1.This Act may be cited as the
Servicemembers' Cellular Phone Contract Fairness Act of
2006
.
2.Termination
under Servicemembers Civil Relief Act of contracts for cellular phone
services
(a)Termination of
contracts for cellular phone services
(1)Inclusion of
contracts under termination authoritySubsection (b) of section
305 of the Servicemembers Civil Relief Act (50 U.S.C. App. 535) is amended by
adding at the end the following new paragraph:
(3)Contracts for
cellular phone service
(A)Subject to subparagraphs (B) and (C), a contract for a
cellular phone used, or intended to be used, by a servicemember or a
servicemember’s dependent for a personal or business purpose if—
(i)the contract is
executed by or on behalf of a person who thereafter and during the term of the
contract enters into military service under call or order specifying a period
of not less than 90 days (or who enters military service under a call or order
specifying a period of 90 days or less and who, without a break in service,
receives orders extending the period of military service to a period not less
than 90 days);
(ii)the
servicemember, while in military service, executes the contract and thereafter
receives military orders for a permanent change of station outside of the
continental United States or to deploy with a military unit for a period of not
less than 90 days; or
(iii)the
servicemember, while in military service, executes the contract and thereafter
receives military orders for a permanent change of station to a location within
the continental United States where the contract cannot be transferred at the
same rate, terms, and quality of service.
(B)Applicability
to dependentsSubparagraph (A) shall apply with respect to a
contract, or portion of a contract, for a cellular phone used, or intended to
be used, by a servicemember's dependent only if the dependent—
(i)relocates in
accompanying the servicemember in the performance of the military service, or
in a permanent change of station or deployment, described in that subparagraph;
or
(ii)otherwise
relocates as a consequence of such military service or change of station or
deployment.
(C)Applicability
to group plansIf a servicemember or a dependent to whom this
paragraph applies is not the primary account holder under a contract described
in subparagraph (A), that subparagraph shall apply only to the extent of the
obligations of the servicemember or dependent, as the case may be, in the
contract.
.
(2)Subsection (c)(1) of such section is amended—
(A)in subparagraph
(A), by striking and
at the end;
(B)in subparagraph
(B), by striking the period at the end and inserting ; and
;
and
(C)by adding at the
end the following new subparagraph:
(C)in the case of a
contract for a cellular phone, by delivery by the contractee of written notice
of such termination, and a copy of the servicemember’s military orders, to the
contractor or to the contractor’s
agent.
.
(3)Effective date
of terminationSubsection (d) of such section is amended by
adding at the end the following new paragraph:
(3)Contract for
cellular phone serviceIn the case of a contract for a cellular
phone described in subsection (b)(3), termination of the contract under
subsection (a) is effective on the day on which the requirements of subsection
(c) are met for such
termination.
.
(4)Subsection
(e) of such section is amended—
(A)by striking
(e) Arrearages and other
obligations and liabilities.—Rents or lease amounts
and inserting the following:
(e)Arrearages and
other obligations and liabilities
(1)Rents or lease
amounts
;
(B)by designating
the second sentence as paragraph (2), indenting such paragraph 4 ems from the
left margin, and inserting before In the case of the lease
the
following:
(2)Lease charges
for motor vehicles
;
and
(C)by adding at the
end the following new paragraphs:
(3)Termination
charges for cellular phone contractsIn the case of a contract
for a cellular phone, the contractor may not impose an early termination
charge, but may request the return of equipment provided to the contractee as
part of the contract which would normally remain the property of the contractee
at the end of the contract term if the contractee is given the option of paying
a pro-rated amount to retain such equipment based on the original retail price
of such equipment, the amount previously paid for such equipment by the
contractee, and the time remaining on the contract.
(4)In the event a contractor and contractee jointly agree to
treat the termination of a contract for a cellular phone under this section as
a suspension of such contract, the contractor may not impose any fee for
reactivation of service under such contract at the completion of suspension of
such
contract.
.
(b)Subsection (a)(1)(B) of such section is amended by
striking or (2)(B)
and inserting , (2)(B), (3)(A)(ii), or
(3)(A)(iii)
.
(c)
(1)The heading of such section is amended to read as
follows:
305.Termination of
residential or motor vehicle leases or contracts for cellular phone
service
.
(2)Table of
contents amendmentThe table of contents for such Act is amended
by striking the item relating to section 305 and inserting the following new
item:
“Sec. 305. Termination of
residential or motor vehicle leases or contracts for cellular phone
service.”.