To provide an exception for notice to consumer reporting agencies regarding debts or erroneous payments for which a decision to waive or cancel is pending.

1. Adds SEC. 662. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES REGARDING DEBTS OR ERRONEOUS PAYMENTS PENDING A DECISION TO WAIVE, REMIT, OR CANCEL at the end of subtitle E of title VI

   Adds a section

   In S. 2766 · Public Print

   (c) Clarification of Membership on Local Board of Trustees.-- Section 1516(c)(1)(H) of such Act (24 U.S.C. 416(c)(1)(K)) is amended by inserting before the period at the end the following: ", who shall be a member of the Armed Forces serving on active duty in the grade of brigadier general, or in the case of the Navy, rear admiral (lower half)".

   Inserted: SEC. 662. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES REGARDING DEBTS OR ERRONEOUS PAYMENTS PENDING A DECISION TO WAIVE, REMIT, OR CANCEL.

   Inserted: (a) Exception.--Section 2780(b) of title 10, United States Code, is amended--

   Inserted: (1) by striking "The Secretary" and inserting "(1) Except as provided in paragraph (2), the Secretary"; and

   Inserted: (2) by adding at the end the following new paragraph:

   Inserted: "(2) No disclosure shall be made under paragraph (1) with respect to an indebtedness while a decision regarding waiver of collection is pending under section 2774 of this title, or a decision regarding remission or cancellation is pending under section 4837, 6161, or 9837 of this title, unless the Secretary concerned (as defined in section 101(5) of title 37), or the designee of such Secretary, determines that disclosure under that paragraph pending such decision is in the best interests of the United States.".

   Inserted: (b) Effective Date.--

   Inserted: (1) In general.--The amendments made by this section shall take effect on March 1, 2007.

   Inserted: (2) Application to prior actions.--Paragraph (2) of section 2780(b) of title 10, United States Code (as added by subsection (a)), shall not be construed to apply to or invalidate any action taken under such section before March 1, 2007.

   Inserted: (c) Report.--Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the exercise of the authority in section 2780(b) of title 10, United States Code, including--

   Inserted: (1) the total number of members of the Armed Forces who have been reported to consumer reporting agencies under such section;

   Inserted: (2) the circumstances under which such authority has been exercised, or waived (as provided in paragraph (2) of such section (as amended by subsection (a))), and by whom;

   Inserted: (3) the cost of contracts for collection services to recover indebtedness owed to the United States that is delinquent;

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   Inserted: (4) an evaluation of whether or not such contracts, and the practice of reporting military debtors to collection agencies, has been effective in reducing indebtedness to the United States; and

   Inserted: (5) such recommendations as the Secretary considers appropriate regarding the continuing use of such authority with respect to members of the Armed Forces.

   Original wording

   At the end of subtitle E of title VI, add the following:

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As printed