[House Report 113-207]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-207
======================================================================
VETERANS ECONOMIC OPPORTUNITY ACT OF 2013
_______
September 11, 2013.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 2481]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2481) to amend title 38, United States Code, to
codify and improve the election requirements for the receipt of
educational assistance under the Post-9/11 Educational
Assistance program of the Department of Veterans Affairs,
having considered the same, report favorably thereon with
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 10
Background and Need for Legislation.............................. 11
Hearings......................................................... 17
Subcommittee Consideration....................................... 18
Committee Consideration.......................................... 18
Committee Votes.................................................. 18
Committee Oversight Findings..................................... 19
Statement of General Performance Goals and Objectives............ 19
New Budget Authority, Entitlement Authority, and Tax Expenditures 19
Earmarks and Tax and Tariff Benefits............................. 19
Committee Cost Estimate.......................................... 19
Congressional Budget Office Estimate............................. 19
Federal Mandates Statement....................................... 27
Advisory Committee Statement..................................... 27
Constitutional Authority Statement............................... 28
Applicability to Legislative Branch.............................. 28
Duplication of Federal Programs.................................. 28
Disclosure of Directed Rule Making............................... 28
Section-by-Section Analysis of the Legislation................... 28
Changes in Existing Law Made by the Bill as Reported............. 32
Amendment
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans Economic
Opportunity Act of 2013''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
Sec. 3. Scoring of budgetary effects.
Sec. 4. Establishment of Veterans Economic Opportunity Administration
of Department of Veterans Affairs.
Sec. 5. Under Secretary for Veterans Economic Opportunity.
Sec. 6. Five-year extension of homeless veterans reintegration
programs.
Sec. 7. Entitlement of children of certain deceased veterans to
educational assistance under the Post-9/11 Educational Assistance
Program of the Department of Veterans Affairs.
Sec. 8. Recodification and improvement of election process for Post-9/
11 Educational Assistance Program.
Sec. 9. Centralized reporting of veteran enrollment by certain groups,
districts, and consortiums of educational institutions.
Sec. 10. Extension of loan guaranty fee for certain subsequent loans.
Sec. 11. Mortgage protection for members of the Armed Forces, surviving
spouses, and certain veterans.
Sec. 12. Treatment of relocation for active duty for purposes of
mortgage refinancing.
Sec. 13. Requirements for lending institutions that are creditors for
obligations and liabilities covered by the Servicemembers Civil Relief
Act.
Sec. 14. Protection of child custody arrangements for parents who are
members of the Armed Forces.
SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to , or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of title 38 ,
United States Code.
SEC. 3. SCORING OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
SEC. 4. ESTABLISHMENT OF VETERANS ECONOMIC OPPORTUNITY ADMINISTRATION
OF DEPARTMENT OF VETERANS AFFAIRS.
(a) Economic Opportunity Administration.--
(1) In general.--Part V is amended by adding at the end the
following new chapter:
``CHAPTER 80--VETERANS ECONOMIC OPPORTUNITY ADMINISTRATION
``8001. Organization of Administration.
``8002. Functions of Administration.
``Sec. 8001. Organization of Administration
``(a) Veterans Economic Opportunity Administration.--There is in the
Department of Veterans Affairs a Veterans Economic Opportunity
Administration. The primary function of the Veterans Economic
Opportunity Administration is the administration of the programs of the
Department which provide assistance related to economic opportunity to
veterans and their dependents and survivors.
``(b) Under Secretary for Economic Opportunity.--The Veterans
Economic Opportunity Administration is under the Under Secretary for
Veterans Economic Opportunity, who is directly responsible to the
Secretary for the operations of the Administration.
``Sec. 8002. Functions of Administration
``The Veterans Economic Opportunity Administration is responsible for
the administration of the following programs of the Department:
``(1) Vocational rehabilitation and employment programs.
``(2) Educational assistance programs.
``(3) Veterans' housing loan and related programs.
``(4) The veterans small business program under section 8127
of this title.''.
(2) Clerical amendments.--The tables of chapters at the
beginning of title 38, United States Code, and of part V of
title 38, United States Code, are each amended by inserting
after the item relating to chapter 79 the following new item:
``80. Veterans Economic Opportunity Administration.......... 8001''.
(b) Effective Date.--Chapter 80 of title 38, United States Code, as
added by subsection (a) shall take effect on October 1, 2014.
SEC. 5. UNDER SECRETARY FOR VETERANS ECONOMIC OPPORTUNITY.
(a) Under Secretary.--
(1) In general.--Chapter 3 is amended by inserting after
section 306 the following new section:
``Sec. 306A. Under Secretary for Veterans Economic Opportunity
``(a) Under Secretary.--There is in the Department an Under Secretary
for Veterans Economic Opportunity, who is appointed by the President,
by and with the advice and consent of the Senate. The Under Secretary
for Veterans Economic Opportunity shall be appointed without regard to
political affiliation or activity and solely on the basis of
demonstrated ability in--
``(1) information technology; and
``(2) the administration of programs within the Veterans
Economic Opportunity Administration or programs of similar
content and scope.
``(b) Responsibilities.--The Under Secretary for Veterans Economic
Opportunity is the head of, and is directly responsible to the
Secretary for the operations of, the Veterans Economic Opportunity
Administration.
``(c) Vacancies.--(1) Whenever a vacancy in the position of Under
Secretary for Veterans Economic Opportunity occurs or is anticipated,
the Secretary shall establish a commission to recommend individuals to
the President for appointment to the position.
``(2) A commission established under this subsection shall be
composed of the following members appointed by the Secretary:
``(A) Three persons representing education and training,
vocational rehabilitation, employment, real estate, mortgage
finance and related industries, and survivor benefits
activities affected by the Veterans Economic Opportunity
Administration.
``(B) Two persons representing veterans served by the
Veterans Economic Opportunity Administration.
``(C) Two persons who have experience in the management of
private sector benefits programs of similar content and scope
to the economic opportunity programs of the Department.
``(D) The Deputy Secretary of Veterans Affairs.
``(E) The chairman of the Veterans' Advisory Committee on
Education formed under section 3692 of this title.
``(F) One person who has held the position of Under Secretary
for Veterans Economic Opportunity, if the Secretary determines
that it is desirable for such person to be a member of the
commission.
``(3) A commission established under this subsection shall recommend
at least three individuals for appointment to the position of Under
Secretary for Veterans Economic Opportunity. The commission shall
submit all recommendations to the Secretary. The Secretary shall
forward the recommendations to the President and the Committees on
Veterans' Affairs of the Senate and House of Representatives with any
comments the Secretary considers appropriate. Thereafter, the President
may request the commission to recommend additional individuals for
appointment.
``(4) The Assistant Secretary or Deputy Assistant Secretary of
Veterans Affairs who performs personnel management and labor relations
functions shall serve as the executive secretary of a commission
established under this subsection.
``(d) Qualifications of Recommended Individuals.--Each individual
recommended to the President by the commission for appointment to the
position of Under Secretary for Veterans Economic Opportunity shall be
an individual who has held a senior level position in the private
sector with responsibilities relating to at least one of the following:
``(1) Education policy.
``(2) Vocational rehabilitation.
``(3) Employment.
``(4) Home loan finance.
``(5) Small business development.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 306 the following new item:
``306A. Under Secretary for Veterans Economic Opportunity.''.
(b) Conforming Amendments.--Title 38, United States Code, is further
amended--
(1) in section 306(c)(2), by striking subparagraphs (A) and
(E) and redesignating subparagraphs (B), (C), (D), and (F), as
subparagraphs (A) through (D), respectively;
(2) in section 317(d), by inserting after ``Under Secretary
for Benefits,'' the following: ``the Under Secretary for
Veterans Economic Opportunity,'';
(3) in section 318(d)(2), by inserting after ``Under
Secretary for Benefits,'' the following: ``the Under Secretary
for Veterans Economic Opportunity,'';
(4) in section 516(e)(2)(C), by striking ``Health and the
Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity'';
(5) in section 541(a)(2)(B), by striking ``Health and the
Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity'';
(6) in section 542(a)(2)(B)(iii), by striking ``Health and
the Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity'';
(7) in section 544(a)(2)(B)(vi), by striking ``Health and the
Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity'';
(8) in section 709(c)(2)(A), by inserting after ``Under
Secretary for Benefits,'' the following: ``the Under Secretary
for Veterans Economic Opportunity,''.
(9) in section 7701(a), by inserting after ``assistance'' the
following: ``, other than assistance related to economic
opportunity,''; and
(10) in section 7703, by striking paragraphs (2) and (3) and
redesignating paragraphs (4) and (5) as paragraphs (2) and (3),
respectively.
(c) Full-Time Employees.--For fiscal years 2014 and 2015, the
aggregate number of full-time equivalent employees authorized for the
Veterans Benefit Administration and the Veterans Economic Opportunity
Administration, as established under chapter 80 of title 38, United
States Code, as added by section 2, may not exceed 20,851.
(d) Effective Date.--Section 306A of title 38, United States Code, as
added by subsection (a), and the amendments made by this section, shall
take effect on October 1, 2014.
SEC. 6. FIVE-YEAR EXTENSION OF HOMELESS VETERANS REINTEGRATION
PROGRAMS.
Section 2021(e)(F) of title 38, United States Code, is amended by
striking ``2013'' and inserting ``2018''.
SEC. 7. ENTITLEMENT OF CHILDREN OF CERTAIN DECEASED VETERANS TO
EDUCATIONAL ASSISTANCE UNDER THE POST-9/11
EDUCATIONAL ASSISTANCE PROGRAM OF THE DEPARTMENT OF
VETERANS AFFAIRS.
(a) In General.--Section 3311(b)(9) is amended--
(1) by striking ``2001, dies in line of duty while serving on
active duty as a member of the Armed Forces.'' and inserting
``2001--''; and
(2) by adding at the end the following new subparagraphs:
``(A) dies in line of duty while serving on active
duty as a member of the Armed Forces; or
``(B) is awarded the Purple Heart for an injury and
dies as a result of that injury during the 31-day
period beginning on the date of the person's discharge
or release from active duty service in the Armed
Forces.''.
(b) Applicability.--The amendments made by subsection (a) shall apply
with respect to a person who dies on or after September 11, 2001.
(c) Effective Date.--The amendments made by subsection (a) shall take
effect on October 1, 2014, and apply to payments of educational
assistance for programs of education pursued after that date.
SEC. 8. RECODIFICATION AND IMPROVEMENT OF ELECTION PROCESS FOR POST-9/
11 EDUCATIONAL ASSISTANCE PROGRAM.
(a) In General.--Subchapter III of chapter 33 is amended by adding at
the end the following new section:
``Sec. 3326. Election to receive educational assistance
``(a) Individuals Eligible To Elect Participation in Post-9/11
Educational Assistance.--An individual may elect to receive educational
assistance under this chapter if such individual--
``(1) as of August 1, 2009--
``(A) is entitled to basic educational assistance
under chapter 30 of the title and has used, but retains
unused, entitlement under that chapter;
``(B) is entitled to educational assistance under
chapter 107, 1606, or 1607 of title 10 and has used,
but retains unused, entitlement under the applicable
chapter;
``(C) is entitled to basic educational assistance
under chapter 30 of this title but has not used any
entitlement under that chapter;
``(D) is entitled to educational assistance under
chapter 107, 1606, or 1607 of title 10 but has not used
any entitlement under such chapter;
``(E) is a member of the Armed Forces who is eligible
for receipt of basic educational assistance under
chapter 30 this title and is making contributions
toward such assistance under section 3011(b) or 3012(c)
of this title; or
``(F) is a member of the Armed Forces who is not
entitled to basic educational assistance under chapter
30 of this title by reason of an election under section
3011(c)(1) or 3012(d)(1) of this title; and
``(2) as of the date of the individual's election under this
paragraph, meets the requirements for entitlement to
educational assistance under this chapter.
``(b) Cessation of Contributions Toward GI Bill.--Effective as of the
first month beginning on or after the date of an election under
subsection (a) of an individual described by paragraph (1)(E) of that
subsection, the obligation of the individual to make contributions
under section 3011(b) or 3012(c) of this title, as applicable, shall
cease, and the requirements of such section shall be deemed to be no
longer applicable to the individual.
``(c) Revocation of Remaining Transferred Entitlement.--
``(1) Election to revoke.--If, on the date an individual
described in paragraph (1)(A) or (1)(C) of subsection (a) makes
an election under that subsection, a transfer of the
entitlement of the individual to basic educational assistance
under section 3020 of this title is in effect and a number of
months of the entitlement so transferred remain unutilized, the
individual may elect to revoke all or a portion of the
entitlement so transferred that remains unutilized.
``(2) Availability of revoked entitlement.--Any entitlement
revoked by an individual under this paragraph shall no longer
be available to the dependent to whom transferred, but shall be
available to the individual instead for educational assistance
under chapter 33 of this title in accordance with the
provisions of this section.
``(3) Availability of unrevoked entitlement.--Any entitlement
described in paragraph (1) that is not revoked by an individual
in accordance with that paragraph shall remain available to the
dependent or dependents concerned in accordance with the
current transfer of such entitlement under section 3020 of this
title.
``(d) Post-9/11 Educational Assistance.--
``(1) In general.--Subject to paragraph (2) and except as
provided in subsection (e), an individual making an election
under subsection (a) shall be entitled to educational
assistance under this chapter in accordance with the provisions
of this chapter, instead of basic educational assistance under
chapter 30 this title, or educational assistance under chapter
107, 1606, or 1607 of title 10, as applicable.
``(2) Limitation on entitlement for certain individuals.--In
the case of an individual making an election under subsection
(a) who is described by paragraph (1)(A) of that subsection,
the number of months of entitlement of the individual to
educational assistance under this chapter 33 shall be the
number of months equal to--
``(A) the number of months of unused entitlement of
the individual under chapter 30 of this title, as of
the date of the election, plus
``(B) the number of months, if any, of entitlement
revoked by the individual under subsection (c)(1).
``(e) Continuing Entitlement to Educational Assistance Not Available
Under 9/11 Assistance Program.--
``(1) In general.--In the event educational assistance to
which an individual making an election under subsection (a)
would be entitled under chapter 30 of this title, or chapter
107, 1606, or 1607 of title 10, as applicable, is not
authorized to be available to the individual under the
provisions of this chapter the individual shall remain entitled
to such educational assistance in accordance with the
provisions of the applicable chapter.
``(2) Charge for use of entitlement.--The utilization by an
individual of entitlement under paragraph (1) shall be
chargeable against the entitlement of the individual to
educational assistance under this chapter at the rate of one
month of entitlement under this chapter for each month of
entitlement utilized by the individual under paragraph (1) (as
determined as if such entitlement were utilized under the
provisions of chapter 30 of this title, or chapter 107, 1606,
or 1607 of title 10, as applicable).
``(f) Additional Post-9/11 Assistance for Members Having Made
Contributions Toward GI Bill.--
``(1) Additional assistance.--In the case of an individual
making an election under subsection (a) who is described by
subparagraph (A), (C), or (E) of paragraph (1) of that
subsection, the amount of educational assistance payable to the
individual under this chapter 33 as a monthly stipend payable
under paragraph (1)(B) of section 3313(c) of this title, or
under paragraphs (2) through (7) of that section (as
applicable), shall be the amount otherwise payable as a monthly
stipend under the applicable paragraph increased by the amount
equal to--
``(A) the total amount of contributions toward basic
educational assistance made by the individual under
section 3011(b) or 3012(c) of this title, as of the
date of the election, multiplied by
``(B) the fraction--
``(i) the numerator of which is--
``(I) the number of months of
entitlement to basic educational
assistance under chapter 30 of this
title remaining to the individual at
the time of the election; plus
``(II) the number of months, if any,
of entitlement under such chapter 30
revoked by the individual under
subsection (c)(1); and
``(ii) the denominator of which is 36 months.
``(2) Months of remaining entitlement for certain
individuals.--In the case of an individual covered by paragraph
(1) who is described by subsection (a)(1)(E), the number of
months of entitlement to basic educational assistance remaining
to the individual for purposes of paragraph (1)(B)(i)(II) shall
be 36 months.
``(3) Timing of payment.--The amount payable with respect to
an individual under paragraph (1) shall be paid to the
individual together with the last payment of the monthly
stipend payable to the individual under paragraph (1)(B) of
section 3313(c) of this title, or under subsections (b) through
(g) of that section (as applicable), before the exhaustion of
the individual's entitlement to educational assistance under
this chapter.
``(g) Continuing Entitlement to Additional Assistance for Critical
Skills or Speciality and Additional Service.--An individual making an
election under subsection (a)(1) who, at the time of the election, is
entitled to increased educational assistance under section 3015(d) of
this title, or section 16131(i) of title 10, or supplemental
educational assistance under subchapter III of chapter 30 of this
title, shall remain entitled to such increased educational assistance
or supplemental educational assistance in the utilization of
entitlement to educational assistance under this chapter, in an amount
equal to the quarter, semester, or term, as applicable, equivalent of
the monthly amount of such increased educational assistance or
supplemental educational assistance payable with respect to the
individual at the time of the election.
``(h) Alternative Election by Secretary.--
``(1) In general.--In the case of an individual who, on or
after October 1, 2014, submits to the Secretary an election
under this section that the Secretary determines is clearly
against the interests of the individual, the Secretary may make
an alternative election on behalf of the individual that the
Secretary determines is in the best interests of the
individual.
``(2) Notice.--If the Secretary makes an election on behalf
of an individual under this subsection, the Secretary shall
notify the individual by not later than seven days after making
such election and shall provide the individual with a 30-day
period, beginning on the date of the individual's receipt of
such notice, during which the individual may modify or revoke
the election made by the Secretary on the individual's behalf.
The Secretary shall include, as part of such notice, a clear
statement of why the alternative election made by the Secretary
is in the best interests of the individual as compared to the
election submitted by the individual. The Secretary shall
provide the notice required under this paragraph by electronic
means whenever possible.
``(i) Irrevocability of Elections.--An election under subsection (a)
or (c)(1) is irrevocable.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:
``3326. Election to receive educational assistance.''.
(c) Conforming Repeal.--Subsection (c) of section 5003 of the Post-9/
11 Veterans Educational Assistance Act of 2008 (Public Law 110-252; 38
U.S.C. 3301 note) is hereby repealed.
SEC. 9. CENTRALIZED REPORTING OF VETERAN ENROLLMENT BY CERTAIN GROUPS,
DISTRICTS, AND CONSORTIUMS OF EDUCATIONAL
INSTITUTIONS.
(a) In General.--Section 3684(a) is amended--
(1) in paragraph (1), by inserting ``32, 33,'' after ``31,'';
and
(2) by adding at the end the following new paragraph:
``(4) For purposes of this subsection, the term `educational
institution' may include a group, district, or consortium of separately
accredited educational institutions located in the same State that are
organized in a manner that facilitates the centralized reporting of the
enrollments in such group, district, or consortium of institutions.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply with respect to reports submitted on or after the date of the
enactment of this Act.
SEC. 10. EXTENSION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT LOANS.
(a) Extension.--Section 3729(b)(2)(B) is amended--
(1) in clause (i), by striking ``October 1, 2017'' and
inserting ``October 1, 2018''; and
(2) in clause (ii), by striking ``October 1, 2017'' and
inserting ``October 1, 2018''.
SEC. 11. MORTGAGE PROTECTION FOR MEMBERS OF THE ARMED FORCES, SURVIVING
SPOUSES, AND CERTAIN VETERANS.
(a) Members of the Armed Forces, Surviving Spouses, and Certain
Disabled Veterans.--
(1) In general.--Title III of the Servicemembers Civil Relief
Act (50 U.S.C. App. 501 et seq.) is amended by inserting after
section 303 the following new section:
``SEC. 303A. MORTGAGES AND TRUST DEEDS OF CERTAIN SERVICEMEMBERS,
SURVIVING SPOUSES, AND DISABLED VETERANS.
``(a) Mortgage as Security.--This section applies only to an
obligation on real or personal property owned by a covered individual
that--
``(1) originated at any time and for which the covered
individual 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.--
``(1) In general.--In accordance with subsection (d)(1), in a
judicial action pending or in a nonjudicial action commenced
during a covered time period to enforce an obligation described
in subsection (a), a court--
``(A) may, after a hearing and on its own motion,
stay the proceedings until the end of the covered time
period; and
``(B) shall, upon application by a covered
individual, stay the proceedings until the end of the
covered time period.
``(2) Obligation to stop proceedings.--Upon receipt of notice
provided under subsection (d)(1), a mortgagee, trustee, or
other creditor seeking to foreclose on real property secured by
an obligation covered by this section using any judicial or
nonjudicial proceedings shall immediately stop any such
proceeding until the end of the covered time period.
``(c) Sale or Foreclosure.--A sale, judicial or nonjudicial
foreclosure, or seizure of property for a breach of an obligation
described in subsection (a) that is not stayed under subsection (b)
shall not be valid during a covered time period except--
``(1) upon a court order granted before such sale, judicial
or nonjudicial 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) Notice Required.--
``(1) In general.--To be covered under this section, a
covered individual shall provide to the mortgagee, trustee, or
other creditor written notice that such individual is so
covered.
``(2) Manner.--Written notice under paragraph (1) may be
provided electronically.
``(3) Time.--Notice provided under paragraph (1) shall be
provided during the covered time period.
``(4) Contents.--With respect to a servicemember described in
subsection (g)(1)(A), notice shall include--
``(A) a copy of the servicemember's official military
orders, or any notification, certification, or
verification from a servicemember's commanding officer
that provides evidence of servicemember's eligibility
for special pay as described in subsection (g)(1)(A);
or
``(B) an official notice using a form designed under
paragraph (5).
``(5) Official forms.--
``(A) In general.--The Secretary of Defense shall
design and distribute an official Department of Defense
form that can be used by an individual to give notice
under paragraph (1).
``(B) Use of official form not required.--Failure by
any individual to use a form designed or distributed
under subparagraph (A) to provide notice shall not make
such provision of notice invalid.
``(e) Aggregate Duration.--The aggregate duration for which a covered
individual (except a servicemember described in subsection (g)(1)(A))
may be covered under this section is one year.
``(f) 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.
``(g) Definitions.--In this section:
``(1) Covered individual.--The term `covered individual'
means the following individuals:
``(A) A servicemember who is or was eligible for
hostile fire or imminent danger special pay under
section 310 of title 37, United States Code, during a
period of military service.
``(B) A servicemember placed on convalescent status,
including a servicemember transferred to the temporary
disability retired list under section 1202 or 1205 of
title 10, United States Code.
``(C) A veteran who was medically discharged and
retired under chapter 61 of title 10, United States
Code, except for a veteran described in section 1207 of
such title.
``(D) A surviving spouse (as defined in section
101(3) of title 38, United States Code, and in
accordance with section 103 of such title) of a
servicemember who died while in military service if
such spouse is the successor in interest to property
covered under subsection (a).
``(2) Covered time period.--The term `covered time period'
means the following time periods:
``(A) With respect to a servicemember who is or was
eligible for hostile fire or imminent danger special
pay under section 310 of title 37, United States Code,
during a period of military service, during the period
beginning on the first day on which the servicemember
is or was eligible for such special pay during such
period of military service and ending on the date that
is one year after the last day of such period of
military service.
``(B) With respect to a servicemember described in
paragraph (1)(B), during the one-year period beginning
on the date on which the servicemember is placed on
convalescent status or transferred to the temporary
disability retired list under section 1202 or 1205 of
title 10, United States Code.
``(C) With respect to a veteran described in
paragraph (1)(C), during the one-year period beginning
on the date of the retirement of such veteran.
``(D) With respect to a surviving spouse of a
servicemember as described in paragraph (1)(D), during
the one-year period beginning on the date on which the
spouse receives notice of the death of the
servicemember.''.
(2) Clerical amendment.--The table of contents in section
1(b) of such Act is amended by inserting after the item
relating to section 303 the following new item:
``Sec. 303A. Mortgages and trust deeds of certain servicemembers,
surviving spouses, and disabled veterans.''.
(3) Conforming amendment.--Section 107 of the Servicemembers
Civil Relief Act (50 U.S.C. App. 517) is amended by adding at
the end the following:
``(e) Other Individuals.--For purposes of this section, the term
`servicemember' includes any covered individual under section 303A.''.
(b) Increased Civil Penalties for Mortgage Violations.--Paragraph (3)
of section 801(b) of the Servicemembers Civil Relief Act (50 U.S.C.
App. 597(b)(3)) is amended to read as follows:
``(3) to vindicate the public interest, assess a civil
penalty--
``(A) with respect to a violation of section 207,
303, or 303A regarding real property--
``(i) in an amount not exceeding $110,000 for
a first violation; and
``(ii) in an amount not exceeding $220,000
for any subsequent violation; and
``(B) with respect to any other violation of this
Act--
``(i) in an amount not exceeding $55,000 for
a first violation; and
``(ii) in an amount not exceeding $110,000
for any subsequent violation.''.
(c) Credit Discrimination.--Section 108 of such 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.--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.''.
(d) Effective Date.--Section 303A of the Servicemembers Civil Relief
Act, as added by subsection (a), and the amendments made by this
section, shall take effect on October 1, 2014.
SEC. 12. TREATMENT OF RELOCATION FOR ACTIVE DUTY FOR PURPOSES OF
MORTGAGE REFINANCING.
(a) In General.--Title III of the Servicemembers Civil Relief Act (50
U.S.C. App. 531 et seq.) is amended by inserting after section 303A, as
added by section 11(a)(1), the following new section:
``SEC. 303B. TREATMENT OF RELOCATION FOR ACTIVE DUTY FOR PURPOSES OF
MORTGAGE REFINANCING.
``(a) Treatment of Absence From Residence Due to Active Duty.--
``(1) In general.--Subject to paragraph (2), if, at any time
that a servicemember who is the mortgagor under an existing
mortgage does not reside in the residence that secures the
existing mortgage because of relocation described in subsection
(c)(1)(B), such servicemember inquires about or applies for a
covered refinancing mortgage, such servicemember shall be, for
all purposes relating to the covered refinancing mortgage,
including such inquiry or application and eligibility for and
compliance with any underwriting criteria and standards
regarding such covered refinancing mortgage, considered to
occupy the residence that secures the existing mortgage to be
paid or prepaid by such covered refinancing mortgage as the
principal residence of the servicemember during the period of
any such relocation.
``(2) Limitation.--Paragraph (1) shall not apply with respect
to a servicemember at any time if, during the five-year period
preceding such time, the servicemember entered into a covered
refinancing mortgage pursuant to this section.
``(b) Mortgages Originated Before Period Military Service.--If a
covered refinancing mortgage is entered into pursuant to this section
with respect to an existing mortgage that originated before the period
of the servicemember's military service, such covered refinancing
mortgage shall be deemed to be an obligation that originated before the
period of the servicemember's military service and for which the
servicemember is still obligated for purposes of section 303(a)(1).
``(c) Definitions.--In this section:
``(1) Existing mortgage.--The term `existing mortgage' means
a mortgage that is secured by a 1- to 4-family residence,
including a condominium or a share in a cooperative ownership
housing association, that was the principal residence of a
servicemember for a period that--
``(A) had a duration of 13 consecutive months or
longer; and
``(B) ended upon the relocation of the servicemember
caused by the servicemember receiving military orders
for a permanent change of station or to deploy with a
military unit, or as an individual in support of a
military operation, for a period of not less than 90
days that did not allow the servicemember to continue
to occupy such residence as a principal residence.
``(2) Covered refinancing mortgage.--The term `covered
refinancing mortgage' means any mortgage--
``(A) that is made for the purpose of paying or
prepaying, and extinguishing, the outstanding
obligations under an existing mortgage or mortgages;
and
``(B) that is secured by the same residence that
secured such existing mortgage or mortgages.''.
(b) Clerical Amendment.--The table of contents for such Act is
amended by inserting after the item relating to section 303A the
following new item:
``Sec. 303B. Treatment of relocation for active duty for purposes of
mortgage refinancing.''.
(c) Effective Date.--Section 303B of the Servicemembers Civil Relief
Act, as added by subsection (a), and the amendments made by this
section, shall take effect on October 1, 2014.
SEC. 13. REQUIREMENTS FOR LENDING INSTITUTIONS THAT ARE CREDITORS FOR
OBLIGATIONS AND LIABILITIES COVERED BY THE
SERVICEMEMBERS CIVIL RELIEF ACT.
Section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App.
527) is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (c) the following new
subsection (d):
``(d) Lending Institution Requirements.--
``(1) Compliance officers.--Each lending institution subject
to the requirements of this section shall designate an employee
of the institution as a compliance officer who is responsible
for ensuring the institution's compliance with this section and
for distributing information to servicemembers whose
obligations and liabilities are covered by this section.
``(2) Toll-free telephone number.--During any fiscal year, a
lending institution subject to the requirements of this section
that had annual assets for the preceding fiscal year of
$10,000,000,000 or more shall maintain a toll-free telephone
number and shall make such telephone number available on the
primary Internet website of the institution.''.
SECTION 14. PROTECTION OF CHILD CUSTODY ARRANGEMENTS FOR PARENTS WHO
ARE MEMBERS OF THE ARMED FORCES.
(a) Child Custody Protection.--Title II of the Servicemembers Civil
Relief Act (50 U.S.C. App. 521 et seq.) is amended by adding at the end
the following new section:
``SEC. 208. CHILD CUSTODY PROTECTION.
``(a) Restriction on Temporary Custody Order.--If a court renders a
temporary order for custodial responsibility for a child based solely
on a deployment or anticipated deployment of a parent who is a
servicemember, then the court shall require that, upon the return of
the servicemember from deployment, the custody order that was in effect
immediately preceding the temporary order shall be reinstated, unless
the court finds that such a reinstatement is not in the best interest
of the child, except that any such finding shall be subject to
subsection (b).
``(b) Limitation on Consideration of Member's Deployment in
Determination of Child's Best Interest.--If a motion or a petition is
filed seeking a permanent order to modify the custody of the child of a
servicemember, no court may consider the absence of the servicemember
by reason of deployment, or the possibility of deployment, as the sole
factor in determining the best interest of the child.
``(c) No Federal Jurisdiction or Right of Action or Removal.--Nothing
in this section shall create a Federal right of action or otherwise
give rise to Federal jurisdiction or create a right of removal.
``(d) Preemption.--In any case where State law applicable to a child
custody proceeding involving a temporary order as contemplated in this
section provides a higher standard of protection to the rights of the
parent who is a deploying servicemember than the rights provided under
this section with respect to such temporary order, the appropriate
court shall apply the higher State standard.
``(e) Deployment Defined.--In this section, the term `deployment'
means the movement or mobilization of a servicemember to a location for
a period of longer than 60 days and not longer than 540 days pursuant
to temporary or permanent official orders--
``(1) that are designated as unaccompanied;
``(2) for which dependent travel is not authorized; or
``(3) that otherwise do not permit the movement of family
members to that location.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
such Act is amended by adding at the end of the items relating to title
II the following new item:
``208. Child custody protection.''.
Amend the title so as to read:
A bill make certain improvements in the laws administered
by the Secretary of Veterans Affairs relating to benefits, and
for other purposes.
Purpose
H.R. 2481, Veterans G.I. Bill Enrollment Clarification Act
of 2013, was introduced on June 15, 2013, by Representative
Bill Flores of Texas. H.R. 2481, as amended, the Veterans
Economic Opportunity Act of 2013, incorporates provisions from
H.R. 2327, as amended, introduced by Representative Jeff Miller
of Florida; H.R. 2150, introduced by Representative Paul Cook
of California; H.R. 2210, as amended, introduced by
Representative C.W. Bill Young of Florida; H.R. 331, introduced
by Representative Ken Calvert of California; H.R. 1842,
introduced by Representative Elijah Cummings of Maryland; and
H.R. 1898, introduced by Representative Michael Turner of Ohio.
Additionally, the bill, as amended, includes a free-standing
provision that would extend for an additional period the
existing level of funding fees associated with the subsequent
use home loan guarantees.
Background and Need for Legislation
Section 1--Short Title
The Veterans Economic Opportunity Act of 2013.
Section 2--References to Title 38, United States Code
This section states that all references to changes that
would be made by this bill shall be to title 38, United States
Code.
Section 3--Scoring of Budgetary Effects
In accordance with the Statutory Pay-As-You-Go Act of 2010,
this section states that the budgetary effects of the bill
shall be determined by reference to a statement submitted in
the Congressional Record by the Chairman of the House Budget
Committee prior to passage of the bill.
Section 4--Establishment of Veteran Economic Opportunity Administration
of Department of Veterans Affairs
Chapter Three of title 38, United States Code (U.S.C.)
establishes three separate Administrations at the U.S.
Department of Veterans Affairs (VA). Section 305 of title 38,
U.S.C. establishes the Veterans Health Administration (VHA)
which manages all VA healthcare-related facilities and
programs. Section 306 of title 38, U.S.C. establishes the
Veterans Benefits Administration (VBA), which is responsible
for the administration of all benefit programs, including
compensation, pension, insurance, educational assistance and
training programs, and loan guaranty programs. Section 307 of
title 38, U.S.C. establishes the National Cemetery
Administration (NCA) which manages over 131 National Cemeteries
and other burial-related facilities and programs.
VA's disability compensation program is a highly complex
program designed to provide monthly payments for disabilities
incurred or aggravated in military service. With the wars in
the Middle East and the aging of the veterans population in
general, the inventory of compensation claims has continued to
increase. In recent months, the total inventory of pending
disability compensation claims has approached nearly a million
and as of August, 2013 the processing times now average about
325 days to complete a claim. This has drawn considerable
criticism from the veterans' community, as well as Congress and
the media.
In the 109th Congress the Committee recognized the
importance of focusing on programs that increase economic
opportunities for veterans and lessen reliance on long-term
government assistance by creating the Subcommittee on Economic
Opportunity. This Subcommittee has jurisdiction over education
and training, employment, home loan, and other programs that
focus on a veteran's ability to obtain good-paying jobs. The
Committee believes that this increased focus and specialization
has brought greater attention and needed oversight to these
programs that seek to enable veterans to live as economically-
productive lives as possible.
Understandably, senior VBA leaders spend considerable time
and resources focusing on decreasing the inventory of
disability compensation claims at the expense of time and focus
needed for other benefit programs. Over time, this has led to
less leadership attention to the non-compensation programs. As
an example, the Administration's FY 2014 budget requested funds
to support 18,827 full time equivalent employees (FTEE) for
VBA. Of this number, 14,297 FTEE were requested to administer
disability compensation, pension, dependency indemnity
compensation (DIC), and fiduciary programs while only 4,530
FTEE were requested for other programs.
The number of FTEE for disability compensation and pension
has ballooned by 5,194, or 36 percent, since FY2004, while over
this same time period, the FTEE for other programs at VBA has
grown by only 838 FTEE, or 18 percent. While it is important to
increase staffing to attack the current backlog, the Committee
believes that the focus on disability compensation and pension
staff ignores the lengthy waits for benefits from the
education, vocational rehabilitation, and loan guaranty
programs and only undermines the potential for veterans to
improve their lives through programs that increase economic
opportunities.
Therefore, to ensure more effective oversight of those
programs, the Committee believes that separating programs that
are generally considered as leading to increased employability
and economic success would be appropriate. Section 4 would,
therefore, create Chapter 80 in title 38, U.S.C. to establish
the Veterans Economic Opportunity Administration (VEOA) to
manage the GI Bill, Home Loan Guaranty, and Vocational
Rehabilitation and Employment programs. Additionally, Section
8127 of title 38, U.S.C. established a program to assist VA in
meeting the statutory goals for procurement of goods and
services from service disabled veteran-owned small businesses.
Because small business ownership can be a significant
contributor to economic success and due to the continuing
difficulties VA is experiencing in administering the service
disabled veteran-owned small business program, Section 4 would
place the program in Section 8127 under the auspices of VEOA.
Section 5--Under Secretary for Veterans Economic Opportunity
Section 5 of the bill would amend title 38, U.S.C. by
adding a new Section 306A to create the position of Under
Secretary for Veterans Economic Opportunity to oversee all VEOA
programs and operations. This section would complement section
4 by creating this Under Secretary position to put the new VEOA
on par with VHA, NCA and VBA.
The Committee also believes that with the significant
growth in VA employees it would be appropriate to staff the new
VEOA, which reports to the new Under Secretary, from existing
personnel resources by capping the amount of FTE at both VBA
and VEOA to no more than 20,851 FTEE.
Section 6--Five Year Extension of the Homeless Veterans Reintegration
Program
The Homeless Veterans Reintegration Program (HVRP) is a
grant program managed by the U.S. Department of Labor's
Veterans Employment and Training Service (VETS). Grants are
made generally to non-profit, community-based organizations to
fund efforts to qualify and place homeless veterans in jobs.
Today, VETS funds over 100 grantees and served 13,735 and
placed 7,824 homeless veterans during the latest reporting
period. The authorization for the HVRP program is set to expire
on September 30, 2013. According to the latest statistics from
VETS, the entered employment rate for HVRP participants was 65
percent, a very credible figure given the difficulty often
encountered when placing this population.
Section 6 would extend the authorization of $50 million in
appropriations for HVRP until September 30, 2018. The Committee
believes the program's success justifies its continuation as a
part of the overall effort to reduce homelessness among
veterans of all ages. At the legislative hearing June 26, 2013,
on this provision, the Subcommittee on Economic Opportunity
received unanimous support for the extension of this program as
it continues to provide homeless veterans with the job training
necessary to break the cycle of homelessness.
Section 7--Entitlement of Children of Certain Deceased Veterans to
Educational Assistance under the Post-9/11 Educational
Assistance Program of the Department of Veterans Affairs
Title V of Public Law 110-252 (122 Stat. 2323, 2357)
established the Post-9/11 G.I. Bill which is now codified by
Chapter 33 of title 38, U.S.C. Section 3011(f) of Chapter 33
established the Gunnery Sergeant John David Fry Scholarship
which provides certain Chapter 33 benefits to the children of
servicemembers who die on active duty. Chapter 33 benefits
include tuition and fee payments (which can be limited
depending on the type and cost of institution) a book stipend,
and a monthly housing stipend.
Early in Operation Iraqi Freedom and Operation Enduring
Freedom, the Department of Defense often discharged severely
wounded servicemembers relatively quickly instead of retaining
them in active duty status for an extended period of recovery
as is generally the practice today. As a result, some severely
wounded servicemembers died shortly after discharge. As a
result of dying after discharge, their children were not
eligible for the Fry Scholarship.
To rectify this inequity, the Committee believes if those
who died shortly after discharge were undergoing recovery under
today's extended recovery periods, they would have likely died
on active duty. Therefore, the Committee believes it is
reasonable to make the children of such veterans eligible for
the Fry Scholarship by amending section 3311 to include the
children of veterans who have received the Purple Heart and die
within 31 days of discharge.
Section 8--Re-codification and Improvement of Election Process for
Post-9/11 Educational Assistance Program
Section 5003(c) of the Post-9/11 Veterans Educational
Assistance Act of 2008 (Public Law 110-252) delineates the
circumstances under which veterans and servicemembers with
remaining eligibility to other VA-administered education
programs can be converted to the Post-9/11 G.I. Bill. Under
this section, any such conversion is irrevocable.
During a January, 2013 site visit to the Atlanta Regional
Processing Office, Committee staff asked the VA staff what
steps or processes could be changed to reduce processing time
of Post-9/11 G.I. Bill claims. VA staff informed Committee
staff that one step in the adjudication of G.I. Claims concerns
veterans' irrevocable decision to convert their remaining
months of eligibility for other G.I. Bill programs to the Post-
9/11 G.I. Bill. They stated that many veterans make obvious
errors in choosing a program to which they are not entitled or
other errors which require manual processing of the claim. When
this happens, VA then notifies the veteran, normally in
writing, of the discrepancy and must wait for the veteran to
contact VA and make the appropriate switch to their irrevocable
election in order for their Post-9/11 G.I. Bill claims to be
processed. VA staff believes these steps add time to processing
delays and are un-necessary.
Therefore, section 8 would authorize VA to make an
alternative election for the beneficiary of a different
education benefit. VA would only be authorized to make such an
election if they believed such an alternative election is
clearly in the best interest of the veteran. VA would have to
notify veterans of this alternative election within 7 days and
allow the veteran to change such election within 30 days. The
Committee believes this is an important step to reduce
processing times for this benefit while still balancing
individual choice.
Section 9--Centralized Reporting of Veteran Enrollment by Certain
Groups, Districts, and Consortiums of Educational Institutions
Chapter 36 of title 38, U.S.C., describes the process by
which VA approves courses of instruction at institutions of
higher education and how schools certify the enrollment of
veterans such approval is necessary prior to any use of VA
educational assistance benefits for veterans and survivors.
Currently, each school is required to submit enrollments
separately even if the school is one of a number of schools
sharing a common registration system.
Requiring each school to submit enrollments separately is
highly inefficient for both the schools and the VA.
Consolidating such processes among schools with common
registration and administration can lead to a more cost-
efficient process for both the schools and VA.
Section 9 would amend Section 3684(a) of title 38, U.S.C.,
to authorize institutions of higher learning that belong to a
consortium of institutions governed by a common body with
common administrative practices to submit enrollments in a
consolidated fashion.
Section 10--Extension of Loan Guaranty Fee for Certain Subsequent Loans
Section 3729 of title 38, U.S.C., requires the payment of
an upfront funding fee when a servicemember or veteran uses
their VA loan guaranty benefit. The funding fee varies based on
an individual's status, the amount of down payment brought
forward, and the date of loan origination. The rates of funding
fees (expressed as a percentage of the principal) for
subsequent use, that have been in effect since 2009, are set to
be reduced on October 1, 2017.
This section would extend through October 1, 2018, the
rates of funding fees that would otherwise be reduced on
October 1, 2017 for subsequent use loans. These fees reduce the
subsidy cost associated with VA's guaranty of mortgage loans,
and have typically been viewed as a reasonable cost to the
benefit gained by having VA guarantee a mortgage loan. Such
fees can also be rolled into the principal of the loan. The
Committee believes the extension of these rates will not have a
negative impact on veterans' or servicemembers' ability to
acquire the finances necessary for a subsequent loan after
their initial VA home loan usage.
Section 11--Mortgage Protection for Members of the Armed Forces,
Surviving Spouses, and Certain Veterans
The Servicemembers Civil Relief Act (SCRA) provides a wide
range of financial protections to servicemembers including
protection from foreclosures under certain circumstances.
Current law applies only to homes purchased by the
servicemember prior to entering military service and those
protections apply do not apply to surviving spouses of
servicemembers.
Existing mortgage related protections under SCRA fail to
cover all military servicemembers during the course of
deployment to a contingency operation; fail to cover medically
discharged veterans due to a service-connected injury; fail to
cover surviving spouses of military servicemembers; fail to
provide stay of proceedings protections in non-judicial
foreclosure states; lack sufficient fines as to deter future
bank violations; and, they fail to protect covered individuals
from discrimination in lending.
Section 11 would clarify the rights afforded to those
originally protected under SCRA and the new class of protected
individuals who would be protected by this section (discussed
below). This change was requested during the Subcommittee on
Economic Opportunity hearing conducted on June 26, 2013. The
new section 303A would expand protections afforded to spouses,
servicemembers serving in a contingency operation, veterans who
are medically discharged, and servicemembers placed on
convalescent status. This protection would apply to mortgages
that were incurred before and during military service.
When a military servicemember is unable to report to duty
because of a substantial illness or injury, he or she is
normally placed on convalescent leave. This section would
expand protections to a servicemember placed on convalescent
status because of the reduction in pay they receive when placed
in such status. During this time, the servicemember's pay could
be reduced to as little as 50 percent of their base pay,
thereby affecting their ability to make their mortgage
payments. Additionally, mortgage related protections are
extended to both judicial and non-judicial foreclosure states.
The Committee believes that expanding SCRA coverage to all four
classes of covered individuals would ensure they will be
protected from a home foreclosure regardless of where their
home is located or when it was purchased.
The section would also require covered individuals to
provide notice to their lender of their intention to use the
protection under the new section 303A of SCRA. Upon receipt of
notice, the court, mortgagee, trustee, or other creditor
seeking to foreclose on the property would be mandated to stay
such actions until the end of the covered time period. The four
classes of covered individuals would be protected for an
aggregate period of 12 months.
This section would also double existing penalties for
violators of the new SCRA mortgage protections. The Committee
hopes this provision will deter banks and creditors from
violating the protections afforded to servicemembers under
SCRA. Finally, this section would ensure that covered
individuals are not denied credit for the sole reason that they
are eligible for the protections under SCRA.
Section 12. Treatment of Relocation for Active Duty for purposes of
Mortgage Refinancing
Under existing SCRA protections, if a servicemember is not
currently living in his or her home due to transfer in response
to military orders, in many cases they are not eligible to re-
finance the home because it is not considered their principal/
primary residence.
Section 12 would allow a servicemember who no longer
occupies a home due to military orders to refinance a home
originally mortgaged prior to military service. It would amend
the SCRA to require a creditor to consider this home, unless
refinanced during the past five years, the permanent residence
of the servicemember. The Committee believes that
servicemembers should not be prevented from receiving the
lowest interest rate when refinancing simply because their
military service prevented satisfaction of existing occupancy
requirements.
Section 13. Requirements for Lending Institutions that are creditors
for Obligations and liabilities covered by the Servicemembers
Civil Relief Act
Section 13 would require all lending institutions with
assets of $10 billion or more to designate an SCRA Compliance
officer and have a toll-free phone number published on their
website. In testimony at a Full Committee hearing on SCRA
mortgage related protections in February 9, 2011 witnesses
cited servicemembers' inability to contact lender employees who
are responsible for lenders' compliance with SCRA as well as
being shuffled from employee to employee. At that same hearing
and others, servicemembers have also testified about multiple
requests for previously-submitted documentation of coverage
under SCRA.
Servicemembers should be able to easily contact their
lenders for information, specific questions, feedback, etc
especially when it comes to information about protections they
have earned by virtue of their military service. A toll-free
number would assist them in getting the service they deserve.
The Committee believes that providing an SCRA Compliance
officer would also guarantee that when these servicemembers do
place a call, they have someone to talk to who is familiar with
their situation and protections under the law. The Compliance
officer and the toll-free number would both serve to make sure
that the institution is in compliance with the SCRA mortgage
and foreclosure provisions.
Section 14--Protection of Child Custody Arrangement for Parents Who are
Members of the Armed Forces.
As our nation's servicemembers endure deployments overseas,
SCRA and the Uniformed Services Employment and Reemployment
Rights Act (USERRA) protect their interests at home. Both Acts
endeavor to ensure veterans and servicemembers' employment
rights and civilian obligations are not affected by their
commitment to the security of the United States. At its core,
SCRA ensures that servicemembers have certain protections in
the event that military service impedes their ability to meet
certain financial and legal obligations.
With respect to one such legal obligation, the Committee is
aware of the often difficult decisions facing courts regarding
child custody when one or both parents may be a servicemember
deployed abroad. Although the current SCRA covers everything
from mortgages to cell phone contracts, it fails to provide one
uniform framework for protecting servicemembers' rights under
child custody actions by state courts.
Section 14 would protect these rights by amending the SCRA
to require that if a court issues a temporary order for
custodial responsibility for a child of a servicemember to
another party because of a servicemembers' deployment, the
custody order immediately preceding the temporary order shall
be reinstated upon the return of the servicemember. If the
court determines that such a move would not be in the best
interest of a child the court could modify the pre-deployment
custody order. The section would also prohibit courts from
considering the absence or potential absence of a servicemember
from being considered as part of the court's determination of
the child's best interest. Finally, the section ensures that if
higher protections than that provided for in this section exist
under any state law, then the higher standard would be applied.
In previous Congresses, the Committee received anecdotal
evidence of servicemembers having to make the difficult
decision of choosing between their military career and the
legal custody of their children because of rulings made by
courts that took their military service into account when
assigning custody of the child. The Committee believes that
servicemembers should never have to make this choice.
In a February 15, 2011, letter to Representative Michael
Turner of Ohio, then-Secretary of Defense Robert Gates provided
support for legislation that is appropriately crafted, ``[t]hat
provides Servicemembers with a federal uniform standard of
protection in cases where it is established that military
service is the sole factor involved in a child custody decision
involving a Service member.'' The Committee believes this
section is appropriately crafted to fulfill this requirement.
Hearings
On June 26, 2013, the Subcommittee on Economic Opportunity
conducted a legislative hearing on various bills introduced
during the 113th Congress, including H.R. 2481, H.R. 331, H.R.
1842, H.R. 2150, H.R. 2210, and H.R. 2327. The following
witnesses testified at the hearing:
The Honorable Ken Calvert; The Honorable Elijah E.
Cummings; The Honorable John Delaney; The Honorable Alan
Grayson; The Honorable Bill Johnson; Mr. Curtis Coy, Deputy
Under Secretary of Economic Opportunity, Veterans Benefits
Administration, U.S. Department of Veterans Affairs, who was
accompanied by Mr. John Brizzi, Deputy Assistant General
Counsel, U.S. Department of Veterans Affairs; Mr. Frank C.
DiGiovanni, Director, Training Readiness and Strategy, Office
of the Undersecretary of Defense for Personnel and Readiness,
U.S. Department of Defense; Mr. Ryan M. Gallucci, Deputy
Director, National Legislative Service, Veterans of Foreign
Wars of the United States; Mr. Jeffery Steele, Assistant
Director, National Legislative Commission, The American Legion;
and MG Andrew ``Drew'' Davis, USMC (Ret.) Executive Director,
The Reserve Officers Association. The following groups
submitted statements for the record: The Honorable Tammy
Duckworth, U.S. Department of Labor, and Vietnam Veterans of
America.
Subcommittee Consideration
On July 18, 2013, the Subcommittee on Economic Opportunity
met in an open markup session, a quorum being present, and
favorably forwarded to the full Committee H.R. 331, H.R. 1842,
H.R. 2150, H.R. 2210, as amended, H.R. 2327, as amended, and
H.R. 2481, by voice vote.
During consideration of H.R. 2210 the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Flores of Texas modified the bill to change number of days
after discharge a veteran could die of a service-connected
injury in order for their dependent children to qualify for the
Marine Gunnery Sergeant John David Fry Scholarship under the
Post 9/11 G.I. Bill.
During consideration of H.R. 2327 the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Flores of Texas that modified the original bill to make a
technical change in describing the Center for Veterans
Enterprise that would be moved into the new Economic
Opportunity Administration.
Committee Consideration
On August 1, 2013, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 2481, as
amended, reported favorably to the House of Representatives, by
voice vote. During consideration of the bill, the following
amendment was considered and agreed to by voice vote:
An amendment in the nature of a substitute by Mr. Flores of
Texas which combined the original bill text with the text of
H.R. 331, H.R. 1842, H.R. 1898, H.R. 2150, H.R. 2210, as
amended, and H.R. 2327, as amended. Further, the amendment in
the nature of a substitute added section 10 on funding fees and
made adjustments to effective dates to sections 4, 5, 7, 8, 11,
12, and 13 to September 1, 2014.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list recorded votes
on motions to report legislation and amendments thereto. There
were no recorded votes taken on amendments or in connection
with ordering H.R. 2481, as amended, reported to the House. A
motion by Ranking Member Michael H. Michaud of Maine to report
H.R. 2481, as amended, favorably to the House of
Representatives was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 2481, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
2481, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 2481, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
August 23, 2013.
Hon. Jeff Miller,
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. 2481, the Veterans
Economic Opportunity Act of 2013.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2481--Veterans Economic Opportunity Act of 2013
Summary H.R. 2481 would decrease direct spending by
increasing the fees charged to certain veterans who obtain
loans guaranteed by the Department of Veterans Affairs (VA). In
addition, the bill would increase direct spending by enhancing
certain protections for servicemembers and veterans with home
mortgages, and by expanding eligibility for education
scholarships. On net, the bill would decrease direct spending
by $149 million over the 2014-2018 period and by $120 million
over the 2014-2023 period, CBO estimates. Pay-as-you-go
procedures apply because enacting the legislation would affect
direct spending and revenues. (The effect on revenues would be
insignificant.)
H.R. 2481 also would increase spending subject to
appropriation, primarily by extending the authorization of
appropriations for a program that serves homeless veterans. CBO
estimates that implementing H.R. 2481 would have a
discretionary cost of $218 million over the 2014-2018 period,
subject to appropriation of the necessary amounts.
The bill would impose intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
by adding and expanding protections for servicemembers under
the Servicemembers Civil Relief Act (SCRA). CBO estimates that
the costs to public and private entities of complying with the
mandates would not exceed the thresholds established in UMRA
for intergovernmental and private-sector mandates ($75 million
and $150 million, respectively, in 2013, adjusted annually for
inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2481 is shown in Table 1. The costs of
this legislation fall within budget functions 700 (veterans
benefits and services), 370 (commerce and housing credit), and
750 (administration of justice).
TABLE 1--ESTIMATED BUDGETARY EFFECTS OF H.R. 2481
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING\a\
Estimated Budget Authority.............................. 0 12 5 5 -171 -149
Estimated Outlays....................................... 0 12 5 5 -171 -149
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 50 65 55 55 55 282
Estimated Outlays....................................... 4 47 55 55 55 218
----------------------------------------------------------------------------------------------------------------
Note: Details may not add to totals because of rounding.
\a\Enacting H.R. 2481 may also lead to an insignificant increase in revenues. In addition to the effects shown
above, CBO estimates that enacting H.R. 2481 would decrease direct spending by $120 million and increase
revenues by an insignificant amount over the 2014-2023 period.
Basis of estimate: For the purposes of this estimate, CBO
assumes that the legislation will be enacted near the beginning
of fiscal year 2014, that the necessary amounts will be
appropriated each year, and that outlays will follow historical
spending patterns for similar and existing programs.
Direct spending and revenues
H.R. 2481 would decrease direct spending by increasing a
fee that VA charges for guaranteeing certain home loans. That
effect would be partially offset by increases in direct
spending that would arise from providing additional protections
for certain military personnel and veterans with home mortgages
and by expanding eligibility for educational assistance under
the Marine Gunnery Sergeant John David Fry Scholarship (Fry
Scholarship) program. The bill also would have an insignificant
effect on revenues.
Loan Guarantee Fees. Under its home-loan program, VA
provides lenders guarantees on mortgages made to veterans;
those guarantees enable veterans to get better loan terms, such
as lower interest rates or smaller down payments. The loan
guarantees provide lenders a payment of up to 25 percent of the
outstanding loan balances (subject to some limitations on the
original loan amounts) in the event that a veteran defaults on
a guaranteed loan.
TABLE 2--IMPACT OF H.R. 2481 ON DIRECT SPENDING
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014-2018 2014-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Loan Guarantee Fees:
Estimated Budget Authority............................ 0 0 0 0 -177 0 0 0 0 0 -177 -177
Estimated Outlays..................................... 0 0 0 0 -177 0 0 0 0 0 -177 -177
Enhanced Mortgage Protection:
Estimated Budget Authority............................ 0 9 2 3 3 3 3 3 3 3 17 32
Estimated Outlays..................................... 0 9 2 3 3 3 3 3 3 3 17 32
Mortgage Refinancing Qualifications:
Estimated Budget Authority............................ 0 3 2 1 1 1 1 2 2 2 7 15
Estimated Outlays..................................... 0 3 2 1 1 1 1 2 2 2 7 15
Education Benefits for Surviving Children:
Estimated Budget Authority............................ 0 * 1 1 2 2 1 1 1 1 4 10
Estimated Outlays..................................... 0 * 1 1 2 2 1 1 1 1 4 10
Total Changes:
Estimated Budget Authority........................ 0 12 5 5 -171 6 5 6 6 6 -149 -120
Estimated Outlays................................. 0 12 5 5 -171 6 5 6 6 6 -149 -120
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note:
* = less than 500,000.
Section 10 would increase a fee that VA charges to certain
veterans for providing those guarantees. By partially
offsetting the costs of subsequent defaults, those fees lower
the subsidy cost of the guarantees.\1\
---------------------------------------------------------------------------
\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses, offset by any payments to the government, including
origination fees, other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed.
---------------------------------------------------------------------------
Under current law, the up-front fee for veterans who have
previously used the loan-guarantee benefit is 3.30 percent of
the loan amount. That fee is scheduled to decline to 1.25
percent on October 1, 2017.
Under section 10, that scheduled fee reduction would be
delayed by one year, until October 1, 2018. Continuing the fee
at the current level in 2018 would increase collections by VA
in that year, thereby lowering the subsidy cost of the loan
guarantees. Based on data from VA, CBO estimates that enacting
section 10 would reduce direct spending by $177 million in
2018.
Enhanced Mortgage Protection. Section 11 would prohibit
lenders from initiating or completing foreclosure proceedings
on mortgages issued to certain servicemembers and surviving
spouses. Lenders could not foreclose on mortgages held by
military personnel who are deployed in support of a contingency
operation for the duration of that deployment and for the 12
months following deployment. The following individuals also
would be protected from foreclosure for 12 months:
Servicemembers who are convalescing;
Personnel who are transferred to the
temporary disability retired list or who are medically
discharged and retired; and
Surviving spouses of servicemembers who die
from a service-connected cause while in military
service in regards to property that was jointly owned.
The enhanced protections afforded by section 11 would take
effect on October 1, 2014.
Some of the loans that would be affected by the enhanced
foreclosure protection in section 11 are guaranteed by VA or
the Federal Housing Administration (FHA). Under its home loan
program, VA pays lenders up to 25 percent of the outstanding
loan debt in the event that the borrower defaults. Unpaid
interest can be added to the guaranteed debt, within certain
limits. FHA provides a similar guarantee on mortgages it
insures, compensating lenders for up to 100 percent of the
loss. Unpaid interest can be added to FHA-guaranteed debt, but
it accrues at a rate similar to that for federal borrowing,
rather than the interest rate of the defaulted loan.
Delaying foreclosure on borrowers who default would
lengthen the period during which unpaid interest accrues,
increasing the indebtedness of the borrower. If the loan is
eventually terminated, the claim filed by the lender would be
larger by the amount of the additional interest, and the
subsequent claim payment from VA or FHA would rise as a result.
Those larger claim payments would raise the loan subsidy costs
of both agencies.
For loans that were originated before enactment of H.R.
2481, such changes would be treated as loan modifications and
the increased subsidy costs would be recorded as direct
spending when the modifications became effective--that is, at
the start of fiscal year 2015, the effective date of section
11, as specified in the bill. The higher subsidy costs for
loans made subsequent to the effective date would increase
mandatory costs for VA loans and discretionary costs for FHA
loans in the year those loans are originated.
Based on information from the Department of Defense, CBO
estimates that approximately 300,000 servicemembers, retirees,
and surviving spouses would be eligible for the enhanced
foreclosure protection in 2015. (The majority of those
beneficiaries are personnel who are currently deployed or were
deployed in the previous year.) However, some of those eligible
personnel currently receive similar protection under the
national mortgage settlement, an agreement regarding
foreclosure practices that was signed by the five largest
mortgage servicers, the Department of Justice, and state
attorneys general. Under that settlement, the servicers agreed
not to foreclose without a court order on property owned by
servicemembers who deployed and received hostile fire or
imminent danger pay, during their deployment and for nine
months thereafter. That agreement expires in October 2015.
CBO estimates that about 175,000 people would be newly
eligible in 2015 for the enhanced mortgage protection under the
bill. After the national mortgage settlement expires and
borrowers no longer benefit from the similar protections that
it provides, the population of beneficiaries under section 11
would increase to 260,000 in 2016 and each year thereafter. On
the basis of information from VA, CBO estimates that about 25
percent of potential beneficiaries have loans guaranteed by VA
and another 5 percent have loans guaranteed by FHA. Of those
loans, CBO expects that about 1.5 percent will default, for a
total of about 1,100 loans annually. Under H.R. 2481, CBO
estimates that the average claim payments for those defaults
would increase by about $3,800 for VA loans and by about $3,000
for FHA loans.
On that basis, we estimate that, the increased subsidy
costs for loans originated in prior years would total almost $6
million for VA-guaranteed loans and nearly $2 million for FHA-
backed loans. In addition, higher subsidy costs for loans
guaranteed by VA after the effective date would increase direct
spending by about $2 million in 2015, and by an average of $3
million a year over the 2016-2023 period. In total, CBO
estimates that enacting section 11 would increase direct
spending by $32 million over the 2014-2023 period. (Higher
subsidy costs for loans guaranteed by FHA in 2015 and later
years would result in an increase in discretionary spending,
assuming appropriation action necessary to implement FHA's
single-family program. Those costs are described in the section
on discretionary spending below.)
In addition, section 11 would establish civil penalties for
lenders who foreclose on property in violation of the enhanced
mortgage protection that would be provided by the bill. Civil
fines are recorded as revenues. CBO expects that any additional
revenues would not be significant because of the relatively
small number of cases likely to be affected.
Mortgage Refinancing Qualifications. Section 12 would make
it easier for certain servicemembers to refinance mortgages on
homes that they do not occupy. Under current law, borrowers
must occupy their homes to be eligible for loan guarantees from
VA on refinancing loans that allow borrowers to increase the
principal amount owed (cash-out loans). Further, private-sector
lenders generally charge higher interest rates for loans on
homes that are not occupied by the borrower, which discourages
some of those borrowers from refinancing. Section 12 would
require servicemembers to be treated as if they occupied the
home when they refinance, if they left the home because of
change-of-station or deployment orders. That requirement would
take effect on October 1, 2014. As a result, some additional
borrowers would qualify for cash-out refinancing loans that are
guaranteed by VA. Others would choose to refinance loans that
they would otherwise not have because they would receive lower
interest rates; some of those loans also would be guaranteed by
VA.
Because the subsidy costs of VA loan guarantees are paid
from mandatory appropriations, guaranteeing additional loans
would increase direct spending. Based on the annual number of
loan guarantees that VA currently provides for servicemembers,
CBO expects that over the next 10 years, VA would guarantee an
additional 5,000 loans under this provision. Providing those
loan guarantees would increase direct spending by $15 million
over the 2014-2023 period, CBO estimates.
Education Benefits for Surviving Children. The children of
servicemembers who die in the line of duty while serving in an
active-duty status are eligible for education benefits under
the Fry Scholarship. Section 7 would expand eligibility for Fry
Scholarships to the children of servicemembers who receive the
Purple Heart for injuries sustained in combat and then die as a
result of those injuries within 31 days of separating from
active duty. Under current law, those children are only
eligible for benefits under the Survivors' and Dependents'
Education Assistance Program (DEAP).
The Fry Scholarship entitles qualifying recipients to
education benefits under the Post-9/11 GI Bill. Those benefits
include the payment of in-state tuition and fees for
beneficiaries attending public schools, a monthly housing
allowance, and a stipend to pay for books and supplies. DEAP
currently provides education benefits to qualifying recipients
at a maximum rate--for full-time students--of $987 per month.
Based on information from VA and the Department of Defense,
CBO estimates that, if this provision was enacted, an average
of about 80 children per year would elect to receive education
benefits under the Fry Scholarship rather than DEAP. Each of
those children would receive, on average, about $16,400 in Fry
Scholarship benefits in 2015 and, after cost-of-living
increases, that amount would increase to about $22,700 in 2023,
CBO estimates. Under DEAP, we estimate that each of those
children would have received about $5,700 in benefits in 2015
and, after cost of living increases, about $6,800 in benefits
in 2023. On net, CBO estimates the change in eligibility would
increase direct spending by $10 million over the 2014-2023
period.
Selection of Education Benefits. Section 8 would permit the
Secretary to change an individual's choice of program for VA
education benefits when the Secretary determines that the
choice is not in the individual's best interest. If the
Secretary makes an alternative selection on behalf of an
applicant, the Secretary would be required to notify the
individual within seven days. The applicant would then have 30
days to modify or revoke the Secretary's selection. Under
current law, when a claims processor determines that an
individual has not made the most advantageous choice of
programs, the processor attempts to contact the applicant to
recommend a change. By allowing VA to change the individual's
selection proactively, claims processing and benefit payments
would be accelerated. Based on information from VA, CBO
estimates that the department would change the elections of
very few people. Thus, we estimate that enacting this section
would increase direct spending by an insignificant amount over
the 2014-2023 period.
Spending subject to appropriation
H.R. 2481 would authorize appropriations for programs that
benefit homeless veterans. It also would reorganize the VA's
management structure by establishing a new administration to
oversee certain benefit programs. Finally, it would increase
the subsidy cost of loans guaranteed by FHA. In total, CBO
estimates that implementing H.R. 2481 would increase the cost
of veterans' benefits that are subject to appropriation by $218
million over the 2014-2018 period, assuming appropriation of
the necessary amounts.
Homeless Veterans Reintegration Programs. Section 6 would
authorize the appropriation of $50 million each year over the
2014-2018 period for Department of Labor programs that serve
homeless veterans. The department provides grants to agencies
and organizations that provide job placement, training, and
vocational counseling to homeless veterans. Under current law,
the authorization for this program will expire at the end of
fiscal year 2013. CBO estimates that implementing this section
would cost $187 million over the 2014-2018 period, assuming
appropriation of the authorized amounts.
Veterans Economic Opportunity Administration. Under VA's
current organizational structure, the Veterans Benefits
Administration (VBA) manages the provision of the following
benefits to veterans and other eligible individuals:
Disability compensation;
Pension, dependency and indemnity
compensation, burial benefits, and fiduciary assistance
programs;
Readjustment benefits such as education
funding, employment assistance, and vocational
rehabilitation;
Home-loans guarantees;
Assistance to small businesses owned by
veterans; and
Life insurance.
Sections 4 and 5 would establish a Veterans Economic
Opportunity Administration (VEOA) to oversee readjustment
benefit programs, the home loan program, and small business
programs. VBA and VEOA each would be led by an undersecretary
responsible to the Secretary of Veterans Affairs. Section 5
would limit the total number of full-time equivalent positions
serving in VBA and VEOA to the current workforce of 20,851 in
fiscal years 2014 and 2015. Based on information from VA, about
20 percent of that workforce--roughly 4,500 people--oversee and
carry out the benefits programs that would be transferred to
VEOA under the bill.
CBO estimates that the personnel, records, property, and
budgetary resources currently used by VBA to manage those
programs would be transferred to the new entity. In addition,
CBO estimates that VEOA would ultimately add 20 additional
positions, such as an Under Secretary for Veterans Economic
Opportunity, to manage the daily operations of the new
administration.
TABLE 3--IMPACT OF H.R. 2481 ON SPENDING SUBJECT TO APPROPRIATION
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Homeless Veterans Reintegration Programs:
Authorization Level................................. 50 50 50 50 50 250
Estimated Outlays................................... 4 34 49 50 50 187
Veterans Economic Opportunity Administration:
Estimated Authorization Level....................... 0 15 5 5 5 30
Estimated Outlays................................... 0 13 6 5 5 29
Enhanced Mortgage Protection:
Estimated Authorization Level....................... 0 * * * * 2
Estimated Outlays................................... 0 * * * * 2
Total Changes:
Estimated Authorization Level....................... 50 65 55 55 55 282
Estimated Outlays................................... 4 47 55 55 55 218
----------------------------------------------------------------------------------------------------------------
Notes: Details may not add to totals because of rounding.
* = between -$500,000 and $500,000.
On that basis, CBO estimates that establishing VEOA,
transferring the programs, personnel, and accompanying assets,
and hiring the additional 20 personnel would cost $29 million
over the 2014-2018 period, assuming appropriation of the
estimated amounts.
Enhanced Mortgage Protection. As described above, section
11 would increase the subsidy costs of FHA loans guaranteed in
2015 and later years by increasing the amount of unpaid
interest that could accrue on defaulted loans before those
loans are terminated. CBO estimates that the annual subsidy
rate for the FHA single-family program would increase by less
than 0.1 percent relative to the rates estimated under current
law.\2\ As a result of the provisions in section 11, net
subsidy costs under the FHA program would increase by less than
$500,000 each year, and by a total of $2 million over the 2014-
2018 period, assuming enactment of the commitment limit at
levels projected in CBO's baseline.
---------------------------------------------------------------------------
\2\The subsidy rate for that program is negative, resulting in net
receipts to the federal government. Discretionary credit programs with
negative subsidy rates do not require a subsidy appropriation, but an
appropriations act must specify the maximum amount of loans that an
agency can commit to guarantee.
---------------------------------------------------------------------------
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in the
following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2481 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON AUGUST 1, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-2018 2013-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact..................... 0 0 12 5 5 -171 6 5 6 6 6 -149 -120
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: The bill would
impose a number of mandates, as defined in UMRA, on public and
private lending institutions. In aggregate, CBO estimates that
the costs of complying with the mandates in H.R. 2481 would
fall below the annual thresholds established in UMRA for both
intergovernmental and private-sector mandates ($75 million and
$150 million in 2013, respectively, adjusted annually for
inflation).
Under the bill, public and private lending institutions
that are subject to SCRA would have to:
Extend the length of stay of civil
proceedings relating to real or personal property,
mortgages, evictions, and foreclosures for
servicemembers, veterans, and surviving spouses (as
those groups are defined in the bill);
Designate an employee who would ensure
compliance with the act;
Consider active-duty servicemembers who have
been relocated to be occupying the residence that
secures a mortgage for refinancing inquiries or
applications; and
Maintain a toll-free telephone number to
provide assistance to servicemembers if the institution
has over $10 billion in annual assets.
CBO expects the cost of complying with the stay of civil
proceedings would be small because relatively few
servicemembers, retirees, and surviving spouses of
servicemembers who die on active duty are likely to face
foreclosure within the periods specified in the bill. Some of
those costs would be offset by claim payments from VA and FHA.
Lending institutions currently employ compliance officers,
and all large institutions maintain toll-free numbers. For that
reason, CBO estimates that the extra training for employees and
the maintenance of toll-free numbers would not impose
significant costs on private entities. Because few lending
institutions are public entities, CBO estimates that the
intergovernmental costs of the mandates also would be small.
The bill also would preempt state laws, applicable to child
custody protection, that provide less protection to
servicemembers than the federal standard. The preemption would
be an intergovernmental mandate as defined in UMRA because it
would limit the application of state law; however, it would
impose no duty on states that would result in additional
spending.
Estimate prepared by: Federal Costs: William Ma and David
Newman; Impact on State, Local, and Tribal Governments: Lisa
Ramirez-Branum; Impact on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2481, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
2481, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee finds that no provision of H.R. 2481, as amended,
``The Economic Opportunity Act of 2013,'' establishes or
reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee estimates that H.R. 2481, as amended, does not
require any directed rule makings.
Section-by-Section Analysis of the Legislation
Section 1--Short title
This section provides the short title of H.R. 2481, as
amended, as the ``Veterans Economic Opportunity Act of 2013.''
Section 2--References to Title 38, United States Code
Section 2 provides that unless otherwise expressly
provided, all references to the United States Code shall be
considered to be in reference to title 38, United States Code.
Section 3--Score of budgetary effects
Section 3 states that to ensure that the bill is in
compliance with the Statutory Pay-As-You-Go Act of 2010, the
budgetary effect of the bill be determined by reference to a
statement submitted in the Congressional Record by the Chairman
of the House Budget Committee prior to a vote on passage.
Section 4--Establishment of Veteran Economic Opportunity Administration
of Department of Veterans Affairs
Section 4(a) would amend title 38, U.S.C., to add a new
chapter 80 which would authorize the creation of the Veterans
Economic Opportunity Administration. The new Administration
would be headed by the Under Secretary for Economic Opportunity
who would report directly to the Secretary of Veterans Affairs.
The new administration would be responsible for the following
programs: vocational rehabilitation and employment, educational
assistance, veterans housing, and veterans small business
programs under section 8127 of title 38, U.S.C.
Section 4(b) states that this section would take effect on
October 1, 2014.
Section 5--Under Secretary for Veterans Economic Opportunity
Section 5(a) would amend title 38, U.S.C., to create a new
section 306A that would create the position of the Under
Secretary for Veterans Economic Opportunity. Under this
section, the new Under Secretary would be appointed by the
President with the advice and consent of the Senate. The Under
Secretary would have to have demonstrated ability in
information technology and administration of programs within
the Economic Opportunity Administration or similar programs.
The section also would require that when there is a vacancy
for this position, the Secretary would establish a commission
to recommend individuals to the President for appointment to
the position. This commission would be composed of three
persons representing programs or industries affected by the new
administration, two veterans served by the new administration,
two persons with private sector experience with programs in
similar content and scope as the new administration, the Deputy
Secretary of Veterans Affairs, the chairman of the Veterans
Advisory Committee on Education, and one person who has held
the position of Under Secretary of Veterans Economic
Opportunity if the Secretary determines having this person on
the commission is desirable.
The Commission would recommend at least three individuals
for appointment for the Under Secretary position to the
Secretary. The Secretary would then submit these
recommendations, with or without comment as the Secretary
desires, to the President and the House and Senate Committees
on Veterans' Affairs. Each of these individuals submitted by
the commission would have to have held a senior level position
in the private sector with responsibilities relating to similar
programs as those administered by the Veterans Opportunity
Administration.
Section 5(b) would provide conforming amendments.
Section 5(c) would require that for each of fiscal years
2014 and 2015 the aggregate number of full-time equivalent
employees authorized for the Veterans Benefit Administration
and the Veterans Economic Opportunity Administration in either
year would be no greater than 20,851.
Section 5(d) would require that the amendment made by this
section be effective on October 1, 2014.
Section 6--Five year extension of the Homeless Veterans Reintegration
Program
Section 6 would amend 2021(e)(F) of title 38, U.S.C., to
reauthorize the Homeless Veteran Reintegration Program until
the end of fiscal year 2018.
Section 7--Entitlement of children of certain deceased veterans to
educational assistance under the Post-9/11 Educational
Assistance Program of the Department of Veterans Affairs
Section 7(a) would amend section 3311(b)(9) to add an
additional eligibility for the Marine Gunnery Sergeant John
David Frye Scholarship to include children of veterans that die
within 31 days of discharge as a result of the injury for which
the veterans received a Purple Heart.
Section 7(b) would stipulate that such eligibility under
section 7(a) would apply to veterans who died after September
11, 2001.
Section 7(c) would state that payments to eligible children
under chapter 33 of title 38, U.S.C. made eligible by this
section shall be effective no earlier than October 1, 2014.
Section 8--Re-codification and improvement of election process for
Post-9/11 Educational Assistance Program
Section 8 would create section 3326 of title 38, U.S.C., by
re-codifying section 5003(c) of the Post-9/11 Veterans
Educational Assistance Act of 2008 (P.L. 110-252). Section 8(h)
would be added to this section and would authorize VA, after
October 1, 2014, to make an alternative election for veterans
to relinquish their eligibly for other VA education program(s)
in order to transfer into the Post-9/11 GI Bill. The VA would
make this election for the veteran if VA believes the veteran's
choice was not in the veteran's best interests. Under this
section, if the VA makes this election, the veteran would have
to be notified within seven days and given 30 days in which he
or she could change the VA's decision.
Section 9--Centralized reporting of veteran enrollment by certain
groups, districts, and consortiums of educational institutions
Section 9 would amend section 3684(a) of title 38, U.S.C.,
by permitting a group, district, or consortium of separately
accredited educational institutions located in the state to
centralize the reporting of statutorily required GI Bill
enrollment information.
Section 10--Extension of loan guaranty fee for certain subsequent loans
Section 10 would amend section 3729(b)(2)(B) of title 38,
U.S.C., to authorize the extension of the current rate of
funding fees for subsequent use loans from October 1, 2017 to
October 1, 2018.
Section 11--Mortgage protection for members of the armed forces,
surviving spouses, and certain veterans
Section 11(a) would amend SCRA to create a new section 303A
related to mortgages and trust deeds of certain servicemembers,
surviving spouses, and disabled veterans. The section would
cover obligations on real and personal property purchased by a
covered individual at any time to include both judicial and
non-judicial foreclosure actions. This section would also
authorize a court, on its own motion or upon application by a
covered individual, to stay a foreclosure action and require
the creditor to cease foreclosure action upon notice by a
covered individual during the covered time period. It would
allow a foreclosure to be completed with a court order or a
waiver of rights by the covered person if a stay is not
granted.
The new 303A(d) would require a covered individual to
provide notice of SCRA protection to the creditor during the
covered period to qualify for the protections. Where
applicable, the notice would include a copy of military orders
or any notification, certification, or verification from the
servicemember's commanding officer, etc. The new section
303A(e) would require that the aggregate period that a covered
individual would be protected by this section would be 12
months. Section 303A(f) would make it a misdemeanor for a
person to knowingly foreclose on or sell a covered individual's
home or property in violation of the protections that would be
extended by this section.
Under the new 303A(g)(1), ``covered persons'' would be
defined as including: servicemembers on active duty serving in
support of contingency operations, servicemembers in a
convalescent status, servicemembers placed on the Temporary
Disability Retired List (TDRL), servicemembers medically
discharged and retired under Chapter 61 of Title 10, U.S.C.,
except those separated under section 1207 (separated for
misconduct), and surviving spouses of servicemembers who died
during military service.
Under the new 303A(g)(2), covered time periods would be
defined as starting from the effective date of orders until 12
months following return for servicemembers supporting
contingency operations, 12 months after entering such status
for those on convalescent status or TDRL, 12 months after
retirement for those retired under Chapter 61, 12 months after
death of the servicemember for surviving spouses, and a maximum
of 12 months of aggregate coverage if a covered person
qualifies under more than one category of covered persons.
Section 11(b) would amend paragraph 3 of section 802(b) of
SCRA to double the existing civil penalties for violations of
mortgage protections.
Section 11(c) would prohibit credit discrimination against
those who are or may be covered under SCRA.
Section 11(d) would require that all amendments to SCRA
that would be made by this section would take effect on October
1, 2014.
Section 12--Treatment of relocation for active duty for purposes of
mortgage refinancing
Section 12 would amend SCRA to create a new section, 303B,
which would ensure that, for purposes of refinancing an
existing mortgage, the creditor would consider the home as the
primary residence even though the servicemember is absent due
to military orders. The section would not cover mortgages that
had been refinanced at any time during the previous 5 years. It
would consider a refinanced mortgage under this section as a
pre-service obligation and therefore covered under SCRA if the
mortgage being refinanced was originated prior to military
service. These amendments would take effect on October 1, 2014.
Section 13--Requirements for lending institutions that are creditors
for obligations and liabilities covered by the Servicemembers
Civil Relief Act
Section 13 would amend section 207 of SCRA to require all
lending institutions that service or hold SCRA covered
mortgages to designate an SCRA Compliance officer who would be
responsible for ensuring the institution's compliance with
SCRA. The section would also require the covered institutions
with annual assets of $10 billion have a toll-free phone number
published on the institution's website.
Section 14--Protection of child custody arrangement for parents who are
members of the armed forces.
Section 14 amends Title II of the Servicemembers Civil
Relief Act by adding a new section 208 on child custody
protection.
Subsection (a) provides for a new section 208 in the SCRA
that provides that if a court renders a temporary order for
custodial responsibility for a child based solely on a
deployment or anticipated deployment of a parent who is a
servicemember, then the court shall require that upon the
return of the servicemember from deployment, the custody order
that was in effect immediately preceding the temporary order
shall be reinstated, unless the court finds that such a
reinstatement is not in the best interest of the child.
Section 208(b) would prohibit courts from considering the
absence or potential absence of a servicemember from being
considered as part of the court's determination of the child's
best interest.
Section 208(c) would state that nothing in this new section
shall create a Federal right of action.
Section 208(d) would require that if any applicable state
law gives a greater level of protection to the rights of the
parents than the one provided by this section, the state law
will apply.
Section 208(e) would define a deployment as movement or
mobilization of a servicemember for a period no shorter than 60
days and not longer than 18 months where the servicemember is
not authorized to bring their dependents.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART I--GENERAL PROVISIONS
PART I. GENERAL PROVISIONS
Chapter. Sec.
General........................................................101
* * * * * * *
PART V. BOARDS, ADMINISTRATIONS, AND SERVICES
Board of Veterans' Appeals....................................7101
* * * * * * *
8001Veterans Economic Opportunity Administration......................
* * * * * * *
CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS
Sec.
301. Department.
* * * * * * *
306A. Under Secretary for Veterans Economic Opportunity.
* * * * * * *
Sec. 306. Under Secretary for Benefits
(a) * * *
* * * * * * *
(c)(1) * * *
(2) A commission established under this subsection shall be
composed of the following members appointed by the Secretary:
[(A) Three persons representing education and
training, real estate, mortgage finance, and related
industries, and survivor benefits activities affected
by the Veterans Benefits Administration.]
[(B)] (A) Two persons representing veterans served by
the Veterans Benefits Administration.
[(C)] (B) Two persons who have experience in the
management of veterans benefits programs or programs of
similar content and scope.
[(D)] (C) The Deputy Secretary of Veterans Affairs.
[(E) The chairman of the Veterans' Advisory Committee
on Education formed under section 3692 of this title.]
[(F)] (D) One person who has held the position of
Under Secretary for Benefits (including service as
Chief Benefits Director of the Veterans'
Administration), if the Secretary determines that it is
desirable for such person to be a member of the
commission.
* * * * * * *
Sec. 306A. Under Secretary for Veterans Economic Opportunity
(a) Under Secretary.--There is in the Department an Under
Secretary for Veterans Economic Opportunity, who is appointed
by the President, by and with the advice and consent of the
Senate. The Under Secretary for Veterans Economic Opportunity
shall be appointed without regard to political affiliation or
activity and solely on the basis of demonstrated ability in--
(1) information technology; and
(2) the administration of programs within the
Veterans Economic Opportunity Administration or
programs of similar content and scope.
(b) Responsibilities.--The Under Secretary for Veterans
Economic Opportunity is the head of, and is directly
responsible to the Secretary for the operations of, the
Veterans Economic Opportunity Administration.
(c) Vacancies.--(1) Whenever a vacancy in the position of
Under Secretary for Veterans Economic Opportunity occurs or is
anticipated, the Secretary shall establish a commission to
recommend individuals to the President for appointment to the
position.
(2) A commission established under this subsection shall be
composed of the following members appointed by the Secretary:
(A) Three persons representing education and
training, vocational rehabilitation, employment, real
estate, mortgage finance and related industries, and
survivor benefits activities affected by the Veterans
Economic Opportunity Administration.
(B) Two persons representing veterans served by the
Veterans Economic Opportunity Administration.
(C) Two persons who have experience in the management
of private sector benefits programs of similar content
and scope to the economic opportunity programs of the
Department.
(D) The Deputy Secretary of Veterans Affairs.
(E) The chairman of the Veterans' Advisory Committee
on Education formed under section 3692 of this title.
(F) One person who has held the position of Under
Secretary for Veterans Economic Opportunity, if the
Secretary determines that it is desirable for such
person to be a member of the commission.
(3) A commission established under this subsection shall
recommend at least three individuals for appointment to the
position of Under Secretary for Veterans Economic Opportunity.
The commission shall submit all recommendations to the
Secretary. The Secretary shall forward the recommendations to
the President and the Committees on Veterans' Affairs of the
Senate and House of Representatives with any comments the
Secretary considers appropriate. Thereafter, the President may
request the commission to recommend additional individuals for
appointment.
(4) The Assistant Secretary or Deputy Assistant Secretary of
Veterans Affairs who performs personnel management and labor
relations functions shall serve as the executive secretary of a
commission established under this subsection.
(d) Qualifications of Recommended Individuals.--Each
individual recommended to the President by the commission for
appointment to the position of Under Secretary for Veterans
Economic Opportunity shall be an individual who has held a
senior level position in the private sector with
responsibilities relating to at least one of the following:
(1) Education policy.
(2) Vocational rehabilitation.
(3) Employment.
(4) Home loan finance.
(5) Small business development.
* * * * * * *
Sec. 317. Center for Minority Veterans
(a) * * *
* * * * * * *
(d) The Director shall perform the following functions with
respect to veterans who are minorities:
(1) * * *
(2) Make recommendations to the Secretary, the Under
Secretary for Health, the Under Secretary for Benefits,
the Under Secretary for Veterans Economic Opportunity,
and other Department officials for the establishment or
improvement of programs in the Department for which
veterans who are minorities are eligible.
* * * * * * *
Sec. 318. Center for Women Veterans
(a) * * *
* * * * * * *
(d) The Director shall perform the following functions with
respect to veterans who are women:
(1) * * *
(2) Make recommendations to the Secretary, the Under
Secretary for Health, the Under Secretary for Benefits,
the Under Secretary for Veterans Economic Opportunity,
and other Department officials for the establishment or
improvement of programs in the Department for which
veterans who are women are eligible.
* * * * * * *
CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY
SUBCHAPTER I--GENERAL AUTHORITIES
* * * * * * *
Sec. 516. Equal employment responsibilities
(a) * * *
* * * * * * *
(e)(1) * * *
(2) Paragraph (1) applies to the following officers and
employees of the Department:
(A) * * *
* * * * * * *
(C) The Under Secretary for [Health and the Under
Secretary for Benefits] Health, the Under Secretary for
Benefits, and the Under Secretary for Veterans Economic
Opportunity.
* * * * * * *
SUBCHAPTER III--ADVISORY COMMITTEES
Sec. 541. Advisory Committee on Former Prisoners of War
(a)(1) * * *
(2)(A) * * *
(B) The Committee shall also include, as ex officio members,
the Under Secretary for [Health and the Under Secretary for
Benefits] Health, the Under Secretary for Benefits, and the
Under Secretary for Veterans Economic Opportunity, or their
designees.
* * * * * * *
Sec. 542. Advisory Committee on Women Veterans
(a)(1) * * *
(2)(A) * * *
(B) The Committee shall include, as ex officio members--
(i) * * *
* * * * * * *
(iii) the Under Secretary for [Health and the Under
Secretary for Benefits] Health, the Under Secretary for
Benefits, and the Under Secretary for Veterans Economic
Opportunity, or their designees.
* * * * * * *
Sec. 544. Advisory Committee on Minority Veterans
(a)(1) * * *
(2)(A) * * *
(B) The Committee shall include, as ex officio members, the
following:
(i) * * *
* * * * * * *
(vi) The Under Secretary for [Health and the Under
Secretary for Benefits] Health, the Under Secretary for
Benefits, and the Under Secretary for Veterans Economic
Opportunity, or their designees.
* * * * * * *
CHAPTER 7--EMPLOYEES
* * * * * * *
Sec. 709. Employment restrictions
(a) * * *
* * * * * * *
(c)(1) * * *
(2) Paragraph (1) shall not apply--
(A) to the appointment of any person by the President
under this title, other than the appointment of the
Under Secretary for Health, the Under Secretary for
Benefits, the Under Secretary for Veterans Economic
Opportunity, and the Inspector General; or
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 20--BENEFITS FOR HOMELESS VETERANS
* * * * * * *
SUBCHAPTER III--TRAINING AND OUTREACH
SEC. 2021. HOMELESS VETERANS REINTEGRATION PROGRAMS
(a) * * *
(e) Authorization of Appropriations.--(1) There are
authorized to be appropriated to carry out this section amounts
as follows:
(A) * * *
* * * * * * *
(F) $50,000,000 for each of fiscal years 2007 through
[2013] 2018.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE
SUBCHAPTER i--definitions
Sec.
3301. Definitions.
* * * * * * *
SUBCHAPTER iii--administrative provisions
* * * * * * *
3326. Election to receive educational assistance.
* * * * * * *
SUBCHAPTER II--EDUCATIONAL ASSISTANCE
Sec. 3311. Educational assistance for service in the Armed Forces
commencing on or after September 11, 2001:
entitlement
(a) * * *
(b) Covered Individuals.--An individual described in this
subsection is any individual as follows:
(1) * * *
(9) An individual who is the child of a person who,
on or after September 11, [2001, dies in line of duty
while serving on active duty as a member of the Armed
Forces.] 2001--
(A) dies in line of duty while serving on
active duty as a member of the Armed Forces; or
(B) is awarded the Purple Heart for an injury
and dies as a result of that injury during the
31-day period beginning on the date of the
person's discharge or release from active duty
service in the Armed Forces.
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3326. Election to receive educational assistance
(a) Individuals Eligible To Elect Participation in Post-9/11
Educational Assistance.--An individual may elect to receive
educational assistance under this chapter if such individual--
(1) as of August 1, 2009--
(A) is entitled to basic educational
assistance under chapter 30 of the title and
has used, but retains unused, entitlement under
that chapter;
(B) is entitled to educational assistance
under chapter 107, 1606, or 1607 of title 10
and has used, but retains unused, entitlement
under the applicable chapter;
(C) is entitled to basic educational
assistance under chapter 30 of this title but
has not used any entitlement under that
chapter;
(D) is entitled to educational assistance
under chapter 107, 1606, or 1607 of title 10
but has not used any entitlement under such
chapter;
(E) is a member of the Armed Forces who is
eligible for receipt of basic educational
assistance under chapter 30 this title and is
making contributions toward such assistance
under section 3011(b) or 3012(c) of this title;
or
(F) is a member of the Armed Forces who is
not entitled to basic educational assistance
under chapter 30 of this title by reason of an
election under section 3011(c)(1) or 3012(d)(1)
of this title; and
(2) as of the date of the individual's election under
this paragraph, meets the requirements for entitlement
to educational assistance under this chapter.
(b) Cessation of Contributions Toward GI Bill.--Effective as
of the first month beginning on or after the date of an
election under subsection (a) of an individual described by
paragraph (1)(E) of that subsection, the obligation of the
individual to make contributions under section 3011(b) or
3012(c) of this title, as applicable, shall cease, and the
requirements of such section shall be deemed to be no longer
applicable to the individual.
(c) Revocation of Remaining Transferred Entitlement.--
(1) Election to revoke.--If, on the date an
individual described in paragraph (1)(A) or (1)(C) of
subsection (a) makes an election under that subsection,
a transfer of the entitlement of the individual to
basic educational assistance under section 3020 of this
title is in effect and a number of months of the
entitlement so transferred remain unutilized, the
individual may elect to revoke all or a portion of the
entitlement so transferred that remains unutilized.
(2) Availability of revoked entitlement.--Any
entitlement revoked by an individual under this
paragraph shall no longer be available to the dependent
to whom transferred, but shall be available to the
individual instead for educational assistance under
chapter 33 of this title in accordance with the
provisions of this section.
(3) Availability of unrevoked entitlement.--Any
entitlement described in paragraph (1) that is not
revoked by an individual in accordance with that
paragraph shall remain available to the dependent or
dependents concerned in accordance with the current
transfer of such entitlement under section 3020 of this
title.
(d) Post-9/11 Educational Assistance.--
(1) In general.--Subject to paragraph (2) and except
as provided in subsection (e), an individual making an
election under subsection (a) shall be entitled to
educational assistance under this chapter in accordance
with the provisions of this chapter, instead of basic
educational assistance under chapter 30 this title, or
educational assistance under chapter 107, 1606, or 1607
of title 10, as applicable.
(2) Limitation on entitlement for certain
individuals.--In the case of an individual making an
election under subsection (a) who is described by
paragraph (1)(A) of that subsection, the number of
months of entitlement of the individual to educational
assistance under this chapter 33 shall be the number of
months equal to--
(A) the number of months of unused
entitlement of the individual under chapter 30
of this title, as of the date of the election,
plus
(B) the number of months, if any, of
entitlement revoked by the individual under
subsection (c)(1).
(e) Continuing Entitlement to Educational Assistance not
Available Under 9/11 Assistance Program.--
(1) In general.--In the event educational assistance
to which an individual making an election under
subsection (a) would be entitled under chapter 30 of
this title, or chapter 107, 1606, or 1607 of title 10,
as applicable, is not authorized to be available to the
individual under the provisions of this chapter the
individual shall remain entitled to such educational
assistance in accordance with the provisions of the
applicable chapter.
(2) Charge for use of entitlement.--The utilization
by an individual of entitlement under paragraph (1)
shall be chargeable against the entitlement of the
individual to educational assistance under this chapter
at the rate of one month of entitlement under this
chapter for each month of entitlement utilized by the
individual under paragraph (1) (as determined as if
such entitlement were utilized under the provisions of
chapter 30 of this title, or chapter 107, 1606, or 1607
of title 10, as applicable).
(f) Additional Post-9/11 Assistance for Members Having Made
Contributions Toward GI Bill.--
(1) Additional assistance.--In the case of an
individual making an election under subsection (a) who
is described by subparagraph (A), (C), or (E) of
paragraph (1) of that subsection, the amount of
educational assistance payable to the individual under
this chapter 33 as a monthly stipend payable under
paragraph (1)(B) of section 3313(c) of this title, or
under paragraphs (2) through (7) of that section (as
applicable), shall be the amount otherwise payable as a
monthly stipend under the applicable paragraph
increased by the amount equal to--
(A) the total amount of contributions toward
basic educational assistance made by the
individual under section 3011(b) or 3012(c) of
this title, as of the date of the election,
multiplied by
(B) the fraction--
(i) the numerator of which is--
(I) the number of months of
entitlement to basic
educational assistance under
chapter 30 of this title
remaining to the individual at
the time of the election; plus
(II) the number of months, if
any, of entitlement under such
chapter 30 revoked by the
individual under subsection
(c)(1); and
(ii) the denominator of which is 36
months.
(2) Months of remaining entitlement for certain
individuals.--In the case of an individual covered by
paragraph (1) who is described by subsection (a)(1)(E),
the number of months of entitlement to basic
educational assistance remaining to the individual for
purposes of paragraph (1)(B)(i)(II) shall be 36 months.
(3) Timing of payment.--The amount payable with
respect to an individual under paragraph (1) shall be
paid to the individual together with the last payment
of the monthly stipend payable to the individual under
paragraph (1)(B) of section 3313(c) of this title, or
under subsections (b) through (g) of that section (as
applicable), before the exhaustion of the individual's
entitlement to educational assistance under this
chapter.
(g) Continuing Entitlement to Additional Assistance for
Critical Skills or Speciality and Additional Service.--An
individual making an election under subsection (a)(1) who, at
the time of the election, is entitled to increased educational
assistance under section 3015(d) of this title, or section
16131(i) of title 10, or supplemental educational assistance
under subchapter III of chapter 30 of this title, shall remain
entitled to such increased educational assistance or
supplemental educational assistance in the utilization of
entitlement to educational assistance under this chapter, in an
amount equal to the quarter, semester, or term, as applicable,
equivalent of the monthly amount of such increased educational
assistance or supplemental educational assistance payable with
respect to the individual at the time of the election.
(h) Alternative Election by Secretary.--
(1) In general.--In the case of an individual who, on
or after October 1, 2014, submits to the Secretary an
election under this section that the Secretary
determines is clearly against the interests of the
individual, the Secretary may make an alternative
election on behalf of the individual that the Secretary
determines is in the best interests of the individual.
(2) Notice.--If the Secretary makes an election on
behalf of an individual under this subsection, the
Secretary shall notify the individual by not later than
seven days after making such election and shall provide
the individual with a 30-day period, beginning on the
date of the individual's receipt of such notice, during
which the individual may modify or revoke the election
made by the Secretary on the individual's behalf. The
Secretary shall include, as part of such notice, a
clear statement of why the alternative election made by
the Secretary is in the best interests of the
individual as compared to the election submitted by the
individual. The Secretary shall provide the notice
required under this paragraph by electronic means
whenever possible.
(i) Irrevocability of Elections.--An election under
subsection (a) or (c)(1) is irrevocable.
* * * * * * *
CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
* * * * * * *
SUBCHAPTER II--MISCELLANEOUS PROVISIONS
* * * * * * *
Sec. 3684. Reports by veterans, eligible persons, and institutions;
reporting fee
(a)(1) Except as provided in paragraph (2) of this
subsection, the veteran or eligible person and the educational
institution offering a course in which such veteran or eligible
person is enrolled under chapter 31, 32, 33, 34, 35, or 36 of
this title shall, without delay, report to the Secretary, in
the form prescribed by the Secretary, such enrollment and any
interruption or termination of the education of each such
veteran or eligible person. The date of such interruption or
termination will be the last date of pursuit, or, in the case
of correspondence training, the last date a lesson was serviced
by a school.
* * * * * * *
(4) For purposes of this subsection, the term ``educational
institution'' may include a group, district, or consortium of
separately accredited educational institutions located in the
same State that are organized in a manner that facilitates the
centralized reporting of the enrollments in such group,
district, or consortium of institutions.
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
SEC. 3729. LOAN FEE
(a) * * *
(b) Determination of Fee.--(1) * * *
(2) The loan fee table referred to in paragraph (1) is as
follows:
LOAN FEE TABLE
------------------------------------------------------------------------
Active duty
Type of loan veteran Reservist Other obligor
------------------------------------------------------------------------
(A)(i) Initial 2.00 2.75 NA
loan
described in
section 3710
38 USC Sec.
3710(a) to
purchase or
construct a
dwelling with
0-down, or
any other
initial loan
described in
section 3710
38 USC Sec.
3710(a) other
than with 5-
down or 10-
down (closed
before
January 1,
2004)
(A)(ii) 2.20 2.40 NA
Initial loan
described in
section 3710
38 USC Sec.
3710 (a) to
purchase or
construct a
dwelling with
0-down, or
any other
initial loan
described in
section 3710
38 USC Sec.
3710(a) other
than with 5-
down or 10-
down (closed
on or after
January 1,
2004, and
before
October 1,
2004)
(A)(iii) 2.15 2.40 NA
Initial loan
described in
section 3710
38 USC Sec.
3710(a) to
purchase or
construct a
dwelling with
0-down, or
any other
initial loan
described in
section 3710
38 USC Sec.
3710(a) other
than with 5-
down or 10-
down (closed
on or after
October 1,
2004, and
before
October 1,
2017)
(A)(iv) 1.40 1.65 NA
Initial loan
described in
section 3710
(a) to
purchase or
construct a
dwelling with
0-down, or
any other
initial loan
described in
section
3710(a) other
than with 5-
down or 10-
down (closed
on or after
October 1,
2017)
(B)(i) 3.30 3.30 NA
Subsequent
loan
described in
section 3710
(a) to
purchase or
construct a
dwelling with
0-down, or
any other
subsequent
loan
described in
section
3710(a)
(closed
before
[October 1,
2017] October
1, 2018)
(B)(ii) 1.25 1.25 NA
Subsequent
loan
described in
section 3710
(a) to
purchase or
construct a
dwelling with
0-down, or
any other
subsequent
loan
described in
section 3710
(a) (closed
on or after
[October 1,
2017] October
1, 2018)
(C)(i) Loan 1.50 1.75 NA
described in
section
3710(a) to
purchase or
construct a
dwelling with
5-down
(closed
before
October 1,
2017)
(C)(ii) Loan 0.75 1.00 NA
described in
section
3710(a) to
purchase or
construct a
dwelling with
5-down
(closed on or
after October
1, 2017)
(D)(i) Initial 1.25 1.50 NA
loan
described in
section
3710(a) to
purchase or
construct a
dwelling with
10-down
(closed
before
October 1,
2017)
(D)(ii) 0.50 0.75 NA
Initial loan
described in
section
3710(a) to
purchase or
construct a
dwelling with
10-down
(closed on or
after October
1, 2017)
(E) Interest 0.50 0.50 NA
rate
reduction
refinancing
loan
(F) Direct 1.00 1.00 NA
loan under
section 3711
(G) 1.00 1.00 NA
Manufactured
home loan
under section
3712 (other
than an
interest rate
reduction
refinancing
loan)
(H) Loan to 1.25 1.25 NA
Native
American
veteran under
section 3762
(other than
an interest
rate
reduction
refinancing
loan)
(I) Loan 0.50 0.50 0.50
assumption
under section
3714
(J) Loan under 2.25 2.25 2.25
section
3733(a)
------------------------------------------------------------------------
* * * * * * *
PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
* * * * * * *
CHAPTER 77--VETERANS BENEFITS ADMINISTRATION
SUBCHAPTER I--ORGANIZATION; GENERAL
Sec. 7701. Organization of the Administration
(a) There is in the Department of Veterans Affairs a Veterans
Benefits Administration. The primary function of the Veterans
Benefits Administration is the administration of nonmedical
benefits programs of the Department which provide assistance,
other than assistance related to economic opportunity, to
veterans and their dependents and survivors.
* * * * * * *
Sec. 7703. Functions of the Administration
The Veterans Benefits Administration is responsible for the
administration of the following programs of the Department:
(1) * * *
[(2) Vocational rehabilitation and educational
assistance programs.
[(3) Veterans' housing loan programs.]
[(4)] (2) Veterans' and servicemembers' life
insurance programs.
[(5)] (3) Outreach programs and other veterans'
services programs.
* * * * * * *
CHAPTER 80--VETERANS ECONOMIC OPPORTUNITY ADMINISTRATION
8001. Organization of Administration.
8002. Functions of Administration.
Sec. 8001. Organization of Administration
(a) Veterans Economic Opportunity Administration.--There is
in the Department of Veterans Affairs a Veterans Economic
Opportunity Administration. The primary function of the
Veterans Economic Opportunity Administration is the
administration of the programs of the Department which provide
assistance related to economic opportunity to veterans and
their dependents and survivors.
(b) Under Secretary for Economic Opportunity.--The Veterans
Economic Opportunity Administration is under the Under
Secretary for Veterans Economic Opportunity, who is directly
responsible to the Secretary for the operations of the
Administration.
Sec. 8002. Functions of Administration
The Veterans Economic Opportunity Administration is
responsible for the administration of the following programs of
the Department:
(1) Vocational rehabilitation and employment
programs.
(2) Educational assistance programs.
(3) Veterans' housing loan and related programs.
(4) The veterans small business program under section
8127 of this title.
----------
SECTION 5003 OF THE POST-9/11 VETERANS EDUCATIONAL ASSISTANCE ACT OF
2008
SEC. 5003. EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE ARMED FORCES WHO
SERVE AFTER SEPTEMBER 11, 2001
(a) * * *
* * * * * * *
[(c) Applicability to Individuals Under Montgomery GI Bill
Program.--
[(1) Individuals eligible to elect participation in
post-9/11 educational assistance.--An individual may
elect to receive educational assistance under chapter
33 of title 38, United States Code (as added by
subsection (a)), if such individual--
[(A) as of August 1, 2009--
[(i) is entitled to basic educational
assistance under chapter 30 of title
38, United States Code, and has used,
but retains unused, entitlement under
that chapter;
[(ii) is entitled to educational
assistance under chapter 107, 1606, or
1607 of title 10, United States Code,
and has used, but retains unused,
entitlement under the applicable
chapter;
[(iii) is entitled to basic
educational assistance under chapter 30
of title 38, United States Code, but
has not used any entitlement under that
chapter;
[(iv) is entitled to educational
assistance under chapter 107, 1606, or
1607 of title 10, United States Code,
but has not used any entitlement under
such chapter;
[(v) is a member of the Armed Forces
who is eligible for receipt of basic
educational assistance under chapter 30
of title 38, United States Code, and is
making contributions toward such
assistance under section 3011(b) or
3012(c) of such title; or
[(vi) is a member of the Armed Forces
who is not entitled to basic
educational assistance under chapter 30
of title 38, United States Code, by
reason of an election under section
3011(c)(1) or 3012(d)(1) of such title;
and
[(B) as of the date of the individual's
election under this paragraph, meets the
requirements for entitlement to educational
assistance under chapter 33 of title 38, United
States Code (as so added).
[(2) Cessation of contributions toward gi bill.--
Effective as of the first month beginning on or after
the date of an election under paragraph (1) of an
individual described by subparagraph (A)(v) of that
paragraph, the obligation of the individual to make
contributions under section 3011(b) or 3012(c) of title
38, United States Code, as applicable, shall cease, and
the requirements of such section shall be deemed to be
no longer applicable to the individual.
[(3) Revocation of remaining transferred
entitlement.--
[(A) Election to revoke.--If, on the date an
individual described in subparagraph (A)(i) or
(A)(iii) of paragraph (1) makes an election
under that paragraph, a transfer of the
entitlement of the individual to basic
educational assistance under section 3020 of
title 38, United States Code, is in effect and
a number of months of the entitlement so
transferred remain unutilized, the individual
may elect to revoke all or a portion of the
entitlement so transferred that remains
unutilized.
[(B) Availability of revoked entitlement.--
Any entitlement revoked by an individual under
this paragraph shall no longer be available to
the dependent to whom transferred, but shall be
available to the individual instead for
educational assistance under chapter 33 of
title 38, United States Code (as so added), in
accordance with the provisions of this
subsection.
[(C) Availability of unrevoked entitlement.--
Any entitlement described in subparagraph (A)
that is not revoked by an individual in
accordance with that subparagraph shall remain
available to the dependent or dependents
concerned in accordance with the current
transfer of such entitlement under section 3020
of title 38, United States Code.
[(4) Post-9/11 educational assistance.--
[(A) In general.--Subject to subparagraph (B)
and except as provided in paragraph (5), an
individual making an election under paragraph
(1) shall be entitled to educational assistance
under chapter 33 of title 38, United States
Code (as so added), in accordance with the
provisions of such chapter, instead of basic
educational assistance under chapter 30 of
title 38, United States Code, or educational
assistance under chapter 107, 1606, or 1607 of
title 10, United States Code, as applicable.
[(B) Limitation on entitlement for certain
individuals.--In the case of an individual
making an election under paragraph (1) who is
described by subparagraph (A)(i) of that
paragraph, the number of months of entitlement
of the individual to educational assistance
under chapter 33 of title 38, United States
Code (as so added), shall be the number of
months equal to--
[(i) the number of months of unused
entitlement of the individual under
chapter 30 of title 38, United States
Code, as of the date of the election,
plus
[(ii) the number of months, if any,
of entitlement revoked by the
individual under paragraph (3)(A).
[(5) Continuing entitlement to educational assistance
not available under 9/11 assistance program.--
[(A) In general.--In the event educational
assistance to which an individual making an
election under paragraph (1) would be entitled
under chapter 30 of title 38, United States
Code, or chapter 107, 1606, or 1607 of title
10, United States Code, as applicable, is not
authorized to be available to the individual
under the provisions of chapter 33 of title 38,
United States Code (as so added), the
individual shall remain entitled to such
educational assistance in accordance with the
provisions of the applicable chapter.
[(B) Charge for use of entitlement.--The
utilization by an individual of entitlement
under subparagraph (A) shall be chargeable
against the entitlement of the individual to
educational assistance under chapter 33 of
title 38, United States Code (as so added), at
the rate of one month of entitlement under such
chapter 33 for each month of entitlement
utilized by the individual under subparagraph
(A) (as determined as if such entitlement were
utilized under the provisions of chapter 30 of
title 38, United States Code, or chapter 107,
1606, or 1607 of title 10, United States Code,
as applicable).
[(6) Additional post-9/11 assistance for members
having made contributions toward gi bill.--
[(A) Additional assistance.--In the case of
an individual making an election under
paragraph (1) who is described by clause (i),
(iii), or (v) of subparagraph (A) of that
paragraph, the amount of educational assistance
payable to the individual under chapter 33 of
title 38, United States Code (as so added), as
a monthly stipend payable under paragraph
(1)(B) of section 3313(c) of such title, or
under paragraphs (2) through (7) of that
section (as applicable), shall be the amount
otherwise payable as a monthly stipend under
the applicable paragraph increased by the
amount equal to--
[(i) the total amount of
contributions toward basic educational
assistance made by the individual under
section 3011(b) or 3012(c) of title 38,
United States Code, as of the date of
the election, multiplied by
[(ii) the fraction--
[(I) the numerator of which
is--
[(aa) the number of
months of entitlement
to basic educational
assistance under
chapter 30 of title 38,
United States Code,
remaining to the
individual at the time
of the election; plus
[(bb) the number of
months, if any, of
entitlement under such
chapter 30 revoked by
the individual under
paragraph (3)(A); and
[(II) the denominator of
which is 36 months.
[(B) Months of remaining entitlement for
certain individuals.--In the case of an
individual covered by subparagraph (A) who is
described by paragraph (1)(A)(v), the number of
months of entitlement to basic educational
assistance remaining to the individual for
purposes of subparagraph (A)(ii)(I)(aa) shall
be 36 months.
[(C) Timing of payment.--The amount payable
with respect to an individual under
subparagraph (A) shall be paid to the
individual together with the last payment of
the monthly stipend payable to the individual
under paragraph (1)(B) of section 3313(c) of
title 38, United States Code (as so added), or
under paragraphs (2) through (7) of that
section (as applicable), before the exhaustion
of the individual's entitlement to educational
assistance under chapter 33 of such title (as
so added).
[(7) Continuing entitlement to additional assistance
for critical skills or speciality and additional
service.--An individual making an election under
paragraph (1)(A) who, at the time of the election, is
entitled to increased educational assistance under
section 3015(d) of title 38, United States Code, or
section 16131(i) of title 10, United States Code, or
supplemental educational assistance under subchapter
III of chapter 30 of title 38, United States Code,
shall remain entitled to such increased educational
assistance or supplemental educational assistance in
the utilization of entitlement to educational
assistance under chapter 33 of title 38, United States
Code (as so added), in an amount equal to the quarter,
semester, or term, as applicable, equivalent of the
monthly amount of such increased educational assistance
or supplemental educational assistance payable with
respect to the individual at the time of the election.
[(8) Irrevocability of elections.--An election under
paragraph (1) or (3)(A) is irrevocable.]
----------
SERVICEMEMBERS CIVIL RELIEF ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents of this Act is
as follows:
* * * * * * *
TITLE II--GENERAL RELIEF
* * * * * * *
208. Child custody protection.
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES, TELEPHONE SERVICE CONTRACTS
* * * * * * *
Sec. 303A. Mortgages and trust deeds of certain servicemembers,
surviving spouses, and disabled veterans.
Sec. 303B. Treatment of relocation for active duty for purposes of
mortgage refinancing.
* * * * * * *
TITLE I--GENERAL PROVISIONS
* * * * * * *
SEC. 107. WAIVER OF RIGHTS PURSUANT TO WRITTEN AGREEMENT.
(a) * * *
* * * * * * *
(e) Other Individuals.--For purposes of this section, the
term ``servicemember'' includes any covered individual under
section 303A.
SEC. 108. EXERCISE OF RIGHTS UNDER ACT NOT TO AFFECT CERTAIN FUTURE
FINANCIAL TRANSACTIONS.
[Application by] (a) Application or Receipt._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) * * *
* * * * * * *
(b) Eligibility.--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.
* * * * * * *
TITLE II--GENERAL RELIEF
* * * * * * *
SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE MILITARY
SERVICE.
(a) * * *
* * * * * * *
(d) Lending Institution Requirements.--
(1) Compliance officers.--Each lending institution
subject to the requirements of this section shall
designate an employee of the institution as a
compliance officer who is responsible for ensuring the
institution's compliance with this section and for
distributing information to servicemembers whose
obligations and liabilities are covered by this
section.
(2) Toll-free telephone number.--During any fiscal
year, a lending institution subject to the requirements
of this section that had annual assets for the
preceding fiscal year of $10,000,000,000 or more shall
maintain a toll-free telephone number and shall make
such telephone number available on the primary Internet
website of the institution.
[(d)] (e) Definitions.--In this section:
(1) * * *
* * * * * * *
[(e)] (f) Penalty.--Whoever knowingly violates subsection (a)
shall be fined as provided in title 18, United States Code,
imprisoned for not more than one year, or both.
SEC. 208. CHILD CUSTODY PROTECTION.
(a) Restriction on Temporary Custody Order.--If a court
renders a temporary order for custodial responsibility for a
child based solely on a deployment or anticipated deployment of
a parent who is a servicemember, then the court shall require
that, upon the return of the servicemember from deployment, the
custody order that was in effect immediately preceding the
temporary order shall be reinstated, unless the court finds
that such a reinstatement is not in the best interest of the
child, except that any such finding shall be subject to
subsection (b).
(b) Limitation on Consideration of Member's Deployment in
Determination of Child's Best Interest.--If a motion or a
petition is filed seeking a permanent order to modify the
custody of the child of a servicemember, no court may consider
the absence of the servicemember by reason of deployment, or
the possibility of deployment, as the sole factor in
determining the best interest of the child.
(c) No Federal Jurisdiction or Right of Action or Removal.--
Nothing in this section shall create a Federal right of action
or otherwise give rise to Federal jurisdiction or create a
right of removal.
(d) Preemption.--In any case where State law applicable to a
child custody proceeding involving a temporary order as
contemplated in this section provides a higher standard of
protection to the rights of the parent who is a deploying
servicemember than the rights provided under this section with
respect to such temporary order, the appropriate court shall
apply the higher State standard.
(e) Deployment Defined.--In this section, the term
``deployment'' means the movement or mobilization of a
servicemember to a location for a period of longer than 60 days
and not longer than 540 days pursuant to temporary or permanent
official orders--
(1) that are designated as unaccompanied;
(2) for which dependent travel is not authorized; or
(3) that otherwise do not permit the movement of
family members to that location.
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES, TELEPHONE SERVICE CONTRACTS
* * * * * * *
SEC. 303A. MORTGAGES AND TRUST DEEDS OF CERTAIN SERVICEMEMBERS,
SURVIVING SPOUSES, AND DISABLED VETERANS.
(a) Mortgage as Security.--This section applies only to an
obligation on real or personal property owned by a covered
individual that--
(1) originated at any time and for which the covered
individual 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.--
(1) In general.--In accordance with subsection
(d)(1), in a judicial action pending or in a
nonjudicial action commenced during a covered time
period to enforce an obligation described in subsection
(a), a court--
(A) may, after a hearing and on its own
motion, stay the proceedings until the end of
the covered time period; and
(B) shall, upon application by a covered
individual, stay the proceedings until the end
of the covered time period.
(2) Obligation to stop proceedings.--Upon receipt of
notice provided under subsection (d)(1), a mortgagee,
trustee, or other creditor seeking to foreclose on real
property secured by an obligation covered by this
section using any judicial or nonjudicial proceedings
shall immediately stop any such proceeding until the
end of the covered time period.
(c) Sale or Foreclosure.--A sale, judicial or nonjudicial
foreclosure, or seizure of property for a breach of an
obligation described in subsection (a) that is not stayed under
subsection (b) shall not be valid during a covered time period
except--
(1) upon a court order granted before such sale,
judicial or nonjudicial 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) Notice Required.--
(1) In general.--To be covered under this section, a
covered individual shall provide to the mortgagee,
trustee, or other creditor written notice that such
individual is so covered.
(2) Manner.--Written notice under paragraph (1) may
be provided electronically.
(3) Time.--Notice provided under paragraph (1) shall
be provided during the covered time period.
(4) Contents.--With respect to a servicemember
described in subsection (g)(1)(A), notice shall
include--
(A) a copy of the servicemember's official
military orders, or any notification,
certification, or verification from a
servicemember's commanding officer that
provides evidence of servicemember's
eligibility for special pay as described in
subsection (g)(1)(A); or
(B) an official notice using a form designed
under paragraph (5).
(5) Official forms.--
(A) In general.--The Secretary of Defense
shall design and distribute an official
Department of Defense form that can be used by
an individual to give notice under paragraph
(1).
(B) Use of official form not required.--
Failure by any individual to use a form
designed or distributed under subparagraph (A)
to provide notice shall not make such provision
of notice invalid.
(e) Aggregate Duration.--The aggregate duration for which a
covered individual (except a servicemember described in
subsection (g)(1)(A)) may be covered under this section is one
year.
(f) 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.
(g) Definitions.--In this section:
(1) Covered individual.--The term ``covered
individual'' means the following individuals:
(A) A servicemember who is or was eligible
for hostile fire or imminent danger special pay
under section 310 of title 37, United States
Code, during a period of military service.
(B) A servicemember placed on convalescent
status, including a servicemember transferred
to the temporary disability retired list under
section 1202 or 1205 of title 10, United States
Code.
(C) A veteran who was medically discharged
and retired under chapter 61 of title 10,
United States Code, except for a veteran
described in section 1207 of such title.
(D) A surviving spouse (as defined in section
101(3) of title 38, United States Code, and in
accordance with section 103 of such title) of a
servicemember who died while in military
service if such spouse is the successor in
interest to property covered under subsection
(a).
(2) Covered time period.--The term ``covered time
period'' means the following time periods:
(A) With respect to a servicemember who is or
was eligible for hostile fire or imminent
danger special pay under section 310 of title
37, United States Code, during a period of
military service, during the period beginning
on the first day on which the servicemember is
or was eligible for such special pay during
such period of military service and ending on
the date that is one year after the last day of
such period of military service.
(B) With respect to a servicemember described
in paragraph (1)(B), during the one-year period
beginning on the date on which the
servicemember is placed on convalescent status
or transferred to the temporary disability
retired list under section 1202 or 1205 of
title 10, United States Code.
(C) With respect to a veteran described in
paragraph (1)(C), during the one-year period
beginning on the date of the retirement of such
veteran.
(D) With respect to a surviving spouse of a
servicemember as described in paragraph (1)(D),
during the one-year period beginning on the
date on which the spouse receives notice of the
death of the servicemember.
SEC. 303B. TREATMENT OF RELOCATION FOR ACTIVE DUTY FOR PURPOSES OF
MORTGAGE REFINANCING.
(a) Treatment of Absence From Residence due to Active Duty.--
(1) In general.--Subject to paragraph (2), if, at any
time that a servicemember who is the mortgagor under an
existing mortgage does not reside in the residence that
secures the existing mortgage because of relocation
described in subsection (c)(1)(B), such servicemember
inquires about or applies for a covered refinancing
mortgage, such servicemember shall be, for all purposes
relating to the covered refinancing mortgage, including
such inquiry or application and eligibility for and
compliance with any underwriting criteria and standards
regarding such covered refinancing mortgage, considered
to occupy the residence that secures the existing
mortgage to be paid or prepaid by such covered
refinancing mortgage as the principal residence of the
servicemember during the period of any such relocation.
(2) Limitation.--Paragraph (1) shall not apply with
respect to a servicemember at any time if, during the
five-year period preceding such time, the servicemember
entered into a covered refinancing mortgage pursuant to
this section.
(b) Mortgages Originated Before Period Military Service.--If
a covered refinancing mortgage is entered into pursuant to this
section with respect to an existing mortgage that originated
before the period of the servicemember's military service, such
covered refinancing mortgage shall be deemed to be an
obligation that originated before the period of the
servicemember's military service and for which the
servicemember is still obligated for purposes of section
303(a)(1).
(c) Definitions.--In this section:
(1) Existing mortgage.--The term ``existing
mortgage'' means a mortgage that is secured by a 1- to
4-family residence, including a condominium or a share
in a cooperative ownership housing association, that
was the principal residence of a servicemember for a
period that--
(A) had a duration of 13 consecutive months
or longer; and
(B) ended upon the relocation of the
servicemember caused by the servicemember
receiving military orders for a permanent
change of station or to deploy with a military
unit, or as an individual in support of a
military operation, for a period of not less
than 90 days that did not allow the
servicemember to continue to occupy such
residence as a principal residence.
(2) Covered refinancing mortgage.--The term ``covered
refinancing mortgage'' means any mortgage--
(A) that is made for the purpose of paying or
prepaying, and extinguishing, the outstanding
obligations under an existing mortgage or
mortgages; and
(B) that is secured by the same residence
that secured such existing mortgage or
mortgages.
* * * * * * *
TITLE VIII--CIVIL LIABILITY
SEC. 801. ENFORCEMENT BY THE ATTORNEY GENERAL.
(a) * * *
(b) Relief.--In a civil action commenced under subsection
(a), the court may--
(1) * * *
* * * * * * *
[(3) may, to vindicate the public interest, assess a
civil penalty--
[(A) in an amount not exceeding $55,000 for a
first violation; and
[(B) in an amount not exceeding $110,000 for
any subsequent violation.]
(3) to vindicate the public interest, assess a civil
penalty--
(A) with respect to a violation of section
207, 303, or 303A regarding real property--
(i) in an amount not exceeding
$110,000 for a first violation; and
(ii) in an amount not exceeding
$220,000 for any subsequent violation;
and
(B) with respect to any other violation of
this Act--
(i) in an amount not exceeding
$55,000 for a first violation; and
(ii) in an amount not exceeding
$110,000 for any subsequent violation.
* * * * * * *