IIB 

111TH CONGRESS 

1ST SESSION H. R. 3763 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 21, 2009 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To amend the Fair Credit Reporting Act to provide for 

an exclusion from Red Flag Guidelines for certain businesses. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. EXCLUSION FOR CERTAIN SMALL BUSINESSES. 

2 (a) IN GENERAL.—Section 615(e) of the Fair Credit 

3 Reporting Act (15 U.S.C. 1681m(e)) is amended by add4 ing at the end the following new paragraphs: 

5 ‘‘(4) EXCLUSION FOR CERTAIN BUSINESSES.— 

6 For purposes of this subsection, the term ‘creditor’ 

7 shall not include— 

8 ‘‘(A) a health care practice with 20 or 

9 fewer employees; 

10 ‘‘(B) an accounting practice with 20 or 

11 fewer employees; 

12 ‘‘(C) a legal practice with 20 or fewer em13 ployees; or 

14 ‘‘(D) any other business, if the Commis15 sion determines, following an application for ex16 clusion by such business, that such business— 

17 ‘‘(i) knows all of its customers or cli18 ents individually; 

19 ‘‘(ii) only performs services in or 

20 around the residences of its customers; or 

21 ‘‘(iii) has not experienced incidents of 

22 identity theft and identity theft is rare for 

23 businesses of that type. 

24 ‘‘(5) LIMITATION ON EXCLUSION FOR BUSI25 NESSES NO-LONGER ELIGIBLE.—To the extent that 

26 a business can no longer demonstrate that it meets 


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1 the criteria under paragraph (4) that permitted its 

2 exclusion from the term ‘creditor’, such exclusion 

3 shall no longer apply. 

4 ‘‘(6) DEFINITIONS.—For purposes of this sub5 section: 

6 ‘‘(A) EMPLOYEE.—With respect to a busi7 ness, the term ‘employee’ means any individual 

8 who works for such business and is paid either 

9 wages or a salary. 

10 ‘‘(B) HEALTH CARE PRACTICE.— 

11 ‘‘(i) IN GENERAL.—The term ‘health 

12 care practice’ means a business that’s pri13 mary service is providing health care via 

14 health care professionals employed by the 

15 business. 

16 ‘‘(ii) HEALTH CARE PROFESSIONAL.— 

17 For purposes of subparagraph (A), the 

18 term ‘health care professional’ means an 

19 individual engaged in providing health care 

20 and licensed under State law, including 

21 physicians, dentists, podiatrists, chiroprac22 tors, physical therapists, occupational 

23 therapists, marriage and family therapists, 

24 optometrists, speech therapists, language 


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1 therapists, hearing therapists, and veteri2 narians.’’. 

3 (b) PROCESS FOR EXCLUSION APPLICATIONS.—Not 

4 later than 180 days after the date of the enactment of 

5 this Act, the Federal Trade Commission shall issue regula6 tions, in accordance with section 553 of title 5, United 

7 States Code, that set forth the process by which a business 

8 may apply for an exclusion under section 615(e)(4)(D) of 

9 the Fair Credit Reporting Act. 

Passed the House of Representatives October 20, 

2009. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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