[105th Congress Public Law 347]
[From the U.S. Government Printing Office]
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[DOCID: f:publ347.105]
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CONSUMER REPORTING EMPLOYMENT CLARIFICATION ACT OF 1998
[[Page 112 STAT. 3208]]
Public Law 105-347
105th Congress
An Act
To amend the Fair Credit Reporting Act with respect to furnishing and
using consumer reports for employment <<NOTE: Nov. 2, 1998 - [S.
2561]>> purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Consumer Reporting
Employment Clarification Act of 1998.>> assembled,
SECTION 1. SHORT <<NOTE: 15 USC 1601 note.>> TITLE.
This Act may be cited as the ``Consumer Reporting Employment
Clarification Act of 1998''.
SEC. 2. USE OF CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.
(a) Disclosure to Consumer.--Section 604(b)(2) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(b)(2)) is amended to read as follows:
``(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.
[[Page 112 STAT. 3209]]
``(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.''.
(b) Conditions on Use for Adverse Actions.--Section 604(b)(3) of the
Fair Credit Reporting Act (15 U.S.C. 1681b(b)(3)) is amended to read as
follows:
``(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 Federal Trade Commission 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
[[Page 112 STAT. 3210]]
``(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 Federal Trade Commission 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.''.
SEC. 3. PROVISION OF SUMMARY OF RIGHTS.
Section 604(b)(1)(B) of the Fair Credit Reporting Act (15 U.S.C.
1681b(b)(1)(B)) is amended by inserting ``, or has previously
provided,'' before ``a summary''.
SEC. 4. NATIONAL SECURITY INVESTIGATION CONFORMING AMENDMENTS.
(a) Government as End User.--Section 609(a)(3) of the Fair Credit
Reporting Act (15 U.S.C. 1681g(a)(3)) is amended by adding at the end
the following:
``(C) Subparagraph (A) does not apply if--
``(i) the end user is an agency or department
of the United States Government that procures the
report from the person for purposes of determining
the eligibility of the consumer to whom the report
relates to receive access or continued access to
classified information (as defined in section
604(b)(4)(E)(i)); and
``(ii) the head of the agency or department
makes a written finding as prescribed under
section 604(b)(4)(A).''.
(b) National Security Investigations.--Section 613 of the Fair
Credit Reporting Act (15 U.S.C. 1681k) is amended--
(1) by inserting ``(a) In General.--'' before ``A
consumer''; and
(2) by adding at the end the following:
``(b) Exemption for National Security Investigations.--Subsection
(a) does not apply in the case of an agency or department of the United
States Government that seeks to obtain and use a consumer report for
employment purposes, if the head of the
[[Page 112 STAT. 3211]]
agency or department makes a written finding as prescribed under section
604(b)(4)(A).''.
SEC. 5. CIVIL SUITS AND JUDGMENTS.
Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a))
is amended--
(1) in paragraph (2), by striking ``Suits and Judgments
which'' and inserting ``Civil suits, civil judgments, and
records of arrest that'';
(2) by striking paragraph (5);
(3) in paragraph (6), by inserting ``, other than records of
convictions of crimes'' after ``of information''; and
(4) by redesignating paragraph (6) as paragraph (5).
SEC. 6. TECHNICAL AMENDMENTS.
The Fair Credit Reporting Act (15 U.S.C. 1601 et seq.) is amended--
(1) in section 603(d)(2)(A)(iii), <<NOTE: 15 USC 1681a.>>
by striking ``any communication'' and inserting
``communication'';
(2) in section 603(o)(1), by striking ``(d)(2)(E)'' and
inserting ``(d)(2)(D)'';
(3) in section 603(o)(4), by striking ``or'' at the end and
inserting ``and'';
(4) in section 604(g), <<NOTE: 15 USC 1681b.>> by striking
``or a direct marketing transaction'';
(5) in section 611(a)(7), <<NOTE: 15 USC 1681i.>> by
striking ``(6)(B)(iv)'' and inserting ``(6)(B)(iii)''; and
(6) in section 621(b), <<NOTE: 15 USC 1681s.>> by striking
``or (e)''.
SEC. 7. EFFECTIVE <<NOTE: 15 USC 1681a note.>> DATE.
The amendments made by this Act shall be deemed to have the same
effective date as the amendments made by section 2403 of the Consumer
Credit Reporting Reform Act of 1996 (Public Law 104-208; 110 Stat. 3009-
1257).
Approved November 2, 1998.
LEGISLATIVE HISTORY--S. 2561:
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CONGRESSIONAL RECORD, Vol. 144 (1998):
Oct. 6, considered and passed Senate.
Oct. 8, considered and passed House.
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