[Senate Report 108-197]
[From the U.S. Government Publishing Office]
Calendar No. 393
108th Congress Report
SENATE
1st Session 108-197
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SERVICEMEMBERS CIVIL RELIEF ACT
_______
November 17, 2003.--Ordered to be printed
_______
Mr. Specter, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany S. 1136]
The Committee on Veterans' Affairs, to which was referred
the bill (S. 1136) to restate, clarify, and revise the
Soldiers' and Sailors' Civil Relief Act of 1940, having
considered the same, reports favorably thereon with an
amendment in the nature of a substitute and recommends that the
bill, as amended, do pass.
Introduction
On May 22, 2003, Committee Chairman Arlen Specter
introduced S. 1136, the proposed ``Servicemembers Civil Relief
Act'' (hereinafter, ``SSCRA''). Committee Member Jim Bunning is
an original cosponsor of S. 1136. Committee Member Lindsey
Graham was later added as a cosponsor of S. 1136.
On April 7, 2003, Committee Member Zell Miller introduced
S. 792, a bill to restate, clarify, and revise the ``Soldiers'
and Sailors' Civil Relief Act of 1940.'' Committee Member Saxby
Chambliss is an original cosponsor of S. 792. Committee Member
Patty Murray was later added as a cosponsor of S. 792.
On April 7, 2003, Committee Member E. Benjamin Nelson
introduced S. 806, a bill to, among other things, improve the
benefits and protections provided for regular and reserve
members of the Armed Forces deployed or mobilized in the
interest of the national security of the United States.
Senators Barbara Mikulski, Thomas Daschle, Carl Levin, Patrick
Leahy, Hillary Rodham Clinton, Jeff Bingaman, and Tim Johnson
are original cosponsors of S. 806.
Committee Hearings
On July 10, 2003, the Committee held a hearing on, among
other bills, S. 792, S. 806, and S. 1136. Testimony was
received by the Committee from: The Honorable Daniel L. Cooper,
Under Secretary for Benefits, Department of Veterans Affairs
(hereinafter, ``VA''); Mr. Craig W. Duehring, Principal Deputy
Assistant Secretary of Defense for Reserve Affairs, Department
of Defense (hereinafter, ``DOD''); Mr. Philip R. Wilkerson,
Deputy Manager of Operations and Training, Veterans Affairs and
Rehabilitation Division, The American Legion; Mr. Dennis
Cullinan, Director, National Legislative Service, Veterans of
Foreign Wars of the United States; Mr. Rick Surratt, Deputy
National Legislative Director, Disabled American Veterans; Mr.
Carl Blake, Associate Legislative Director, Paralyzed Veterans
of America; and Mr. Richard Jones, National Legislative
Director, AMVETS.
Testimony was submitted for the record by Mr. Robert D.
Evans, Director of Governmental Affairs, American Bar
Association.
Committee Meeting
After carefully reviewing the testimony from the foregoing
hearing the Committee met in open session on September 30,
2003, and voted by unanimous voice vote to report favorably S.
1136, as amended.
Summary of the Committee Bill as Reported
S. 1136, as reported, (hereinafter ``the Committee bill'')
contains various amendments to the Soldiers' and Sailors' Civil
Relief Act of 1940 that would:
1. Rename the Soldiers' and Sailors' Civil Relief Act
of 1940 as the Servicemembers Civil Relief Act; and
2. Restate, clarify, and revise the Soldiers' and
Sailors' Civil Relief Act of 1940.
TITLE I--GENERAL PROVISIONS
Title I of the Committee bill would:
1. Define certain terms (section 101).
2. Provide that the Act would apply to any judicial or
administrative proceeding commenced in any court or agency in
any jurisdiction in the United States, but would not apply to
criminal proceedings (section 102).
3. Protect persons who are secondarily liable for a
servicemember's obligations (such as sureties, guarantors,
endorsers, or comakers) by, among other things, extending to
them the protections of the Act, and allowing courts, when a
judgment or decree is vacated or set aside under the Act, to
take similar action with respect to secondarily liable persons
(section 103).
4. Provide relief and protections of the Act to citizens of
the United States in service in the armed forces of allies of
the United States (section 104).
5. Require the armed services to provide written notice to
their members, and to persons entering service, of their rights
under the Act (section 105).
6. Extend protections under the Act to members of reserve
components ordered to service and to individuals who have been
drafted into service (section 106).
7. Authorize servicemembers to waive rights and protections
afforded by the Act and specify that certain waivers be in
writing (section 107).
8. Provide that a request by a servicemember for protection
under the Act not be the basis for, among other things, denials
of credit or insurance, or adverse credit reports (section
108).
9. Define who might be a servicemember's legal
representative for purposes of enforcing rights under the Act
(section 109).
TITLE II--GENERAL RELIEF
Title II of the Committee bill would:
1. Require that courts, in actions in which the defendant
is in service and does not make an appearance, grant a minimum
90-day stay of proceedings upon application of counsel or upon
court motion if the court determines that there may be a
defense to the action that cannot be presented without the
presence of the defendant or in cases where, after due
diligence, counsel has been unable to contact the defendant or
otherwise determine if a meritorious defense exists (section
201).
2. Provide, when a servicemember has notice, for a minimum
90-day stay of proceedings before final judgments in civil
actions and allow for additional stays based on the continuing
material effect of military duty on the servicemember's ability
to appear; require the appointment of counsel for the
servicemember when an application for an additional stay is
refused; and specify that an application for a stay would not
constitute an appearance for jurisdictional purposes and would
not be deemed to be a waiver of any substantive or procedural
defense (section 202).
3. Prohibit penalties for a servicemember's failure to
carry out the terms of a contract during the period of a stay,
and authorize a court to reduce or waive fines or penalties for
failure to carry out the terms of a contract if a
servicemember's ability to perform was materially affected by
service (section 203).
4. Authorize courts to stay judgments or orders against
servicemembers, or vacate or stay attachments or garnishments,
when a servicemember's compliance is materially affected by
service (section 204).
5. Authorize stays of actions, proceedings, attachments, or
executions to remain in effect for the period of service, and
up to 90 days thereafter, while still allowing plaintiffs to
proceed against non-servicemember defendants (section 205).
6. Provide that a servicemember's time in service would not
be included in any period of limitation for bringing actions by
or against a servicemember, and would exclude the period of a
servicemember's service from computing the period for
redemption of real property that has been sold or forfeited to
enforce a tax obligation or assessment (section 206).
7. Limit annual interest rates on obligations incurred by a
servicemember, or jointly by a servicemember and his or her
spouse, before the servicemember's entry into service to 6
percent, while also allowing courts to grant relief to
creditors if the ability of the servicemember to pay interest
in excess of the cap is not materially affected by service
(section 207).
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
Title III of the Committee bill would:
1. Protect a servicemember and his or her dependents during
a period of service from eviction from their homes (in cases
where the rent in question does not exceed $2,400, adjusted
annually), except by court order (section 301).
2. Require a court order for rescission or termination for
breach of contract by a servicemember during a period of
service for the purchase or lease of real or personal property
entered into prior to such service, and for which a deposit or
installment has been paid (section 302).
3. Authorize a court to stay proceedings or adjust the
obligation in the case of claims filed to enforce a mortgage
(or trust deed) when the servicemember's ability to comply with
the obligation has been materially affected by service (section
303).
4. Authorize a court to appoint three disinterested parties
to appraise a property when a stay has been granted in a
proceeding to foreclose on a mortgage and, based on the
appraisal and if undue hardship to the servicemember's
dependents would not result, authorize the court to order the
amount of the servicemember's equity in the property be paid to
the servicemember or his or her dependents as a condition of
foreclosing on a mortgage (section 304).
5. Allow termination of leased premises occupied or
intended to be occupied by a servicemember or a servicemember's
dependents for a residential, professional, business,
agricultural or similar purpose. It would also allow
servicemembers to terminate leases of motor vehicles when: (a)
The lease is entered into before service and the servicemember
receives orders activating him or her for not less than 180
days; or (b) the lease is entered into during service and the
servicemember receives orders that either activate him or her
for not less than 180 days or that designate a permanent change
of station outside the continental United States (section 305).
6. Provide that where any life insurance policy on the life
of a person who enters active military service has been
assigned before entry into service to secure payment of a debt,
the assignee of the policy (except the insurance company in
connection with a policy loan) could not, during the period of
service or within one year thereafter, exercise any right or
option obtained under the assignment without a court order
except as specified (section 306).
7. Prohibit the enforcement of a storage lien against a
servicemember during a period of military service and for 90
days thereafter without a court order (section 307).
8. Entitle a dependent of a servicemember, upon application
to a court, 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 (section 308).
TITLE IV--LIFE INSURANCE
Title IV of the Committee bill would:
1. Define certain terms (section 401).
2. Allow an insured servicemember, or the insured's legal
representative or beneficiary, to apply for protection from a
lapse of a life insurance policy (up to a policy amount of
$250,000, or an amount equal to the maximum amount of
Servicemembers' Group Life Insurance) by providing for a
guarantee of payment of premiums, and interest on premiums, by
the United States (section 402).
3. Require, among other things, that an application for
protection under this title be in writing (section 403).
4. Require VA to determine whether a policy is entitled to
protection under this title and, if so, provide that the policy
would not lapse or otherwise terminate for nonpayment of
premiums, or interest on premiums, during the insured's period
of service and for two years thereafter (section 404).
5. Prohibit a dividend or other monetary benefit under a
policy to be paid to an insured while the policy is protected
under this title, and prohibit the availability of cash value,
loan value, withdrawal of dividend accumulation, unearned
premiums, or other value of similar character while the policy
is protected under the provisions of the title (section 405).
6. Authorize insurers to deduct from insurance proceeds the
amount of unpaid premiums guaranteed, together with the
interest due at the rate fixed in the policy for policy loans,
if a policy matures as a result of a servicemember's death
during the period of protection (section 406).
7. Provide that the payment of premiums, and interest on
premiums, be guaranteed by the United States; that at the time
of the expiration of insurance protection under this title the
United States pay the insurer the difference between the amount
due and the cash surrender value of the policy; and that the
amount so paid be deemed to be a debt payable to the United
States by the policy holder (section 407).
8. Authorize VA to prescribe regulations for implementation
of this title (section 208).
9. Allow findings of fact and conclusions of law made by VA
in administering this title to be reviewable by the Board of
Veterans' Appeals and the United States Court of Appeals for
Veterans Claims (section 409).
TITLE V--TAXES AND PUBLIC LANDS
Title V of the Committee bill would:
1. Prohibit the sale of a servicemember's personal or real
property to enforce a tax assessment without a court order, and
impose a 6 percent interest rate cap on unpaid tax assessments
(section 501).
2. Provide that the rights of servicemembers to public
lands not be forfeited or prejudiced as a result of being
absent from the land during the period of military service
(section 502).
3. Exempt servicemembers from certain desert-land entry
requirements during military service and for 180 days after
termination of military service, and during any period of
rehabilitation from injury or illness incurred during military
service (section 503).
4. Provide that certain requirements of law to keep a
mining claim in effect would be suspended, under certain
circumstances, when the claim is held by a servicemember, and
protect a servicemember from forfeiture of a mining claim
(section 504).
5. Provide that a person holding a Federal mineral lease
who enters military service could suspend all operations and
prohibit the period the servicemember is on active duty (and
180 days thereafter) from being counted as part of the term of
the servicemember's permit or license, and prohibit the
charging of rental fees or royalties during the period of
suspension (section 505).
6. Provide that this title would not affect the right of a
servicemember to perfect or defend rights initiated or acquired
prior to entry into military service (section 506).
7. Require that information explaining the provisions of
this title be provided to servicemembers (section 507).
8. Entitle servicemembers under the age of 21 to the same
rights relating to Federal lands and mining and mineral leasing
laws as servicemembers over the age of 21 are entitled to
(section 508).
9. Authorize the Secretary of the Interior to issue
regulations necessary to carry out this title (section 509).
10. Provide that the collection of taxes on the income of a
servicemember due before or during military service be deferred
during service (and for 180 days thereafter) if the
servicemember's ability to pay is materially affected by
service, and prohibit interest or other penalties from accruing
for the period of deferment for nonpayment (section 510).
11. Provide that servicemembers shall neither lose nor
acquire a residence or domicile for tax purposes by reason of
being absent from, or present in, any U.S. tax jurisdiction to
comply with military orders; that military service compensation
not be deemed to be income for services performed or from
sources within a U.S. tax jurisdiction if the servicemember is
not a resident or domiciliary of that jurisdiction; that
military compensation may not be used to increase the tax
liability of a non-resident servicemember or spouse subject to
tax by the jurisdiction; and that personal property be taxed
only in the tax jurisdiction of the servicemember's domicile or
residence (section 511).
TITLE VI--ADMINISTRATIVE REMEDIES
Title VI of the Committee bill would:
1. Provide that a court may prevent inappropriate use of
the Act by entering judgments or orders against transfers or
acquisitions made to delay just enforcement of a right (section
601).
2. Provide that certificates of service be issued by the
Service Secretaries upon application; that such a certificate
be deemed to be prima facie evidence of military service; and
that it be presumed that a servicemember who is declared
missing be deemed to remain in service until he or she is
accounted for (section 602).
3. Authorize an order issued by a court under the Act to be
revoked, modified, or extended by that court upon its own
motion or otherwise, upon notification to affected parties as
required by the court (section 603).
TITLE VII--FURTHER RELIEF
Title VII of the Committee bill would:
1. Allow a servicemember to apply for anticipatory relief
from any obligation or liability incurred before the
servicemember's military service, or from a tax or assessment
falling due before or during the servicemember's military
service, and authorize courts to grant stays of enforcement of
certain real estate or other contracts (section 701).
2. Extend automatically a servicemember's power of attorney
when the servicemember is in a missing status (section 702).
3. Provide for suspension of certain professional liability
insurance policies during certain types active duty (section
703).
4. Provide that a servicemember, under certain
circumstances, shall be entitled, upon termination of service,
to reinstatement of health insurance policies in effect before
service commenced without exclusion or waiting period (section
704).
5. Provide a guarantee of residency for military personnel
for purposes of voting for any Federal, State, or local office
if that person is absent from a State for service (section
705).
6. Provide that a servicemember's assets, not held in
connection with a trade or business, may not be available to
satisfy a business-related obligation or liability for which
the servicemember is personally liable unless, upon application
by an obligor, a court grants relief as justice and equity may
require (section 706).
Discussion
INTRODUCTION
The Committee bill restates, revises, and clarifies the
Soldiers' and Sailors' Civil Relief Act of 1940 so that the
rights and property of today's servicemembers be sufficiently
protected during service. As is stated in section 2 of the
Committee bill, the Committee bill's purposes are as follows:
to provide for, strengthen, and expedite the national
defense through protections 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 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.
These purposes are the same as those which the Congress
contemplated when it enacted SSCRA in anticipation of potential
war in 1940.
The Committee recognizes, however, that while the Congress'
purposes remain as they were in 1940, there now exist business
and social circumstances that did not exist when SSCRA was
enacted. These changed circumstances need to be addressed to
better reflect the requirements of today's servicemembers. The
Committee bill would address these needs by restating and
clarifying the language of SSCRA. But it would also modernize
SSCRA by providing protections that address situations--e.g.,
the leasing of automobiles--not anticipated when SSCRA was
enacted.
Much of the Committee bill is identical to--or at least
similar in substance to--provisions contained in H.R. 100,
legislation which was approved by the House of Representatives
by a vote of 425-0 on May 7, 2003. When that bill was reported
by the House Committee on Veterans' Affairs on April 30, 2003,
it was accompanied by an extensive and thorough report (H.
Rept. No. 108-81) which sets forth, in great detail, background
information relating to SSCRA. That report also explained at
considerable length the restatements, updates, and reforms
contained in H.R. 100, and in the Committee bill. To limit
redundancy, the Committee does not restate material set forth
in that report. Rather, the discussion below focuses on
provisions of the Committee bill that differ from those
specified in H.R. 100 or are unique to the Committee bill.
Section 301: Eviction and distress
Background
Section 300 of SSCRA specifies that a servicemember and his
or her dependants may not, except by court order, be evicted
from their residence during a period of military service if the
servicemember's monthly rent is less than $1,200. Section 301
of H.R 100 clarifies section 300 of SSCRA by including
residences that the servicemember intends to occupy. In
addition, section 301 of H.R. 100 would increase the maximum
amount of monthly rent giving rise to SSCRA protections to
$1,700. Finally, section 301 of H.R. 100 would add a provision
to annually adjust the maximum lease monthly payment that would
qualify for eviction protection.
Committee bill
The Committee bill would increase the maximum monthly lease
amount that qualifies for rent eviction protection to $2,400
and provide for annual inflation adjustment. The purpose of
this increase is twofold. First, because of inflation, $1,200
provides for less protection today than in 1991, the last year
an adjustment to the rent eviction protection amount was made.
Second, the Committee believes that the maximum monthly lease
amount that qualifies for rent eviction protection should be
increased to extend protection to servicemembers living in
higher cost-of-living areas. The Committee, in consultation
with DOD, has determined that $2,400 would provide a level of
protection sufficient to cover most servicemembers.
In addition to increasing the maximum monthly lease amount
that qualifies for rent eviction protection, the Committee
seeks to ensure that the value of the protection specified in
the Committee bill will not be eroded by inflation. To that
end, the Committee bill would provide for an annual adjustment
to the rent eviction protection amount based on the annual
increase in the Consumer Price Index housing component as
determined by the Department of Labor's Bureau of Labor
Statistics.
Section 305: Termination of residential or motor vehicle leases
Background
Section 304 of SSCRA allows a servicemember to terminate
certain real property leases entered into by, or on behalf of,
a servicemember prior to entry into service. Section 305 of
H.R. 100 would clarify SSCRA protections relating to leases
entered into prior to service to state specifically that those
protections would extend to leases for properties not yet
occupied at entry into service. Further, it would expand SSCRA
protections to cover leases entered into during service.
Committee bill
The Committee bill, like H.R. 100, would extend SSCRA lease
termination rights to leases executed by a servicemember while
in military service and to leases for which the premises are
yet to be occupied. In addition, the Committee bill would
expand lease termination protections to a type of lease not
generally available to servicemembers when SSCRA was enacted:
motor vehicle leases.
Section 305 of the Committee bill would authorize
servicemembers to terminate motor vehicle leases entered into
prior to service if the lessee is called to military service
for a period of no less than 180 days. It would also permit a
servicemember who, while on active duty, enters into a lease
for a motor vehicle to terminate the lease if, after execution
of the lease, the servicemember receives orders for either a
permanent change of duty station outside the continental United
States, or deployment with a military unit for no less than 180
days. In today's society, a motor vehicle, like housing, is a
necessity. Servicemembers, like their civilian counterparts,
often find that it is easier or financially advantageous to
finance their transportation needs by leasing, rather than
purchasing, a motor vehicle. The Committee believes that,
similar to the leases of real property, rapid and unexpected
deployments may leave servicemembers financially liable for a
leased motor vehicles that they are unable to use. The
Committee concludes that extending SSCRA's lease termination
provision to motor vehicle leases is consistent with the intent
of the SSCRA in that it would allow a servicemember to mitigate
financial damage by returning the vehicle to the lessor who
could, in turn, return the car to market. Committee staff
consulted extensively with the automobile leasing industry in
the fashioning of the auto lease provisions of section 305.
Section 706: Business or trade obligations
Background
There is no provision in SSCRA, or in H.R. 100, that would
protect a servicemember's personal assets from being attached,
during his or her military service, to satisfy debts for which
the servicemember is personally liable in connection with a
business obligation.
Committee bill
Section 706 of the Committee bill would prohibit an obligor
from satisfying an obligation or debt, owed by a servicemember
in connection with his or her trade or business, from the
personal assets of the servicemember which are not held in
connection with the business or trade. This section would also
allow an obligor to seek relief, through a court, from the
prohibition on satisfying such obligations or debts.
Today's military relies heavily on reserve forces. Indeed,
since September 2001, about 300,000 reservists have been called
to active duty to support various operations. This year, the
General Accounting Office reported that a 2002 DOD survey had
found that self-employed reservists reported an average income
loss of $6,500 when mobilized or deployed. According to DOD,
self-employed physicians and registered nurses were
particularly hurt; they reported an average loss of income of
$25,600. See Military Personnel: DOD Needs More Data to Address
Financial and Health Care Issues Affecting Reservists,
September 2003 (GAO-03-1004). And while it is true that GAO
cautioned against full reliance on DOD's data collection
methodology, the reported results are consistent with concerns
voiced by reservists and their families. They state
consistently that extended calls to active-duty service can
have significant adverse financial impact on the reservist and
his or her family.
The Committee is committed to mitigating the financial
burdens that servicemembers and their families face as a result
of military service. In the same way the SSCRA was designed to
delay actions, such as foreclosure and repossession, that have
an adverse impact on the servicemember arising from personal
obligations, section 706 of the Committee bill is intended to
delay actions that would have an adverse impact on the
servicemember that arise from business obligations for which he
or she might be personally liable. The intent of this section
is not to relieve the servicemember from their debts and
obligations; rather, it is intended to delay enforcement by the
obligor until the servicemember is in a position where he or
she can better deal with the obligor's enforcement of their
rights to secure repayment of an obligation.
Cost Estimate
In compliance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate, the Committee, based on
information supplied by the Congressional Budget Office
(hereinafter ``CBO''), estimates that enactment of the
Committee bill would not affect direct spending or receipts.
The Committee bill would affect the budgets of State and local
government but the impact would be below the threshold
established by the Unfunded Mandates Reform Act (hereinafter
``UMRA''). The Committee bill could, however, exceed the
private-sector threshold established in UMRA but CBO has
insufficient information to estimate the bill's cost.
The cost estimate by CBO, setting forth a detailed
breakdown of costs, follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 16, 2003.
Hon. Arlen Specter,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office (CBO)
has prepared the enclosed cost estimate for S. 1136, the
Servicemembers Civil Relief Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Michelle S.
Patterson.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
S. 1136--Servicemembers Civil Relief Act
Summary: S. 1136 would restate, clarify, and revise the
Soldiers' and Sailors' Civil Relief Act of 1940, which provides
for financial protection and temporary suspension of certain
judicial proceedings for servicemembers on active duty. The
bill contains provisions that would increase the rent level
under which a servicemember or family members are protected
from eviction, limit a state's ability to increase the tax
liability of a servicemember's spouse, and increase the value
of life insurance coverage that is protected by the government
if premiums are not paid. CBO estimates that implementing S.
1136 would cost $3 million in 2004 and $12 million over the
2004-2008 period, assuming appropriation of the necessary
amounts. Enacting this legislation would not affect direct
spending or receipts.
S. 1136 contains an intergovernmental mandate as defined in
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that
the cost would not exceed the threshold established by UMRA
($59 million in 2003, adjusted annually for inflation).
The bill also contains several private-sector mandates as
defined in UMRA. CBO estimates that the cost of a mandate that
would increase the rent level under which a servicemember or
family members are protected from eviction would not exceed the
threshold established by UMRA for private-sector mandates ($117
million in 2003, adjusted annually for inflation). CBO does not
have sufficient information to estimate the costs of two other
private-sector mandates in the bill.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1136 is shown in the following table.
For this estimate, CBO assumes the legislation will be enacted
this fall and that the necessary amounts will be appropriated
for each year. The costs of this bill fall within budget
function 700 (veterans benefits and services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------
2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............................ 3 3 2 2 2
Estimated Outlays........................................ 3 3 2 2 2
----------------------------------------------------------------------------------------------------------------
Under current law, a servicemember may apply to the
Department of Veterans Affairs (VA) for protection to prevent a
life insurance policy from being terminated for nonpayment of
the premiums. If VA determines the servicemember is entitled to
protection, then it will guarantee the payment of the premiums
and attempt to collect any amounts paid by VA from the
servicemember. Section 402 of the bill would increase the
maximum value of a life insurance policy that is eligible for
protection from cancellation for nonpayment of premiums from
$10,000 to an amount equal to the Servicemembers' Group Life
Insurance limit, which is currently $250,000.
CBO estimates that implementing this legislation would cost
$3 million in 2004 and $12 million over the 2004-2008 period,
assuming appropriation of the necessary amounts. Almost all of
that amount would result from payments made by VA to guarantee
life insurance protection. According to VA, the costs of
providing this additional protection would be $186,000 a year
for every 10,000 reservists called to active duty. According to
the Department of Defense, as of October 1, 2003, there were
about 170,000 reservists mobilized to fight the war with Iraq
and support the global war on terrorism. For this estimate, CBO
assumes that the number of reservists on active duty will be
about 180,000 in 2004 and decline to about 100,000 by 2008 as
tensions around the globe subside. If the number of reservists
called to active duty were to remain at current levels over the
2004-2008 period, then the estimated costs would be
correspondingly higher. CBO also estimates that VA's cost to
administer this guarantee would increase somewhat-but by less
than $100,000 a year.
Estimated impact on state, local, and tribal governments:
S. 1136 contains an intergovernmental mandate as defined in
UMRA because it would prohibit jurisdictions from imposing
income taxes in certain instances. Under the current Soldiers'
and Sailors' Relief Act (section 574), servicemembers may only
be taxed on their military income by the tax jurisdiction of
which they are a resident. Servicemembers may not be taxed on
their military pay by the state in which they are stationed if
it is not their state of legal residence. However, if a
servicemember or a servicemember's spouse earns additional pay
off-base, the nonresident state may tax that off-base income.
In certain states with graduated income tax rates, the
income tax rate which is applied to the off-base pay may be
based on the servicemember's total income, including military
pay, and not the off-base pay only. Including military pay in
the calculation can push the off-base pay into a higher tax
bracket. That method of calculating state income tax is
sometimes called the ``California Method'' (although as many as
18 or more other states also use it). If the servicemember's
state of legal residence also charges income tax, the resident
state will offer an income tax credit for the income tax on the
off-base pay that the individual paid to the nonresident state.
Section 511 would prohibit a tax jurisdiction from using
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. Thus, a state where a servicemember is stationed
could not use the ``California method'' to determine the income
tax rate for the off-base pay, which may result in a lower
income tax rate on that off-base pay. This provision would
preempt state law under UMRA and would impose costs (in the
form of lost revenues) in certain cases. For states with a
graduated tax structure that use the California method to
calculate nonresident income taxes, enacting section 511 could
result in a lower income tax rate on off-base earnings. But the
net effect on the servicemember's overall income tax payments
to states would depend on the income tax structure of the
servicemember's resident state. In no case would section 511
increase the overall income tax payments to states by the
servicemember and their spouse. In some cases the provision
would have no net effect on income tax payments to states by
servicemembers and their spouses, and in some cases the
provision would reduce income tax payments to states. Thus,
states as a group would lose some income tax revenue. CBO
estimates that the cost of enacting section 511 would total
about $20 million annually, and thus would be well below the
threshold established by UMRA ($59 million in 2003, adjusted
annually for inflation).
Other provisions in S. 1136 would have no impact on state,
local, or tribal governments.
Estimated impact on the private sector: S. 1136 contains
private-sector mandates as defined in UMRA. Section 301 of the
bill would require a landlord who wishes to evict an active-
duty tenant or his or her dependents for nonpayment of rent to
obtain a court order authorizing the eviction. If the court
finds that the member's military service materially affects the
ability to pay rent, it can stay eviction for up to three
months. Under current law, the stay of eviction proceedings
covers premises for which the rent does not exceed $1,200 per
month. Section 301 would increase the mandate by raising the
monthly lease amount that is protected under S. 1136 to $2,400
and requiring that this amount be adjusted annually by a
housing price index. CBO estimates that the cost of complying
with this mandate would not exceed the threshold as specified
in UMRA for private-sector mandates ($117 million in 2003,
adjusted annually for inflation).
Section 305 would provide that a servicemember, who enters
military service for not less than 180 days, or who is
transferred outside the Continental United States for not less
than 180 days can terminate an existing lease for a motor
vehicle upon written notice to the lessor. Section 706 would
preclude the use of a servicemember's personal assets to
satisfy the member's trade or business liability while he or
she is in military service. While sections 305 and 706 would
constitute private-sector mandates under UMRA, CBO does not
have sufficient information to estimate their costs. Given the
possibility of large trade or business liabilities, the cost of
section 706's mandate could potentially exceed the private-
sector threshold specified in UMRA.
Estimate prepared by: Federal Costs: Michelle S. Patterson;
Impact on State, Local, and Tribal Governments: Melissa
Merrell; and Impact on the Private Sector: Adebayo Adedeji.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee on Veterans'
Affairs has made an evaluation of the regulatory impact that
would be incurred in carrying out the Committee bill. The
Committee finds that the Committee bill would entail regulation
of individuals or businesses that could potentially exceed the
private-sector threshold amount specified in UMRA. The
Committee finds that the Committee bill would not entail or
result in any impact on the personal privacy of any
individuals.
Tabulation of Votes Cast in Committee
In compliance with paragraph 7 of rule XXVI of the Standing
Rules of the Senate, the following is a tabulation of votes
cast in person or by proxy by members of the Committee on
Veterans' Affairs at its September 30, 2003, meeting. On that
date, the Committee, by unanimous voice vote, ordered S. 1136,
a bill to restate, clarify, and revise the Soldiers' and
Sailors' Civil Relief Act of 1940, as amended, reported
favorably to the Senate.
Agency Report
On July 10, 2003, Under Secretary for Benefits, Department
of Veterans Affairs, The Honorable Daniel L. Cooper, and
Principal Deputy Assistant Secretary of Defense for Reserve
Affairs, Department of Defense, Craig W. Duehring, appeared
before the Committee on Veterans' Affairs and submitted
testimony on, among other things, certain provisions of S.
1136, S. 792, and S. 806. Excerpts from these statements are
reprinted below:
Statement of Daniel L. Cooper, Under Secretary for Benefits, Department
of Veterans Affairs
Mr. Chairman and Members of the Committee, thank you for
the opportunity to testify today on several bills of great
interest to veterans.
* * * * *
S. 792 and S. 1136 are very similar bills that recodify and
revise the Soldiers' and Sailors' Civil Relief Act of 1940
(SSCRA), while renaming it the ``Servicemembers Civil Relief
Act'' (SCRA). Most of the protections provided under the SCRA
would be afforded to current members of the uniformed services
and to their dependents. DoD, not VA, is the Federal agency
with the primary interest in these bills, and we defer to DoD
on all such matters that fall within DoD's jurisdiction.
There is, however, one provision of the SSCRA, Article IV-
Insurance, that VA is charged with administering. I would like
to summarize for the Committee at this time our views on the
insurance-protection provisions of S. 792 and S. 1136.
Under section 402(c) of the SCRA, the maximum amount of
life insurance coverage protection provided would be increased
from $10,000 to $250,000. The original intent of the SSCRA with
regard to life insurance protection was to provide individuals
summoned to active duty with a guarantee that their commercial
life insurance coverage would not lapse for nonpayment of
premiums during service. While the provision of the current
statute that provides protection for up to $10,000 of coverage
under certain types of policies was of greater significance
during the 1940s and 1950s, it has become less of a benefit for
those serving in the Armed Forces today and has been little
used by service personnel. This is probably because the amounts
of insurance and types of coverage, including the availability
of coverage up to $250,000 under the Servicemembers' Group Life
Insurance program, have expanded over the years, while the
protection provided by the SSCRA has not changed.
We generally support the proposed revision of the life
insurance protections of the SSCRA contemplated by S. 792 and
S. 1136, which would greatly enhance the insurance protection
available to active duty personnel. We believe that many
servicemembers could benefit from the insurance protection
provisions of the bills, particularly the proposed increase in
the amount of life insurance that may be guaranteed and the
expansion of the types of life insurance policies that are
eligible for protection. We also applaud the effort to draft
the bills in plain language. We do, however, have several
concerns of a technical nature with regard to these bills.
In particular, section 401(1) of the SCRA would define
``policy'' as an insurance policy under which the insurer may
not increase the premium if the insured is in military service.
It is VA's understanding that normal term insurance premium
increases based upon age are not prohibited, and the only
prohibition is that of increasing premiums simply because the
insured is called to military service. Some clarification
concerning whether normally scheduled premium increases are
acceptable under this definition may be necessary. We also note
that VA regulations implementing the SSCRA currently exclude
group life insurance from protection under that statute.
Congress may wish to clarify whether it intends to include
group insurance within the coverage of the insurance protection
provisions.
Under section 402(a), the life insurance protection of the
SCRA could be requested by the insured, the insured's designee,
or the insured's beneficiary. Most other SCRA provisions would
require the servicemember to personally request protection.
While the SSCRA currently permits life insurance protection to
be requested by the servicemember's designee or by the
servicemember's beneficiary when the insured is deployed
outside the continental United States, S. 792 and S. 1136 would
also permit an application by a beneficiary when the insured is
deployed in the United States. We question whether it is
desirable to require VA to provide premium protection based on
a beneficiary's request about which the servicemember may be
unaware. The servicemember may become obligated to repay any
money VA expends to keep the policy in place. We believe the
better course is to require that the protections afforded under
Title IV of the SCRA be requested by the servicemember or the
insured's designee.
Section 407(a)(2) would require the United States, upon
expiration of insurance protection under the SCRA, to reimburse
the insurer for unpaid premiums in the amount of the difference
between the amount of premiums due and the cash surrender value
of the policy. The protections of the SCRA would be provided
during a period beginning upon a servicemember's entry into
military service and ending on the date of release from
military service. As a result, VA is obligated to provide
protection for the full military career of every active duty
servicemember who is insured under a life-insurance policy that
is in force for at least 180 days before entry into military
service and at the time of application for SCRA protection.
Given the period of protection provided by the SCRA and the
increased coverage proposed in section 402(c), the Government's
liability would likely increase exponentially. Congress should
recognize that these provisions would result in a substantial
increase in the Government's obligation to its service
personnel.
Under section 409, VA's decisions regarding life insurance
protection would be subject to review by the Board of Veterans'
Appeals (Board) and the Court of Appeals for Veterans Claims
(Veterans Court). If the contemplated review of life insurance
protections is adopted, conforming changes should be made to
title 38 to clarify the scope of the Board's jurisdiction.
Also, the current language of section 409 does not appear to
provide exclusive jurisdiction in the Board and the Veterans
Court over such matters. We recommend that Congress make its
intentions clear in this regard, and we would be glad to work
with Committee staff to draft these clarifications.
The budgetary impact of the expansion of insurance
protection contemplated by these bills will depend on the
number of servicemembers who are called to active duty in the
future, the number who choose to take advantage of the
insurance protection provisions, and whether the expanded
protection will apply to group life insurance policies. VA
estimates that the benefit cost of enactment of S. 792 or S.
1136 would be $186,000 annually for every 10,000 personnel
called to active duty. VA estimates that administrative costs
of the insurance protection provisions would total $67,000 in
FY 2004, $359,000 over the five-year period FY 2004-2008, and
$788,000 over the ten-year period FY 2004-2013.
The only other notable impact of S. 792 and S. 1136 on VA
would be in VA housing loan programs. The provisions of the
existing SSCRA concerning interest rates, default judgments,
termination of mortgages, and similar issues have a marginal
impact on VA with respect to VA-guaranteed loan holders and
loans held in our portfolio. We are not aware that any loan
holders in the VA housing-loan programs have encountered
significant problems as a result of these important protections
granted to persons in military service. We do not anticipate
that the amendments contemplated by S. 792 and S. 1136 would
have any significant additional impact on the VA housing loan
programs.
S. 806, the ``Deployed Service Members Financial Security
and Education Act of 2003,'' would amend title 37 of the United
States Code to authorize payment of a monthly allowance to
servicemembers involved in lengthy or repeated deployments.
This bill would also amend the interest-rate-relief provisions
of the SSCRA to include certain student loans and would
preserve educational status and protect tuition payments of
deployed servicemembers. As S. 806 pertains to allowances and
protections for active members of the Armed Forces, we defer to
DoD as to its merits.
* * * * *
Statement of Craig Duehring, Principal Deputy Assistant Secretary of
Defense for Reserve Affairs, Department of Defense
Mr. Chairman and members of the Committee, thank you for
giving me the opportunity to come before you this morning to
discuss S. 792 and S. 1136, two versions of the Servicemembers
Civil Relief Act, and section 3 of S. 806, the Deployed Service
Members Financial Security and Education Act of 2003.
The Department of Defense supports the reenactment of the
Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA) as the
Servicemembers Civil Relief Act. The need to modernize the
language of the Act, incorporate over 60 years of case law, and
add generally accepted practices is evident. The Department
believes both S. 792 and S. 1136 accomplish this goal and would
like to thank the Committee and its staff for their work on
this important effort.
The SSCRA has been an essential ingredient in the total
quality of life package for our military men and women, and
their families, since its passage. In passing this Act and its
Civil War and World War I era predecessors, Congress recognized
that active military service may cause severe, often
insurmountable, problems in handling personal affairs back
home: frequent involuntary moves, extended deployments
overseas, and long separations from families, sometimes with
little advance notice. Congress also recognized the need to
have military men and women focused on their operational
mission free from worry about the welfare of their families or
their personal affairs.
Congress addressed these problems adequately and equitably
through the Act's skillfully crafted balance among the needs of
our nation for a strong national defense, the needs of
servicemembers--and their families--for security in their
personal affairs, and the needs of those who have dealt with
and depend upon servicemembers for fulfillment of their
obligations.
S. 792 and S. 1136 in large part maintain this important
balance while addressing three areas where our experience with
the Act indicates that change is needed: Clarifying and
simplifying the language; incorporating generally accepted
procedures; and updating the Act to reflect 60 years of change
in America. With the ongoing Global War on Terrorism and
reserve mobilization, now is a good time to update and clarify
the Act so it can remain vital and continue to serve the needs
of military members and those with whom they do business.
The questions most frequently asked by servicemembers,
their families, and those who deal with them reveal that parts
of the Act are difficult to read and understand, and therefore
difficult to follow. It is apparent from these questions that
the entire Act needs to be rewritten in plain English and in
modern legislative drafting form. S. 792 and S. 1136 redraft
each section, updating the language and removing much
ambiguity.
Additionally, the Act does not provide necessary procedural
guidance in many areas. For example, although the Act protects
servicemembers with its stay of proceedings provision, it does
not explain how to go about obtaining the needed relief. S. 792
and S. 1136 provide this missing procedural guidance.
Finally, the world of 1940 could not have foreseen all the
changes in American life that more than 60 years of
technological advances and business practices would bring. The
extensive use of leases for automobiles and business equipment
could not possibly have been imagined over 60 years ago. S. 792
and S. 1136 reflect over 60 years of progress in America.
The Department of Defense has only a few comments regarding
specific provisions of S. 792, S. 1136, and section 3 of S.
806.
First, the Department prefers S. 1136's requirement
regarding notifying members of the benefits of the Act in
section 105 over the notification requirement in section 105 of
S. 792. We appreciate S. 1136's recognition that the
Department's current approach of notifying our members of the
provisions of the SSCRA through recurring mobilization and
deployment briefings and other command information media has
been effective and that an additional requirement for written
notification is unnecessary.
Second, the Department prefers section 301 of S. 1136 over
section 301 of S. 792 because it includes an automatic
inflation adjustment to the maximum monthly rental amount for
leases covered by that section's eviction protections. Tying
the maximum rental amount to the Basic Allowance for Housing
will result in extending this protection to more members who
are stationed in high cost areas because that allowance is
based on rental costs in the area where he or she is stationed.
Third, we believe that section 305(b) of S. 1136 can be
improved by amending it to allow termination of automobile
leases only when the period of active duty military service
exceeds a certain threshold, perhaps 180 days. As written, that
section would allow lease termination for short periods of
active duty when the member does not lose the use of a vehicle
or loses it for only a short time. Applying the termination
provision only to longer periods of active duty, when members
are more likely to lose the use of their vehicles, is more
consistent with the SSCRA's historical balance between
servicemembers and those they do business with, a balance that
has resulted in widespread support for the SSCRA within the
business community. Unlike the real property pre-service lease
termination provision, for which there is not a minimum period
of active duty, the automobile lease termination provision
applies to movable, depreciable property, justifying a minimum
period of active duty to ensure that the provision applies to
those members who really need it and to reduce its cost to the
lease financing community.
Fourth, the Department defers to the Department of
Education on section 207(a)(2) of S. 1136 and section 3(a) of
S. 806, which would extend the six percent interest rate cap to
federally-insured student loans. We note that while the
interest rate cap does not currently apply to such loans, the
Department of Education (DOE) has a policy of, during periods
of mobilization, requiring complete forbearance of interest and
principal repayment on federally-insured student loans for a
period of active service, up to one year, with extensions
possible. Unlike the interest rate cap, this DOE policy helps
servicemembers even when interest rates are below six percent.
Finally, the Department also defers to the Department of
Education on section 707 of S. 1136, which would require
institutions of higher education to reenroll students who left
school to perform active duty service and to allow completion
of unfinished courses at no additional cost, and on section
3(b) of S. 806, which addresses the same concern with a more
detailed set of requirements, including leaves of absence,
restoration of educational status, and refunds for uncompleted
course work. We note, though, that the Department has worked
closely with the educational community, state governors, and
the Service Members Opportunity Colleges (SOC), a DoD-funded
consortium of colleges and universities established in 1972, on
a voluntary program for taking care of reserve component
members who must leave school upon mobilization. Under this
very effective program, which covers the same elements as
section 707 of S. 1136 and section 3(b) of S. 806, SOC is the
focal point for handling individual cases when student-
reservists have a problem with an institution. Section 207 of
the National Science Foundation Authorization Act of 1998
(Public Law 105-207) directed the NSF to convene a forum of
government officials, representatives of the higher education
community, and members of the Armed Forces reserve components
to discuss and seek consensus on an appropriate resolution to
problems related to the academic standing and financial
obligations of reservists called to active duty. The forum
concluded it was best to seek solutions through enhanced
communications between DoD and the postsecondary education
community and did not recommend legislation.
I would again like to thank the Committee and its staff for
all of the effort that has gone into these important bills. We
appreciate this opportunity to discuss them with you.
Changes in Existing Law Made by the Committee Bill, as Reported
In compliance with paragraph 12 of Rule XXVI of the
Standing Rules of the Senate, the changes in existing law made
by the Committee bill, as reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new material is printed in italic, existing law in
which no changes are proposed is shown in roman):
[SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940
AN ACT To promote and strengthen the national defense by suspending
enforcement of certain civil liabilities of certain persons serving in
the Military and Naval Establishments, including the Coast Guard]
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, [That this
Act may be cited as the Soldiers' and Sailors' Civil Relief Act
of 1940.
[ARTICLE I--GENERAL PROVISIONS
[Sec. 100. In order to provide for, strengthen, and
expedite the national defense under the emergent conditions
which are threatening the peace and security of the United
States and to enable the United States the more successfully to
fulfill the requirements of the national defense, provision is
hereby made to suspend enforcement of civil liabilities, in
certain cases, of persons in the military service of the United
States in order to enable such persons to devote their entire
energy to the defense needs of the Nation, and to this end the
following provisions are made for the temporary suspension of
legal proceedings and transactions which may prejudice the
civil rights of persons in such service during the period
herein specified over which this Act remains in force.
[Sec. 101. (1) The term ``person in the military service'',
the term ``persons in military service'', and the term
``persons in the military service of the United States'' as
used in this Act, shall include the following persons and no
others: All members of the Army of the United States, the
United States Navy, the Marine Corps, the Air Force, the Coast
Guard, all officers of the Public Health Service detailed by
proper authority for duty either with the Army or the Navy, and
all members of the National Guard on service described in the
following sentence. The term ``military service'', as used in
this Act, shall signify Federal service on active duty with any
branch of service heretofore referred to or mentioned as well
as training or education under the supervision of the United
States preliminary to induction into the military service, and,
in the case of a member of the National Guard, shall include
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. The
terms ``active service'' or ``active duty'' shall include the
period during which a person in military service is absent from
duty on account of sickness, wounds, leave, or other lawful
cause.
[(2) The term ``period of military service'', as used in
this Act, means, in the case of any person, the period
beginning on the date on which the person enters active service
and ending on the date of the person's release from active
service or death while in active service, but in no case later
than the date when this Act ceases to be in force.
[(3) The term ``person'', when used in this Act with
reference to the holder of any right alleged to exist against a
person in military service or against a person secondarily
liable under such right, shall include individuals,
partnerships, corporations, and any other forms of business
association.
[(4) The term ``court'', as used in this Act, shall include
any court of competent jurisdiction of the United States or of
any State, whether or not a court of record.
[Sec. 102. (1) The provisions of this Act shall apply to
the United States, the several States and Territories, the
District of Columbia, and all territory subject to the
jurisdiction of the United States, and to proceedings commenced
in any court therein, and shall be enforced through the usual
forms of procedure obtaining in such courts or under such
regulations as may be by them prescribed.
[(2) 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.
[Sec. 103. (1) Whenever pursuant to any of the provisions
of this Act the enforcement of any obligation or liability, the
prosecution of any suit or proceeding, the entry or enforcement
of any order, writ, judgment, or decree, or the performance of
any other act, may be stayed, postponed, or suspended, such
stay, postponement, or suspension may, in the discretion of the
court, likewise be granted to sureties, guarantors, endorsers,
accommodation makers, and others, whether primarily or
secondarily subject to the obligation or liability, the
performance or enforcement of which is stayed, postponed, or
suspended.
[(2) When a judgment or decree is vacated or set aside in
whole or in part, as provided in this Act, the same may, in the
discretion of the court, likewise be set aside and vacated as
to any surety, guarantor, endorser, accommodation maker, or
other person whether primarily or secondarily liable upon the
contract or liability of the enforcement of which the judgment
or decree was entered.
[(3) Whenever, by reason of the military service of a
principal upon a criminal bail bond the sureties upon such bond
are prevented from enforcing the attendance of their principal
and performing their obligation the court shall not enforce the
provisions of such bond during the military service of the
principal thereon and may in accordance with principles of
equity and justice either during or after such service
discharge such sureties and exonerate the bail.
[(4) Nothing contained in this Act shall prevent a waiver
in writing of the benefits afforded by subsections (1) and (2)
of this section by any surety, guarantor, endorser,
accommodation maker, or other person whether primarily or
secondarily liable upon the obligation or liability, except
that no such waiver shall be valid unless it is executed as an
instrument separate from the obligation or liability in respect
of which it applies, and no such waiver shall be valid after
the beginning of the period of military service if executed by
an individual who subsequent to the execution of such waiver
becomes a person in military service, or if executed by a
dependent of such individual, unless executed by such
individual or dependent during the period specified in section
106.
[Sec. 104. Persons who serve with the forces of any nation
with which the United States may be allied in the prosecution
of any war in which the United States engages while this Act
remains in force and who immediately prior to such service
where citizens of the United States shall, except in those
cases provided for in section 512, be entitled to the relief
and benefits afforded by this Act if such service is similar to
military service as defined in this Act, unless they are
dishonorably discharged therefrom, or it appears that they do
not intend to resume United State citizenship.
[Sec. 105. The Secretary of Defense and the Secretary of
Transportation, with respect to the Coast Guard when it is not
operating as a service in the Navy, shall ensure the giving of
notice of the benefits accorded by this Act to persons in and
to persons entering military service. The Director of Selective
Service shall cooperate with the Secretary of Defense and the
Secretary of Transportation in carrying out the provisions of
this section.
[Sec. 106. Any person who has been ordered to report for
induction under the Military Selective Service Act (50 U.S.C.
App. 451 et seq.) shall be entitled to the relief and benefits
accorded persons in military service under articles I, II, and
III of this Act during the period beginning on the date of
receipt of such order and ending on the date upon which such
person reports for induction; and any member of a reserve
component of the Armed Forces who is ordered to report for
military service shall be entitled to such relief and benefits
during the period beginning on the date of receipt of such
order and ending on the date upon which such member reports for
military service or the date on which the order is revoked,
whichever is earlier.
[Sec. 107. Nothing contained in this Act shall prevent--
[(a) the modification, termination, or cancellation
of any contract, lease, or bailment or any obligation
secured by mortgage, trust, deed, lien, or other
security in the nature of a mortgage, or
[(b) the repossession, retention, foreclosure, sale,
forfeiture, or taking possession of property which is
security for any obligation or which has been purchased
or received under a contract, lease, or bailment,
pursuant to a written agreement of the parties thereto
(including the person in military service concerned, or
the person to whom section 106 is applicable, whether
or not such person is a party to the obligation), or
their assignees executed during or after the period of
military service of the person concerned or during the
period specified in section 106.
[Sec. 108. Application by a person in military service for,
or receipt by a person in military service of, a stay,
postponement, or suspension pursuant to the provisions of this
Act in the payment of any tax, fine, penalty, insurance
premium, or other civil obligation or liability of that person
shall not itself (without regard to other considerations)
provide the basis for any of the following:
[(1) A determination by any lender or other person
that such person in military service is unable to pay
such civil obligation or liability in accordance with
its terms.
[(2) With respect to a credit transaction between a
creditor and such person in military service--
[(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 such person in substantially the
amount or on substantially the terms requested.
[(3) An adverse report relating to the
creditworthiness of such person in military service by
or to any person or entity engaged in the practice of
assembling or evaluating consumer credit information.
[(4) A refusal by an insurer to insure such person.
[ARTICLE II--GENERAL RELIEF
[Sec. 200. (1) In any action or proceeding commenced in any
court, if there shall be a default of any appearance by the
defendant, the plaintiff, before entering judgment shall file
in the court an affidavit setting forth facts showing that the
defendant is not in military service. If unable to file such
affidavit plaintiff shall in lieu thereof file an affidavit
setting forth either that the defendant is in the military
service or that plaintiff is not able to determine whether or
not defendant is in such service. If an affidavit is not filed
showing that the defendant is not in the military service, no
judgment shall be entered without first securing an order of
court directing such entry, and no such order shall be made if
the defendant is in such service until after the court shall
have appointed an attorney to represent defendant and protect
his interest, and the court shall on application make such
appointment. Unless it appears that the defendant is not in
such service the court may require, as a condition before
judgment is entered, that the plaintiff file a bond approved by
the court conditioned to indemnify the defendant, if in
military service, against any loss or damage that he may suffer
by reason of any judgment should the judgment be thereafter set
aside in whole or in part. And the court may make such other
and further order or enter such judgment as in its opinion may
be necessary to protect the rights of the defendant under this
Act. Whenever, under the laws applicable with respect to any
court, facts may be evidenced, established, or proved by an
unsworn statement, declaration, verification, or certificate,
in writing, subscribed and certified or declared to be true
under penalty of perjury, the filing of such an unsworn
statement, declaration, verification, or certificate shall
satisfy the requirement of this subdivision that facts be
established by affidavit.
[(2) Any person who shall make or use an affidavit required
under this section, or a statement, declaration, verification,
or certificate certified or declared to be true under penalty
of perjury permitted under subdivision (1), knowing it to be
false, shall be guilty of a misdemeanor and shall be punishable
by imprisonment not to exceed one year or by fine not to exceed
$1,000, or both.
[(3) In any action or proceeding in which a person in
military service is a party if such party does not personally
appear therein or is not represented by an authorized attorney,
the court may appoint an attorney to represent him; and in such
case a like bond may be required and an order made to protect
the rights of such person. But no attorney appointed under this
Act to protect a person in military service shall have power to
waive any right of the person for whom he is appointed or bind
him by his acts.
[(4) If any judgment shall be rendered in any action or
proceeding governed by this section against any person in
military service during the period of such service or within
thirty days thereafter, and it appears that such person was
prejudiced by reason of his military service in making his
defense thereto, such judgment may, upon application, made by
such person or his legal representative, not later than ninety
days after the termination of such service, be opened by the
court rendering the same and such defendant or his legal
representative let in to defend; provided it is made to appear
that the defendant has a meritorious or legal defense to the
action or some part thereof. Vacating, setting aside, or
reversing any judgment because of any of the provisions of this
Act shall not impair any right or title acquired by any bona
fide purchaser for value under such judgment.
[Sec. 201. At any stage thereof any action or proceeding in
any court in which a person in military service is involved,
either as plaintiff or defendant, during the period of such
service or within sixty days thereafter may, in the discretion
of the court in which it is pending, on its own motion, and
shall, on application to it by such person or some person on
his behalf, be stayed as provided in this Act unless, in the
opinion of the court, the ability of plaintiff to prosecute the
action or the defendant to conduct his defense is not
materially affected by reason of his military service.
[Sec. 202. When an action for compliance with the terms of
any contract is stayed pursuant to this Act no fine or penalty
shall accrue by reason of failure to comply with the terms of
such contract during the period of such stay, and in any case
where a person fails to perform any obligation and a fine or
penalty for such nonperformance is incurred a court may, on
such terms as may be just, relieve against the enforcement of
such fine or penalty if it shall appear that the person who
would suffer by such fine or penalty was in the military
service when the penalty was incurred and that by reason of
such service the ability of such person to pay or perform was
thereby materially impaired.
[Sec. 203. In any action or proceeding commenced in any
court against a person in military service, before or during
the period of such service, or within sixty days thereafter,
the court may, in its discretion, on its own motion, or on
application to it by such person or some person on his behalf
shall, unless in the opinion of the court the ability of the
defendant to comply with the judgment or order entered or
sought is not materially affected by reason of his military
service--
[(a) Stay the execution of any judgment or order
entered against such person, as provided in this Act;
and
[(b) Vacate or stay any attachment or garnishment of
property, money, or debts in the hands of another,
whether before or after judgment as provided in this
Act.
[Sec. 204. Any stay of any action, proceeding, attachment,
or execution, ordered by any court under the provisions of this
Act may, except as otherwise provided, be ordered for the
period of military service and three months thereafter or any
part of such period, and subject to such terms as may be just,
whether as to payment in installments of such amounts and at
such times as the court may fix or otherwise. Where the person
in military service is a codefendant with others the plaintiff
may nevertheless by leave of court proceed against the others.
[Sec. 205. The period of military service shall not be
included in computing any period now or hereafter to be limited
by any law, regulation, or order for the bringing of any action
or proceeding in any court, board, bureau, commission,
department, or other agency of government by or against any
person in military service or by or against his heirs,
executors, administrators, or assigns, whether such cause of
action or the right or privilege to institute such action or
proceeding shall have accrued prior to or during the period of
such service, nor shall any part of such period which occurs
after October 6, 1942, be included in computing any period now
or hereafter provided by any law for the redemption of real
property sold or forfeited to enforce any obligation, tax, or
assessment.
[Sec. 206. No obligation or liability bearing interest at a
rate in excess of 6 percent per year incurred by a person in
military service before that person's entry into that service
shall, during any part of the period of military service, bear
interest at a rate in excess of 6 percent per year unless, in
the opinion of the court, upon application thereto by the
obligee, the ability of such person in military service to pay
interest upon such obligation or liability at a rate in excess
of 6 percent per year is not materially affected by reason of
such service, in which case the court may make such order as in
its opinion may be just. As used in this section the term
`interest' includes service charges, renewal charges, fees, or
any other charges (except bona fide insurance) in respect of
such obligation or liability.
[Sec. 207. Section 205 of this Act shall not apply with
respect to any period of limitation prescribed by or under the
internal revenue laws of the United States.
[ARTICLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS,
ASSIGNMENTS, LEASES
[Sec. 300. (a) No eviction or distress shall be made during
the period of military service in respect of any premises for
which the agreed rent does not exceed $1,200 per month,
occupied chiefly for dwelling purposes by the wife, children,
or other dependents of a person in military service, except
upon leave of court granted upon application therefor or
granted in an action or proceeding affecting the right of
possession.
[(b) On any such application or in any such action the
court may, in its discretion, on its own motion, and shall, on
application, unless in the opinion of the court the ability of
the tenant to pay the agreed rent is not materially affected by
reason of such military service, stay the proceedings for not
longer than three months, as provided in this Act, or it may
make such other order as may be just. Where such stay is
granted or other order is made by the court, the owner of the
premises shall be entitled, upon application therefor, to
relief in respect of such premises similar to that granted
persons in military service in sections 301, 302, and 500 of
this Act to such extent and for such period as may appear to
the court to be just.
[(c) Any person who shall knowingly take part in any
eviction or distress otherwise than as provided in subsection
(a), or attempts so to do, shall be fined as provided in title
18, United States Code, or imprisoned for not to exceed one
year, or both.
[(d) Secretary of Defense or Secretary of Transportation,
with respect to the Coast Guard when it is not operating as a
service in the Navy, is hereby empowered, subject to such
regulations as he may prescribe, to order an allotment of the
pay of a person in military service in reasonable proportion to
discharge the rent of premises occupied for dwelling purposes
by the wife, children, or other dependents of such person.
[Sec. 301. (1) No person who has received, or whose
assignor has received, under a contract for the purchase of
real or personal property, or of lease or bailment with a view
to purchase of such property, a deposit or installment of the
purchase price, or a deposit or installment under the contract,
lease, or bailment, from a person or from the assignor of a
person who, after the date of payment of such deposit or
installment, has entered military service, shall exercise any
right or option under such contract to rescind or terminate the
contract or resume possession of the property for nonpayment of
any installment thereunder due or for any other breach of the
terms thereof occurring prior to or during the period of such
military service, except by action in a court of competent
jurisdiction.
[(2) Any person who shall knowingly resume possession of
property which is the subject of this section otherwise than as
provided in subsection (1) of this section or in section 107,
or attempts so to do, shall be fined as provided in title 18,
United States Code, or imprisoned for not to exceed one year,
or both.
[(3) Upon the hearing of such action the court may order
the repayment of prior installments or deposits or any part
thereof, as a condition of terminating the contract and
resuming possession of the property, or may, in its discretion,
on its own motion, and shall, on application to it by such
person in military service or some person on his behalf, order
a stay of proceedings as provided in this Act unless, in the
opinion of the court, the ability of the defendant to comply
with the terms of the contract is not materially affected by
reason of such service; or it may make such other disposition
of the case as may be equitable to conserve the interests of
all parties.
[Sec. 302. (1) The provisions of this section shall apply
only to obligations secured by mortgage, trust deed, or other
security in the nature of a mortgage upon real or personal
property owned by a person in military service at the
commencement of the period of the military service and still so
owned by him which obligations originated prior to such
person's period of military service.
[(2) In any proceedings commenced in any court during the
period of military service to enforce such obligation arising
out of nonpayment of any sum thereunder due or out of any other
breach of the terms thereof occurring prior to or during the
period of such service the court may, after hearing, in its
discretion, on its own motion, and shall, on application to it
by such person in military service or some person on his
behalf, unless in the opinion of the court the ability of the
defendant to comply with the terms of the obligation is not
materially affected by reason of his military service--
[(a) stay the proceedings as provided in this Act; or
[(b) make such other disposition of the case as may
be equitable to conserve the interests of all parties.
[(3) No sale, foreclosure, or seizure of property for
nonpayment of any sum due under any such obligation, or for any
other breach of the terms thereof, whether under a power of
sale, under a judgment entered upon warrant of attorney to
confess judgment contained therein, or otherwise, shall be
valid if made October 6, 1942, during the period of military
service or within three months thereafter, except pursuant to
an agreement as provided in section 107, unless upon an order
previously granted by the court and a return thereto made and
approved by the court.
[(4) Any person who shall knowingly make or cause to be
made any sale, foreclosure, or seizure of property, defined as
invalid by subsection (3) hereof, or attempts so to do, shall
be fined as provided in title 18, United States Code, or
imprisoned for not to exceed one year, or both.
[Sec. 303. Where a proceeding to foreclose a mortgage upon
or to resume possession of personal property, or to rescind or
terminate a contract for the purchase thereof, has been stayed
as provided in this Act, the court may, unless in its opinion
an undue hardship would result to the dependents of the person
in military service, appoint three disinterested parties to
appraise the property and, based upon the report of the
appraisers, order such sum, if any, as may be just, paid to the
person in military service or his dependent, as the case may
be, as a condition of foreclosing the mortgage, resuming
possession of the property, or rescinding or terminating the
contract.
[Sec. 304. (1) The provisions of this section shall apply
to any lease covering premises occupied for dwelling,
professional, business, agricultural, or similar purposes in
any case in which (a) such lease was executed by or on the
behalf of a person who, after the execution of such lease,
entered military service, and (b) the premises so leased have
been occupied for such purposes, or for a combination of such
purposes, by such person or by him and his dependents.
[(2) Any such lease may be terminated by notice in writing
delivered to the lessor (or his grantee) or to the lessor's (or
his grantee's) agent by the lessee at any time following the
date of the beginning of his period of military service.
Delivery of such notice may be accomplished by placing it in an
envelope properly stamped and duly addressed to the lessor (or
his grantee) or to the lessor's (or his grantee's) agent and
depositing the notice in the United States mails. Termination
of any such lease providing for monthly payment of rent shall
not be effective until thirty days after the first date on
which the next rental payment is due and payable subsequent to
the date when such notice is delivered or mailed. In the case
of all other leases, termination shall be effected on the last
day of the month following the month in which such notice is
delivered or mailed and in such case any unpaid rental for a
period preceding termination shall be proratably computed and
any rental paid in advance for a period succeeding termination
shall be refunded by the lessor (or his assignee). Upon
application by the lessor to the appropriate court prior to the
termination period provided for in the notice, any relief
granted in this subsection shall be subject to such
modifications or restrictions as in the opinion of the court
justice and equity may in the circumstances require.
[(3) Any person who shall knowingly seize, hold, or detain
the personal effects, clothing, furniture, or other property,
of any person who has lawfully terminated a lease covered by
this section, or in any manner interfere with the removal of
such property from the 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 so to do, shall be fined
as provided in title 18, United States Code, or imprisoned for
not to exceed one year, or both.
[Sec. 305. (1) Where any life insurance policy on the life
of a person in military service has been assigned prior to such
person's period of military service to secure the payment of
any obligation of such person, no assignee of such policy
(except the insurer in connection with a policy loan) shall,
during the period of military service of the insured or within
one year thereafter, except upon the consent in writing of the
insured made during such period or when the premiums thereon
are due and unpaid or upon the death of the insured, exercise
any right or option by virtue of such assignment unless upon
leave of court granted upon an application made therefor by
such assignee. The court may thereupon refuse to grant such
leave unless in the opinion of the court the ability of the
obligor to comply with the terms of the obligation is not
materially affected by reason of his military service. For the
purpose of this subsection premiums which are guaranteed under
the provisions of article IV of this Act shall not be deemed to
be due and unpaid.
[(2) No person shall exercise any right to foreclose or
enforce any lien for storage of household goods, furniture, or
personal effects of a person in military service during such
person's period of military service and for three months
thereafter except upon an order previously granted by a court
upon application therefor and a return thereto made and
approved by the court. In such proceeding the court may, after
hearing, in its discretion, on its own motion, and shall, on
application to it by such person in military service or some
person on his behalf, unless in the opinion of the court the
ability of the defendant to pay the storage charge due is not
materially affected by reason of his military service--
[(a) stay the proceedings as provided in this Act; or
[(b) make such other disposition of the case as may
be equitable to conserve the interest of all parties.
[The enactment of the provisions of this subsection shall not
be construed in any way as affecting or as limiting the scope
of section 302 of this Act.
[(3) Any person who shall knowingly take any action
contrary to the provisions of this section, or attempts so to
do, shall be fined as provided in title 18, United States Code,
or imprisoned for not to exceed one year, or both.
[Sec. 306. Dependents of a person in military service shall
be entitled to the benefits accorded to persons in military
service under the provisions of this article upon application
to a court therefor, unless in the opinion of the court the
ability of such dependents to comply with the terms of the
obligation, contract, lease, or bailment has not been
materially impaired by reason of the military service of the
person upon whom the applicants are dependent.
[ARTICLE IV--INSURANCE
[Sec. 400. As used in this article--
[(a) The term ``policy'' shall include any contract
of life insurance or policy on a life, endowment, or
term plan, including any benefit in the nature of life
insurance arising out of membership in any fraternal or
beneficial association, which does not provide for the
payment of any sum less than the face value thereof or
for the payment of an additional amount as premiums if
the insured engages in the military service of the
United States as defined in section 101 of article I of
this Act or which does not contain any limitation or
restriction upon coverage relating to engagement in or
pursuit of certain types of activities which a person
might be required to engage in by virtue of his being
in such military service, and (1) which is in force on
a premium-paying basis at the time of application for
benefits hereunder, and (2) which was made and a
premium paid thereon October 6, 1942, not less than 180
days before the date the insured entered into the
military service. The provisions of this Act shall not
be applicable to policies or contracts of life
insurance issued under the War Risk Insurance Act, as
amended, the World War Veterans Act, as amended, or the
National Service Life Insurance Act of 1940, as
amended.
[(b) The term ``premium'' shall include the amount
specified in the policy as the stipend to be paid by
the insured at regular intervals during the period
therein stated.
[(c) The term ``insured'' shall include any person in
the military service of the United States as defined in
section 101, article I, of this Act, whose life is
insured under and who is the owner and holder of and
has an interest in a policy as above defined.
[(d) The term ``insurer'' shall include any firm,
corporation, partnership, or association chartered or
authorized to engage in the insurance business and to
issue a policy as above defined by the laws of a State
of the United States or the United States.
[Sec. 401. The benefits and privileges of this article
shall apply to any insured, when such insured, or a person
designated by him, or, in case the insured is outside the
continental United States (excluding Alaska and the Panama
Canal Zone), a beneficiary, shall make written application for
protection under this article, unless the Secretary of Veterans
Affairs in passing upon such application as provided in this
article shall find that the policy is not entitled to
protection hereunder. The Secretary shall give notice to the
military and naval authorities of the provisions of this
article, and shall include in such notice an explanation of
such provisions for the information of those desiring to make
application for the benefits thereof. The original of such
application shall be sent by the insured to the insurer, and a
copy thereof to the Secretary. The total amount of insurance on
the life of one insured under policies protected by the
provisions of this article shall not exceed $10,000. If an
insured makes application for protection of policies on his
life totaling insurance in excess of $10,000, the Secretary is
authorized to have the amount of insurance divided into two or
more policies so that the protection of this article may be
extended to include policies for a total amount of insurance
not to exceed $10,000, and a policy which affords the best
security to the Government shall be given preference.
[Sec. 402. Any writing signed by the insured and
identifying the policy and the insurer, and agreeing that his
rights under the policy are subject to and modified by the
provisions of this article, shall be sufficient as an
application for the benefits of this article, but the Secretary
of Veterans Affairs may require the insured and insurer to
execute such other forms as may be deemed advisable. Upon
receipt of the application of the insured the insurer shall
furnish such report to the Secretary concerning the policy as
shall be prescribed by regulations. The insured who has made
application for protection under this article and the insurer
shall be deemed to have agreed to such modification of the
policy as may be required to give this article full force and
effect with respect to such policy.
[Sec. 403. The Secretary of Veterans Affairs shall find
whether the policy is entitled to protection under this article
and shall notify the insured and the insurer of such finding.
Any policy found by the Secretary to be entitled to protection
under this article shall not, subsequent to date of
application, and during the period of military service of the
insured or during two years after the expiration of such
service, lapse or otherwise terminate or be forfeited for the
nonpayment of a premium becoming due and payable, or the
nonpayment of any indebtedness or interest.
[Sec. 404. No dividend or other monetary benefit under a
policy shall be paid to an insured or used to purchase dividend
additions while a policy is protected by the provisions of this
article except with the consent and approval of the Secretary
of Veterans Affairs. If such consent is not procured, such
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. No cash value, loan value, or withdrawal of dividend
accumulation, or unearned premium, or other value of similar
character shall be available to the insured while the policy is
protected under this article except upon approval by the
Secretary of Veterans Affairs. The insured's right to change a
beneficiary designation or select an optional settlement for a
beneficiary shall not be affected by the provisions of this
article.
[Sec. 405. In the event of maturity of a policy as a death
claim or otherwise before the expiration of the period of
protection under the provisions of this article, the insurer in
making settlement will deduct from the amount of insurance the
premiums guaranteed under this article, together with interest
thereon at the rate fixed in the policy for policy loans. If no
rate of interest is specifically fixed in the policy, the rate
shall be the rate fixed for policy loans in other policies
issued by the insurer at the time the policy brought under the
Act was issued. The amount deducted by reason of the protection
afforded by this article shall be reported by the insurer to
the Secretary of Veterans Affairs.
[Sec. 406. Payment of premiums and interest thereon at the
rate specified in section 405 hereof becoming due on a policy
while protected under the provisions of this article is
guaranteed by the United States, and if the amount so
guaranteed is not paid to the insurer prior to the expiration
of the period of insurance protection under this article, the
amount then due shall be treated by the insurer as a policy
loan on such policy, but if at the expiration of said period
the cash surrender value is less than the amount then due, the
policy shall then cease and terminate and the United States
shall pay the insurer the difference between such amount and
the cash surrender value. The amount paid by the United States
to an insurer on account of applications approved under the
provisions of this article as amended, shall become a debt due
to the United States by the insured on whose account payment
was made and, notwithstanding any other Act, such amount may be
collected either by deduction from any amount due said insured
by the United States or as otherwise authorized by law. Any
moneys received as repayment of debts incurred under this
article, as originally enacted and as amended, shall be
credited to the appropriation for the payment of claims under
this article.
[Sec. 407. The Secretary of Veterans Affairs shall provide
by regulations for such rules of procedures and forms as he may
deem advisable in carrying out the provisions of this article.
The findings of fact and conclusions of law made by the
Secretary in administering the provisions of this article shall
be final, and shall not be subject to review by any other
official or agency of the Government.
[ARTICLE V--TAXES AND PUBLIC LANDS
[Sec. 500. (1) The provisions of this section shall apply
when any taxes or assessments, whether general or special
(other than taxes on income), whether falling due prior to or
during the period of military service, in respect of personal
property, money, or credits, or real property owned and
occupied for dwelling, professional, business, or agricultural
purposes by a person in military service or his dependents at
the commencement of his period of military service and still so
occupied by his dependents or employees are not paid.
[(2) No sale of such property shall be made to enforce the
collection of such tax or assessment, or any proceeding or
action for such purpose commenced, except upon leave of court
granted upon application made therefor by the collector of
taxes or other officer whose duty it is to enforce the
collection of taxes or assessments. The court thereupon, unless
in its opinion the ability of the person in military service to
pay such taxes or assessments is not materially affected by
reason of such service, may stay such proceedings or such sale,
as provided in this Act, for a period extending not more than
six months after the termination of the period of military
service of such person.
[(3) When by law such property may be sold or forfeited to
enforce the collection of such tax or assessment, such person
in military service shall have the right to redeem or commence
an action to redeem such property, at any time not later than
six months after the termination of such service, but in no
case later than six months after the date when this Act ceases
to be in force; but this shall not be taken to shorten any
period, now or hereafter provided by the laws of any State or
Territory for such redemption.
[(4) Whenever any tax or assessment shall not be paid when
due, such tax or assessment due and unpaid shall bear interest
until paid at the rate of 6 per centum per annum, and no other
penalty or interest shall be incurred by reason of such
nonpayment. Any lien for such unpaid taxes or assessment shall
also include such interest thereon.
[Sec. 501. (1) No right to any lands owned or controlled by
the United States initiated or acquired under any laws of the
United States, including the mining and mineral leasing laws,
by any person prior to entering military service shall during
the period of such service be forfeited or prejudiced by reason
of his absence from the land or his failure to perform any work
or make any improvements thereon or his failure to do any other
act required by or under such laws.
[(2) If a permittee or licensee under the Act of June 28,
1934 (48 Stat. 1269), enters military service he may elect to
suspend his permit or license for the period of his military
service and six months thereafter, and the Secretary of the
Interior by regulations shall provide for such suspension of
permits and licenses and for the remission, reduction, or
refund or grazing fees during such suspension.
[(3) This section shall not be construed to control
specific requirements contained in this article.
[Sec. 502. If any person whose application for a homestead
entry has been allowed or who has made application for
homestead entry which may thereafter be allowed, after such
entry or application enters military service, or if any person
who has a valid settlement claim enters military service, the
Department of the Interior shall construe his military service
to be equivalent to residence and cultivation upon the tract
entered or settled upon for the period of such service. From
the effective date of this Act no contest shall be initiated on
the ground of abandonment and no allegation of abandonment
shall be sustained against any such person, unless it shall be
alleged in the preliminary affidavit or affidavits of contest
and proved at the hearing in cases initiated subsequent to the
effective date of this Act that the alleged absence from the
land was not due to such military service. If such person is
discharged on account of wounds received or disability incurred
in the line of duty, the term of his enlistment and any period
of hospitalization due to such wounds or disability shall be
deducted from the required length of residence, without
reference to the time of actual service. No patent shall issue
to any such person who has not resided upon, improved, and
cultivated his homestead for a period of at least one year.
[Sec. 503. (1) If any person whose application for a
homestead entry has been allowed or who has made application
for homestead entry which may thereafter be allowed or who has
a valid settlement claim dies while in military service or as a
result of such service, his widow, if unmarried, or in the case
of her death or marriage, his minor children, or his or their
legal representatives, may proceed forthwith to make final
proof upon such entry or upon an application which is allowed
after the applicant's death, or upon a homestead application
thereafter allowed based on a valid settlement claim, and shall
be entitled to receive a patent for such land. The death of
such person while in military service or as a result of such
service shall be construed to be equivalent to a performance of
all requirements as to residue and cultivation upon such
homestead or claim, notwithstanding the provisions of section
502 of this Act.
[(2) If such person is honorably discharged and because of
physical incapacities due to such service is unable to return
to the land, he may make final proof without further residence,
improvement, or cultivation, at such time and place as the
Secretary of the Interior may authorize, and receive a patent
to the land entered.
[(3) The Act of July 28, 1917 (40 Stat. 248), is repealed.
[Sec. 504. (1) No desert-land entry made or held under the
desert-land laws prior to the entrance of the entryman or his
successor in interest into military service shall be subject to
contest or cancellation for failure to make or expend the sum
of $1 per acre per year in improvements upon the claim or to
effect the reclamation of the claim during the period the
entryman or his successor in interest is engaged in military
service or during a period of six months thereafter or during
any period of hospitalization because of wounds or disability
incurred in the line of duty. The time within which such
entryman or claimant is required to make such expenditures and
effect reclamation of the land shall be exclusive of his period
of service and the six-months' period and any such period of
hospitalization.
[(2) If such entryman or claimant is honorably discharged
and because of physical incapacities due to such service is
unable to accomplish reclamation of, and payment for, the land,
he may make proof without further reclamation or payments under
such rules as the Secretary of the Interior may prescribe and
receive patent for the land entered or claimed.
[(3) In order to obtain the benefits of this section, such
entryman or claimant shall, within six months after his
entrance into military service, file or cause to be filed in
the land office of the district in which his claim is situated
a notice that he has entered military service and that he
desires to hold the desert claim under this section.
[Sec. 505. (1) The provisions of section 2324 of the
Revised Statutes of the United States (30 U.S.C. 28), which
require that on each mining claim located after May 10, 1872,
and until patent has been issued therefor not less than $100
worth of labor shall be performed or improvements made during
each year, shall not apply during the period of his service, or
until six months after the termination of such service, or
during any period of hospitalization because of wounds or
disability incurred in line of duty, to claims or interests in
claims which are owned by a person in military service and
which have been regularly located and recorded. No mining claim
or any interest in a claim which is owned by such a person and
which has been regularly located and recorded shall be subject
to forfeiture by nonperformance of the annual assessments
during the period of such military service, or until six months
after the termination of such service or of such
hospitalization.
[(2) In order to obtain the benefits of this section, the
claimant of any mining location shall, before the expiration of
the assessment year during which he enters military service,
file or cause to be filed in the office where the location
notice or certificate is recorded a notice that he has entered
such service and that he desires to hold his mining claim under
this section.
[Sec. 506. (1) Any person holding a permit or lease on the
public domain under the Federal mineral leasing laws who enters
military service may, at his election, suspend all operations
under his permit or lease for a period of time equivalent to
the period of his military service and six months thereafter.
The term of the permit or lease shall not run during such
period of suspension nor shall any rentals or royalties be
charged against the permit or lease during the period of
suspension.
[(2) In order to obtain the benefit of this section, such
permittee or lessee shall, within six months after his entrance
into military service, notify the Bureau of Land Managment by
registered mail of his entrance into such service and of his
desire to avail himself of the benefits of this section.
[(3) This section shall not be construed to supersede the
terms of any contract for operation of a permit or lease.
[Sec. 507. Nothing in this article shall be construed to
limit or affect the right of a person in military service to
take any action during his period of service which may be
authorized by law or the regulations of the Department of the
Interior for the perfection, defense, or further assertion of
rights initiated or acquired prior to the date of entering
military service. It shall be lawful for any person while in
such service to make any affidavit or submit any proof which
may be required by law or the practice or regulations of the
Bureau of Land Management in connection with the entry,
perfection, defense, or further assertion of any rights
initiated or acquired prior to entering such service, before
the officer in immediate command and holding a commission in
the branch of the service in which the person is engaged. Such
affidavits shall be as binding in law and with like penalties
as if taken before an officer designated by the Secretary of
the Interior. The Secretary of the Interior may issue rules and
regulations to effectuate the purposes of sections 501 to 512.
[Sec. 508. The Secretary of the Interior is hereby
authorized in his discretion, to suspend as to persons in
military service during the period while this Act remains in
force and for a period of six months thereafter or during any
period of hospitalization because of wounds or disability
incurred in line of duty that provision of the act known as the
``Reclamation Act'' requiring residence upon lands in private
ownership or within the neighborhood for securing water for the
irrigation of the same, and he is authorized to permit the use
of available water thereon upon such terms and conditions as he
may deem proper.
[Sec. 509. The Secretary of the Interior shall issue
through appropriate military and naval channels a notice for
distribution by appropriate military and naval authorities to
persons in the military service explaining the provisions of
this article except as to sections 500, 513, and 514 hereof and
shall furnish forms to be distributed in like manner to those
desiring to make application for its benefits, except as to
said sections.
[Sec. 510. (1) During the pendency of any war in which the
United States may be engaged while this Act remains in force
any homestead entryman shall be entitled to a leave of absence
from his entry for the purpose of performing farm labor. The
time actually spent in farm labor shall be counted as
constructive residence, if within fifteen days after leaving
his entry to engage in such labor the entryman files a notice
of absence in the land office of the district in which his
entry is situated, and if at the expiration of the calendar
year the entryman files in that office a written statement
under oath and corroborated by two witnesses giving the date or
dates when he left his entry, the date or dates of his return,
and the place where and person for whom he was engaged in farm
labor during such period or periods of absence.
[(2) Nothing in this section shall excuse any homestead
entryman from making improvements or performing the cultivation
upon his entry required by law. The provisions of this section
shall apply only to persons whose applications have been
allowed or filed before October 17, 1940.
[Sec. 511. Any person under the age of twenty-one who
serves in the military service while this Act remains in force
shall be entitled to the same rights under the laws relating to
lands owned or controlled by the United States, including the
mining and mineral leasing laws, as those over twenty-one now
possess under such laws. Any requirements as to establishment
of residence within a limited time shall be suspended as to
entry by such person until six months after his discharge from
military service. Applications for entry may be verified before
any officer in the United States or any foreign country
authorized to administer oaths by the laws of the State or
Territory in which the land may be situated.
[Sec. 512. Citizens of the United States who serve with the
forces of any nation with which the United States may be allied
in the prosecution of any war in which the United States
engages while this Act remains in force shall be entitled to
the relief and benefits afforded by sections 501 to 511,
inclusive, if such service is similar to military service as
defined in this Act, and if they are honorably discharged and
resume United States citizenship or die in the service of the
allied forces or as a result of such service.
[Sec. 513. The collection from any person in the military
service of any tax on the income of such person, whether
falling due prior to or during his period of military service,
shall be deferred for a period extending not more than six
months after the termination of his period of military service
if such person's ability to pay such tax is materially impaired
by reason of such service. No interest on any amount of tax,
collection of which is deferred for any period under this
section, and no penalty for nonpayment of such amount during
such period, shall accrue for such period of deferment by
reason of such nonpayment. The running of any statute of
limitations against the collection of such tax by distraint or
otherwise shall be suspended for the period of military service
of any individual the collection of whose tax is deferred under
this section, and for an additional period of nine months
beginning with the day following the period of military
service. The provisions of this section shall not apply to the
income tax on employees imposed by section 1400 of the Federal
Insurance Contributions Act.
[Sec. 514. For the purposes of taxation in respect of any
person, or of his personal property, income, or gross income,
by any State, Territory, possession, or political subdivision
of any of the foregoing, or by the District of Columbia, such
person shall not be deemed to have lost a residence or domicile
in any State, Territory, possession, or political subdivision
of any of the foregoing, or in the District of Columbia, solely
by reason of being absent therefrom in compliance with military
or naval orders, or to have acquired a residence or domicile
in, or to have become resident in or a resident of, any other
State, Territory, possession, or political subdivision of any
of the foregoing, or the District of Columbia, while, and
solely by reason of being, so absent. For the purposes of
taxation in respect of the personal property, income, or gross
income of any such person by any State, Territory, possession,
or political subdivision of any of the foregoing, or the
District of Columbia, of which such person is not a resident or
in which he is not domiciled, compensation for military or
naval service shall not be deemed income for services performed
within, or from sources within, such State, Territory,
possession, political subdivision, or District, and personal
property shall not be deemed to be located or present in or to
have a situs for taxation in such State, Territory, possession,
or political subdivision, or District. Where the owner of
personal property is absent from his residence or domicile
solely by reason of compliance with military or naval orders,
this section applies with respect to personal property, or the
use thereof, within any tax jurisdiction other than such place
of residence or domicile, regardless of where the owner may be
serving in compliance with such orders. Nothing contained in
this section shall prevent taxation by any State, Territory,
possession, or political subdivision of any of the foregoing,
or the District of Columbia in respect of personal property
used in or arising from a trade or business, if it otherwise
has jurisdiction. This section shall be effective as of
September 8, 1939, except that it shall not require the
crediting or refunding of any tax paid prior to October 6,
1942.
[(2) When used in this section, (a) the term ``personal
property'' shall include tangible and intangible property
(including motor vehicles), and (b) the term ``taxation'' shall
include but not be limited to licenses, fees, or excises
imposed in respect to motor vehicles or the use thereof, but
only if a license, fee, or excise required by the State or
territory, possession, or District of Columbia of which the
person is a resident or in which the person is domiciled has
been paid.
[ARTICLE VI--ADMINISTRATIVE REMEDIES
[Sec. 600. Where in any proceeding to enforce a civil right
in any court it is made to appear to the satisfaction of the
court that any interest, property, or contract has since
October 17, 1940, been transferred or acquired with 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, the provisions of
this Act to the contrary notwithstanding.
[Sec. 601. (1) In any proceeding under this Act a
certificate signed by the Adjutant General of the Army as to
persons in the Army or in any branch of the United States
service while serving pursuant to law with the Army of the
United States, signed by the Chief of Navy Personnel as to
persons in the United States Navy or in any branch of the
United States service while serving pursuant to law with the
United States Navy, and signed by the Commandant, United States
Marine Corps, as to persons in the Marine Corps, or in any
other branch of the United States service while serving
pursuant to law with the Marine Corps, or signed by an officer
designated by any of them, respectively, for the purpose, shall
when produced by prima facie evidence as to any of the
following facts stated in such certificate:
That a person named has not been, or is, or has been in
military service; the time when and the place where such person
entered military service, his residence at that time, and the
rank, branch, and unit of such service that he entered, the
dates within which he was in military service, the monthly pay
received by such person at the date of issuing the certificate,
the time when and the place where such person died in or was
discharged from such service.
[(2) It shall be the duty of the foregoing officers to
furnish such certificate on application, and any such
certificate when purporting to be signed by any one of such
officers or by any person purporting upon the face of the
certificates to have been so authorized shall be prima facie
evidence of its contents and of the authority of the signer to
issue the same.
[(3) Where a person in military service has been reported
missing he shall be presumed to continue in the service until
accounted for, and no period herein limited which begins or
ends with the death of such person shall begin or end until the
death of such person is in fact reported to or found by the
Department of Defense, or any court, or board thereof, or until
such death is found by a court of competent jurisdiction. No
period herein limited which begins or ends with the death of
such person shall be extended hereby beyond a period of six
months after the time when this Act ceases to be in force.
[Sec. 602. Any interlocutory order made by any court under
the provisions of this Act may, upon the court's own motion or
otherwise, be revoked, modified, or extended by it upon such
notice to the parties affected as it may require.
[Sec. 603. If any provision of this Act, or the application
thereof to any person or circumstances, is held invalid, the
remainder of the Act, and the application of such provision to
other persons or circumstances, shall not be affected thereby.
[Sec. 604. This Act shall remain in force until May 15,
1945, except that should the United States be then engaged in a
war, this Act shall remain in force until such war is
terminated by a treaty of peace proclaimed by the President and
for six months thereafter: Provided further, That wherever
under any section or provision of this Act a proceeding,
remedy, privilege, stay, limitation, accounting, or other
transaction has been authorized or provided with respect to
military service performed prior to the date herein fixed for
the termination of this Act, such section or provision shall be
deemed to continue in full force and effect so long as may be
necessary to the exercise or enjoyment of such proceeding,
remedy, privilege, stay, limitation, accounting, or other
transaction.
[Sec. 605. The provisions of section 4 of the joint
resolution approved August 27, 1940 (Public Resolution Numbered
96, Seventy-sixth Congress), and the provisions of section 13
of the Selective Training and Service Act of 1940, shall not be
applicable with respect to any military service performed after
the date of enactment of this Act.
[ARTICLE VII--FURTHER RELIEF
[Sec. 700. (1) A person may, at any time during his period
of military service or within six months thereafter, apply to a
court for relief in respect of any obligation or liability
incurred by such person prior to his period of military service
or in respect of any tax or assessment whether falling due
prior to or during his period of military service. The court,
after appropriate notice and hearing, unless in its opinion the
ability of the applicant to comply with the terms of such
obligation or liability or to pay such tax or assessment has
not been materially affected by reason of his military service,
may grant the following relief:
[(a) In the case of an obligation payable under its
terms 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, a stay of the enforcement of such obligation
during the applicant's period of military service and,
from the date of termination of such period of military
service or from the date of application if made after
such service, for a period equal to the period of the
remaining life of the installment contract or other
instrument plus a period of time equal to the period of
military service of the applicant, or any part of such
combined period, subject to payment of the balance of
principal and accumulated interest due and unpaid at
the date of termination of the period of military
service or from the date of application, as the case
may be, in equal installments during such combined
period at such rate of interest on the unpaid balance
as is prescribed in such contract, or other instrument
evidencing the obligation, for installments paid when
due, and subject to such other terms as may be just.
[(b) In the case of any other obligation, liability,
tax, or assessment, a stay of the enforcement thereof
during the applicant's period of military service and,
from the date of termination of such period of military
service or from the date of application if made after
such service, for a period of time equal to the period
of military service of the applicant or any part of
such period, subject to payment of the balance of
principal and accumulated interest due and unpaid at
the date of termination of such period of military
service or the date of application, as the case may be,
in equal periodic installments during such extended
period at such rate of interest as may be prescribed
for such obligation, liability, tax, or assessment, if
paid when due, and subject to such other terms as may
be just.
[(2) When any court has granted a stay as provided in this
section no fine or penalty shall accrue during the period the
terms and conditions of such stay are complied with by reason
of failure to comply with the terms or conditions of the
obligations, liability, tax, or assessment in respect of which
such stay was granted.
[Sec. 701. (a) Notwithstanding any other provision of law,
a power of attorney which--
[(1) was duly executed by a person in the military
service who is in a missing status (as defined in
section 551(2) of title 37, United States Code);
[(2) designates that person's spouse, parent, or
other named relative as his attorney in fact for
certain specified, or all, purposes; and
[(3) expires by its terms after that person entered a
missing status, and before or after the effective date
of this section; shall be automatically extended for
the period that the person is in a missing status.
(Added P.L. 92-540, Sec. 504(2).)
[(b) No power of attorney executed after the effective date
of this section by a person in the military service may be
extended under subsection (a) if the document by its terms
clearly indicates that the power granted expires on the date
specified even though that person, after the date of execution
of the document, enters a missing status. (Added P.L. 92-540,
Sec. 504(2).)
[(c) This section applies to the following powers of
attorney executed by a person in military service or under a
call or order to report for military service (or who has been
advised by an official of the Department of Defense that such
person may receive such a call or order):
[(1) A power of attorney that is executed during the
Vietnam era (as defined in section 101(29) of title 38,
United States Code).
[(2) A power of attorney that expires by its terms
after July 31, 1990.
[Sec. 702. (a) This section applies to a person who--
[(1) after July 31, 1990, is ordered to active duty
(other than for training) pursuant to section 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 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 such person
during the period of the person's active duty
unless the premiums are paid for such coverage
for such period.
[(b)(1) Coverage of a person referred to in subsection (a)
by a professional liability insurance policy shall be suspended
in accordance with this subsection upon receipt of the written
request of such person by the insurance carrier.
[(2) A professional liability insurance carrier--
[(A) may not require that premiums be paid by or on
behalf of a person 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 person, apply such amount for the payment of any
premium becoming due upon the reinstatement of such
coverage.
[(3) 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 person that occurs during a
period of suspension of that person's professional liability
insurance under this subsection. For the purposes of the
preceding sentence, a claim based upon the failure of a
professional to make adequate provision for patients to be
cared for 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 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)(1) Professional liability insurance coverage suspended
in the case of any person pursuant to subsection (b) shall be
reinstated by the insurance carrier on the date on which that
person transmits to the insurance carrier a written request for
reinstatement.
[(2) The request of a person for reinstatement shall be
effective only if the person transmits the request to the
insurance carrier within 30 days after the date on which the
person is released from active duty. The insurance carrier
shall notify the person of the due date for payment of the
premium of such insurance. Such premium shall be paid by the
person within 30 days after the receipt of that notice.
[(3) The period for which professional liability insurance
coverage shall be reinstated for a person 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) An insurance carrier may not increase the amount of
the premium charged for professional liability insurance
coverage of any person 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, except to the
extent of any general increase in the premium amounts charged
by that carrier for the same professional liability coverage
for persons similarly covered by such insurance during the
period of the suspension.
[(e) This section does not--
[(1) require a suspension of professional liability
insurance coverage 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)(1) A civil or administrative action for damages on the
basis of the alleged professional negligence or other
professional liability of a person 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 that period;
[(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 person.
[(2) Whenever a civil or administrative action for damages
is stayed under paragraph (1) in the case of any person, the
action shall be deemed to have been filed on the date on which
the professional liability insurance coverage of such person is
reinstated under subsection (c).
[(g) 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) If a person 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 person under subsection (f)(1) shall terminate on
the date of the death of such person; 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 person in the
same manner and to the same extent as such carrier
would be liable if the person had died while covered by
such insurance but before the claim was filed.
[(i) In this section:
[(1) The term ``active duty'' has the meaning given
that term in section 101 of title 10, United States
Code.
[(2) The term ``profession'' includes occupation.
[(3) The term ``professional'' includes occupational.
[Sec. 703. (a) A person who, by reason of military service
described in section 702(a)(1), is entitled to the rights and
benefits of this Act shall also be entitled upon release from
such military service to reinstatement of any health insurance
which (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) An exclusion or a waiting period may not be imposed in
connection with reinstatement of health insurance coverage of a
health or physical condition of a person under subsection (a),
or a health or physical condition of any other person who is
covered by the insurance by reason of the coverage of such
person, if--
[(1) the condition arose before or during that
person's period of training or service in the Armed
Forces;
[(2) an exclusion or waiting period would not have
been imposed for the condition during a period of
coverage resulting from participation by such person in
the insurance; and
[(3) the condition of such person 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) Subsection (a) does not apply in the case of employer-
offered insurance benefits in which a person referred to in
such subsection is entitled to participate pursuant to the
provisions of chapter 43 of title 38, United States Code.
[Sec. 704. (a) For 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.
[(b) In this section, the term ``State'' includes a
territory or possession of the United States, a political
subdivision of a State, territory, or possession, and the
District of Columbia.]
* * * * * * *
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--
(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, on 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:
(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) 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 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
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 acknowledgment 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 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 States 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.
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.
(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.
* * * * * * *
----------
[SECTION 14 OF THE MILITARY SELECTIVE SERVICE ACT
[CIVIL RELIEF
[Sec. 14. Notwithstanding the provisions of section 604 of
the Act of October 17, 1940 (54 Stat. 1191), and the provisions
of section 4 of the Act of July 25, 1947 (Public Law 239,
Eightieth Congress), all of the provisions of the Soldiers' and
Sailors' Civil Relief Act of 1940, as amended, including
specifically article IV thereof, shall be applicable to all
persons in the Armed Forces of the United States, including all
persons inducted into the Armed Forces pursuant to this title
or the Public Health Service, until such time as the Soldiers'
and Sailors' Civil Relief Act of 1940, as amended, is repealed
or otherwise terminated by subsequent Act of the Congress:
Provided, That, with respect to persons inducted into the armed
forces while this title is in effect, wherever under any
section or provision of the Soldiers' and Sailors' Civil Relief
Act of 1940, as amended, a proceeding, remedy, privilege, stay,
limitation, accounting, or other transaction has been
authorized or provided with respect to military service
performed while such Act is in force, such section or provision
shall be deemed to continue in full force and effect so long as
may be necessary to the exercise or enjoyment of such
proceeding, remedy, privilege, stay, limitation, accounting, or
other transaction.]
----------
[CHAPTER 55 OF TITLE 5, UNITED STATES CODE
[CHAPTER 55--PAY ADMINISTRATION
* * * * * * *
[Subchapter II--Withholding Pay
* * * * * * *
SEC. 5520A. GARNISHMENT OF PAY.
(a) * * *
* * * * * * *
(k)(1) * * *
(2) Such regulations shall include provisions for--
(A) the involuntary allotment of the pay of a member
of the uniformed services for indebtedness owed a third
party as determined by the final judgment of a court of
competent jurisdiction, and as further determined by
competent military or executive authority, as
appropriate, to be in compliance with the procedural
requirements of the [Soldiers' and Sailors' Civil
Relief Act of 1940] Servicemembers Civil Relief Act (50
App. U.S.C. 501 et seq.); and
* * * * * * *
[Subchapter VII--Payments to Missing Employees
* * * * * * *
SEC. 5569. BENEFITS FOR CAPTIVES.
(a) * * *
* * * * * * *
(e)(1) Under regulations prescribed by the President, the
benefits [provided by the Soldiers' and Sailors' Civil Relief
Act of 1940, including the benefits provided by section 701 of
such Act but excluding the benefits provided by sections 104,
105, 106, 400 through 408, 501 through 512, and 514 of such
Act] 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,
shall be provided in the case of any individual who is a
captive.
(2) In applying such Act under this subsection--
(A) the term ``[person in the military service]
servicemember'' is deemed to include any such captive;
* * * * * * *
----------
SECTION 1408 OF TITLE 10, UNITED STATES CODE
SEC. 1408. PAYMENT OF RETIRED OR RETAINER PAY IN COMPLIANCE WITH COURT
ORDERS.
(a) * * *
(b) Effective Service of Process.--For the purposes of this
section--
(1) service of a court order is effective if--
(A) * * *
* * * * * * *
(D) the court order or other documents served
with the court order certify that the rights of
the member under the [Soldiers' and Sailors'
Civil Relief Act of 1940] Servicemembers Civil
Relief Act (50 U.S.C. App. 501 et seq.) were
observed; and
* * * * * * *
----------
SECTION 7654 OF THE INTERNAL REVENUE CODE OF 1986
SEC. 7654. COORDINATION OF UNITED STATES AND CERTAIN POSSESSION
INDIVIDUAL INCOME TAXES.
(a) * * *
* * * * * * *
(d) Federal Personnel.--In addition to the amount
determined under subsection (a), the United States shall pay to
each specified possession at such times and in such manner as
determined by the Secretary--
(1) the amount of the taxes deducted and withheld by
the United States under chapter 24 with respect to
compensation paid to members of the Armed Forces who
are stationed in such possession but who have no income
tax liability to such possession with respect to such
compensation by reason of the [Soldiers' and Sailors'
Civil Relief Act] Servicemembers Civil Relief Act (50
App. U.S.C. 501 et seq.), and
* * * * * * *
----------
SECTION 212 OF THE PUBLIC HEALTH SERVICE ACT
MILITARY BENEFITS
Sec. 212. (a) * * *
* * * * * * *
(e) Active service of commissioned officers of the Service
shall be deemed to be active military service in the Armed
Forces of the United States for the purposes of all rights,
privileges, immunities, and benefits now or hereafter provided
under the [Soldiers' and Sailors' Civil Relief Act of 1940]
Servicemembers Civil Relief Act (50 App. U.S.C. 501 et seq.).
* * * * * * *
----------
SECTION 8001 OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965
SEC. 8001. PURPOSE.
In order to fulfill the Federal responsibility to assist
with the provision of educational services to federally
connected children in a manner that promotes control by local
educational agencies with little or no Federal or State
involvement, because certain activities of the Federal
Government, such as activities to fulfill the responsibilities
of the Federal Government with respect to Indian tribes and
activities under [section 514 of the Soldiers' and Sailors'
Civil Relief Act of 1940 (50 U.S.C. App. 574)] section 511 of
the Servicemembers Civil Relief Act, place a financial burden
on the local educational agencies serving areas where such
activities are carried out, and to help such children meet
challenging State standards, it is the purpose of this title to
provide financial assistance to local educational agencies
that--
(1) * * *
* * * * * * *
----------
Section 262(a)(2) of the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (33 U.S.C. 3072)
SEC. 3072. ELIGIBILITY FOR VETERANS BENEFITS AND OTHER RIGHTS,
PRIVILEGES, IMMUNITIES AND BENEFITS UNDER CERTAIN
PROVISIONS OF LAW
(a) In General.--Active service officers of the
Administration shall be deemed to be active military service
for the purposes of all rights, privileges, immunities, and
benefits under the following:
* * * * * * *
(2) [The Soldiers' and Sailors' Civil Relief Act of
1940 (50 U.S.C. 501 et seq.),] The Servicemembers Civil
Relief Act.
* * * * * * *