II 

111TH CONGRESS 

2D SESSION S. 3416 

To amend the Fair Credit Reporting Act to provide for an exclusion from 

Red Flag Guidelines for certain businesses. 

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2010 

Mr. THUNE (for himself and Mr. BEGICH) introduced the following bill; which 

was read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

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: 

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

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

9 shall not include— 


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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: 


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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, the pri8 mary service of which is providing health 

9 care through health care professionals em10 ployed by the business. 

11 ‘‘(ii) HEALTH CARE PROFESSIONAL.— 

12 For purposes of clause (i), the term ‘health 

13 care professional’ means an individual en14 gaged in providing health care and licensed 

15 under State law, including a physician, a 

16 dentist, a podiatrist, a chiropractor, a 

17 physical therapist, an occupational thera18 pist, a marriage or family therapist, an op19 tometrist, a speech therapist, a language 

20 therapist, a hearing therapist, and a veteri21 narian.’’. 

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 


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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, as added by this Act. 

Æ 


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