Federal Employees Civil Relief Act

Subjects: Government Operations and Politics


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 640 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 640

  To suspend the enforcement of certain civil liabilities of Federal 
employees and contractors during a lapse in appropriations, or during a 
      breach of the statutory debt limit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 2, 2023

  Mr. Schatz (for himself, Mr. Blumenthal, Mr. Brown, Mr. Cardin, Ms. 
Cortez Masto, Ms. Duckworth, Mrs. Feinstein, Ms. Hirono, Mr. Kaine, Ms. 
Klobuchar, Mr. Menendez, Mr. Merkley, Mr. Padilla, Mr. Sanders, Mr. Van 
  Hollen, Mr. Warner, and Ms. Warren) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To suspend the enforcement of certain civil liabilities of Federal 
employees and contractors during a lapse in appropriations, or during a 
      breach of the statutory debt limit, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Employees Civil Relief 
Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide for the temporary suspension 
of judicial and administrative proceedings and transactions that may 
adversely affect the civil rights of Federal workers during a shutdown.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Consumer reporting agency.--The term ``consumer 
        reporting agency'' has the meaning given the term in section 
        603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)).
            (2) Contractor.--The term ``contractor'' has the meaning 
        given the term in section 7101 of title 41, United States Code.
            (3) Court; judgment; state.--The terms ``court'', 
        ``judgment'', and ``State'' have the meanings given those terms 
        in section 101 of the Servicemembers Civil Relief Act (50 
        U.S.C. 3911).
            (4) Covered period.--The term ``covered period'' means the 
        period beginning on the date on which a shutdown begins and 
        ending on the date that is 30 days after the date on which that 
        shutdown ends.
            (5) Federal worker.--The term ``Federal worker''--
                    (A) means an employee of a Government agency; and
                    (B) includes an employee of a contractor.
            (6) Government agency.--The term ``Government agency'' 
        means each authority of the executive, legislative, or judicial 
        branch of the Government of the United States.
            (7) Shutdown.--The term ``shutdown'' means any period in 
        which--
                    (A) there is more than a 24-hour lapse in 
                appropriations for any Government agency or Federal 
                department as a result of a failure to enact a regular 
                appropriations bill or continuing resolution; or
                    (B) the debt of the United States Government is 
                greater than the statutory limit under section 3101 of 
                title 31, United States Code.

SEC. 4. JURISDICTION.

    (a) Jurisdiction.--This Act shall apply to--
            (1) the United States;
            (2) each of the States, including each political 
        subdivision of a State; and
            (3) all territory that is subject to the jurisdiction of 
        the United States.
    (b) Applicability to Proceedings.--This Act--
            (1) shall apply to any judicial or administrative 
        proceeding that is commenced in any court or agency in any 
        jurisdiction that is subject to this Act; and
            (2) shall not apply to criminal proceedings or with respect 
        to child support payments.
    (c) Court in Which Application May Be Made.--When, under this Act, 
any application is required to be made to a court in which no 
proceeding has already been commenced with respect to a matter, that 
application may be made to any court that would otherwise have 
jurisdiction over the matter.
    (d) Notification.--
            (1) In general.--The head of the Government agency that 
        employs a Federal worker, or at which a Federal worker performs 
        services, as applicable, shall provide the Federal worker with 
        written notice regarding the benefits provided under this Act--
                    (A) on the date on which the individual becomes a 
                Federal worker; and
                    (B) periodically after the date described in 
                subparagraph (A), including on the date on which any 
                shutdown begins.
            (2) Legislative and judicial branch.--With respect to a 
        Federal worker in a Government agency in the legislative branch 
        or judicial branch, (or, in the case of a Federal worker who is 
        an employee of a contractor, who provides services at a 
        Government agency in the legislative branch or judicial 
        branch), the officer or employee at the Government agency who 
        has the final authority to appoint, hire, discharge, and set 
        the terms, conditions, or privileges of the employment of the 
        Federal worker shall provide the notice required under 
        paragraph (1).

SEC. 5. ANTICIPATORY RELIEF.

    A Federal worker who is furloughed or required to work without pay 
during a shutdown may apply to a court for a temporary stay, 
postponement, or suspension with respect to any payment of rent, 
mortgage, tax, fine, penalty, insurance premium, student loan 
repayment, or other civil obligation or liability that the Federal 
worker or individual, as applicable, owes or would owe during the 
duration of the shutdown.

SEC. 6. EVICTIONS.

    (a) Court-Ordered Eviction.--Except by the order of a court, a 
landlord may not, during a shutdown--
            (1) evict a Federal worker from premises that are occupied 
        or intended to be occupied primarily as a residence; or
            (2) subject premises described in paragraph (1) to a 
        distress.
    (b) Stay of Execution.--
            (1) Court authority.--Upon an application for eviction or 
        distress with respect to premises described in subsection 
        (a)(1), a court may, upon motion of the court, and shall, if a 
        request is made by or on behalf of a Federal worker, the 
        ability of whom to pay the rent that is the subject of the 
        action is materially affected by a shutdown--
                    (A) stay the proceedings for a period of 30 days, 
                unless, in the opinion of the court, justice and equity 
                require a longer or shorter period of time; or
                    (B) adjust the obligation under the lease to 
                preserve the interests of all parties.
            (2) Relief to landlord.--If a court grants a stay under 
        paragraph (1), the court may grant to the landlord (or other 
        person with paramount title) such relief as equity may require.
    (c) Misdemeanor.--Except as provided in subsection (a), a person 
that knowingly takes part in an eviction or distress described in that 
subsection, or that knowingly attempts to take part in an eviction or 
distress described in that subsection, shall be fined as provided in 
title 18, United States Code, or imprisoned for not more than 1 year, 
or both.

SEC. 7. MORTGAGE PROTECTION AND FORECLOSURES.

    (a) Definition.--In this section, the term ``covered action'' means 
an action relating to an obligation--
            (1) with respect to real or personal property owned by a 
        Federal worker; and
            (2) that--
                    (A) originated before the date on which a shutdown 
                begins;
                    (B) is in effect on the date on which a shutdown 
                begins; and
                    (C) is secured by a mortgage, trust deed, or other 
                security in the nature of a mortgage.
    (b) Stay of Proceedings and Adjustment of Obligation.--If a covered 
action is filed in a court during a covered period, the court may, 
after a hearing and upon the motion of the court, and shall, upon 
application by the Federal worker if the ability of the Federal worker 
to comply with the covered obligation is materially affected by the 
shutdown--
            (1) stay the proceedings for a period of time as justice 
        and equity require; or
            (2) adjust the obligation to preserve the interests of all 
        parties.
    (c) Sale or Foreclosure.--A sale, foreclosure, or seizure of 
property for a breach of an obligation described in subsection (a) by a 
Federal worker shall not be valid if made during a covered period 
except upon the order of a court that is granted before that sale, 
foreclosure, or seizure, as applicable, with a return made and approved 
by the court.
    (d) Misdemeanor.--A person that knowingly makes or causes to be 
made a sale, foreclosure, or seizure of property that is prohibited 
under subsection (c), or that knowingly attempts to make or cause to be 
made a sale, foreclosure, or seizure of property that is prohibited 
under that subsection, shall be fined as provided in title 18, United 
States Code, or imprisoned for not more than 1 year, or both.

SEC. 8. LIENS.

    (a) Liens.--
            (1) Definition.--In this subsection, the term ``lien'' 
        includes--
                    (A) a lien--
                            (i) for storage, repair, or cleaning of the 
                        property or effects of a Federal worker; and
                            (ii) on the property or effects described 
                        in clause (i) for any reason other than a 
                        reason described in that clause; and
                    (B) a loan that a Federal worker has obtained with 
                respect to a motor vehicle.
            (2) Limitation on foreclosure or enforcement.--A person 
        holding a lien on the property or effects of a Federal worker 
        may not, during a covered period, foreclose on or enforce that 
        lien without the order of a court that was issued before the 
        date on which that foreclosure or enforcement occurs.
    (b) Stay of Proceedings.--In a proceeding to foreclose on or 
enforce a lien that is subject to this section, a court may, upon the 
motion of the court, and shall, if requested by a Federal worker, the 
ability of whom to comply with the obligation resulting in the 
proceeding is materially affected by a shutdown--
            (1) stay the proceeding for a period of time as justice and 
        equity require; or
            (2) adjust the obligation to preserve the interests of all 
        parties.
    (c) Misdemeanor.--A person that knowingly takes an action that 
violates this section, or attempts to take an action that violates this 
section, shall be fined as provided in title 18, United States Code, or 
imprisoned for not more than 1 year, or both.

SEC. 9. STUDENT LOANS.

    (a) Definition of Student Loan.--In this section, the term 
``student loan'' means the following:
            (1) A loan made, insured, or guaranteed under title IV of 
        the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 
        including any Federal Direct Stafford Loan, Federal Direct 
        Unsubsidized Stafford Loan, Federal Direct PLUS Loan, or 
        Federal Direct Consolidation Loan.
            (2) A private education loan, as such term is defined in 
        section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
    (b) Application to Student Loans.--This section shall apply to any 
situation in which--
            (1) the student loan payment of a Federal worker falls due 
        or remains unpaid during a shutdown; and
            (2) during the shutdown described in paragraph (1), the 
        Federal worker described in that paragraph has been furloughed 
        or required to work without pay.
    (c) Deferment Eligibility.--During a covered period, a Federal 
worker shall be eligible for deferment, during which, with respect to a 
student loan, periodic installments of principal need not be paid and 
interest shall not accrue.
    (d) Limitation on Defaults.--If the student loan payment of a 
Federal worker falls due and remains unpaid during a shutdown, the 
lender with respect to the student loan may not place the loan in 
default without the order of a court.
    (e) Limitation on Collections.--If the student loan of a Federal 
worker has been placed in default before the date on which a shutdown 
begins, the lender with respect to the student loan may not, without 
the order of a court, perform any of the following activities during 
the covered period with respect to the shutdown:
            (1) Send the student loan to collection.
            (2) Report adverse information with respect to the Federal 
        worker to a consumer reporting agency.
            (3) Garnish wages, tax refunds, or government benefits.
    (f) Court Stay.--In a proceeding to collect a student loan payment 
that is subject to this section, a court may, upon the motion of the 
court, and shall, if requested by a Federal worker whose ability to 
comply with the obligation resulting in the proceeding is materially 
affected by a shutdown--
            (1) stay the proceeding for a period of time as justice and 
        equity require; or
            (2) adjust the obligation to preserve the interests of all 
        parties.
    (g) Misdemeanor.--A person that knowingly violates this section, or 
attempts to violate this section, shall be fined as provided in title 
18, United States Code, or imprisoned for not more than 1 year, or 
both.

SEC. 10. INCOME TAXES.

    (a) Deferral of Tax.--Upon notice to the Internal Revenue Service, 
the collection of Federal income tax on the income of a Federal worker 
falling due during a shutdown shall be deferred for a period of not 
more than 90 days after the date on which the shutdown ends if the 
ability of the Federal worker to pay the income tax is materially 
affected by the shutdown.
    (b) Accrual of Interest or Penalty.--No interest or penalty shall 
accrue during the period of deferment under subsection (a) by reason of 
nonpayment on any amount of tax deferred under this section.
    (c) Statute of Limitations.--The running of a statute of 
limitations against the collection of tax deferred under this section, 
by seizure or otherwise, shall be suspended for the covered period with 
respect to the shutdown to which the collection applies.
    (d) Application Limitation.--This section shall not apply to the 
tax imposed on employees under section 3101 of the Internal Revenue 
Code of 1986.

SEC. 11. INSURANCE PROTECTION.

    (a) Definition.--In this section, the term ``covered insurance 
policy'' means a policy--
            (1) for--
                    (A) health insurance;
                    (B) life insurance;
                    (C) disability insurance; or
                    (D) motor vehicle insurance; and
            (2) that--
                    (A) a Federal worker enters into before the date on 
                which a shutdown begins; and
                    (B) is in effect during a shutdown.
    (b) Insurance Protection.--Without the order of a court, a covered 
insurance policy shall not lapse or otherwise terminate or be forfeited 
because a Federal worker does not pay a premium, or interest or 
indebtedness on a premium, under the policy that is due during a 
covered period with respect to a shutdown.

SEC. 12. PROTECTION OF RIGHTS.

    (a) Exercise of Rights Under Chapter Not To Affect Certain Future 
Financial Transactions.--An application by a Federal worker for, or the 
receipt by a Federal worker of, a stay, postponement, or suspension 
under this Act with respect to the payment of a fine, penalty, 
insurance premium, or other civil obligation or liability of that 
Federal worker shall not itself (without regard to other 
considerations) provide the basis for any of the following:
            (1) A determination by a lender or other person that the 
        Federal worker is unable to pay the civil obligation or 
        liability, as applicable, in accordance with the terms of the 
        obligation or liability.
            (2) With respect to a credit transaction between a creditor 
        and the Federal worker--
                    (A) a denial or revocation of credit by the 
                creditor;
                    (B) a change by the creditor in the terms of an 
                existing credit arrangement; or
                    (C) a refusal by the creditor to grant credit to 
                the Federal worker in substantially the amount or on 
                substantially the terms requested.
            (3) An adverse report relating to the creditworthiness of 
        the Federal worker by or to a person engaged in the practice of 
        assembling or evaluating consumer credit information.
            (4) A refusal by an insurer to insure the Federal worker.
            (5) A change in the terms offered or conditions required 
        for the issuance of insurance.
    (b) Reduction or Waiver of Fines or Penalties.--If a Federal worker 
fails to perform an obligation arising under a contract and a penalty 
is incurred arising from that nonperformance, a court may reduce or 
waive the fine or penalty if--
            (1) the Federal worker was furloughed or required to work 
        without pay during a shutdown on the date on which the fine or 
        penalty was incurred; and
            (2) the ability of the Federal worker to perform the 
        obligation was materially affected by the shutdown described in 
        paragraph (1).
    (c) Court Action Upon Material Affect Determination.--If a court 
determines that a Federal worker is materially affected by a shutdown 
in complying with a judgment or an order of a court, the court may, 
upon the motion of the court, and shall, on application by the Federal 
worker--
            (1) stay the execution of any judgment or order entered 
        against the Federal worker; and
            (2) vacate or stay an attachment or garnishment of 
        property, money, or debts in the possession of the Federal 
        worker or a third party, whether before or after the entry of a 
        judgment.
    (d) Dependents.--Upon application to a court, a dependent of a 
Federal worker is entitled to the protections under this Act if the 
ability of the dependent to comply with a lease, contract, bailment, or 
other obligation is materially affected by reason of the impact of a 
shutdown on the Federal worker.

SEC. 13. ENFORCEMENT.

    (a) Civil Action.--The Attorney General may commence a civil action 
in any appropriate district court of the United States against any 
person that engages in--
            (1) a pattern or practice of violating this Act; or
            (2) a violation of this Act that raises an issue of 
        significant public importance.
    (b) Relief.--In a civil action commenced under subsection (a), a 
court may--
            (1) grant any appropriate equitable or declaratory relief 
        with respect to the violation of this Act;
            (2) award all other appropriate relief, including monetary 
        damages, to any person aggrieved by the violation described in 
        paragraph (1); and
            (3) to vindicate the public interest, assess a civil 
        penalty--
                    (A) in an amount that is not more than $55,000 for 
                a first violation; and
                    (B) in an amount that is not more than $110,000 for 
                any subsequent violation.
    (c) Intervention.--Upon timely application, a person that is 
aggrieved by a violation of this Act with respect to which a civil 
action is commenced under subsection (a) may--
            (1) intervene in the action; and
            (2) obtain such appropriate relief as the person could 
        obtain in a civil action under subsection (d) with respect to 
        that violation, along with costs and a reasonable attorney fee.
    (d) Private Right of Action.--Any person that, after the date of 
enactment of this Act, is aggrieved by a violation of this Act may, in 
a civil action--
            (1) obtain any appropriate equitable or declaratory relief 
        with respect to the violation; and
            (2) recover all other appropriate relief, including 
        monetary damages.
    (e) Costs and Attorney Fees.--A court may award to a person 
aggrieved by a violation of this Act that prevails in an action brought 
under subsection (d) the costs of the action, including a reasonable 
attorney fee.
    (f) No Preemption.--Nothing in this section may be construed to 
preclude or limit any remedy otherwise available under other law, 
including consequential and punitive damages.
                                 &lt;all&gt;
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