I 

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. 

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

3 SECTION 1. EXCLUSION FOR CERTAIN SMALL BUSINESSES. 

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

5 Reporting Act (15 U.S.C. 1681m(e)) is amended by add6 ing at the end the following new paragraphs: 

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

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

9 shall not include— 


wwoods2 on DSK1DXX6B1PROD with BILLS
2 

•HR 3763 IH

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

2 fewer employees; 

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

4 fewer employees; 

5 ‘‘(C) a legal practice with 20 or fewer em6 ployees; or 

7 ‘‘(D) any other business, if the Commis8 sion determines, following an application for ex9 clusion by such business, that such business— 

10 ‘‘(i) knows all of its customers or cli11 ents individually; 

12 ‘‘(ii) only performs services in or 

13 around the residences of its customers; or 

14 ‘‘(iii) has not experienced incidents of 

15 identity theft and identity theft is rare for 

16 businesses of that type. 

17 ‘‘(5) LIMITATION ON EXCLUSION FOR BUSI18 NESSES NO-LONGER ELIGIBLE.—To the extent that 

19 a business can no longer demonstrate that it meets 

20 the criteria under paragraph (4) that permitted its 

21 exclusion from the term ‘creditor’, such exclusion 

22 shall no longer apply. 

23 ‘‘(6) DEFINITIONS.—For purposes of this sub24 section: 


wwoods2 on DSK1DXX6B1PROD with BILLS
3 

•HR 3763 IH

1 ‘‘(A) EMPLOYEE.—With respect to a busi2 ness, the term ‘employee’ means any individual 

3 who works for such business and is paid either 

4 wages or a salary. 

5 ‘‘(B) HEALTH CARE PRACTICE.— 

6 ‘‘(i) IN GENERAL.—The term ‘health 

7 care practice’ means a business that’s pri8 mary service is providing health care via 

9 health care professionals employed by the 

10 business. 

11 ‘‘(ii) HEALTH CARE PROFESSIONAL.— 

12 For purposes of subparagraph (A), the 

13 term ‘health care professional’ means an 

14 individual engaged in providing health care 

15 and licensed under State law, including 

16 physicians, dentists, podiatrists, chiroprac17 tors, physical therapists, occupational 

18 therapists, marriage and family therapists, 

19 optometrists, speech therapists, language 

20 therapists, hearing therapists, and veteri21 narians.’’. 

22 (b) PROCESS FOR EXCLUSION APPLICATIONS.—Not 

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

24 this Act, the Federal Trade Commission shall issue regula25 tions, in accordance with section 553 of title 5, United 


wwoods2 on DSK1DXX6B1PROD with BILLS
4 

•HR 3763 IH

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

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

3 the Fair Credit Reporting Act. 

Æ 


wwoods2 on DSK1DXX6B1PROD with BILLS