I 
112TH CONGRESS 
2D SESSION 
H. R. 5946 
To direct the Undersecretary of Defense (Comptroller) to carry out a pilot 
program to develop innovative consumer financial products that encour-
age savings and wealth-creation among active-duty servicemembers. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2012 
Mr. MARKEY (for himself, Ms. TSONGAS, and Mr. ANDREWS) introduced the 
following bill; which was referred to the Committee on Armed Services 
A BILL 
To direct the Undersecretary of Defense (Comptroller) to 
carry out a pilot program to develop innovative consumer 
financial products that encourage savings and wealth- 
creation among active-duty servicemembers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Military Savings Act 
of 2012’’. 
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SEC. 2. CONSUMER FINANCIAL PRODUCTS PILOT PRO-
GRAM. 
(a) IN GENERAL.—The Undersecretary of Defense 
(Comptroller) shall carry out a 5-year pilot program to 
develop innovative consumer financial products that en-
courage savings and wealth-creation among active-duty 
servicemembers. 
(b) OBJECTIVES.—Financial products developed 
under this section may seek to— 
(1) increase the rate of savings among active- 
duty servicemembers by providing automatic deposit 
into a savings account of special pay and allowances 
received by a servicemember, including special pay 
and allowances received on account of the service-
member’s deployment; 
(2) reduce the need for high-cost short-term 
lending services by providing alternatives to service-
members, such as financial institutions providing an 
option for servicemembers to receive advances on 
their salary payments, such that servicemembers re-
ceive pay in more frequent installments, and where 
any interest or fees on such advances shall not ex-
ceed the rate described in section 987(b) of title 10, 
United States Code and shall adhere to the Afford-
able Small Dollar Lending Guidelines of the Federal 
Deposit Insurance Corporation; 
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(3) address obstacles to traditional consumer 
banking and lending for servicemembers with limited 
credit history; and 
(4) otherwise encourage savings and wealth-cre-
ation among active-duty servicemembers. 
(c) NO EXACERBATION
OF CREDIT OVEREXTEN-
SION.—The pilot program carried out under this section 
shall be carried out in such a way that it does not exacer-
bate the incidence of credit overextension among 
servicemembers. 
(d) IMPLEMENTATION.— 
(1) 
SELECTION
OF
MILITARY
INSTALLA-
TIONS.—The Undersecretary shall choose at least 10 
military installations on which to implement the 
pilot program. 
(2) INCORPORATION INTO OPERATING AGREE-
MENTS.—With respect to a military installation cho-
sen by the Undersecretary under paragraph (1), a fi-
nancial institution seeking to begin operating on 
such installation, or seeking to renew an agreement 
to operate on such installation, shall— 
(A) agree to offer the consumer financial 
products developed under this section; and 
(B) notify servicemembers that are cus-
tomers of the institution about the availability 
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of the consumer financial products developed 
under this section. 
(e) CONSULTATION.—In developing consumer finan-
cial products under this section, the Undersecretary shall 
consult with Federal banking regulators with expertise in 
depository institutions, Federal agencies with experience 
regulating financial products, and consumer and military 
service organizations with relevant financial expertise. 
(f) INDEPENDENT EVALUATION.— 
(1) IN GENERAL.—Not later than the end of 
the 2-year period beginning on the date of the enact-
ment of this Act, and annually thereafter until the 
end of the pilot program, the Undersecretary shall 
contract for an independent evaluation of the pilot 
program carried out under this section. Such evalua-
tion— 
(A) shall include the degree to which the 
pilot program succeeded in the goals of increas-
ing usage of savings products, programs, and 
tools; and 
(B) shall be conducted by a contractor 
with knowledge of consumer financial products 
and experience in the evaluation of such prod-
ucts. 
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(2) REPORT.—After each evaluation carried out 
pursuant to paragraph (1), the Undersecretary shall 
issue a report to the Committees on Armed Services 
and Financial Services of the House of Representa-
tives and the Committees on Armed Services and 
Banking, Housing, and Urban Affairs of the Senate 
containing all findings and conclusions made by the 
contractor in carrying out such evaluation. 
(g) EXPANSION
OF
PILOT
PROGRAM.—Notwith-
standing subsection (a), the Undersecretary may expand 
the pilot program, including extending the duration of the 
program and expanding the program to make it a nation-
wide program, to the extent determined appropriate by the 
Undersecretary, if the Undersecretary determines that 
such expansion is expected to— 
(1) improve the rates of savings among service-
members and their families; or 
(2) decrease the need for servicemembers and 
their families to rely on payday lenders without ex-
acerbating credit overextension. 
(h) FINANCIAL INSTITUTION DEFINED.—For pur-
poses of this section, the term ‘‘financial institution’’ 
means an insured depository institution (as defined under 
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