S.Amdt. 1517

1. Adds SEC. 653. ENFORCEMENT AND LIABILITY FOR NONCOMPLIANCE WITH SERVICEMEMBERS CIVIL RELIEF ACT at the end of subtitle E of title VI

   Adds a section

   In S. 1042 · Placed on Calendar Senate

   (ii) would assist such members in establishing habits of financial responsibility during their initial enlistments in the Armed Forces.

   Inserted: SEC. 653. ENFORCEMENT AND LIABILITY FOR NONCOMPLIANCE WITH SERVICEMEMBERS CIVIL RELIEF ACT.

   Inserted: (a) Enforcement.--

   Inserted: (1) In general.--The Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) is amended by adding at the end the following new title:

   Inserted: "TITLE VIII--ENFORCEMENT

   Inserted: "SEC. 801. ADMINISTRATIVE ENFORCEMENT.

   Inserted: "(a) Enforcement by Federal Trade Commission.--(1) Except as provided in subsection (b), compliance with the requirements imposed by this Act shall be enforced by the Federal Trade Commission in accordance with the Federal Trade Commission Act with respect to entities and persons subject to the Federal Trade Commission Act.

   Inserted: "(2) For the purpose of the exercise by the Commission under this subsection of its functions and powers under the Federal Trade Commission Act, a violation of any requirement or prohibition imposed by this Act shall constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the Federal Trade Commission Act, and shall be subject to enforcement by the Commission with respect to any entity or person subject to enforcement by the Commission pursuant to this subsection, irrespective of whether such person or entity is engaged in commerce or meets any other jurisdictional tests under the Federal Trade Commission Act.

   Inserted: "(3) The Commission shall have such procedural, investigative, and enforcement powers, including the power to issue procedural rules in enforcing compliance with the requirements imposed by this Act and to require the filing of reports, the production of documents, and the appearance of witnesses, as though the applicable terms and conditions of the Federal Trade Commission Act were part of this Act.

   Inserted: "(4) Any person or entity violating any provision of this Act shall be subject to the penalties, and entitled to the privileges and immunities, provided in the Federal Trade Commission Act as though the applicable terms and provisions of the Federal Trade Commission Act were part of this Act.

   Inserted: "(5)(A) The Commission may commence a civil action to recover a civil penalty in a district court of the United States against any person or entity that has engaged in such violation. In such action, such person or entity shall be liable, in addition to any amounts otherwise recoverable, for a civil penalty in the amount of $5,000 to $50,000, as determined appropriate by the court for each violation.

   Inserted: "(B) In determining the amount of a civil penalty under subparagraph (A), the court shall take into account the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require.

   Inserted: "(b) Enforcement by Other Regulatory Agencies.--Compliance with the requirements imposed by this Act with respect to financial institutions shall be enforced under--

   Show 60 more inserted paragraphsShow less

   Inserted: "(1) section 8 of the Federal Deposit Insurance Act, in the case of--

   Inserted: "(A) national banks, and Federal branches and Federal agencies of foreign banks, and any subsidiaries of such (except brokers, dealers, persons providing insurance, investment companies, and investment advisers) by the Office of the Comptroller of the Currency;

   Inserted: "(B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organization operating under section 25 or 25A of the Federal Reserve Act, and bank holding companies and their nonbank subsidiaries or affiliates (except brokers, dealers, persons providing insurance, investment companies, and investment advisers) by the Board of Governors of the Federal Reserve System; and

   Inserted: "(C) banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System) and insured State branches of foreign banks, and any subsidiaries of such entities (except brokers, dealers, persons providing insurance, investment companies, and investment advisers) by the Board of Directors of the Federal Deposit Insurance Corporation;

   Inserted: "(2) section 8 of the Federal Deposit Insurance Act, by the Director of the Office of Thrift Supervision, in the case of a savings association the deposits of which are insured by the Federal Deposit Insurance Corporation and any subsidiaries of such saving associations (except brokers, dealers, persons providing insurance, investment companies, and investment advisers);

   Inserted: "(3) the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any federally insured credit union, and any subsidiaries of such an entity;

   Inserted: "(4) State insurance law, by the applicable State insurance authority of the State in which a person is domiciled, in the case of a person providing insurance; and

   Inserted: "(5) the Federal Trade Commission Act, by the Federal Trade Commission for any other financial institution or other person that is not subject to the jurisdiction of any agency or authority under paragraphs (1) through (4).".

   Inserted: (2) Clerical amendment.--The table of contents in the first section of that Act is amended by adding at the end the following new items:

   Inserted: "TITLE VIII--ENFORCEMENT

   Inserted: "Sec. 801. Administrative enforcement.".

   Inserted: (b) Liability for Noncompliance.--

   Inserted: (1) Section 301(c) of the Servicemembers Civil Relief Act (50 U.S.C. App. 531(c)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Civil liability for noncompliance.--Any person or entity (other than a servicemember or dependent) who fails to comply with any requirement imposed by this section with respect to a servicemember or dependent is liable to such servicemember or dependent in an amount equal to the sum of--

   Inserted: "(A) any actual damages sustained by such servicemember or dependent as a result of the failure;

   Inserted: "(B) such amount of punitive damages as the court may allow;

   Inserted: "(C) such amount of consequential damages as the court may allow;

   Inserted: "(D) such additional damages as the court may allow, in an amount not less than $100 or more than $5,000 (as determined appropriate by the court), for each violation; and

   Inserted: "(E) in the case of any successful action to enforce liability under this section, the cost of the action together with reasonable attorneys fees as determined by the court.

   Inserted: "(3) Attorney fees.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for the purposes of harassment, the court shall award to the prevailing party attorney fees in amount that is reasonable in relation to the work expended in responding to such pleading, motion, or other paper.".

   Inserted: (2) Section 302(b) of that Act (50 U.S.C. App. 532(b)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Civil liability for noncompliance.--Any person or entity (other than a servicemember or dependent) who fails to comply with any requirement imposed by this section with respect to a servicemember or dependent is liable to such servicemember or dependent in an amount equal to the sum of--

   Inserted: "(A) any actual damages sustained by such servicemember or dependent as a result of the failure;

   Inserted: "(B) such amount of punitive damages as the court may allow;

   Inserted: "(C) such amount of consequential damages as the court may allow;

   Inserted: "(D) such additional damages as the court may allow, in an amount not less than $100 or more than $5,000 (as determined appropriate by the court), for each violation; and

   Inserted: "(E) in the case of any successful action to enforce liability under this section, the cost of the action together with reasonable attorneys fees as determined by the court.

   Inserted: "(3) Attorney fees.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for the purposes of harassment, the court shall award to the prevailing party attorney fees in amount that is reasonable in relation to the work expended in responding to such pleading, motion, or other paper.".

   Inserted: (3) Section 303(d) of that Act (50 U.S.C. App. 533(d)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Civil liability for noncompliance.--Any person or entity (other than a servicemember or dependent) who fails to comply with any requirement imposed by this section with respect to a servicemember or dependent is liable to such servicemember or dependent in an amount equal to the sum of--

   Inserted: "(A) any actual damages sustained by such servicemember or dependent as a result of the failure;

   Inserted: "(B) such amount of punitive damages as the court may allow;

   Inserted: "(C) such amount of consequential damages as the court may allow;

   Inserted: "(D) such additional damages as the court may allow, in an amount not less than $100 or more than $5,000 (as determined appropriate by the court), for each violation; and

   Inserted: "(E) in the case of any successful action to enforce liability under this section, the cost of the action together with reasonable attorneys fees as determined by the court.

   Inserted: "(3) Attorney fees.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for the purposes of harassment, the court shall award to the prevailing party attorney fees in amount that is reasonable in relation to the work expended in responding to such pleading, motion, or other paper.".

   Inserted: (4) Section 305(h) of that Act (50 U.S.C. App. 535(h)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Civil liability for noncompliance.--Any person or entity (other than a servicemember or dependent) who fails to comply with any requirement imposed by this section with respect to a servicemember or dependent is liable to such servicemember or dependent in an amount equal to the sum of--

   Inserted: "(A) any actual damages sustained by such servicemember or dependent as a result of the failure;

   Inserted: "(B) such amount of punitive damages as the court may allow;

   Inserted: "(C) such amount of consequential damages as the court may allow;

   Inserted: "(D) such additional damages as the court may allow, in an amount not less than $100 or more than $5,000 (as determined appropriate by the court), for each violation; and

   Inserted: "(E) in the case of any successful action to enforce liability under this section, the cost of the action together with reasonable attorneys fees as determined by the court.

   Inserted: "(3) Attorney fees.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for the purposes of harassment, the court shall award to the prevailing party attorney fees in amount that is reasonable in relation to the work expended in responding to such pleading, motion, or other paper.".

   Inserted: (5) Section 306(e) of that Act (50 U.S.C. App. 536(e)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Civil liability for noncompliance.--Any person or entity (other than a servicemember or dependent) who fails to comply with any requirement imposed by this section with respect to a servicemember or dependent is liable to such servicemember or dependent in an amount equal to the sum of--

   Inserted: "(A) any actual damages sustained by such servicemember or dependent as a result of the failure;

   Inserted: "(B) such amount of punitive damages as the court may allow;

   Inserted: "(C) such amount of consequential damages as the court may allow;

   Inserted: "(D) such additional damages as the court may allow, in an amount not less than $100 or more than $5,000 (as determined appropriate by the court), for each violation; and

   Inserted: "(E) in the case of any successful action to enforce liability under this section, the cost of the action together with reasonable attorneys fees as determined by the court.

   Inserted: "(3) Attorney fees.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for the purposes of harassment, the court shall award to the prevailing party attorney fees in amount that is reasonable in relation to the work expended in responding to such pleading, motion, or other paper.".

   Inserted: (6) Section 307(c) of that Act (50 U.S.C. App. 537(c)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Civil liability for noncompliance.--Any person or entity (other than a servicemember or dependent) who fails to comply with any requirement imposed by this section with respect to a servicemember or dependent is liable to such servicemember or dependent in an amount equal to the sum of--

   Inserted: "(A) any actual damages sustained by such servicemember or dependent as a result of the failure;

   Inserted: "(B) such amount of punitive damages as the court may allow;

   Inserted: "(C) such amount of consequential damages as the court may allow;

   Inserted: "(D) such additional damages as the court may allow, in an amount not less than $100 or more than $5,000 (as determined appropriate by the court), for each violation; and

   Inserted: "(E) in the case of any successful action to enforce liability under this section, the cost of the action together with reasonable attorneys fees as determined by the court.

   Inserted: "(3) Attorney fees.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for the purposes of harassment, the court shall award to the prevailing party attorney fees in amount that is reasonable in relation to the work expended in responding to such pleading, motion, or other paper.".

   Original wording

   At the end of subtitle E of title VI, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed