160
(8) In section 107(a)(13) (as so designated by 
section 303 of this Act), strike the ‘‘and’’ after the 
semicolon at the end. 
(9) In section 109(c)(2)(A)(i), strike ‘‘(12 
U.S.C. 4703(16))’’. 
(10) In section 120(h), strike ‘‘the Act ap-
proved July 30, 1947 (6 U.S.C., secs. 6–13),’’ and 
insert ‘‘chapter 93 of title 31, United States Code,’’. 
(11) In section 201(b)(5), strike ‘‘section 116 
of’’. 
(12) In section 202(h)(3), strike ‘‘section 
207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. 
(13) In section 204(b), strike ‘‘such others pow-
ers’’ and insert ‘‘such other powers’’. 
(14) In section 206(e)(3)(D), strike ‘‘and’’ after 
the semicolon at the end. 
(15) In section 206(f)(1), strike ‘‘subsection 
(e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 
(16) In section 206(g)(7)(D), strike ‘‘and sub-
section (1)’’. 
(17) In section 206(t)(2)(B), insert ‘‘regula-
tions’’ after ‘‘as defined in’’. 
(18) In section 206(t)(2)(C), strike ‘‘material 
affect’’ and insert ‘‘material effect’’.
161
(19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 
after the semicolon at the end. 
(20) In section 206A(a)(2)(A), strike ‘‘regulator 
agency’’ and insert ‘‘regulatory agency’’. 
(21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 
after the semicolon at the end. 
(22) In the heading for subparagraph (A) of 
section 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 
(23) In section 207(f)(3)(A), strike ‘‘category 
or claimants’’ and insert ‘‘category of claimants’’. 
(24) In section 209(a)(8), strike the period at 
the end and insert a semicolon. 
(25) In section 216(n), insert ‘‘any action’’ be-
fore ‘‘that is required’’. 
(26) In section 304(b)(3), strike ‘‘the affairs or 
such credit union’’ and insert ‘‘the affairs of such 
credit union’’. 
(27) In section 310, strike ‘‘section 102(e)’’ and 
insert ‘‘section 102(d)’’. 
SEC. 803. OTHER TECHNICAL CORRECTIONS. 
(a) Section 1306 of title 18, United States Code, is 
amended by striking ‘‘5136A’’ and inserting ‘‘5136B’’. 
(b) Section 5239 of the Revised Statutes of the 
United States (12 U.S.C. 93) is amended by redesignating 
the second of the 2 subsections designated as subsection
162
(d) (as added by section 331(b)(3) of the Riegle Commu-
nity Development and Regulatory Improvement Act of 
1994) as subsection (e). 
SEC. 804. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 
HOLDING COMPANY ACT OF 1956. 
(a) IN GENERAL.—Section 2 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1841) is amended—
(1) in subsection (c)(2), by striking subpara-
graphs (I) and (J); and 
(2) by striking subsection (m) and inserting the 
following new subsection: 
‘‘(m) [Repealed]’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
Paragraphs (1) and (2) of section 4(h) of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1843(h)) are each 
amended by striking ‘‘(G), (H), (I), or (J) of section 
2(c)(2)’’ and inserting ‘‘(G), or (H) of section 2(c)(2)’’. 
TITLE IX—FAIR DEBT COLLEC-
TION PRACTICES ACT AMEND-
MENTS 
SEC. 901. EXCEPTION FOR CERTAIN BAD CHECK ENFORCE-
MENT PROGRAMS. 
(a) IN GENERAL.—The Fair Debt Collection Prac-
tices Act (15 U.S.C. 1692 et seq.) is amended—
163
(1) by redesignating section 818 as section 819; 
and 
(2) by inserting after section 817 the following 
new section: 
‘‘§ 818. Exception for certain bad check enforcement 
programs operated by private entities 
‘‘(a) IN GENERAL.—If—
‘‘(1) a State or district attorney establishes, 
within the jurisdiction of such State or district attor-
ney and with respect to alleged bad check violations 
that do not involve a check described in subsection 
(c), a pretrial diversion program for alleged bad 
check offenders who agree to participate voluntarily 
in such program to avoid criminal prosecution and 
are not described in subsection (b); 
‘‘(2) a private entity, that is subject to an ad-
ministrative support services contract with a State 
or district attorney and operates under the direction, 
supervision and control of such State or district at-
torney, operates the pretrial diversion program de-
scribed in paragraph (1); and 
‘‘(3) in the course of performing duties dele-
gated to it by a State or district attorney under the 
contract, the private entity referred to in paragraph 
(2)—
164
‘‘(A) complies with the penal laws of the 
State; 
‘‘(B) conforms with the terms of the con-
tract and directives of the State or district at-
torney; 
‘‘(C) does not exercise independent pros-
ecutorial discretion; 
‘‘(D) contacts any alleged offender referred 
to in paragraph (1) for purposes of partici-
pating in a program referred to in such para-
graph only—
‘‘(i) as a result of any determination 
by the State or district attorney that suffi-
cient evidence of a bad check violation 
under State law exists and that contact 
with the alleged offender for purposes of 
participation in the program is appro-
priate; or 
‘‘(ii) as otherwise permitted in re-
sponse to evidence of a bad check; 
‘‘(E) includes as part of an initial written 
communication with an alleged offender a clear 
and conspicuous statement that—
‘‘(i) the alleged offender may dispute 
the validity of any alleged bad check viola-
165
tion through a procedure established and 
supervised by the State or district attor-
ney, together with an explanation of how 
such a dispute may be initiated; and 
‘‘(ii) 
where 
the 
alleged 
offender 
knows, or has reasonable cause to believe, 
that the alleged bad check violation is the 
result of theft or forgery of the check, 
identity theft, or other fraud that is not 
the result of the alleged offender’s conduct, 
the alleged offender may file a crime report 
with the appropriate law enforcement 
agency and have further contacts or res-
titution efforts suspended until the ques-
tion of the theft or forgery of the check, 
identity theft, or other fraud has been re-
solved, together with clear instructions on 
how to file such crime report; and 
‘‘(F) charges only fees in connection with 
services under the contract that—
‘‘(i) have been authorized by the con-
tract with the State or district attorney; 
and 
‘‘(ii) conform with the schedule of rea-
sonable charges for such services which
166
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—
167
‘‘(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.
168
‘‘(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—
169
‘‘(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-
170
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).’’.
171
(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:
Clerk.