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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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HR 3763 RFS 
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 add-
ing 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 em-
ployees; or 
‘‘(D) any other business, if the Commis-
sion determines, following an application for ex-
clusion by such business, that such business— 
‘‘(i) knows all of its customers or cli-
ents 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
BUSI-
NESSES NO-LONGER ELIGIBLE.—To the extent that 
a business can no longer demonstrate that it meets 
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HR 3763 RFS 
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 sub-
section: 
‘‘(A) EMPLOYEE.—With respect to a busi-
ness, 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 pri-
mary 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, chiroprac-
tors, 
physical 
therapists, 
occupational 
therapists, marriage and family therapists, 
optometrists, speech therapists, language 
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therapists, hearing therapists, and veteri-
narians.’’. 
(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 regula-
tions, 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. 
Passed the House of Representatives October 20, 
2009. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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