Senate Bill 1688

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1999                                  SB 1688

    By Senators Meek, Dawson-White, Cowin and Scott





    36-1435-99

  1                      A bill to be entitled

  2         An act relating to unemployment compensation;

  3         creating 443.1716, F.S.; requiring the

  4         Department of Labor and Employment Security to

  5         contract with consumer-reporting agencies to

  6         provide creditors with secured electronic

  7         access to employer-provided information

  8         relating to the quarterly wages reports;

  9         providing conditions; requiring consent from

10         the credit applicant; prescribing information

11         that must be included in the written consent;

12         limiting use of the information released;

13         requiring the department to establish minimum

14         audit, security, net worth, and liability

15         insurance standards and other requirements it

16         considers necessary; providing that any

17         revenues generated from a contract with a

18         consumer reporting agency must be used to pay

19         the entire cost of providing access to the

20         information; providing that any additional

21         revenues generated must be paid into the

22         department's trust fund for the administration

23         of the unemployment compensation system;

24         providing restrictions on the release of

25         information under the act; defining the term

26         "consumer-reporting" agency; providing an

27         effective date.

28

29  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 1999                                  SB 1688
    36-1435-99




  1         Section 1.  Section 443.1716, Florida Statutes, is

  2  created to read:

  3         443.1716  Authorized electronic access to employer

  4  information.--

  5         (1)  Notwithstanding any other provisions of this

  6  chapter, the Department of Labor and Employment Security shall

  7  contract with one or more consumer-reporting agencies to

  8  provide creditors with secured electronic access to

  9  employer-provided information relating to the quarterly wages

10  report submitted in accordance with the state's unemployment

11  compensation law. Such access is subject to s. 119.07(1) and

12  s. 24(a) of Art. I of the State Constitution and the federal

13  Fair Credit Reporting Act (15 U.S.C. s. 1681a), and is limited

14  to the wage reports for the preceding 16 calendar quarters.

15         (2)  Qualified creditors must obtain written consent

16  from the credit applicant. Any such written consent from the

17  credit applicant must be signed and must include the

18  following:

19         (a)  Specific notice that the individual's wage and

20  employment history information will be released to an approved

21  consumer reporting agency;

22         (b)  Notice that such release is made for the sole

23  purpose of reviewing a specific application for credit made by

24  the individual;

25         (c)  Notice that the files of the Department of Labor

26  and Employment Security containing wage and employment history

27  information submitted by the individual or his or her

28  employers may be accessed; and

29         (d)  A listing of the parties authorized to receive the

30  released information.

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    Florida Senate - 1999                                  SB 1688
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  1         (3)  The information released under this section may be

  2  used only to support a single consumer credit transaction for

  3  a subscriber to satisfy standard financial underwriting

  4  requirements or other requirements imposed upon the subscriber

  5  and to satisfy the subscriber's obligations under applicable

  6  state or federal Fair Credit Reporting laws and rules

  7  governing this section.

  8         (4)  The Department of Labor and Employment Security

  9  shall establish minimum audit, security, net-worth, and

10  liability-insurance standards, technical requirements, and any

11  other terms and conditions considered necessary in the

12  discretion of the state agency to safeguard the

13  confidentiality of the information released under this section

14  and to otherwise serve the public interest. The Department of

15  Labor and Employment Security shall also include, in

16  coordination with any necessary state agencies, necessary

17  audit procedures to ensure that these rules are followed.

18         (5)  In contracting with one or more consumer-reporting

19  agencies under this section, any revenues generated by such

20  contract must be used to pay the entire cost of providing

21  access to the information. Further, in accordance with federal

22  regulations, any additional revenues generated by the

23  department or the state under this section must be paid into

24  the department's trust fund for the administration of the

25  unemployment compensation system.

26         (6)  The department may not provide wage and employment

27  history information to any consumer-reporting agency before

28  the consumer-reporting agency or agencies under contract with

29  the department pay all development and other startup costs

30  incurred by the state in connection with the design,

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    Florida Senate - 1999                                  SB 1688
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  1  installation, and administration of technological systems and

  2  procedures for the electronic-access program.

  3         (7)  The release of any information under this section

  4  must be for a purpose authorized by and in the manner

  5  permitted by the United States Department of Labor and any

  6  subsequent rules or regulations adopted by that department.

  7         (8)  As used in this section, the term

  8  "consumer-reporting agency" has the same meaning as that set

  9  forth in the Federal Fair Credit Reporting Act, 15 U.S.C. s.

10  1681a.

11         Section 2.  This act shall take effect July 1, 1999.

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14                          SENATE SUMMARY

15    Requires the Department of Labor and Employment Security
      to contract with consumer-reporting agencies to provide
16    creditors with secured electronic access to
      employer-provided information relating to the quarterly
17    wages reports submitted pursuant to the unemployment
      compensation law. Specifies conditions. Requires consent
18    from the credit applicant. Prescribes information that
      must be included in the written consent and limits the
19    use of the information released. Requires the department
      to establish minimum audit, security, net-worth, and
20    liability-insurance standards and other requirements it
      considers necessary. Provides that any revenues generated
21    from a contract with a consumer-reporting agency must be
      used to pay the entire cost of providing access to the
22    information. Provides that any additional revenues
      generated must be paid into the department's trust fund
23    for the administration of the unemployment compensation
      system. Provides restrictions on the release of
24    information under the act. Defines the term
      "consumer-reporting agency."
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