SCRA Enhancement and Improvement Act of 2013

SCRA Enhancement and Improvement Act of 2013 - Amends the Servicemembers Civil Relief Act (SCRA) to:

• extend the period during which a contract for the purchase of real or personal property or the lease or bailment of such property entered into by a member of the uniformed services (servicemember) may not be rescinded or terminated for a breach to one year after such member's period of military service;
• change the period during which an action to enforce a mortgage, trust deed, or other security against a servicemember is covered by a stay of proceedings or adjustment of obligation to the period in which such action is pending (instead of the period in which such action is filed);
• prohibit the accrual of a mortgage prepayment penalty incurred by a servicemember during military service;
• delay the expiration of a license issued by a state or local licensing authority to a servicemember, or a continuing education requirement to maintain such a license, to 180 days after such servicemember is no longer eligible for hostile fire or imminent danger special pay;
• expand protections against collection of taxes owned by a servicemember with respect to personal property or real property occupied for dwelling, professional, trade, business, or agricultural purposes;
• prohibit the denial of credit to a servicemember solely by reason of entitlement to protections under SCRA;
• expand due diligence requirements for determining whether an individual is a servicemember prior to taking a default judgment against such individual;
• extend the protections of SCRA to servicemembers who are personally liable as a guarantor or co-maker of a mortgage, trust deed, or other security in the nature of a mortgage;
• permit the use of arbitration to settle a dispute under SCRA;
• authorize the Attorney General to issue a civil investigate demand for documents relating to an investigation under SCRA prior to initiating a civil action for violations of such Act; and
• double the amount of civil penalties for a first violation of SCRA and for subsequent violations.
  

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1579 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1579

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 28, 2013

Mr. Sanders (for himself and Mr. Rockefeller) introduced the following 
 bill; which was read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``SCRA Enhancement 
and Improvement Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--ENHANCEMENT OF RIGHTS UNDER SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 101. Extended period of protection under installment contracts for 
                            purchase or lease.
Sec. 102. Modification of period determining which actions are covered 
                            under stay of proceedings and adjustment of 
                            obligation protections concerning mortgages 
                            and trust deeds of members of uniformed 
                            services.
Sec. 103. Prohibition on collection of penalties for early prepayment 
                            of mortgage.
Sec. 104. Protections for members of uniformed services regarding 
                            professional licenses.
Sec. 105. Expansion of protections for members of uniformed services 
                            regarding taxes respecting real property 
                            occupied by businesses owned by such 
                            members.
Sec. 106. Prohibition on denial of credit because of eligibility for 
                            protection.
       TITLE II--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 201. Improved protection of members of uniformed services against 
                            default judgments.
Sec. 202. Modification of period in which a waiver of a right pursuant 
                            to a written agreement may be made under 
                            Servicemembers Civil Relief Act.
Sec. 203. Clarification regarding application of enforcement authority 
                            of Attorney General and private right of 
                            action under Servicemembers Civil Relief 
                            Act.
Sec. 204. Expansion of protections relating to mortgages to include 
                            obligations on real or personal property 
                            for which a servicemember is personally 
                            liable as a guarantor or co-maker.
 TITLE III--ENFORCEMENT OF RIGHTS UNDER SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 301. Election of arbitration to resolve controversies under 
                            Servicemembers Civil Relief Act.
Sec. 302. Issuance and service of civil investigative demands by 
                            Attorney General under Servicemembers Civil 
                            Relief Act.
Sec. 303. Increase in civil penalties for violation of Servicemembers 
                            Civil Relief Act.
                        TITLE IV--OTHER MATTERS

Sec. 401. Clerical amendments.

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

SEC. 101. EXTENDED PERIOD OF PROTECTION UNDER INSTALLMENT CONTRACTS FOR 
              PURCHASE OR LEASE.

    Section 302(a)(1) of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 532(a)(1)) is amended, in the matter following subparagraph (B), 
by striking ``or during that person's military service'' and inserting 
``, during, or within one year after such servicemember's period of 
military service''.

SEC. 102. MODIFICATION OF PERIOD DETERMINING WHICH ACTIONS ARE COVERED 
              UNDER STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION 
              PROTECTIONS CONCERNING MORTGAGES AND TRUST DEEDS OF 
              MEMBERS OF UNIFORMED SERVICES.

    (a) In General.--Section 303(b) of the Servicemembers Civil Relief 
Act (50 U.S.C. App. 533(b)) is amended by striking ``filed'' and 
inserting ``pending''.
    (b) Conforming Amendments.--Section 710(d) of the Honoring 
America's Veterans and Caring for Camp Lejeune Families Act of 2012 
(Public Law 112-154; 126 Stat. 1208) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph (1):
            ``(1) Sunset and revival.--
                    ``(A) In general.--Subsections (b) and (c) of 
                section 303 of the Servicemembers Civil Relief Act (50 
                U.S.C. App. 533), as amended by subsections (a) and (b) 
                of this section, are amended by striking `within one 
                year' each place it appears and inserting `within 90 
                days'.
                    ``(B) Effective date.--The amendments made by 
                subparagraph (A) shall take effect on January 1, 
                2015.''; and
            (2) by striking paragraph (3).

SEC. 103. PROHIBITION ON COLLECTION OF PENALTIES FOR EARLY PREPAYMENT 
              OF MORTGAGE.

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

SEC. 104. PROTECTIONS FOR MEMBERS OF UNIFORMED SERVICES REGARDING 
              PROFESSIONAL LICENSES.

    (a) In General.--Title VII of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 701 et seq.) is amended by adding at the end the 
following new section:

``SEC. 707. PROFESSIONAL LICENSES.

    ``(a) Expiration During Period in Which Servicemembers Are Eligible 
for Hostile Fire or Imminent Danger Special Pay.--If a license issued 
by a State or local licensing authority to a servicemember would 
otherwise expire during a period in which such servicemember is 
eligible for hostile fire or imminent danger special pay under section 
310 of title 37, United States Code, such State or local licensing 
authority shall delay the expiration of such license until not earlier 
than the date that is 180 days after the date on which such period of 
eligibility ends.
    ``(b) Continuing Education Requirements During Period in Which 
Servicemembers Are Eligible for Hostile Fire or Imminent Danger Special 
Pay.--If a State or local licensing authority otherwise requires a 
servicemember to meet any continuing education requirements to maintain 
a license for a trade or profession during a period in which such 
servicemember is eligible for hostile fire or imminent danger special 
pay under section 310 of title 37, United States Code, such State or 
local licensing authority shall delay such continuing education 
requirement until not earlier than the date that is 180 days after the 
date on which such period of eligibility ends.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act (50 U.S.C. App. 501(b)) is amended by inserting after the item 
relating to section 706 the following new item:

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

SEC. 105. EXPANSION OF PROTECTIONS FOR MEMBERS OF UNIFORMED SERVICES 
              REGARDING TAXES RESPECTING REAL PROPERTY OCCUPIED BY 
              BUSINESSES OWNED BY SUCH MEMBERS.

    (a) In General.--Subsection (a)(2) of section 501 of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 561) is amended by 
striking the matter before subparagraph (A) and inserting the 
following:
            ``(2) real property occupied for dwelling, professional, 
        trade, business, or agricultural purposes by a servicemember, 
        the servicemember's dependents or employees, or a business 
        which (without regard to the form in which such profession, 
        trade, business, or agricultural operation is organized or 
        carried out) is owned entirely by a servicemember or by a 
        servicemember and the spouse of the servicemember--''.
    (b) Notice.--Such section is further amended by adding at the end 
the following new subsection:
    ``(f) Written Notice to Taxing Authorities.--In order for real 
property owned by a business which is owned entirely by a servicemember 
or by a servicemember and the spouse of the servicemember to be subject 
to the protections provided in this section, the servicemember shall 
provide to the applicable taxing authority written notice and a copy of 
the military orders calling the servicemember to military service and 
any orders further extending military service, not later than 180 days 
after the date of the servicemember's termination or release from 
military service.''.

SEC. 106. PROHIBITION ON DENIAL OF CREDIT BECAUSE OF ELIGIBILITY FOR 
              PROTECTION.

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

       TITLE II--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

SEC. 201. IMPROVED PROTECTION OF MEMBERS OF UNIFORMED SERVICES AGAINST 
              DEFAULT JUDGMENTS.

    (a) Modification of Plaintiff Affidavit Filing Requirement.--
            (1) In general.--Paragraph (1) of section 201(b) of the 
        Servicemembers Civil Relief Act (50 U.S.C. App. 521(b)) is 
        amended--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and indenting such 
                clauses two ems to the right;
                    (B) in the matter before clause (i), as 
                redesignated by subparagraph (A), by striking ``In 
                any'' and inserting the following:
                    ``(A) In general.--In any''; and
                    (C) by adding at the end the following new 
                subparagraph (B):
                    ``(B) Due diligence.--Before filing the affidavit, 
                the plaintiff shall conduct a diligent and reasonable 
                investigation to determine whether or not the defendant 
                is in military service, including a search of available 
                records of the Department of Defense and any other 
                information reasonably available to the plaintiff. The 
                affidavit shall set forth all steps taken to determine 
                the defendant's military status and shall have attached 
                copies of the records on which the plaintiff relied in 
                drafting the affidavit.''.
            (2) Applicability.--Paragraph (1)(B) of such section, as 
        added by paragraph (1), shall apply with respect to actions and 
        proceedings filed on or after the date of the enactment of this 
        Act.
    (b) Appointment of Attorney To Represent Defendant in Military 
Service.--Paragraph (2) of such section (50 U.S.C. App. 521(b)) is 
amended--
            (1) by striking ``If in an action'' and inserting the 
        following:
                    ``(A) In general.--If in an action'';
            (2) in subparagraph (A), as designated by paragraph (1), by 
        striking ``If an attorney'' and inserting the following:
                    ``(C) Limitations on appointed attorney.--If an 
                attorney'';
            (3) by inserting after subparagraph (A), as designated by 
        paragraph (1), the following new subparagraph:
                    ``(B) Due diligence.--If the court appoints an 
                attorney to represent the defendant--
                            ``(i) the attorney shall conduct a diligent 
                        and reasonable investigation to determine 
                        whether or not the defendant is in military 
                        service, including a search of available 
                        records of the Department of Defense and any 
                        other information reasonably available to the 
                        attorney; and
                            ``(ii) the plaintiff shall submit to the 
                        attorney such information as the plaintiff may 
                        have concerning the whereabouts or identity of 
                        the defendant.''; and
            (4) by adding at the end the following new subparagraph:
                    ``(D) Treatment of attorneys fees.--The reasonable 
                fees of an attorney appointed to represent a 
                servicemember shall be treated as costs of court for 
                court cost purposes, unless the creditor seeks relief 
                from such charges from the court.''.

SEC. 202. MODIFICATION OF PERIOD IN WHICH A WAIVER OF A RIGHT PURSUANT 
              TO A WRITTEN AGREEMENT MAY BE MADE UNDER SERVICEMEMBERS 
              CIVIL RELIEF ACT.

    Section 107(a) of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 517) is amended in the third sentence by striking ``during or 
after the servicemember's period of military service'' and inserting 
``after the occurrence of the event that gave rise to the rights or 
protections to be waived''.

SEC. 203. CLARIFICATION REGARDING APPLICATION OF ENFORCEMENT AUTHORITY 
              OF ATTORNEY GENERAL AND PRIVATE RIGHT OF ACTION UNDER 
              SERVICEMEMBERS CIVIL RELIEF ACT.

    Sections 801 and 802 of the Servicemembers Civil Relief Act (50 
U.S.C. App. 597 and 597a) shall apply as if such sections were included 
in the enactment of the Soldiers' and Sailors' Civil Relief Act of 1940 
(54 Stat. 1178, chapter 888) and included in the restatement of such 
Act in Public Law 108-189.

SEC. 204. EXPANSION OF PROTECTIONS RELATING TO MORTGAGES TO INCLUDE 
              OBLIGATIONS ON REAL OR PERSONAL PROPERTY FOR WHICH A 
              SERVICEMEMBER IS PERSONALLY LIABLE AS A GUARANTOR OR CO-
              MAKER.

    Section 303(a) of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 533) is amended, in the matter before paragraph (1), by inserting 
``or an obligation on real or personal property for which a 
servicemember is personally liable as a guarantor or co-maker'' after 
``by a servicemember''.

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

SEC. 301. ELECTION OF ARBITRATION TO RESOLVE CONTROVERSIES UNDER 
              SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) In General.--Section 102 of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 512) is amended by adding at the end the following new 
subsection:
    ``(d) Election of Arbitration.--
            ``(1) Consent required.--Notwithstanding any other 
        provision of law, whenever a contract with a servicemember 
        provides for the use of arbitration to resolve a controversy 
        subject to a provision of this Act and arising out of or 
        relating to such contract, arbitration may be used to settle 
        such controversy only if, after such controversy arises, all 
        parties to such controversy consent in writing to use 
        arbitration to settle such controversy.
            ``(2) Explanation required.--Notwithstanding any other 
        provision of law, whenever arbitration is elected to settle a 
        dispute pursuant to paragraph (1), the arbitrator shall provide 
        the parties to such contract with a written explanation of the 
        factual and legal basis for any decision made by the arbitrator 
        in the course of such arbitration.''.
    (b) Applicability.--Subsection (d) of such section, as added by 
subsection (a), shall apply with respect to contracts entered into, 
amended, altered, modified, renewed, or extended after the date of the 
enactment of this Act.

SEC. 302. ISSUANCE AND SERVICE OF CIVIL INVESTIGATIVE DEMANDS BY 
              ATTORNEY GENERAL UNDER SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) In General.--Section 801 of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 597) is amended by adding at the end the following:
    ``(d) Issuance and Service of Civil Investigative Demands.--
            ``(1) In general.--Whenever the Attorney General has reason 
        to believe that any person may be in possession, custody, or 
        control of any documentary material relevant to an 
        investigation under this Act, the Attorney General may, before 
        commencing a civil action under subsection (a), issue in 
        writing and serve upon such person, a civil investigative 
        demand requiring--
                    ``(A) the production of such documentary material 
                for inspection and copying;
                    ``(B) that the custodian of such documentary 
                material answer in writing written questions with 
                respect to such documentary material; or
                    ``(C) the production of any combination of such 
                documentary material or answers.
            ``(2) False claims.--The provisions of section 3733 of 
        title 31, United States Code, governing the authority to issue, 
        use, and enforce civil investigative demands shall apply with 
        respect to the authority to issue, use, and enforce civil 
        investigative demands under this section, except that, for 
        purposes of applying such section 3733--
                    ``(A) references to false claims law investigators 
                or investigations shall be considered references to 
                investigators or investigations under this Act;
                    ``(B) references to interrogatories shall be 
                considered references to written questions, and answers 
                to such need not be under oath;
                    ``(C) the definitions relating to `false claims 
                law' shall not apply; and
                    ``(D) provisions relating to qui tam relators shall 
                not apply.
            ``(3) Annual report.--
                    ``(A) In general.--Not later than one year after 
                the date of the enactment of the SCRA Enhancement and 
                Improvement Act of 2013 and not less frequently than 
                once each year thereafter, the Attorney General shall 
                submit to the Committee on Veterans' Affairs of the 
                Senate and the Committee on Veterans' Affairs of the 
                House of Representatives a report on the issuance of 
                civil investigative demands under this subsection 
                during the previous one-year period.
                    ``(B) Elements.--Each report submitted under 
                subparagraph (A) shall include the following for the 
                year covered by the report:
                            ``(i) The number of times that a civil 
                        investigative demand was issued under this 
                        subsection.
                            ``(ii) For each civil investigative demand 
                        issued under this subsection with respect to an 
                        investigation, whether such investigation 
                        resulted in a settlement or conviction.''.
    (b) Effective Date.--Subsection (d) of such section, as added by 
subsection (a), shall take effect on the date of the enactment of this 
Act and shall apply with respect to all violations of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.), 
regardless of when the violations are alleged to have occurred.

SEC. 303. INCREASE IN CIVIL PENALTIES FOR VIOLATION OF SERVICEMEMBERS 
              CIVIL RELIEF ACT.

    (a) In General.--Section 801(b)(3) of the Servicemembers Civil 
Relief Act (50 U.S.C. App. 597(b)(3)) is amended--
            (1) in subparagraph (A), by striking ``$55,000'' and 
        inserting ``$110,000''; and
            (2) in subparagraph (B), by striking ``$110,000'' and 
        inserting ``$220,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 180 days after the date of the 
enactment of this Act and shall apply with respect to violations of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) that occur 
on or after such date.

                        TITLE IV--OTHER MATTERS

SEC. 401. CLERICAL AMENDMENTS.

    (a) In General.--The heading for section 305 of the Servicemembers 
Civil Relief Act (50 U.S.C. App. 535) is amended by striking 
``residential or motor vehicle leases'' and inserting ``leases of 
premises occupied and motor vehicles used''.
    (b) Table of Contents.--The table of contents in section 1(b) of 
such Act (50 U.S.C. App. 501(b)) is amended by striking the item 
relating to section 305 and inserting the following new item:

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