Federal Employees Civil Relief Act

I 116TH CONGRESS 1ST SESSION H. R. 588 To suspend the enforcement of certain civil liabilities of Federal employees and contractors during a lapse in appropriations, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 16, 2019 Mr. KILMER (for himself, Mr. SEAN PATRICK MALONEY of New York, Mr. CONNOLLY, Mrs. LEE of Nevada, Mrs. BUSTOS, Mr. KILDEE, Ms. KUSTER of New Hampshire, Mrs. DINGELL, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. CLARK of Massachusetts, Mr. CUNNINGHAM, Miss RICE of New York, Mr. COURTNEY, Mr. PAPPAS, Mrs. DEMINGS, and Mr. TED LIEU of California) introduced the following bill; which was re- ferred to the Committee on Oversight and Reform, and in addition to the Committees on Financial Services, Education and Labor, Ways and Means, the Judiciary, and House Administration, for a period to be sub- sequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To suspend the enforcement of certain civil liabilities of Federal employees and contractors during a lapse in appropriations, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Federal Employees 4 Civil Relief Act’’. 5 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 2 •HR 588 IH SEC. 2. PURPOSE. 1 The purpose of this Act is to provide for the tem- 2 porary suspension of judicial and administrative pro- 3 ceedings and transactions that may adversely affect the 4 civil rights of Federal workers during a shutdown and the 5 30 days following the date that the shutdown ends. 6 SEC. 3. DEFINITIONS. 7 In this Act: 8 (1) CONSUMER REPORTING AGENCY.—The term 9 ‘‘consumer reporting agency’’ has the meaning given 10 the term in section 603(f) of the Fair Credit Report- 11 ing Act (15 U.S.C. 1681a(f)). 12 (2) CONTRACTOR.—The term ‘‘contractor’’ has 13 the meaning given the term in section 7101 of title 14 41, United States Code. 15 (3) COURT; JUDGMENT; STATE.—The terms 16 ‘‘court’’, ‘‘judgment’’, and ‘‘State’’ have the mean- 17 ings given those terms in section 101 of the 18 Servicemembers Civil Relief Act (50 U.S.C. 3911). 19 (4) COVERED PERIOD.—The term ‘‘covered pe- 20 riod’’ means the period beginning on the date on 21 which a shutdown begins and ending on the date 22 that is 30 days after the date on which that shut- 23 down ends. 24 (5) FEDERAL WORKER.—The term ‘‘Federal 25 worker’’— 26 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 3 •HR 588 IH (A) means an employee of a Government 1 agency; and 2 (B) includes an employee of a contractor. 3 (6) GOVERNMENT AGENCY.—The term ‘‘Gov- 4 ernment agency’’ means each authority of the execu- 5 tive, legislative, or judicial branch of the Government 6 of the United States. 7 (7) SHUTDOWN.—The term ‘‘shutdown’’ means 8 any period in which there is more than a 24-hour 9 lapse in appropriations for any Government agency 10 or Federal department as a result of a failure to 11 enact a regular appropriations bill or continuing res- 12 olution. 13 SEC. 4. JURISDICTION. 14 (a) JURISDICTION.—This Act shall apply to— 15 (1) the United States; 16 (2) each of the States, including each political 17 subdivision of a State; 18 (3) all territory that is subject to the jurisdic- 19 tion of the United States; and 20 (4) Indian country (as that term is defined in 21 section 1151 of title 18, United States Code). 22 (b) APPLICABILITY TO PROCEEDINGS.—This Act— 23 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 4 •HR 588 IH (1) shall apply to any judicial or administrative 1 proceeding that is commenced in any court or agen- 2 cy in any jurisdiction that is subject to this Act; and 3 (2) shall not apply to criminal proceedings or 4 with respect to child support payments. 5 (c) COURT IN WHICH APPLICATION MAY BE 6 MADE.—When, under this Act, any application is required 7 to be made to a court in which no proceeding has already 8 been commenced with respect to a matter, that application 9 may be made to any court that would otherwise have juris- 10 diction over the matter. 11 (d) NOTIFICATION.— 12 (1) IN GENERAL.—The head of the Government 13 agency that employs a Federal worker, or at which 14 a Federal worker performs services, as applicable, 15 shall provide the Federal worker with written notice 16 regarding the benefits provided under this Act— 17 (A) on the date on which the individual be- 18 comes a Federal worker; and 19 (B) periodically after the date described in 20 subparagraph (A), including on the date on 21 which any covered period begins. 22 (2) LEGISLATIVE AND JUDICIAL BRANCH.— 23 With respect to a Federal worker in a Government 24 agency in the legislative branch or judicial branch, 25 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 5 •HR 588 IH (or, in the case of a Federal worker who is an em- 1 ployee of a contractor, who provides services at a 2 Government agency in the legislative branch or judi- 3 cial branch), the officer or employee at the Govern- 4 ment agency who has the final authority to appoint, 5 hire, discharge, and set the terms, conditions, or 6 privileges of the employment of the Federal worker 7 shall provide the notice required under paragraph 8 (1). 9 (3) NOTICE ON EVENT OF SHUTDOWN.—A no- 10 tice provided under paragraph (1)(B) to a Federal 11 worker shall include a statement that such Federal 12 worker is being furloughed or excepted from fur- 13 lough (as the case may be) as a result of the appli- 14 cable shutdown. 15 SEC. 5. ANTICIPATORY RELIEF. 16 A Federal worker who is furloughed or required to 17 work without pay during a covered period may apply to 18 a court for a temporary stay, postponement, or suspension 19 with respect to any payment of rent, mortgage, tax, fine, 20 penalty, insurance premium, student loan repayment, or 21 other civil obligation or liability that the Federal worker 22 or individual, as applicable, owes or would owe during the 23 duration of that covered period. 24 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 6 •HR 588 IH SEC. 6. EVICTIONS. 1 (a) COURT-ORDERED EVICTION.—Except by the 2 order of a court, a landlord may not, during a covered 3 period— 4 (1) evict a Federal worker from premises that 5 are occupied or intended to be occupied primarily as 6 a residence; or 7 (2) subject premises described in paragraph (1) 8 to a distress. 9 (b) STAY OF EXECUTION.— 10 (1) COURT AUTHORITY.—Upon an application 11 for eviction or distress with respect to premises de- 12 scribed in subsection (a)(1), a court may, upon mo- 13 tion of the court, and shall, if a request is made by 14 or on behalf of a Federal worker, the ability of 15 whom to pay the rent that is the subject of the ac- 16 tion is materially affected by a shutdown— 17 (A) stay the proceedings for a period of 30 18 days after the covered period, unless, in the 19 opinion of the court, justice and equity require 20 a longer or shorter period of time; or 21 (B) adjust the obligation under the lease to 22 preserve the interests of all parties. 23 (2) RELIEF TO LANDLORD.—If a court grants 24 a stay under paragraph (1), the court may grant to 25 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 7 •HR 588 IH the landlord (or other person with paramount title) 1 such relief as equity may require. 2 SEC. 7. MORTGAGE PROTECTION AND FORECLOSURES. 3 (a) DEFINITION.—In this section, the term ‘‘covered 4 action’’ means an action relating to an obligation— 5 (1) with respect to real or personal property 6 owned by a Federal worker; and 7 (2) that— 8 (A) originated before the date on which a 9 covered period begins; 10 (B) is in effect on the date on which a cov- 11 ered period begins; and 12 (C) is secured by a mortgage, trust deed, 13 or other security in the nature of a mortgage. 14 (b) STAY OF PROCEEDINGS AND ADJUSTMENT OF 15 OBLIGATION.—If a covered action is filed in a court dur- 16 ing a covered period, the court may, after a hearing and 17 upon the motion of the court, and shall, upon application 18 by the Federal worker if the ability of the Federal worker 19 to comply with the covered obligation is materially affected 20 by the shutdown— 21 (1) stay the proceedings for a period of 30 days 22 after the covered period, unless, in the opinion of the 23 court, justice and equity require a longer or shorter 24 period of time; or 25 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 8 •HR 588 IH (2) adjust the obligation to preserve the inter- 1 ests of all parties. 2 (c) SALE OR FORECLOSURE.—A sale, foreclosure, or 3 seizure of property for a breach of an obligation described 4 in subsection (a) by a Federal worker shall not be valid 5 if made during a covered period except upon the order of 6 a court that is granted before that sale, foreclosure, or 7 seizure, as applicable, with a return made and approved 8 by the court. 9 SEC. 8. LIENS. 10 (a) LIENS.— 11 (1) DEFINITION.—In this subsection, the term 12 ‘‘lien’’ includes— 13 (A) a lien— 14 (i) for storage, repair, or cleaning of 15 the property or effects of a Federal work- 16 er; and 17 (ii) on the property or effects de- 18 scribed in clause (i) for any reason other 19 than a reason described in that clause; and 20 (B) a loan that a Federal worker has ob- 21 tained with respect to a motor vehicle. 22 (2) LIMITATION ON FORECLOSURE OR EN- 23 FORCEMENT.—A person holding a lien on the prop- 24 erty or effects of a Federal worker may not, during 25 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 9 •HR 588 IH a covered period, foreclose on or enforce that lien 1 without the order of a court that was issued before 2 the date on which that foreclosure or enforcement 3 occurs. 4 (b) STAY OF PROCEEDINGS.—In a proceeding to 5 foreclose on or enforce a lien that is subject to this section, 6 a court may, upon the motion of the court, and shall, if 7 requested by a Federal worker, the ability of whom to 8 comply with the obligation resulting in the proceeding is 9 materially affected by a shutdown— 10 (1) stay the proceedings for a period of 30 days 11 after the covered period, unless, in the opinion of the 12 court, justice and equity require a longer or shorter 13 period of time; or 14 (2) adjust the obligation to preserve the inter- 15 ests of all parties. 16 SEC. 9. STUDENT LOANS. 17 (a) DEFINITION OF STUDENT LOAN.—In this sec- 18 tion, the term ‘‘student loan’’ means the following: 19 (1) A loan made, insured, or guaranteed under 20 title IV of the Higher Education Act of 1965 (20 21 U.S.C. 1070 et seq.), including any Federal Direct 22 Stafford Loan, Federal Direct Unsubsidized Staf- 23 ford Loan, Federal Direct PLUS Loan, or Federal 24 Direct Consolidation Loan. 25 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 10 •HR 588 IH (2) A private education loan, as such term is 1 defined in section 140(a) of the Truth in Lending 2 Act (15 U.S.C. 1650(a)). 3 (b) APPLICATION TO STUDENT LOANS.—This section 4 shall apply to any situation in which— 5 (1) the student loan payment of a Federal 6 worker falls due or remains unpaid during a covered 7 period; and 8 (2) during the shutdown applicable to the cov- 9 ered period described in paragraph (1), the Federal 10 worker described in that paragraph has been fur- 11 loughed or required to work without pay. 12 (c) DEFERMENT ELIGIBILITY.—During a covered pe- 13 riod, a Federal worker shall be eligible for deferment, dur- 14 ing which, with respect to a student loan, periodic install- 15 ments of principal need not be paid and interest shall not 16 accrue. 17 (d) LIMITATION ON DEFAULTS.—If the student loan 18 payment of a Federal worker falls due and remains unpaid 19 during a covered period, the lender with respect to the stu- 20 dent loan may not place the loan in default without the 21 order of a court. 22 (e) LIMITATION ON COLLECTIONS.—If the student 23 loan of a Federal worker has been placed in default before 24 the date on which a shutdown begins, the lender with re- 25 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 11 •HR 588 IH spect to the student loan may not, without the order of 1 a court, perform any of the following activities during the 2 covered period with respect to the shutdown: 3 (1) Send the loan to collection. 4 (2) Report adverse information with respect to 5 the Federal worker to a consumer reporting agency. 6 (3) Garnish wages, tax refunds, or government 7 benefits. 8 (f) COURT STAY.—In a proceeding to collect a stu- 9 dent loan payment that is subject to this section, a court 10 may, upon the motion of the court, and shall, if requested 11 by a Federal worker, the ability of whom to comply with 12 the obligation resulting in the proceeding is materially af- 13 fected by a shutdown— 14 (1) stay the proceeding for 30 days after the 15 applicable covered period; or 16 (2) adjust the obligation to preserve the inter- 17 ests of all parties. 18 SEC. 10. INCOME TAXES. 19 (a) DEFERRAL OF TAX.—Upon notice to the Internal 20 Revenue Service, the collection of Federal income tax on 21 the income of a Federal worker falling due during a cov- 22 ered period shall be deferred for a period of not more than 23 90 days after the date on which the covered period ends 24 VerDate Sep 11 2014 04:05 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H588.IH H588 kjohnson on DSK79L0C42 with BILLS 12 •HR 588 IH if the ability of the Federal worker to pay the income tax 1 is materially affected by the shutdown. 2 (b) ACCRUAL OF INTEREST OR PENALTY.—No inter- 3 est or penalty shall accrue during the period of deferment 4 under subsection (a) by reason of nonpayment on any 5 amount of tax deferred under this section. 6 (c) STATUTE OF LIMITATIONS.—The running of a 7 statute of limitatio [Text truncated for display. Full text available on Congress.gov.]