An Act To Support District Attorney Check Diversion Programs
Maine Legislature, Session 124, LD 0511
Committee Amendment CA_A_H105 (House)
Amends: 32 MRSA §11003, 32 MRSA §11013-A

COMMITTEE AMENDMENT" I}' to H.P. 356, L.D. 511, Bill, "An Act To 
Support District Attorney Check Diversion Programs" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Support Pretrial Diversion Programs for Issuers of Worthless Checks' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 32 MRSA §11003, sub-§7, ~, as enacted by PL 1985, c. 702, §2, is 
amended to read: 
D. 
Concerns a debt obtained by that person as a secured party in a commercial 
credit transaction involving the creditor; aJtEi 
Sec. 2. 32 MRSA §11003, sub-§8, as enacted byPL 1985, c. 702, §2, is amended 
to read: 
8. Collection activities· related to the operation of a business. Any person whose 
collection activities are confined to and directly related to the operation of a business 
other than that of a debt collector, such as, but not limited to, financial institutions 
regulated under Title 9-B7; and 
Sec. 3. 32 MRSA §11003, sub-§9 is enacted to read: 
9. Certain pretrial diversion programs for issuers of worthless checks. A private 
entity operating a worthless check enforcement program that meets the conditions set 
forth in section 11013-A, subsection 3. 
Sec. 4. 32 MRSA §11013-A is enacted to read: 
§11013-A. Exception for certain pretrial diversion programs for issuers of worthless 
checks operated by private entities 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 356, L.D. 511 
A. "Check" has the same meaning as in Title 14, section 6071, subsection 4. 
B. 
"State or district attorney" means the chief elected or appointed prosecuting 
attorney in a district, county, municipality or comparable jurisdiction, including the 
Attorney General acting as chief elected or appointed prosecuting ~ttorney in a 
district, county, municipality or comparable jurisdiction, who is responsible for the 
prosecution of state crimes and violations of jurisdiction-specific local ordinances. 
C. 
"Worthless check violation" means a violation of Title 17-A, section 708, 
subsection 1, paragraph A. 
2. Pretrial diversion program for issuers of worthless checks. If a state or district 
attorney wants to be excluded from consideration as a debt collector as provided in 
section 11003, subsection 9, that state or district attorney shall establish, within the 
jurisdiction of that state or district attorney and with respect to alleged worthless check 
violations that do not involve a check described in subsection 4, a pretrial diversion 
program for issuers of worthless checks who agree to participate voluntarily in that 
program to avoid criminal prosecution. 
3. Conditions for exception. A private entity operating a pretrial diversion program 
for issuers of worthless checks that meets the following requirements is excluded from 
being considered a debt collector. 
A. The private entity must operate the pretrial diversion program for issuers of 
worthless checks described in subsection 2 subject to an administrative support 
services contract with the state or district attorney and under the direction, 
supervision and control ofthat state or district attorney. 
B. In the course of performing duties delegated to it by a state or district attorney 
under an administrative support services contract, the private entity referred to in 
paragraph A: 
(1) Shall comply with the criminal laws ofthe State; 
(2) Shall conform with the terms of the administrative support services contract 
and directives ofthe state or district attorney; 
(3) May not exercise independent prosecutorial discretion; 
(4) Shall contact any issuer of an alleged worthless check for the purposes of 
participating in a pretrial diversion program for issuers of worthless checks as 
described in subsection 2: 
(a) Only as a result of a determination by the state or district attorney that 
probable cause of a worthless check violation under state criminal law exists, 
and that contact with the issuer of an alleged worthless check for purposes of 
participation in the program is appropriate; and 
(b) Only if the issuer of an alleged worthless check has failed to pay the 
worthless check after demand for payment is made for the check amount 
pursuant to state law; 
(5) Shall include as part of an initial written communication with an issuer of an 
alleged worthless check a clear and conspicuous statement that: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" ~"to H.P. 356, L.D. 511 
(a) The issuer of an alleged worthless check may dispute the validity of any 
alleged worthless check violation; 
(b) When the issuer of an alleged worthless check knows, or has reasonable 
cause to believe, that the alleged worthless check violation is the result of 
theft or forgery of the check, identity theft or other fraud that is not the result 
of the conduct of the issuer of an alleged worthless check, the issuer of the 
alleged worthless check may file a crime report with the appropriate law 
enforcement agency; and 
(c) If the issuer of an alleged worthless check notifies the private entity or 
the state or district attorney in writing, not later than 30 days after being 
contacted for the first time pursuant to subparagraph (4), that there is a 
dispute pursuant to this subsection, before further restitution efforts are 
pursued, the state or district attorney or an employee of that state or district 
attorney must make a determination that there is probable cause to believe 
that a crime has been committed; and 
(6) May charge fees only in connection with services under the administrative 
support services contract under paragraph A that have been authorized by the 
contract with the state or district attorney. 
4. Certain checks excluded. A check described in this subsection is not considered 
a worthless check eligible for the pretrial diversion program for issuers of worthless 
checks described in subsection 2 if the check involves or is subsequently found to 
involve: 
A. A postdated check presented in connection with a payday loan or other similar 
transaction when the payee of the check knew that the issuer had insufficient funds at 
the time the check was made, drawn or delivered; 
B. A stop payment order when the issuer acted in good faith and with reasonable 
cause in stopping payment on the check; 
c. A check dishonored because of an adjustment to the issuer's account by the 
financial institution holding that account without providing notice to the person at the 
time the check was made, drawn or delivered; 
D. A check for partial payment of a debt where the payee had previously accepted 
partial payment for that debt; 
E. 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; 
F. 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; or 
G. 
A check that is the result of theft or forgery of the check, identity theft or other 
fraud that is not the result of the conduct of the alleged worthless check offender. 
COMMITTEE AMENDMENT 
COMMIITEE AMENDMENT"~ "to H.P. 356, L.D. 511 
5. Registration. Notwithstanding the exemptions in subsections 3 and 4, a private 
entity that operates a pretrial diversion program for issuers of worthless checks pursuant 
to this section shall register with the administrator on forms acceptable to the 
administrator and in a manner consistent with section 11031, subsection 2. Before 
granting a registration pursuant to this subsection, the administrator shall: 
A. Review the administrative support services contract under subsection 3, paragraph 
A between the private entity and the state or district attorney; 
B. Review all form communications to issuers of alleged worthless checks that will 
be used as part of the pretrial diversion program for issuers of worthless checks; and 
C. Review the quality controls to be implemented by the state or district attorney and 
the private entity to ensure continued compliance with this section and to maintain 
the exemption granted in section 11003, subsection 9. 
6. Enforcement. To ensure compliance with this section, the administrator may 
receive and act on complaints in accordance with Title 9-A, section 6-104, conduct 
compliance examinations pursuant to Title 9-A, section 6-106 and exercise regulatory and 
remedial authority pursuant to Title 9-A, Article 6. 
Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF 
Administrative Services - Professional and Financial Regulation 0094 
Initiative: Allocates funds for the one-time costs to establish a new registration category 
in the agency's licensing system. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
. SUMMARY 
2009-10 
$2,500 
$2,500 
2010-11 
$0 
$0 
This amendment replaces the bill. It excludes from the definition of "debt collector" 
those pretrial diversion programs for issuers of worthless checks operated under the 
supervision of state or district attorneys' offices, while applying conditions and 
protections found in the federal Fair Debt Collection Practices Act. It requires that a 
private entity operating a pretrial diversion program for issuers of worthless checks 
register with the Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection. The amendment also requires the Superintendent of 
Consumer Credit Protection to review the contract between the private entity and the state 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "0 "to H.P. 356, L.D. 511 
or district attorney and the form communications used by private entities before granting 
a registration. It also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
"I, 
Approved: 03/26/09 
~ac:.. 
LD 511 
LR 956(02) 
An Act To Support District Attorney Check Diversion Programs 
Fiscal Note for BiII as Amended by Committee Amendment "11' 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
2010-11 
Projections 
2011-12 
Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$2,500 
$0 
$0 
Projections 
2012-13 
$0 
Provides an allocation of $2,500 in 2009-10 to the Office of Administrative Services in the Department of 
Professional and Financial Regulation for the one-time costs of establishing a new registration category in the agency's 
licensing system. 
LR0956(02) - Fiscal Note - Page 1 of 1 
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