[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2719 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 2719

To amend the Servicemembers Civil Relief Act to improve the protections 
 provided to members of the uniformed services and their families, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2016

Mrs. Murray (for herself, Mr. Sanders, Mr. Blumenthal, Mr. Durbin, and 
  Ms. Warren) 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 to improve the protections 
 provided to members of the uniformed services and their families, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``SCRA Enhancement 
and Improvement Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--STUDENT PROTECTION AND DEBT RELIEF

Sec. 101. Student protection and debt relief.
Sec. 102. Expansion of protections concerning all debts of members of 
                            uniformed services to cover debt incurred 
                            during and after periods of military 
                            service.
Sec. 103. Improvements concerning limitations on rates of interest on 
                            debts of members of uniformed services.
Sec. 104. Requirement that student loan servicers employ dedicated 
                            servicemember service representatives.
Sec. 105. Timely processing by student loan servicers of requests 
                            submitted by servicemembers.
Sec. 106. Requirements applicable to student loan applications.
Sec. 107. Retention by loan servicers of copies and recordings of 
                            communications with members of uniformed 
                            services and veterans.
Sec. 108. Online tool for evaluation of student loan servicers.
Sec. 109. Assessment of student loan servicers.
Sec. 110. Definitions.
 TITLE II--ENHANCEMENT OF RIGHTS UNDER SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 201. Extended period of protection under installment contracts for 
                            purchase or lease.
Sec. 202. Modification of period determining which actions are covered 
                            under stay of proceedings and adjustment of 
                            obligation protections concerning mortgages 
                            and trust deeds of members of uniformed 
                            services.
Sec. 203. Prohibition on collection of penalties for early prepayment 
                            of mortgage.
Sec. 204. Protections for members of uniformed services regarding 
                            professional licenses.
Sec. 205. Expansion of protections for members of uniformed services 
                            regarding taxes respecting real property 
                            occupied by businesses owned by such 
                            members.
Sec. 206. Prohibition on denial of credit because of eligibility for 
                            protection.
Sec. 207. Termination of television and Internet service contracts.
Sec. 208. Guarantee of residency of dependents of members of uniformed 
                            services.
       TITLE III--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 301. Improved protection of members of uniformed services against 
                            default judgments.
Sec. 302. Modification of period in which a waiver of a right pursuant 
                            to a written agreement may be made under 
                            Servicemembers Civil Relief Act.
Sec. 303. Clarification regarding application of enforcement authority 
                            of Attorney General and private right of 
                            action under Servicemembers Civil Relief 
                            Act.
Sec. 304. Expansion of protections relating to mortgages to include 
                            obligations on real or personal property 
                            for which a servicemember is personally 
                            liable as a guarantor or co-maker.
 TITLE IV--ENFORCEMENT OF RIGHTS UNDER SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 401. Election of arbitration to resolve controversies under 
                            Servicemembers Civil Relief Act.
Sec. 402. Issuance and service of civil investigative demands by 
                            Attorney General under Servicemembers Civil 
                            Relief Act.
Sec. 403. Increase in civil penalties for violation of Servicemembers 
                            Civil Relief Act.
                         TITLE V--OTHER MATTERS

Sec. 501. Transfer of definitions of military orders and continental 
                            United States.
Sec. 502. Clerical amendments.

              TITLE I--STUDENT PROTECTION AND DEBT RELIEF

SEC. 101. STUDENT PROTECTION AND DEBT RELIEF.

    (a) In General.--The Servicemembers Civil Relief Act (50 U.S.C. 
3901 et seq.) is amended by adding at the end the following new title:

             ``TITLE IX--STUDENT PROTECTION AND DEBT RELIEF

``SEC. 901. DEFINITIONS.

    ``In this title:
            ``(1) Servicer.--The term `servicer', with respect to a 
        student loan, means a person who--
                    ``(A) during a period in which repayment of the 
                student loan is required--
                            ``(i) receives scheduled periodic payments 
                        from the borrower or notification of such 
                        payments; and
                            ``(ii) applies payments to the borrower's 
                        account pursuant to the terms of the student 
                        loan or of the contract governing the servicing 
                        of the student loan;
                    ``(B) during a period when not payment is required 
                on the student loan--
                            ``(i) maintains account records regarding 
                        the student loan; and
                            ``(ii) communicates with the borrower 
                        regarding the student loan on behalf of the 
                        student loan's holder; or
                    ``(C) interacts with the borrower, including 
                activities to help prevent default on obligations 
                arising from the student loan, conducted to facilitate 
                activities described in subparagraph (A) or (B).
            ``(2) Student loan.--The term `student loan' has the 
        meaning given such term `qualified education loan' in section 
        221(d) of the Internal Revenue Code of 1986.

``SEC. 902. CONTINUAL MONITORING BY STUDENT LOAN SERVICERS OF STATUS OF 
              SERVICEMEMBERS.

    ``(a) In General.--Each servicer of a student loan that was issued 
by or guaranteed by the Federal Government shall continuously monitor 
the Defense Manpower Data Center, or any successor database, for the 
purpose of continuously monitoring the duty status of borrowers who are 
servicemembers and complying with the requirements of this Act.
    ``(b) Policies and Procedures.--Monitoring conducted under 
subsection (a) shall be conducted in accordance with such policies and 
procedures as the Secretary of Defense may prescribe for purposes of 
this section.

``SEC. 903. REQUIREMENT THAT STUDENT LOAN SERVICERS EXPLAIN DENIALS OF 
              BENEFITS AND PROVIDE INSTRUCTION FOR APPEALS PROCESS.

    ``In any case in which a servicemember submits to the servicer of a 
student loan of the servicemember an application for a benefit under 
this Act or a notice to invoke a protection under this Act with respect 
to such student loan and the servicer denies such benefit or determines 
that such protection is not applicable, the servicer shall provide the 
servicemember with--
            ``(1) a complete and clear explanation of the reasons why 
        the servicer denied such benefit or determined such protection 
        is not applicable; and
            ``(2) a clear and concise description of the actions that 
        the servicemember may take--
                    ``(A) to appeal such denial or determination; and
                    ``(B) to obtain such benefit or invoke such 
                protection.

``SEC. 904. NOTIFICATION OF TRANSFER OR SALE OF STUDENT LOANS.

    ``(a) Notification Required.--Not later than 60 days before the 
date that a servicer of a student loan of a servicemember sells or 
transfers such student loan to another person for servicing, the 
servicer of such loan shall submit to the Secretary of Education, the 
Director of the Consumer Financial Protection Bureau, and the 
servicemember a notice of such sale or transfer.
    ``(b) Retention of Limitations and Protections.--In any case in 
which a student loan described in subsection (a) is sold or transferred 
and the seller or transferor of the student loan placed a limitation or 
protection on such loan pursuant to a provision of this Act, such 
limitation or protection shall apply to such student loan after sale or 
transfer without any action taken by the servicemember.

``SEC. 905. FORGIVENESS OF STUDENT DEBT OF SERVICEMEMBERS.

    ``(a) Forgiveness of Student Debt of Servicemembers Who Die in Line 
of Duty While Serving on Active Duty.--Upon the death of a 
servicemember who dies in line of duty while serving on active duty as 
a member of the Armed Forces, each student loan of the servicemember is 
forgiven.
    ``(b) Forgiveness of Federal Student Debt Upon Service-Connected 
Death.--Upon the service-connected death of a servicemember, the 
balance of each student loan of the servicemember guaranteed or issued 
by the Federal Government is forgiven.
    ``(c) Service-Connected Defined.--In this section, the term 
`service-connected' has the meaning given such term in section 101 of 
title 38, United States Code.''.
    (b) Clerical Amendment.--Section 1(b) of such Act is amended by 
adding at the end the following new items:

             ``TITLE IX--STUDENT PROTECTION AND DEBT RELIEF

``Sec. 901. Definitions.
``Sec. 902. Continual monitoring by student loan servicers of status of 
                            servicemembers.
``Sec. 903. Requirement that student loan servicers explain denials of 
                            benefits and provide instruction for 
                            appeals process.
``Sec. 904. Notification of transfer or sale of student loans.
``Sec. 905. Forgiveness of student debt of servicemembers.''.

SEC. 102. EXPANSION OF PROTECTIONS CONCERNING ALL DEBTS OF MEMBERS OF 
              UNIFORMED SERVICES TO COVER DEBT INCURRED DURING AND 
              AFTER PERIODS OF MILITARY SERVICE.

    (a) Application of Maximum Rate of Interest to All Debts Incurred 
by Members of Uniformed Services.--
            (1) In general.--Subsection (a)(1) of section 207 of the 
        Servicemembers Civil Relief Act (50 U.S.C. 3937) is amended, in 
        the matter before subparagraph (A), by striking ``before the 
        servicemember enters military service''.
            (2) Conforming amendment.--Subsection (b)(1) of such 
        section is amended--
                    (A) by inserting ``, as applicable,'' after 
                ``extending military service''; and
                    (B) by striking ``, not later than 180 days after 
                the date of the servicemember's termination or release 
                from military service''.
            (3) Clerical amendments.--
                    (A) Section heading.--Section 207 of such Act (50 
                U.S.C. 3937) is amended by striking ``before military 
                service'' and inserting ``by servicemembers''.
                    (B) Table of contents.--The table of contents in 
                section 1(b) of such Act is amended by striking the 
                item relating to section 207 and inserting the 
                following new item:

``Sec. 207. Maximum rate of interest on debts incurred by 
                            servicemembers.''.
    (b) Expansion of Protections Regarding Mortgages and Trust Deeds.--
Section 303(a) of such Act (50 U.S.C. 3953(a)) is amended--
            (1) in the matter before paragraph (1), by striking 
        ``servicemember that--'' and inserting ``servicemember--'';
            (2) in paragraph (1), by striking ``originated before the 
        period of the servicemember's military service and''; and
            (3) in paragraph (2), by inserting ``that'' before ``is 
        secured''.

SEC. 103. IMPROVEMENTS CONCERNING LIMITATIONS ON RATES OF INTEREST ON 
              DEBTS OF MEMBERS OF UNIFORMED SERVICES.

    (a) Modification of Maximum Rate of Interest.--Section 207(a) of 
the Servicemembers Civil Relief Act (50 U.S.C. 3937(a)), as amended by 
section 102(a), is further amended--
            (1) in paragraph (1), in the matter before subparagraph 
        (A)--
                    (A) by striking ``Limitation to 6 percent'' and 
                inserting ``In general'';
                    (B) by striking ``6 percent per year'' and 
                inserting ``the rate specified in paragraph (4)''; and
                    (C) by striking ``6 percent--'' and inserting ``the 
                rate specified in paragraph (4)--'';
            (2) in paragraph (2)--
                    (A) by striking ``interest in excess of 6 percent'' 
                and inserting ``excess interest''; and
                    (B) by striking ``6 percent per year'' and 
                inserting ``the rate specified in paragraph (4)''; and
            (3) by adding at the end the following new paragraph:
            ``(4) Maximum rate.--The rate specified in this paragraph 
        is--
                    ``(A) except as provided in subparagraph (B), three 
                percent per year; and
                    ``(B) in the case of a servicemember who, during a 
                period of military service, is eligible for special pay 
                under section 310 of title 37, United States Code, zero 
                percent per year for the duration of such period.''.
    (b) Procedures for Implementation of Maximum Rate of Interest.--
            (1) Procedures concerning student debt.--Section 207(b) of 
        the Servicemembers Civil Relief Act (50 U.S.C. 3937(b)), as 
        amended by section 102(a)(2), is further amended--
                    (A) in paragraph (1), by striking ``In order'' and 
                inserting ``Except as provided in paragraph (3)(A), in 
                order''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Student loans issued or guaranteed by federal 
        government.--
                    ``(A) Automatic application of rate reduction.--A 
                servicer of a student loan issued or guaranteed by the 
                Federal Government shall be considered to have received 
                written notice concerning the student loan of an 
                individual and a copy of military orders, as 
                applicable, under paragraph (1) whenever the Defense 
                Manpower Data Center, or any successor database, 
                changes the duty status of the individual in such a 
                manner as to indicate that debts of the individual are 
                subject to the rate limitation in subsection (a).
                    ``(B) Notice submitted by student loan servicers to 
                servicemembers.--Whenever a servicer of a student loan 
                of a servicemember issued or guaranteed by the Federal 
                Government forgoes interest on the student loan 
                pursuant to paragraph (1) of subsection (a) or forgives 
                interest pursuant to paragraph (2) of such subsection, 
                the servicer shall notify the servicemember of--
                            ``(i) the action taken by the servicer; and
                            ``(ii) such rights as the servicemember may 
                        have under this Act or any other applicable 
                        provision of law.''.
            (2) Uniform applicability of notice.--Such section is 
        further amended by adding at the end the following new 
        paragraph:
            ``(4) Uniform applicability of notice.--If a servicemember 
        provides a creditor written notice and a copy of military 
        orders pursuant paragraph (1) in order to invoke a rate 
        reduction under subsection (a) with respect to a particular 
        obligation or liability, such provision of notice shall be 
        considered provision of notice to the creditor for purposes of 
        invoking rate reductions under subsection (a) for all 
        obligations and liabilities of the servicemember serviced, 
        owned, or held by the creditor.''.

SEC. 104. REQUIREMENT THAT STUDENT LOAN SERVICERS EMPLOY DEDICATED 
              SERVICEMEMBER SERVICE REPRESENTATIVES.

    (a) In General.--Each servicer of a student loan that was issued by 
or guaranteed by the Federal Government shall employ at least one 
individual who is dedicated to servicing student loans of 
servicemembers and is knowledgeable about the rights and benefits to 
which members of the uniformed services are entitled under this Act, 
the Servicemembers Civil Relief Act (50 U.S.C. 3901 et seq.), and any 
other provision of law by virtue of being a member of the uniformed 
services.
    (b) Training.--
            (1) In general.--Each servicer described in subsection (a) 
        shall ensure that each individual employed pursuant to 
        subsection (a) is appropriately trained.
            (2) Standards.--The Secretary of Education, in 
        collaboration with the Secretary of Defense, the Secretary of 
        Veterans Affairs, and the Attorney General, may prescribe 
        standards for training required by paragraph (1).
            (3) Certification.--Each servicer described in subsection 
        (a) shall certify to the Secretary of Education and the 
        Secretary of Veterans Affairs whether the individual or 
        individuals employed by the servicer pursuant to subsection (a) 
        have been appropriately trained pursuant to paragraph (1).
    (c) Dedicated Phone Numbers and Internet Websites.--
            (1) In general.--Each servicer described in subsection (a) 
        shall establish a dedicated phone number and Internet website 
        or webpage--
                    (A) by which servicemembers can contact and receive 
                assistance from the individual or individuals the 
                servicer employs under subsection (a); and
                    (B) from which servicemembers can obtain 
                descriptions of the rights and benefits to which 
                servicemembers are entitled under this Act.
            (2) Prominent display.--Each servicer described in 
        subsection (a) shall prominently display on marketing 
        materials, application documents, and the Internet website of 
        the servicer the phone number and the Uniform Resource Locator 
        for the Internet website established by the person pursuant to 
        paragraph (1).

SEC. 105. TIMELY PROCESSING BY STUDENT LOAN SERVICERS OF REQUESTS 
              SUBMITTED BY SERVICEMEMBERS.

    Each servicer of a student loan of a servicemember that was issued 
by or guaranteed by the Federal Government shall ensure that each 
request submitted to the servicer by a servicemember for a benefit or 
protection under this Act, the Servicemembers Civil Relief Act (50 
U.S.C. 3901 et seq.), and any other applicable provision of law is 
processed by the servicer before the earlier of the following:
            (1) The date that is 14 days after the date that the person 
        received the request from the servicemember.
            (2) Such date as the Secretary of Education may prescribe.

SEC. 106. REQUIREMENTS APPLICABLE TO STUDENT LOAN APPLICATIONS.

    (a) Inquiry.--Each servicer of a student loan shall inquire of each 
applicant for a student loan from the servicer if the applicant for the 
student loan or a cosigner of the student loan has ever served in the 
uniformed services.
    (b) Notice of Rights and Monitoring of Status.--For each applicant 
for a loan who responds to an inquiry by a servicer under subsection 
(a) that the applicant or a cosigner has ever served in the uniformed 
services, the servicer shall--
            (1) inform the applicant of the rights and protections that 
        may be afforded to the applicant or the cosigner under the 
        Servicemembers Civil Relief Act (50 U.S.C. 3901 et seq.) and 
        other applicable provisions of law;
            (2) make a permanent note of the applicant's or cosigner's 
        service in the uniformed services; and
            (3) commence monitoring the status of the applicant or 
        cosigner pursuant to section 901 of the Servicemembers Civil 
        Relief Act, as added by section 101.

SEC. 107. RETENTION BY LOAN SERVICERS OF COPIES AND RECORDINGS OF 
              COMMUNICATIONS WITH MEMBERS OF UNIFORMED SERVICES AND 
              VETERANS.

    (a) Retention.--Each servicer of a student loan that was issued by 
or guaranteed by the Federal Government shall retain, for a period of 
not less than 5 years, a copy or recording, as applicable, of each 
communication between the servicer and a member of the uniformed 
services or a veteran, including communications by phone, Internet, or 
post.
    (b) Availability.--Each servicer of a student loan that was issued 
by or guaranteed by the Federal Government shall make available to the 
Secretary of Education, the Secretary of Defense, the Secretary of 
Veterans Affairs, the Attorney General, and the Director of the 
Consumer Financial Protection Bureau, upon request, the communications 
copied or recorded under subsection (a).

SEC. 108. ONLINE TOOL FOR EVALUATION OF STUDENT LOAN SERVICERS.

    (a) In General.--The Director of the Consumer Financial Protection 
Bureau shall establish and make publicly available via the Internet a 
database of information that members of the uniformed services and 
veterans can use to evaluate servicers of student loans of members of 
the uniformed services or veterans.
    (b) Contents.--The database required by subsection (a) shall 
include the following:
            (1) Complaints concerning, or reviews regarding, services 
        provided by servicers described subsection (a).
            (2) Assessments of the compliance of such servicers with 
        the requirements of the Servicemembers Civil Relief Act (50 
        U.S.C. 3901 et seq.).
            (3) Such other information as the Director considers 
        appropriate to help members of the uniformed services and 
        veterans to evaluate servicers as described in subsection (a).

SEC. 109. ASSESSMENT OF STUDENT LOAN SERVICERS.

    (a) In General.--Not later than the date that is 3 years after the 
date of the enactment of this Act, the Secretary of Education and the 
Director of the Consumer Financial Protection Bureau shall each--
            (1) complete a statistically valid assessment of each 
        servicer of a student loan of a member of the uniformed 
        services issued by or guaranteed by the Federal Government;
            (2) develop a plan for the oversight of such servicers;
            (3) develop such recommendations for legislative and 
        administrative actions as the Secretary and the Director each 
        consider appropriate; and
            (4) submit to the appropriate committees of Congress a 
        report on--
                    (A) the assessment conducted under paragraph (1);
                    (B) the plan developed under paragraph (2);
                    (C) the recommendations developed under paragraph 
                (3); and
                    (D) such other matters as the Secretary and the 
                Director each consider appropriate.
    (b) Elements.--Each assessment of a servicer required by subsection 
(a)(1) shall include the following:
            (1) An assessment of the compliance of the servicer with 
        the provisions of the Servicemembers Civil Relief Act (50 
        U.S.C. 3901 et seq.), as amended by this Act.
            (2) An assessment of the satisfaction of members of the 
        uniformed services with the services provided by such servicer 
        with respect to their student loans serviced by the servicer.
            (3) A qualitative evaluation of the customer service 
        provided by the servicer with respect to student loans of 
        members of the uniformed services serviced by the servicer.
            (4) A detailed description of the methodology used to carry 
        out the assessment.
    (c) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committee on Veterans' Affairs and the Committee on 
        Health, Education, Labor, and Pensions of the Senate; and
            (2) the Committee on Veterans' Affairs and the Committee on 
        Education and the Workforce of the House of Representatives.

SEC. 110. DEFINITIONS.

    In this title:
            (1) Servicer and student loan.--The terms ``servicer'' and 
        ``student loan'' have the meanings given such terms in section 
        901 of the Servicemembers Civil Relief Act, as added by section 
        101 of this title.
            (2) Uniformed services.--The term ``uniformed services'' 
        has the meaning given such term in section 101(a) of title 10, 
        United States Code.

 TITLE II--ENHANCEMENT OF RIGHTS UNDER SERVICEMEMBERS CIVIL RELIEF ACT

SEC. 201. EXTENDED PERIOD OF PROTECTION UNDER INSTALLMENT CONTRACTS FOR 
              PURCHASE OR LEASE.

    Section 302(a)(1) of the Servicemembers Civil Relief Act (50 U.S.C. 
3952(a)(1)) is amended, in the matter following subparagraph (B), by 
striking ``or during that person's military service'' and inserting ``, 
during, or within one year after such servicemember's period of 
military service''.

SEC. 202. MODIFICATION OF PERIOD DETERMINING WHICH ACTIONS ARE COVERED 
              UNDER STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION 
              PROTECTIONS CONCERNING MORTGAGES AND TRUST DEEDS OF 
              MEMBERS OF UNIFORMED SERVICES.

    Section 303(b) of the Servicemembers Civil Relief Act (50 U.S.C. 
3953(b)) is amended by striking ``filed'' and inserting ``pending''.

SEC. 203. PROHIBITION ON COLLECTION OF PENALTIES FOR EARLY PREPAYMENT 
              OF MORTGAGE.

    Section 203 of the Servicemembers Civil Relief Act (50 U.S.C. 3933) 
is amended by adding at the end the following new subsection:
    ``(c) Prohibition on Prepayment Penalties for Certain Mortgages.--
            ``(1) In general.--When a servicemember discharges an 
        obligation arising under a mortgage contract and would 
        otherwise thereby incur a prepayment penalty, such penalty 
        shall not accrue if--
                    ``(A) the servicemember is in military service at 
                the time the prepayment penalty is incurred; and
                    ``(B) the reason the servicemember discharges the 
                obligation, thereby incurring the penalty, is 
                materially affected by such military service.
            ``(2) Materially affecting military service.--For purposes 
        of paragraph (1)(B), the requirement that the reason a 
        servicemember discharged a mortgage obligation, thereby 
        incurring a prepayment penalty, be materially affected by 
        military services requires--
                    ``(A) that the mortgage be secured by the 
                servicemember's primary residence; and
                    ``(B) that the servicemember receive permanent 
                change of station orders.
            ``(3) Relief, costs, and attorney fees.--An assessment of a 
        penalty in violation of this subsection shall be considered a 
        violation of this Act for purposes of title VIII.''.

SEC. 204. PROTECTIONS FOR MEMBERS OF UNIFORMED SERVICES REGARDING 
              PROFESSIONAL LICENSES.

    (a) In General.--Title VII of the Servicemembers Civil Relief Act 
(50 U.S.C. 4021 et seq.) is amended by adding at the end the following 
new section:

``SEC. 707. PROFESSIONAL LICENSES.

    ``(a) Expiration During Period in Which Servicemembers Are Eligible 
for Hostile Fire or Imminent Danger Special Pay.--If a license issued 
by a State or local licensing authority to a servicemember would 
otherwise expire during a period in which such servicemember is 
eligible for hostile fire or imminent danger special pay under section 
310 of title 37, United States Code, such State or local licensing 
authority shall delay the expiration of such license until not earlier 
than the date that is 180 days after the date on which such period of 
eligibility ends.
    ``(b) Continuing Education Requirements During Period in Which 
Servicemembers Are Eligible for Hostile Fire or Imminent Danger Special 
Pay.--If a State or local licensing authority otherwise requires a 
servicemember to meet any continuing education requirements to maintain 
a license for a trade or profession during a period in which such 
servicemember is eligible for hostile fire or imminent danger special 
pay under section 310 of title 37, United States Code, such State or 
local licensing authority shall delay such continuing education 
requirement until not earlier than the date that is 180 days after the 
date on which such period of eligibility ends.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act (50 U.S.C. 3901(b)) is amended by inserting after the item 
relating to section 706 the following new item:

``Sec. 707. Professional licenses and certifications.''.

SEC. 205. EXPANSION OF PROTECTIONS FOR MEMBERS OF UNIFORMED SERVICES 
              REGARDING TAXES RESPECTING REAL PROPERTY OCCUPIED BY 
              BUSINESSES OWNED BY SUCH MEMBERS.

    (a) In General.--Subsection (a)(2) of section 501 of the 
Servicemembers Civil Relief Act (50 U.S.C. 3991) is amended by striking 
the matter before subparagraph (A) and inserting the following:
            ``(2) real property occupied for dwelling, professional, 
        trade, business, or agricultural purposes by a servicemember, 
        the servicemember's dependents or employees, or a business 
        which (without regard to the form in which such profession, 
        trade, business, or agricultural operation is organized or 
        carried out) is owned entirely by a servicemember or by a 
        servicemember and the spouse of the servicemember--''.
    (b) Notice.--Such section is further amended by adding at the end 
the following new subsection:
    ``(f) Written Notice to Taxing Authorities.--In order for real 
property owned by a business which is owned entirely by a servicemember 
or by a servicemember and the spouse of the servicemember to be subject 
to the protections provided in this section, the servicemember shall 
provide to the applicable taxing authority written notice and a copy of 
the military orders calling the servicemember to military service and 
any orders further extending military service, not later than 180 days 
after the date of the servicemember's termination or release from 
military service.''.

SEC. 206. PROHIBITION ON DENIAL OF CREDIT BECAUSE OF ELIGIBILITY FOR 
              PROTECTION.

    Section 108 of the Servicemembers Civil Relief Act (50 U.S.C. 3919) 
is amended--
            (1) by striking ``Application by'' and inserting ``(a) 
        Application or Receipt.--Application by''; and
            (2) by adding at the end the following new subsection:
    ``(b) Eligibility.--
            ``(1) In general.--In addition to the protections under 
        subsection (a), an individual who is entitled to any right or 
        protection provided under this Act may not be denied or refused 
        credit or be subject to any other action described under 
        paragraphs (1) through (6) of subsection (a) solely by reason 
        of such entitlement.
            ``(2) Construction.--Nothing in this subsection shall be 
        construed to prohibit a lender from considering all relevant 
        factors, other than the entitlement of an individual to a right 
        or protection provided under this Act, in making a 
        determination as to whether it is appropriate to extend 
        credit.''.

SEC. 207. TERMINATION OF TELEVISION AND INTERNET SERVICE CONTRACTS.

    (a) In General.--Section 305A of the Servicemembers Civil Relief 
Act (50 U.S.C. 3956) is amended--
            (1) by inserting ``, television, and internet'' after 
        ``telephone'';
            (2) in subsection (b), by striking ``or telephone exchange 
        service'' inserting ``, telephone exchange service, cable 
        television service, satellite television service, or Internet 
        service'' after ``cellular telephone service''; and
            (3) in subsection (c), by inserting ``for cellular 
        telephone service or telephone exchange service'' after ``case 
        of a contract''.
    (b) Clerical Amendment.--Section 1(b) of such Act is amended by 
striking the item relating to section 305A and inserting the following 
new item:

``Sec. 305A. Termination of telephone, television, and Internet service 
                            contracts.''.

SEC. 208. GUARANTEE OF RESIDENCY OF DEPENDENTS OF MEMBERS OF UNIFORMED 
              SERVICES.

    (a) In General.--Section 705(b) of the Servicemembers Civil Relief 
Act (50 U.S.C. 4025(b)) is amended--
            (1) in the matter before paragraph (1), by striking ``a 
        person'' and all that follows through ``that absence'' and 
        inserting ``a dependent of a servicemember who is absent from a 
        State because the servicemember is absent from that same State 
        in compliance with military orders shall not, solely by reason 
        of absence, whether or not accompanying the servicemember''; 
        and
            (2) in paragraph (1), by striking ``the person'' and 
        inserting ``the dependent''.
    (b) Clerical Amendments.--Such Act (50 U.S.C. 3901 et seq.) is 
amended--
            (1) in section 705 (50 U.S.C. 4025)--
                    (A) in the section heading my striking ``spouses'' 
                and inserting ``dependents''; and
                    (B) in the heading for subsection (b), by striking 
                ``Spouses'' and inserting ``Dependents''; and
            (2) in the table of sections in section 1 (50 U.S.C. 3901), 
        by striking the item relating to section 705 and inserting the 
        following new item:

``Sec. 705. Guarantee of residency for military personnel and 
                            dependents of military personnel.''.

       TITLE III--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

SEC. 301. IMPROVED PROTECTION OF MEMBERS OF UNIFORMED SERVICES AGAINST 
              DEFAULT JUDGMENTS.

    (a) Modification of Plaintiff Affidavit Filing Requirement.--
            (1) In general.--Paragraph (1) of section 201(b) of the 
        Servicemembers Civil Relief Act (50 U.S.C. 3931(b)) is 
        amended--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and indenting such 
                clauses two ems to the right;
                    (B) in the matter before clause (i), as 
                redesignated by subparagraph (A), by striking ``In 
                any'' and inserting the following:
                    ``(A) In general.--In any''; and
                    (C) by adding at the end the following new 
                subparagraph (B):
                    ``(B) Due diligence.--Before filing the affidavit, 
                the plaintiff shall conduct a diligent and reasonable 
                investigation to determine whether or not the defendant 
                is in military service, including a search of available 
                records of the Department of Defense and any other 
                information reasonably available to the plaintiff. The 
                affidavit shall set forth all steps taken to determine 
                the defendant's military status and shall have attached 
                copies of the records on which the plaintiff relied in 
                drafting the affidavit.''.
            (2) Applicability.--Paragraph (1)(B) of such section, as 
        added by paragraph (1), shall apply with respect to actions and 
        proceedings filed on or after the date of the enactment of this 
        Act.
    (b) Appointment of Attorney To Represent Defendant in Military 
Service.--Paragraph (2) of such section (50 U.S.C. 3931(b)) is 
amended--
            (1) by striking ``If in an action'' and inserting the 
        following:
                    ``(A) In general.--If in an action'';
            (2) in subparagraph (A), as designated by paragraph (1), by 
        striking ``If an attorney'' and inserting the following:
                    ``(C) Limitations on appointed attorney.--If an 
                attorney'';
            (3) by inserting after subparagraph (A), as designated by 
        paragraph (1), the following new subparagraph:
                    ``(B) Due diligence.--If the court appoints an 
                attorney to represent the defendant--
                            ``(i) the attorney shall conduct a diligent 
                        and reasonable investigation to determine 
                        whether or not the defendant is in military 
                        service, including a search of available 
                        records of the Department of Defense and any 
                        other information reasonably available to the 
                        attorney; and
                            ``(ii) the plaintiff shall submit to the 
                        attorney such information as the plaintiff may 
                        have concerning the whereabouts or identity of 
                        the defendant.''; and
            (4) by adding at the end the following new subparagraph:
                    ``(D) Treatment of attorneys fees.--The reasonable 
                fees of an attorney appointed to represent a 
                servicemember shall be treated as costs of court for 
                court cost purposes, unless the creditor seeks relief 
                from such charges from the court.''.

SEC. 302. MODIFICATION OF PERIOD IN WHICH A WAIVER OF A RIGHT PURSUANT 
              TO A WRITTEN AGREEMENT MAY BE MADE UNDER SERVICEMEMBERS 
              CIVIL RELIEF ACT.

    Section 107(a) of the Servicemembers Civil Relief Act (50 U.S.C. 
3918(a)) is amended in the third sentence by striking ``during or after 
the servicemember's period of military service'' and inserting ``after 
the occurrence of the event that gave rise to the rights or protections 
to be waived''.

SEC. 303. CLARIFICATION REGARDING APPLICATION OF ENFORCEMENT AUTHORITY 
              OF ATTORNEY GENERAL AND PRIVATE RIGHT OF ACTION UNDER 
              SERVICEMEMBERS CIVIL RELIEF ACT.

    Sections 801 and 802 of the Servicemembers Civil Relief Act (50 
U.S.C. 4041 and 4042) shall apply as if such sections were included in 
the enactment of the Soldiers' and Sailors' Civil Relief Act of 1940 
(54 Stat. 1178, chapter 888) and included in the restatement of such 
Act in Public Law 108-189.

SEC. 304. EXPANSION OF PROTECTIONS RELATING TO MORTGAGES TO INCLUDE 
              OBLIGATIONS ON REAL OR PERSONAL PROPERTY FOR WHICH A 
              SERVICEMEMBER IS PERSONALLY LIABLE AS A GUARANTOR OR CO-
              MAKER.

    Section 303(a) of the Servicemembers Civil Relief Act (50 U.S.C. 
3953(a)) is amended, in the matter before paragraph (1), by inserting 
``or an obligation on real or personal property for which a 
servicemember is personally liable as a guarantor or co-maker'' after 
``by a servicemember''.

 TITLE IV--ENFORCEMENT OF RIGHTS UNDER SERVICEMEMBERS CIVIL RELIEF ACT

SEC. 401. ELECTION OF ARBITRATION TO RESOLVE CONTROVERSIES UNDER 
              SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) In General.--Section 102 of the Servicemembers Civil Relief Act 
(50 U.S.C. 3912) is amended by adding at the end the following new 
subsection:
    ``(d) Election of Arbitration.--
            ``(1) Consent required.--Notwithstanding any other 
        provision of law, whenever a contract with a servicemember 
        provides for the use of arbitration to resolve a controversy 
        subject to a provision of this Act and arising out of or 
        relating to such contract, arbitration may be used to settle 
        such controversy only if, after such controversy arises, all 
        parties to such controversy consent in writing to use 
        arbitration to settle such controversy.
            ``(2) Explanation required.--Notwithstanding any other 
        provision of law, whenever arbitration is elected to settle a 
        dispute pursuant to paragraph (1), the arbitrator shall provide 
        the parties to such contract with a written explanation of the 
        factual and legal basis for any decision made by the arbitrator 
        in the course of such arbitration.''.
    (b) Applicability.--Subsection (d) of such section, as added by 
subsection (a), shall apply with respect to contracts entered into, 
amended, altered, modified, renewed, or extended after the date of the 
enactment of this Act.

SEC. 402. ISSUANCE AND SERVICE OF CIVIL INVESTIGATIVE DEMANDS BY 
              ATTORNEY GENERAL UNDER SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) In General.--Section 801 of the Servicemembers Civil Relief Act 
(50 U.S.C. 4041) is amended by adding at the end the following:
    ``(d) Issuance and Service of Civil Investigative Demands.--
            ``(1) In general.--Whenever the Attorney General has reason 
        to believe that any person may be in possession, custody, or 
        control of any documentary material relevant to an 
        investigation under this Act, the Attorney General may, before 
        commencing a civil action under subsection (a), issue in 
        writing and serve upon such person, a civil investigative 
        demand requiring--
                    ``(A) the production of such documentary material 
                for inspection and copying;
                    ``(B) that the custodian of such documentary 
                material answer in writing written questions with 
                respect to such documentary material; or
                    ``(C) the production of any combination of such 
                documentary material or answers.
            ``(2) False claims.--The provisions of section 3733 of 
        title 31, United States Code, governing the authority to issue, 
        use, and enforce civil investigative demands shall apply with 
        respect to the authority to issue, use, and enforce civil 
        investigative demands under this section, except that, for 
        purposes of applying such section 3733--
                    ``(A) references to false claims law investigators 
                or investigations shall be considered references to 
                investigators or investigations under this Act;
                    ``(B) references to interrogatories shall be 
                considered references to written questions, and answers 
                to such need not be under oath;
                    ``(C) the definitions relating to `false claims 
                law' shall not apply; and
                    ``(D) provisions relating to qui tam relators shall 
                not apply.
            ``(3) Annual report.--
                    ``(A) In general.--Not later than one year after 
                the date of the enactment of the SCRA Enhancement and 
                Improvement Act of 2016 and not less frequently than 
                once each year thereafter, the Attorney General shall 
                submit to the Committee on Veterans' Affairs of the 
                Senate and the Committee on Veterans' Affairs of the 
                House of Representatives a report on the issuance of 
                civil investigative demands under this subsection 
                during the previous one-year period.
                    ``(B) Elements.--Each report submitted under 
                subparagraph (A) shall include the following for the 
                year covered by the report:
                            ``(i) The number of times that a civil 
                        investigative demand was issued under this 
                        subsection.
                            ``(ii) For each civil investigative demand 
                        issued under this subsection with respect to an 
                        investigation, whether such investigation 
                        resulted in a settlement or conviction.''.
    (b) Effective Date.--Subsection (d) of such section, as added by 
subsection (a), shall take effect on the date of the enactment of this 
Act and shall apply with respect to all violations of the 
Servicemembers Civil Relief Act (50 U.S.C. 3901 et seq.), regardless of 
when the violations are alleged to have occurred.

SEC. 403. INCREASE IN CIVIL PENALTIES FOR VIOLATION OF SERVICEMEMBERS 
              CIVIL RELIEF ACT.

    (a) In General.--Section 801(b)(3) of the Servicemembers Civil 
Relief Act (50 U.S.C. 4041(b)(3)) is amended--
            (1) in subparagraph (A), by striking ``$55,000'' and 
        inserting ``$110,000''; and
            (2) in subparagraph (B), by striking ``$110,000'' and 
        inserting ``$220,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 180 days after the date of the 
enactment of this Act and shall apply with respect to violations of the 
Servicemembers Civil Relief Act (50 U.S.C. 3901 et seq.) that occur on 
or after such date.

                         TITLE V--OTHER MATTERS

SEC. 501. TRANSFER OF DEFINITIONS OF MILITARY ORDERS AND CONTINENTAL 
              UNITED STATES.

    (a) Transfer of Definitions.--The Servicemembers Civil Relief Act 
(50 U.S.C. 3901 et seq.) is amended by transferring paragraphs (1) and 
(2) of section 305(i) (50 U.S.C. 3955(i)) to the end of section 101 (50 
U.S.C. 3911) and redesignating such paragraphs, as so transferred, as 
paragraphs (10) and (11).
    (b) Conforming Amendments.--Such Act is further amended--
            (1) in section 305 (50 U.S.C. 3955), as amended by 
        subsection (a), by striking subsection (i); and
            (2) in section 705(a) (50 U.S.C. 4025(a)), in the matter 
        before paragraph (1), by striking ``or naval''.

SEC. 502. CLERICAL AMENDMENTS.

    (a) In General.--The heading for section 305 of the Servicemembers 
Civil Relief Act (50 U.S.C. 3955) is amended by striking ``residential 
or motor vehicle leases'' and inserting ``leases of premises occupied 
and motor vehicles used''.
    (b) Table of Contents.--The table of contents in section 1(b) of 
such Act (50 U.S.C. 3901(b)) is amended by striking the item relating 
to section 305 and inserting the following new item:

``Sec. 305. Termination of leases of premises occupied and motor 
                            vehicles used.''.
                                 <all>