[House Report 115-865]
[From the U.S. Government Publishing Office]


115th Congress     }                               {          Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                               {          115-865

======================================================================



 
                  GOLD STAR SPOUSES LEASING RELIEF ACT

                                _______
                                

 July 24, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Roe of Tennessee, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5882]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 5882) to amend the Servicemembers Civil Relief 
Act to provide for the termination by a spouse of a lessee of 
certain leases when the lessee dies while in military service, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Subcommittee Consideration.......................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Earmarks and Tax and Tariff Benefits.............................     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     5
Statement on Duplication of Federal Programs.....................     5
Disclosure of Directed Rulemaking................................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill as Reported.............     5

                          Purpose and Summary

    H.R. 5882, the Gold Star Spouses Leasing Relief Act, would 
amend the Servicemembers Civil Relief Act (SCRA) to allow the 
spouse of a servicemember who dies on active duty to terminate 
a residential lease within one year of the servicemember's 
death, without penalty. Representative Cheri Bustos of Illinois 
introduced H.R. 5882 on May 18, 2018.

                  Background and Need for Legislation

    Section 305(a) of the SCRA authorizes a servicemember to 
terminate a residential lease if they receive orders for a 
permanent change of station or to deploy to support a military 
operation for more than 90 days. This protection is extended to 
dependents of servicemembers if they are also included on the 
lease. However, if the spouse is not on the lease and the 
servicemember dies during military service, the spouse does not 
receive protection against penalties their landlords might 
impose if they break the lease. This bill would amend this 
section of the SCRA to require landlords to allow these spouses 
to terminate their lease, without penalty, within one year of 
the servicemember's death. The Committee believes this 
amendment to the SCRA may be important for spouses who are only 
living in a location because of the servicemember's military 
service and may wish to move elsewhere after the 
servicemember's death.

                                Hearings

    On May 23, 2018, the Subcommittee on Economic Opportunity 
held a legislative hearing on several bills pending before the 
Subcommittee including H.R. 5882.
    The following witnesses testified:
          The Honorable Julia Brownley, U.S. House of 
        Representatives, 26th District, California; The 
        Honorable Scott Peters, U.S. House of Representatives, 
        52nd District, California; The Honorable Brad Wenstrup, 
        U.S. House of Representatives, 2nd District, Ohio; The 
        Honorable Cheri Bustos, U.S. House of Representatives, 
        17th District, Illinois; The Honorable Ryan Costello, 
        U.S. House of Representatives, 6th District, 
        Pennsylvania; Ms. Margarita Devlin, Principal Deputy 
        Under Secretary for Benefits, Veterans Benefits 
        Administration, U.S. Department of Veterans Affairs; 
        Mr. John Kamin, Assistant Director, Veterans Employment 
        and Education Division, The American Legion; Ms. Lauren 
        Augustine, Vice President of Government Affairs, 
        Student Veterans of America; and Ms. Rebecca Burgess, 
        Program Manager, Program on American Citizenship, 
        American Enterprise Institute.
    Statements for the record were submitted by:
          U.S. Department of Defense; U.S. Department of 
        Justice; Tragedy Assistance Program for Survivors; and 
        Paralyzed Veterans of America

                       Subcommittee Consideration

    There was no Subcommittee consideration of H.R. 5882.

                        Committee Consideration

    On July 12, 2018 the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 5882 to be 
reported favorably to the House of Representatives by voice 
vote

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, there were no recorded votes 
taken on amendments or in connection with ordering H.R. 5882 
reported to the House. A motion by Representative Tim Walz of 
Minnesota to report H.R. 5882 favorably to the House of 
Representatives was adopted 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 to amend SCRA to provide additional 
protections to the surviving spouse of servicemembers who die 
on active duty.

   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. 5882 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. 
5882 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. 5882 provided by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 19, 2018.
Hon. Phil Roe, M.D.,
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. 5882, the Gold 
Star Spouses Leasing Relief Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Logan Smith.
            Sincerely,
                                             Mark P. Hadley
                                        (For Keith Hall, Director).
    Enclosure.

H.R. 5882--Gold Star Spouses Leasing Relief Act

    Under current law, service members may terminate leases for 
residential, business, or other properties after receiving 
permanent change of station or deployment orders. H.R. 5882 
would permit the spouse of a service member who dies while in 
military service to terminate property leases previously 
entered into by the service member. Under the bill, the spouse 
could terminate such leases without charge or penalty during 
the year following the service member's death. CBO estimates 
that H.R. 5882 would have no effect on the federal budget.
    Enacting H.R. 5882 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 5882 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 5882 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA).
    The bill would impose a private-sector mandate as defined 
in UMRA by prohibiting real property lessors, in certain 
instances, from imposing early termination fees on the spouses 
of deceased service members. Due to the small population of 
spouses affected, CBO estimates that the cost of the mandate 
would fall below the annual private-sector threshold 
established in UMRA ($160 million in 2018, adjusted annually 
for inflation).
    The CBO staff contacts for this estimate are Logan Smith 
(for federal costs) and Andrew Laughlin (for mandates). The 
estimate was reviewed by Leo Lex, Deputy Assistant Director for 
Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R 5882 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. 
5882.

                 Statement of Constitutional Authority

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 5882 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 H.R. 5882 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 clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 5882 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(i) of H. Res. 5, 115th Cong. (2017), 
the Committee estimates that H.R. 5882 contains no directed 
rulemaking that would require the Secretary to prescribe 
regulations.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 of the bill would set the short title of this 
bill to be the ``Gold Star Spouses Leasing Relief Act''

Section 2. Termination of leases of premises of deceased servicemembers 
        who die while in military service

    Section 2 of the bill would amend section 305(a) of the 
SCRA by:
          (1) striking ``BY LEASEE'' in the subsection heading;
          (2) in the heading for paragraph (1), striking ``IN 
        GENERAL'' and inserting ``TERMINATION BY LESSEE''; and
          (3) by adding a new paragraph 3 at the end of this 
        subsection that would authorize that the spouse of a 
        lessee on a lease described in subsection (b)(1) to 
        terminate the lease during the one-year period 
        beginning on the date of the death of the lessee, if 
        the lessee dies while in military service.

         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, and existing law in which no 
change is proposed is shown in roman):

         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, and existing law in which no 
change is proposed is shown in roman):

                    SERVICEMEMBERS CIVIL RELIEF ACT



           *       *       *       *       *       *       *
 TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, 
LEASES, TELEPHONE SERVICE CONTRACTS

           *       *       *       *       *       *       *


SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VEHICLE LEASES.

  (a) Termination [by Lessee].--
          (1)  [In general] Termination by lessee.--The lessee 
        on a lease described in subsection (b) may, at the 
        lessee's option, terminate the lease at any time 
        after--
                  (A) the lessee's entry into military service; 
                or
                  (B) the date of the lessee's military orders 
                described in paragraph (1)(B) or (2)(B) of 
                subsection (b), as the case may be.
          (2) Joint leases.--A lessee's termination of a lease 
        pursuant to this subsection shall terminate any 
        obligation a dependent of the lessee may have under the 
        lease.
          (3) Death of lessee.--The spouse of the lessee on a 
        lease described in subsection (b)(1) may terminate the 
        lease during the one-year period beginning on the date 
        of the death of the lessee, if the lessee dies while in 
        military service.
  (b) Covered Leases.--This section applies to the following 
leases:
          (1) Leases of premises.--A lease of premises 
        occupied, or intended to be occupied, by a 
        servicemember or a servicemember's dependents for a 
        residential, professional, business, agricultural, or 
        similar purpose if--
                  (A) the lease is executed by or on behalf of 
                a person who thereafter and during the term of 
                the lease enters military service; or
                  (B) the servicemember, while in military 
                service, executes the lease and thereafter 
                receives 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.
          (2) Leases of motor vehicles.--A lease of a motor 
        vehicle used, or intended to be used, by a 
        servicemember or a servicemember's dependents for 
        personal or business transportation if--
                  (A) the lease is executed by or on behalf of 
                a person who thereafter and during the term of 
                the lease enters military service under a call 
                or order specifying a period of not less than 
                180 days (or who enters military service under 
                a call or order specifying a period of 180 days 
                or less and who, without a break in service, 
                receives orders extending the period of 
                military service to a period of not less than 
                180 days); or
                  (B) the servicemember, while in military 
                service, executes the lease and thereafter 
                receives military orders--
                          (i) for a change of permanent 
                        station--
                                  (I) from a location in the 
                                continental United States to a 
                                location outside the 
                                continental United States; or
                                  (II) from a location in a 
                                State outside the continental 
                                United States to any location 
                                outside that State; or
                          (ii) to deploy with a military unit, 
                        or as an individual in support of a 
                        military operation, for a period of not 
                        less than 180 days.
  (c) Manner of Termination.--
          (1) In general.--Termination of a lease under 
        subsection (a) is made--
                  (A) by delivery by the lessee of written 
                notice of such termination, and a copy of the 
                servicemember's military orders, to the lessor 
                (or the lessor's grantee), or to the lessor's 
                agent (or the agent's grantee); and
                  (B) in the case of a lease of a motor 
                vehicle, by return of the motor vehicle by the 
                lessee to the lessor (or the lessor's grantee), 
                or to the lessor's agent (or the agent's 
                grantee), not later than 15 days after the date 
                of the delivery of written notice under 
                subparagraph (A).
          (2) Delivery of notice.--Delivery of notice under 
        paragraph (1)(A) may be accomplished--
                  (A) by hand delivery;
                  (B) by private business carrier; or
                  (C) by placing the written notice in an 
                envelope with sufficient postage and with 
                return receipt requested, and addressed as 
                designated by the lessor (or the lessor's 
                grantee) or to the lessor's agent (or the 
                agent's grantee), and depositing the written 
                notice in the United States mails.
  (d) Effective Date of Lease Termination.--
          (1) Lease of premises.--In the case of a lease 
        described in subsection (b)(1) that provides for 
        monthly payment of rent, termination of the lease under 
        subsection (a) is effective 30 days after the first 
        date on which the next rental payment is due and 
        payable after the date on which the notice under 
        subsection (c) is delivered. In the case of any other 
        lease described in subsection (b)(1), termination of 
        the lease under subsection (a) is effective on the last 
        day of the month following the month in which the 
        notice is delivered.
          (2) Lease of motor vehicles.--In the case of a lease 
        described in subsection (b)(2), termination of the 
        lease under subsection (a) is effective on the day on 
        which the requirements of subsection (c) are met for 
        such termination.
  (e) Arrearages and Other Obligations and Liabilities.--
          (1) Leases of premises.--Rent amounts for a lease 
        described in subsection (b)(1) that are unpaid for the 
        period preceding the effective date of the lease 
        termination shall be paid on a prorated basis. The 
        lessor may not impose an early termination charge, but 
        any taxes, summonses, or other obligations and 
        liabilities of the lessee in accordance with the terms 
        of the lease, including reasonable charges to the 
        lessee for excess wear, that are due and unpaid at the 
        time of termination of the lease shall be paid by the 
        lessee.
          (2) Leases of motor vehicles.--Lease amounts for a 
        lease described in subsection (b)(2) that are unpaid 
        for the period preceding the effective date of the 
        lease termination shall be paid on a prorated basis. 
        The lessor may not impose an early termination charge, 
        but any taxes, summonses, title and registration fees, 
        or other obligations and liabilities of the lessee in 
        accordance with the terms of the lease, including 
        reasonable charges to the lessee for excess wear or use 
        and mileage, that are due and unpaid at the time of 
        termination of the lease shall be paid by the lessee.
  (f) Rent Paid in Advance.--Rents or lease amounts paid in 
advance for a period after the effective date of the 
termination of the lease shall be refunded to the lessee by the 
lessor (or the lessor's assignee or the assignee's agent) 
within 30 days of the effective date of the termination of the 
lease.
  (g) Relief to Lessor.--Upon application by the lessor to a 
court before the termination date provided in the written 
notice, relief granted by this section to a servicemember may 
be modified as justice and equity require.
  (h) Misdemeanor.--Any person who knowingly seizes, holds, or 
detains the personal effects, security deposit, or other 
property of a servicemember or a servicemember's dependent who 
lawfully terminates a lease covered by this section, or who 
knowingly interferes with the removal of such property from 
premises covered by such lease, for the purpose of subjecting 
or attempting to subject any of such property to a claim for 
rent accruing subsequent to the date of termination of such 
lease, or attempts to do so, shall be fined as provided in 
title 18, United States Code, or imprisoned for not more than 
one year, or both.
  (i) Definitions.--
          (1) Military orders.--The term ``military orders'', 
        with respect to a servicemember, means official 
        military orders, or any notification, certification, or 
        verification from the servicemember's commanding 
        officer, with respect to the servicemember's current or 
        future military duty status.
          (2) Conus.--The term ``continental United States'' 
        means the 48 contiguous States and the District of 
        Columbia.

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