[Congressional Record Volume 149, Number 175 (Monday, December 8, 2003)]
[House]
[Pages H12868-H12878]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1730
SERVICEMEMBERS CIVIL RELIEF ACT
Mr. SMITH of New Jersey. Mr. Speaker, I ask unanimous consent to take
from the Speaker's table the bill (H.R. 100) to restate, clarify, and
revise the Soldiers' and Sailors' Civil Relief Act of 1940, with a
Senate amendment thereto, and concur in the Senate amendment.
The Clerk read the title of the bill.
The Clerk read the Senate amendment, as follows:
Senate Amendment:
Strike out all after the enacting clause and insert:
SECTION 1. RESTATEMENT OF ACT.
The Soldiers' and Sailors' Civil Relief Act of 1940 (50
U.S.C. App. 501 et seq.) is amended to read as follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This Act may be cited as the
`Servicemembers Civil Relief Act'.
``(b) Table of Contents.--The table of contents of this Act
is as follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Purpose.
``TITLE I--GENERAL PROVISIONS
``Sec. 101. Definitions.
``Sec. 102. Jurisdiction and applicability of Act.
``Sec. 103. Protection of persons secondarily liable.
``Sec. 104. Extension of protections to citizens serving with allied
forces.
``Sec. 105. Notification of benefits.
``Sec. 106. Extension of rights and protections to Reserves ordered to
report for military service and to persons ordered to
report for induction.
``Sec. 107. Waiver of rights pursuant to written agreement.
``Sec. 108. Exercise of rights under Act not to affect certain future
financial transactions.
``Sec. 109. Legal representatives.
``TITLE II--GENERAL RELIEF
``Sec. 201. Protection of servicemembers against default judgments.
``Sec. 202. Stay of proceedings when servicemember has notice.
``Sec. 203. Fines and penalties under contracts.
``Sec. 204. Stay or vacation of execution of judgments, attachments,
and garnishments.
``Sec. 205. Duration and term of stays; codefendants not in service.
``Sec. 206. Statute of limitations.
``Sec. 207. Maximum rate of interest on debts incurred before military
service.
``TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
``Sec. 301. Evictions and distress.
``Sec. 302. Protection under installment contracts for purchase or
lease.
``Sec. 303. Mortgages and trust deeds.
``Sec. 304. Settlement of stayed cases relating to personal property.
``Sec. 305. Termination of residential or motor vehicle leases.
``Sec. 306. Protection of life insurance policy.
``Sec. 307. Enforcement of storage liens.
``Sec. 308. Extension of protections to dependents.
``TITLE IV--LIFE INSURANCE
``Sec. 401. Definitions.
``Sec. 402. Insurance rights and protections.
``Sec. 403. Application for insurance protection.
``Sec. 404. Policies entitled to protection and lapse of policies.
``Sec. 405. Policy restrictions.
``Sec. 406. Deduction of unpaid premiums.
``Sec. 407. Premiums and interest guaranteed by United States.
``Sec. 408. Regulations.
``Sec. 409. Review of findings of fact and conclusions of law.
``TITLE V--TAXES AND PUBLIC LANDS
``Sec. 501. Taxes respecting personal property, money, credits, and
real property.
``Sec. 502. Rights in public lands.
``Sec. 503. Desert-land entries.
``Sec. 504. Mining claims.
``Sec. 505. Mineral permits and leases.
``Sec. 506. Perfection or defense of rights.
``Sec. 507. Distribution of information concerning benefits of title.
``Sec. 508. Land rights of servicemembers.
``Sec. 509. Regulations.
``Sec. 510. Income taxes.
``Sec. 511. Residence for tax purposes.
``TITLE VI--ADMINISTRATIVE REMEDIES
``Sec. 601. Inappropriate use of Act.
``Sec. 602. Certificates of service; persons reported missing.
``Sec. 603. Interlocutory orders.
``TITLE VII--FURTHER RELIEF
``Sec. 701. Anticipatory relief.
``Sec. 702. Power of attorney.
``Sec. 703. Professional liability protection.
``Sec. 704. Health insurance reinstatement.
``Sec. 705. Guarantee of residency for military personnel.
``Sec. 706. Business or trade obligations.
``SEC. 2. PURPOSE.
``The purposes of this Act are--
``(1) to provide for, strengthen, and expedite the national
defense through protection extended by this Act to
servicemembers of the United States to enable such persons to
devote their entire energy to the defense needs of the
Nation; and
``(2) to provide for the temporary suspension of judicial
and administrative proceedings and transactions that may
adversely affect the civil rights of servicemembers during
their military service.
``TITLE I--GENERAL PROVISIONS
``SEC. 101. DEFINITIONS.
``For the purposes of this Act:
``(1) Servicemember.--The term `servicemember' means a
member of the uniformed services, as that term is defined in
section 101(a)(5) of title 10, United States Code.
``(2) Military service.--The term `military service'
means--
[[Page H12869]]
``(A) in the case of a servicemember who is a member of the
Army, Navy, Air Force, Marine Corps, or Coast Guard--
``(i) active duty, as defined in section 101(d)(1) of title
10, United States Code, and
``(ii) in the case of a member of the National Guard,
includes service under a call to active service authorized by
the President or the Secretary of Defense for a period of
more than 30 consecutive days under section 502(f) of title
32, United States Code, for purposes of responding to a
national emergency declared by the President and supported by
Federal funds;
``(B) in the case of a servicemember who is a commissioned
officer of the Public Health Service or the National Oceanic
and Atmospheric Administration, active service; and
``(C) any period during which a servicemember is absent
from duty on account of sickness, wounds, leave, or other
lawful cause.
``(3) Period of military service.--The term `period of
military service' means the period beginning on the date on
which a servicemember enters military service and ending on
the date on which the servicemember is released from military
service or dies while in military service.
``(4) Dependent.--The term `dependent', with respect to a
servicemember, means--
``(A) the servicemember's spouse;
``(B) the servicemember's child (as defined in section
101(4) of title 38, United States Code); or
``(C) an individual for whom the servicemember provided
more than one-half of the individual's support for 180 days
immediately preceding an application for relief under this
Act.
``(5) Court.--The term `court' means a court or an
administrative agency of the United States or of any State
(including any political subdivision of a State), whether or
not a court or administrative agency of record.
``(6) State.--The term `State' includes--
``(A) a commonwealth, territory, or possession of the
United States; and
``(B) the District of Columbia.
``(7) Secretary concerned.--The term `Secretary
concerned'--
``(A) with respect to a member of the armed forces, has the
meaning given that term in section 101(a)(9) of title 10,
United States Code;
``(B) with respect to a commissioned officer of the Public
Health Service, means the Secretary of Health and Human
Services; and
``(C) with respect to a commissioned officer of the
National Oceanic and Atmospheric Administration, means the
Secretary of Commerce.
``(8) Motor vehicle.--The term `motor vehicle' has the
meaning given that term in section 30102(a)(6) of title 49,
United States Code.
``SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.
``(a) Jurisdiction.--This Act applies to--
``(1) the United States;
``(2) each of the States, including the political
subdivisions thereof; and
``(3) all territory subject to the jurisdiction of the
United States.
``(b) Applicability to Proceedings.--This Act applies to
any judicial or administrative proceeding commenced in any
court or agency in any jurisdiction subject to this Act. This
Act does not apply to criminal proceedings.
``(c) Court in Which Application May Be Made.--When under
this Act any application is required to be made to a court in
which no proceeding has already been commenced with respect
to the matter, such application may be made to any court
which would otherwise have jurisdiction over the matter.
``SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.
``(a) Extension of Protection When Actions Stayed,
Postponed, or Suspended.--Whenever pursuant to this Act a
court stays, postpones, or suspends (1) the enforcement of an
obligation or liability, (2) the prosecution of a suit or
proceeding, (3) the entry or enforcement of an order, writ,
judgment, or decree, or (4) the performance of any other act,
the court may likewise grant such a stay, postponement, or
suspension to a surety, guarantor, endorser, accommodation
maker, comaker, or other person who is or may be primarily or
secondarily subject to the obligation or liability the
performance or enforcement of which is stayed, postponed, or
suspended.
``(b) Vacation or Set-Aside of Judgments.--When a judgment
or decree is vacated or set aside, in whole or in part,
pursuant to this Act, the court may also set aside or vacate,
as the case may be, the judgment or decree as to a surety,
guarantor, endorser, accommodation maker, comaker, or other
person who is or may be primarily or secondarily liable on
the contract or liability for the enforcement of the judgment
or decree.
``(c) Bail Bond Not To Be Enforced During Period of
Military Service.--A court may not enforce a bail bond during
the period of military service of the principal on the bond
when military service prevents the surety from obtaining the
attendance of the principal. The court may discharge the
surety and exonerate the bail, in accordance with principles
of equity and justice, during or after the period of military
service of the principal.
``(d) Waiver of Rights.--
``(1) Waivers not precluded.--This Act does not prevent a
waiver in writing by a surety, guarantor, endorser,
accommodation maker, comaker, or other person (whether
primarily or secondarily liable on an obligation or
liability) of the protections provided under subsections (a)
and (b). Any such waiver is effective only if it is executed
as an instrument separate from the obligation or liability
with respect to which it applies.
``(2) Waiver invalidated upon entrance to military
service.--If a waiver under paragraph (1) is executed by an
individual who after the execution of the waiver enters
military service, or by a dependent of an individual who
after the execution of the waiver enters military service,
the waiver is not valid after the beginning of the period of
such military service unless the waiver was executed by such
individual or dependent during the period specified in
section 106.
``SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH
ALLIED FORCES.
``A citizen of the United States who is serving with the
forces of a nation with which the United States is allied in
the prosecution of a war or military action is entitled to
the relief and protections provided under this Act if that
service with the allied force is similar to military service
as defined in this Act. The relief and protections provided
to such citizen shall terminate on the date of discharge or
release from such service.
``SEC. 105. NOTIFICATION OF BENEFITS.
``The Secretary concerned shall ensure that notice of the
benefits accorded by this Act is provided in writing to
persons in military service and to persons entering military
service.
``SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES
ORDERED TO REPORT FOR MILITARY SERVICE AND TO
PERSONS ORDERED TO REPORT FOR INDUCTION.
``(a) Reserves Ordered To Report for Military Service.--A
member of a reserve component who is ordered to report for
military service is entitled to the rights and protections of
this title and titles II and III during the period beginning
on the date of the member's receipt of the order and ending
on the date on which the member reports for military service
(or, if the order is revoked before the member so reports, or
the date on which the order is revoked).
``(b) Persons Ordered To Report for Induction.--A person
who has been ordered to report for induction under the
Military Selective Service Act (50 U.S.C. App. 451 et seq.)
is entitled to the rights and protections provided a
servicemember under this title and titles II and III during
the period beginning on the date of receipt of the order for
induction and ending on the date on which the person reports
for induction (or, if the order to report for induction is
revoked before the date on which the person reports for
induction, on the date on which the order is revoked).
``SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.
``(a) In General.--A servicemember may waive any of the
rights and protections provided by this Act. In the case of a
waiver that permits an action described in subsection (b),
the waiver is effective only if made pursuant to a written
agreement of the parties that is executed during or after the
servicemember's period of military service. The written
agreement shall specify the legal instrument to which the
waiver applies and, if the servicemember is not a party to
that instrument, the servicemember concerned.
``(b) Actions Requiring Waivers in Writing.--The
requirement in subsection (a) for a written waiver applies to
the following:
``(1) The modification, termination, or cancellation of--
``(A) a contract, lease, or bailment; or
``(B) an obligation secured by a mortgage, trust, deed,
lien, or other security in the nature of a mortgage.
``(2) The repossession, retention, foreclosure, sale,
forfeiture, or taking possession of property that--
``(A) is security for any obligation; or
``(B) was purchased or received under a contract, lease, or
bailment.
``(c) Coverage of Periods After Orders Received.--For the
purposes of this section--
``(1) a person to whom section 106 applies shall be
considered to be a servicemember; and
``(2) the period with respect to such a person specified in
subsection (a) or (b), as the case may be, of section 106
shall be considered to be a period of military service.
``SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT
CERTAIN FUTURE FINANCIAL TRANSACTIONS.
``Application by a servicemember for, or receipt by a
servicemember of, a stay, postponement, or suspension
pursuant to this Act in the payment of a tax, fine, penalty,
insurance premium, or other civil obligation or liability of
that servicemember shall not itself (without regard to other
considerations) provide the basis for any of the following:
``(1) A determination by a lender or other person that the
servicemember is unable to pay the civil obligation or
liability in accordance with its terms.
``(2) With respect to a credit transaction between a
creditor and the servicemember--
``(A) a denial or revocation of credit by the creditor;
``(B) a change by the creditor in the terms of an existing
credit arrangement; or
``(C) a refusal by the creditor to grant credit to the
servicemember in substantially the amount or on substantially
the terms requested.
``(3) An adverse report relating to the creditworthiness of
the servicemember by or to a person engaged in the practice
of assembling or evaluating consumer credit information.
``(4) A refusal by an insurer to insure the servicemember.
``(5) An annotation in a servicemember's record by a
creditor or a person engaged in the practice of assembling or
evaluating consumer credit information, identifying the
servicemember as a member of the National Guard or a reserve
component.
``(6) A change in the terms offered or conditions required
for the issuance of insurance.
``SEC. 109. LEGAL REPRESENTATIVES.
``(a) Representative.--A legal representative of a
servicemember for purposes of this Act is either of the
following:
[[Page H12870]]
``(1) An attorney acting on the behalf of a servicemember.
``(2) An individual possessing a power of attorney.
``(b) Application.--Whenever the term `servicemember' is
used in this Act, such term shall be treated as including a
reference to a legal representative of the servicemember.
``TITLE II--GENERAL RELIEF
``SEC. 201. PROTECTION OF SERVICEMEMBERS AGAINST DEFAULT
JUDGMENTS.
``(a) Applicability of Section.--This section applies to
any civil action or proceeding in which the defendant does
not make an appearance.
``(b) Affidavit Requirement.--
``(1) Plaintiff to file affidavit.--In any action or
proceeding covered by this section, the court, before
entering judgment for the plaintiff, shall require the
plaintiff to file with the court an affidavit--
``(A) stating whether or not the defendant is in military
service and showing necessary facts to support the affidavit;
or
``(B) if the plaintiff is unable to determine whether or
not the defendant is in military service, stating that the
plaintiff is unable to determine whether or not the defendant
is in military service.
``(2) Appointment of attorney to represent defendant in
military service.--If in an action covered by this section it
appears that the defendant is in military service, the court
may not enter a judgment until after the court appoints an
attorney to represent the defendant. If an attorney appointed
under this section to represent a servicemember cannot locate
the servicemember, actions by the attorney in the case shall
not waive any defense of the servicemember or otherwise bind
the servicemember.
``(3) Defendant's military status not ascertained by
affidavit.--If based upon the affidavits filed in such an
action, the court is unable to determine whether the
defendant is in military service, the court, before entering
judgment, may require the plaintiff to file a bond in an
amount approved by the court. If the defendant is later found
to be in military service, the bond shall be available to
indemnify the defendant against any loss or damage the
defendant may suffer by reason of any judgment for the
plaintiff against the defendant, should the judgment be set
aside in whole or in part. The bond shall remain in effect
until expiration of the time for appeal and setting aside of
a judgment under applicable Federal or State law or
regulation or under any applicable ordinance of a political
subdivision of a State. The court may issue such orders or
enter such judgments as the court determines necessary to
protect the rights of the defendant under this Act.
``(4) Satisfaction of requirement for affidavit.--The
requirement for an affidavit under paragraph (1) may be
satisfied by a statement, declaration, verification, or
certificate, in writing, subscribed and certified or declared
to be true under penalty of perjury.
``(c) Penalty for Making or Using False Affidavit.--A
person who makes or uses an affidavit permitted under
subsection (b) (or a statement, declaration, verification, or
certificate as authorized under subsection (b)(4)) knowing it
to be false, shall be fined as provided in title 18, United
States Code, or imprisoned for not more than one year, or
both.
``(d) Stay of Proceedings.--In an action covered by this
section in which the defendant is in military service, the
court shall grant a stay of proceedings for a minimum period
of 90 days under this subsection upon application of counsel,
or on the court's own motion, if the court determines that--
``(1) there may be a defense to the action and a defense
cannot be presented without the presence of the defendant; or
``(2) after due diligence, counsel has been unable to
contact the defendant or otherwise determine if a meritorious
defense exists.
``(e) Inapplicability of Section 202 Procedures.--A stay of
proceedings under subsection (d) shall not be controlled by
procedures or requirements under section 202.
``(f) Section 202 Protection.--If a servicemember who is a
defendant in an action covered by this section receives
actual notice of the action, the servicemember may request a
stay of proceeding under section 202.
``(g) Vacation or Setting Aside of Default Judgments.--
``(1) Authority for court to vacate or set aside
judgment.--If a default judgment is entered in an action
covered by this section against a servicemember during the
servicemember's period of military service (or within 60 days
after termination of or release from such military service),
the court entering the judgment shall, upon application by or
on behalf of the servicemember, reopen the judgment for the
purpose of allowing the servicemember to defend the action if
it appears that--
``(A) the servicemember was materially affected by reason
of that military service in making a defense to the action;
and
``(B) the servicemember has a meritorious or legal defense
to the action or some part of it.
``(2) Time for filing application.--An application under
this subsection must be filed not later than 90 days after
the date of the termination of or release from military
service.
``(h) Protection of Bona Fide Purchaser.--If a court
vacates, sets aside, or reverses a default judgment against a
servicemember and the vacating, setting aside, or reversing
is because of a provision of this Act, that action shall not
impair a right or title acquired by a bona fide purchaser for
value under the default judgment.
``SEC. 202. STAY OF PROCEEDINGS WHEN SERVICEMEMBER HAS
NOTICE.
``(a) Applicability of Section.--This section applies to
any civil action or proceeding in which the defendant at the
time of filing an application under this section--
``(1) is in military service or is within 90 days after
termination of or release from military service; and
``(2) has received notice of the action or proceeding.
``(b) Stay of Proceedings.--
``(1) Authority for stay.--At any stage before final
judgment in a civil action or proceeding in which a
servicemember described in subsection (a) is a party, the
court may on its own motion and shall, upon application by
the servicemember, stay the action for a period of not less
than 90 days, if the conditions in paragraph (2) are met.
``(2) Conditions for stay.--An application for a stay under
paragraph (1) shall include the following:
``(A) A letter or other communication setting forth facts
stating the manner in which current military duty
requirements materially affect the servicemember's ability to
appear and stating a date when the servicemember will be
available to appear.
``(B) A letter or other communication from the
servicemember's commanding officer stating that the
servicemember's current military duty prevents appearance and
that military leave is not authorized for the servicemember
at the time of the letter.
``(c) Application Not a Waiver of Defenses.--An application
for a stay under this section does not constitute an
appearance for jurisdictional purposes and does not
constitute a waiver of any substantive or procedural defense
(including a defense relating to lack of personal
jurisdiction).
``(d) Additional Stay.--
``(1) Application.--A servicemember who is granted a stay
of a civil action or proceeding under subsection (b) may
apply for an additional stay based on continuing material
affect of military duty on the servicemember's ability to
appear. Such an application may be made by the servicemember
at the time of the initial application under subsection (b)
or when it appears that the servicemember is unavailable to
prosecute or defend the action. The same information required
under subsection (b)(2) shall be included in an application
under this subsection.
``(2) Appointment of counsel when additional stay
refused.--If the court refuses to grant an additional stay of
proceedings under paragraph (1), the court shall appoint
counsel to represent the servicemember in the action or
proceeding.
``(e) Coordination With Section 201.--A servicemember who
applies for a stay under this section and is unsuccessful may
not seek the protections afforded by section 201.
``(f) Inapplicability to Section 301.--The protections of
this section do not apply to section 301.
``SEC. 203. FINES AND PENALTIES UNDER CONTRACTS.
``(a) Prohibition of Penalties.--When an action for
compliance with the terms of a contract is stayed pursuant to
this Act, a penalty shall not accrue for failure to comply
with the terms of the contract during the period of the stay.
``(b) Reduction or Waiver of Fines or Penalties.--If a
servicemember fails to perform an obligation arising under a
contract and a penalty is incurred arising from that
nonperformance, a court may reduce or waive the fine or
penalty if--
``(1) the servicemember was in military service at the time
the fine or penalty was incurred; and
``(2) the ability of the servicemember to perform the
obligation was materially affected by such military service.
``SEC. 204. STAY OR VACATION OF EXECUTION OF JUDGMENTS,
ATTACHMENTS, AND GARNISHMENTS.
``(a) Court Action Upon Material Affect Determination.--If
a servicemember, in the opinion of the court, is materially
affected by reason of military service in complying with a
court judgment or order, the court may on its own motion and
shall on application by the servicemember--
``(1) stay the execution of any judgment or order entered
against the servicemember; and
``(2) vacate or stay an attachment or garnishment of
property, money, or debts in the possession of the
servicemember or a third party, whether before or after
judgment.
``(b) Applicability.--This section applies to an action or
proceeding commenced in a court against a servicemember
before or during the period of the servicemember's military
service or within 90 days after such service terminates.
``SEC. 205. DURATION AND TERM OF STAYS; CODEFENDANTS NOT IN
SERVICE.
``(a) Period of Stay.--A stay of an action, proceeding,
attachment, or execution made pursuant to the provisions of
this Act by a court may be ordered for the period of military
service and 90 days thereafter, or for any part of that
period. The court may set the terms and amounts for such
installment payments as is considered reasonable by the
court.
``(b) Codefendants.--If the servicemember is a codefendant
with others who are not in military service and who are not
entitled to the relief and protections provided under this
Act, the plaintiff may proceed against those other defendants
with the approval of the court.
``(c) Inapplicability of Section.--This section does not
apply to sections 202 and 701.
``SEC. 206. STATUTE OF LIMITATIONS.
``(a) Tolling of Statutes of Limitation During Military
Service.--The period of a servicemember's military service
may not be included in computing any period limited by law,
regulation, or order for the bringing of any action or
proceeding in a court, or in any board, bureau, commission,
department, or other agency of a State (or political
subdivision of a State)
[[Page H12871]]
or the United States by or against the servicemember or the
servicemember's heirs, executors, administrators, or assigns.
``(b) Redemption of Real Property.--A period of military
service may not be included in computing any period provided
by law for the redemption of real property sold or forfeited
to enforce an obligation, tax, or assessment.
``(c) Inapplicability to Internal Revenue Laws.--This
section does not apply to any period of limitation prescribed
by or under the internal revenue laws of the United States.
``SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE
MILITARY SERVICE.
``(a) Interest Rate Limitation.--
``(1) Limitation to 6 percent.--An obligation or liability
bearing interest at a rate in excess of 6 percent per year
that is incurred by a servicemember, or the servicemember and
the servicemember's spouse jointly, before the servicemember
enters military service shall not bear interest at a rate in
excess of 6 percent per year during the period of military
service.
``(2) Forgiveness of interest in excess of 6 percent.--
Interest at a rate in excess of 6 percent per year that would
otherwise be incurred but for the prohibition in paragraph
(1) is forgiven.
``(3) Prevention of acceleration of principal.--The amount
of any periodic payment due from a servicemember under the
terms of the instrument that created an obligation or
liability covered by this section shall be reduced by the
amount of the interest forgiven under paragraph (2) that is
allocable to the period for which such payment is made.
``(b) Implementation of Limitation.--
``(1) Written notice to creditor.--In order for an
obligation or liability of a servicemember to be subject to
the interest rate limitation in subsection (a), the
servicemember shall provide 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, not later than 180 days after the date of the
servicemember's termination or release from military service.
``(2) Limitation effective as of date of order to active
duty.--Upon receipt of written notice and a copy of orders
calling a servicemember to military service, the creditor
shall treat the debt in accordance with subsection (a),
effective as of the date on which the servicemember is called
to military service.
``(c) Creditor Protection.--A court may grant a creditor
relief from the limitations of this section if, in the
opinion of the court, the ability of the servicemember to pay
interest upon the obligation or liability at a rate in excess
of 6 percent per year is not materially affected by reason of
the servicemember's military service.
``(d) Interest.--As used in this section, the term
`interest' includes service charges, renewal charges, fees,
or any other charges (except bona fide insurance) with
respect to an obligation or liability.
``TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
``SEC. 301. EVICTIONS AND DISTRESS.
``(a) Court-Ordered Eviction.--
``(1) In general.--Except by court order, a landlord (or
another person with paramount title) may not--
``(A) evict a servicemember, or the dependents of a
servicemember, during a period of military service of the
servicemember, from premises--
``(i) that are occupied or intended to be occupied
primarily as a residence; and
``(ii) for which the monthly rent does not exceed $2,400,
as adjusted under paragraph (2) for years after 2003; or
``(B) subject such premises to a distress during the period
of military service.
``(2) Housing price inflation adjustment.--(A) For calendar
years beginning with 2004, the amount in effect under
paragraph (1)(A)(ii) shall be increased by the housing price
inflation adjustment for the calendar year involved.
``(B) For purposes of this paragraph--
``(i) The housing price inflation adjustment for any
calendar year is the percentage change (if any) by which--
``(I) the CPI housing component for November of the
preceding calendar year, exceeds
``(II) the CPI housing component for November of 1984.
``(ii) The term `CPI housing component' means the index
published by the Bureau of Labor Statistics of the Department
of Labor known as the Consumer Price Index, All Urban
Consumers, Rent of Primary Residence, U.S. City Average.
``(3) Publication of housing price inflation adjustment.--
The Secretary of Defense shall cause to be published in the
Federal Register each year the amount in effect under
paragraph (1)(A)(ii) for that year following the housing
price inflation adjustment for that year pursuant to
paragraph (2). Such publication shall be made for a year not
later than 60 days after such adjustment is made for that
year.
``(b) Stay of Execution.--
``(1) Court authority.--Upon an application for eviction or
distress with respect to premises covered by this section,
the court may on its own motion and shall, if a request is
made by or on behalf of a servicemember whose ability to pay
the agreed rent is materially affected by military service--
``(A) stay the proceedings for a period of 90 days, unless
in the opinion of the court, justice and equity require a
longer or shorter period of time; or
``(B) adjust the obligation under the lease to preserve the
interests of all parties.
``(2) Relief to landlord.--If a stay is granted under
paragraph (1), the court may grant to the landlord (or other
person with paramount title) such relief as equity may
require.
``(c) Penalties.--
``(1) Misdemeanor.--Except as provided in subsection (a), a
person who knowingly takes part in an eviction or distress
described in subsection (a), or who knowingly attempts to do
so, shall be fined as provided in title 18, United States
Code, or imprisoned for not more than one year, or both.
``(2) Preservation of other remedies and rights.--The
remedies and rights provided under this section are in
addition to and do not preclude any remedy for wrongful
conversion (or wrongful eviction) otherwise available under
the law to the person claiming relief under this section,
including any award for consequential and punitive damages.
``(d) Rent Allotment From Pay of Servicemember.--To the
extent required by a court order related to property which is
the subject of a court action under this section, the
Secretary concerned shall make an allotment from the pay of a
servicemember to satisfy the terms of such order, except that
any such allotment shall be subject to regulations prescribed
by the Secretary concerned establishing the maximum amount of
pay of servicemembers that may be allotted under this
subsection.
``(e) Limitation of Applicability.--Section 202 is not
applicable to this section.
``SEC. 302. PROTECTION UNDER INSTALLMENT CONTRACTS FOR
PURCHASE OR LEASE.
``(a) Protection Upon Breach of Contract.--
``(1) Protection after entering military service.--After a
servicemember enters military service, a contract by the
servicemember for--
``(A) the purchase of real or personal property (including
a motor vehicle); or
``(B) the lease or bailment of such property,
may not be rescinded or terminated for a breach of terms of
the contract occurring before or during that person's
military service, nor may the property be repossessed for
such breach without a court order.
``(2) Applicability.--This section applies only to a
contract for which a deposit or installment has been paid by
the servicemember before the servicemember enters military
service.
``(b) Penalties.--
``(1) Misdemeanor.--A person who knowingly resumes
possession of property in violation of subsection (a), or in
violation of section 107 of this Act, or who knowingly
attempts to do so, shall be fined as provided in title 18,
United States Code, or imprisoned for not more than one year,
or both.
``(2) Preservation of other remedies and rights.--The
remedies 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 and punitive damages.
``(c) Authority of Court.--In a hearing based on this
section, the court--
``(1) may order repayment to the servicemember of all or
part of the prior installments or deposits as a condition of
terminating the contract and resuming possession of the
property;
``(2) may, on its own motion, and shall on application by a
servicemember when the servicemember's ability to comply with
the contract is materially affected by military service, stay
the proceedings for a period of time as, in the opinion of
the court, justice and equity require; or
``(3) may make other disposition as is equitable to
preserve the interests of all parties.
``SEC. 303. MORTGAGES AND TRUST DEEDS.
``(a) Mortgage as Security.--This section applies only to
an obligation on real or personal property owned by a
servicemember that--
``(1) originated before the period of the servicemember's
military service and for which the servicemember is still
obligated; and
``(2) is secured by a mortgage, trust deed, or other
security in the nature of a mortgage.
``(b) Stay of Proceedings and Adjustment of Obligation.--In
an action filed during, or within 90 days after, a
servicemember's period of military service to enforce an
obligation described in subsection (a), the court may after a
hearing and on its own motion and shall upon application by a
servicemember when the servicemember's ability to comply with
the obligation is materially affected by military service--
``(1) stay the proceedings for a period of time as justice
and equity require, or
``(2) adjust the obligation to preserve the interests of
all parties.
``(c) Sale or Foreclosure.--A sale, foreclosure, or seizure
of property for a breach of an obligation described in
subsection (a) shall not be valid if made during, or within
90 days after, the period of the servicemember's military
service except--
``(1) upon a court order granted before such sale,
foreclosure, or seizure with a return made and approved by
the court; or
``(2) if made pursuant to an agreement as provided in
section 107.
``(d) Penalties.--
``(1) Misdemeanor.--A person who knowingly makes or causes
to be made a sale, foreclosure, or seizure of property that
is prohibited by subsection (c), or who knowingly attempts to
do so, shall be fined as provided in title 18, United States
Code, or imprisoned for not more than one year, or both.
``(2) Preservation of other remedies.--The remedies 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 consequential and punitive damages.
``SEC. 304. SETTLEMENT OF STAYED CASES RELATING TO PERSONAL
PROPERTY.
``(a) Appraisal of Property.--When a stay is granted
pursuant to this Act in a proceeding
[[Page H12872]]
to foreclose a mortgage on or to repossess personal property,
or to rescind or terminate a contract for the purchase of
personal property, the court may appoint three disinterested
parties to appraise the property.
``(b) Equity Payment.--Based on the appraisal, and if undue
hardship to the servicemember's dependents will not result,
the court may order that the amount of the servicemember's
equity in the property be paid to the servicemember, or the
servicemember's dependents, as a condition of foreclosing the
mortgage, repossessing the property, or rescinding or
terminating the contract.
``SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VEHICLE
LEASES.
``(a) Termination by Lessee.--The lessee on a lease
described in subsection (b) may, at the lessee's option,
terminate the lease at any time after--
``(1) the lessee's entry into military service; or
``(2) the date of the lessee's military orders described in
paragraph (1)(B) or (2)(B) of subsection (b), as the case may
be.
``(b) Covered Leases.--This section applies to the
following leases:
``(1) Leases of premises.--A lease of premises occupied, or
intended to be occupied, by a servicemember or a
servicemember's dependents for a residential, professional,
business, agricultural, or similar purpose if--
``(A) the lease is executed by or on behalf of a person who
thereafter and during the term of the lease enters military
service; or
``(B) the servicemember, while in military service,
executes the lease and thereafter receives military orders
for a permanent change of station or to deploy with a
military unit for a period of not less than 90 days.
``(2) Leases of motor vehicles.--A lease of a motor vehicle
used, or intended to be used, by a servicemember or a
servicemember's dependents for personal or business
transportation if--
``(A) the lease is executed by or on behalf of a person who
thereafter and during the term of the lease enters military
service under a call or order specifying a period of not less
than 180 days (or who enters military service under a call or
order specifying a period of 180 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 180
days); or
``(B) the servicemember, while in military service,
executes the lease 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 180 days.
``(c) Manner of Termination.--
``(1) In general.--Termination of a lease under subsection
(a) is made--
``(A) by delivery by the lessee of written notice of such
termination, and a copy of the servicemember's military
orders, to the lessor (or the lessor's grantee), or to the
lessor's agent (or the agent's grantee); and
``(B) in the case of a lease of a motor vehicle, by return
of the motor vehicle by the lessee to the lessor (or the
lessor's grantee), or to the lessor's agent (or the agent's
grantee), not later than 15 days after the date of the
delivery of written notice under subparagraph (A).
``(2) Delivery of notice.--Delivery of notice under
paragraph (1)(A) may be accomplished--
``(A) by hand delivery;
``(B) by private business carrier; or
``(C) by placing the written notice in an envelope with
sufficient postage and with return receipt requested, and
addressed as designated by the lessor (or the lessor's
grantee) or to the lessor's agent (or the agent's grantee),
and depositing the written notice in the United States mails.
``(d) Effective Date of Lease Termination.--
``(1) Lease of premises.--In the case of a lease described
in subsection (b)(1) that provides for monthly payment of
rent, termination of the lease under subsection (a) is
effective 30 days after the first date on which the next
rental payment is due and payable after the date on which the
notice under subsection (c) is delivered. In the case of any
other lease described in subsection (b)(1), termination of
the lease under subsection (a) is effective on the last day
of the month following the month in which the notice is
delivered.
``(2) Lease of motor vehicles.--In the case of a lease
described in subsection (b)(2), termination of the lease
under subsection (a) is effective on the day on which the
requirements of subsection (c) are met for such termination.
``(e) Arrearages and Other Obligations and Liabilities.--
Rents or lease amounts unpaid for the period preceding the
effective date of the lease termination shall be paid on a
prorated basis. In the case of the lease of a motor vehicle,
the lessor may not impose an early termination charge, but
any taxes, summonses, and title and registration fees and any
other obligation and liability of the lessee in accordance
with the terms of the lease, including reasonable charges to
the lessee for excess wear, use and mileage, that are due and
unpaid at the time of termination of the lease shall be paid
by the lessee.
``(f) Rent Paid in Advance.--Rents or lease amounts paid in
advance for a period after the effective date of the
termination of the lease shall be refunded to the lessee by
the lessor (or the lessor's assignee or the assignee's agent)
within 30 days of the effective date of the termination of
the lease.
``(g) Relief to Lessor.--Upon application by the lessor to
a court before the termination date provided in the written
notice, relief granted by this section to a servicemember may
be modified as justice and equity require.
``(h) Penalties.--
``(1) Misdemeanor.--Any person who knowingly seizes, holds,
or detains the personal effects, security deposit, or other
property of a servicemember or a servicemember's dependent
who lawfully terminates a lease covered by this section, or
who knowingly interferes with the removal of such property
from premises covered by such lease, for the purpose of
subjecting or attempting to subject any of such property to a
claim for rent accruing subsequent to the date of termination
of such lease, or attempts to do so, shall be fined as
provided in title 18, United States Code, or imprisoned for
not more than one year, or both.
``(2) Preservation of other remedies.--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.
``SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.
``(a) Assignment of Policy Protected.--If a life insurance
policy on the life of a servicemember is assigned before
military service to secure the payment of an obligation, the
assignee of the policy (except the insurer in connection with
a policy loan) may not exercise, during a period of military
service of the servicemember or within one year thereafter,
any right or option obtained under the assignment without a
court order.
``(b) Exception.--The prohibition in subsection (a) shall
not apply--
``(1) if the assignee has the written consent of the
insured made during the period described in subsection (a);
``(2) when the premiums on the policy are due and unpaid;
or
``(3) upon the death of the insured.
``(c) Order Refused Because of Material Affect.--A court
which receives an application for an order required under
subsection (a) may refuse to grant such order if the court
determines the ability of the servicemember to comply with
the terms of the obligation is materially affected by
military service.
``(d) Treatment of Guaranteed Premiums.--For purposes of
this subsection, premiums guaranteed under the provisions of
title IV of this Act shall not be considered due and unpaid.
``(e) Penalties.--
``(1) Misdemeanor.--A person who knowingly takes an action
contrary to this section, or attempts to do so, shall be
fined as provided in title 18, United States Code, or
imprisoned for not more than one year, or both.
``(2) Preservation of other remedies.--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 consequential or punitive damages.
``SEC. 307. ENFORCEMENT OF STORAGE LIENS.
``(a) Liens.--
``(1) Limitation on foreclosure or enforcement.--A person
holding a lien on the property or effects of a servicemember
may not, during any period of military service of the
servicemember and for 90 days thereafter, foreclose or
enforce any lien on such property or effects without a court
order granted before foreclosure or enforcement.
``(2) Lien defined.--For the purposes of paragraph (1), the
term `lien' includes a lien for storage, repair, or cleaning
of the property or effects of a servicemember or a lien on
such property or effects for any other reason.
``(b) Stay of Proceedings.--In a proceeding to foreclose or
enforce a lien subject to this section, the court may on its
own motion, and shall if requested by a servicemember whose
ability to comply with the obligation resulting in the
proceeding is materially affected by military service--
``(1) stay the proceeding for a period of time as justice
and equity require; or
``(2) adjust the obligation to preserve the interests of
all parties.
The provisions of this subsection do not affect the scope of
section 303.
``(c) Penalties.--
``(1) Misdemeanor.--A person who knowingly takes an action
contrary to this section, or attempts to do so, shall be
fined as provided in title 18, United States Code, or
imprisoned for not more than one year, or both.
``(2) Preservation of other remedies.--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 consequential or punitive damages.
``SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.
``Upon application to a court, a dependent of a
servicemember is entitled to the protections of this title if
the dependent's ability to comply with a lease, contract,
bailment, or other obligation is materially affected by
reason of the servicemember's military service.
``TITLE IV--LIFE INSURANCE
``SEC. 401. DEFINITIONS.
``For the purposes of this title:
``(1) Policy.--The term `policy' means any individual
contract for whole, endowment, universal, or term life
insurance (other than group term life insurance coverage),
including any benefit in the nature of such insurance arising
out of membership in any fraternal or beneficial association
which--
``(A) provides that the insurer may not--
``(i) decrease the amount of coverage or require the
payment of an additional amount as premiums if the insured
engages in military service (except increases in premiums in
individual term insurance based upon age); or
``(ii) limit or restrict coverage for any activity required
by military service; and
``(B) is in force not less than 180 days before the date of
the insured's entry into military
[[Page H12873]]
service and at the time of application under this title.
``(2) Premium.--The term `premium' means the amount
specified in an insurance policy to be paid to keep the
policy in force.
``(3) Insured.--The term `insured' means a servicemember
whose life is insured under a policy.
``(4) Insurer.--The term `insurer' includes any firm,
corporation, partnership, association, or business that is
chartered or authorized to provide insurance and issue
contracts or policies by the laws of a State or the United
States.
``SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.
``(a) Rights and Protections.--The rights and protections
under this title apply to the insured when--
``(1) the insured,
``(2) the insured's legal representative, or
``(3) the insured's beneficiary in the case of an insured
who is outside a State,
applies in writing for protection under this title, unless
the Secretary of Veterans Affairs determines that the
insured's policy is not entitled to protection under this
title.
``(b) Notification and Application.--The Secretary of
Veterans Affairs shall notify the Secretary concerned of the
procedures to be used to apply for the protections provided
under this title. The applicant shall send the original
application to the insurer and a copy to the Secretary of
Veterans Affairs.
``(c) Limitation on Amount.--The total amount of life
insurance coverage protection provided by this title for a
servicemember may not exceed $250,000, or an amount equal to
the Servicemember's Group Life Insurance maximum limit,
whichever is greater, regardless of the number of policies
submitted.
``SEC. 403. APPLICATION FOR INSURANCE PROTECTION.
``(a) Application Procedure.--An application for protection
under this title shall--
``(1) be in writing and signed by the insured, the
insured's legal representative, or the insured's beneficiary,
as the case may be;
``(2) identify the policy and the insurer; and
``(3) include an acknowledgement that the insured's rights
under the policy are subject to and modified by the
provisions of this title.
``(b) Additional Requirements.--The Secretary of Veterans
Affairs may require additional information from the
applicant, the insured and the insurer to determine if the
policy is entitled to protection under this title.
``(c) Notice to the Secretary by the Insurer.--Upon receipt
of the application of the insured, the insurer shall furnish
a report concerning the policy to the Secretary of Veterans
Affairs as required by regulations prescribed by the
Secretary.
``(d) Policy Modification.--Upon application for protection
under this title, the insured and the insurer shall have
constructively agreed to any policy modification necessary to
give this title full force and effect.
``SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE OF
POLICIES.
``(a) Determination.--The Secretary of Veterans Affairs
shall determine whether a policy is entitled to protection
under this title and shall notify the insured and the insurer
of that determination.
``(b) Lapse Protection.--A policy that the Secretary
determines is entitled to protection under this title shall
not lapse or otherwise terminate or be forfeited for the
nonpayment of a premium, or interest or indebtedness on a
premium, after the date on which the application for
protection is received by the Secretary.
``(c) Time Application.--The protection provided by this
title applies during the insured's period of military service
and for a period of two years thereafter.
``SEC. 405. POLICY RESTRICTIONS.
``(a) Dividends.--While a policy is protected under this
title, a dividend or other monetary benefit under a policy
may not be paid to an insured or used to purchase dividend
additions without the approval of the Secretary of Veterans
Affairs. If such approval is not obtained, the dividends or
benefits shall be added to the value of the policy to be used
as a credit when final settlement is made with the insurer.
``(b) Specific Restrictions.--While a policy is protected
under this title, cash value, loan value, withdrawal of
dividend accumulation, unearned premiums, or other value of
similar character may not be available to the insured without
the approval of the Secretary. The right of the insured to
change a beneficiary designation or select an optional
settlement for a beneficiary shall not be affected by the
provisions of this title.
``SEC. 406. DEDUCTION OF UNPAID PREMIUMS.
``(a) Settlement of Proceeds.--If a policy matures as a
result of a servicemember's death or otherwise during the
period of protection of the policy under this title, the
insurer in making settlement shall deduct from the insurance
proceeds the amount of the unpaid premiums guaranteed under
this title, together with interest due at the rate fixed in
the policy for policy loans.
``(b) Interest Rate.--If the interest rate is not
specifically fixed in the policy, the rate shall be the same
as for policy loans in other policies issued by the insurer
at the time the insured's policy was issued.
``(c) Reporting Requirement.--The amount deducted under
this section, if any, shall be reported by the insurer to the
Secretary of Veterans Affairs.
``SEC. 407. PREMIUMS AND INTEREST GUARANTEED BY UNITED
STATES.
``(a) Guarantee of Premiums and Interest by the United
States.--
``(1) Guarantee.--Payment of premiums, and interest on
premiums at the rate specified in section 406, which become
due on a policy under the protection of this title is
guaranteed by the United States. If the amount guaranteed is
not paid to the insurer before the period of insurance
protection under this title expires, the amount due shall be
treated by the insurer as a policy loan on the policy.
``(2) Policy termination.--If, at the expiration of
insurance protection under this title, the cash surrender
value of a policy is less than the amount due to pay premiums
and interest on premiums on the policy, the policy shall
terminate. Upon such termination, the United States shall pay
the insurer the difference between the amount due and the
cash surrender value.
``(b) Recovery From Insured of Amounts Paid by the United
States.--
``(1) Debt payable to the united states.--The amount paid
by the United States to an insurer under this title shall be
a debt payable to the United States by the insured on whose
policy payment was made.
``(2) Collection.--Such amount may be collected by the
United States, either as an offset from any amount due the
insured by the United States or as otherwise authorized by
law.
``(3) Debt not dischargeable in bankruptcy.--Such debt
payable to the United States is not dischargeable in
bankruptcy proceedings.
``(c) Crediting of Amounts Recovered.--Any amounts received
by the United States as repayment of debts incurred by an
insured under this title shall be credited to the
appropriation for the payment of claims under this title.
``SEC. 408. REGULATIONS.
``The Secretary of Veterans Affairs shall prescribe
regulations for the implementation of this title.
``SEC. 409. REVIEW OF FINDINGS OF FACT AND CONCLUSIONS OF
LAW.
``The findings of fact and conclusions of law made by the
Secretary of Veterans Affairs in administering this title are
subject to review on appeal to the Board of Veterans' Appeals
pursuant to chapter 71 of title 38, United States Code, and
to judicial review only as provided in chapter 72 of such
title.
``TITLE V--TAXES AND PUBLIC LANDS
``SEC. 501. TAXES RESPECTING PERSONAL PROPERTY, MONEY,
CREDITS, AND REAL PROPERTY.
``(a) Application.--This section applies in any case in
which a tax or assessment, whether general or special (other
than a tax on personal income), falls due and remains unpaid
before or during a period of military service with respect to
a servicemember's--
``(1) personal property (including motor vehicles); or
``(2) real property occupied for dwelling, professional,
business, or agricultural purposes by a servicemember or the
servicemember's dependents or employees--
``(A) before the servicemember's entry into military
service; and
``(B) during the time the tax or assessment remains unpaid.
``(b) Sale of Property.--
``(1) Limitation on sale of property to enforce tax
assessment.--Property described in subsection (a) may not be
sold to enforce the collection of such tax or assessment
except by court order and upon the determination by the court
that military service does not materially affect the
servicemember's ability to pay the unpaid tax or assessment.
``(2) Stay of court proceedings.--A court may stay a
proceeding to enforce the collection of such tax or
assessment, or sale of such property, during a period of
military service of the servicemember and for a period not
more than 180 days after the termination of, or release of
the servicemember from, military service.
``(c) Redemption.--When property described in subsection
(a) is sold or forfeited to enforce the collection of a tax
or assessment, a servicemember shall have the right to redeem
or commence an action to redeem the servicemember's property
during the period of military service or within 180 days
after termination of or release from military service. This
subsection may not be construed to shorten any period
provided by the law of a State (including any political
subdivision of a State) for redemption.
``(d) Interest on Tax or Assessment.--Whenever a
servicemember does not pay a tax or assessment on property
described in subsection (a) when due, the amount of the tax
or assessment due and unpaid shall bear interest until paid
at the rate of 6 percent per year. An additional penalty or
interest shall not be incurred by reason of nonpayment. A
lien for such unpaid tax or assessment may include interest
under this subsection.
``(e) Joint Ownership Application.--This section applies to
all forms of property described in subsection (a) owned
individually by a servicemember or jointly by a servicemember
and a dependent or dependents.
``SEC. 502. RIGHTS IN PUBLIC LANDS.
``(a) Rights Not Forfeited.--The rights of a servicemember
to lands owned or controlled by the United States, and
initiated or acquired by the servicemember under the laws of
the United States (including the mining and mineral leasing
laws) before military service, shall not be forfeited or
prejudiced as a result of being absent from the land, or by
failing to begin or complete any work or improvements to the
land, during the period of military service.
``(b) Temporary Suspension of Permits or Licenses.--If a
permittee or licensee under the Act of June 28, 1934 (43
U.S.C. 315 et seq.), enters military service, the permittee
or licensee may suspend the permit or license for the period
of military service and for 180 days after termination of or
release from military service.
``(c) Regulations.--Regulations prescribed by the Secretary
of the Interior shall provide for
[[Page H12874]]
such suspension of permits and licenses and for the
remission, reduction, or refund of grazing fees during the
period of such suspension.
``SEC. 503. DESERT-LAND ENTRIES.
``(a) Desert-Land Rights Not Forfeited.--A desert-land
entry made or held under the desert-land laws before the
entrance of the entryman or the entryman's successor in
interest into military service shall not be subject to
contest or cancellation--
``(1) for failure to expend any required amount per acre
per year in improvements upon the claim;
``(2) for failure to effect the reclamation of the claim
during the period the entryman or the entryman's successor in
interest is in the military service, or for 180 days after
termination of or release from military service; or
``(3) during any period of hospitalization or
rehabilitation due to an injury or disability incurred in the
line of duty.
The time within which the entryman or claimant is required to
make such expenditures and effect reclamation of the land
shall be exclusive of the time periods described in
paragraphs (2) and (3).
``(b) Service-Related Disability.--If an entryman or
claimant is honorably discharged and is unable to accomplish
reclamation of, and payment for, desert land due to a
disability incurred in the line of duty, the entryman or
claimant may make proof without further reclamation or
payments, under regulations prescribed by the Secretary of
the Interior, and receive a patent for the land entered or
claimed.
``(c) Filing Requirement.--In order to obtain the
protection of this section, the entryman or claimant shall,
within 180 days after entry into military service, cause to
be filed in the land office of the district where the claim
is situated a notice communicating the fact of military
service and the desire to hold the claim under this section.
``SEC. 504. MINING CLAIMS.
``(a) Requirements Suspended.--The provisions of section
2324 of the Revised Statutes of the United States (30 U.S.C.
28) specified in subsection (b) shall not apply to a
servicemember's claims or interests in claims, regularly
located and recorded, during a period of military service and
180 days thereafter, or during any period of hospitalization
or rehabilitation due to injuries or disabilities incurred in
the line of duty.
``(b) Requirements.--The provisions in section 2324 of the
Revised Statutes that shall not apply under subsection (a)
are those which require that on each mining claim located
after May 10, 1872, and until a patent has been issued for
such claim, not less than $100 worth of labor shall be
performed or improvements made during each year.
``(c) Period of Protection From Forfeiture.--A mining claim
or an interest in a claim owned by a servicemember that has
been regularly located and recorded shall not be subject to
forfeiture for nonperformance of annual assessments during
the period of military service and for 180 days thereafter,
or for any period of hospitalization or rehabilitation
described in subsection (a).
``(d) Filing Requirement.--In order to obtain the
protections of this section, the claimant of a mining
location shall, before the end of the assessment year in
which military service is begun or within 60 days after the
end of such assessment year, cause to be filed in the office
where the location notice or certificate is recorded a notice
communicating the fact of military service and the desire to
hold the mining claim under this section.
``SEC. 505. MINERAL PERMITS AND LEASES.
``(a) Suspension During Military Service.--A person holding
a permit or lease on the public domain under the Federal
mineral leasing laws who enters military service may suspend
all operations under the permit or lease for the duration of
military service and for 180 days thereafter. The term of the
permit or lease shall not run during the period of
suspension, nor shall any rental or royalties be charged
against the permit or lease during the period of suspension.
``(b) Notification.--In order to obtain the protection of
this section, the permittee or lessee shall, within 180 days
after entry into military service, notify the Secretary of
the Interior by registered mail of the fact that military
service has begun and of the desire to hold the claim under
this section.
``(c) Contract Modification.--This section shall not be
construed to supersede the terms of any contract for
operation of a permit or lease.
``SEC. 506. PERFECTION OR DEFENSE OF RIGHTS.
``(a) Right To Take Action Not Affected.--This title shall
not affect the right of a servicemember to take action during
a period of military service that is authorized by law or
regulations of the Department of the Interior, for the
perfection, defense, or further assertion of rights initiated
or acquired before entering military service.
``(b) Affidavits and Proofs.--
``(1) In general.--A servicemember during a period of
military service may make any affidavit or submit any proof
required by law, practice, or regulation of the Department of
the Interior in connection with the entry, perfection,
defense, or further assertion of rights initiated or acquired
before entering military service before an officer authorized
to provide notary services under section 1044a of title 10,
United States Code, or any superior commissioned officer.
``(2) Legal status of affidavits.--Such affidavits shall be
binding in law and subject to the same penalties as
prescribed by section 1001 of title 18, United State Code.
``SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS
OF TITLE.
``(a) Distribution of Information by Secretary Concerned.--
The Secretary concerned shall issue to servicemembers
information explaining the provisions of this title.
``(b) Application Forms.--The Secretary concerned shall
provide application forms to servicemembers requesting relief
under this title.
``(c) Information From Secretary of the Interior.--The
Secretary of the Interior shall furnish to the Secretary
concerned information explaining the provisions of this title
(other than sections 501, 510, and 511) and related
application forms.
``SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.
``(a) No Age Limitations.--Any servicemember under the age
of 21 in military service shall be entitled to the same
rights under the laws relating to lands owned or controlled
by the United States, including mining and mineral leasing
laws, as those servicemembers who are 21 years of age.
``(b) Residency Requirement.--Any requirement related to
the establishment of a residence within a limited time shall
be suspended as to entry by a servicemember in military
service until 180 days after termination of or release from
military service.
``(c) Entry Applications.--Applications for entry may be
verified before a person authorized to administer oaths under
section 1044a of title 10, United States Code, or under the
laws of the State where the land is situated.
``SEC. 509. REGULATIONS.
``The Secretary of the Interior may issue regulations
necessary to carry out this title (other than sections 501,
510, and 511).
``SEC. 510. INCOME TAXES.
``(a) Deferral of Tax.--Upon notice to the Internal Revenue
Service or the tax authority of a State or a political
subdivision of a State, the collection of income tax on the
income of a servicemember falling due before or during
military service shall be deferred for a period not more than
180 days after termination of or release from military
service, if a servicemember's ability to pay such income tax
is materially affected by military service.
``(b) Accrual of Interest or Penalty.--No interest or
penalty shall accrue for the period of deferment by reason of
nonpayment on any amount of tax deferred under this section.
``(c) Statute of Limitations.--The running of a statute of
limitations against the collection of tax deferred under this
section, by seizure or otherwise, shall be suspended for the
period of military service of the servicemember and for an
additional period of 270 days thereafter.
``(d) Application Limitation.--This section shall not apply
to the tax imposed on employees by section 3101 of the
Internal Revenue Code of 1986.
``SEC. 511. RESIDENCE FOR TAX PURPOSES.
``(a) Residence or Domicile.--A servicemember shall neither
lose nor acquire a residence or domicile for purposes of
taxation with respect to the person, personal property, or
income of the servicemember by reason of being absent or
present in any tax jurisdiction of the United States solely
in compliance with military orders.
``(b) Military Service Compensation.--Compensation of a
servicemember for military service shall not be deemed to be
income for services performed or from sources within a tax
jurisdiction of the United States if the servicemember is not
a resident or domiciliary of the jurisdiction in which the
servicemember is serving in compliance with military orders.
``(c) Personal Property.--
``(1) Relief from personal property taxes.--The personal
property of a servicemember shall not be deemed to be located
or present in, or to have a situs for taxation in, the tax
jurisdiction in which the servicemember is serving in
compliance with military orders.
``(2) Exception for property within member's domicile or
residence.--This subsection applies to personal property or
its use within any tax jurisdiction other than the
servicemember's domicile or residence.
``(3) Exception for property used in trade or business.--
This section does not prevent taxation by a tax jurisdiction
with respect to personal property used in or arising from a
trade or business, if it has jurisdiction.
``(4) Relationship to law of state of domicile.--
Eligibility for relief from personal property taxes under
this subsection is not contingent on whether or not such
taxes are paid to the State of domicile.
``(d) Increase of Tax Liability.--A tax jurisdiction may
not use the military compensation of a nonresident
servicemember to increase the tax liability imposed on other
income earned by the nonresident servicemember or spouse
subject to tax by the jurisdiction.
``(e) Federal Indian Reservations.--An Indian servicemember
whose legal residence or domicile is a Federal Indian
reservation shall be taxed by the laws applicable to Federal
Indian reservations and not the State where the reservation
is located.
``(f) Definitions.--For purposes of this section:
``(1) Personal property.--The term `personal property'
means intangible and tangible property (including motor
vehicles).
``(2) Taxation.--The term `taxation' includes licenses,
fees, or excises imposed with respect to motor vehicles and
their use, if the license, fee, or excise is paid by the
servicemember in the servicemember's State of domicile or
residence.
``(3) Tax jurisdiction.--The term `tax jurisdiction' means
a State or a political subdivision of a State.
``TITLE VI--ADMINISTRATIVE REMEDIES
``SEC. 601. INAPPROPRIATE USE OF ACT.
``If a court determines, in any proceeding to enforce a
civil right, that any interest, property, or contract has
been transferred or acquired with the intent to delay the
just enforcement of such right by taking advantage of this
Act, the court shall enter such judgment or make such order
as might lawfully be entered or made concerning such transfer
or acquisition.
[[Page H12875]]
``SEC. 602. CERTIFICATES OF SERVICE; PERSONS REPORTED
MISSING.
``(a) Prima Facie Evidence.--In any proceeding under this
Act, a certificate signed by the Secretary concerned is prima
facie evidence as to any of the following facts stated in the
certificate:
``(1) That a person named is, is not, has been, or has not
been in military service.
``(2) The time and the place the person entered military
service.
``(3) The person's residence at the time the person entered
military service.
``(4) The rank, branch, and unit of military service of the
person upon entry.
``(5) The inclusive dates of the person's military service.
``(6) The monthly pay received by the person at the date of
the certificate's issuance.
``(7) The time and place of the person's termination of or
release from military service, or the person's death during
military service.
``(b) Certificates.--The Secretary concerned shall furnish
a certificate under subsection (a) upon receipt of an
application for such a certificate. A certificate appearing
to be signed by the Secretary concerned is prima facie
evidence of its contents and of the signer's authority to
issue it.
``(c) Treatment of Servicemembers in Missing Status.--A
servicemember who has been reported missing is presumed to
continue in service until accounted for. A requirement under
this Act that begins or ends with the death of a
servicemember does not begin or end until the servicemember's
death is reported to, or determined by, the Secretary
concerned or by a court of competent jurisdiction.
``SEC. 603. INTERLOCUTORY ORDERS.
``An interlocutory order issued by a court under this Act
may be revoked, modified, or extended by that court upon its
own motion or otherwise, upon notification to affected
parties as required by the court.
``TITLE VII--FURTHER RELIEF
``SEC. 701. ANTICIPATORY RELIEF.
``(a) Application for Relief.--A servicemember may, during
military service or within 180 days of termination of or
release from military service, apply to a court for relief--
``(1) from any obligation or liability incurred by the
servicemember before the servicemember's military service; or
``(2) from a tax or assessment falling due before or during
the servicemember's military service.
``(b) Tax Liability or Assessment.--In a case covered by
subsection (a), the court may, if the ability of the
servicemember to comply with the terms of such obligation or
liability or pay such tax or assessment has been materially
affected by reason of military service, after appropriate
notice and hearing, grant the following relief:
``(1) Stay of enforcement of real estate contracts.--
``(A) In the case of an obligation payable in installments
under a contract for the purchase of real estate, or secured
by a mortgage or other instrument in the nature of a mortgage
upon real estate, the court may grant a stay of the
enforcement of the obligation--
``(i) during the servicemember's period of military
service; and
``(ii) from the date of termination of or release from
military service, or from the date of application if made
after termination of or release from military service.
``(B) Any stay under this paragraph shall be--
``(i) for a period equal to the remaining life of the
installment contract or other instrument, plus a period of
time equal to the period of military service of the
servicemember, or any part of such combined period; and
``(ii) subject to payment of the balance of the principal
and accumulated interest due and unpaid at the date of
termination or release from the applicant's military service
or from the date of application in equal installments during
the combined period at the rate of interest on the unpaid
balance prescribed in the contract or other instrument
evidencing the obligation, and subject to other terms as may
be equitable.
``(2) Stay of enforcement of other contracts.--
``(A) In the case of any other obligation, liability, tax,
or assessment, the court may grant a stay of enforcement--
``(i) during the servicemember's military service; and
``(ii) from the date of termination of or release from
military service, or from the date of application if made
after termination or release from military service.
``(B) Any stay under this paragraph shall be--
``(i) for a period of time equal to the period of the
servicemember's military service or any part of such period;
and
``(ii) subject to payment of the balance of principal and
accumulated interest due and unpaid at the date of
termination or release from military service, or the date of
application, in equal periodic installments during this
extended period at the rate of interest as may be prescribed
for this obligation, liability, tax, or assessment, if paid
when due, and subject to other terms as may be equitable.
``(c) Affect of Stay on Fine or Penalty.--When a court
grants a stay under this section, a fine or penalty shall not
accrue on the obligation, liability, tax, or assessment for
the period of compliance with the terms and conditions of the
stay.
``SEC. 702. POWER OF ATTORNEY.
``(a) Automatic Extension.--A power of attorney of a
servicemember shall be automatically extended for the period
the servicemember is in a missing status (as defined in
section 551(2) of title 37, United States Code) if the power
of attorney--
``(1) was duly executed by the servicemember--
``(A) while in military service; or
``(B) before entry into military service but after the
servicemember--
``(i) received a call or order to report for military
service; or
``(ii) was notified by an official of the Department of
Defense that the person could receive a call or order to
report for military service;
``(2) designates the servicemember's spouse, parent, or
other named relative as the servicemember's attorney in fact
for certain, specified, or all purposes; and
``(3) expires by its terms after the servicemember entered
a missing status.
``(b) Limitation on Power of Attorney Extension.--A power
of attorney executed by a servicemember may not be extended
under subsection (a) if the document by its terms clearly
indicates that the power granted expires on the date
specified even though the servicemember, after the date of
execution of the document, enters a missing status.
``SEC. 703. PROFESSIONAL LIABILITY PROTECTION.
``(a) Applicability.--This section applies to a
servicemember who--
``(1) after July 31, 1990, is ordered to active duty (other
than for training) pursuant to sections 688, 12301(a),
12301(g), 12302, 12304, 12306, or 12307 of title 10, United
States Code, or who is ordered to active duty under section
12301(d) of such title during a period when members are on
active duty pursuant to any of the preceding sections; and
``(2) immediately before receiving the order to active
duty--
``(A) was engaged in the furnishing of health-care or legal
services or other services determined by the Secretary of
Defense to be professional services; and
``(B) had in effect a professional liability insurance
policy that does not continue to cover claims filed with
respect to the servicemember during the period of the
servicemember's active duty unless the premiums are paid for
such coverage for such period.
``(b) Suspension of Coverage.--
``(1) Suspension.--Coverage of a servicemember referred to
in subsection (a) by a professional liability insurance
policy shall be suspended by the insurance carrier in
accordance with this subsection upon receipt of a written
request from the servicemember by the insurance carrier.
``(2) Premiums for suspended contracts.--A professional
liability insurance carrier--
``(A) may not require that premiums be paid by or on behalf
of a servicemember for any professional liability insurance
coverage suspended pursuant to paragraph (1); and
``(B) shall refund any amount paid for coverage for the
period of such suspension or, upon the election of such
servicemember, apply such amount for the payment of any
premium becoming due upon the reinstatement of such coverage.
``(3) Nonliability of carrier during suspension.--A
professional liability insurance carrier shall not be liable
with respect to any claim that is based on professional
conduct (including any failure to take any action in a
professional capacity) of a servicemember that occurs during
a period of suspension of that servicemember's professional
liability insurance under this subsection.
``(4) Certain claims considered to arise before
suspension.--For the purposes of paragraph (3), a claim based
upon the failure of a professional to make adequate provision
for a patient, client, or other person to receive
professional services or other assistance during the period
of the professional's active duty service shall be considered
to be based on an action or failure to take action before the
beginning of the period of the suspension of professional
liability insurance under this subsection, except in a case
in which professional services were provided after the date
of the beginning of such period.
``(c) Reinstatement of Coverage.--
``(1) Reinstatement required.--Professional liability
insurance coverage suspended in the case of any servicemember
pursuant to subsection (b) shall be reinstated by the
insurance carrier on the date on which that servicemember
transmits to the insurance carrier a written request for
reinstatement.
``(2) Time and premium for reinstatement.--The request of a
servicemember for reinstatement shall be effective only if
the servicemember transmits the request to the insurance
carrier within 30 days after the date on which the
servicemember is released from active duty. The insurance
carrier shall notify the servicemember of the due date for
payment of the premium of such insurance. Such premium shall
be paid by the servicemember within 30 days after receipt of
that notice.
``(3) Period of reinstated coverage.--The period for which
professional liability insurance coverage shall be reinstated
for a servicemember under this subsection may not be less
than the balance of the period for which coverage would have
continued under the insurance policy if the coverage had not
been suspended.
``(d) Increase in Premium.--
``(1) Limitation on premium increases.--An insurance
carrier may not increase the amount of the premium charged
for professional liability insurance coverage of any
servicemember for the minimum period of the reinstatement of
such coverage required under subsection (c)(3) to an amount
greater than the amount chargeable for such coverage for such
period before the suspension.
``(2) Exception.--Paragraph (1) does not prevent an
increase in premium to the extent of any general increase in
the premiums charged by that carrier for the same
professional liability coverage for persons similarly covered
by such insurance during the period of the suspension.
[[Page H12876]]
``(e) Continuation of Coverage of Unaffected Persons.--This
section does not--
``(1) require a suspension of professional liability
insurance protection for any person who is not a person
referred to in subsection (a) and who is covered by the same
professional liability insurance as a person referred to in
such subsection; or
``(2) relieve any person of the obligation to pay premiums
for the coverage not required to be suspended.
``(f) Stay of Civil or Administrative Actions.--
``(1) Stay of actions.--A civil or administrative action
for damages on the basis of the alleged professional
negligence or other professional liability of a servicemember
whose professional liability insurance coverage has been
suspended under subsection (b) shall be stayed until the end
of the period of the suspension if--
``(A) the action was commenced during the period of the
suspension;
``(B) the action is based on an act or omission that
occurred before the date on which the suspension became
effective; and
``(C) the suspended professional liability insurance would,
except for the suspension, on its face cover the alleged
professional negligence or other professional liability
negligence or other professional liability of the
servicemember.
``(2) Date of commencement of action.--Whenever a civil or
administrative action for damages is stayed under paragraph
(1) in the case of any servicemember, the action shall have
been deemed to have been filed on the date on which the
professional liability insurance coverage of the
servicemember is reinstated under subsection (c).
``(g) Effect of Suspension Upon Limitations Period.--In the
case of a civil or administrative action for which a stay
could have been granted under subsection (f) by reason of the
suspension of professional liability insurance coverage of
the defendant under this section, the period of the
suspension of the coverage shall be excluded from the
computation of any statutory period of limitation on the
commencement of such action.
``(h) Death During Period of Suspension.--If a
servicemember whose professional liability insurance coverage
is suspended under subsection (b) dies during the period of
the suspension--
``(1) the requirement for the grant or continuance of a
stay in any civil or administrative action against such
servicemember under subsection (f)(1) shall terminate on the
date of the death of such servicemember; and
``(2) the carrier of the professional liability insurance
so suspended shall be liable for any claim for damages for
professional negligence or other professional liability of
the deceased servicemember in the same manner and to the same
extent as such carrier would be liable if the servicemember
had died while covered by such insurance but before the claim
was filed.
``(i) Definitions.--For purposes of this section:
``(1) Active duty.--The term `active duty' has the meaning
given that term in section 101(d)(1) of title 10, United
States Code.
``(2) Profession.--The term `profession' includes
occupation.
``(3) Professional.--The term `professional' includes
occupational.
``SEC. 704. HEALTH INSURANCE REINSTATEMENT.
``(a) Reinstatement of Health Insurance.--A servicemember
who, by reason of military service as defined in section
703(a)(1), is entitled to the rights and protections of this
Act shall also be entitled upon termination or release from
such service to reinstatement of any health insurance that--
``(1) was in effect on the day before such service
commenced; and
``(2) was terminated effective on a date during the period
of such service.
``(b) No Exclusion or Waiting Period.--The reinstatement of
health care insurance coverage for the health or physical
condition of a servicemember described in subsection (a), or
any other person who is covered by the insurance by reason of
the coverage of the servicemember, shall not be subject to an
exclusion or a waiting period, if--
``(1) the condition arose before or during the period of
such service;
``(2) an exclusion or a waiting period would not have been
imposed for the condition during the period of coverage; and
``(3) if the condition relates to the servicemember, the
condition has not been determined by the Secretary of
Veterans Affairs to be a disability incurred or aggravated in
the line of duty (within the meaning of section 105 of title
38, United States Code).
``(c) Exceptions.--Subsection (a) does not apply to a
servicemember entitled to participate in employer-offered
insurance benefits pursuant to the provisions of chapter 43
of title 38, United States Code.
``(d) Time for Applying for Reinstatement.--An application
under this section must be filed not later than 120 days
after the date of the termination of or release from military
service.
``SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.
``For the purposes of voting for any Federal office (as
defined in section 301 of the Federal Election Campaign Act
of 1971 (2 U.S.C. 431)) or a State or local office, a person
who is absent from a State in compliance with military or
naval orders shall not, solely by reason of that absence--
``(1) be deemed to have lost a residence or domicile in
that State, without regard to whether or not the person
intends to return to that State;
``(2) be deemed to have acquired a residence or domicile in
any other State; or
``(3) be deemed to have become a resident in or a resident
of any other State.
``SEC. 706. BUSINESS OR TRADE OBLIGATIONS.
``(a) Availability of Non-Business Assets To Satisfy
Obligations.--If the trade or business (without regard to the
form in which such trade or business is carried out) of a
servicemember has an obligation or liability for which the
servicemember is personally liable, the assets of the
servicemember not held in connection with the trade or
business may not be available for satisfaction of the
obligation or liability during the servicemember's military
service.
``(b) Relief to Obligors.--Upon application to a court by
the holder of an obligation or liability covered by this
section, relief granted by this section to a servicemember
may be modified as justice and equity require.''.
SEC. 2. CONFORMING AMENDMENTS.
(a) Military Selective Service Act.--Section 14 of the
Military Selective Service Act (50 U.S.C. App. 464) is
repealed.
(b) Title 5, United States Code.--
(1) Section 5520a(k)(2)(A) of title 5, United States Code,
is amended by striking ``Soldiers' and Sailors' Civil Relief
Act of 1940'' and inserting ``Servicemembers Civil Relief
Act''; and
(2) Section 5569(e) of title 5, United States Code, is
amended--
(A) in paragraph (1), by striking ``provided by the
Soldiers' and Sailors' Civil Relief Act of 1940'' and all
that follows through ``of such Act'' and inserting ``provided
by the Servicemembers Civil Relief Act, including the
benefits provided by section 702 of such Act but excluding
the benefits provided by sections 104, 105, and 106, title
IV, and title V (other than sections 501 and 510) of such
Act''; and
(B) in paragraph (2)(A), by striking ``person in the
military service'' and inserting ``servicemember''.
(c) Title 10, United States Code.--Section 1408(b)(1)(D) of
title 10, United States Code, is amended by striking
``Soldiers' and Sailors' Civil Relief Act of 1940'' and
inserting ``Servicemembers Civil Relief Act''.
(d) Internal Revenue Code.--Section 7654(d)(1) of the
Internal Revenue Code of 1986 is amended by striking
``Soldiers' and Sailors' Civil Relief Act'' and inserting
``Servicemembers Civil Relief Act''.
(e) Public Health Service Act.--Section 212(e) of the
Public Health Service Act (42 U.S.C. 213(e)) is amended by
striking ``Soldiers' and Sailors' Civil Relief Act of 1940''
and inserting ``Servicemembers Civil Relief Act''.
(f) Elementary and Secondary Education Act of 1965.--
Section 8001 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7701) is amended by striking ``section 514 of
the Soldiers' and Sailors' Civil Relief Act of 1940 (50
U.S.C. App. 574)'' in the matter preceding paragraph (1) and
inserting ``section 511 of the Servicemembers Civil Relief
Act''.
(g) NOAA Commissioned Officer Corps Act of 2002.--Section
262(a)(2) of National Oceanic and Atmospheric Administration
Commissioned Officer Corps Act of 2002 (33 U.S.C. 3072(a)(2))
is amended to read as follows:
``(2) The Servicemembers Civil Relief Act.''.
SEC. 3. EFFECTIVE DATE.
The amendment made by section 1 shall apply to any case
that is not final before the date of the enactment of this
Act.
Mr. SMITH of New Jersey (during the reading). Mr. Speaker, I ask
unanimous consent that the Senate amendment be considered as read and
printed in the Record.
The SPEAKER pro tempore (Mr. Ney). Is there objection to the request
of the gentleman from New Jersey?
There was no objection.
The SPEAKER pro tempore. Is there objection to the original request
of the gentleman from New Jersey?
Mr. MICHAUD. Reserving the right to object, Mr. Speaker, I will not
object.
Mr. Speaker, I rise in strong support of H.R. 100, the Servicemen
Civil Relief Act. I would like to thank the gentleman from New Jersey
(Mr. Smith) and the ranking member, the gentleman from Illinois (Mr.
Evans) and their staff for their work with the other body to finalize
this legislation.
H.R. 100 restates, modernizes and improves the Soldiers' and Sailors'
Civil Relief Act, recognizing the importance of women in military
service. The title is changed to Servicemembers' Civil Relief Act.
With our Nation at war in Iraq and Afghanistan, our Nation's service-
members are in need of an updated law. This bill will allow for
strengthening and expediting the national defense and otherwise
exercising the military obligations without undue concern as to the
impact of their military service on their civil obligations.
I am pleased this legislation includes recognition of the Federal
protection recently extended to members of the National Guard called up
for a national purpose under Title 32 of the United States Code.
When our men and women are protecting and serving the Nation, they
should be entitled to the protection of the Nation's laws. H.R. 100
provides other legal and administrative protection for our men and
women in uniform. It would increase rental eviction
[[Page H12877]]
protection from $1,200 to $2,400 which will help those serving in high-
rent areas of the country.
It would also allow for termination of real property leases in
certain situations providing professional liability protections, health
insurance, and guaranteed residencies for military purposes.
Mr. Speaker, I know that servicemembers from my State of Maine will
appreciate the benefits provided by this bill. I fully support H.R. 100
and urge my colleagues to pass this measure.
Mr. SMITH of New Jersey. Mr. Speaker, will the gentleman yield?
Mr. MICHAUD. I yield to the gentleman from New Jersey.
Mr. SMITH of New Jersey. Mr. Speaker, I want to thank my good friend
and colleague from Maine for his explanation and for his good work on
this legislation, as well as our good friend and colleague, the
gentleman from Illinois (Mr. Evans), the ranking member on the full
committee.
Mr. Speaker, when the House considered this legislation last May 7,
we passed it unanimously. We sent it over to the Senate. And we are
glad we bring before the body a bill today with a Senate amendment that
makes some very important statements, restatements as well as some new
law with regard to the Soldiers' and Sailors' Relief Act which was
first passed back in 1940.
This legislation, as my friend just pointed out, is really an
historic restatement. It strengthens a law that is critically important
to all of our reserve components as well as our active-duty members of
our Armed Services.
The amendment to H.R. 100 would raise the level of eviction
protections to reflect the increase in the cost of rental housing in
high-cost urban areas. The current act only applies to leases of less
than $1,200 a month. The House-Senate compromise would increase the
amount to $2,400; and the amount would be increased every year as
necessary in accordance with the Consumer Price Index housing component
so that the protection stays current.
It also requires the Department of Defense to annually publish the
amount of rental coverage in their Federal Register within 60 days of
the CPI's publication to provide public notice of the level of
probation.
The compromise also provides specific protections for assets of a
servicemember from attachment to satisfy business debts for which the
servicemember is personally liable, as long as the assets are not held
in connection with the business.
The compromise also includes provisions to allow servicemembers who
are being called to active duty and by certain active-duty
servicemembers to terminate motor vehicle leases which are increasingly
commonplace and in use without an early termination penalty. When this
was first passed in 1940s, obviously, nobody had even heard of leases
like this. They are, like I said, a way of life today.
Section 207 of the bill would clarify that for the 6 percent interest
cap being continued from current law, any interest above the cap is
forgiven and the servicemember's monthly payment must be reduced.
I want to clarify that the committee intends for the provisions
language of the interest rate reduction, to permit lenders to follow
Fannie Mae and Freddie Mac's current implementation guidance, allowing
lenders to reamortize the loan using a 6 percent interest rate or to
apply the 6 percent interest rate using the original amortization
schedule.
Mr. Speaker, I want to very strongly commend the Office of
Legislative Counsel of both the House and the Senate, the committee
counsel and the representatives of the Judge Advocates General of the
military departments who participated in the drafting of this historic
legislation to update the act.
From my own staff, I want to thank Kingston Smith, who is sitting to
my right, Summer Larson, Geoffrey Collver, Mary Ellen McCarthy and
Patrick Ryan who spent many long hours reviewing and analyzing this
legislation.
From the Senate staff, the late Dave Goetz, Chris McNamee, Mary
Schoelen, and Bill Tuerk who performed a very similar task. Bob Cover
from the Office of Legislative Counsel spent many years, not months,
years, working on this legislation. The actual preparation of the bill
was truly a collaborative bipartisan effort that would not have been
accomplished without the technical and practical expertise of these
outstanding individuals.
I want to thank majority leader, the gentleman from Texas (Mr. DeLay)
and Brett Loper for ensuring that this vital legislation made it to the
floor today. Again, we passed this last May. We had hope to have this
out sometime in June. We are finally getting to it at the end of the
session, not because of a delay in the House, but, thankfully, the
Senate did act, and now we have a good bill before us.
I want to thank the gentleman from South Carolina (Mr. Brown) who is
our subcommittee chairman, the ranking member, the gentleman from Maine
(Mr. Michaud) who spoke earlier, and, of course, my friend and
colleague, the gentleman from Illinois (Mr. Evans) for his work.
It is a good bill. I hope Members will support it.
Mr. EVANS. Mr. Speaker, I rise in support of H.R. 100, as amended, a
bill to modernize, restate and improve upon the Soldiers' and Sailors'
Civil Relief Act, which provides protections from civil liability to
persons serving in the Armed Forces. To be known as the Servicemembers
Civil Relief Act, this measures recognizes the increasing presence of
women in military service.
I thank Members and staff on both sides of the aisle who have worked
diligently with the other body in finalizing this bill. It has truly
been a bipartisan and bicameral effort. I also want to acknowledge the
considerable contributions of the Department of Defense, especially the
Air Force, the American Bar Association, and the National Institute of
Military Justice in assisting the Committee with the preparation of
this bill.
I note that the bill maintains the prohibition of interest in excess
of 6 percent on debts incurred before military service. This provision
is intended to assure that our servicemembers have smaller periodic
payments on debts acquired prior to military service during the time
when they are serving on active duty. I expect that this provision will
be applied in a manner consistent with generally accepted mortgage
practices, so that the monthly payment on the adjusted mortgage will be
consistent from month to month. I am aware that there are concerns that
the language could be interpreted in a manner which would result in
different monthly mortgage obligations from month to month. It is my
understanding that the committees do not intend to alter common
industry practice of setting a monthly mortgage payment which does not
change form month to month.
I am particularly pleased that the bill takes into account the high
cost of rent in areas such as San Diego and Honolulu, where military
families may occupy off-base rental housing. The bill also provides for
an annual adjustment in these rental amounts according to changes in
the Consumer Price Index (CPI) for residential rental housing. By
providing for automatic increases linked to changes in the housing CPI,
servicemembers and their families will continue to receive adequate
protection as housing costs increase.
The amended bill would permit servicemembers to terminate leases of
motor vehicles when they are deployed outside the continental United
States. In today's society, leasing of motor vehicles is common. When a
person enters active military service or receives permanent change of
station orders after entering into a long-term lease of a motor
vehicle, the servicemember can suffer significant financial harm if he
or she is unable to take the motor vehicle to the new station.
This provision will allow a servicemember stationed at Pearl Harbor,
for example, to terminate a motor vehicle lease and avoid additional
financial liability for a motor vehicle which will not be needed during
a deployment to the Persian Gulf. It will allow an Illinois reservist
called up for active duty in Alaska to terminate an automobile lease.
In order for this provision to be effective, the servicemember must be
ordered deployed for not less than 180 days.
I recognize that it was not possible to include every suggestion that
was offered in the course of this bill's consideration. I trust that
the Committee will continue its good work in this area and address
additional bills concerning the Servicemembers Civil Relief Act in the
next session of this Congress.
Today, our service men and women are fighting in Iraq, Afghanistan
and around the world. This bill will help them to fulfill their
responsibilities, secure in the knowledge that their rights will be
protected by an up to date civil protection act.
H.R. 100, as amended, is a good bill, and I urge all Members to show
their support for our troops by voting for it.
Mr. BUYER. Mr. Speaker, today I rise in support of H.R. 100, the
Servicemembers Civil
[[Page H12878]]
Relief Act. The purpose of this legislation is to update the 1940 Act
to strengthen the protections it provides to those serving in the
military. H.R. 100 also updates the language in the Act so that it is
easier to understand.
Earlier this year, I introduced H.R. 3024, which amends the Soldiers'
and Sailors' Civil Relief Act of 1940, to provide protections to
servicemembers who terminate motor vehicle or residential leases
entered into before permanent change or station or deployment orders
for motor vehicle leases. I am pleased that H.R. 3024 was included in
the compromise worked out by the House and Senate in its revision of
the 1940 Soldiers' and Sailors Civil Relief Act. I believe it is an
important and necessary addition to the current law.
The men and women of the National Guard and Reserves continue to
answer the call. We must not short change them in any way when they are
called to serve. They should be allowed to terminate their automobile
leases without penalty.
Again, I thank the Members in both the House and Senate for including
this provision in the final package. I also want to thank the Auto
Alliance for its input and cooperation in helping to craft this bill.
As a current member of the U.S. Army Reserves and Co-Chair of the Guard
and Reserve Caucus, I urge my colleagues to vote in favor of H.R. 100.
Mr. MICHAUD. Mr. Speaker, I withdraw my reservation of objection.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New Jersey?
There was no objection.
A motion to reconsider was laid on the table.
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