[House Report 110-778]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-778
======================================================================
IMPROVING SCRA AND USERRA PROTECTIONS ACT OF 2008
_______
July 28, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Filner, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 6225]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred the
bill (H.R. 6225) to amend title 38, United States Code,
relating to equitable relief with respect to a State or private
employer, having considered the same, report favorably thereon
with amendments and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 5
Hearings......................................................... 7
Subcommittee Consideration....................................... 9
Committee Consideration.......................................... 9
Committee Votes.................................................. 9
Committee Oversight Findings..................................... 9
Statement of General Performance Goals and Objectives............ 10
New Budget Authority, Entitlement Authority, and Tax Expenditures 10
Earmarks and Tax and Tariff Benefits............................. 10
Committee Cost Estimate.......................................... 10
Congressional Budget Office Estimate............................. 10
Federal Mandates Statement....................................... 13
Advisory Committee Statement..................................... 13
Constitutional Authority Statement............................... 13
Applicability to Legislative Branch.............................. 13
Section-by-Section Analysis of the Legislation................... 14
Changes in Existing Law Made by the Bill, as Reported............ 14
Amendment
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving SCRA and USERRA
Protections Act of 2008''.
SEC. 2. EQUITY POWERS.
Section 4323(e) of title 38, United States Code, is amended by
striking ``may use'' and inserting ``shall use, in any case in which
the court determines it is appropriate,''.
SEC. 3. RELIEF FOR STUDENTS WHO ARE MEMBERS OF ARMED FORCES DURING
PERIOD OF MILITARY SERVICE.
(a) In General.--Title VII of the Servicemembers Civil Relief Act
(50 U.S.C. App. 591 et seq.) is amended by adding at the end the
following new section:
``SEC. 707. TUITION, REENROLLMENT, AND STUDENT LOAN RELIEF FOR
POSTSECONDARY STUDENTS CALLED TO MILITARY SERVICE.
``(a) Tuition and Reenrollment.--Whenever a servicemember is
called, activated, or ordered to military service and withdraws or
takes a leave of absence from an institution of higher education in
which the servicemember is enrolled, the institution shall--
``(1) provide a credit or refund to the servicemember the
tuition and fees paid by the servicemember (other than from the
proceeds of a grant or scholarship) for the portion of the
program of education for which the servicemember did not
receive academic credit after such withdrawal or leave; and
``(2) provide the servicemember an opportunity to reenroll
with the same educational and academic status in such program
of education that the servicemember had when activated for
military service.
``(b) Institution of Higher Education Defined.--In this section,
the term `institution of higher education' means a 2-year or 4-year
institution of higher education as defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002).''.
(b) Exemption of Student Debts From Creditor Protection Based on
Income Level.--Section 207(c) of such Act (50 U.S.C. App. 527(c)) is
amended by adding at the end the following new sentence: ``This
subsection shall not apply with respect to an obligation or liability
that is incurred by a servicemember who, at the time the servicemember
is called to military service, is a student enrolled within six months
of activation at an institution of higher education on a full-time
basis, as determined by that institution.''.
(c) Clerical Amendment.--The table of contents in section 1(b) of
such Act is amended by adding at the end the following new item:
``Sec. 707. Tuition, reenrollment, and student loan relief for
postsecondary students called to military service.''.
(d) Effective Date.--The amendments made by this section shall take
effect for periods of military service beginning after the date of the
enactment of this section.
SEC. 4. TERMINATION OR SUSPENSION BY SERVICEMEMBERS OF CERTAIN SERVICE
CONTRACTS ENTERED INTO BEFORE PERMANENT CHANGE OF
STATION OR DEPLOYMENT ORDERS.
(a) Termination.--Title III of the Servicemembers Civil Relief Act
(50 U.S.C. App. 531 et seq.) is amended--
(1) by redesignating section 308 as section 309; and
(2) by inserting after section 307 the following:
``SEC. 308. TERMINATION OR SUSPENSION OF SERVICE CONTRACTS.
``(a) Termination or Suspension by Servicemember.--A person in
military service who is party to or enters into a contract described in
subsection (c) may terminate or suspend, at the person's option, the
contract at any time after the date of the person's military orders, as
described in subsection (c).
``(b) Special Rules.--(1) A suspension under subsection (a) of a
contract by a person in military service shall continue for the length
of the person's deployment pursuant to the person's military orders.
``(2) A service provider under a contract suspended or
terminated under subsection (a) by a person in military service
may not impose a suspension fee or early termination fee in
connection with the suspension or termination of the contract,
other than a nominal fee for the suspension; except that the
service provider may impose a reasonable fee for any equipment
remaining on the premises of the person in military service
during the period of the suspension. The person in military
service may defer, without penalty, payment of such a nominal
fee or reasonable fee for the length of the person's deployment
pursuant to the person's military orders.
``(3) In any case in which the contract being suspended under
subsection (a) is for cellular telephone service or telephone
exchange service, the person in military service, after the
date on which the suspension of the contract ends, may keep, to
the extent practicable and in accordance with all applicable
laws and regulations, the same telephone number the person had
before the person suspended the contract.
``(c) Covered Contracts.--This section applies to a contract for
cellular telephone service, telephone exchange service, multichannel
video programming service, Internet access service, water, electricity,
oil, gas, or other utility if the person enters into the contract and
thereafter receives military orders--
``(1) to deploy with a military unit, or as an individual, in
support of a contingency operation for a period of not less
than 90 days; or
``(2) for a change of permanent station to a location that
does not support the contract.
``(d) Manner of Termination or Suspension.--
``(1) In general.--Termination or suspension of a contract
under subsection (a) is made by delivery by the person in
military service of written notice of such termination or
suspension and a copy of the servicemember's military orders to
the other party to the contract (or to that party's grantee or
agent).
``(2) Nature of notice.--Delivery of notice under paragraph
(1) may be accomplished--
``(A) by hand delivery;
``(B) by private business carrier;
``(C) by facsimile; or
``(D) by placing the written notice and a copy of the
servicemember's military orders in an envelope with
sufficient postage and with return receipt requested,
and addressed as designated by the party to be notified
(or that party's grantee or agent), and depositing the
envelope in the United States mails.
``(e) Date of Contract Termination or Suspension.--Termination or
suspension of a service contract under subsection (a) is effective as
of the date on which the notice under subsection (d) is delivered.
``(f) Other Obligations and Liabilities.--The service provider
under the contract may not impose an early termination or suspension
charge, but any tax or any other obligation or liability of the person
in military service that, in accordance with the terms of the contract,
is due and unpaid or unperformed at the time of termination or
suspension of the contract shall be paid or performed by the person in
military service.
``(g) Fees Paid in Advance.--A fee or amount paid in advance for a
period after the effective date of the termination of the contract
shall be refunded to the person in military service by the other party
(or that party's grantee or agent) within 60 days of the effective date
of the termination of the contract.
``(h) Relief to Other Party.--Upon application by the other party
to the contract to a court before the termination date provided in the
written notice, relief granted by this section to a person in military
service may be modified as justice and equity require.
``(i) Penalties.--
``(1) Misdemeanor.--Whoever knowingly violates or attempts to
violate this section shall be fined not more than $5,000 in the
case of an individual or $10,000 in the case of an
organization.
``(2) Preservation.--The remedy and rights provided under
this section are in addition to and do not preclude any remedy
for wrongful conversion otherwise available under law to the
person claiming relief under this section, including any award
for consequential or punitive damages.
``(j) Equitable Relief.--
``(1) In general.--In addition to any other remedy available
under law, if a person in military service has reason to
believe that another party to a contract has violated or is
violating this section, the person in military service may--
``(A) bring an action to enjoin the violation in any
appropriate United States district court or in any
other court of competent jurisdiction; or
``(B) bring an action in any appropriate United
States district court or in any other court of
competent jurisdiction to recover damages equal to
three times the amount for which the other party is
liable to the person in military service under this
section.
``(2) Attorney fees.--If a person in military service is
awarded damages under an action described under paragraph (1),
the person shall be awarded, in addition, the costs of the
action and reasonable attorney fees, as determined by the
court.
``(k) Definitions.--For the purposes of this section, the following
definitions apply:
``(1) Multichannel video programming service.--The term
`multichannel video programming service' means video
programming service provided by a multichannel video
programming distributor, as such term is defined in section
602(13) of the Communications Act of 1934 (47 U.S.C. 522(13)).
``(2) Internet access service.--The term `Internet access
service' has the meaning given that term under section
231(e)(4) of the Communications Act of 1934 (47 U.S.C.
231(e)(4)).
``(3) Cellular telephone service.--The term `cellular
telephone service' means commercial mobile service, as that
term is defined in section 332(d) of the Communications Act of
1934 (47 U.S.C. 332(d)).
``(4) Telephone exchange service.--The term `telephone
exchange service' has the meaning given that term under section
3 of the Communications Act of 1934 (47 U.S.C. 153).''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
such Act is amended by striking the item relating to section 308 and
inserting the following new items:
``Sec. 308. Termination or suspension of service contracts.
``Sec. 309. Extension of protections to dependents.''.
SEC. 5. PENALTIES FOR VIOLATION OF INTEREST RATE LIMITATION UNDER
SERVICEMEMBERS CIVIL RELIEF ACT.
Section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App.
527) is amended by adding at the end the following new subsections:
``(e) Penalty.--Whoever knowingly violates subsection (a) shall be
fined not more than $5,000 in the case of an individual or $10,000 in
the case of an organization.
``(f) Rights of Servicemembers.--
``(1) Equitable relief.--
``(A) In general.--In addition to any other remedies
as are provided under Federal or State law, if a
servicemember has reason to believe that a creditor has
violated or is violating this section, the
servicemember may--
``(i) bring an action to enjoin such
violation in any appropriate United States
district court or in any other court of
competent jurisdiction; and
``(ii) bring an action to recover damages
equal to three times the amount of the interest
charged in violation of this section (plus
interest) for which the creditor is liable to
the servicemember under this section as a
result of the violation.
``(B) Determination of number of violations.--In
determining the number of violations by a creditor for
which a penalty is imposed under subsection (e) or
subparagraph (A), the court shall count as a single
violation each obligation or liability of a
servicemember with respect to which--
``(i) the servicemember properly provided to
the creditor written notice and a copy of the
military orders calling the servicemember to
military service and any orders further
extending military service under subsection
(b); and
``(ii) the creditor failed to treat in
accordance with subsection (a).
``(2) Attorney fees.--If a servicemember is awarded damages
under an action described under paragraph (1), the
servicemember shall be awarded, in addition, the costs of the
action and reasonable attorney fees, as determined by the
court.
``(g) Preservation of Other Remedies.--The rights and remedies
provided under subsections (e) and (f) are in addition to and do not
preclude any other remedy available under law to a person claiming
relief under this section, including any award for consequential or
punitive damages.''.
SEC. 6. GUARANTEE OF RESIDENCY FOR SPOUSES OF MILITARY PERSONNEL.
(a) Guarantee of Residency.--Section 705 of the Servicemembers
Civil Relief Act (50 U.S.C. App. 595) is amended--
(1) by striking ``For'' and inserting ``(a) For''; and
(2) by adding at the end the following new subsection:
``(b) 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
because the person is accompanying the person's spouse who is absent
from that same 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) Clerical Amendments.--
(1) The heading for such section is amended to read as
follows:
``SEC. 705. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL AND SPOUSES
OF MILITARY PERSONNEL.''.
(2) The item relating to such section in the table of
contents in section 1(b) of such Act is amended to read as
follows:
``Sec. 705. Guarantee of residency for military personnel and spouses
of military personnel.''.
SEC. 7. RESIDENCE FOR TAX PURPOSES.
Section 511(a) of the Servicemembers Civil Relief Act (50 U.S.C.
App. 571(a)) is amended--
(1) by striking ``A servicemember'' and inserting the following:
``(1) Servicemember.--A servicemember''; and
(2) by adding at the end the following:
``(2) Spouse of servicemember.--A spouse of 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 spouse by reason of being absent or
present in any tax jurisdiction of the United States solely to
be with the servicemember in compliance with the
servicemember's military orders if the residence or domicile,
as the case may be, is the same for the servicemember and the
spouse.''.
Amend the title so as to read:
A bill to amend title 38, United States Code, relating to
equitable relief with respect to a State or private employer,
and for other purposes.
Purpose and Summary
H.R. 6225 was introduced by Representative Stephanie
Herseth Sandlin of South Dakota, the Chairwoman of the
Subcommittee on Economic Opportunity of the Committee on
Veterans' Affairs, on June 10, 2008. This legislation, as
amended, includes provisions from H.R. 2910, introduced by
Representative Susan Davis of California; H.R. 3298, introduced
by Representative Patrick Murphy of Pennsylvania; and, H.R.
6070 introduced by Representative John R. Carter of Texas.
H.R. 6225, as amended, would encourage courts, when
appropriate and at the discretion of the court, to use equity
powers in suits involving the Uniformed Services Employment and
Reemployment Rights Act (USERRA) and amends the Servicemembers
Civil Relief Act (SCRA) to provide additional protections to
servicemembers enrolled in institutes of higher education; to
servicemembers relating to certain service contracts; and to
spouses of servicemembers regarding the state of domicile for
tax and voting purposes.
Background and Need for Legislation
EQUITY POWERS
On February 13, 2008, the Subcommittee on Economic
Opportunity conducted a hearing titled ``Review of Expiring
Programs.'' This hearing provided the Subcommittee the
opportunity to entertain recommendations on ways to improve
programs and expand veterans' rights. One such recommendation
came from Mr. Matthew B. Tully, founding partner of Tully
Rinckey PLLC, who is a USERRA specialist.
Mr. Tully described to the Subcommittee a situation where a
servicemember sought injunctive relief from his employer but
the court denied his request. Mr. Tully recommended that the
Subcommittee consider amending USERRA to reiterate that a court
may utilize, when appropriate, its powers of equitable relief
under USERRA. The Committee agrees that it is important to
statutorily underline the equitable relief powers that courts
already possess, and has included language specifically
highlighting a court's ability to grant equitable relief where
appropriate.
RELIEF FOR STUDENTS WHO ARE MEMBERS OF THE ARMED FORCES DURING PERIOD
OF MILITARY SERVICE
Since the attacks that occurred on September 11, 2001, many
of our servicemembers have experienced multiple deployments in
support of missions throughout the globe to include operations
in Iraq and Afghanistan. Many of these men and women have been
members of the Reserve Forces whose military commitment
required them to interrupt their college education. Students
who serve in the military face unique hardships when colleges
and universities do not refund tuition and fees to students
when they are activated during the academic year.
In addition to situations where colleges and universities
do not refund tuition and fees, there have been instances where
servicemembers have received failing grades after leaving
school for required military service in the middle of the
quarter or semester--even after notifying the school
administration of their military commitment. Servicemembers
also face hardships when it comes to remaining current with
their student loans. Activated military personnel have been
known to receive collection notices for student loans while
serving in combat zones.
H.R. 6225 adds provisions to the SCRA requiring colleges
and universities to refund servicemembers' tuition and fees for
any unearned credit for the semester or quarter when they are
activated for duty. The legislation would also require schools
to re-admit student veterans after completion of their active
duty at their previous academic status.
Under current law, servicemembers, while deployed, are
generally not required to pay more than a six percent interest
rate on all forms of debt under the SCRA. However, this
interest rate cap has not been applied to student loans. H.R.
6225 specifically adds student loan obligations to this
interest rate cap.
TERMINATION OR SUSPENSION BY SERVICEMEMBERS OF CERTAIN SERVICE
CONTRACTS
There is a growing problem that many deployed
servicemembers are currently facing in having their credit
damaged during their deployments over issues concerning
contracts with cellular telephone or internet service
providers. The Committee has also learned that some financial
institutions have been recalcitrant or unwilling to reduce
servicemembers' interest rates during their deployments on
certain types of loans such as mortgages, even though these
creditors are already required to do so under current law.
H.R. 6225 would extend SCRA protections to enable
servicemembers with deployment orders to more easily terminate
or suspend service contracts without fee or penalty for such
services as cellular phones, utilities, cable television, or
internet access. These protections currently exist for
residential and automobile leases.
Unfortunately, some families of servicemembers have been
faced with repeated harassment by collection agencies because
of these situations. Currently, creditors who knowingly or
negligently fail to reduce interest rates upon notification
from a servicemember with deployment orders face no specific
penalty. Therefore, this measure would add a penalty provision
to the SCRA that would apply to those creditors who refuse to
reduce interest rates as currently required under the SCRA.
GUARANTEE OF RESIDENCY FOR SPOUSES OF MILITARY PERSONNEL
The SCRA provides basic civil relief to our men and women
in the Armed Services in exchange for their voluntary service.
These protections include an option to maintain a single state
of domicile regardless of where their military orders may send
them. This enables servicemembers to simplify their state
income tax requirements, maintain a driver's license in a
single state, and continue to vote for the elected officials
from their hometown.
However, while servicemembers receive this important
protection, the SCRA does not currently offer these same
protections to the spouse of the servicemember. Although the
servicemember is provided the stability of a single state of
domicile over the course of his or her career, with every move
or deployment the spouse must change voter registration, obtain
a new driver's license, and pay income tax to a state where
they never intended to live.
H.R. 6225 would enable military spouses to claim the same
state of domicile as the servicemember for the purposes of
state income and property taxes as well as voter registration.
Hearings
On January 17, 2008, the Subcommittee on Economic
Opportunity held a hearing titled the ``Review of Pending
Montgomery G.I. Bill Legislation.'' The following witnesses
testified: Colonel Robert F. Norton, USA (Ret.), Deputy
Director, Government Relations, Military Officers Association
of America; Mr. Patrick Campbell, Legislative Director, Iraq
and Afghanistan Veterans of America; Mr. Eric A. Hilleman,
Deputy Director, National Legislative Service, Veterans of
Foreign Wars of the United States; Mr. Ronald F. Chamrin,
Assistant Director, Economic Commission, The American Legion;
Mr. Thomas L. Bush, Acting Deputy Assistant Secretary of
Defense for Reserve Affairs, U.S. Department of Defense; Dr.
Curtis L. Gilroy, Director for Accession Policy, Office of the
Under Secretary of Defense for Personnel and Readiness, U.S.
Department of Defense; and, Mr. Keith M. Wilson, Director of
Education Service for the Veterans Benefits Administration,
U.S. Department of Veterans Affairs. Those submitting
statements for the record included: The Honorable Rick Larsen
of Washington; The Honorable Jim Matheson of Utah; The
Honorable Robert C. ``Bobby'' Scott of Virginia; the Paralyzed
Veterans of America; and, Mr. Jim Pace, President, Washington
State Council, Vietnam Veterans of America.
On April 16, 2008, the Subcommittee on Economic Opportunity
held a hearing on a number of bills introduced in the 110th
Congress, including H.R. 3298. The following witnesses
testified: The Honorable Bob Filner of California; The
Honorable Steve Buyer of Indiana; The Honorable Cliff Stearns
of Florida; The Honorable Ciro D. Rodriguez of Texas; The
Honorable John A. Yarmuth of Kentucky; The Honorable Robin
Hayes of North Carolina; The Honorable Artur Davis of Alabama;
The Honorable Patrick J. Murphy of Pennsylvania; Mr. Ronald F.
Chamrin, Assistant Director of the Economic Commission, The
American Legion; Mr. Justin Brown, Legislative Associate of
National Legislative Service, Veterans of Foreign Wars of the
United States; Mr. Richard Daley, Associate Legislative
Director, Paralyzed Veterans of America; Mr. Patrick M.
Campbell, Legislative Director, Iraq and Afghanistan Veterans
of America; Colonel Robert F. Norton, USA (Ret.), Deputy
Director of Government Relations, Military Officers Association
of America; The Honorable Charles S. Ciccolella, Assistant
Secretary for Veterans' Employment and Training Service, U.S.
Department of Labor; Mr. Thomas L. Bush, Acting Deputy
Assistant Secretary of Defense for Reserve Affairs, U.S.
Department of Defense; Dr. Curtis L. Gilroy, Director for
Accession Policy, Office of the Under Secretary of Defense for
Personnel and Readiness, U.S. Department of Defense; and, Mr.
Keith Pedigo, Associate Deputy Under Secretary for Policy and
Program Management for the Veterans Benefits Administration,
U.S. Department of Veterans Affairs, accompanied by Mr. John
Brizzi, Staff Attorney of the Office of General Counsel, U.S.
Department of Veterans Affairs. Those submitting statements for
the record included: Mr. Jot D. Carpenter, Jr., Vice President
of Government Affairs, CTIA--The Wireless Association; Mr.
Kerry Baker, Associate National Legislative Director, Disabled
American Veterans; and, Mr. Kyle McSlarrow, President and Chief
Executive Officer, National Cable and Telecommunications
Association.
On June 19, 2008, the Subcommittee on Economic Opportunity
held a legislative hearing on a number of bills introduced in
the 110th Congress, including H.R. 6070 and H.R. 6225. The
following witnesses testified: The Honorable Bob Filner of
California; The Honorable Dennis A. Cardoza of California; The
Honorable Zoe Lofgren of California; The Honorable John R.
Carter of Texas; The Honorable John Boozman of Arkansas; The
Honorable Stephanie Herseth Sandlin of South Dakota; The
Honorable Peter Welch of Vermont; Mr. Charles Huebner, Chief of
Paralympics, United States Olympic Committee; Mr. Bobby
Franklin, Executive Vice President, CTIA The Wireless
Association; Mr. Kerry Baker, Associate National Legislative
Director, Disabled American Veterans; Mr. Joseph C. Sharpe,
Jr., Deputy Director, National Economic Commission, The
American Legion; Mr. Richard Daley, Associate Legislation
Director, Paralyzed Veterans of America; Mr. Rick Weidman,
Executive Director for Policy and Government Affairs, Vietnam
Veterans of America; and Mr. Keith Pedigo, Associate Deputy
Under Secretary for Policy and Program Management for the
Veterans Benefits Administration, U.S. Department of Veterans
Affairs, accompanied by Ms. Diane Hartmann, Director, National
Programs and Special Events, U.S. Department of Veterans
Affairs. Those submitting statements for the record included:
The Honorable Michael L. Dominguez, Principal Deputy Under
Secretary of Defense (Personnel and Readiness), U.S. Department
of Defense; The Honorable Charles S. Ciccolella, Assistant
Secretary for Veterans' Employment and Training, U.S.
Department of Labor; and Ms. Rebecca Noah Poynter, Owner,
OnPoynt Communications, Dallas, Texas.
Subcommittee Consideration
On June 26, 2008, the Subcommittee on Economic Opportunity
met in open markup session and ordered favorably forwarded to
the full Committee H.R. 6225; H.R. 6070; H.R. 2910, as amended;
and, H.R. 3298, as amended, by voice vote. During consideration
of H.R. 2910 the following amendment was considered: An
amendment in the nature of a substitute by Mr. Hall of New York
to remove section 3 as duplicative of current law, was agreed
to by voice vote.
During consideration of H.R. 3298 the following amendment
was considered: An amendment in the nature of a substitute by
Mr. Hall of New York to include technical terminology for the
various affected industries as established in the
Communications Act of 1944, was agreed to by voice vote.
This amendment also permits a servicemember to pay a
nominal fee to keep the account active and a reasonable fee for
any equipment that the servicemember retains during suspension.
It also stipulates that, to the extent practicable, the
servicemember should be able to retain his or her phone number.
Furthermore, the amendment includes a penalty for whoever
knowingly violates the law and shall be fined $5,000 in the
case of an individual or $10,000 in the case of an
organization.
Committee Consideration
On July 16, 2008, the full Committee met in an open markup
session, a quorum being present, and ordered H.R. 6225, as
amended, reported favorably to the House of Representatives, by
voice vote. During consideration of the bill the following
amendment was considered: An amendment in the nature of a
substitute by Ms. Herseth Sandlin of South Dakota to
incorporate language of H.R. 6070, and amended language of H.R.
2910 and H.R. 3298, was agreed to by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
There were no record votes taken on amendments or in connection
with ordering H.R. 6225 reported to the House. A motion by Mr.
Buyer of Indiana to order H.R. 6225, as amended, reported
favorably to the House of Representatives was agreed to by
voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 6225 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the
House of Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
6255 prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 6255 provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 24, 2008.
Hon. Bob Filner,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6225, the
Improving SCRA and USERRA Protections Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Neil Hood,
who can be reached at 225-3220.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 6225--Improving SCRA and USERRA Protections Act of 2008
Summary: H.R. 6225 would require courts to grant injunctive
relief, when appropriate, to veterans filing claims against
state or private employers under the Uniformed Services
Employment and Reemployment Rights Act (USERRA). The bill also
would apply to student loans the current 6 percent cap on
interest on outstanding debt obligations of people serving in
the military. CBO estimates that implementing the bill would
not have a significant effect on the federal budget.
H.R. 6225 would impose several intergovernmental mandates
as defined in the Unfunded Mandates Reform Act (UMRA). The bill
would require public institutions of higher education to refund
tuition and fees to servicemembers if they must leave school
because of military service commitments. The bill also would
prohibit governmental entities from charging fees to some
servicemembers for terminating utility contracts, and it would
prohibit state and local governments from imposing certain
taxes on some spouses of servicemembers. In aggregate, CBO
estimates that the costs of the intergovernmental mandates in
the bill would total between $40 million and $50 million in
2008 and similar amounts annually thereafter; such costs would
not exceed the threshold established in UMRA ($68 million in
2008, adjusted annually for inflation).
Section 4 of UMRA excludes from the application of that act
any legislative provisions that enforce the constitutional
rights of individuals. CBO has determined that section 6 of
H.R. 6225 would fall within that exclusion because it would
protect individuals' voting rights. Therefore, CBO has not
reviewed that section of the bill for mandates.
The bill contains provisions related to education expenses
(in section 3) and service contract fees (in section 4) for
certain members of the military that would impose private-
sector mandates as defined in UMRA. CBO estimates that the cost
of complying with those mandates would likely be below the
annual threshold established in that act ($136 million in 2008,
adjusted annually for inflation).
Basis of estimate: H.R. 6225 would require courts to grant
injunctive relief, when appropriate, to veterans filing claims
against state or private employers under USERRA. Servicemembers
can file USERRA claims if they believe they have been
terminated from their job or lost certain promotions or
benefits as a result of their military obligations. Information
from the Department of Justice (DOJ) indicates that in 2006
four complaints were filed in federal district courts on behalf
of USERRA claimants. Because CBO expects that the bill would
not appreciably change the workload of federal court personnel
and DOJ, we estimate implementing this provision would have no
significant effect on the federal budget.
The bill also would extend to student loans the current 6
percent cap on interest on outstanding debt obligations of
people serving in the military. This cap would only be in
effect while the person is on active duty and only for debt
accrued prior to active duty. CBO estimates that this change
would have a minimal cost for several reasons. First, many
current borrowers have loans with interest rates below the cap.
Second, many of those loans already carry a deferment from
repayment for those serving in areas of conflict. Finally, the
statutory payments to private lenders would not be altered by
this proposed change.
Estimated impact on State, local, and tribal governments:
H.R. 6225 contains intergovernmental mandates as defined in
UMRA. CBO estimates that the costs of complying with those
mandates would total between $40 million and $50 million in
2008 and similar amounts annually thereafter. Such costs would
not exceed the threshold established in UMRA ($68 million in
2008, adjusted annually for inflation).
The bill would require public institutions of higher
education to refund or credit tuition and fees paid by
servicemembers who have to leave school because of military
service commitments. In addition, those institutions would be
required to provide servicemembers who discontinued an
educational program because of military service an opportunity
to reenroll with the same educational and academic status held
prior to their military service. Information from state and
higher education officials indicates that public institutions
of higher education in approximately half the states already
extend similar benefits to servicemembers, either because of
state law or institutional policies. CBO estimates that those
institutions not extending such benefits would incur costs of
between $40 million and $50 million in 2008, and that the total
costs would remain under the threshold established in UMRA
through 2012.
The bill would impose additional intergovernmental mandates
by limiting the ability of state and local governments to
collect taxes and levy fees on some servicemembers and their
spouses. The bill would prohibit public utilities from charging
early termination fees to servicemembers and would require them
to refund fees or payments made in advance for services not
rendered. The bill also would limit the ability of a state or
local government to levy certain taxes on the personal property
or income of a spouse of a servicemember if the spouse moves
into the government's jurisdiction to be with the
servicemember. These requirements would be intergovernmental
mandates as defined in UMRA, but CBO estimates that the costs,
if any, would be small.
Section 4 of UMRA excludes from the application of that act
any legislative provisions that enforce the constitutional
rights of individuals. CBO has determined that section 6 of
H.R. 6225 would fall within that exclusion because it would
protect individuals' voting rights. Therefore, CBO has not
reviewed this section of the bill for mandates.
Estimated impact on the private sector: The bill contains
private-sector mandates as defined in UMRA, but CBO estimates
that the total cost of the mandates would likely be below the
annual threshold established in UMRA ($136 million in 2008,
adjusted annually for inflation). Section 3 would require
institutions of higher education to refund tuition and fees
paid by students called to military service, reflecting the
portion of the education program for which servicemembers did
not receive academic credit. That section also would limit the
interest rate on student loans to 6 percent per year for
certain servicemembers during their period of military service,
regardless of their ability to pay.
Section 4 of the bill would prevent cellular telephone,
Internet access, utility, and other service providers from
imposing suspension and early termination fees on certain
servicemembers, except for a nominal fee for the suspension and
a reasonable fee for any equipment remaining on such
servicemembers' premises. The waiver would be applicable for
those servicemembers who are deployed to contingency operations
or are assigned to permanent stations in locations that do not
support the service contracts.
CBO expects that the number of servicemembers called to
military service while enrolled at an institution of higher
education would be small. Based on estimates of total student
loan debt for servicemembers entering the military, CBO also
expects that the annual costs to lenders resulting from a
reduction in the maximum allowable interest rate for those
loans would be small. Finally, CBO estimates that the costs of
the mandate on service providers would be well below the annual
threshold, particularly since all major cellular phone carriers
currently waive cancellation fees for military personnel going
abroad and for customers moving to areas with no coverage.
Previous CBO estimate: On August 28, 2007, CBO transmitted
a cost estimate for S. 1315, the Veterans' Benefits Enhancement
Act of 2007, as ordered reported by the Senate Committee on
Veterans' Affairs on June 27, 2007. Section 804 of that bill is
similar to section 4 of H.R. 6225. The earlier bill, however,
included provisions only for the suspension or termination of
cellular phone contracts. CBO determined that S. 1315 contained
a private-sector mandate only on cellular telephone service
contractors, and the costs of that mandate would likely be
below the threshold established in UMRA.
Estimate prepared by: Federal Spending: Veterans' Affairs--
Neil Hood. Injunctive Relief--Leigh Angres. Student Loans--
Deborah Kalcevic. Impact on State, Local, and Tribal
Governments: Elizabeth Cove, Neil Hood, and Lisa Ramirez-
Branum. Impact on the Private Sector: Daniel Frisk.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 6225 prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
6225.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for H.R. 6225 is provided by Article
I, section 8 of the Constitution of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section would provide the short title of H.R. 6225 as
the ``Improving SCRA and USERRA Protections Act of 2008.''
Section 2. Equity powers
This section would encourage courts to utilize equity
powers when deemed appropriate in USERRA cases.
Section 3. Relief for students who are members of the Armed Forces
during period of military service
This section would require colleges and universities to
refund a student's tuition and fees for unearned credit for the
semester or quarter when they are activated for duty and
requires colleges and universities to allow students to reenter
the institution with the identical educational and academic
status they had when they activated for duty. In addition, this
section would extend the current interest rate cap in the SCRA
to student loan obligations.
Section 4. Termination or suspension by servicemembers of certain
service contracts entered into before permanent change of
station or deployment orders
This section would extend SCRA protections to enable
servicemembers with deployment orders to more easily terminate
or suspend service contracts without fee or penalty for such
services as cellular phones, utilities, cable television, or
internet access, protections that currently exist for
residential and automobile leases.
Section 5. Penalties for violation of interest rate limitation under
SCRA
This section would add a penalty provision to the SCRA that
would apply to those creditors who refuse to reduce interest
rates as currently required under the SCRA.
Section 6. Guarantee of residency for spouses of military personnel
This section would allow a military spouse to vote in the
same location of Federal, state and local elections as the
servicemember.
Section 7. Residency for tax purposes
This section would allow the spouse of a servicemember to
pay taxes in the same state as the servicemember.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 43--EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE
UNIFORMED SERVICES
* * * * * * *
SUBCHAPTER III--PROCEDURES FOR ASSISTANCE, ENFORCEMENT, AND
INVESTIGATION
* * * * * * *
Sec. 4323. Enforcement of rights with respect to a State or private
employer
(a) * * *
* * * * * * *
(e) Equity Powers.--The court [may use] shall use, in any
case in which the court determines it is appropriate, its full
equity powers, including temporary or permanent injunctions,
temporary restraining orders, and contempt orders, to vindicate
fully the rights or benefits of persons under this chapter.
* * * * * * *
----------
SERVICEMEMBERS CIVIL RELIEF ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents of this Act is
as follows:
* * * * * * *
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
* * * * * * *
[Sec. 308. Extension of protections to dependents.]
Sec. 308. Termination or suspension of service contracts.
Sec. 309. Extension of protections to dependents.
* * * * * * *
TITLE VII--FURTHER RELIEF
* * * * * * *
[Sec. 705. Guarantee of residency for military personnel.]
Sec. 705. Guarantee of residency for military personnel and spouses of
military personnel.
* * * * * * *
Sec. 707. Tuition, reenrollment, and student loan relief for
postsecondary students called to military service.
* * * * * * *
TITLE II--GENERAL RELIEF
* * * * * * *
SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE MILITARY
SERVICE.
(a) * * *
* * * * * * *
(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. This subsection shall not
apply with respect to an obligation or liability that is
incurred by a servicemember who, at the time the servicemember
is called to military service, is a student enrolled within six
months of activation at an institution of higher education on a
full-time basis, as determined by that institution.
* * * * * * *
(e) Penalty.--Whoever knowingly violates subsection (a) shall
be fined not more than $5,000 in the case of an individual or
$10,000 in the case of an organization.
(f) Rights of Servicemembers.--
(1) Equitable relief.--
(A) In general.--In addition to any other
remedies as are provided under Federal or State
law, if a servicemember has reason to believe
that a creditor has violated or is violating
this section, the servicemember may--
(i) bring an action to enjoin such
violation in any appropriate United
States district court or in any other
court of competent jurisdiction; and
(ii) bring an action to recover
damages equal to three times the amount
of the interest charged in violation of
this section (plus interest) for which
the creditor is liable to the
servicemember under this section as a
result of the violation.
(B) Determination of number of violations.--
In determining the number of violations by a
creditor for which a penalty is imposed under
subsection (e) or subparagraph (A), the court
shall count as a single violation each
obligation or liability of a servicemember with
respect to which--
(i) the servicemember properly
provided to the creditor written notice
and a copy of the military orders
calling the servicemember to military
service and any orders further
extending military service under
subsection (b); and
(ii) the creditor failed to treat in
accordance with subsection (a).
(2) Attorney fees.--If a servicemember is awarded
damages under an action described under paragraph (1),
the servicemember shall be awarded, in addition, the
costs of the action and reasonable attorney fees, as
determined by the court.
(g) Preservation of Other Remedies.--The rights and remedies
provided under subsections (e) and (f) are in addition to and
do not preclude any other remedy available under law to a
person claiming relief under this section, including any award
for consequential or punitive damages.
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
* * * * * * *
SEC. 308. TERMINATION OR SUSPENSION OF SERVICE CONTRACTS.
(a) Termination or Suspension by Servicemember.--A person in
military service who is party to or enters into a contract
described in subsection (c) may terminate or suspend, at the
person's option, the contract at any time after the date of the
person's military orders, as described in subsection (c).
(b) Special Rules.--(1) A suspension under subsection (a) of
a contract by a person in military service shall continue for
the length of the person's deployment pursuant to the person's
military orders.
(2) A service provider under a contract suspended or
terminated under subsection (a) by a person in military service
may not impose a suspension fee or early termination fee in
connection with the suspension or termination of the contract,
other than a nominal fee for the suspension; except that the
service provider may impose a reasonable fee for any equipment
remaining on the premises of the person in military service
during the period of the suspension. The person in military
service may defer, without penalty, payment of such a nominal
fee or reasonable fee for the length of the person's deployment
pursuant to the person's military orders.
(3) In any case in which the contract being suspended under
subsection (a) is for cellular telephone service or telephone
exchange service, the person in military service, after the
date on which the suspension of the contract ends, may keep, to
the extent practicable and in accordance with all applicable
laws and regulations, the same telephone number the person had
before the person suspended the contract.
(c) Covered Contracts.--This section applies to a contract
for cellular telephone service, telephone exchange service,
multichannel video programming service, Internet access
service, water, electricity, oil, gas, or other utility if the
person enters into the contract and thereafter receives
military orders--
(1) to deploy with a military unit, or as an
individual, in support of a contingency operation for a
period of not less than 90 days; or
(2) for a change of permanent station to a location
that does not support the contract.
(d) Manner of Termination or Suspension.--
(1) In general.--Termination or suspension of a
contract under subsection (a) is made by delivery by
the person in military service of written notice of
such termination or suspension and a copy of the
servicemember's military orders to the other party to
the contract (or to that party's grantee or agent).
(2) Nature of notice.--Delivery of notice under
paragraph (1) may be accomplished--
(A) by hand delivery;
(B) by private business carrier;
(C) by facsimile; or
(D) by placing the written notice and a copy
of the servicemember's military orders in an
envelope with sufficient postage and with
return receipt requested, and addressed as
designated by the party to be notified (or that
party's grantee or agent), and depositing the
envelope in the United States mails.
(e) Date of Contract Termination or Suspension.--Termination
or suspension of a service contract under subsection (a) is
effective as of the date on which the notice under subsection
(d) is delivered.
(f) Other Obligations and Liabilities.--The service provider
under the contract may not impose an early termination or
suspension charge, but any tax or any other obligation or
liability of the person in military service that, in accordance
with the terms of the contract, is due and unpaid or
unperformed at the time of termination or suspension of the
contract shall be paid or performed by the person in military
service.
(g) Fees Paid in Advance.--A fee or amount paid in advance
for a period after the effective date of the termination of the
contract shall be refunded to the person in military service by
the other party (or that party's grantee or agent) within 60
days of the effective date of the termination of the contract.
(h) Relief to Other Party.--Upon application by the other
party to the contract to a court before the termination date
provided in the written notice, relief granted by this section
to a person in military service may be modified as justice and
equity require.
(i) Penalties.--
(1) Misdemeanor.--Whoever knowingly violates or
attempts to violate this section shall be fined not
more than $5,000 in the case of an individual or
$10,000 in the case of an organization.
(2) Preservation.--The remedy and rights provided
under this section are in addition to and do not
preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under
this section, including any award for consequential or
punitive damages.
(j) Equitable Relief.--
(1) In general.--In addition to any other remedy
available under law, if a person in military service
has reason to believe that another party to a contract
has violated or is violating this section, the person
in military service may--
(A) bring an action to enjoin the violation
in any appropriate United States district court
or in any other court of competent
jurisdiction; or
(B) bring an action in any appropriate United
States district court or in any other court of
competent jurisdiction to recover damages equal
to three times the amount for which the other
party is liable to the person in military
service under this section.
(2) Attorney fees.--If a person in military service
is awarded damages under an action described under
paragraph (1), the person shall be awarded, in
addition, the costs of the action and reasonable
attorney fees, as determined by the court.
(k) Definitions.--For the purposes of this section, the
following definitions apply:
(1) Multichannel video programming service.--The term
``multichannel video programming service'' means video
programming service provided by a multichannel video
programming distributor, as such term is defined in
section 602(13) of the Communications Act of 1934 (47
U.S.C. 522(13)).
(2) Internet access service.--The term ``Internet
access service'' has the meaning given that term under
section 231(e)(4) of the Communications Act of 1934 (47
U.S.C. 231(e)(4)).
(3) Cellular telephone service.--The term ``cellular
telephone service'' means commercial mobile service, as
that term is defined in section 332(d) of the
Communications Act of 1934 (47 U.S.C. 332(d)).
(4) Telephone exchange service.--The term ``telephone
exchange service'' has the meaning given that term
under section 3 of the Communications Act of 1934 (47
U.S.C. 153).
SEC. [308.] 309. 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 V--TAXES AND PUBLIC LANDS
* * * * * * *
SEC. 511. RESIDENCE FOR TAX PURPOSES.
(a) Residence or Domicile.--[A servicemember]
(1) Servicemember.--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.
(2) Spouse of servicemember.--A spouse of 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 spouse by reason of being absent or present in any
tax jurisdiction of the United States solely to be with
the servicemember in compliance with the
servicemember's military orders if the residence or
domicile, as the case may be, is the same for the
servicemember and the spouse.
* * * * * * *
TITLE VII--FURTHER RELIEF
* * * * * * *
SEC. 705. [GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.] GUARANTEE OF
RESIDENCY FOR MILITARY PERSONNEL AND SPOUSES OF
MILITARY PERSONNEL.
[For] (a) 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) * * *
* * * * * * *
(b) 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 because the person is accompanying the
person's spouse who is absent from that same 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. 707. TUITION, REENROLLMENT, AND STUDENT LOAN RELIEF FOR
POSTSECONDARY STUDENTS CALLED TO MILITARY SERVICE.
(a) Tuition and Reenrollment.--Whenever a servicemember is
called, activated, or ordered to military service and withdraws
or takes a leave of absence from an institution of higher
education in which the servicemember is enrolled, the
institution shall--
(1) provide a credit or refund to the servicemember
the tuition and fees paid by the servicemember (other
than from the proceeds of a grant or scholarship) for
the portion of the program of education for which the
servicemember did not receive academic credit after
such withdrawal or leave; and
(2) provide the servicemember an opportunity to
reenroll with the same educational and academic status
in such program of education that the servicemember had
when activated for military service.
(b) Institution of Higher Education Defined.--In this
section, the term ``institution of higher education'' means a
2-year or 4-year institution of higher education as defined in
section 102 of the Higher Education Act of 1965 (20 U.S.C.
1002).