Federal Employees Civil Relief Act
This bill establishes a framework to temporarily suspend certain judicial and administrative proceedings against a federal employee or contractor during a shutdown.
Under the bill, a shutdown is a period in which (1) there is more than a 24-hour lapse in appropriations for any federal agency or department because a regular appropriations bill or a continuing resolution has not been enacted, or (2) the debt of the federal government is greater than the statutory limit.
A federal worker (i.e., an employee of a government agency or contractor) who is furloughed or required to work without pay during a shutdown may apply to a court for a temporary stay, postponement, or suspension with respect to any payment of rent, mortgage, tax, fine, penalty, insurance premium, student loan repayment, or other civil obligation or liability that the worker owes or would owe during the duration of the shutdown.
The bill includes related provisions that restrict evictions, foreclosures, the enforcement of liens, and the termination of insurance policies during a shutdown. It also provides for the deferral of federal income taxes and student loan payments during a shutdown.
The Department of Justice may commence a civil action against any person who engages in (1) a pattern or practice of violating the requirements of this bill, or (2) a violation that raises an issue of significant public importance. A person aggrieved by a violation of this bill's requirements may also bring a private right of action.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1301 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1301
To suspend the enforcement of certain civil liabilities of Federal
employees and contractors during a lapse in appropriations, or during a
breach of the statutory debt limit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 1, 2023
Mr. Kilmer (for himself, Mr. Connolly, and Mr. Boyle of Pennsylvania)
introduced the following bill; which was referred to the Committee on
Oversight and Accountability, and in addition to the Committees on
Financial Services, Ways and Means, the Judiciary, Education and the
Workforce, and House Administration, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To suspend the enforcement of certain civil liabilities of Federal
employees and contractors during a lapse in appropriations, or during a
breach of the statutory debt limit, 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.
This Act may be cited as the ``Federal Employees Civil Relief
Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to provide for the temporary suspension
of judicial and administrative proceedings and transactions that may
adversely affect the civil rights of Federal workers during a shutdown.
SEC. 3. DEFINITIONS.
In this Act:
(1) Consumer reporting agency.--The term ``consumer
reporting agency'' has the meaning given the term in section
603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)).
(2) Contractor.--The term ``contractor'' has the meaning
given the term in section 7101 of title 41, United States Code.
(3) Court; judgment; state.--The terms ``court'',
``judgment'', and ``State'' have the meanings given those terms
in section 101 of the Servicemembers Civil Relief Act (50
U.S.C. 3911).
(4) Covered period.--The term ``covered period'' means the
period beginning on the date on which a shutdown begins and
ending on the date that is 30 days after the date on which that
shutdown ends.
(5) Federal worker.--The term ``Federal worker''--
(A) means an employee of a Government agency; and
(B) includes an employee of a contractor.
(6) Government agency.--The term ``Government agency''
means each authority of the executive, legislative, or judicial
branch of the Government of the United States.
(7) Shutdown.--The term ``shutdown'' means any period in
which--
(A) there is more than a 24-hour lapse in
appropriations for any Government agency or Federal
department as a result of a failure to enact a regular
appropriations bill or continuing resolution; or
(B) the debt of the United States Government is
greater than the statutory limit under section 3101 of
title 31, United States Code.
SEC. 4. JURISDICTION.
(a) Jurisdiction.--This Act shall apply to--
(1) the United States;
(2) each of the States, including each political
subdivision of a State; and
(3) all territory that is subject to the jurisdiction of
the United States.
(b) Applicability to Proceedings.--This Act--
(1) shall apply to any judicial or administrative
proceeding that is commenced in any court or agency in any
jurisdiction that is subject to this Act; and
(2) shall not apply to criminal proceedings or with respect
to child support payments.
(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 a matter, that
application may be made to any court that would otherwise have
jurisdiction over the matter.
(d) Notification.--
(1) In general.--The head of the Government agency that
employs a Federal worker, or at which a Federal worker performs
services, as applicable, shall provide the Federal worker with
written notice regarding the benefits provided under this Act--
(A) on the date on which the individual becomes a
Federal worker; and
(B) periodically after the date described in
subparagraph (A), including on the date on which any
shutdown begins.
(2) Legislative and judicial branch.--With respect to a
Federal worker in a Government agency in the legislative branch
or judicial branch, (or, in the case of a Federal worker who is
an employee of a contractor, who provides services at a
Government agency in the legislative branch or judicial
branch), the officer or employee at the Government agency who
has the final authority to appoint, hire, discharge, and set
the terms, conditions, or privileges of the employment of the
Federal worker shall provide the notice required under
paragraph (1).
SEC. 5. ANTICIPATORY RELIEF.
A Federal worker who is furloughed or required to work without pay
during a shutdown may apply to a court for a temporary stay,
postponement, or suspension with respect to any payment of rent,
mortgage, tax, fine, penalty, insurance premium, student loan
repayment, or other civil obligation or liability that the Federal
worker or individual, as applicable, owes or would owe during the
duration of the shutdown.
SEC. 6. EVICTIONS.
(a) Court-Ordered Eviction.--Except by the order of a court, a
landlord may not, during a shutdown--
(1) evict a Federal worker from premises that are occupied
or intended to be occupied primarily as a residence; or
(2) subject premises described in paragraph (1) to a
distress.
(b) Stay of Execution.--
(1) Court authority.--Upon an application for eviction or
distress with respect to premises described in subsection
(a)(1), a court may, upon motion of the court, and shall, if a
request is made by or on behalf of a Federal worker, the
ability of whom to pay the rent that is the subject of the
action is materially affected by a shutdown--
(A) stay the proceedings for a period of 30 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 court grants a stay under
paragraph (1), the court may grant to the landlord (or other
person with paramount title) such relief as equity may require.
(c) Misdemeanor.--Except as provided in subsection (a), a person
that knowingly takes part in an eviction or distress described in that
subsection, or that knowingly attempts to take part in an eviction or
distress described in that subsection, shall be fined as provided in
title 18, United States Code, or imprisoned for not more than 1 year,
or both.
SEC. 7. MORTGAGE PROTECTION AND FORECLOSURES.
(a) Definition.--In this section, the term ``covered action'' means
an action relating to an obligation--
(1) with respect to real or personal property owned by a
Federal worker; and
(2) that--
(A) originated before the date on which a shutdown
begins;
(B) is in effect on the date on which a shutdown
begins; and
(C) is secured by a mortgage, trust deed, or other
security in the nature of a mortgage.
(b) Stay of Proceedings and Adjustment of Obligation.--If a covered
action is filed in a court during a covered period, the court may,
after a hearing and upon the motion of the court, and shall, upon
application by the Federal worker if the ability of the Federal worker
to comply with the covered obligation is materially affected by the
shutdown--
(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) by a
Federal worker shall not be valid if made during a covered period
except upon the order of a court that is granted before that sale,
foreclosure, or seizure, as applicable, with a return made and approved
by the court.
(d) Misdemeanor.--A person that knowingly makes or causes to be
made a sale, foreclosure, or seizure of property that is prohibited
under subsection (c), or that knowingly attempts to make or cause to be
made a sale, foreclosure, or seizure of property that is prohibited
under that subsection, shall be fined as provided in title 18, United
States Code, or imprisoned for not more than 1 year, or both.
SEC. 8. LIENS.
(a) Liens.--
(1) Definition.--In this subsection, the term ``lien''
includes--
(A) a lien--
(i) for storage, repair, or cleaning of the
property or effects of a Federal worker; and
(ii) on the property or effects described
in clause (i) for any reason other than a
reason described in that clause; and
(B) a loan that a Federal worker has obtained with
respect to a motor vehicle.
(2) Limitation on foreclosure or enforcement.--A person
holding a lien on the property or effects of a Federal worker
may not, during a covered period, foreclose on or enforce that
lien without the order of a court that was issued before the
date on which that foreclosure or enforcement occurs.
(b) Stay of Proceedings.--In a proceeding to foreclose on or
enforce a lien that is subject to this section, a court may, upon the
motion of the court, and shall, if requested by a Federal worker, the
ability of whom to comply with the obligation resulting in the
proceeding is materially affected by a shutdown--
(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.
(c) Misdemeanor.--A person that knowingly takes an action that
violates this section, or attempts to take an action that violates this
section, shall be fined as provided in title 18, United States Code, or
imprisoned for not more than 1 year, or both.
SEC. 9. STUDENT LOANS.
(a) Definition of Student Loan.--In this section, the term
``student loan'' means the following:
(1) A loan made, insured, or guaranteed under title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.),
including any Federal Direct Stafford Loan, Federal Direct
Unsubsidized Stafford Loan, Federal Direct PLUS Loan, or
Federal Direct Consolidation Loan.
(2) A private education loan, as such term is defined in
section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
(b) Application to Student Loans.--This section shall apply to any
situation in which--
(1) the student loan payment of a Federal worker falls due
or remains unpaid during a shutdown; and
(2) during the shutdown described in paragraph (1), the
Federal worker described in that paragraph has been furloughed
or required to work without pay.
(c) Deferment Eligibility.--During a covered period, a Federal
worker shall be eligible for deferment, during which, with respect to a
student loan, periodic installments of principal need not be paid and
interest shall not accrue.
(d) Limitation on Defaults.--If the student loan payment of a
Federal worker falls due and remains unpaid during a shutdown, the
lender with respect to the student loan may not place the loan in
default without the order of a court.
(e) Limitation on Collections.--If the student loan of a Federal
worker has been placed in default before the date on which a shutdown
begins, the lender with respect to the student loan may not, without
the order of a court, perform any of the following activities during
the covered period with respect to the shutdown:
(1) Send the student loan to collection.
(2) Report adverse information with respect to the Federal
worker to a consumer reporting agency.
(3) Garnish wages, tax refunds, or government benefits.
(f) Court Stay.--In a proceeding to collect a student loan payment
that is subject to this section, a court may, upon the motion of the
court, and shall, if requested by a Federal worker whose ability to
comply with the obligation resulting in the proceeding is materially
affected by a shutdown--
(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.
(g) Misdemeanor.--A person that knowingly violates this section, or
attempts to violate this section, shall be fined as provided in title
18, United States Code, or imprisoned for not more than 1 year, or
both.
SEC. 10. INCOME TAXES.
(a) Deferral of Tax.--Upon notice to the Internal Revenue Service,
the collection of Federal income tax on the income of a Federal worker
falling due during a shutdown shall be deferred for a period of not
more than 90 days after the date on which the shutdown ends if the
ability of the Federal worker to pay the income tax is materially
affected by the shutdown.
(b) Accrual of Interest or Penalty.--No interest or penalty shall
accrue during the period of deferment under subsection (a) 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 covered period with
respect to the shutdown to which the collection applies.
(d) Application Limitation.--This section shall not apply to the
tax imposed on employees under section 3101 of the Internal Revenue
Code of 1986.
SEC. 11. INSURANCE PROTECTION.
(a) Definition.--In this section, the term ``covered insurance
policy'' means a policy--
(1) for--
(A) health insurance;
(B) life insurance;
(C) disability insurance; or
(D) motor vehicle insurance; and
(2) that--
(A) a Federal worker enters into before the date on
which a shutdown begins; and
(B) is in effect during a shutdown.
(b) Insurance Protection.--Without the order of a court, a covered
insurance policy shall not lapse or otherwise terminate or be forfeited
because a Federal worker does not pay a premium, or interest or
indebtedness on a premium, under the policy that is due during a
covered period with respect to a shutdown.
SEC. 12. PROTECTION OF RIGHTS.
(a) Exercise of Rights Under Chapter Not To Affect Certain Future
Financial Transactions.--An application by a Federal worker for, or the
receipt by a Federal worker of, a stay, postponement, or suspension
under this Act with respect to the payment of a fine, penalty,
insurance premium, or other civil obligation or liability of that
Federal worker 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
Federal worker is unable to pay the civil obligation or
liability, as applicable, in accordance with the terms of the
obligation or liability.
(2) With respect to a credit transaction between a creditor
and the Federal worker--
(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 Federal worker in substantially the amount or on
substantially the terms requested.
(3) An adverse report relating to the creditworthiness of
the Federal worker 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 Federal worker.
(5) A change in the terms offered or conditions required
for the issuance of insurance.
(b) Reduction or Waiver of Fines or Penalties.--If a Federal worker
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 Federal worker was furloughed or required to work
without pay during a shutdown on the date on which the fine or
penalty was incurred; and
(2) the ability of the Federal worker to perform the
obligation was materially affected by the shutdown described in
paragraph (1).
(c) Court Action Upon Material Affect Determination.--If a court
determines that a Federal worker is materially affected by a shutdown
in complying with a judgment or an order of a court, the court may,
upon the motion of the court, and shall, on application by the Federal
worker--
(1) stay the execution of any judgment or order entered
against the Federal worker; and
(2) vacate or stay an attachment or garnishment of
property, money, or debts in the possession of the Federal
worker or a third party, whether before or after the entry of a
judgment.
(d) Dependents.--Upon application to a court, a dependent of a
Federal worker is entitled to the protections under this Act if the
ability of the dependent to comply with a lease, contract, bailment, or
other obligation is materially affected by reason of the impact of a
shutdown on the Federal worker.
SEC. 13. ENFORCEMENT.
(a) Civil Action.--The Attorney General may commence a civil action
in any appropriate district court of the United States against any
person that engages in--
(1) a pattern or practice of violating this Act; or
(2) a violation of this Act that raises an issue of
significant public importance.
(b) Relief.--In a civil action commenced under subsection (a), a
court may--
(1) grant any appropriate equitable or declaratory relief
with respect to the violation of this Act;
(2) award all other appropriate relief, including monetary
damages, to any person aggrieved by the violation described in
paragraph (1); and
(3) to vindicate the public interest, assess a civil
penalty--
(A) in an amount that is not more than $55,000 for
a first violation; and
(B) in an amount that is not more than $110,000 for
any subsequent violation.
(c) Intervention.--Upon timely application, a person that is
aggrieved by a violation of this Act with respect to which a civil
action is commenced under subsection (a) may--
(1) intervene in the action; and
(2) obtain such appropriate relief as the person could
obtain in a civil action under subsection (d) with respect to
that violation, along with costs and a reasonable attorney fee.
(d) Private Right of Action.--Any person that, after the date of
enactment of this Act, is aggrieved by a violation of this Act may, in
a civil action--
(1) obtain any appropriate equitable or declaratory relief
with respect to the violation; and
(2) recover all other appropriate relief, including
monetary damages.
(e) Costs and Attorney Fees.--A court may award to a person
aggrieved by a violation of this Act that prevails in an action brought
under subsection (d) the costs of the action, including a reasonable
attorney fee.
(f) No Preemption.--Nothing in this section may be construed to
preclude or limit any remedy otherwise available under other law,
including consequential and punitive damages.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Oversight and Accountability, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Education and the Workforce, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Accountability, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Education and the Workforce, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Accountability, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Education and the Workforce, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Accountability, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Education and the Workforce, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Accountability, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Education and the Workforce, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Committee on Oversight and Accountability, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Education and the Workforce, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.