,,ib ,union ,calendar ,no4 #fib #aaith  
,,congress  #b;d ,session  ,h4 ,r4 #icca
 ,report ,no4 #aai-gib ,,in ,,the       
,,house ,,of ,,representatives  ,june   
#ah1 #bjbf,mrs4 ,kim introduced the     
following bill2 which was referred to   
the ,committee on ,financial ,services  
,september #a1 #bjbf;,additional        
sponsors3 ,mr4 ,lawler1 ,mr4 ,vicente   
,gonzalez of ,texas1 and ,ms4 ,garcia of
 ,texas  ,september #a1 #bjbf,reported  
with an amendment1 committed to the     
,committee of the ,whole ,house on the  
,state of the ,union1 and ordered to be 
printed,strike out all after the        
enacting clause and insert the part     
printed in italic,for text of introduced
 bill1 see copy of bill as introduced on
 ,june #ah1 #bjbf  ,a ,,bill  ,to amend 
the ,expedited ,funds ,availability ,act
 to provide exceptions in the case of   
fraudulent checks or wire transfers1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the          
,strengthening ,transaction ,oversight  

and ,preventing ,payments ,fraud ,act of
 #bjbf or the ,,stop ,payments ,fraud   
,act of #bjbf4  #b4 ,parity of          
availability for certain checks  7a7 ,in
 general ,section #fjc of the ,expedited
 ,funds ,availability ,act 7#ab         
,u4,s4,c4 #djjb7 is amended-- 7#a7 in   
subsection 7d7-- 7,a7 by striking shall 
and inserting may2 and  7,b7 by striking
 to as short a time as possible and     
equal2 and  7#b7 by adding at the end   
the following3  7g7 ,parity of          
,availability for ,certain ,checks      
,during ,times of ,material ,fraud      
,losses  7#a7 ,determination  7,a7      
,before the date that is six months from
 the date of enactment of the           
,strengthening ,transaction ,oversight  
and ,preventing ,payments ,fraud ,act of
 #bjbf1 the ,board1 jointly with the    
,director of the ,bureau of ,consumer   
,financial ,protection1 shall determine1
 with respect to each class of checks   
described in paragraph 7#e71 whether the
 provisions of paragraph 7#c7 should    

apply to that class of checks4  7,b7    
,after the date that is six months from 
the date of enactment of the            
,strengthening ,transaction ,oversight  
and ,preventing ,payments ,fraud ,act of
 #bjbf1 the ,board1 jointly with the    
,director of the ,bureau of ,consumer   
,financial ,protection1 may determine1  
with respect to a class of checks       
described in paragraph 7#e71 that the   
provisions of paragraph 7#c7 should     
apply to that class of checks4  7#b7    
,when making a determination under      
paragraph 7#a71 the ,board and the      
,director of the ,bureau of ,consumer   
,financial ,protection shall consider-- 
7,a7 whether the ,treasury of the       
,united ,states or depository           
institutions1 as applicable1 are        
experiencing material losses from fraud 
related to that class of checks2 and    
7,b7 the impact that a determination    
under paragraph 7#a7 would have on      
persons sending or receiving checks of  
such class of checks4  7#c7 ,if the     

,board1 jointly with the ,director of   
the ,bureau of ,consumer ,financial     
,protection1 makes an affirmative       
determination with respect to a class of
 checks under paragraph 7#a71 then--    
7,a7 notwithstanding subsection 7a71    
funds deposited in an account at a      
depository institution by checks of such
 class shall be available to the same   
extent as funds shall be available when 
deposited by check drawn on a local     
originating depository institution under
 subsection 7b77#a72 and  7,b7 the      
,board1 jointly with the ,director of   
the ,bureau of ,consumer ,financial     
,protection1 no later than #fj days     
after the date of the determination1    
shall submit a report to the ,committee 
on ,banking1 ,housing1 and ,urban       
,affairs of the ,senate and the         
,committee on ,financial ,services of   
the ,house of ,representatives          
explaining the basis for such           
affirmative determination4  7#d7 ,in    
respect of each determination under     

paragraph 7#a71 the provisions of       
paragraph 7#c7 are effective for a time 
to be determined by the ,board1 jointly 
with the ,director of the ,bureau of    
,consumer ,financial ,protection4 ,such 
period may be no longer than one year4  
7#e7 ,the classes of checks described in
 this paragraph are the following3 7,a7 
,the class of checks described in       
subsection 7a77#b77;,a74  7,b7 ,the     
class of checks described in subsection 
7a77#b77;,f74  4  #c4 ,exception to     
funds availability requirements in the  
case of fraud  7a7 ,in general ,section 
#fjd7;c7 of the ,expedited ,funds       
,availability ,act 7#ab ,u4,s4,c4       
#djjc7;c77 is amended-- 7#a7 in         
paragraph 7#a7-- 7,a7 in the heading of 
the paragraph1 by striking ,in general  
and inserting ,collectability2 and  7,b7
 by inserting after subsections 7a77#b71
 7b71 7c71 and 7e7 of section #fjc the  
following3 and paragraphs 7#a7 and 7#c7 
of subsection 7a7 of this section2  7#b7
 by redesignating paragraphs 7#b7       

through 7#d7 as paragraphs 7#c7 through 
7#e71 respectively2  7#c7 by inserting  
after paragraph 7#a7 the following3     
7#b7 ,fraud  7,a7 ,regulations ,in      
accordance with regulations which the   
,board1 jointly with the ,director of   
the ,bureau of ,consumer ,financial     
,protection1 shall prescribe1           
subsections 7a77#b71 7b71 7c71 and 7e7  
of section #fjc and paragraphs 7#a7 and 
7#c7 of subsection 7a7 of this section  
shall not apply with respect to any     
check deposited in an account at a      
depository institution if the receiving 
depository institution has reasonable   
suspicion to believe that the check is  
false1 unauthorized1 or otherwise       
involves fraud4 ,for purposes of the    
preceding sentence1 reasonable suspicion
 to believe that a check is false1      
unauthorized1 or otherwise involves     
fraud requires the existence of         
indicators that would lead a reasonable 
person to suspect that the check        
involves fraud4 ,such reasons shall be  

included in the notice required under   
subsection 7f74  7,b7 ,delayed          
availability ,the regulations issued    
pursuant to this paragraph shall        
prescribe an initial hold 7time period  
of delayed funds availability71 not to  
exceed #aj days1 an extended hold 7time 
period of delayed funds availability71  
not to exceed #de days1 to allow the    
receiving depository institution to     
determine if it has reasonable suspicion
 under subparagraph 7,a74 ,the          
regulations may prescribe different     
initial and extended hold timelines     
based on the dollar amount of the funds 
in question and other relevant criteria4
 ,the regulations may also include      
conditions a receiving depository       
institution must satisfy with respect to
 any hold or delay of funds availability
 pursuant to this paragraph4  7,c7      
,additional notice ,the regulations     
issued pursuant to this paragraph may   
provide for additional notifications to 
a payor1 a receiving depository         

institution1 and a depositor beyond what
 is otherwise required pursuant to      
subsection 7f7 to keep relevant persons 
informed of the status of a hold4  7,d7 
,rule of application ,a receiving       
depository institution that has         
reasonable suspicion to believe that a  
check is false1 unauthorized1 or        
otherwise involves fraud1 as described  
in subparagraph 7,a71 may also have     
reasonable cause to believe that such   
check is uncollectible from the         
originating depository institution1 as  
described in paragraph 7#a74  2 and     
7#d7 in paragraph 7#d71 as so           
redesignated1 by striking paragraph 7#a7
 and inserting paragraph 7#a7 or 7#b74  
#d4 ,exception to funds availability    
requirements in the case of certain     
accounts and fraudulent wire transfers  
7a7 ,in general ,section #fjd of the    
,expedited ,funds ,availability ,act    
7#ab ,u4,s4,c4 #djjc7 is amended by     
adding at the end the following3  7g7   
,application of certain exceptions in   

circumstances with greater fraud risk   
,with respect to an account established 
at a depository institution1 and without
 regard to whether the account was      
established by a new depositor1 upon the
 occurrence of circumstances identified 
by rule by the ,board1 jointly with the 
,director of the ,bureau of ,consumer   
,financial ,protection1 as associated   
with greater fraud risk1 the provisions 
of paragraphs 7#a7 through 7#c7 of      
subsection 7a7 shall apply with respect 
to any deposit in such account for a    
period of time determined by rule by the
 ,board1 jointly with the ,director of  
the ,bureau of ,consumer ,financial     
,protection1 but not to exceed #fj days 
for each such occurrence4  7h7          
,reasonable suspicion exception for wire
 transfers  7#a7 ,in general ,in        
accordance with regulations which the   
,board1 jointly with the ,director of   
the ,bureau of ,consumer ,financial     
,protection1 shall prescribe1 section   
#fjc7;a77#a77;,b7 and subsection        

7a77#a77;,b7 of this section shall not  
apply with respect to funds received by 
a depository institution by wire        
transfer if the receiving depository    
institution has reasonable suspicion to 
believe that the wire transfer is false1
 unauthorized1 or otherwise involves    
fraud4 ,for purposes of the preceding   
sentence1 reasonable suspicion to       
believe that a wire transfer is false1  
unauthorized1 or otherwise involves     
fraud requires the existence of         
indicators that would lead a reasonable 
person to suspect that the wire transfer
 involves fraud4 ,such reasons shall be 
included in the notice required under   
subsection 7f74  7#b7 ,delayed          
availability ,the regulations issued    
pursuant to this subsection shall       
prescribe an initial hold 7time period  
of delayed funds availability71 not to  
exceed #aj days1 an extended hold 7time 
period of delayed funds availability71  
not to exceed #de days1 to allow the    
receiving depository institution to     

determine if it has reasonable suspicion
 under paragraph 7#a74 ,the regulations 
may prescribe different initial and     
extended hold timelines based on the    
dollar amount of the funds in question  
and other relevant criteria4 ,the       
regulations may also include conditions 
a receiving depository institution must 
satisfy with respect to any hold or     
delay of funds availability pursuant to 
this subsection4  7#c7 ,additional      
notice ,the regulations issued pursuant 
to this subsection may provide for      
additional notifications to a payor1 a  
receiving depository institution1 and a 
depositor beyond what is otherwise      
required pursuant to subsection 7f7 to  
keep relevant persons informed of the   
status of a hold4  7#d7 ,basis for      
determination ,no determination under   
this subsection may be based on any     
class of wire transfers or persons4     
7#e7 ,overdraft fees ,if the receiving  
depository institution determines that a
 wire transfer for credit to an account 

is a wire transfer described in         
paragraph 7#a71 the receiving depository
 institution shall not assess any fee   
for any subsequent overdraft with       
respect to such account1 if-- 7,a7 the  
depositor was not provided with the     
written notice required under subsection
 7f7 7with respect to such              
determination7 at the time the wire     
transfer was delayed for credit2 and    
7,b7 the overdraft would not have       
occurred but for the fact that the funds
 so transferred are not available4  7#f7
 ,compliance ,each agency referred to in
 section #faj7;a7 shall monitor         
compliance with the requirements of this
 subsection in each regular examination 
of a depository institution4 ,for the   
purpose of this paragraph1 each         
depository institution shall retain a   
record of each notice provided under    
subsection 7f7 as a result of the       
application of this subsection4  7i7    
,rule of construction ,nothing in this  
,act may be construed to restrict or    

prohibit a depository institution       
involved with a deposit by check or wire
 transfer from communicating to any     
other depository institution also       
involved with the deposit that a        
depository institution has invoked an   
exception under this section to some or 
all of the requirements of section #fjc 
with respect to the deposit4  4  7b7    
,time for notice ,section               
#fjd7;f77#b77;,c7 of the ,expedited     
,funds ,availability ,act 7#ab ,u4,s4,c4
 #djjc7;f77#b77;,c77 is amended by      
striking subsection 7d7 or 7e7 and      
inserting subsection 7c77#b71 7d71 7e7  
or 7h74  #e4 ,study and report on funds 
availability  7a7 ,study ,the           
,comptroller ,general of the ,united    
,states shall conduct a study of-- 7#a7 
,state laws addressing funds            
availability and safeguards to protect  
against fraud1 including permitted hold 
periods for investigating fraud         
concerns2  7#b7 the extent to which     
depository institutions make funds      

available to consumers for local and    
nonlocal checks prior to the expiration 
of maximum hold periods2  7#c7 the      
length of time within which depository  
institutions involved with a deposit by 
check conduct investigations of the     
nonpayment of local and nonlocal checks2
  7#d7 the appropriateness of the time  
periods and amount limits applicable    
under sections #fjc and #fjd1 as in     
effect on ,june #cj1 #bjbf2 and  7#e7   
administrative and legislative reform   
options to further mitigate payment     
fraud risk and any associated consumer  
harm1 including with respect to forms of
 payments covered and not covered by the
 ,expedited ,funds ,availability ,act4  
7b7 ,report to ,congress ,within nine   
months of the effective date of rules   
implementing this ,act1 the ,comptroller
 ,general of the ,united ,states shall  
submit to the ,committee on ,banking1   
,housing1 and ,urban ,affairs of the    
,senate and the ,committee on ,financial
 ,services of the ,house of             

,representatives a report on the        
findings of the study required under    
subsection 7a74  #f4 ,rulemaking        
required and delayed effective date  7a7
 ,rulemaking required ,not later than   
one year after the date of enactment of 
this ,act1 the ,board of ,governors of  
the ,federal ,reserve ,system1 jointly  
with the ,director of the ,bureau of    
,consumer ,financial ,protection1 shall 
adopt final rules implementing the      
amendments made by section #c7;a77#c7   
and section #d4  7b7 ,delayed effective 
date ,the amendments made by section    
#c7;a77#c7 and section #d shall take    
effect #fj days after the rules         
described in subsection 7a7 are adopted4
  ,september #a1 #bjbf,reported with an 
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed