under the Federal Trade Commission Act.
    ``(3) The Commission shall have such procedural, investigative, and 
enforcement powers, including the power to issue procedural rules in 
enforcing compliance with the requirements imposed by this Act and to 
require the filing of reports, the production of documents, and the 
appearance of witnesses, as though the applicable terms and conditions 
of the Federal Trade Commission Act were part of this Act.
    ``(4) Any person or entity violating any provision of this Act 
shall be subject to the penalties, and entitled to the privileges and 
immunities, provided in the Federal Trade Commission Act as though the 
applicable terms and provisions of the Federal Trade Commission Act 
were part of this Act.
    ``(5)(A) The Commission may commence a civil action to recover a 
civil penalty in a district court of the United States against any 
person or entity that has engaged in such violation. In such action, 
such person or entity shall be liable, in addition to any amounts 
otherwise recoverable, for a civil penalty in the amount of $5,000 to 
$50,000, as determined appropriate by the court for each violation.
    ``(B) In determining the amount of a civil penalty under 
subparagraph (A), the court shall take into account the degree of 
culpability, any history of prior such conduct, ability to pay, effect 
on ability to continue to do business, and such other matters as 
justice may require.
    ``(b) Enforcement by Other Regulatory Agencies.--Compliance with 
the requirements imposed by this Act with respect to financial 
institutions shall be enforced under--
            ``(1) section 8 of the Federal Deposit Insurance Act, in 
        the case of--
                    ``(A) national banks, and Federal branches and 
                Federal agencies of foreign banks, and any subsidiaries 
                of such (except brokers, dealers, persons providing 
                insurance, investment companies, and investment 
                advisers) by the Office of the Comptroller of the 
                Currency;
                    ``(B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organization operating under section 
                25 or 25A of the Federal Reserve Act, and bank holding 
                companies and their nonbank subsidiaries or affiliates 
                (except brokers, dealers, persons providing insurance, 
                investment companies, and investment advisers) by the 
                Board of Governors of the Federal Reserve System; and
                    ``(C) banks insured by the Federal Deposit 
                Insurance Corporation (other than members of the 
                Federal Reserve System) and insured State branches of 
                foreign banks, and any subsidiaries of such entities 
                (except brokers, dealers, persons providing insurance, 
                investment companies, and investment advisers) by the 
                Board of Directors of the Federal Deposit Insurance 
                Corporation;
            ``(2) section 8 of the Federal Deposit Insurance Act, by 
        the Director of the Office of Thrift Supervision, in the case 
        of a savings association the deposits of which are insured by 
        the Federal Deposit Insurance Corporation and any subsidiaries 
        of such saving associations (except brokers, dealers, persons 
        providing insurance, investment companies, and investment 
        advisers);
            ``(3) the Federal Credit Union Act, by the Administrator of 
        the National Credit Union Administration with respect to any 
        federally insured credit union, and any subsidiaries of such an 
        entity;
            ``(4) State insurance law, by the applicable State 
        insurance authority of the State in which a person is 
        domiciled, in the case of a person providing insurance; and
            ``(5) the Federal Trade Commission Act, by the Federal 
        Trade Commission for any other financial institution or other 
        person that is not subject to the jurisdiction of any agency or 
        authority under paragraphs (1) through (4).
    ``(c) Private Cause of Action.--A servicemember, dependent, or 
other person protected by a provision of this Act may commence an 
action in a district court of the United States, or in a State court of 
competent jurisdiction, to seek enforcement of the protection afforded 
by such provision and the imposition of civil liability as specified 
such provision or section 801.
    ``(d) Construction of Enforcement.--
            ``(1) Enforcement by ftc.--The enforcement of the 
        provisions of this Act by the Federal Trade Commission pursuant 
        to subsection (a) shall be in addition to any other enforcement 
        of such provisions by the Department of Justice, private cause 
        of action, or other mechanism afforded by State law.
            ``(2) Construction of remedies.--The remedies for 
        violations of the provisions of this Act provided for under 
        subsections (a), (b), and (c) are in addition to any other 
        remedies for violations of such provisions under Federal or 
        State law.''.
            (2) Clerical amendment.--The table of contents in the first 
        section of that Act is amended by adding at the end the 
        following new items:

    ``TITLE VIII--CIVIL LIABILITY FOR NONCOMPLIANCE AND ENFORCEMENT

        ``Sec. 801. Civil liability for noncompliance.
        ``Sec. 802. Administrative enforcement.''.
    (b) Liability for Noncompliance.--
            (1) Section 301(c) of the Servicemembers Civil Relief Act 
        (50 U.S.C. App. 531(c)) is amended by striking paragraph (2) 
        and inserting the following new paragraphs:
            ``(2) Civil liability for noncompliance.--Any person or 
        entity (other than a servicemember or dependent) who fails to 
        comply with any requirement imposed by this section with 
        respect to a servicemember or dependent is liable to such 
        servicemember or dependent in an amount equal to the sum of--
                    ``(A) any actual damages sustained by such 
                servicemember or dependent as a result of the failure;
                    ``(B) such amount of punitive damages as the court 
                may allow;
                    ``(C) such amount of consequential damages as the 
                court may allow;
                    ``(D) such additional damages as the court may 
                allow, in an amount not less than $100 or more than 
                $5,000 (as determined appropriate by the court), for 
                each violation; and
                    ``(E) in the case of any successful action to 
                enforce liability under this section, the cost of the 
                action together with reasonable attorneys fees as 
                determined by the court.
            ``(3) Attorney fees.--On a finding by the court that an 
        unsuccessful pleading, motion, or other paper filed in 
        connection with an action under this section was filed in bad 
        faith or for the purposes of harassment, the court shall award 
        to the prevailing party attorney fees in amount that is 
        reasonable in relation to the work expended in responding to 
        such pleading, motion, or other paper.''.
            (2) Section 302(b) of that Act (50 U.S.C. App. 532(b)) is 
        amended by striking paragraph (2) and inserting the following 
        new paragraphs:
            ``(2) Civil liability for noncompliance.--Any person or 
        entity (other than a servicemember or dependent) who fails to 
        comply with any requirement imposed by this section with 
        respect to a servicemember or dependent is liable to such 
        servicemember or dependent in an amount equal to the sum of--
                    ``(A) any actual damages sustained by such 
                servicemember or dependent as a result of the failure;
                    ``(B) such amount of punitive damages as the court 
                may allow;
                    ``(C) such amount of consequential damages as the 
                court may allow;
                    ``(D) such additional damages as the court may 
                allow, in an amount not less than $100 or more than 
                $5,000 (as determined appropriate by the court), for 
                each violation; and
                    ``(E) in the case of any successful action to 
                enforce liability under this section, the cost of the 
                action together with reasonable attorneys fees as 
                determined by the court.
            ``(3) Attorney fees.--On a finding by the court that an 
        unsuccessful pleading, motion, or other paper filed in 
        connection with an action under this section was filed in bad 
        faith or for the purposes of harassment, the court shall award 
        to the prevailing party attorney fees in amount that is 
        reasonable in relation to the work expended in responding to 
        such pleading, motion, or other paper.''.
            (3) Section 303(d) of that Act (50 U.S.C. App. 533(d)) is 
        amended by striking paragraph (2) and inserting the following 
        new paragraphs:
            ``(2) Civil liability for noncompliance.--Any person or 
        entity (other than a servicemember or dependent) who fails to 
        comply with any requirement imposed by this section with 
        respect to a servicemember or dependent is liable to such 
        servicemember or dependent in an amount equal to the sum of--
                    ``(A) any actual damages sustained by such 
                servicemember or dependent as a result of the failure;
                    ``(B) such amount of punitive damages as the court 
                may allow;
                    ``(C) such amount of consequential damages as the 
                court may allow;
                    ``(D) such additional damages as the court may 
                allow, in an amount not less than $100 or more than 
                $5,000 (as determined appropriate by the court), for 
                each violation; and
                    ``(E) in the case of any successful action to 
                enforce liability under this section, the cost of the 
                action together with reasonable attorneys fees as 
                determined by the court.
            ``(3) Attorney fees.--On a finding by the court that an 
        unsuccessful pleading, motion, or other paper filed in 
        connection with an action under this section was filed in bad 
        faith or for the purposes of harassment, the court shall award 
        to the prevailing party attorney fees in amount that is 
        reasonable in relation to the work expended in responding to 
        such pleading, motion, or other paper.''.
            (4) Section 305(h) of that Act (50 U.S.C. App. 535(h)) is 
        amended by striking paragraph (2) and inserting the following 
        new paragraphs:
            ``(2) Civil liability for noncompliance.--Any person or 
        entity (other than a servicemember or dependent) who fails to 
        comply with any requirement imposed by this section with 
        respect to a servicemember or dependent is liable to such 
        servicemember or dependent in an amount equal to the sum of--
                    ``(A) any actual damages sustained by such 
                servicemember or dependent as a result of the failure;
                    ``(B) such amount of punitive damages as the court 
                may allow;
                    ``(C) such amount of consequential damages as the 
                court may allow;
                    ``(D) such additional damages as the court may 
                allow, in an amount not less than $100 or more than 
                $5,000 (as determined appropriate by the court), for 
                each violation; and
                    ``(E) in the case of any successful action to 
                enforce liability under this section, the cost of the 
                action together with reasonable attorneys fees as 
                determined by the court.
            ``(3) Attorney fees.--On a finding by the court that an 
        unsuccessful pleading, motion, or other paper filed in 
        connection with an action under this section was filed in bad 
        faith or for the purposes of harassment, the court shall award 
        to the prevailing party attorney fees in amount that is 
        reasonable in relation to the work expended in responding to 
        such pleading, motion, or other paper.''.
            (5) Section 306(e) of that Act (50 U.S.C. App. 536(e)) is 
        amended by striking paragraph (2) and inserting the following 
        new paragraphs:
            ``(2) Civil liability for noncompliance.--Any person or 
        entity (other than a servicemember or dependent) who fails to 
        comply with any requirement imposed by this section with 
        respect to a servicemember or dependent is liable to such 
        servicemember or dependent in an amount equal to the sum of--
                    ``(A) any actual damages sustained by such 
                servicemember or dependent as a result of the failure;
                    ``(B) such amount of punitive damages as the court 
                may allow;
                    ``(C) such amount of consequential damages as the 
                court may allow;
                    ``(D) such additional damages as the court may 
                allow, in an amount not less than $100 or more than 
                $5,000 (as determined appropriate by the court), for 
                each violation; and
                    ``(E) in the case of any successful action to 
                enforce liability under this section, the cost of the 
                action together with reasonable attorneys fees as 
                determined by the court.
            ``(3) Attorney fees.--On a finding by the court that an 
        unsuccessful pleading, motion, or other paper filed in 
        connection with an action under this section was filed in bad 
        faith or for the purposes of harassment, the court shall award 
        to the prevailing party attorney fees in amount that is 
        reasonable in relation to the work expended in responding to 
        such pleading, motion, or other paper.''.
            (6) Section 307(c) of that Act (50 U.S.C. App. 537(c)) is 
        amended by striking paragraph (2) and inserting the following 
        new paragraphs:
            ``(2) Civil liability for noncompliance.--Any person or 
        entity (other than a servicemember or dependent) who fails to 
        comply with any requirement imposed by this section with 
        respect to a servicemember or dependent is liable to such 
        servicemember or dependent in an amount equal to the sum of--
                    ``(A) any actual damages sustained by such 
                servicemember or dependent as a result of the failure;
                    ``(B) such amount of punitive damages as the court 
                may allow;
                    ``(C) such amount of consequential damages as the 
                court may allow;
                    ``(D) such additional damages as the court may 
                allow, in an amount not less than $100 or more than 
                $5,000 (as determined appropriate by the court), for 
                each violation; and
                    ``(E) in the case of any successful action to 
                enforce liability under this section, the cost of the 
                action together with reasonable attorneys fees as 
                determined by the court.
            ``(3) Attorney fees.--On a finding by the court that an 
        unsuccessful pleading, motion, or other paper filed in 
        connection with an action under this section was filed in bad 
        faith or for the purposes of harassment, the court shall award 
        to the prevailing party attorney fees in amount that is 
        reasonable in relation to the work expended in responding to 
        such pleading, motion, or other paper.''.

SEC. 4. OUTREACH TO MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS ON 
              THE SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) Outreach to Members of the Armed Forces.--
            (1) In general.--The Secretary concerned shall provide to 
        each member of the Armed Forces under the jurisdiction of the 
        Secretary pertinent information on the rights and protections 
        available to servicemembers and their dependents under the 
        Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.).
            (2) Time of provision.--Information shall be provided to a 
        member of the Armed Forces under paragraph (1) at times as 
        follows:
                    (A) During initial entry training.
                    (B) In the case of a member of a reserve component 
                of the Armed Forces, during initial entry training and 
                when the member is mobilized or otherwise individually 
                called or ordered to active duty for a period of more 
                than one year.
                    (C) At such other times as the Secretary concerned 
                considers appropriate.
    (b) Outreach to Dependents.--The Secretary concerned may provide to 
the adult dependents of members of the Armed Forces under the 
jurisdiction of the Secretary pertinent information on the rights and 
protections available to servicemembers and their dependents under the 
Servicemembers Civil Relief Act.
    (c) Definitions.--In this section, the terms ``dependent'' and 
``Secretary concerned'' have the meanings given such terms in section 
101 of the Servicemembers Civil Relief Act (50 U.S.C. App. 511).

SEC. 5. SERVICEMEMBERS RIGHTS UNDER THE HOUSING AND URBAN DEVELOPMENT 
              ACT OF 1968.

    (a) In General.--Section 106(c)(5)(A)(ii) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended--
            (1) in subclause (II), by striking ``; and'' and inserting 
        a semicolon;
            (2) in subclause (III), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                                    ``(IV) notify the homeowner by a 
                                statement or notice, written in plain 
                                English by the Secretary of Housing and 
                                Urban Development, in consultation with 
                                the Secretary of Defense and the 
                                Secretary of the Treasury, explaining 
                                the mortgage and foreclosure rights of 
                                servicemembers, and the dependents of 
                                such servicemembers, under the 
                                Servicemembers Civil Relief Act (50 
                                U.S.C. App. 501 et seq.), including the 
                                toll-free military one source number to 
                                call if servicemembers, or the 
                                dependents of such servicemembers, 
                                require further assistance.''.
    (b) No Effect on Other Laws.--Nothing in this section shall relieve 
any person of any obligation imposed by any other Federal, State, or 
local law.
    (c) Disclosure Form.--Not later than 150 days after the date of 
enactment of this Act, the Secretary of Housing and Urban Development 
shall issue a final disclosure form to fulfill the requirement of 
section 106(c)(5)(A)(ii)(IV) of the Housing and Urban Development Act 
of 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)).
    (d) Effective Date.--The amendments made under subsection (a) shall 
take effect 150 days after the date of enactment of this Act.
                                 <all>