[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3298 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3298

   To amend the Servicemembers Civil Relief Act to allow individuals 
  called to military service to terminate or suspend certain service 
   contracts entered into before the individual receives notice of a 
    permanent change of station or deployment orders and to provide 
         penalties for violations of interest rate limitations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2007

  Mr. Patrick J. Murphy of Pennsylvania (for himself and Mr. Walz of 
  Minnesota) introduced the following bill; which was referred to the 
                     Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the Servicemembers Civil Relief Act to allow individuals 
  called to military service to terminate or suspend certain service 
   contracts entered into before the individual receives notice of a 
    permanent change of station or deployment orders and to provide 
         penalties for violations of interest rate limitations.

    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 ``21st Century Servicemembers 
Protection Act''.

SEC. 2. TERMINATION OR SUSPENSION BY SERVICEMEMBERS OF CERTAIN SERVICE 
              CONTRACTS ENTERED INTO BEFORE PERMANENT CHANGE OF STATION 
              OF DEPLOYMENT ORDERS.

    (a) Termination.--Title III of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 531 et seq.) is amended--
            (1) by redesignating section 308 as section 309; and
            (2) by inserting after section 307 the following new 
        section 308:

``SEC. 308. TERMINATION OR SUSPENSION OF SERVICE CONTRACTS.

    ``(a) Termination by Servicemember.--A person in military service 
who is party to a contract described in subsection (b) may, at the 
person's option, terminate or suspend the contract at any time after--
            ``(1) the date of the entry of the person into military 
        service; or
            ``(2) the date of the military orders of the person 
        described in subsection (b)(2), as the case may be.
    ``(b) Covered Contracts.--This section applies to a contract for 
cellular phone service, cable or satellite television service, internet 
service, automobile insurance, water, electricity, oil, gas, telephone, 
or other utility, if--
            ``(1) the contract is executed by or on behalf of a person 
        (or the dependent of a person) who thereafter and during the 
        term of the contract enters military service (or receives 
        orders to enter military service) under a 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 of 
        not less than 90 days); or
            ``(2) the person enters into the contract while in military 
        service and thereafter receives military orders--
                    ``(A) for a change of permanent station--
                            ``(i) from a location in the continental 
                        United States to a location outside the 
                        continental United States; or
                            ``(ii) from a location in a State outside 
                        the continental United States to any location 
                        outside that State; or
                    ``(B) to deploy with a military unit, or as an 
                individual in support of a military operation, for a 
                period of not less than 180 days.
    ``(c) Manner of Termination.--
            ``(1) In general.--Termination of a contract under 
        subsection (a) is made by delivery by the person in military 
        service of written notice of such termination, and a copy of 
        the servicemember's military orders, to the other party to the 
        contract (or to that party's grantee or agent).
            ``(2) Nature of notice.--Delivery of notice under paragraph 
        (1) may be accomplished--
                    ``(A) by hand delivery;
                    ``(B) by private business carrier;
                    ``(C) by facsimile; or
                    ``(D) by placing the written notice in an envelope 
                with sufficient postage and with return receipt 
                requested, and addressed as designated by the party to 
                be notified (or that party's grantee or agent), and 
                depositing the written notice in the United States 
                mails.
    ``(d) Date of Contract Termination.--Termination or suspension of a 
service contract under subsection (a) is effective as of the date on 
which the notice under subsection (c) is delivered.
    ``(e) Arrearages and Other Obligations and Liabilities.--Contract 
amounts unpaid for the period preceding the effective date of the 
contract termination shall be paid on a prorated basis. The other party 
to the contract may not impose an early termination or suspension 
charge, but any tax or any other obligation or liability of the person 
in military service that, in accordance with the terms of the contract, 
is due and unpaid at the time of termination of the contract shall be 
paid by the person in military service.
    ``(f) Fees Paid in Advance.--A fee or amount paid in advance for a 
period after the effective date of the termination of the contract 
shall be refunded to the person in military service by the other party 
(or that party's grantee or agent) within 30 days of the effective date 
of the termination of the contract.
    ``(g) Relief to Other Party.--Upon application by the other party 
to the contract to a court before the termination date provided in the 
written notice, relief granted by this section to a person in military 
service may be modified as justice and equity require.
    ``(h) Penalties.--
            ``(1) Misdemeanor.--Any person who knowingly seizes, holds, 
        or detains the personal effects, funds, or other property of a 
        person in military service (or of a dependent of a person in 
        military service) who lawfully terminates a contract covered by 
        this section shall be fined as provided in title 18, United 
        States Code, imprisoned for not more than one year, or both.
            ``(2) Preservation.--The remedy and rights provided under 
        this section are in addition to and do not preclude any remedy 
        for wrongful conversion otherwise available under law to the 
        person claiming relief under this section, including any award 
        for consequential or punitive damages.
    ``(i) Equitable Relief.--
            ``(1) In general.--In addition to any other remedy 
        available under law, if a person in military service has reason 
        to believe that another party to a contract has violated or is 
        violating this section, the person in military service may--
                    ``(A) bring an action to enjoin the violation in 
                any appropriate United States district court or in any 
                other court of competent jurisdiction; or
                    ``(B) bring an action in any appropriate United 
                States district court or in any other court of 
                competent jurisdiction to recover--
                            ``(i) damages for which the other party is 
                        liable to the person in military service under 
                        this section; and
                            ``(ii) additional damages of not more than 
                        $10,000 for each willful or negligent violation 
                        of this section.
            ``(2) Attorney fees.--If a person in military service is 
        awarded damages under an action described under paragraph (1), 
        the person shall be awarded, in addition, the costs of the 
        action and reasonable attorney fees, as determined by the 
        court.
    ``(j) Military Order.--For the purposes of this section, the term 
`military orders', with respect to a servicemember, means official 
military orders, or any notification, certification, or verification 
from the servicemember's commanding officer, with respect to the 
servicemember's current or future military duty status.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by striking the item relating to section 308 and 
inserting after the item relating to section 307 the following new 
items:

``Sec. 308. Termination or suspension of service contracts.
``Sec. 309. Extension of protections to dependents.''.

SEC. 3. PENALTIES FOR VIOLATION OF INTEREST RATE LIMITATION UNDER 
              SERVICEMEMBERS CIVIL RELIEF ACT.

    Section 207 of such Act (50 U.S.C. App. 527) is amended by adding 
at the end the following new subsection:
    ``(e) Penalty.--Any person who knowingly violates subsection (a) 
shall be fined in accordance with in title 18, United States Code, 
imprisoned for not more than one year, or both.
    ``(f) State Action.--
            ``(1) Authority.--In addition to such other remedies as are 
        provided under State law, if the chief law enforcement officer 
        of a State, or an official or agency designated by a State, has 
        reason to believe that any person or organization has violated 
        or is violating this section, the chief law enforcement officer 
        may--
                    ``(A) may bring an action to enjoin such violation 
                in any appropriate United States district court or in 
                any other court of competent jurisdiction; and
                    ``(B) may bring an action on behalf of the 
                residents of the State to recover--
                            ``(i) damages for which the creditor is 
                        liable to such residents under this section as 
                        a result of the violation; and
                            ``(ii) damages of not more than $10,000 for 
                        each willful or negligent violation.
            ``(2) Notice to attorney general; rights of federal 
        government.--The chief law enforcement officer of a State shall 
        serve upon the Attorney General or the appropriate official of 
        the Federal Government prior written notice of any action under 
        paragraph (1) and provide a copy of any complaint in such 
        action, except in any case in which such prior notice is not 
        feasible, in which case the chief law enforcement officer shall 
        serve such notice immediately upon instituting such action. The 
        Attorney General or appropriate official of the Federal 
        Government shall have the right to--
                    ``(A) intervene in the action;
                    ``(B) upon so intervening, be heard on all matters 
                arising therein;
                    ``(C) remove the action to the appropriate United 
                States district court; and
                    ``(D) file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, nothing in this subsection 
        prevents a chief law enforcement officer of a State, or an 
        official or agency designated by a State, from exercising the 
        powers conferred on the chief law enforcement officer or such 
        official by the laws of such State to conduct investigations or 
        to administer oaths or affirmations or to compel the attendance 
        of witnesses or the production of documentary and other 
        evidence.
    ``(g) Rights of Servicemembers.--
            ``(1) Equitable relief.--
                    ``(A) In general.--In addition to any other 
                remedies as are provided under Federal or State law, if 
                a servicemember has reason to believe that a creditor 
                has violated or is violating this section, the 
                servicemember may--
                            ``(i) bring an action to enjoin such 
                        violation in any appropriate United States 
                        district court or in any other court of 
                        competent jurisdiction; and
                            ``(ii) bring an action to recover--
                                    ``(I) damages equal to the amount 
                                of the interest charged in violation of 
                                this section (plus interest) for which 
                                the creditor is liable to the 
                                servicemember under this section as a 
                                result of the violation; and
                                    ``(II) damages of not more than 
                                $10,000 for each willful or negligent 
                                violation.
                    ``(B) Determination of number of violations.--In 
                determining the number of violations by a creditor for 
                which a penalty shall be imposed under subsection 
                (f)(1)(B)(ii) or (g)(1)(B)(ii), the court shall count 
                as a single violation each obligation or liability of a 
                servicemember with respect to which--
                            ``(i) the servicemember properly provided 
                        to the creditor written notice and a copy of 
                        the military orders calling the servicemember 
                        to military service and any orders further 
                        extending military service under subsection 
                        (b); and
                            ``(ii) the creditor failed to treat in 
                        accordance with subsection (a).
            ``(2) Attorney fees.--If a servicemember is awarded damages 
        under an action described under paragraph (1), the 
        servicemember shall be awarded, in addition, the costs of the 
        action and reasonable attorney fees, as determined by the 
        court.
    ``(h) Preservation of Other Remedies.--The rights and remedies 
provided under subsections (f) and (g) are in addition to and do not 
preclude any other remedy available under law to a person claiming 
relief under this section, including any award for consequential or 
punitive damages.''.
                                 <all>