Consumer Reporting Employment Clarification Act of 1998

Summary: Consumer Reporting Employment Clarification Act of 1998 - Amends the Fair Credit Reporting Act to allow notice and consent requirements (regarding procurement of a consumer report for employment purposes) to be handled by oral, written, or electronic means when:  (1) the consumer involved applies for certan motor carrier employment positions regulated by the Secretary of Transportation or a State transportation agency; and (2) the only interaction at that point between the applicant and the report procurer has been by such means. Allows such means to be used in those circumstances when an adverse action is taken based on the report. 
(Sec. 3) Allows a consumer reporting agency to furnish such a report only if the agency meets certain requirements, including providing with the report, or having previously provided, a summary (currently, providing with the report a summary) of the consumer's rights. 
(Sec. 4) Provides national security exemptions for a consumer reporting agency from requirements to disclose to a consumer:  (1) the identity of each person that procured a report on that consumer; and (2) that public record information was reported that is likely to have an adverse effect on a consumer's ability to obtain employment. 
(Sec. 5) Prohibits a consumer reporting agency from reporting on civil suits, civil judgments, and arrest records (currently, reporting on suits and judgments) that are more that seven years before the report or until the governing statute of limitations has expired, whichever is longer.  Removes provisions prohibiting the reporting of certain criminal matters more than seven years before the report. Exempts records of criminal convictions from the general prohibition of reporting matters over seven years old.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Reporting Employment 
Clarification Act of 1998''.

SEC. 2. USE OF CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.

    (a) Disclosure to Consumer.--Section 604(b)(2) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(b)(2)) is amended to read as follows:
        ``(2) Disclosure to consumer.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        a person may not procure a consumer report, or cause a consumer 
        report to be procured, for employment purposes with respect to 
        any consumer, unless--
                ``(i) a clear and conspicuous disclosure has been made 
            in writing to the consumer at any time before the report is 
            procured or caused to be procured, in a document that 
            consists solely of the disclosure, that a consumer report 
            may be obtained for employment purposes; and
                ``(ii) the consumer has authorized in writing (which 
            authorization may be made on the document referred to in 
            clause (i)) the procurement of the report by that person.
            ``(B) Application by mail, telephone, computer, or other 
        similar means.--If a consumer described in subparagraph (C) 
        applies for employment by mail, telephone, computer, or other 
        similar means, at any time before a consumer report is procured 
        or caused to be procured in connection with that application--
                ``(i) the person who procures the consumer report on 
            the consumer for employment purposes shall provide to the 
            consumer, by oral, written, or electronic means, notice 
            that a consumer report may be obtained for employment 
            purposes, and a summary of the consumer's rights under 
            section 615(a)(3); and
                ``(ii) the consumer shall have consented, orally, in 
            writing, or electronically to the procurement of the report 
            by that person.
            ``(C) Scope.--Subparagraph (B) shall apply to a person 
        procuring a consumer report on a consumer in connection with 
        the consumer's application for employment only if--
                ``(i) the consumer is applying for a position over 
            which the Secretary of Transportation has the power to 
            establish qualifications and maximum hours of service 
            pursuant to the provisions of section 31502 of title 49, or 
            a position subject to safety regulation by a State 
            transportation agency; and
                ``(ii) as of the time at which the person procures the 
            report or causes the report to be procured the only 
            interaction between the consumer and the person in 
            connection with that employment application has been by 
            mail, telephone, computer, or other similar means.''.
    (b) Conditions on Use for Adverse Actions.--Section 604(b)(3) of 
the Fair Credit Reporting Act (15 U.S.C. 1681b(b)(3)) is amended to 
read as follows:
        ``(3) Conditions on use for adverse actions.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        in using a consumer report for employment purposes, before 
        taking any adverse action based in whole or in part on the 
        report, the person intending to take such adverse action shall 
        provide to the consumer to whom the report relates--
                ``(i) a copy of the report; and
                ``(ii) a description in writing of the rights of the 
            consumer under this title, as prescribed by the Federal 
            Trade Commission under section 609(c)(3).
            ``(B) Application by mail, telephone, computer, or other 
        similar means.--
                ``(i) If a consumer described in subparagraph (C) 
            applies for employment by mail, telephone, computer, or 
            other similar means, and if a person who has procured a 
            consumer report on the consumer for employment purposes 
            takes adverse action on the employment application based in 
            whole or in part on the report, then the person must 
            provide to the consumer to whom the report relates, in lieu 
            of the notices required under subparagraph (A) of this 
            section and under section 615(a), within 3 business days of 
            taking such action, an oral, written or electronic 
            notification--

                    ``(I) that adverse action has been taken based in 
                whole or in part on a consumer report received from a 
                consumer reporting agency;
                    ``(II) of the name, address and telephone number of 
                the consumer reporting agency that furnished the 
                consumer report (including a toll-free telephone number 
                established by the agency if the agency compiles and 
                maintains files on consumers on a nationwide basis);
                    ``(III) that the consumer reporting agency did not 
                make the decision to take the adverse action and is 
                unable to provide to the consumer the specific reasons 
                why the adverse action was taken; and
                    ``(IV) that the consumer may, upon providing proper 
                identification, request a free copy of a report and may 
                dispute with the consumer reporting agency the accuracy 
                or completeness of any information in a report.

                ``(ii) If, under clause (B)(i)(IV), the consumer 
            requests a copy of a consumer report from the person who 
            procured the report, then, within 3 business days of 
            receiving the consumer's request, together with proper 
            identification, the person must send or provide to the 
            consumer a copy of a report and a copy of the consumer's 
            rights as prescribed by the Federal Trade Commission under 
            section 609(c)(3).
            ``(C) Scope.--Subparagraph (B) shall apply to a person 
        procuring a consumer report on a consumer in connection with 
        the consumer's application for employment only if--
                ``(i) the consumer is applying for a position over 
            which the Secretary of Transportation has the power to 
            establish qualifications and maximum hours of service 
            pursuant to the provisions of section 31502 of title 49, or 
            a position subject to safety regulation by a State 
            transportation agency; and
                ``(ii) as of the time at which the person procures the 
            report or causes the report to be procured the only 
            interaction between the consumer and the person in 
            connection with that employment application has been by 
            mail, telephone, computer, or other similar means.''.

SEC. 3. PROVISION OF SUMMARY OF RIGHTS.

    Section 604(b)(1)(B) of the Fair Credit Reporting Act (15 U.S.C. 
1681b(b)(1)(B)) is amended by inserting ``, or has previously 
provided,'' before ``a summary''.
SEC. 4. NATIONAL SECURITY INVESTIGATION CONFORMING AMENDMENTS.
    (a) Government as End User.--Section 609(a)(3) of the Fair Credit 
Reporting Act (15 U.S.C. 1681g(a)(3)) is amended by adding at the end 
the following:
            ``(C) Subparagraph (A) does not apply if--
                ``(i) the end user is an agency or department of the 
            United States Government that procures the report from the 
            person for purposes of determining the eligibility of the 
            consumer to whom the report relates to receive access or 
            continued access to classified information (as defined in 
            section 604(b)(4)(E)(i)); and
                ``(ii) the head of the agency or department makes a 
            written finding as prescribed under section 
            604(b)(4)(A).''.
    (b) National Security Investigations.--Section 613 of the Fair 
Credit Reporting Act (15 U.S.C. 1681k) is amended--
        (1) by inserting ``(a) In General.--'' before ``A consumer''; 
    and
        (2) by adding at the end the following:
    ``(b) Exemption for National Security Investigations.--Subsection 
(a) does not apply in the case of an agency or department of the United 
States Government that seeks to obtain and use a consumer report for 
employment purposes, if the head of the agency or department makes a 
written finding as prescribed under section 604(b)(4)(A).''.

SEC. 5. CIVIL SUITS AND JUDGMENTS.

    Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)) is amended--
        (1) in paragraph (2), by striking ``Suits and Judgments which'' 
    and inserting ``Civil suits, civil judgments, and records of arrest 
    that'';
        (2) by striking paragraph (5);
        (3) in paragraph (6), by inserting ``, other than records of 
    convictions of crimes'' after ``of information''; and
        (4) by redesignating paragraph (6) as paragraph (5).

SEC. 6. TECHNICAL AMENDMENTS.

    The Fair Credit Reporting Act (15 U.S.C. 1601 et seq.) is amended--
        (1) in section 603(d)(2)(A)(iii), by striking ``any 
    communication'' and inserting ``communication'';
        (2) in section 603(o)(1), by striking ``(d)(2)(E)'' and 
    inserting ``(d)(2)(D)'';
        (3) in section 603(o)(4), by striking ``or'' at the end and 
    inserting ``and'';
        (4) in section 604(g), by striking ``or a direct marketing 
    transaction'';
        (5) in section 611(a)(7), by striking ``(6)(B)(iv)'' and 
    inserting ``(6)(B)(iii)''; and
        (6) in section 621(b), by striking ``or (e)''.

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall be deemed to have the same 
effective date as the amendments made by section 2403 of the Consumer 
Credit Reporting Reform Act of 1996 (Public Law 104-208; 110 Stat. 
3009-1257).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.