Short title

This Act may be cited as the

21st Century Servicemembers Protection Act

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:

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.

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.