166 
HR 3505 RFS 
shall be established by the National Dis-
trict Attorney’s Association, after consulta-
tion with the Commission and representa-
tives of interested business and consumer 
organizations, 
the private entity shall be treated as an officer of the State 
and excluded from the definition of debt collector, pursu-
ant to the exception provided in section 803(6)(C), with 
respect to the entity’s operation of the program described 
in paragraph (1) under the contract described in para-
graph (2). 
‘‘(b) CERTAIN OFFENDERS EXCLUDED.—An alleged 
bad check offender is described in this subsection if a pri-
vate entity described in subsection (a)(2) can determine 
from available records that such offender— 
‘‘(1) was convicted of a bad check offense in the 
3 years prior to issuing the bad check under consid-
eration; or 
‘‘(2) participated in a pretrial diversion pro-
gram in the 18 months prior to issuing the bad 
check under consideration. 
‘‘(c) CERTAIN CHECKS EXCLUDED.—A check is de-
scribed in this subsection if the check involves, or is subse-
quently found to involve— 
VerDate Aug 31 2005 
23:30 Mar 09, 2006
Jkt 049200
PO 00000
Frm 00166
Fmt 6652
Sfmt 6201
E:\BILLS\H3505.RFS
H3505
cchase on PROD1PC60 with BILLS
167 
HR 3505 RFS 
‘‘(1) a postdated check presented in connection 
with a payday loan, or other similar transaction, 
where the holder of the check knew that the issuer 
had insufficient funds at the time the check was 
made, drawn or delivered; 
‘‘(2) a stop payment order where the issuer 
acted in good faith and with reasonable cause in 
stopping payment on the check; 
‘‘(3) a check dishonored because of an adjust-
ment to the issuer’s account by the financial institu-
tion holding such account without providing notice 
to the person at the time the check was made, 
drawn or delivered; 
‘‘(4) a check for partial payment of a debt 
where the holder had previously accepted partial 
payment for such debt; 
‘‘(5) a check issued by a person who was not 
competent, or was not of legal age, to enter into a 
legal contractual obligation at the time the check 
was made, drawn or delivered; or 
‘‘(6) a check issued to pay an obligation arising 
from a transaction that was illegal in the jurisdiction 
of the State or district attorney at the time the 
check was made, drawn or delivered. 
VerDate Aug 31 2005 
23:30 Mar 09, 2006
Jkt 049200
PO 00000
Frm 00167
Fmt 6652
Sfmt 6201
E:\BILLS\H3505.RFS
H3505
cchase on PROD1PC60 with BILLS
168 
HR 3505 RFS 
‘‘(d) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) STATE
OR
DISTRICT
ATTORNEY.—The 
term ‘State or district attorney’ means the chief 
elected or appointed prosecuting attorney in a dis-
trict, county (as defined in section 2 of title 1, 
United States Code), municipality, or comparable ju-
risdiction, including State attorneys general who act 
as chief elected or appointed prosecuting attorneys 
in a district, county (as so defined), municipality or 
comparable jurisdiction, who may be referred to by 
a variety of titles such as district attorneys, pros-
ecuting attorneys, commonwealth’s attorneys, solici-
tors, county attorneys, and state’s attorneys, and 
who are responsible for the prosecution of State 
crimes and violations of jurisdiction-specific local or-
dinances. 
‘‘(2) CHECK.—The term ‘check’ has the same 
meaning as in section 3(6) of the Check Clearing for 
the 21st Century Act. 
‘‘(3) BAD CHECK.—The term ‘bad check’ means 
any check that— 
‘‘(A) the issuer knew, or should have 
known, would not be paid upon presentment be-
cause the issuer— 
VerDate Aug 31 2005 
23:30 Mar 09, 2006
Jkt 049200
PO 00000
Frm 00168
Fmt 6652
Sfmt 6201
E:\BILLS\H3505.RFS
H3505
cchase on PROD1PC60 with BILLS
169 
HR 3505 RFS 
‘‘(i) had no account with the drawee 
financial institution at the time the check 
was made, drawn, or delivered; 
‘‘(ii) had closed the account upon with 
the check was made or drawn prior to the 
time the check was made, drawn, or deliv-
ered; or 
‘‘(iii) used a false or altered check, or 
false or altered check account number; or 
‘‘(B) was refused payment by the financial 
institution or other drawee for lack of sufficient 
funds and the issuer failed to pay the full 
amount of the check, together with reasonable 
costs as permitted by State law— 
‘‘(i) after receiving written notice 
from the holder of the check that payment 
was refused by the drawee financial insti-
tution to the extent that the timing and 
mode of delivery of such written notice is 
in compliance with the applicable State law 
for determining criminal liability for bad 
check offenses; or 
‘‘(ii) in a case in which there are no 
applicable State law requirements as de-
scribed in clause (i), within 30 days of re-
VerDate Aug 31 2005 
23:30 Mar 09, 2006
Jkt 049200
PO 00000
Frm 00169
Fmt 6652
Sfmt 6201
E:\BILLS\H3505.RFS
H3505
cchase on PROD1PC60 with BILLS
170 
HR 3505 RFS 
ceiving written notice, mailed to the issuer 
by certified mail to the address printed on 
the check, or given at the time the check 
was made, drawn or delivered or, other-
wise, at the address where the alleged of-
fender resides or is found, from the holder 
of the check that payment of 1 or more 
checks was refused by the drawee financial 
institution.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for the Fair Debt Collection Practices Act is amended— 
(1) by redesignating the item relating to section 
818 as section 819; and 
(2) by inserting after the item relating to sec-
tion 817 the following new item: 
‘‘818. Exception for certain bad check enforcement programs operated by pri-
vate entities.’’. 
SEC. 902. OTHER AMENDMENTS. 
(a) LEGAL PLEADINGS.—Section 809 of the Fair 
Debt Collection Practices Act (15 U.S.C. 1692g) is 
amended by adding at the end the following new sub-
section: 
‘‘(d) LEGAL PLEADINGS.—A communication in the 
form of a formal pleading in a civil action shall not be 
treated as an initial communication for purposes of sub-
section (a).’’. 
VerDate Aug 31 2005 
23:30 Mar 09, 2006
Jkt 049200
PO 00000
Frm 00170
Fmt 6652
Sfmt 6201
E:\BILLS\H3505.RFS
H3505
cchase on PROD1PC60 with BILLS
171 
HR 3505 RFS 
(b) NOTICE PROVISIONS.—Section 809 of the Fair 
Debt Collection Practices Act (15 U.S.C. 1692g) is 
amended by adding after subsection (d) (as added by sub-
section (a) of this section) the following new subsection: 
‘‘(e) NOTICE PROVISIONS.—The sending or delivery 
of any form or notice which does not request the payment 
of a debt and is expressly required by any other Federal 
or State law or regulation, including the Internal Revenue 
Code of 1986, title V of Gramm-Leach-Bliley Act, and any 
data security breach notice and privacy law shall not be 
treated as a communication in connection with debt collec-
tion. ’’. 
(c) ESTABLISHMENT OF RIGHT TO COLLECT WITHIN 
THE FIRST 30 DAYS.—Section 809(b) of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692g(b)) is amended 
by striking ‘‘If the consumer’’ and inserting ‘‘Collection 
activities and communications may continue during any 
30-day period referred to in subsection (a). However, if 
the consumer’’. 
Passed the House of Representatives March 8, 
2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
VerDate Aug 31 2005 
23:30 Mar 09, 2006
Jkt 049200
PO 00000
Frm 00171
Fmt 6652
Sfmt 6201
E:\BILLS\H3505.RFS
H3505
cchase on PROD1PC60 with BILLS