To amend the Fair Credit Reporting Act to provide for an exclusion from Red Flag Guidelines for certain businesses.

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

Amends the Fair Credit Reporting Act with respect to the duties of users of consumer reports who take adverse actions on the basis of information contained in such reports.

Excludes any health care practice, accounting practice, or legal practice with 20 or fewer employees from the meaning of creditor subject to Red Flag Guidelines regarding identity theft promulgated by the proper federal financial regulatory agency.

Excludes any other business which the Federal Trade Commission (FTC) determines: (1) knows all its customers or clients individually; (2) only performs services in or around the residences of its customers; or (3) has not experienced incidents of identity theft, and identity theft is rare for businesses of that type. States that such exclusion shall no longer apply to any business that can no longer meet such eligibility criteria.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3763 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3763

To amend the Fair Credit Reporting Act to provide for an exclusion from 
              Red Flag Guidelines for certain businesses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 8, 2009

  Mr. Adler of New Jersey (for himself, Mr. Broun of Georgia, and Mr. 
   Simpson) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Fair Credit Reporting Act to provide for an exclusion from 
              Red Flag Guidelines for certain businesses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION FOR CERTAIN SMALL BUSINESSES.

    (a) In General.--Section 615(e) of the Fair Credit Reporting Act 
(15 U.S.C. 1681m(e)) is amended by adding at the end the following new 
paragraphs:
            ``(4) Exclusion for certain businesses.--For purposes of 
        this subsection, the term `creditor' shall not include--
                    ``(A) a health care practice with 20 or fewer 
                employees;
                    ``(B) an accounting practice with 20 or fewer 
                employees;
                    ``(C) a legal practice with 20 or fewer employees; 
                or
                    ``(D) any other business, if the Commission 
                determines, following an application for exclusion by 
                such business, that such business--
                            ``(i) knows all of its customers or clients 
                        individually;
                            ``(ii) only performs services in or around 
                        the residences of its customers; or
                            ``(iii) has not experienced incidents of 
                        identity theft and identity theft is rare for 
                        businesses of that type.
            ``(5) Limitation on exclusion for businesses no-longer 
        eligible.--To the extent that a business can no longer 
        demonstrate that it meets the criteria under paragraph (4) that 
        permitted its exclusion from the term `creditor', such 
        exclusion shall no longer apply.
            ``(6) Definitions.--For purposes of this subsection:
                    ``(A) Employee.--With respect to a business, the 
                term `employee' means any individual who works for such 
                business and is paid either wages or a salary.
                    ``(B) Health care practice.--
                            ``(i) In general.--The term `health care 
                        practice' means a business that's primary 
                        service is providing health care via health 
                        care professionals employed by the business.
                            ``(ii) Health care professional.--For 
                        purposes of subparagraph (A), the term `health 
                        care professional' means an individual engaged 
                        in providing health care and licensed under 
                        State law, including physicians, dentists, 
                        podiatrists, chiropractors, physical 
                        therapists, occupational therapists, marriage 
                        and family therapists, optometrists, speech 
                        therapists, language therapists, hearing 
                        therapists, and veterinarians.''.
    (b) Process for Exclusion Applications.--Not later than 180 days 
after the date of the enactment of this Act, the Federal Trade 
Commission shall issue regulations, in accordance with section 553 of 
title 5, United States Code, that set forth the process by which a 
business may apply for an exclusion under section 615(e)(4)(D) of the 
Fair Credit Reporting Act.
                                 <all>