H. Rept. 108-81 - SERVICEMEMBERS CIVIL RELIEF ACT108th Congress (2003-2004)
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[From the U.S. Government Publishing Office]
108th Congress Report
1st Session HOUSE OF REPRESENTATIVES 108-81
======================================================================
SERVICEMEMBERS CIVIL RELIEF ACT
_______
April 30, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of New Jersey, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 100]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred the
bill (H.R. 100) to restate, clarify, and revise the Soldiers'
and Sailors' Civil Relief Act of 1940, having considered the
same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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 defendant 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 leases by lessees.
``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. 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; and
``(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.
``(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.
``SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.
``(a) Jurisdiction.--This Act applies to--
``(1) the United States;
``(2) each of the States, including the political
subdivisions thereof; and
``(3) all territory subject to the jurisdiction of the United
States.
``(b) Applicability to Proceedings.--This Act applies to any judicial
or administrative proceeding commenced in any court or agency in any
jurisdiction subject to this Act. This Act does not apply to criminal
proceedings.
``(c) Court in Which Application May Be Made.--When under this Act
any application is required to be made to a court in which no
proceeding has already been commenced with respect to the matter, such
application may be made to any court which would otherwise have
jurisdiction over the matter.
``SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.
``(a) Extension of Protection When Actions Stayed, Postponed, or
Suspended.--Whenever pursuant to this Act a court stays, postpones, or
suspends (1) the enforcement of an obligation or liability, (2) the
prosecution of a suit or proceeding, (3) the entry or enforcement of an
order, writ, judgment, or decree, or (4) the performance of any other
act, the court may likewise grant such a stay, postponement, or
suspension to a surety, guarantor, endorser, accommodation maker,
comaker, or other person who is or may be primarily or secondarily
subject to the obligation or liability the performance or enforcement
of which is stayed, postponed, or suspended.
``(b) Vacation or Set-Aside of Judgments.--When a judgment or decree
is vacated or set aside, in whole or in part, pursuant to this Act, the
court may also set aside or vacate, as the case may be, the judgment or
decree as to a surety, guarantor, endorser, accommodation maker,
comaker, or other person who is or may be primarily or secondarily
liable on the contract or liability for the enforcement of the judgment
or decree.
``(c) Bail Bond Not To Be Enforced During Period of Military
Service.--A court may not enforce a bail bond during the period of
military service of the principal on the bond when military service
prevents the surety from obtaining the attendance of the principal. The
court may discharge the surety and exonerate the bail, in accordance
with principles of equity and justice, during or after the period of
military service of the principal.
``(d) Waiver of Rights.--
``(1) Waivers not precluded.--This Act does not prevent a
waiver in writing by a surety, guarantor, endorser,
accommodation maker, comaker, or other person (whether
primarily or secondarily liable on an obligation or liability)
of the protections provided under subsections (a) and (b). Any
such waiver is effective only if it is executed as an
instrument separate from the obligation or liability with
respect to which it applies.
``(2) Waiver invalidated upon entrance to military service.--
If a waiver under paragraph (1) is executed by an individual
who after the execution of the waiver enters military service,
or by a dependent of an individual who after the execution of
the waiver enters military service, the waiver is not valid
after the beginning of the period of such military service
unless the waiver was executed by such individual or dependent
during the period specified in section 106.
``SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH ALLIED
FORCES.
``A citizen of the United States who is serving with the forces of a
nation with which the United States is allied in the prosecution of a
war or military action is entitled to the relief and protections
provided under this Act if that service with the allied force is
similar to military service as defined in this Act. The relief and
protections provided to such citizen shall terminate on the date of
discharge or release from such service.
``SEC. 105. NOTIFICATION OF BENEFITS.
``The Secretary concerned shall ensure that notice of the benefits
accorded by this Act is provided in writing to persons in military
service and to persons entering military service.
``SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES ORDERED TO
REPORT FOR MILITARY SERVICE AND TO PERSONS ORDERED
TO REPORT FOR INDUCTION.
``(a) Reserves Ordered To Report for Military Service.--A member of a
reserve component who is ordered to report for military service is
entitled to the rights and protections of this title and titles II and
III during the period beginning on the date of the member's receipt of
the order and ending on the date on which the member reports for
military service (or, if the order is revoked before the member so
reports, or the date on which the order is revoked).
``(b) Persons Ordered To Report for Induction.--A person who has been
ordered to report for induction under the Military Selective Service
Act (50 U.S.C. App. 451 et seq.) is entitled to the rights and
protections provided a servicemember under this title and titles II and
III during the period beginning on the date of receipt of the order for
induction and ending on the date on which the person reports for
induction (or, if the order to report for induction is revoked before
the date on which the person reports for induction, on the date on
which the order is revoked).
``SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.
``(a) In General.--A servicemember may waive any of the rights and
protections provided by this Act. In the case of a waiver that permits
an action described in subsection (b), the waiver is effective only if
made pursuant to a written agreement of the parties that is executed
during or after the servicemember's period of military service. The
written agreement shall specify the legal instrument to which the
waiver applies and, if the servicemember is not a party to that
instrument, the servicemember concerned.
``(b) Actions Requiring Waivers in Writing.--The requirement in
subsection (a) for a written waiver applies to the following:
``(1) The modification, termination, or cancellation of--
``(A) a contract, lease, or bailment; or
``(B) an obligation secured by a mortgage, trust,
deed, lien, or other security in the nature of a
mortgage.
``(2) The repossession, retention, foreclosure, sale,
forfeiture, or taking possession of property that--
``(A) is security for any obligation; or
``(B) was purchased or received under a contract,
lease, or bailment.
``(c) Coverage of Periods After Orders Received.--For the purposes of
this section--
``(1) a person to whom section 106 applies shall be
considered to be a servicemember; and
``(2) the period with respect to such a person specified in
subsection (a) or (b), as the case may be, of section 106 shall
be considered to be a period of military service.
``SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN FUTURE
FINANCIAL TRANSACTIONS.
``Application by a servicemember for, or receipt by a servicemember
of, a stay, postponement, or suspension pursuant to this Act in the
payment of a tax, fine, penalty, insurance premium, or other civil
obligation or liability of that servicemember shall not itself (without
regard to other considerations) provide the basis for any of the
following:
``(1) A determination by a lender or other person that the
servicemember is unable to pay the civil obligation or
liability in accordance with its terms.
``(2) With respect to a credit transaction between a creditor
and the servicemember--
``(A) a denial or revocation of credit by the
creditor;
``(B) a change by the creditor in the terms of an
existing credit arrangement; or
``(C) a refusal by the creditor to grant credit to
the servicemember in substantially the amount or on
substantially the terms requested.
``(3) An adverse report relating to the creditworthiness of
the servicemember by or to a person engaged in the practice of
assembling or evaluating consumer credit information.
``(4) A refusal by an insurer to insure the servicemember.
``(5) An annotation in a servicemember's record by a creditor
or a person engaged in the practice of assembling or evaluating
consumer credit information, identifying the servicemember as a
member of the National Guard or a reserve component.
``(6) A change in the terms offered or conditions required
for the issuance of insurance.
``SEC. 109. LEGAL REPRESENTATIVES.
``(a) Representative.--A legal representative of a servicemember for
purposes of this Act is either of the following:
``(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 DEFENDANT 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) Automatic Stay.--
``(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 Defined.--As used in this section, the term `interest'
means simple interest plus 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 $1,700, 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 under subsection
(a)(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.''.
``(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; 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 LEASES BY LESSEES.
``(a) Covered Leases.--This section applies to the 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--
``(1) the lease is executed by or on behalf of a person who
thereafter and during the term of the lease enters military
service; or
``(2) the servicemember, while in military service, executes
a 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.
``(b) Notice to Lessor.--
``(1) Delivery of notice.--A lease described in subsection
(a) is terminated when written notice is delivered by the
lessee to the lessor (or the lessor's grantee) or to the
lessor's agent (or the agent's grantee).
``(2) Time for notice.--The written notice may be delivered
at any time after the lessee's entry into military service or
the date of the military orders for a permanent change of
station or to deploy for a period of not less than 90 days.
``(3) Nature of notice.--Delivery 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 addressed to 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.
``(c) Effective Date of Termination.--
``(1) Lease with monthly rent.--Termination of a lease
providing for monthly payment of rent shall be effective 30
days after the first date on which the next rental payment is
due and payable after the date on which the notice is
delivered.
``(2) Other lease.--All other leases terminate on the last
day of the month following the month in which the notice is
delivered.
``(d) Arrearages in Rent.--Rents unpaid for the period preceding
termination shall be paid on a prorated basis.
``(e) Rent Paid in Advance.--Rents paid in advance for a period
succeeding termination shall be refunded to the lessee by the lessor
(or the lessor's assignee or the assignee's agent).
``(f) 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.
``(g) 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)(1);
``(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 contract for
whole, endowment, universal, or term life insurance, 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
increase the amount of premiums if the insured
is in military service; 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 the insured, the insured's designee, or
the insured's beneficiary 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
designee, or the insured's beneficiary, as the case may be;
``(2) identify the policy and the insurer; and
``(3) include an acknowledgement that the insured's rights
under the policy are subject to and modified by the provisions
of this title.
``(b) Additional Requirements.--The Secretary of Veterans Affairs may
require additional information from the applicant, the insured and the
insurer to determine if the policy is entitled to protection under this
title.
``(c) Notice to the Secretary by the Insured.--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 of the application for
protection.
``(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 may be reviewed by the
Board of Veterans' Appeals and the United States Court of Appeals for
Veterans Claims.
``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; 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 State Code.
``SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS OF TITLE.
``(a) Distribution of Information by Secretary Concerned.--The
Secretary concerned shall issue to servicemembers information
explaining the provisions of this title.
``(b) Application Forms.--The Secretary concerned shall provide
application forms to servicemembers requesting relief under this title.
``(c) Information From Secretary of the Interior.--The Secretary of
the Interior shall furnish to the Secretary concerned information
explaining the provisions of this title (other than sections 501, 510,
and 511) and related application forms.
``SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.
``(a) No Age Limitations.--Any servicemember under the age of 21 in
military service shall be entitled to the same rights under the laws
relating to lands owned or controlled by the United States, including
mining and mineral leasing laws, as those servicemembers who are 21
years of age.
``(b) Residency Requirement.--Any requirement related to the
establishment of a residence within a limited time shall be suspended
as to entry by a servicemember in military service until 180 days after
termination of or release from military service.
``(c) Entry Applications.--Applications for entry may be verified
before a person authorized to administer oaths under section 1044a of
title 10, United States Code, or under the laws of the State where the
land is situated.
``SEC. 509. REGULATIONS.
``The Secretary of the Interior may issue regulations necessary to
carry out this title (other than sections 501, 510, and 511).
``SEC. 510. INCOME TAXES.
``(a) Deferral of Tax.--Upon notice to the Internal Revenue Service
or the tax authority of a State or a political subdivision of a State,
the collection of income tax on the income of a servicemember falling
due before or during military service shall be deferred for a period
not more than 180 days after termination of or release from military
service, if a servicemember's ability to pay such income tax is
materially affected by military service.
``(b) Accrual of Interest or Penalty.--No interest or penalty shall
accrue for the period of deferment by reason of nonpayment on any
amount of tax deferred under this section.
``(c) Statute of Limitations.--The running of a statute of
limitations against the collection of tax deferred under this section,
by seizure or otherwise, shall be suspended for the period of military
service of the servicemember and for an additional period of 270 days
thereafter.
``(d) Application Limitation.--This section shall not apply to the
tax imposed on employees by section 3101 of the Internal Revenue Code
of 1986.
``SEC. 511. RESIDENCE FOR TAX PURPOSES.
``(a) Residence or Domicile.--A servicemember shall neither lose nor
acquire a residence or domicile for purposes of taxation with respect
to the person, personal property, or income of the servicemember by
reason of being absent or present in any tax jurisdiction of the United
States solely in compliance with military orders.
``(b) Military Service Compensation.--Compensation of a servicemember
for military service shall not be deemed to be income for services
performed or from sources within a tax jurisdiction of the United
States if the servicemember is not a resident or domiciliary of the
jurisdiction in which the servicemember is serving in compliance with
military orders.
``(c) Personal Property.--
``(1) Relief from personal property taxes.--The personal
property of a servicemember shall not be deemed to be located
or present in, or to have a situs for taxation in, the tax
jurisdiction in which the servicemember is serving in
compliance with military orders.
``(2) Exception for property within member's domicile or
residence.--This subsection applies to personal property or its
use within any tax jurisdiction other than the servicemember's
domicile or residence.
``(3) Exception for property used in trade or business.--This
section does not prevent taxation by a tax jurisdiction with
respect to personal property used in or arising from a trade or
business, if it has jurisdiction.
``(4) Relationship to law of state of domicile.--Eligibility
for relief from personal property taxes under this subsection
is not contingent on whether or not such taxes are paid to the
State of domicile.
``(d) Increase of Tax Liability.--A tax jurisdiction may not use the
military compensation of a nonresident servicemember to increase the
tax liability imposed on other income earned by the nonresident
servicemember or spouse subject to tax by the jurisdiction.
``(e) Federal Indian Reservations.--An Indian servicemember whose
legal residence or domicile is a Federal Indian reservation shall be
taxed by the laws applicable to Federal Indian reservations and not the
State where the reservation is located.
``(f) Definitions.--For purposes of this section:
``(1) Personal property.--The term `personal property' means
intangible and tangible property (including motor vehicles).
``(2) Taxation.--The term `taxation' includes licenses, fees,
or excises imposed with respect to motor vehicles and their
use, if the license, fee, or excise is paid by the
servicemember in the servicemember's State of domicile or
residence.
``(3) Tax jurisdiction.--The term `tax jurisdiction' means a
State or a political subdivision of a State.
``TITLE VI--ADMINISTRATIVE REMEDIES
``SEC. 601. INAPPROPRIATE USE OF ACT.
``If a court determines, in any proceeding to enforce a civil right,
that any interest, property, or contract has been transferred or
acquired with the intent to delay the just enforcement of such right by
taking advantage of this Act, the court shall enter such judgment or
make such order as might lawfully be entered or made concerning such
transfer or acquisition.
``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, or the servicemember's legal representative, 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) The term `active duty' has the meaning given that term
in section 101(d)(1) of title 10, United States Code.
``(2) The term `profession' includes occupation.
``(3) 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. 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''.
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.
Introduction
The reported bill reflects the Committee's consideration of
H.R. 100, as amended.
On January 7, 2003, the Chairman and Ranking Member of the
Veterans' Affairs Committee, the Honorable Christopher H. Smith
and the Honorable Lane Evans, introduced H.R. 100 to restate,
clarify, and revise the Soldiers' and Sailors' Civil Relief Act
of 1940.
On July 24 and July 25, 2002, the Subcommittee on Benefits
held hearings on H.R. 5111, the Servicemembers' Civil Relief
Act, and H.R. 4017, the Soldiers' and Sailors' Civil Relief
Equity Act. H.R. 5111, introduced on July 7, 2002, was a
restatement and clarification of the Soldiers' and Sailors'
Civil Relief Act of 1940, and is nearly identical to H.R. 100.
H.R. 4017, introduced on March 20, 2002, added coverage under
the Soldiers' and Sailors' Civil Relief Act of 1940 for those
National Guard members called up under title 32, United States
Code, for 30 days or more.
On July 24, the witnesses were Mr. Craig W. Duehring,
Acting Assistant Secretary of Defense (Reserve Affairs); Ms.
Judy Wilson, Deputy Director, Government Relations, The
Enlisted Association of the National Guard; Mr. Bob Manhan,
Assistant Director, National Legislative Service, Veterans of
Foreign Wars; Mr. Richard Jones, National Legislative Director,
AMVETS; and Ms. Joyce Wessel Raezer, Director, Government
Relations, the National Military Family Association, Inc.
On July 25, the witnesses were Robert Hirshon, Esq.,
President, American Bar Association; Eugene R. Fidell, Esq.,
Feldeman, Tucker, Leifer, Fidell & Bank, LLP; Mr. James Murphy,
Chairman, Mortgage Bankers Association of America; Henry R.
Desmarais, MD, M.P.A., Senior Vice President, Health Insurance
Association of America; Ms. Kimberlee D. Vockel, Director of
Legislative Affairs, Non Commissioned Officers Association; Mr.
William B. Loper, Director of Government Affairs, Association
of the United States Army; and Mr. James P. Tierney, Deputy
Director of Legislative Programs, National Guard Association of
the United States.
The Administration supported both bills in concept while
opposing some specific provisions. Other witnesses also
generally supported the bills in concept with suggestions for
substantive or technical improvements.
On April 3, 2003, the full Committee met and ordered H.R.
100, with an amendment in the nature of a substitute, reported
favorably to the House by unanimous voice vote.
Summary of the Reported Bill
H.R. 100, as amended, would:
1. LRename the Soldiers' and Sailors' Civil Relief Act of
1940 as the Servicemembers Civil Relief Act (the Act).
2. LRestate the purposes of the Act and include among the
purposes the temporary suspension of administrative
proceedings.
TITLE I--GENERAL PROVISIONS
1. LDefine the following terms: (1) ``servicemember'' as
meaning a member of the uniformed services as defined in
section 101(a)(5) of title 10, United States Code; (2)
``military service'' for members of the Army, Navy, Marine
Corps, Air Force or Coast Guard as meaning active duty as
defined in section 101(d)(1) of title 10, United States Code,
for members of the National Guard certain service for purposes
of responding to a national emergency declared by the President
and as meaning active service of commissioned officers of the
Public Health Service (PHS) and the National Oceanic and
Atmospheric Administration (NOAA); (3) ``period of military
service'' as meaning the period beginning on the date a
servicemember enters military service and ending on the date a
servicemember is released from military service or dies in
military service; (4) ``dependent'' as meaning a
servicemember's spouse or child as defined in section 101(4) of
title 38, United States Code, or an individual for whom the
servicemember provided more than one-half of support for 180
days before an application for relief under the Act; (5)
``court'' as meaning any court or 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'' as meaning a
commonwealth, territory, or possession of the United States,
and the District of Columbia; and (7) ``Secretary concerned''
as meaning for a member of the armed forces a Secretary as
defined in section 101(a)(9) of title 10, United States Code,
for a commissioned officer of the PHS, the Secretary of Health
and Human Services, and for a commissioned officer of NOAA, the
Secretary of Commerce.
2. LProvide that the Act applies to the United States,
each of the States, including their political subdivisions, and
all territories under U.S. jurisdiction.
3. LProvide that the Act applies to any judicial or
administrative proceeding commenced in any court or agency in
any jurisdiction, but would not apply to criminal proceedings.
4. LProvide that when any application under the Act is
required to be made to a court in which no proceeding has
already been commenced, the application may be made to any
court which would have jurisdiction over the matter.
5. LProtect persons secondarily liable, such as sureties,
guarantors, endorsers, accommodation makers, and comakers, by:
(1) extending to them the protections of the Act, (2) allowing
courts, when a judgment or decree is vacated or set aside under
the Act, to take similar action for persons secondarily liable,
(3) providing that a court may not enforce a bail bond during
the period of military service of the principal when military
service prevents the surety from obtaining the attendance of
the principal, and by allowing the court to discharge the
surety and exonerate the bail. The Act would allow individuals
otherwise covered under these provisions to waive their
protection, but only by a waiver executed separately from the
obligation or liability. The Act would invalidate waivers by an
individual or a dependent after which the individual enters
military service, unless the waiver was executed during the
period beginning on the date the member or inductee received
the order to report and ending on the reporting date or the
date of revocation of the order to report.
6. LProvide the relief and protections of the Act to
citizens of the United States who serve in the armed forces of
allies of the United States, terminating on the date of
discharge or release from service.
7. LRequire the Secretary concerned to provide written
notice to persons in military service or persons entering
military service of their rights under the Act.
8. LProvide that a member of a reserve component who is
ordered to report for military service is entitled to rights
and protections under the Act during the period beginning on
the date the member receives the order and ending on the date
the member reports for military service (or if the order is
revoked before the member reports, or on the date the order is
revoked). This provision would also extend rights and
protections under the Act to those individuals who have been
drafted during the period of time between the date they receive
their induction orders and the date they report 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 the
order is revoked).
9. LAuthorize a servicemember to waive any rights and
protections afforded under the Act; requires waivers that would
permit the modification, termination, cancellation,
repossession, sale, foreclosure, or forfeiture of property that
was the subject of a legal instrument be made pursuant to a
written agreement in order to be effective.
10. LProvide that an application by a servicemember in
military service for protections under the Act could not be:
(1) the basis for denial or revocation of, or a change in,
credit by creditors, (2) a presumption that such individual
cannot pay his or her obligation or liability, (3) an adverse
credit report, (4) or a refusal of an insurer to insure such
individual. This provision would also treat a preexisting
business debt or obligation of a servicemember ordered to
active duty as an obligation of the servicemember for purposes
of the Act.
11. LDefine that a legal representative of a servicemember
for purposes of the Act is an attorney acting for a
servicemember or an individual with a power of attorney, and
that the term ``servicemember'' as used in the Act includes a
servicemember's legal representative.
TITLE II--GENERAL RELIEF
1. LRequire a court in an action in which the defendant
is in military service to grant a minimum 90-day stay of
proceedings upon application of counsel or upon court motion if
the court determines that: (1) there may be a defense to the
action and a defense cannot be presented without the defendant,
or (2) after due diligence, counsel has been unable to contact
the defendant or otherwise determine if a meritorious defense
exists. This provision would also protect bona fide purchasers
for value if a default judgment is set aside on behalf of a
servicemember.
2. LProvide for a minimum 90-day stay of proceedings at
any stage before final judgment in a civil action for a
servicemember who is serving on active duty or is within 90
days after termination of such duty and who has received notice
of such proceedings, upon appropriate application by the
servicemember or his or her commanding officer. This provision
would also allow application for an additional stay based on
continuing material affect of military duty on the
servicemember's ability to appear; require the court to appoint
counsel for the servicemember when such application for
additional stay is refused; and specify that an application for
stay under this provision does not constitute an appearance for
jurisdictional purposes and is not a waiver of any substantive
or procedural defense.
3. LProhibit a penalty from accruing against a person
failing to carry out the terms of a contract during the period
of a court issued stay in an action for compliance with the
terms of the contract. This provision would also allow the
court to reduce or waive a fine or penalty for failing to carry
out the terms of a contract if the servicemember is in military
service at the time the fine or penalty was incurred, and the
servicemember's ability to perform the obligation is materially
affected by the military service.
4.LAuthorize a court to stay a judgment or order against
a servicemember or vacate or stay an attachment when a
servicemember's compliance is materially affected by military
service; and authorize a court to grant such stays before or
during the servicemember's military service or within 90 days
after such service terminates.
5. LAllow a stay of an action, proceeding, attachment, or
execution granted by a court under the provisions of this Act
to remain in effect for the period of military service, and up
to 90 days thereafter. This provision would also allow a
plaintiff to proceed with an action against other defendants
who are not in military service, when a servicemember is a
codefendant, with the approval of the court, even though the
action is stayed with respect to the servicemember.
6. LProvide that in deciding when the period of time
specified in a statute of limitations expires for any action or
proceeding, the period of a servicemember's military service is
not counted, and also provide that the period of a
servicemember's military service may not be included in the
period for redemption of real property that has been sold or
forfeited to enforce a tax, obligation, or assessment.
7. LLimit interest rates to 6 percent per year on
obligations or liabilities incurred by the servicemember, or
jointly by the servicemember and the servicemember's spouse,
before the servicemember enters military service. This
provision would forgive the payment of interest in excess of 6
percent a year on such obligations or liabilities, and require
a servicemember, in order to be covered by the 6 percent cap,
to provide creditors with written notice and a copy of his or
her service orders, as well as any orders for service
extension, within 180 days after termination or release from
such service. This provision would also allow the court to
grant a creditor relief from the 6 percent limit if the ability
of the servicemember to pay interest in excess of the cap is
not materially affected by reason of military service.
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
1. LProtect against the eviction of a servicemember or his
or her dependents during a period of military service from
premises occupied primarily as a residence for which rent does
not exceed $1,700, except by court order and provide for
increases in the rental amount based upon an annual housing
price inflation adjustment. It would also allow a court to stay
execution of an application for eviction or distress for 90
days or adjust the obligation under the lease if a
servicemember's ability to pay rent is materially affected by
military service; grant relief to the landlord; provide that
knowing violation of this provision is a criminal misdemeanor;
and authorize the Secretary concerned to make an allotment from
the servicemember's pay to the extent required by a court
order.
2. LRequire a court order for rescission or termination for
breach of contract during a period of military 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. It would also provide that a knowing violation
of this provision is a criminal misdemeanor, provide that
certain other remedies are not precluded for persons claiming
relief under this provision, provide that a court may order
repayment to servicemembers of installments or deposits before
a contract may be terminated and the property repossessed, and
provide that a court may stay the proceedings for a period of
time as justice and equity require or make other equitable
disposition.
3. LAuthorize a court to stay proceedings or adjust the
obligation in the case of claims filed to enforce mortgage or
trust deed payments for up to 90 days after a servicemember's
period of military service when the servicemember's ability to
comply with the obligation has been materially affected by
military service. This provision would only apply to
obligations on real or personal property owned by a
servicemember that originated before the period of the
servicemember's military service and for which the
servicemember is still obligated when the property is secured
by a mortgage, trust, deed, or other security in the nature of
a mortgage. It would make knowing violation of this provision a
criminal misdemeanor and preserve other remedies available to a
person claiming relief under this provision.
4. LAuthorize a court to appoint three disinterested
parties to appraise a property if a stay has been granted
pursuant to this Act in a proceeding to foreclose on a
mortgage, repossess personal property, or to rescind or
terminate a contract for the purchase of personal property.
This provision also would allow, based on the appraisal and if
undue hardship to the servicemember's dependents would not
result, the court to order the amount of the servicemember's
equity in the property to 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.
5. LAllow termination of leases 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 the lease is executed by a
person who thereafter and during the term of the lease enters
military service, or the servicemember while in military
service executes a lease and thereafter receives orders for a
permanent change of station or to deploy for not less than 90
days. It would establish the requirements for the lessee to
provide written notice to the lessor or to the lessor's agent
and provide the effective date of termination for leases with
monthly rent and for all other leases. It would require that
arrearages in rent be paid on a prorated basis and require that
rents paid in advance be refunded to the lessee. It also would
authorize a court to grant certain relief to lessors as justice
and equity require. It would provide that knowing violation of
this provision is a criminal misdemeanor and provide that
remedies otherwise available under law are not precluded.
6. LProvide that where any life insurance policy on the
life of a person who enters active military service has been
assigned by that person before entering active duty to secure
payment of a debt, the assignee of the policy (except the
insurance company in connection with a policy loan) may not
exercise during the period of military service or within one
year thereafter any right or option obtained under the
assignment without a court order. This prohibition would not
apply: (1) if the assignee has the written consent of the
insured, (2) when any premiums on the policy are due and
unpaid, and (3) upon the death of the insured. It would provide
that a court may refuse to grant an order under this provision
if the ability of the servicemember to comply with the terms of
the obligation is materially affected by military service. It
would provide that premiums guaranteed under title IV of the
Act would not be considered due and unpaid. It also would
provide that knowing violation of this provision is a criminal
misdemeanor and provide that remedies otherwise available under
law are not precluded.
7. LProhibit the enforcement of any storage lien of any
person on active duty in military service while the person is
on active duty and for 90 days thereafter without a court
order. It would authorize a court to stay proceedings to
enforce a lien or to adjust the obligation if a servicemember's
ability to comply with the obligation is materially affected by
military service. It also would provide that knowing violation
of this provision is a criminal misdemeanor and provide that
remedies otherwise available under law are not precluded.
8. LEntitle 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.
TITLE IV--LIFE INSURANCE
1. LDefine the term ``policy'' for the purposes of this
title on life insurance, and define the terms ``premium,''
``insured,'' and ``insurer.''
2. LAllow the insured, the insured's designee, or the
insured's beneficiary to apply in writing for the protection
from a lapse of a life insurance policy by providing for a
guarantee of payment of premiums and interest on premiums by
the United States, unless the Secretary of Veterans Affairs
determines the insured's policy is not entitled to protection.
It would require the Secretary of Veterans Affairs to notify
the Secretary concerned of the procedures to be used to apply
for the protections provided under this title. It would require
the applicant to send the original application to the insurer
and a copy to the Secretary of Veterans Affairs. It also would
increase the total amount of life insurance coverage protection
under this title to $250,000, or an amount equal to the
Servicemembers' Group Life Insurance maximum amount, whichever
is greater.
3. LRequire that an application for protection under this
title be: (1) in writing and signed by the insured, the
insured's designee, or the insured's beneficiary, (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 the title. It would allow the
Secretary of Veterans Affairs to require additional information
from the applicant, the insured and the insurer to determine if
the policy is entitled to protection; and provide that upon
receipt of the application of the insured, the insurer must
furnish a report concerning the policy to the Secretary of
Veterans Affairs as required by regulations prescribed by the
Secretary. It also would provide that an application for
protection under this title constitutes agreement to any policy
modification necessary to give this title full force and
effect.
4. LRequire the Secretary of Veterans Affairs to determine
whether a policy is entitled to protection under this title and
to notify the insured and insurer of that determination. It
would provide that a policy the Secretary determines to be
entitled to protection would not, after the date of application
for protection, lapse or otherwise terminate or be forfeited
for nonpayment of a premium, or interest or indebtedness on a
premium, and provide that the protection under this title
applies during the insured's period of military service and for
two years thereafter.
5. LProhibit a dividend or other monetary benefit under a
policy to be paid to an insured or used to purchase dividend
additions while the policy is protected under this title,
without the approval of the Secretary of Veterans Affairs. It
would also prohibit cash value, loan value, withdrawal of
dividend accumulation, unearned premiums, or other value of
similar character to be available while the policy is protected
under the provisions of the title without the approval of the
Secretary. It would provide that provisions under this title do
not affect the right of the insured to change a beneficiary
designation or select an optional settlement for a beneficiary.
6. LRequire the insurer to deduct from the insurance
proceeds the amount of the 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 or otherwise during the period of
protection. It would require the interest rate to be the same
for policy loans in other policies issued by the insurer at the
time the policy was issued and require that the amount
deducted, if any, be reported by the insurer to the Secretary
of Veterans Affairs.
7. LProvide that the payment of premiums, and interest on
premiums at a rate specified by this title, is guaranteed by
the United States. It would provide that the insurer treat the
amount guaranteed as a policy loan on the policy, if it is not
paid to the insurer before the period of insurance protection
expires. It would require the termination of the policy, if at
the time of the expiration of insurance protection under this
title, the cash surrender value of the policy is less than the
amount due to pay premiums and interest on premiums on the
policy and require that upon termination, the United States pay
the insurer the difference between the amount due and the cash
surrender value. It would provide that the amount paid by the
United States to the insurer is a debt payable to the United
States by the policy holder, and provide that this amount may
be collected by the United States, either as an offset from any
amount due to the policy holder by the United States, or as
otherwise authorized by law. It also would provide that such a
debt payable to the United States is not dischargeable in
bankruptcy proceedings and require any amounts received by the
United States as repayment of debts incurred by an insured be
credited to the appropriation for the payment of claims under
this provision.
8. LAuthorize the Secretary to prescribe regulations for
implementation of this title.
9. LAllow the findings of fact and conclusions of law made
by the Secretary of Veterans Affairs in administering this
title to be reviewed by the Board of Veterans' Appeals and the
United States Court of Appeals for Veterans Claims.
TITLE V--TAXES AND PUBLIC LANDS
1. LApply to any cases of tax assessments (except taxes on
personal income) falling due and remaining unpaid before or
during military service for personal property, or real property
before entry into military service and during the time the tax
or assessment remains unpaid. It would prohibit sale of such
property to enforce a tax assessment without a court order
determining that military service does not materially affect
the servicemember's ability to pay the unpaid tax or
assessment. It would provide for a stay of court proceedings to
enforce the collection of such a tax or assessment for not more
than 180 days after termination of military service, and
provide for a servicemember's right of redemption of such
property during military service or within 180 days after
termination of military service. It would provide for a 6
percent interest cap on such tax or assessments due and unpaid.
It would apply these provisions to property jointly owned by a
servicemember and a dependent or dependents.
2. LProvide that the rights of a servicemember to public
lands are not forfeited or prejudiced as a result of being
absent from the land during the period of military service. It
would provide that certain permittees or licensees who have
entered military service may suspend the permits and licenses
held before entering military service, during military service,
and for 180 days after termination of military service. It
would authorize the Secretary of the Interior to prescribe
regulations regarding this provision.
3. LExempt the servicemember and former 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. It would provide that an
honorably discharged entryman or claimant who is disabled in
the line of duty may make proof without further reclamation or
payments. The servicemember must notify the land office where
the claim is located within 180 days after entering military
service that he or she has entered military service.
4. LProvide that certain requirements of law to keep a
mining claim in effect are suspended when the claim is held by
a servicemember while on active duty and for 180 days after
termination of military service, or during a period of
hospitalization because of wounds or disability incurred in the
line of duty. It also would provide a 180-day period of
protection from forfeiture for a mining claim owned by a
servicemember and establish certain filing requirements for
claimants who desire to hold a mining claim under this
provision.
5. LProvide that a person holding a permit or a lease
under the Federal mineral laws who enters military service may
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. It would prohibit the charge of rental fees or
royalties during the period of suspension and require the
permittee or lessee to notify the Secretary of the Interior
within 180 days after entry into military service in order to
obtain the protections of this provision. It also would provide
that this provision does not supersede the terms of any
contract for operation of a permit or lease.
6.LProvide that this title does not affect the right of a
servicemember to perfect or defend rights initiated or acquired
prior to entry into military service. It also would provide for
affidavits and proofs required by the Department of the
Interior, and provide that such affidavits are binding in law
and subject to certain penalties.
7. LAuthorize the Secretary concerned to issue to
servicemembers information explaining the provisions of this
title and to provide application forms to servicemembers
requesting relief under this title. It would authorize the
Secretary of Interior to furnish the Secretary concerned
information explaining the provisions of this title and related
application forms.
8. LEntitle any servicemember under the age of 21 to the
same rights of laws relating to lands owned or controlled by
the United States, including mining and mineral leasing laws,
as those servicemembers over the age of 21.
9. LAuthorize the Secretary of the Interior to issue
regulations necessary to carry out this title.
10. LProvide that, upon notice to the Internal Revenue
Service or other tax authority, collection of taxes on the
income of a servicemember falling due before or during military
service is deferred while the person in military service and
for not more than 180 days after termination of military
service if the person's ability to pay the taxes is materially
affected by military service. It would provide that no interest
or other penalty may accrue for the period of deferment for
nonpayment and provide that the statute of limitations against
collection of a deferred tax under this provision is suspended
during the servicemember's military service and for 270 days
thereafter. It also would provide that this provision does not
apply to the tax imposed on employees by section 3101 of the
Internal Revenue Code of 1986.
11. LProvide that a servicemember neither loses nor
acquires a residence or domicile for tax purposes with respect
to the person, personal property, or income by reason of being
absent or present in any U.S. tax jurisdiction solely in
compliance with military orders. It would provide that military
service compensation is not 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. It would provide that personal property may be
taxed only in the tax jurisdiction of the servicemember's
domicile or residence. It would prohibit a tax jurisdiction
from using the military compensation of a non-resident
servicemember to increase the tax liability imposed on other
income earned by such servicemember or spouse. It also would
provide that an Indian servicemember whose legal residence or
domicile is a Federal Indian reservation is taxed under the
laws applicable to such reservation and not to the State where
the reservation is located.
TITLE VI--ADMINISTRATIVE REMEDIES
1. LProvide that a court may prevent inappropriate use of
the Act by entering judgments or orders.
2. LProvide that a certificate of service signed by the
Secretary concerned is prima-facie evidence of military service
and require the Secretary concerned to furnish certain
certificates upon receipt of an application. It would establish
a presumption that a servicemember who is declared missing is
in military service until accounted for.
3. LAuthorize an interlocutory 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.
TITLE VII--FURTHER RELIEF
1. LAllow 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 or within 180 days of termination from military
service. It would provide that in a case covered by this
provision, if the ability of the servicemember to comply with
the terms of an obligation or liability or pay a tax or
assessment has been materially affected by military service,
after appropriate notice and hearing, a court may grant: (1) a
stay of enforcement of certain real estate contracts, and (2) a
stay of enforcement of certain other contracts. It also would
provide that, if a court grants a stay under this provision, no
fine or penalty may accrue during the period of compliance with
the terms and conditions of the stay.
2. LExtend automatically a servicemember's power of
attorney when the servicemember is in a missing status.
3. LProvide for suspension of a professional liability
insurance policy for the period of active duty military service
in the case of a person providing professional health care or
legal services (or other services determined by the Secretary
of Defense to be professional services) under a professional
liability insurance contract and who entered into certain
active duty under title 10, United States Code. It would
establish requirements for suspension of coverage and
reinstatement of coverage, and prohibit the insurance carrier
from requiring payments to be made during the period of such
suspended coverage. It would define for the purposes of this
provision the terms ``active duty,'' ``profession,'' and
``professional.''
4. LProvide that a servicemember entitled to the rights
and protections of the Act is also entitled upon termination of
military service to reinstatement of any health insurance that:
(1) was in effect on the day before service commenced, and (2)
was terminated effective on a date during the period of
service. It would prohibit any exclusions or waiting periods
from being imposed upon a returning servicemember for health
insurance coverage if: (1) the condition arouse before or
during the servicemember's military service, (2) such exclusion
or waiting period would not have been imposed for the condition
during the period of coverage, and (3) such condition is not
determined by the Secretary of Veterans Affairs to be a
disability incurred or aggravated in the line of duty. It would
require that an application for reinstatement be filed not
later than 120 days after termination of military service.
5. LProvide a guarantee of residency for military
personnel for purposes of voting for any Federal office or a
State or local office, if that person is absent from a State in
compliance with military or naval orders.
Background and Discussion
Congress has long recognized that the men and women of our
military services should have civil legal protections so they
can ``devote their entire energy to the defense needs of the
Nation.'' With hundreds of thousands of servicemembers fighting
in the war on terrorism and the war in Iraq, many of them
mobilized from the reserve components, the Committee believes
the Soldiers' and Sailors' Civil Relief Act (SSCRA) should be
restated and strengthened to ensure that its protections meet
their needs in the 21st century.
The earliest recognition of the need to provide civil
protections for servicemembers in the United States dates back
to the ``stay laws'' promulgated by Louisiana during the War of
1812. Louisiana suspended all proceedings in civil cases for
four months as the British were advancing on New Orleans.
Experience of persons serving in the military during the Civil
War led the Federal government and some states to enact stay
laws which had the effect of suspending legal actions to which
the soldier or sailor was a party. Soldiers' and Sailors' Civil
Relief Bill: Hearing on S. 2859 and H.R. 6361 Before the Senate
Subcommittee on the Judiciary, 65th Cong., 38 (1917). Following
the decision of the United States to enter the war in Europe in
1917, the first modern version of the Soldiers' and Sailors'
Civil Relief Act was drafted in six weeks by Major John
Wigmore, the eminent Dean of Northwestern University's Law
School and author of the authoritative treatise, Wigmore on
Evidence. He had been called to active duty and attached to the
Army Judge Advocate General Corps (JAGC). Id. at 83-84.
The original SSCRA provisions covered default judgments,
stays of proceedings, evictions, mortgage foreclosure,
insurance, and installment contracts. In a letter transmitting
the draft bill to Congress, Newton Baker, Secretary of War, and
Josephus Daniels, Secretary of the Navy, summed up the purpose
of the legislation, ``On the whole, the method of the act
consists mainly in suspending proceedings and transactions
during the soldier's or sailor's absence, so that he may have
an opportunity, when he returns, to be heard and to take
measures to protect his interests.'' Id. at 5.
The Senate hearings considered the authority of Congress to
enact this type of legislation under the authority of the
Constitution's war powers, as well as provisions on protection
of insurance premiums. The Senate Subcommittee on the Judiciary
in the end determined in a resolution ``that the Congress has
the power to enact a reasonable stay law, which may control the
processes and proceedings of State courts.'' Id. This
conclusion relied on Stewart v. Kahn, 78 U.S. 493, 11 Wallace
493 (1870), a decision in which the U.S. Supreme Court
expressly held that the Federal statutes of the Civil War (13
Stat. L., 123, June 11, 1864) were controlling upon the state
as well as the Federal courts. Id. at 89. The SSCRA of 1918
terminated under its own provisions six months after World War
I ended.
In 1940, with the looming involvement of the United States
in World War II, Congress re-enacted the SSCRA almost verbatim.
Civil Liabilities of Military Personnel: Hearing on S. 4270
Before the Senate Committee on Military Affairs, 76th Cong.
Vol. 8, 7 (1940). The 1940 version added the method for
administering insurance protection and protections with respect
to public lands, and raised the rent eviction ceiling from $50
to $80. Civil Liabilities of Military Personnel: Hearing on S.
4270 Before the Senate Committee on Military Affairs, 76th
Cong., Vol. 8, 18 (1940).
Within two years it became apparent that new social and
business realities made a major update necessary. While the
amendments were being considered, Congressman Overton Brooks
(D-LA), observed on the floor of the House:
This bill springs from the desire of the people of
the United States to make sure as far as possible that
men in service are not placed at a civil disadvantage
during their absence. It springs from the inability of
men who are in service to properly manage their normal
business affairs while away. It likewise arises from
the differences in pay which a soldier receives and
what the same man normally earns in civil life. (Cong.
Rec. H. 5553, June 11, 1942).
The U.S. Supreme Court later supported this interpretation when
it declared that the Act must be read with ``an eye friendly to
those who dropped their affairs to answer their country's
call.'' Le Maistre v. Leffers, 333 U.S. 1, 6 (1948).
A team headed by Major William Partlow, U.S. Army, JAGC,
drafted major revisions to the SSCRA. During the 1942 hearings,
Major Partlow reaffirmed that the purpose of the Act was
``toward the withholding of remedies, rather than the
extinguishments of rights.'' Soldiers' and Sailors' Civil
Relief Act: Hearings on H.R. 7029 Before the House Committee on
Military Affairs, 77th Cong., 11 (1942). The 1942 amendments
modified existing provisions and expanded protections of the
Act. The most notable of these was the creation of the 6
percent interest rate cap on indebtedness and the prohibition
on multiple state taxation of the property and income of a
servicemember.
Not until 1953 was the constitutionality of the Act
challenged. The U.S. Supreme Court in Dameron v. Brodhead, 345
U.S. 322 (1953), settled the issue by holding that Congress
could pass legislation such as the Act by virtue of its power
``to declare war'' (U.S. Const. Art. I, sec. 8, cl. 11) and
``to raise and support armies'' (U.S. Const. Art. I, sec. 8,
cl. 12).
Including the major 1942 revisions, Congress has amended
the SSCRA 13 times. Lt. Colonel Gregory M. Huckabee, Operations
Desert Shield and Desert Storm: Resurrection of the Soldiers'
and Sailors' Civil Relief Act, 132 Mil. L. Rev. 141 154-157
(1991). The SSCRA tolling provision was amended again in 1942
to exclude the Internal Revenue Service, thus allowing the
collection of taxes from all citizens for the war effort
regardless of status. (56 Stat. 964, ch. 619 (1942)). In 1944,
Congress provided that servicemembers did not lose their
domicile by being absent due to military orders. (58 Stat. 722,
ch. 397, sec. 1 (1944)). In 1948, Congress changed the way life
insurance premium refunds were credited in an attempt to make
the funds self-sustaining. (62 Stat. 160, ch. 170, Sec. 6
(1948)).
Four years later, Congress added a criminal penalty for
anyone who sold, foreclosed or seized property under a mortgage
or trust deed involving a servicemember without a court order.
(66 Stat. 151, ch. 450 (1952)). In 1958, Congress made a minor
change removing the requirement by the Administrator of the
Veterans Administration to make annual reports to Congress on
the guaranteed life insurance program. (72 Stat. 1272, ch. 857,
Sec. 14(76) (1958)).
In 1960, Congress permitted a declaration under penalty of
perjury instead of an affidavit in default proceedings. This
amendment conformed federal law to state law for the purposes
of default proceedings. (74 Stat. 820 (1960)). A new protection
was added in 1962 excluding from taxation by nondomiciliary
states personal property belonging to a servicemember who
resided outside of their domicile due to military orders. (76
Stat. 768, ch. 771 (1962)). In 1966, Congress raised the
eviction rent ceiling from $80 to $150. (80 Stat. 28, ch. 358,
sec. 10 (1966)).
In 1972, Congress indefinitely extended the effective life
of powers of attorney executed during the Vietnam era (1963-
1972). This was in response to the prisoner of war issues from
the Vietnam War. (86 Stat. 1098, ch. 540, tit. V, sec. 504
(1972)). As a consequence of the Persian Gulf War in 1990,
Congress amended several sections of the SSCRA. Amy J.
McDonough, et al., Crisis of the Soldiers' and Sailors' Civil
Relief Act: A Call for the Ghost of Major (Professor) John
Wigmore, 43 Mercer L. Rev. 667, 671-76 (Winter 1992). The 1991
amendments raised the eviction rent ceiling again from $150 to
$1,200, created a new section suspending professional liability
insurance for medical professionals, and enacted another new
section to prohibit retaliatory action by creditors and
insurers if the servicemember requested relief under the Act.
(105 Stat. 34).
In 2001, in response to a legal challenge to absentee
military votes cast in the November 1996 election, Congress
again amended the Act with a new section to guarantee residency
for servicemembers for voting purposes. (115 Stat. 1023, tit.
XVI, sec. 1603). The most recent amendment in 2002 came about
after the terrorist attacks of September 11, 2001, and extended
the protections of the Act to certain members of the National
Guard called to active duty under section 502(f) of title 32,
United States Code, in response to national emergencies. (116
Stat. 2821, tit. III, sec. 305).
The Soldiers' and Sailors' Civil Relief Act of 1940 was to
remain in force until May 15, 1945, or six months after the
President proclaimed a treaty of peace. In 1948, after the
SSCRA had expired, Congress added a provision to the Military
Selective Service Act, requiring that the Soldiers' and
Sailors' Civil Relief Act continue in force until it was
``repealed or otherwise terminated by a subsequent Act of
Congress. . . .'' (50 U.S.C. App. 464 (1948)). Congress has not
repealed or terminated the Act, and it continues in effect.
Restatement of the Act
The Committee intends H.R. 100, as amended, to be a
comprehensive restatement of the Act. The bill would clarify
and strengthen many of its protections. Section 1 of the bill
would give the Act a more inclusive short title, the
``Servicemembers Civil Relief Act,'' because soldiers, sailors,
marines and airmen are collectively referred to as
``servicemembers'' in other statutes. The bill updates and
restates the current provisions of the Act in plain English for
improved comprehension. It is drafted in modern legislative
form with ``titles'' rather than ``articles,'' and divides many
of the sections into subsections and paragraphs for improved
readability. Descriptive headings are added throughout the
bill. The same general order of subject matter is preserved.
Section 2 of the bill restates the purposes of the Act for
greater clarity, removes redundant language, and expands the
statement of purposes to provide for the temporary suspension
of administrative proceedings.
TITLE I--GENERAL PROVISIONS
Section 101 would modernize the definitions for ``military
service,'' ``period of military service,'' and ``court''. The
section would add to the definition for ``military service''
the provision from section 305 of Public Law 107-330 (116 Stat.
2821, tit. III, sec. 305) that extends coverage under the Act
to members of the National Guard called to active service by
the President or Secretary of Defense for more than 30
consecutive days under section 502(f) of title 32, United
States Code, for the purpose of responding to national
emergencies. The section would also expand the term ``court''
to expressly include administrative agencies. Civil matters
handled in 1940 as judicial proceedings are often dealt with as
administrative proceedings today. American courts have been
divided on whether Congress intended the Act to apply to
administrative proceedings. These proceedings, including family
law cases, would now clearly be subject to the Act.
Section 101 would also add definitions for the terms
``servicemember,'' ``state,'' ``Secretary concerned,'' and
``dependent.'' The Committee observes with approval that the
courts have liberally construed the term ``dependent'' over the
years to include persons whose financial support is tied to the
servicemember. See Balconi v. Dvascas, 507 N.Y.S. 2d 788
(1986). The definition does not require a family relationship
or that the individual reside in the same house. It is meant to
include parents and parents-in-law who are supported by a
servicemember, as well as disabled adult children. The
Committee believes that the critical connection for a
relationship of dependency is the financial support from the
servicemember.
The Act employs a test that a servicemember must be
``materially affected'' by military service for a number of its
protections to be available. The courts have interpreted the
term ``materially affected'' many times over the years in the
context of the effect of military service on a servicemember.
During the 1917 Congressional hearings, Major Wigmore explained
the intent behind the term:
In the original draft that read, 'unless in the
opinion of the court the defendant is not embarrassed
by reason of his military service.' The House insisted
on making that more explicit. In other words, he might
be embarrassed, but that embarrassment might not be at
all due to his having gone into the service and lost
some money thereby; so that they insisted that it
should read, unless the court shall say that the
soldier's ability 'to comply with the judgment is not
materially affected by reason of his being a soldier.'
In other words, you and I may go into the service and
may be already insolvent. The going into the service
has not made us insolvent, and there is no reason there
why legal proceedings should not go on just the same.
We have tried to hitch up those provisions so that no
relief shall be given to any person in the military
service, unless he needs the relief, just because he is
in military service. Soldiers' and Sailors' Civil
Relief Bill: Hearing on S. 2859 and H.R. 6361 Before
the Senate Subcommittee on the Judiciary, 65th Cong.,
217 (1917).
The Committee received suggestions that the term
``materially affected'' be included with the definitions of
section 101. However, the Committee has not done so because it
finds that courts, in considering the facts and circumstances
of specific cases, have generally interpreted the term in ways
that are consistent with the intent of the Act as Major Wigmore
explained it.
Section 102 would make a specific statement that the Act
``does not apply to criminal proceedings.'' This would codify
prior court decisions and clarify congressional intent. See
Dotseth v. Justice Court, Tucson, Precinct No. One, Pima
County, 427 P.2d 558 (1967).
Section 103 in addition to restating the section, would add
the term ``comaker'' to clarify the legislative intent and case
law regarding persons who qualify for extension of the Act's
protections as persons secondarily liable. Soldiers' and
Sailors' Civil Relief Act: Hearings on H.R. 7029 Before the
House Committee on Military Affairs, 77th Cong., 11 (1942);
Modern Industrial Bank v. Zaentz, 29 N.Y.S. 2d 969 (1941).
Section 104 would create a single section pertaining to
citizens serving with allied forces by combining the limited
protections of current section 512 [50 U.S.C. App. 572] with
current section 104 [50 U.S.C. App. 514]. The 1942 amendments
added section 104, which extended protection of the entire Act
to citizens serving with allied forces. The 1942 legislative
history indicates the intent of the section was to protect U.S.
citizens serving with the Canadian Royal Air Force, the British
Royal Air Force and the Flying Tigers in China. Soldiers' and
Sailors' Civil Relief Act: Hearings on H.R. 7029 Before the
House Committee on Military Affairs, 77th Cong., 12 (1942).
Further, the Act's current section 104 is inapplicable if it
appears that the person does not intend to resume citizenship,
in effect presuming that the citizen gave up or relinquished
citizenship by serving with an allied force. In Afroyim v.
Rusk, 387 U.S. 253 (1967), the U.S. Supreme Court held that
Congress does not have the power to take away citizenship
without the citizen's assent. The deletion of this language in
the new section would be consistent with this U.S. Supreme
Court ruling.
Section 108 was added in the 1991 amendments. The bill
would add subsections (5) and (6) to prohibit discriminatory
practices that have been identified since those amendments.
Section 109 would be added to incorporate legal
representatives of servicemembers into the term servicemembers
throughout the Act, to clarify that such legal representatives
can act for the servicemember in all matters covered by the
Act.
TITLE II--GENERAL RELIEF
Section 201 on protections against default judgments would
clarify that the protections under this section are intended to
apply when a servicemember does not receive notice of an action
or proceeding. The section would state plainly what should be
done when appointed counsel is unable to locate the
servicemember or determine whether a meritorious defense might
exist. See Soldiers' and Sailors' Civil Relief Bill: Hearings
on S. 2859 and H.R. 6361 Before the Senate Subcommittee on
Judiciary, 65th Cong. (1918).
In light of the realities of current legal process and
military service, the Committee recognizes the shortcomings of
section 202 as originally drafted in 1918. The 1940 Act
incorporated the 1918 Act's section on stays of proceedings
verbatim. See Civil Liabilities of Military Personnel: Hearings
on S. 4270 Before the Senate Committee on Military Affairs,
76th Cong., Vol. 1, 15 (1940) (statement of Senator Gurney).
This expanded section would require a 90-day stay upon
application of the servicemember if certain conditions are met.
With delayed mail delivery and diminished opportunities to
consult with legal counsel so common to military service, a
period of time is needed to allow an adequate opportunity for
servicemembers to consult with military or civilian counsel,
and to respond to the courts.
Since there is confusion among courts as to whether a stay
request may constitute a waiver of legal defenses, clarifying
language is included in the section reflecting the Committee's
intent that the protection provided by this section should not
serve to deprive servicemembers of other rights, such as the
right to assert lack of personal jurisdiction. See Kramer v.
Kramer, 668 S.W. 2d 457 (Tex. Ct. App. 1984) (defendant's
letter invoking the SSCRA and requesting a stay did not provide
personal jurisdiction that otherwise was lacking; contra Skates
v. Stockton, 140 Ariz. 505, 683 P. 2d 304 (Ariz. Ct. App. 1980)
(letter sent by military legal assistance attorney requesting
stay constituted a general appearance)). An application for a
stay under this section would be treated as a special
appearance.
Stays should be automatic if they meet several important
criteria which adequately place the court on notice when a case
may proceed. First, section 202 would place an obligation on
the servicemember to demonstrate material affect by providing a
factual basis for supporting the stay request. See Boone v.
Lightner, 319 U.S. 561 (1943) (trial courts must use discretion
in determining material affect based on facts presented);
Plesniak v. Wiegand, 31 Ill. 3d 923, 335 N.E. 2d 131 (Ill. App.
Ct. 1st District 1975) (party must establish that military
status is proximate cause of inability to appear); Lackey v.
Lackey, 222 Va. 49, 278 S.E. 2d 811 (Va. 1981) (affidavit from
the commander revealing sailor was serving sea duty and unable
to attend sufficient to establish right to a stay); Hibbard v.
Hibbard, 230 Neb. 364, 431 N.W. 2d 637 (Neb. 1988)
(determination of a stay depends upon the facts and
circumstances of each case). An important component of this
requirement would be the servicemember's responsibility to
provide a date on which the he or she would be available to
appear. See Tabor v. Miller, 389 F. 2d 645, cert. denied,
Stearns v. Tabor, 391 U.S. 915 (3d Cir. 1968) (servicemember
did not provide evidence it was impossible for him to appear);
Zitomer v. Holdsworth, 449 F.2d 724 (3d Cir. 1971)
(servicemember failed to avail himself of SSCRA provisions).
Second, section 202 would require a letter from the
servicemember's unit commander affirming that the
servicemember's military duty prevents an appearance. Equipped
with this information, the court would be able to make a more
informed judgment as to when the litigation may proceed. See
Hackman v. Postel, 675 F. Supp. 1132 (N.D. Ill. 1988). In the
interim 90 day period, the servicemember would have not only an
opportunity to retain and consult with counsel, but also a
reasonable period of time to assist in the preparation of a
defense. The issue of availability of military leave is an
important consideration affecting the determination of a
servicemember's ability to appear. See Underhill v. Barnes, 288
S.E. 2d 905 (Ga. App. 1982) (court found absence of facts about
obtaining leave helped determine the servicemember had not
exercised due diligence or acted in good faith to make himself
available for trial). The requirement that a commander
specifically address this issue would officially inform the
court that military leave is not authorized for the
servicemember. Palo v. Palo, 299 N.W. 2d 577 (S.Ct. S.D. 1980)
(appellant failed to show leave was unavailable or any attempt
to obtain leave, therefore, no protection was provided under
the SSCRA).
Recognizing the current nature of military deployments,
many of which extend beyond 90 days, section 202 would permit
requests for additional stays containing the same relevant
information. This would enable a court to make a factual
determination regarding the continuing material affect of
military duty on a servicemember's ability to appear. Unlike
the initial application, approval of this further stay would be
within the court's discretion. The court would be expected to
consider the equities of all parties involved in granting an
additional stay, but military service should not place a
servicemember at a geographic or legal disadvantage. See Keefe
v. Spangenberg, 533 F. Supp. 49 (W.D. Ok. 1981). A requirement
would also be included in section 202 that counsel be appointed
to protect the servicemember's rights if an additional stay
request is denied.
Section 206 would replace the term ``government'' with ``a
State (or political subdivision if a State) or the United
States'' to clarify the intent that this section on the tolling
of statutes of limitations would apply to all levels of
government: local, state and federal. See Parker v. State, 57
N.Y.S. 2d 242 (Ct. Cl. 1945); Calderon v. City of New York, 55
N.Y.S. 2d 674 (Sup. Ct. 1945); Shell Oil Co. v. Industrial
Comm'n, 94 N.E. 2d 888 (1950). This section would add a
specific provision on redemption of real property. To
consolidate similar sections, subsection (c) would incorporate
section 207 of the current Act on the tolling of internal
revenue laws.
To resolve lingering questions about congressional intent,
section 207 (dealing with the maximum rate of interest on debts
incurred before military service) would clearly provide that
interest above the 6 percent rate is to be forgiven, and that
the amount of the monthly payment is to be reduced. Not to
forgive interest above the 6 percent maximum rate would place
the servicemember in precisely the same financial dilemma
Congress sought to ameliorate with the 1942 amendments. See H.
Rept. 2198, 4 (1942). In addition, section 207 would clarify
that joint debts between a servicemember and his or her spouse
are entitled to the 6 percent interest relief protection.
The original section provided no guidance on how the
servicemember should initiate an interest rate reduction. The
Committee believes the burden should be on the servicemember to
inform the creditor of the order for military service within a
specific time. Section 207 would codify the practices
established during the Persian Gulf War. The servicemember
would be required to submit to the creditor written notice and
a copy of military orders. These orders indicate the period of
time for which the servicemember is called to duty. If there is
an extension of the military duty obligation, the servicemember
receives amended orders and would be required to provide the
amended orders to the creditor in order to extend further the 6
percent protection. The Committee notes that, while the section
would allow for notice to the creditor of up to 180 days after
the servicemember's termination or release from military
service, it would obviously be of advantage to servicemembers
to provide notice to creditors more quickly so that their
monthly payments are reduced during the period of military
service when their income may be reduced.
The Committee expects that the written notice by the
Secretary concerned to the servicemembers and persons about to
enter military service, as required by section 105 regarding
the protections of the Act, would include specific information
concerning the reduction in the interest rate and the
responsibility of the servicemember to provide notice of
military service to the creditor.
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
Section 301, which addresses evictions and distress, would
include the parenthetical, ``(or another person with paramount
title),'' to eliminate the conflict between courts regarding
the relationship required to invoke the eviction protections of
this section. See Clinton Cotton Mills v. United States, 164
F.2d 173 (4th Cir. 1947) (holding that if a person merely has
superior title and attempts to evict a servicemember, the Act's
protections apply); but see Arkless v. Kilstein et al., 61 F.
Supp. 886 (E.D. Pa. 1944) (holding that there must be an actual
landlord-tenant relationship). The words ``intended to be
occupied'' would be added to eliminate any question about the
section's coverage when a servicemember has signed a contract
or deposited money for premises, but is unable to initiate or
complete occupancy due to military service. Also, the maximum
rental amount for which eviction protection is available would
be increased from $1200 to $1,700, and automatic increases in
coverage would be tied to the Consumer Price Index for
residential rent maintained by the Bureau of Labor Statistics.
This would cure the recurring problem of the section's coverage
lagging behind inflation. The Committee observes that the
rental amount has been raised only three times in more than
sixty years.
Section 302, which addresses protection under installment
contracts for purchase or lease, would remove the language
``with a view to purchase'' from the current provision to
expand the section's protections to non-purchase leases,
including leases for automobiles, business or professional
equipment, farm equipment and other similar property.
Section 303(c) on mortgages and trust deeds removes the
words ``unless upon an order previously granted by the court''
and inserts the words ``upon a court order granted before such
sale, foreclosure, or seizure.'' Two courts construing the
original language have disagreed as to when the order must have
been previously granted. One court held that the order must
have been granted prior to the servicemember's entry onto
active duty. Stability Building and Loan Ass'n v. Liebowitz,
132 N.J. Eq. 477, 28 A. 2d 653 (1942). Another court held that
the order must issue prior to foreclosure on the property
rather than entry onto active duty. Syracuse Savings Bank v.
Brown, 181 Misc. 999, 42 N.Y.S. 2d 156 (N.Y. Sup. Ct. 1943).
The Committee believes the latter interpretation is the correct
view, being more consistent with the provision's language, ``In
any proceedings commenced in any court during the period of
military service. . . .''
Section 305 would create a new protection for a
servicemember who, while in military service, executes a lease
and thereafter receives military orders for a permanent change
of station (PCS) or deployment with a military unit for at
least 90 days. The need for this protection is demonstrated by
the situation of unmarried servicemembers who are forced to pay
rent for an entire term on premises that can go unoccupied for
many months due to rapid and unexpected deployments around the
world. Leases that include a military clause do not generally
protect a servicemember ordered to deploy (not a PCS) with a
unit. In addition, this section would add the words ``security
deposit'' to the penalty section to deter landlords from
wrongfully keeping security deposits when servicemembers are
required to break a lease due to military requirements. See
Patrikes et al. v. J.C.H. Service Stations Inc., 180 Misc. 917,
41 N.Y.S. 2d 158 (N.Y. City Ct.), aff'd, 180 Misc. 927, 46
N.Y.S. 2d 233 (N.Y. Sup. Ct.1943) (court held ``the lessor
should not be permitted to retain a security for the faithful
performance of that which has become impossible through the
command of the sovereign.'')
Section 306, protection of life insurance policy, and
section 307 of the bill, enforcement of storage liens, would be
technical revisions that divide the subject matter of current
section 305 into two new sections.
Section 308, which concerns extension of the Act's
protections to dependents, replaces the term ``materially
impaired,'' a holdover from the 1918 version of the SSCRA, with
the term ``materially affected'' to maintain consistent usage
throughout the restated Act.
TITLE IV--LIFE INSURANCE
Coverage under this title applies to commercial life
insurance policies in order to protect a servicemember's
dependents from sudden destitution in the event of the
servicemember's death. The period during which a servicemember
may purchase an insurance policy eligible for the Act's
protection was retained at not less than 180 days prior to
entry in military service.
Section 402 addresses life insurance rights and
protections. It would increase the amount of life insurance
coverage protected from $10,000 to $250,000, or an amount equal
to the Servicemembers' Group Life Insurance (SGLI) maximum
limit, whichever is greater. The amount of life insurance
covered by this provision has not been increased since the 1940
Act and obviously lags far behind today's life insurance needs.
Indexing the amount to the maximum coverage authorized under
the SGLI program would permit prospective increases in coverage
commensurate with increases in SGLI, which has had adequate
increases in maximum coverage.
Section 408, concerning regulations, and section 409,
concerning review of findings of fact and conclusions of law,
are technical revisions that divide the subject matter of
current section 407 of the Act into two new sections. Section
409 would strike the current language of section 407 that
states findings of facts and conclusions of law made by the
Secretary of Veterans Affairs are final and would replace it
with language permitting review of the Secretary's
determination regarding finding of facts and conclusions of law
by the Board of Veterans' Appeals and the United States Court
of Appeals for Veterans Claims. This revision would conform the
Act to the Veterans' Judicial Review Act, Public Law 100-687
(1988).
TITLE V--TAXES AND PUBLIC LANDS
Section 501 on taxes respecting personal property, money,
credits and real property would add an additional subsection
clearly stating that this section applies to joint ownership of
all forms of personal and real property by a servicemember and
his or her dependents. This would relieve servicemembers from
having to title property solely in their own name to ensure the
protections of this section in a state where they live pursuant
to military orders but are not state residents. Titling
property solely in the servicemember's name for tax purposes
also may create probate difficulties for servicemembers or
their heirs if property is not jointly titled upon death.
However, the most common difficulty is in the area of
automobile titling. Separate titling of automobiles by
servicemembers to avail themselves of the protections of the
current provision, when they would prefer joint titling,
undercuts the overall SSCRA policy objective of protecting the
civil legal rights of servicemembers and their dependents.
The restatement would omit the provisions of sections 502,
503, and 510 of the current Act on homestead protections for
servicemembers because the Federal Land Management and Policy
Act of 1976 (43 U.S.C. 1701 et seq.) repealed all homestead
laws applying to public lands in title 43, United States Code.
The restatement would also omit the provisions of section 508
of the current Act on suspension of residency requirements
concerning irrigation rights of servicemembers because the
section is no longer needed. Under section 390kk of title 43,
United States Code, the Reclamation Reform Act of 1982,
residency is no longer required for delivery of irrigation
water.
Section 508 on land rights of servicemembers would restate
the language that entitles servicemembers under the age of 21
to the same rights as servicemembers who are 21 years of age
under the laws relating to lands owned or controlled by the
United States. This section creates an exception to 43 CFR
2521.1, which designates categories regarding land entry and
sets an age requirement of 21.
Section 511 on residence for tax purposes would add clear
guidance in subsection (d) that a nonresident servicemember's
military compensation cannot be used to increase the tax
liability for other income of the servicemember or spouse. See
United States v. Kansas, 810 F.2d 935 (10th Cir. 1987). Some
state taxation schemes calculate the tax bracket of a
nonmilitary spouse who earns income in the state by including
the servicemember's military income if the couple files a joint
federal return. The result is an increase in the
servicemember's family tax burden, which the Committee believes
is contrary to the purposes of the Act. This new provision
would prohibit this type of taxation.
Section 511 also codifies in subsection (e) existing case
law concerning personal income of Indians. McClanahan v.
Arizona State Tax Commission, 411 U.S. 164 (1973) (Indians who
reside on a Federal Indian Reservation are not subject to state
income taxation on income earned exclusively on the
reservation.) Because servicemembers are considered to be
liable to taxation only by their jurisdiction of residence or
domicile, the same principle should hold true for Indians
possessing a Federal Indian Reservation residence or domicile.
TITLE VI--ADMINISTRATIVE REMEDIES
The restatement would omit the provision of section 603 of
the current Act on severability because the U.S. Supreme Court
has clearly indicated that invalid portions of statutes are to
be severed ``unless it is evident that the Legislature would
not have enacted those provisions which are within its powers,
independently of that which is not''. INS v. Chadha, 462 U.S.
919, 931 (1983). Therefore, a severability clause is
unnecessary.
The restatement would also omit section 604 of the current
Act on termination of the Act because the Military Selective
Service Act, (50 U.S.C App. 464), made the SSCRA applicable to
all servicemembers until it is either repealed or terminated by
a subsequent act. Therefore, a section stating a specific
termination date is unnecessary.
TITLE VII--FURTHER RELIEF
Section 703 on professional liability protection would add
legal services to the express coverage of the provision.
Attorneys take out professional liability insurance in a
similar manner and for similar reasons as medical
professionals. The Committee notes that the Secretary of
Defense would continue under this section to have discretion to
make a determination on coverage for other types of
professional services. However, the Committee finds that
sufficient numbers of attorneys serve in the reserve components
to warrant their specific statutory inclusion.
Section 704 on health insurance reinstatement would add a
new provision specifying that a servicemember must file an
application for reinstatement not later than 120 days after
termination or release from military service. The current
section 703 of the Act provides no guidance on how long a
servicemember has to file for reinstatement.
Section-By-Section Analysis
Parallel statutory references are first to the Soldiers'
and Sailors' Civil Relief Act of 1940 (the Act), Public Law
861, 76th Congress; and then to title 50, United States Code
Appendix, e.g., ``section 100 of the Act [50 U.S.C. App.
510].''
Section 1 of the bill would amend the Soldiers' and
Sailors' Civil Relief Act of 1940 as follows:
Section 1(a) would provide that the short title of the Act
may be cited as the ``Servicemembers Civil Relief Act.'';
section 1(b) is the table of contents consisting of titles I
through VII.
Section 2 would amend section 100 of the Act [50 U.S.C.
App. 510] by restating the purposes of the Act and would
further amend section 510 by adding the temporary suspension of
administrative proceedings to the proceedings explicitly
covered by the Act.
Title I--General Provisions
Section 101(1) would amend section 101 of the Act [50
U.S.C. 511] by defining the term ``servicemember'' as meaning a
``member of the uniformed services'' as defined in section
101(a)(5) of title 10, United States Code.
Section 101(2) would amend section 101 of the Act [50
U.S.C. 511(1)] by defining the term ``military service'' as
meaning for a member of the Army, Navy, Air Force, Marine
Corps, or Coast Guard, active duty as defined in section
101(d)(1) of title 10, United States Code, and for a member of
the National Guard, active service authorized by the President
or Secretary of Defense for 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 term ``military service''
replaces the current definition for the terms ``person in the
military service,'' ``persons in the military service,'' and
``persons in the military service of the United States.''
Section 101(3) would amend section 101(2) of the Act [50
U.S.C. App. 511(2)] by restating the definition of ``period of
military service'' in modern legislative language.
Section 101(4) would amend section 101 of the Act [50
U.S.C. App. 511] by defining the term ``dependent'' as meaning
the servicemember's spouse, child (as defined in section 101(4)
of title 38, United States Code), or an individual for whom the
servicemember provides more than one half of the support in the
180 days immediately before requesting relief under the Act.
Section 101(5) would amend section 101(4) of the Act [50
U.S.C. App. 511(4)] by expanding the definition of the term
``court'' to include an administrative agency of the United
States or any State, including any political subdivision of a
State.
Section 101(6) would amend section 101 of the Act [50
U.S.C. App. 511] by defining the term ``State'' to include a
commonwealth, territory or possession of the United States and
the District of Columbia.
Section 101(7) would amend section 101 of the Act [50
U.S.C. App. 511] by defining the term ``Secretary concerned''
with respect to a member of the armed forces, having the
meaning given in section 101(a)(9) of title 10 United State
Code; with respect to a commissioned officer of the Public
Health Service, the Secretary of Health and Human Services; and
with respect to a commissioned officer of the National Oceanic
and Atmospheric Administration, the Secretary of Commerce.
Section 101 would also amend section 101 of the Act [50
U.S.C. App. 511(3)] by omitting the definition for the term
``person'' because the definition for this term found in
section 1 of title 1, United States Code, applies to all Acts
of Congress.
Section 102 would amend section 102 of the Act [50 U.S.C.
App. 512] by restating it and dividing it into three
subsections for clarity, and adding a sentence stating that the
Act does not apply to criminal proceedings.
Section 103 would amend section 103 of the Act [50 U.S.C.
App. 513] by restating it for clarity and adding ``comakers''
to those categories of persons covered by this section.
Section 104 would amend section 104 of the Act [50 U.S.C.
App. 514] by restating it for clarity and by combining section
512 of the Act [50 U.S.C. App. 572] with it so that all
references to citizens serving with allied forces would be
contained in the same section.
Section 105 would amend section 105 of the Act [50 U.S.C.
App. 515] by restating it to require the Secretary concerned to
give written notice to persons in military service and persons
entering military service of their benefits under the Act, and
by deleting reference to the Director of the Selective Service.
Section 106 would amend section 106 of the Act [50 U.S.C.
App. 516] by restating it and dividing it into two subsections
for clarity.
Section 107 would amend section 107 of the Act [50 U.S.C.
App. 517] by restating it and dividing it into three
subsections for clarity.
Section 108 would amend section 108 of the Act [50 U.S.C.
App. 518] by restating it for clarity and by adding subsections
to specifically prohibit a creditor or person engaged in
assembling or evaluating consumer credit information from
annotating a servicemember's record to identify the
servicemember as a member of the National Guard or a reserve
component, and to prohibit a change in the terms offered or
conditions required for the issuance of insurance.
Section 109 would amend the Act by adding a new section
that would define a legal representative as an attorney acting
on behalf of a Servicemember or as an individual who possesses
a power of attorney; the section would also state that the term
``servicemember'' as used in the Act shall be treated as
including a reference to a servicemember's legal
representative.
Title II--General Relief
Section 201 would amend section 200 of the Act [50 U.S.C.
App. 520] by restating the provisions regarding protections of
servicemembers against default judgments for clarity. It adds
language requiring a stay of proceedings for defendants in
military service for a minimum of 90 days if the court finds
that there may be a defense that cannot be presented without
the defendant's presence or that, after due diligence, counsel
has not been able to contact the defendant or to determine if a
meritorious defense exists. It also adds language that clearly
distinguishes between a court granted stay of proceeding prior
to default judgment and a stay of proceeding made at the
request of the servicemember under section 202 of this Act when
the servicemember has notice of a hearing. It allows a
servicemember to apply to a court to vacate or set aside
default judgments entered within 60 days, rather than within 30
days, after the servicemember's termination or release from
military service.
Section 202 would amend section 201 of the Act [50 U.S.C.
App. 521] by restating the provisions regarding stay of
proceedings when the servicemember defendant has notice for
clarity. It expands protections by permitting a servicemember
to request a stay of proceedings within 90 days, rather than
within 60 days, after termination or release from military
service. It adds a requirement for an automatic stay of 90 days
if requested by the servicemember, if the servicemember
communicates to the court the facts stating how current
military duty materially affects the ability to appear and
states a date when the servicemember will be available to
appear and if the servicemember's commanding officer
communicates to the court that military leave is not authorized
for the servicemember. It clarifies that an application for a
stay does not constitute an appearance for jurisdictional
purposes nor does it waive any substantive or procedural
defense. It adds a procedure to request an additional stay; it
clarifies that a servicemember who is unsuccessful in obtaining
a stay under this section may not seek the protections of
section 201 and it provides that a stay of proceedings under
this section does not apply to section 301.
Section 203 would amend section 202 of the Act [50 U.S.C.
App. 522] by restating it for clarity.
Section 204 would amend section 203 of the Act [50 U.S.C.
App.523] by restating it and reorganizing its subsections; and
by expanding its protection to a court action or proceeding
against a servicemember begun before or during the
servicemember's military service or within 90 days, rather than
within 60 days, after such service terminates.
Section 205 would amend section 204 of the Act [50 U.S.C.
App. 524] by restating it by dividing it into three subsections
for clarity and by specifying that this section does not apply
to section 202 and section 701.
Section 206 would amend section 205 of the Act [50 U.S.C.
App. 525] by restating it, dividing it into three subsections
and including all provisions concerning statutes of limitations
and tolling of time periods for redemption of real property in
one section of the Act. It clarifies that it applies to both
States (including political subdivisions) and the United
States. The current section 207 of the Act regarding the
exclusion of limitations prescribed by the internal revenue
laws is placed in this section.
Section 207 would amend section 206 of the Act [50 U.S.C.
App. 526] by restating it and dividing it into four subsections
for clarity. It adds coverage of an obligation or liability
held jointly by the servicemember and the servicemember's
spouse. It clarifies that interest incurred in excess of 6
percent per year is forgiven and adds a provision that requires
reduction of the periodic payment by the amount of the interest
forgiven. It adds provisions that establish the written notice
procedure a servicemember must follow to receive the interest
rate limitation from the creditor. It specifies that the
creditor apply the interest rate limitation as of the date the
servicemember was called to military service. It clarifies that
the term ``interest'' as used in this section means simple
interest.
Title III--Rent, Installment Contracts, Mortgages, Liens, Assignment,
Leases
Section 301 would amend section 300 of the Act [50 U.S.C.
App. 530] by restating and reorganizing it. It clarifies that
this section applies to a landlord or another person with
paramount title and adds the words ``intended to be occupied''
to expand the section's protection to include premises that a
servicemember or a servicemember's dependents have not yet
occupied. It increases the maximum monthly lease amount that
qualifies for protection under this section from $1,200 to
$1,700 and adds a provision to require an annual housing price
inflation adjustment for the maximum monthly lease amount that
qualifies for the protection under this section. It adopts the
language used in title 18, United States Code, concerning
penalties. It specifies that section 202 is not applicable to
this section.
Section 302 would amend section 301 of the Act [50 U.S.C.
App. 531] by restating it for clarity. It also deletes the
language ``with a view to purchase'' regarding the types of
property the section covers in order to expand this section's
breach of contract protections to non-purchase property leases
or bailments. It adopts the language used in title 18, United
States Code, concerning penalties.
Section 303 would amend section 302 of the Act [50 U.S.C.
App. 532] by restating it for clarity and by including an
action to enforce an obligation filed within 90 days after the
servicemember's period of service as an action in which a court
may stay the proceeding or adjust a servicemember's obligation.
It adopts the language used in title 18, United States Code,
concerning penalties. It specifies that any other remedies
under law for wrongful conversion, including consequential and
punitive damages are preserved for a person claiming relief
under this section.
Section 304 would amend section 303 of the Act [50 U.S.C.
App. 533] by restating it and by dividing it into two
subsections for clarity.
Section 305 would amend section 304 of the Act [50 U.S.C.
App. 534] by restating it and dividing it into seven
subsections for clarity. It adds the words ``intended to be
occupied'' to expand the section's protection to include when a
servicemember or a servicemember's dependent has not yet
occupied the premises. It adds a new subsection that allows a
servicemember to terminate a lease of premises executed during
military service if the servicemember receives military orders
for a permanent change of station, or deployment with a
military unit for not less than 90 days. It specifically adds
``security deposit'' to personal effects or other property
covered by the penalties provision. It specifically adopts the
language used in title 18, United States Code, concerning
penalties.
Section 306 would amend section 305 of the Act [50 U.S.C.
App. 535] by restating it as a separate section on protection
of life insurance policies and by dividing it into five
subsections for clarity. It adopts the language used in title
18, United States Code, concerning penalties.
Section 307 would amend section 305 of the Act [50 U.S.C.
App. 535] by restating this provision as a separate section on
enforcement of storage liens and by dividing it into three
subsections for clarity. It adopts the language used in title
18, United States Code, concerning penalties.
Section 308 would amend section 306 of the Act [50 U.S.C.
App. 536] by restating it to improve clarity and by replacing
the term ``materially impaired'' with the term ``materially
affected'' for consistent usage throughout the Act.
Title IV--Life Insurance
Section 401 would amend section 400 of the Act [50 U.S.C.
App. 540] by restating it for clarity and by updating the
definitions of the terms ``policy,'' ``premium,'' ``insured,''
and ``insurer.''
Section 402 would amend section 401 of the Act [50 U.S.C.
App. 541] by restating it and dividing it into three
subsections for clarity. The language regarding insureds
outside the continental United States is deleted, allowing the
insured's beneficiary to apply for protection under this title
whether within the continental United States or not. It
increases the total amount of life insurance coverage
protection under this title from $10,000 to $250,000 or an
amount equal to the Servicemembers' Group Life Insurance
maximum limit, whichever is greater.
Section 403 would amend section 402 of the Act [50 U.S.C.
App. 542] by restating it and dividing it into four subsections
for clarity.
Section 404 would amend section 403 of the Act [50 U.S.C.
App. 543] by restating and dividing it into three subsections
for clarity.
Section 405 would amend section 404 of the Act [50 U.S.C.
App. 544] by restating it and dividing it into two subsections
for clarity.
Section 406 would amend section 405 of the Act [50 U.S.C.
App. 545] by restating it and dividing it into three
subsections for clarity.
Section 407 would amend section 406 of the Act [50 U.S.C.
App. 546] by restating it and dividing it into three
subsections for clarity. It expressly states that the amount
paid by the United States to an insurer under this title
becomes a debt payable to the United States by the insured that
is not dischargeable in bankruptcy proceedings.
Section 408 would amend section 407 of the Act [50 U.S.C.
App. 547] by restating it as a separate section regarding
regulations to be prescribed by the Secretary of Veterans
Affairs to implement this title.
Section 409 would amend section 407 of the Act [50 U.S.C.
App. 547] by replacing the outdated provision of section 407 on
the finality of findings of fact and conclusions of law made by
the Secretary of Veterans Affairs with language that provides
for review by the Board of Veterans' Appeals and the U.S. Court
of Appeals for Veterans Claims of findings of fact and
conclusions of law made by the Secretary of Veterans Affairs.
Title V--Taxes and Public Lands
Section 501 would amend section 500 of the Act [50 U.S.C.
App. 560] by restating it for clarity and by adding a
subsection providing that this section applies to all real and
personal property described by the section that is owned
individually by a Servicemember or jointly by a Servicemember
and a dependent or dependents.
Section 502 would amend section 501 of the Act [50 U.S.C.
App. 561] by restating it for clarity.
The bill would omit sections 502 and 503 of the Act [50
U.S.C. App. 562 and 563] on servicemember homestead protections
because the Federal Land Management and Policy Act of 1976, 43
U.S.C. 1701 et seq., repealed all homestead laws in title 43
applying to public lands.
Section 503 would amend section 504 of the Act [50 U.S.C.
App.564] by restating it for clarity and removing outdated
language.
Section 504 would amend section 505 of the Act [50 U.S.C.
App. 565] by restating it and by adding two subsections for
clarity. Outdated language is removed. The filing requirement
period is increased to 60 days after the end of the assessment
year in which military service began.
Section 505 would amend section 506 of the Act [50 U.S.C.
App. 566] by restating it for clarity.
Section 506 would amend section 507 of the Act [50 U.S.C.
App. 567] by restating it and by dividing it into two
subsections for clarity. References to the Bureau of Land
Management are replaced by references to the Department of the
Interior. It provides that affidavits made pursuant to this
section are subject to the same the penalties as prescribed by
section 1001 of title 18, United States Code.
The bill would omit section 508 of the Act [50 U.S.C. App.
568] on suspension of the Reclamation Act residence requirement
for persons in military service securing irrigation water,
because the Reclamation Reform Act of 1982, 43 U.S.C. 390kk,
eliminated the residency requirement for securing irrigation
water.
Section 507 would amend section 509 of the Act [50 U.S.C.
App. 569] by restating it and by dividing it into three
subsections to improve clarity; and by updating language of
provision to give the Secretaries concerned the responsibility
for disseminating information concerning the benefits under
Title V of this Act.
The bill would omit section 510 of the Act [50 U.S.C. App.
570] on servicemember homestead entryman protections because
the Federal Land Management and Policy Act of 1976, 43 U.S.C.
1701, repealed all homestead laws in title 43, United States
Code, applying to public lands.
Section 508 would amend section 511 of the Act [50 U.S.C.
App. 571] by restating it and by dividing it into three
subsections for clarity. Current language regarding duration,
``while this Act remains in force,'' is deleted because the Act
is now of permanent duration.
The bill would omit section 512 of the Act [50 U.S.C. App.
572] and combine its provisions with those of section 104.
Section 509 would amend the Act by adding a new section
restating the last sentence from section 507 of the Act [50
U.S.C. App. 567] and giving the Secretary of the Interior
authority to issue regulations necessary to carry out title V,
other than sections 501, 510, and 511.
Section 510 would amend section 513 of the Act [50 U.S.C.
App.573] by restating it and dividing it into four subsections
for clarity regarding the circumstance under which protection
is provided to servicemembers regarding the payment of income
taxes. It replaces the current term ``materially impaired''
with the term ``materially affected'' for consistent usage
throughout the Act.
Section 511 would amend section 514 of the Act [50 U.S.C.
App. 574] by restating it and dividing it into six subsections
for clarity. A provision is added to prohibit a tax
jurisdiction from using a nonresident servicemember's military
compensation to increase the tax liability imposed on other
income earned by the nonresident servicemember or spouse
otherwise subject to tax by the jurisdiction. A new section is
added to codify existing law that requires an Indian
servicemember whose legal residence or domicile is a Federal
Indian reservation to be taxed under the laws of the Federal
Indian reservation and not the State where the reservation is
located. A definition for the term ``tax jurisdiction,''
meaning a State or a political subdivision of a State is added.
Title VI--Administrative Remedies
Section 601 would amend section 600 of the Act [50 U.S.C.
App. 580] by restating it for clarity regarding inappropriate
use of the Act.
Section 602 would amend section 601 of the Act [50 U.S.C.
App. 581] by restating it for clarity regarding certificates of
service and persons reported missing.
Section 603 would amend section 602 of the Act [50 U.S.C.
App. 582] by restating it for clarity.
The bill would omit section 603 of the Act [50 U.S.C. App.
583] regarding severability of provisions because under current
law a severability clause is unnecessary.
The bill would omit section 604 of the Act [50 U.S.C. App.
584] regarding a termination date for the Act because under the
Military Selective Service Act, 50 U.S.C. App. 464 (1948), the
SSCRA is applicable to all servicemembers until repeal or
termination by a subsequent act.
The bill would omit section 605 of the Act [50 U.S.C. App.
585] because it is outdated.
Title VII--Further Relief
Section 701 would amend section 700 of the Act [50 U.S.C.
App. 590] by restating it and by adding an additional
subsection for clarity.
Section 702 would amend section 701 of the Act [50 U.S.C.
App. 591] by restating it and reorganizing it with one less
subsection for clarity. This section also removes the
restrictions in section 701(c) [50 U.S.C. App. 591(c)] that
limited an automatic extension of powers of attorney to those
executed during the Vietnam era and those expiring after July
31, 1990.
Section 703 would amend section 702 of the Act [50 U.S.C.
App. 592] by dividing certain subsections into paragraphs for
clarity and by expanding its coverage to expressly include
legal services.
Section 704 would amend section 703 of the Act [50 U.S.C.
App. 593] by making minor improvements to wording. It adds a
new subsection that requires the servicemember to apply for
reinstatement of health insurance within 120 days of
termination or release from military service.
Section 705 would not change section 704 of the Act [50
U.S.C. App. 594] that was added in 2001 by section 1603 Public
Law 107-107 (115 Stat. 1023, tit. XVI, sec. 1603) regarding the
guarantee of residency for military personnel for voting
purposes.
Section 2 of the bill would make conforming amendments.
Section 3 of the bill would provide that the bill applies
to any case that is not final before the date of enactment.
Performance Goals and Objectives
The application and efficacy of H.R. 100, the
Servicemembers Civil Relief Act, if enacted, would be subject
to the Committee's regular oversight. The specific requirements
of the Government Performance and Results Act of 1993 are
inapplicable.
Statement of the Views of the Administration
1. LThe Committee held hearings on H.R. 5111, a bill to which
H.R. 100 is nearly identical. The statement of Mr. Craig W.
Duehring, Acting Assistant Secretary of Defense, Reserve
Affairs, Department of Defense, before the Subcommittee on
Benefits, Committee on Veterans' Affairs, July 24, 2002:
Mr. Chairman and members of the Subcommittee, thank you for
giving me the opportunity to come before you this morning to
discuss H.R. 5111, the Servicemembers' Civil Relief Act and
H.R. 4017, the Soldiers' and Sailors' Civil Relief Equity Act.
The Department of Defense supports H.R. 5111's restatement
of the Soldiers' and Sailors' Civil Relief Act 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 of
Defense believes H.R. 5111 accomplishes this goal and would
like to thank the Committee and its staff for their work on
this important bill.
The Soldiers' and Sailors' Civil Relief Act of 1940 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, 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.
H.R. 5111 maintains 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 on-going
war 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. H.R. 5111 redrafts each
section, updating the language and removing much ambiguity.
Additionally, the Act fails to provide necessary procedural
guidance in many areas. For example, although the Act
specifically provides protections for Servicemembers in the
form of a request for a stay of proceedings, it does not
explain how to go about obtaining the needed relief. H.R. 5111
provides 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. H.R.
5111 reflects over 60 years of progress in America.
The Department of Defense has only a few concerns with H.R.
5111. First, the requirement of Section 105 that all persons in
military service and entering military service be notified in
writing of the benefits of this Act is unnecessary and would
impose a significant administrative burden that would
accomplish little. As under the current law, Congress should
allow the Military Services to choose the most appropriate
means for notifying servicemembers of their civil liability
protections. Our experience indicates that handing everyone a
list of the many provisions of this lengthy law would not be
effective. Currently, the most widely used provisions are
typically explained in briefings by legal assistance attorneys
and in command newspapers and other command information forums.
Also, servicemembers having civil legal problems are routinely
referred to a legal assistance office, where even the
infrequently used provisions of the Act are explained, if
applicable to a servicemember's situation.
Additionally, the Department would like the Committee to
consider adding language to H.R. 5111 that would define the
meaning of the important term ``material effect,'' incorporate
case law holding that the Act's protections apply to business
debts for which a servicemember is personally liable, and index
the maximum rental amount covered by section 301 to account for
inflation.
Finally, it appears that both sections 302 and 303 may have
inadvertently been drafted to include a reference to section
108. We believe that the reference should be to section 107.
Before moving to H.R. 4017, I would again like to thank the
Committee and its staff for all of the effort that has gone
into this important bill.
The Department of Defense opposes H.R. 4017.
Members of the National Guard called or ordered to duty by
a governor under section 502(f) of title 32 of the United
States Code are under the command and control of state
authorities and are subject to the laws and protections
afforded by that state. This is true even though National Guard
members serving in this status are paid by the United States. A
Congressional determination of which civil liability
protections to provide to Guardsmen serving under state control
is inconsistent with our federal system. The Department
believes the states should make this determination.
The Department would support a concurrent resolution in
which Congress would urge the states, territories, and
government of the District of Columbia to enact laws and
implement policies to provide civil liability protections
similar to those provided under the Soldiers' and Sailors'
Civil Relief Act (SSCRA) to members of their respective
National Guard when serving other than on active duty under
title 10 of the United States Code. We recently canvassed the
states and territories and found that 21 of them have laws
providing some type of SSCRA protections, with 12 of those
states providing protections that are identical or nearly
identical to those provided under SSCRA; several other states
currently are considering legislation that would extend such
protections to its Guardsmen. We appreciate this opportunity to
discuss these bills with you.
2. LA letter from Mr. Hector V. Barreto, Administrator, U.S.
Small Business Administration:
U.S. Small Business Administration,
Washington, DC, April 2, 2003
Hon. Christopher H. Smith
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC
Dear Mr. Chairman: This letter expresses the views of the
U.S. Small Business Administration (SBA) on H.R. 100, intended
to restate, clarify, and revise the Soldiers' and Sailors'
Civil Relief Act of 1940.
SBA does not have any objections to the proposed
legislation. However, we note that both the current law and the
bill reduce the interest rate of a debt to six percent only
when an individual incurs the debt in his or her own personal
capacity before being called up to active military duty. The
interest rate is not reduced to six percent, under either the
current law or H.R. 100, if the debt was incurred by the small
legal entity, (e.g. a partnership, professional corporation, or
limited liability company) owned and operated by the individual
who is called to active military service, and who is an
essential employee of the business. This issue was of interest
during the Gulf War.
SBA is authorized through the Veterans Entrepreneurship and
Small Business Development Act of 1999, PL 106-50, to provide
economic injury disaster loan assistance to small businesses
that employ a military reservist. Small businesses may apply
for SBA's Military Reservist Economic Injury Disaster Loan
(MREIDL) for up to $1.5 million if they have been financially
affected by essential employees that have been called up for
active duty during a period of military conflict. To date, SBA
has approved approximately $3 million in loans for this program
and has on-going outreach activities to inform the Armed Forces
and business community of these services.
Thank your for your continued interest in issues affecting
the small business community.
Sincerely,
Hector V. Barreto,
Administrator
Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 11, 2003
Hon. Christopher H. Smith
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. 100, 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, who can be reached at 226-2840.
Sincerely,
Douglas Holtz-Eakin,
Director
Enclosure.
Congressional Budget Office Cost Estimate
H.R. 100, Servicemembers Civil Relief Act, As ordered reported by the
House Committee on Veterans' Affairs on April 3, 2003
Summary
H.R. 100 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 H.R.
100 would cost $2 million in 2004 and $4 million over the 2004-
2008 period, assuming appropriation of the necessary amounts.
Enacting this legislation would not affect direct spending or
receipts.
H.R. 100 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 a private-sector mandate as defined
by UMRA, but CBO estimates that the cost would not exceed the
threshold established by UMRA for private-sector mandates ($117
million in 2003, adjusted annually for inflation).
Estimated cost to the Federal Government
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
$2 million in 2004 and $4 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 April 9, 2003, there were over
220,000 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
decline to about 100,000 in 2004 and about 15,000 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. The costs of this legislation fall within
budget function 700 (veterans benefits and services).
Estimated impact on state, local, and tribal governments
H.R. 100 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
payoff-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 servicemembers' 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 below
the threshold established by UMRA ($59 million in 2003,
adjusted annually for inflation).
Other provisions in H.R. 100 would restate provisions in
the Soldiers' and Sailors' Civil Relief Act of 1940 or would
otherwise have no impact on state, local, or tribal
governments.
Estimated impact on the private sector
H.R. 100 contains a private-sector mandate as defined by
UMRA. The bill requires 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 servicemember'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 of this bill would
increase the mandate by raising the monthly lease amount that
is protected to $1,700 and requiring that this amount be
adjusted annually by a housing price index. CBO estimates,
however, 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).
Estimate prepared by:
Federal Costs: Michelle S. Patterson
Impact on State, Local, and Tribal Government: Victoria
Heid Hall
Impact on the Private Sector: Adebayo Adedeji
Estimate approved by:
Peter H. Fontaine, Deputy Assistant Director for Budget
Analysis
Statement of Federal Mandates
The foregoing Congressional Budget Office estimate states
that the costs of the intergovernmental and private sector
mandates of the reported bill would not exceed the thresholds
of the Unfunded Mandates Reform Act.
Statement of Constitutional Authority
The constitutional authority for the reported bill is the
power of Congress ``to . . . provide for the common defense''
(U.S. Const. Art. I, sec. 8, cl. 1), ``to declare war'' (U.S.
Const. Art. I, sec. 8, cl. 11) and ``to raise and support
armies'' (U.S. Const. Art. I, sec. 8, cl. 12).
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 italics, existing law in which no change
is 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. 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. 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 defendant 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 leases by lessees.
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. 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; and
(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.
(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.
SEC. 102. JURISDICTION AND APPLICABILITY OF ACT.
(a) Jurisdiction.--This Act applies to--
(1) the United States;
(2) each of the States, including the political
subdivisions thereof; and
(3) all territory subject to the jurisdiction of the
United States.
(b) Applicability to Proceedings.--This Act applies to any
judicial or administrative proceeding commenced in any court or
agency in any jurisdiction subject to this Act. This Act does
not apply to criminal proceedings.
(c) Court in Which Application May Be Made.--When under this
Act any application is required to be made to a court in which
no proceeding has already been commenced with respect to the
matter, such application may be made to any court which would
otherwise have jurisdiction over the matter.
SEC. 103. PROTECTION OF PERSONS SECONDARILY LIABLE.
(a) Extension of Protection When Actions Stayed, Postponed,
or Suspended.--Whenever pursuant to this Act a court stays,
postpones, or suspends (1) the enforcement of an obligation or
liability, (2) the prosecution of a suit or proceeding, (3) the
entry or enforcement of an order, writ, judgment, or decree, or
(4) the performance of any other act, the court may likewise
grant such a stay, postponement, or suspension to a surety,
guarantor, endorser, accommodation maker, comaker, or other
person who is or may be primarily or secondarily subject to the
obligation or liability the performance or enforcement of which
is stayed, postponed, or suspended.
(b) Vacation or Set-Aside of Judgments.--When a judgment or
decree is vacated or set aside, in whole or in part, pursuant
to this Act, the court may also set aside or vacate, as the
case may be, the judgment or decree as to a surety, guarantor,
endorser, accommodation maker, comaker, or other person who is
or may be primarily or secondarily liable on the contract or
liability for the enforcement of the judgment or decree.
(c) Bail Bond Not To Be Enforced During Period of Military
Service.--A court may not enforce a bail bond during the period
of military service of the principal on the bond when military
service prevents the surety from obtaining the attendance of
the principal. The court may discharge the surety and exonerate
the bail, in accordance with principles of equity and justice,
during or after the period of military service of the
principal.
(d) Waiver of Rights.--
(1) Waivers not precluded.--This Act does not prevent
a waiver in writing by a surety, guarantor, endorser,
accommodation maker, comaker, or other person (whether
primarily or secondarily liable on an obligation or
liability) of the protections provided under
subsections (a) and (b). Any such waiver is effective
only if it is executed as an instrument separate from
the obligation or liability with respect to which it
applies.
(2) Waiver invalidated upon entrance to military
service.--If a waiver under paragraph (1) is executed
by an individual who after the execution of the waiver
enters military service, or by a dependent of an
individual who after the execution of the waiver enters
military service, the waiver is not valid after the
beginning of the period of such military service unless
the waiver was executed by such individual or dependent
during the period specified in section 106.
SEC. 104. EXTENSION OF PROTECTIONS TO CITIZENS SERVING WITH ALLIED
FORCES.
A citizen of the United States who is serving with the forces
of a nation with which the United States is allied in the
prosecution of a war or military action is entitled to the
relief and protections provided under this Act if that service
with the allied force is similar to military service as defined
in this Act. The relief and protections provided to such
citizen shall terminate on the date of discharge or release
from such service.
SEC. 105. NOTIFICATION OF BENEFITS.
The Secretary concerned shall ensure that notice of the
benefits accorded by this Act is provided in writing to persons
in military service and to persons entering military service.
SEC. 106. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES ORDERED TO
REPORT FOR MILITARY SERVICE AND TO PERSONS ORDERED
TO REPORT FOR INDUCTION.
(a) Reserves Ordered To Report for Military Service.--A
member of a reserve component who is ordered to report for
military service is entitled to the rights and protections of
this title and titles II and III during the period beginning on
the date of the member's receipt of the order and ending on the
date on which the member reports for military service (or, if
the order is revoked before the member so reports, or the date
on which the order is revoked).
(b) Persons Ordered To Report for Induction.--A person who
has been ordered to report for induction under the Military
Selective Service Act (50 U.S.C. App. 451 et seq.) is entitled
to the rights and protections provided a servicemember under
this title and titles II and III during the period beginning on
the date of receipt of the order for induction and ending on
the date on which the person reports for induction (or, if the
order to report for induction is revoked before the date on
which the person reports for induction, on the date on which
the order is revoked).
SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.
(a) In General.--A servicemember may waive any of the rights
and protections provided by this Act. In the case of a waiver
that permits an action described in subsection (b), the waiver
is effective only if made pursuant to a written agreement of
the parties that is executed during or after the
servicemember's period of military service. The written
agreement shall specify the legal instrument to which the
waiver applies and, if the servicemember is not a party to that
instrument, the servicemember concerned.
(b) Actions Requiring Waivers in Writing.--The requirement in
subsection (a) for a written waiver applies to the following:
(1) The modification, termination, or cancellation
of--
(A) a contract, lease, or bailment; or
(B) an obligation secured by a mortgage,
trust, deed, lien, or other security in the
nature of a mortgage.
(2) The repossession, retention, foreclosure, sale,
forfeiture, or taking possession of property that--
(A) is security for any obligation; or
(B) was purchased or received under a
contract, lease, or bailment.
(c) Coverage of Periods After Orders Received.--For the
purposes of this section--
(1) a person to whom section 106 applies shall be
considered to be a servicemember; and
(2) the period with respect to such a person
specified in subsection (a) or (b), as the case may be,
of section 106 shall be considered to be a period of
military service.
SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN FUTURE
FINANCIAL TRANSACTIONS.
Application by a servicemember for, or receipt by a
servicemember of, a stay, postponement, or suspension pursuant
to this Act in the payment of a tax, fine, penalty, insurance
premium, or other civil obligation or liability of that
servicemember shall not itself (without regard to other
considerations) provide the basis for any of the following:
(1) A determination by a lender or other person that
the servicemember is unable to pay the civil obligation
or liability in accordance with its terms.
(2) With respect to a credit transaction between a
creditor and the servicemember--
(A) a denial or revocation of credit by the
creditor;
(B) a change by the creditor in the terms of
an existing credit arrangement; or
(C) a refusal by the creditor to grant credit
to the servicemember in substantially the
amount or on substantially the terms requested.
(3) An adverse report relating to the
creditworthiness of the servicemember by or to a person
engaged in the practice of assembling or evaluating
consumer credit information.
(4) A refusal by an insurer to insure the
servicemember.
(5) An annotation in a servicemember's record by a
creditor or a person engaged in the practice of
assembling or evaluating consumer credit information,
identifying the servicemember as a member of the
National Guard or a reserve component.
(6) A change in the terms offered or conditions
required for the issuance of insurance.
SEC. 109. LEGAL REPRESENTATIVES.
(a) Representative.--A legal representative of a
servicemember for purposes of this Act is either of the
following:
(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 DEFENDANT 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) Automatic Stay.--
(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 Defined.--As used in this section, the term
``interest' means simple interest plus 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 $1,700, 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 under
subsection (a)(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.
(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; 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 LEASES BY LESSEES.
(a) Covered Leases.--This section applies to the 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--
(1) the lease is executed by or on behalf of a person
who thereafter and during the term of the lease enters
military service; or
(2) the servicemember, while in military service,
executes a 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.
(b) Notice to Lessor.--
(1) Delivery of notice.--A lease described in
subsection (a) is terminated when written notice is
delivered by the lessee to the lessor (or the lessor's
grantee) or to the lessor's agent (or the agent's
grantee).
(2) Time for notice.--The written notice may be
delivered at any time after the lessee's entry into
military service or the date of the military orders for
a permanent change of station or to deploy for a period
of not less than 90 days.
(3) Nature of notice.--Delivery 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 addressed
to 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.
(c) Effective Date of Termination.--
(1) Lease with monthly rent.--Termination of a lease
providing for monthly payment of rent shall be
effective 30 days after the first date on which the
next rental payment is due and payable after the date
on which the notice is delivered.
(2) Other lease.--All other leases terminate on the
last day of the month following the month in which the
notice is delivered.
(d) Arrearages in Rent.--Rents unpaid for the period
preceding termination shall be paid on a prorated basis.
(e) Rent Paid in Advance.--Rents paid in advance for a period
succeeding termination shall be refunded to the lessee by the
lessor (or the lessor's assignee or the assignee's agent).
(f) 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.
(g) 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)(1);
(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 contract
for whole, endowment, universal, or term life
insurance, 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 increase the amount of premiums if
the insured is in military service; 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 the insured, the insured's
designee, or the insured's beneficiary 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 designee, or the insured's beneficiary, as
the case may be;
(2) identify the policy and the insurer; and
(3) include an acknowledgement that the insured's
rights under the policy are subject to and modified by
the provisions of this title.
(b) Additional Requirements.--The Secretary of Veterans
Affairs may require additional information from the applicant,
the insured and the insurer to determine if the policy is
entitled to protection under this title.
(c) Notice to the Secretary by the Insured.--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 of the application for protection.
(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 may
be reviewed by the Board of Veterans' Appeals and the United
States Court of Appeals for Veterans Claims.
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; 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 State Code.
SEC. 507. DISTRIBUTION OF INFORMATION CONCERNING BENEFITS OF TITLE.
(a) Distribution of Information by Secretary Concerned.--The
Secretary concerned shall issue to servicemembers information
explaining the provisions of this title.
(b) Application Forms.--The Secretary concerned shall provide
application forms to servicemembers requesting relief under
this title.
(c) Information From Secretary of the Interior.--The
Secretary of the Interior shall furnish to the Secretary
concerned information explaining the provisions of this title
(other than sections 501, 510, and 511) and related application
forms.
SEC. 508. LAND RIGHTS OF SERVICEMEMBERS.
(a) No Age Limitations.--Any servicemember under the age of
21 in military service shall be entitled to the same rights
under the laws relating to lands owned or controlled by the
United States, including mining and mineral leasing laws, as
those servicemembers who are 21 years of age.
(b) Residency Requirement.--Any requirement related to the
establishment of a residence within a limited time shall be
suspended as to entry by a servicemember in military service
until 180 days after termination of or release from military
service.
(c) Entry Applications.--Applications for entry may be
verified before a person authorized to administer oaths under
section 1044a of title 10, United States Code, or under the
laws of the State where the land is situated.
SEC. 509. REGULATIONS.
The Secretary of the Interior may issue regulations necessary
to carry out this title (other than sections 501, 510, and
511).
SEC. 510. INCOME TAXES.
(a) Deferral of Tax.--Upon notice to the Internal Revenue
Service or the tax authority of a State or a political
subdivision of a State, the collection of income tax on the
income of a servicemember falling due before or during military
service shall be deferred for a period not more than 180 days
after termination of or release from military service, if a
servicemember's ability to pay such income tax is materially
affected by military service.
(b) Accrual of Interest or Penalty.--No interest or penalty
shall accrue for the period of deferment by reason of
nonpayment on any amount of tax deferred under this section.
(c) Statute of Limitations.--The running of a statute of
limitations against the collection of tax deferred under this
section, by seizure or otherwise, shall be suspended for the
period of military service of the servicemember and for an
additional period of 270 days thereafter.
(d) Application Limitation.--This section shall not apply to
the tax imposed on employees by section 3101 of the Internal
Revenue Code of 1986.
SEC. 511. RESIDENCE FOR TAX PURPOSES.
(a) Residence or Domicile.--A servicemember shall neither
lose nor acquire a residence or domicile for purposes of
taxation with respect to the person, personal property, or
income of the servicemember by reason of being absent or
present in any tax jurisdiction of the United States solely in
compliance with military orders.
(b) Military Service Compensation.--Compensation of a
servicemember for military service shall not be deemed to be
income for services performed or from sources within a tax
jurisdiction of the United States if the servicemember is not a
resident or domiciliary of the jurisdiction in which the
servicemember is serving in compliance with military orders.
(c) Personal Property.--
(1) Relief from personal property taxes.--The
personal property of a servicemember shall not be
deemed to be located or present in, or to have a situs
for taxation in, the tax jurisdiction in which the
servicemember is serving in compliance with military
orders.
(2) Exception for property within member's domicile
or residence.--This subsection applies to personal
property or its use within any tax jurisdiction other
than the servicemember's domicile or residence.
(3) Exception for property used in trade or
business.--This section does not prevent taxation by a
tax jurisdiction with respect to personal property used
in or arising from a trade or business, if it has
jurisdiction.
(4) Relationship to law of state of domicile.--
Eligibility for relief from personal property taxes
under this subsection is not contingent on whether or
not such taxes are paid to the State of domicile.
(d) Increase of Tax Liability.--A tax jurisdiction may not
use the military compensation of a nonresident servicemember to
increase the tax liability imposed on other income earned by
the nonresident servicemember or spouse subject to tax by the
jurisdiction.
(e) Federal Indian Reservations.--An Indian servicemember
whose legal residence or domicile is a Federal Indian
reservation shall be taxed by the laws applicable to Federal
Indian reservations and not the State where the reservation is
located.
(f) Definitions.--For purposes of this section:
(1) Personal property.--The term ``personal
property'' means intangible and tangible property
(including motor vehicles).
(2) Taxation.--The term ``taxation'' includes
licenses, fees, or excises imposed with respect to
motor vehicles and their use, if the license, fee, or
excise is paid by the servicemember in the
servicemember's State of domicile or residence.
(3) Tax jurisdiction.--The term ``tax jurisdiction''
means a State or a political subdivision of a State.
TITLE VI--ADMINISTRATIVE REMEDIES
SEC. 601. INAPPROPRIATE USE OF ACT.
If a court determines, in any proceeding to enforce a civil
right, that any interest, property, or contract has been
transferred or acquired with the intent to delay the just
enforcement of such right by taking advantage of this Act, the
court shall enter such judgment or make such order as might
lawfully be entered or made concerning such transfer or
acquisition.
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, or the
servicemember's legal representative, 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) The term ``active duty'' has the meaning given
that term in section 101(d)(1) of title 10, United
States Code.
(2) The term ``profession'' includes occupation.
(3) 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.
----------
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.).
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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) * * *
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