House Bill 1759e1

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                                          HB 1759, First Engrossed



  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         providing for confidentiality; limiting use of

13         the information released; providing for

14         termination of contracts under certain

15         circumstances; defining the term "creditor";

16         requiring the department to establish minimum

17         audit, security, net worth, and liability

18         insurance standards and other requirements it

19         considers necessary; providing that any

20         revenues generated from a contract with a

21         consumer reporting agency must be used to pay

22         the entire cost of providing access to the

23         information; providing that any additional

24         revenues generated must be paid into the

25         department's trust fund for the administration

26         of the unemployment compensation system;

27         providing restrictions on the release of

28         information under the act; defining the term

29         "consumer-reporting" agency; providing an

30         effective date.

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                                          HB 1759, First Engrossed



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

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  3         Section 1.  Section 443.1716, Florida Statutes, is

  4  created to read:

  5         443.1716  Authorized electronic access to employer

  6  information.--

  7         (1)  Notwithstanding any other provisions of this

  8  chapter, the Department of Labor and Employment Security shall

  9  contract with one or more consumer-reporting agencies to

10  provide creditors with secured electronic access to

11  employer-provided information relating to the quarterly wages

12  report submitted in accordance with the state's unemployment

13  compensation law. Such access is limited to the wage reports

14  for the preceding 16 calendar quarters.

15         (2)  Creditors must obtain written consent from the

16  credit applicant. Any such written consent from the credit

17  applicant must be signed and must include the following:

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

19  employment history information will be released to a

20  consumer-reporting agency;

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

22  purpose of reviewing a specific application for credit made by

23  the individual;

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

25  and Employment Security containing wage and employment history

26  information submitted by the individual or his or her

27  employers may be accessed; and

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

29  released information.

30         (3)  Consumer-reporting agencies and creditors

31  accessing information under this section must safeguard the


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                                          HB 1759, First Engrossed



  1  confidentiality of such information and shall use the

  2  information only to support a single consumer credit

  3  transaction for the creditor to satisfy standard financial

  4  underwriting requirements or other requirements imposed upon

  5  the creditor, and to satisfy the creditor's obligations under

  6  applicable state or federal Fair Credit Reporting laws and

  7  rules governing this section.

  8         (4)  Should any consumer-reporting agency or creditor

  9  violate any provision of this section, the Department of Labor

10  and Employment Security shall, upon thirty days written notice

11  to the consumer-reporting agency, terminate the contract

12  established between the department and the consumer-reporting

13  agency resulting from this section.

14         (5)  For purposes of this section, "creditor" has the

15  same meaning as set forth in the federal Fair Debt Collection

16  Practices Act, 15 U.S.C. s. 1692 et seq.

17         (6)  The Department of Labor and Employment Security

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

19  liability-insurance standards, technical requirements, and any

20  other terms and conditions considered necessary in the

21  discretion of the state agency to safeguard the

22  confidentiality of the information released under this section

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

24  Labor and Employment Security shall also include, in

25  coordination with any necessary state agencies, necessary

26  audit procedures to ensure that these rules are followed.

27         (7)  In contracting with one or more consumer-reporting

28  agencies under this section, any revenues generated by such

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

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

31  regulations, any additional revenues generated by the


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                                          HB 1759, First Engrossed



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

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

  3  unemployment compensation system.

  4         (8)  The department may not provide wage and employment

  5  history information to any consumer-reporting agency before

  6  the consumer-reporting agency or agencies under contract with

  7  the department pay all development and other startup costs

  8  incurred by the state in connection with the design,

  9  installation, and administration of technological systems and

10  procedures for the electronic-access program.

11         (9)  The release of any information under this section

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

13  permitted by the United States Department of Labor and any

14  subsequent rules or regulations adopted by that department.

15         (10)  As used in this section, the term

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

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

18  1681a.

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

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