II 

109TH CONGRESS 

2D SESSION S. 3998 

To amend the Servicemembers Civil Relief Act to provide relief for 

servicemembers with respect to contracts for cellular phone service, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2006 

Mr. FEINGOLD introduced the following bill; which was read twice and 

referred to the Committee on Veterans’ Affairs 

A BILL 

To amend the Servicemembers Civil Relief Act to provide 

relief for servicemembers with respect to contracts for 

cellular phone service, 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 ‘‘Servicemembers’ Cel5 lular Phone Contract Fairness Act of 2006’’. 


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1 SEC. 2. TERMINATION UNDER SERVICEMEMBERS CIVIL RE2 LIEF ACT OF CONTRACTS FOR CELLULAR 

3 PHONE SERVICES. 

4 (a) TERMINATION OF CONTRACTS FOR CELLULAR

5 PHONE SERVICES.— 

6 (1) INCLUSION OF CONTRACTS UNDER TERMI7 NATION AUTHORITY.—Subsection (b) of section 305 

8 of the Servicemembers Civil Relief Act (50 U.S.C. 

9 App. 535) is amended by adding at the end the fol10 lowing new paragraph: 

11 ‘‘(3) CONTRACTS FOR CELLULAR PHONE SERV12 ICE.— 

13 ‘‘(A) IN GENERAL.—Subject to subpara14 graphs (B) and (C), a contract for a cellular 

15 phone used, or intended to be used, by a 

16 servicemember or a servicemember’s dependent 

17 for a personal or business purpose if— 

18 ‘‘(i) the contract is executed by or on 

19 behalf of a person who thereafter and dur20 ing the term of the contract enters into 

21 military service under call or order speci22 fying a period of not less than 90 days (or 

23 who enters military service under a call or 

24 order specifying a period of 90 days or less 

25 and who, without a break in service, re26 ceives orders extending the period of miliVerDate Aug 31 2005 02:55 Oct 04, 2006 Jkt 049196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3998.IS S3998

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1 tary service to a period not less than 90 

2 days); 

3 ‘‘(ii) the servicemember, while in mili4 tary service, executes the contract and 

5 thereafter receives military orders for a 

6 permanent change of station outside of the 

7 continental United States or to deploy with 

8 a military unit for a period of not less than 

9 90 days; or 

10 ‘‘(iii) the servicemember, while in mili11 tary service, executes the contract and 

12 thereafter receives military orders for a 

13 permanent change of station to a location 

14 within the continental United States where 

15 the contract cannot be transferred at the 

16 same rate, terms, and quality of service. 

17 ‘‘(B) APPLICABILITY TO DEPENDENTS.— 

18 Subparagraph (A) shall apply with respect to a 

19 contract, or portion of a contract, for a cellular 

20 phone used, or intended to be used, by a 

21 servicemember’s dependent only if the depend22 ent— 

23 ‘‘(i) relocates in accompanying the 

24 servicemember in the performance of the 

25 military service, or in a permanent change 


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1 of station or deployment, described in that 

2 subparagraph; or 

3 ‘‘(ii) otherwise relocates as a con4 sequence of such military service or change 

5 of station or deployment. 

6 ‘‘(C) APPLICABILITY TO GROUP PLANS.—If 

7 a servicemember or a dependent to whom this 

8 paragraph applies is not the primary account 

9 holder under a contract described in subpara10 graph (A), that subparagraph shall apply only 

11 to the extent of the obligations of the 

12 servicemember or dependent, as the case may 

13 be, in the contract.’’. 

14 (2) MANNER OF TERMINATION.—Subsection 

15 (c)(1) of such section is amended— 

16 (A) in subparagraph (A), by striking 

17 ‘‘and’’ at the end; 

18 (B) in subparagraph (B), by striking the 

19 period at the end and inserting ‘‘; and’’; and 

20 (C) by adding at the end the following new 

21 subparagraph: 

22 ‘‘(C) in the case of a contract for a cellular 

23 phone, by delivery by the contractee of written 

24 notice of such termination, and a copy of the 


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1 servicemember’s military orders, to the con2 tractor or to the contractor’s agent.’’. 

3 (3) EFFECTIVE DATE OF TERMINATION.—Sub4 section (d) of such section is amended by adding at 

5 the end the following new paragraph: 

6 ‘‘(3) CONTRACT FOR CELLULAR PHONE SERV7 ICE.—In the case of a contract for a cellular phone 

8 described in subsection (b)(3), termination of the 

9 contract under subsection (a) is effective on the day 

10 on which the requirements of subsection (c) are met 

11 for such termination.’’. 

12 (4) ARREARAGES.—Subsection (e) of such sec13 tion is amended— 

14 (A) by striking ‘‘(e) ARREARAGES AND

15 OTHER OBLIGATIONS AND LIABILITIES.—Rents 

16 or lease amounts’’ and inserting the following: 

17 ‘‘(e) ARREARAGES AND OTHER OBLIGATIONS AND

18 LIABILITIES.— 

19 ‘‘(1) IN GENERAL.—Rents or lease amounts’’; 

20 (B) by designating the second sentence as 

21 paragraph (2), indenting such paragraph 4 ems 

22 from the left margin, and inserting before ‘‘In 

23 the case of the lease’’ the following: 

24 ‘‘(2) LEASE CHARGES FOR MOTOR

25 VEHICLES.—’’; and 


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1 (C) by adding at the end the following new 

2 paragraphs: 

3 ‘‘(3) TERMINATION CHARGES FOR CELLULAR

4 PHONE CONTRACTS.—In the case of a contract for 

5 a cellular phone, the contractor may not impose an 

6 early termination charge, but may request the return 

7 of equipment provided to the contractee as part of 

8 the contract which would normally remain the prop9 erty of the contractee at the end of the contract 

10 term if the contractee is given the option of paying 

11 a pro-rated amount to retain such equipment based 

12 on the original retail price of such equipment, the 

13 amount previously paid for such equipment by the 

14 contractee, and the time remaining on the contract. 

15 ‘‘(4) REACTIVATION FEES.—In the event a con16 tractor and contractee jointly agree to treat the ter17 mination of a contract for a cellular phone under 

18 this section as a suspension of such contract, the 

19 contractor may not impose any fee for reactivation 

20 of service under such contract at the completion of 

21 suspension of such contract.’’. 

22 (b) CONFORMING AMENDMENT.—Subsection 

23 (a)(1)(B) of such section is amended by striking ‘‘or 

24 (2)(B)’’ and inserting ‘‘, (2)(B), (3)(A)(ii), or (3)(A)(iii)’’. 

25 (c) CLERICAL AMENDMENTS.— 


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1 (1) HEADING AMENDMENT.—The heading of 

2 such section is amended to read as follows: 

3 ‘‘SEC. 305. TERMINATION OF RESIDENTIAL OR MOTOR VE4 HICLE LEASES OR CONTRACTS FOR CEL5 LULAR PHONE SERVICE.’’. 

6 (2) TABLE OF CONTENTS AMENDMENT.—The 

7 table of contents for such Act is amended by strik8 ing the item relating to section 305 and inserting 

9 the following new item: 

‘‘Sec. 305. Termination of residential or motor vehicle leases or contracts for 

cellular phone service.’’. 

Æ 


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