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‘‘(B) conforms with the terms of the contract 
and directives of the State or district attorney; 
‘‘(C) does not exercise independent prosecu-
torial discretion; 
‘‘(D) contacts any alleged offender referred 
to in paragraph (1) for purposes of participating 
in a program referred to in such paragraph 
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-
tion through a procedure established and su-
pervised by the State or district attorney,
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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 of-
fender may file a crime report with the ap-
propriate law enforcement agency and have 
further contacts or restitution efforts sus-
pended until the question of the theft or for-
gery of the check, identity theft, or other 
fraud has been resolved, together with clear 
instructions on how to file such crime re-
port; 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 shall 
be established by the National District At-
torney’s Association, after consultation with
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the Commission and representatives of in-
terested business and consumer organiza-
tions, 
the private entity shall be treated as an officer of the State 
and excluded from the definition of debt collector, pursuant 
to the exception provided in section 803(6)(C), with respect 
to the entity’s operation of the program described in para-
graph (1) under the contract described in paragraph (2). 
‘‘(b) CERTAIN OFFENDERS EXCLUDED.—An alleged 
bad check offender is described in this subsection if a private 
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 consider-
ation; 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— 
‘‘(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
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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 adjustment 
to the issuer’s account by the financial institution 
holding such account without providing notice to the 
person at the time the check was made, drawn or de-
livered; 
‘‘(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. 
‘‘(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
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appointed prosecuting attorney in a district, county 
(as defined in section 2 of title 1, United States 
Code), municipality, or comparable jurisdiction, in-
cluding State attorneys general who act as chief elect-
ed 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, prosecuting attorneys, 
commonwealth’s attorneys, solicitors, county attor-
neys, and state’s attorneys, and who are responsible 
for the prosecution of State crimes and violations of 
jurisdiction-specific local ordinances. 
‘‘(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 because the 
issuer— 
‘‘(i) had no account with the drawee fi-
nancial 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
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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 re-
fused by the drawee financial institution to 
the extent that the timing and mode of de-
livery of such written notice is in compli-
ance with the applicable State law for de-
termining 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-
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, otherwise, at 
the address where the alleged offender re-
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sides or is found, from the holder of the 
check that payment of 1 or more checks was 
refused by the drawee financial institu-
tion.’’. 
(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 section 
817 the following new item: 
‘‘818. Exception for certain bad check enforcement programs operated by private 
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 subsection: 
‘‘(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).’’. 
(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 subsection (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
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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 Col-
lection Practices Act (15 U.S.C. 1692g(b)) is amended by 
striking ‘‘If the consumer’’ and inserting ‘‘Collection activi-
ties and communications may continue during any 30-day 
period referred to in subsection (a). However, if the con-
sumer’’.
Union Calendar No. 206 
109TH CONGRESS 
2D SESSION 
H. R. 3505 
[Report No. 109–356, Parts I and II] 
A BILL 
To provide regulatory relief and improve produc-
tivity for insured depository institutions, and for 
other purposes. 
FEBRUARY 16, 2006 
Reported from the Committee on the Judiciary with an 
amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be 
printed