I 

109TH CONGRESS 

1ST SESSION H. R. 3472

To amend title 10, United States Code, to enhance the protection of members 

of the Armed Forces and their spouses from unscrupulous financial 

services sales practices through increased consumer education, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 27, 2005

Mr. EMANUEL (for himself, Mr. EDWARDS, Mr. RANGEL, Mr. PALLONE, Mr. 

MCGOVERN, Ms. DELAURO, Mr. DAVIS of Illinois, and Ms. WASSERMAN

SCHULTZ) introduced the following bill; which was referred to the Committee on Armed Services 

A BILL

To amend title 10, United States Code, to enhance the 

protection of members of the Armed Forces and their 

spouses from unscrupulous financial services sales practices through increased consumer education, and for 

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Personnel Fi5 nancial Services Education Act of 2005’’. 
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1 SEC. 2. CONSUMER EDUCATION FOR MEMBERS OF THE 

2 ARMED FORCES AND THEIR SPOUSES ON IN3 SURANCE AND OTHER FINANCIAL SERVICES. 

4 (a) EDUCATION AND COUNSELING REQUIRE5 MENTS.—

6 (1) IN GENERAL.—Chapter 50 of title 10, 

7 United States Code, is amended by adding at the 

8 end the following new section: 

9 ‘‘§ 992. Consumer education: financial services 

10 ‘‘(a) REQUIREMENT FOR CONSUMER EDUCATION

11 PROGRAM FOR MEMBERS.—(1) The Secretary concerned 

12 shall carry out a program to provide comprehensive edu13 cation to members of the armed forces under the jurisdic14 tion of the Secretary on—

15 ‘‘(A) financial services that are available under 

16 law to members; 

17 ‘‘(B) financial services that are routinely of18 fered by private-sector sources to members; 

19 ‘‘(C) practices relating to the marketing of pri20 vate-sector financial services to members; 

21 ‘‘(D) such other matters relating to financial 

22 services available to members, and the marketing of 

23 financial services to members, as the Secretary con24 siders appropriate; and 

25 ‘‘(E) such other financial practices as the Sec26 retary considers appropriate. 
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1 ‘‘(2) Training under this subsection shall be provided 

2 to members—

3 ‘‘(A) as a component of the members’ initial 

4 entry training; 

5 ‘‘(B) as a component of each level of the mem6 bers’ professional development training that is re7 quired for promotion; and 

8 ‘‘(C) as a component of periodically recurring 

9 required training that is provided for the members 

10 at military installations. 

11 ‘‘(3) The training provided at a military installation 

12 under paragraph (2)(C) shall include information on any 

13 financial services marketing practices that are particularly 

14 prevalent at that military installation and in the vicinity. 

15 ‘‘(b) COUNSELING FOR MEMBERS AND SPOUSES.—

16 (1) The Secretary concerned shall provide counseling on 

17 financial services to each member of the armed forces 

18 under the jurisdiction of the Secretary. 

19 ‘‘(2) The Secretary concerned shall, upon request, 

20 provide counseling on financial services to the spouse of 

21 any member of the armed forces under the jurisdiction of 

22 the Secretary. 

23 ‘‘(3) The Secretary concerned shall provide coun24 seling on financial services under this subsection as fol25 lows: 
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1 ‘‘(A) In the case of members, and the spouses 

2 of members, assigned to a military installation to 

3 which at least 750 members of the armed forces are 

4 assigned, through a full-time financial services coun5 selor at such installation. 

6 ‘‘(B) In the case of members, and the spouses 

7 of members, assigned to a military installation other 

8 than an installation described in subparagraph (A), 

9 through such mechanisms as the Secretary considers 

10 appropriate, including through the provision of coun11 seling by a member of the armed forces in pay grade 

12 E–7 or above, or a civilian, at such installation who 

13 provides such counseling as a part of the other du14 ties performed by such member or civilian, as the 

15 case may be, at such installation. 

16 ‘‘(4) Each financial services counselor under para17 graph (2)(A), and each individual providing counseling on 

18 financial services under paragraph (2)(B), shall be an in19 dividual who, by reason of education, training, or experi20 ence, is qualified to provide helpful counseling to members 

21 of the armed forces and their spouses on financial services 

22 and marketing practices described in subsection (a)(1). 

23 Such individual may be a member of the armed forces or 

24 an employee of the Federal Government. 
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1 ‘‘(5) The Secretary concerned shall take such action 

2 as is necessary to ensure that each financial services coun3 selor under paragraph (2)(A), and each individual pro4 viding counseling on financial services under paragraph 

5 (2)(B), is free from conflicts of interest relevant to the 

6 performance of duty under this section and, in the per7 formance of that duty, is dedicated to furnishing members 

8 of the armed forces and their spouses with helpful infor9 mation and counseling on financial services and related 

10 marketing practices. 

11 ‘‘(6) The Secretary concerned may authorize financial 

12 services counseling to be provided to members of a unit 

13 of the armed forces by unit personnel under the guidance 

14 and with the assistance of a financial services counselor 

15 under paragraph (2)(A) or an individual providing coun16 seling on financial services under paragraph (2)(B), as ap17 plicable. 

18 ‘‘(c) LIFE INSURANCE.—(1) In counseling a member 

19 of the armed forces, or the spouse of a member of the 

20 armed forces, under this section regarding life insurance 

21 offered by a private-sector source, a financial services 

22 counselor under subsection (b)(2)(A), or an individual pro23 viding counseling on financial services under subsection 

24 (b)(2)(B), shall furnish the member or spouse, as the case 

25 may be, with information on the availability of 
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1 Servicemembers’ Group Life Insurance under subchapter 

2 III of chapter 19 of title 38, including information on the 

3 amounts of coverage available and the procedures for 

4 electing coverage and the amount of coverage. 

5 ‘‘(2)(A) A junior enlisted member may not authorize 

6 payment to be made for private-sector life insurance by 

7 means of an allotment of pay to which the member is enti8 tled under chapter 3 of title 37 unless the authorization 

9 of allotment is accompanied by a written certification by 

10 a commander of the member, or by a financial services 

11 counselor referred to in subsection (b)(2)(A) or an indi12 vidual providing counseling on financial services under 

13 subsection (b)(2)(B), as applicable, that the member has 

14 received counseling under paragraph (1) regarding the 

15 purchase of coverage under that private-sector life insur16 ance. 

17 ‘‘(B) Subject to subparagraph (C), a written certifi18 cation described in subparagraph (A) may not be made 

19 with respect to a member’s authorization of allotment as 

20 described in subparagraph (A) until 7 days after the date 

21 of the member’s authorization of allotment in order to fa22 cilitate the provision of counseling to the member under 

23 paragraph (1). 
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1 ‘‘(C) The commander of a member may waive the ap2 plicability of subparagraph (B) to a member for good 

3 cause, including the member’s imminent change of station. 

4 ‘‘(D) In this paragraph, the term ‘junior enlisted 

5 member’ means a member of the armed forces in any of 

6 pay grades E–1 through E–4. 

7 ‘‘(d) FINANCIAL SERVICES DEFINED.—In this sec8 tion, the term ‘financial services’ includes the following: 

9 ‘‘(1) Life insurance, casualty insurance, and 

10 other insurance. 

11 ‘‘(2) Investments in securities or financial in12 struments.’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions at the beginning of such chapter is amended 

15 by adding at the end the following new item:

‘‘992. Consumer education: financial services.’’.

16 (b) CONTINUING EFFECT OF EXISTING ALLOTMENTS

17 FOR LIFE INSURANCE.—Subsection (c)(2) of section 992 

18 of title 10, United States Code (as added by subsection 

19 (a)), shall not affect any allotment of pay authorized by 

20 a member of the Armed Forces before the effective date 

21 of such section. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on the first day of the first 
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1 month that begins more than 120 days after the date of 

2 the enactment of this Act.

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