Lawmakers Approve Early Lease Exit for Service Members

The General Assembly approved legislation sponsored by Senator DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton) and Representative Raymond E. Gallison Jr. (D-Dist. 69, Bristol, Portsmouth) to help active service members exit automobile and housing leases when they are moved to a different station or deployed.

The legislation (2013-S 0042A, 2013-H 5165B) would allow a service member who is moved to a different base or is deployed for a period of more than 180 days to unilaterally terminate a motor vehicle lease on a vehicle intended for use by the service member or a dependent by providing a copy of his or her order or a letter signed by his or her commanding officer and returning the vehicle, without paying a penalty.

The lawmakers introduced the legislation at the request of Capt. Douglas Mikatarian, the Commanding Officer at Naval Station Newport, who asked for it to protect service members from financial difficulties when they are moved or deployed.

“This is all about taking care of our young service members who, through no fault of their own, could be faced with paying up to two months’ rent on a home or apartment in which they no longer live. We are not talking about service members who simply choose to switch apartments, these are men and women, many of whom live paycheck to paycheck, who are being ordered to move in support of our nation’s defense,” said Captain Mikatarian.

With the same documentation, a service member who is moved or deployed for more than 90 days would be able to terminate a housing rental agreement, effective 30 days after the lessee provides the notice, without an early termination fee.

“In practical terms, service members and members of the National Guard or Reserves need a way to leave a lease on little notice, since they are so often called up to action without much warning, or are moved from one base to another,” said DiPalma.

The bill will now be sent to the governor.