text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Military Savings Act of 2012''.
  
  SEC. 2. CONSUMER FINANCIAL PRODUCTS PILOT PROGRAM.
  
      (a) In General.--The Undersecretary of Defense (Comptroller) shall 
  carry out a 5-year pilot program to develop innovative consumer 
  financial products that encourage 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 servicemember's deployment;
              (2) reduce the need for high-cost short-term lending 
          services by providing alternatives to servicemembers, such as 
          financial institutions providing an option for servicemembers 
          to receive advances on their salary payments, such that 
          servicemembers receive pay in more frequent installments, and 
          where any interest or fees on such advances shall not exceed 
          the rate described in section 987(b) of title 10, United States 
          Code and shall adhere to the Affordable Small Dollar Lending 
          Guidelines of the Federal Deposit Insurance Corporation;
              (3) address obstacles to traditional consumer banking and 
          lending for servicemembers with limited credit history; and
              (4) otherwise encourage savings and wealth-creation among 
          active-duty servicemembers.
      (c) No Exacerbation of Credit Overextension.--The pilot program 
  carried out under this section shall be carried out in such a way that 
  it does not exacerbate the incidence of credit overextension among 
  servicemembers.
      (d) Implementation.--
              (1) Selection of military installations.--The 
          Undersecretary shall choose at least 10 military installations 
          on which to implement the pilot program.
              (2) Incorporation into operating agreements.--With respect 
          to a military installation chosen by the Undersecretary under 
          paragraph (1), a financial 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 customers of the 
                  institution about the availability of the consumer 
                  financial products developed under this section.
      (e) Consultation.--In developing consumer financial 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 enactment 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 
          evaluation--
                      (A) shall include the degree to which the pilot 
                  program succeeded in the goals of increasing 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 products.
              (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 Representatives 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.--Notwithstanding subsection (a), 
  the Undersecretary may expand the pilot program, including extending 
  the duration of the program and expanding the program to make it a 
  nationwide 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 servicemembers and 
          their families; or
              (2) decrease the need for servicemembers and their families 
          to rely on payday lenders without exacerbating credit 
          overextension.
      (h) Financial Institution Defined.--For purposes of this section, 
  the term ``financial institution'' means an insured depository 
  institution (as defined under section 3(c)(2) of the Federal Deposit 
  Insurance Act (12 U.S.C. 1813(c)(2))) or a credit union.
target: Military Savings Act of 2012 - Directs the Undersecretary of Defense (Comptroller) to carry out a five-year pilot program to develop innovative consumer financial products that encourage savings and wealth-creation among active-duty servicemembers. Requires the program to be carried out in such a way that it does not exacerbate the incidence of servicemember credit overextension. Directs the Undersecretary to choose at least 10 military installations at which to implement the program.
  
  Directs the Undersecretary to contract for an annual independent program evaluation until its termination.
  
  Allows the Undersecretary, under certain conditions, to expand the program to a nationwide program and to extend its duration.
feat_title: 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.