[House Report 114-282]
[From the U.S. Government Publishing Office]


114th Congress  }                                           { Report
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                           { 114-282

======================================================================



 
                  CHILD SUPPORT ASSISTANCE ACT OF 2015

                                _______
                                

October 6, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2091]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 2091) to amend the Fair Credit Reporting Act to 
clarify the ability to request consumer reports in certain 
cases to establish and enforce child support payments and 
awards, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                          Purpose and Summary

    Introduced by Representative Poliquin, H.R. 2091, the 
``Child Support Assistance Act of 2015,'' amends the Fair 
Credit Reporting Act (FCRA) to eliminate the requirement that 
state and local child support agencies and courts notify an 
obligor ten days before retrieving a consumer report for 
purposes of determining the appropriate level of child support 
payments, or enforcing a child support order, award, agreement, 
or judgment.

                  Background and Need for Legislation

    Most child support payments are collected from noncustodial 
parents through income withholding. In order to verify income, 
assets, and debt for purposes of establishing or enforcing 
child support obligations, state and local child support 
agencies and courts often request consumer reports from 
consumer reporting agencies. Section 604(a) of the FCRA 
requires that before retrieving current employment data from 
consumer reporting agencies, state and local child support 
agencies and courts are required to notify an obligor ten days 
prior to the request. State and local child support agencies 
argue that the 10-day notice provides some obligors with the 
opportunity to hide savings and other assets, run up credit 
card debt, and take other financial or employment actions to 
avoid or reduce child support payments.

                                Hearings

    The Committee on Financial Services Subcommittee on 
Financial Institutions held a hearing examining matters 
relating to H.R. 2091 on June 11, 2015.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 28, 2015 and July 29, 2015, and ordered H.R. 2091 to be 
reported favorably to the House without amendment by a recorded 
vote of 56 yeas to 2 nays (Record vote no. FC-49), a quorum 
being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole vote in committee was a motion by Chairman Hensarling to 
report the bill favorably to the House without amendment. The 
motion was agreed to by a recorded vote of 56 yeas to 2 nays 
(Record vote no. FC-49), a quorum being present.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 2091 
will inhibit an obligors ability to take certain financial or 
employment actions for the purpose of improperly reducing the 
amount of child support payments owed by such individual.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 18, 2015.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2091, the Child 
Support Assistance Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 2091--Child Support Assistance Act of 2015

    Under current law, consumer reporting agencies (CRAs) are 
authorized to release a credit report to a state agency 
responsible for enforcing child support orders to determine 
whether an individual has the capacity to make child support 
payments or to determine the appropriate level of such 
payments. The bill would authorize CRAs to also release credit 
reports to those state agencies for enforcing a child support 
agreement or order. Finally, the bill would eliminate a 
requirement that the state agencies notify an affected person 
that the agency has requested information about them from a 
CRA.
    Based on information from the Consumer Financial Protection 
Bureau (CFPB), CBO estimates that enacting H.R. 2091 would 
increase direct spending for that agency to amend relevant 
regulations; therefore, pay-as-you-go procedures apply. 
However, CBO estimates that such spending would be 
insignificant. Enacting H.R. 2091 would not affect revenues. 
Implementing the bill would not affect discretionary costs 
because the CFPB is permanently authorized to spend amounts 
transferred from the Federal Reserve System.
    H.R. 2091 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Susan Willie. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 2091 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee states that no provision of H.R. 2091 establishes 
or reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee states that H.R. 2091 does not require any 
directed rulemakings.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 2091 as the ``Child Support 
Assistance Act of 2015.''

Section 2. Requests for consumer reports by state or local child 
        support enforcement agencies

    This section eliminates the requirement in the Fair Credit 
Reporting Act that a state official requesting a consumer 
report provide 10 days' notice to the consumer before 
requesting the report, and makes certain other changes to the 
Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                       FAIR CREDIT REPORTING ACT



           *       *       *       *       *       *       *
TITLE VI--CONSUMER CREDIT REPORTING

           *       *       *       *       *       *       *


Sec. 604. Permissible purposes of reports

  (a) In General.--Subject to subsection (c), any consumer 
reporting agency may furnish a consumer report under the 
following circumstances and no other:
          (1) In response to the order of a court having 
        jurisdiction to issue such an order, or a subpoena 
        issued in connection with proceedings before a Federal 
        grand jury.
          (2) In accordance with the written instructions of 
        the consumer to whom it relates.
          (3) To a person which it has reason to believe--
                  (A) intends to use the information in 
                connection with a credit transaction involving 
                the consumer on whom the information is to be 
                furnished and involving the extension of credit 
                to, or review or collection of an account of, 
                the consumer; or
                  (B) intends to use the information for 
                employment purposes; or
                  (C) intends to use the information in 
                connection with the underwriting of insurance 
                involving the consumer; or
                  (D) intends to use the information in 
                connection with a determination of the 
                consumer's eligibility for a license or other 
                benefit granted by a governmental 
                instrumentality required by law to consider an 
                applicant's financial responsibility or status; 
                or
                  (E) intends to use the information, as a 
                potential investor or servicer, or current 
                insurer, in connection with a valuation of, or 
                an assessment of the credit or prepayment risks 
                associated with, an existing credit obligation; 
                or
                  (F) otherwise has a legitimate business need 
                for the information--
                          (i) in connection with a business 
                        transaction that is initiated by the 
                        consumer; or
                          (ii) to review an account to 
                        determine whether the consumer 
                        continues to meet the terms of the 
                        account.
                  (G) executive departments and agencies in 
                connection with the issuance of government-
                sponsored individually-billed travel charge 
                cards.
          (4) In response to a request by the head of a State 
        or local child support enforcement agency (or a State 
        or local government official authorized by the head of 
        such an agency), if the person making the request 
        certifies to the consumer reporting agency that--
                  (A) the consumer report is needed for the 
                purpose of establishing an individual's 
                capacity to make child support payments [or 
                determining the appropriate level of such 
                payments], determining the appropriate level of 
                such payments, or enforcing a child support 
                order, award, agreement, or judgment;
                  (B) the [paternity] parentage of the consumer 
                for the child to which the obligation relates 
                has been established or acknowledged by the 
                consumer in accordance with State laws under 
                which the obligation arises (if required by 
                those laws); and
                  [(C) the person has provided at least 10 
                days' prior notice to the consumer whose report 
                is requested, by certified or registered mail 
                to the last known address of the consumer, that 
                the report will be requested; and]
                  [(D)] (C) the consumer report will be kept 
                confidential, will be used solely for a purpose 
                described in subparagraph (A), and will not be 
                used in connection with any other civil, 
                administrative, or criminal proceeding, or for 
                any other purpose.
          (5) To an agency administering a State plan under 
        section 454 of the Social Security Act (42 U.S.C. 654) 
        for use to set an initial or modified child support 
        award.
          (6) To the Federal Deposit Insurance Corporation or 
        the National Credit Union Administration as part of its 
        preparation for its appointment or as part of its 
        exercise of powers, as conservator, receiver, or 
        liquidating agent for an insured depository institution 
        or insured credit union under the Federal Deposit 
        Insurance Act or the Federal Credit Union Act, or other 
        applicable Federal or State law, or in connection with 
        the resolution or liquidation of a failed or failing 
        insured depository institution or insured credit union, 
        as applicable.
  (b) Conditions for Furnishing and Using Consumer Reports for 
Employment Purposes.--
          (1) Certification from user.--A consumer reporting 
        agency may furnish a consumer report for employment 
        purposes only if--
                  (A) the person who obtains such report from 
                the agency certifies to the agency that--
                          (i) the person has complied with 
                        paragraph (2) with respect to the 
                        consumer report, and the person will 
                        comply with paragraph (3) with respect 
                        to the consumer report if paragraph (3) 
                        becomes applicable; and
                          (ii) information from the consumer 
                        report will not be used in violation of 
                        any applicable Federal or State equal 
                        employment opportunity law or 
                        regulation; and
                  (B) the consumer reporting agency provides 
                with the report, or has previously provided, a 
                summary of the consumer's rights under this 
                title, as prescribed by the Bureau under 
                section 609(c)(3).
          (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.
          (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 Bureau 
                        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 Bureau 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.
          (4) Exception for national security investigations.--
                  (A) In general.--In the case of an agency or 
                department of the United States Government 
                which seeks to obtain and use a consumer report 
                for employment purposes, paragraph (3) shall 
                not apply to any adverse action by such agency 
                or department which is based in part on such 
                consumer report, if the head of such agency or 
                department makes a written finding that--
                          (i) the consumer report is relevant 
                        to a national security investigation of 
                        such agency or department;
                          (ii) the investigation is within the 
                        jurisdiction of such agency or 
                        department;
                          (iii) there is reason to believe that 
                        compliance with paragraph (3) will--
                                  (I) endanger the life or 
                                physical safety of any person;
                                  (II) result in flight from 
                                prosecution;
                                  (III) result in the 
                                destruction of, or tampering 
                                with, evidence relevant to the 
                                investigation;
                                  (IV) result in the 
                                intimidation of a potential 
                                witness relevant to the 
                                investigation;
                                  (V) result in the compromise 
                                of classified information; or
                                  (VI) otherwise seriously 
                                jeopardize or unduly delay the 
                                investigation or another 
                                official proceeding.
                  (B) Notification of consumer upon conclusion 
                of investigation.--Upon the conclusion of a 
                national security investigation described in 
                subparagraph (A), or upon the determination 
                that the exception under subparagraph (A) is no 
                longer required for the reasons set forth in 
                such subparagraph, the official exercising the 
                authority in such subparagraph shall provide to 
                the consumer who is the subject of the consumer 
                report with regard to which such finding was 
                made--
                          (i) a copy of such consumer report 
                        with any classified information 
                        redacted as necessary;
                          (ii) notice of any adverse action 
                        which is based, in part, on the 
                        consumer report; and
                          (iii) the identification with 
                        reasonable specificity of the nature of 
                        the investigation for which the 
                        consumer report was sought.
                  (C) Delegation by head of agency or 
                department.--For purposes of subparagraphs (A) 
                and (B), the head of any agency or department 
                of the United States Government may delegate 
                his or her authorities under this paragraph to 
                an official of such agency or department who 
                has personnel security responsibilities and is 
                a member of the Senior Executive Service or 
                equivalent civilian or military rank.
                  (D) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Classified information.--The term 
                        ``classified information'' means 
                        information that is protected from 
                        unauthorized disclosure under Executive 
                        Order No. 12958 or successor orders.
                          (ii) National security 
                        investigation.--The term ``national 
                        security investigation'' means any 
                        official inquiry by an agency or 
                        department of the United States 
                        Government to determine the eligibility 
                        of a consumer to receive access or 
                        continued access to classified 
                        information or to determine whether 
                        classified information has been lost or 
                        compromised.
  (c) Furnishing Reports in Connection With Credit or Insurance 
Transactions That Are Not Initiated by the Consumer.--
          (1) In general.--A consumer reporting agency may 
        furnish a consumer report relating to any consumer 
        pursuant to subparagraph (A) or (C) of subsection 
        (a)(3) in connection with any credit or insurance 
        transaction that is not initiated by the consumer only 
        if--
                  (A) the consumer authorizes the agency to 
                provide such report to such person; or
                  (B)(i) the transaction consists of a firm 
                offer of credit or insurance;
                  (ii) the consumer reporting agency has 
                complied with subsection (e);
                  (iii) there is not in effect an election by 
                the consumer, made in accordance with 
                subsection (e), to have the consumer's name and 
                address excluded from lists of names provided 
                by the agency pursuant to this paragraph; and
                  (iv) the consumer report does not contain a 
                date of birth that shows that the consumer has 
                not attained the age of 21, or, if the date of 
                birth on the consumer report shows that the 
                consumer has not attained the age of 21, such 
                consumer consents to the consumer reporting 
                agency to such furnishing.
          (2) Limits on information received under paragraph 
        (1)(b).--A person may receive pursuant to paragraph 
        (1)(B) only--
                  (A) the name and address of a consumer;
                  (B) an identifier that is not unique to the 
                consumer and that is used by the person solely 
                for the purpose of verifying the identity of 
                the consumer; and
                  (C) other information pertaining to a 
                consumer that does not identify the 
                relationship or experience of the consumer with 
                respect to a particular creditor or other 
                entity.
          (3) Information regarding inquiries.--Except as 
        provided in section 609(a)(5), a consumer reporting 
        agency shall not furnish to any person a record of 
        inquiries in connection with a credit or insurance 
        transaction that is not initiated by a consumer.
  (d) Reserved.--
  (e) Election of Consumer To Be Excluded From Lists.--
          (1) In general.--A consumer may elect to have the 
        consumer's name and address excluded from any list 
        provided by a consumer reporting agency under 
        subsection (c)(1)(B) in connection with a credit or 
        insurance transaction that is not initiated by the 
        consumer by notifying the agency in accordance with 
        paragraph (2) that the consumer does not consent to any 
        use of a consumer report relating to the consumer in 
        connection with any credit or insurance transaction 
        that is not initiated by the consumer.
          (2) Manner of notification.--A consumer shall notify 
        a consumer reporting agency under paragraph (1)--
                  (A) through the notification system 
                maintained by the agency under paragraph (5); 
                or
                  (B) by submitting to the agency a signed 
                notice of election form issued by the agency 
                for purposes of this subparagraph.
          (3) Response of agency after notification through 
        system.--Upon receipt of notification of the election 
        of a consumer under paragraph (1) through the 
        notification system maintained by the agency under 
        paragraph (5), a consumer reporting agency shall--
                  (A) inform the consumer that the election is 
                effective only for the 5-year period following 
                the election if the consumer does not submit to 
                the agency a signed notice of election form 
                issued by the agency for purposes of paragraph 
                (2)(B); and
                  (B) provide to the consumer a notice of 
                election form, if requested by the consumer, 
                not later than 5 business days after receipt of 
                the notification of the election through the 
                system established under paragraph (5), in the 
                case of a request made at the time the consumer 
                provides notification through the system.
          (4) Effectiveness of election.--An election of a 
        consumer under paragraph (1)--
                  (A) shall be effective with respect to a 
                consumer reporting agency beginning 5 business 
                days after the date on which the consumer 
                notifies the agency in accordance with 
                paragraph (2);
                  (B) shall be effective with respect to a 
                consumer reporting agency--
                          (i) subject to subparagraph (C), 
                        during the 5-year period beginning 5 
                        business days after the date on which 
                        the consumer notifies the agency of the 
                        election, in the case of an election 
                        for which a consumer notifies the 
                        agency only in accordance with 
                        paragraph (2)(A); or
                          (ii) until the consumer notifies the 
                        agency under subparagraph (C), in the 
                        case of an election for which a 
                        consumer notifies the agency in 
                        accordance with paragraph (2)(B);
                  (C) shall not be effective after the date on 
                which the consumer notifies the agency, through 
                the notification system established by the 
                agency under paragraph (5), that the election 
                is no longer effective; and
                  (D) shall be effective with respect to each 
                affiliate of the agency.
          (5) Notification system.--
                  (A) In general.--Each consumer reporting 
                agency that, under subsection (c)(1)(B), 
                furnishes a consumer report in connection with 
                a credit or insurance transaction that is not 
                initiated by a consumer shall--
                          (i) establish and maintain a 
                        notification system, including a toll-
                        free telephone number, which permits 
                        any consumer whose consumer report is 
                        maintained by the agency to notify the 
                        agency, with appropriate 
                        identification, of the consumer's 
                        election to have the consumer's name 
                        and address excluded from any such list 
                        of names and addresses provided by the 
                        agency for such a transaction; and
                          (ii) publish by not later than 365 
                        days after the date of enactment of the 
                        Consumer Credit Reporting Reform Act of 
                        1996, and not less than annually 
                        thereafter, in a publication of general 
                        circulation in the area served by the 
                        agency--
                                  (I) a notification that 
                                information in consumer files 
                                maintained by the agency may be 
                                used in connection with such 
                                transactions; and
                                  (II) the address and toll-
                                free telephone number for 
                                consumers to use to notify the 
                                agency of the consumer's 
                                election under clause (i).
                  (B) Establishment and maintenance as 
                compliance.--Establishment and maintenance of a 
                notification system (including a toll-free 
                telephone number) and publication by a consumer 
                reporting agency on the agency's own behalf and 
                on behalf of any of its affiliates in 
                accordance with this paragraph is deemed to be 
                compliance with this paragraph by each of those 
                affiliates.
          (6) Notification system by agencies that operate 
        nationwide.--Each consumer reporting agency that 
        compiles and maintains files on consumers on a 
        nationwide basis shall establish and maintain a 
        notification system for purposes of paragraph (5) 
        jointly with other such consumer reporting agencies.
  (f) Certain Use or Obtaining of Information Prohibited.--A 
person shall not use or obtain a consumer report for any 
purpose unless--
          (1) the consumer report is obtained for a purpose for 
        which the consumer report is authorized to be furnished 
        under this section; and
          (2) the purpose is certified in accordance with 
        section 607 by a prospective user of the report through 
        a general or specific certification.
  (g) Protection of Medical Information.--
          (1) Limitation on consumer reporting agencies.--A 
        consumer reporting agency shall not furnish for 
        employment purposes, or in connection with a credit or 
        insurance transaction, a consumer report that contains 
        medical information (other than medical contact 
        information treated in the manner required under 
        section 605(a)(6)) about a consumer, unless--
                  (A) if furnished in connection with an 
                insurance transaction, the consumer 
                affirmatively consents to the furnishing of the 
                report;
                  (B) if furnished for employment purposes or 
                in connection with a credit transaction--
                          (i) the information to be furnished 
                        is relevant to process or effect the 
                        employment or credit transaction; and
                          (ii) the consumer provides specific 
                        written consent for the furnishing of 
                        the report that describes in clear and 
                        conspicuous language the use for which 
                        the information will be furnished; or
                  (C) the information to be furnished pertains 
                solely to transactions, accounts, or balances 
                relating to debts arising from the receipt of 
                medical services, products, or devises, where 
                such information, other than account status or 
                amounts, is restricted or reported using codes 
                that do not identify, or do not provide 
                information sufficient to infer, the specific 
                provider or the nature of such services, 
                products, or devices, as provided in section 
                605(a)(6).
          (2) Limitation on creditors.--Except as permitted 
        pursuant to paragraph (3)(C) or regulations prescribed 
        under paragraph (5)(A), a creditor shall not obtain or 
        use medical information (other than medical information 
        treated in the manner required under section 605(a)(6)) 
        pertaining to a consumer in connection with any 
        determination of the consumer's eligibility, or 
        continued eligibility, for credit.
          (3) Actions authorized by federal law, insurance 
        activities and regulatory determinations.--Section 
        603(d)(3) shall not be construed so as to treat 
        information or any communication of information as a 
        consumer report if the information or communication is 
        disclosed--
                  (A) in connection with the business of 
                insurance or annuities, including the 
                activities described in section 18B of the 
                model Privacy of Consumer Financial and Health 
                Information Regulation issued by the National 
                Association of Insurance Commissioners (as in 
                effect on January 1, 2003);
                  (B) for any purpose permitted without 
                authorization under the Standards for 
                Individually Identifiable Health Information 
                promulgated by the Department of Health and 
                Human Services pursuant to the Health Insurance 
                Portability and Accountability Act of 1996, or 
                referred to under section 1179 of such Act, or 
                described in section 502(e) of Public Law 106-
                102; or
                  (C) as otherwise determined to be necessary 
                and appropriate, by regulation or order, by the 
                Bureau or the applicable State insurance 
                authority (with respect to any person engaged 
                in providing insurance or annuities).
          (4) Limitation on redisclosure of medical 
        information.--Any person that receives medical 
        information pursuant to paragraph (1) or (3) shall not 
        disclose such information to any other person, except 
        as necessary to carry out the purpose for which the 
        information was initially disclosed, or as otherwise 
        permitted by statute, regulation, or order.
          (5) Regulations and effective date for paragraph 
        (2).--
                  (A) Regulations required.--The Bureau may, 
                after notice and opportunity for comment, 
                prescribe regulations that permit transactions 
                under paragraph (2) that are determined to be 
                necessary and appropriate to protect legitimate 
                operational, transactional, risk, consumer, and 
                other needs (and which shall include permitting 
                actions necessary for administrative 
                verification purposes), consistent with the 
                intent of paragraph (2) to restrict the use of 
                medical information for inappropriate purposes.
          (6) Coordination with other laws.--No provision of 
        this subsection shall be construed as altering, 
        affecting, or superseding the applicability of any 
        other provision of Federal law relating to medical 
        confidentiality.

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