[House Report 115-866]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-866
======================================================================
TO ALLOW SERVICEMEMBERS TO TERMINATE THEIR CABLE, SATELLITE TELEVISION,
AND INTERNET ACCESS SERVICE CONTRACTS WHILE DEPLOYED
_______
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. 2409]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2409) to allow servicemembers to terminate their
cable, satellite television, and Internet access service
contracts while deployed, 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....................................... 3
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............................. 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 5
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................... 6
Changes in Existing Law Made by the Bill as Reported............. 6
Purpose and Summary
H.R. 2409 would amend the Servicemembers Civil Relief Act
(SCRA) to allow a service member to terminate a commercial
mobile, telephone exchange, internet access, or multichannel
video programming service contract at any time after the date
the service member receives military orders to relocate for at
least 90 days to a location that does not support such service
contract. Currently, such provision applies to a cellular
telephone service or telephone exchange service contract.
Representative Ryan Costello of Pennsylvania introduced H.R.
2409 on May 11, 2017.
Background and Need for Legislation
Section 2 of SCRA sets out that the purpose of SCRA is to
``(1) to provide for, strengthen, and expedite the national
defense through protection extended by this Act to
servicemembers of the United States to enable such persons to
devote their entire energy to the defense needs of the Nation;
and (2) to provide for the temporary suspension of judicial and
administrative proceedings and transactions that may adversely
affect the civil rights of servicemembers during their military
service.'' In order to meet these goals section 305A of SCRA
authorizes a servicemember to terminate their cell phone
contract at no cost to the servicemember if they receive orders
to relocate for a period longer than 90 days to an area that
doesn't support the contract. The rationale for this provision
is to allow a servicemember to devote their energy to defense
of the country and not be burdened by a cell phone contract or
the costs associated with cancelling a contract (most cellphone
companies impose a fee for early termination of a cell phone
contract). The Committee believes that the goals of this
section are laudable and necessary but that it is in need of
reform to include new technology (the companies of which also
impose termination fees for breaking a contract) under these
protections. Therefore, this bill would amend section 305A to
include protections already afforded to servicemembers for cell
phone contracts but to also include cable, satellite television
and internet access contracts. The Committee believes the
inclusion of these contracts reflect the current reality that
most servicemembers have contracts for cable or satellite
television and/or internet access and, if they should need to
terminate the contact due to an ordered relocation they should
be given the same treatment as cell phone contracts under SCRA.
Hearings
On May 23, 2018, the Subcommittee on Economic Opportunity
held a legislative hearing on several bills pending before the
Subcommittee including H.R. 2409.
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. 2409.
Committee Consideration
On July 12, 2018, the full Committee met in open markup
session, a quorum being present, and ordered H.R. 2409 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. 2409
reported to the House. A motion by Representative Tim Walz of
Minnesota to report H.R. 2409 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 extend protections for
servicemembers related to cancellation of certain contracts
under SCRA to include contracts for telephone exchange,
internet access, or multichannel video programming service.
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. 2409 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.
2409, 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. 2409 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. 2409, a bill to
allow service members to terminate their cable, satellite
television, and Internet access service contracts while
deployed.
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. 2409--A bill to allow servicemembers to terminate their cable,
satellite television, and Internet access service contracts
while deployed
Under current law, service members may terminate cellular
and landline telephone service contracts without penalty if the
service member receives orders to move to a location in which
the telephone service provider does not provide service. H.R.
2409 would add contracts for Internet and multichannel video
programming services to the list of covered service contracts.
The bill would require service members to return any provider-
owned equipment to the service provider within 10 days of the
disconnection of service. CBO estimates that H.R. 2409 would
have no effect on the federal budget.
Enacting H.R. 2409 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 2409 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
By prohibiting multichannel video programming and Internet
providers from imposing early termination or reconnection fees,
H.R. 2409 would impose an intergovernmental and private-sector
mandate as defined in the Unfunded Mandates Reform Act (UMRA).
Because some municipal governments provide Internet access, the
bill would impose an intergovernmental mandate in addition to
the private-sector mandate on private providers of those
services. CBO estimates that the costs of the mandate would not
exceed the thresholds established in UMRA for intergovernmental
or private-sector mandates ($80 million and $160 million in
2018, respectively, 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. 2409 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.
2409.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 2409 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. 2409 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. 2409 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. 2409 contains no directed
rulemaking that would require the Secretary to prescribe
regulations.
Section-by-Section Analysis of the Legislation
Section 1. Terminations of multichannel video programming and internet
access service contracts
Section 1(a) of the bill would amend section 305(A) of the
SCRA by:
(1) amending the section heading to add ``,
Multichannel Video Programming, and Internet Access''
after ``Telephone'';
(2) in subsection (b) striking ``cellular telephone
service or telephone exchange service'' and inserting
``commercial mobile service, telephone exchange
service, internet access service, or multichannel video
programming service'';
(3) in subsection (c) inserting ``for commercial
mobile service or telephone exchange service'' before
``terminated'';
(4) in subsection (d) in the matter preceding
paragraph (1), by striking ``cellular telephone
service'' and inserting ``commercial mobile service'';
(5) in subsection (e) adding a new paragraph that
would require that if a servicemember terminates a
contract under this section they must return any
provider-owned consumer premises equipment to the
service provider not later than 10 days after the date
on which the service is disconnected.
(6) amending subsection (g) to define ``commercial
mobile service'' as the meaning provided by section
322(d) of the communications Act of 1934 (47 U.S.C.
332(d)). This subsection would also define
``multichannel video programming service'' as a
subscription service offered by a multichannel video
programming distributor, as defined by section 602 of
the Communications Act of 1934 (47 U.S.C. 522), over a
system the distributor owns or controls. This
subsection would also define ``provider-owned consumer
premises equipment'' as any equipment that the provider
of internet access service or multichannel video
programming service rents or loans to a customer during
the provision of that service, including gateways,
routers, cable modems, voice-capable modems,
cableCARDs, converters, digital adapters, remote
controls, and other equipment provided.
Section 1(b) of the bill would make several clerical
amendments including:
(1) changing the title heading for title III of the
SCRA by striking ``TELEPHONE'' and inserting
``COMMUNICATIONS''
(2) amending the table of contents to reflect the
changes made by this section.
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
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Servicemembers Civil Relief Act''.
(b) Table of Contents.--The table of contents of this Act is
as follows:
* * * * * * *
[TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES, TELEPHONE SERVICE CONTRACTS
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES, COMMUNICATIONS SERVICE CONTRACTS
* * * * * * *
[Sec. 305A. Termination of telephone service contracts.]
Sec. 305A. Termination of telephone, multichannel video programming, and
Internet access service contracts.
* * * * * * *
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES, [TELEPHONE] COMMUNICATIONS SERVICE CONTRACTS
* * * * * * *
SEC. 305A. TERMINATION OF TELEPHONE, MULTICHANNEL VIDEO PROGRAMMING,
AND INTERNET ACCESS SERVICE CONTRACTS.
(a) Termination by Servicemember.--
(1) Termination.--A servicemember may terminate a
contract described in subsection (b) at any time after
the date the servicemember receives military orders to
relocate for a period of not less than 90 days to a
location that does not support the contract.
(2) Notice.--In the case that a servicemember
terminates a contract as described in paragraph (1),
the service provider under the contract shall provide
such servicemember with written or electronic notice of
the servicemember's rights under such paragraph.
(3) Manner of termination.--Termination of a contract
under paragraph (1) shall be made by delivery of a
written or electronic notice of such termination and a
copy of the servicemember's military orders to the
service provider, delivered in accordance with industry
standards for notification of terminations, together
with the date on which the service is to be terminated.
(b) Covered Contracts.--A contract described in this
subsection is a contract for [cellular telephone service or
telephone exchange service] commercial mobile service,
telephone exchange service, Internet access service, or
multichannel video programming service entered into by the
servicemember before receiving the military orders referred to
in subsection (a)(1).
(c) Retention of Telephone Number.--In the case of a contract
for commercial mobile service or telephone exchange service
terminated under subsection (a) by a servicemember whose period
of relocation is for a period of three years or less, the
service provider under the contract shall, notwithstanding any
other provision of law, allow the servicemember to keep the
telephone number the servicemember has under the contract if
the servicemember re-subscribes to the service during the 90-
day period beginning on the last day of such period of
relocation.
(d) Family Plans.--In the case of a contract for [cellular
telephone service] commercial mobile service entered into by
any individual in which a servicemember is a designated
beneficiary of the contract, the individual who entered into
the contract may terminate the contract--
(1) with respect to the servicemember if the
servicemember is eligible to terminate contracts
pursuant to subsection (a); and
(2) with respect to all of the designated
beneficiaries of such contract if all such
beneficiaries accompany the servicemember during the
servicemember's period of relocation.
(e) Other Obligations and Liabilities.--[For any]
(1) In general._For any contract terminated under
this section, the service provider under the contract
may not impose an early termination charge, but any tax
or any other obligation or liability of the
servicemember that, in accordance with the terms of the
contract, is due and unpaid or unperformed at the time
of termination of the contract shall be paid or
performed by the servicemember. [If the]
(2) Reinstatement of service._If the servicemember
re-subscribes to the service provided under a covered
contract during the 90-day period beginning on the last
day of the servicemember's period of relocation, the
service provider may not impose a charge for
reinstating service, other than the usual and customary
charges for the installation or acquisition of customer
equipment imposed on any other subscriber.
(3) Return of provider-owned equipment.--If a
servicemember terminates a contract under subsection
(a), the servicemember shall return any provider-owned
consumer premises equipment to the service provider not
later than 10 days after the date on which service is
disconnected.
(f) Return of Advance Payments.--Not later than 60 days after
the effective date of the termination of a contract under this
section, the service provider under the contract shall refund
to the servicemember any fee or other amount to the extent paid
for a period extending until after such date, except for the
remainder of the monthly or similar billing period in which the
termination occurs.
(g) Definitions.--For purposes of this section:
[(1) The term ``cellular telephone service'' means
commercial mobile service, as that term is defined in
section 332(d) of the Communications Act of 1934 (47
U.S.C. 332(d)).]
(1) The term ``commercial mobile service'' has the
meaning given that term in section 332(d) of the
Communications Act of 1934 (47 U.S.C. 332(d)).
(2) The term ``multichannel video programming
service'' means a subscription video service offered by
a multichannel video programming distributor, as that
term is defined in section 602 of the Communications
Act of 1934 (47 U.S.C. 522), over a system the
distributor owns or controls.
(3) The term ``provider-owned consumer premises
equipment'' means any equipment that a provider of
Internet access service or multichannel video
programming service rents or loans to a customer during
the provision of that service, including gateways,
routers, cable modems, voice-capable modems,
CableCARDs, converters, digital adapters, remote
controls, and any other equipment provided.
[(2)] (4) The term ``telephone exchange service'' has
the meaning given that term under section 3 of the
Communications Act of 1934 (47 U.S.C. 153).
* * * * * * *
[all]